Document:

Exhibit
4.04

CUSIP NO. 52517PS85

ISIN NO. US52517PS851

REGISTERED                                                                        PRINCIPAL
AMOUNT: $1,780,000

No. R-1

LEHMAN BROTHERS HOLDINGS INC.

MEDIUM-TERM NOTE, SERIES I
CRUDE OIL-LINKED SINGLE BARRIER
SYNTHETIC REVERSE CONVERTIBLE NOTE
DUE MAY 2, 2007

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF
THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY OR A NOMINEE OF THE DEPOSITORY. 
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE
COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART
FOR NOTES IN CERTIFICATED FORM (A “CERTIFICATED NOTE”), THIS GLOBAL SECURITY
MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE
DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER
NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.

 

LEHMAN BROTHERS HOLDINGS INC., a corporation duly organized and existing
under the laws of the State of Delaware (herein called the “Company,” which
term includes any successor corporation under the Indenture referred to on the
reverse hereof), for value received, hereby promises to pay to CEDE & Co.,
or registered assigns, on the Maturity Date, an amount equal to the Redemption
Amount.

The “Maturity Date” is May 2, 2007, or if such day is not a Business
Day, on the next following Business Day.

The “Redemption Amount” is the amount equal to the sum of (a) the
principal amount of the Notes plus (b) the Fixed Return plus (c) if Crude OilREF is equal to or less than the Lower Barrier on
any Exchange Business Day during the Observation Period, the Principal
Adjustment Amount.

The “Fixed Return” is an amount equal to the principal amount of the
Notes multiplied by 2.16%, rounded to the nearest whole cent.

The “Principal Adjustment Amount” is an amount equal to the principal
amount of the Notes multiplied by the lesser of (a) the Crude Oil Return, and
(b) 0%, rounded to the nearest whole cent.

The “Observation Period” is the period from
and including the Trade Date to and including the Valuation Date.

The “Trade Date” is January 25, 2007.

The “Valuation Date” is 5 Exchange Business
Days prior to the Maturity Date; provided that, if a Disruption Event is in
effect on the scheduled Valuation Date, the Valuation Date may be postponed (as
described below).

“Crude
OilREF” is, for any Exchange
Business Day within the Observation Period, the Crude Oil Price on such
Exchange Business Day.  Crude OilREF on the Valuation Date shall equal the Final
Crude Oil Price.

“Crude
Oil” is light sweet crude oil.

The “Crude
Oil Price” is the official settlement price of the Crude Oil Contract,
expressed as the U.S. dollar price per barrel of Crude Oil, as made public by
the Relevant Exchange (subject to the occurrence of a Disruption Event).

The “Crude
Oil Contract” is the first
nearby month Crude Oil futures contract (or, in the case of the last trading
day of the first nearby month contract, the second nearby month contract)
traded on the Relevant Exchange.

The “Lower
Barrier” is $43.384, equal to the Crude Oil Strike multiplied by 80%.

The “Crude
Oil Strike” is $54.23, equal to the Crude Oil Price on the Trade Date.

The “Final
Crude Oil Price” is the Crude Oil Price on the Valuation Date.

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The “Crude
Oil Return” is a quotient, (x) the numerator of which is the Final Crude Oil
Price minus the Crude Oil Strike and (y) the denominator of which is the Crude
Oil Strike.

The “Relevant
Exchange” is the NYMEX Division, or its successor, of the New York Mercantile
Exchange, Inc., or its successor; or, if NYMEX is no longer the principal
exchange or trading market for Crude Oil options or futures contracts, such
other exchange or principal trading market for Crude Oil as determined in good
faith by the Calculation Agent which serves as the source of prices for Crude
Oil, and any principal exchanges where options or futures contracts on Crude
Oil are traded.

An “Exchange
Business Day” is a day, as determined by the Calculation Agent, on which the
Relevant Exchange is scheduled to be (or, but for the occurrence of a
Disruption Event, would have been) open for trading during its regular trading
session (notwithstanding the Relevant Exchange closing prior to its scheduled
closing time).

If a
Disruption Event identified in clauses (A), (B) or (C) below is in effect on
any Exchange Business Day during the Observation Period to but excluding the
earlier of (i) the Valuation Date and (ii) the Exchange Business Day on which Crude
OilREF was first equal to or less than the Lower
Barrier, the Calculation Agent will determine Crude OilREF applicable to such Exchange Business Day in
accordance with the Fallback Price Determination below.  If a Disruption Event identified in clauses
(D) or (E) below is in effect on any such Exchange Business Day, the
Calculation Agent will determine Crude OilREF applicable to such Exchange Business Day in
its sole and absolute discretion taking into account the latest available
quotation for the Crude Oil Price and any other information that in good faith
it deems relevant.

If Crude
OilREF was equal to or less than the Lower Barrier on
any Exchange Business Day during the Observation Period and, on the Valuation
Date, a Disruption Event identified in clauses (A), (B) or (C) below is in
effect, the Valuation Date will be postponed to, and the Calculation Agent will
determine the Final Crude Oil Price on, the first Exchange Business Day
succeeding the Valuation Date on which no Disruption Event is occurring;
provided that if a Disruption Event is occurring on each of the three scheduled
Exchange Business Days succeeding the Valuation Date, such third scheduled
Exchange Business Day shall be deemed the Valuation Date and the Calculation
Agent will determine the Final Crude Oil Price on such third scheduled Exchange
Business Day succeeding the Valuation Date in accordance with the Fallback
Price Determination below.  If Crude OilREF was less than or equal to the Lower Barrier on
any Exchange Business Day during the Observation Period and, on the Valuation
Date, a Disruption Event identified in clauses (D) or (E) below is in effect,
the Calculation Agent will determine the Final Crude Oil Price on the Valuation
Date in its sole and absolute discretion, taking into account the latest
available quotation for the settlement price of the Crude Oil Contract and any
other information that in good faith it deems relevant.

A “Disruption
Event” means any of the
following events as determined in good faith by the Calculation Agent:

(A)          the suspension of or material limitation on trading
in the Crude Oil Contract or Crude Oil, or futures contracts or options related
to the Crude Oil Contract or Crude Oil, on the Relevant Exchange;

 3
 

 

(B)           either (i) the failure of trading to commence, or
permanent discontinuance of trading, in the Crude Oil Contract or Crude Oil, or
futures contracts or options related to the Crude Oil Contract or Crude Oil, on
the Relevant Exchange, or (ii) the disappearance of, or of trading in, Crude Oil;

(C)           the
failure of the Relevant Exchange to publish the official daily settlement price
for that day for the Crude Oil Contract (or the information necessary for
determining the settlement price);

(D)          the
occurrence since the Trade Date of a material change in the content,
composition, or constitution of Crude Oil or the Crude Oil Contract; or

(E)           the
occurrence since the Trade Date of a material change in the formula for or the
method of calculating the settlement price of the Crude Oil Contract.

For the purpose
of determining whether a Disruption Event has occurred:

(1)           a limitation on the hours in a
trading day and/or number of days of trading will not constitute a Disruption
Event if it results from an announced change in the regular business hours of the
Relevant Exchange;

(2)           a suspension in trading on the
Relevant Exchange (without taking into account any extended or after-hours
trading session), in the Crude Oil Contract, by reason of a price change
reflecting the maximum permitted price change from the previous trading day’s
settlement price will constitute a Disruption Event; and

(3)           a suspension of or material
limitation on trading on the Relevant Exchange will not include any time when
the Relevant Exchange is closed for trading under ordinary circumstances.

In the
event that the “Fallback Price Determination” is invoked, the
Calculation Agent will determine Crude OilREF applicable to the relevant Exchange Business
Day, or the Final Crude Oil Price on the Valuation Date, as the case may be, by
requesting four leading dealers in Crude Oil (selected in the sole discretion
of the Calculation Agent) (the “Reference Dealers”) to provide price quotations
for the relevant Crude OilREF or the Final Crude
Oil Price.  If at least two quotations
are provided, the relevant Crude OilREF or the Final
Crude Oil Price, as the case may be, will be the arithmetic mean of such
quotations.  If only one Reference Dealer
provides a price quotation, then the Calculation Agent, in its sole discretion,
will determine whether that quotation is reasonable to be used.  If the Calculation Agent determines that such
single price quotation is not reasonable to be used, or if no price quotation
is provided, the Calculation Agent will determine the relevant Crude OilREF or the Final Crude Oil Price, as the case may
be, in its sole and absolute discretion taking into account the latest
available quotation for the settlement price of the Crude Oil Contract and any
other information that in good faith it deems relevant.

A “Business Day”,
notwithstanding any provision in the Indenture, is any day that is not is not a
Saturday or Sunday and that is not a day on which banking institutions in New
York City generally are authorized or obligated by law or executive order to be
closed.

 4
 

 

The “Calculation Agent” means
Lehman Brothers Commodity Services Inc.

Except as provided below, the
Redemption Amount, if any, may, at the option of the Company, be made by check
mailed to the person entitled thereto at such person’s address as it appears on
the registry books of the Company.

Payment of any Redemption
Amount will be made in immediately available funds in accordance with the
normal procedures of the Trustee (or any duly appointed Paying Agent).

The Company will pay any
administrative costs imposed by banks in making payments in immediately
available funds, but any tax, assessment or governmental charge imposed upon
payments hereunder, including, without limitation, any withholding tax, will be
borne by the Holder hereof.

References herein to “U.S. dollars”
or “U.S.$” or “$” or “USD” are to the coin or currency of the United States as
at the time of payment is legal tender for the payment of public and private
debts.

REFERENCE
IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE
HEREOF.  SUCH FURTHER PROVISIONS SHALL
FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

This Note shall not be valid or
become obligatory for any purpose until the certificate of authentication
hereon shall have been signed by the Trustee under the Indenture.

 5
 

 

IN WITNESS WHEREOF, Lehman Brothers
Holdings Inc. has caused this instrument to be signed by its Chairman of the
Board, its President, its Vice Chairman, its Chief Financial Officer, one of
its Vice Presidents or its Treasurer, by manual or facsimile signature under
its corporate seal, attested by its Secretary or one of its Assistant
Secretaries by manual or facsimile signature.

	
  Dated: February 1, 2007

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [SEAL]

  	
   

  	
  LEHMAN BROTHERS HOLDINGS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Andrew M.W. Yeung

  
	
   

  	
   

  	
   

  	
  Title:   Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Jin Lee

  
	
   

  	
   

  	
   

  	
  Title:  Assistant
  Secretary

  

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

This is one of the
Securities of the series designated herein referred to in the within-mentioned
Indenture.

	
  CITIBANK, N.A.

  	
   

  	
   

  
	
  as Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
           Authorized Officer

  	
   

  	
   

  
				

 

 6

 

[REVERSE
OF NOTE]

LEHMAN BROTHERS
HOLDINGS INC.

MEDIUM-TERM NOTES, SERIES I
CRUDE OIL-LINKED SINGLE BARRIER
SYNTHETIC REVERSE CONVERTIBLE NOTE 
DUE MAY 2, 2007

Section 1.  General.  This Note is one of a duly authorized series
of Notes of the Company designated as the Medium-Term Notes, Series I, Crude
Oil-Linked Single Barrier Synthetic Reverse Convertible Note (herein called the
“Notes”). 
The Notes are one of an indefinite number of series of debt
securities of the Company (collectively, the “Securities”) issued or issuable
under and pursuant to an indenture dated as of September 1, 1987, as amended
and supplemented (the “Indenture”), duly executed and delivered by the Company
and Citibank, N.A., as Trustee (herein called the “Trustee”), to which Indenture
and all indentures supplemental thereto reference is hereby made for a
description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the holders of the
Securities.  The separate series of
Securities may be issued in various aggregate principal amounts, may mature at
different times, may bear interest (if any) at different rates, may be subject
to different redemption provisions or repurchase rights (if any), may be
subject to different sinking, purchase or analogous funds (if any), may be
subject to different covenants and Events of Default and may otherwise vary as
in the Indenture provided.

Section 2.  Principal
Amount for Indenture Purposes.  For
the purpose of determining whether Holders of the requisite amount of Notes of
this series outstanding under the Indenture have made a demand, given a notice
or waiver or taken any other action, the principal amount of this Note will be
deemed to be the principal amount of this Note then outstanding.

Section 3.  Modification
and Waivers.  The Indenture contains
provisions permitting the Company and the Trustee, with the consent of the
Holders of not less than 66-2/3% in aggregate principal amount of each series
of the Securities at the time Outstanding to be affected, evidenced as in the
Indenture provided, to execute supplemental indentures adding any provisions to
or changing in any manner or eliminating any of the provisions of the Indenture
or of any supplemental indenture or modifying in any manner the rights of the
holders of the Securities of all such series; provided, however, that no such
supplemental indenture shall, among other things, (i) change the fixed maturity
of any Security, or reduce the Redemption Amount or the principal amount thereof,
or reduce the rate or extend the time of payment of interest thereon or reduce
any premium or other amount payable on redemption, or make the Redemption
Amount or the principal amount thereof, premium or other amount payable, if
any, or interest thereon payable in any coin or currency other than that herein
above provided, without the consent of the Holder of each Security so affected,
or (ii) change the place of payment on any Security, or impair the right to
institute suit for payment on any Security, or reduce the aforesaid percentage
of Securities, the holders of which are required to consent to any such
supplemental indenture, without the consent of the holders of each Security so
affected.  It is also provided in the
Indenture that, prior to any declaration accelerating the maturity of any
series of Securities, the holders of a majority in aggregate principal amount
of the Securities of such series

Outstanding
may on behalf of the holders of all the Securities of such series waive any
past default or Event of Default under the Indenture with respect to such
series and its consequences, except a default in the payment of interest, if
any, on the Redemption Amount or the principal amount, or premium, if any, on
any of the Securities of such series, or in the payment of any sinking fund
installment or analogous obligation with respect to Securities of such
series.  Any such consent or waiver by
the Holder of this Note shall be conclusive and binding upon such Holder and
upon all future holders and owners of this Note and any Notes of this series
which may be issued in exchange or substitution herefor, irrespective of
whether or not any notation thereof is made upon this Note or such other Notes
of this series.

Section 4.  Obligations
Unconditional.  No reference herein
to the Indenture and no provisions of this Note or of the Indenture shall alter
or impair the obligation of the Company, which is absolute and unconditional,
to pay the Redemption Amount on this Note at the place, at the respective times,
at the rate, and in the coin or currency herein prescribed.

Section 5.  Defeasance.  The Indenture contains provisions for the
discharge of the Indenture and defeasance at any time of the indebtedness on
this Note upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Note.

Section 6.  Authorized
Form and Denominations.  The Notes of
this series are issuable in registered form, without coupons.  Each Note will be issued initially as either
a Global Security or a Certificated Note, at the option of the Company, in
denominations of $1,000 or whole multiples of $1,000, either at the office or
agency to be designated and maintained by the Company for such purpose in the
Borough of Manhattan, New York City, pursuant to the provisions of the
Indenture or at any of such other offices or agencies as may be designated and
maintained by the Company for such purpose pursuant to the provisions of the
Indenture, and in the manner and subject to the limitations provided in the
Indenture, but without the payment of any service charge, except for any tax or
other governmental charges imposed in connection therewith.  Notes of this series are exchangeable for a
like aggregate principal amount of Notes of this series of a different
authorized denomination, except that Global Securities will not be exchangeable
for Certificated Notes of this series.

Section 7.  Registration
of Transfer.  As provided in the
Indenture and subject to certain limitations as therein set forth, the transfer
of this Note is registrable in the Security Register, upon surrender of this
Note for registration of transfer, at the Corporate Trust Office or agency in a
Place of Payment for this Note, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar requiring such written instrument of transfer duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Notes of this series, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

If at any time the Depository notifies the Company
that it is unwilling or unable to continue as Depository or if at any time the
Depository shall no longer be eligible under the Indenture, the Company shall
appoint a successor Depository.  If a
successor Depository for the Notes of this series is not appointed by the
Company within 90 days after the Company receives such notice or becomes aware
of such ineligibility, the Company will issue, and the Trustee will
authenticate and deliver, Notes of this series in definitive form in an
aggregate principal amount equal to the principal amount of this Note.

No service charge shall
be made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection therewith.

Prior to due presentment of this Note for registration
of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the person in whose name this Note is registered as the owner
hereof for all purposes, and neither the Company nor the Trustee nor any agent
of the Company or of the Trustee shall be affected by any notice to the
contrary.

Section 8.  Events
of Default.  If an Event of Default
with respect to Notes of this series shall occur and be continuing, the amount
that may be declared due and payable upon any acceleration of the notes will be
determined by the Calculation Agent and will equal, for each note, the
principal amount plus (a) the Fixed Return deemed to have accrued for the
period from and including the Trade Date to but excluding the date of early
repayment calculated on the basis of a 360-day year consisting of 12 months of
30 days each, and, in the case of an incomplete month, the number of days
elapsed, and (b) the Principal Adjustment Amount, calculated as though the
maturity of the notes were the date of early repayment.  If a bankruptcy proceeding is commenced in
respect of Lehman Brothers Holdings, the claim of the beneficial owner of a
note will be capped at the principal amount plus (a) the Fixed Return deemed to
have accrued for the period from and including the Trade Date to but excluding
the date of the commencement of the proceeding calculated on the basis of a
360-day year consisting of 12 months of 30 days each, and, in the case of an
incomplete month, the number of days elapsed, and (b) the Principal Adjustment
Amount, calculated as though the maturity of the notes were the date of the
commencement of the proceeding.

Section 9.  No
Recourse Against Certain Persons.  No
recourse for the payment of the Redemption Amount or for any claim based hereon
or otherwise in respect hereof, and no recourse under or upon any obligation,
covenant or agreement of the Company in the Indenture or any Indenture
supplemental thereto or in any Note, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or of any successor corporation, either directly or through the Company
or any successor corporation, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty or otherwise,
all such liability being, by the acceptance hereof and as part of the
consideration for the issue hereof, expressly waived and released.

Section 10.  Defined
Terms.  All terms used but not
defined in this Note are used herein as defined in the Indenture.

Section 11.  GOVERNING LAW.  THIS NOTE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.Exhibit 10.1

 

SECOND
AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

amended and restated as of January
29, 2007

by and among

REAL
MEX RESTAURANTS, INC.

ACAPULCO RESTAURANTS, INC.

EL TORITO FRANCHISING COMPANY

EL TORITO RESTAURANTS, INC.

TARV, INC.

ACAPULCO RESTAURANT OF VENTURA, INC.

ACAPULCO RESTAURANT OF WESTWOOD, INC.

ACAPULCO MARK CORP.

MURRAY PACIFIC

ALA DESIGN, INC.

REAL MEX FOODS, INC.

ACAPULCO RESTAURANT OF DOWNEY, INC.

ACAPULCO RESTAURANT OF MORENO VALLEY, INC.

EL PASO CANTINA, INC.

CKR ACQUISITION CORP. 

CHEVYS RESTAURANTS, LLC

 

(collectively, the “Borrowers”)

GENERAL
ELECTRIC CAPITAL CORPORATION

and the other financial institutions from time to time

listed on Schedule 1 hereto

(the “Lenders”)

and

GENERAL ELECTRIC CAPITAL CORPORATION,
agent and administrative agent

(the “Agent”)

TABLE
OF CONTENTS

	
  

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  1.

  	
  DEFINITIONS AND RULES OF INTERPRETATION

  	
  1

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.2

  	
  Rules of Interpretation

  	
  26

  
	
   

  	
   

  	
   

  
	
  2.

  	
  THE REVOLVING CREDIT FACILITY

  	
  27

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Commitment to Lend

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.2

  	
  Commitment Fee

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.3

  	
  Reduction of Total Revolving Credit Commitment

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.4

  	
  The Revolving Credit Notes

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.5

  	
  Interest on Revolving Credit Loans

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.6

  	
  Requests for Revolving Credit Loans

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.7

  	
  Conversion Options

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.8

  	
  Funds for Revolving Credit Loans

  	
  30

  
	
   

  	
   

  	
   

  
	
  3.

  	
  REPAYMENT OF THE REVOLVING CREDIT LOANS

  	
  32

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Maturity

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.2

  	
  Mandatory Repayments of Revolving Credit Loans

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.3

  	
  Optional Repayments of Revolving Credit Loans

  	
  32

  
	
   

  	
   

  	
   

  
	
  4.

  	
  [Intentionally Omitted]

  	
  32

  
	
   

  	
   

  	
   

  
	
  5.

  	
  LETTERS OF CREDIT

  	
  33

  
	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Letter of Credit Commitment

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.2

  	
  Reimbursement Obligation of the Borrowers

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.3

  	
  Letter of Credit Payments

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.4

  	
  Obligations Absolute

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.5

  	
  Reliance by Issuer

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.6

  	
  Letter of Credit Fee

  	
  37

  
	
   

  	
   

  	
   

  
	
  6.

  	
  CERTAIN GENERAL PROVISIONS

  	
  38

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Fees

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.2

  	
  Funds for Payments

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.3

  	
  Computations

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.4

  	
  Inability to Determine Eurodollar Rate

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.5

  	
  Illegality

  	
  41

  

 

 

	
  

  	
  6.6

  	
  Additional Costs, etc

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.7

  	
  Capital Adequacy

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.8

  	
  Certificate

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.9

  	
  Indemnity

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.10

  	
  Interest After Default

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.11

  	
  Concerning Joint and Several Liability of the
  Borrowers

  	
  45

  
	
   

  	
   

  	
   

  
	
  7.

  	
  GUARANTY; COLLATERAL SECURITY; COLLATERAL NOTES

  	
  48

  
	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Security of Borrowers

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.2

  	
  Collateral Notes

  	
  48

  
	
   

  	
   

  	
   

  
	
  8.

  	
  REPRESENTATIONS AND WARRANTIES

  	
  48

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Corporate Authority

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.2

  	
  Governmental Approvals

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.3

  	
  Title to Properties; Leases

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.4

  	
  Financial Statements

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.5

  	
  No Material Changes, etc

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.6

  	
  Laws, Licenses; Franchises, Patents, Copyrights, etc

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.7

  	
  Litigation

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.8

  	
  No Materially Adverse Contracts, etc

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.9

  	
  Compliance with Other Instruments, etc

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.10

  	
  Tax Status

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.11

  	
  No Event of Default. No Default or Event of Default
  has occurred and is continuing

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.12

  	
  Investment Company Acts

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.13

  	
  Absence of Financing Statements; Perfection of
  Security Interests

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.14

  	
  Employee Benefit Plans

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.15

  	
  Use of Proceeds

  	
  54

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.16

  	
  Disclosure

  	
  54

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.17

  	
  Environmental Compliance

  	
  55

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.18

  	
  Subsidiaries, etc

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.19

  	
  Senior Secured Debt Documents; Equity Documents;
  Unsecured Term Loan Documents and Parent Debt Documents

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.20

  	
  Solvency

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.21

  	
  Certain Transactions

  	
  58

  

 

 ii
 

 

	
  

  	
  8.22

  	
  Bank Accounts

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.23

  	
  Stores

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.24

  	
  Franchise Agreements

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.25

  	
  Leases

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.26

  	
  Foreign Assets Control Regulations

  	
  59

  
	
   

  	
   

  	
   

  
	
  9.

  	
  AFFIRMATIVE COVENANTS

  	
  59

  
	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Punctual Payment

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.2

  	
  Maintenance of Office

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.3

  	
  Records and Accounts

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.4

  	
  Financial Statements, Certificates and Information

  	
  60

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.5

  	
  Notices

  	
  62

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.6

  	
  Corporate Existence; Maintenance of Properties

  	
  63

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.7

  	
  Insurance

  	
  63

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.8

  	
  Taxes

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.9

  	
  Inspection of Properties and Books, etc

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.10

  	
  Compliance with Laws, Contracts, Licenses, and
  Permits

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.11

  	
  Employee Benefit Plans

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.12

  	
  Use of Proceeds

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.13

  	
  Additional Mortgaged Property; Notice of Leases

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.14

  	
  Further Assurances

  	
  67

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.15

  	
  Conduct of Business; Stores

  	
  67

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.16

  	
  Additional Mortgages Post Default

  	
  67

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.17

  	
  Bank Accounts

  	
  68

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.18

  	
  New Subsidiaries; Ownership of Borrowers by Real Mex

  	
  69

  
	
   

  	
   

  	
   

  
	
  10.

  	
  CERTAIN NEGATIVE COVENANTS

  	
  69

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Restrictions on Indebtedness

  	
  69

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.2

  	
  Restrictions on Liens

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.3

  	
  Restrictions on Investments

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.4

  	
  Restricted Payments

  	
  73

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.5

  	
  Mergers and Consolidations, Dispositions of Assets,
  Acquisitions

  	
  75

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.6

  	
  Sale and Leaseback

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.7

  	
  Compliance with Environmental Laws

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.8

  	
  Employee Benefit Plans

  	
  76

  

 

 iii
 

 

	
  

  	
  10.9

  	
  Change in Fiscal Year

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.10

  	
  Transactions with Affiliates

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.11

  	
  Bank Accounts

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.12

  	
  Franchises

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.13

  	
  Senior Secured Debt Documents

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.14

  	
  Maximum Number of Unprofitable Stores

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.15

  	
  Unsecured Term Loan Documents

  	
  78

  
	
   

  	
   

  	
   

  
	
  11.

  	
  FINANCIAL COVENANTS OF THE BORROWER

  	
  78

  
	
   

  	
   

  	
   

  
	
   

  	
  11.1

  	
  Leverage Ratio

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.2

  	
  Adjusted Leverage Ratio

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.3

  	
  Cash Flow Ratio

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.4

  	
  Capital Expenditures and Lease Incurrence

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.5

  	
  [Intentionally Omitted]

  	
  79

  
	
   

  	
   

  	
   

  
	
  12.

  	
  CLOSING CONDITIONS

  	
  79

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  Loan Documents, etc

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.2

  	
  Certified Copies of Charter Documents

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.3

  	
  Corporate Action

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.4

  	
  Incumbency Certificate

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.5

  	
  Validity of Liens

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.6

  	
  Perfection Certificates and Uniform Commercial Code
  Search Results

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.7

  	
  Taxes

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.8

  	
  Landlord Consents

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.9

  	
  Environmental Due Diligence

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.10

  	
  Certificates of Insurance

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.11

  	
  Solvency Certificate

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.12

  	
  Opinions of Counsel

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.13

  	
  Payment of Fees and Expenses

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.14

  	
  Payoff Arrangements

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.15

  	
  Capital Structure

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.16

  	
  Disbursement Instructions

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.17

  	
  No Material Adverse Change

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.18

  	
  Financial Statements and Projections

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.19

  	
  No Litigation

  	
  82

  

 

 iv
 

 

	
  

  	
  12.20

  	
  Consents and Approvals

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.21

  	
  Other Documentation

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.22

  	
  Closing Checklist

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.23

  	
  Financial Condition

  	
  83

  
	
   

  	
   

  	
   

  
	
  13.

  	
  CONDITIONS TO ALL BORROWINGS

  	
  83

  
	
   

  	
   

  	
   

  
	
   

  	
  13.1

  	
  Representations True; No Event of Default

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.2

  	
  No Legal Impediment

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.3

  	
  Governmental Regulation

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.4

  	
  Proceedings and Documents

  	
  84

  
	
   

  	
   

  	
   

  
	
  14.

  	
  EVENTS OF DEFAULT; ACCELERATION; ETC

  	
  84

  
	
   

  	
   

  	
   

  
	
   

  	
  14.1

  	
  Events of Default and Acceleration

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.2

  	
  Termination of Commitments

  	
  88

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.3

  	
  Remedies

  	
  89

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  14.4

  	
  Distribution of Collateral Proceeds

  	
  89

  
	
   

  	
   

  	
   

  
	
  15.

  	
  SETOFF

  	
  90

  
	
   

  	
   

  	
   

  
	
   

  	
  15.1

  	
  Setoff

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  15.2

  	
  Consent to Setoff

  	
  90

  
	
   

  	
   

  	
   

  
	
  16.

  	
  THE AGENT

  	
  91

  
	
   

  	
   

  	
   

  
	
   

  	
  16.1

  	
  Authorization

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.2

  	
  Employees and Agents

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.3

  	
  No Liability

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.4

  	
  No Representations

  	
  92

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.5

  	
  Payments

  	
  92

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.6

  	
  Holders of Notes

  	
  93

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.7

  	
  Indemnity

  	
  93

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.8

  	
  Agent as Lender

  	
  94

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.9

  	
  Resignation

  	
  94

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.10

  	
  Notification of Defaults and Events of Default;
  Other Notices

  	
  94

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.11

  	
  Duties in the Case of Enforcement

  	
  94

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  16.12

  	
  Agent May File Proofs of Claim

  	
  95

  
	
   

  	
   

  	
   

  
	
  17.

  	
  TREATMENT OF CERTAIN CONFIDENTIAL INFORMATION

  	
  96

  
	
   

  	
   

  	
   

  
	
   

  	
  17.1

  	
  Confidentiality

  	
  96

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  17.2

  	
  Prior Notification

  	
  96

  

 

 v
 

 

	
  

  	
  17.3

  	
  Other

  	
  96

  
	
   

  	
   

  	
   

  
	
  18.

  	
  EXPENSES AND INDEMNIFICATION

  	
  96

  
	
   

  	
   

  	
   

  
	
   

  	
  18.1

  	
  Expenses

  	
  96

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  18.2

  	
  Indemnification

  	
  97

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  18.3

  	
  Survival

  	
  98

  
	
   

  	
   

  	
   

  
	
  19.

  	
  SURVIVAL OF COVENANTS, ETC

  	
  98

  
	
   

  	
   

  	
   

  
	
  20.

  	
  ASSIGNMENT AND PARTICIPATION

  	
  98

  
	
   

  	
   

  	
   

  
	
   

  	
  20.1

  	
  Conditions to Assignment by Lenders

  	
  98

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.2

  	
  Certain Representations and Warranties; Limitations;
  Covenants

  	
  99

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.3

  	
  Register

  	
  101

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.4

  	
  New Notes

  	
  101

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.5

  	
  Participations

  	
  101

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.6

  	
  Disclosure

  	
  101

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.7

  	
  Assignee or Participant Affiliated with the
  Borrowers

  	
  102

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.8

  	
  Miscellaneous Assignment Provisions

  	
  102

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.9

  	
  Assignment by Borrowers

  	
  102

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  20.10

  	
  Special Purpose Funding Vehicle

  	
  103

  
	
   

  	
   

  	
   

  
	
  21.

  	
  NOTICES, ETC

  	
  103

  
	
   

  	
   

  	
   

  
	
  22.

  	
  GOVERNING LAW

  	
  104

  
	
   

  	
   

  	
   

  
	
  23.

  	
  HEADINGS

  	
  105

  
	
   

  	
   

  	
   

  
	
  24.

  	
  COUNTERPARTS

  	
  105

  
	
   

  	
   

  	
   

  
	
  25.

  	
  ENTIRE AGREEMENT, ETC

  	
  105

  
	
   

  	
   

  	
   

  
	
  26.

  	
  WAIVER OF JURY TRIAL

  	
  105

  
	
   

  	
   

  	
   

  
	
  27.

  	
  CONSENTS, AMENDMENTS, WAIVERS, ETC

  	
  105

  
	
   

  	
   

  	
   

  
	
  28.

  	
  SEVERABILITY

  	
  106

  
	
   

  	
   

  	
   

  
	
  29.

  	
  RIGHT TO PUBLICIZE

  	
  106

  
	
   

  	
   

  	
   

  
	
  30.

  	
  USURY

  	
  106

  
	
   

  	
   

  	
   

  
	
  31.

  	
  TRANSITIONAL ARRANGEMENTS

  	
  107

  
	
   

  	
   

  	
   

  
	
   

  	
  31.1

  	
  Existing Credit Agreement Superseded

  	
  107

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  31.2

  	
  Interest and Fees Under Superseded Agreement

  	
  107

  
	
   

  	
   

  	
   

  	
   

  
	
  32.

  	
  Patriot Act

  	
  107

  

 

 vi
 

Schedules and Exhibits

 

	
  Schedule 1

  	
  Lenders; Revolving Credit Commitments; Revolving
  Credit Commitment Percentages

  
	
  Schedule 2

  	
  Mortgages at Closing

  
	
  Schedule 8.2

  	
  Governmental Approvals

  
	
  Schedule 8.3

  	
  Title to Properties; Leases

  
	
  Schedule 8.3A

  	
  Owned Real Property

  
	
  Schedule 8.6.2

  	
  Intellectual Property Matters

  
	
  Schedule 8.7

  	
  Litigation

  
	
  Schedule 8.14.2

  	
  Terminability of Welfare Plans

  
	
  Schedule 8.17

  	
  Environmental Matters

  
	
  Schedule 8.18

  	
  Subsidiaries

  
	
  Schedule 8.21

  	
  Certain Transactions

  
	
  Schedule 8.22

  	
  Bank Accounts

  
	
  Schedule 8.22A

  	
  Bank Accounts

  
	
  Schedule 8.23

  	
  Stores

  
	
  Schedule 10.1

  	
  Existing Indebtedness

  
	
  Schedule 10.2

  	
  Existing Liens

  
	
  Schedule 10.3

  	
  Existing Investments

  
	
  Schedule 12.8

  	
  Title Insurance

  
	
  Exhibit A

  	
  Form of Revolving Credit Note

  
	
  Exhibit B

  	
  Form of Revolving Credit Loan Request

  
	
  Exhibit C

  	
  Form of Compliance Certificate

  
	
  Exhibit D

  	
  Form of Assignment and Acceptance

  
	
  Exhibit F

  	
  Closing Checklist

  

 

 vii

SECOND
AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

This SECOND AMENDED AND RESTATED REVOLVING CREDIT
AGREEMENT is amended and restated as of January 29, 2007, by and
among, (a) REAL MEX RESTAURANTS, INC.,
formerly known as Acapulco Acquisition Corp., a Delaware corporation (“Real
Mex”), ACAPULCO RESTAURANTS, INC.,a Delaware corporation (“ARI”), EL TORITO FRANCHISING COMPANY, a Delaware
corporation (“ETFI”), EL TORITO
RESTAURANTS, INC., a Delaware corporation (“ETRI”), TARV, INC.,
a California corporation (“TARV”), ACAPULCO
RESTAURANT OF VENTURA, INC., a California corporation (“ARV”),
ACAPULCO RESTAURANT OF WESTWOOD, INC.,
a California corporation (“ARW”), ACAPULCO
MARK CORP., a Delaware corporation (“AMC”), MURRAY PACIFIC, a California corporation (“MP”),
ALA DESIGN, INC., a California
corporation (“ALAD”), REAL MEX FOODS,
INC., formerly known as ALA Foods, Inc., a California corporation (“RMF”),
ACAPULCO RESTAURANT OF DOWNEY, INC.,
a California corporation (“ARD”), ACAPULCO
RESTAURANT OF MORENO VALLEY, INC., a California corporation (“AMV”),
EL PASO CANTINA, INC., a
California corporation (“EPC”), CKR
ACQUISITION CORP., a Delaware corporation (“CKR”), CHEVYS RESTAURANTS, LLC, a Delaware
limited liability company (“Chevys”) and each of the other Subsidiaries
of Real Mex which shall from time to time hereafter become a party hereto
pursuant to §9.18 hereof (collectively with Real Mex, ARI, ETFI, ETRI, TARV,
ARV, ARW, AMC, MP, ALAD, RMF, ARD, AMV, EPC, CKR and Chevys the “Borrowers”),
(b) GENERAL ELECTRIC CAPITAL CORPORATION(“GE Capital”) and the
other lending institutions listed on Schedule 1, and (c) GENERAL ELECTRIC CAPITAL CORPORATIONas agent and administrative agent for itself and such other
lending institutions, pursuant to which the parties agree as follows.

Certain Borrowers, Fleet National Bank as agent and
administrative agent (which was succeeded as agent and administrative agent by
Bank of Montreal pursuant to that certain Assignment Arrangement Agreement
dated as of October 5, 2006) and certain lenders entered into an Amended and
Restated Revolving Credit Agreement, dated as of March 31, 2004 (the “Original
Closing Date”) (as amended and in effect on the Closing Date, the “Existing
Credit Agreement”).  The parties
hereto hereby agree to amend and restate the Existing Credit Agreement to,
among other things, provide a $15,000,000 revolving credit facility (with
unlimited availability for letters of credit) and a $25,000,000 letter of
credit facility.

NOW, THEREFORE, in consideration of the premises and
the agreements, provisions and covenants herein contained, the parties hereto
agree to amend and restate the Existing Credit Agreement (including all schedules and
exhibits thereto) in its entirety to read as follows:

1.             DEFINITIONS AND
RULES OF INTERPRETATION.

1.1          Definitions.  The following terms shall have the meanings
set forth in this §1 or elsewhere in the provisions of this Credit Agreement
referred to below:

Acapulco Companies.  Collectively, all of the Borrowers that are
not El Torito Companies.

Acapulco Concept.  The method of operation used by and the
intellectual property associated with those Stores that as of the Closing Date
operate under any trade name that contains the words “Acapulco”.

Adjusted Debt.  At any time, the sum of (a) all Consolidated
Funded Indebtedness plus (b) an amount equal to eight (8) times
Consolidated Rental Expense for the most recently completed period of four (4)
consecutive fiscal quarters.

Adjusted Leverage Ratio.  As of the last day of any fiscal quarter of the
Borrowers, the ratio of (a) Adjusted Debt at such date, to (b) Consolidated
EBITDAR for the period of four (4) consecutive fiscal quarters ending on such
date.

Adjustment Date.  The
first day of the month immediately following the month in which a Compliance
Certificate is delivered by the Borrowers pursuant to §9.4(e).

AEI. 
As defined in the preamble hereto.

Affected Lenders.  See §6.7(c).

Affiliate.  Any Person that would be considered to be an
affiliate of any Borrower under Rule 144(a) of the Rules and Regulations of the
Securities and Exchange Commission, as in effect on the date hereof, if such
Borrower were issuing securities.

Agency Account.  See §9.17.

Agency Account Agreement.  See §9.17.

Agent’s Office.  The Agent’s office located at 8377 East
Hartford Drive, Suite 200, Scottsdale, Arizona 85255, or at such other location
as the Agent may designate from time to time.

Agent.  GE Capital acting as agent for the Lenders,
or such successor Agent as may be appointed pursuant to §16.9 hereof.

Agent’s Special Counsel.  Latham & Watkins LLP or such other
counsel as may be approved by the Agent.

ALAD.  As defined in the preamble hereto.

AMC. 
As defined in the preamble hereto.

Applicable Margin.  For the period commencing on the Closing Date
through the date upon which the Agent receives the Compliance Certificate
required to be delivered for the period ending on or about June 30, 2007, the
Applicable Margin with respect to Revolving Credit Loans that are Base Rate
Loans shall be 0.75% and the Applicable Margin with respect to Eurodollar Rate
Loans and Letters of Credit shall be 2.25%. 
After the receipt of such Compliance Certificate, for each period
commencing on an Adjustment Date through the date immediately preceding the
next Adjustment Date (each a “Rate Adjustment Period”), the Applicable
Margin 

 2
 

with respect to Revolving Credit Loans, (in each case,
for Base Rate Loans and Eurodollar Rate Loans) and for the Letters of Credit
shall be the applicable percentage set forth below with respect to each such
Loan or Letter of Credit, as the case may be, corresponding to the Borrowers’
Leverage Ratio, as of the most recently completed fiscal quarter of the
Borrowers ending immediately prior to the applicable Rate Adjustment Period:

	
  

  	
   

  	
   

  	
   

  	
  Revolving Credit Loans

  	
   

  
	
  Level

  	
   

  	
  Leverage Ratio

  	
   

  	
  Base

  Rate

  Loans

  	
   

  	
  Eurodollar Rate

  Loans and

  Letters of Credit

  	
   

  
	
  I

  	
   

  	
  <
  2.00:1.00

  	
   

  	
  0.00

  	
  %

  	
  1.50

  	
  %

  
	
  II

  	
   

  	
  3 2.00:1.00 and
  < 2.50:1.00

  	
   

  	
  0.25

  	
  %

  	
  1.75

  	
  %

  
	
  III

  	
   

  	
  3 2.50:1.00 and
  < 3.00:1.00

  	
   

  	
  0.50

  	
  %

  	
  2.00

  	
  %

  
	
  IV

  	
   

  	
  3 3.00:1

  	
   

  	
  0.75

  	
  %

  	
  2.25

  	
  %

  

 

Notwithstanding the foregoing, if the Borrowers fail
to deliver any Compliance Certificate pursuant to §9.4(e) hereof, then for the
period commencing on the date after the day on which such Compliance
Certificate was due through the date immediately preceding the Adjustment Date
that occurs immediately following the date on which such Compliance Certificate
is delivered, the Applicable Margin shall be that percentage corresponding to
Level IV in the table above.

Approved Fund.  With respect to any Lender that is a fund
that invests in bank loans, any other fund that invests in bank loans and is
advised or managed by the same investment advisor as such Lender or by an
affiliate of such investment advisor.

Approved Sale-Leaseback Transaction.
A Sale-Leaseback transaction by the Borrowers of fee Real Estate owned by the
Borrowers located at (a) 8855 Tampa Ave., Northridge, Los Angeles County,
California; (b) 3113 West Olive Ave., Burbank, Los Angeles County, California;
(c) 11185 South Town Square, Green Park, St. Louis County, Missouri; (d) 12380
St. Charles Rock Road, Bridgeton, St. Louis County, Missouri; and (e) 12796
Manchester Road, Des Peres, St. Louis County, Missouri., to be completed on or
prior to the Closing Date, on terms and conditions satisfactory to the Agent,
for total net proceeds of approximately $12,100,000.

ARD. 
As defined in the preamble hereto.

ARI. 
As defined in the preamble hereto.

ARV. 
As defined in the preamble hereto.

ARW. 
As defined in the preamble hereto.

Assignment and Acceptance.  See §20.1.

 3
 

Assignment and Agency Account Agreement.  The Amended and Restated Assignment and
Agency Account Agreement, amended and restated as of the Closing Date, among
the Agent and the Borrowers, or any other substantially similar agreement in
all respects satisfactory to the Agent.

Backstop Letter of Credit.  That certain letter of credit issued by the
L/C Issuer hereunder for the account of Borrowers in the initial aggregate face
amount of $24,877,709.85with an
expiry date of December 4, 2007for the
benefit of Bank of America, N.A. to backstop Bank of America’s obligations
under, and arising in connection with, certain letters of credit issued by Bank
of America, N.A. on the Borrowers’ behalf, prior to the Closing Date.

Balance Sheet Date.  December 25, 2005.

Base Rate.  At any time, a rate per annum equal to the
higher of (a) the rate last quoted by The Wall Street Journal as the “base
rate on corporate loans posted by at least 75% of the nation’s largest banks”
in the United States or, if The Wall Street Journal ceases to quote such
rate, the highest per annum interest rate published by the Federal Reserve
Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest
Rates) as the “bank prime loan” rate or, if such rate is no longer quoted
therein, any similar rate quoted therein (as determined by Agent) or any
similar release by the Federal Reserve Board (as determined by Agent) and (b)
the sum of 0.5% per annum and the Federal Funds Rate.  Any change in the Base Rate due to a change
in any of the foregoing shall be effective on the effective date of such change
in the “bank prime loan” rate or the Federal Funds Rate.

Base Rate Loans.  Revolving Credit Loans bearing interest
calculated by reference to the Base Rate.

Borrower(s).  As defined in the preamble hereto.

Business Day.  Any day (excluding Saturday and Sunday) on
which banking institutions in Chicago, Illinois or New York, New York, are open
for the transaction of banking business and, in the case of Eurodollar Rate
Loans, also a day which is a Eurodollar Business Day.

Capital Assets.  Fixed assets, both tangible (such as land,
buildings, fixtures, machinery and equipment) and intangible (such as patents,
copyrights, trademarks, franchises and goodwill); provided that Capital
Assets shall not include any item customarily charged directly to expense or
depreciated over a useful life of twelve (12) months or less in accordance with
generally accepted accounting principles.

Capital Expenditures.  Amounts paid or Indebtedness incurred by the
Borrowers or any of their Subsidiaries in connection with (i) the purchase or
lease by the Borrowers or any of their Subsidiaries of Capital Assets that
would be required to be capitalized and shown on the balance sheet of such Person
in accordance with generally accepted accounting principles, (ii) Consolidated
Restaurant Pre-Opening Costs, or (iii) the lease of any assets by the Borrowers
or any of their Subsidiaries as lessee under any Synthetic Lease to the extent
that such assets would have been Capital Assets had the Synthetic Lease been
treated for accounting purposes as a Capitalized Lease.

 4
 

Capitalized Leases.  Leases under which any Borrower or any of
their respective Subsidiaries is the lessee or obligor, the discounted future
rental payment obligations under which are required to be capitalized on the
balance sheet of the lessee or obligor in accordance with generally accepted
accounting principles.

Casa Gallardo Concept.  The method of operation used by and the
intellectual property associated with those Stores that as of the Closing Date
operate under any trade name that contains the words “Casa Gallardo”.

Casa Gallardo Grill Concept.  The method of operation used by and the
intellectual property associated with those Stores that as of the Closing Date
operate under any trade name that contains the words “Casa Gallardo Grill”.

Cash Flow Ratio.  As at the end of each fiscal quarter of the
Borrowers, the ratio of (a) Consolidated Cash Flow for the last four fiscal
quarters then ended and (b) Consolidated Financial Obligations for the
Measurement Period then ending.

CERCLA.  See §8.17(a).

Change of Control.  At any time, the occurrence of one or more of
the following events:  (i) Sun Capital
and the Sun Capital Affiliates shall collectively cease to have the power,
directly or indirectly (including under any stockholders’ agreement) to elect a
majority of the directors of the Parent or any Borrower, (ii) the replacement
of a majority of the board of directors of the Parent or any Borrower over a
two-year period from the directors who constituted the board of directors of
the Parent or such Borrower, as applicable, at the beginning of such period,
and such replacement shall not (1) have been approved by a vote of at least a
majority of the board of directors of the Parent or such Borrower, as
applicable, then still in office who either were members of such board of
directors at the beginning of such period or whose election as a member of such
board of directors was previously so approved, or (2) have been elected or
nominated for election by Sun Capital or a Sun Capital Affiliate, (iii) the
Parent shall at any time fail to own, directly or indirectly, 100% of each
class of issued and outstanding Voting Stock and economic interests of Real Mex
free and clear of all Liens, (iv) Sun Capital and the other Sun Capital
Affiliates shall collectively cease to own, directly or indirectly, at least
54% of the Voting Stock and economic interests of the Parent or any Borrower,
(v) the Permitted Holders shall collectively cease to own, directly or
indirectly, at least 60% of the Voting Stock and economic interests of the
Parent or any Borrower, (vi) any “Change of Control” under the Senior Secured
Debt Documents, (vii) any “Change of Control” under (and as defined in) the
Unsecured Term Loan Documents, or (viii) any “Change of Control” under (and as
defined in) the Parent Debt Documents.

Chevys.  As defined in the preamble hereto.

CKR. 
As defined in the preamble hereto.

Closing Date. January 29, 2007.

Code.  The Internal Revenue Code of 1986.

 5
 

Co-Investors.  H.I.G. Sun Partners, Inc., Kevin Genda,
certain members of management of the Parent, Real Mex, the Subsidiaries of Real
Mex, and any of their Control Investment Affiliates.

Collateral.  All of the property, rights and interests of
the Borrowers and their Subsidiaries that are or are intended to be subject to
the security interests and mortgages created by the Security Documents.

Collateral Notes.  See §7.2.

Compliance Certificate.  See §9.4(e).

Concentration Accounts.  That account with Union Bank of California,
N.A. with account number 3030167170 and that account with Wells Fargo Bank with
account number 4296-911928 and any other depository account that is (a) in the
name of the Borrowers, (b) under the control of the Agent for the benefit of
the Lenders and the Agent, and (c) with a financial institution reasonably
acceptable to the Agent that has entered into an Agency Account Agreement with
the Agent and the Borrowers.

Concept.  Any of the Acapulco Concept, the Casa
Gallardo Concept, the Casa Gallardo Grill Concept, the Guadala Harry’s Concept,
the El Torito Concept, the El Torito Grill Concept, the Hola Amigos Concept,
the Keystone Grill Concept, the Las Brisas Concept, or the Who Song & Larry’s
Concept.

Consolidated or consolidated.  With reference to any term defined herein,
that term as applied to the accounts of the Borrowers and all of their
Subsidiaries, consolidated in accordance with generally accepted accounting
principles.

Consolidated Cash Flow.  For any period, Consolidated EBITDA of the
Borrowers and their Subsidiaries for such period, minus the sum of (a)
cash income taxes paid during such period by the Borrowers and their
Subsidiaries on a consolidated basis and (b) the greater of (i) the aggregate
amount of Maintenance Capital Expenditures made during such period by the
Borrowers and their Subsidiaries or (ii) $3,500,000, plus decreases in Consolidated Working Capital from the beginning to
the end of such period or minus increases in Consolidated Working
Capital from the beginning to the end of such period.

Consolidated Cash Interest Expense.  For any period, the aggregate portion of
Consolidated Total Interest Expense required to be paid in cash by any Borrower
or any of its Subsidiaries during such period.

Consolidated Current Assets.  All assets of the Borrowers and their
Subsidiaries on a consolidated basis that, in accordance with generally
accepted accounting principles, are properly classified as current assets, provided
that (i) notes and accounts receivable shall be included only if good and
collectible as determined by the Borrowers in accordance with established
practice consistently applied and, with respect to such notes, only if payable
on demand or within one (1) year from the date as of which Consolidated Current
Assets are to be determined and if not directly or indirectly renewable or
extendible at the option of the debtors, by their terms, or by the terms of any
instrument or agreement relating thereto, beyond such year, 

 6
 

and, with respect to such accounts receivable, only if
payable and outstanding not more than ninety (90) days after the date of the
shipment of goods or other transaction out of which any such account receivable
arose; and such notes and accounts receivable shall be taken at their face
value less reserves determined to be sufficient in accordance with generally
accepted accounting principles; (ii) inventory shall be included only if and to
the extent that the same shall be marketable in the ordinary course of
business; and (iii) cash and marketable securities shall be excluded.

Consolidated Current Liabilities.  All liabilities and other Indebtedness of the
Borrowers and their Subsidiaries on a consolidated basis maturing on demand or
within one (1) year from the date as of which Consolidated Current Liabilities
are to be determined, and such other liabilities as may properly be classified
as current liabilities in accordance with generally accepted accounting
principles, but excluding, in any event, (a) any current maturities of any
Indebtedness of the Borrowers and their Subsidiaries on a consolidated basis
with a maturity one (1) year or more from the date as of which Consolidated
Current Liabilities are to be determined and (b) payments due in the final year
of any Capitalized Lease.

Consolidated EBITDA.  For any period, the sum of (a) the
Consolidated Pre-Tax Income of the Borrowers and their Subsidiaries for such
period, plus (b) to the extent not otherwise included in the calculation
of Consolidated Pre-Tax Income of the Borrowers and their Subsidiaries, income
of a Person in which any Borrower holds a minority equity interest to the
extent such income is properly attributable to such minority interest held by
such Borrower and such income has been distributed to such Borrower in cash, plus
(c) Consolidated Total Interest Expense for such period, plus (d) to the extent deducted in the calculation of Consolidated
Pre-Tax Income, Consolidated Restaurant Pre-Opening Costs and depreciation and
amortization expenses of the Borrowers and their Subsidiaries for such period, plus
(e) to the extent deducted in the calculation of Consolidated Pre-Tax Income
and without duplication, other non-cash charges (including non-cash
extraordinary losses) of the Borrowers and their Subsidiaries for such period, plus
(f) to the extent deducted in the calculation of Consolidated Pre-Tax Income
and without duplication, Transaction Costs in an aggregate amount not to exceed
$8,000,000, plus (g) to the extent deducted in the calculation of
Consolidated Pre-Tax Income and without duplication, payments to restricted
stockholders of Real Mex pursuant to the Merger Agreement in an aggregate
amount not to exceed $2,400,000, plus (h) to the extent deducted in the
calculation of Consolidated Pre-Tax Income and without duplication, any fees
and expenses paid pursuant to the Management Services Agreement, plus
(i) to the extent deducted in the calculation of Consolidated Pre-Tax Income
and without duplication, non-recurring expenses incurred in connection with (x)
certain class action lawsuits set forth on Schedule 8.7 hereto, (y) any
litigation claims consolidated with any of the litigation matters set forth on Schedule
8.7 hereto and (z) any claims alleged against the Borrowers and/or their
Subsidiaries that are asserted which arise in whole or in part from the conduct
or alleged conduct of business or any other action allegedly taken or omitted
to be taken by the Borrowers or any of their Subsidiaries prior to the
consummation of the Merger and that assert substantially the same or
substantially similar legal theories as those relating to the litigation
described above (collectively, the “Existing Litigation”) up to
$8,500,000 in the aggregate, plus (j) to the extent deducted in the calculation
of Consolidated Pre-Tax Income and without duplication, option payments
pursuant to the Merger Agreement in an aggregate amount not to exceed
$6,000,000, minus (k) to the extent 

 7
 

included in the calculation of Consolidated Pre-Tax
Income, extraordinary non-recurring gains, including without limitation, gains
from asset dispositions.

Consolidated EBITDAR.  For any period, the sum of (a) the
Consolidated EBITDA of the Borrowers and their Subsidiaries for such period, plus
(b) Consolidated Rental Expense for such period.

Consolidated Financial Obligations.  For any period, the sum of (a) all scheduled
payments of principal on Indebtedness of the Borrowers and their Subsidiaries,
including Capitalized Leases and including Synthetic Leases during such period
(but not including Consolidated Rental Expense), plus (b) Consolidated Cash
Interest Expense.  Demand obligations
shall be deemed to be due and payable during any period during which such
obligations are outstanding. 
Notwithstanding the foregoing, the parties agree that for any
Measurement Period ending after the Closing Date, Consolidated Financial
Obligations shall be determined by annualizing the actual Consolidated
Financial Obligations of the Borrowers and their Subsidiaries for such Measurement
Period by multiplying such amount by a number obtained by dividing 365 by
the number of days in the period from the first day of such Measurement Period
to the last day of such Measurement Period.

Consolidated Funded Indebtedness.  At any time, the sum of (a) the aggregate
amount of Indebtedness of the Borrowers and their Subsidiaries, on a
consolidated basis, relating to the borrowing of money or the obtaining of
credit (but not including the Maximum Drawing Amount still available under
Letters of Credit or trade credit obtained in the ordinary course of business)
or in respect of Capitalized Leases, other than any interest in respect thereto
(but not including Indebtedness consisting of deferred tax liability), plus (b) without duplication, all Indebtedness
of the type described in clause (a) above guaranteed by the Borrowers or any of
their Subsidiaries.

Consolidated Net Income (or Deficit).  The consolidated net income (or deficit) of
the Borrowers and their Subsidiaries, after deduction of all expenses, taxes,
and other proper charges, determined in accordance with generally accepted
accounting principles.

Consolidated Pre-Tax Income.  For any period, Consolidated Net Income for
such period plus, to the extent deducted from the calculation of
Consolidated Net Income, income tax expenditures for such period, determined in
accordance with generally accepted accounting principles.

Consolidated Rental Expense.  For any period, all rental expense of the
Borrowers and their Subsidiaries during such period, determined on a
consolidated basis in accordance with generally accepted accounting principles,
incurred under any rental agreements or leases of real or personal property,
including space leases and ground leases, other than obligations in respect of
any Capitalized Leases or any Synthetic Leases.

Consolidated Restaurant Pre-Opening Costs.  “Start-up costs” (such term used herein as
defined in SOP 98-5 published by the American Institute of Certified Public
Accountants) related to the opening and organizing or conversion of new Stores,
such costs including, without 

 8
 

limitation, the cost of feasibility studies,
staff-training, and recruiting and travel costs for employees engaged in such
start-up activities.

Consolidated Total Interest Expense.  For any period, the aggregate amount of
interest required to be paid or accrued by the Borrowers and their Subsidiaries
during such period on all Indebtedness of the Borrowers and their Subsidiaries
outstanding during all or any part of such period, whether such interest was or
is required to be reflected as an item of expense or capitalized, including
payments consisting of interest in respect of Capitalized Leases, or any
Synthetic Lease and including commitment fees, agency fees, facility fees,
balance deficiency fees and similar fees or expenses (but not including the
one-time up-front “Underwriting Fee” referred to in the Fee Letter) in
connection with the borrowing of money, but excluding transaction expenses
associated with the Refinancing.

Consolidated Working Capital.  The excess of Consolidated Current Assets
over Consolidated Current Liabilities.

Contribution Agreement.  The Contribution Agreement, dated as of
September 11, 2006, by and between Sun Cantinas and the Parent.

Control Investment Affiliates.  As to any Person, any other Person that (a)
directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person and (b) is organized by such Person or any Person
controlling such Person primarily for the purpose of making equity or debt
investments in one or more companies. 
For the purpose of this definition “control” of a Person means
the power to direct or cause the direction of the management and policies of
such Person whether by contract or otherwise.

Conversion Request.  A notice given by the Borrowers to the Agent
of the Borrowers’ election to convert or continue a Loan in accordance with
§2.7.

Credit Agreement.  This Amended and Restated Revolving Credit
Agreement, including the Schedules and Exhibits hereto.

Credit Suisse.  Credit Suisse in its capacity as
administrative agent under the Parent Debt Documents or the Unsecured Term Loan
Documents or in its capacity as purchaser of the Notes (as defined in the
Indenture).

Default.  See §14.1.

Delinquent Lender.  See §16.5.3.

Distribution.  The declaration or payment of any dividend or
other distribution on or in respect of any Equity Interests of a Person, other
than dividends or distributions payable solely in Equity Interests of such
Person of the same class; the purchase, redemption, or other retirement of any
Equity Interests of a Person, directly or indirectly through a Subsidiary of
such Person or otherwise; the return of capital by a Person to the holders of
its Equity Interests as such; or any other distribution on or in respect of any
Equity Interests of a Person.

Dollars or $.  Dollars in lawful currency of the United
States of America.

 9
 

Domestic Lending Office.  Initially, the office of each Lender
designated as such in Schedule 1 hereto; thereafter, such other office
of such Lender, if any, located within the United States of America that will
be making or maintaining Base Rate Loans.

Drawdown Date.  The date on which any Loan is made or is to
be made, and the date on which any Revolving Credit Loan is converted or
continued in accordance with §2.7.

El Torito Companies.  Collectively, ETFI and ETRI.

El Torito Concept.  The method of operation used by and the
intellectual property associated with those Stores that as of the Closing Date
operate under any trade name that contains the words “El Torito”.

El Torito Grill Concept.  The method of operation used by and the
intellectual property associated with those Stores that as of the Closing Date
operate under any trade name that contains the words “El Torito Grill”.

Eligible Assignee.  Any of (a) a commercial bank or finance
company organized under the laws of the United States of America, or any State
thereof or the District of Columbia, and having total assets in excess of
$1,000,000,000; (b) a savings and loan association or savings bank organized
under the laws of the United States of America, or any State thereof or the
District of Columbia, and having a net worth of at least $100,000,000,
calculated in accordance with generally accepted accounting principles; (c) a commercial
bank organized under the laws of any other country which is a member of the
Organization for Economic Cooperation and Development (the “OECD”), or a political subdivision of any such
country, and having total assets in excess of $1,000,000,000, provided
that such bank is acting through a branch or agency located in the country in
which it is organized or another country which is also a member of the OECD;
(d) the central bank of any country which is a member of the OECD; (e) any
mutual fund, insurance company, or investment fund that is an “accredited
investor” (as defined in Regulation D of the Securities Act of 1933, as
amended); and (f) if, but only if, any Event of Default has occurred and is
continuing, any other bank, insurance company, commercial finance company or
other financial institution or other Person approved by the Agent, such
approval not to be unreasonably withheld.

Employee Benefit Plan.  Any employee benefit plan within the meaning
of §3(3) of ERISA maintained or contributed to by any Borrower or any ERISA
Affiliate other than a Multiemployer Plan.

Environmental Laws.  See §8.17(a).

EPA. 
See §8.17(b).

EPC. 
As defined in the preamble hereto.

Equity Documents. Collectively, (a)
the Stockholders Agreement, (b) the Subscription Agreement, (c) the
Contribution Agreement, and (d) the Registration Rights Agreement.

 10
 

Equity Interests.  All equity interests of a Person, including,
without limitation, any (a) common or preferred stock, (b) limited or general
partnership interests, (c) limited liability company membership interests, (d)
options, warrants, or other rights to purchase or acquire any Equity Interest,
or (e) securities convertible into any Equity Interest.

ERISA.  The Employee Retirement Income Security Act
of 1974.

ERISA Affiliate.  Any Person which is treated as a single
employer with any of the Borrowers under §414 of the Code.

ERISA Reportable Event.  A reportable event with respect to a
Guaranteed Pension Plan within the meaning of §4043 of ERISA and the
regulations promulgated thereunder.

Escrow Agreement.  The Escrow Agreement, dated as of August 21,
2006, by and among J.P. Morgan Trust Company, National Association, as Escrow
Agent thereunder, Real Mex, Parent and Sellers.

ETFI.  As defined in the preamble hereto.

ETRI.  As defined in the preamble hereto.

Eurocurrency Reserve Requirements.  For any Interest Period and for any
Eurodollar Rate Loan, a rate per annum equal to the aggregate, without
duplication, of the maximum rates (expressed as a decimal number) of reserve requirements
in effect 2 Business Days prior to the first day of such Interest Period
(including basic, supplemental, marginal and emergency reserves) under any
regulations of the Federal Reserve Board or other governmental agency or
authority having jurisdiction with respect thereto dealing with reserve
requirements prescribed for eurocurrency funding (currently referred to as “eurocurrency
liabilities” in Regulation D of the Federal Reserve Board) maintained by a
member bank of the United States Federal Reserve System.

Eurodollar Business Day.  Any day on which commercial banks are open
for international business (including dealings in Dollar deposits) in London or
such other eurodollar interbank market as may be selected by the Agent in its
sole discretion acting in good faith.

Eurodollar Lending Office.  Initially, the office of each Lender
designated as such in Schedule 1 hereto; thereafter, such other
office of such Lender, if any, that shall be making or maintaining Eurodollar
Rate Loans.

Eurodollar Base Rate.  For any Interest Period with respect to a
Eurodollar Rate Loan, the rate determined by the Agent to be the offered rate
per annum for deposits of Dollars for the applicable Interest Period that
appears on page BBAM on the Bloomberg Terminal (successor to the Dow Jones
Markets Telerate Page 3750) (“Page BBAM”) as of 11:00 a.m. (London, England time) two
Eurodollar Business Days prior to the first day in such Interest Period. In the
event that such rate does not appear on the Page BBAM (or otherwise on the
Bloomberg Terminal) at such time, such rate will be the rate of interest per
annum, as determined by the Agent (rounded upwards, if necessary, to the
nearest 1/100 of 1%) at which deposits of Dollars in immediately available
funds are offered at 11:00 a.m. (London, England time) two (2) Business Days
prior to 

 11
 

the first day in such Interest Period by major
financial institutions reasonably satisfactory to the Agent in the London
interbank market for such Interest Period for the applicable principal amount
on such date of determination.

Eurodollar Rate.  For
any Interest Period and for any Eurodollar Rate Loan, an interest rate per annum determined as
the ratio of (a) the Eurodollar Base Rate with respect to such Interest Period for such Eurodollar Rate Loan
to (b) the difference between the number one and the Eurodollar Reserve
Requirements with respect to such
Interest Period and for such Eurodollar Rate Loan.

Eurodollar Rate Loans.  Revolving Credit Loans bearing interest
calculated by reference to the Eurodollar Rate.

Event of Default.  See §14.1.

Excess Cash Flow.  As defined in the Unsecured Credit Agreement
as in effect on the Closing Date.

Existing Credit Agreement.  As defined in the preamble hereto.

Facilities.  Collectively, the Revolving Credit Loan
Facility and the Letter of Credit Facility.

Federal Funds Rate.  For any day, the rate per annum (rounded
upward to the nearest 1/100th of 1%) equal to the weighted average of the rates
on overnight Federal Funds transactions with members of the Federal Reserve
System arranged by Federal Funds brokers on such day, as published by the
Federal Reserve Bank of New York on the Business Day next succeeding such day,
provided that if no such rate is so published on such next succeeding Business
Day, the Federal Funds Rate for such day shall be the average rate quoted to
the Agent on such day on such transactions as determined by the Agent in a
commercially reasonable manner.

Fee Letter.  The letter agreement dated on or prior to the
Closing Date among GE Capital and the Borrowers.

Financial Affiliate.  A Subsidiary of the bank holding company
controlling any Lender, which Subsidiary is engaging in any of the activities
permitted by §4(e) of the Bank Holding Company Act of 1956 (12 U.S.C. §1843).

generally accepted accounting principles.  (a) When used in §11, whether directly or
indirectly through reference to a capitalized term used therein, means (i)
principles that are consistent with the principles promulgated or adopted by
the Financial Accounting Standards Board and its predecessors, in effect for
the fiscal year ended on the Balance Sheet Date, and (ii) to the extent
consistent with such principles, the accounting practice of Real Mex reflected
in its financial statements for the year ended on the Balance Sheet Date, and
(b) when used in general, other than as provided above, means principles that
are (i) consistent with the principles promulgated or adopted by the Financial
Accounting Standards Board and its predecessors, as in effect from time to time,
and (ii) consistently applied with past financial statements of Real Mex 

 12
 

adopting the same principles, provided that in each
case referred to in this definition of “generally accepted accounting
principles” a certified public accountant would, insofar as the use of such
accounting principles is pertinent, be in a position to deliver an unqualified
opinion (other than a qualification regarding changes in generally accepted
accounting principles) as to financial statements in which such principles have
been properly applied.

Growth Capital Expenditures.  (a) Capital Expenditures relating to the
construction, acquisition or opening of new Stores or the remodeling or
conversion of existing Stores to the extent that such remodeling or conversion
is not mere maintenance but is designed to result in a significant increase in
the revenue generated by such Store, in each case operated by the Borrowers and
their Subsidiaries after the Closing Date, plus (b) to the extent not
included in the calculation of such Capital Expenditures, Consolidated
Restaurant Pre-Opening Costs.

Guadala Harry’s Concept.  The method of operation used by and the
intellectual property associated with those Stores that as of the Closing Date
operate under any trade name that contains the words “Guadala Harry’s”.

Guaranteed Pension Plan.  Any employee pension benefit plan within the
meaning of §3(2) of ERISA maintained or contributed to by any Borrower or any
ERISA Affiliate the benefits of which are guaranteed on termination in full or
in part by the PBGC pursuant to Title IV of ERISA, other than a Multiemployer
Plan.

Hazardous Substances.  See §8.17(b).

Hola Amigos Concept.  The method of operation used by and the
intellectual property associated with those Stores that as of the Closing Date
operate under any trade name that contains the words “Hola Amigos”.

Indebtedness.  As to any Person and whether recourse is
secured by or is otherwise available against all or only a portion of the
assets of such Person and whether or not contingent, but without duplication:

(i)            every
obligation of such Person for money borrowed,

(ii)           every
obligation of such Person evidenced by bonds, debentures, notes or other
similar instruments, including obligations incurred in connection with the
acquisition of property, assets or businesses,

(iii)          every reimbursement obligation of such Person
with respect to letters of credit, bankers’ acceptances or similar facilities
issued for the account of such Person,

(iv)          every
obligation of such Person issued or assumed as the deferred purchase price of
property or services (including securities repurchase agreements but excluding
trade accounts payable or accrued liabilities arising in the ordinary course of
business which are not overdue by more than sixty (60) days or which are being
contested in good faith and for which the Borrowers maintain sufficient
reserves in accordance with generally accepted accounting principles),

 13
 

(v)           every
obligation of such Person under any Capitalized Lease,

(vi)          every
obligation of such Person under any lease treated as an operating lease under
generally accepted accounting principles and as a loan or financing for U.S.
income tax purposes (a “Synthetic Lease”),

(vii)         all sales by such Person of (A) accounts or
general intangibles for money due or to become due, (B) chattel paper,
instruments or documents creating or evidencing a right to payment of money or
(C) other receivables (collectively “receivables”), whether pursuant to a
purchase facility or otherwise, other than in connection with the disposition
of the business operations of such Person relating thereto or a disposition of
defaulted receivables for collection and not as a financing arrangement, and
together with any obligation of such Person to pay any discount, interest,
fees, indemnities, penalties, recourse, expenses or other amounts in connection
therewith,

(viii)        every obligation of such Person (an “equity
related purchase obligation”) to purchase, redeem, retire or otherwise acquire
for value any shares of capital stock of any class issued by such Person, any
warrants, options or other rights to acquire any such shares, or any rights
measured by the value of such shares, warrants, options or other rights,

(ix)           every
obligation of such Person under any forward contract, futures contract, swap,
option or other financing agreement or arrangement (including, without
limitation, caps, floors, collars and similar agreements), the value of which
is dependent upon interest rates, currency exchange rates, commodities or other
indices (a “derivative contract”),

(x)            every
obligation in respect of Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent that such
Person is liable therefor as a result of such Person’s ownership interest in or
other relationship with such entity, except to the extent that the terms of
such Indebtedness provide that such Person is not liable therefor and such
terms are enforceable under applicable law,

(xi)           every
obligation, contingent or otherwise, of such Person guaranteeing, or having the
economic effect of guarantying or otherwise acting as surety for, any
obligation of a type described in any of clauses (i) through (x) (the “primary
obligation”) of another Person (the “primary obligor”), in any manner, whether
directly or indirectly, and including, without limitation, any obligation of
such Person (A) to purchase or pay (or advance or supply funds for the purchase
of) any security for the payment of such primary obligation, (B) to purchase
property, securities or services for the purpose of assuring the payment of
such primary obligation, or (C) to maintain working capital, equity capital or
other financial statement condition or liquidity of the primary obligor so as
to enable the primary obligor to pay such primary obligation.

The “amount” or “principal amount” of any Indebtedness
at any time of determination represented by (u) any Indebtedness issued at a
price that is less than the principal amount at maturity thereof, shall be the
amount of the liability in respect thereof determined in accordance 

 14
 

with generally accepted accounting principles, (v) any
Capitalized Lease shall be the principal component of the aggregate of the
rentals obligation under such Capitalized Lease payable over the term thereof
that is not subject to termination by the lessee, (w) any sale of receivables
shall be the amount of unrecovered capital or principal investment of the
purchaser (other than any of the Borrowers or any of their wholly-owned
Subsidiaries) thereof, excluding amounts representative of yield or interest
earned on such investment, (x) any synthetic lease shall be the stipulated loss
value, termination value or other equivalent amount, (y) any derivative
contract shall be the maximum amount of any termination or loss payment
required to be paid by such Person if such derivative contract were, at the
time of determination, to be terminated by reason of any event of default or
early termination event thereunder, whether or not such event of default or
early termination event has in fact occurred and (z) any equity related
purchase obligation shall be the maximum fixed redemption or purchase price
thereof inclusive of any accrued and unpaid dividends to be comprised in such
redemption or purchase price.

The obligation of such Person to pay current year
insurance premiums in an amount not to exceed $3,500,000 shall be excluded from
Indebtedness.

Ineligible Securities.  Securities which may not be underwritten or
dealt in by member banks of the Federal Reserve System under Section 16 of the
Banking Act of 1993 (12 U.S.C. §24, Seventh), as amended.

Intercreditor Agreement.  The Intercreditor Agreement among the
Borrowers, Wells Fargo Bank, N.A. as collateral agent and as trustee under the
Senior Secured Debt Documents, and the Agent, dated as of March 31, 2004, as
amended and in effect from time to time, pursuant to which, among other things,
the liens securing the Senior Secured Debt are subordinated to the liens
securing the Obligations.

Intercreditor Agreement (Unsecured Term Loan).  The Subordination and Intercreditor Agreement
among the Parent, the Borrowers, Credit Suisse, as administrative agent under
the Unsecured Term Loan Documents, and the Agent, dated as of or prior to the
Closing Date, as amended and in effect from time to time, pursuant to which,
among other things, the Unsecured Term Loan and other obligations incurred
pursuant to or evidenced by the Unsecured Term Loan Documents are subordinated
to the Obligations.

Intercreditor Agreement (Parent Debt).  The Subordination and Intercreditor Agreement
among the Parent, the Borrowers, Credit Suisse, as administrative agent under
the Parent Debt Documents, and the Agent, dated as of or prior to the Closing
Date, as amended and in effect from time to time, pursuant to which, among
other things, Parent Debt and other obligations incurred pursuant to or
evidenced by the Parent Debt Documents are subordinated to the Obligations.

Interest Payment Date.  (a) As to any Base Rate Loan, the last day of
each calendar month with respect to interest accrued during such calendar
month, including, without limitation, the calendar month which includes the
Drawdown Date of such Base Rate Loan; and (b) as to any Eurodollar Rate Loan in
respect of which the Interest Period is (i) 3 months or less, the last day of
such Interest Period, and (ii) more than 3 months, the date that is 3 months
from the first day of such Interest Period and, in addition, the last day of
such Interest Period.

 15
 

Interest Period.  With respect to each Revolving Credit Loan
(a) initially, the period commencing on the Drawdown Date of such Loan and
ending on the last day of one of the periods set forth below, as selected by
the Borrowers in a Revolving Credit Loan Request (i) for any Base Rate Loan,
the last day of the calendar month; and (ii) for any Eurodollar Rate Loan, 1,
2, 3 or 6 months; and (b) thereafter, each period commencing on the last day of
the next preceding Interest Period applicable to such Revolving Credit Loan and
ending on the last day of one of the periods set forth above, as selected by
the Borrowers in a Conversion Request; provided that all of the
foregoing provisions relating to Interest Periods are subject to the following:

(a)           if
any Interest Period with respect to a Eurodollar Rate Loan would otherwise end
on a day that is not a Eurodollar Business Day, that Interest Period shall be
extended to the next succeeding Eurodollar Business Day unless the result of
such extension would be to carry such Interest Period into another calendar month,
in which event such Interest Period shall end on the immediately preceding
Eurodollar Business Day;

(b)           if
any Interest Period with respect to a Base Rate Loan would end on a day that is
not a Business Day, that Interest Period shall end on the next succeeding
Business Day;

(c)           if
the Borrowers shall fail to give notice as provided in §2.7 as applicable, the
Borrowers shall be deemed to have requested a conversion of the affected
Eurodollar Rate Loan to a Base Rate Loan and the continuance of all Base Rate
Loans as Base Rate Loans on the last day of the then current Interest Period
with respect thereto;

(d)           any
Interest Period relating to any Eurodollar Rate Loan that begins on the last
Eurodollar Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Eurodollar Business Day of a calendar month; and

(e)           any
Interest Period that would otherwise extend beyond the Revolving Credit Loan Maturity
Date.

International Standby Practices.  With respect to any standby Letter of Credit,
International Standby Practices (ISP98), International Chamber of Commerce
Publication No. 590, or any successor code of standby letter of credit
practices among banks adopted by the Agent in the ordinary course of its
business as a standby letter of credit issuer and in effect at the time of
issuance of such Letter of Credit.

Investments.  All expenditures made and all liabilities
incurred (contingently or otherwise) for the acquisition of stock or
Indebtedness of, or for loans, advances, capital contributions or transfers of
property to, or in respect of any guaranties (or other commitments described
under Indebtedness) or obligations of any Person.  In determining the aggregate amount of
Investments outstanding at any particular time: (a) the amount of any
Investment represented by a guaranty shall be taken at not less than the
principal amount of the obligations guaranteed and still outstanding; (b) there
shall be included as an Investment all interest accrued 

 16
 

with respect to Indebtedness constituting an
Investment unless and until such interest is paid; (c) there shall be deducted
in respect of each such Investment any amount received as a return of capital
(but only by repurchase, redemption, retirement, repayment, liquidating
dividend or liquidating distribution); (d) there shall not be deducted in
respect of any Investment any amounts received as earnings on such Investment,
whether as dividends, interest or otherwise, except that accrued interest
included as provided in the foregoing clause (b) may be deducted when paid; and
(e) there shall not be deducted from the aggregate amount of Investments any
decrease in the value thereof.

Joinder Agreement.  See §9.18.

Keystone Grill Concept.  The method of operation used by and the
intellectual property associated with those Stores that as of the Closing Date
operate under any trade name that contains the words “Keystone Grill”.

Las Brisas Concept.  The method of operation used by and the
intellectual property associated with those Stores that as of the Closing Date
operate under any trade name that contains the words “Las Brisas”.

L/C Issuer. means GE Capital or a
Subsidiary thereof or a bank or other legally authorized Person selected by or
acceptable to the Agent in its sole discretion, in such Person’s capacity as an
issuer of Letters of Credit hereunder.

Lenders.  GE Capital and the other lending institutions
listed on Schedule 1 hereto and any other Person who becomes an
assignee of any rights and obligations of a Lender pursuant to §20.

Letter of Credit.  See §5.1.1.

Letter of Credit Application.  See §5.1.1.

Letter of Credit Facility.  The letter of credit facility established
pursuant to this Credit Agreement in an aggregate amount of $25,000,000.

Letter of Credit Fee.  See §5.6.

Letter of Credit Participation.  See §5.1.4.

Leverage Ratio.  As at the end of any fiscal quarter of the
Borrowers, the ratio of (a) Consolidated Funded Indebtedness at such date to
(b) Consolidated EBITDA for the period of the four (4) consecutive fiscal
quarters ending on such date.

Loan Documents.  This Credit Agreement, the Notes, the Letter
of Credit Applications, the Letters of Credit, the Fee Letter and the Security
Documents.

Loans.  The Revolving Credit Loans.

 17
 

Maintenance Capital Expenditures.  Capital Expenditures that are not Growth
Capital Expenditures.

Majority Lenders.  As of any date, any combination of Lenders
the sum of whose aggregate Revolving Credit Commitments constitute at least
sixty-six and two-thirds percent (66 2/3%) of the Total Revolving Credit
Commitment, or, if the Total Revolving Credit Commitment has been terminated or
if the Revolving Credit Loan Maturity Date has occurred, any combination of
Lenders holding at least sixty-six and two-thirds percent (66 2/3%) of the
total outstanding principal amount of the Loans on such date; provided, however,
so long as there are two (2) Lenders or less, Majority Lenders shall be all
Lenders.

Management Agreement.  The Management Services Agreement, dated as
of August 21, 2006, by and between Real Mex and Sun Capital Partners Management
IV, LLC.

Materially Adverse Effect.  A materially adverse effect on the business,
assets or financial condition of the Borrowers and their Subsidiaries taken as
a whole.

Maximum Drawing Amount.  The maximum aggregate amount that the
beneficiaries may at any time draw under outstanding Letters of Credit, as such
aggregate amount may be reduced from time to time pursuant to the terms of the
Letter of Credit; provided, however, that the Maximum Drawing
Amount shall not include the amount of any Letter of Credit to the extent any
such Letter of Credit has been cash collateralized in an amount not less than
105% of the aggregate amount that the beneficiary may at any time draw under
such Letter of Credit.

Measurement Period.  The period of one (1) fiscal quarter ending
March 31, 2007, the period of two (2) fiscal quarters ending June 30, 2007, the
period of three (3) fiscal quarters ending September 30, 2007, and each period
of four (4) consecutive fiscal quarters ending thereafter.

Merger.  The consummation of the merger of RM
Integrated with and into Real Mex pursuant to the Merger Documents.

Merger Documents.  (i) The Agreement and Plan of Merger, dated
August 17, 2006 (the “Merger Agreement”), by and among Real Mex, the
Parent, RM Integrated, Inc., and joined by Bruckman, Rosser, Sherrill &
Co., Inc., as representative for the Sellers solely for the purposes of
Sections 2.10 and 9.1 thereof; (ii) the Certificate of Merger (as defined in
the Merger Agreement); and (iii) all other agreements and documents entered
into in connection with the Merger and the other transactions contemplated
thereby, in each case as amended and in effect from time to time.

Mortgaged Property.  Any Real Estate which is subject to a
Mortgage.

Mortgages.  The several mortgages and deeds of trust,
dated or to be dated on or prior to the Closing Date and listed on Schedule
2, and each of the mortgages and deeds of trust which may be delivered
after the Closing Date in accordance with §9.13, from one of the Borrowers to
the Agent with respect to the interests of the Borrowers in certain parcels of
the Real Estate consisting of fee properties and leases and in form and
substance satisfactory to the Agent.

 18
 

MP. 
As defined in the preamble hereto.

Multiemployer Plan.  Any multiemployer plan within the meaning of
§3(37) of ERISA maintained or contributed to by any Borrower or any ERISA
Affiliate that is subject to Title IV of ERISA.

Net Cash Proceeds.  In connection with any sale or other
disposition of assets, any Sale-Leaseback or any issuance of equity after the
Closing Date, the cash proceeds received from such sale or other disposition or
such issuance, net of all costs of sale, underwriting or brokerage costs, and
taxes paid or payable as a result thereof by the Borrowers or any of their
Subsidiaries.

Note(s).  The Revolving Credit Notes and the Collateral
Notes.

Non-Sale-Leaseback Properties.  The eight (8) fee and leasehold real
properties constituting Real Estate that are listed in part A of Schedule 12.8
attached hereto.

Obligations.  All indebtedness, obligations and liabilities
of any of the Borrowers and their Subsidiaries to any of the Lenders, and the
Agent, individually or collectively, existing or arising on the date of this
Credit Agreement or arising thereafter, direct or indirect, joint or several,
absolute or contingent, matured or unmatured, liquidated or unliquidated,
secured or unsecured, arising by contract, operation of law or otherwise,
arising or incurred under this Credit Agreement or any of the other Loan
Documents or in respect of any of the Loans made or Reimbursement Obligations
incurred or any of the Notes, Letter of Credit Applications, Letters of Credit
or other instruments at any time evidencing any thereof or arising or incurred
under any Rate Protection Agreements entered into by any of the Borrowers or
their Subsidiaries with any of the Lenders.

Original Closing Date.  As defined in the Recitals hereto.

Other Taxes.  Any present or future stamp or documentary
taxes or capital taxes or any other excise or property taxes, charges or
similar duties or levies which arise from any payment made hereunder or from
the execution, delivery or registration of, or otherwise with respect to, this
Credit Agreement or any of the other Loan Documents.

Outstanding.  With respect to the Loans, the aggregate
unpaid principal thereof as of any date of determination.

Parent.  RM Restaurant Holding Corp., a Delaware
corporation.

Parent Debt.  Unsecured Indebtedness of the Parent in an
aggregate principal amount not to exceed $115,000,000 evidenced by the Parent
Debt Documents and any Permitted Subordinated Refinancing (as defined in the
Intercreditor Agreement (Parent Debt)) thereof.

Parent Debt Documents.  The Credit Agreement, dated as of October 5,
2006, among Parent, Credit Suisse and the lenders referred to therein pursuant
to which up to $115,000,000 aggregate principal amount of Parent Debt has been
issued to the Parent and each of the notes and other documents delivered
pursuant thereto, in each case, as amended in accordance with this Credit
Agreement and in effect from time to time.

 19
 

Parent Guaranty.  The Amended and Restated Guaranty, amended
and restated as of January 29, 2007, by the Parent, in form and substance
satisfactory to the Agent.

Patriot Act.  The Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, P.L. 107-56, as amended.

PBGC.  The Pension Benefit Guaranty Corporation
created by §4002 of ERISA and any successor entity or entities having similar
responsibilities.

Perfection Certificate.  The Perfection Certificate dated as of the
Closing Date delivered by each of the Borrowers to the Agent on the Closing
Date.

Permitted Holder Affiliate  With respect to a specified Person, another
Person that directly or indirectly through one or more intermediaries, controls
or is controlled by or is under common control with such Person.  For purposes of this definition, a Person
shall be deemed to “control” or be “controlled by” a Person if such Person
possesses, directly or indirectly, power either (a) to vote 10% or more of the
securities having ordinary voting power for the election of directors of such
Person or (b) to direct or cause the direction of the management and policies
of such Person whether by contract or otherwise.

Permitted Holders.  Collectively, (a) Sun Capital and the other
Sun Capital Affiliates, (b) the Co-Investors, and (c) any Related Parties of
(i) the Sun Capital Affiliates or (ii) the Co-Investors.

Permitted LC Purposes.  See §8.15.1.

Permitted Liens.  Liens, security interests and other
encumbrances permitted by §10.2.

Permitted Parent Debt.  Collectively, (a) the Parent Debt and (b) any
other Indebtedness at any time incurred by Parent in an aggregate principal
amount not to exceed $25,000,000 at any one time outstanding, provided
that, in the case of any Indebtedness referred to in clause (b) of this
definition, (i) 100% of the proceeds of such Indebtedness are contributed by
the Parent in cash to Real Mex as common equity, (ii) such Indebtedness is
unsecured and not guaranteed by any Borrower or any Subsidiary of a Borrower,
(iii) such Indebtedness is not exchangeable or convertible into any
Indebtedness of the Parent or any of its Subsidiaries (other than Indebtedness
permitted under this clause (b)), (iv) such Indebtedness is subordinated to the
Indebtedness incurred by Parent under the Parent Debt Documents on terms satisfactory
to the Majority Lenders, (v) interest on such Indebtedness shall be payable
only in kind, (vi) such Indebtedness does not mature, and is not subject to
mandatory repurchase, redemption or amortization, in each case prior to the
maturity date of the Parent Debt, and (vii) to the extent such Indebtedness
contains covenants and events of default, such covenants and events of default
shall be determined by the Agent to be no more restrictive, when taken as a
whole, than the covenants and events of default in the Parent Debt Documents.

Person.  Any individual, corporation, partnership,
trust, unincorporated association, limited liability company, business, or
other legal entity, and any government or any governmental agency or political
subdivision thereof.

 20
 

Rate Adjustment Period.  As defined in the definition of “Applicable
Margin”.

Rate Protection Agreement.  Any interest rate swap, cap, collar or
similar agreement or arrangement entered into, from time to time, by any of the
Borrowers or their Subsidiaries and any of the Lenders or any of their
respective affiliates to protect such Borrower or such Subsidiary against
fluctuations in interest rates on Indebtedness of such Borrower or such
Subsidiary.

RCRA.  See §8.17(a).

Real Estate.  All real property at any time owned or leased
(as lessee or sublessee) by any of the Borrowers or their Subsidiaries.

Real Estate Documentation.  See §9.13.

Real Estate Leases.  Leases, including ground leases and space
leases, pursuant to which any Borrower leases Real Estate.

Real Mex.  As defined in the preamble hereto.  

Record.  The grid attached to a Note, or the
continuation of such grid, or any other similar record, including computer
records, maintained by any Lender with respect to any Loan referred to in such
Note.

Refinancing.  The refinancing on the Closing Date of
certain of the obligations outstanding under the Existing Credit Agreement with
the proceeds of the amendment and restatement effected pursuant to this Credit
Agreement.

Register.  See §20.3.

Registration Rights Agreement.  The Registration Rights Agreement, dated as
of August 21, 2006, by and among the Parent, Sun Cantinas, and the other
parties thereto.

Reimbursement Obligation.  The Borrowers’ obligation to reimburse the
Agent and the Lenders on account of any drawing under any Letter of Credit as
provided in §5.2.

Related Parties.  With respect to any Permitted Holder, the
Permitted Holder Affiliates of such Permitted Holder and the members, partners,
directors, officers, employees, agents, trustees and advisors of such Permitted
Holder and of the Permitted Holder Affiliates of such Permitted Holder.

Restricted Payments.  In relation to the Borrowers, any (a)
Distribution, (b) payment by any of the Borrowers to Sun Capital or any Sun
Capital Affiliate other than payments to any Sun Capital Affiliate for goods
and services in the ordinary course of business on terms equivalent to those
obtainable in arms length transactions, (c) payment in respect of or purchase
of the Senior Secured Debt, or (d) payment in respect of or purchase of the
Unsecured Term Loan.

 21
 

Revolving Credit Commitment.  With respect to each Lender, the amount set
forth on Schedule 1 hereto as the amount of such Lender’s
commitment to make Revolving Credit Loans and participate in letters of credit
pursuant to the letter of credit commitment to the Borrowers, as the same may
be reduced from time to time in accordance with the provisions hereof; or if
such commitment is terminated pursuant to the provisions hereof, zero.

Revolving Credit Commitment Percentage.  With respect to each Lender, the percentage
set forth on Schedule 1 hereto as such Lender’s percentage of the
aggregate Revolving Credit Commitments of all of the Lenders.

Revolving Credit Loan Facility.  The revolving credit loan facility
established pursuant to this Credit Agreement in the aggregate amount of
$15,000,000 on the Closing Date (with unlimited availability for letters of
credit).

Revolving Credit Loan Maturity Date.  The earliest to occur of (a) January 29,
2009, (b) the payment or defeasance in full of the Senior Secured Debt, (c) the
payment in full in cash of the Unsecured Term Loan or (d) the date upon which
interest on the Permitted Parent Debt is required to be paid in cash pursuant
to the terms thereof.

Revolving Credit Loan Request.  See §2.6.

Revolving Credit Loans.  Revolving credit loans made or to be made by
the Lenders to the Borrowers pursuant to §2.

Revolving Credit Note Record.  A Record with respect to a Revolving Credit
Note.

Revolving Credit Note(s).  See §2.4.

RMF. 
As defined in the preamble hereto.

RM Integrated.  RM Integrated, Inc., a Delaware corporation
and wholly-owned subsidiary of Parent.

Sale-Leaseback.  See §10.6.

Sale-Leaseback Properties.  The five (5) fee and leasehold real
properties constituting Real Estate that are listed in part B of Schedule 12.8
attached hereto.

SARA.  See §8.17(a).

Security Agreement.  The Second Amended and Restated Security
Agreement, amended and restated as of January 29, 2007, among the Borrowers and
the Agent, and in form and substance satisfactory to the Lenders and the Agent.

Security Documents.  The Intercreditor Agreement, the Parent
Guaranty, the Security Agreement, the Mortgages, the Trademark Security
Agreement, the Stock Pledge Agreements, the Assignment and Agency Account
Agreement, the Agency Account Agreements and all other instruments and
documents, including, without limitation, Uniform Commercial Code financing 

 22
 

statements, required to be executed or delivered
pursuant to any Security Document, in each case, as amended, restated,
supplemented or otherwise modified from time to time.

Sellers.  The Former Securities Holders (as defined in
the Merger Agreement).

Senior Secured Debt.  Indebtedness of the Borrowers in an aggregate
principal amount not to exceed $105,000,000 evidenced by senior secured notes
due 2010 issued pursuant to the Senior Secured Debt Documents and that is
expressly subject to the provisions of the Intercreditor Agreement.

Senior Secured Debt 
Documents.  (i)
The Indenture, dated as of the Original Closing Date, among Real Mex and Wells
Fargo Bank Minnesota, National Association, pursuant to which up to
$105,000,000 original principal amount of Senior Secured Debt has been issued
by the Borrowers, as amended (to the extent permitted by §10.13) and in effect
from time to time, and each of the notes, security documents and other
documents delivered pursuant thereto, and (ii) the Intercreditor Agreement.

Stockholders Agreement.  The Stockholders Agreement, dated as of
August 21, 2006, by and among Sun Cantinas, the Parent, and the other
stockholders party thereto.

Stock Pledge Agreements.  (i) The Second Amended and Restated Stock
Pledge Agreement, amended and restated as of January 29, 2007, among certain of
the Borrowers, the Parent and the Agent and (ii) the Amended and Restated
Membership Interest Pledge Agreement, amended and restated as of January 29,
2007, by and between CKR Acquisition Corp. and the Agent.

Store.  A particular restaurant at a particular
location that is owned or operated by a Borrower or a Borrower’s Subsidiary.

Subscription Agreement.  The Subscription Agreement, dated as of
August 16, 2006, by and between Sun Cantinas and the Parent.

Subsidiary.  Any corporation, partnership, association,
trust, limited liability company or other business entity of which the
designated parent shall at any time own directly or indirectly through a
Subsidiary or Subsidiaries at least a majority (by number of votes) of the
outstanding Voting Stock.

Sun Cantinas.  Sun Cantinas, LLC, a Delaware limited
liability company.

Sun Capital.  Sun Capital Partners Group IV, Inc.

Sun Capital Affiliates.  Sun Capital and any of its Control Investment
Affiliates.

Synthetic Leases.  As defined in clause (vi) of the definition
of the term “Indebtedness”.

TARV.  As defined in the preamble hereto.

 23
 

Taxes.  Any and all present or future taxes, levies,
imposts, deductions, duties, charges, fees, compulsory loans, withholdings and
restrictions or conditions of any nature imposed or levied by any jurisdiction
or any political subdivision thereof or taxing or other authority therein, and
all liabilities with respect thereto, excluding, in the case of each Lender and
the Agent, such taxes (including income taxes or franchise taxes) as are
imposed on or measured by each Lender’s or (in case of payments made to the
Agent for its own account) the Agent’s net income by any jurisdiction (whether
federal, state or local and including any political subdivision thereof) under
the laws of which such Lender or the Agent, as the case may be, is organized or
maintains a lending office.

Tender Offer.  The offer to purchase the Notes (as defined
in the Indenture), made by Real Mex on September 19, 2006, upon the terms and
conditions set forth in the Tender Offer Documents.

Tender Offer Documents.  The Notice of Change of Control and Offer to
Purchase for Cash Any and All Outstanding 10% Senior Secured Notes due 2010,
each dated September 19, 2006.

Title Insurance Company.  (i) with respect to the Sale-Leaseback
Properties, First American Title Insurance Company, and (ii) with respect to
the Non-Sale-Leaseback Properties, Commonwealth Land Title Insurance Company,
Lawyers Title Insurance Corporation or Transnation Title Insurance Company.

Title Policy.  In relation to each Mortgaged Property, an
ALTA standard form title insurance policy issued by the Title Insurance Company
(with such reinsurance or co-insurance as the Agent may require, any such
reinsurance to be with direct access endorsements) in such amount as may be
determined by the Agent insuring the priority of the Mortgage of such Mortgaged
Property and that one of the Borrowers or one of their Subsidiaries holds
marketable fee simple or, as the case may be, leasehold title to such Mortgaged
Property, subject only to the encumbrances permitted by such Mortgage and which
shall not contain exceptions for mechanics liens, persons in occupancy or
matters which would be shown by a survey (except as may be permitted by such
Mortgage), shall not insure over any matter except to the extent that any such
affirmative insurance is equal to (a) with respect to each fee property, the
fair market value thereof, (b) with respect to each ground lease, $500,000 and
(c) with respect to each other leasehold property, $250,000, and in all cases shall
contain such endorsements and affirmative insurance as the Agent in its
discretion may reasonably require, including but not limited to (i) variable
rate of interest endorsement, (ii) usury endorsement, (iii) revolving credit
endorsement, (iv) tie-in endorsement, (v) doing business endorsement, (vi) last
dollar endorsement, (vii) first-loss endorsement and (viii) anti-taint
endorsement; provided for any leased property (other than ground lease
property) no endorsement is required which would necessitate a survey.

Total Revolving Credit Commitment.  The sum of the Revolving Credit Commitments
of the Lenders, as in effect from time to time. 
On the Closing Date, the Total Revolving Credit Commitment shall include
the $15,000,000 revolving credit loan commitment (with unlimited availability
for letters of credit) and the $25,000,000 letter of credit commitment.

 24

Trademark Security Agreement.  The Trademark Collateral Security and Pledge
Agreements, among one or more Borrowersand
the Agent, each in form and substance satisfactory to the Lenders and the
Agent.

Transaction Costs.  Fees and expenses incurred by the Parent
and/or Borrowers in connection with the Merger and related financing
transactions.

Type.  As to any Revolving Credit Loan, its nature
as a Base Rate Loan or a Eurodollar Rate Loan.

Uniform Customs.  With respect to any Letter of Credit, the
Uniform Customs and Practice for Documentary Credits (1993 Revision),
International Chamber of Commerce Publication No. 500 or any successor version
thereto adopted by the Agent in the ordinary course of its business as a letter
of credit issuer and in effect at the time of issuance of such Letter of
Credit  or, in the case of a standby Letter of Credit, either
the Uniform Customs or the International
Standby Practices (ISP98), International Chamber of Commerce Publication No.
590, or any successor code of standby letter of credit practices among banks
adopted by the Agent in the ordinary course of its business as a standby letter
of credit issuer and in effect at the time of issuance of such Letter of Credit.

Unpaid Reimbursement Obligation.  Any Reimbursement Obligation for which the
Borrowers have not reimbursed the Agent and the Lenders on the date specified
in, and in accordance with, §5.2.

Unprofitable Store.  At the relevant time of reference thereto,
any Store whose net income (without deduction or adjustment for expenses
related to interest, income taxes, depreciation or amortization or other
non-cash charges, gains or losses on the sale of Capital Assets or corporate
overhead that may be attributable to such Store) on an individual Store basis
is less than $1 for the twelve most recently ended fiscal months, provided
that, solely for the purposes of determining whether any Store is an
Unprofitable Store, it shall be assumed that the net income of each Store shall
be greater than $1 for each of its first six months’ of operation.

Unsecured Term Loan.  The incurrence by Real Mex of a $65,000,000
senior unsecured term loan in accordance with the Unsecured Term Loan
Documents.

Unsecured Term Loan Documents.  (i) The Amended and Restated Credit
Agreement, dated as of October 5, 2006 (the “Unsecured Credit Agreement”),
by and among Real Mex, Parent, the lenders party thereto, Credit Suisse, as
administrative agent, sole book runner and sole lead arranger, (ii) the
Guarantee Agreement (as defined in the Unsecured Credit Agreement, and (iii)
the Term Notes (as defined in the Unsecured Credit Agreement), in each case as
amended (to the extent permitted by §10.15) and in effect from time to time.

Unsecured Term Loan Maturity Date.  October 5, 2010.

Ventura Property.  That certain real property owned by ETRI and
located at 770 Seaward Avenue, Ventura, California 93001.

 25
 

Voting Stock.  Stock or similar interests, of any class or
classes (however designated), the holders of which are at the time entitled, as
such holders, to vote for the election of the directors (or persons performing
similar functions) of the corporation, partnership, association, limited
liability company, trust or other business entity involved, whether or not the
right so to vote exists by reason of the happening of a contingency.

Weekly Cash Flow Projection.  See §9.4(j).

Who Song & Larry’s Concept.  The method of operation used by and the
intellectual property associated with those Stores that as of the Closing Date
operate under any trade name that contains the words “Who Song & Larry’s”.

1.2          Rules
of Interpretation.

(a)           A
reference to any document or agreement shall include such document or agreement
as amended, modified or supplemented from time to time in accordance with its
terms and the terms of this Credit Agreement unless explicitly specified to the
contrary, either in the defined term referring to such document and agreement
or otherwise.

(b)           The
singular includes the plural and the plural includes the singular.

(c)           A
reference to any law includes any amendment or modification to such law.

(d)           A
reference to any Person includes its permitted successors and permitted
assigns.

(e)           Accounting
terms not otherwise defined herein have the meanings assigned to them by
generally accepted accounting principles applied on a consistent basis by the
accounting entity to which they refer.

(f)            The
words “include”, “includes” and “including” are not limiting.

(g)           All
terms not specifically defined herein or by generally accepted accounting
principles, which terms are defined in the Uniform Commercial Code as in effect
in the Commonwealth of Massachusetts, have the meanings assigned to them
therein, with the term “instrument” being that defined under Article 9 of the
Uniform Commercial Code.

(h)           Reference
to a particular “§” refers to that section of this Credit Agreement unless
otherwise indicated.

(i)            The
words “herein”, “hereof”, “hereunder” and words of like import shall refer to
this Credit Agreement as a whole and not to any particular section or
subdivision of this Credit Agreement.

 26
 

(j)            Unless
otherwise expressly indicated, in the computation of periods of time from a
specified date to a later specified date, the word “from” means “from and
including,” the words “to” and “until” each mean “to but excluding,” and the
word “through” means “to and including.”

(k)           This
Credit Agreement and the other Loan Documents may use several different
limitations, tests or measurements to regulate the same or similar
matters.  All such limitations, tests and
measurements are, however, cumulative and are to be performed in accordance
with the terms thereof.

(l)            This
Credit Agreement and the other Loan Documents are the result of negotiation
among, and have been reviewed by counsel to, among others, the Agent and the
Borrowers and are the product of discussions and negotiations among all
parties.  Accordingly, this Credit
Agreement and the other Loan Documents are not intended to be construed against
the Agent or any of the Lenders merely on account of the Agent’s or any Lender’s
involvement in the preparation of such documents.

2.             THE REVOLVING
CREDIT FACILITY.

2.1          Commitment
to Lend.  Subject to the terms and conditions set forth
in this Credit Agreement, each of the Lenders severally agrees to lend to the
Borrowers and the Borrowers may borrow, repay, and reborrow on a joint and
several basis from time to time from the Closing Date up to and including the
Revolving Credit Loan Maturity Date upon notice by the Borrowers to the Agent
given in accordance with §2.6, such sums as are requested by the Borrowers up
to a maximum aggregate amount Outstanding (after giving effect to all amounts
requested) at any one time equal to such Lender’s Revolving Credit Commitment,
minus such Lender’s Revolving Credit Commitment Percentage of the sum of the
Maximum Drawing Amount and all Unpaid Reimbursement Obligations provided that
(a) the Outstanding amount of the Revolving Credit Loans (after giving effect
to all amounts requested), plus the Maximum Drawing Amount, plus all Unpaid
Reimbursement Obligations shall not at any time exceed the Total Revolving
Credit Commitment, and (b) the Outstanding amount of Revolving Credit Loans
(after giving effect to all amounts requested) shall not at any time exceed
$15,000,000.  The Revolving Credit Loans
shall be made pro rata in accordance with each Lender’s Revolving Credit
Commitment Percentage.  Each request for
a Revolving Credit Loan hereunder shall constitute a representation and
warranty by the Borrowers that the conditions set forth in §12 and §13, in the
case of the initial Revolving Credit Loans to be made on the Closing Date, and
§13, in the case of all other Revolving Credit Loans, have been satisfied on
the date of such request.

2.2          Commitment
Fee.  The Borrowers jointly and severally agree to
pay to the Agent for the accounts of the Lenders in accordance with their
respective Revolving Credit Commitment Percentages a commitment fee in an
amount equal to one-half of one percent (0.50%) per annum on the average daily
amount during each calendar quarter or portion thereof fromthe Closing Date to
the Revolving Credit Loan Maturity Date by which the Total Revolving Credit
Commitment exceeds the sum of (a) the Outstanding amount of Revolving Credit
Loans plus (b) the Maximum Drawing Amount, plus (c) all Unpaid
Reimbursement Obligations during such calendar quarter.  The commitment fee shall be payable quarterly
in arrears on the last day of each calendar quarter for the calendar quarter
then ending, commencing on the first such date 

 27
 

after the Closing
Date, with a final payment on the Revolving Credit Loan Maturity Date or any
earlier date on which the Revolving Credit Commitments shall terminate.

2.3          Reduction
of Total Revolving Credit Commitment.  Subject to §6.9, the Borrowers shall have the
right at any time and from time to time upon three (3) Business Days prior
written notice (confirmed telephonically on the date of delivery of such
written notice) or telephonic notice 
(confirmed in writing on the date of such telephonic notice) to the
Agent to reduce by $1,000,000 or an integral multiple of $500,000 in excess
thereof, or terminate entirely, the Total Revolving Credit Commitment,
whereupon the Revolving Credit Commitments of the Lenders shall be reduced pro
rata in accordance with their respective Revolving Credit Commitment
Percentages of the amount specified in such notice or, as the case may be,
terminated.  Promptly after receiving any
notice of the Borrowers delivered pursuant to this §2.3, the Agent will notify
the Lenders of the substance thereof. 
Upon the effective date of any such reduction or termination, the
Borrowers shall pay to the Agent for the respective accounts of the Lenders, in
accordance with their Revolving Credit Commitment Percentages, the full amount
of any commitment fee then accrued on the amount of the reduction.  No reduction or termination of the Revolving
Credit Commitments may be reinstated.

2.4          The
Revolving Credit Notes.  The Revolving Credit Loans shall be evidenced
by separate joint and several promissory notes of the Borrowers in
substantially the form of Exhibit A hereto (each a “Revolving Credit Note”),
dated as of the Closing Date and completed with appropriate insertions.  One Revolving Credit Note shall be payable to
the order of each Lender in a principal amount equal to such Lender’s Revolving
Credit Commitment or, if less, the Outstanding amount of all Revolving Credit
Loans made by such Lender, plus interest accrued thereon, as set forth
below.  Each of the Borrowers irrevocably
authorizes each Lender to make or cause to be made, at or about the time of the
Drawdown Date of any Revolving Credit Loan or at the time of receipt of any
payment of principal on such Lender’s Revolving Credit Note, an appropriate
notation on such Lender’s Revolving Credit Note Record reflecting the making of
such Revolving Credit Loan or (as the case may be) the receipt of such
payment.  The Outstanding amount of the
Revolving Credit Loans set forth on such Lender’s Revolving Credit Note Record
shall be prima facie evidence of the principal amount thereof owing and unpaid
to such Lender, but the failure to record, or any error in so recording, any
such amount on such Lender’s Revolving Credit Note Record shall not limit or
otherwise affect the obligations of the Borrowers hereunder or under any
Revolving Credit Note to make payments of principal of or interest on any
Revolving Credit Note when due.

2.5          Interest
on Revolving Credit Loans.  Except as otherwise provided in §6.10,

(a)           Each
Revolving Credit Loan that is a Base Rate Loan shall bear interest for the
period commencing with the Drawdown Date thereof and ending on the last day of
the Interest Period with respect thereto at an annual rate equal to the sum of
(i) the Base Rate plus (ii) the Applicable Margin with respect to
Revolving Credit Loans which are Base Rate Loans, as in effect from time to
time while such Base Rate Loan is Outstanding.

(b)           Each
Revolving Credit Loan that is a Eurodollar Rate Loan shall bear interest for
the period commencing with the Drawdown Date thereof and ending on the 

 28
 

last day of the Interest Period with respect thereto at an annual rate
equal to the sum of (i) the Eurodollar Rate plus (ii) the Applicable
Margin with respect to Revolving Credit Loans which are Eurodollar Rate Loans,
as in effect from time to time while such Eurodollar Rate Loan is Outstanding.

(c)           The
Borrowers jointly and severally promise to pay interest on each Revolving
Credit Loan in arrears on each Interest Payment Date with respect thereto.

2.6          Requests
for Revolving Credit Loans.  The Borrowers shall give to the Agent
telephonic and written notice (such written notice to be in the form of
Exhibit B hereto) of each Revolving Credit Loan requested hereunder (a “Revolving
Credit Loan Request”) (a) prior to noon (Chicago time) on the proposed Drawdown
Date of any Base Rate Loan equal to or less than $5,000,000, (b) prior to noon
(Chicago time) on the date which is one (1) Business Day prior to the proposed
Drawdown Date of any Base Rate Loan in excess of $5,000,000 and (c) prior to noon
(Chicago time) on the third Eurodollar Business Day prior to the proposed
Drawdown Date of any Eurodollar Rate Loan. 
Each such written notice shall specify (w) the principal amount of the
Revolving Credit Loan requested, (x) the proposed Drawdown Date of such
Revolving Credit Loan, (y) if a Eurodollar Rate Loan, the Interest Period for
such Revolving Credit Loan and (z) the Type of such Revolving Credit Loan.  Upon receipt of any such notices, the Agent
shall promptly notify each of the Lenders thereof.  Each Revolving Credit Loan Request shall be
irrevocable and binding on the Borrowers and shall obligate the Borrowers to
accept the Revolving Credit Loan requested from the Lenders on the proposed
Drawdown Date.  Each Revolving Credit
Loan Request shall be in a minimum aggregate amount of $100,000 or an integral
multiple of $100,000 in excess thereof. 
Unless the Agent is otherwise directed in writing by the Borrowers, the
proceeds of each requested borrowing after the Closing Date will be made
available to the Borrowers by the Agent by wire transfer of such amount to the
Borrowers pursuant to the wire transfer instructions specified on the signature
page hereto in relation to the Borrowers.

2.7          Conversion
Options.

2.7.1       Conversion
to Different Type of Revolving Credit Loan.  The Borrowers may elect from time to time to
convert any Outstanding Revolving Credit Loan to a Revolving Credit Loan of
another Type, provided that (a) with respect to any such conversion of a
Eurodollar Rate Loan to a Base Rate Loan, the Borrowers shall give the Agent at
least one (1) Business Day prior written notice (confirmed telephonically on
the date of delivery of such written notice) or telephonic notice (confirmed in
writing on the date of such telephonic notice) of such election; (b) with
respect to any such conversion of a Base Rate Loan to a Eurodollar Rate Loan,
the Borrowers shall give the Agent written notice (confirmed telephonically on
the date of delivery of such written notice) or telephonic notice (confirmed in
writing on the date of such telephonic notice) of such election by noon
(Chicago time) on the 3rd Eurodollar Business Day prior to the date on which
the Borrowers wish to convert any Base Rate Loan to a Eurodollar Rate Loan for
an Interest Period designated by the Borrowers in such election; (c) with
respect to any such conversion of a Eurodollar Rate Loan into a Base Rate Loan,
such conversion shall only be made on the last day of the Interest Period with
respect thereto and (d) no Loan may be converted into a Eurodollar Rate Loan
when any Default or Event of 

 29
 

Default has occurred and is continuing. 
On the date on which such conversion is being made each Lender shall
take such action as is necessary to transfer its Revolving Credit Commitment
Percentage of such Revolving Credit Loans to its Domestic Lending Office or its
Eurodollar Lending Office, as the case may be. 
All or any part of Outstanding Revolving Credit Loans of any Type may be
converted into a Revolving Credit Loan of another Type as provided herein, provided
that any partial conversion shall be in an aggregate principal amount of
$500,000 or a whole multiple of $100,000 in excess thereof.  Each Conversion Request relating to the
conversion of a Revolving Credit Loan to a Eurodollar Rate Loan shall be
irrevocable by the Borrowers.

2.7.2       Continuation
of Type of Revolving Credit Loan.  Any Revolving Credit Loan of any Type may be
continued as a Revolving Credit Loan of the same Type upon the expiration of an
Interest Period with respect thereto by compliance by the Borrowers with the
notice provisions contained in §2.7.1; provided that no Eurodollar Rate
Loan may be continued as such when any Default or Event of Default has occurred
and is continuing, but shall be automatically converted to a Base Rate Loan on
the last day of the first Interest Period relating thereto ending during the
continuance of any Default or Event of Default of which officers of the Agent
active upon the Borrowers’ account have actual knowledge.  In the event that the Borrowers fail to
provide any such notice with respect to the continuation of any Eurodollar Rate
Loan as such, then such Eurodollar Rate Loan shall be automatically converted
to a Base Rate Loan on the last day of the Interest Period relating thereto.  The Agent shall notify the Lenders promptly
when any such automatic conversion contemplated by this §2.7.2 is scheduled to
occur.

2.7.3       Eurodollar
Rate Loans.  Any
conversion to or from Revolving Credit Loans that are Eurodollar Rate Loans
shall be in such amounts and be made pursuant to such elections so that, after
giving effect thereto, the aggregate principal amount of all Revolving Credit
Loans that are Eurodollar Rate Loans having the same Interest Period shall not
be less than $500,000 or a whole multiple of $100,000 in excess thereof.  At no time shall there be more than three (3)
Revolving Credit Loans that are Eurodollar Rate Loans having different Interest
Periods.

2.8          Funds
for Revolving Credit Loans.

2.8.1       Funding
Procedures.  Not later
than 1:00 p.m. (Chicago time) on the proposed Drawdown Date of any Revolving
Credit Loans, each of the Lenders will make available to the Agent, at the
Agent’s Office, in immediately available funds, the amount of such Lender’s
Revolving Credit Commitment Percentage of the amount of the requested Revolving
Credit Loans.  Upon receipt from each
Lender of such amount, and upon receipt of the documents required by §§12 and
13 and the satisfaction of the other conditions set forth therein, to the
extent applicable, the Agent will make available to the Borrowers the aggregate
amount of such Revolving Credit Loans made available to the Agent by the
Lenders.  The failure or refusal of any
Lender to make available to the Agent at the aforesaid time and place on any
Drawdown Date the amount of its Revolving Credit Commitment Percentage of the
requested Revolving Credit Loans shall not relieve any other Lender from its
several obligation hereunder to make available to

 30
 

the Agent the amount of such other Lender’s Revolving Credit Commitment
Percentage of any requested Revolving Credit Loans.

2.8.2       Advances
by Agent.  The Agent may,
unless notified to the contrary by any Lender prior to a Drawdown Date, assume
that such Lender has made available to the Agent on such Drawdown Date the
amount of such Lender’s Revolving Credit Commitment Percentage of the Revolving
Credit Loans to be made on such Drawdown Date, and the Agent may (but it shall
not be required to), in reliance upon such assumption, make available to the
Borrowers a corresponding amount.  If any
Lender makes available to the Agent such amount on a date after such Drawdown
Date, such Lender shall pay to the Agent on demand an amount equal to the
product of (a) the average computed for the period referred to in clause (c)
below, of the weighted average interest rate paid by the Agent for federal
funds acquired by the Agent during each day included in such period, times
(b) the amount of such Lender’s Revolving Credit Commitment Percentage of such
Revolving Credit Loans, times (c) a fraction, the numerator of which is
the number of days that elapse from and including such Drawdown Date to the
date on which the amount of such Lender’s Revolving Credit Commitment
Percentage of such Revolving Credit Loans shall become immediately available to
the Agent, and the denominator of which is 360. 
A statement of the Agent submitted to such Lender with respect to any
amounts owing under this paragraph shall be prima facie evidence
of the amount due and owing to the Agent by such Lender.  If the amount of such Lender’s Revolving
Credit Commitment Percentage of such Revolving Credit Loans is not made
available to the Agent by such Lender within three (3) Business Days following
such Drawdown Date, the Agent shall be entitled to recover such amount from the
Borrowers on demand, with interest thereon at the rate per annum applicable to
the Revolving Credit Loans made on such Drawdown Date.

 31
 

3.             REPAYMENT OF THE
REVOLVING CREDIT LOANS.

3.1          Maturity. 
The Borrowers jointly and severally promise to pay on the Revolving
Credit Loan Maturity Date, or at such earlier time as the Revolving Credit
Loans become due and payable as set forth herein, and there shall become
absolutely due and payable on the Revolving Credit Loan Maturity Date, or at
such earlier time as the Revolving Credit Loans become due and payable as set
forth herein, all of the Revolving Credit Loans Outstanding on such date,
together with any and all accrued and unpaid interest thereon.

3.2          Mandatory
Repayments of Revolving Credit Loans.  If at any time the sum of the Outstanding
amount of the Revolving Credit Loans, plus the Maximum Drawing Amount, plus all
Unpaid Reimbursement Obligations exceeds the Total Revolving Credit Commitment,
then the Borrowers shall immediately pay the amount of such excess to the Agent
for the respective accounts of the Lenders for application to the Revolving
Credit Loans.  Each prepayment of
Revolving Credit Loans shall be allocated among the Lenders, in proportion, as
nearly as practicable, to the respective unpaid principal amount of each Lender’s
Revolving Credit Note, with adjustments to the extent practicable to equalize
any prior payments or repayments not exactly in proportion.  Each prepayment pursuant to this §3.2 shall
be made in accordance with the provisions of §6.9.

3.3          Optional
Repayments of Revolving Credit Loans.  The Borrowers shall have the right, at their
election, to repay the Outstanding amount of the Revolving Credit Loans, as a
whole or in part, at any time without penalty or premium, provided that any full or partial prepayment of the outstanding
amount of any Eurodollar Rate Loans pursuant to this §3.3 that is not made on
the last day of the Interest Period relating thereto shall be accompanied by
any amounts due under §6.9 hereunder. 
The Borrowers shall give the Agent, no later than noon (Chicago time),
on the date of any proposed prepayment prior written notice (confirmed
telephonically on the date of delivery of such written notice, but in any case
such confirmation to occur no later than noon (Chicago time) time, on the date
of any such proposed prepayment) or telephonic notice (confirmed in writing on
the date of such telephonic notice) of any proposed prepayment pursuant to this
§3.3 of Base Rate Loans, and no later than noon (Chicago time), two (2)
Eurodollar Business Days prior to the date of any proposed repayment, prior
written notice (confirmed telephonically on the date of delivery of such
written notice) or telephonic notice (confirmed in writing on the date of such
telephonic notice) of any proposed prepayment pursuant to this §3.3 of
Eurodollar Rate Loans, in each case specifying the proposed date of prepayment
of Revolving Credit Loans and the principal amount to be prepaid.  Each such partial prepayment of the Revolving
Credit Loans shall be in a minimum amount of $100,000 or an integral multiple
thereof, shall be accompanied by the payment of accrued interest on the
principal prepaid to the date of prepayment and shall be applied, in the
absence of instruction by the Borrowers, first to the principal of Base Rate
Loans and then to the principal of Eurodollar Rate Loans.  Each partial prepayment shall be allocated
among the Lenders, in proportion, as nearly as practicable, to the respective
unpaid principal amount of each Lender’s Revolving Credit Note, with
adjustments to the extent practicable to equalize any prior repayments not
exactly in proportion.

4.             [INTENTIONALLY
OMITTED]

 32
 

5.             LETTERS OF CREDIT.

5.1          Letter
of Credit Commitment.

5.1.1       Commitment
to Issue Letters of Credit. 
Subject to the terms and conditions hereof and the execution and
delivery by the Borrowers of a letter of credit application on the applicable
L/C Issuer’s customary form (a “Letter of Credit Application”), each L/C
Issuer on behalf of the Lenders and in reliance upon the agreement of the
Lenders set forth in §5.1.4 and upon the representations and warranties of the
Borrowers contained herein, agrees, in its individual capacity, to issue,
extend and renew for the account of the Borrowers, in accordance with such L/C
Issuer’s usual and customary business practices, one or more standby or
documentary letters of credit (denominated in Dollars) (individually, a “Letter
of Credit”), in such form as may be requested from time to time by the
Borrowers and agreed to by such L/C Issuer; provided, however,
that, after giving effect to such request, (a) the sum of the aggregate Maximum
Drawing Amount and all Unpaid Reimbursement Obligations shall not exceed
$40,000,000 at any one time and (b) the sum of the aggregate Maximum Drawing
Amount and all Unpaid Reimbursement Obligations plus the Outstanding
amount of the Revolving Credit Loans shall not, at any time, exceed the Total
Revolving Credit Commitment. 
Notwithstanding the foregoing, no L/C Issuer shall have any obligation
to issue any Letter of Credit:

(a)           to
support or secure any Indebtedness of any of the Borrowers or their
Subsidiaries to the extent that such Indebtedness was incurred prior to the
proposed issuance date of such Letter of Credit, unless in any such case the
Borrowers demonstrate to the satisfaction of such L/C Issuer and the Agent that
(x) such prior incurred Indebtedness was then fully secured by a prior
perfected and unavoidable security interest in collateral provided by the
Borrowers or such Subsidiary to the proposed beneficiary of such Letter of
Credit or (y) such prior incurred Indebtedness were then secured or supported
by a letter of credit issued for the account of such Borrower or such
Subsidiary and the reimbursement obligation with respect to such letter of
credit was fully secured by a prior perfected and unavoidable security interest
in collateral provided to the issuer of such letter of credit by such Borrower
or such Subsidiary; and

(b)           upon
the occurrence of any of the following: (i) any fee due in connection with, and
on or prior to, such issuance has not been paid, (ii) such Letter of Credit is
requested to be issued in a form that is not acceptable to such L/C Issuer or
(iii) such L/C Issuer shall not have received, each in form and substance
reasonably acceptable to it and duly executed by the Borrowers the documents
that such L/C Issuer generally uses in the ordinary course of its business for
the issuance of letters of credit of the type of such Letter of Credit
(collectively, the “L/C Reimbursement Agreement”).

For each issuance, extension of the expiration date
of, or renewal of a Letter of Credit, the applicable L/C Issuer may, but shall
not be required to, determine that, or take notice whether, the conditions
precedent set forth in §13 have been satisfied or waived in connection with the
issuance, extension or renewal of any Letter of Credit; provided, however,
that no Letter of Credit shall be issued, extended or renewed during the period
starting on the first Business 

 33
 

Day after the receipt by such L/C Issuer of notice
from the Agent or the Majority Lenders that any condition precedent contained
in §13 is not satisfied and ending on the date all such conditions are
satisfied or duly waived.

For the avoidance of doubt, the Backstop Letter of
Credit is a Letter of Credit issued pursuant to the terms of this Credit
Agreement, including, without limitation, Section 5 hereof.

5.1.2       Letter of
Credit Applications.  Each
Letter of Credit Application shall be completed to the satisfaction of the
applicable L/C Issuer.  In the event that
any provision of any Letter of Credit Application shall be inconsistent with
any provision of this Credit Agreement, then the provisions of this Credit
Agreement shall, to the extent of any such inconsistency, govern.

5.1.3       Terms of
Letters of Credit.  Each
Letter of Credit issued, extended or renewed hereunder shall, among other
things, (a) provide for the payment of sight drafts for honor thereunder when
presented in accordance with the terms thereof and when accompanied by the
documents described therein, and (b) have an expiry date no later than (i) the
first anniversary of the issue date thereof (although Letters of Credit may
provide for automatic renewals upon the expiration thereof for additional periods
not exceeding one year as long as (x) the Borrowers and such L/C Issuer each
have the option to prevent such renewal before the expiration of such term or
any such period and (y) neither the L/C Issuer nor the Borrowers shall permit
any such renewal to extend such expiration date beyond the date set forth in
the immediately succeeding clause (ii)) hereof and (ii) the date which is
fourteen (14) days (or, if the Letter of Credit is confirmed by a confirmer or
otherwise provides for one or more nominated persons, thirty (30) days) prior
to the Revolving Credit Loan Maturity Date. 
Each Letter of Credit so issued, extended or renewed shall be subject to
the Uniform Customs.

5.1.4       Reimbursement
Obligations of Lenders. 
Each Lender severally agrees that it shall be absolutely liable, without
regard to the occurrence of any Default or Event of Default or any other
condition precedent whatsoever, to the extent of such Lender’s Revolving Credit
Commitment Percentage, to reimburse each L/C Issuer on demand for the amount of
each draft paid by such L/C Issuer under each Letter of Credit to the extent
that such amount is not reimbursed by the Borrowers pursuant to §5.2 (such
agreement for a Lender being called herein the “Letter of Credit
Participation” of such Lender).

5.1.5       Participations
of Lenders.  Each such
payment made by a Lender shall be treated as the purchase by such Lender of a
participating interest in the Borrowers’ Reimbursement Obligation under §5.2 in
an amount equal to such payment.  Each
Lender shall share in accordance with its participating interest in any
interest which accrues pursuant to §5.2.

5.1.6       Cash Collateral Demand.  At any time during the term of this Credit
Agreement, the Agent or any L/C Issuer may require that the Borrowers deliver
to the Agent on demand, and the Borrowers hereby agree to deliver to the Agent
at any such time, cash collateral to secure the Maximum Drawing Amount or
Unpaid Reimbursement Obligation with respect to any Letter of Credit in an
amount not less than 105% of the 

 34
 

amount of the Maximum Drawing Amount and Unpaid Reimbursement
Obligations under any Letter of Credit outstanding at such time.

5.1.7       Reporting Obligations of
L/C Issuers.  Each L/C Issuer
agrees to provide the Agent (which, after receipt, the Agent shall provide to
each Lender), in form and substance satisfactory to the Agent, each of the
following on the following dates: (A) (i) on or prior to any issuance,
extension and renewal, as the case may be, of any Letter of Credit by such L/C
Issuer, (ii) immediately after any drawing under any such Letter of Credit or
(iii) immediately after any payment (or failure to pay when due) by the
Borrowers of any related reimbursement obligation as provided in §5.2), notice
thereof, which shall contain a reasonably detailed description of such
issuance, extension and renewal, as the case may be, drawing or payment; (B)
upon the request of the Agent (or any Lender through the Agent), copies of any
Letter of Credit issued, extended or renewed by such L/C Issuer and any related
L/C Reimbursement Agreement and such other documents and information as may
reasonably be requested by the Agent; and (C) on the first Business Day of each
calendar week, a schedule of the Letters of Credit issued, extended and
renewed, as the case may be, by such L/C Issuer, in form and substance
reasonably satisfactory to the Agent, setting forth the Maximum Drawing Amount
for such Letters of Credit outstanding on the last Business Day of the previous
calendar week.

5.2          Reimbursement
Obligation of the Borrowers.  In order to induce each L/C Issuer to issue,
extend and renew each Letter of Credit and the Lenders to participate therein,
the Borrowers hereby jointly and severally agree to reimburse or pay to the
Agent, for the account of such L/C Issuer or (as the case may be) the Lenders,
with respect to each Letter of Credit issued, extended or renewed by such L/C
Issuer hereunder,

(a)           on
the day following each date that any draft presented under such Letter of
Credit is honored by such  L/C Issuer, or
such L/C Issuer otherwise makes a payment with respect thereto, (i) the amount
paid by such L/C Issuer under or with respect to such Letter of Credit, and
(ii) the amount of any taxes, fees, charges or other costs and expenses
whatsoever incurred by such L/C Issuer or any Lender in connection with any
payment made by such L/C Issuer or any Lender under, or with respect to, such
Letter of Credit,

(b)           upon
the reduction (but not termination) of the Total Revolving Credit Commitment to
an amount less than the Maximum Drawing Amount, an amount equal to such
difference, which amount shall be held by the Agent for the benefit of the
Lenders and the L/C Issuers as cash collateral for all Reimbursement
Obligations, and

(c)           upon
the termination of the Total Revolving Credit Commitment, or the acceleration
of the Reimbursement Obligations with respect to all Letters of Credit in
accordance with §14, an amount equal to the then Maximum Drawing Amount on all
Letters of Credit, which amount shall be held by the Agent for the benefit of
the Lenders and the L/C Issuers as cash collateral for all Reimbursement
Obligations.

 35
 

Each such payment shall be made to the Agent at the
Agent’s Office in immediately available funds. 
Interest on any and all amounts remaining unpaid by the Borrowers under
this §5.2 at any time from the date such amounts become due and payable
(whether as stated in this §5.2, by acceleration or otherwise) until payment in
full (whether before or after judgment) shall be payable to the Agent on demand
at the rate specified in §6.10 for overdue principal on the Revolving Credit
Loans.

5.3          Letter
of Credit Payments.  If any draft shall be presented or other
demand for payment shall be made under any Letter of Credit, the applicable L/C
Issuer shall notify the Borrowers of the date and amount of the draft presented
or demand for payment and of the date and time when it expects to pay such
draft or honor such demand for payment. 
If the Borrowers fail to reimburse the Agent, for the account of such
L/C Issuer or (as the case may be) the Lenders, as provided in §5.2 on or
before the date that such draft is paid or other payment is made by such L/C
Issuer, the Agent may at any time thereafter notify the Lenders of the amount
of any such Unpaid Reimbursement Obligation. 
No later than 2:00 p.m. (Chicago time) on the Business Day next
following the receipt of such notice, each Lender shall make available to the
Agent, at the Agent’s Office, in immediately available funds, such Lender’s
Revolving Credit Commitment Percentage of such Unpaid Reimbursement Obligation,
together with an amount equal to the product of (i) the average, computed for
the period referred to in clause (iii) below, of the weighted average interest
rate paid by the Agent for federal funds acquired by the Agent during each day
included in such period, times (ii) the amount equal to such Lender’s Revolving
Credit Commitment Percentage of such Unpaid Reimbursement Obligation, times
(iii) a fraction, the numerator of which is the number of days that elapse from
and including the date such L/C Issuer paid the draft presented for honor or
otherwise made payment to the date on which such Lender’s Revolving Credit
Commitment Percentage of such Unpaid Reimbursement obligation shall become
immediately available to the Agent, and the denominator of which is 360.  The responsibility of any L/C Issuer to the
Borrowers and the Lenders shall be only to determine that the documents
(including each draft) delivered under each Letter of Credit in connection with
such presentment shall be in conformity in all material respects with such
Letter of Credit.

5.4          Obligations
Absolute.  (a)     The
Borrowers’ obligations under this §5 shall be absolute and unconditional under
any and all circumstances and irrespective of the occurrence of any Default or
Event of Default or any condition precedent whatsoever or any setoff,
counterclaim or defense to payment which any of the Borrowers may have or have
had against the Agent, any L/C Issuer any Lender or any beneficiary of a Letter
of Credit, other than claims arising due to the gross negligence or willful
misconduct of the Agent, any L/C Issuer or any Lender.  Each of the Borrowers further agrees with the
Agent, the L/C Issuers and the Lenders that neither the Agent, any L/C Issuer nor any Lender
shall be responsible for, and the Borrowers’ Reimbursement Obligations under
§5.2 shall not be affected by, among other things, the validity or genuineness
of documents or of any endorsements thereon, even if such documents should in
fact prove to be in any or all respects invalid, fraudulent or forged, or any
dispute between or among the Borrowers, the beneficiary of any Letter of Credit
or any financing institution or other party to which any Letter of Credit may
be transferred or any claims or defenses whatsoever of any of the Borrowers
against the beneficiary of any Letter of Credit or any such transferee.  The Agent, the L/C Issuers and the Lenders
shall not be liable for any error, omission, interruption or delay in
transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit.  Each of the Borrowers agrees that 

 36
 

any
action taken or omitted by the Agent, any L/C Issuer or any Lender under or in
connection with each Letter of Credit and the related drafts and documents, if
done in good faith, shall be binding upon the Borrowers and shall not result in
any liability on the part of the Agent, any L/C Issuer or any Lender to the
Borrowers.

(b)           The
obligations of the Lenders under §5.1.4 and §5.1.5 above shall be absolute,
unconditional and irrevocable and performed strictly in accordance with the
terms of this Agreement irrespective of (A) (i) the invalidity or
unenforceability of any term or provision in any Letter of Credit, any document
transferring or purporting to transfer a Letter of Credit, any Loan Document
(including the sufficiency of any such instrument), or any modification to any
provision of any of the foregoing, (ii) any document presented under a Letter
of Credit being forged, fraudulent, invalid, insufficient or inaccurate in any
respect or failing to comply with the terms of such Letter of Credit or (iii)
any loss or delay, including in the transmission of any document, (B) the
existence of any setoff, claim, abatement, recoupment, defense or other right
that any Person (including any Borrower) may have against the beneficiary of
any Letter of Credit or any other Person, whether in connection with any Loan
Document or any other contractual obligation or transaction, or the existence
of any other withholding, abatement or reduction, (C) (i) the failure of
any condition precedent set forth in §13 to be satisfied (each of which
conditions precedent the Lenders hereby irrevocably waive) or (ii) any adverse
change in the condition (financial or otherwise) of any Borrower and (D) any
other act or omission to act or delay of any kind of Agent or any other Person
or any other event or circumstance whatsoever, whether or not similar to any of
the foregoing, that might, but for the provisions of this clause (b),
constitute a legal or equitable discharge of any obligation of any Lender
hereunder.

5.5          Reliance
by Issuer.  To the extent not inconsistent with §5.4,
each L/C Issuer shall be entitled to rely, and shall be fully protected in
relying upon, any Letter of Credit, draft, writing, resolution, notice,
consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex
or teletype message, statement, order or other document believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person
or Persons and upon advice and statements of legal counsel, independent
accountants and other experts selected by such L/C Issuer.  The Agent shall be fully justified in failing
or refusing to take any action under this Credit Agreement unless it shall
first have received such advice or concurrence of the Majority Lenders as it
reasonably deems appropriate or it shall first be indemnified to its reasonable
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such
action.  The Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Credit Agreement
in accordance with a request of the Majority Lenders, and such request and any
action taken or failure to act pursuant thereto shall be binding upon the
Lenders and all future holders of the Revolving Credit Notes or of a Letter of
Credit Participation.

5.6          Letter
of Credit Fee.  The Borrower agrees to pay to Agent for the
ratable benefit of the Lenders, as compensation to such Lenders for obligations
incurred by Lenders at the request of the Borrowers, whether direct or
indirect, contingent or otherwise, due or not due, in connection with the
issuance of Letters of Credit by L/C Issuers hereunder or in connection with
the reimbursement obligations and the purchase of a participation as set forth
in §5.1.4 and §5.1.5 above with respect to Letters of Credit issued hereunder
(collectively, “Letter of Credit Obligations”), (i) without duplication
of costs and expenses otherwise payable to Agent or 

 37
 

Lenders hereunder
or fees otherwise paid by the Borrowers, all reasonable costs and expenses
incurred by Agent or any Lender on account of such obligations with respect to
any Letter of Credit issued hereunder, and (ii) for each month during which any
Letter of Credit Obligation shall remain outstanding, a fee (the “Letter of
Credit Fee”) in an amount equal to the product of the average daily undrawn
face amount of all Letters of Credit issued, guaranteed or supported by risk
participation agreements multiplied by a per annum rate equal to the Applicable
Margin with respect to Loans which are Eurodollar Rate Loans; provided, however,
at Agent’s or Majority Lenders’ option, while an Event of Default exists (or
automatically while an Event of Default specified in §§14.1(g), 14.1(h) or
14.1(j) exists), such rate shall be increased by two percent (2.00%) per
annum.  Such fee shall be paid to Agent
for the benefit of the Lenders in arrears, on the first day of each calendar
month and on the Revolving Credit Loan Maturity Date.  In addition, the Borrower shall pay to each
L/C Issuer, on demand, such reasonable fees, without duplication of fees
otherwise payable hereunder (including all per annum fees), charges and
expenses of such L/C Issuer in respect of the issuance, negotiation,
acceptance, amendment, transfer and payment of such Letter of Credit or
otherwise payable pursuant to the application and related documentation under
which such Letter of Credit is issued.

6.             CERTAIN GENERAL
PROVISIONS.

6.1          Fees. 
The Borrowers jointly and severally agree to pay the Agent all fees
described in the Fee Letter in accordance with the term thereof.

6.2          Funds
for Payments.

6.2.1       Payments
to Agent.  All payments of
principal, interest, Reimbursement Obligations, commitment fees, Letter of
Credit Fees and any other amounts due hereunder or under any of the other Loan
Documents shall be made to the Agent (for the ratable account of the Persons
entitled thereto), at the Agent’s Office at the address for payment specified
in the signature page hereof in relation to the Agent or at such other location
that the Agent may from time to time designate, in each case at or about 12:00
p.m. (Chicago time) in immediately available funds.

6.2.2       No Offset, etc.

(a)           Any and all payments by the Borrowers
hereunder and under any of the other Loan Documents shall be made without
setoff or counterclaim and free and clear of and without deduction or
withholding for any Taxes.  In addition,
each Borrower shall pay all Other Taxes.

(b)           Subject to §6.2.2(f), the Borrowers agree,
jointly and severally, to indemnify and hold harmless each Lender and the Agent
for the full amount of Taxes or Other Taxes (including any Taxes or Other Taxes
imposed by any jurisdiction on amounts payable under this §6.2.2) paid by such
Lender or the Agent and any liability (including penalties, interest, additions
to tax and expenses) arising therefrom or with respect thereto, whether or not
such Taxes or Other Taxes were correctly or legally asserted.  Payment under this 

 38
 

indemnification shall be made within thirty (30) days after the date
any Lender (through the Agent) or the Agent makes written demand therefor.

(c)           If any Borrower shall be required by law to
deduct or withhold any Taxes or Other Taxes from or in respect of any sum
payable hereunder to any Lender or the Agent, then, subject to §6.2.2(f):

(i)            the sum payable shall be increased as
necessary so that after making all required deductions and withholdings
(including deductions and withholdings applicable to additional sums payable
under this §6.2.2) such Lender or the Agent, as the case may be, receives an
amount equal to the sum it would have received had no such deductions or
withholdings been made;

(ii)           such Borrower shall make such deductions and
withholdings;

(iii)          such Borrower shall pay the full amount
deducted or withheld to the relevant taxing authority or other authority in
accordance with applicable law; and

(iv)          such Borrower shall also pay to such Lender
or the Agent for the account of such Lender, at the time interest is paid, all
additional amounts which the respective Lender specifies as necessary to
preserve the after-tax yield such Lender would have received if such Taxes or
Other Taxes had not been imposed.

(d)           Within thirty (30) days after the date of
any payment by any Borrower of Taxes or Other Taxes, such Borrower shall
furnish the Agent the original or a certified copy of a receipt evidencing
payment thereof, or other evidence of payment reasonably satisfactory to the
Agent.

(e)           If any Borrower is required to pay
additional amounts to any Lender or the Agent pursuant to subsection (b) or (c)
of this §6.2.2, then such Lender shall use commercially reasonable efforts
(consistent with legal and regulatory restrictions) to change the jurisdiction
of its lending office so as to eliminate any such additional payment by such
Borrower which may thereafter accrue, if such change in the judgment of such
Lender is not otherwise disadvantageous to such Lender.

(f)            No Borrower shall be obligated to indemnify
any Lender or the Agent pursuant to §6.2.2(b) or gross up any payments to any
Lender or the Agent pursuant to §6.2.2(c) in respect of United States federal
withholding taxes to the extent such Lender or the Agent is organized under the
laws of a jurisdiction outside the 
United States and to the extent imposed as a result of (i) the failure
of such Lender or the Agent to deliver the relevant form or forms prescribed by
the Internal Revenue Service of the United States referred to in §20.2(j) if
the Agent or such Lender is entitled under the Code to deliver such forms, (ii)
the

 39
 

information or certifications made in such forms being untrue or
inaccurate on the date delivered or such form or forms not establishing a
complete exemption for United States withholding taxes (except by reason of a
change in United States tax laws or regulations occurring after the Closing
Date) or (iii) such Lender or the Agent designating a successor lending office
which has the effect of causing such Lender or Agent to become obligated for
tax payments (or being subject to added United States federal withholding
taxes) in excess of those in effect immediately prior to such designation,
unless such designation is made at the request of a Borrower.

(g)           If a Lender or the Agent receives the
benefit of a refund or credit which it determines in its sole discretion is
attributable to any Taxes or Other Taxes as to which it has been indemnified by
a Borrower, or with respect to which a Borrower has paid increased amounts
hereunder, it shall within 30 days after the date of such receipt pay over the
amount of such refund or credit (to the extent so attributable) to such
Borrower, net of all reasonable out-of-pocket expenses of such Lender or the
Agent related to claiming such refund or credit; provided, however,
that (i) any Lender or the Agent may determine, in its sole discretion
consistent with the policies of such Lender or the Agent, whether to seek such
a refund or credit; (ii) any Taxes or Other Taxes that are imposed on a Lender
or the Agent as a result of a disallowance or reduction (including through the
expiration of any tax credit carryover or carryback of such lender or the Agent
that otherwise would not have expired) of any such refund or credit with
respect to which such Lender or the Agent has made a payment to a Borrower
pursuant to this §6.2.2(g) shall be treated as a Tax for which a Borrower is
obligated to indemnify such Lender or the Agent pursuant to this §6.2.2 without
any setoff, counterclaims, exclusions or defenses; and (iii) nothing in this
§6.2.2(g) shall require the Lenders or the Agent to disclose any confidential
information to a Borrower (including, without limitation, its tax returns).

6.3          Computations. 
All computations of interest on Base Rate Loans shall be based on a
365-day year and the actual number of days elapsed.  All computations of interest on the
Eurodollar Rate Loans and of commitment fees, Letter of Credit Fees or other
fees shall be based on a 360-day year and paid for the actual number of days
elapsed.  Except as otherwise provided in
the definition of the term “Interest Period” with respect to Eurodollar Rate
Loans, whenever a payment hereunder or under any of the other Loan Documents
becomes due on a day that is not a Business Day, the due date for such payment
shall be extended to the next succeeding Business Day, and interest shall
accrue during such extension.  The
outstanding amount of the Loans as reflected on the Revolving Credit Note
Records from time to time shall be considered correct and binding on the
Borrowers absent manifest error.

6.4          Inability
to Determine Eurodollar Rate.  In the event, prior to the commencement of
any Interest Period relating to any Eurodollar Rate Loan, the Agent shall
determine or be notified by the Majority Lenders that adequate and reasonable
methods do not exist for ascertaining the Eurodollar Rate that would otherwise
determine the rate of interest to be applicable to any Eurodollar Rate Loan
during any Interest Period, the Agent shall forthwith give notice of such
determination (which shall be conclusive and binding on the Borrowers and 

 40
 

the Lenders) to
the Borrowers and the Lenders.  In such
event (i) any Revolving Credit Loan Request or Conversion Request with respect
to Eurodollar Rate Loans shall be automatically withdrawn and shall be deemed a
request for Base Rate Loans, (ii) each Eurodollar Rate Loan will automatically,
on the last day of the then current Interest Period relating thereto, become a
Base Rate Loan, and (iii) the obligations of the Lenders to make Eurodollar
Rate Loans shall be suspended until the Agent or the Majority Lenders determine
that the circumstances giving rise to such suspension no longer exist,
whereupon the Agent or, as the case may be, the Agent upon the instruction of
the Majority Lenders, shall so notify the Borrowers and the Lenders.

6.5          Illegality. 
Notwithstanding any other provisions herein, if any present or future law,
regulation, treaty or directive or change in the interpretation or application
thereof shall make it unlawful for any Lender to make or maintain Eurodollar
Rate Loans, such Lender shall forthwith give notice of such circumstances to
the Borrowers and the other Lenders and thereupon (i) the commitment of such
Lender to make Eurodollar Rate Loans or convert Loans of another Type to
Eurodollar Rate Loans shall forthwith be suspended and (ii) such Lender’s
Revolving Credit Loans then outstanding as Eurodollar Rate Loans, if any, shall
be converted automatically to Base Rate Loans on the last day of each Interest
Period applicable to such Eurodollar Rate Loans or within such earlier period
as may be required by law.  Each of the
Borrowers hereby agrees promptly to pay the Agent for the account of such
Lender, upon demand by such Lender, any additional amounts necessary to
compensate such Lender for any costs incurred by such Lender in making any
conversion in accordance with this §6.5, including any interest or fees payable
by such Lender to lenders of funds obtained by it in order to make or maintain
its Eurodollar Rate Loans hereunder.

6.6          Additional
Costs, etc.

(a)           If
any future applicable law or any change in interpretation of any present law,
which expression, as used herein, includes statutes, rules and regulations
thereunder and interpretations thereof by any competent court or by any
governmental or other regulatory body or official charged with the
administration or the interpretation thereof and requests, directives,
instructions and notices at any time or from time to time hereafter made upon
or otherwise issued to any Lender or the Agent by any central bank or other
fiscal, monetary or other authority (whether or not having the force of law),
shall:

(i)            subject any Lender or the Agent to any tax,
levy, impost, duty, charge, fee, deduction or withholding of any nature with
respect to this Credit Agreement, the other Loan Documents, any Letters of
Credit, such Lender’s Revolving Credit Commitment or the Loans (other than
taxes based upon or measured by the income or profits of such Lender or the
Agent and taxes covered by §6.2.2), or

(ii)           impose or increase or render applicable
(other than to the extent specifically provided for elsewhere in this Credit Agreement)
any special deposit, reserve, assessment, liquidity, capital adequacy or other
similar requirements (whether or not having the force of law) against 

 41
 

assets held by, or deposits in or for the account of, or loans by, or
letters of credit issued by, or commitments of an office of any Lender, or

(iii)          impose on any Lender or the Agent any other
conditions or requirements with respect to this Credit Agreement, the other
Loan Documents, any Letters of Credit, the Loans, such Lender’s Revolving
Credit Commitment, or any class of loans, letters of credit or commitments of
which any of the Loans or such Lender’s Revolving Credit Commitment forms a
part;

and the result of any of the foregoing is:

(A)          to increase the cost to
any Lender of making, funding, issuing, renewing, extending or maintaining any
of the Loans or such Lender’s Revolving Credit Commitment or any Letter of
Credit, or

(B)           to reduce the amount of
principal, interest, Reimbursement Obligation or other amount payable to such
Lender or the Agent hereunder on account of such Lender’s Revolving Credit
Commitment, any Letter of Credit or any of the Loans, or

(C)           to require such Lender
or the Agent to make any payment or to forego any interest or Reimbursement
Obligation or other sum payable hereunder, the amount of which payment or
foregone interest or Reimbursement Obligation or other sum is calculated by
reference to the gross amount of any sum receivable or deemed received by such
Lender or the Agent from the Borrowers hereunder,

then, and in each such case, the Borrowers will, upon
demand made by such Lender or (as the case may be) the Agent at any time and
from time to time and as often as the occasion therefor may arise, pay to such
Lender or the Agent such additional amounts as will be sufficient to compensate
such Lender or the Agent for such additional cost, reduction, payment or
foregone interest or Reimbursement Obligation or other sum.

(b)           Failure
or delay on the part of any Lender to demand compensation for any increased
costs or reductions in amounts received or receivable or reductions in return
on capital shall not constitute a waiver of such Lender’s right to demand such
compensation; provided that the Borrowers shall not be under any obligation to
compensate any Lender under subclause (a) above with respect to increased costs
or reductions with respect to any period prior to the date that is one year
prior to such request if such Lender knew or could reasonably have been
expected to know of the circumstances giving rise to such increased costs or
reductions and of the fact that such circumstances would in fact result in a
claim for increased compensation by reason of such increased costs or
reductions; provided, further, that the foregoing limitation shall not apply to
any increased costs or reductions arising out of the retroactive application of
any law, regulation, rule, guideline or directive as aforesaid within such one
year period.

 42
 

6.7          Capital
Adequacy.

(a)           If
after the date hereof any Lender or the Agent determines that (i) the adoption
of or change in any law, governmental rule, regulation, policy, guideline or
directive (whether or not having the force of law) regarding capital
requirements for banks or bank holding companies or any change in the
interpretation or application thereof by a court or governmental authority with
appropriate jurisdiction, or (ii) compliance by such Lender or the Agent or any
corporation controlling such Lender or the Agent with any such law,
governmental rule, regulation, policy, guideline or directive issued after the
date hereof (whether or not having the force of law) of any such entity
regarding capital adequacy, has the effect of reducing the return on such
Lender’s or the Agent’s commitment with respect to any Loans to a level below
that which such Lender or the Agent could have achieved but for such adoption,
change or compliance (taking into consideration such Lender’s or the Agent’s
then existing policies with respect to capital adequacy and assuming full
utilization of such entity’s capital) by any amount deemed by such Lender or
(as the case may be) the Agent to be material, then such Lender or the Agent
may notify the Borrowers of such fact. 
To the extent that the amount of such reduction in the return on capital
is not reflected in the Base Rate, the Borrowers agree to pay such Lender or
(as the case may be) the Agent for the amount of such reduction in the return
on capital as and when such reduction is determined upon presentation by such
Lender or (as the case may be) the Agent of a certificate in accordance with
§6.8 hereof.  Each Lender shall allocate
such cost increases among its customers in good faith and on an equitable
basis.

(b)           Each
Lender agrees that, upon the occurrence of any event giving rise to the
operation of §§ 6.2.2, 6.6 or 6.7 with respect to such Lender, it will, if
requested in writing by the Borrowers, use commercially reasonable efforts
(subject to overall policy considerations of such Lender) to designate another
lending office for any Loans affected by such event with the object of avoiding
the consequences of such event; provided, that such designation is made on
terms that, in the sole judgment of such Lender, cause such Lender and its
lending office(s) to suffer no economic, legal or regulatory disadvantage; provided,
further, that nothing in this §6.7 shall affect or postpone any of the
obligations of the Borrowers or the rights of any Lender or the Agent pursuant
to §§ 6.2.2, 6.6 or 6.7.

(c)           Upon
receipt by the Borrowers from any Lender (an “Affected Lender”) of a claim
under §§ 6.2.2, 6.6 or 6.7, the Borrowers may:

(i)            request one or more of the other Lenders to
acquire and assume all or part of such Affected Lender’s Loans and Revolving
Credit Commitment, provided that no Lender shall be required to accede to any
such request; or

(ii)           replace such Affected Lender with another
Lender or an Eligible Assignee; provided that (A) such other Lender or Eligible
Assignee agrees to be the replacement Lender, (B) such replacement does not
conflict with any requirement of law, (C) no Default or Event of Default shall
have occurred and be continuing at the time of such 

 43
 

replacement, (D) the Borrowers shall repay (or the replacement Lender
shall purchase, at par) all Loans, accrued interest and other amounts owing to
such replaced Lender prior to the date of replacement, (E) the Borrowers shall
be liable to such replaced Lender in accordance with §6.9 with respect to any
prepayment or purchase of Eurodollar Rate Loans, (F) the replacement Lender, if
not already a Lender, shall be an Eligible Assignee and reasonably satisfactory
to the Agent, (G) the replaced Lender shall be obligated to make such
replacement in accordance with the provisions of §20 (provided that the
Borrowers or the replacement Lender shall be obligated to pay the registration
and processing fee) and (H) the Borrowers shall pay all additional amounts (if
any) required pursuant to §§ 6.2.2, 6.6 or 6.7, as the case may be, to the
extent such additional amounts were incurred on or prior to the consummation of
such replacement.

6.8          Certificate. 
A certificate setting forth any additional amounts payable pursuant to
§§6.6 or 6.7 and a brief explanation of such amounts which are due including
the calculation thereof in reasonable detail, submitted by any Lender or the
Agent to the Borrowers, shall be conclusive, absent manifest error, that such
amounts are due and owing.

6.9          Indemnity. 
The Borrowers jointly and severally agree to indemnify each Lender and
to hold each Lender harmless from and against any loss, cost or expense
(including loss of anticipated profits) that such Lender may sustain or incur
as a consequence of (i) default by the Borrowers in payment of the principal
amount of or any interest on any Eurodollar Rate Loans as and when due and
payable, including any such loss or expense arising from interest or fees
payable by such Lender to lenders of funds obtained by it in order to maintain
its Eurodollar Rate Loans, (ii) default by the Borrowers in making a borrowing
or conversion after the Borrowers have given (or are deemed to have given) a
Revolving Credit Loan Request, or a Conversion Request relating thereto in
accordance with §2.6 or §2.7 or (iii) the making of any payment of a Eurodollar
Rate Loan or the making of any conversion of any such Loan to a Base Rate Loan
on a day that is not the last day of the applicable Interest Period with
respect thereto, including interest or fees payable by such Lender to lenders
of funds obtained by it in order to maintain any such Loans.

6.10        Interest
After Default.

6.10.1     Overdue
Amounts.  Overdue
principal and (to the extent permitted by applicable law) interest on the Loans
and all other overdue amounts payable hereunder or under any of the other Loan
Documents shall bear interest compounded monthly and payable on demand at a
rate per annum equal to the Base Rate plus the Applicable Margin for
Base Rate Loans then in effect with respect to Revolving Credit Loans plus
two percent (2%) per annum until such amount shall be paid in full (after as
well as before judgment).

6.10.2     Amounts
Not Overdue.  During the
continuance of an Event of Default the principal of the Loans not overdue
shall, until such Event of Default has been cured or remedied or such Event of
Default has been waived by the Lenders pursuant to §27, 

 44
 

bear interest at a rate per annum equal to the Base Rate plus
the Applicable Margin for Base Rate Loans then in effect with respect to
Revolving Credit Loansplus
two percent (2%) per annum.

6.10.3     Letters
of Credit.  The Unpaid
Reimbursement Obligations and (to the extent permitted by law) unpaid interest
thereon (as provided in this sentence) shall bear interest compounded monthly
and payable on demand at a rate per annum equal to the Base Rate plus
the Applicable Margin for Base Rate Loans then in effect with respect to
Revolving Credit Loansplus
two percent (2%) per annum until such amount shall be paid in full (after as
well as before judgment).

6.11        Concerning
Joint and Several Liability of the Borrowers.

(a)           Each
of the Borrowers is accepting joint and several liability hereunder and under
the other Loan Documents in consideration of the financial accommodations to be
provided by the Lenders and the Agent under this Credit Agreement, for the
mutual benefit, directly and indirectly, of each of the Borrowers and in
consideration of the undertakings of each other Borrower to accept joint and
several liability for the Obligations.

(b)           Each
of the Borrowers, jointly and severally, hereby irrevocably and unconditionally
accepts, not merely as a surety but also as a co-debtor, joint and several
liability with the other Borrowers, with respect to the payment and performance
of all of the Obligations (including, without limitation, any Obligations
arising under this §6.11), it being the intention of the parties hereto that
all the Obligations shall be the joint and several obligations of each of the
Borrowers without preferences or distinction among them.

(c)           If
and to the extent that any of the Borrowers shall fail to make any payment with
respect to any of the Obligations as and when due or to perform any of the
Obligations in accordance with the terms thereof, then in each such event the
other Borrowers will make such payment with respect to, or perform, such
Obligation.

(d)           The
Obligations of each of the Borrowers under the provisions of this §6.11
constitute the full recourse Obligations of each of the Borrowers enforceable
against each such Borrower to the full extent of its properties and assets,
irrespective of the validity, regularity or enforceability of this Credit
Agreement or the other Loan Documents or any other circumstance whatsoever as
to any other Borrower.

(e)           Except
as otherwise expressly provided herein, each Borrower hereby waives promptness,
diligence, presentment, demand, protest, notice of acceptance of its joint and
several liability, notice of any and all advances of the Loans made under this
Credit Agreement and the Notes, notice of occurrence of any Default or Event of
Default (except to the extent notice is expressly required to be given pursuant
to the terms of this Credit Agreement or any of the other Loan Documents), or
of any demand for any payment under this Credit Agreement, notice of any action
at any time taken or omitted by the Agent or the Lenders under or in respect of
any of the Obligations hereunder, any 

 45
 

requirement of diligence and, generally, all demands, notices and other
formalities of every kind in connection with this Credit Agreement and the
other Loan Documents.  Each Borrower
hereby waives all defenses which may be available by virtue of any valuation,
stay, moratorium law or other similar law now or hereafter in effect, any right
to require the marshaling of assets of the Borrowers and any other entity or
Person primarily or secondarily liable with respect to any of the Obligations,
and all suretyship defenses generally. 
Each Borrower hereby assents to, and waives notice of, any extension or
postponement of the time for the payment, or place or manner for payment,
compromise, refinancing, consolidation or renewals of any of the Obligations
hereunder, the acceptance of any partial payment thereon, any waiver, consent
or other action or acquiescence by the Agent and the Lenders at any time or
times in respect of any default by any Borrower in the performance or satisfaction
of any term, covenant, condition or provision of this Credit Agreement and the
other Loan Documents, any and all other indulgences whatsoever by the Agent and
the Lenders in respect of any of the Obligations hereunder, and the taking,
addition, substitution or release, in whole or in part, at any time or times,
of any security for any of such Obligations or the addition, substitution or
release, in whole or in part, of any Borrower or any other entity or Person
primarily or secondarily liable for any Obligation.  Such Borrower further agrees that its
Obligations shall not be released or discharged, in whole or in part, or
otherwise affected by the adequacy of any rights which the Agent or any Lender
may have against any collateral security or other means of obtaining repayment
of any of the Obligations, the impairment of any collateral security securing
the Obligations, including, without limitation, the failure to protect or
preserve any rights which the Agent or any Lender may have in such collateral security
or the substitution, exchange, surrender, release, loss or destruction of any
such collateral security, any other act or omission which might in any manner
or to any extent vary the risk of such Borrower, or otherwise operate as a
release or discharge of such Borrower, all of which may be done without notice
to such Borrower; provided, however, that the foregoing shall in
no way be deemed to create commercially unreasonable standards as to the Agent’s
duties as secured party under the Loan Documents (as such rights and duties are
set forth therein).  If for any reason
any of the other Borrowers has no legal existence or is under no legal
obligation to discharge any of the Obligations, or if any of the Obligations
have become irrecoverable from any of the other Borrowers by reason of such
other Borrower’s insolvency, bankruptcy or reorganization or by other operation
of law or for any reason, this Credit Agreement and the other Loan Documents to
which it is a party shall nevertheless be binding on such Borrower to the same
extent as if such Borrower at all times had been the sole obligor on such
Obligations.  Without limiting the
generality of the foregoing, each Borrower assents to any other action or delay
in acting or failure to act on the part of the Agent and the Lenders,
including, without limitation, any failure strictly or diligently to assert any
right or to pursue any remedy or to comply fully with applicable laws or
regulations thereunder which might, but for the provisions of this §6.11, afford
grounds for terminating, discharging or relieving such Borrower, in whole or in
part, from any of its obligations under this §6.11, it being the intention of
each Borrower that, so long as any of the Obligations hereunder remain
unsatisfied, the obligations of such Borrower under this §6.11 shall not be
discharged except by performance and then only to the extent of such
performance.  The Obligations of each
Borrower under this §6.11 shall not be 

 46
 

diminished or rendered unenforceable by any winding up, reorganization,
arrangement, liquidation, reconstruction or similar proceeding with respect to
any reconstruction or similar proceeding with respect to any other Borrower, or
any of the Lenders.  The joint and
several liability of the Borrowers hereunder shall continue in full force and
effect notwithstanding any absorption, merger, amalgamation or any other change
whatsoever in the name, ownership, membership, constitution or place of
formation of any Borrower or the Lenders. 
Each of the Borrowers acknowledges and confirms that it has itself
established its own adequate means of obtaining from each of the other
Borrowers on a continuing basis all information desired by such Borrower
concerning the financial condition of each of the other Borrowers and that each
such Borrower will look to each of the other Borrowers and not to the Agent or
any Lender in order for such Borrower to keep adequately informed of changes in
each of the other Borrowers’ respective financial conditions.

(f)            The
provisions of this §6.11 are made for the benefit of the Lenders and the Agent
and their respective permitted successors and assigns, and may be enforced by
it or them from time to time against any or all of the Borrowers as often as
occasion therefor may arise and without requirement on the part of the Lenders
or the Agent or such successor or assign first to marshall any of its or their
claims or to exercise any of its or their rights against any of the other
Borrowers or to exhaust any remedies available to it or them against any of the
other Borrowers or to resort to any other source or means of obtaining payment
of any of the Obligations hereunder or to elect any other remedy.  The provisions of this §6.11 shall remain in
effect until all of the Obligations shall have been paid in full or otherwise
fully satisfied.  If at any time, any
payment, or any part thereof, made in respect of any of the Obligations, is
rescinded or must otherwise be restored or returned by any Lender or the Agent
upon the insolvency, bankruptcy or reorganization of any of the Borrowers, or
otherwise, the provisions of this §6.11 will forthwith be reinstated in effect,
as though such payment had not been made.

(g)           Each
of the Borrowers hereby agrees that it will not enforce any of its rights of
reimbursement, contribution, subrogation or the like against the other
Borrowers with respect to any liability incurred by it hereunder or under any
of the other Loan Documents, any payments made by it to any of the Lenders or
the Agent with respect to any of the Obligations or any collateral security
therefor until such time as all of the Obligations have been irrevocably paid
in full in cash.  Any claim which any
Borrower may have against any other Borrower with respect to any payments to
the Lenders or the Agent hereunder or under any other Loan Documents are hereby
expressly made subordinate and junior in right of payment, without limitation
as to any increases in the Obligations arising hereunder or thereunder, to the
prior payment in full of the Obligations and, in the event of any insolvency,
bankruptcy, receivership, liquidation, reorganization or other similar
proceeding under the laws of any jurisdiction relating to any Borrower, its
debts or its assets, whether voluntary or involuntary, all such Obligations
shall be paid in full before any payment or distribution of any character,
whether in cash, securities or other property, shall be made to any other
Borrower therefor.

 47
 

(h)           Each
of the Borrowers hereby agrees that the payment of any amounts due with respect
to the indebtedness owing by any Borrower to any other Borrower is hereby
subordinated to the prior payment in full in cash of the Obligations.  Each Borrower hereby agrees that after the
occurrence and during the continuance of any Default or Event of Default, such
Borrower will not demand, sue for or otherwise attempt to collect any
indebtedness of any other Borrower owing to such Borrower until the Obligations
shall have been paid in full in cash. 
If, notwithstanding the foregoing sentence, such Borrower shall collect,
enforce or receive any amounts in respect of such indebtedness, such amounts
shall be collected, enforced and received by such Borrower as trustee for the
Agent and be paid over to the Agent for the pro rata
accounts of the Lenders to be applied to repay the Obligations.

7.             GUARANTY;
COLLATERAL SECURITY; COLLATERAL NOTES.

7.1          Security
of Borrowers.  The
Obligations shall be guaranteed by the Parent pursuant to the terms of the
Parent Guaranty.  The Obligations
shall be secured by a perfected first priority security interest (subject only
to Permitted Liens entitled to priority under applicable law) in all of the
assets (except as otherwise provided herein or in the Loan Documents) of each
of the Borrowers (including, without limitation, accounts and notes receivable,
inventory, equipment, real property (to the extent permitted with respect to
leased property under the applicable Real Estate Lease), stock of each of the
Borrowers, intangible property, licenses and intellectual property), whether
now owned or hereafter acquired, pursuant to the terms of the Security
Documents to which each such Borrower is a party.  Each of the Security Documents executed and
delivered pursuant to the Existing Credit Agreement prior to the Closing Date
shall continue to secure the Obligations under this Credit Agreement from and
after the Closing Date.

7.2          Collateral
Notes.  In addition to the Revolving Credit Notes,
each of the Borrowers agrees that with respect to any of the Real Estate to be
mortgaged by it or any of its Subsidiaries hereunder, it will execute and
deliver or cause such Subsidiary to execute and deliver to the Agent such
collateral notes (the “Collateral Notes”) in such form as the Agent and
the Borrowers may from time to time agree. 
The parties hereto hereby agree that (a) the aggregate amount of the
Outstanding Obligations shall not be increased by the issuance of the
Collateral Notes and (b) any payment or recovery on the Collateral Notes shall
be applied to the Obligations pursuant to §14.4.  All Collateral Notes shall be payable to the
order of the Agent, on demand; provided
that the Agent hereby agrees that it shall not demand payment on any Collateral
Note unless the Obligations shall have become immediately due and payable
pursuant to §14.1.

8.             REPRESENTATIONS
AND WARRANTIES.

The Borrowers represent and warrant to the Lenders and
the Agent as follows:

8.1          Corporate
Authority.

8.1.1       Incorporation;
Good Standing.  Each of
the Borrowers and each of their Subsidiaries (i) is a corporation duly
organized, validly existing and in good standing under the laws of its state of
incorporation, (ii) has all requisite corporate power to own 

 48
 

or lease its property as the case may be and conduct its business as
now conducted and as presently contemplated, and (iii) is in good standing as a
foreign corporation and is duly authorized to do business in each jurisdiction
where such qualification is necessary except where a failure to be so qualified
would not have a Materially Adverse Effect.

8.1.2       Authorization.  Except where a failure thereof would not have
a Materially Adverse Effect, the execution, delivery and performance of this
Credit Agreement, the other Loan Documents, the Equity Documents, the Senior
Secured Debt Documents and the Unsecured Term Loan Documents to which each of
the Borrowers or any of their Subsidiaries is or is to become a party and the
transactions contemplated hereby and thereby (i) are within the corporate
authority of such Person, (ii) have been duly authorized by all necessary
corporate proceedings, (iii) do not conflict with or result in any breach or
contravention of any provision of law, statute, rule or regulation to which any
of the Borrowers or any of their Subsidiaries is subject or any judgment,
order, writ, injunction, license or permit applicable to any of the Borrowers
or any of their Subsidiaries and (iv) do not conflict with any provision of the
corporate charter or bylaws of, or any agreement or other instrument binding
upon, any of the Borrowers or any of their Subsidiaries.

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

 49
 

8.2          Governmental
Approvals.  Except as set forth on Schedule 8.2 and where
a failure thereof would not have a Materially Adverse Effect, the execution,
delivery and performance by each of the Borrowers and their Subsidiaries of
this Credit Agreement, the other Loan Documents, the Senior Secured Debt
Documents, the Equity Documents and the Unsecured Term Loan Documents to which
each is or is to become a party and the transactions contemplated hereby and
thereby do not require the approval or consent of, or filing with, any governmental
agency or authority other than those already obtained.

8.3          Title
to Properties; Leases.  Attached hereto as Schedule 8.3, as such
Schedule 8.3 may be updated from time to time in accordance with the
provisions of §9.5.7, is a complete list of Real Estate owned or leased by the
Borrowers.  The Borrowers own or lease
all of the assets reflected in the consolidated balance sheet of the Borrowers
and their Subsidiaries as at the Balance Sheet Date or acquired since that date
(except property and assets sold or otherwise disposed of in the ordinary
course of business since the Closing Date or as permitted hereunder since the
Closing Date), subject to no rights of others, including any mortgages, leases,
conditional sales agreements, title retention agreements, liens or other
encumbrances except Permitted Liens.

8.4          Financial
Statements.

8.4.1       Fiscal
Year.  Each of the
Borrowers and their Subsidiaries will have a fiscal year which ends on the last
Sunday in December of each calendar year.

8.4.2       Financial
Statements.  There has
been furnished to each of the Lenders (a) a consolidated balance sheet of the
Borrowers and their Subsidiaries as at the Balance Sheet Date, and a
consolidated statement of income of the Borrowers and their Subsidiaries for
the fiscal year then ended, certified by Ernst & Young L.L.P., and (b)
unaudited balance sheets and statements of income and cash flow for that
portion of the fiscal year ending on September 24, 2006.  Such financial statements described in the
preceding sentence have been prepared in accordance with generally accepted
accounting principles and fairly present the financial condition of the
Borrowers and their Subsidiaries as at the close of business on the date
thereof and the results of operations for the fiscal period then ended subject
to year end adjustments in the case of interim statements.  There are no contingent liabilities of any of
the Borrowers or their Subsidiaries as of such date involving material amounts,
known to the officers of the Borrowers, which were not disclosed in such
balance sheet and the notes related thereto.

8.4.3       [Intentionally Omitted]

8.5          No
Material Changes, etc.

(a)           From
the Balance Sheet Date through the Closing Date, there has occurred no
materially adverse change in the financial condition or business of the
Borrowers as shown on or reflected in the balance sheet of the Borrowers as at
the Balance Sheet Date, or the consolidated statement of income for the fiscal
year then ended, other than (i) the Merger, (ii) a Restricted Payment in the
amount of $10,000,000 occurring on August 24, 2006 and (iii) changes in the
ordinary course of business that have not had any materially 

 50
 

adverse effect either individually or in the aggregate on the business
or financial condition of the Borrowers. 
From the Balance Sheet Date through the Closing Date, no Borrower has
made any Restricted Payment, except Restricted Payments of the kind described
in §10.4(d).

(b)           Since
the Closing Date, there has occurred no materially adverse change in the
financial condition or business of the Borrowers other than changes in the
ordinary course of business that have not had any materially adverse effect
either individually or in the aggregate on the business or financial condition
of the Borrowers.

8.6          Laws,
Licenses; Franchises, Patents, Copyrights, etc.

8.6.1       Laws,
Licenses.  None of the
Borrowers or their Subsidiaries is in violation of or delinquent with respect
to, any decree, order, or arbitration award of any court or governmental
authority, or any agreement with, or any license or permit from, any
governmental authority, or any statute, law, license, rule or regulation
including, without limitation, laws and regulations relating to food or liquor,
occupational health and safety, equal employment opportunities, fair employment
practices, and sex, race, religious or age discrimination, in any of the
foregoing cases in a manner that could reasonably be expected to result in the
imposition of substantial penalties or materially and adversely affect the
financial condition, properties or business of the Borrowers and their
Subsidiaries taken as a whole.  Any and
all approvals by any federal, state or local liquor authority necessary for the
continued operation of any restaurant operated by any of the Borrowers or their
Subsidiaries with full liquor service have been received and remain in full
force and effect except where the failure thereof would not have a Materially
Adverse Effect.

8.6.2       Franchises,
Patents, Copyrights, etc. 
Except as set forth on Schedule 8.6.2 and where a failure
thereof would not have a Materially Adverse Effect, each of the Borrowers and
their Subsidiaries possesses all franchises, patents, copyrights, trademarks,
trade names, licenses and permits, and rights in respect of the foregoing,
adequate for the conduct of the business of the Borrowers and their
Subsidiaries, substantially as such business is now conducted without known
conflict with any rights of others.

 51
 

8.7          Litigation. 
Except as set forth in Schedule 8.7 hereto, there are no actions,
suits, proceedings or investigations of any kind pending or, to the knowledge
of the Borrowers or their Subsidiaries, threatened against any of the Borrowers
or their Subsidiaries before any court, tribunal or administrative agency or
board that could be reasonably expected to, either in any case or in the
aggregate, materially adversely affect the properties, assets, financial
condition or business of the Borrowers and their Subsidiaries or materially
impair the right of the Borrowers and their Subsidiaries, taken as a whole, to
carry on business substantially as now conducted by them, or result in any
substantial liability not adequately covered by insurance, or for which
adequate reserves are not maintained on the consolidated balance sheet of the
Borrowers and their Subsidiaries, or which question the validity of this Credit
Agreement, any of the other Loan Documents, the Senior Secured Debt Documents,
the Equity Documents, the Unsecured Term Loan Documents, or any action taken or
to be taken pursuant hereto or thereto.

8.8          No
Materially Adverse Contracts, etc.  None of the Borrowers or their Subsidiaries
is subject to any charter, corporate or other legal restriction, or any
judgment, decree, order, rule or regulation that has or could reasonably be
expected in the future to have a materially adverse effect on the business,
assets or financial condition of the Borrowers and their Subsidiaries.  None of the Borrowers or their Subsidiaries
is a party to any contract or agreement that has or is, in the judgment of the
Borrowers’ officers, to have any Materially Adverse Effect either individually
or in the aggregate.

8.9          Compliance
with Other Instruments, etc.  None of the Borrowers or their Subsidiaries
is in violation of any provision of its charter documents, bylaws, or any
agreement or instrument to which it may be subject or by which it or any of its
properties may be bound or any decree, order, judgment, statute, license, rule
or regulation, in any of the foregoing cases in a manner that could result in
the imposition of substantial penalties or have a Materially Adverse Effect.

8.10        Tax
Status.  Each of the Borrowers and their Subsidiaries
(a) has made or filed, or have filed valid extensions of time to file, all
federal and state income tax returns and all other material tax returns,
reports and declarations required by any jurisdiction to which it is subject,
(b) has paid all material taxes and other governmental assessments and charges
shown or determined to be due on such returns, reports and declarations, except
those being contested in good faith and by appropriate proceedings and (c) has
set aside on its books provisions reasonably adequate for the payment of all
taxes for periods subsequent to the periods to which such returns, reports or
declarations apply.  There are no unpaid
taxes in any material amount claimed to be due by the taxing authority of any
jurisdiction, and the officers of the Borrowers know of no basis for any such
claim.

8.11        No Event of Default.  No Default or Event of Default has occurred
and is continuing.

8.12        Investment
Company Acts.  None of the Borrowers and their Subsidiaries
is an “investment company”, or an “affiliated company” or a “principal
underwriter” of an “investment company”, as such terms are defined in the
Investment Company Act of 1940.

 52

8.13        Absence
of Financing Statements; Perfection of Security Interests. 
Except with respect to Permitted Liens, there is no financing statement,
security agreement, chattel mortgage, real estate mortgage or other document
filed or recorded with any filing records, registry or other public office,
that purports to cover, affect or give notice of any present or possible future
lien on, or security interest in, any assets or property of any of the
Borrowers or their Subsidiaries or any rights relating thereto.  All filings, assignments, pledges and
deposits of documents or instruments have been made and all other actions have
been taken that are necessary or advisable, under applicable law, to establish
and perfect the Agent’s security interest in the Collateral.  The Collateral and the Agent’s rights with
respect to the  Collateral are not
subject to any setoff, claims, withholdings or other defenses, except for
Permitted Liens.  The Borrowers are the
owners of the Collateral free from any lien, security interest, encumbrance and
any other claim or demand, except for Permitted Liens.

8.14        Employee
Benefit Plans.

8.14.1     In
General.  Each Employee
Benefit Plan and each Guaranteed Pension Plan has been maintained and operated
in compliance in all material respects with the provisions of ERISA and, to the
extent applicable, the Code, including but not limited to the provisions
thereunder respecting prohibited transactions and the bonding of fiduciaries
and other persons handling plan funds as required by §412 of ERISA.  The Borrowers have heretofore delivered to
the Agent the most recently filed annual report, Form 5500, with all required
attachments, and actuarial statement required to be submitted under §103(d) of
ERISA, with respect to each Guaranteed Pension Plan.

8.14.2     Terminability
of Welfare Plans.  Except
as set forth in Schedule 8.14.2, (a) no Employee Benefit Plan
maintained or contributed to by the Borrowers or their Subsidiaries which is an
employee welfare benefit plan within the meaning of §3(1) or §3(2)(B) of ERISA,
provides benefit coverage subsequent to termination of employment, except as
required by Title I, Part 6 of ERISA or the applicable state insurance laws and
(b) the Borrowers, or their Subsidiaries, as the case may be, may terminate
each such Plan at any time (or at any time subsequent to the expiration of any
applicable bargaining agreement) in the discretion of the Borrowers or their
Subsidiaries without liability to any Person other than for claims arising
prior to termination.

8.14.3     Guaranteed
Pension Plans.  Each
contribution required to be made to a Guaranteed Pension Plan, whether required
to be made to avoid the incurrence of an accumulated funding deficiency, the
notice or lien provisions of §302(f) of ERISA, or otherwise, has been timely
made.  No waiver of an accumulated
funding deficiency or extension of amortization periods under §412 of the Code
or §302 of ERISA has been received with respect to any Guaranteed Pension Plan,
and neither any of the Borrowers nor any ERISA Affiliate is obligated to post
or has posted security in connection with an amendment to a Guaranteed Pension
Plan pursuant to §307 of ERISA or §401(a)(29) of the Code.  No liability to the PBGC (other than required
insurance premiums, all of which have been paid) has been incurred by any
Borrower or any ERISA Affiliate with respect to any Guaranteed Pension Plan and
no ERISA Reportable Event (other than an ERISA Reportable Event as to which the
requirement of 30 days notice has been waived), nor any other event or condition
which presents a material risk of termination of 

 53
 

any Guaranteed Pension Plan by the PBGC, has occurred.  Based on the latest valuation of each
Guaranteed Pension Plan (which in each case occurred within twelve months of
the date of this representation), and on the actuarial methods and assumptions
employed for that valuation, the aggregate benefit liabilities of all such
Guaranteed Pension Plans within the meaning of §4001 of ERISA did not exceed
the aggregate value of the assets of all such Guaranteed Pension Plans,
disregarding for this purpose the benefit liabilities and assets of any
Guaranteed Pension Plan with assets in excess of benefit liabilities.

8.14.4     Multiemployer
Plans.  Neither any of the
Borrowers nor any ERISA Affiliate has incurred any material liability
(including secondary liability) to any Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan under §4201 of
ERISA or as a result of a sale of assets described in §4204 of ERISA.  Neither any of the Borrowers nor any ERISA
Affiliate has been notified that (a) any Multiemployer Plan is in
reorganization or insolvent under and within the meaning of §4241 or §4245 of
ERISA or is at risk of entering reorganization or becoming insolvent, or (b) that
any Multiemployer Plan intends to terminate or has been terminated under §4041A
of ERISA.

8.15        Use
of Proceeds.

8.15.1     General.  The Revolving Credit Loans shall be used for
payment of costs and expenses associated with the Refinancing, and the acquisition
and/or construction of new Stores and to upgrade existing Stores, in each case
in accordance with the terms hereof, and for working capital and general
corporate purposes.  The Borrowers will
obtain Letters of Credit for self-insurance and voluntary disability insurance
programs and purchases of supplies in the ordinary course of business (“Permitted
LC Purposes”); provided that the Borrowers may obtain Letters of Credit for
purposes other than Permitted LC Purposes so long as (x) such Letters of Credit
are obtained solely for working capital and general corporate purposes and (y)
the aggregate principal amount of the outstanding Revolving Credit Loans and
Letters of Credit obtained for purposes other than Permitted LC Purposes does
not exceed $15,000,000.

8.15.2     Regulations
U and X.  No portion of
any Loan is to be used, and no portion of any Letter of Credit is to be
obtained, for the purpose of purchasing or carrying any “margin security” or “margin
stock” as such terms are used in Regulations U and X of the Board of Governors
of the Federal Reserve System, 12 C.F.R. Parts 221 and 224.

8.15.3     Ineligible
Securities. No portion of the proceeds of any Loans is to be
used, and no portion of any Letter of Credit is to be obtained, for the purpose
of knowingly purchasing, or providing credit support for the purchase of,
during the underwriting or placement period or within thirty (30) days
thereafter, any Ineligible Securities underwritten or privately placed by a
Financial Affiliate.

8.16        Disclosure. 
Neither this Credit Agreement, nor any of the other Loan Documents, nor
any other written information provided to the Lenders by any Borrower or any of
the Borrowers’ Subsidiaries contains any untrue statement of a material fact or
omits to state a material fact (known to any of the Borrowers or their
Subsidiaries in the case of any document or 

 54
 

information not
furnished by it or any of its Subsidiaries) necessary in order to make the
statements herein or therein not misleading at the time made.  There is no fact known to any of the
Borrowers or their Subsidiaries which materially adversely affects, or which
could reasonably be expected to materially adversely affect, the business,
assets, financial condition or prospects of the Borrowers and their Subsidiaries
taken as a whole, exclusive of effects resulting from changes in general
economic conditions, legal standards or regulatory conditions.

8.17        Environmental
Compliance.  The Borrowers have taken all steps reasonably
deemed necessary by the Borrowers to investigate the past and present condition
and usage of the Real Estate and the operations conducted thereon and, based
upon such diligent investigation, have determined that, except as disclosed on
Schedule 8.17:

(a)           none
of the Borrowers or their Subsidiaries is in violation, or, to the knowledge of
the Borrowers or their Subsidiaries, alleged violation, of any judgment,
decree, order, law, license, rule or regulation pertaining to environmental
matters, including without limitation, those arising under the Resource
Conservation and Recovery Act (“RCRA”), the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 as
amended (“CERCLA”), the Superfund
Amendments and Reauthorization Act of 1986 (“SARA”),
the Federal Clean Water Act, the Federal Clean Air Act, the Toxic Substances
Control Act, or any state or local statute, regulation, ordinance, order or
decree relating to health, safety or the environment (hereinafter “Environmental
Laws”), which violation could be reasonably expected to have a Materially
Adverse Effect;

(b)           none
of the Borrowers or their Subsidiaries has received written notice from any
third party including, without limitation, any federal, state or local
governmental authority, (i) that any one of them has been identified by the
United States Environmental Protection Agency (“EPA”)
as a potentially responsible party under CERCLA with respect to a site listed
on the National Priorities List, 40 C.F.R. Part 300 Appendix B; (ii) that any
hazardous waste, as defined by 42 U.S.C. §6903(5), any hazardous substances as
defined by 42 U.S.C. §9601(14), any pollutant or contaminant as defined by 42
U.S.C. §9601(33) and any toxic substances, petroleum products or hazardous
materials or other chemicals or substances regulated by any Environmental Laws
(“Hazardous Substances”) which any one of them has generated,
transported or disposed of has been found at any site at which a federal, state
or local agency or other third party has conducted or has ordered that any of
the Borrowers or their Subsidiaries conduct a remedial investigation, removal
or other response action pursuant to any Environmental Law; or (iii) that it is
or shall be a named party to any claim, action, cause of action, complaint, or
legal or administrative proceeding (in each case, contingent or otherwise)
arising out of any third party’s incurrence of costs, expenses, losses or
damages of any kind whatsoever in connection with the release of Hazardous
Substances;

(c)           (i)
no portion of the Real Estate has been used for the handling, processing,
storage or disposal of Hazardous Substances except in accordance with
applicable Environmental Laws, and no underground tank or other underground
storage receptacle for Hazardous Substances owned or used by, or which the
Borrowers or their Subsidiaries are or could be reasonably expected to be
liable is located on any portion of 

 55
 

the Real Estate, except for such handling, storage, disposal or use
which could not be reasonably expected to have a Materially Adverse Effect;
(ii) in the course of any activities conducted by the Borrowers, their
Subsidiaries or operators of their properties, no Hazardous Substances have
been generated or are being used on the Real Estate except in substantial
compliance with applicable Environmental Laws; (iii) there have been no
releases (i.e. any past or present releasing, spilling, leaking, pumping,
pouring, emitting, emptying, discharging, injecting, escaping, disposing or
dumping) or threatened releases of Hazardous Substances on, upon, into or from
the properties of any of the Borrowers or their Subsidiaries, which releases
would have a Materially Adverse Effect; (iv) to the best of the Borrowers’
knowledge, there have been no releases on, upon, from or into any real property
in the vicinity of any of the Real Estate which, through soil or groundwater
contamination, may have come to be located on, and which would have a
Materially Adverse Effect; and (v) in addition, any Hazardous Substances that
have been generated on any of the Real Estate while owned or leased by the
Borrowers or their Subsidiaries have been transported offsite in compliance
with applicable Environmental Law, treated or disposed of only by treatment or
disposal facilities maintaining valid permits at the time of such treatment or
disposal as required under applicable Environmental Laws, which transporters
and facilities have been and are, to the best of the Borrowers’ knowledge,
operating in compliance with such permits and applicable Environmental Laws;
and

(d)           none
of the Borrowers, their Subsidiaries, any Mortgaged Property or any of the
other Real Estate is subject to any applicable Environmental Law requiring the
performance of Hazardous Substances site assessments, or the removal or
remediation of Hazardous Substances, or the giving of notice to any
governmental agency or the recording or delivery to other Persons of an
environmental disclosure document or statement by virtue of the transactions
set forth and contemplated in the Loan Documents, or as a condition to the
recording of any Mortgage or to the effectiveness of any other transactions
contemplated hereby except where the existence thereof would not have a
Materially Adverse Effect.

8.18        Subsidiaries,
etc.  Schedule 8.18, as such Schedule 8.18
may be updated from time to time in accordance with the provisions of §9.18,
lists all Subsidiaries of each Borrower, together with information on their
jurisdictions of incorporation, the number and class of authorized and issued
capital stock and the owners of all issued capital stock. Such capital stock
constitutes, of record, 100% of the outstanding capital stock of each such
Borrower and, on a fully-diluted basis, 100% of such outstanding capital stock.  Except
as set forth on Schedule 8.18 hereto, none of the Borrowers or their Subsidiaries
is engaged in any joint venture or partnership with any other Person.

8.19        Senior
Secured Debt Documents; Equity Documents; Unsecured Term Loan Documents and
Parent Debt Documents.

(a)           The Borrowers have
heretofore furnished to the Agent true, complete and correct copies of the
Senior Secured Debt Documents (including schedules, exhibits and annexes
thereto).  The Senior Secured Debt
Documents have not subsequently been amended, supplemented, or modified (other
than the amendments, if any, delivered to the 

 56
 

Agent on or prior to the Closing Date and consented to or approved on
or prior to the Closing Date by the Agent or as expressly permitted hereunder)
and constitute the complete understanding among the parties thereto in respect
of the matters and transactions covered thereby.  To the best knowledge of the Borrowers, as of
the Closing Date, all of the representations and warranties contained in the
Senior Secured Debt Documents were true and correct in all material respects
when made or deemed to be made except as would not have a Materially Adverse
Effect after giving effect to the transactions contemplated thereby, and the
Agent and the Lenders may rely on such representations and warranties as if
they were incorporated herein on the Closing Date; provided, that
nothing contained herein shall prejudice in any way any rights of the Borrowers
under or in respect of the Senior Secured Debt Documents, all of which are
expressly hereby reserved.  The
requirements of §12.23 have been satisfied as of the Closing Date (subject to
the satisfaction of the Agent as to the matters set forth therein which
expressly require such satisfaction).

(b)           On
or prior to the Closing Date, the Borrowers have furnished to the Agent true,
complete and correct copies of the Equity Documents (including schedules,
exhibits and annexes thereto).  As of the
Closing Date, the Equity Documents have not been amended, supplemented, or
modified (other than the amendments, if any, delivered to the Agent on or prior
to the Closing Date and consented to or approved on or prior to the Closing
Date by the Agent or as expressly permitted hereunder) and constitute the
complete understanding among the parties thereto in respect of the matters and
transactions covered thereby.  As of the
Closing Date, the representations and warranties of the Borrowers and their
Affiliates contained in the Equity Documents were true and correct in all
material respects when made or deemed to be made except as would not have a
Materially Adverse Effect and the Agent and the Lenders may rely on such
representations and warranties as if they were incorporated herein on the
Closing Date; provided, that nothing contained herein shall prejudice in
any way any rights of the Borrowers under or in respect of the Equity Documents,
all of which are expressly hereby reserved.

(c)           On
or prior to the Closing Date, the Borrowers have furnished to the Agent true,
complete and correct copies of the Unsecured Term Loan Documents (including
schedules, exhibits and annexes thereto).  As of the Closing Date, the Unsecured Term
Loan Documents have not been amended, supplemented, or modified (other than the
amendments, if any, delivered to the Agent on or prior to the Closing Date and
consented to or approved on or prior to the Closing Date by the Agent or as
expressly permitted hereunder) and constitute the complete understanding among
the parties thereto in respect of the matters and transactions covered
thereby.  To the best knowledge of the
Borrowers, as of the Closing Date, all of the representations and warranties
contained in the Unsecured Term Loan Documents were true and correct in all
material respects when made or deemed to be made except as would not have a
Materially Adverse Effect after giving effect to the transactions contemplated
thereby, and the Agent and the Lenders may rely on such representations and
warranties as if they were incorporated herein on the Closing Date; provided,
that nothing contained herein shall prejudice in any way any rights of the
Borrowers under or in respect of the Unsecured Term Loan Documents, all of
which are expressly hereby reserved.

 57
 

(d)           On
or prior to the Closing Date, the Borrowers have furnished to the Agent true,
complete and correct copies of the Parent Debt Documents (including schedules,
exhibits and annexes thereto).  As of the
Closing Date, the Parent Debt Documents have not been amended, supplemented, or
modified (other than the amendments, if any, delivered to the Agent on or prior
to the Closing Date and consented to or approved on or prior to the Closing
Date by the Agent or as expressly permitted hereunder) and constitute the
complete understanding among the parties thereto in respect of the matters and
transactions covered thereby.

8.20        Solvency. 
Both before and after giving effect to this Credit Agreement and the
other Loan Documents and the Refinancing, all of the Borrowers and their
Subsidiaries on a consolidated basis are Solvent.  As used herein, “Solvent” shall mean that
each of the Borrowers and their Subsidiaries (i) have assets having a fair
value in excess of their liabilities, (ii) have assets having a fair value in
excess of the amount required to pay their liabilities on existing debts as
such debts become absolute and matured, and (iii) have, and expect to continue to
have, access to adequate capital for the conduct of their business and the
ability to pay their debts from time to time incurred in connection with the
operation of their business as such debts mature.

8.21        Certain
Transactions.  Except for transactions listed on Schedule 8.21 and arm’s length transactions
pursuant to which any of the Borrowers or their Subsidiaries makes payments in
the ordinary course of business upon terms no less favorable than such Borrower
or such Subsidiary could obtain from third parties, none of the officers,
directors, or employees of any of the Borrowers or their Subsidiaries is
presently a party to any transaction with any of the Borrowers or their
Subsidiaries (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or
from, or otherwise requiring payments to or from any officer, director or such
employee or, to the knowledge of the Borrowers, any corporation, partnership,
trust or other entity in which any officer, director, or any such employee has
a substantial interest or is an officer, director, trustee or partner.

8.22        Bank
Accounts.  Schedule 8.22, as such Schedule 8.22
may be updated from time to time in accordance with the provisions of §9.5.6,
sets forth the account numbers and location of all bank accounts of the
Borrowers and their Subsidiaries.

8.23        Stores. 
Schedule 8.23 sets forth, as of the Closing Date, the names,
addresses and Concepts of each Store and identifies, as of the Closing Date,
which of those Stores are operated under a franchise agreement between a
Borrower as franchisor and a franchisee.

8.24        Franchise
Agreements.  The Borrowers have delivered to the Agent as
at the Closing Date and pursuant to §9.5.5 true and complete copies of any
franchise agreements to which the Borrowers or any of the Borrowers’
Subsidiaries is party.

8.25        Leases. 
Neither the execution, delivery and performance of this Credit
Agreement, the other Loan Documents, the Equity Documents, the Senior Secured
Debt Documents and the Unsecured Term Loan Documents to which the Borrowers or
any of their Subsidiaries is a party, including a pledge by the Borrowers to
the Agent of all the Equity Interests of the Borrowers nor the realization by
the Agent on such pledge, will create a default 

 58
 

under any Real
Estate Lease under which the Borrowers or any of their Subsidiaries is
presently a lessee or sublessee, which is likely to have a materially adverse
effect on the business or financial condition of the Borrowers and their
Subsidiaries, taken as a whole.

8.26        Foreign
Assets Control Regulations.  None of the requesting or borrowing of the
Loans, the requesting or issuance, extension or renewal of any Letters of
Credit or the use of the proceeds of any thereof will violate the Trading With
the Enemy Act (50 U.S.C. § 1 et seq., as amended) (the “Trading With the Enemy Act”) or any of the foreign assets control
regulations of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V, as amended) (the “Foreign Assets
Control Regulations”) or any enabling legislation or executive order
relating thereto (which for the avoidance of doubt shall include, but shall not
be limited to (a) Executive Order 13224 of September 21, 2001 Blocking Property
and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
Support Terrorism (66 Fed. Reg. 49079 (2001)) (the “Executive Order”) and (b) the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001 (Public Law 107-56)).  Furthermore,
neither the Borrower nor any of its Subsidiaries or other Affiliates (a) is or
will become a “blocked person” as described in the Executive Order, the Trading
With the Enemy Act or the Foreign Assets Control Regulations or (b) engages or
will engage in any dealings or transactions, or be otherwise associated, with
any such “blocked person”.

9.             AFFIRMATIVE
COVENANTS.

Each of the Borrowers covenants and agrees that, so
long as any Loan, Unpaid Reimbursement Obligation, Letter of Credit or Note is
Outstanding or any Lender has any obligation to make any Loans or the Agent has
any obligation to issue, extend or renew any Letters of Credit:

9.1          Punctual
Payment.  The Borrowers will duly and punctually pay or
cause to be paid the principal and interest on the Loans, all Reimbursement
Obligations, the Letter of Credit Fees, the commitment fees and all other fees
or other amounts provided for in this Credit Agreement and the other Loan
Documents to which any of the Borrowers or their Subsidiaries is a party, all
in accordance with the terms of this Credit Agreement and such other Loan
Documents.

9.2          Maintenance
of Office.  Each of the Borrowers will maintain its chief
executive office at the location identified in the Perfection Certificate
delivered by it pursuant to the Security Agreement, or at such other place in
the United States of America as such Borrower shall designate upon written notice
to the Agent, where notices, presentations and demands to or upon such Borrower
in respect of the Loan Documents to which such Borrower is a party may be given
or made.

9.3          Records
and Accounts.  Each of the Borrowers will (i) keep, and
cause each of its Subsidiaries to keep, true and accurate records and books of
account in which full, true and correct entries will be made in accordance with
generally accepted accounting principles, (ii) maintain adequate accounts and
reserves for all taxes (including income taxes), depreciation, depletion,
obsolescence and amortization of its properties and the properties of its
Subsidiaries, contingencies, and other reserves, and (iii) at all times engage
Ernst & Young L.L.P. or other 

 59
 

independent
nationally recognized certified public accountants reasonably satisfactory to
the Agent as the independent certified public accountants of the Borrowers and
their Subsidiaries and will not permit more than thirty (30) days to elapse
between the cessation of such firm’s (or any successor firm’s) engagement as
the independent certified public accountants of the Borrowers and their
Subsidiaries and the appointment in such capacity of a successor firm as shall
be reasonably satisfactory to the Agent.

9.4          Financial
Statements, Certificates and Information.  The Borrowers will
deliver to each of the Lenders:

(a)           as
soon as practicable, but in any event not later than ninety (90) days after the
end of each fiscal year of the Borrowers and their Subsidiaries, the
consolidated balance sheet of the Borrowers and their Subsidiaries, as at the
end of such year, and the related consolidated statement of income and
consolidated statement of cash flow for such year, each setting forth in
comparative form the figures for the previous fiscal year and the projections
from the current fiscal year and all such consolidated statements to be in
reasonable detail, prepared in accordance with generally accepted accounting
principles, and certified without qualification and without an expression of uncertainty
as to the ability of any Borrower and any of their Subsidiaries to continue as
a going concern, by Ernst & Young L.L.P. or by other independent nationally
recognized certified public accountants reasonably satisfactory to the Agent,
together with a written statement from such accountants to the effect that they
have read a copy of this Credit Agreement, and that, in making the examination
necessary to said certification, they have obtained no knowledge of any Default
or Event of Default, or, if such accountants shall have obtained knowledge of
any then existing Default or Event of Default they shall disclose in such
statement any such Default or Event of Default; provided that such
accountants shall not be liable to the Lenders for failure to obtain knowledge
of any Default or Event of Default;

(b)           as
soon as practicable, but in any event not later than forty-five (45) days after
the end of each of the fiscal quarters of the Borrowers and their Subsidiaries,
copies of the unaudited consolidated balance sheet of the Borrowers and their
Subsidiaries as at the end of such quarter, and the related consolidated
statement of income and consolidated statement of cash flow for such fiscal
quarter and the portion of the such Persons’ fiscal year then elapsed, setting
forth in each case in comparative form the figures for the corresponding period
or periods of (or, in the case of the balance sheet as of the end of) the
previous fiscal year and the comparisons to the projections for such period,
all in reasonable detail and prepared in accordance with generally accepted
accounting principles, together with a certification by the principal financial
or accounting officer of the Borrowers that the information contained in such
financial statements fairly presents the financial position of the Borrowers
and their Subsidiaries on the date thereof (subject to year-end adjustments);

(c)           as
soon as practicable, but in any event within thirty (30) days after the end of
each month in each fiscal year of the Borrowers and their Subsidiaries,
unaudited monthly consolidated financial statements of the Borrowers and their
Subsidiaries for such month and the portion of the Borrowers’ fiscal year then
ending setting forth in each 

 60
 

case in comparative form the figures for the corresponding period or
periods of (or, in the case of the balance sheet, as of the end of) the
previous fiscal year and the projections for such period, each prepared in
accordance with generally accepted accounting principles, together with a
certification by the principal financial or accounting officer of the Borrowers
that the information contained in such financial statements fairly presents the
financial condition of the Borrowers and their Subsidiaries on the date thereof
(subject to year-end adjustments);

(d)           as
soon as practicable, but in any event not (i) later than thirty (30) days after
the end of each month in each fiscal year of the Borrowers and their
Subsidiaries sales and Consolidated EBITDA statements on an individual
Store-by-Store basis for each Store operated by a Borrower or a Borrower’s
Subsidiary and comparing such amounts to the previous fiscal year period, and
(ii) forty-five (45) days after the end of each of the fiscal quarters of the
Borrowers and their Subsidiaries sales and Consolidated EBITDA statements on an
individual Store-by-Store basis for each Store operated by a Borrower or a
Borrower’s Subsidiary and comparing such amounts to the previous fiscal year
period, all such statements to be in a form satisfactory to the Majority Lenders;

(e)           simultaneously
with the delivery of the financial statements referred to in subsections (a)
and (b) above, a statement certified by the principal financial or accounting
officer of the Borrowers (and in the case of delivery of the financial statements
referred to in subsection (a) above, the accountants of the Borrowers), in
substantially the form of Exhibit C hereto (a “Compliance
Certificate”) and setting forth in reasonable detail computations
evidencing compliance with the covenants contained in §11 and (if applicable)
reconciliations to reflect changes in generally accepted accounting principles
since the Balance Sheet Date;

(f)            promptly
after the filing or mailing thereof, copies of all material of a financial
nature filed with the Securities and Exchange Commission or sent to the
stockholders of the Borrowers;

(g)           within
forty-five (45) days after the beginning of each fiscal year of the Borrowers
and from time to time upon request of the Agent (but not more frequently than
annually so long as no Default or Event of Default is continuing), projections
of the Borrowers and their Subsidiaries broken down for the next fiscal year on
a month by month and quarter by quarter basis updating those projections and
budgets delivered to the Lenders and referred to in §8.4.3 or, if applicable,
updating any later such projections delivered in response to a request pursuant
to this §9.4(g);

(h)           all
information sent to the directors of any Borrower regarding the opening of new
Stores;

(i)            all
notices and other information sent to any holder of any obligations under the
Senior Secured Debt Documents and Unsecured Term Loan Documents in its capacity
as such;

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(j)            on
or before Wednesday of each week, a thirteen week rolling cash flow forecast in
form satisfactory to the Agent which shall detail all sources and uses of cash
on a weekly basis and shall report any variances from the prior week, and which
shall be reforecast in its entirety as of the end of each month (the “Weekly
Cash Flow Projection”); and

(k)           from
time to time such other financial data and information (including accountants’
management letters) as the Agent or any Lender may reasonably request.

9.5          Notices.

9.5.1       Defaults.  Each of the Borrowers will promptly notify
the Agent in writing of the occurrence of any Default or Event of Default.  If any Person shall give any notice or take
any other action in respect of a claimed default (whether or not constituting
an Event of Default) under this Credit Agreement or any other note, evidence of
Indebtedness, indenture or other such obligation to which or with respect to
which any of the Borrowers or their Subsidiaries is a party or obligor in
excess of $1,000,000, whether as principal, guarantor, surety or otherwise, the
Borrowers shall forthwith give written notice thereof to the Agent, describing
the notice or action and the nature of the claimed default.

9.5.2       Environmental
Events.  Each of the
Borrowers will promptly give notice to the Agent (a) of any violation of any
Environmental Law that any of the Borrowers or their Subsidiaries reports in
writing to, or is required by Environmental Law to report (or for which any
written report supplemental to any oral report is made) to, any federal, state
or local environmental agency, and (b) upon becoming aware thereof, of any
inquiry, proceeding, investigation, or other action, including a notice from
any agency of potential environmental liability, of any federal, state or local
environmental agency or board, that has the potential to have a Materially Adverse
Effect, or have a materially adverse effect on the Agent’s mortgages, deeds of
trust or security interests pursuant to the Security Documents.

9.5.3       Notification
of Claim against Collateral. 
Each of the Borrowers will, immediately upon becoming aware thereof,
notify the Agent in writing of any setoff, claim (including, with respect to
the Real Estate, environmental claims), withholding or other defense to which
any of the Collateral having a value in excess of $500,000, or the Agent’s
rights with respect to the Collateral, are subject.

9.5.4       Notice of
Litigation and Judgments. 
Each of the Borrowers will, and will cause each of its Subsidiaries to,
give notice to the Agent in writing within fifteen (15) days of becoming aware
of any litigation or proceedings threatened in writing or any significant
development in any pending litigation and proceedings affecting the Borrowers
or any of their Subsidiaries or to which any of the Borrowers or their
Subsidiaries is or becomes a party involving an uninsured claim against any of
the Borrowers or their Subsidiaries that could reasonably be expected to have a
materially adverse effect on the Borrowers and their Subsidiaries and stating
the nature and status of such litigation or proceedings.  Each of the Borrowers will, and will cause
each of its 

 62
 

Subsidiaries to, give notice to the Agent, in writing, in form and
detail satisfactory to the Agent, within ten (10) days of any judgment not
covered by insurance, final or otherwise, against any of the Borrowers or their
Subsidiaries in an amount in excess of $500,000.

9.5.5       Notice of
Franchise Agreements. 
Each of the Borrowers will, and will cause each of its Subsidiaries to,
give notice to the Agent in writing of any such Person entering into, or
modifying any material provisions relating to compensation, term or advertising
requirements under any franchise agreement with any franchisee simultaneously
with the delivery of the financial statements referred to in §9.4(c) but in any
event no later than one month after such event.

9.5.6       Notice of
Bank Accounts.  Each of
the Borrowers will, and will cause each of its Subsidiaries to, give notice to
the Agent in writing of any such Person creating or opening any additional bank
accounts simultaneously with the delivery of the financial statements referred
to in § 9.4(c) but in any event no later than one month after the opening of
such account.  In such event, the Agent
is hereby authorized by the parties hereto to amend Schedule 8.22 to
include each such new bank account.

9.5.7       Notice of Real Estate.  Without prejudice to §9.13, each of the
Borrowers will, and will cause each of its Subsidiaries to, give notice to the
Agent in writing of any such Person acquiring any additional owned or leased
Real Estate simultaneously with the delivery of the financial statements
referred to in § 9.4(c) but in any event no later than one month after such
acquisition.  In such event, the Agent is
hereby authorized by the parties hereto to amend Schedule 8.3 to include
each such additional Real Estate.

9.6          Corporate
Existence; Maintenance of Properties.  Each of the Borrowers will do or cause to be
done all things necessary to preserve and keep in full force and effect its
corporate existence and rights and those of its Subsidiaries and will not, and
will not cause or permit any of its Subsidiaries to, convert to a limited
liability company.  It (i) will cause all
of its properties and those of its Subsidiaries used or useful in the conduct
of its business or the business of its Subsidiaries to be maintained and kept
in good condition, repair and working order and supplied with all necessary
equipment, (ii) will cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of
such Borrower may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times, and (iii)
will, and will cause each of its Subsidiaries to, continue to engage primarily
in the businesses now conducted by them and in related businesses; provided
that nothing in this §9.6 shall prevent any of the Borrowers from discontinuing
the operation and maintenance of any of its properties or any of those of its
Subsidiaries if such discontinuance is, in the judgment of such Borrower,
desirable in the conduct of its or their business and that do not in the
aggregate materially adversely affect the business of the Borrowers and their
Subsidiaries on a consolidated basis.

9.7          Insurance.

9.7.1       Required
Insurance.  Each of the
Borrowers will, and will cause each of its Subsidiaries to, maintain with
financially sound and reputable insurers insurance with respect to its
properties and business against such casualties and contingencies as shall be 

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in accordance with the general practices of businesses engaged in
similar activities in similar geographic areas and in amounts, containing such
terms, in such forms and for such periods as may be reasonable and
prudent.  Without limiting the foregoing,
(a) such insurance shall be in such minimum amounts that such Person will not
be deemed a co-insurer under applicable insurance laws, regulations and
policies and otherwise shall be in such amounts, contain such terms, be in such
forms and be for such periods as may be reasonably satisfactory to the Agent,
(b) all such insurance shall be payable to the Agent as loss payee under a “standard”
or “New York” loss payee clause for the benefit of the Lenders and the Agent
(c) each such Person will (i) keep all of its physical property insured with
casualty or physical hazard insurance on an “all risks” basis, with broad form
flood and earthquake coverages and electronic data processing coverage, with a
full replacement cost endorsement and an “agreed amount” clause in an amount
equal to 100% of the full replacement cost of such property, with deductibles
equal to those generally maintained by businesses engaged in similar activities
in similar geographic areas, subject to aggregate sublimits for flood and
earthquake equal to those generally maintained by businesses engaged in similar
activities in similar geographic areas, (ii) maintain all such workers’
compensation or similar insurance as may be required by law and (iii) maintain,
in amountsand with deductibles
and “stop loss” provisions equal to those generally maintained by businesses
engaged in similar activities in similar geographic areas, general public
liability insurance against claims of bodily injury, death or property damage
occurring, on, in or about the properties of such Person; business interruption
insurance; and product liability insurance. 
Each of the Borrowers will, and will cause each of its Subsidiaries to,
maintain insurance on the Mortgaged Properties in accordance with the terms of
the Mortgages.

9.7.2       Insurance
Proceeds.  The proceeds of
any casualty insurance in respect of any casualty loss of any of the Collateral
shall, subject to the rights, if any, of other parties with a prior interest in
the property covered thereby, (i) so long as no Event of Default has occurred
and is continuing and to the extent that the amount of such proceeds is less
than $1,000,000, be disbursed to the applicable Borrower for reinvestment in
such Borrower’s business and (ii) in all other circumstances, be held by the
Agent as cash collateral for the Obligations. 
The Agent may, so long as no Event of Default has occurred and is
continuing, disburse from time to time all or any part of such proceeds so held
as cash collateral, upon such terms and conditions as the Agent may reasonably
prescribe, for direct application by such Borrower solely to the repair or
replacement of such Borrower’s property so damaged or destroyed or other
reinvestment in the Borrowers’ business. 
In the event that such proceeds have not been reinvested in the Borrowers’
business with two hundred and seventy (270) days after the earlier to occur of
receipt thereof by the Borrowers or receipt thereof by the Agent, the Agent
shall apply all or any part of such proceeds to the Obligations.

9.7.3       Notice of
Cancellation.  All
policies of insurance shall provide for at least 30 days prior written
cancellation notice to the Agent.  In the
event of failure by any Borrower to provide and maintain insurance as herein
provided, the Agent may, at its option, provide such insurance and charge the
amount thereof to such Borrower.  Each
Borrower shall furnish the Agent with certificates of insurance and policies
evidencing compliance with the foregoing insurance provision.

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9.8          Taxes. 
Each of the Borrowers will, and will cause each of its Subsidiaries to,
duly pay and discharge, or cause to be paid and discharged, before the same
shall become overdue, all taxes, assessments and other governmental charges
imposed upon it and its real properties, sales and activities, or any part thereof,
or upon the income or profits therefrom, as well as all claims for labor,
materials, or supplies that if unpaid might by law become a lien or charge upon
any of its property; provided that any such tax, assessment, charge, levy or
claim need not be paid if the validity or amount thereof shall currently be
contested in good faith by appropriate proceedings and if such Borrower or such
Subsidiary shall have set aside on its books adequate reserves with respect
thereto; and provided further that each of the Borrowers and their Subsidiaries
will pay all such taxes, assessments, charges, levies or claims forthwith upon
the commencement of proceedings to foreclose any lien that may have attached as
security therefor.

9.9          Inspection
of Properties and Books, etc.

9.9.1       General.  Each of the Borrowers shall permit the
Lenders, if accompanied by the Agent, to visit and inspect any of the
properties of any of the Borrowers or their Subsidiaries, to examine the books
of account of the Borrowers and their Subsidiaries (and to make copies thereof
and extracts therefrom), and shall permit the Lenders to discuss the affairs,
finances and accounts of the Borrowers and their Subsidiaries with, and to be
advised as to the same by, its and their officers, all at such reasonable times
and intervals as the Agent or any Lender may reasonably request, provided
that any such visits shall occur no more frequently than twice per year if no
Event of Default has occurred and is continuing.  The Agent shall notify the Lenders of any such
visit or inspection by the Agent, and the Lenders shall have the right to
participate therein.

9.9.2       Environmental
Assessments.  If the Agent
reasonably suspects that an Event of Default has occurred and is continuing,
the Agent may, from time to time, in its discretion for the purpose of
assessing and ensuring the value of any Mortgaged Property, obtain one or more
environmental assessments or audits of such Mortgaged Property prepared by a
hydrogeologist, an independent engineer or other qualified consultant or expert
approved by the Agent to evaluate or confirm (a) whether any Hazardous
Substances are present in the soil or water at such Mortgaged Property in
violation of Environmental Laws and (b) whether the use and operation of such
Mortgaged Property complies with all Environmental Laws.  Such environmental assessments or audits
shall be conducted, to the extent reasonably practicable, in a manner that does
not unreasonably interfere with the Borrowers’ or their Subsidiaries’ use of
the Mortgaged Property.  The Agent’s
right to conduct such environmental assessment or audit shall be subject to all
related restrictions in any applicable lease. 
Environmental assessments may include without limitation detailed visual
inspections of such Mortgaged Property including any and all storage areas,
storage tanks, drains, dry wells and leaching areas, and the taking of soil
samples, surface water samples and ground water samples, as well as such other
investigations or analyses as the Agent deems reasonably appropriate.  All such environmental assessments shall be
conducted and made at the expense of the Borrowers.

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9.9.3       Communications
with Accountants.  Each of
the Borrowers authorizes the Lenders, if accompanied by the Agent, to
communicate directly with the Borrowers’ independent certified public
accountants and authorizes such accountants to disclose to the Agent any and
all financial statements and other supporting financial documents and schedules
including copies of any management letter with respect to the business,
financial condition and other affairs of any of the Borrowers or their
Subsidiaries.  At the request of the
Agent, the Borrowers shall deliver a letter addressed to such accountants
instructing them to comply with the provisions of this §9.9.3.

9.10        Compliance
with Laws, Contracts, Licenses, and Permits.  Each of the Borrowers
will, and will cause each of its Subsidiaries to, comply in all material
respects with (a) the applicable laws and regulations wherever its business is
conducted, including all Environmental Laws, (b) the provisions of its charter
documents and by-laws, (c) all agreements and instruments by which it or any of
its properties may be bound and (d) all applicable decrees, orders, and
judgments.  If any authorization,
consent, approval, permit or license from any officer, agency or
instrumentality of any government shall become necessary or required in order
that any of the Borrowers or their Subsidiaries may fulfill any of its
obligations hereunder or any of the other Loan Documents to which such Borrower
or such Subsidiary is a party, such Borrower will, or (as the case may be) will
cause such Subsidiary to, immediately take or cause to be taken all reasonable
steps within the power of such Borrower or such Subsidiary to obtain such
authorization, consent, approval, permit or license and furnish the Agent and
the Lenders with evidence thereof. 
Without limiting the foregoing, each of the Borrowers will, and will
cause each of its Subsidiaries to, obtain any and all approvals by any federal,
state or local liquor authority necessary for the continued operation at all
times of any Store operated by any of the Borrowers or their Subsidiaries with
full liquor service unless the failure to obtain such approvals would not have
a Materially Adverse Effect.

9.11        Employee
Benefit Plans.  The Borrowers will (i) promptly upon filing
the same with the Department of Labor or Internal Revenue Service and upon
request of the Agent, furnish to the Agent a copy of the most recent actuarial
statement required to be submitted under §103(d) of ERISA and Annual Report,
Form 5500, with all required attachments, in respect of each Guaranteed Pension
Plan and (ii) promptly upon receipt or dispatch by the Borrowers or any ERISA
affiliate, furnish to the Agent any notice, report or demand sent or received
in respect of a Guaranteed Pension Plan under §§302, 4041, 4042, 4043, 4063,
4065, 4066 and 4068 of ERISA, or in respect of a Multiemployer Plan, under
§§4041A, 4202, 4219, 4242, or 4245 of ERISA.

9.12        Use
of Proceeds.  The Borrowers will use the proceeds of the
Loans and the Letters of Credit for the purposes described in §8.15.1, and none
other.

9.13        Additional
Mortgaged Property; Notice of Leases.

(a)           If,
after the Closing Date, any of the Borrowers or their Subsidiaries acquires
real estate, such Borrower shall, or shall cause such Subsidiary to deliver
forthwith to the Agent for the benefit of the Lenders and the Agent a fully
executed valid and enforceable first priority mortgage or deed of trust over such
acquired real estate free and clear of all defects and encumbrances except for
Permitted Liens.

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(b)           If,
after the Closing Date, any of the Borrowers or their Subsidiaries intends to
leasefor a term in excess of five (5) years
real estate, such Borrower shall use reasonable best efforts to ensure that
such lease permits the Agent to obtain a first priority leasehold mortgage over
such leased real estate.  Upon the
execution of such lease such Borrower or such Subsidiary shall promptly deliver
to the Agent a copy of such lease, and, to the extent permitted by the
applicable lease, such Borrower or such Subsidiary shall deliver forthwith to
the Agent for the benefit of the Lenders and the Agent a fully executed, valid
and enforceable first priority leasehold mortgage over such leased real estate,
free and clear of all defects and encumbrances except for Permitted Liens.

(c)           Each
such mortgage, leasehold mortgage or deed of trust referred to in §9.13(a) and
§9.13(b) shall be in form and substance satisfactory to the Agent, together
with title insurance policies, surveys, evidences of insurances with the Agent
named as loss payee and additional insured, legal opinions and other documents
and certificates with respect to such real estate (such policies, surveys,
evidence of insurance, opinions and other documents and certificates referred
to in this §9.13 as “Real Estate Documentation”) as was required for
Real Estate of the Borrowers as of the Closing Date or as otherwise required by
the Agent.

(d)           If,
after the Closing Date, any of the Borrowers or their Subsidiaries leases real
estate or any lease of Real Estate is extended or otherwise modified in any
respect, the applicable Borrower shall, or shall cause the applicable
Subsidiary to, use its best efforts to cause the relevant lessor to execute and
deliver a notice of lease (to the extent that a notice of lease is not already
recorded in respect of such lease) in form meeting all statutory and recording
requirements of the jurisdiction in which the relevant real property is
located.

9.14        Further
Assurances.  Each of the Borrowers will, and will cause
each of its Subsidiaries to, cooperate with the Lenders and the Agent and
execute such further instruments and documents as the Lenders or the Agent
shall reasonably request to carry out to their satisfaction the transactions
contemplated by this Credit Agreement and the other Loan Documents.  Upon receipt of an affidavit of any officer
of any Lender as to the loss, theft, destruction or mutilation of the any Note or
other Loan Document, the Borrowers will issue, in lieu thereof, a replacement
Note or other Loan Document in the same principal amount thereof and otherwise
of like tenor.

9.15        Conduct
of Business; Stores.  Each of the Borrowers will, and will cause
its Subsidiaries to, continue to engage only in the business of owning and
operating casual dining restaurants and in businesses and activities closely
related thereto.  The Borrowers shall
inform the Agent of any new Store locations simultaneously with the delivery of
the financial statements referred to in §9.4(c) but in any event no later than
one month after the opening of a new Store location and the entering into a
lease for, or the acquisition of, the premises for a new Store.

9.16        Additional
Mortgages Post Default.  If at any time an Event of Default has
occurred and is continuing, each of the Borrowers will, and will cause each of
its Subsidiaries to, cooperate with the Lenders and the Agent to take all
actions of the kind described in Section 9.13 

 67
 

with respect to
each parcel of Real Estate which it owns or leases and for which the Agent has
not previously been granted a Mortgage.

9.17        Bank
Accounts.  On or prior to the Closing Date, each of the
Borrowers will, and will cause each of its Subsidiaries to cause all cash
receipts, checks and cash proceeds of accounts receivable and other Collateral
of the Borrowers and their Subsidiaries to be deposited only into (x)
depository accounts with financial institutions that have entered into agency
account agreements in a form satisfactory to the Agent (such agency account
agreements referred to herein as “Agency Account Agreements” and such
depository accounts with financial institutions that have entered into such
Agency Account Agreements referred to herein as “Agency Accounts”), (y)
the Concentration Accounts or (z) deposit accounts number 686365909 and number
628376030 each maintained at JPMorgan Chase Bank, National Association and
deposit account number 3084386826 maintained at Washington Mutual Bank, NA that
are not Agency Accounts (each an “Excluded Account”) as long as all
funds in (A) each Excluded Account maintained at JPMorgan Chase Bank, National
Association in excess of $3,000 and (B) the Excluded Account maintained at
Washington Mutual Bank, NA in excess of $8,000 are transferred to the
Concentration Accounts on a daily basis on each Business Day.  The Agency Account Agreements shall provide
that at any time following the occurrence of a Default or an Event of Default,
the Agent shall be entitled to direct the financial institutions party thereto
to cause all funds of the Borrowers and their Subsidiaries held in the Agency
Accounts at such financial institutions to be transferred immediately and at
any time thereafter to the Agent to be applied to the Obligations or held as
Collateral, as the Agent deems appropriate. 
The Borrowers shall cause (a) all cash receipts and checks in excess of
$50,000 at each Store to be deposited into an Agency Account, a Concentration
Account or, subject to the satisfaction of conditions set forth in clause (z)
above, an Excluded Account, on at least two separate Business Days during each
week (a “week,” for the purposes of this §9.17, being deemed to begin at the
beginning of each Monday and end at the end of the following Friday) and (b)
all funds in (A) each Agency Account or any other account of the Borrowers or
their Subsidiaries (other than Excluded Accounts) in excess of $2,000, (B) each
Excluded Account maintained at JPMorgan Chase Bank, National Association in excess
of $3,000 and (C) the Excluded Account maintained at Washington Mutual Bank, NA
in excess of $8,000 to be transferred to the Concentration Accounts on a daily
basis on each Business Day.  The
Borrowers shall at all times maintain a Concentration Account with a financial
institution that has entered into an Agency Account Agreement with the Agent
and the Borrowers that is in all respects satisfactory to the Agent.  Notwithstanding the foregoing to the
contrary, (i) Chevys may maintain deposit account number 3039022607 at Union
Bank of California that is not an Agency Account as long as (A) the balance of
funds on deposit in such account shall not exceed $50,000 at any time and (B)
such deposit account and such funds on deposit therein are pledged as security
to the California State Board of Equalization and (ii) Chevys may maintain
deposit account number 8759883641 at Wells Fargo Bank that is not an Agency
Account as long as (A) the balance of funds on deposit in such account shall
not exceed $169,000 plus any interest accrued thereon at any time and (B) such
deposit account and such funds on deposit therein are pledged as security to
the Nevada Department of Taxation.

9.18        New
Subsidiaries; Ownership of Borrowers by Real Mex.

 

 68
 

(a)           Any
new Subsidiary of any Borrower created or acquired shall become a Borrower
hereunder and become a party to the Security Documents by (i) signing a joinder
agreement, (ii) signing allonges to the Revolving Credit Notes in form and
substance satisfactory to the Agent, and (iii) providing such other
documentation as the Agent may reasonably request, including, without
limitation, amendments to the Stock Pledge Agreement or new pledge agreements
in substantially the same form, mortgages or deeds of trust required by §9.13
above, Uniform Commercial Code searches and filings, legal opinions and
corporate authorization documentation with respect to such new Subsidiary and
other documentation with respect to the conditions specified in §12 hereof, and
100% of the equity interests and assets of each such new Subsidiary shall be
pledged to the Agent for the benefit of the Lenders and the Agent.  In such event, the Agent is hereby authorized
by the parties hereto to amend Schedule 8.18 to include each such
new Subsidiary.

(b)           Real
Mex shall at all times directly or indirectly through a Subsidiary own all of
the shares, interests or units of Equity Interests of each of the Borrowers,
and such shares, interests or units shall at all times be pledged to the Agent
pursuant to Stock Pledge Agreement or other pledge agreements in substantially
the same form entered into from time to time by Subsidiaries of the Borrowers
which are the direct owners of such Equity Interests of any Borrower.

10.          CERTAIN NEGATIVE
COVENANTS.

Each of the Borrowers covenants and agrees that, so
long as any Loan, Unpaid Reimbursement Obligation, Letter of Credit or Note is
Outstanding or any Lender has any obligation to make any Loans or the Agent has
any obligations to issue, extend or renew any Letters of Credit:

10.1        Restrictions
on Indebtedness.  None of the Borrowers will, and none will
permit any of its Subsidiaries to, create, incur, assume, guarantee or be or
remain liable, contingently or otherwise, with respect to any Indebtedness
other than:

(a)           Indebtedness
to the Lenders and the Agent arising under any of the Loan Documents;

(b)           endorsements
for collection, deposit or negotiation and warranties of products or services,
in each case incurred in the ordinary course of business;

(c)           Indebtedness
of such Borrower or such Subsidiary in respect of Rate Protection Agreements
entered into in order to hedge interest rate fluctuations on Indebtedness for
borrowed money of the Borrowers or their Subsidiaries and not for speculative
purposes;

(d)           Indebtedness
incurred in connection with the acquisition after the date hereof of any real
or personal property by such Borrower or such Subsidiary or under any
Capitalized Lease, provided that the aggregate principal amount of such
Indebtedness of the Borrowers and their Subsidiaries outstanding at any time
shall not exceed the aggregate amount of $5,000,000 and provided, further,
that no Default or Event of 

 69
 

Default shall exist (i) prior to the incurrence of such Indebtedness or
(ii) as a result of the incurrence of such Indebtedness; and provided further
that the outstanding principal amount of the promissory note dated March 22,
2000 in the original principal amount of $1,000,000 made by Chevys, Inc. (and
assumed by Chevys Restaurants, LLC) in favor of General Electric Capital Business
Asset Funding Corporation shall constitute Indebtedness incurred under this
clause (d) and shall reduce amounts available hereunder by such amount;

(e)           Indebtedness
of one Borrower to another then existing Borrower; provided that all
such intercompany Indebtedness permitted by this §10.1(e), and all instruments
evidencing any thereof, shall be pledged and delivered to the Agent, for the
benefit of the Lenders and the Agent, as security for the Obligations pursuant
to the provisions of the applicable Security Documents, and the Agent shall
have a first priority perfected lien and security interest therein; and provided,
further, that all such intercompany Indebtedness shall be subordinated
to the Obligations on terms satisfactory to the Agent;

(f)            Indebtedness
existing on the date hereof and listed and described on Schedule 10.1
hereto and any refinancings thereof not to exceed such original principal
amount and on terms and conditions substantially similar thereto;

(g)           Indebtedness
in an original principal amount not in excess of $105,000,000 evidenced by the
Senior Secured Debt Documents;

(h)           Indebtedness
consisting of contingent obligations of any Borrower or any of its Subsidiaries
to repurchase or otherwise redeem capital stock of a Borrower from former
employees of the Borrowers and their Subsidiaries pursuant to the terms of
employee stock ownership employee stock option or other employee compensation
plans of the Borrowers and their Subsidiaries and matured obligations to
repurchase or otherwise redeem such stock to the extent such repurchase or
redemption is permitted under §10.4(c);

(i)            Indebtedness
consisting of any Borrower or any of its Subsidiaries guarantying the
Indebtedness of another Borrower so long as such Indebtedness is otherwise permitted
hereunder;

(j)            other
Indebtedness in an aggregate principal amount at any time outstanding not to
exceed $500,000; provided that no Event of Default shall exist (i) prior
to the incurrence of such Indebtedness or (ii) as a result of the incurrence of
such Indebtedness; provided further that such limitation shall be increased up
to an amount not to exceed $3,000,000 in the aggregate (i) if the Leverage
Ratio is less than 3.50:1 for two consecutive fiscal quarters, as set forth in
the most recent Compliance Certificate delivered pursuant to § 9.4(e) hereof,
and (ii) to the extent that, after giving effect to such additional
Indebtedness, the Leverage Ratio would not exceed 3.50:1; and

(k)           Indebtedness
in an original principal amount not in excess of $65,000,000 evidenced by the
Unsecured Term Loan Documents and any Permitted Subordinated Refinancing (as
defined in the Intercreditor Agreement (Unsecured Term Loan)) thereof.

 70
 

10.2        Restrictions
on Liens.  None of the Borrowers will, and none will
permit any of its Subsidiaries to, (i) create or incur or suffer to be created
or incurred or to exist any lien, encumbrance, mortgage, pledge, charge,
restriction or other security interest of any kind upon any of its property or
assets of any character whether now owned or hereafter acquired, or upon the
income or profits therefrom; (ii) transfer any of such property or assets or
the income or profits therefrom for the purpose of subjecting the same to the
payment of Indebtedness or performance of any other obligation in priority to
payment of its general creditors; (iii) acquire, or agree or have an option to
acquire, any property or assets upon conditional sale or other title retention
or purchase money security agreement, device or arrangement; (iv) suffer to exist
for a period of more than thirty (30) days after the same shall have been
incurred any Indebtedness or claim or demand against it that if unpaid might by
law or upon bankruptcy or insolvency, or otherwise, be given any priority
whatsoever over its general creditors; (v) sell, assign, pledge or otherwise
transfer any “receivables” as defined in clause (vii) of the definition of the
term “Indebtedness,” with or without recourse; or (vi) enter into or permit to
exist any arrangement or agreement, enforceable under applicable law, which
directly or indirectly prohibits any Borrower or any of its Subsidiaries from
creating or incurring any lien, encumbrance, mortgage, pledge, charge,
restriction or other security interest other than (1) the restrictions under the
Loan Documents in favor of the Agent for the benefit of the Lenders and the
Agent, (2) the restrictions under the Senior Debt Documents as in effect on the
Closing Date and as amended to the extent permitted by §10.13, and (3)
customary anti-assignment provisions in leases and licensing agreements entered
into by such Borrower or such Subsidiary in the ordinary course of its
business, provided that any of the Borrowers or their Subsidiaries may
create or incur or suffer to be created or incurred or to exist:

(a)           liens
to secure taxes, assessments and other government charges in respect of
obligations not overdue or liens on properties to secure claims for labor,
material or supplies in respect of obligations not overdue or which are being
contested in good faith and for which an adequate reserve or other appropriate
provisions shall have been made to the extent required by generally accepted
accounting principles;

(b)           deposits
or pledges made in connection with, or to secure payment of, workmen’s
compensation, unemployment insurance, old age pensions or other social security
obligations;

(c)           liens
in respect of judgments or awards that have been in force for less than the
applicable period for taking an appeal so long as execution is not levied
thereunder or in respect of which such Borrower or such Subsidiary shall at the
time in good faith be prosecuting an appeal or proceedings for review and in
respect of which a stay of execution shall have been obtained pending such
appeal or review;

(d)           liens
of carriers, warehousemen, mechanics and materialmen, and other like liens in
existence less than 120 days from the date of creation thereof in respect of
obligations not overdue or which are being contested in good faith and for
which an adequate reserve or other appropriate provisions shall have been made
to the extent required by generally accepted accounting principles;

 71
 

(e)           encumbrances
on Real Estate other than the Mortgaged Property consisting of easements,
rights of way, zoning restrictions, restrictions on the use of real property
and defects and irregularities in the title thereto, landlord’s or lessor’s
liens under leases or subleases to which any Borrower or a Subsidiary of any
Borrower is a party, and other minor liens or encumbrances none of which in the
opinion of the Borrowers interferes materially with the use of the property
affected in the ordinary conduct of the business of the Borrowers and their
Subsidiaries, which defects do not individually or in the aggregate have a
materially adverse effect on the business of the Borrowers and their
Subsidiaries on a consolidated basis;

(f)            liens
existing on the date hereof and listed and described on Schedule 10.2
hereto;

(g)           purchase
money security interests in or purchase money mortgages on real or personal
property other than Mortgaged Properties acquired after the date hereof to
secure purchase money Indebtedness of the type and amount permitted by
§10.1(d), incurred in connection with the acquisition of such property, which
security interests or mortgages cover only the real or personal property so
acquired;

(h)           other
liens and encumbrances on each Mortgaged Property as and to the extent
permitted by the Mortgage applicable thereto;

(i)            liens
in favor of the Agent for the benefit of the Lenders and the Agent under the
Loan Documents;

(j)            liens
on tenant improvements securing Indebtedness incurred with respect thereto and
which is permitted under §10.1(d) or §10.1(j); and

(k)           liens
created under, or evidenced or governed by, the Senior Secured Debt Documents
securing Indebtedness permitted by §10.1(g) and other Note Obligations (as
defined in the Senior Secured Debt Documents, as in effect on the Closing
Date), so long as such liens are subject to, and subordinated pursuant to, all
of the terms of the Intercreditor Agreement.

10.3        Restrictions
on Investments.  None of the
Borrowers will, and none will permit any of its Subsidiaries to, make or permit
to exist or to remain outstanding any Investment except Investments in:

(a)           marketable
direct or guaranteed obligations of the United States of America that mature
within one (1) year from the date of purchase by such Borrower;

(b)           receivables
owing to a Borrower or any of its Subsidiaries if created or acquired in the
ordinary course of business and payable or dischargeable in accordance with
customary trade terms;

(c)           demand
deposits, certificates of deposit, bankers acceptances and time deposits of
United States banks having total assets in excess of $1,000,000,000;

 72
 

(d)           securities
commonly known as “commercial paper” issued by a corporation organized and
existing under the laws of the United States of America or any state thereof
that at the time of purchase have been rated and the ratings for which are not
less than “P 1” if rated by Moody’s Investors Service, Inc., and not less
than “A 1” if rated by Standard and Poor’s Rating Group;

(e)           Investments
existing on the date hereof and listed on Schedule 10.3 hereto;

(f)            loans,
investments and advances by any Borrower in or to another Borrower to the
extent permitted by §§ 10.1(e) or 10.1(f) and equity investments made by a
Borrower in another Borrower;

(g)           Investments
by the Borrowers and their Subsidiaries in respect of any Rate Protection
Agreement which is permitted by §10.1(c);

(h)           securities
(including debt obligations) received in connection with the bankruptcy or
reorganization of suppliers and customers and in settlement of delinquent
obligations of, and other disputes with, customers and suppliers arising in the
ordinary course of business;

(i)            Investments
consisting of promissory notes received as proceeds of asset dispositions
permitted by §10.5.2, provided that the aggregate value of such promissory
notes received in connection with any such asset disposition shall not exceed
50% of the aggregate value of the proceeds of such asset disposition;

(j)            Investments
consisting of loans and advances to employees for moving, entertainment, travel
and other similar expenses in the ordinary course of business not to exceed
$250,000 in the aggregate at any time outstanding; and

(k)           Investments
consisting of loans and advances to stockholders to finance the purchase by
such stockholder of capital stock of Real Mex;

provided, however, that, with
the exception of demand deposits referred to in §10.3(b) and loans and advances
referred to in §10.3(h), such Investments will be considered Investments
permitted by this §10.3 only if all actions have been taken to the satisfaction
of the Agent to provide to the Agent, for the benefit of the Lenders and the
Agent, a first priority perfected security interest in all of such Investments
free of all encumbrances other than Permitted Liens.

10.4        Restricted
Payments.  None of the Borrowers
will make any Restricted Payments except for the following:

(a)           Distributions
payable by any of the Borrowers to any of the Borrowers;

(b)           cash
payment obligations with respect to interest and costs and expenses on the
Senior Secured Debt to the extent required by the Senior Secured Debt
Documents;

 73
 

(c)           so
long as no Event of Default is then continuing, Distributions in an amount not
to exceed $500,000 per annum and $2,000,000 in the aggregate after March 31,
2004 to be used to repurchase or otherwise redeem capital stock of a Borrower
from former employees of the Borrowers and their Subsidiaries pursuant to the
terms of employee stock ownership, employee stock option or other employee
compensation plans of the Borrowers and their Subsidiaries; provided
that that portion of such Distributions equal to cash payments received by any
Borrower from the subsequent sale of such repurchased or redeemed capital stock
for cash to any employee of the Borrowers and their Subsidiaries at the
commencement of such Person’s employment shall not be deemed to be a
Distribution for purposes of this §10.4(c);

(d)           (i)
reasonable expenses (other than fees and expenses of outside counsel) of Sun
Capital or the other Sun Capital Affiliates (including reasonable travel
expense and outside director fees) in an aggregate amount not to exceed
$150,000 in any fiscal year, (ii) so long as no Default or Event of Default is
continuing, management fees payable to Sun Capital or any other Sun Capital
Affiliate in accordance with the Management Agreement, in an aggregate amount
not to exceed the greater of (x) one percent (1%) of Consolidated EBITDA in any
fiscal year and (y) $500,000, and otherwise in accordance with §10.10 and (iii)
reasonable legal fees and expenses of the Parent (other than legal fees and
expenses and fees and expenses of auditors and accountants incurred in
connection with any litigation relating to or defaults under either this Credit
Agreement or the Parent Debt Documents) in an aggregate amount not to exceed
$500,000.

(e)           cash
payment obligations with respect to interest and costs and expenses on the
Unsecured Term Loan to the extent required by the Unsecured Term Loan Documents
and, so long as (i) no Default or Event of Default is then continuing or would
be caused thereby and (ii) the Outstanding amount of the Revolving Credit Loans
is zero dollars ($0.00), the voluntary and mandatory prepayments of the
Unsecured Term Loan as set forth in §2.4B(i) and (iii) of the Unsecured Credit
Agreement as in effect on the Closing Date. 
If a Default or an Event of Default has occurred and is continuing, the
Borrowers shall not make any prepayments of the Unsecured Term Loan unless
otherwise agreed to in writing by the Agent;

(f)            amounts
payable by the Borrowers or their Subsidiaries to the Sellers arising under the
Merger Agreement in respect of (x) the Post-Closing Ventura Sale Proceeds (as
defined in the Merger Agreement) pursuant to Section 5.13 of the Merger
Agreement in an amount not to exceed $5,000,000 less any amount withheld
pursuant to the Merger Agreement, (y) the amount of any Tax Benefit (as defined
in the Merger Agreement) pursuant to Section 5.12 of the Merger Agreement in an
amount not to exceed $4,000,000 and (z) the amount of any Actual Adjustment (as
defined in the Merger Agreement) (if such amount is a positive number) pursuant
to Section 2.10(e)(i) of the Merger Agreement in an amount not to exceed
$5,000,000 (exclusive of the Purchase Price Escrow Funds (as defined in the
Merger Agreement)); and

 74
 

(g)           Restricted
Payments consisting of the release to Sellers of all or any portion of the
Purchase Price Escrow Funds (as defined in the Merger Agreement) pursuant to
the terms of the Merger Agreement and the Escrow Agreement.

10.5        Mergers
and Consolidations, Dispositions of Assets, Acquisitions.

10.5.1     Mergers
and Consolidations. 
Subject to §10.5.3, none of the Borrowers will, and none will permit any
of its Subsidiaries to, become a party to any merger or consolidation except
the merger or consolidation of one or more of the Subsidiaries of any Borrower
with and into any Borrower, or the merger or consolidation of two or more
Subsidiaries of any Borrower.

10.5.2     Dispositions
of Assets.  None of the
Borrowers will, and none will permit any of its Subsidiaries to, become a party
to or agree to or effect any disposition of any assets, other than (a) the sale
of inventory and the disposition of obsolete assets, in each case, in the
ordinary course of business consistent with past practices, (b) Sale-Leaseback
transactions permitted pursuant to §10.6, (c) the sale of up to five (5)
Unprofitable Stores in any year and (d) the sale of the Ventura Property.  Nothing in this §10.5.2 is intended to
prohibit any Borrower or any of the Borrowers’ Subsidiaries from conditionally
agreeing to dispose of any assets subject to the prior approval of the Majority
Lenders (or all of the Lenders in the case of the sale of all or substantially
all of the Collateral) if such Borrower or Subsidiary will not be subject to
any penalties in connection with such agreement in the event that the Majority
Lenders (or all of the Lenders, as the case may require) do not consent to such
disposition. The Agent may release any Collateral disposed of by any Borrower
or any Subsidiary of any Borrower if such disposition is in compliance with
this §10.5.2 and otherwise with the terms hereof.

10.5.3     Acquisitions.  None of the Borrowers will, and none will
permit any of its Subsidiaries to, agree to or effect any asset acquisitionor stock acquisition except (a) Capital Expenditures
permitted pursuant to §11.4, and (b) the acquisition of inventory, equipment,
furnishings and other similar assets (not including Stores or real property) in
the ordinary course of business consistent with past practices.

 75
 

10.6        Sale
and Leaseback.  None of the Borrowers will, and none will
permit any of its Subsidiaries to, enter into any arrangement, directly or
indirectly, whereby any Borrower or any Subsidiary of any Borrower shall sell
or transfer any property owned by it in order then or thereafter to lease such
property or lease other property that any Borrower or any Subsidiary of any
Borrower intends to use for substantially the same purpose as the property
being sold or transferred (a “Sale-Leaseback”); provided that, so long as no
Event of Default has occurred and is continuing, the Borrowers and their
Subsidiaries may enter into (i) the Approved Sale-Leaseback Transaction, or
(ii) other Sale-Leaseback transactions with respect to property and equipment
in an aggregate amount not to exceed $5,000,000; provided further that (a) the
terms of the sales as such are comparable to terms which could be obtained in
arms length sales among unaffiliated parties not involving Sale-Leaseback
transactions, and (b) the terms of the leases as such are comparable to terms
which could be obtained in arms length commercial operating leases among unaffiliated
parties.

10.7        Compliance
with Environmental Laws.  Except as set forth in Schedule 8.17, none of
the Borrowers will, and none will permit any of its Subsidiaries to, (i) use
any of the Real Estate or any portion thereof for the handling, processing,
storage or disposal of Hazardous Substances except in material compliance with
applicable Environmental Law, (ii) cause or permit to be located on any of the
Real Estate any underground tank or other underground storage receptacle for
Hazardous Substances except in material compliance with applicable
Environmental Law, (iii) generate any Hazardous Substances on any of the Real
Estate except in material compliance with applicable Environmental Law, (iv)
conduct any activity at any Real Estate or use any Real Estate in any manner so
as to cause a release (i.e. releasing, spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, disposing or
dumping) or threatened release of Hazardous Substances on, upon or into the
Real Estate except in material compliance with applicable Environmental Law or
(v) otherwise conduct any activity at any Real Estate or use any Real Estate in
any manner that would materially violate any Environmental Law or bring such
Real Estate in material violation of any Environmental Law.

10.8        Employee
Benefit Plans.  Neither any Borrower nor any ERISA Affiliate
will:

(a)           engage
in any “prohibited transaction” within the meaning of §406 of ERISA or §4975 of
the Code which could result in a material liability for any of the Borrowers or
their Subsidiaries; or

(b)           permit
any Guaranteed Pension Plan to incur an “accumulated funding deficiency”, as
such term is defined in §302 of ERISA, whether or not such deficiency is or may
be waived; or

(c)           fail
to contribute to any Guaranteed Pension Plan to an extent which, or terminate
any Guaranteed Pension Plan in a manner which, could result in the imposition
of a lien or encumbrance on the assets of any of the Borrowers or their
Subsidiaries pursuant to §302(f) or §4068 of ERISA; or

 76
 

(d)           permit
any Guaranteed Pension Plan to be amended in circumstances requiring the
posting of security pursuant to §307 of ERISA or §401(a)(29) of the Code; or

(e)           permit
or take any action which would result in the aggregate benefit liabilities
(with the meaning of §4001 of ERISA) of all Guaranteed Pension Plans exceeding
the value of the aggregate assets of such Plans, disregarding for this purpose
the benefit liabilities and assets of any such Plan with assets in excess of
benefit liabilities.

10.9        Change
in Fiscal Year.  None of the Borrowers will, and none will
permit any of its Subsidiaries to, effect any change in the end of its fiscal
year from that set forth in §8.4.1.

10.10      Transactions
with Affiliates.  None of the Borrowers will, and none will
permit any of its Subsidiaries to, engage in any transaction with any Affiliate
(other than for services as employees, officers and directors), including any
contract, agreement or other arrangement providing for the furnishing of services
to or by, providing for rental of real or personal property to or from, or
otherwise requiring payments to or from any such Affiliate or, to the knowledge
of any Borrower, any corporation, partnership, trust or other entity in which
any such Affiliate has a substantial interest or is an officer, director,
trustee or partner, on terms less favorable to the Borrowers or their
Subsidiaries than would have been obtainable on an arm’s-length basis in the
ordinary course of business, provided that for so long as no Default or Event
of Default is continuing the foregoing restriction shall not apply to (a)
management fees and expenses permitted under §10.4(d) and (b) Investments
permitted under §10.3(k).

10.11      Bank
Accounts.  None of the Borrowers will, and none will
permit any of its Subsidiaries to, (a) [Intentionally Omitted]; (b) violate
directly or indirectly the Agency Account Agreement, any Agency Account
Agreement or other bank agency or lock box agreement in favor of the Agent for
the benefit of the Lenders and the Agent with respect to such account; or (iii)
deposit into any of the payroll accounts listed on Schedule 8.22 any
amounts in excess of amounts necessary to pay current payroll obligations from
such accounts.

10.12      Franchises. 
The Borrowers will not, and will not permit any of their Subsidiaries
to, enter into any franchise agreement pursuant to which such Borrower or such
Subsidiary is prohibited from pledging or otherwise assigning its rights under
such franchise agreement including its right to receive any franchise fees or
other fees or amounts paid to such Borrower or such Subsidiary thereunder.

10.13      Senior
Secured Debt Documents.  None of the Borrowers will, and none will
permit any of its Subsidiaries to, materially amend, supplement or otherwise
modify (pursuant to a waiver or otherwise) the terms and conditions of any of
the Senior Secured Debt Documents without the prior written consent of the
Agent.

10.14      Maximum
Number of Unprofitable Stores.  None of the Borrowers will, and none will
permit any of its Subsidiaries to, permit the ratio at any time of (a) the
aggregate number of Unprofitable Stores which operate under any trade name that
contains the words 

 77
 

“Acapulco”, “El
Torito”, or “El Torito Grill” to (b) the aggregate number of Stores to be more
than 15%.

10.15      Unsecured
Term Loan Documents.  None of the Borrowers will, and none will
permit any of its Subsidiaries to, materially amend, supplement or otherwise
modify (pursuant to a waiver or otherwise) the terms and conditions of any of
the Unsecured Term Loan Documents without the prior written consent of the
Agent, if the effect of such amendment, supplement or other modification or
waiver is to increase the interest rate payable on the relevant Indebtedness
thereunder or increase the cash portion of any interest required to be paid
thereon, change (to earlier dates) any dates upon which payments of principal
or interest are due thereon, increase the obligations of the obligor or
obligors thereunder or confer any additional rights on the holders of the
relevant Indebtedness thereunder which would be adverse to the Borrowers or any
of their Subsidiaries, the Agent or the Lenders.

11.          FINANCIAL COVENANTS
OF THE BORROWER.

Each of the Borrowers covenants and agrees that, so
long as any Loan, Unpaid Reimbursement Obligation, Letter of Credit or Note is
Outstanding, or any Lender has any obligation to make any Loans, or the Agent
has any obligation to issue, extend or renew any Letters of Credit, the
Borrowers will comply with the following financial covenants:

11.1        Leverage
Ratio.  The Borrowers will not permit the Leverage
Ratio, determined at the end of and for any period of four consecutive fiscal
quarters of the Borrowers ending during any period, or ending on the last day
of the fiscal quarter which ends nearest to the calendar quarter end date,
described in the table below, to be greater than the ratio set forth opposite
such period in such table:

	
  Period

  (inclusive of end dates)

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  January 1, 2006 -
  December 31, 2007

  	
   

  	
  3.85 to 1.00

  
	
  January 1, 2008 and
  thereafter

  	
   

  	
  3.55 to 1.00

  

 

11.2        Adjusted
Leverage Ratio.  The Borrowers will not permit the Adjusted
Leverage Ratio, determined at the end of and for any period of four consecutive
fiscal quarters of the Borrowers ending during any period, or ending on the
last day of the fiscal quarter which ends nearest to the calendar quarter end
date, described in the table below, to be greater than the ratio set forth
opposite such period in such table:

	
  Period

  (inclusive of end dates)

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  January 1, 2006 -
  December 31, 2007

  	
   

  	
  5.95 to 1.00

  
	
  January 1, 2008 and
  thereafter

  	
   

  	
  5.75 to 1.00

  

 

 78

11.3        Cash
Flow Ratio.  The Borrowers will not permit the Cash Flow
Ratio, determined for any Measurement Period ending during any period, or
ending on the last day of the fiscal quarter which ends nearest to the calendar
quarter end date, described in the table below, to be less than the ratio set
forth opposite such period in such table:

	
  Period

  (inclusive of end dates)

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  January 1, 2006
  and thereafter

  	
   

  	
  1.70 to 1.00

  

 

11.4                        Capital
Expenditures and Lease Incurrence.  (A)         The
Borrowers will not make, and will not permit any of their Subsidiaries to make,
any Capital Expenditures in excess of $40,000,000 per annum; provided, however,
that if Consolidated EBITDA for any fiscal year (each a “Test Year”)
is equal to or greater than $70,000,000, the Borrowers and their Subsidiaries
shall be permitted to make Capital Expenditures during the fiscal year
immediately following such Test Year in an aggregate amount not to exceed 60%
of Consolidated EBITDA for such Test Year.

(B)          The Borrowers will
not enter into any new lease obligations (other than renewals of existing
leases in the ordinary course of business) unless the Leverage Ratio for the
most recent reporting period, as set forth in the most recent Compliance
Certificate delivered pursuant to §9.4(e) hereof, is equal to or less than the
ratio set forth opposite such period as set forth in the table below:

	
  Period

  (inclusive of end dates)

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  January 1, 2006
  - December 31, 2007

  	
   

  	
  3.60 to 1.00

  
	
  January 1, 2008
  and thereafter

  	
   

  	
  3.40 to 1.00

  

 

11.5        [Intentionally
Omitted].

12.          CLOSING CONDITIONS.

The effectiveness of this Credit Agreement and the
obligations of the Lenders to make the initial Loans and of the Agent to issue
any initial Letters of Credit hereunder shall be subject to the satisfaction or
waiver of the following conditions precedent:

12.1        Loan
Documents, etc.

12.1.1     Loan
Documents.  Each of the
Loan Documents shall have been duly executed and delivered by the respective
parties thereto, shall be in full force and effect and shall be in form and
substance satisfactory to each of the Lenders. 
The Agent shall have received a fully executed copy of each such
document.

 79
 

12.1.2     Intercreditor
Agreements.  Each of the
Intercreditor Agreement, the Intercreditor Agreement (Unsecured Term Loan) and
the Intercreditor Agreement (Parent Debt) shall have been duly executed and
delivered by the respective parties thereto, shall be in full force and effect
and shall be in form and substance satisfactory to each of the Lenders.

12.2        Certified
Copies of Charter Documents.  The Agent shall have received from the
Parent, Borrowers and each of their Subsidiaries a copy, certified by a duly
authorized officer of such Person to be true and complete on the Closing Date,
of each of (i) its charter or other incorporation documents as in effect on
such date of certification, and (ii) its by-laws as in effect on such date.

12.3        Corporate
Action.  All corporate action necessary for the valid
execution, delivery and performance by the Parent, Borrowers and each of their
Subsidiaries of this Credit Agreement and the other Loan Documents, the Senior
Secured Debt Documents and the Equity Documents to which it is or is to become
a party shall have been duly and effectively taken, and evidence thereof
satisfactory to the Agent shall have been provided to the Agent.

12.4        Incumbency
Certificate.  The Agent shall have received from the
Parent, Borrowers and each of their Subsidiaries an incumbency certificate,
dated as of the Closing Date, signed by a duly authorized officer of such
Person, and giving the name and bearing a specimen signature of each individual
who shall be authorized: (i) to sign, in the name and on behalf of such Person,
each of the Loan Documents to which such Person is or is to become a party;
(ii) in the case of each Borrower, to make Revolving Credit Loan Requests and
Conversion Requests and to apply for Letters of Credit; and (iii) to give
notices and to take other action on its behalf under the Loan Documents.

12.5        Validity
of Liens.  The Security Documents shall be effective to
create in favor of the Agent a legal, valid and enforceable first (except for
Permitted Liens entitled to priority under applicable law) security interest in
and lien upon the Collateral.  All
filings, recordings, deliveries of instruments and other actions necessary or
desirable in the opinion of the Agent to protect and preserve such security
interests shall have been duly effected. 
The Agent shall have received evidence thereof in form and substance
satisfactory to the Agent.

12.6        Perfection
Certificates and Uniform Commercial Code Search Results. 
The Agent shall have received from the Borrowers and each of their
Subsidiaries a completed and fully executed Perfection Certificate and the results
of Uniform Commercial Code searches with respect to the Collateral, indicating
no liens other than Permitted Liens and otherwise in form and substance
satisfactory to the Agent.

12.7        Taxes. 
The Agent shall, if and to the extent requested by the Agent, have
received evidence of payment of real estate taxes and municipal charges on all
Mortgage Property not delinquent on or before the Closing Date.

12.8        Landlord
Consents.  The Borrowers and their Subsidiaries shall
have delivered to the Agent all consents required for the Agent to receive, as
part of the Security Documents, a mortgage of each leasehold of Real Estate
subject to the Approved Sale-Leaseback Transaction, 

 80
 

together in each
case with such estoppel certificates as the Agent may request, including
waivers by landlords with respect to such leaseholds.

12.9        Environmental
Due Diligence.  The Agent shall have received, if and to the
extent requested by the Agent, environmental transaction screening reports
performed by an environmental consultant reasonably acceptable to the Agent in
accordance with ASTM standards in form and substance satisfactory to the Agent
covering all owned Real Estate and all ground leases which constitute Real
Estate.

12.10      Certificates
of Insurance.  The Agent shall have received (i) a
certificate of insurance from an independent insurance broker dated as of the
Closing Date, identifying insurers, types of insurance, insurance limits, and
policy terms, and otherwise describing the insurance obtained in accordance
with the provisions of this Credit Agreement and the Mortgages and (ii)
certified copies of all policies evidencing such insurance (or certificates
therefore signed by the insurer or an agent authorized to bind the insurer),
which certificates shall state that the Agent is an additional insured and, in
respect of all insurance other than liabilities insurance, a loss payee.

12.11      Solvency
Certificate.  Each of the Lenders shall have received
officer’s certificates of each of the Borrowers dated as of the Closing Date as
to the solvency of such Borrower and its Subsidiaries following the
consummation of the transactions contemplated herein and in form and substance
satisfactory to the Lenders.

12.12      Opinions
of Counsel.  Each of the Lenders and the Agent shall have
received:

(a)           a
favorable legal opinion addressed to the Lenders and the Agent, dated as of the
Closing Date (or, if acceptable to the Agent, dated prior to the Closing Date),
in form and substance satisfactory to the Lenders and the Agent:

(i)            from Morgan, Lewis & Bockius LLP,
counsel to each of the Borrowers;

(ii)           with respect to California law to the extent
applicable to the Borrowers; and

(iii)          with respect to Delaware law for each of the
Borrowers incorporated in Delaware; and

(b)           copies
of each of the legal opinions delivered by counsel to the Borrowers in
connection with the execution and delivery of the Senior Debt Documents by the
respective parties to the Senior Debt Documents, each in form and substance
satisfactory to the Agent, together with reliance letters with respect thereto
addressed to the Lenders and the Agent.

12.13      Payment
of Fees and Expenses.  The Borrowers shall have paid to the Lenders
or the Agent, as appropriate, all fees due hereunder and under the Fee
Letter.  The Borrowers shall have
reimbursed the Agent for, or paid directly, all fees, costs and expenses
incurred by the 

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Agent’s Special
Counsel and local counsel to the Agent in all relevant jurisdictions in
connection with the closing of the transactions contemplated hereby.

12.14      Payoff
Arrangements.  The Agent shall be satisfied with
the arrangements for the payoff and termination of commitments of each lender
who was a party to this Credit Agreement prior to Closing Date and shall no
longer be a party to this Credit Agreement from and after the Closing Date.

12.15      Capital
Structure.  The Agent shall be satisfied with the capital
structure of the Borrowers and their respective Subsidiaries.

12.16      Disbursement
Instructions.  The Agent shall have received disbursement
instructions from the Borrowers with respect to the proceeds of the Revolving
Credit Loans to be made on the Closing Date.

12.17      No
Material Adverse Change.  The Agent shall be satisfied that there shall
have occurred no material adverse change in the business, operations, assets,
management, properties, financial condition, income or prospects of the
Borrowers and their Subsidiaries taken as a whole since the Balance Sheet Date.

12.18      Financial
Statements and Projections.  The Agent shall have received copies of the
financial statements and projections described in §8.4, and the Agent shall be
satisfied that such financial statements fairly present the financial condition
of the Borrowers and their Subsidiaries as at the close of business on the date
thereof and the results of operations for the fiscal period then ended and
showing compliance on a pro forma basis
with the covenants contained in §11 and all other terms and conditions hereof.

12.19      No
Litigation.  No litigation, inquiry, injunction or
restraining order shall be pending, entered or threatened that, in the
reasonable opinion of the Agent, could reasonably be expected to have a
material adverse effect on (i) the transactions contemplated hereby or by the
Acquisition, (ii) the business, assets, liabilities (actual or contingent)
operations, condition (financial or otherwise) of the Borrowers and their
Subsidiaries, taken as a whole, (iii) the ability of the Borrowers or any of
their Subsidiaries to perform their obligations under the Loan Documents, (iv)
the rights and remedies of the Agent and the Lenders under the Loan Documents,
or (v) the perfection or priority of any security interests granted to the
Agent under the Loan Documents.

12.20      Consents
and Approvals.  The Agent shall have received evidence that
all material governmental and third-party approvals necessary or advisable in
connection with the Refinancing the credit facilities contemplated hereby and
the continuing operations of the Borrowers shall have been obtained and shall
be in full force and effect, and all applicable waiting periods shall have
expired without any action being taken or threatened by any competent authority
that would restrain, prevent or otherwise impose materially adverse conditions
on the Borrowers and their Subsidiaries taken as a whole, the Refinancing or
the credit facilities contemplated hereby.

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12.21      Other
Documentation.  All other documentation, including any tax
sharing agreements or other financing arrangements of the Borrowers and their
Subsidiaries, shall be reasonably satisfactory in form and substance to the
Agent.

12.22      Closing
Checklist.  Borrowers
shall deliver all other documents listed on, take all actions set forth
on and satisfy all other conditions precedent listed in the Closing Checklist
attached hereto as Exhibit F, all in form and substance, or in a manner,
reasonably satisfactory to Agent and Lenders.

12.23      Financial
Condition.

(a)           The
Borrowers shall have delivered to the Agent evidence satisfactory to the Agent
that Consolidated EBITDA was a minimum of $57,000,000 for the twelve fiscal
month period ending September 24, 2006.

(b)           The
Borrowers shall have delivered to the Agent evidence satisfactory to the Agent
that (i) Consolidated Funded Indebtedness as of the Closing Date and after
giving effect to the Refinancing and Approved Sale-Leaseback Transaction,
divided by (ii) Consolidated EBITDA for the twelve fiscal month period
ended September 24, 2006 is no more than 3.60:1.00.

(c)           As
of the Closing Date and after giving effect to the Refinancing, the aggregate
principal amount of Revolving Credit Loans outstanding shall not exceed
$10,000,000.

13.          CONDITIONS TO ALL
BORROWINGS.

The obligations of the Lenders to make any Loan, and
of the Agent to issue, extend or renew any Letter of Credit, in each case whether
on or after the Closing Date, shall also be subject to the satisfaction of the
following conditions precedent:

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13.1        Representations
True; No Event of Default.  Each of the representations and warranties of
any of the Borrowers and their Subsidiaries contained in this Credit Agreement,
the other Loan Documents or in any document or instrument delivered pursuant to
or in connection with this Credit Agreement shall be true as of the date as of
which they were made and shall also be true at and as of the time of the making
of such Loan or the issuance, extension or renewal of such Letter of Credit,
with the same effect as if made at and as of that time (except to the extent of
changes resulting from transactions contemplated or permitted by this Credit
Agreement and the other Loan Documents and changes occurring in the ordinary
course of business that singly or in the aggregate are not materially adverse,
and to the extent that such representations and warranties relate expressly to
an earlier date) and no Default or Event of Default shall have occurred and be
continuing.

13.2        No
Legal Impediment.  No change shall have occurred in any law or
regulations thereunder or interpretations thereof that in the reasonable
opinion of any Lender would make it illegal for such Lender to make such Loan
or to participate in the issuance, extension or renewal of such Letter of
Credit or in the reasonable opinion of the Agent would make it illegal for the
Agent to issue, extend or renew such Letter of Credit.

13.3        Governmental
Regulation.  Each Lender shall have received such
statements in substance and form reasonably satisfactory to such Lender as such
Lender shall require for the purpose of compliance with any applicable
regulations of the Comptroller of the Currency or the Board of Governors of the
Federal Reserve System.

13.4        Proceedings
and Documents.  All proceedings in connection with the
transactions contemplated by this Credit Agreement, the other Loan Documents
and all other documents incident thereto shall be satisfactory in substance and
in form to the Lenders and to the Agent and the Agent’s Special Counsel, and
the Lenders, the Agent and such counsel shall have received all information and
such counterpart originals or certified or other copies of such documents as
the Agent may reasonably request, including any Joinder Agreement as may be
required by §9.18.

14.          EVENTS OF DEFAULT;
ACCELERATION; ETC.

14.1        Events
of Default and Acceleration.  If any of the following events (“Events of
Default” or, if the giving of notice or the lapse of time or both is required,
then, prior to such notice or lapse of time, “Defaults”)
shall occur:

(a)           the
Borrowers shall fail to pay any principal of the Loans or any Reimbursement
Obligation when the same shall become due and payable, whether at the stated
date of maturity or any accelerated date of maturity or at any other date fixed
for payment;

(b)           the
Borrowers shall fail to pay any interest on the Loans, the commitment fee, any
Letter of Credit Fee, any fees under the Fee Letter, or any other sums due
hereunder or under any of the other Loan Documents, within three (3) days of
the date when the same became due and payable, whether at the stated date of
maturity or any accelerated date of maturity or at any other date fixed for
payment;

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(c)           any
of the Borrowers shall fail to comply with any of its respective covenants
contained in §§ 9.5, 9.7.1, 9.9, 10 or 11 (except as to the covenants contained
in §10.7, for which the Borrowers’ failure to comply shall only be deemed an
Event of Default should the Borrowers fail to cure the failure within the
earlier of thirty (30) days or the time period required by Environmental Laws),
with any of its covenants contained in §9.4 for a period in excess of five
days, or with any of the covenants contained in any of the Mortgages for three
days;

(d)           the
Borrowers or any of their Subsidiaries shall fail to perform any term, covenant
or agreement contained herein or in any of the other Loan Documents (other than
those specified elsewhere in this §14.1) for thirty (30) days after written
notice of such failure has been given to the Borrowers by the Agent;

(e)           any
representation or warranty by the Borrowers or any of their Subsidiaries in
this Credit Agreement or any of the other Loan Documents or in any other
document or instrument delivered pursuant to or in connection with this Credit
Agreement shall prove to have been false in any material respect upon the date
when made or deemed to have been made or repeated;

(f)            (i)
any Borrower or any of its Subsidiaries shall (A) default in any payment with
respect to any Indebtedness (other than the Obligations) beyond the period of
grace, if any, applicable thereto or (B) default in the observance or
performance of any agreements or condition relating to any such Indebtedness or
contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event shall occur or condition exist for such period of
time as would permit (assuming the giving of appropriate notice if required)
the holder or holders thereof or of any obligations issued thereunder to
accelerate the maturity of such Indebtedness or (ii) any such Indebtedness of
such Borrower or any of its Subsidiaries shall be declared to be due and
payable, or required to be prepaid other than by a regularly scheduled
amortization payment or regularly required mandatory prepayment, prior to the
stated maturity thereof; provided that it shall not constitute an Event
of Default unless the principal amount of any one issue of such Indebtedness exceeds
$3,000,000 or the aggregate amount of all Indebtedness referred to in clauses
(i) and (ii) above exceeds $3,000,000 at any one time;

(g)           the
Parent, any Borrower or any of their respective Subsidiaries shall make an
assignment for the benefit of creditors, or admit in writing its inability to
pay or generally fail to pay its debts as they mature or become due, or shall
petition or apply for the appointment of a trustee or other custodian,
liquidator or receiver of such Person or of any substantial part of the assets
of such Person or shall commence any case or other proceeding relating to such
Person under any bankruptcy, reorganization, arrangement, insolvency,
readjustment of debt, dissolution or liquidation or similar law of any
jurisdiction, now or hereafter in effect, or shall take any action to authorize
or in furtherance of any of the foregoing, or if any such petition or
application shall be filed or any such case or other proceeding shall be
commenced against the Parent, any Borrower or any of their respective
Subsidiaries shall indicate its approval thereof, consent thereto or
acquiescence therein or such petition or application shall not have been
dismissed within forty-five (45) days following the filing thereof;

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(h)           a
decree or order is entered appointing any such trustee, custodian, liquidator
or receiver or adjudicating the Parent, any Borrower or any of their respective
Subsidiaries bankrupt or insolvent, or approving a petition in any such case or
other proceeding, or a decree or order for relief is entered in respect of the
Parent, any Borrower or any of their respective Subsidiaries in an involuntary
case under federal bankruptcy laws as now or hereafter constituted;

(i)            there
shall remain in force, undischarged, unsatisfied and unstayed, for more than
thirty (30) consecutive days any final judgment against any Borrower or any of
its Subsidiaries that, with other outstanding final judgments, undischarged,
against any Borrower or any of its Subsidiaries, exceeds in the aggregate,
$1,000,000;

(j)            the
holders of all or any part of the Senior Secured Debt shall accelerate the
maturity of all or any part of the Senior Secured Debt, or the Senior Secured
Debt or any Equity Interest shall be prepaid, redeemed or repurchased in whole
or in part, or any event of default shall occur with respect to the Senior
Secured Debt;

(k)           if
any of the Loan Documents shall be cancelled, terminated, revoked or rescinded
or the Agent’s security interests, mortgages or liens in a substantial portion
of the Collateral shall cease to be perfected, or shall cease to have the
priority contemplated by the Security Documents, in each case otherwise than in
accordance with the terms thereof or with the express prior written agreement,
consent or approval of the Lenders, or any action at law, suit or in equity or
other legal proceeding to cancel, revoke or rescind any of the Loan Documents
shall be commenced by or on behalf of the Borrowers, any of their Subsidiaries
party thereto, any of their respective stockholders, or any holder of all or
any part of the Senior Secured Debt, or any court or any other governmental or
regulatory authority or agency of competent jurisdiction shall make a
determination that, or issue a judgment, order, decree or ruling to the effect
that, any one or more of the Loan Documents is illegal, invalid or
unenforceable in accordance with the terms thereof;

(l)            any
Borrower or any ERISA Affiliate incurs any liability to the PBGC (excluding
requested insurance premiums payable in the ordinary course) or a Guaranteed
Pension Plan pursuant to Title IV of ERISA in an aggregate amount exceeding
$500,000, or any Borrower or any ERISA Affiliate is assessed withdrawal
liability pursuant to Title IV of ERISA by a Multiemployer Plan requiring
aggregate annual payments exceeding $500,000, or any of the following occurs
with respect to a Guaranteed Pension Plan: (i) an ERISA Reportable Event, or a
failure to make a required installment or other payment (within the meaning of
§302(f)(1) of ERISA), provided that the Agent determines in its
reasonable discretion that such event (A) could be expected to result in
liability of any of the Borrowers or their Subsidiaries to the PBGC or such
Guaranteed Pension Plan in an aggregate amount exceeding $500,000 and (B) could
constitute grounds for the termination of such Guaranteed Pension Plan by the
PBGC, for the appointment by the appropriate United States District Court of a
trustee to administer such Guaranteed Pension Plan or for the imposition of a
lien in favor of such Guaranteed Pension Plan; or (ii) the appointment by a
United States District Court of a trustee to 

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administer such Guaranteed Pension Plan; or (iii) the institution by
the PBGC of proceedings to terminate such Guaranteed Pension Plan;

(m)          the
Borrowers or any of their Subsidiaries shall be enjoined, restrained or in any
way prevented by the order of any court or any administrative or regulatory
agency from conducting any material part of the business of the Borrowers and
their Subsidiaries taken as a whole and such order shall continue in effect for
more than thirty (30) days;

(n)           there
shall occur any material damage to, or loss, theft or destruction of, any
Collateral, whether or not insured, or any strike, lockout, labor dispute,
embargo, condemnation, act of God or public enemy, or other casualty, which in
any such case causes, for more than fifteen (15) consecutive days, the
cessation or substantial curtailment of revenue producing activities at any
facility of the Borrowers or any of their Subsidiaries if such event or
circumstance is not covered by business interruption insurance and would have a
material adverse effect on the business or financial condition of the Borrowers
and their Subsidiaries;

(o)           there
shall occur the loss, suspension or revocation of, or failure to renew, any
license or permit now held or hereafter acquired by the Borrowers or any of
their Subsidiaries if such loss, suspension, revocation or failure to renew
would have a material adverse effect on the business or financial condition of
the Borrowers and their Subsidiaries taken as a whole;

(p)           the
Borrowers or any of their Subsidiaries shall be indicted for a state or federal
crime, or any civil or criminal action shall otherwise have been brought  against any such Person, a punishment for
which in any such case could reasonably be expected to include the forfeiture
of any assets of such Person having a fair market value in excess of
$1,000,000;

(q)           a
Change of Control shall occur;

(r)            Real
Mex shall, at any time, own or control, directly or indirectly, less than one
hundred percent (100%) of the Equity Interests of each of the other Borrowers;

(s)           (i)
any default or event of default shall occur under the Parent Debt Documents or
under the terms of any other Permitted Parent Debt, (ii) the Parent shall incur
any Indebtedness other than the Permitted Parent Debt, or (iii) the Parent, any
Borrower or any of their Subsidiaries shall (A) materially amend, supplement or
otherwise modify (pursuant to a waiver or otherwise) the terms and conditions
of any of the Permitted Parent Debt or (B) refinance, refund, extend, renew or
replace any of the Permitted Parent Debt, in each case, without the prior
written consent of the Agent, if the effect of such amendment, supplement or
other modification or waiver or such refinancing, refunding, extension, renewal
or replacement is to (u) increase the interest rate payable on the relevant
Indebtedness thereunder, (v) increase the cash portion of any interest required
to be paid thereon, (w) change (to earlier dates) any dates upon which payments
of principal or interest are due thereon, (x) increase the obligations of the 

 87
 

obligor or obligors thereunder, (y) increase the principal amount of
such Indebtedness in excess of the amounts contemplated by the definitions of “Parent
Debt” or “Permitted Parent Debt” plus the amount of any accrued and unpaid
interest thereon, or (z) confer any additional rights on the holders of the
relevant Indebtedness thereunder which would be adverse to the Borrowers or any
of the their Subsidiaries, the Agent or the Lenders;

(t)            the
Parent shall engage is any business activities or has any other assets other
than (i) its ownership of 100% of the capital stock and economic interest of
Real Mex, (ii) performing its obligations and activities incidental thereto
under the Loan Documents and under the terms and conditions of the Permitted
Parent Debt, and (iii) making or receiving Restricted Payments to the extent
permitted by this Credit Agreement;

(u)           the
Parent shall (i) consolidate with or merge with or into, or convey, transfer or
lease all or substantially all assets to, any Person, (ii) sell or otherwise
dispose of any capital stock of Real Mex, (iii) create or acquire any
Subsidiary or make or own any Investment in any Person other than Real Mex, or
(iv) fail to hold itself out to the public as a legal entity separate and
distinct from all other Persons;

(v)           the Parent shall (i) fail to
perform any term, covenant or agreement contained in the Parent Guaranty
or  (ii) create or incur or
suffer to be created or incurred or to exist any lien, encumbrance, mortgage,
pledge, charge, restriction or other security interest of any kind upon any of
its property or assets of any character whether now owned or hereafter
acquired, or upon the income or profits therefrom other than liens in favor of
the Agent for the benefit of the Lenders and the Agent under the Loan
Documents; or

(w)          the
Company is required to purchase any of the Notes (as defined in the Indenture)
tendered pursuant to the Tender Offer and is unable to either (i) arrange for
all such Notes to be purchased by a Person other than Parent, any Borrower or
any of their respective Subsidiaries or (ii) obtain financing for its purchase
of all such tendered Notes on the same terms as the existing Senior Secured
Debt Documents, in each case prior to or on the date such purchase is required
to be made;

then, and in any such event, so long as the same may
be continuing, the Agent may, and upon the request of the Majority Lenders
shall, by notice in writing to the Borrowers declare all amounts owing with
respect to this Credit Agreement, the Notes and the other Loan Documents and
all Reimbursement Obligations to be, and they shall thereupon forthwith become,
immediately due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby expressly waived by each of the
Borrowers; provided that in the event of any Event of Default specified
in §§14.1(g), 14.1(h) or 14.1(j), all such amounts shall become immediately due
and payable automatically and without any requirement of notice from the Agent
or any Lender.

14.2        Termination
of Commitments.  If any one or more of the Events of Default
specified in §14.1(g), §14.1(h) or §14.1(j) shall occur, any unused portion of
the credit hereunder shall forthwith terminate and each of the Lenders shall be
relieved of all further obligations to 

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make Loans to the
Borrowers and the Agent shall be relieved of all further obligations to issue,
extend or renew Letters of Credit.  If
any other Event of Default shall have occurred and be continuing, the Agent may
and, upon the request of the Majority Lenders, shall, by notice to the
Borrowers, terminate the unused portion of the credit hereunder, and upon such
notice being given such unused portion of the credit hereunder shall terminate
immediately and each of the Lenders shall be relieved of all further
obligations to make Loans and the Agent shall be relieved of all further
obligations to issue, extend or renew Letters of Credit.  No termination of the credit hereunder shall
relieve any of the Borrowers or their Subsidiaries of any of the Obligations.

14.3        Remedies. 
In case any one or more of the Events of Default shall have occurred and
be continuing, and whether or not the Lenders shall have accelerated the
maturity of the Loans pursuant to §14.1, the Agent and each Lender, if owed any
amount with respect to the Loans or the Reimbursement Obligations, may, with
the consent of the Majority Lenders but not otherwise, proceed to protect and
enforce its rights by suit in equity, action at law or other appropriate
proceeding, whether for the specific performance of any covenant or agreement
contained in this Credit Agreement and the other Loan Documents or any
instrument pursuant to which the Obligations to such Lender are evidenced,
including as permitted by applicable law the obtaining of the ex parte
appointment of a receiver, and, if such amount shall have become due, by
declaration or otherwise, proceed to enforce the payment thereof or any other
legal or equitable right of such Lender. 
No remedy herein conferred upon any Lender or the Agent or the holder of
any Note or purchaser of any Letter of Credit Participation is intended to be
exclusive of any other remedy and each and every remedy shall be cumulative and
shall be in addition to every other remedy given hereunder or now or hereafter
existing at law or in equity or by statute or any other provision of law.  In addition, the Borrowers shall cooperate
with the Agent in the transfer of any licenses or leases used in the business
of the Borrowers and their Subsidiaries to the Agent or any other third party
designated by the Agent.

14.4        Distribution
of Collateral Proceeds.  In the event that, following the occurrence
or during the continuance of any Default or Event of Default, the Agent or any
Lender, as the case may be, receives any monies in connection with the
enforcement of any of the Security Documents, or otherwise with respect to the
realization upon any of the Collateral, such monies shall be distributed for
application as follows:

(a)           First,
to the payment of, or (as the case may be) the reimbursement of the Agent for
or in respect of all reasonable costs, expenses, disbursements and losses which
shall have been incurred or sustained by the Agent in connection with the
collection of such monies by the Agent, for the exercise, protection or
enforcement by the Agent of all or any of the rights, remedies, powers and
privileges of the Agent under this Credit Agreement or any of the other Loan
Documents or in respect of the Collateral or in support of any provision of
adequate indemnity to the Agent against any taxes or liens which by law shall
have, or may have, priority over the rights of the Agent to such monies;

(b)           Second,
to all other Obligations in such order or preference as the Majority Lenders
may determine; provided, however, that (i) distributions shall be
made (A) pari passu among Obligations with respect to the Agent’s
fee payable pursuant to the Fee Letter and all other Obligations and (B) with
respect to each type of Obligation 

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owing to the Lenders, such as interest, principal, fees and expenses,
among the Lenders pro rata, and (ii) the Agent may in its
discretion make proper allowance to take into account any Obligations not then
due and payable;

(c)           Third,
upon payment and satisfaction in full or other provisions for payment in full
satisfactory to the Lenders and the Agent of all of the Obligations, to the
payment of any obligations required to be paid pursuant to the Uniform
Commercial Code of the Commonwealth of Massachusetts; and

(d)           Fourth,
the excess, if any, shall be returned to the Borrowers or to such other Persons
as are entitled thereto.

15.          SETOFF.

15.1        Setoff. 
Regardless of the adequacy of any collateral, during the continuance of
any Event of Default, any deposits or other sums credited by or due from any of
the Lenders to any of the Borrowers and any securities or other property of any
of the Borrowers in the possession of such Lender may be applied to or set off
by such Lender against the payment of Obligations and any and all other
liabilities, direct, or indirect, absolute or contingent, due or to become due,
now existing or hereafter arising, of any of the Borrowers to the Lenders.  Each of the Lenders agrees with each other
Lender that (a) if an amount to be set off is to be applied to Indebtedness of
any of the Borrowers to such Lender, other than Indebtedness evidenced by the
Notes held by such Lender, such amount shall be applied ratably to such other
Indebtedness and to the Indebtedness evidenced by all such Notes held by such
Lender, and (b) if such Lender shall receive from any of the Borrowers, whether
by voluntary payment, exercise of the right of setoff, counterclaim, cross
action, enforcement of the claim evidenced by the Notes held by, such Lender by
proceedings against such Borrower at law or in equity or by proof thereof in
bankruptcy, reorganization, liquidation, receivership or similar proceedings,
or otherwise, and shall retain and apply to the payment of the Note or Notes
held by such Lender any amount in excess of its ratable portion of the payments
received by all of the Lenders with respect to the Notes held by all of the
Lenders, such Lender will make such disposition and arrangements with the other
Lenders with respect to such excess, either by way of distribution, pro tanto
assignment of claims, subrogation or otherwise as shall result in each Lender
receiving in respect of the Notes held by it or its proportionate payment as
contemplated by this Credit Agreement; provided that if all or any part of such
excess payment is thereafter recovered from such Lender, such disposition and
arrangements shall be rescinded and the amount restored to the extent of such
recovery, but without interest.

15.2        Consent
to Setoff.  Notwithstanding the foregoing
§15.1, at any time that the Loans or any other obligation shall be secured by
real property located in California, no Lender or the Agent shall exercise a
right of setoff, lien or counterclaim or take any court or administrative
action or institute any proceeding to enforce any provision of this Credit
Agreement or any Note unless it is taken with the consent of the Majority
Lenders, or approved in writing by the Agent, if such setoff or action or
proceeding would or might (pursuant to California Code of Civil Procedure
Sections 580a, 580b, 580d and 726 of The California Code of Civil Procedure or
Section 2924 of the California Civil Code, if applicable, or otherwise) affect
or impair the validity, priority, or enforceability of the liens granted to the
Agent pursuant to the 

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Security Documents
or the enforceability of the Notes and other obligations hereunder, and any
attempted exercise by any Lender or the Agent of any such right without
obtaining such consent of the Majority Lenders or the Agent shall be null and
void.  This §15.2 shall be solely for the
benefit of each of the Lenders and the Agent hereunder.

16.          THE AGENT.

16.1        Authorization.

(a)           The
Agent is authorized to take such action on behalf of each of the Lenders and to
exercise all such powers as are hereunder and under any of the other Loan
Documents and any related documents delegated to the Agent, together with such
powers as are reasonably incident thereto, provided that no duties or
responsibilities not expressly assumed herein or therein shall be implied to
have been assumed by the Agent.

(b)           The
relationship between the Agent and each of the Lenders is that of an
independent contractor.  The use of the
term “Agent” is for convenience only and is used to describe, as a form of
convention, the independent contractual relationship between the Agent and each
of the Lenders.  Nothing contained in
this Credit Agreement nor the other Loan Documents shall be construed to create
an agency, trust or other fiduciary relationship between the Agent and any of
the Lenders.

(c)           As
an independent contractor empowered by the Lenders to exercise certain rights
and perform certain duties and responsibilities hereunder and under the other Loan
Documents, the Agent is nevertheless a “representative” of the Lenders, as that
term is defined in Article 1 of the Uniform Commercial Code, for purposes of
actions for the benefit of the Lenders and the Agent with respect to all
collateral security and guaranties contemplated by the Loan Documents.  Such actions include the designation of the
Agent as “secured party”, “mortgagee” or the like on all financing statements
and other documents and instruments, whether recorded or otherwise, relating to
the attachment, perfection, priority or enforcement of any security interests,
mortgages or deeds of trust in collateral security intended to secure the
payment or performance of any of the Obligations, all for the benefit of the
Lenders and the Agent.

16.2        Employees
and Agents.  The Agent may exercise its powers and execute
its duties by or through employees or agents and shall be entitled to take, and
to rely on, advice of counsel concerning all matters pertaining to its rights
and duties under this Credit Agreement and the other Loan Documents.  The Agent may utilize the services of such
Persons as the Agent in its sole discretion may reasonably determine, and all
reasonable fees and expenses of any such Persons shall be paid by the
Borrowers.

16.3        No
Liability.  Neither the Agent nor any of its
shareholders, directors, officers or employees nor any other Person assisting
them in their duties nor any agent or employee thereof, shall be liable for any
waiver, consent or approval given or any action taken, or omitted to be taken,
in good faith by it or them hereunder or under any of the other Loan Documents,
or in connection herewith or therewith, or be responsible for the consequences
of any oversight or 

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error of judgment
whatsoever, except that the Agent or such other Person, as the case may be, may
be liable for losses due to its willful misconduct or gross negligence.

16.4        No
Representations.

16.4.1     General.  The Agent shall not be responsible for the
execution or validity or enforceability of this Credit Agreement, the Notes,
the Letters of Credit, any of the other Loan Documents or any instrument at any
time constituting, or intended to constitute, collateral security for the
Notes, or for the value of any such collateral security or for the validity,
enforceability or collectability of any such amounts owing with respect to the
Notes, or for any recitals or statements, warranties or representations made
herein, in any of the other Loan Documents, the Senior Secured Debt Documents,
the Equity Documents or the Unsecured Term Loan Documents, or in any
certificate or instrument hereafter furnished to it by or on behalf of any
Borrower or any of their respective Subsidiaries, or be bound to ascertain or
inquire as to the performance or observance of any of the terms, conditions,
covenants or agreements herein or in any instrument at any time constituting,
or intended to constitute, collateral security for the Notes or to inspect any
of the properties, books or records of any Borrower or any of their respective
Subsidiaries.  The Agent shall not be
bound to ascertain whether any notice, consent, waiver or request delivered to
it by any Borrower or any holder of any of the Notes shall have been duly
authorized or is true, accurate and complete. 
The Agent has not made nor does it now make any representations or
warranties, express or implied, nor does it assume any liability to the
Lenders, with respect to the credit worthiness or financial conditions of any
Borrower or any of their respective Subsidiaries.  Each Lender acknowledges that it has,
independently and without reliance upon the Agent or any other Lender, and
based upon such information and documents as it has deemed appropriate, made
its own credit analysis and decision to enter into this Credit Agreement.

16.4.2     Closing
Documentation, etc.  For
purposes of determining compliance with the conditions set forth in §12, each
Lender that has executed this Credit Agreement shall be deemed to have
consented to, approved or accepted, or to be satisfied with, each document and
matter either sent, or made available, by the Agent to such Lender for consent,
approval, acceptance or satisfaction, or required thereunder to be consented to
or approved by or acceptable or satisfactory to such Lender, unless an officer
of the Agent active upon the Borrowers’ account shall have received notice from
such Lender prior to the Closing Date specifying such Lender’s objection
thereto and such objection shall not have been withdrawn by notice to the Agent
to such effect on or prior to the Closing Date.

16.5        Payments.

16.5.1     Payments
to Agent.  A payment by
any Borrower to the Agent hereunder or under any of the other Loan Documents
for the account of any Lender shall constitute a payment to such Lender.  The Agent agrees promptly (but in no case
later than two Business Days after the receipt of such payments by the Agent)
to distribute to each Lender such Lender’s pro rata share of
payments received by the Agent for the account of 

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the Lenders except as otherwise expressly provided herein or in any of
the other Loan Documents.

16.5.2     Distribution
by Agent.  If in the
opinion of the Agent the distribution of any amount received by it in such
capacity hereunder, under the Notes or under any of the other Loan Documents
might involve it in liability, it may refrain from making distribution until
its right to make distribution shall have been adjudicated by a court of
competent jurisdiction.  If a court of
competent jurisdiction shall adjudge that any amount received and distributed
by the Agent is to be repaid, each Person to whom any such distribution shall
have been made shall either repay to the Agent its proportionate share of the
amount so adjudged to be repaid or shall pay over the same in such manner and
to such Persons as shall be determined by such court.

16.5.3     Delinquent
Lenders.  Notwithstanding
anything to the contrary contained in this Credit Agreement or any of the other
Loan Documents, any Lender that fails (i) to make available to the Agent its pro
rata share of any Loan or to purchase any Letter of Credit Participation
or (ii) to comply with the provisions of §15 with respect to making
dispositions and arrangements with the other Lenders, where such Lender’s share
of any payment received, whether by setoff or otherwise, is in excess of its pro
rata share of such payments due and payable to all of the Lenders, in
each case as, when and to the full extent required by the provisions of this
Credit Agreement, shall be deemed delinquent (a “Delinquent Lender”) and
shall be deemed a Delinquent Lender until such time as such delinquency is
satisfied.  A Delinquent Lender shall be
deemed to have assigned any and all payments due to it from the Borrowers,
whether on account of outstanding Loans, Unpaid Reimbursement Obligations,
interest, fees or otherwise, to the remaining nondelinquent Lenders for
application to, and reduction of, their respective pro rata
shares of all outstanding Loans and Unpaid Reimbursement Obligations.  The Delinquent Lender hereby authorizes the
Agent to distribute such payments to the nondelinquent Lenders in proportion to
their respective pro rata shares of all outstanding Loans and
Unpaid Reimbursement Obligations.  A
Delinquent Lender shall be deemed to have satisfied in full a delinquency when
and if, as a result of application of the assigned payments to all outstanding
Loans and Unpaid Reimbursement Obligations of the nondelinquent Lenders, the
Lenders’ respective pro rata shares of all outstanding Loans and
Unpaid Reimbursement Obligations have returned to those in effect immediately
prior to such delinquency and without giving effect to the nonpayment causing
such delinquency.

16.6        Holders
of Notes.  The Agent may deem and treat the payee of any
Note or the purchaser of any Letter of Credit Participation as the absolute
owner or purchaser thereof for all purposes hereof until it shall have been
furnished in writing with a different name by such payee or by a subsequent
holder, assignee or transferee.

16.7        Indemnity. 
The Lenders ratably agree hereby to indemnify and hold harmless the
Agent and its affiliates from and against any and all claims, actions and suits
(whether groundless or otherwise), losses, damages, costs, expenses (including
any expenses for which the Agent or such affiliate has not been reimbursed by
the Borrowers as required by §18), and liabilities of every nature and
character arising out of or related to this Credit Agreement, the 

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Notes, or any of
the other Loan Documents or the transactions contemplated or evidenced hereby
or thereby, or the Agent’s actions taken hereunder or thereunder, except to the
extent that any of the same shall be directly caused by the willful misconduct
or gross negligence of the Agent.

16.8        Agent
as Lender.  In its individual capacity, GE Capital shall
have the same obligations and the same rights, powers and privileges in respect
to its Revolving Credit Commitment, and the Loans made by it, and as the holder
of any of the Notes, as it would have were it not also the Agent.

16.9        Resignation. 
The Agent may resign at any time by giving sixty (60) days prior written
notice thereof to the Lenders and the Borrowers.  Upon any such resignation, the Majority
Lenders shall have the right to appoint a successor Agent.  Unless a Default or Event of Default shall
have occurred and be continuing, such successor Agent shall be reasonably
acceptable to the Borrowers.  If no
successor Agent shall have been so appointed by the Majority Lenders and shall
have accepted such appointment within thirty (30) days after the retiring Agent’s
giving of notice of resignation, then the retiring Agent may, on behalf of the
Lenders, appoint a successor Agent, which shall be a financial institution
having a rating of not less than A or its equivalent by Standard & Poor’s
Ratings Group.  Upon the acceptance of
any appointment as Agent hereunder by a successor Agent, such successor Agent
shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent, and the retiring Agent shall be
discharged from its duties and obligations hereunder.  After any retiring Agent’s resignation, the
provisions of this Credit Agreement and the other Loan Documents shall continue
in effect for its benefit in respect of any actions taken or omitted to be
taken by it while it was acting as Agent. 
Notwithstanding anything to the contrary set forth herein, GE Capital,
in its capacity as Agent hereunder, is permitted at any time without prior
notice to resign as Administrative Agent and to appoint Sun Capital or any Sun
Capital Affiliate as successor Administrative Agent and Collateral Agent
without the prior consent of any Lender or the Borrowers.  Upon such appointment, GE Capital shall be
discharged from its duties and obligations hereunder and under the other Loan
Documents as administrative agent or collateral agent and the provisions of
this Credit Agreement and the other Loan Documents shall continue in effect for
its benefit in respect of actions taken or omitted to be taken by it while it
was acting as Agent.

16.10      Notification
of Defaults and Events of Default; Other Notices.  Each Lender hereby
agrees that, upon learning of the existence of a Default or an Event of
Default, it shall promptly notify the Agent thereof.  The Agent hereby agrees that upon receipt of
any notice under this §16.10 it shall promptly notify the other Lenders of the
existence of such Default or Event of Default.

16.11      Duties
in the Case of Enforcement.  In case one of more Events of Default have
occurred and shall be continuing, and whether or not acceleration of the
Obligations shall have occurred, the Agent shall, if (i) so requested by the
Majority Lenders and (ii) the Lenders have provided to the Agent such
additional indemnities and assurances against expenses and liabilities as the
Agent may reasonably request, proceed to enforce the provisions of the Security
Documents authorizing the sale or other disposition of all or any part of the
Collateral and exercise all or any such other legal and equitable and other
rights or remedies as it may have in respect of such Collateral.  The Majority Lenders may direct the Agent in
writing as to the 

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method and the
extent of any such sale or other disposition, the Lenders hereby agreeing to
indemnify and hold the Agent, harmless from all liabilities incurred in respect
of all actions taken or omitted in accordance with such directions, provided
that the Agent need not comply with any such direction to the extent that the
Agent reasonably believes the Agent’s compliance with such direction to be
unlawful or commercially unreasonable in any applicable jurisdiction.

16.12      Agent
May File Proofs of Claim.

(a)           In
case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial,
administrative or like proceeding or any assignment for the benefit of
creditors relative to the Borrowers or any of their Subsidiaries, the Agent
(irrespective of whether the principal of any Loan, Reimbursement Obligation or
Unpaid Reimbursement Obligation shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether the Agent
shall have made any demand on the Borrowers) shall be entitled and empowered,
by intervention in such proceeding, under any such assignment or otherwise:

(i)            to file and prove a claim for the whole
amount of the principal and interest owing and unpaid in respect of the Loans,
Reimbursement Obligations or Unpaid Reimbursement Obligations and all other
Obligations that are owing and unpaid and to file such other documents as may
be necessary or advisable in order to have the claims of the Lenders and the
Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders and the Agent and their respective
agents and counsel and all other amounts due the Lenders and the Agent under
§§2.2, 5.6, 6.1, 6.2 and 18.1)allowed in
such proceeding or under any such assignment; and

(ii)           to collect and receive any monies or other
property payable or deliverable on any such claims and to distribute the same;

(b)           Any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such proceeding or under any such assignment is hereby
authorized by each Lender to make such payments to the Agent and, in the event
that the Agent shall consent to the making of such payments directly to the
Lenders, nevertheless to pay to the Agent any amount due for the reasonable
compensation, expenses, disbursements and advances of the Agent and its agents
and counsel, and any other amounts due the Agent under §§2.2, 5.6, 6.1, 6.2 and
18.1.

(c)           Nothing
contained herein shall authorize the Agent to consent to or accept or adopt on
behalf of any Lender any plan of reorganization, arrangement, adjustment or
composition affecting the Obligations owed to such Lender or the rights of any
Lender or to authorize the Agent to vote in respect of the claim of any Lender
in any such proceeding or under any such assignment.

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17.          TREATMENT OF CERTAIN
CONFIDENTIAL INFORMATION.

17.1        Confidentiality. 
Each of the Lenders and the Agent agrees, on behalf of itself and each
of its affiliates, directors, officers, employees and representatives, to keep
confidential, in accordance with their customary procedures for handling
confidential information of the same nature and in accordance with safe and
sound banking practices, any non-public information supplied to it by any of
the Borrowers or their Subsidiaries pursuant to this Credit Agreement, provided
that nothing herein shall limit the disclosure of any such information (a)
after such information shall have become public other than through a violation
of this §17.1, or becomes available to any of the Lenders or the Agent on a
nonconfidential basis from a source other than the Borrowers, (b) to the extent
required by statute, rule, regulation or judicial process, (c) to counsel for
any of the Lenders or the Agent, (d) to bank examiners or any other regulatory
authority having jurisdiction over any Lender or the Agent, or to auditors or
accountants, (e) to the Agent, any Lender or any Financial Affiliate, (f) in
connection with any litigation to which any one or more of the Lenders, the
Agent or any Financial Affiliate is a party, or in connection with the
enforcement of rights or remedies hereunder or under any other Loan Document,
(g) to a Lender Affiliate or a Subsidiary or affiliate of the Agent, (h) to any
actual or prospective assignee or participant or any actual or prospective
counterparty (or its advisors) to any swap or derivative transactions
referenced to credit or other risks or events arising under this Credit
Agreement or any other Loan Document so long as such assignee, participant or
counterparty, as the case may be, agrees to be bound by the provisions of §17.1
or (i) with the consent of the Borrowers. 
Moreover, each of the Agent, the Lenders and any Financial Affiliate is
hereby expressly permitted by the Borrowers to refer to any of the Borrowers
and its Subsidiaries in connection with any advertising, promotion or marketing
undertaken by the Agent, such Lender or such Financial Affiliate and, for such
purpose, the Agent, such Lender or such Financial Affiliate may utilize any
trade name, trademark, logo or other distinctive symbol associated with the Borrowers
or any of their Subsidiaries or any of their businesses.

17.2        Prior
Notification.  Unless specifically prohibited by applicable
law or court order, each of the Lenders and the Agent shall, prior to
disclosure thereof, notify the Borrowers of any request for disclosure of any
such non-public information by any governmental agency or representative
thereof (other than any such request in connection with an examination of the
financial condition of such Lender by such governmental agency) or pursuant to
legal process.

17.3        Other. 
In no event shall any Lender or the Agent be obligated or required to
return any materials furnished to it or any Financial Affiliate by any of the
Borrowers or their Subsidiaries.  The
obligations of each Lender under this §17 shall supersede and replace the
obligations of such Lender under any confidentiality letter in respect of this
financing signed and delivered by such Lender to any of the Borrowers prior to
the date hereof and shall be binding upon any assignee of, or purchaser of any
participation in, any interest in any of the Loans or Reimbursement Obligations
from any Lender.

18.          EXPENSES AND
INDEMNIFICATION.

18.1        Expenses. 
The Borrowers jointly and severally agree to pay (i) the reasonable
costs of producing and reproducing this Credit Agreement, the other Loan
Documents and the other agreements and instruments mentioned herein, (ii) the
reasonable fees, expenses and 

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disbursements of
the Agent’s Special Counsel or any local counsel to the Agent incurred in
connection with the preparation, syndication, administration or interpretation
of the Loan Documents and other instruments mentioned herein, each closing
hereunder, any amendments, modifications, approvals, consents or waivers hereto
or hereunder, or the cancellation of any Loan Document upon payment in full in
cash of all of the Obligations or pursuant to any terms of such Loan Document
for providing for such cancellation, (iii) the reasonable fees, expenses and
disbursements of the Agent or any of its affiliates incurred by the Agent or
such affiliate in connection with the preparation, syndication, administration
or interpretation of the Loan Documents and other instruments mentioned herein,
including all title insurance premiums and surveyor, engineering and appraisal
charges, (iv) any fees, costs, expenses and bank charges, including bank
charges for returned checks, incurred by the Agent in establishing, maintaining
or handling agency accounts, lock box accounts and other accounts for the
collection of any of the Collateral; (v) all reasonable out-of-pocket expenses
(including without limitation reasonable attorneys’ fees and costs, which
attorneys may be employees of any Lender or the Agent, and reasonable
consulting, accounting, appraisal, investment banking and similar professional
fees and charges) incurred by any Lender or the Agent in connection with (A)
the enforcement of or preservation of rights under any of the Loan Documents
against any of the Borrowers or their Subsidiaries or the administration thereof
after the occurrence of a Default or Event of Default and (B) any litigation,
proceeding or dispute whether arising hereunder or otherwise, in any way
related to any Lender’s or the Agent’s relationship with any of the Borrowers
or their Subsidiaries and (vi) all reasonable fees, expenses and disbursements
of any Lender or the Agent incurred in connection with Uniform Commercial Code
searches, Uniform Commercial Code filings or mortgage recordings.

18.2        Indemnification. 
The Borrowers jointly and severally agree to indemnify and hold harmless
the Agent, the affiliates of the Agent, and the Lenders from and against any
and all claims, actions and suits whether groundless or otherwise, and from and
against any and all liabilities, losses, damages and expenses of every nature
and character arising out of this Credit Agreement or any of the other Loan
Documents or the transactions contemplated hereby including, without
limitation, (i) any actual or proposed use by any of the Borrowers or their
Subsidiaries of the proceeds of any of the Loans or Letters of Credit, (ii) the
reversal or withdrawal of any provisional credits granted by the Agent upon the
transfer of funds from lock box, bank agency or concentration accounts or in
connection with the provisional honoring of checks or other items, (iii) any
actual or alleged infringement of any patent, copyright, trademark, service
mark or similar right of any of the Borrowers or their Subsidiaries comprised
in the Collateral, (iv) any of the Borrowers or their Subsidiaries entering
into or performing this Credit Agreement or any of the other Loan Documents or
(v) with respect to each of the Borrowers and their Subsidiaries and their
respective properties and assets, the violation of any Environmental Law, the
presence, disposal, escape, seepage, leakage, spillage, discharge, emission,
release or threatened release of any Hazardous Substances or any action, suit,
proceeding or investigation brought or threatened with respect to any Hazardous
Substances (including, but not limited to, claims with respect to wrongful
death, personal injury or damage to property), in each case including, without
limitation, the reasonable fees and disbursements of counsel and allocated
costs of internal counsel incurred in connection with any such investigation,
litigation or other proceeding; provided that no Borrower shall be liable for
any portion of such liabilities, losses, damages and expenses resulting from
the gross negligence or willful misconduct of the Agent, or any affiliate thereof.  In litigation, or the preparation therefor, 

 97
 

the Lenders, the
Agent, and the affiliates of the Agent shall be entitled to select their own
counsel and, in addition to the foregoing indemnity, the Borrowers agree to pay
promptly the reasonable fees and expenses of such counsel.  If, and to the extent that the obligations of
the Borrowers under this §18.2 are unenforceable for any reason, the Borrowers
hereby agrees to make the maximum contribution to the payment in satisfaction
of such obligations which is permissible under applicable law.

18.3        Survival. 
The covenants contained in this §18 shall survive payment or
satisfaction in full of all other Obligations.

19.          SURVIVAL OF
COVENANTS, ETC.

All covenants, agreements, representations and
warranties made herein, in the Notes, in any of the other Loan Documents or in
any documents or other papers delivered by or on behalf of any of the Borrowers
or their Subsidiaries pursuant hereto shall be deemed to have been relied upon
by the Lenders and the Agent, notwithstanding any investigation heretofore or
hereafter made by any of them, and shall survive the making by the Lenders of
any of the Loans and the issuance, extension or renewal of any Letters of
Credit, as herein contemplated, and shall continue in full force and effect so
long as any Letter of Credit or any amount due under this Credit Agreement or
the Notes or any of the other Loan Documents remains outstanding or any Lender
has any obligation to make any Loans or the Agent has any obligation to issue,
extend or renew any Letter of Credit, and for such further time as may be
otherwise expressly specified in this Credit Agreement.  All statements contained in any certificate
or other paper delivered to any Lender or the Agent at any time by or on behalf
of any of the Borrowers or their Subsidiaries pursuant hereto or in connection
with the transactions contemplated hereby shall constitute representations and
warranties by such Borrower or such Subsidiary hereunder.

20.          ASSIGNMENT AND
PARTICIPATION.

20.1        Conditions
to Assignment by Lenders.  Except as provided herein, each Lender may
assign to one or more Eligible Assignees all or a portion of its interests,
rights and obligations under this Credit Agreement (including all or a portion
of its Revolving Credit Commitment Percentage and Revolving Credit Commitment
and the same portion of the Revolving Credit Loans at the time owing to it, the
Revolving Credit Notes held by it and its participating interest in the risk
relating to any Letters of Credit, provided that (a) except in the case
of an assignment to another Lender, an affiliate of any Lender or an Approved
Fund of any Lender, each of the Agent and, unless an Event of Default shall
have occurred and be continuing, the Borrowers shall have given their prior
written consent to such assignment, which consent will not be unreasonably
withheld or delayed, (b) each such assignment shall be of a constant, and not a
varying, percentage of all the assigning Lender’s rights and obligations in
respect of its Revolving Credit Commitment Percentage and Revolving Credit
Commitment, the Revolving Credit Loans at the time owing to it, and its
participating interest in the risk relating to any Letters of Credit, (c) each
assignment shall be in a minimum amount of $3,000,000 (or if less, such Lender’s
entire Loans and Revolving Credit Commitment, or such lesser amount consented
to by the Agent); and (d) the parties to such assignment shall execute and
deliver to the Agent, for recording in the Register (as hereinafter defined),
an Assignment and Acceptance, substantially in the form of Exhibit D
hereto (an “Assignment and Acceptance”), together with 

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any Notes subject
to such assignment.  Upon such execution,
delivery, acceptance and recording, from and after the effective date specified
in each Assignment and Acceptance, which effective date shall be at least five
(5) Business Days after the execution thereof, (y) the assignee thereunder
shall be a party hereto and, to the extent provided in such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder, and (z) the
assigning Lender shall, to the extent provided in such assignment and upon
payment to the Agent of the registration fee referred to in §20.3, be released
from its obligations under this Credit Agreement.  Notwithstanding anything to the contrary set
forth herein, GE Capital, in its capacity as a Lender hereunder is permitted at
any time to assign all of its rights, obligations and liabilities hereunder to
Sun Capital or any Sun Capital Affiliate upon its execution and delivery to Sun
Capital or any Sun Capital Affiliate of an Assignment and Acceptance Agreement,
and any such assignment shall not in any case be subject to the existence or
absence of any Default or Event of Default, the delivery of promissory notes,
any minimum amount of the loans and commitments assigned, the payment of any
assignment fee or any other costs and expenses or the prior consent of any
Lender, the Borrowers, Sun Capital or the Administrative Agent.  Upon the delivery of such Assignment and
Acceptance to Sun Capital or any Sun Capital Affiliate, GE Capital shall be
discharged from its duties and obligations hereunder and under the other Loan
Documents.

20.2        Certain
Representations and Warranties; Limitations; Covenants. 
By executing and delivering an Assignment and Acceptance, the parties to
the assignment thereunder confirm to and agree with each other and the other
parties hereto as follows:

(a)           other
than the representation and warranty that it is the legal and beneficial owner
of the interest being assigned thereby free and clear of any adverse claim, the
assigning Lender makes no representation or warranty, express or implied, and
assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with this Credit Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or
value of this Credit Agreement, the other Loan Documents or any other
instrument or document furnished pursuant hereto or the attachment, perfection
or priority of any security interest or mortgage,

(b)           the
assigning Lender makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any of the Borrowers
or their Subsidiaries or any other Person primarily or secondarily liable in
respect of any of the Obligations, or the performance or observance by any of
the Borrowers or their Subsidiaries or any other Person primarily or
secondarily liable in respect of any of the Obligations of any of their
obligations under this Credit Agreement or any of the other Loan Documents or
any other instrument or document furnished pursuant hereto or thereto;

(c)           such
assignee confirms that it has received a copy of this Credit Agreement, together
with copies of the most recent financial statements referred to in §8.4 and
§9.4 and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into such Assignment and
Acceptance;

(d)           such
assignee will, independently and without reliance upon the assigning Lender,
the Agent or any other Lender and based on such documents and information as 

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it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under this Credit Agreement;

(e)           (e)           such assignee
represents and warrants that it is an Eligible Assignee;

(f)            such
assignee appoints and authorizes the Agent to take such action as agent on its
behalf and to exercise such powers under this Credit Agreement and the other
Loan Documents as are delegated to the Agent by the terms hereof or thereof,
together with such powers as are reasonably incidental thereto;

(g)           such
assignee agrees that it will perform in accordance with their terms all of the obligations
that by the terms of this Credit Agreement are required to be performed by it
as a Lender;

(h)           such
assignee represents and warrants that it is legally authorized to enter into
such Assignment and Acceptance;

(i)            such
assignee acknowledges that it has made arrangements with the assigning Lender
satisfactory to such assignee with respect to its pro rata share
of Letter of Credit Fees in respect of outstanding Letters of Credit;

(j)            such
assignee, if organized under the laws of a jurisdiction outside the United
States, shall provide the Agent and the Borrowers with the forms prescribed by
the Internal Revenue Service of the United States certifying as to its status
for purposes of determining the applicability of any exemption from United
States withholding taxes with respect to all payments to be made hereunder to
such assignee or any other documents reasonably satisfactory to the Borrowers
and the Agent indicating that all payments to be made hereunder to such
assignee are subject to such tax at a rate reduced by an applicable tax treaty.
Unless the Borrowers and the Agent have received such forms or such documents
validly indicating that payments hereunder are not subject to United States
withholding tax or are subject to such tax at a rate reduced by an applicable
tax treaty, the Borrowers or the Agent shall withhold taxes from such payments
at the applicable statutory rate in the case of payments to or for any assignee
organized under the laws of a jurisdiction outside the United States in accordance
with §6.2.2.

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20.3        Register. 
The Agent shall maintain a copy of each Assignment and Acceptance
delivered to it and a register or similar list (the “Register”) for the recordation of the names and addresses of the
Lenders and the Revolving Credit Commitment Percentage of, and principal amount
of the Loans owing to and Letter of Credit Participations purchased by, the
Lenders from time to time.  The entries
in the Register shall be conclusive, in the absence of manifest error, and each
of the Borrowers, the Agent and the Lenders may treat each Person whose name is
recorded in the Register as a Lender hereunder for all purposes of this Credit
Agreement.  The Register shall be
available for inspection by the Borrowers and the Lenders at any reasonable
time and from time to time upon reasonable prior notice. Upon each such
recordation, the assignee Lender agrees to pay to the Agent a registration fee
in the sum of $3,500.

20.4        New
Notes.  Upon its receipt of an Assignment and
Acceptance executed by the parties to such assignment, together with each Note
subject to such assignment, the Agent shall (a) record the information
contained therein in the Register, and (b) give prompt notice thereof to the
Borrowers and the Lenders (other than the assigning Lender).  Within five (5) Business Days after receipt of
such notice, the Borrowers, at their own expense, shall execute and deliver to
the Agent, in exchange for each surrendered Note, a new Note to the order of
such Eligible Assignee in an amount equal to the amount assumed by such
Eligible Assignee pursuant to such Assignment and Acceptance and, if the
assigning Lender has retained some portion of its obligations hereunder, a new
Note to the order of the assigning Lender in an amount equal to the amount
retained by it hereunder.  Such new Notes
shall provide that they are replacements for the surrendered Notes, shall be in
an aggregate principal amount equal to the aggregate principal amount of the
surrendered Notes, shall be dated the effective date of such Assignment and
Acceptance and shall otherwise be substantially the form of the assigned
Notes.  Within five (5) days of issuance
of any new Notes pursuant to this §20.4, the Borrowers shall deliver an opinion
of counsel, addressed to the Lenders and the Agent, relating to the due
authorization, execution and delivery of such new Notes and the legality,
validity and binding effect thereof, in form and substance satisfactory to the
Lenders.  The surrendered Notes shall be
cancelled and returned to the Borrowers.

20.5        Participations. 
Each Lender may sell participations to one or more banks or other
entities in all or a portion of such Lender’s rights and obligations under this
Credit Agreement and the other Loan Documents; provided that (i) each
such participation shall be in an amount of not less than $1,000,000, or such
lesser amount consented to by the Agent (ii) any such sale or participation
shall not affect the rights and duties of the selling Lender hereunder to the
Borrowers and (iii) the only rights granted to the participant pursuant to such
participation arrangements with respect to waivers, amendments or modifications
of the Loan Documents shall be the rights to approve waivers, amendments or
modifications that would reduce the principal of or the interest rate on any
Loans, extend the term or increase the amount of the Revolving Credit
Commitment of such Lender as it relates to such participant, reduce the amount
of any commitment fees or Letter of Credit Fees to which such participant is
entitled or extend any regularly scheduled payment date for principal or
interest.

20.6        Disclosure. 
Each of the Borrowers agrees that in addition to disclosures made in
accordance with standard and customary banking practices any Lender may
disclose information obtained by such Lender pursuant to this Credit Agreement
to assignees or participants and potential assignees or participants hereunder;
provided that such assignees or participants or 

 101
 

potential
assignees or participants shall agree (i) to treat in confidence such
information unless such information otherwise becomes public knowledge, (ii)
not to disclose such information to a third party, except as required by law or
legal process and (iii) not to make use of such information for purposes of
transactions unrelated to such contemplated assignment or participation.

20.7        Assignee
or Participant Affiliated with the Borrowers.  If any assignee
Lender is an Affiliate of any Borrower, then any such assignee Lender shall
have no right to vote as a Lender hereunder or under any of the other Loan
Documents for purposes of granting consents or waivers or for purposes of
agreeing to amendments or other modifications to any of the Loan Documents or
for purposes of making requests to the Agent pursuant to §14.1 or §14.2, and the
determination of the Majority Lenders shall for all purposes of this Credit
Agreement and the other Loan Documents be made without regard to such assignee
Lender’s interest in any of the Loans or Reimbursement Obligations.  If any Lender sells a participating interest
in any of the Loans or Reimbursement Obligations to a participant, and such
participant is a Borrower or an Affiliate of any Borrower, then such transferor
Lender shall promptly notify the Agent of the sale of such participation.  A transferor Lender shall have no right to
vote as a Lender hereunder or under any of the other Loan Documents for
purposes of granting consents or waivers or for purposes of agreeing to
amendments or modifications to any of the Loan Documents or for purposes of making
requests to the Agent pursuant to §14.1 or §14.2 to the extent that such
participation is beneficially owned by a Borrower or any Affiliate of any
Borrower, and the determination of the Majority Lenders shall for all purposes
of this Credit Agreement and the other Loan Documents be made without regard to
the interest of such transferor Lender in the Loans or Reimbursement
Obligations to the extent of such participation.  The provisions of this §20.7 shall not apply
to an assignee Lender or participant which has disclosed to the other Lenders
that it is an Affiliate of any Borrower and which, following such disclosure,
has been excepted from the provisions of this §20.7 in a writing signed by the
Majority Lenders determined without regard to the interest of such assignee
Lender or transferor Lender, to the extent of such participation, in Loans or
Reimbursement Obligations.

20.8        Miscellaneous
Assignment Provisions.  Any assigning Lender shall retain its rights
to be indemnified pursuant to §18 with respect to any claims or actions arising
prior to the date of such assignment. Anything contained in this §20 to the
contrary notwithstanding, any Lender may at any time pledge all or any portion
of its interest and rights under this Credit Agreement (including all or any
portion of its Notes) to any of the twelve Federal Reserve Bank organized under
§4 of the Federal Reserve Act, 12 U.S.C. §341. 
No such pledge or the enforcement thereof shall release the pledgor
Lender from its obligations hereunder or under any of the other Loan
Documents.  Notwithstanding any other
provision in this Agreement, any Lender that is a fund that invests in bank
loans may, without the consent of the Agent or the Borrowers, pledge all or any
portion of any Loan or any Note held by it to any trustee for, or any other
representative of, investors in, or holders of equity securities issued, by
such fund, as security for such investment or securities; provided that any
foreclosure or similar action by such trustee shall be subject to the provisions
of this §20 concerning assignments.

20.9        Assignment
by Borrowers.  None of the Borrowers shall assign or
transfer any of its rights or obligations under any of the Loan Documents
without the prior written consent of each of the Lenders.

 102
 

20.10      Special
Purpose Funding Vehicle.  Notwithstanding
anything to the contrary contained in this §20, any Lender (a “Granting Lender”) may grant to a special
purpose funding vehicle (an “SPC”) of such
Granting Lender, identified as such in writing from time to time delivered by
the Granting Lender to the Agent and the Borrowers, the option to provide to
the Borrowers all or any part of any Loan that such Granting Lender would
otherwise be obligated to make to the Borrowers pursuant to this Credit
Agreement, provided that (a) nothing herein
shall constitute a commitment to make any Loan by any SPC, (b) the Granting
Bank’s obligations under this Credit Agreement shall remain unchanged, (c) the
Granting Lender should retain the sole right to enforce this Credit Agreement
and to approve any amendment, modification or waiver of any provision of this
Credit Agreement and (d) if an SPC elects not to exercise such option or
otherwise fails to provide all or any part of such Loan, the Granting Lender
shall be obligated to make such Loan pursuant to the terms hereof.  The making of a Loan by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as
if, such Loan were made by the Granting Lender. 
Each party hereto hereby agrees that no SPC shall be liable for any
expense reimbursement, indemnity or similar payment obligation under this
Credit Agreement (all liability for which shall remain with the Granting
Lender).  In furtherance of the
foregoing, each party hereto hereby agrees (which agreement shall survive the
termination of this Credit Agreement) that, prior to the date that is one year
and one day after the later of (i) the payment in full of all outstanding
senior indebtedness of any SPC and (ii) the Revolving Credit Loan Maturity Date,
it will not institute against, or join any other person in instituting against,
such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or similar proceedings under the laws of the United States of
America or any State thereof.  In
addition, notwithstanding anything to the contrary contained in this §20.10,
any SPC may (A) with notice to, but (except as specified below) without the
prior written consent of, the Borrowers or the Agent and without paying any
processing fee therefor, assign all or a portion of its interests in any Loans
to its Granting Lender or to any financial institutions (consented to by the
Agent and, so long as no Default or Event of Default has occurred and is
continuing, the Borrowers, which consents shall not be unreasonably withheld or
delayed) providing liquidity and/or credit facilities to or for the account of
such SPC to fund the Loans made by such SPC or to support the securities (if
any) issued by such SPC to fund such Loans and (B) disclose on a confidential
basis any non-public information relating to its Loans (other than financial
statements referred to in §8.4) to any rating agency, commercial paper dealer
or provider of a surety, guarantee or credit or liquidity enhancement to such SPC.  In no event shall the Borrowers be obligated
to pay to an SPC that has made a Loan any greater amount than the Borrowers
would have been obligated to pay under this Agreement if the Granting Lender
had made such Loan.  An amendment to this
§20.10 without the written consent of an SPC shall be ineffective insofar as it
alters the rights and obligations of such SPC.

21.          NOTICES, ETC.

Except as otherwise expressly provided in this Credit
Agreement, all notices and other communications made or required to be given
pursuant to this Credit Agreement or the Notes or any Letter of Credit
Applications shall be in writing and shall be delivered in hand, mailed by
United States of America registered or certified first class mail, postage
prepaid, sent by overnight courier, or sent by telegraph, telecopy, facsimile
or telex and confirmed by delivery via courier or postal service, addressed as
follows:

 103
 

(a)           if
to the Borrowers, at 5660 Katella Avenue, Suite 100, Cypress, California,
90630, Attention: Chief Financial Officer, with a copy to Morgan, Lewis &
Bockius LLP, 101 Park Avenue, New York, New York, 10178-0060, Attention:
Richard S. Petretti, Esq., or at such other address for notice as the Borrowers
shall last have furnished in writing to the Person giving the notice.”

(b)           if
to the Agent, at 8377 East Hartford Drive, Suite 200, Scottsdale, Arizona
85255, Attention: Syndication Servicing, with a copy to Latham & Watkins
LLP, 5800 Sears Tower, Chicago, Illinois 
60606, Attention: Jeffrey G. Moran, or such other address for notice as
the Agent shall have last furnished to the Person giving such notice;

(c)           if
to any Lender, at such Lender’s address set forth on Schedule 1 hereto, or
such other address for notice as such Lender shall have last furnished in
writing to the Person giving the notice; and

(d)           if
to the Parent, at 5660 Katella Avenue, Suite 100, Cypress, California, 90630,
Attention: Steven L. Tanner, Chief Financial Officer, Anthony Polazzi, Vice
President and Clarence E. Terry, Vice President, with a copy to Morgan, Lewis
& Bockius LLP, 101 Park Avenue, New York, New York, 10178-0060, Attention:
Richard S. Petretti, Esq., or at such other address for notice as the Parent
shall last have furnished in writing to the Person giving the notice.

Any such notice or demand shall be deemed to have been
duly given or made and to have become effective (i) if delivered by hand,
overnight courier or facsimile to a responsible officer of the party to which
it is directed, at the time of the receipt thereof by such officer or the
sending of such facsimile and (ii) if sent by registered or certified
first-class mail, postage prepaid, on the third Business Day following the
mailing thereof.

22.          GOVERNING LAW.

THIS CREDIT AGREEMENT AND, EXCEPT AS OTHERWISE
SPECIFICALLY PROVIDED THEREIN, EACH OF THE OTHER LOAN DOCUMENTS ARE CONTRACTS
UNDER THE LAWS OF THE STATE OF ILLINOIS AND SHALL FOR ALL PURPOSES BE CONSTRUED
IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SAID STATE OF ILLINOIS
(EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW).  EACH OF THE BORROWERS AGREES THAT ANY SUIT
FOR THE ENFORCEMENT OF THIS CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS
MAY BE BROUGHT IN THE COURTS OF THE STATE OF ILLINOIS OR ANY FEDERAL COURT SITTING
THEREIN AND CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE
OF PROCESS IN ANY SUCH SUIT BEING MADE UPON THE BORROWERS BY MAIL AT THE
ADDRESS SPECIFIED IN §21.  EACH OF THE
BORROWERS HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN
INCONVENIENT COURT.

 104
 

23.          HEADINGS.

The captions in this Credit Agreement are for
convenience of reference only and shall not define or limit the provisions
hereof.

24.          COUNTERPARTS.

This Credit Agreement and any amendment hereof may be
executed in several counterparts and by each party on a separate counterpart,
each of which when executed and delivered shall be an original, and all of
which together shall constitute one instrument. 
In proving this Credit Agreement it shall not be necessary to produce or
account for more than one such counterpart signed by the party against whom
enforcement is sought.

25.          ENTIRE AGREEMENT, ETC.

The Loan Documents and any other documents executed in
connection herewith or therewith express the entire understanding of the
parties with respect to the transactions contemplated hereby.  Neither this Credit Agreement nor any term
hereof may be changed, waived, discharged or terminated, except as provided in
§27.

26.          WAIVER OF JURY TRIAL.

Each of the Borrowers hereby waives its right to a
jury trial with respect to any action or claim arising out of any dispute in
connection with this Credit Agreement, the Notes or any of the other Loan
Documents, any rights or obligations hereunder or thereunder or the performance
of which rights and obligations.  Except
as prohibited by law, each of the Borrowers hereby waives any right it may have
to claim or recover in any litigation referred to in the preceding sentence any
special, exemplary, punitive or consequential damages or any damages other
than, or in addition to, actual damages. 
Each of the Borrowers (i) certifies that no representative, agent or
attorney of any Lender or the Agent has represented, expressly or otherwise,
that such Lender or the Agent would not, in the event of litigation, seek to
enforce the foregoing waivers and (ii) acknowledges that the Agent and the
Lenders have been induced to enter into this Credit Agreement, the other Loan
Documents to which it is a party by, among other things, the waivers and
certifications contained herein.

27.          CONSENTS, AMENDMENTS,
WAIVERS, ETC.

Except as otherwise expressly provided in this Credit
Agreement, any consent or approval required or permitted by this Credit
Agreement to be given by the Lenders may be given, and any term of this Credit
Agreement, the other Loan Documents or any other instrument related hereto or
mentioned herein may be amended, and the performance or observance by any of
the Borrowers or their Subsidiaries of any terms of this Credit Agreement, the
other Loan Documents or such other instrument or the continuance of any Default
or Event of Default may be waived (either generally or in a particular instance
and either retroactively or prospectively) with, but only with, the written
consent of the Borrowers and the written consent of the Majority Lenders.  Notwithstanding the foregoing, (a) the rate
of interest on the Notes may not be decreased (other than interest accruing pursuant
to §6.10.2 following the effective date of any waiver by the Majority Lenders
of the Default or Event of Default relating thereto), (b) all or any 

 105
 

portion of the Collateral with a book value equal to
or greater than 50% of the aggregate book value of the Collateral prior to such
release may not be released, (c) no Borrower or any Person that is liable,
whether directly or contingently, for payment obligations hereunder may be
released and (d) the term of the Notes, the timing or amount of any required
payments of principal and interest hereunder, any rates of interest payable
hereunder, the amount of the Revolving Credit Commitments of the Lenders, the
amount of commitment fees or Letter of Credit Fees hereunder, the definition of
Majority Lenders and this §27 may not be changed without the written consent of
the Borrowers and the written consent of each of the Lenders affected thereby;
and the amount of the Agent’s fee under the Fee Letter, the Letter of Credit
Fees or any other fees or amounts payable for the Agent’s account, and §5 or §16
may not be amended without the written consent of the Agent.  No waiver shall extend to or affect any
obligation not expressly waived or impair any right consequent thereon.  No course of dealing or delay or omission on
the part of the Agent or any Lender in exercising any right shall operate as a
waiver thereof or otherwise be prejudicial thereto.  No notice to or demand upon any Borrower
shall entitle any Borrower to other or further notice or demand in similar or
other circumstances. Notwithstanding anything in this §27 to the contrary, the
Agent may terminate its security interest in and otherwise release any
Collateral or any Borrower sold, transferred or otherwise disposed of by any
Borrower or any Subsidiary of any Borrower if such disposition is in compliance
with §10.5.2 and otherwise with the terms hereof .

28.          SEVERABILITY.

The provisions of this Credit Agreement are severable
and if any one clause or provision hereof shall be held invalid or
unenforceable in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof,
in such jurisdiction, and shall not in any manner affect such clause or
provision in any other jurisdiction, or any other clause or provision of this Credit
Agreement in any jurisdiction.

29.          RIGHT TO PUBLICIZE.

Each of the Borrowers hereby acknowledges that the
Agent will have the right to publicize the transactions contemplated hereby by
means of a tombstone advertisement or other customary advertisement in
newspapers and other periodicals.  The
Agent agrees to provide the Borrowers with the opportunity to review any such
tombstone advertisement prior to publication thereof and to provide reasonable
comments as to the accuracy and contents thereof.

30.          USURY.

All agreements between the Borrowers, the Agent and
the Lenders are hereby expressly limited so that in no contingency or event
whatsoever, whether by reason of acceleration of the maturity of the
indebtedness evidenced hereby, by any Note or otherwise, shall the amount paid
or agreed to be paid to the Lenders and the Agent for the use or the
forbearance of the Indebtedness evidenced hereby or by the Notes exceed the
maximum amount permissible under applicable law.  As used herein, the term “applicable law”
shall mean the law in effect as of the date hereof provided, however, that in
the event there is a change in the law which results in a higher permissible
rate of interest, then this Credit Agreement, the Notes and the other Loan
Documents shall be governed by such new law as of its effective date.  In this regard, it is 

 106
 

expressly agreed that it is the intent of the
Borrowers, the Agent and the Lenders, in the execution, delivery and acceptance
of the Notes, to contract in strict compliance with the laws of the
Commonwealth of Massachusetts from time to time in effect.  If, under any circumstances whatsoever,
performance or fulfillment of any provision of this Credit Agreement, the Notes
or any of the other Loan Documents at the time such provision is to be
performed or fulfilled shall involve exceeding the limit of validity prescribed
by applicable law, then the obligation so to be performed or fulfilled shall be
reduced automatically to the limits of such validity, and if under any
circumstances whatsoever the Lenders and the Agent should ever receive as
interest an amount which would exceed the highest lawful rate, such amount
which would be excessive interest shall be applied to the reduction of the
principal balance evidenced by the Notes and not to the payment of
interest.  The provisions of this §30
shall control every other provision of this Credit Agreement and the Notes.

31.          TRANSITIONAL
ARRANGEMENTS.

31.1        Existing
Credit Agreement Superseded.  This Credit Agreement shall on the Closing
Date amend and restate the Existing Credit Agreement in its entirety, except as
provided in this §31, and shall for all purposes be the Credit Agreement
referred to in each of the other Loan Documents without further amendment
thereof.  The Loan Documents executed in
connection with the Existing Credit Agreement that are not amended and restated
by the corresponding Loan Documents executed and delivered in connection with
this Agreement shall remain in full force and effect and each Borrower hereby
ratifies and reaffirms all of its respective payment and performance
obligations, contingent or otherwise, under each of such Loan Documents to
which it is a party.  On the Closing
Date, the rights and obligations of the parties evidenced by the Existing
Credit Agreement shall be evidenced by this Credit Agreement and the other Loan
Documents, the “Revolving Credit Loans” as defined in the Existing Credit
Agreement shall be converted to Loans as defined herein, and all outstanding
letters of credit issued under the Existing Credit Agreement prior to the
Closing Date shall, for purposes of this Credit Agreement, be Letters of
Credit.

31.2        Interest
and Fees Under Superseded Agreement.  All interest and fees and expenses, if any,
owing or accruing under or in respect of the Existing Credit Agreement through
the Closing Date shall be calculated as of the Closing Date (prorated in the
case of any fractional periods), and shall be paid on the Closing Date in
accordance with the method specified in the Existing Credit Agreement.

32.          PATRIOT ACT. 
Each Lender that is subject to the Patriot Act hereby notifies the
Borrower that pursuant to the requirements of the Patriot Act, it is required
to obtain, verify and record information that identifies the Borrower, which
information includes the name and address of the Borrower and other information
that will allow such Lender to identify the Borrower in accordance with the
Patriot Act.

[Remainder of Page Intentionally Left Blank]

 107

IN WITNESS WHEREOF, the undersigned have duly executed
this Credit Agreement as a sealed instrument as of the date first set forth
above.

	
   

  	
  REAL MEX RESTAURANTS, INC.

  
	
   

  	
  ACAPULCO RESTAURANTS, INC.

  
	
   

  	
  EL TORITO FRANCHISING COMPANY

  
	
   

  	
  EL TORITO RESTAURANTS, INC.

  
	
   

  	
  TARV, INC.

  
	
   

  	
  ACAPULCO RESTAURANT OF VENTURA, INC.

  
	
   

  	
  ACAPULCO RESTAURANT OF WESTWOOD, INC.

  
	
   

  	
  ACAPULCO MARK CORP.

  
	
   

  	
  MURRAY PACIFIC

  
	
   

  	
  ALA DESIGN, INC.

  
	
   

  	
  REAL MEX FOODS, INC.

  
	
   

  	
  ACAPULCO RESTAURANT OF DOWNEY, INC.

  
	
   

  	
  ACAPULCO RESTAURANT OF MORENO VALLEY,

  INC.

  
	
   

  	
  EL PASO CANTINA, INC.

  
	
   

  	
  CKR ACQUISITION CORP.

  
	
   

  	
  CHEVYS RESTAURANTS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven L. Tanner

  	
   

  
	
   

  	
  Name:  Steven L. Tanner

  
	
   

  	
  Title:     Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Wire Transfers:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Real Mex Restaurants, Inc.

  
	
   

  	
  Wells Fargo Bank

  
	
   

  	
  Long Beach, CA

  
	
   

  	
  ABA 121 000 248

  
	
   

  	
  Account 4121350482

  

 

 

	
  

  	
  GENERAL ELECTRIC CAPITAL CORPORATION,

  as Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kelly A. Hallford

  	
   

  
	
   

  	
  Name:  Kelly A. Hallford

  
	
   

  	
  Title:     Authorized
  Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for payments:

  
	
   

  	
   

  
	
   

  	
  ABA No. 021-001-033

  
	
   

  	
  Account Number 50279791

  
	
   

  	
  Deutsche Bank Trust Company Americas

  
	
   

  	
  New York, New York

  
	
   

  	
  Account Name: GECC/CAF DEPOSITORY

  
	
   

  	
  Reference: Contract 32700/Real Mex

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