Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 
Exhibit 10.2  

INTERCREDITOR AGREEMENT 

dated
as of March 31, 2004 

by
and among 

WELLS
FARGO BANK, N.A.,

as Collateral Agent and as Trustee 

and 

FLEET
NATIONAL BANK,

as Administrative Agent 

INTERCREDITOR AGREEMENT  

        This Intercreditor Agreement, dated as of March 31, 2004 (as the same may be amended, modified or supplemented from time to time, this
"Agreement"), is by and among: (i) WELLS FARGO BANK, N.A., as Trustee under the Indenture (as defined below) for the benefit of the holders from time to
time of the Note Obligations (in such capacity, including any successor thereto in such capacity, the "Trustee"), (ii) WELLS FARGO BANK, N.A., as
Collateral Agent under the Indenture for the benefit of the holders from time to time of the Note Obligations (in such capacity, including any successor thereto in such capacity, the
"Collateral Agent") and (iii) FLEET NATIONAL BANK, as Administrative Agent (in such capacity, including any successor thereto in such capacity, the
"Administrative Agent") under the Credit Agreement (as defined below) for the benefit of the holders from time to time of the Priority Lien Obligations. 

RECITALS  

        WHEREAS, pursuant to an Amended and Restated Revolving Credit Agreement, dated as of even date herewith, entered into by Real Mex Restaurants, Inc. (the
"Company"), the other borrowers party thereto and the lenders party thereto and led by the Administrative Agent, the Company and the other Obligors have
entered into the Priority Lien Security Documents pursuant to which the Obligors have granted the Administrative Agent a first priority security interest in the Collateral; 

        WHEREAS,
pursuant to an Indenture, dated of even date herewith (as the same may be amended, restated, modified, supplemented, renewed, refunded, replaced or refinanced from time to time,
the "Indenture"), by and among the Company, the Guarantors and the Trustee, the Company and the other Obligors have entered into the Security Documents
pursuant to which they have granted the Collateral Agent a security interest in the Collateral which security interest is subordinate to the security interest of the Priority Lien therein; 

        WHEREAS,
the parties hereto desire to enter into this Agreement to confirm their relative rights with respect to the Collateral as provided in this Agreement; 

        NOW
THEREFORE, in consideration of the premises, covenants and agreements as herein set forth and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows: 

AGREEMENT  

ARTICLE 1.
  DEFINITIONS  

        For purposes of this Agreement, the terms listed in this Article 1 shall have the respective meanings set forth in this Article 1. All other capitalized terms
used herein and not defined herein shall have the meaning ascribed thereto in the Indenture. 

        "Additional Notes" means any Notes issued under the Indenture after the date of the Indenture, as part of the same series as the Initial
Notes. 

        "Affiliate" of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition, "control," as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise. For purposes of this definition, the terms "controlling,"
"controlled by" and "under common control with" have correlative meanings. 

        "Bankruptcy Law" means Title 11, U.S. Code or any similar federal or state law for the relief of debtors. 

 

        "Board of Directors" means: 

        (1)   with
respect to a corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board; 

        (2)   with
respect to a partnership, the Board of Directors of the general partner of the partnership; 

        (3)   with
respect to a limited liability company, the managing member or members or any controlling committee of managing members thereof; and 

        (4)   with
respect to any other Person, the board or committee of such Person serving a similar function. 

        "Business Day" means any day other than a Legal Holiday. 

        "Capital Lease Obligation" means, at the time any determination is to be made, the amount of the liability in respect of a capital lease
that would at that time be required to be capitalized on a balance sheet prepared in accordance with GAAP, and the Stated Maturity thereof shall be the date of the last payment of rent or any other
amount due under such lease prior to the first date upon which such lease may be prepaid by the lessee without payment of a penalty. 

        "Capital Stock" means: 

        (1)   in
the case of a corporation, corporate stock; 

        (2)   in
the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; 

        (3)   in
the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and 

        (4)   any
other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing
Person, but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any right of participation with Capital Stock, 

including,
in each case, Preferred Stock. 

        "Collateral" means all properties and assets at any time owned or acquired by the Company or any of the Guarantors, other than Excluded
Assets. 

        "Collateral Agent" means Wells Fargo Bank, N.A., in its capacity as collateral agent under the Security Documents and this Agreement,
together with its successors in such capacity. 

        "Credit Agreement" means that certain Amended and Restated Revolving Credit Agreement, dated March 31, 2004, by and among the Company,
Fleet National Bank, as administrative agent and as lender, and the other lenders party thereto from time to time, providing for (1) up to $15.0 million of revolving credit borrowings and (2) a
separate facility for up to $15.0 million of letters of credit, in each case, including any related notes, guarantees, collateral documents, instruments and agreements executed in connection
therewith, and in each case as amended, restated, modified, renewed, refunded, replaced (whether upon or after termination or otherwise) or refinanced (including by means of sales of debt securities
to institutional investors) in whole or in part from time to time. 

        "Credit Agreement Agent" means Fleet National Bank, in its capacity as collateral agent under the Priority Lien Security Documents, and
any successor thereto in such capacity. 

2

 

        "Credit Bid Rights" means, in respect of any order relating to a sale of assets in any Insolvency or Liquidation Proceeding, that: 

        (1)   such
order grants the Holders of Notes (individually and in any combination) the right to bid at the sale of such assets and the right to offset such holders' claims
secured by Note Liens upon such assets against the purchase price of such assets if the bid of such holders: 

        (a)   is
the highest bid or otherwise determined by the court to be the best offer at the sale; and 

        (b)   includes
a cash purchase price component payable at the closing of the sale in an amount that would be sufficient on the date of the closing of the sale, if such amount
were applied to such payment on such date, to pay all unpaid Priority Lien Obligations (except Unasserted Contingent Obligations) and to satisfy all Liens entitled to priority over the Priority Liens
that attach to the proceeds of the sale, and such order requires or permits such amount to be so applied; and 

        (2)   such
order allows the claims of the Holders of Notes in such Insolvency or Liquidation Proceeding to the extent required for the grant of such rights. 

        "Credit Facilities" means one or more debt facilities (including, without limitation, the Credit Agreement) or commercial paper
facilities, in each case with banks or other institutional lenders providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such lenders or
to special purpose entities formed to borrow from such lenders against such receivables) or letters of credit, in each case, as amended, restated, modified, renewed, refunded, replaced (whether upon
or after termination or otherwise) or refinanced (including by means of sales of debt securities to institutional investors) in whole or in part from time to time. 

        "Default" means any event that is, or with the passage of time or the giving of notice or both would be, if it continues uncured, an Event
of Default. 

        "Discharge of the Priority Lien Obligations" means termination of all commitments to extend credit that would constitute Priority Lien
Debt, payment in full in cash of the principal of and interest and premium (if any) on all Priority Lien Debt (except undrawn letters of credit), discharge or cash collateralization (at the lower of
(1) 105% of the aggregate undrawn amount and (2) the percentage of the aggregate undrawn amount required for release of liens under the terms of the applicable Priority Lien Document) of all letters
of credit outstanding under any Priority Lien Debt, and payment in full in cash of all other Priority Lien Obligations (except Unasserted Contingent Obligations) that are outstanding and unpaid at the
time the Priority Lien Debt is Discharged. "Discharged" shall have the correlative meaning. 

        "equally and ratably" means, in reference to any sharing of Liens or proceeds from the enforcement of the Collateral Agent's security
interests in the Collateral as among the holders of Note Obligations, that such Liens or proceeds: 

        (1)   shall
be allocated and distributed first to the Trustee, for account of the holders of Notes, ratably in proportion to the principal of and interest and premium (if any)
outstanding when the allocation or distribution is made, and thereafter; and 

        (2)   shall
be allocated and distributed (if any such proceeds remain after payment in full of all of the principal of and interest and premium (if any) on all outstanding
Note Debt) to the Trustee, for account of the holders of any remaining Note Obligations with respect to the Notes, ratably in proportion to the aggregate unpaid amount of such remaining Note
Obligations due and demanded (with written notice to the Trustee and the Collateral Agent) prior to the date such distribution is made. 

3

 

        "Equity Interests" means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt security
that is convertible into, or exchangeable for, Capital Stock). 

        "Event of Default" has the meaning set forth in Section 6.01 of the Indenture. 

        "Excluded Assets" means: 

        (1)   any
lease, license, contract, property right or agreement to which the Company or any Guarantor is a party or any of its rights or interests thereunder if and only for
so long as the grant of a security interest therein under the Security Documents (i) is prohibited by law or would constitute or result in the abandonment, invalidation or unenforceability of any
right, title or interest of the grantor of such security interest therein pursuant to applicable law, or (ii) would require the consent of third parties that are not an Affiliate of the Company or any
Guarantor and such consent has not been obtained or waived after the Company, or the applicable Guarantor, as the case may be, has used commercially reasonable efforts to try to obtain such consent or
a waiver thereof, or (iii) other than as a result of a breach of the provisions thereof, would constitute a default under or result in a termination of such lease, permit, license, contract, property
right or agreement, in each case, (other than to the extent that any such provisions thereof would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial
Code (or any successor provision or provisions) of any relevant jurisdiction or any other applicable law); provided that, immediately upon (a) the
unenforceability, ineffectiveness, lapse or termination of (i) such prohibition, (ii) the provisions that would be so breached or (iii) such breach, default or termination or (b) the obtaining of any
such consent or waiver, the Excluded Assets shall not include, and the Company or applicable Guarantor, as the case may be, shall be deemed immediately and automatically to have granted a security
interest in, all such leases, licenses, contracts, property rights and agreements and such other rights and interests thereunder as if such prohibition, the provisions that would be so breached or
such breach, default or termination had never been in effect and as if such consent had not been required; 

        (2)   all
"securities" of any of the Company's "affiliates" (as the terms "securities" and "affiliates" are used in Rule 3-16 of Regulation S-X under the Securities Act); 

        (3)   money,
deposit accounts and letter-of-credit rights that are not supporting obligations, all as defined in Article 9 of the New York Uniform Commercial Code (except that
the exclusion of money, deposit accounts and letter-of-credit rights that are not supporting obligations from the Collateral will not affect, limit or impair any security interest of the Collateral
Agent in any proceeds of Collateral at any time held as money, held on deposit in any deposit account or constituting letter-of-credit rights); provided
that in the event, and to the extent, that, after the date of the Indenture, the security interest granted therein may be perfected by the filing of a financing statement under the Uniform Commercial
Code of the relevant jurisdiction, money, deposit accounts and letter-of-credit rights that are not supporting obligations shall cease to be Excluded Assets; 

        (4)   (i)
any foreign intellectual property of the Company or any of its Restricted Subsidiaries, or (ii) any automobiles, trailers, vehicles or the like of the Company or any
of its Restricted Subsidiaries subject to a certificate-of-title statute (within the meaning of Article 9 of the New York Uniform Commercial Code), in each case, in which a security interest may not
be perfected by the filing of a financing statement under the Uniform Commercial Code of the relevant jurisdiction; 

        (5)   any
other property or assets in which a security interest cannot be perfected by the filing of a financing statement under the Uniform Commercial Code of the relevant
jurisdiction, so long as the aggregate Fair Market Value of all such property excluded under this clause (5) does not at any time exceed $1.0 million (except that the exclusion of such property from
the Collateral will 

4

 

not
affect, limit or impair any security interest of the Collateral Agent in any proceeds of Collateral at any time held as personal property of a type in which a security interest cannot be perfected
by the filing of a financing statement under the Uniform Commercial Code of the relevant jurisdiction); 

        (6)   Subject
to the proviso to clause (1) of this definition, any real property leased by the Company or any Guarantor;  provided that (a) the Company or such Guarantor, as the case may be, shall have used
commercially reasonable efforts to obtain the consent of the
applicable landlord to the grant of a security interest in favor of the Collateral Agent to secure the Note Obligations in (i) any such leased real property in which the Priority Lien Collateral Agent
or any holder of Priority Lien Obligations holds a security interest to secure Priority Lien Obligations and (ii) the Sale-Leaseback Properties, and (b) such consent shall not have been obtained; 

        (7)   at
any time, any real property interest acquired by the Company or any of its Restricted Subsidiaries after the date of the Indenture in which the Collateral Agent does
not have a perfected security interest on such acquisition date, solely to the extent the Company or such Restricted Subsidiary was not then required to grant the Collateral Agent a perfected security
interest therein under the Indenture; 

        (8)   any
assets or properties in which the Collateral Agent is required to release its Note Liens securing Note Obligations pursuant to Section 10.06 of the Indenture,  provided that if such Liens are required to
be released as a result of the sale, transfer or other disposition of any assets or properties of the
Company or any Guarantor, such assets or properties shall cease to be "Excluded Assets" under this clause (8) if the Company or any Guarantor thereafter acquires or reacquires such assets or
properties; and 

        (9)   at
any time Priority Lien Obligations exist that have not been Discharged, any properties or assets (other than those specified in clauses (1) through (8) above)
acquired by the Company or any Guarantor after the date of the Indenture in which the Priority Lien Collateral Agent or the holders of the requisite percentage of Priority Lien Debt do not obtain a
security interest to secure Priority Lien
Debt; provided that the aggregate Fair Market Value of all such property and assets does not exceed $500,000; 

provided that no asset or property will constitute an Excluded Asset for so long as it is subject to a Priority Lien other than (i) securities of an
affiliate to the extent such securities would otherwise be "Excluded Assets" under clause (2) of this definition, (ii) any leased real property held by the Company or any Guarantor from time to time
to the extent such leased real property would otherwise be an "Excluded Asset" under clause (6) of this definition or (iii) any deposit account to the extent such deposit account would otherwise be an
"Excluded Asset" under clause (3) of this definition; provided that (a) the Company or the applicable Guarantor, as the case may be, shall have used all
commercially reasonable efforts to cause a perfected security interest in such deposit accounts and (b) such perfected security interest shall not have been granted. 

        "Fair Market Value" means the value that would be paid by a willing buyer to an unaffiliated willing seller in a transaction not involving
distress or necessity of either party, determined in good faith by the Board of Directors of the Company, which determination will be conclusive (unless otherwise provided in the Indenture). 

        "GAAP" means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession, which are in effect on the date of the Indenture. 

5

 

        "Guarantee" means a guarantee other than by endorsement of negotiable instruments for collection in the ordinary course of business,
direct or indirect, in any manner including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any part of any
Indebtedness (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take or pay or to maintain financial statement
conditions or otherwise). 

        "Guarantor" means any Subsidiary of the Company that executes a Note Guarantee in accordance with the provisions of the Indenture and its
successors and assigns, in each case, until the Note Guarantee of such Person has been released in accordance with the provisions of the Indenture. 

        "Hedging Obligations" means, with respect to any specified Person, the obligations of such Person under: 

        (1)   interest
rate swap agreements (whether from fixed to floating or from floating to fixed), interest rate cap agreements and interest rate collar agreements; 

        (2)   other
agreements or arrangements designed to manage interest rates or interest rate risk; and 

        (3)   other
agreements or arrangements designed to protect such Person against fluctuations in currency exchange rates or commodity prices. 

        "Holder" means a person in whose name a Note is registered. 

        "Indebtedness" means, with respect to any specified Person, any indebtedness of such Person (excluding accrued expenses and trade
payables), whether or not contingent: 

        (1)   in
respect of borrowed money; 

        (2)   evidenced
by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof); 

        (3)   in
respect of banker's acceptances; 

        (4)   representing
Capital Lease Obligations; 

        (5)   representing
the balance deferred and unpaid of the purchase price of any property or services due more than six months after such property is acquired or such services
are completed; or 

        (6)   representing
any Hedging Obligations, 

if
and to the extent any of the preceding items (other than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet of the specified Person prepared in accordance
with GAAP. In addition, the term "Indebtedness" includes (a) all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the
specified Person) and (b) to the extent not otherwise included, the Guarantee by the specified Person of any Indebtedness of any other Person. 

        "Initial Notes" means the first $105.0 million aggregate principal amount of Notes issued under the Indenture on the date of the
Indenture. 

        "Insolvency or Liquidation Proceeding" means: 

        (1)   any
case commenced by or against the Company or any other Obligor under any Bankruptcy Law, any other proceeding for the reorganization, recapitalization or adjustment
or marshalling of the assets or liabilities of the Company or any other Obligor, any receivership or assignment for the benefit of creditors relating to the Company or any other Obligor or any similar 

6

 

case
or proceeding relative to the Company or any other Obligor or its creditors, as such, in each case whether or not voluntary; 

        (2)   any
liquidation, dissolution, marshalling of assets or liabilities or other winding up of or relating to the Company or any other Obligor, in each case whether or not
voluntary and whether or not involving bankruptcy or insolvency; or 

        (3)   any
other proceeding of any type or nature in which substantially all claims of creditors of the Company or any other Obligor are determined and any payment or
distribution is or may be made on account of such claims. 

        "Legal Holiday" means a Saturday, a Sunday or a day on which banking institutions are closed or are authorized by law, regulation or
executive order to remain closed (1) in the City of New York, (2) in the city in which the Corporate Trust Office of the Trustee is located, (3) at a place of payment or (4) at any other location
identified in the definition of "Business Day" (or the equivalent thereof) in the applicable Priority Lien Document; provided that the Trustee and the
Collateral Agent have previously been advised of such location in writing; and provided, further, that,
for purposes of the Credit Agreement, such location shall be Boston, Massachusetts, unless and until the Trustee and the Collateral Agent are notified in writing of any substitute or additional
location. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday. 

        "Lenders" means, at any time, the parties then holding (or committed to provide) loans, letters of credit or other extensions of credit or
obligations that constitute (or when provided will constitute) Priority Lien Obligations. 

        "Lien" means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of
such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement, any lease in the nature thereof, any option
or other agreement to sell give a security interest in and any filing of or agreement to give any financing statement relating to a lien on an asset under the Uniform Commercial Code (or equivalent
statutes) of any jurisdiction. 

        "Liquidated Damages" means all liquidated damages then owing pursuant to the Registration Rights Agreement. 

        "Non-Recourse Debt" means Indebtedness: 

        (1)   as
to which neither the Company nor any of its Restricted Subsidiaries (a) provides credit support of any kind (including any undertaking, agreement or instrument that
would constitute Indebtedness), (b) is directly or indirectly liable as a guarantor or otherwise, or (c) constitutes the lender; 

        (2)   no
default with respect to which (including any rights that the holders of the Indebtedness may have to take enforcement action against an Unrestricted Subsidiary) would
permit upon notice, lapse of time or both any holder of any other Indebtedness of the Company or any of its Restricted Subsidiaries to declare a default on such other Indebtedness or cause the payment
of the Indebtedness to be accelerated or payable prior to its Stated Maturity; and 

        (3)   as
to which the lenders have been notified in writing that they will not have any recourse to the stock or assets of the Company or any of its Restricted Subsidiaries. 

        "Note Debt" means: 

        (1)   the
Initial Notes; and 

        (2)   any
Additional Notes that are permitted to be incurred under the Indenture 

7

   provided, that the satisfaction of the requirement in clause (2) shall be conclusively established, for purposes of entitling the holders of Additional
Notes to share equally and ratably with the other holders of Note Obligations in the benefits and proceeds of the Collateral Agent's security interests in the Collateral, if the Company delivers to
the Collateral Agent an Officers' Certificate stating that such requirement has been satisfied and that the Additional Notes constitute "Note Obligations," and the holders of such Additional Notes and
Obligations in respect thereof will be entitled to rely conclusively thereon. 

        "Note Documents" means, collectively, the Indenture, the Notes (including any Additional Notes), the Note Guarantees, the Security
Documents, the Intercreditor Agreement and all agreements governing, securing or relating to any Note Obligations. 

        "Note Guarantee" means the Guarantee by each Guarantor of the Company's obligations under the Indenture and on the Notes, executed
pursuant to the provisions of the Indenture. 

        "Note Lien" means a Lien granted pursuant to a Security Document by the Company or any other Obligor to the Collateral Agent (or any other
holder, or representative of holders, of Note Obligations) upon any property or assets of the Company or such Obligor to secure Note Obligations. 

        "Note Obligations" means Note Debt and all other Obligations in respect thereof. 

        "Notes" means the 10% Senior Secured Notes due 2010 (including without limitation, Additional Notes). 

        "Obligations" means: 

        (1)   any
principal (including reimbursement obligations with respect to letters of credit whether or not drawings have been made thereon), interest (including any interest
accruing at the then applicable rate provided in any applicable Secured Debt Document after the maturity of the Indebtedness thereunder and any reimbursement obligations therein and interest accruing
at the then applicable rate provided in any applicable Secured Debt Document after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding,
whether or not a claim for post-
filing or post-petition interest is allowed in such proceeding), penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness; 

        (2)   the
obligation to pay an amount equal to all damages that a court shall determine any holder of the applicable Secured Debt has suffered by reason of a breach by the
applicable obligor thereunder of any obligation, covenant or undertaking with respect to any applicable Secured Debt Document; and 

        (3)   any
net obligations of the obligor under any applicable Secured Debt Document to any holder of Secured Debt (or any representative on its behalf) or any Affiliate
thereof under any Hedging Obligations in respect of interest rates or currency exchange rates. 

        "Obligor" means the Company and each Restricted Subsidiary of the Company (if any) that at any time guarantees or provides collateral
security or credit support for any Note Obligations. 

        "Officer" means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating
Officer, the Chief Financial Officer, the Treasurer, any assistant Treasurer, the Controller, the Secretary or any Vice-President of such Person. 

        "Officers' Certificate" means (1) with respect to the Company, a certificate signed on behalf of the Company by two Officers of the
Company, one of whom must be the principal executive officer, the principal financial officer, the treasurer, or the principal accounting officer of the Company, that meets the requirements of Section
13.05 of the Indenture, and (2) with respect to any holder of Priority Liens, a certificate signed on behalf of such holder by two Officers of such holder. 

8

 

        "Opinion of Counsel" means an opinion from legal counsel who is reasonably acceptable to the Trustee, that meets the requirements of
Section 13.05 of the Indenture. The counsel may be an employee of or counsel to the Company or the Trustee. 

        "Permitted Liens" means: 

        (1)   Liens
on assets of the Company or any of its Restricted Subsidiaries securing Indebtedness and other Obligations under Credit Facilities that was incurred pursuant to
clause (1) of the definition of "Permitted Debt" contained in the Indenture; 

        (2)   Liens
in favor of the Company or the Guarantors; 

        (3)   Liens
on property or shares of Capital Stock of a Person existing at the time such Person is merged with or into or consolidated with the Company or any Subsidiary of
the Company; provided that such Liens were in existence prior to the contemplation of such merger or consolidation and do not extend to any assets other
than those of the Person merged into or consolidated with the Company or the Subsidiary; 

        (4)   Liens
on property (including Capital Stock) existing at the time of acquisition of the property by the Company or any Subsidiary of the Company;  provided that such Liens were in existence prior to such
acquisition and not incurred in contemplation of such acquisition; 

        (5)   Liens
to secure the performance of statutory obligations, surety or appeal bonds, performance bonds or other obligations of a like nature, in each case, other than for
the payment of Indebtedness incurred in the ordinary course of business (including, without limitation, rights of offset and set-off); 

        (6)   Liens
to secure Indebtedness permitted by clause (4) of the definition of "Permitted Debt" contained in the Indenture, in each case covering only the assets acquired
with or financed by such Indebtedness; 

        (7)   Liens
existing on the date of the Indenture; 

        (8)   Liens
for taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith by appropriate proceedings promptly
instituted and diligently concluded; provided that any reserve or other appropriate provision as is required in conformity with GAAP has been made
therefor; 

        (9)   pledges
or deposits by a Person under worker's compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids,
tenders, contracts (other than for the payment of Indebtedness) or leases or licenses to which such Person is a party, or deposits as security for contested taxes or import duties or for the payment
of rent, in each case incurred in the ordinary course of business; 

        (10) Liens
imposed by law, such as carriers', warehousemen's, landlord's and mechanics' Liens, in each case, incurred in the ordinary course of business; 

        (11) judgment
Liens not giving rise to an Event of Default under the Indenture so long as such Lien is adequately bonded and any appropriate legal proceedings which may have
been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceedings may be initiated shall not have expired; 

        (12) Liens
arising solely by virtue of any statutory or common law provision relating to banker's Liens, rights of set-off or similar rights and remedies as to deposit
accounts or other funds maintained with a creditor depository institution; provided, however, that (a)
such deposit account is not a dedicated cash collateral account and is not subject to restrictions against access by the Company or any of its Restricted Subsidiaries in excess of those set forth by
regulations 

9

 

promulgated
by the Federal Reserve Board and (b) such deposit account is not intended by the Company or any Restricted Subsidiary to provide collateral to the depository institution; 

        (13) with
respect to the Company or any of its Restricted Subsidiaries, survey exceptions, easements or reservations of, or rights of others for, licenses, rights-of-way,
sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning or other similar restrictions as to the use of real property that were not incurred in connection with
Indebtedness and that do not in the aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the business of the Company or such Restricted
Subsidiary, as the case may be; 

        (14) Liens
securing Hedging Obligations so long as such Hedging Obligations relate to Indebtedness that is permitted to be incurred under the Indenture; 

        (15) Note
Liens; 

        (16) leases
or subleases granted to Persons other than the Company or any of its Restricted Subsidiaries in the ordinary course of business, and not materially interfering
with the ordinary course of business of the Company or any of its Restricted Subsidiaries; 

        (17) Liens
under licensing agreements entered into by the Company or any of its Restricted Subsidiaries for use of intellectual property entered into in the ordinary course
of business; 

        (18) Liens
arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into by the Company or any of its Restricted
Subsidiaries in the ordinary course of business; 

        (19) (a)
Liens securing Indebtedness under Credit Facilities and (b) Liens to secure Indebtedness represented by Capital Lease Obligations, mortgage financings or purchase
money indebtedness, in each case that, at the time that such Indebtedness was incurred, after giving pro forma effect to such Indebtedness as if such Indebtedness had been incurred at the beginning of
the four fiscal quarters most recently completed prior to the date of such incurrence for which internal financial statements are available, and to the pro forma application of the net proceeds of
such Indebtedness, did not result in a Fixed Charge Coverage Ratio for such four-quarter period that was less than 3.0 to 1; 

        (20) Liens
to secure any Permitted Refinancing Indebtedness permitted to be incurred under the Indenture; provided,  however, that: 

        (a)   the
new Lien shall be limited to all or part of the same property and assets that secured or, under the written agreements pursuant to which the original Lien arose,
could secure the original Lien (plus improvements and accessions to, such property or proceeds or distributions thereof); and 

        (b)   the
Indebtedness secured by the new Lien is not increased to any amount greater than the sum of (x) the outstanding principal amount, or, if greater, committed amount,
of the Permitted Refinancing Indebtedness and (y) an amount necessary to pay any fees and expenses, including premiums, related to such renewal, refunding, refinancing, replacement, defeasance or
discharge; 

        (21) Liens
securing reimbursement obligations with respect to letters of credit permitted under clause (13) of the definition of "Permitted Debt" contained in the Indenture
which encumber documents and other property relating to such letters of credit and products and proceeds thereof; 

        (22) Liens
to secure Indebtedness permitted by clause (14) of the definition of "Permitted Debt" contained in the Indenture; and 

10

 

        (23) Liens
incurred in the ordinary course of business of the Company or any of its Restricted Subsidiaries securing obligations (other than obligations under any Credit
Facility) that do not exceed $500,000 at any time outstanding. 

        "Permitted Refinancing Indebtedness" means any Indebtedness of the Company or any of its Restricted Subsidiaries issued in exchange for,
or the net proceeds of which are used to refund, refinance, replace, defease or discharge other Indebtedness of the Company or any of its Restricted Subsidiaries (other than intercompany
Indebtedness), including Indebtedness of the Company or any Restricted Subsidiary used to refinance Permitted Refinancing Indebtedness; provided that: 

        (1)   the
principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not exceed the principal amount (or accreted value, if
applicable) of the Indebtedness renewed, refunded, refinanced, replaced, defeased or discharged (plus all accrued interest on the Indebtedness and the amount of all fees and expenses, including
premiums, incurred in connection therewith); 

        (2)   such
Permitted Refinancing Indebtedness has a final maturity date later than the final maturity date of, and has a Weighted Average Life to Maturity equal to or greater
than the Weighted Average Life to Maturity of, the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged; 

        (3)   if
the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged is subordinated in right of payment to the Notes, such Permitted Refinancing
Indebtedness has a final maturity date later than the final maturity date of, and is subordinated in right of payment to, the Notes on terms at least as favorable to the Holders of Notes as those
contained in the documentation governing the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged; and 

        (4)   such
Indebtedness is incurred either by the Company or by the Restricted Subsidiary who is the obligor on the Indebtedness being renewed, refunded, refinanced, replaced,
defeased or discharged. 

        "Person" means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated
organization, limited liability company or government or other entity. 

        "Pledged Collateral" means (1) any tangible property in the possession of the Priority Lien Collateral Agent (or its agents or bailees) in
which a security interest is perfected by such possession, including, without limitation, negotiable documents, goods, instruments, money or tangible chattel paper or (2) any other Collateral as to
which the Priority Lien Collateral Agent (or its agents or bailees) has control and in which a security interest is perfected by such control including, without limitation, any investment property,
cash collateral account, deposit account, electronic chattel paper or letter of credit rights. For purposes hereof, the terms "negotiable documents," "goods," instruments," "money," "tangible chattel
paper," "investment property," "deposit account," "electronic chattel paper" and
"letter of credit rights" shall have the meanings given such terms in the New York Uniform Commercial Code, as in effect on the date hereof. 

        "Preferred Stock" means any Equity Interest with preferential right of payment (i) of dividends, or (ii) upon liquidation, dissolution or
winding up of the issuer of such Equity Interest. 

        "Priority Lien" means a Lien granted pursuant to a Priority Lien Security Document by the Company or any other Obligor to any holder, or
representative of holders, of Priority Lien Obligations upon any property or assets of the Company or such Obligor to secure Priority Lien Obligations. 

        "Priority Lien Collateral Agent" means the Credit Agreement Agent or, after all Priority Lien Obligations in respect of the Credit
Agreement have been Discharged, a single representative of all 

11

 

holders
of Priority Liens most recently designated by the Company in an Officers' Certificate delivered to the Trustee and Collateral Agent or the successor of such representative in its capacity as
such. 

        "Priority Lien Debt" means: 

        (1)   the
principal amount of any Indebtedness which, when incurred (or, in the case of any reimbursement obligation for a letter of credit issued under any Credit Facility,
when such letter of credit was issued), either (a) was permitted to be secured by Liens permitted by clause (1), (19)(a), (21) or (22) of the definition of "Permitted Liens" or (b) was incurred (or,
in the case of any such reimbursement obligation, relates to a letter of credit that was issued) upon delivery to the Priority Lien Collateral Agent, the Trustee and the Collateral Agent of an
Officers' Certificate to the effect that, at the time of such incurrence, such Indebtedness was permitted to be secured by Liens permitted by clause (1), (19)(a), (21) or (22) of the definition of
"Permitted Liens," including without limitation any such Indebtedness incurred in any Insolvency or Liquidation Proceeding to the extent constituting Indebtedness permitted to be secured by Liens
permitted by clause (1), (19)(a), (21) or (22) of the definition of "Permitted Liens"(it being agreed that, for purposes of qualifying as "Priority Lien Debt," any loan advanced or letter of credit
issued under a line of credit will be deemed "incurred" at the time the Credit Facility governing such Indebtedness is entered into); provided that any
holder of Priority Lien Debt and the Priority Lien Collateral Agent shall be conclusively entitled to rely on an Officers' Certificate from the Company addressed to any such holder or the Priority
Lien Collateral Agent (a copy of which Officers' Certificate is provided substantially concurrently to the Collateral Agent and the Trustee) that any borrowings, issuances of letters of credit or
other extensions of credit under any Credit Facility were incurred, and are permitted to be incurred, under the terms of the Indenture; and 

        (2)   Hedging
Obligations permitted to be secured by Liens permitted by clause (14) of the definition of "Permitted Liens";  provided that, pursuant to the Credit Agreement, the Hedging Obligations secured thereby are
secured by and all and Liens securing Indebtedness incurred
under the Credit Agreement. 

        "Priority Lien Documents" means the Credit Agreement, the Priority Lien Security Documents and all other agreements governing, securing or
relating to any Priority Lien Obligations (other than this Agreement). 

        "Priority Lien Obligation" means the Priority Lien Debt and all other Obligations of the Company or any Obligor under the Priority Lien
Documents. 

        "Priority Lien Security Documents" means one or more security agreements, pledge agreements, collateral assignment, mortgages, deed of
trust or other grants or transfers for security executed and delivered by the Company or any other Obligor creating (or purporting to create) a Lien upon property owned or to be acquired by the
Company or any other Obligor in favor of any holder or holders of Priority Lien Debt, or any trustee, agent or representative acting for any such holders, as security for any Priority Lien
Obligations, in each case, as amended, modified, renewed, restated or replaced, in whole or in part, from time to time, in accordance with its terms. 

        "Registration Rights Agreement" means the Registration Rights Agreement, dated as of March 31, 2004, among the Company, the Guarantors and
the other parties named on the signature pages thereof, as such agreement may be amended, modified or supplemented from time to time and, with respect to any Additional Notes, one or more registration
rights agreements among the Company, the Guarantors and the other parties thereto, as such agreement(s) may be amended, modified or supplemented from time to time, relating to rights given by the
Company to the purchasers of Additional Notes to register such Additional Notes under the Securities Act of 1933, as amended. 

        "Restricted Subsidiary" of a Person means any Subsidiary of the referent Person that is not an Unrestricted Subsidiary. 

12

 

        "Sale-leaseback Properties" means each of the following properties to be acquired by CRICACAPULCO, LLC from El Torito Restaurants, Inc. on
or around the date of the Indenture and concurrently leased back by CRICACAPULCO, LLC to El Torito Restaurants, Inc. (or, in the case of the property listed in clause (2) below, Acapulco Restaurants,
Inc.): 

        (1)   8855
Tampa Ave, Northridge, Los Angeles County, California; 

        (2)   3113
West Olive Ave, Burbank, Los Angeles County, California; 

        (3)   11185
South Town Square, Green Park, St. Louis County, Missouri; 

        (4)   12380
St. Charles Rock Road, Bridgeton, St. Louis County, Missouri; and 

        (5)   12796
Manchester Road, Des Peres, St Louis County, Missouri. 

        "Secured Debt" means Note Debt and Priority Lien Debt. 

        "Secured Debt Documents" means the Note Documents and the Priority Lien Documents 

        "Security Documents" means one or more security agreements, pledge agreements, collateral assignments, mortgages, collateral agency
agreements, control agreements, deeds of trust or other grants or transfers for security executed and delivered by the Company or any other Obligor creating (or purporting to create) a Note Lien upon
Collateral, in each case, as amended, modified, renewed, restated or replaced, in whole or in part, from time to time, in accordance with its terms. 

        "Stated Maturity" means, with respect to any installment of interest or principal on any series of Indebtedness, the date on which the
payment of interest or principal was scheduled to be paid in the documentation governing such Indebtedness as of the date of the Indenture, and will not include any contingent obligations to repay,
redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof. 

        "Subsidiary" means, with respect to any specified Person: 

        (1)   any
corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the
occurrence of any contingency and after giving effect to any voting agreement or stockholders' agreement that effectively transfers voting power) to vote in the election of directors, managers or
trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or
a combination thereof); and 

        (2)   any
partnership (a) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person or (b) the only general partners of
which are that Person or one or more Subsidiaries of that Person (or any combination thereof). 

        "Unasserted Contingent Obligations" means, at any time, Obligations for taxes, costs, indemnifications, reimbursements, damages and other
liabilities in respect of which no claim or demand for payment has been made at such time (except (i) the principal of and interest and premium (if any) on, and fees relating to, any Indebtedness,
(ii) contingent obligations to reimburse the issuer of an outstanding letter of credit for amounts that may be drawn or paid thereunder and (iii) any such contingent claims or demands as to which the
Priority Lien Collateral Agent or any holder of Priority Lien Obligations has then notified the Company). 

        "Unrestricted Subsidiary" means any Subsidiary of the Company is designated by the Board of Directors of the Company as an Unrestricted
Subsidiary pursuant to a resolution of the Board of 

13

 

Directors,
and any Subsidiary of such Unrestricted Subsidiary, but only to the extent that such Subsidiary: 

        (1)   has
no Indebtedness other than Non-Recourse Debt; 

        (2)   except
as permitted by the Indenture, is not party to any agreement, contract, arrangement or understanding with the Company or any Restricted Subsidiary of the Company
unless the terms of any such agreement, contract, arrangement or understanding are no less favorable to the Company or such Restricted Subsidiary than those that might be obtained at the time from
Persons who are not Affiliates of the Company; 

        (3)   is
a Person with respect to which neither the Company nor any of its Restricted Subsidiaries has any direct or indirect obligation (a) to subscribe for additional Equity
Interests or (b) to maintain or preserve such Person's financial condition or to cause such Person to achieve any specified levels of operating results; and 

        (4)   has
not guaranteed or otherwise directly or indirectly provided credit support for any Indebtedness of the Company or any of its Restricted Subsidiaries. 

        "Weighted Average Life to Maturity" means, when applied to any Indebtedness at any date, the number of years obtained by dividing: 

        (1)   the
sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal,
including payment at final maturity, in respect of the Indebtedness, by (b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such
payment; by 

        (2)   the
then outstanding principal amount of such Indebtedness. 

ARTICLE 2.
  REPRESENTATIONS AND WARRANTIES  

        Section
2.1    Representations and Warranties of Collateral Agent.    The Collateral Agent represents, warrants,
acknowledges and agrees that (1) it is authorized to enter into this Agreement, (2) it has the corporate power and authority and the legal right to execute and deliver and perform its obligations
under this Agreement and has taken all necessary corporate action to authorize its execution, delivery and performance of this Agreement, and (3) this Agreement constitutes a legal, valid and binding
obligation of the Collateral Agent, enforceable against the Collateral Agent in accordance with its terms. 

        Section
2.2    Representations and Warranties of Trustee.    The Trustee represents, warrants, acknowledges and agrees
that (1) it is authorized to enter into this Agreement, (2) it has the corporate power and authority and the legal right to execute and deliver and perform its obligations under this Agreement and has
taken all necessary corporate action to authorize its execution, delivery and performance of this Agreement, and (3) this Agreement constitutes a legal, valid and binding obligation of the Trustee,
enforceable against the Trustee in accordance with its terms. 

        Section
2.3    Representations and Warranties of Administrative Agent.    The Administrative Agent represents,
warrants, acknowledges and agrees on behalf of itself and the Lenders under the Credit Agreement on the date hereof that (1) it is authorized to enter into this Agreement on behalf of itself and such
Lenders, (2) it has the corporate power and authority and the legal right to execute and deliver and perform its obligations under this Agreement and has taken all necessary corporate action to
authorize its execution, delivery and performance of this Agreement, and (3) this Agreement constitutes a legal, valid and binding obligation of the Administrative Agent, enforceable against the
Administrative Agent in accordance with its terms. 

14

 

ARTICLE 3.
  INTERCREDITOR RELATIONS  

        Section
3.1    Agreement for the Benefit of Holders of Priority Liens.    The Trustee and the Collateral Agent agree,
and each Holder of Notes by accepting a Note agrees, that (1) the Note Liens are, to the extent and in the manner provided in this Article 3, junior and subordinate in ranking to all Priority Liens,
whenever granted or attaching, upon any present or future Collateral and (2) the Priority Liens, whenever granted or attaching, upon any present or future Collateral, will be prior and senior to the
Note Liens. 

        Section
3.2    Ranking.    Notwithstanding (1) anything to the contrary contained in the Security Documents,
(2) the time of incurrence of any Secured Debt, (3) the time, order or method of attachment of the Note Liens or the Priority Liens, (4) the time or order of filing or recording
of financing statements or other documents filed or recorded to perfect any Lien upon any Collateral, (5) the time of taking possession or control over any Collateral, (6) the rules for
determining priority under the Uniform Commercial Code or any other law governing relative priorities of secured creditors, (7) that any Priority Lien may not have been perfected,
(8) that any Priority Lien may be or have become subordinated, by equitable subordination or otherwise, to any other Lien, or (9) any other circumstance of any kind or nature whatsoever,
whether similar or dissimilar to any of the foregoing, the Note Liens will in all circumstances be junior and subordinate in ranking to all Priority Liens, whenever granted, upon any present or future
Collateral, and the Priority Liens, whenever granted, upon any present or future Collateral will be prior and superior to the Note Liens. 

        Section
3.3    Collateral Sharing with Additional Notes.    Any Additional Notes issued under the Indenture in
accordance with the requirements set forth in the definition of "Note Debt" and permitted to be incurred under Section 4.09 of the Indenture and permitted to be incurred under the Credit Facilities
will be treated as Note Obligations for all purposes under the Indenture and the Security Documents. 

        Section
3.4    Restriction on Enforcement of Note Liens.    

        (a)   So
long as any Priority Lien Obligations exist that have not been Discharged, the holders of Priority Liens will have the exclusive right to enforce, foreclose, collect
or realize upon any Collateral. Subject to Section 3.15 and the second set of clauses (1) through (4) set forth below, the Trustee and Holders of Notes will not authorize or instruct the Collateral
Agent, and the Collateral Agent will not, and will not authorize or direct any Person acting for it, the Trustee or any holder of Note Obligations, to exercise any right or remedy with respect to any
Collateral (including any right of set-off) or take any action to enforce, collect or realize upon any Collateral, including without limitation, any right, remedy or action to: 

        (1)   take
possession of or control over any Collateral; 

        (2)   exercise
any collection rights in respect of any Collateral or retain any proceeds of accounts and other obligations receivable paid to it directly by any account
debtor; 

        (3)   exercise
any right of set-off against any Collateral; 

        (4)   foreclose
upon any Collateral or take or accept any transfer of title in lieu of foreclosure upon any Collateral; 

        (5)   enforce
any claim to the proceeds of insurance upon any Collateral; 

        (6)   deliver
any notice, claim or demand relating to the Collateral to any Person (including any securities intermediary, depositary bank or landlord) in the possession or
control of any Collateral or acting as bailee, custodian or agent for any holder of Priority Liens in respect of any Collateral; 

        (7)   otherwise
enforce any remedy available upon default for the enforcement of any Lien upon the Collateral; 

15

  

        (8)   deliver
any notice or commence any proceeding for any of the foregoing purposes; or 

        (9)   seek
relief in any Insolvency or Liquidation Proceeding permitting it to do any of the foregoing; 

except
that, in any event, any such right or remedy may be exercised and any such action may be taken, authorized or instructed: 

        (1)   without
any condition or restriction whatsoever, so long as no Priority Lien Obligations exist that have not been Discharged; 

        (2)   as
necessary to redeem any Collateral in a creditor's redemption permitted by law or to deliver any notice or demand necessary to enforce (subject to no Priority Lien
Obligations existing that have not been Discharged) any right to claim, take or receive proceeds of Collateral remaining at any time when no Priority Lien Obligations exist that have not been
Discharged in the event of foreclosure or other enforcement of any prior Lien; 

        (3)   as
necessary to perfect, or maintain the perfection or priority of, a Lien upon any Collateral by any method of perfection except through possession or control; or 

        (4)   as
necessary to prove, preserve or protect (but not enforce) the Note Liens, in each case, subject to the provisions of the Security Documents. 

        (b)   Subject
to clauses (1) through (3) of Section 3.15, so long as there are any Priority Lien Obligations existing that have not been Discharged, none of the Holders of
Notes, the Trustee or the Collateral Agent will: 

        (1)   request
judicial relief, in an Insolvency or Liquidation Proceeding or in any other court, that would hinder, delay, limit or prohibit the lawful exercise or enforcement
of any right or remedy otherwise available to the holders of Priority Liens in respect of Priority Liens or that would limit, invalidate,
avoid or set aside any Priority Lien or Priority Lien Security Document or subordinate the Priority Liens to the Note Liens or grant the Priority Liens equal ranking to the Note Liens; 

        (2)   oppose
or otherwise contest any motion for relief from the automatic stay or from any injunction against foreclosure or enforcement of Priority Liens made by any holder
of Priority Liens in any Insolvency or Liquidation Proceeding; 

        (3)   oppose
or otherwise contest any lawful exercise by any holder of Priority Liens of the right to credit bid Priority Debt at any sale in foreclosure of Priority Liens; 

        (4)   oppose
or otherwise contest any other request for judicial relief made in any court by any holder of Priority Liens relating to the lawful enforcement of any Priority
Lien; or 

        (5)   challenge
the enforceability, perfection or the validity of the Priority Lien Obligations or the Priority Liens. 

        (c)   Except
for payments received free from the Priority Liens as provided in this Section 3.4, all proceeds of Collateral received by the Trustee or the Collateral Agent at
any time when any Priority Lien Obligations exist that have not been Discharged will be held by the Trustee or the Collateral Agent for account of the holders of Priority Liens and remitted to the
Priority Lien Collateral Agent upon demand by the Priority Lien Collateral Agent. To the extent provided by applicable law, the Note Liens will remain attached to and, subject to this Article 3,
enforceable against all proceeds so held or remitted. 

        (d)   Except
for payments that are made from or constitute proceeds of property subject to Priority Liens and that are received by the Trustee or the Collateral Agent or any
holder of Note Obligations at any time when any Priority Lien Obligations exist that have not been Discharged and after (i) the 

16

 

commencement
of any Insolvency or Liquidation Proceeding in respect of the Company or the grantor of any Priority Lien or (ii) the Trustee and the Collateral Agent have received written notice from
the Priority Lien Collateral Agent stating that (A) the Priority Debt has become due and payable in full (whether at maturity, upon acceleration or otherwise) or (B) the holders of Priority Liens have
become entitled to, and desire to, enforce any or all of the Priority Liens by reason of a default under Priority Lien Documents: 

        (1)   no
payment of money (or the equivalent of money) made by the Company or any other Obligor to the Trustee, the Collateral Agent, any Holder of Notes or any other holder
of Note Obligations (including, without limitation, payments or prepayments made for application to Note Obligations) or any other payments or deposits made pursuant to any provision of the Indenture,
any other Note Document and this Agreement will in any event be subject to the foregoing provisions of this Section 3.4 or otherwise affected by any of the provisions of Section 3.15; and 

        (2)   all
payments permitted to be received under this Section 3.4 will be received by the Trustee, the Collateral Agent, the Holders of Notes and the other holders of Note
Obligations free from the Priority Liens and all other Liens thereon except the Note Liens. 

        (e)   Notwithstanding
any other provision of the Indenture or any other Note Document, the right of any Holder of a Note to receive from the Company or Note Guarantors,
payment of the principal, premium and Liquidated Damages, if any, and interest on the Notes held by such Holder, on or after the respective due dates for payment from the Company or the Note
Guarantors expressed in the Note (including in connection with an offer to purchase), or to institute suit against the Company or the Note Guarantors for the enforcement of any such payment on or
after such respective dates, shall not be impaired or affected without the consent of such Holder; provided that a Holder shall not have the right to
institute any such suit against the Company or the Note Guarantors for the enforcement of payment if and to the extent that the surrender or prosecution thereof or the entry of judgment therein would,
under applicable law, result in the surrender, impairment, waiver or loss of the Lien of the Indenture upon any property subject to such Lien. 

        Section
3.5    Insolvency or Liquidation Proceedings.    

        (a)   The
provisions of this Article 3 will be applicable both before and after the filing of any petition by or against any Obligor under any insolvency or bankruptcy law and
all converted or succeeding cases in respect thereof, and all references herein to any Obligor shall be deemed to apply to the trustee for such Obligor and such Obligor as a debtor-in-possession. The
relative rights of secured creditors in or to any distributions from or in respect of any Collateral or proceeds of Collateral shall continue after the filing of such petition on the same basis as
prior to the date of such filing, subject to any court order approving the financing of, or use of cash collateral by any Obligor as a debtor-in-possession. If, in any Insolvency or Liquidation
Proceeding and at any time any Priority Lien Obligations exist that have not been Discharged, all of the Lenders (or the holders of the requisite percentage of Priority Lien Obligations as may have
the power to bind all of them): 

        (1)   consent
to any order for use of cash collateral or agree to the extension of any Priority Lien Debt (including, without limitation, any debtor-in-possession financing)
to any Obligor to the extent constituting Indebtedness permitted to be secured by Liens permitted by clause (1), (19)(a), (21) or (22) of the definition of "Permitted Liens"; 

        (2)   consent
to any order granting any priming lien, replacement lien, cash payment or other relief on account of Priority Lien Obligations as adequate protection (or its
equivalent) for the interests of the holders of Priority Liens in the property subject to such Priority Liens; and 

17

 

        (3)   consent
to any order relating to a sale of assets of the Company or any other Obligor that: 

        (i)    provides,
to the extent the sale is to be free and clear of Liens, that all Priority Liens and Note Liens will attach to the proceeds of the sale; and 

        (ii)   grants
Credit Bid Rights to the Holders of Notes; 

then,
the holders of Note Obligations, the Trustee and the Collateral Agent will not oppose or otherwise contest the entry of such order (except that any order approving a sale of assets or the
bidding procedures for any sale of assets may be opposed or otherwise contested by them based on any ground that may be asserted by a holder of unsecured claims), so long as none of the holders of
Priority Lien Obligations, the Priority Lien Collateral Agent or any representative acting for one or more of the holders of Priority Lien Obligations in any respect opposes or otherwise contests any
request made by the holders of Note Obligations for the grant to the Collateral Agent, for the benefit of the holders of Note Obligations and as adequate protection (or its equivalent) for the
Collateral Agent's interest in the Collateral under the Note Liens, of a junior lien upon any property upon which a Lien is (or is to be) granted under the order to secure the Priority Lien
Obligations co-extensive in all respects with, but subordinated (as set forth in this Article 3) in all respects to, such Lien and all Priority Liens upon the property. 

        (b)   The
Holders of Note Obligations, the Trustee and the Collateral Agent will not file or prosecute in any Insolvency or Liquidation Proceeding any motion for adequate
protection (or any comparable request for relief) based upon their interests in the Collateral under the Note Liens, except that: 

        (1)   they
may freely seek and obtain relief granting a junior lien co-extensive in all respects with, but subordinated (as set forth in this Article 3) in all respects to,
all Liens granted in such Insolvency or Liquidation Proceeding to the holders of Priority Lien Debt; 

        (2)   they
may assert rights in connection with the confirmation of any plan of reorganization or similar dispositive restructuring plan; and 

        (3)   they
may freely seek and obtain any relief upon a motion for adequate protection or for relief from the automatic stay (or any comparable relief), without any condition
or restriction whatsoever, at any time when no Priority Lien Obligations exist that have not been Discharged. 

        (c)   If,
in any Liquidation or Insolvency Proceeding, debt obligations of the reorganized debtor secured by Liens upon any property of the reorganized debtor are distributed,
both on account of Priority Lien Debt and on account of the Note Debt, then, to the extent the debt obligations distributed on account of the Priority Lien Debt and on account of the Note Debt are
secured by Liens upon the same property or type of property, the provisions of this Article 3 will survive the distribution of such debt obligations pursuant to such plan and will apply with like
effect to the Liens securing such debt obligations. 

        (d)   The
Holders of Note Obligations, the Trustee and the Collateral Agent will not assert or enforce, at any time when any Priority Lien Obligations exist that have not been
Discharged, any claim under !506(c) of the United States Bankruptcy Code senior to or on a parity with the Priority Liens for costs or expenses of preserving or disposing of any Collateral. 

18

 

        Section
3.6    Release of Collateral upon Sale or Other Disposition.    

        (a)   At
any time Priority Lien Obligations exist that have not been Discharged, the Note Liens will be released in part with respect to any asset constituting Collateral
(whether or not any Insolvency or Liquidation Proceeding is pending at the time): 

        (1)   upon
delivery by the Company (or the holder of any Priority Lien) to the Trustee and the Collateral Agent of an Officers' Certificate certifying that the asset has been
(or concurrently with the release of the Note Liens thereon will be) sold, transferred or otherwise disposed of by the Company or a Guarantor to a Person other than the Company, any of the Company's
Restricted Subsidiaries or any other Obligor in a transaction permitted by each of the Note Documents, at the time of sale or disposition; provided that
the Note Liens will not be released if the sale, transfer or other disposition is subject to Section 5.01 of the Indenture; 

        (2)   upon
delivery by the Company to the Trustee and the Collateral Agent of an Officers' Certificate certifying that the asset is owned or has been acquired by a Guarantor
that has been released from its Note Guarantee (including by virtue of a Subsidiary Guarantor becoming an Unrestricted Subsidiary); provided that any
subsequent guarantee or reinstated guarantee made by such Guarantor shall be subject to the Indenture; 

        (3)   at
any time there are Priority Lien Obligations which have not been Discharged, upon delivery by the Company of the required Officers' Certificate to the Trustee and the
Collateral Agent in accordance with the provisions of the Indenture relating to the release of Note Liens subject to the Indenture; and 

        (4)   upon
delivery by the Company (or any holder of Priority Lien Obligations) to the Trustee and the Collateral Agent of an Officers' Certificate certifying that the asset
has been (or concurrently with the release of the Note Liens thereon will be) sold, transferred or otherwise disposed of by the holder of any Priority Lien securing Priority Lien Obligations in a
foreclosure or other enforcement proceeding or by an Obligor in lieu of a sale by the holders of the Priority Lien Obligations in a foreclosure or enforcement proceeding. 

        (b)   Notwithstanding
the provisions of Section 3.6(a), the Note Liens on the proceeds of such Collateral paid or payable in connection with any sale or other disposition of
an asset described in Section 3.6(a) shall not be released. 

        Section
3.7    Release of Note Guarantees upon Sale or Other Disposition.    

        (a)   If,
at any time when any Priority Lien Obligations exist that have not been Discharged, the Company or the holder of any Priority Lien delivers an Officers' Certificate
to the Trustee and the Collateral Agent certifying that the conditions for release of the Note Guarantee of a Guarantor set forth in clause (1), (2), (3), (4) or (5) of Section 3.7(b) have been
satisfied, then (whether or not any Insolvency or Liquidation Proceeding is pending at the time) the Note Guarantee of such Guarantor will automatically be released. 

        (b)   At
any time Priority Lien Obligations exist that have not been Discharged, the Note Guarantee of a Guarantor will be released (whether or not an Insolvency or
Liquidation Proceeding is then pending): 

        (1)   in
connection with any sale or other disposition of all or substantially all of the assets of that Guarantor (including by way of merger or consolidation) to a Person
that is not (either before or after giving effect to such transaction) the Company or a Restricted Subsidiary of the Company, if the sale or other disposition does not violate Section 4.10 of the
Indenture; provided that the Guarantor's Note Guarantee will not be released if the sale or disposition is subject to Section 5.01 of the Indenture; 

19

 

        (2)   in
connection with any sale or other disposition of all of the Capital Stock of that Guarantor (whether directly by transfer of Capital Stock issued by that Guarantor or
indirectly by transfer of Capital Stock of other Subsidiaries that, directly or indirectly, own Capital Stock issued by that Guarantor) to a Person that is not (either before or after giving effect to
such transaction) the Company or a Restricted Subsidiary of the Company, if the sale or other disposition does not violate Section 4.10 of the Indenture;  provided that the Guarantor's Note Guarantee
will not be released if the sale or disposition is subject to Section 5.01 of the Indenture; 

        (3)   in
connection with any sale or other disposition of less than all of the Capital Stock of that Guarantor (including by way of merger or consolidation) to a Person that
is not (either before or after giving effect to such transaction) the Company or a Restricted Subsidiary of the Company, if (a) the sale or other disposition does not violate Section 4.10 of the
Indenture; and (b) immediately after giving effect to such sale or disposition, that Guarantor ceases to be a Subsidiary of the Company; provided that
the Guarantor's Note Guarantee will not be released if the sale or disposition is subject to Section 5.01 of the Indenture; 

        (4)   if
the Company designates any Restricted Subsidiary that is a Guarantor to be an Unrestricted Subsidiary in accordance with the applicable provisions of the Indenture;
or 

        (5)   upon
legal defeasance or covenant defeasance or satisfaction and discharge of the Indenture as provided in Article 8 of the Indenture. 

        Section
3.8    Amendment of Security Documents.    

        (a)   At
any time when any Priority Lien Obligations exist that have not been Discharged, the Collateral Agent will not enter into, and the Trustee and the Holders of Notes
will not authorize or direct, any amendment of or supplement to any Security Document relating to any Collateral that would make such Security Document inconsistent in any material respect with the
comparable provisions of the Priority Lien Security Documents upon such Collateral and no such amendment or supplement will be enforceable. 

        (b)   For
the purposes of Section 3.8(a), (1) no inconsistency reflected in the Security Documents delivered in connection with the issuance of the Notes, as compared with the
comparable provisions of the applicable Priority Lien Security Documents then in effect, will be subject to Section 3.8(a), and (2) subject to clause (1), any provision granting rights or powers to
the Collateral Agent that are not granted to the holders of Priority Liens securing Priority Lien Debt will constitute a material inconsistency, except to the extent resulting solely from the failure
by the holders of Priority Lien Obligations or the Priority Lien Collateral Agent to obtain a Lien on any asset or property of the Company or any of its Subsidiaries to which they or it would
otherwise be entitled under the applicable Priority Lien Documents. 

        (c)   For
the purposes of Section 3.8(a), the Collateral Agent shall be entitled conclusively to presume that Priority Lien Obligations exist that have not been Discharged
until the Priority Lien Collateral Agent has delivered a notice in writing to the Collateral Agent stating that no Priority Lien Obligations exist that have not been Discharged, and the Collateral
Agent may rely conclusively on any such written notice delivered by the Priority Lien Collateral Agent. The Collateral Agent shall have no duty to determine whether or not Priority Lien Obligations
exist that have not been Discharged. 

        Section
3.9    Waiver of Certain Subrogation, Marshalling, Appraisal and Valuation Rights.    

        (a)   To
the fullest extent permitted by law, the Holders of Notes, the Trustee and the Collateral Agent agree not to assert or enforce at any time any Priority Lien
Obligations exist that have not been Discharged: 

        (1)   any
right of subrogation to the rights or interests of holders of Priority Liens (as priority lienholders) (or any claim or defense based upon impairment of any such
right of subrogation); 

20

 

        (2)   any
right of marshalling accorded to a junior lienholder, as against the holders of Priority Liens (as priority lienholders), under equitable principles; or 

        (3)   any
statutory right of appraisal or valuation accorded under any applicable state law to a junior lienholder in a proceeding to foreclose a Priority Lien. 

        (b)   The
Lenders, the Priority Lien Collateral Agent and the other holders of Priority Liens or Priority Lien Obligations will not have any duty whatsoever, express or
implied, fiduciary or otherwise, to any holder of Note Obligations or Note Liens. 

        (c)   Any
holder of Note Obligations or Note Liens will not have any duty whatsoever, express or implied, fiduciary or otherwise, to the Lenders, the Priority Lien Collateral
Agent and the other holders of Priority Liens or Priority Lien Obligations. 

        (d)   To
the maximum extent permitted by law, each of the Holders of Notes, the Trustee and the Collateral Agent waives any claim it may at any time have against the Lenders,
the Priority Lien Collateral Agent or any other holder of Priority Liens or Priority Lien Obligations with respect to or arising out of any action or failure to act or any error of judgment or
negligence on the part of the Lenders, the Priority Lien Collateral Agent or any other holder of Priority Liens or Priority Lien Obligations or their respective directors, officers, employees or
agents with respect to any exercise of rights or remedies in respect of the Priority Liens or the Priority Lien Obligations or under the Priority Lien Documents or any transaction relating to the
Collateral. 

        (e)   To
the maximum extent permitted by law, each of the Lenders, the Priority Lien Collateral Agent or any other holder of Priority Liens or Priority Lien Obligations waives
any claim it may at any time have against any holder of Note Obligations or Note Liens, the Trustee and the Collateral Agent with respect to or arising out of any action or failure to act or any error
of judgment or negligence on the part of any holder of Note Obligations or Note Liens, the Trustee and the Collateral Agent or their respective directors, officers, employees or agents with respect to
any exercise of rights or remedies in respect of the Note Liens or under the Note Documents or any transaction relating to the Collateral. 

        Section
3.10    Limitation on Certain Relief and Defenses.    

        (a)   The
Note Liens will not be forfeited, invalidated, discharged or otherwise affected or impaired by any breach of any obligation of the Holders of Notes, the Trustee or
the Collateral Agent set forth in this Article 3. 

        (b)   The
Priority Liens will not be forfeited, invalidated, discharged or otherwise affected or impaired by any breach of any obligation of the Priority Lien Collateral Agent
set forth in this Article 3. 

        Section
3.11    Reinstatement.    

        (a)   If
the payment of any amount applied to any Priority Lien Obligations secured by any Priority Liens is later avoided or rescinded (including by settlement of any claim
for avoidance or rescission) or otherwise set aside, then: 

        (1)   to
the fullest extent lawful, all claims for the payment of such amount as Priority Lien Obligations and, to the extent securing such claims, all such Priority Liens
will be reinstated and entitled to the benefits of this Article 3; and 

        (2)   if
the Priority Lien Obligations were Discharged prior to such reinstatement, the contractual priority of the Priority Liens so reinstated, as set forth in Section 3.2,
will be concurrently reinstated on the date and to the extent such Priority Liens are reinstated, beginning on such date, as though no Priority Lien Obligations or Priority Liens had been outstanding
at any time prior to such date, and will remain effective until the Priority Lien Obligations secured by the reinstated Priority Liens are Discharged in cash; 

21

 

provided that the Company shall deliver forthwith an Officers' Certificate, and/or the Priority Lien Collateral Agent or any holder of Priority Lien
Obligations may deliver a written notice, to the Trustee and the Collateral Agent stating that Priority Lien Obligations have been reinstated and identifying the Priority Lien Obligations so
reinstated. 

        (b)   Notwithstanding
the foregoing, no: 

        (1)   action
to enforce Note Liens at any time prior to the date of any reinstatement pursuant to Section 3.11(a) (or, if later, the date on which the Officers' Certificate or
written notice referred to in Section 3.11(a) is delivered to the Trustee and the Collateral Agent); 

        (2)   receipt
or collection of Collateral or any other property by the Holders of Notes, the Trustee or the Collateral Agent at any time prior to the date of any reinstatement
(or, if later, the date on which the Officers' Certificate or written notice referred to in Section 3.11(a) is delivered to the Trustee and the Collateral Agent); 

        (3)   application
of any Collateral or other property to the payment of Note Obligations at any time prior to the date of any such reinstatement (or, if later, the date on
which the Officers' Certificate or written notice referred to in Section 3.11(a) is delivered to the Trustee and the Collateral Agent); or 

        (4)   other
action taken or omitted by the Holders of Notes, the Trustee or the Collateral Agent or other event occurring at any prior to the date of any such reinstatement
(or, if later, the date on which the Officers' Certificate or written notice referred to in Section 3.11 is delivered to the Trustee and the Collateral Agent), 

will,
if it was permitted at such time under this Article 3 without giving effect to any subsequent reinstatement under Section 3.11(a), (1) constitute a breach of any obligation of the Holders of
Notes, the Trustee or the Collateral Agent under this Article 3 or (2) give rise to any right, claim or interest
whatsoever enforceable by any holder of Priority Liens or Priority Lien Obligations or by any other Person. 

        Section
3.12    Amendment; Waiver.    

        (a)   No
amendment or supplement to the provisions of this Agreement will: 

        (1)   be
effective unless set forth in a writing signed by the Collateral Agent and the Trustee with the consent of the Holders of at least a majority in principal amount of
the Notes then outstanding (including, without limitation, Additional Notes); 

        (2)   become
effective at any time any Priority Lien Obligations exist that have not been Discharged unless such amendment or supplement is consented to in a writing signed by
the Priority Lien Collateral Agent acting upon the direction or with the consent of the holders of the applicable percentage (as required under the Credit Facilities) in principal amount of all
Priority Lien Debt then outstanding or committed under the Credit Facilities, voting as a single class. 

        (b)   Any
such amendment or supplement that imposes any obligation upon the Company or adversely affects the rights of the Company under Section 3.3 will become effective only
with the consent of the Company. 

        (c)   No
waiver of any of the provisions of this Agreement will in any event be effective unless set forth in a writing signed and consented to, as required for an amendment
under this Section 3.12, by the party to be bound thereby. 

22

 

        (d)   Notwithstanding
the provisions of Section 3.12(a), (b) or (c) without the consent of any Holder of Notes, the Company, the Collateral Agent and the Trustee may amend or
supplement this Agreement to: 

        (1)   cure
any ambiguity, defect or inconsistency; or 

        (2)   make
any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the rights under this Agreement of any
such Holder. 

        Section
3.13    Enforcement.    

        (a)   The
provisions of this Article 3 are intended for the sole benefit of, and may be enforced solely by, the holders of Priority Liens and Priority Lien Obligations granted
and outstanding from time to time; provided, however, that: 

        (1)   the
provisions of Section 3.3 are intended for the sole benefit of the Company and may be enforced by the Company solely upon the terms and conditions set forth in
Section 3.3; 

        (2)   the
provisions of Sections 3.4(e), 3.17, 3.19, 3.20, 3.21 and 3.22 are intended for the sole benefit of, and may be enforced solely by, the holders of Note Obligations
outstanding from time to time and the Collateral Agent. 

        (b)   The
obligations of the holders of Note Obligations, the Trustee and the Collateral Agent set forth in Sections 3.4, 3.5, 3.6, 3.7, 3.8, 3.9 and 3.10: 

        (1)   are
intended for the sole benefit of the holders of Priority Lien Obligations and the Priority Lien Collateral Agent and may be enforced only by the holders of Priority
Lien Obligations or by the Priority Lien Collateral Agent; and 

        (2)   will
terminate, unconditionally and (subject only to Sections 3.11 and 3.17) forever, upon either of (a) no Priority Lien Obligations existing that have not been
Discharged or (b) the release of the Note Liens in whole as provided under Section 10.06 of the Indenture. 

        (c)   No
right to enforce the ranking agreements or any other obligation set forth in this Agreement may be impaired by any act or failure to act by the Company, the
Collateral Agent, the Trustee or any holder of Note Obligations or by the failure of the Company, the Collateral Agent, the Trustee or any holder of Note Obligations to comply with this Agreement. 

        (d)   The
obligations of the Holders of Note Obligations, the Trustee, the Collateral Agent, the Credit Agreement Agent and the Priority Lien Collateral Agent under this
Agreement are continuing obligations that may be terminated only by an amendment that becomes effective as set forth in Section 3.11. 

        (e)   Except
for the Persons identified in this Section 3.13, to the extent and as to the obligations set forth in this Section 3.13, no other Person will be entitled to rely
on, have the benefit of or enforce the lien ranking agreements or any other obligation set forth in this Article 3. 

        Section
3.14    Limitations on Subordination of Notes and Other Note Obligations.    The provisions of this Article 3
are intended solely to set forth the relative ranking, as Liens, of the Note Liens as against the Priority Liens. Neither the Notes, the Note Guarantees and other Note Obligations nor the exercise or
enforcement of any right or remedy for the payment or collection thereof (other than the restrictions with respect to the enforcement of remedies against the Collateral as set forth in this Agreement)
are intended to be, or will ever be by reason of the provisions of this Article 3, in any respect subordinated, deferred, postponed, restricted or prejudiced. 

23

   
        Section 3.15    Relative Rights.    This Article 3 defines the relative rights, as lienholders, of holders of Note
Liens and holders of Priority Liens. Nothing in this Agreement will: 

        (1)   impair,
as between the Company and Holders of Notes, the obligation of the Company, which is absolute and unconditional, to pay principal of, premium and interest and
Liquidated Damages, if any, on the Notes in accordance with their terms or to perform any other obligation of the Company or any other Obligor under the Note Documents; 

        (2)   impair,
as between the Company and the Collateral Agent and the Trustee, the obligation of the Company, which is absolute and unconditional, to pay the fees and
reasonable expenses of the Collateral Agent and the Trustee to the extent set forth in the Note Documents or as otherwise agreed to in writing between the Company, on the one hand, and the Collateral
Agent and/or the Trustee, on the other hand; 

        (3)   affect
the relative rights of Holders of Notes and creditors of the Company or any of its Restricted Subsidiaries or any other Obligor (other than holders of Priority
Liens); 

        (4)   restrict
the right of any Holder of Notes to sue for payments that are then due and owing (but not enforce any judgment in respect thereof against any Collateral other
than the enforcement of any judgment in respect of any other action not specifically prohibited by Sections 3.4 or 3.5); 

        (5)   prevent
the Trustee, the Collateral Agent or any Holder of Notes from exercising against the Company or any other Obligor any of its other available remedies upon a
Default or Event of Default not specifically prohibited by Sections 3.4 or 3.5; or 

        (6)   restrict
the right of the Trustee, the Collateral Agent or any Holder of Notes to take any lawful action in an Insolvency or Liquidation Proceeding not specifically
prohibited by Sections 3.4 or 3.5. 

        If
the Company, any Restricted Subsidiary or any other Obligor fails because of this Article 3 to perform any obligation binding upon it under any Note Document, the failure shall be
still a Default or Event of Default. 

        Section
3.16    Bailee for Perfection.    

        (a)   The
Priority Lien Collateral Agent shall hold the Pledged Collateral in its possession or control (or in the possession or control of its agents or bailees) as bailee
for the Collateral Agent solely for the purpose of perfecting the security interest granted in such Pledged Collateral pursuant to the Security Documents, subject to the terms and conditions of this
Agreement. 

        (b)   So
long as any Priority Lien Obligations exist that have not been Discharged, the Priority Lien Collateral Agent shall be entitled to deal with the Pledged Collateral in
accordance with the terms of the Priority Lien Documents and this Agreement as if the Lien of the Collateral Agent therein under the Security Documents and all other Note Documents did not exist. The
rights of the Collateral Agent shall at all times be subject to the terms of this Agreement. 

        (c)   No
Priority Lien Collateral Agent shall have any obligation whatsoever to the Collateral Agent, the Trustee or the Holders of any Notes or other Note Obligations to
assure that the Pledged Collateral is genuine or owned by the Company or any other Obligor or otherwise or to preserve rights or benefits of any Person except as expressly set forth in this Section
3.16. The duties and responsibilities of the Priority Lien Collateral Agent under this Section 3.16 shall be limited solely to holding the Pledged Collateral as bailee or agent for the Collateral
Agent for purposes of perfecting the Lien therein held by the Collateral Agent to secure Note Obligations. No Priority Lien Collateral Agent shall have any obligation to the Collateral Agent, the
Trustee or the Holders of any Notes or other Note Obligation to care for, protect or insure any Pledged Collateral or to ensure that the Lien 

24

 

on
such Pledged Collateral has been properly or sufficiently created or entitled to any particular priority. 

        (d)   No
Priority Lien Collateral Agent shall have by reason of the Security Documents, the Note Documents, this Agreement or any other document or instrument a fiduciary
relationship in respect of the Collateral Agent, the Trustee or the Holders of Notes or any other Note Obligations. 

        (e)   The
Collateral Agent, the Trustee or the Holders of Notes or any other Note Obligation shall not have by reason of the Security Documents, the Note Documents, this
Agreement or any other document or instrument a fiduciary relationship in respect of the Priority Lien Collateral Agent. 

        Section
3.17    Additional Priority Lien Debt.    

        (a)   If
at any time following a Discharge of the Priority Lien Obligations, the Company or any Restricted Subsidiary incurs new Priority Lien Debt, the Company shall deliver
forthwith an Officers' Certificate, and/or the Priority Lien Collateral Agent in respect of, or any holder of, such new Priority Lien Debt may deliver a written notice, to the Trustee and the
Collateral Agent stating that new Priority Lien Debt has been incurred and identifying the Priority Lien Debt so incurred. 

        (b)   Notwithstanding
the foregoing, no: 

        (1)   action
to enforce Note Liens at any time following any such Discharge of the Priority Lien Obligations and prior to the date of any such new incurrence of Priority Lien
Debt (or, if later, the date on which the Officers' Certificate or written notice referred to in Section 3.17(a) is delivered to the Trustee and the Collateral Agent); 

        (2)   receipt
or collection of Collateral or any other property by the Holders of Notes, the Trustee or the Collateral Agent at any time following any such Discharge of the
Priority Lien Obligations and prior to the date of any such new incurrence of Priority Lien Debt (or, if later, the date on which the Officers' Certificate or written notice referred to in Section
3.17(a) is delivered to the Trustee and the Collateral Agent); 

        (3)   application
of any Collateral or other property to the payment of Note Obligations at any time following any such Discharge of the Priority Lien Obligations and prior to
the date of any such new incurrence of Priority Lien Debt (or, if later, the date on which the Officers' Certificate or written notice referred to in Section 3.17(a) is delivered to the Trustee and
the Collateral Agent); or 

        (4)   other
action taken or omitted by the Holders of Notes, the Trustee or the Collateral Agent or other event occurring at any time following any such Discharge of the
Priority Lien Obligations and prior to the date of any such new incurrence of Priority Lien Debt (or, if later, the date on which the Officers' Certificate or written notice referred to in Section
3.17(a) is delivered to the Trustee and the Collateral Agent), 

will,
if it was permitted at such time under the provisions described under Section 3.2 without giving effect to such new incurrence of Priority Lien Debt, (1) constitute a breach of any obligation of
the Holders of Notes, the Trustee or the Collateral Agent under the provisions described under Article 3 or (2) give rise to any right, claim or interest whatsoever enforceable by any holder of
Priority Liens or Priority Lien Obligations or by any other Person. 

        Section
3.18    Designation of New Priority Lien Debt.    The Company may, at any time, from time to time, designate
Priority Lien Debt by delivering to the Collateral Agent an Officers' Certificate as contemplated in the definition of "Priority Lien Debt." Any holder of Priority Lien Debt and the Priority Lien
Collateral Agent shall be entitled to conclusively rely on an Officers' Certificate from the Company addressed to any such holder or the Priority Lien Collateral Agent (a copy of which Officers'
Certificate is provided substantially concurrently to the Collateral Agent and the Trustee) that any 

25

 

borrowings,
issuances of letters of credit or other extensions of credit under any Credit Facility were incurred, and are permitted to be incurred, under the terms of the Indenture. Nothing in the
foregoing constitutes a waiver of any restrictions on indebtedness or liens appearing in the Credit Facilities, any Priority Lien Document or the Indenture. Upon receipt of such Officers' Certificate,
the Collateral Agent shall deliver to the Priority Lien Collateral Agent (without recourse and without any representation or warranty whatsoever) any Collateral in the Collateral Agent's possession,
to be held by the Priority Lien Collateral Agent in accordance with the applicable terms of the Priority Lien Documents and Section 3.16. Notwithstanding the foregoing, an untrue Officers' Certificate
designating Priority Lien Obligations may result in a Default or Event of Default under the Indenture. 

        Section
3.19    Option to Purchase Priority Lien Debt.    

        (a)   Any
Person or Persons at any time or from time to time designated by the holders of at least 25% in outstanding principal amount of the Notes (including any Additional
Notes), voting as a single class, as entitled to exercise all default purchase options as to Notes (including Additional Notes (if any)) then outstanding (an "Eligible
Purchaser") will have the right (without any obligation) to purchase, at any time during any of the exercise periods described in Section 3.19(c), all, but not less than all,
of the principal of and interest on and all prepayment or acceleration penalties and premiums in respect of all Priority Lien Debt outstanding at the time of purchase and all other Priority Lien
Obligations (except Unasserted Contingent Obligations) then outstanding, together with all Liens securing such Priority Lien Debt and all Guarantees and other supporting obligations relating to such
Priority Lien Debt: 

        (1)   for
a purchase price equal to: (A) in the case of Priority Lien Debt then outstanding (other than letters of credit), 100% of the principal amount and accrued interest
outstanding on such Priority Lien Debt on the date of purchase plus all other Priority Lien Obligations (except any Unasserted Contingent Obligations) then outstanding, and (B) in the case of each
outstanding letter of credit then outstanding as Priority Lien Debt, 100% of the reimbursement obligation in respect of such letter of credit as and when such letter of credit is funded, plus accrued
interest thereon, and all Priority Lien Obligations (other than Unasserted Contingent Obligations) relating to such letter of credit that are outstanding as and when such letter of credit is funded
(the amounts payable under clause (B), collectively, the "Acquired L/C Obligations"); 

        (2)   with
such purchase price payable in cash on the date of purchase against transfer to an Eligible Purchaser or its nominee or transferee (without recourse and without any
representation or warranty whatsoever, whether as to the enforceability of any Priority Lien Debt or the validity, enforceability,
perfection, priority or sufficiency of any Lien securing or Guarantee or other supporting obligation for any Priority Lien Debt or as to any other matter whatsoever, except only the representation and
warranty that the transferor owns free and clear of all Liens and encumbrances (other than participation interests not prohibited by the applicable Credit Facility), and has good right to convey,
whatever claims and interests it may have in respect of Priority Lien Debt and any such Liens, Guarantees and supporting obligations pursuant to the Priority Lien Documents);  provided that the purchase
price in respect of any outstanding letter of credit that remains unfunded on the date of purchase will be payable as and
when such letter of credit is funded (i) first from the cash collateral account described in paragraph (3) below, until the amounts contained therein
have been exhausted, and (ii) thereafter directly by the purchaser; and 

        (3)   with
such purchase accompanied by a deposit of cash collateral under the dominion and control of the Priority Lien Collateral Agent or its designee in an amount equal to
the lower of (1) 105% of the aggregate undrawn amount and (2) the percentage of the aggregate undrawn amount required for release of liens under the terms of the applicable Priority Lien Document, as
security for the purchaser's purchase of the Acquired L/C Obligations, subject to the agreement that if any such letter of credit (A) is cancelled and returned to the issuer thereof, (B) expires in
accordance 

26

 

with
its terms or (C) is drawn in its full face amount, the Priority Lien Collateral Agent or its designee holding such cash collateral will promptly return to the Eligible Purchaser an amount equal
to the excess, if any, of (i) the amount deposited as cash collateral in respect of such letter of credit, over (ii) the amount equal to 100% of the reimbursement obligation in respect of such letter
of credit as and when such letter of credit is cancelled, expires or is funded, as the case may be, plus accrued interest thereon, and all other Priority Lien Obligations (other than Unasserted
Contingent Obligations) relating to such letter of credit that are outstanding as and when such letter of credit is cancelled, expires or is funded, as the case may be. 

        (b)   The
right to exercise the purchase option described in Section 3.19(a) will be exercisable and legally enforceable upon at least ten Business Days' prior written notice
of exercise given to the Priority Lien Collateral Agent by (and at the sole option of) an Eligible Purchaser. 

        (c)   The
right to exercise the right to purchase the Priority Lien Obligations as described in this Section 3.19 may be exercised during each period that begins on: 

        (1)   the
commencement of an Insolvency or Liquidation Proceeding involving the Company or any other Obligor; or 

        (2)   the
first date on which the Priority Lien Collateral Agent or any holder of any Priority Lien Obligations, or any Person on its behalf, takes any action (other than the
issuance of a notice of default
or event of default or a reservation of rights letter delivered to the Company or any other Obligor) to foreclose, collect or otherwise realize in any way upon any Collateral, and 

in
each of clauses (1) and (2) above, ends on the 20th Business Day after receipt from the Company, the applicable Obligor, or the Priority Lien Collateral Agent by the Trustee of written notice of
the occurrence of the applicable event described in clause (1) or (2) above; provided that the Priority Lien Collateral Agent will have no obligation to
deliver any such notice to the Trustee. 

        (d)   The
remedies described in this Section 3.19 are in addition to any other remedy to which the Collateral Agent or any holder of Note Obligations is entitled at law or in
equity or otherwise. 

        (e)   The
obligations of the Lenders to sell their respective Priority Lien Obligations under this Section 3.19 are several and not joint and several. To the extent any Lender
(a "Defaulting Lender") breaches its obligation to sell its Priority Lien Obligations under this Section 3.19, nothing in this Section 3.19 will be
deemed to require the Priority Lien Collateral Agent or any other Lender to purchase such Defaulting Lender's Priority Lien Obligations for resale to the Holders of Notes and in all cases, the
Priority Lien Collateral Agent and each Lender complying with the terms of this Section 3.19 will not be deemed to be in default of this Agreement or otherwise be deemed liable for the actions or
inactions of any Defaulting Lender; provided, however, that nothing in this clause (e) will require any
Eligible Purchaser to purchase less than all of the Priority Lien Obligations. 

        Section
3.20    Delivery of Collateral and Proceeds of Collateral.    If no Priority Lien Obligations exist that have
not been Discharged, the Priority Lien Collateral Agent will, to the extent permitted by applicable law, deliver to (1) the Collateral Agent, or (2) such other Person as a court of competent
jurisdiction may otherwise direct, (a) any Collateral held by, or on behalf of, the Priority Lien Collateral Agent or any holder of Priority Lien Obligations, and (b) all proceeds of Collateral held
by, or on behalf of, the Priority Lien Collateral Agent or any holder of Priority Lien Obligations, whether arising out of an action taken to enforce, collect or realize upon any Collateral or
otherwise. Such Collateral and such proceeds will be delivered without recourse and without any representation or warranty whatsoever as to the enforceability, perfection, priority or sufficiency of
any Lien securing or Guarantee or other supporting obligation for any Priority Lien Debt or Note Debt, together with any necessary endorsements or as a court of competent jurisdiction may otherwise
direct. 

27

 

        Section
3.21    Delivery of Notices to Banks.    Promptly following the Discharge of Priority Lien Obligations, the
Priority Lien Collateral Agent shall deliver a notice in writing to the Trustee, the Collateral Agent and each bank with which a deposit account is maintained that is, or immediately prior to such
Discharge of Priority Lien Obligations was, subject to a Priority Lien, stating that the Priority Lien Obligations have been paid in full and Discharged. 

        Section
3.22    Delivery of Notices to Insurers.    Promptly following the Discharge of Priority Lien Obligations, the
Priority Lien Collateral Agent shall deliver a notice in writing to the Trustee, the Collateral Agent and each insurer with which the Company or any Guarantor maintains any insurance policy as to
which the Priority Lien Collateral Agent (or a representative or agent on its behalf) is named as loss payee or additional insured, stating that (a) the Priority Lien Obligations have been fully
satisfied and Discharged and (b) the Priority Lien Collateral Agent does not object to the payment from and after the date of such notice of insurance proceeds thereunder to the Collateral Agent. 

ARTICLE 4.
  MISCELLANEOUS  

        Section
4.1    Amendments, Modifications, and Waivers; Cumulative Remedies.    No amendment, modification or waiver of
any provision of this Agreement shall be effective unless the same shall be in writing and signed by each of the parties hereto, and then such amendment, modification or waiver shall be effective only
in the specific instance and for the specific purpose for which it is given. No failure to exercise, nor any delay in exercising, on the part of any party of, any right, power or privilege hereunder
shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. The rights and remedies provided herein are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law. 

        Section
4.2    Successors and Assigns.    The provisions of this Agreement shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors and assigns, including, without limitation, any person or entity that succeeds to the role of the Trustee, the Collateral Agent, the
Credit Agreement Agent or the Priority Lien Collateral Agent. 

        Section
4.3    Notices.    All notices, requests and demands to or upon the respective parties hereto to be effective
shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three (3) Business Days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, addressed as follows: 

If
to the Collateral Agent: 

Jeanie
Mar

Wells Fargo Bank, N.A.

Corporate Trust Services

707 Wilshire Blvd., 17th Floor

Los Angeles, CA 90017

Telecopier No.: 213-614-3355 

If
to the Administrative Agent: 

Cristin
M. O'Hara

MA DE 10010B

Fleet National Bank

100 Federal Street,

Boston, Massachusetts 02110

Telecopier No.: (617) 434-1897 

28

 

With
copies to: 

Robert
Barry

Bingham McCutchen, LLP

150 Federal Street

Boston, Massachusetts 02110

Telecopier No.: (617) 951-8736 

        Any
party may hereafter notify the other parties hereto of a change in its notice address. 

        Section
4.4    Counterparts.    This Agreement may be executed in one or more duplicate counterparts and when signed
by all of the parties listed below shall constitute a single binding agreement. 

        Section
4.5    Indenture Reference.    Notwithstanding anything to the contrary in this Agreement, any references
contained herein to any Section, clause, paragraph, definition or other provision of the Indenture (including any definition contained therein) shall be deemed to be a reference to such Section,
clause, paragraph, definition or other provision as in effect on the date of this Agreement; provided that any reference to any such Section, clause,
paragraph or other provision shall refer to such Section, clause, paragraph or other provision of the Indenture (including any definition contained therein) as amended or modified from time to time if
such amendment or modification has been (1) made in accordance with the Indenture and (2) at any time any Priority Lien Obligations exist that have not been Discharged, approved in a writing delivered
to the Trustee and the Collateral Agent by, or on behalf of, the requisite holders of Priority Lien Obligations as are needed under the terms of the applicable Priority Lien Documents to approve such
amendment or modification. 

        Section
4.6    Governing Law; Consent to Jurisdiction and Venue.    THIS AGREEMENT AND THE OBLIGATIONS ARISING
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, AND ANY APPLICABLE LAWS OF
THE UNITED STATES OF AMERICA. EACH OF THE PARTIES HERETO HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK CITY SHALL HAVE NON-EXCLUSIVE JURISDICTION TO HEAR AND
DETERMINE ANY CLAIMS OR DISPUTES AMONG THE PARTIES HERETO PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT, PROVIDED, THAT THE PARTIES HERETO ACKNOWLEDGE THAT
ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF NEW YORK CITY. EACH OF THE PARTIES HERETO EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION
OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH OF THE PARTIES HERETO HEREBY WAIVES ANY OBLIGATION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS.
EACH OF THE PARTIES HERETO HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER
PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO IT AT THE ADDRESS SET FORTH HEREIN, AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH PARTY'S ACTUAL RECEIPT
THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID. 

        Section
4.7    Mutual Waiver of Jury Trial.    BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL
TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION 

29

 

RULES),
THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF
ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, BETWEEN THE
PARTIES ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH, THIS AGREEMENT OR THE TRANSACTIONS RELATED THERETO. 

        Section
4.8    Specific Performance.    The parties hereto agree that irreparable damage would occur, and that
monetary damages would not be a sufficient remedy, in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached (or
threatened to be breached). Each of the parties shall be entitled to, and no other party hereto shall, directly or indirectly, oppose or otherwise contest any motion or other legal action brought to: 

        (1)   obtain,
an injunction or injunctions or other equitable relief as a remedy to prevent breaches (or threatened breaches) of this Agreement; and 

        (2)   enforce
specifically the terms and provisions of this Agreement in any court of the United States or any state having jurisdiction, without proof of actual damages or a
requirement that bond be posted. 

        The
remedies described in this Agreement are in addition to any other remedy to which any of the parties is entitled at law or in equity or otherwise. 

        Section
4.9    Entire Agreement.    This Agreement integrates all the terms and conditions mentioned herein or
incidental hereto and supersedes all oral negotiations and prior writings in respect to the subject matter hereof. In the event of any conflict between the terms, conditions and provisions of this
Agreement and any such agreement, document or instrument, the terms, conditions and provisions of this Agreement shall prevail. 

        Section
4.10    Severability.    In case any one or more of the provisions contained or incorporated by reference in
this Agreement should be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby, and the parties hereto shall enter into good faith negotiations to replace the invalid,
illegal or unenforceable provision with a view to obtaining the same commercial effect as this Agreement would have had if such provision had been legal, valid and enforceable. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]  

30

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

	 	 	WELLS FARGO BANK, N.A.,

as Collateral Agent
	

 	
 	

By:	
 	

/s/ Jeanie Mar
 Name:  Jeanie Mar

Title:    Vice President
	

 	
 	
WELLS FARGO BANK, N.A.,

as Trustee
	

 	
 	

By:	
 	

/s/ Jeanie Mar
 Name:  Jeanie Mar

Title:    Vice President
	

 	
 	
FLEET NATIONAL BANK, N.A.,

as Administrative Agent
	

 	
 	

By:	
 	

/s/ Cristin M. O'Hara
 Name:  Cristin M. O'Hara

Title:    Director

S-1

 
CONSENT AND AGREEMENT  

        Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Intercreditor Agreement as of the date thereof and agrees to be bound by the terms
and provisions thereof and take no action which is inconsistent with, or to contest or challenge the validity of, any term or provision thereof, and agrees that its successors and assigns shall be
bound by the foregoing. 

	 	 	REAL MEX RESTAURANTS, INC.

EL TORITO FRANCHISING COMPANY

EL TORITO RESTAURANTS, INC.

ACAPULCO RESTAURANTS, INC.

ACAPULCO RESTAURANTS OF ENCINITAS, INC.

ACAPULCO RESTAURANT OF VENTURA, INC.

ACAPULCO RESTAURANT OF WESTWOOD, INC.

ACAPULCO MARK CORP.

ACAPULCO RESTAURANT OF DOWNEY, INC.

ACAPULCO RESTAURANT OF MORENO VALLEY, INC.

MURRAY PACIFIC

REAL MEX FOODS, INC.

ALA DESIGN, INC.

TARV, INC.

EL PASO CANTINA, INC.
	

 	
 	
By:	
 	

/s/ Frederick F. Wolfe
 Name:  Frederick F. Wolfe

Title:    President and Chief Executive Officer

S-2

 
CONSENT AND AGREEMENT  

        The undersigned hereby acknowledges receipt of a copy of the foregoing Intercreditor Agreement as of the date thereof and agrees to be bound by the terms and
provisions thereof and take no action which is inconsistent with, or to contest or challenge the validity of, any term or provision thereof, and agrees that its successors and assigns shall be bound
by the foregoing. 

	 	 	WELLS FARGO BANK, N.A.,
 as Trustee
	

 	
 	

By:	
 	

/s/ Jeanie Mar
 Name:  Jeanie Mar

Title:    Vice President

S-3

QuickLinks

Exhibit 10.2 Intercreditor Agreement dated as of March 31, 2004QuickLinks
 -- Click here to rapidly navigate through this document

 
 
Exhibit 10.3  

AMENDED AND RESTATED SECURITIES HOLDERS AGREEMENT  

 Dated as of  

 June 28, 2000  

 among  

 ACAPULCO ACQUISITION CORP.  

 BRUCKMANN, ROSSER, SHERRILL & CO., L.P.  

 FURMAN SELZ INVESTORS II, L.P.  

 and  

 OTHER INVESTORS  

   TABLE OF CONTENTS  

	 
	 	 
	 	 
	 	PAGE

	 	 	ARTICLE I REPRESENTATIONS, WARRANTIES AND COVENANTS OF EACH INVESTOR	 	2
	 	 	1.1.	 	Representations and Warranties of Each Investor	 	2
	 	 	1.2.	 	Legend	 	3
	

 	
 	

ARTICLE II COVENANTS OF EACH INVESTOR	
 	

3
	 	 	2.1.	 	Provisions Regarding Transfers of Securities	 	3
	 	 	2.2.	 	Notation	 	6
	 	 	2.3.	 	Limitation on Dividends and Repurchase of Securities	 	6
	 	 	2.4.	 	Reliance	 	7
	

 	
 	

ARTICLE III OTHER COVENANTS AND REPRESENTATIONS	
 	

7
	 	 	3.1.	 	Financial Statements and Other Information	 	7
	 	 	3.2.	 	Sale of Acquisition Corp	 	7
	 	 	3.3.	 	Tag-Along Rights	 	8
	 	 	3.4.	 	Preemptive Rights	 	10
	 	 	3.5.	 	Purchaser Representative	 	11
	

 	
 	

ARTICLE IV CORPORATE ACTIONS	
 	

11
	 	 	4.1.	 	Certificate of Amendment and Certificate of Increase	 	11
	 	 	4.2.	 	Directors	 	12
	 	 	4.3.	 	Right to Remove Certain of Acquisition Corp.'s Directors	 	12
	 	 	4.4.	 	Right to Fill Certain Vacancies in Acquisition Corp.'s Board	 	12
	 	 	4.5.	 	Subsidiary Governance	 	12
	 	 	4.6.	 	Management Rights	 	12
	 	 	4.7.	 	Confidentiality	 	13
	 	 	4.8.	 	Arms-Length Transactions	 	14
	

 	
 	

ARTICLE V REGISTRATION RIGHTS	
 	

15
	

 	
 	

ARTICLE VI MISCELLANEOUS	
 	

15
	 	 	6.1.	 	Amendment and Modification	 	15
	 	 	6.2.	 	Survival of Representations and Warranties	 	15
	 	 	6.2.	 	regardless of any investigation made by a party hereto or on its behalf	 	15
	 	 	6.3.	 	Exercise of Old Warrants	 	15
	 	 	6.4.	 	Successors and Assigns; Entire Agreement	 	16
	 	 	6.5.	 	Separability	 	16
	 	 	6.6.	 	Notices	 	16
	 	 	6.7.	 	Governing Law	 	18
	 	 	6.8.	 	Headings	 	18
	 	 	6.9.	 	Counterparts	 	18
	 	 	6.10.	 	Further Assurances	 	18
	 	 	6.11.	 	Remedies	 	18
	 	 	6.12.	 	Party No Longer Owning Securities	 	18
	 	 	6.13.	 	No Effect on Employment	 	18
	 	 	6.14.	 	Pronouns	 	18

i

   AMENDED AND RESTATED SECURITIES HOLDERS AGREEMENT  

        AMENDED AND RESTATED SECURITIES HOLDERS AGREEMENT, dated as of June 28, 2000 (the "Agreement"), by and among (1) ACAPULCO ACQUISITION CORP., a
Delaware corporation ("Acquisition Corp."), (2) BRUCKMANN, ROSSER, SHERRILL & CO., L.P., a Delaware limited partnership ("BRS"), BRUCKMANN, ROSSER, SHERRILL & CO. II L.P. ("BRS
II") and the individuals listed on Exhibit A-1 as the BRS Co-Investors (the "BRS Co-Investors" and, together with BRS and BRS II, the "BRS Entities"),
(3) FURMAN SELZ INVESTORS II, L.P., a Delaware limited partnership ("FSI"), and the entities and individuals listed on Exhibit A-1 as the FSI Co-Investors (the
"FSI Co-Investors" and, together with FSI, the "FSI Entities"), (4) BANCBOSTON INVESTMENTS INC., a Massachusetts corporation ("BancBoston"), (5) CANTERBURY MEZZANINE
CAPITAL, L.P., a Delaware limited partnership ("Canterbury Mezzanine"), CANTERBURY DETROIT PARTNERS, L.P., a Delaware limited partnership ("Canterbury Detroit") and CANTERBURY MEZZANINE CAPITAL II,
L.P., a Delaware limited partnership ("Canterbury Mezzanine II" and, together with Canterbury Mezzanine and Canterbury Detroit, "Canterbury" or the "Canterbury Entities"), (6) BLACKSTONE
MEZZANINE PARTNERS L.P., a Delaware limited partnership ("Blackstone Partners") and BLACKSTONE MEZZANINE HOLDINGS L.P., a Delaware limited partnership ("Blackstone Holdings" and, together with
Blackstone Partners, "Blackstone" or the "Blackstone Entities"), (7) the individuals listed on Exhibit A hereto as "Additional Investors" (the "Additional Investors"), (8) the
individuals listed on the signature pages hereto as "Additional Option Holders" (the "Additional Option Holders") and, (9) any person who agrees in writing with the Company to join in and
become a party to this Agreement (the "Subsequent Investors"). The BRS Entities, the FSI Entities, BancBoston, the Canterbury Entities, the Blackstone Entities, the Additional Investors, the
Additional Option Holders and the Subsequent Investors are sometimes referred to hereinafter individually as an "Investor" and collectively as the "Investors." 

Background  

        A.    Pursuant
to a Securities Purchase and Holders Agreement, dated as of July 13, 1998 (the "Original Agreement"), certain of the Investors purchased from Acquisition
Corp. an aggregate of (i) 6,000 shares of Series A 12.5% Cumulative Compounding Preferred Stock, par value $.001 per share ("Senior Preferred Stock"), of Acquisition Corp.,
(ii) 4,000 shares of Series B 13.5% Cumulative Compounding Preferred Stock, par value $.001 per share ("Junior Preferred Stock"), of Acquisition Corp., (iii) 93,636.4 shares of
Class A Common Stock, par value $.001 per share ("Class A Common Stock") and (iv) 6,363.6 shares of Class B Common Stock, par value $.001 per share ("Class B Common
Stock"), of Acquisition Corp. 

        B.    Pursuant
to Warrant Agreements, each dated as of July 13, 1998 (the "Old Warrant Agreement"), by and among Acquisition Corp. and Canterbury Mezzanine, and
Acquisition Corp. and Canterbury Detroit, Canterbury Mezzanine and Canterbury Detroit have acquired Warrants (the "Old Warrants") to purchase an aggregate of 11,111.11 shares of Class A Common
Stock of Acquisition Corp. The Old Warrants are being exercised by Canterbury Mezzanine and Canterbury Detroit on the date hereof (the "Closing Date"). 

        C.    Pursuant
to the Acapulco Acquisition Corp. Stock-Based Incentive Compensation Plan, Acquisition Corp. has granted options to the officers, employees and consultants of
Acquisition Corp. (including certain of the Additional Investors) named on Schedule I to purchase up to an aggregate of 10,200 shares of Class A Common Stock (collectively, the
"Options"). 

        D.    Acquisition
Corp. has filed (i) a Certificate of Amendment to Acquisition Corp.'s Amended and Restated Certificate of Incorporation, increasing the authorized
number of shares of Class A Common Stock to 1,000,000 and the authorized number of shares of Class B Common Stock to 1,000,000 (the "Certificate of Amendment") and (ii) a
Certificate of Increase of Shares Designated as 

1

 

Senior
Preferred Stock and Junior Preferred Stock, increasing the authorized number of shares of Senior Preferred Stock to 18,000 and the authorized number of shares of Junior Preferred Stock to
12,000 (the "Certificate of Increase"). 

        E.    Pursuant
to Subscription Agreements, each dated as of the date hereof, by and among Acquisition Corp. and the Investors parties thereto (each, a "Subscription
Agreement"), certain of the Investors are purchasing from Acquisition Corp. on the Closing Date (i) the number of shares of Senior Preferred Stock, (ii) the number of shares of Junior
Preferred Stock, and (iii) the number of shares of Class A Common Stock or Class B Common Stock set forth opposite each such Investor's name on Exhibit A to each
Subscription Agreement (collectively, the "New Securities"). The closing for the issuance and sale of the New Securities is referred to herein as the "Closing." 

        F.     Pursuant
to Warrant Agreements, each dated as of the date hereof (each, a "Warrant Agreement" and collectively the "Warrant Agreements") by and between Acquisition Corp.
and Canterbury Mezzanine II, Acquisition Corp. and Blackstone Partners, and Acquisition Corp. and Blackstone Holdings, on the Closing Date Canterbury Mezzanine II, Blackstone Partners and Blackstone
Holdings are acquiring Warrants (the "Warrants") to purchase the number of shares of Class A Common Stock of Acquisition Corp. set forth opposite such Investor's name on Exhibit A. 

        G.    Set
forth opposite each Investor's name on Exhibit A is the aggregate amount of Senior Preferred Stock, Junior Preferred Stock, Class A Common Stock or
Class B Common Stock owned by such Investor immediately after the Closing. 

        H.    In
connection with the foregoing transactions, the parties hereto desire to amend and restate the Original Agreement as set forth herein regarding their rights and
obligations with respect to the Securities. 

        I.     As
used herein, the term "Preferred Stock" shall mean the Senior Preferred Stock and the Junior Preferred Stock, the term "Common Stock" shall mean the Class A
Common Stock and the Class B Common Stock, and the term "Securities" shall mean the Common Stock, the Preferred Stock, and the Warrants held by any party hereto (including New Securities),
including shares of Common Stock, Preferred Stock, Warrants and all other securities of Acquisition Corp. (or a successor to Acquisition Corp.) received on account of ownership of the Common Stock,
Preferred Stock, or the Warrants, including all securities issued in connection with any merger, consolidation, stock dividend, stock distribution, stock split, reverse stock split, stock combination,
recapitalization, reclassification, subdivision, conversion or similar transaction in respect thereof. A reference to any class of Securities shall be deemed to include reference to all Securities
issued in respect thereof. 

Terms  

        In consideration of the mutual representations, warranties and covenants contained herein, and intending to be legally bound hereby, the parties hereto agree as
follows: 

ARTICLE I

REPRESENTATIONS, WARRANTIES AND COVENANTS OF EACH INVESTOR  

        1.1.  Representations and Warranties of Each Investor.    Each of the Investors severally represents and warrants to
Acquisition Corp. that such Investor has full legal right, power and authority (including the due authorization by all necessary corporate action in the case of corporate Investors) to enter into this
Agreement and to perform such Investor's obligations hereunder without the need for the consent of any other person or entity; this Agreement has been duly authorized, executed and delivered and
constitutes the legal, valid and binding obligation of such Investor enforceable against such Investor in 

2

 

accordance
with the terms hereof; and the execution, delivery and performance of this Agreement by such Investor do not contravene or violate any laws, rules or regulations applicable to him or it. 

        1.2.  Legend.    The certificates representing the Securities shall bear the following legend in addition to any
other legend required under applicable law: 

THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED WITHOUT REGISTRATION UNDER
THE SECURITIES ACT OR STATE SECURITIES LAWS OR AN OPINION OF COUNSEL, SATISFACTORY TO ACAPULCO ACQUISITION CORP., THAT SUCH REGISTRATION IS NOT REQUIRED. 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO THE TERMS AND CONDITIONS OF A SECURITIES PURCHASE AND HOLDERS AGREEMENT BY AND AMONG ACAPULCO ACQUISITION CORP. AND THE HOLDERS
SPECIFIED THEREIN, AS AMENDED, A COPY OF WHICH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF ACAPULCO ACQUISITION CORP. THE SALE, TRANSFER OR OTHER DISPOSITION OF THE SECURITIES IS SUBJECT TO THE
TERMS OF SUCH AGREEMENT AND THE SECURITIES ARE TRANSFERABLE ONLY UPON PROOF OF COMPLIANCE THEREWITH. 

ARTICLE II

COVENANTS OF EACH INVESTOR  

        2.1.    Provisions Regarding Transfers of Securities. 

        The
following provisions shall apply with respect to the Transfer (as hereinafter defined) of any Securities owned by any Investor: 

        (a)   Except
as provided in Section 3.3 hereof and the provisions set forth below in this Section 2.1, each Investor is prohibited from Transferring any of his
or its Securities except in the following circumstances: (i) to Permitted Transferees (as hereinafter defined), (ii) except in the case of a BRS Entity, to another Investor,
(iii) pursuant to an Approved Sale (as hereinafter defined) and in accordance with Section 3.2 hereof, (iv) a Transfer of Common Stock by any of the BRS Entities or the FSI
Entities as to which Tag-Along Rights (as defined in Section 3.3 below) apply and (v) pursuant to an effective registration statement under the Securities Act of 1933, as
amended (the "Securities Act") following exercise of the Investor's registration rights under the Registration Rights Agreement (as defined in Article V);  provided, however, that, in the case of any such Transfer, except in the case of an Approved Sale or
sale pursuant to an effective registration statement, each such transferee shall take such Securities subject to and be fully bound by the terms of this Agreement applicable to it with the same effect
as if it were a party hereto; and provided, further, that no Transfer shall be effected except in
compliance with the registration requirements of the Securities Act (and applicable state securities laws) or pursuant to an available exemption therefrom. 

        (b)   No
Transfer shall, in any event, be made by any Investor unless in connection with such Transfer, the applicable transferee has complied with the terms and provisions of
this Agreement. No Investor or transferee may effect any Transfer of Securities, whether to a Permitted Transferee or otherwise, unless the transferee executes an agreement pursuant to which such
transferee agrees to be bound by the terms and provisions of this Agreement applicable to the transferor (except in the case of an Approved Sale, a sale pursuant to an effective registration statement
under the Securities Act or as otherwise specifically provided herein). In addition, no Investor or transferee 

3

 

may
effect any Transfer of Securities, whether to a Permitted Transferee or otherwise, if Acquisition Corp. reasonably determines that the proposed Transfer would adversely affect Acquisition Corp.'s
or any of its subsidiaries' alcoholic beverage licenses or permits. Any purported Transfer in violation of this covenant shall be null and void and of no force and effect and the purported transferee
shall have no rights or privileges in or with respect to Acquisition Corp. As used herein, "Transfer" means the making of any sale, exchange, assignment, hypothecation, gift, security interest, pledge
or other encumbrance, or any contract therefor, any voting trust or other agreement or arrangement with respect to the transfer of voting rights (including any proxy or similar arrangement (whether or
not revocable)) or any other beneficial interest in any of the Securities, the creation of any other claim thereto or any other transfer or disposition whatsoever, whether voluntary or involuntary,
affecting the right, title, interest or possession in or to such Securities. 

        Prior
to any proposed Transfer of any Securities, the holder thereof shall give written notice to Acquisition Corp. describing the manner and circumstances of the proposed Transfer
accompanied by a written opinion of legal counsel, addressed to Acquisition Corp. and the transfer agent, if other than Acquisition Corp., and reasonably satisfactory in form and substance to each
addressee, to the effect that the proposed Transfer of the Securities may be effected without registration under the Securities
Act and applicable state securities laws. Each certificate evidencing the Securities transferred shall bear the legend set forth in Section 1.2, except that such certificate shall not bear the
first paragraph of such legend if the opinion of counsel referred to above is to the further effect that the first paragraph of such legend is not required in order to establish compliance with any
provision of the Securities Act or applicable state securities laws. 

        (c)   As
used herein, "Permitted Transferee" shall mean: 

        (i)    in
the case of any BRS Entity and its Permitted Transferees, (A) any other BRS Entity, (B) any general partner of a BRS Entity (a "BRS Partner") and any
corporation, partnership or other entity that is an Affiliate (as hereinafter defined) of any BRS Entity or BRS Partner (collectively, "BRS Affiliates"), (C) any managing director, director,
general partner, limited partner, officer or employee of any BRS Entity or any BRS Affiliate (provided that in the case of a Transfer to BRS' limited partners, such Transfer shall be made pro rata to
all such partners in accordance with the terms of its agreement of limited partnership), or any spouse or lineal descendant of any BRS Entity or any heir, executor, administrator, testamentary
trustee, legatee or beneficiary of a BRS Entity or any of the foregoing persons described in this clause (C) provided,  however, that no BRS Affiliate
that becomes such an entity primarily for the purpose of effecting a transfer of Securities shall be considered a
Permitted Transferee (collectively, "BRS Associates"), (D) any trust, the beneficiaries of which, or any corporation, limited liability company or partnership, the stockholders, members or
general and limited partners of which include only BRS Entities, BRS Affiliates, or BRS Associates, and (E) any other transferee of Common Stock from any BRS Entity;  provided, that the aggregate
number of shares of Common Stock transferred to such transferee, together with all other transfers made by all BRS Entities
since the Closing Date to Permitted Transferees specified in this clause (E), shall not exceed 10% of the total number of shares of Common Stock set forth opposite the names of such BRS
Entities on Exhibit A hereto; and 

        (ii)   in
the case of any FSI Entity and its Permitted Transferees, (A) any other FSI Entity, (B) any general partner of a FSI Entity (a "FSI Partner") and any
corporation, partnership or other entity that is an Affiliate (as hereinafter defined) of any FSI Entity or FSI Partner (collectively, "FSI Affiliates"), (C) any managing director, director,
general partner, limited partner, officer or employee of any FSI Entity or any FSI Affiliate (provided that in the case of a Transfer to FSI's limited partners, such Transfer shall be made pro rata to
all such 

4

 

partners
in accordance with the terms of its agreement of limited partnership), or any spouse or lineal descendant of any FSI Entity or any heir, executor, administrator, testamentary trustee, legatee
or beneficiary of a FSI Entity or any of the foregoing persons described in this clause (C) provided,  however, that no FSI Affiliate that becomes such
an entity primarily for the purpose of effecting a transfer of Securities shall be considered a
Permitted Transferee (collectively, "FSI Associates"), (D) any trust, the beneficiaries of which, or any corporation, limited liability company or partnership, the stockholders, members or
general and limited partners of which include only FSI Entities, FSI Affiliates, or FSI Associates, and (E) any other transferee of Common Stock from any FSI Entity  provided, that the aggregate
number of shares of Common Stock transferred to such transferee, together with all other transfers made by all FSI Entities
since the Closing Date to Permitted Transferees specified in this clause (E), shall not exceed 10% of the total number of shares of Common Stock set forth opposite the names of such FSI
Entities on Exhibit A hereto; and 

        (iii)  in
the case of BancBoston and its Permitted Transferees (A) any Affiliate (as hereinafter defined) of BancBoston (collectively, "BancBoston Affiliates"),
(B) any managing director, director, general partner, limited partner, officer or employee of BancBoston or any BancBoston Affiliate, or any spouse or lineal descendant of BancBoston or any
heir, executor, administrator, testamentary trustee, legatee or beneficiary of BancBoston or any of the foregoing persons described in this clause (B)  provided, however, that no BancBoston Affiliate that becomes such an entity primarily for the purpose of
effecting a transfer of Securities shall be considered a Permitted Transferee (collectively, "BancBoston Associates"), (C) any trust, the beneficiaries of which, or any corporation, limited
liability company or partnership, the stockholders, members or general and limited partners of which include only BancBoston, BancBoston Affiliates, or BancBoston Associates, and (D) any other
transferee of Securities from BancBoston provided such transferee is a nationally recognized financial institution (or an Affiliate of such an institution controlled by such institution) of
substantial reputation and standing in the financial community. 

        (iv)  in
the case of any Canterbury Entity and its Permitted Transferees (A) any other Canterbury Entity, (B) any Affiliate (as hereinafter defined) of any
Canterbury Entity (collectively, "Canterbury Affiliates"), (C) any managing director, director, general partner, limited partner, officer or employee of any Canterbury Entity or any Canterbury
Affiliate (provided that in the case of a Transfer to Canterbury's limited partners, such Transfer shall be made pro rata to all such partners in accordance with the terms of its agreement of limited
partnership), or any spouse or lineal descendant of any Canterbury Affiliate or any heir, executor, administrator, testamentary trustee, legatee or beneficiary of a Canterbury Affiliate or any of the
foregoing persons described in this clause (C) provided, however, that no Canterbury Affiliate
that becomes such an entity primarily for the purpose of effecting a transfer of Securities shall be considered a Permitted Transferee (collectively, "Canterbury Associates"), (D) any trust,
the beneficiaries of which, or any corporation, limited liability company or partnership, the stockholders, members or general and limited partners of which include only Canterbury Entities,
Canterbury Affiliates, or Canterbury Associates, (E) any assignee or participant in the subordinated loan provided to Acquisition Corp. by Canterbury Mezzanine II pursuant to the Subordinated
Loan Agreement, dated as of the date hereof by and among Acquisition Corp., Canterbury Mezzanine II, Blackstone and the other lenders named therein (as amended, restated, modified from time to time,
the "Subordinated Loan Agreement") and (F) any other transferee of Common Stock from any Canterbury Entity; provided, that (i) the
aggregate number of shares of Common Stock transferred to such transferee, together with all other transfers made by all Canterbury Entities since the Closing Date to Permitted Transferees specified
in this clause (F), shall not exceed 10% of the total number of shares of Common Stock and Warrants to purchase Common Stock set forth 

5

 

opposite
the names of such Canterbury Entities on Exhibit A hereto and (ii) such transferee shall (x) not be a competitor of Acquisition Corp. (as determined in good faith by the
Board of Directors of Acquisition Corp.) and (y) shall otherwise be reasonably acceptable to Acquisition Corp. 

        (v)   in
the case of any Blackstone Entity and its Permitted Transferees (A) any other Blackstone Entity, (B) any Affiliate (as hereinafter defined) of any
Blackstone Entity (collectively, "Blackstone Affiliates"), (C) any managing director, director, general partner, limited partner, officer or employee of any Blackstone Entity or any Blackstone
Affiliate (provided that in the case of a Transfer to Blackstone's limited partners, such Transfer shall be made to such partners in accordance with the terms of its agreement of limited partnership),
or any spouse or lineal descendant of any Blackstone Affiliate or any heir, executor, administrator, testamentary trustee, legatee or beneficiary of a Blackstone Affiliate or any of the foregoing
persons described in this clause (C) provided, however, that no Blackstone Affiliate that becomes
such an entity primarily for the purpose of effecting a transfer of Securities shall be considered a Permitted Transferee (collectively, "Blackstone Associates"), (D) any trust, the
beneficiaries of which, or any corporation, limited liability company or partnership, the stockholders, members or general and limited partners of which include only Blackstone Entities, Blackstone
Affiliates, or Blackstone Associates, and (E) any assignee or participant in the subordinated loan provided to Acquisition Corp. by Blackstone pursuant to the Subordinated Loan Agreement and
(F) any other transferee of Common Stock from any Blackstone Entity; provided, that (i) the aggregate number of shares of Common Stock
transferred to such transferee, together with all other transfers made by all Blackstone Entities since the Closing Date to Permitted Transferees specified in this clause (F), shall not exceed
10% of the total number of Warrants to purchase shares of Common Stock set forth opposite the names of such Blackstone Entities on Exhibit A hereto and (ii) such transferee shall
(x) not be a competitor of Acquisition Corp. (as determined in good faith by the Board of Directors of Acquisition Corp.) and (y) shall otherwise be reasonably acceptable to Acquisition
Corp. 

        (vi)  in
the case of any other Investor who is a natural person, (A) Acquisition Corp., (B) any spouse or lineal descendant of such Investor, or any heir,
executor, administrator, testamentary trustee, legatee or beneficiary of such Investor or any of the foregoing persons referred to in this clause (B) (collectively, "Additional Investor
Associates") and (C) any trust, the beneficiaries of which, or any partnership, the partners of which, include only such Additional Investor Associates. 

        (d)   As
used herein, "Affiliate" of any person means any person, directly or indirectly, controlling, controlled by or under common control with such person, and includes any
person who is an officer, director or employee of such person and any person who would be deemed to be an "affiliate" or an "associate" of such person, as those terms are defined in
Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended. As used in this definition, "controlling" (including, with its correlative
meanings, "controlled by" and "under common control with") means possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of
securities, partnership or other ownership interests, by contract or otherwise). 

        2.2.  Notation.    A notation will be made in the appropriate transfer records of Acquisition Corp. with respect to
the restrictions on transfer of the Securities referred to in this Agreement. 

        2.3.  Limitation on Dividends and Repurchase of Securities.    Each Investor understands that concurrently with the
issuance of the Securities, Acquisition Corp. is entering into certain financing agreements (including the Subordinated Loan Agreement) which will contain prohibitions, restrictions 

6

 

and
limitations on the ability of Acquisition Corp. to purchase any of the Securities, to pay dividends on the Common Stock and Preferred Stock, to enter into a change in control, merger,
consolidation, sale of stock or assets, and with respect to other matters. By becoming a party to this Agreement, Canterbury and Blackstone are not consenting to any matter that would, absent their
consent, be prohibited under the terms of the Subordinated Loan Agreement. The Investors further acknowledge that each Warrant Agreement contains restrictions on Acquisition Corp.'s ability to amend
the terms of the Preferred Stock. 

        2.4.  Reliance.    Each Investor acknowledges that Acquisition Corp. and each of the other Investors is entering
into this Agreement in reliance upon such Investor's representations and warranties made herein and in each Subscription Agreement (which representations and warranties are incorporated by reference
herein) and such Investor's covenants and agreements contained herein. 

ARTICLE III

OTHER COVENANTS AND REPRESENTATIONS  

        3.1.  Financial Statements and Other Information.    So long as any Investor (together with its Affiliates) owns
more than 2% of the outstanding Common Stock, Acquisition Corp. shall deliver to such Investor: 

        (a)   as
soon as available and in any event within 45 days after the end of each of the first three quarters of each fiscal year of Acquisition Corp., consolidated
balance sheets of Acquisition Corp. and its subsidiaries as of the end of such period, and consolidated statements of income and cash flows of Acquisition Corp. and its subsidiaries for the period
then ended prepared in conformity with generally accepted accounting principles applied on a consistent basis, except as otherwise noted therein, and subject to the absence of footnotes and to
year-end adjustments; and 

        (b)   as
soon as available and in any event within 90 days after the end of each fiscal year of Acquisition Corp., a consolidated balance sheet of Acquisition Corp. and
its subsidiaries as of the end of such year, and consolidated statements of income and cash flows of Acquisition Corp. and its subsidiaries for the year then ended prepared in conformity with
generally accepted accounting principles applied on a consistent basis, except as otherwise noted therein, together with an auditor's report thereon of a firm of established national reputation. 

        3.2.  Sale of Acquisition Corp. or ARI. 

        (a)   If
the Board of Directors and holders of at least a majority of Acquisition Corp.'s Common Stock then outstanding approve the sale of Acquisition Corp. or ARI to an
unaffiliated third person (whether by merger, consolidation, reorganization, sale of all or substantially all of its assets or sale of a majority of the outstanding capital stock) (an "Approved
Sale"), each Investor and his or its transferees (including Permitted Transferees, but excluding transferees who receive such shares of Common Stock unrestricted as to transfer under the Securities
Act) ("Transferees") will consent to, vote for, and raise no objections against, and waive dissenters and appraisal rights (if any) with respect to, the Approved Sale, and will sell all of his or its
Securities in such Approved Sale upon the terms and conditions approved by the Board of Directors of Acquisition Corp. and the holders of a majority of the Common Stock then outstanding, provided that
all Investors receive the same form and amounts of consideration per share of the applicable Securities. Each Investor and Transferee will take all necessary and desirable actions in connection with
the consummation of an Approved Sale, including, without limitation, executing the applicable purchase agreements and joining in any indemnification obligations (whether directly to the buyer in such
Approved Sale or pursuant to a contribution arrangement) on a pro rata basis in accordance with the consideration received in such Approved Sale. 

7

 

        (b)   The
obligations of each of the Investors and the Transferees with respect to an Approved Sale are subject to the satisfaction of the conditions that: (i) upon the
consummation of the Approved Sale, all of the Investors and the Transferees will receive the same form and amount of consideration per share of the applicable Securities and the same form and amount
of any other compensation, if any, paid in connection with the Approved Sale, or if any holder of Securities is given an option as to the form and amount of consideration to be received, all Investors
and Transferees will be given the same option, and that the amount of consideration per share of Preferred Stock shall not exceed its Liquidation Preference (as such term is defined in the Certificate
of Incorporation) and (ii) the terms of the Approved Sale shall not include any provisions subjecting an Investor or its Transferees to any indemnification obligation or other liability beyond
the value of the consideration received in the Approved Sale by such Investor or Transferees. 

        3.3.  Tag-Along Rights. 

        (a)   Except
as otherwise provided in Section 3.3(e), each of the BRS Entities and the FSI Entities covenants and agrees with the other Investors and their Transferees
that he, she or it will not effect a Transfer of shares of Common Stock and/or Preferred Stock in, or otherwise participate in, any transaction that constitutes a "Significant Transfer" (as
hereinafter defined) unless all other Investors and their Transferees (collectively, the "Tag-Along Rightholders") are offered an equal opportunity (the "Tag-Along Right") to
participate in such transaction or transactions on a pro rata basis (based on the number of shares of Common Stock or Preferred Stock outstanding on a fully-diluted basis) and on identical terms. As
used herein, a "Significant Transfer" means a Transfer, which either alone or taken together with all prior Transfers by any BRS Entity or FSI Entity, as the case may be, to any person or persons
other than a Permitted Transferee, aggregate to 10% or more of the total number of shares of Common Stock or Preferred Stock set forth opposite the name of such Investor on  Exhibit A hereto.

        (b)   Prior
to any sale of Common Stock and/or Preferred Stock subject to these provisions, the seller (the "Tag-Along Seller") shall notify Acquisition Corp. in
writing of the proposed sale. Such notice (the "Tag-Along Sale Notice") shall set forth: (i) the number of shares of Common Stock and/or Preferred Stock subject to the proposed
sale; (ii) the name and address of the proposed purchaser; and (iii) the proposed amount of consideration and terms and conditions of payment offered by such proposed purchaser.
Acquisition Corp. shall promptly, and in any event within ten days, mail or hand deliver or cause to be mailed or hand delivered the Tag-Along Sale Notice to the Tag-Along
Rightholders. Each Tag-Along Rightholder may exercise the Tag-Along Right by delivery of a written notice (the "Tag-Along Acceptance Notice") to the
Tag-Along Seller within fifteen days of the date Acquisition Corp. mailed or hand delivered or caused to be mailed or hand delivered the Tag-Along Sale Notice. The
Tag-Along Acceptance Notice shall state the number of shares of Common Stock and/or Preferred Stock that the Tag-Along Rightholder proposes to include in the proposed sale. If
no Tag-Along Acceptance Notice is received during the fifteen-day period referred to above, the Tag-Along Seller shall have the right for a 90-day
period to effect the proposed sale of shares of Common Stock and/or Preferred Stock on terms and conditions no more favorable than those stated in the Tag-Along Sale Notice. Any Investor
delivering a Tag-Along Acceptance Notice shall participate in the proposed transaction as set forth in Section 3.3(a). Concurrently with the consummation of the Significant
Transfer, the Tag-Along Seller shall (i) notify each Tag-Along Rightholder who has delivered a Tag-Along Acceptance Notice (an "Accepting
Tag-Along Holder"), (ii) remit to the Accepting Tag-Along Holder the aggregate consideration for the shares of Common Stock and/or Preferred Stock to be sold by the
Accepting Tag-Along Holders in the Significant Transfer as contemplated pursuant to Section 3.3(a) hereof, and (iii) furnish such other evidence of the completion and time of 

8

 

completion
of the Significant Transfer and the terms thereof as may be reasonably requested by the Accepting Tag-Along Holders. 

        (c)   (i) Tag-Along
Seller may sell Common Stock and/or Preferred Stock in, or otherwise participate in, a Significant Transfer without complying with the
requirements of Section 3.3(b) so long as the Tag-Along Seller deposits into escrow with a nationally recognized financial institution at the time of such Significant Transfer that
amount of consideration received in the sale equal to the "Escrow Amount." As used herein, the "Escrow Amount" shall equal that amount of consideration that all Tag-Along Rightholders
would have been entitled to receive if they had the opportunity to participate in the sale on a pro rata basis, determined as if each Tag-Along Rightholder (A) delivered a
Tag-Along Acceptance Notice to the Tag-Along Seller in the time period set forth in Section 3.3(b) and (B) proposed to include all of her, his or its shares of
Common Stock and/or Preferred Stock in such sale.(i) 

        (ii)   The
Tag-Along Seller shall notify Acquisition Corp. in writing of the proposed Significant Transfer pursuant to this Section 3.3(c) no later than the
date of such Significant Transfer. Such notice (the "Escrow Notice") shall set forth the information required in the Tag-Along Sale Notice, and in addition, such notice shall state the
name of the escrow
agent and, if the consideration (in whole or in part) for the Significant Transfer was cash, then the account number of the escrow account. Acquisition Corp. shall promptly, and in any event within
ten days, mail or cause to be mailed the Escrow Notice to each Tag-Along Rightholder. Such Tag-Along Rightholder may exercise the Tag-Along Right by delivery to the
Tag-Along Seller, within fifteen days of the date Acquisition Corp. mailed or hand delivered or caused to be mailed or hand delivered the Escrow Notice, of (A) a written notice
specifying the number of shares of Common Stock and/or Preferred Stock it proposes to sell in such Significant Transfer; and (B) the certificates for such Common Stock and/or Preferred Stock,
with stock powers duly endorsed in blank and with signatures guaranteed. 

        (iii)  Promptly
after the expiration of the fifteenth day after Acquisition Corp. has mailed or hand delivered or caused to be mailed or hand delivered the Escrow Notice,
(A) the Tag-Along Seller shall purchase that number of shares of Common Stock and/or Preferred Stock as the Tag-Along Seller would have been required to include in the
sale had the Tag-Along Seller complied with the provisions of Section 3.3(b), (B) all shares of Common Stock and/or Preferred Stock not required to be purchased by the
Tag-Along Seller shall be returned to the Tag-Along Rightholders thereof and (C) all funds and other consideration held in escrow shall be released to the
Tag-Along Seller. If the Tag-Along Seller received consideration other than cash in his, her or its sale, the Tag-Along Seller shall purchase the shares of Common
Stock and/or Preferred Stock tendered by paying to the Tag-Along Rightholders the same non-cash consideration and cash in the same proportion as received by the
Tag-Along Seller in the sale. The Tag-Along Seller shall pay all costs and expenses of the escrow agent, and any interest on the Escrow Amount shall accrue to the benefit of
Acquisition Corp. 

        (d)   The
Tag-Along Rights provided pursuant to this Section 3.3 shall terminate upon an Initial Public Offering, immediately following an Approved Sale in
which at least 90% of the assets are sold and the proceeds are distributed to the shareholders or 100% of the outstanding shares of capital stock of Acquisition Corp. are sold for cash, or as to the
BRS Entities or the FSI Entities, as the case may be, upon a distribution by BRS or FSI of all of its Securities to its partners pursuant to its agreement of limited partnership. An "Initial Public
Offering" shall mean the sale by Acquisition Corp. pursuant to an effective registration statement under the Securities Act of Common Stock for gross offering proceeds of at least $20 million. 

9

 

        (e)   Notwithstanding
anything to the contrary, a Tag-Along Seller may make any of the following sales without offering the Tag-Along Rightholders the
opportunity to participate: (i) sales by a Tag-Along Seller to any Permitted Transferee, provided that the proposed purchaser agrees
in writing to be bound by the provisions of this Agreement; (ii) sales pursuant to an effective registration statement under the Securities Act; and (iii) sales pursuant to an Approved
Sale, unless the number or amount of Securities which such Tag-Along Right Holder shall be required to sell in such Approved Sale as a result of the operation of Section 3.2 hereof
is less than the number or amount of Securities that such Tag-Along Right Holder would otherwise be entitled to sell in such Approved Sale (but for the applicability of this
Section 3.3(e)(iii)) in connection with the exercise of its Tag-Along Rights pursuant to Section 3.3(a). 

        (f)    In
any transaction giving rise to Tag-Along Rights, the amount of consideration per share of Preferred Stock paid to a Tag-Along Seller shall not
exceed its Liquidation Preference. 

        3.4.  Preemptive Rights. 

        (a)   Except
as provided below, Acquisition Corp. shall not issue, sell or transfer (i) any shares of preferred stock (including the Preferred Stock) of Acquisition
Corp. to any BRS Entity or any FSI Entity (collectively, the "Section 3.4 Preferred Stock") or (ii) any shares of Common Stock (or any options, warrants, convertible securities, or other
rights to purchase or subscribe for Common Stock) (the "Common Stock Equivalents") unless Acquisition Corp. provides each Investor written notice (the "Section 3.4 Notice") at least
15 days prior to the proposed issuance date specifying the prices at which the Section 3.4 Preferred Stock and/or Common Stock Equivalents are proposed to be issued and sold and all
other material terms of the issuance. Each Investor shall have the right to purchase, during the period set forth in Section 3.4(b), at the prices and on the terms specified in the
Section 3.4 Notice, up to the number of shares (or amount) of Section 3.4 Preferred Stock and/or Common Stock Equivalents (together, the "Maintenance Securities") equal to their
Percentage Ownership as it existed immediately prior to such issuance (the "Preemptive Rights"). "Percentage Ownership" means, with respect to any Investor at any time, (i) the number of shares
of Common Stock, on a fully diluted basis, that such Investor or group of Investors beneficially owns (and (without duplication) has the right to acquire) at such time, divided by (ii) the
total number of shares of Common Stock outstanding at such time on a fully diluted basis; provided,  however, that Options shall not be taken into account
for purposes of clause (i) and (ii) above in determining such Investor's Percentage
Ownership. 

        (b)   Each
Investor may exercise its right to purchase Maintenance Securities by delivering written notice of acceptance of any offer made in a Section 3.4 Notice
within 10 days after receipt of the Section 3.4 Notice. A delivery of such a written notice of acceptance, which shall specify the number of shares (or amount) of Maintenance Securities
that such Investor desires to so purchase, shall constitute a binding agreement of such Investor to purchase such Maintenance Securities specified in such written acceptance notice, at the prices and
on substantially the same terms and conditions as set forth in the Section 3.4 Notice. Acquisition Corp. shall have 90 days from the date it sends the Section 3.4 Notice to
consummate the proposed issuance of Maintenance Securities. On the date of such consummation, Acquisition Corp. shall issue certificates representing the Maintenance Securities to be purchased by the
Investors, registered in the names and in the denominations as specified by the Investors in the applicable written acceptance notice, against payment by the Investors of the purchase price for such
Maintenance Securities. If Acquisition Corp. proposes to issue Section 3.4 Preferred Stock or Common Stock Equivalents after such 90-day period, it shall again comply with the
foregoing procedures. 

        (c)   Notwithstanding
the foregoing, no Investor shall be entitled to purchase Maintenance Securities as contemplated by this Section 3.4 (and no Section 3.4
Notice shall be required) in connection with (i) the grant or exercise of options to purchase Common Stock Equivalents, or the 

10

 

issuance
of shares of Common Stock Equivalents, to employees, officers and directors of Acquisition Corp. or any of its subsidiaries pursuant to any employee benefit plan, incentive award program or
other employee compensation arrangement, plan or program so long as the number of such Common Stock Equivalents do not exceed 15% of the number of shares of Common Stock (on a fully diluted basis)
outstanding on the Closing Date, (ii) the issuance of Section 3.4 Preferred Stock or Common Stock Equivalents upon the conversion, exercise or exchange of, or as required by the terms
of, outstanding securities (other than securities issued in violation of this Agreement), in accordance with their original terms (including, without limitation, the issuance of shares of Common Stock
upon the exercise of any Warrants), (iii) the issuance of Section 3.4 Preferred Stock or Common Stock Equivalents pursuant to any stock split, stock dividend or other similar stock
recapitalization, (iv) any underwritten public offering and (v) the issuance of Common Stock Equivalents to any person other than BRS, FSI or any of their respective Affiliates that
represent, in the aggregate on a fully diluted basis, less than 15% of the Common Stock outstanding on a fully diluted basis immediately following the Closing. Notwithstanding the foregoing,
Canterbury Mezzanine II, Blackstone Partners and Blackstone Holdings shall not be entitled to purchase Maintenance Securities as contemplated by this Section 3.4 in connection with the issuance
of Common Stock Equivalents if the antidilution provisions set forth in Section 12 of their respective Warrant Agreements adjust the terms of the Warrants as a result of the issuance of such
Common Stock Equivalents. 

        (d)   If
Section 3.4 Preferred Stock or Common Stock Equivalents are being issued by Acquisition Corp. in connection with the issuance of other securities of
Acquisition Corp., then each Investor may only exercise its Preemptive Right by purchasing a pro rata share of both the Section 3.4 Preferred Stock or Common Stock Equivalents, as the case may
be, and the other securities being issued. The foregoing terms and conditions applicable to the purchase of Maintenance Securities shall also apply to the purchase of such other securities. 

        (e)   The
provisions of this Section 3.4 shall terminate upon the occurrence of an Initial Public Offering or upon an Approved Sale. 

        3.5.  Purchaser Representative.    If Acquisition Corp. or any Additional Investor enters into any negotiation or
transaction for which Rule 506 (or any similar rule then in effect) promulgated by the Securities and Exchange Commission under the Securities Act may be available with respect to such
negotiation or transaction (including a merger, consolidation or other reorganization), each Additional Investor will, at the request of Acquisition Corp., appoint a purchaser representative (as such
term is defined in Rule 501(h) promulgated by the Securities and Exchange Commission under the Securities Act) reasonably acceptable to Acquisition Corp. If any Additional Investor appoints the
purchaser representative designated by Acquisition Corp., Acquisition Corp. will pay the fees of such purchaser representative, but if any Additional Investor declines to appoint the purchaser
representative designated by Acquisition Corp. such Additional Investor will appoint another purchaser representative (reasonably acceptable to Acquisition Corp.), and such Additional Investor will be
responsible for the fees of the purchaser representative so appointed. 

ARTICLE IV

CORPORATE ACTIONS

        4.1.  Certificate of Amendment and Certificate of Increase. 

        Each
Investor has reviewed the (i) Certificate of Amendment and (ii) the Certificate of Increase in the forms attached hereto as Exhibits B-1 and
B-2, respectively, and hereby approves and ratifies the same. 

11

 

        4.2.  Directors. 

        (a)   Each
Investor and Permitted Transferee agrees that it shall take, at any time and from time to time, all action necessary (including voting the Common Stock owned by
him, her or it, calling special meetings of stockholders and executing and delivering written consents) to ensure that: 

        (b)   the
authorized number of directors on the Board of Directors of Acquisition Corp. shall be established at six directors or at such other number of persons as BRS shall
determine; and 

        (c)   that
the following individuals shall be elected to the Board of Directors: 

        (i)    one
individual designated by FSI (so long as the FSI Entities continue to own at least 50% of the Common Stock set forth opposite the name of such FSI Entities on
Exhibit A hereto; and 

        (ii)   the
remaining directors shall be designated by BRS (so long as the BRS Entities continue to own at least 50% of the Common Stock set forth opposite the name of such BRS
Entities on Exhibit A hereto). 

        4.3.  Right to Remove Certain of Acquisition Corp.'s Directors.    Each of BRS and FSI, as the case may be, may
request that any director designated by it be removed (with or without cause) by written notice to the other Investors, and, in any such event, each Investor shall promptly consent in writing or vote
or cause to be voted all shares of Common Stock now or hereafter owned or controlled by it for the removal of such person as a director. In the event any person ceases to be a director, such person
shall also cease to be a member of any committee of the Board of Directors of Acquisition Corp. 

        4.4.  Right to Fill Certain Vacancies in Acquisition Corp.'s Board.    In the event that a vacancy is created on
Acquisition Corp.'s Board of Directors at any time by the death, disability, retirement, resignation or removal (with or without cause) of a director designated by BRS or FSI, as the case may be, or
if otherwise there shall exist or occur any vacancy on Acquisition Corp.'s Board of Directors in a directorship subject to designation by BRS or FSI, as the case may be, such vacancy shall not be
filled by the remaining members of Acquisition Corp.'s Board of Directors but each Investor hereby agrees promptly to consent in writing or vote or cause to be voted all shares of Common Stock now or
hereafter owned or controlled by it to elect that individual designated to fill such vacancy and serve as a director, as shall be designated by BRS or FSI, as the case may be. 

        4.5.  Subsidiary Governance.    Each Investor agrees that the board of directors of the Company shall be comprised
of the individuals who are serving as directors on the Board of Directors of Acquisition Corp. in accordance with Sections 4.2, 4.3, 4.4 and 4.6 hereof. Each Investor agrees to vote all of its
Securities and to cause its representatives on the Board of Directors of Acquisition Corp., subject to their fiduciary duties, to vote and take other appropriate action to effectuate the agreements in
Sections 4.2, 4.3, 4.4 and 4.6 hereof in respect of ARI. 

        4.6.  Management Rights.    For so long as BRS Entities, FSI Entities, BancBoston or Canterbury Entities (other than
Canterbury Mezzanine II) each own in the aggregate at least 2% of the outstanding Securities on a fully diluted basis and there has not been an Initial Public Offering: 

        (a)   Right of Consultation.    BRS, FSI, BancBoston (or any one Permitted Transferee designated in writing to
Acquisition Corp. by BancBoston (a "BancBoston Designee") or the BancBoston Designee) and one representative (the "Canterbury Representative") designated in writing to Acquisition Corp. by the
Designated Holder (as defined below) shall have the right, and Acquisition Corp. shall cause the Company to grant to BRS, FSI, BancBoston (or the BancBoston Designee) and the Canterbury Representative
the right, to consult with and advise the management of Acquisition Corp. and its subsidiaries, at any time or from time to time, on all matters relating to the operation of Acquisition Corp. and its
subsidiaries, including, without 

12

 

limitation,
significant changes in management personnel and compensation or employee benefits, the introduction of new products or new lines of business, important acquisitions or dispositions of
plant and equipment, significant research and development programs, the purchase or sale of important patents, trademarks, licenses and concessions, and the proposed compromise of any significant
litigation. 

        (b)   Observation Rights.    BRS, FSI and the Designated Holder shall have the right, and Acquisition Corp. shall
cause ARI to grant to BRS, FSI and the Designated Holder the right, in the case of BRS and FSI, to have its representatives (in addition to its representatives that are directors) and in the case of
the Designated Holder, to have the Canterbury Representative attend meetings of the Board of Directors (and committees thereof) of Acquisition Corp. and ARI. Acquisition Corp. shall give, or shall
cause ARI to give, as appropriate, to BRS, FSI and the Designated Holder (i) at least three days' notice of each regular meeting of the Board of Directors of each of Acquisition Corp. and ARI,
(ii) such notice as is necessary under the circumstances to enable BRS's and FSI's representatives and the Canterbury Representative to attend each special or emergency meeting of the Board of
Directors of each of Acquisition Corp. and ARI, (iii) on or prior to the date of each meeting of the Board of Directors of each of Acquisition Corp. and ARI all information given to the
directors at such meeting and (iv) within 90 days following each meeting of the Board of Directors of each of Acquisition Corp. and ARI, copies of the minutes of such meeting;  provided,
however that the Canterbury Representative shall not be permitted to attend the portion of any
such meeting, if any, during which there shall exist a conflict of interest arising out of Canterbury Mezzanine II's ownership of loans and other obligations pursuant to the Subordinated Loan
Agreement. 

        (c)   Inspection and Access.    In addition to the reporting requirements set forth in Section 3.1 hereof,
Acquisition Corp. shall provide to BRS Entities, FSI Entities, BancBoston (and its Permitted Transferees) and the Canterbury Representative true and correct copies of all quarterly and annual
financial reports of the Company and budgets prepared by or on behalf of Acquisition Corp. and of ARI, and such other documents, reports, financial data and other information as BRS Entities, FSI
Entities, BancBoston (and its Permitted Transferees) or the Canterbury Representative may reasonably request. Acquisition Corp. shall permit any authorized representatives designated by BRS Entities,
FSI Entities, BancBoston (and its Permitted Transferees) or the Canterbury Representative to visit and inspect any of the properties of Acquisition Corp. or any of its subsidiaries, including its and
their books of account (and to make copies and take extracts therefrom), and to discuss its and their affairs, finances and accounts with its and their officers and their current and prior independent
public accountants (and by this provision Acquisition Corp. authorizes such accountants to discuss with such representatives the affairs, finances and accounts of Acquisition Corp. and its
subsidiaries, whether or not a representative of Acquisition Corp. is present), all at such reasonable times and as often as BRS
Entities, FSI Entities, BancBoston (and its Permitted Transferees) or the Canterbury Representative may reasonably request. 

        (d)   For
purposes of this Section 4.6, the term "Designated Holder" shall mean any person or persons holding in the aggregate more than 50% of the total number of
shares of Common Stock set forth opposite the names of Canterbury Detroit and Canterbury Mezzanine on Exhibit A hereto. 

        4.7.  Confidentiality. 

        (a)   Each
Investor hereby agrees that Confidential Information (as defined below) has been and will be made available to him or it in connection with such Investor's interest
in Acquisition Corp. and its subsidiaries. Each Investor agrees that he or it will not use the Confidential Information in any way that is reasonably likely to result in a material detriment to the
business of 

13

 

Acquisition
Corp. and its subsidiaries. Each Investor further acknowledges and agrees that he or it will not disclose any Confidential Information to any person;  provided that Confidential Information may be
disclosed (i) to such Investor's Representatives (as defined below) in the normal course of the
performance of their duties, (ii) to the extent required by applicable statute, law, rule or regulation (including complying with any oral or written questions, interrogatories, requests for
information or documents, subpoena, civil investigative demand or similar process to which an Investor is subject) or by generally accepted accounting principles, (iii) to any third party to
whom such Investor is contemplating a transfer of his or its Securities, provided that such transfer would not be in violation of the provisions of this
Agreement and as long as such third party is advised of the confidential nature of such information and agrees to be bound by a confidentiality agreement in form and substance satisfactory to
Acquisition Corp. and substantially similar to the provisions hereof or (iv) if the prior consent of the Board of Directors of Acquisition Corp. shall have been obtained. Nothing contained
herein shall prevent the use of Confidential Information in connection with the assertion or defense of any claim by or against Acquisition Corp. or any Investor. 

        (b)   "Confidential
Information" means any information concerning Acquisition Corp., its financial condition, business, subsidiaries, operations or prospects in the possession
of or to be furnished to any Investor in his or its capacity as a shareholder of Acquisition Corp. or by virtue of his or its present or former position as, or right to designate, a director of
Acquisition Corp.; provided that the term "Confidential Information" does not include information which (a) was or becomes generally available
publicly other than as a result of a disclosure by an Investor or his or its partners, directors, officers, employees, agents, counsel, investment advisers, consultants or representatives (all such
persons being collectively referred to as "Representatives") in violation of this Section 4.7 or (b) was or becomes available to such Investor on a nonconfidential basis from a source
other than Acquisition Corp., any regulatory entity or an Investor or his or its Representatives, provided that such source is or was (at the time of
receipt of the relevant information) not, to the best of such Investor's knowledge, bound by a confidentiality agreement with Acquisition Corp. or another person. 

        4.8.  Arms-Length Transactions.    Acquisition Corp. shall not enter into any contract, transaction or
arrangement (collectively, "Transaction") with BRS, FSI, or any of its Affiliates (an "Interested Party") unless a majority of the directors of Acquisition Corp. (excluding the directors affiliated
with the Interested Party) determines that the terms and conditions of such Transaction are no more favorable to such Interested Party than those that would have been applicable in an
arms-length Transaction. The foregoing shall not affect any Transaction in effect on or prior to the Closing Date. 

14

   ARTICLE V

   

REGISTRATION RIGHTS  

        The Investors shall have registration rights with respect to the Common Stock as set forth in the Registration Rights Agreement attached hereto as
Exhibit C (the "Registration Rights Agreement"). Each of the Investors agrees not to effect any public sale or distribution of any securities of Acquisition Corp. during the periods specified
in the Registration Rights Agreement, except as permitted thereby, and each such Investor agrees to be bound by the rights of priority to participate in offerings as set forth therein. 

ARTICLE VI

   

MISCELLANEOUS  

        6.1.  Amendment and Modification.    This Agreement (including the Registration Rights Agreement) may be amended or
modified, or any provision hereof may be waived, provided that such amendment or waiver is set forth in a writing executed by (i) Acquisition Corp., (ii) BRS (so long as the BRS Entities
and their respective Permitted Transferees own in the aggregate at least 5% of the outstanding Common Stock on a fully diluted basis), (iii) FSI (so long as the FSI Entities and their
respective Permitted Transferees own in the aggregate at least 5% of the outstanding Common Stock on a fully diluted basis), (iv) BancBoston (so long as the BancBoston and its Permitted
Transferees own in the aggregate at least 5% of the outstanding Common Stock on a fully diluted basis), (v) Canterbury (so long as the Canterbury Entities and their respective Permitted
Transferees own in the aggregate at least 5% of the outstanding Common Stock on a fully diluted basis), (vi) Blackstone (so long as the Blackstone Entities and their respective Permitted
Transferees own in the aggregate at least 5% of the outstanding Common Stock on a fully diluted basis), and (vii) the holders of a majority of the outstanding Common Stock on a fully diluted
basis (including Securities owned by the BRS Entities, FSI Entities, the Canterbury Entities and BancBoston, but not including Securities held by holders not a party hereto or hereafter made a party
hereto). Notwithstanding the foregoing, no amendment or waiver of Sections 2.1, 3.1, 4.6, this Section 6.1 and the Registration Rights Agreement will be effective against any Investor that
would be adversely affected by such amendment or waiver unless such Investor consents to such amendment or waiver. No course of dealing between or among any persons having any interest in this
Agreement will be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any person under or by reason of this Agreement. For purposes of this
Section 6.1, on any date of calculation, the number of shares of outstanding Common Stock on a "fully diluted basis" shall be equal to (i) the number of shares of Common Stock that are
issued and outstanding on such date, plus (ii) the number of shares of Common Stock issuable upon conversion or exercise of all securities convertible into, or exercisable for, Common Stock,
including, without limitation, the Warrants. The provisions of Sections 2, 3 and 4 hereof shall terminate upon a Qualified Public Offering (as such term is defined in the Registration Rights
Agreement). 

        6.2.  Survival of Representations and Warranties.    The representations and warranties set forth in
Section 1.1 of this Agreement will survive the execution and delivery of this Agreement, the Closing Date and the consummation of the transactions contemplated hereby, regardless of any
investigation made by a party hereto or on its behalf. No other representations and warranties set forth herein shall so survive. 

        6.3.  Exercise of Old Warrants.    Each of Canterbury Mezzanine and Canterbury Detroit shall exercise the Old
Warrants on the Closing Date, and against payment of the Exercise Price (as defined in the Old Warrant) by each of Canterbury Mezzanine and Canterbury Detroit, Acquisition Corp. shall issue 11,111.11
shares of Class A Common Stock to Canterbury Mezzanine and Canterbury Detroit in accordance with the terms of the Old Warrants. 

15

 

        6.4.  Successors and Assigns; Entire Agreement.    This Agreement and all of the provisions hereof shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns and executors, administrators and heirs;  provided, however, that except as set forth in this Agreement, no party may assign, delegate or
otherwise transfer any of its rights or obligations under this Agreement, except that at any time prior to the Closing, any BRS Entity may assign any or all of its rights or obligations hereunder to
any other BRS Entity so long as such BRS Entity agrees to be bound by the provisions of this Agreement and upon such assignment, the assigning BRS Entity shall have no further liability or obligation
hereunder, and at any time prior to the Closing any FSI Entity may assign any or all of its rights or obligations hereunder to any other FSI Entity so long as such FSI Entity agrees to be bound by the
provisions of this Agreement and upon such assignment, the assigning FSI Entity shall have no further liability or obligation hereunder. This Agreement (including the Registration Rights Agreement)
sets forth the entire agreement and understanding among the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements and understandings of any and every
nature among them. 

        6.5.  Separability.    In the event that any provision of this Agreement or the application of any provision hereof
is declared to be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall not be affected except to the extent necessary to delete such
illegal, invalid or unenforceable provision unless that provision held invalid shall substantially impair the benefits of the remaining portions of this Agreement. 

        6.6.  Notices.    All notices provided for or permitted hereunder shall be made in writing by
hand-delivery, first-class mail, telex, telecopier or air courier guaranteeing overnight delivery to the other party at the following addresses (or at such other address of which the other
parties shall have been notified in accordance with this section): 

If
to Acquisition Corp. to: 

Acapulco
Acquisition Corp.

4001 Via Oro Avenue, Suite 200

Long Beach, California 90810

Attention: President 

with
a required copy to: 

Dechert
Price & Rhoads

4000 Bell Atlantic Tower

1717 Arch Street

Philadelphia, PA 19103-2793

Attention: Carmen J. Romano, Esq. 

If
to any BRS Entity, to: 

Bruckmann,
Rosser, Sherrill & Co., Inc.

126 East 56th Street, 29th Floor

New York, New York 10022

Attention: Harold O. Rosser II 

with
a required copy to: 

Dechert
Price & Rhoads

4000 Bell Atlantic Tower

1717 Arch Street

Philadelphia, PA 19103-2793

Attention: Carmen J. Romano, Esq. 

16

 

If
to any FSI Entity, to: 

Furman
Selz Investments, LLC

55 East 52nd Street

New York, New York 10055-0002

Attn: Brian P. Friedman 

with
a required copy to: 

Dechert
Price & Rhoads

4000 Bell Atlantic Tower

1717 Arch Street

Philadelphia, PA 19103-2793

Attention: Carmen J. Romano, Esq. 

If
to any BancBoston Entity, to: 

BancBoston
Investments Inc.

175 Federal Street

Boston, Massachusetts 02110

Attention: Theresa A. Nibi 

with
a required copy to: 

Bingham
Dana LLP

150 Federal Street

Boston, Massachusetts 02110

Attention: Robert M. Wolf, Esq. 

If
to any Canterbury Entity, to: 

Canterbury
Mezzanine Capital, L.P.

600 Fifth Avenue, 23rd Floor

New York, New York 10020

Attention: Mr. Patrick N. W. Turner 

If
to any Blackstone Entity, to: 

Blackstone
Mezzanine Partners L.P.

345 Park Avenue

New York, New York 10154

Attention: Mr. Howard Gellis 

If
to the Additional Investors: 

To
the respective address for each such Additional Investor listed beneath such Additional Investor's name on the signature pages hereof. 

If
to the Additional Option Holders: 

To
the respective address for each such Additional Option Holder listed beneath such Additional Option Holder's name on the signature pages hereof. 

        All
such notices shall be deemed to have been duly given: when delivered by hand, if personally delivered; five business days after being deposited in the mail, postage prepaid, if
mailed; when answered back, if telexed; when receipt acknowledged, if telecopied; and on the next business day, if timely delivered to an air courier guaranteeing overnight delivery. 

17

 

        6.7.  Governing Law.    The validity, performance, construction and effect of this Agreement shall be governed by
and construed in accordance with the internal law of New York, without giving effect to principles of conflicts of law, except to the extent that Delaware law shall be mandatorily applicable. Each
party hereto, for itself and its successors and assigns, irrevocably agrees that any suit, action or proceeding arising out of or relating to this Agreement shall be instituted only in the United
States District Court for the Southern District of New York, United States of America or in the absence of jurisdiction, the Supreme Court of New York located in New York City and generally and
unconditionally accepts and irrevocably submits to the exclusive jurisdiction of the aforesaid courts and irrevocably agrees to be bound by any final judgment rendered thereby from which no appeal has
been taken or is available in connection with this Agreement. Each party, for itself and its successors and assigns, irrevocably waives any objection it may have now or hereafter to the laying of the
venue of any such suit, action or proceeding, including, without limitation, any objection based on the grounds of forum non conveniens, in the aforesaid courts. Each party for itself and its
successors and assigns, irrevocably agrees that all process in any such proceedings in any such court may be effected by mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to it at its address set forth in Section 6.6 or at such other address of which the other parties shall have been notified in accordance with the
provisions of Section 6.6, such service being hereby acknowledged by the parties to be effective and binding service in every respect. Nothing shall affect the right to serve process in any
other manner permitted by law. 

        6.8.  Headings.    The headings in this Agreement are for convenience of reference only and shall not constitute a
part of this Agreement, nor shall they affect its meaning, construction or effect. Unless otherwise specified, section references herein refer to sections of this Agreement and schedules and exhibits
refer to schedules and exhibits attached hereto. 

        6.9.  Counterparts.    This Agreement may be executed in two or more counterparts and by the parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original, and all of which taken together shall constitute one and the same instrument. 

        6.10. Further Assurances.    Each party shall cooperate and take such action as may be reasonably requested by
another party in order to carry out the provisions and purposes of this Agreement and the transactions contemplated hereby. 

        6.11. Remedies.    In the event of a breach or a threatened breach by any party to this Agreement of its
obligations under this Agreement, any party injured or to be injured by such breach, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be
entitled to specific performance of its rights under this Agreement. The parties agree that the provisions of this Agreement shall be specifically enforceable, it being agreed by the parties that the
remedy at law, including monetary damages, for breach of such provision will be inadequate compensation for any loss and that any defense in any action for specific performance that a remedy at law
would be adequate is waived. 

        6.12. Party No Longer Owning Securities.    If a party hereto ceases to own any Securities, such party will no
longer be deemed to be an Investor for purposes of this Agreement. 

        6.13. No Effect on Employment.    Nothing herein contained shall confer on any Investor the right to remain in the
employ of Acquisition Corp. or the Company or any of its subsidiaries or Affiliates. 

        6.14. Pronouns.    Whenever the context may require, any pronouns used herein shall be deemed also to include the
corresponding neuter, masculine or feminine forms. 

[signature pages follow]

18

 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. 

	 	 	ACAPULCO ACQUISITION CORP.
	

 	
 	

By:	

/s/ George P. Harbison
 Name: George P. Harbison

Title: CFO
	

 	
 	

BRUCKMANN, ROSSER, SHERRILL & CO., L.P.
	

 	
 	

By:	

BRS Partners, Limited Partnership,

the general partner,
	

 	
 	

By:	

BRSE Associates, Inc.,

its general partner
	

 	
 	

By:	

/s/ Stephen C. Sherrill
 Name: Stephen C. Sherrill

Title: Executive Vice President
	

 	
 	

BRUCKMANN, ROSSER, SHERRILL & CO. II L.P.
	

 	
 	

By:	

BRSE, L.L.C.,

the general partner
	

 	
 	

By:	

/s/ Stephen C. Sherrill
 Name: Stephen C. Sherrill

Title:

BRS CO-INVESTORS

	*By:	/s/Stephen C. Sherrill
 Stephen C. Sherrill

Attorney-in-Fact	 	                                        
   *
 Bruce C. Bruckmann
	

 	

 	
 	

                                         
  *
 Harold O. Rosser II
	

 	

 	
 	

/s/ Stephen C. Sherrill
 Stephen C. Sherrill
	

 	

 	
 	

                                         
  *
 Donald Bruckmann
	

 	

 	
 	

                                         
  *
 H. Virgil Sherrill
	 	 	 	 

19

 

	

 	

 	
 	

                                         
  *
 Nancy Zweng
	

 	

 	
 	

                                         
  *
 Paul D. Kaminski
	

 	

 	
 	

                                         
  *
 John R. Edmonds
	

 	

 	
 	

                                         
  *
 Susan K. Nastasi
	

 	

 	
 	

                                         
  *
 Walker C. Simmons
	

 	

 	
 	

                                         
  *
 Marilena Tibrea
	

 	

 	
 	

                                         
  *
 Name: Julie Frist

	

 	
 	

BCB FAMILY PARTNERS, L.P.
	

 	
 	

By:	

Bruce C. Bruckmann, General Partner
	

 	
 	

By:	

                                         
  *
 Name: Bruce C. Bruckmann

Title: General Partner
	

 	
 	

NAZ FAMILY PARTNERS. L.P.
	

 	
 	

By:	

Nancy Zweng, General Partner
	

 	
 	

By:	

                                         
  *
 Name: Nancy Zweng

Title: General Partner
	

 	
 	

FURMAN SELZ INVESTORS II, L.P.
	

 	
 	

By:	

FS PRIVATE INVESTMENTS L.L.C.,

Manager
	

 	
 	

By:	

/s/ Brian P. Friedman
 Name: Brian P. Friedman

Title: Managing Member
	 	 	 	 

20

 

	
FSI CO-INVESTORS
	

 	
 	

FS EMPLOYEE INVESTORS L.L.C.
	

 	
 	

By:	

FS PRIVATE INVESTMENTS L.L.C.,

Manager
	

 	
 	

By:	

/s/ Brian P. Friedman
 Name: Brian P. Friedman

Title: Managing Member
	

 	
 	

FS PARALLEL FUND LP
	

 	
 	

By:	

FS PRIVATE INVESTMENTS LLC,

Manager
	

 	
 	

By:	

/s/ Brian P. Friedman
 Name: Brian P. Friedman

Title: Managing Member
	

 	
 	

 	

/s/ Roy L. Furman
 Name: Roy L. Furman
	

 	
 	

 	

/s/ David S. Harris
 Name: David S. Harris

21

  

	 	 	BANCBOSTON INVESTMENTS INC.
	

 	
 	

By:	

 
	

 	
 	

By:	

/s/ Theresa A. Nibi
 Name: Theresa A. Nibi

Title: Director
	

 	
 	

CANTERBURY MEZZANINE CAPITAL, L.P.,
	

 	
 	

By:	

Canterbury Capital, L.L.C.,

General Partner
	

 	
 	

By:	

/s/ Patrick Turner
 Name: Patrick Turner

Title: Member
	

 	
 	

CANTERBURY DETROIT PARTNERS, L.P.
	

 	
 	

By:	

Canterbury Detroit, L.L.C.,

General Partner
	

 	
 	

By:	

/s/ Patrick Turner
 Name: Patrick Turner

Title: Member
	

 	
 	

CANTERBURY MEZZANINE CAPITAL II, L.P.,
	

 	
 	

By:	

Canterbury Capital II, L.L.C., its

General Partner
	

 	
 	

By:	

/s/ Patrick Turner
 Name: Patrick Turner

Title: Member
	

 	
 	

BLACKSTONE MEZZANINE PARTNERS L.P.,
	

 	
 	

By:	

Blackstone Mezzanine Associates L.P., its

general partner
	

 	
 	

By:	

Blackstone Mezzanine Management Associates L.L.C.,

its general partner
	

 	
 	

By:	

/s/ Salvatore Gentile
 Name: Salvatore Gentile

Title: Member
	 	 	 	 

22

 

	

 	
 	

BLACKSTONE MEZZANINE HOLDINGS L.P.,
	

 	
 	

By:	

Blackstone Mezzanine Associates L.P., its

general partner
	

 	
 	

By:	

Blackstone Mezzanine Management Associates L.L.C.,

its general partner
	

 	
 	

By:	

/s/ Salvatore Gentile
 Name: Salvatore Gentile

Title: Member

	
ADDITIONAL INVESTORS
	

 	
 	

/s/ Fortunato N. Valenti
 Name: Fortunato N. Valenti
	

 	
 	

/s/ Richard C. Stockinger
 Name: Richard C. Stockinger
	

 	
 	

/s/ Richard C. Cattani
 Name: Richard C. Cattani
	

 	
 	

/s/ Paul C. Emmett
 Name: Paul C. Emmett
	

 	
 	

/s/ Edward J. Sirhal
 Name: Edward J. Sirhal
	

 	
 	

/s/ Joseph Polidora
 Name: Joseph Polidora
	

 	
 	

/s/ Peter W. Wyss
 Name: Peter E. Wyss
	

 	
 	

/s/ Charles Lewis Lamonica
 Name: Charles Lewis-Lamonica
	

 	
 	

/s/ John M. Forrest
 Name: John M. Forrest
	

 	
 	

/s/ Frederick F. Wolfe, Jr.
 Name: Frederick F. Wolfe, Jr.
	 	 	 

23

 

	

 	
 	

/s/ James W. Finnerty
 Name: James W. Finnerty
	

 	
 	

/s/ Kenneth S. Gordon
 Name: Kenneth S. Gordon
	

 	
 	

/s/ Laurence B. Jones
 Name: Laurence B. Jones
	

 	
 	

/s/ Victor F. Broceaux
 Name: Victor F. Broceaux
	

 	
 	

/s/ Maris Laipenieks
 Name: Maris Laipenieks
	

 	
 	

/s/ Gordon Rose
 Name: Gordon Rose
	

 	
 	

/s/ Ira James
 Name: Ira James
	

 	
 	

/s/ Jesus Munoz
 Name: Jesus Munoz
	

 	
 	

/s/ Michael Corioso
 Name: Michael Corioso
	

 	
 	

/s/ Raymond Garcia
 Name: Raymond Garcia
	

 	
 	

/s/ Javier Fernandez
 Name: Javier Fernandez
	

 	
 	

/s/ Sergio Ramos
 Name: Sergio Ramos
	
ADDITIONAL INVESTORS
	

 	
 	

/s/ George Theisen
 Name: George Theisen
	

 	
 	

/s/ John O' Neil
 Name: John O'Neil
	

 	
 	

/s/ George Harbison
 Name: George Harbison
	 	 	 

24

 

	

 	
 	

/s/ Frank Guidara
 Name: Frank Guidara
	

 	
 	

/s/ Charles Rink
 Name: Charles Rink

	

 	
 	

SPLICHAL LIVING TRUST DATED 1/3/97
	

 	
 	

By:	

/s/ Joachim Splichal
 Joachim Splichal, co-trustee
	

 	
 	

By:	

/s/ Christine Splichal
 Christine Splichal, co-trustee

	
ADDITIONAL OPTION HOLDERS
	

 	
 	

/s/ Frederick Hipp
 Name: Frederick Hipp
	

 	
 	

/s/ Tom Bryan
 Name: Tom Bryan
	

 	
 	

/s/ Peter Burt
 Name: Peter Burt

25

   EXHIBIT C  

REGISTRATION RIGHTS AGREEMENT  

ARTICLE VII  

DEFINITIONS  

        7.1.  Definitions.    The following terms, as used herein, shall have the following meanings: 

        "Agreement"
means the Amended and Restated Securities Holders Agreement to which this Registration Rights Agreement is an Exhibit. 

        "Blackstone
Demand Transferee" means any third party to whom Blackstone assigns registration rights in accordance with Section 2.11 hereof. 

        "Blackstone
Registrable Securities" means Registrable Securities held by the Blackstone Entities and Blackstone Demand Transferees. 

        "Board"
means the board of directors of Acapulco Acquisition Corp. 

        "BRS
Demand Transferee" means any third party to whom any BRS Entity assigns registration rights in accordance with Section 2.11 hereof. 

        "BRS
Registrable Securities" means Registrable Securities held by the BRS Entities and BRS Demand Transferees. 

        "Canterbury
Demand Transferee" means any third party to whom any Canterbury Entity assigns registration rights in accordance with Section 2.11 hereof. 

        "Canterbury
Registrable Securities" means Registrable Securities held by the Canterbury Entities and Canterbury Demand Transferees. 

        "Demand
Registration" means a registration under the Securities Act made at the request of any of the BRS Entities, the Canterbury Entities, the Blackstone Entities, the FSI Entities or
the Demand Transferees in accordance with Section 2.2 hereof. 

        "Demand
Transferee" means any of the BRS Demand Transferees, the Canterbury Demand Transferees, the Blackstone Demand Transferees or the FSI Demand Transferees. 

        "Exchange
Act" means the Securities Exchange Act of 1934, as amended. 

        "FSI
Demand Transferee" means any third party to whom any FSI Entity assigns registration rights in accordance with Section 2.11 hereof. 

        "FSI
Registrable Securities" means Registrable Securities held by the FSI Entities and FSI Demand Transferees. 

        "Holders"
has the meaning given to such term in Section 2.1(c) hereof. 

        "Person"
means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a government or political subdivision or
an agency or instrumentality thereof. 

        "Public
Offering" means an underwritten public offering of Securities pursuant to an effective registration statement under the Securities Act. 

C-1

 

        "Qualified
Public Offering" means a Public Offering of Class A Common Stock which is expected to result in net cash proceeds to Acquisition Corp. and any selling shareholders in
an aggregate amount of not less than $25 million. 

        "Registrable
Securities" means, at any time, with respect to any Investor, any shares of Class A Common Stock issued and outstanding on the Closing Date, any shares of
Class A Common Stock issuable upon exercise of Warrants issued and outstanding on the Closing Date and any shares of Class A Common Stock issued upon conversion of shares of
Class B Common Stock issued on the Closing Date, in any case until (x) a registration statement covering such Class A Common Stock has been declared effective by the SEC and such
securities have been disposed of pursuant to such effective registration statement, (y) such securities have been sold under circumstances in which all of the applicable conditions of
Rule 144 (or any similar provisions then in force) under the Securities Act have been met or (z) such securities have been otherwise transferred, Acquisition Corp. has delivered a new
certificate or other evidence of ownership for such securities not bearing the legend set forth in Section 1.2 of the Agreement (or other legend of similar import) and such securities may be
resold without subsequent registration under the Securities Act. A Person shall be deemed a "holder" of Registrable Securities if it owns Registrable Securities or if it then has the right to acquire
Registrable Securities upon exercise of Warrants or conversion of Class B Common Stock into Class A Common Stock. 

        "Registration
Expenses" means (i) all registration and filing fees, (ii) fees and expenses relating to compliance with securities or blue sky laws (including reasonable
fees and disbursements of counsel in connection with blue sky qualifications of the securities registered), (iii) printing expenses, (iv) internal expenses of Acquisition Corp.
(including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), (v) reasonable fees and disbursements of counsel for Acquisition
Corp. and customary fees and expenses for independent certified public accountants retained by Acquisition Corp. (including the expenses of any comfort letters or costs associated with the delivery by
independent certified public accountants of a comfort letter or comfort letters requested pursuant to Section 2.4(h) hereof), (vi) reasonable fees and expenses of any special experts
retained by Acquisition Corp. in connection with such registration, (vii) reasonable fees and expenses of one counsel
for the Shareholders participating in the offering selected by the Shareholders and reasonably acceptable to Acquisition Corp., (viii) fees and expenses in connection with any review of
underwriting arrangements by the National Association of Securities Dealers, Inc. (the "NASD"), including fees and expenses of any "qualified independent underwriter" and (ix) fees and
disbursements of underwriters customarily paid by issuers or sellers of securities (but not including any underwriting fees, discounts or commissions attributable to the sale of Registrable
Securities, or any out-of-pocket expenses (except as set forth in clause (vii) above) of the Shareholders (or the agents who manage their accounts) or any fees and
expenses of underwriter's counsel). 

        "Registration
Securities" has the meaning given to such term in Section 2.2(c). 

        "SEC"
means the Securities and Exchange Commission. 

        "Selling
Shareholder" means any BRS Entity, FSI Entity, BancBoston, Canterbury Entity, Blackstone Entity or Demand Transferee who makes a request pursuant to Section 2.2 hereof
that Acquisition Corp. effect a Demand Registration. 

        "Shareholder"
means each Person (other than Acquisition Corp.) who is a party to the Agreement, whether in connection with the execution and delivery hereof as of the date hereof or
otherwise in accordance herewith, so long as such Person shall beneficially own any Registrable Securities or have the irrevocable right to acquire Registrable Securities. The term "Shareholder," to
the extent such Shareholder has transferred any of its, his or her Registrable Securities to transferees in accordance with Section 2.11 hereof or, in the case of an Investor, to Permitted
Transferees, shall mean such Shareholder and such transferees or Permitted Transferees, as applicable, taken together, and any right 

C-2

 

or
action that may be exercised or taken at the election of such Shareholder may be exercised or taken at the election of such Shareholder and such transferees or Permitted Transferees, as applicable. 

        Unless
otherwise defined in this Exhibit, all terms used in this Exhibit shall have the meanings ascribed to them in the Agreement. 

ARTICLE VIII  

REGISTRATION RIGHTS  

        8.1.  Piggyback Registrations. 

        (a)   Right to Piggyback.    Whenever Acquisition Corp. proposes to register any of its Class A Common Stock
under the Securities Act (other than pursuant to a registration statement on Form S-8 or S-4 or any similar form or in connection with a registration the primary purpose
of which is to register debt securities (i.e., in connection with a so-called "equity kicker")) and a registration form to be used may be used for the registration of Registrable
Securities (an "Incidental Registration"), Acquisition Corp. will give prompt written notice to all holders of Registrable Securities of its intention to effect such a registration and will include in
such registration (subject to the provisions of this Agreement) all Registrable Securities with respect to which Acquisition Corp. has received written requests for inclusion therein within
20 days after the receipt of Acquisition Corp.'s notice. 

        (b)   Priority on Primary Registrations.    If an Incidental Registration is an underwritten primary registration on
behalf of Acquisition Corp., Acquisition Corp. will include in such registration all securities requested to be included in such registration; provided,
that if the managing underwriters advise Acquisition Corp. in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which can be sold
in such offering without adversely affecting the marketability of the offering, Acquisition Corp. will include in such registration (A) for an Incidental Registration which is a Qualified
Public Offering, (i) first, the securities Acquisition Corp. proposes to sell, (ii) second, the Canterbury Registrable Securities and the Blackstone Registrable Securities requested to
be included in such registration, pro rata among the holders thereof on the basis of the number of shares of Canterbury Registrable Securities and
Blackstone Registrable Securities requested to be included therein by each such holder, (iii) third, the other Registrable Securities requested to be included in such registration,  pro rata among
the holders of such Registrable Securities on the basis of the number of shares of Registrable Securities requested to be included
therein by each such holder, and (iv) fourth, other securities, if any, requested to be included in such registration, and (B) for all other Incidental Registrations, (i) first,
the securities Acquisition Corp. proposes to sell, (ii) second, the Registrable Securities requested to be included in such registration, pro
rata among the holders of such Registrable Securities on the basis of the number of shares of Registrable Securities requested to be included therein by each such holder, and
(iii) third, other securities, if any, requested to be included in such registration. 

        (c)   If,
at any time after giving written notice of its intention to register any Class A Common Stock pursuant to this Section 2.1 and prior to the effective
date of the registration statement filed in connection with such registration, Acquisition Corp. shall determine for any reason not to register such Class A Common Stock, Acquisition Corp.
shall give written notice thereof to all Shareholders requesting inclusion in such registration and, thereupon, shall be relieved of its obligation to register any Registration Securities in
connection with such registration. Acquisition Corp. will pay all Registration Expenses in connection with each registration of Registration Securities requested to be registered pursuant to this
Section 2.1 and Section 2.2. All Shareholders 

C-3

 

properly
requesting registration of Registrable Securities under this Section 2.1 are referred to as "Holders" and all Registrable Securities sought to be registered by such Holders pursuant to
Sections 2.1 and 2.2 are referred to as "Registration Securities." 

        8.2.  Demand Registration. 

        (a)   At
any time after six (6) months following an initial Public Offering, the holders of a majority of the BRS Registrable Securities, the holders of a majority of
the FSI Registrable Securities, or the holders of a majority of the Canterbury Registrable Securities, or the holders of a majority of the Blackstone Registrable Securities may make a written request
for registration with the SEC under and in accordance with the provisions of the Securities Act of all or part of its, his or her Registrable Securities; provided, that Acquisition Corp. may, if the
Board so determines in the exercise of its reasonable judgment that it would be inadvisable to effect such Demand Registration at such time, defer such Demand Registration for a single period not to
exceed 180 days. 

        (b)   The
BRS Entities, FSI Entities, Canterbury Entities and Blackstone Entities (including each of their respective Demand Transferees) shall each be entitled to two
(2) Demand Registrations. 

        (c)   Acapulco
Corp. will not include in any Demand Registration any securities which are not Registrable Securities without the prior written consent of the holders of at
least a majority of the Registrable Securities included in such registration. If a Demand Registration is an underwritten offering and the managing underwriters advise Acapulco Corp. in writing that
in their opinion the number of Registrable Securities and, if permitted hereunder, other securities requested to be included in such offering exceeds the number of Registrable Securities and other
securities, if any, which can be sold therein without adversely affecting the marketability of the offering, Acapulco Corp. will include in such registration (A) for a Demand Registration which
is a Qualified Public Offering, (i) first, the Canterbury Registrable Securities and Blackstone Registrable Securities requested to be included in such registration, pro
rata among the holders thereof on the basis of the number of shares of Canterbury Registrable Securities and Blackstone Registrable Securities requested to be included therein
by each such holder, (ii) second, the other Registrable Securities requested to be included in such registration, pro rata among the holders of
such Registrable Securities on the basis of the number of shares of Registrable Securities requested to be included therein by each such holder and (iii) third, any other securities of
Acquisition Corp. requested to be included in such registration pro rata, if necessary, on the basis of the number of shares of such other securities
owned by each such holder and (B) for all other Demand Registrations, (i) first, the number of Registrable Securities requested to be included in such registration  pro rata, if necessary,
among the holders of Registrable Securities based on the number of shares of Registrable Securities owned by each such holder
and (ii) second, any other securities of Acquisition Corp. requested to be included in such registration pro rata, if necessary, on the basis of
the number of shares of such other securities owned by each such holder; provided that (y) if all the Registrable Securities requested to be
included in such Demand Registration by members of any group set forth above are not to be included, selection of Registrable Securities to be included from within such group shall be made pro rata
based on the number of Registrable Securities that each member of such group shall have requested to be included therein, and (z) if any Shareholder has requested inclusion in such Demand
Registration and if at least 662/3% of the Registrable Securities requested to be included by such Shareholder are not so included, such Shareholder shall be entitled to an additional
Demand Registration hereunder on the same terms and conditions as would have applied to such Shareholder had such earlier Demand Registration not been effected. 

C-4

 

        8.3.  Holdback Agreements.    If any registration of Registration Securities shall be in connection with a Public
Offering, each Shareholder and Acquisition Corp. agree not to effect any public sale or distribution, including, without limitation, any sale pursuant to Rule 144, or any successor provision,
under the Securities Act, of any Securities of the same kind as the Registration Securities and not to effect any such public sale or distribution of any other security convertible into or
exchangeable or exercisable for any such securities of Acquisition Corp. (in each case, other than as part of such Public Offering) during the 10 days prior to the effective date of such
registration statement (except as part of such registration) or during the period after such effective date that shall be required by the managing underwriter(s) (but not to exceed 180 days).
Acquisition Corp. agrees that it will use its best efforts to require a similar commitment from future holders of its securities. 

        8.4.  Registration Procedures.    Whenever any Shareholder requests that any Registration Securities be registered
pursuant to Section 2.1 or 2.2. hereof, Acquisition Corp. will, subject to the provisions of such Sections, use its best efforts to effect the registration and the sale of such Registration
Securities in accordance with the intended method of disposition thereof as quickly as practicable and in connection with any such request: 

        (a)   Acquisition
Corp. will as expeditiously as possible prepare and file with the SEC a registration statement on any form for which Acquisition Corp. then qualifies or
which counsel for Acquisition Corp. shall deem appropriate and which form shall be available for the sale of the Registration Securities to be registered thereunder in accordance with the intended
method of distribution thereof, and use its best efforts to cause such filed registration statement to become and remain effective and usable for a period of not less than 270 days (or such
shorter period in which all of the Registration Securities of the Shareholders included in such registration statement shall have actually been sold thereunder), subject to proviso (z) of
Section 2.2(c). 

        (b)   Acquisition
Corp. will, if requested, prior to filing a registration statement or prospectus or any amendment or supplement thereto, furnish to each Shareholder that is
participating in a registration hereunder and each underwriter, if any, of the securities covered by such registration statement copies of such registration statement as proposed to be filed, and
thereafter Acquisition Corp. will furnish to each such Shareholder and underwriter, if any, such number of copies of such registration statement, each amendment and supplement thereto (in each case
including all exhibits thereto and documents incorporated by reference therein), the prospectus included in such registration statement (including each preliminary prospectus and all amendments and
supplements thereto) and such other documents as each such Shareholder or underwriter, if any, may reasonably request in order to facilitate the proposed sale or disposition of the Registration
Securities owned by each such Shareholder which are covered by such registration statement. Acquisition Corp. hereby consents to the use of the prospectus, including each preliminary prospectus, each
as referred to in the immediately preceding sentence, by each such Shareholder and each underwriter, if any, of the Registration Securities covered by such registration statement, in connection with
the offering and sale of such securities covered by such prospectus or preliminary prospectus. 

        (c)   After
the filing of the registration statement, Acquisition Corp. will (i) prepare and file with the SEC such amendments and post-effective amendments
to the registration statement as may be necessary to keep such registration statement effective and usable for the period set forth in Section 2.4(a), (ii) cause the related prospectus
to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the Securities Act, (iii) comply with the provisions of the
Securities Act with respect to the disposition of all Registration Securities covered by such registration statement during the applicable period in accordance with the intended methods of disposition
by the sellers thereof set forth in such registration statement or supplement to such prospectus and (iv) promptly notify each Shareholder holding Registration Securities covered by such
registration statement of any stop order issued or 

C-5

 

threatened
by the SEC or any state securities commission under state blue sky laws and take all reasonable actions required to prevent the entry of such stop order or to remove it if entered. 

        (d)   Acquisition
Corp. will use its best efforts to (i) register or qualify the Registration Securities covered by such registration statement under such other
securities or blue sky laws of such jurisdictions in the United States as any Shareholder holding such Registration Securities reasonably (in light of such Shareholder's intended plan of distribution)
requests and (ii) cause such Registration Securities to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and
operations of Acquisition Corp. and do any and all other acts and things that may be reasonably necessary or advisable to enable such Shareholder to consummate the disposition of such Registration
Securities owned by such Shareholder; provided that Acquisition Corp. will not be required to (A) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this paragraph 2.4(d), (B) subject itself to taxation in any such jurisdiction or (C) consent to general
service of process in any such jurisdiction. 

        (e)   Acquisition
Corp. will immediately notify each Shareholder holding such Registration Securities, at any time when a prospectus relating thereto is required to be
delivered under the Securities Act, of the occurrence of an event requiring the preparation of a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such
Registration Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading and promptly prepare and make available to each such Shareholder any such supplement or amendment. 

        (f)    In
the event of a Public Offering, Acquisition Corp. may, subject to its other contractual obligations, select in its sole discretion, an underwriter or underwriters and
legal counsel as it may deem appropriate. Acquisition Corp. will enter into customary agreements (including an underwriting agreement in customary form) and take such other actions as are reasonably
necessary in order to expedite or facilitate the disposition of such Registration Securities, including, without limitation, the engagement of a "qualified independent underwriter" in connection with
the qualification of the underwriting arrangements with the NASD, maintaining a current market making prospectus and conducting customary "road show" presentations. 

        (g)   Acquisition
Corp. shall make available for inspection by any Shareholder and any underwriter participating in any disposition pursuant to a registration statement being
filed by Acquisition Corp. pursuant to this Section 2.4 and any attorney, accountant or other professional retained by any such Shareholder or underwriter (collectively, the "Inspectors"), all
Financial and other records, pertinent corporate documents and properties of Acquisition Corp. (collectively, the "Records") as shall be reasonably requested by any such Inspector, and cause
Acquisition Corp.'s officers, directors and employees to supply all information reasonably requested by any Inspectors in connection with such registration statement;  provided that Records which
Acquisition Corp. determines, in good faith, to be confidential and which Acquisition Corp. notifies the Inspectors as being
confidential shall not be disclosed by the Inspectors unless (i) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in such registration statement,
(ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of or agency with competent jurisdiction or (iii) such Records have previously been
generally made available to the public. 

        (h)   Acquisition
Corp. will obtain and furnish to each such Shareholder and to each such underwriter, if any, a signed counterpart of (i) an opinion or opinions of
counsel to Acquisition Corp. and (ii) a comfort letter or comfort letters from Acquisition Corp.'s independent public 

C-6

 

accountants,
each in customary form and covering such matters of the type customarily covered by opinions or comfort letters, as the case may be, as holders of a majority of the aggregate amount of
Registration Securities or the managing underwriter therefor reasonably requests. 

        (i)    Acquisition
Corp. shall use its best efforts to effect the listing of the Registration Securities on each securities exchange, if any, on which such Registration
Securities are then listed or will be listed in connection with the registration of the Registration Securities, to the extent the Registration Securities satisfy the applicable listing requirements
of such exchanges. 

        (j)    Acquisition
Corp. shall use its best efforts to comply with all applicable rules and regulations of the SEC and the relevant state blue sky commissions, and make
available to its securityholders, as soon as reasonably practicable, an earnings statement covering a period of 12 months, beginning within three months after the effective date of the
registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder. 

        Acquisition
Corp. may require each such Shareholder to promptly furnish in writing to Acquisition Corp. such information regarding the distribution of the Registration Securities as
Acquisition Corp. may from time to time reasonably request and such other information as may be legally required in connection with such registration. 

        Each
such Shareholder agrees that, upon receipt of any notice from Acquisition Corp. of the happening of any event of the kind described in Section 2.4(e) hereof, such Shareholder
will forthwith discontinue disposition of Registration Securities pursuant to the registration statement covering such Registration Securities until such Shareholder's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 2.4(e) hereof, and, if so directed by Acquisition Corp., such Shareholder will deliver to Acquisition Corp. all copies, other than any
permanent file copies then in such Shareholder's possession, of the most recent prospectus covering such Registration Securities at the time of receipt of such notice. In the event that Acquisition
Corp. shall give such notice, Acquisition Corp. shall extend the period during which such registration statement shall be maintained effective (including the period referred to in
Section 2.4(a) hereof) by the number of days during the period from and including the date of the giving of notice pursuant to Section 2.4(e) hereof to the date when Acquisition Corp.
shall make available to such Holder a prospectus supplemented or amended to conform with the requirements of Section 2.4(e) hereof. 

        8.5.  Indemnification by Acquisition Corp.    Acquisition Corp. agrees to indemnify and hold harmless each
Shareholder, each Person, if any, who controls such Shareholder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and the respective officers,
directors, partners, employees, representatives and agents of each Shareholder and each controlling Person, to the fullest extent lawful, from and against any and all losses, claims, damages,
liabilities, judgments, actions and expenses (including, without limitation and as incurred, reimbursement of all costs of investigating, preparing, pursuing and defending any claim or action, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, including the fees and expenses of counsel to any such indemnified Person) (collectively, "Losses") directly or
indirectly caused by or arising out of any untrue statement or alleged untrue statement of a material fact contained in any registration statement (or any amendment thereto) or prospectus relating to
such Shareholder's Registration Securities (as amended or supplemented if Acquisition Corp. shall have furnished any amendments or supplements thereto) or any preliminary prospectus or any omission or
alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of the prospectus or any preliminary prospectus, in light of
the circumstances under which they were made) not misleading, except insofar as such Losses are caused by any such untrue statement or omission or alleged untrue statement or omission that is made in
reliance upon and in conformity with information furnished in writing to Acquisition Corp. by such Shareholder or on such Shareholder's 

C-7

 

behalf
expressly for use therein; provided that with respect to any untrue statement or omission or alleged untrue statement or omission made in any
preliminary prospectus, or in any prospectus, as the case may be, the indemnity agreement contained in this paragraph shall not apply to the extent that any such Losses results from the fact that a
current copy of the prospectus (or amended or supplemented prospectus, as the case may be) was not sent or given to the Person asserting any such Losses at or prior to the written confirmation of the
sale of the Registration Securities concerned to such Person if it is determined that Acquisition Corp. has provided such prospectus (or amended or supplemented prospectus, as the case may be) and it
was the responsibility of such Shareholder to provide such person with a current copy of the prospectus (or amended or supplemented prospectus, as the case may be) and such current copy of the
prospectus (or amended or supplemented prospectus, as the case may be) would have completely cured the defect giving rise to such Losses. Acquisition Corp. also agrees to indemnify any underwriters of
the Registration Securities, their officers and directors and each Person who controls such underwriters on substantially the same basis as that of the indemnification of the Shareholders provided in
this Section 2.5. 

        8.6.  Indemnification by Participating Shareholders.    Each Shareholder holding Registration Securities included in
any registration statement agrees, severally but not jointly, to indemnify and hold harmless Acquisition Corp., each Person, if any, who controls Acquisition Corp. within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act and the respective officers, directors, partners, employees, representatives and agents of Acquisition Corp. and each
controlling Person to the same extent as the foregoing indemnity from Acquisition Corp. to such Shareholder, but only (a) with respect to information furnished in writing by such Shareholder or
on such Shareholder's behalf expressly for use in any registration statement or prospectus relating to such Registration Securities, or any amendment or supplement thereto, or any preliminary
prospectus or (b) to the extent that any Losses described in Section 2.5 results from the fact that a current copy of the prospectus (or amended or supplemented prospectus, as the case
may be) provided by Acquisition Corp. was not sent or given to the Person asserting any such Losses at or prior to the written confirmation of the sale of the Registration Securities concerned to such
Person if it is determined that it was the responsibility of such Shareholder to provide such Person with a current copy of the prospectus (or amended or supplemented prospectus, as the case may be)
and such current copy of the prospectus (or amended or supplemented prospectus, as the case may be) would have completely cured the defect giving rise to such Losses. Each such Shareholder also agrees
to indemnify and hold harmless any underwriters of the Registration Securities, their officers and directors and each Person who controls such underwriters on substantially the same basis as that of
the indemnification of Acquisition Corp. provided in this Section 2.6. 

        8.7.  Conduct of Indemnification Proceedings.    In case any proceeding (including, without limitation, any
governmental investigation) shall be instituted involving any Person in respect of which indemnity may be sought pursuant to this Article II, such Person (an "Indemnified Party") shall promptly
notify the Person against whom such indemnity may be sought (the "Indemnifying Party") in writing and the Indemnifying Party shall assume the defense thereof, including, without limitation, the
employment of counsel reasonably satisfactory to such Indemnified Party, and shall assume the payment of all fees and expenses related thereto; provided
that the failure of any Indemnified Party to so notify the Indemnifying Party shall not relieve the Indemnifying Party of any obligations hereunder except to the extent that the Indemnifying Party is
prejudiced by such failure to notify. In any such proceeding, each Indemnified Party shall have the right to retain its, his or her own counsel, but the fees and expenses of such counsel shall be at
the expense of such Indemnified Party unless (a) the Indemnifying Party and the Indemnified Party shall have mutually agreed to the retention of such counsel or (b) in the reasonable
judgment of such Indemnified Party representation of both parties by the same counsel would be inappropriate due to an actual or potential conflict of interest between them. The Indemnifying Party
shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm of attorneys (in 

C-8

 

addition
to any local counsel) at any time for all such Indemnified Parties, and all such fees and expenses shall be reimbursed as they are incurred. In the case of any such separate firm for the
Indemnified Parties, such firm shall be designated in writing by the Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent, or if consent is withheld and there shall be a final judgment for the plaintiff, the Indemnifying Party shall indemnify and hold harmless such Indemnified
Parties from and against any Losses (to the extent stated above) by reason of such settlement or judgment. No Indemnifying Party shall, without the prior written consent of the Indemnified Party,
effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified
Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability arising out of such proceeding. 

        8.8.  Contribution.    If the indemnification provided for in this Article II is unavailable to the
Indemnified Parties in respect of any Losses referred to herein, then each such Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by
such Indemnified Party as a result of such Losses (a) as between Acquisition Corp. and the Shareholders holding Registration Securities covered by a registration statement, on the one hand, and
the underwriters, if any, on the other hand, in such proportion as is appropriate to reflect the relative benefits received by Acquisition Corp. and such Shareholders, on the one hand, and the
underwriters, if any, on the other hand, from the offering of the Registration Securities, or if such allocation is not permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits but also the relative fault of Acquisition Corp. and such Shareholders, on the one hand, and of such underwriters, if any, on the other hand, in connection with the
statements or omissions which resulted in such Losses, as well as any other relevant equitable considerations and (b) as between Acquisition Corp., on the one hand, and each such Shareholder,
on the other hand, in such proportion as is appropriate to reflect the relative fault of Acquisition Corp. and of each such Shareholder in connection with such statements or omissions, as well as any
other relevant equitable considerations. The relative benefits received by Acquisition Corp. and such Shareholders, on the one hand, and such underwriters, if any, on the other hand, shall be deemed
to be in the same proportion as the aggregate proceeds from the offering (net of underwriting discounts and commissions but before deducting expenses) received by Acquisition Corp. and such
Shareholders bear to the aggregate underwriting discounts and commissions received by such underwriters, in each case as set forth in the table on the cover page of the prospectus. The relative fault
of Acquisition Corp. and such Shareholders, on the one hand, and of such underwriters, if any, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by Acquisition Corp. and such Shareholders or by such underwriters. The
relative fault of Acquisition Corp., on the one hand, and of each such Shareholder, on the other hand, shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by such party, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. 

        Acquisition
Corp. and the Shareholders agree that it would not be just and equitable if contribution pursuant to this Section 2.8 were determined by pro
rata allocation (even if the underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount paid or payable by an Indemnified Party as a result of the Losses referred to in the immediately preceding paragraph shall
be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such
action or claim. Notwithstanding the provisions of this Section 2.8, no underwriter shall be required to contribute, or shall be liable under any other provision of this 

C-9

 

Article II
for, any amount in excess of the amount by which the aggregate price at which the Registration Securities underwritten by it and distributed to the public were offered to the public
exceeds the amount of any damages which such underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission, and no Shareholder
shall be required to contribute, or shall be liable under any other provision of this Article II for, any amount in excess of the amount by which the aggregate price at which the Registration
Securities of such Shareholder were offered to the public exceeds the amount of any damages which such Shareholder has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. Each such Shareholder's obligation to contribute pursuant to this Section 2.8 is several in the proportion that the proceeds
of the offering received by such Shareholder bears to the aggregate proceeds of the offering received by all such Shareholders and not joint. 

        8.9.  Participation in Public Offering.    No Person may participate in any Public Offering hereunder unless such
Person (a) agrees to sell such Person's securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and
(b) completes and executes all questionnaires, powers-of-attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such
underwriting arrangements and the provisions of the Agreement in respect of registration rights. 

        8.10. Other Indemnification.    Indemnification similar to that specified herein (with appropriate modifications)
shall be given by Acquisition Corp. and each Shareholder participating therein with respect to any required registration or other qualification of securities under any federal or state law or
regulation or governmental authority other than the Securities Act. 

        8.11. Transfer of Registration Rights.    In connection with any transfer of Registrable Securities by the
Shareholders to any third party (which transfer must be in compliance with the Securities Act and the Agreement) the Shareholders may assign any registration rights to which they are entitled
hereunder, provided that such third party agrees to be bound by all of the terms and conditions of the Agreement. It is understood and agreed that Acquisition Corp. will be under no obligation to
effect a registration of Registrable Securities held by such third party except and to the extent such third party requests in notices provided by it to Acquisition Corp. in accordance with
Section 2.1 or 2.2. 

C-10

QuickLinks

Exhibit 10.3 Amended and Restated Securities Holders Agreement, dated as of June 28, 2000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00067-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00067-of-00352.parquet"}]]