Document:

Exhibit
      10.36

    
 

     

    FEE
      AGREEMENT

     

    This
      Fee
      Agreement (the "Agreement") is made and entered into as of December 19, 2007
      among El Pollo Loco, Inc. (the "Company"), a Delaware corporation, Chicken
      Acquisition Corp. ("CAC"), a Delaware corporation, and Trimaran Fund II, LLC
      ("Provider"), a Delaware limited liability company.

     

    WHEREAS,
      the Company is required to post a bond (the "Bond") securing its obligation
      to
      pay a judgment (the "Judgment") in connection with the El Pollo Loco S.A. de
      C.V. v. El Pollo Loco, Inc. litigation (the "Litigation"); 

     

    WHEREAS,
      Provider agrees to assist the Company in posting the Bond by entering into
      the
      following agreements: (1) a Reimbursement Agreement, dated the date hereof
      (the
      "Reimbursement Agreement"), among Provider, CIBC as Administrative Agent, in
      respect of a letter of credit to be posted to secure the Bond, in consideration
      for the Company and CAC entering into this Agreement and (2) a payment and
      subscription agreement, dated the date hereof (the "Payment and Subscription
      Agreement"), among Provider, the Company and CAC, pursuant to which the Company
      or CAC, as the case may be, shall reimburse Provider for any amounts paid by
      Provider, directly or indirectly, relating to the Bond or the
      Judgment.

     

    NOW,
      THEREFORE, in consideration of the mutual promises, covenants, representations
      and warranties herein contained, the Company, CAC and Provider hereby agree
      as
      follows:

     

    1. Fees.
      

     

    (a) Up-Front
      Fee.
      On the
      date hereof, the Company shall pay to Provider a fee equal to 3% (the "Up-Front
      Fee") of the stated amount of the Letter of Credit (as defined in the
      Reimbursement Agreement), which fee shall be earned, due and payable in full
      immediately upon Provider's entering into the Reimbursement Agreement in any
      one
      or more of the forms of consideration provided for in Section 1(c) below, at
      Provider's option. 

     

    (b) Periodic
      Fee and Fee Upon Provision of Cash Collateral.
      In the
      event that, after the Company pays the Up-Front Fee to Provider, Provider is
      required to pay any amount(s) (each such amount, a "Periodic Fee") in connection
      with the Letter of Credit other than the Cash Collateral Fee (as defined below),
      the Company shall pay, in any one or more of the forms of consideration provided
      for in Section 1(c) below, at Provider’s option, a fee equal to such amount(s)
      to Provider on or before each date such amount(s) is due and payable by
      Provider. In the event that the Provider provides cash collateral pursuant
      to
      Section 2.02 of the Reimbursement Agreement, the Company shall owe to Provider
      a
      fee at a per annum rate equal to 13.25% (the "Cash Collateral Fee" and, together
      with the Up-Front Fee and any Periodic Fees, the "Fees") of the amount of cash
      collateral so provided. The Cash Collateral Fee shall be due and payable
      quarterly in arrears, in each case, in any one or more of the forms of
      consideration provided for in Section 1(c) below, at Provider's
      option.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c) Fee
      Payment or Subscription.
      At each
      Closing (as defined below) upon the terms and subject to the conditions set
      forth in this Agreement, as payment of any Fees to be paid at such Closing,
      at
      Provider's option:

     

    (i) the
      Company or CAC shall pay Provider or Provider's designee an amount in U.S.
      dollars in immediately available funds equal to up to the Fees to be paid at
      such Closing;

     

    (ii) the
      Company or CAC, at Provider's option, shall issue to Provider or Provider's
      designee a promissory note with a principal amount equal to up to the Fees
      to be
      paid at such Closing containing terms substantially similar to those set forth
      in Schedule A hereto, subject to applicable preemptive rights as described
      below;

     

    (iii) Provider
      or Provider's designee shall automatically, and with no further action by any
      party hereto, have a right of payment due immediately from the Company or CAC,
      at Provider's option, for payment in full of an amount equal to up to the Fees
      to be paid at such Closing, accruing interest at a rate of 13.25% per annum,
      compounded annually, which rate shall increase by 0.50% per calendar quarter
      (with the first such increase occurring at the beginning of the second calendar
      quarter after the Closing) up to a maximum rate of 17.5% per annum;

     

    (iv) CAC
      shall
      issue to Provider or Provider's designee shares of Convertible Preferred Stock,
      par value $0.01 per share (the "Convertible Preferred Stock"), in CAC at a
      price
      per share and on terms substantially similar to those set forth in Schedule
      B
      hereto in an aggregate issue price equal to up to Fees to be paid at such
      Closing, subject to applicable preemptive rights as described
      below;

     

    (v) CAC
      shall
      issue to Provider or Provider's designee shares of common stock, par value
      $0.01
      per share (the "Common Stock"), of CAC at a price per share as set forth in
      Schedule C hereto in an aggregate amount equal to up to Fees to be paid at
      such
      Closing, subject to applicable preemptive rights as described below;
      or

     

    (vi) Provider
      may choose any combination of (i) through (v) above for an aggregate amount
      equal to up to Fees to be paid at such Closing; 

     

    provided that,
      Provider may choose options (i) through (vi) only to the extent that such
      options do not result in a default under the terms of the Company's or CAC's
      outstanding indebtedness at the time of the Closing; provided further
      that any
      Issuance (as defined below), including any issuance pursuant to Section 1(d)
      below, to a party to the LLC Operating Agreement (as defined below) shall be
      held, at Provider's option, either: (i) directly by the purchasing stockholder
      or (ii) through Trimaran Pollo Partners, LLC. For purposes of this Agreement,
      the "Payment" shall mean any of (i) through (vi) above.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (d) Preemptive
      Rights.
      Any
      issuance of shares or debt securities under this Agreement or the Fee Agreement
      (each, an "Issuance") pursuant to Sections 1(c)(ii), (iv), (v) or (vi) above
      shall be subject to applicable preemptive rights pursuant to the Stockholders
      Agreement (the "Stockholders Agreement"), dated November 18, 2005, by and among
      CAC and the stockholders listed therein, and the Second Amended and Restated
      Limited Liability Company Operating Agreement (the "LLC Operating Agreement"),
      dated March 8, 2006, of Trimaran Pollo Partners, LLC. To the extent any parties
      to such agreements elect to exercise applicable preemptive rights with respect
      to any Issuance, at Provider's option:

     

    (i) upon
      such
      Issuance, Provider shall sell to each party who has duly exercised applicable
      preemptive rights the number of shares or debt securities (or pro rata portion
      of such debt security, as the case may be) as to which such preemptive rights
      have been exercised at a price per share or per debt security equal to the
      price
      per share or per debt security in the Issuance; or 

     

    (ii) CAC
      shall
      (A) repurchase from Provider the number of shares or debt securities as to
      which
      such preemptive rights have been duly exercised at a price per share or per
      debt
      security equal to the price per share or per debt security in the Issuance
      and
      (B) sell such shares or debt securities to each party who has duly exercised
      applicable preemptive rights.

     

    (e) Closings.
      

     

    (i) The
      closing of the Up-Front Fee (the "Up-Front Fee Closing") shall take place on
      the
      date on which all of the conditions set forth in Section 3(a)(i) of this
      Agreement have been satisfied or waived (other than those conditions which
      by
      their terms are intended to be satisfied at the Closing) at the offices of
      Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, New
      York 10036, or on such other date as mutually agreed by the parties to this
      Agreement.

     

    (ii) The
      closing of each Periodic Fee or Cash Collateral Fee (together with the Up-Front
      Fee Closing, each a "Closing") shall take place no later than five days after
      all of the conditions set forth in Section 3(a)(ii) of this Agreement have
      been
      satisfied or waived (other than those conditions which by their terms are
      intended to be satisfied at such Closing) at the offices of Skadden, Arps,
      Slate, Meagher & Flom LLP, Four Times Square, New York, New York 10036, or
      on such other date as mutually agreed by the parties to this
      Agreement.

     

    (f) Blue
      Sky Compliance.
      The
      Company, Provider and CAC shall comply with all state securities or "blue sky"
      laws which are applicable to the Payment hereunder, and Provider agrees to
      provide the Company and CAC with such information, and cooperate with such
      filings, as may be required in connection with such compliance. 

     

    
      
         

      

      
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    (g) Stockholders
      Agreement.
      If
      shares of capital stock are to be issued pursuant to this Agreement or the
      Fee
      Agreement, (i) the Provider shall, if necessary, execute a Joinder (the
      "Joinder") to the Stockholders Agreement pursuant to which Provider becomes
      a
      party to the Stockholders Agreement as an Additional Stockholder (as defined
      in
      the Stockholders Agreement) and bound by the provisions thereto and (ii) CAC
      shall cause such amendments to the Stockholders Agreement as are required
      pursuant to the terms thereto to reflect Provider or Provider’s designee, as
      applicable, as an Additional Stockholder.

     

    (h) Compliance
      with Indentures.
      If
      requested by Trimaran, the Company or CAC, as applicable, shall engage (at
      the
      Company or CAC's expense, as applicable) an investment banking firm of national
      standing to give an opinion as to the fairness to the Company or CAC, as the
      case may be, of the transactions contemplated by this Agreement. Each of the
      Company and CAC shall use best efforts to comply with Section 4.11 of the
      Indenture, dated as of November 18, 2005, among El Pollo Loco, Inc. (as
      successor to EPL Finance Corp. by merger), EPL Intermediate, Inc. and The Bank
      of New York Trust Company, N.A., as trustee (the "EPL Indenture") and Section
      4.11 of the Indenture, dated as of November 18, 2005, between EPL Intermediate,
      Inc. (as successor to EPL Intermediate Finance Corp. by merger) and The Bank
      of
      New York Trust Company, N.A., as trustee (the "Intermediate Indenture" and,
      together with the EPL Indenture, the Indentures), to the extent applicable,
      including by delivering an officer's certificate or fairness opinion if
      required; provided
      that, if
      either the Company or CAC are unable to so comply with the Indentures, this
      Agreement shall be modified by the parties but only to the extent required
      to so
      comply with the Indentures. 

     

    2. Representations
      and Warranties and Other Agreements.

     

    (a) Representations
      and Warranties and Agreements of Provider.
      Provider represents and warrants to, and agrees with, the Company and CAC that,
      as of the date hereof and as of each Closing:

     

    (i) Any
      shares of capital stock (the "Shares"), notes or obligations acquired by
      Provider pursuant to this Agreement (collectively with the Shares, "Securities")
      are for Provider's own account for investment purposes or to satisfy preemptive
      rights pursuant to the Stockholders Agreement or the LLC Operating Agreement
      and
      not with a view to distribution of the Securities or for sale in violation
      of the Securities Act of 1933, as amended, and the rules and regulations in
      effect from time to time thereunder (the "Securities Act") or other applicable
      law; provided that the disposition of Provider's property shall at all times
      be
      within Provider's control.

     

    (ii) Provider
      has been advised by the Company and CAC that: (A) neither the offer nor
      sale of any Securities has been registered under the Securities Act or any
      state
      or foreign securities or "blue sky" laws and neither the Company nor CAC is
      required to register the Securities; (B) the Securities, when issued, are
      characterized as "restricted securities" under the Securities Act as they are
      being acquired from CAC in a transaction not involving a public offering and
      that Provider may not resell the Securities and must continue to bear the
      economic risk of the investment in its Securities unless the offer and sale
      of
      the Securities is subsequently registered under the Securities Act and all
      applicable state or foreign securities or "blue sky" laws or an exemption from
      such registration is available; (C) it is not anticipated that there will
      be any public market for the Securities in the foreseeable future; (D) when
      and if the Securities may be disposed of without registration under the
      Securities Act in reliance on Rule 144, such disposition can be made only in
      limited amounts in accordance with the terms and conditions of such Rule;
      (E) if the Rule 144 exemption is not available, public offer or sale of any
      Securities without registration will require the availability of another
      exemption under the Securities Act; (F) a restrictive legend in the form
      satisfactory to CAC shall be placed on the certificates representing the
      Securities; and (G) a notation shall be made in the appropriate records of
      CAC indicating that the Securities are subject to restrictions on transfer
      and,
      if CAC should engage the services of a stock transfer agent, appropriate stop
      transfer restrictions will be issued to such stock transfer agent. 

     

    
      
         

      

      
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    (iii) Provider
      is an "accredited investor" as defined in the Securities Act and Provider has
      such knowledge, skill and experience in business, financial and investment
      matters so that Provider is capable of evaluating the merits, risks and
      consequences of an investment in the Securities to be purchased by it and is
      able to bear the economic risk of the loss of its investment.

     

    (iv) Provider
      is duly organized, validly existing and in good standing under the laws of
      its
      jurisdiction of organization. 

     

    (v) Provider
      has all the requisite power and authority to execute and deliver this Agreement
      and to perform its obligations hereunder. 

     

    (vi) This
      Agreement has been duly and validly authorized, executed and delivered by
      Provider.

     

    (vii) This
      Agreement constitutes the valid, binding and enforceable agreement of Provider
      except as enforceability may be limited by (A) applicable bankruptcy,
      insolvency, reorganization, moratorium, fraudulent conveyance or other similar
      laws relating to or affecting creditor’s rights generally and (B) general
      principles of equity (regardless of whether such enforceability is considered
      in
      a proceeding in equity or at law).

     

    (viii) The
      execution, delivery and performance by Provider of this Agreement does not
      and
      will not (A) violate any provision of Provider's organizational documents,
      (B) constitute or result in a breach of or a default (or an event which,
      with notice or lapse of time, or both, has the potential of constituting a
      default) under any agreement to which Provider is a party, (C) violate any
      law binding upon Provider or to which any of its assets are subject or
      (D) require the consent of any third party or governmental body or agency,
      except with respect to clauses (B), (C) and (D) above, as would not reasonably
      be expected to have a material adverse effect on Provider.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (b) Representations
      and Warranties of the Company and CAC.
      Each of
      the Company and CAC (each, as "Representing Party") represents and warrants,
      as
      to itself, to Provider that, as of the date hereof and as of each
      Closing:

     

    (i) The
      Representing Party is a corporation duly organized, validly existing and in
      good
      standing
      under the laws of the State of Delaware.

     

    (ii) The
      Representing Party has the requisite corporate power and authority to execute
      and deliver this Agreement and to perform its obligations hereunder.

     

    (iii) This
      Agreement has been duly and validly authorized, executed and delivered by the
      Representing Party. 

     

    (iv) This
      Agreement constitutes the valid, binding and enforceable agreement of the
      Representing Party, except as such enforceability may be limited by
      (A) applicable bankruptcy, insolvency, reorganization, moratorium,
      fraudulent conveyance or other similar laws relating to or affecting creditors’
rights generally and (B) general principles of equity (regardless of
      whether such enforceability is considered in a proceeding in equity or at
      law).

     

    (v) The
      execution, delivery and performance by the Representing Party of this Agreement
      does not and will not (A) violate any provision of the Representing Party’s
      Certificate of Incorporation or By-laws, (B) constitute or result in a
      breach of or a default (or an event which, with notice or lapse of time, or
      both, has the potential of constituting a default) under any agreement to which
      the Representing Party is a party, (C) violate any law binding upon the
      Representing Party or to which any of its assets are subject or (D) require
      the consent of any third party or governmental body or agency.

     

    (vi) The
      Shares, upon issuance by CAC pursuant to this Agreement, will be duly
      authorized, validly issued, fully paid and non-assessable.

     

    (vii) Assuming
      the accuracy of the representations set forth in Section 2 hereof, the offer
      and
      sale of the Securities is not required to be registered under the Securities
      Act. 

     

    3. Conditions
      to Performance.

     

    (a) Conditions
      to the Company and CAC's Obligations at each Closing.
      

     

    (i) The
      Company and CAC’s obligation to consummate the Up-Front Fee Closing is subject
      to the satisfaction or waiver by the Company and CAC of the following
      conditions: (A) Provider shall have executed the Reimbursement Agreement, (B)
      Provider shall have provided notice to the Company and CAC of the form of
      Payment pursuant to Section 1(c) of this Agreement, and (C) if any Shares are
      to
      be issued at the Closing, Provider or Provider's designee, as applicable, shall
      have executed the Joinder, if necessary.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (ii) The
      Company and CAC's obligation to consummate each Closing subsequent to the
      Up-Front Fee Closing is subject
      to
      satisfaction or waiver by the Company and CAC of the following conditions:
      (A)
      the Cash Collateral Fee shall be due and payable, (B) Provider shall have
      provided notice to the Company and CAC of the form of Payment pursuant to
      Section 1(c) of this Agreement, and (C) if any Shares are to be issued at the
      Closing, Provider or Provider's designee, as applicable, shall have executed
      the
      Joinder, if necessary.

     

    (b) Conditions
      to Provider's Obligations.
      The
      obligation of Provider to consummate each Closing is subject to satisfaction
      or
      waiver by Provider of the following conditions: (i) the performance by the
      Company and CAC at or prior to the Closing of all of the agreements of the
      Company contemplated to be performed hereunder at or prior to the Closing,
      (ii)
      the accuracy of the representations and warranties of the Company and CAC
      contained in Section 2 hereof, (iii) no statute, rule, regulation or order
      of
      any court or administrative agency being in effect which prohibits the Company,
      CAC or Provider from consummating the transactions contemplated hereby, and
      (iv)
      if any Shares are to be issued at the Closing, CAC shall have executed the
      Joinder and any applicable amendments to the Stockholders
      Agreement.

     

    4. Survival.
      The
      representations and warranties of the parties set forth in this Agreement shall
      survive each Closing.

     

    5. Binding
      Effect.
      The
      provisions of this Agreement shall be binding upon and shall inure to the
      benefit of the parties hereto and the heirs, successors and assigns of the
      parties hereto.

     

    6. Fees
      and Expenses.
      Each of
      the Company and CAC shall bear its own costs and expenses, and the Company
      shall
      bear the costs and expenses of Provider, in connection with the negotiation,
      execution and delivery of this Agreement and the other documents related
      hereto.

     

    7. Assignment.
      None of
      the parties to this Agreement shall assign any rights under this Agreement
      without the prior written consent of the other parties hereto; provided that
      Provider
      may assign its rights and obligations under this Agreement without the consent
      of any party hereto, provided that such assignment shall not relieve Provider
      of
      its obligations under this Agreement. Except as expressly set forth in this
      Agreement, this Agreement shall inure to the benefit of, and be binding upon,
      the permitted successors and assigns of each of the parties to this Agreement.
      Except as provided in this Section 7, any attempted assignment under this
      Agreement by any party to this Agreement which has not been consented to by
      the
      other parties shall be void. 

     

    
      
         

      

      
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    8. Applicable
      Law.
      THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK.

     

    9. Invalidity
      of Provisions.
      The
      invalidity or unenforceability of any provision of this Agreement in any
      jurisdiction shall not affect the validity or enforceability of the remainder
      of
      this Agreement in that jurisdiction or the validity or enforceability of this
      Agreement, including that provision, in any other jurisdiction.

     

    10. Headings;
      Execution in Counterparts.
      The
      headings and captions contained herein are for convenience of reference only
      and
      shall not control or affect the meaning or construction of any provision hereof.
      This Agreement may be executed in counterparts, each of which shall be deemed
      to
      be an original and all of which together shall constitute but one and the same
      instrument.

     

    11. Notices.
      All
      notices and other communications provided for herein shall be dated
      and in
      writing and shall
      be
      deemed to have been duly given when delivered,
      if delivered personally or sent by registered or certified mail, return receipt
      requested, postage prepaid and when received if delivered otherwise, to the
      party to whom it is directed:

     

    If
      to The
      Company:

     

    El
      Pollo
      Loco, Inc.

    c/o
      EPL
      Intermediate, Inc.

    3535
      Harbor Blvd., Suite 100

    Costa
      Mesa, CA 92628

    Attn:
      Jerry Lovejoy, Esq.

    Telephone:
      714-599-5085

    Fax:
      714-599-5563

    

    If
      to
      CAC:

     

    Chicken
      Acquisition Corp.

    c/o
      EPL
      Intermediate, Inc.

    3535
      Harbor Blvd., Suite 100

    Costa
      Mesa, CA 92628

    Attn:
      Jerry Lovejoy, Esq.

    Telephone:
      714-599-5085

    Fax:
      714-599-5563

    

    In
      either
      case, with a copy to:

    

    Pepper
      Hamilton LLP

    Hamilton
      Square

    600
      Fourteenth Street, N.W.

    Washington,
      DC 20005

    Attn:
      Robert B. Murphy, Esq.

    Telephone:
      202-220-1454

    Fax:
      202-220-1665

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    If
      to
      Provider:

    

    Trimaran
      Fund II, LLC

    c/o
      Trimaran Fund Management, L.L.C.

    1325
      Avenue of the Americas, 34th
      Floor

    New
      York,
      New York 10019

    Attn:
      Alberto Robaina

    Telephone:
      212-885-4735

    Fax:
      212-885-4350

     

    With
      a
      copy to:

     

    Skadden,
      Arps, Slate, Meagher & Flom LLP

    Four
      Times Square

    New
      York,
      NY 10036-6522

    Attn:
      Eileen T. Nugent

      Thomas
      W. Greenberg

    Fax:
      212-735-2000

    

    or
      at
      such other address as such party shall have specified by notice in writing
      to
      the other parties in accordance with this Section 11.

     

    12. Termination.
      This
      Agreement shall terminate upon the earlier of (i) issuance of a final
      non-appealable Judgment or termination of the Litigation, in each case, pursuant
      to which Provider is not obligated to pay any amount and (ii) mutual agreement
      of the parties to this Agreement.

     

    13. Amendment.
      This
      Agreement may not be amended, modified or supplemented and no waivers of or
      consents to departures from the provisions hereof may be given unless consented
      to in writing by each party to this Agreement. Unless otherwise specified in
      such waiver or consent, a waiver or consent given hereunder shall be effective
      only in the specific instance and for the specific purpose for which given.
      No
      failure or delay by the parties to this Agreement in exercising any right
      hereunder or under the Fee Agreement shall operate as a waiver
      thereof.

     

    14. Entire
      Agreement.
      The
      parties agree that this Agreement and the Payment and Subscription Agreement
      contain the entire understanding among the parties hereto relating to the matter
      hereof.

     

    
      
         

      

      
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    15. Third
      Party Beneficiaries.
      Nothing
      expressed or implied in this Agreement is intended or shall be construed to
      confer upon or give to any third party any rights or remedies against any party
      hereto.

     

    16. Specific
      Performance.
      The
      parties acknowledge and agree that any breach of the terms of this Agreement
      would give rise to irreparable harm for which money damages would not be an
      adequate remedy and accordingly the parties agree that, in addition to any
      other
      remedies, each party shall be entitled to enforce the terms of this Agreement
      by
      a decree of specific performance without the necessity of proving the inadequacy
      of money damages as a remedy.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Company, CAC and Provider have executed this Agreement
      as
      of the date first above written.

     

    
      	 	 	 
	 	
              EL
                POLLO LOCO, INC.

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Joseph N. Stein
	 	
              
Name:
              Joseph N. Stein
	 	Title:
              Chief Financial Officer

    

     

    
      
        	 	 	 
	 	
                
                  CHICKEN
                    ACQUISITION CORP.

                

              
	 
 	 
 	 
 
	
              	By:  	/s/
                Dean
                C. Kehler
	 	
                
Name:
                Dean C. Kehler
	 	Title:
                Vice President

      

    

     

    
      	 	 	 
	 	
              
                
                  TRIMARAN
                    FUND II, LLC

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Dean
              C. Kehler
	 	
              
Name:
              Dean C. Kehler
	 	Title:
              

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    SCHEDULE
      A

    

    Promissory
      Note

    Term
      Sheet

    

    
      	
              Issuer

            	 	
              CAC
                or the Company, at Provider's option

            
	 	 	 
	
              Term

            	 	
              2
                Years

            
	 	 	 
	
              Principal
                Amount

            	 	
              As
                elected pursuant to Section 1(c) of the Fee Agreement.

            
	 	 	 
	
              Interest

            	 	
              13.25%
                compounded annually, which rate shall increase by 0.50% per calendar
                quarter (with the first such increase occurring at the beginning
                of the
                second calendar quarter after Closing) up to a maximum rate of 17.5%
                per
                annum. Interest shall be paid quarterly at Provider's option, either
                in:
                (i) cash, (ii) a promissory note having substantially similar terms
                to
                those set forth in this Exhibit A (iii) Convertible Preferred Stock
                of CAC
                at a price of $43.22 per share on terms substantially similar to
                those set
                forth in Exhibit B of the Fee Agreement, or (iv) Common Stock of
                CAC at a
                price of $43.22 per share.

            
	 	 	 
	
              Conversion

            	 	
              The
                outstanding principal amount of the promissory note plus any accrued
                but
                unpaid interest shall be convertible, in whole or in part, into,
                at
                Provider's option, (i) shares of Convertible Preferred Stock of CAC,
                at a
                price of $43.22 per share on terms substantially similar to those
                set
                forth in Exhibit B of the Fee Agreement, or (ii) Common Stock of
                CAC at a
                price of $43.22 per share.

            
	 	 	 
	
              Covenants/Defaults

            	 	
              Cross
                default with credit agreement and
                bonds.

            

    

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    SCHEDULE
      B

     

    Convertible
      Preferred Stock

    Term
      Sheet

    

    
      	
              Issuer

            	 	
              CAC

            
	 	 	 
	
              Security

            	 	
              Convertible
                Preferred Stock

            
	 	 	 
	
              Original
                Issue Price

            	 	
              $43.22
                per share. For purposes of this Term Sheet, the aggregate price for
                all
                shares of Convertible Preferred Stock issued at a Closing shall be
                the
                "Preferred Investment Amount."

            
	 	 	 
	
              Voting
                Rights

            	 	
              Right
                to vote with the Common Stock on an As-Converted Basis. See Protective
                Covenants below.

            
	 	 	 
	
              Dividend

            	 	
              Each
                share of Convertible Preferred Stock will accrue a dividend, to be
                paid
                quarterly, equal to 13.25% per annum of the Original Issue Price,
                compounded annually, which rate shall increase by 0.50% per calendar
                quarter (with the first such increase occurring at the beginning
                of the
                second calendar quarter after the issuance of such share of Convertible
                Preferred Stock) up to a maximum rate of 17.5% per annum. 

               

              The
                Convertible Preferred Stock will participate on an As-Converted Basis
                in
                any dividends paid on the Common Stock.

            
	 	 	 
	
              "As
                Converted Basis"

            	 	
              "As-Converted
                Basis" means that Provider will for the relevant purpose be deemed
                to hold
                the number of shares of Common Stock that it would be entitled to
                receive
                if its Convertible Preferred Stock had been converted to Common Stock
                pursuant to its conversion right on or prior to the relevant
                date.

            
	 	 	 
	
              Liquidation
                Preference

            	 	
              Convertible
                Preferred Stock shall have a liquidation preference to Common Stock
                equal
                to the greater of its Original Issue Price or what the Convertible
                Preferred Stock would receive on an As Converted Basis upon liquidation.
                

            
	 	 	 
	
              Conversion

            	 	
              Each
                share of Convertible Preferred Stock will be convertible at any time
                into,
                at Provider's option, (i) a number of shares of Common Stock equal
                to the
                quotient of the Original Issue Price plus any accrued but unpaid
                dividends
                for the Convertible Preferred Stock divided by $43.22, subject to
                anti-dilution protection or (ii) a Promissory Note for an amount
                equal to
                the aggregate Original Issue Price for any shares of Convertible
                Preferred
                Stock so converted plus the aggregate of any accrued and unpaid dividends
                on such shares of Convertible Preferred Stock on terms substantially
                similar to those set forth in Exhibit B to the Fee
                Agreement.

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      	
              Anti-Dilution
                Protection

            	 	
              Customary
                weighted average anti-dilution adjustments.

            
	 	 	 
	
              Ranking

            	 	
              Subordinated
                and junior to indebtedness, senior to all other capital
                stock.

            
	 	 	 
	
              Protective
                Covenants

            	 	
              Customary
                protective covenants, including: The consent of the holders of Convertible
                Preferred Stock will be required for any action that would (i) alter
                the
                rights, preferences or privileges of the Convertible Preferred Stock;
                (ii)
                amend any provision of CAC's certificate of incorporation or by-laws
                relative to the Convertible Preferred Stock; (iii) increase or decrease
                the number of issued or authorized shares of Convertible Preferred
                Stock;
                (iv) create any series or class of shares having a preference or
                priority
                as to dividends or assets superior to or on a parity with that of
                the
                Convertible Preferred Stock, (v) constitute a sale, lease, pledge
                or other
                disposal of all or substantially all the assets of CAC or a merger,
                reorganization or similar transaction, or (vi) constitute a repurchase
                or
                redemption of other equity securities. 

            
	 	 	 
	
              Registration
                Rights

            	 	
              Customary
                rights, as set forth in the Stockholders Agreement.

            
	 	 	 
	
              Tag-Along,
                Drag Along, Preemptive Rights, ROFR

            	 	
              Customary
                rights, as set forth in the Stockholders Agreement.
                

            

    

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    SCHEDULE
      C

     

    Common
      Stock

    

    $43.22
      per share.

     

    
      
         

      

      
        15Exhibit
      10.43

    
 

    AMENDMENT
      NO. ______

    

    TO
      EMPLOYMENT AGREEMENT

    

    This
      Amendment to Employment Agreement is made as of March 19, 2008, by and between
      El Pollo Loco, Inc. (the “Company”) and______________________ (the
      “Executive”). This Amendment amends, effective as of the date hereof, the
      Employment Agreement dated as of _______________________ ,
      between
      the Company and the Executive.

    

    
      1.
        The
        first
        paragraph of Exhibit A to the Employment Agreement is hereby amended to read
        in
        full as follows:

    

    

    “Bonuses
      for any calendar year will be established by reference to budgeted “EBITDA” for
      such calendar year (“Budgeted EBITDA”), with EBITDA having the same definition
      as set forth in the Administrative Guidelines relating to the El Pollo Loco
      Incentive Plan for such calendar year. Budgeted EBITDA will be established
      by
      the Company’s Board of Directors (following annual plan reviews with the
      Company’s management) within the first three months of each calendar year during
      the Employment Term.”

    

    
      2.
        Except
        as
        set forth set herein, all terms and provisions of the Employment Agreement
        shall
        remain in full force and effect.

    

    

    IN
      WITNESS WHEREOF, the parties have duly executed this Amendment on the day and
      year first above written.

    
      	 	 	 
	 	EL
              POLLO LOCO,
              INC.
	 
 	 
 	 
 
	 	By:	
               

            
	 	Name:	  
	 	Title 	 
	 	 	 
	 	 	 
	 	 	 
	 	[Executive]

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