Document:

Exhibit 10.18

This SECURITIES PURCHASE AGREEMENT
(the “Agreement”), dated as of , by and between Regen Biopharma, Inc. , a Nevada corporation, with headquarters located
at 4700 Spring Street, Suite 304,La Mesa California, 91942, (the “Company”), and ASC Recap LLC, a Connecticut Limited
Liability Company, with its address at 90 Grove Street, Suite 108, Ridgefield CT 06877(the “Buyer”).

 

WHEREAS:

 

A. The Company and the Buyer
are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2)
of the Securities Act of 1933, as amended (the “1933 Act”);

B. Buyer desires to purchase
and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement 100,000 shares of common stock,
$0.0001 par value per share, of the Company (the “Common Stock”).

NOW THEREFORE, the Company and
the Buyer hereby agree as follows:

 

1. Purchase and Sale of the
Common Stock.

a. Purchase of the Common Stock.
On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from the
Company the Common Stock

b. Form of Payment. On the Closing
Date (as defined below), (i) the Buyer shall pay the amount of $ 100,000 USD for the Common Stock to be issued and sold to it at
the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds to the Company,
in accordance with the Company’s written wiring instructions and (ii) the Company shall deliver the Common Stock to the Buyer,
against delivery of such Purchase Price.

c. Closing Date. The date and
time of the issuance and sale of the Common Stock pursuant to this Agreement (the “Closing Date”) shall be__________-,
or such other mutually agreed upon time. The closing of the transactions contemplated by this Agreement (the “Closing”)
shall occur on the Closing Date at such location as may be agreed to by the parties.

 

2. Buyer’s Representations
and Warranties. The Buyer represents and warrants to the Company that:

a. Investment Purpose. As of
the date hereof, the Buyer is purchasing the shares of Common Stock for its own account and not with a present view towards the
public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act

b. Accredited Investor Status.
The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an “Accredited
Investor”).

c. Reliance on Exemptions. The
Buyer understands that the Common Stock is being offered and sold to it in reliance upon specific exemptions from the registration
requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of,
and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer
set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the Common
Stock.

d. Information .The Buyer and
its advisors, if any, have been furnished with all materials relating to the business, finances and operations of the Company and
materials relating to the offer and sale of the Common Stock which have been requested by the Buyer or its advisors. The Buyer
and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Notwithstanding the foregoing, the
Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information unless such information
is disclosed to the public prior to or promptly following such disclosure to the Buyer.

e. Transfer or Re-sale. The Buyer
understands that sale or re-sale of the Common Stock has not been and is not being registered under the 1933 Act or any applicable
state securities laws, and the Common Stock may not be offered, sold, transferred, pledged, hypothecated or otherwise disposed
of except pursuant to an effective registration statement under the 1933 Act and applicable state securities laws or any other
applicable securities laws or pursuant to an applicable exemption from the registration requirements of such 1933 Act and such
laws;

f. Legends. The Buyer understands
that the Common Stock will bear a restrictive legend in substantially the following form:

THESE SECURITIES HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE
OFFERED, SOLD, ASSIGNED, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT OR SUCH LAWS
AND, IF REQUESTED BY THE COMPANY, UPON DELIVERY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT THE PROPOSED
TRANSFER IS EXEMPT FROM THE ACT OR SUCH LAWS.

g. Authorization; Enforcement.
This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf of the Buyer,
and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

 

3. Company’s Representations
and Warranties. The Company represents and warrants to the Buyer that:

a. Organization. Company is a
corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has the corporate power
and authority to carry on its business as it is now being conducted.

b. Authorization; Enforcement.
This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf of the Company,
and this Agreement constitutes a valid and binding agreement of the Company enforceable in accordance with its terms.

 

4. General Provisions.

a. Entire Agreement. This Agreement
constitutes the entire Agreement and supersedes all prior agreements and understandings, oral and written, between the parties
hereto with respect to the subject matter hereof.

b. Governing Law. This Agreement,
and all transactions contemplated hereby, shall be governed by, construed and enforced in accordance with the laws of the State
of California. In the event that litigation results from or arises out of this Agreement or the performance thereof, the parties
agree to reimburse the prevailing party's reasonable attorney's fees, court costs, and all other expenses, whether or not taxable
by the court as costs, in addition to any other relief to which the prevailing party may be entitled.

 

 

IN WITNESS WHEREOF, this Agreement
has been executed by each of the individual parties hereto on the date first above written.

 

Signed, sealed and delivered
in the presence of:

 

COMPANY:

By:    /s/David R. Koos                                           Date
signed:12/04/2013

David R. Koos, Chairman and CEO

 

BUYER

By:    Stephen Hicks                                                Date
signed: 12/04/2013

Stephen Hicks, Managing PartnerExhibit101

LOAN AGREEMENT

THIS LOAN AGREEMENT (this "Agreement") is made and entered into as of the 31st day  of  October,   2013   by  and   between   (i)  FRISCH'S   RESTAURANTS,  INC.,  an  Ohio corporation (the "Borrower"), and (ii) U.S. BANK NATIONAL ASSOCIATION, a national banking association  formerly known as Firstar Bank, N.A. and Star Bank, National Association, and its successors  and assigns (the "Bank"), and amends and restates the Second  Amended and Restated  Loan  Agreement  made  and  entered  into  as  of  April  10,  2012  by  and  between  the Borrower  and the Bank, as amended  by that certain Amendment No. 1 to Second  Amended and Restated  Loan  Agreement  dated  May  15,  2012  by and  between  the  Borrower  and  the  Bank (collectively, the "Prior Loan Agreement") .

RECITALS

WHEREAS,  the Borrower and the Bank entered into the Prior Loan Agreement; and

WHEREAS,  the  Bank  has  advanced  Loans  (as  hereinafter  defined)  to  the  Borrower pursuant to the terms of the Prior Loan Agreement;

WHEREAS,  that certain Twentieth Amended and Restated Revolving Credit Promissory
Note dated April 10, 2012 issued by the Borrower to the Bank in the original principal amount of
$5,000,000  (the "Twentieth  Amended and Restated Note") matured on October 15, 2013 and no obligations remain outstanding  under the Twentieth Amended and Restated Note;

WHEREAS,  that certain  Eleventh  Amended and Restated  Promissory  Note dated April
10, 2012 issued by the Borrower to the Bank in the original principal amount of$34,183,992.56 (the "Eleventh  Amended  and Restated  Note") matured on October  15, 2013 and any and all obligations  under the Eleventh Amended and Restated Note were refinanced prior to October 15,
2013  pursuant   to  and  evidenced   by  the  Existing  Construction   Term  Notes  (as  hereinafter defined) and no obligations remain outstanding under the Eleventh Amended and Restated Note;

WHEREAS, the Bank and the Borrower desire to enter into new construction loan and revolving   loan  facilities   and  to  amend   and  restate   the  Prior   Loan  Agreement   with  this Agreement;

NOW,  THEREFORE,   in  consideration   of  the  premises  and  the  mutual  agreements contained  herein  and for other good and valuable  consideration,  the receipt  and  sufficiency of which are hereby acknowledged,  the parties hereto agree as follows:

1.         Representations and Warranties.  To induce the Bank to enter into this Agreement and to agree to make and/or to continue the Loans described in Section  4 hereof,  the Borrower makes the following representations and warranties:

(a)        Existence.   The Borrower is duly organized,  validly existing  and in good standing as a corporation  under the laws of the State of Ohio, and each Subsidiary  (as hereinafter defined)   is  duly  organized,   validly  existing  and  in  good  standing   under  the  laws  of  the jurisdiction  of its organization.   The Borrower and each Subsidiary is duly qualified as a foreign

corporation  and in good standing under the laws of each jurisdiction  in which the failure to be so qualified  by the Borrower or the Subsidiary would have a material adverse effect on its business, prospects  or financial  condition.    "Subsidiary" for purposes  hereof  means  any corporation  or other  entity,  the  majority   of  the  voting  stock  of  which  is  owned,   directly   or  indirectly, beneficially  or of record,  by the Borrower or any Subsidiary,  or which is otherwise  controlled, directly or indirectly, by the Borrower or any Subsidiary.

(b)        Authority.      The  Borrower   and  each   Subsidiary   has  full  power   and authority  to  own  its  properties  and  to  conduct  its  business  as  such  business  is  now  being conducted,  and the Borrower  has full power and authority to execute, deliver and perform under this  Agreement,  the Notes  (as hereinafter  described)  and all other documents  and instruments executed  in connection  with or otherwise relating to this Agreement  or the Loans (as hereinafter defined) (collectively,  the "Loan Documents").

(c)        Borrowing  Authorization.    The  execution,  delivery  and  performance  by the Borrower  of this Agreement  and the other Loan Documents:   (i) have been duly authorized by all requisite  corporate  action;  (ii) do not and will not violate (A) any provision of any law, statute,  rule or regulation,  (B) any order,  judgment  or decree  of any court,  arbitrator  or other agency  of  government,   (C)  the  Articles  of  Incorporation   or  Code  of  Regulations   or  other organizational  or governing documents  of the Borrower, or (D) any provision of any agreement (including, without limitation, any agreement with stockholders) to which the Borrower or any Subsidiary is a party or subject, or by which it or any of its properties or assets are bound; (iii) do not and will not result in the creation or imposition  of any lien, charge  or encumbrance  of any nature whatsoever  upon any of the properties  or assets of the Borrower  or any Subsidiary;  and (iv) do not and will not require any consent, approval or other action by or any notice to or filing with any court or administrative  or governmental  body.  This Agreement and the other Loan Documents  have been duly executed and delivered on behalf of the Borrower and constitute the legal,  valid  and  binding  obligations   of  the  Borrower,  enforceable   against  the  Borrower  in accordance  with their respective terms.

(d)        Financial  Information  and  Reports.    Exhibit  A  to  this  Agreement  is a complete  list  of  the  financial  statements  and  projected  financial  statements  furnished  by the Borrower  to the  Bank  in connection  with the  borrowings  to  be made  hereunder.    Each  such historical financial statement fairly presents in accordance with generally accepted accounting principles  the financial  condition  of the Borrower  and its Subsidiaries  and  the results  of their operations as of the date (or with respect to the period) noted in such financial statements.   Other than any liability incident to any actions described in Exhibit B to this Agreement, neither the Borrower  nor  any  Subsidiary  has  any  material  contingent  liabilities  required  to  be disclosed under generally  accepted  accounting  principles  wh ch are not provided  for or disclosed  in such financial  statements.   Each such statement  (including  any related schedule  and/or notes) is true, correct  and  complete  in  all  material  respects  (subject,  as  to  interim  statements,  to  changes resulting  from  audits  and  year-end  adjustments)  and  has  been  prepared  in  accordance  with generally  accepted  accounting  principles  consistently  followed throughout  the periods involved. No such statement omits to state a material fact necessary to make such statement not misleading in light  of the circumstances  under  which  it was  made.   There  has  been  no  material  adverse change in the business, operations or condition (financial or otherwise) of the Borrower or any Subsidiary since the date of such financial statements.

(e)        Indebtedness.       Neither   the   Borrower   nor   any   Subsidiary   has   any Indebtedness  (as hereinafter  defined) other than Permitted  Indebtedness  (as hereinafter defined), or has guaranteed the obligations of any other person (except (i) by endorsement of negotiable instruments  payable on sight for deposit or collection or similar banking transactions  in the usual course  of  business  and (ii) obligations  arising  from  ground  leases  as permitted  under Section
2(j)(v)), and to the best of the Borrower's knowledge after diligent investigation,  there exists no default  under the provisions  of any instrument  evidencing  any Indebtedness  of the Borrower or any Subsidiary or of any agreement relating thereto.  "Indebtedness" as used herein means all indebtedness   for  borrowed  money  which  in  accordance  with  generally  accepted  accounting principles would be considered as a liability, all rental obligations under leases required to be capitalized  under  generally  accepted  accounting  principles  ("Capital  Leases"),  all  guarantees and other contingent obligations in respect of, or obligations to purchase or otherwise acquire, Indebtedness  of others, and Indebtedness of others secured by any lien on property owned by the Borrower or any Subsidiary,  whether or not the Borrower or such Subsidiary  has assumed such Indebtedness.

(f)        Actions.   There is no action, suit, investigation  or proceeding pending or, to  the  knowledge   of  the  Borrower,   threatened   against  or  affecting   the  Borrower   or  any Subsidiary before any court, arbitrator or administrative or governmental agency except for those described  in  Exhibit  B to this Agreement,  none of which might result in any material  adverse change in the business, operations or condition (financial or otherwise) of the Borrower or any Subsidiary,  nor, to the best of the Borrower 's knowledge after diligent investigation,  is there any basis for any such action which might result in such a material adverse change.

(g)       Title  to  Property.     The  Borrower  and  each  Subsidiary   has  good  and marketable  title to its real properties  (other than properties  which it leases as lessee) and good title to all of its other properties  and assets, including  the properties  and assets reflected in the most  recent  balance  sheet  described  in   Exhibit  A  hereto  (other  than  properties  and  assets disposed  of in the ordinary course of business since the date thereof), free and clear of all liens, mortgages,  pledges,  security  interests,  encumbrances  or  charges  of  any  kind,  including  any agreement  to give any of the foregoing, any conditional sale or other title retention agreement or any lease in the nature thereof  (each,  a "Lien"),  other than the following  (each, a "Permitted Lien"):   (i) Liens described  on  Exhibit  C hereto; (ii) leases required  under generally accepted accounting   principles   to   be   capitalized   on   the   Borrower 's   or   such   Subsidiary's  books ("Capitalized  Leases")  so long as there is no violation  of any of the Financial  Covenants  set forth on  Exhibit  D hereto; (iii) Liens in favor of the Bank; and (iv) purchase  money Liens and Liens arising from seller provided financing to the extent such Liens secure purchase money Indebtedness  or seller  provided  financing  and so long as such Liens attach  only  to the  assets purchased   or  acquired   and  the  proceeds   thereof   and  so  long  as  all  such  financing   and Indebtedness is Permitted Indebtedness.   The Borrower and each Subsidiary is in undisturbed possession  under all leases necessary in any material respect for the operation of its business, and no such leases contain  any unusual or burdensome  provisions  which might materially  affect or impair the Borrower's or the Subsidiary's operations thereunder.  All such leases are valid and in full force and effect.

(h)       Employee  Benefit  Plans.   To the best of the Borrower's knowledge  after diligent  investigation,   no  "reportable  event"  or  "prohibited   transaction," as  defined  by  the

Employee Retirement  Income Security Act of 1974 ("ERISA") has occurred or is continuing, as to any plan of the Borrower  or any of its affiliates  which poses a threat of taxes or penalties against or termination of such plans (or trusts related thereto).  Neither the Borrower nor any of its  affiliates  has  violated  in any  material  respect  the  requirements  of  any "qualified  pension benefit plan," as defined by ERISA and the Internal Revenue Code of 1986, or done anything to create any material  liability under the Multi-Employee  Pension Plan Amendment  Act.  Neither the Borrower nor any of its affiliates has incurred any material liability to the Pension Benefit Guarantee  Corporation  (the "PBGC")  in connection with such plans, including,  but not limited to, any "funding deficiency" (as defined by ERISA).

(i)        Purpose of Loans.  Proceeds of the Revolving Loan shall be used to fund temporary working capital needs and general corporate purposes.  The Construction  Loans shall be used only for the purpose of financing the construction and opening and/or the refurbishing of Big Boy Restaurants  (collectively,  the "Restaurants").   The Stock Repurchase Loan was used only  for  the  purpose  of  financing  the  repurchase  of  Borrower's   shares  of  stock  from  its shareholders.    The  Existing  Construction  Term  Loans  financed  the  construction  and opening and/or the refurbishing of the Restaurants.   The Revolving Loan, Construction Loans, Stock Repurchase Loan and the Existing Construction Term Loans are collectively referred to herein as the "Loans".   None of the Loans are nor shall be secured, directly or indirectly, by any stock for the purpose of purchasing or carrying any margin stock or for any purpose which would violate either Regulation  U, 12 C.F.R. Part 221, or Regulation  X, 12 C.F.R. Part 224, promulgated by the Board of Governors of the Federal Reserve System.

G)        Compliance.   The Borrower and each Subsidiary  is in compliance  in all material  respects   with  all  laws,  statutes,  ordinances,   rules,  regulations  and  orders  of  any governmental entity (including, but not by way of limitation, any such laws, statutes, ordinances, rules, regulations and orders related to ecology, human health and the environment) applicable to it.

(k)       Adverse   Contracts   and  Conditions.     Neither   the  Borrower   nor  any Subsidiary   is  a  party  to  any  contract  or  agreement,  or  subject  to  any  charge,  restriction, judgment,  decree  or  order,  materially  and  adversely  affecting  its  business,  property,  assets, operations or condition, financial or otherwise, nor a party to any labor dispute.  There are no restrictions applicable  to any Subsidiary  which might limit its ability to pay dividends or make loans to the Borrower.

(1)          Taxes.   The Borrower and each Subsidiary has filed all federal, state and local  tax  returns  and  other  reports  which  it  is  required  by  law  to  file,  has  paid  all  taxes, assessments and other similar charges that are due and payable, other than taxes, if any, being contested by the Borrower or a Subsidiary in good faith and as to which adequate reserves have been established  in accordance  with generally accepted accounting principles, and has withheld all  employee  and  similar  taxes  which  it is required  by law to withhold.   Federal  income  tax returns of the Borrower  and each Subsidiary  have been examined  by the taxing authorities or closed  by  applicable  statutes  and  satisfied  for  all  fiscal  years  prior  to  and  including  the Borrower's 2009 fiscal year end.  Federal income tax returns of the Borrower and its Subsidiaries for the Borrower's  2010 fiscal year end and all years thereafter  may still be examined  by the taxing authorities.

2.         Borrower's  Covenants.      The   Borrower   agrees   that,   from   the  date   of  this Agreement and until the Loans are paid in full and all obligations under this Agreement are fully performed,  and the commitment  of the Bank to make Loans hereunder has terminated:

(a)        Financial   Covenants.     The  Borrower  shall  comply   with  each  of  the financial   covenants  set  forth  in   Exhibit  D  to  this  Agreement  (collectively,   the  "Financial Covenants") .

(b)        Financial Statements;  Periodic Reports.  The Borrower shall timely file its Form 10-K annual report and Form 10-Q quarterly reports and the Bank shall have access to all such filings.   The Borrower  shall furnish  to the Bank:   (i) promptly  upon transmission  thereof, copies  of  all  notices  and  reports  as  the  Borrower  shall  send  to its  stockholders  that  are  not publicly  available  and all regulatory  and other reports that are not publicly available  and which the  Borrower   submits   to  the  Securities   and  Exchange   Commission   (the  "SEC")   or  any governmental  body or agency  succeeding  to the functions  of the SEC; and (ii) with reasonable promptness,  such other financial data in such form as the Bank may reasonably request, provided that the Bank shall  keep  such data confidential  to the extent  required  by applicable  securities laws.

Together  with each  delivery  of financial  statements  required  under  clauses  (i) and (ii) above, the Borrower shall deliver a certificate of its Chief Financial Officer (A) setting forth a comparison between actual calculated results and covenanted results for each of the Financial Covenants  set forth on  Exhibit D hereto and (B) stating that, to the best of such Chief Financial Officer 's knowledge after diligent investigation,  no Event of Default hereunder then exists, or if such an Event of Default hereunder does then exist, specifying the nature thereof, the period of existence  thereof,  and  the  action  the  Borrower  proposes  to  take  with  respect  thereto.    The Borrower  further  agrees  that  promptly  upon  the  President  or  Chief  Financial  Officer  of  the Borrower obtaining knowledge of an event that constitutes an Event of Default hereunder, the Borrower  shall  deliver  to  the  Bank  a certificate  specifying  the  nature  thereof,  the  period  of existence thereof, and the action the Borrower proposes to take with respect thereto.  The Bank is authorized  to deliver  a copy  of any financial  statement  or other  communication  or document delivered to it pursuant to this Section 2(b) to any regulatory  body having jurisdiction  over it if such  delivery  is required  by such  regulatory  body.   The  Borrower  and  each  Subsidiary  shall permit the Bank and its agents and representatives,  at the expense of the Bank, to inspect its real and personal property, including  without limitation any and all of the Restaurants,  and to verify accounts  and  inspect  and  make copies  of or extracts from  its books,  records and files,  and to discuss  its affairs,  finances  and accounts  with its principal officers, all at such reasonable times and as often as the Bank may reasonably request.

(c)        Insurance.     The  Borrower  shall,  and  shall  cause  each  Subsidiary  to, maintain  with responsible  carriers All Risk coverage for the full replacement  value of all of its real and personal property, except that the Borrower and each Subsidiary may self-insure risks to its  real  and  personal  property  in  an  amount  not  to  exceed  Five  Hundred  Thousand  Dollars ($500,000)  per incident, and maintain with responsible carriers general public liability insurance coverage  including  Excess  liability  coverage  in an amount  not less than  Twenty-Five  Million Dollars  ($25,000,000), except  that the Borrower  and each  Subsidiary  may  self-insure  general public liability risks in an amount not to exceed Five Hundred Thousand  Dollars ($500,000)  per

occurrence during the term of this Agreement.  The Borrower shall deliver to the Bank, together with  delivery  of  the  financial  statements  required  under  Section  2(b)(i)  above,  a  certificate specifying  the details of all such insurance in effect.  The Borrower shall cause the Bank to be named as lender loss payee and/or additional insured, as applicable, on its policies of insurance.

(d)       Taxes.   The Borrower  shall, and shall cause each  Subsidiary  to, file all federal, state and local tax returns and other reports it is required by law to file, and shall pay when  due  all  taxes,  assessments   and  other  liabilities,  except  that  the  Borrower  and  any Subsidiary shall not be obligated to pay any taxes or assessments which it is contesting in good faith,  provided  that  adequate  reserves  therefor  are  established  in  accordance  with  generally accepted  accounting   principles,   that  such  contests  will  not  materially  adversely  affect  the Borrower's  or  any  Subsidiary's   operations  or  financial  condition,  and  that  such  taxes  and assessments are promptly paid when the dispute is finally determined.

(e)        Existence and Status.  The Borrower shall, and shall cause each Subsidiary to,  maintain  its  existence  in  good  standing  under  the  laws  of  each  jurisdiction  described  in Section l(a) of this Agreement, provided that the Borrower or any Subsidiary may change its jurisdiction of incorporation if it shall remain in good standing under the laws thereof.

(f)        Maintenance  of  Property.    The  Borrower  shall,  and  shall  cause  each Subsidiary  to, maintain  to the extent consistent  with good business practices  all of its real and personal property in good condition and repair, not commit or permit any waste thereof, and not, except in the ordinary course of business, remove or permit the removal of any improvement, accession or fixture therefrom that may in any way materially impair the value of said property.

(g)     Environmental Matters.  The Borrower represents, warrants and covenants with the Bank that:   (i) neither the Borrower nor any of its Subsidiaries  nor, to the best of the Borrower's knowledge,  after due investigation, any other person or entity, has used or permitted any Hazardous  Substances  (as hereinafter defined) to be placed, held, stored or disposed of on any property  owned  or operated  by the Borrower or any of its Subsidiaries  (the "Designated Properties"),  in violation  of any Environmental  Laws (as hereinafter  defined); (ii) none of the Designated Properties now contains any Hazardous Substance in violation of any Environmental Laws; (iii) there have been no complaints, citations, claims, notices, information requests, orders (including  but not limited to clean-up orders) or directives on environmental  grounds made or delivered to, pending or served on, or anticipated  by the Borrower or any of its Subsidiaries, or of which the Borrower,  after due investigation,  including consideration  of the previous uses of the Designated Properties and meeting the standard under 42 U.S.C. Section 9601(35)(B)(1986), is  aware  or  should  be  aware  (A)  issued  by  a  governmental  department  or  agency  having jurisdiction  over  any of  the Designated  Properties,  or (B) issued  or claimed  by any persons, agencies  or  organizations  or affecting  any of the  Designated  Properties;  and  (iv)  neither  the Borrower nor any of its Subsidiaries,  so long as any of the Indebtedness  under this Agreement remains unpaid, shall allow any Hazardous Substances to be placed, held, stored or disposed on any  of  the  Designated   Properties   or  incorporated   into  any  improvements   on  any  of  the Designated   Properties   in  violation   of  any  Environmental   Laws.     The  term  "Hazardous Substance"  shall  mean any solid, hazardous,  toxic or dangerous  waste, substance  or material defined   as  such   in  or  for  the  purpose   of  the  Comprehensive   Environmental   Response, Compensation  and Liability Act, any so-called "Superfund" or "Super-Lien" law, or any other

federal, state or local statute, law, ordinance, code, rule, regulation, order or decree relating to, or imposing liability or standards of conduct concerning, any Hazardous Substance (the "Environmental  Laws", as now or at any time hereafter in effect).

The Borrower agrees to indemnify and hold the Bank harmless from and against any and all  losses,  liabilities,  damages,  injuries,  costs,  expenses  and  claims  of  any  and  every  kind whatsoever, paid, incurred or suffered by, or asserted against the Bank for, with respect to, or as a direct or indirect result of, any of the following:   (i) the presence on or under or the escape, seepage,   leakage,   spillage,   discharge,   emission,   discharging   or  release  from   any  of  the Designated Properties of any Hazardous Substance (including, without limitation, any losses, liabilities, damages, injuries, costs, expenses or claims asserted or arising under any of the Environmental  Laws); or (ii) any liens against any of the Designated Properties or any interest or estate in any of the Designated Properties, created, permitted or imposed by the Environmental Laws,  or  any  actual  or  asserted  liability  of  or  obligations  of  the  Borrower  or  any  of  its Subsidiaries under the Environmental Laws.

The Borrower shall immediately  notify the Bank should the Borrower become aware of any Hazardous Substance on any of the Designated Properties in violation of any Environmental Laws or any claim that any of the Designated Properties may be contaminated by any Hazardous Substance  in violation  of any Environmental  Laws.   The Borrower  shall, at its own cost and expense,  be  responsible  for  the  cleanup  of  any  Hazardous  Substance  caused,  or  knowingly permitted, by the Borrower or any of its Subsidiaries to be on any of the Designated Properties which  is  in  violation  of  any  Environmental  Laws  including  any  removal,  containment  and remedial  actions  in  accordance  with  all  applicable  Environmental  Laws.    The  Borrower's obligations  hereunder shall not be subject to any limitation of liability provided herein or in any of the other Loan Documents and the Borrower acknowledges  that its obligations hereunder are not conditional  and shall continue in effect so long as a valid claim may lawfully be asserted against  the Bank or for so long as this Agreement, any of the other  Loan Documents  or any renewal, amendment, extension or modification thereto remain in effect, whichever extends for a greater period of time.

(h)       Notice.  The Borrower shall notify the Bank in writing, promptly upon the Borrower's learning thereof, of: (i) any litigation, suit or administrative  proceeding  which may materially   affect  the  operations,   financial   condition  or  business  of  the  Borrower  or  any Subsidiary,  whether or not the claim is considered by the Borrower to be covered by insurance, unless the applicable insurer has agreed to defend any such claim and cover the liability therefor; (ii) the occurrence of any material event described in Section 4043 of ERISA or any anticipated termination, partial termination  or merger of a "Plan" (as defined in ERISA) or a transfer of the assets of a Plan; (iii) any labor dispute to which the Borrower or any Subsidiary may become a party;  (iv)  any  default  by  the  Borrower  or  any  Subsidiary  under  any  note,  indenture,  loan agreement, mortgage, lease or other similar agreement to which the Borrower or any Subsidiary is a party or by which the Borrower or any Subsidiary or its assets are bound; and (v) any default by any obligor under any material note or other evidence of debt payable to the Borrower or any Subsidiary.

(i)        Liens.   The Borrower  shall not, and shall not permit any Subsidiary  to, create, assume or permit to exist any Lien with respect to any of its assets, whether now owned

or hereafter acquired, except Permitted Liens.  Furthermore, the Borrower shall not, and shall not permit any Subsidiary to, enter into any agreement  with any other person or entity pursuant to which the Borrower or any Subsidiary agrees not to create, assume or permit to exist any Lien with respect to any of its assets, whether now owned or hereafter acquired.

U)        Indebtedness.  The Borrower shall not, and shall not permit any Subsidiary to,  create,  incur,  assume  or  permit  to  exist  any  Indebtedness,  except  the  following  (each, "Permitted   Indebtedness"):     (i)  Indebtedness   incurred   under  this   Agreement   and  other Indebtedness  to  the  Bank;  (ii)  outstanding  Indebtedness  reflected  in  the  historical  financial statements listed in Exhibit A attached hereto (but not any refinancing or refunding of such Indebtedness);   (iii)  Indebtedness  described  in   Exhibit  E  attached  hereto;  (iv)  Indebtedness incurred  in connection  with Capitalized  Leases so long as there is no violation of any of the Financial  Covenants set forth on  Exhibit D hereto; (v) liabilities arising out of the Borrower's existing ground lease obligations  to third party landlords under leases assigned to and assumed by  Golden  Corral  Franchising  Systems,  Inc.  in  connection  with  its  June,  2012  purchase  of Golden  Corral  Restaurants,  which  liabilities  shall  not,  in  the  aggregate,  exceed  the  annual payment   obligation   of   Seven   Hundred   Thousand   Dollars   ($700,000.00);   and   (vi)  other Indebtedness  not  to  exceed  $1,000,000  in the  aggregate  at any  time.   The  Borrower  hereby agrees to pay to the Bank an amount of at least $3,835,346 to be applied against the outstanding obligations under the Existing Construction Term Notes on or before November 15, 2013, which such prepayment may (subject to the provisions of this Agreement) be paid with proceeds from advances against the Revolving Loan.

(k)       Loans;  Investments.    The  Borrower  shall  not, and  shall  not  permit  any Subsidiary to, make or permit to remain outstanding any loan or advance to, or own or acquire any stock, obligations  or securities of, or any other interest in, or make any capital contribution to, any person or entity, except that the Borrower or any Subsidiary may: (i) make or permit to remain  outstanding  loans or advances  to any Subsidiary  or the Borrower;  (ii) own or acquire stock, obligations or securities of a Subsidiary or of a corporation which immediately after such acquisition will be a Subsidiary; (iii) own or acquire prime commercial  paper and certificates of deposit in United States commercial  banks having capital resources  in excess of Fifty Million Dollars  ($50,000,000),  in each  case  due  within  one  (1)  year  from  the  date of  purchase  and payable  in United  States  Dollars,  obligations  of the United States Government  or any agency thereof,   and   obligations   guaranteed   by   the   United   States   Government,   and   repurchase agreements  with  such  banks  for  terms  of less  than  (1) one  year in  respect  of the  foregoing certificates  and  obligations;  (iv)  make  travel  advances  in  the ordinary  course  of  business  to officers  and  employees  or other  advances  in the ordinary  course  of  business  to officers  and employees  (excluding   advances  to  employees  for  relocation  purposes)  not  to  exceed  One Hundred  Fifty  Thousand  Dollars  ($150,000)  in the aggregate  at any time outstanding  for the Borrower  and all Subsidiaries;  (v) make advances to employees  for relocation  purposes not to exceed One Hundred Fifty Thousand Dollars ($150,000) in the aggregate at any time outstanding for the Borrower and all Subsidiaries;  (vi) own or acquire money-market  preferred stock in an amount not to exceed Seven Hundred Fifty Thousand Dollars ($750,000); (vii) make or permit to remain outstanding  loans or advances  to, or own or acquire stock, obligations  or securities of, any  other  person  or  entity,  provided  that  the  aggregate  principal  amount  of  such  loans  and advances (excluding loans which are fully secured by real estate consisting of former restaurant locations),   plus  the  aggregate  amount  of  the  investment  (at  original  cost)  in  such  stock,

obligations and securities, shall not exceed Seven Hundred Fifty Thousand Dollars ($750,000) at any time outstanding for the Borrower and all Subsidiaries; and (viii) make investments in the Borrower's non-qualified executive savings plan.

(l)        Merger and Sale of Assets.  Without the prior written consent of the Bank, the Borrower  shall not, and shall not permit any Subsidiary to, merge or consolidate  with any other corporation,  or sell, lease or transfer or otherwise dispose of any of its assets, including, without limitation, the stock of any Subsidiary, or sell with recourse or discount or otherwise sell for less than the face value thereof any of its notes or accounts receivable, except that without the prior  written  consent  of  the  Bank:    (i)  any  Subsidiary  may  merge  or  consolidate  with  the Borrower (provided that the Borrower shall be the continuing or surviving corporation) or with any one or more other  Subsidiaries;  (ii) any Subsidiary  may sell,  lease, transfer  or otherwise dispose  of any of its assets  to the Borrower  or another  Subsidiary;  (iii) the Borrower  or any Subsidiary may otherwise sell, lease, transfer or otherwise dispose of any of its assets having a book value of less than One Million Dollars ($1,000,000) provided that the aggregate book value of all such assets so sold, leased, transferred or otherwise disposed of by the Borrower and its Subsidiaries  shall not exceed Four Million Dollars ($4,000,000)  over any consecutive thirty-six month  period;  and (iv) the Borrower  or any Subsidiary  may sell, lease, transfer  or otherwise dispose of property (as hereinafter defined) and equipment in connection with remodeling and equipment  replacements  in the ordinary course of business.   For purposes of this  Section 2(1), "property"  shall  mean  those  components  of  the  real  estate  (such  as  walls,  electrical  and plumbing) which are removed during a remodeling.

(m)      Maximum   Annual  Lease  Expense.     The  Borrower 's   operating   lease expense  shall  not exceed  Six Million  Dollars ($6,000,000)  for any immediately  preceding  12 month period.

(n)       Restrictions   on  Transactions   With  Stockholders   and  Other  Affiliates. Except as otherwise expressly permitted under this Agreement, the Borrower shall not, and shall not permit any Subsidiary  to, enter into or be a party to any transaction  reportable under Item
404(a)  of Regulation  S-K of the SEC (i.e., related person transactions),  except in the ordinary course of business, pursuant to the reasonable requirements of its business, and upon fair and reasonable terms which are fully disclosed to the Bank and are no less favorable to the Borrower or such Subsidiary  than the Borrower or such Subsidiary  could obtain in a comparable  arm's length transaction with an unrelated third party.

(o)       Books and Records.  The Borrower shall, and shall cause each Subsidiary to, keep and maintain complete books of accounts, records and files with respect to its business in accordance  with generally accepted accounting principles consistently applied in accordance with past practices and shall accurately and completely record all transactions therein.

(p)       Business Activities.  The Borrower shall, and shall cause each Subsidiary to, continue to engage in the types of business activities in which it is currently engaged or other activities  involving food service and wholesaling food and related products, and shall not, and shall not permit any Subsidiary to, be engaged in any business activities other than the types in which it is currently engaged or other activities involving food service and wholesaling food and related products.

(q)       Compliance   with  Law.     The  Borrower   shall,   and  shall   cause  each Subsidiary to, comply at all times with all laws, statutes, ordinances, rules, regulations and orders of  any  governmental   entity  (including,  but  not  by  way  of  limitation,   such  laws,  statutes, ordinances, rules, regulations and orders relating to ecology, human health and the environment) having jurisdiction  over it or any part of its assets, where such failure to comply would have a material adverse effect on the Borrower's  or any Subsidiary's  operations or financial condition or the  ability  of the Borrower  to perform its obligations  hereunder.   The Borrower  and each Subsidiary shall obtain and maintain all permits, licenses, approvals and other similar documents required by any such laws, statutes, ordinances, rules, regulations or orders.

(r)        Deposit  Accounts.     The  Borrower  will  maintain   its  primary  deposit accounts  at the Bank  so long as (i) any obligations  to the Bank, whether  under the Loans or otherwise, remain outstanding and (ii) the Bank's fees and charges applicable to such deposit accounts are reasonable and customary.

(s)        Acquisitions.      The   Borrower   shall   not   acquire   equity   (except   for repurchases   of  Borrower's  stock  from  Borrower's   shareholders)   or  assets  (except  for  the acquisition  of land, buildings, and equipment in the ordinary course of business) of any one or more entities or persons that exceeds Five Million Dollars ($5,000,000) in the aggregate. No acquisition  shall be by a hostile takeover and no acquisition shall be permitted of any entity that is  not  engaged  in  the  same  types  of  business  activities  in  which  the  Borrower  is currently engaged or other activities involving food service and wholesaling food and related products.  In addition, no acquisition  shall be made by the Borrower unless (i) no default or Event of Default has  occurred  and  is  continuing,  (ii)  no  default  or  Event  of  Default  would  result  from  such acquisition,  (iii)  the  Borrower  has  first  provided  to  the  Bank  proforma  projections  of  its consolidated financial statements for the twelve (12) month period immediately following the expected date of the consummation  of such acquisition,  presented in accordance with generally accepted accounting principles, taking into consideration such acquisition and all Indebtedness incurred  or  assumed  in  connection  therewith,  and  in  form  and  detail  and  with  assumptions reasonably   satisfactory   to  the   Bank,   and   (iv)   such   proforma   projections   confirm   that immediately  prior  to  the  closing  of  such  acquisition  and  for  the  twelve  (12)  month  period immediately following the expected date of the consummation  of such acquisition the Borrower will  remain  in  compliance   with  all  of  its  Financial  Covenants  and  other  covenants  and obligations to the Bank.

(t)        Waiver.   Any variance  from the covenants  of the Borrower  pursuant to this Section 2 shall be permitted only with the prior written consent and/or waiver of the Bank. Any such variance by consent and/or waiver shall relate solely to the variance addressed in such consent and/or waiver, and shall not operate as the Bank 's consent and/or waiver to any other variance of the same covenant or other covenants, nor shall it preclude the exercise by the Bank of any power or right under this Agreement, other than with respect to such variance.

3.         Closing  Conditions.    The  obligation  of  the  Bank  to  make  the  Loans,  or  any portion thereof, and the effectiveness  of this Agreement are, at the Bank's  option, subject to the satisfaction of each of the following conditions precedent:

(a)        Default.    Before  and  after  giving effect  to  the  Loans,  or  any  portion thereof, no Event of Default or any event which, with the passage of time or the giving of notice, might mature into an Event of Default, shall have occurred and be continuing.

(b)       Warranties.   Before and after giving effect to the  Loans or any portion thereof, the representations and warranties in  Section 1 hereof shall be true and correct as though made on the date of such Loans or portion thereof.

(c)        Certification.   The Borrower shall have delivered to the Bank a certificate of the President or Chief Financial Officer of the Borrower dated as of the date hereof:  (i) as to the  matters  set  forth  in  Sections  3(a)  and  3(b)  above;  (ii) to the effect  that  the  resolutions described  in Section 3(d) below have not been amended or rescinded and remain in full force and effect; (iii) as to the incumbency of the individuals authorized to sign this Agreement, the Notes  (as  hereinafter   defined)   and  the  other  Loan  Documents   (with  specimen  signatures attached); and (iv) to the effect that the Articles of Incorporation and Code of Regulations of the Borrower are in full force and effect in the form delivered to the Bank.

(d)       Resolutions.  The Borrower shall have delivered to the Bank copies of the resolutions  of the Borrower's Board of Directors authorizing the borrowings hereunder and the execution and delivery of this Agreement, the Notes and other Loan Documents.

(e)        Articles and Regulations.   The Borrower shall have delivered to the Bank true and correct copies of its Articles of Incorporation and Code of Regulations.

(f)        Notes.   The Borrower shall have delivered  each of (a) the Construction Period Construction Note (as hereinafter defined) and (b) the Revolving Note, to the Bank with all  blanks  appropriately  completed  and  each  of  the  Notes  duly  executed  on  behalf  of  the Borrower.  The Construction Notes, the Revolving Note, the Stock Repurchase Term Note, the Existing  Construction  Term  Notes,  and  any  other  note  currently  or  hereafter  issued  by  the Borrower to the Bank, all as may be amended, restated, supplemented and/or modified from time to time,  are referred to herein as the "Notes".

(g)       Opinion.   The Borrower  shall have delivered to the Bank the opinion of outside counsel acceptable to the Bank, dated the date of this Agreement, to the effect that:   (i) the Borrower is duly organized, validly existing and in good standing as a corporation under the laws of the State of Ohio; (ii) the Borrower has full power and authority to execute and deliver this  Agreement,  the  Notes  and  the  other  Loan  Documents  and  to  perform  its  obligations thereunder; (iii) the execution and delivery by the Borrower of this Agreement, the Notes and the other Loan Documents, and the performance by the Borrower of its obligations thereunder, have been duly authorized by all necessary corporate action, and are not in conflict with any provision of law or of the Articles of Incorporation or Code of Regulations of the Borrower, nor in conflict with any agreement, order or decree binding upon the Borrower of which such counsel has knowledge; and (iv) this Agreement, the Notes and the other Loan Documents are the legal, valid and binding obligations  of the Borrower, enforceable  against the Borrower  in accordance  with their  respective   terms,   except  as  the  same  may  be  affected   by  bankruptcy,   insolvency, moratorium or similar laws now or hereafter in effect, or by legal or equitable principles relating

to or limiting creditors'  rights generally, or other rules of law or equity limiting the availability of specific performance or injunctive relief.

(h)       Commitment   Fee.     The  Borrower   shall   have   paid  to  the  Bank  in immediately available funds a $10,000 commitment fee as well as all out-of-pocket costs and expenses  of the Bank and its employees  (including,  without  limitation,  costs and expenses  of legal  counsel)   incurred   by  the  Bank  in  entering  into  this  Agreement  and  preparing  the documentation in connection herewith.

4.     Loans.

(a)     Loans.

(i)   Construction Loans.   Subject to the terms and conditions of this Agreement,  and  subject  to there  being  no Event  of Default  (or event  which  might,  with the giving of notice or the passage of time, mature into an Event of Default) hereunder, the Bank agrees to make loans to the Borrower to construct and open and/or refurbish the Restaurants (collectively,  the  "Construction  Loans")  in  an  aggregate  outstanding  amount  that  will  not exceed Five Million and 001100 Dollars ($5,000,000.00)  (the "Total Construction  Loan Commitment  Amount").

The Borrower shall provide the Bank notice of the Borrower's  desire to obtain Construction  Loan proceeds for the purpose of constructing and opening and/or refurbishing any particular Restaurant, which notice shall state the amount of the Construction Loan requested and the location of the particular Restaurant. The term "Business Day" as used herein shall mean any day other than a Saturday, Sunday or holiday on which banks in Cincinnati, Ohio are required or authorized by law to close. The Construction Loans shall be effectuated by the Bank crediting an account   maintained   by  the  Borrower  at  the  Bank.  No  repayment   or  prepayment  of  the Construction Loans shall be reason for any relending or additional lending of proceeds of the Construction  Loans to the Borrower, and no Construction Loan proceeds shall be disbursed after October  31, 2016. The outstanding  principal balance of each Construction  Loan which has not been converted  into a Construction  Term Loan (as hereinafter  defined) in accordance  with the next  paragraph  hereof  (such  Construction  Loans  which  have  not  been  so  converted  being collectively referred to herein as "Construction Period Construction Loans") shall mature and be payable in full on October 31, 2016 (the "Construction  Loan Maturity  Date"), unless the maturity thereof is accelerated  as described herein.   The Construction  Loans shall be evidenced by a promissory note in substantially the form of  Exhibit F attached hereto, as the same may be amended  and/or restated  from time to time (the "Construction  Period  Construction  Note"). Each of the Construction Loan draws hereunder shall be in the amount of Two Hundred Fifty Thousand Dollars ($250,000) or a multiple thereof.

By not  later than  the  six  (6) month anniversary  of the  1st  day of the calendar month immediately after the date that the Borrower receives an advance from the Bank of Construction  Loan proceeds  (except  in the case of such an advance made on the 1st day of a calendar  month,  in  which  event  the deadline  shall  be the  six (6)  month  anniversary  of such advance),  the  Borrower  shall  convert  the outstanding  principal  balance  of such  Construction Loan advance to a term loan with a maturity date that is not less than seven (7) years nor greater

than  twelve  (12)  years  after  the  Construction  Loan  Conversion  Date  (each  such  Loan  being referred to herein as a "Construction Term Loan"), by providing ten (10) Business Days prior written notice to the Bank of (i) the date on which the Borrower desires such conversion to be effective  (the "Construction  Loan Conversion  Date"),  which date must be the first day of a calendar  month and not later than the six (6) month anniversary  of the 1st  day of the calendar month immediately after the date that the Borrower receives an advance from the Bank of Construction  Loan proceeds  (except  in the case of such an advance made on the 1st  day of a calendar  month,  in  which  event  the deadline  shall  be the six  (6)  month  anniversary  of such advance)  (so that, for example,  (y) if the Borrower receives  such an advance  of Construction Loan proceeds on May 4, 2014, the Construction Loan Conversion Date for such advance cannot be  later  than  December  1,  2014  and  (z)  (y)  if  the  Borrower  receives  such  an  advance  of Construction Loan proceeds on May 1, 2014, the Construction Loan Conversion Date for such advance cannot be later than November 1, 2014), (ii) the maturity date elected by the Borrower for such Construction  Term Loan (each, a "Construction Term Loan Maturity Date"; which Construction  Term Loan Maturity Date shall be no later than the date which is twelve (12) years after the Construction  Loan Conversion Date, (iii) if the Borrower desires that such Construction Term Loan bear interest at the Cost of Funds-Based Rate (as hereinafter defined), the irrevocable commitment by the Borrower to accept and be bound by its election of such Cost of Funds-Based Rate until  the Construction  Term  Loan Maturity  Date of such Construction  Term Loan or as otherwise  expressly  provided  herein,  and  (iv)  if the Borrower  desires  that such  Construction Term  Loan be a LIBOR  Rate Loan (as hereinafter  defined),  its election  of such LIBOR Rate Loan and election of one of the 1, 2 or 3 month LIBOR rate as described in Section 4(b)(i). Notwithstanding  the foregoing,  the Borrower shall  have the option  to extend  the Construction Term Loan Maturity Date of any Construction Term Loan having both a Construction Loan Conversion Date after December 3, 2007 and an original Construction Term Loan Maturity Date of less than twelve (12) years from the Construction Loan Conversion Date once during the term thereof  to a date not later than  twelve  (12)  years after the Construction  Conversion  Date,  by providing no less than thirty (30) days'  written notice to the Bank of its intent to exercise such option.

Each Construction  Term  Loan which bears interest  at the Cost of Funds-Based Rate shall be evidenced  by a promissory note in substantially the form of  Exhibit G-1 attached hereto with all blanks appropriately completed and each Construction Term Loan which does not bear  interest  at  the  Cost  of  Funds-Based  Rate  shall  be  evidenced  by  a  promissory  note  in substantially  the form  of  Exhibit  G-2 attached  hereto with all blanks appropriately  completed (each, a "Construction  Term Note"; the Construction Term Notes and the Construction Period Construction Note are sometimes collectively referred to herein as the "Construction Notes").

Subject to there being no Event of Default (or event which might, with the giving of notice or the passage of time, mature into an Event of Default) hereunder, upon request by the Borrower, the Bank may consider increasing the Total Construction Loan Commitment Amount from Five Million and 001100 Dollars by up to Ten Million and 00/100 Dollars ($10,000,000.00) in the aggregate, but is not hereby committing in any way thereto.  Upon any such increase, at
the option of the Bank, the Borrower shall execute a new promissory note substantially identical to the Construction Period Construction Note, except reflecting the new total Construction Loan Commitment Amount, which thereupon shall be the Construction Period Construction Note hereunder.

(ii)       Revolving  Loan.    Subject  to  the  terms  and  conditions  of  this Agreement,  and  subject  to there  being no Event  of Default  (or  event  which  might,  with the giving of notice or the passage of time, mature into an Event of Default) hereunder, the Bank agrees to lend and relend to the Borrower, upon request by the Borrower made to the Bank in the manner described in Sections 4(b) and (c)  below, during the period from the date hereof to the earlier of (A) October 31, 2016, or the termination date of any extension hereof agreed to by the Borrower  and the Bank as described  below, or (B) the date of the occurrence  of an Event of Default,  unless  waived  by the Bank (the earlier of such dates being referred  to herein as the "Revolver Commitment  Termination  Date"), a principal sum of up to Eleven Million Dollars ($11,000,000)  (the "Total Revolver Commitment  Amount"), as the Borrower may from time to time request for the Borrower's working capital needs (the "Revolving Loan"); provided, however, that the Bank shall not be required to make, and the Borrower shall not be entitled to receive, any Revolving  Loan if, after giving effect thereto, the aggregate  outstanding  principal balance of the Revolving Loan would exceed the Total Revolver Commitment Amount.

Each Revolving  Loan draw  hereunder  shall  be in the amount  of Two Hundred Fifty Thousand Dollars ($250,000) or a multiple thereof; provided, however, no minimum or incremental   draw   amount   requirement   shall  apply   if  the   Borrower   maintains   an  active commercial sweep account at the Bank.  The Revolving Loan shall be evidenced by a Revolving Credit Promissory Note given by the Borrower to the Bank in substantially the form of Exhibit H attached  hereto, as amended and/or restated from time to time (the "Revolving  Note").  The Revolving  Note shall mature and be payable in full on October 31, 2016, unless accelerated or extended as described herein.  If the outstanding principal balance of the Revolving Loan at any time exceeds the Total Revolver Commitment Amount, the Borrower shall immediately, without notice or demand, reduce the outstanding principal balance of the Revolving Loan such that the Total Revolver Commitment Amount is not exceeded.

Upon request by the Borrower, the Bank may consider extensions of the Revolver Commitment  Termination  Date, but is not hereby committing  in any way thereto.   Upon any such extension, at the option of the Bank, the Borrower shall execute a new promissory note substantially identical to the Revolving Note, except reflecting the new Revolver Commitment Termination Date, which thereupon shall be the Revolving Note hereunder.

(iii)      Existing Construction Term Loans.  The Bank made several loans to the Borrower  under the Prior Loan Agreement and earlier agreements amended and restated by  the  Prior  Loan  Agreement  to  construct  and  open  and/or  refurbish  the  Restaurants  (the "Existing Construction Term Loans").  As of the date hereof, the remaining aggregate unpaid principal amount of the Existing Construction Term Loans is Eleven Million Four Hundred Forty Nine  Thousand  Two  Dollars  and  651100 ($11,449,002.65).    The  Existing  Construction  Term Loans are evidenced  by the following  promissory  notes, as the same may be amended and/or restated from time to time (each an "Existing Construction  Term Note" and collectively,  the "Existing Construction Term Notes"):

1)     that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory
Note in the original principal amount of Two Million Dollars ($2,000,000)  dated September 1,

2008  issued  by the Borrower  to the  Bank  with an outstanding  principal  balance  on the date hereof of Six Hundred Forty One Thousand Three Hundred Forty Two and 53/100 Dollars ($641,342.53);

2)         that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory Note in the original principal amount of Three Million Dollars ($3,000,000)  dated June 1, 2007 issued by the Borrower to the Bank with an outstanding principal balance on the date hereof of Three   Hundred   Forty   Nine   Thousand   Three   Hundred   Sixty   Four   and   60/100   Dollars ($349,364.60);

3)         that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory Note  in  the  original   principal  amount   of  Four  Million   Five  Hundred   Thousand   Dollars ($4,500,000)  dated November 1, 2007 issued by the Borrower to the Bank with an outstanding principal  balance  on the  date  hereof  of  Eight  Hundred  Forty  One  Thousand  Seven  Hundred Twenty Six and 76/100 Dollars ($841,726.76);

4)         that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory Note  in  the  original   principal   amount   of  Two  Million   Five  Hundred   Thousand   Dollars ($2,500,000)  dated  October  1, 2008  issued  by the Borrower  to the Bank with an outstanding principal  balance on the date hereof of Eight Hundred Thirty Thousand  Three Hundred Eighty Six and 20/100 Dollars ($830,386.20);

5)    that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory
Note in the original  principal  amount  of Two Million  Dollars  ($2,000,000)  dated February  1,
2009  issued  by the Borrower  to the  Bank  with an outstanding  principal  balance on the date hereof of Seven Hundred Fifty Five Thousand Two Hundred Twelve and 39/100 Dollars ($755,212.39);

6)        that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory Note in the original principal amount of One Million Dollars ($1,000,000) dated March 1, 2009 issued by the Borrower to the Bank with an outstanding principal balance on the date hereof of Three   Hundred   Eighty   Nine  Thousand   Five  Hundred   Twenty   Two   and  95/100   Dollars ($389,522.95);

7)         that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory Note in the original principal  amount of Two Million Dollars ($2,000,000)  dated April 1, 2009 issued by the Borrower to the Bank with an outstanding principal balance on the date hereof of Eight Hundred Six Thousand Seven Hundred Ten and 25/100 Dollars ($806,710.25);

8)        that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory Note in the original principal amount of One Million Dollars ($1,000,000) dated August 1, 2009 issued by the Borrower to the Bank with an outstanding principal balance on the date hereof of Four Hundred Fifty Two Thousand Three Hundred Thirty and 42/100 Dollars ($452,330.42);

9)     that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory
Note in the original principal amount of Four Million Dollars ($4,000,000)  dated September  1,
2010  issued  by the  Borrower  to the Bank  with an outstanding  principal  balance on the date

hereof  of Two  Million  Three  Hundred  Fifty Nine Thousand  Two  Hundred  Ninety  Seven and
47/100 Dollars ($2,359,297.47);

10)      that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory Note   in  the  original   principal   amount   of  One  Million   Five   Hundred   Thousand   Dollars ($1,500,000)   dated  May  1,  2011  issued  by  the  Borrower  to  the  Bank  with  an  outstanding principal  balance  on  the  date  hereof  of  One  Million  Thirty  Thousand  Sixty  Six  and  17/100
Dollars ($1,030,066.17);

11)     that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory
Note in the original  principal  amount of Five Hundred Thousand  Dollars ($500,000)  dated July
1, 2011  issued  by the Borrower  to the Bank with an outstanding  principal  balance on the date hereof of Three Hundred  Fifty Two Thousand  Eight Hundred  Seventy One and 911100 Dollars ($352,871.91);

12)      that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory Note in the original principal amount of One Million Dollars ($1 ,000,000)  dated August 1, 2011 issued by the Borrower  to the Bank with an outstanding principal  balance on the date hereof of Seven Hundred Sixteen Thousand Eight Hundred Ninety Two and 78/100 Dollars ($716,892.78);

13)      that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory Note   in  the  original   principal   amount   of  One  Million   Five  Hundred   Thousand   Dollars ($1,500,000)  dated December 1, 2011 issued by the Borrower to the Bank with an outstanding principal balance on the date hereof of One Million One Hundred Forty Thousand Nine Hundred Fifty Three and 93/100 Dollars ($1,140,953.93);  and

14)     that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory
Note  in the original  principal  amount  of One Million  Dollars  ($1,000,000)  dated  February  1,
2012  issued  by the  Borrower  to  the Bank  with an outstanding  principal  balance  on the  date hereof of Seven Hundred Eighty Two Thousand Three Hundred Twenty Four and 29/100 Dollars ($782,324.29).

The Existing  Construction  Term Notes are subject to the terms and conditions of this Agreement.  The maturity date of each Existing Construction Term Note is set forth in such Existing Construction Term Note, unless accelerated or extended as described herein (each an "Existing  Construction   Loan  Maturity  Date"  and  collectively  the "Existing  Construction Term Loan Maturity Dates").   The Borrower shall have the option to extend any Existing Construction  Term  Loan  Maturity  Date  of any  Existing  Construction  Term  Loan  dated  after December  3, 2007 and an original Existing Construction  Term Loan Maturity  Date of less than twelve (12) years from the date of original  issuance  of such Existing  Construction  Term Note once during the term thereof to a date not later than twelve (12) years after the date of original issuance  of such Existing  Construction  Term Note, by providing  no less than thirty (30) days' written notice to the Bank of its intent to exercise such option.

(iv)       Stock Repurchase Loan.  The Bank made a loan to the Borrower in the principal amount of One Million Dollars ($1 ,000,000.00)  under the Prior Loan Agreement to fund the Borrower's repurchase of certain shares of the Borrower's common stock as authorized

by the board of directors of the Borrower (the "Stock Repurchase Loan").   The current unpaid principal  balance  of  the  Stock  Repurchase  Loan  as  of  the  date  of  this  Agreement  is Seven Hundred Five Thousand Seven Hundred Forty Four and 10/100 Dollars ($705,744.10).   No repayment or prepayment of the Stock Repurchase Loan shall be reason for any relending or additional lending of proceeds of the Stock Repurchase Loan to the Borrower.

The Borrower 's payment obligations concerning the Stock Repurchase  Loan are evidenced  by  that  certain  Cost  of  Funds  Rate  Term  Loan  Promissory  Note  in  the  original principal amount of One Million Dollars ($1,000,000) dated July 1, 2011 issued by the Borrower to  the  Bank,  as  the  same  may  be  amended  and/or  restated  from  time  to  time  (the  "Stock Repurchase Term Note").

(b)     Interest.

(i)    Construction  Loan.    Interest  on  each  advance  of  the  Construction Loans hereunder (prior to conversion to a Construction Term Loan) shall accrue at an annual rate equal to the LIBOR Rate Margin (as hereinafter defined) plus the 1, 2, or 3 month LIBOR rate (as selected by the Borrower)  and quoted by the Bank from Telerate Page 3750 or any successor thereto (which shall be the LIBOR rate in effect two New York Banking Days prior to (A) commencement  of the advance  or (B) the end of each  Loan Period  (as hereinafter  defined)), adjusted  for  any  reserve  requirement  and  any  subsequent  costs  arising  from  a  change  in government regulation (a "LIBOR Rate Loan").

The term "New  York Banking Day" means any day (other than a Saturday or
Sunday) on which commercial banks are open for business in New York, New York.

In the event the Borrower does not timely select an interest rate option at least two New York Banking  Days before the end of the Loan Period for a Construction  Loan that is a LIBOR Rate Loan, the funds  advanced  under such Construction  Loan shall, beginning on the first day of the new Loan Period, accrue interest at the 1 month LIBOR rate in effect two New York Banking Days prior to commencement such Loan Period.

The term "Loan Period" means the period commencing on the advance date (or the Conversion Date) of the applicable LIBOR Rate Loan and ending on the numerically corresponding  day 1, 2, or 3 months  thereafter matching the interest rate term selected  by the Borrower; provided, however, (A) if any Loan Period would otherwise end on a day which is not a New York  Banking  Day, then the Loan Period shall end on the next succeeding  New York Banking  Day  unless  the  next  succeeding  New  York  Banking  Day  falls  in  another  calendar month,  in  which  case  the  Loan  Period  shall  end  on  the  immediately  preceding  New  York Banking Day; or (B) if any Loan Period begins on the last New York Banking 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 the Loan Period), then the Loan Period shall end on the last New York Banking Day of the calendar month at the end of such Loan Period.

No Construction  Period Construction Loan may extend beyond the Construction Loan Maturity  Date.   In any event, if the Loan Period for a Construction  Period Construction Loan should happen to extend beyond the Construction  Loan Maturity Date, such Construction

Period Construction Loans must be prepaid at the Construction Loan Maturity Date.   Each Construction  Loan shall be in a minimum principal amount of Five Hundred Thousand Dollars ($500,000) and in increments of Five Hundred Thousand Dollars ($500,000) thereafter.

If a LIBOR Rate Loan is prepaid prior to the end of the Loan Period, as defined above, for such loan, whether voluntarily or because prepayment is required due to such loan's maturing or accelerating  upon default or otherwise, the Borrower agrees to pay all of the Bank's costs, expenses, and Interest Differential (as determined by the Bank) incurred as a result of such prepayment.   The term "Interest Differential" shall mean that sum equal to the greater of zero or the financial loss incurred by the Bank resulting from prepayment, calculated as the difference between the amount of interest the Bank would have earned (from like investments in the Money Markets  as of the first  day of the LIBOR  Rate  Loan) had  prepayment  not occurred  and the interest the Bank will actually earn (from like investments in the Money Markets as of the date of prepayment)  as a result of the redeployment of funds from the prepayment.   Because of the short-term  nature of the LIBOR Rate Loans, the Borrower agrees that the Interest Differential shall not be discounted to its present value.  Any prepayment of a LIBOR Rate Loan shall be in an amount  equal  to  the  remaining  entire  principal  balance  of such  loan.   The  term "Money Markets"  refers to one or more wholesaling funding markets available to and selected  by the Bank, including negotiable certificates of deposit, commercial paper, Eurodollar deposits, bank notes, federal funds, interest rate swaps, or others.

The  "LIBOR  Rate  Margin"  is  currently  one  hundred  thirty-five  (135)  basis points  and  shall  be  subject  to  adjustment  on  each  March  1  for  application  to  the  period commencing  on  such  date  in accordance  with  the  Borrower's  ratio  of Senior  Bank  Debt  to Adjusted  EBITDA for the period commencing  on the first day of the Borrower's  then-current fiscal  year and ending  on the last day of the second  quarter  of such fiscal  year and on each September  1 for  application  to the  period  commencing  on such  date  in  accordance  with  the Borrower's ratio of Senior Bank Debt to Adjusted EBITDA for the period commencing on the first day of the Borrower 's immediately preceding fiscal year and ending on the last day of such fiscal year, as follows: if the Borrower's  ratio of Senior Bank Debt to Adjusted EBITDA is 1.50 to 1.0 or greater, the LIBOR Rate Margin shall be one hundred eighty (180) basis points; if the Borrower's ratio of Senior Bank Debt to Adjusted EBITDA is less than 1.50 to 1.0 but equal to or greater than 1.00 to 1.0, the LIBOR Rate Margin shall be one hundred fifty-five (155) basis points; and if the Borrower's ratio of Senior Bank Debt to Adjusted EBITDA is less than 1.00 to
1.0,  the  LIBOR  Rate  Margin  shall  be  one  hundred  thirty-five   (135)  basis  points.  Such adjustments  shall be based upon the Borrower's ratio of Senior Bank Debt to Adjusted EBITDA as determined from the financial statements delivered to the Bank pursuant to Section 2(b)(i) or (ill hereof, as applicable. The foregoing provisions are not intended to, and shall not be construed to, authorize  any violation  by the Borrower of any Financial  Covenant  or constitute  a waiver thereof or any commitment by the Bank to waive any violation by the Borrower of any Financial Covenant.

Upon conversion  of a Construction  Period Construction  Loan to a Construction Term Loan or other loan hereunder to a term loan (each such Construction Term Loan or other term  loan  hereunder  may  sometimes  herein  also  be  referred  to  as  a  "Term  Loan"  and collectively  referred to as the "Term Loans" and the Construction Loan Conversion Date may sometimes  herein also be referred to as a "Conversion  Date"), the Borrower shall choose that

interest on such Term Loan shall accrue after such Term Loan's  Conversion  Date as provided under either Option A or Option B that follows (with Option B only being available as a choice to the Borrower so long as no Event of Default or event which, with the passage of time or the giving of notice, might mature into an Event of Default, shall have occurred and be continuing): (A)  under  Option  A  (which  shall  be known  as  a "Variable  Rate  Term  Loan"), for  which Borrower  shall  execute  a promissory  note in substantially  the form  of Exhibit  G-2 attached hereto, interest  on such Variable Rate Term Loan shall accrue after such Variable Rate Term Loan's Conversion Date as a LIBOR Rate Loan at the then applicable LIBOR Rate Margin plus the 1, 2, or 3 month LIBOR rate quoted by the Bank from Telerate Page 3750 or any successor thereto (which shall be the LIBOR rate in effect two New York Banking Days prior to (i) commencement  of the Variable Rate Term Loan or (ii) the end of each Loan Period, adjusted for any  reserve  requirement   and  any  subsequent  costs  arising  from  a  change  in  government regulation;  or  (B) under  Option  B (which  shall  be known  as a "Cost of Funds  Rate Term Loan"),  for  which  Borrower  shall  execute  a  Promissory  Note  in  substantially  the  form  of Exhibit G-1 attached hereto, interest on such Cost of Funds Rate Term Loan shall accrue after such Cost of Funds Rate Term Loan's Conversion Date at a fixed rate per annum equal to one hundred fifty (150) basis points plus the Bank's  Cost of Funds as of the Conversion Date (the "Cost of Funds-Based Rate").

With respect to any Variable Rate Term Loan, in the event the Borrower does not timely select another interest rate option at least two New York Banking Days before the end of the Loan Period for a LIBOR Rate Loan, the funds advanced under the LIBOR Rate Loan shall, beginning on the first day of the new Loan Period, accrue interest at the 1 month LIBOR rate in effect two New York Banking Days prior to commencement  of such Loan Period.  No Variable Rate  Term  Loan  may  extend  beyond  the  Construction  Term  Loan  Maturity  Date  for  such Variable Rate Term Loan.   In any event, if the Loan Period (as defined  below) for a Variable Rate Term Loan should happen to extend beyond the applicable maturity date for such Variable Rate Term Loan, such Variable Rate Term Loan must be prepaid at its Construction Term Loan Maturity Date.   Each Variable Rate Term Loan shall be in a minimum principal amount of Five Hundred Thousand Dollars ($500,000) and in increments of Five Hundred Thousand Dollars ($500,000) thereafter.

With respect to any Cost of Funds Rate Term Loan, the term "Cost of Funds" means the rate at which the Bank would be able to borrow funds of comparable amounts in the Money Markets for a period equal to the remaining term of such Cost of Funds Rate Term Loan, adjusted  for  any  reserve  requirement  and  any  subsequent  costs  arising  from  a  change  in government regulation, with such rate rounded upward to the nearest one-eighth percent, and the term.

(ii)       Revolving Loan.  Interest on each advance of the Revolving Note hereunder  shall accrue at an annual rate equal to the LIBOR Rate Margin plus at the 1 month LIBOR rate quoted by the Bank from Telerate Page 3750 or any successor their, which shall be that one-month  LIBOR rate in effect to New York Banking Days prior to the beginning of each calendar  month, adjusted  for any reserve requirement and any subsequent  costs arising from a change  in government  regulation,  such  rate to  be reset at  the beginning  of  each  succeeding month.  If the initial advance under this Note occurs other than on the first day of the month, the initial 1 month LIBOR rate shall be that 1 month LIBOR rate in effect two New York Banking

Days  prior  to  the  date  of  the  initial  advance;  such  1-month  LIBOR  rate  to  be  reset  at  the beginning of each succeeding  month (the "Revolving Note LIBOR Rate;" provided, however, the Borrower may elect at any time to the convert all or any portion of the outstanding advances of the Revolving  Note to a LIBOR Rate Loan as set forth in Section 4(b)(i).   In the event the Borrower  does  not timely  select an interest  rate option at least two New  York Banking Days before the end of the Loan Period for outstanding  advances  of the Revolving  Note that are a LIBOR Rate Loan, such outstanding advances, shall, beginning on the first day of the new Loan Period, accrue interest at the Revolving Note LIBOR Rate.

No Revolving Loan may extend beyond the Revolving Commitment Termination Date.  In any event, if the Loan Period for a Revolving Loan should happen to extend beyond the Revolving   Commitment   Termination   Date,  such  loan  must  be  prepaid  at  the  Revolving Commitment  Termination  Date.  Each Revolving Loan shall be in a minimum principal amount of Two Hundred Fifty Thousand Dollars ($250,000) and in increments of Two Hundred Fifty Thousand Dollars ($250,000) thereafter; provided, however, no minimum or incremental draw amount requirement shall apply if the Borrower maintains an active commercial sweep account at the Bank. The Borrower may, at its option, from time to time repay or prepay part or all of the outstanding  principal  balance  of the Revolving  Loan  bearing interest  based on the Revolving Note LIBOR Rate without premium.

(iii)      Existing  Construction  Term  Loans.   The  unpaid  balance of each Existing Construction Term Loan shall bear interest as set forth in the applicable Existing Construction  Term Note.  Each Existing Construction Term Loan is a Cost of Funds Rate Term Loan.

(iv)      Stock   Repurchase   Loan.     The   unpaid   balance   of  the   Stock Repurchase Loan shall bear interest at a rate of 3.56% per annum.  The Stock Repurchase Loan is a Cost of Funds Rate Term Loan.

Interest on the Loans shall be computed on the basis of a year consisting of three hundred sixty (360) days but applied to the actual number of days elapsed.  The Bank's internal records of applicable interest rates shall be determinative in the absence of manifest error.

At the option of the Bank, (a) prior to acceleration of the Loans, in the event that any interest  on or principal of any Loan remains  unpaid past thirty (30) days of the date due, and/or (b) upon the occurrence of any other Event of Default hereunder or upon the acceleration of the Loans, interest (computed and adjusted in the same manner, and with the same effect, as interest on the Loans prior to maturity) on the outstanding balance of the Loans shall be payable on demand at the rate that would otherwise be in effect for such Loans from time to time as set forth in this  Section 4(b) plus an additional three percent (3%) per annum up to any maximum rate  permitted  by  law,  in  all  cases  until  paid  and  whether  before  or  after  the  entry  of  any judgment thereon.   In addition,  in the event that the Borrower should fail to make any payment hereunder  within  ten (10)  days of the date due, the Borrower  shall pay the Bank a fee in an amount of up to five percent (5%) of the amount of such payment, but in no event less than Fifty Dollars ($50.00), which fee shall be immediately due and payable without notice or demand.

(c)     Payments.

(i)  Payments on Construction Loans.  Interest on any Variable Rate Term Loan shall be payable, in arrears, on the last day of the Loan Period applicable thereto, and when such Loan is due (whether by reason of acceleration or otherwise).   Interest on any Prime Rate (as defined below) priced Loan shall be payable, in arrears, on the last day of each month, and when  such  Loan  is  due  (whether  by  reason  of  acceleration  or  otherwise).    In  addition,  the Borrower  shall  pay all accrued  but unpaid  interest  on each Construction  Period  Construction Loan on the Conversion  Date of such Construction Period Construction  Loan to a Construction Term Loan.

The principal of each Construction Loan which has not been converted into a Construction  Term  Loan  shall be due and payable in full on the Construction  Loan Maturity Date.

The principal of each Variable Rate Term Loan shall be payable in equal monthly installments  in amounts sufficient to amortize the principal amount of such Variable Rate Term Loan over the period commencing  on the Conversion Date for such Variable  Rate Term Loan and ending on its Term Loan Maturity Date, with such payments commencing on the first day of the calendar month after the calendar month which includes the Conversion Date and continuing on the first day of each calendar month thereafter through and including the Construction Term Loan Maturity Date, at which time the outstanding principal balance of such Variable Rate Term Loan shall be due and payable in full.

With respect to each Cost of Funds Rate Term Loan that is a Construction Term Loan,  on  the  first  day  of  the  calendar  month  after  the  calendar  month  which  includes  the Conversion  Date for such Cost of Funds Rate Term Loan and on the first day of each calendar month  thereafter  through  and including  the applicable  Construction  Term Loan Maturity Date thereof, the Borrower shall make equal payments of principal and interest in amounts sufficient to amortize  the principal balance of such Cost of Funds Rate Term Loan as of the Conversion Date over the period commencing on the Conversion Date and extending until the Construction Term Loan Maturity  Date, with each such payment being applied first to accrued interest and then to principal.   The outstanding  principal balance of and all interest on each Cost of Funds Rate Term Loan shall be due and payable in full on its Construction Term Loan Maturity Date.

(ii)       Revolving  Loan Payments.   Interest on the Revolving  Loan shall be  payable,  in  arrears,  on  the  first  day  of  each  month  for  advances  bearing  interest  at  the Revolving  Note  LIBOR  Rate,  on the last day of the Loan Period  applicable  thereto  for such portions  of the advances  that are a LIBOR Rate Loan, and when such Revolving  Loan is due (whether by reason of acceleration or otherwise).

The  principal  of  the  Revolving  Loan  shall  be due  and  payable  in full  on the
Revolver Commitment Termination Date.

(iii)      Payment on the Existing Construction Term Loans.  The principal balance of the Existing Construction Term Loans and interest accrued thereon shall be repaid by the Borrower to the Bank as set forth in the respective Existing Construction Term Notes.  If not sooner repaid, the outstanding principal balance of and all interest on each Existing Construction Term Loan shall be due and payable in full on its Existing Construction  Term Loan Maturity

Date.    No repayment or prepayment  of any Existing Construction Term Loan by the Borrower shall be reason for any relending or additional lending of any Existing Construction Term Loan to the Borrower.

(iv)      Payment on Stock Repurchase Loan.  The principal balance of the Stock Repurchase Loan and interest accrued thereon shall be repaid by the Borrower to the Bank by consecutive  monthly  payments  in the amount  of $13,492.33  each on the first day of each calendar month, having commenced on August 1, 2011, and by a final payment on July 1, 2018 in the amount of the unpaid principal and interest balance of the Stock Repurchase Loan.  No repayment or prepayment of the Stock Repurchase Loan by the Borrower shall be reason for any relending or additional lending of the Stock Repurchase Loan to the Borrower.

All payments of principal and interest hereunder shall be made in immediately available funds to the Bank at such place as may bb designated by the Bank to the Borrower in writing. The Bank is authorized  by the Borrower to enter from time to time the balance of the Loans and all payments and prepayments  thereon on the reverse of the Notes or in the Bank's regularly maintained data processing records, and the aggregate unpaid amount of the Loans set forth  thereon  or therein  shall  be presumptive  evidence of the amount  owing  to the Bank and unpaid  thereon.   Upon  request  and  payment   by  the  Borrower  of  a  reasonable  fee  which compensates the Bank for the cost of issuing the same, the Bank shall provide the Borrower with a statement showing all payments and prepayments on the Loans.

(d)       Changes in Laws and Circumstances;  Illegality.   In the event of (A) any change in the reserve requirements and/or the assessment rates of the FDIC which are applicable to the Bank in making any or all of the Loans or (B) any change in circumstances affecting the interbank  market,  or (C) any adoption  of any law or any governmental  or quasi-governmental rules, regulation,  policy, guideline or directive (whether or not having the force of law) or any change in the interpretation, promulgation, implementation or administration thereof by any governmental  or quasi-governmental  authority, central bank or comparable agency charged with interpretation   or  administration   thereof,  including,   without   limitation,   all  requests,   rules, guidelines  or  directives  in  connection  with  Dodd-Frank  Wall  Street  Reform  and  Consumer Protection Act regardless of the date enacted, adopted or issued, and the result of any such event described  in clause  (A), (B), or (C) above is to increase  the costs to the Bank of making  the Loans,  the  Borrower  shall  promptly  pay  the  Bank  any  additional  amounts,   upon  demand accompanied  by a reasonably detailed statement as to such additional amounts (which statement shall be conclusive in the absence of manifest error), which will reasonably compensate the Bank for such costs.

(i)        If  by  reason  of  circumstances   affecting   the  interbank  market adequate  and  reasonable  means  do  not  exist  in  the  reasonable  judgment  of  the  Bank  for ascertaining the rate of interest for a LIBOR Rate Loan or Cost of Funds Rate Term Loan at any time, the Bank shall forthwith give notice thereof to the Borrower. Unless and until such notice has been withdrawn  by the Bank, the Borrower may not thereafter elect to have any portion of the Loans bear interest at a LIBOR based rate or Cost of Funds-Based Rate, as applicable.

(ii)       If any law, rule, regulation, treaty, guideline, order or directive or any change therein or in the interpretation  or application  thereof shall make it unlawful for the

Loans to bear interest at a LIBOR based rate or Cost of Funds-Based  Rate, the Bank shall notify the Borrower thereof and no portion of the Loans may thereafter bear interest at a LIBOR based rate or Cost of Funds-Based  Rate, as applicable. If required by law, any portion of the Loans then bearing interest at a LIBOR based rate or Cost of Funds-Based Rate, as applicable,  shall cease to bear interest at the LIBOR based rate or Cost of Funds-Based  Rate, as applicable,  and shall bear interest based on the Prime Rate.  The "Prime Rate" is the rate announced from time to time by the Bank as its prime rate.  The Prime Rate is determined solely by the Bank pursuant to market factors and its own operating needs and is not necessarily the Bank's  best or most favorable rate for corporate, commercial, or other loans.

(e)        Prepayments.   The Borrower may, at its option, from time to time repay or prepay part or all of the outstanding  principal balance of the Loans bearing interest based on the Prime  Rate or the Revolving  Note LIBOR  Rate without  premium.   The Borrower  may, at its option, from time to time repay or prepay part or all of the outstanding  principal  balance of any of the Revolving  Loans bearing interest based on the LIBOR Rate and/or the Construction  Loans at the end of a Loan Period without premium.

I
If  any   LIBOR   Rate   Loan   (including,   without   limitation,   any  advances   of
Revolving  Loans that Borrower has elected to be a LIBOR Rate Loan) is prepaid prior to the end of the Loan Period for such loan, whether voluntarily  or because prepayment  is required due to such loan's  maturing or accelerating upon default or otherwise, the Borrower agrees to pay all of the Bank's costs,  expenses,  and Interest Differential  (as determined  by the Bank) incurred  as a result of such prepayment.   Because of the short-term nature of this facility, the Borrower agrees that the Interest  Differential  shall not be discounted  to its present value.   Any prepayment  of a LIBOR Rate Loan shall be in an amount equal to the remaining entire principal  balance of such loan.

There  shall be no prepayments  of any Cost of Funds Rate Term  Loan, provided that the Bank may consider  requests  for its consent with respect to prepayment  of any Cost of Funds   Rate   Term   Loan,   without   incurring   an   obligation   to   do   so,   and   the   Borrower acknowledges  that in the event that such consent  is granted,  the Borrower  shall  be required  to pay the Bank,  upon  prepayment  of all or part of the principal  amount of a Cost of Funds Rate Term  Loan  before  final  maturity,  a prepayment  indemnity  ("Prepayment  Fee") equal  to the greater  of zero,  or that  amount,  calculated  on any date of prepayment  ("Prepayment  Date"), which is derived by subtracting:   (a) the principal amount of such Cost of Funds Rate Term Loan or portion of such Cost of Funds Rate Term Loan to be prepaid from (b) the Net Present Value of such  Cost of Funds  Rate Term  Loan or portion  of such Cost of Funds  Rate Term  Loan to be prepaid on such Prepayment  Date; provided, however, that the Prepayment  Fee shall not in any event exceed the maximum  prepayment  fee permitted  by applicable  law.   Notwithstanding  the foregoing,  if prior  to the conversion  of a Construction  Period  Construction  Loan  to a Cost of Funds Rate Term Loan, the Bank and the Borrower mutually agree that the Cost of Funds-Based Rate will include a premium as payment to the Bank for waiver by the Bank of any Prepayment Fee (determined  by the Bank in its sole discretion) over the then applicable Cost of Funds-Based Rate and such  premium  is expressly  described  in the applicable  Note,  then the Borrower  may prepay  such  Cost  of  Funds  Rate  Term  Loan  without  incurring  a  Prepayment   Fee.   If  the Borrower  initially  elects  less  than  a  12  year  maturity  for  a  Construction  Term  Loan  or  an Existing  Construction  Term  Loan  that is also  a Cost of Funds  Rate Term  Loan  and later  the

Borrower  exercises  its  option  to  extend  the  maturity  up  to  12  years  from  the  Construction Conversion  Date  (or  with  respect  to an  Existing  Construction  Term  Loan,  from  the  date of issuance of such Existing Construction Term Loan), if the Borrower did not pay a premium to the Bank for waiver by the Bank of any Prepayment Fee at the Construction Conversion Date (or with respect to an Existing Construction Term Loan, at the date of issuance of such Existing Construction Term Loan), then the Borrower will be subject to a Prepayment Fee at the time the Borrower  elects  to  extend  the  maturity  date  of  such  Construction  Term  Loan  or  Existing Construction  Term  Loan;  provided,  however,  the Bank shall  waive any Prepayment  Fee that would otherwise apply to any Cost of Funds Rate Term Loan issued on or after September 1,
2007 and prior to October 21, 2010.

"Net Present Value" shall mean the amount which is derived by summing the present values of each prospective payment of principal and interest which, without such full or partial  prepayment,   could  otherwise  have  been  received  by  the  Bank  over  the  remaining contractual  life of such Cost of Funds Rate Term Loan.   The individual  discount rate used to present value each prospective payment of interest and/or principal shall be the Money Market Rate at Prepayment for the maturity matching that of each specific payment of principal and/or interest.

"Money  Market  Rate  At  Prepayment"  shall  mean  that  zero-coupon  rate, calculated on the Prepayment Date, and determined solely by the Bank, as the rate at which the Bank would be able to borrow funds in Money Markets for the prepayment amount matching the maturity of a specific prospective Cost of Funds Rate Term Loan payment date, adjusted for any reserve requirement  and any subsequent costs arising from a change in government regulation. A separate  Money Market Rate at Prepayment  will be calculated for each prospective interest and/or principal payment date.

In calculating the amount of such Prepayment Fee, the Bank is hereby authorized by the Borrower  to make such assumptions  regarding  the source of funding,  redeployment  of funds, and other related matters, as the Bank may deem appropriate.  If the Borrower fails to pay any Prepayment Fee when due, the amount of such Prepayment Fee shall thereafter bear interest as a LIBOR Rate Loan until paid at the default rate specified in this Agreement (computed on the basis  of  a  360-day   year,  actual   days  elapsed).     Any  prepayment   of  principal  shall  be accompanied  by a payment  of interest  accrued to date thereon;  and said prepayment shall  be applied to the principal  installments  in the inverse order of their maturities.   All prepayments shall be in an amount of at least $100,000 or, if less, the remaining entire principal balance of the applicable Cost of Funds Rate Term Loan.

No  partial  prepayment  of any  of  the  Loans  shall  change  any  due  date  or  the amount of any regularly-scheduled  installment of principal thereof.

(f)        Unused Credit Fee. The Borrower shall pay the Bank an unused credit fee in an amount equal to one quarter of one percent (.25%) per annum times the daily average of (a) the  unused  Total  Revolver  Commitment   Amount  plus  (b)  the  unused  Construction  Loan Commitment  Amount  (the "Unused  Credit  Fee"),  which  fee  shall  be payable  quarterly,  in arrears,  having  commenced  on the first day of December,  1998, and on the first day of each March,  June,  September  and  December  thereafter,  and  when  the Loans  are due (whether  by

reason of acceleration or otherwise). The Unused Credit Fee shall be computed on the basis of a year  consisting  of  three  hundred  sixty  (360)  days  but applied  to  the  actual  number  of  days elapsed.

5.          Events of Default.   If any of the following events (each, an "Event of Default") shall  occur,  then  the  Bank  may,  without  further  notice or demand,  accelerate  the Loans and declare them to be, and thereupon the Loans shall become, immediately due and payable (except that the Loans  shall  become  automatically  due and payable  upon  the occurrence  of an event described  in Sections  S(j), (k) and (l) below), and, to the extent  that (a) the Total  Revolver Commitment  Amount,  (b) the Construction  Loan  Commitment  Amount,  and/or (c) any other Loan  proceeds  have  not  yet  been  used  or  fully  drawn  on  by  the  Borrower,  terminate  any obligation  of the  Bank  to  disburse  the  balance  of  same;  and  the  Bank  shall  have  all  rights provided herein or in any of the other Loan Documents or otherwise provided by law to realize on any collateral or security for the Loans:

(a)        The Borrower does not pay the Bank any interest on the Loans within ten (10) days after the date due, whether by reason of acceleration or otherwise, or does not pay or repay  to  the  Bank  any  principal  of  the  Loans  or  any  other  obligation  hereunder  when  due, whether by reason of acceleration or otherwise; or

(b)       The Borrower defaults in the performance or observance of any agreement contained in Section 2(b), 2(c), 2(d), 2(e), 2(0,  2(g), 2(h) or 2(o) hereof and such default has not been cured by the Borrower  within ten (10) days after the occurrence  thereof, or the Borrower defaults in the performance or observance of any other agreement contained in  Section 2 hereof; or

(c)        There shall have occurred any other violation or breach of any covenant, agreement  or condition  contained  herein or in any other Loan Document  which  has not been cured by the Borrower within thirty (30) days after the earlier to occur of the date the Borrower has knowledge thereof and the date the Bank gives the Borrower notice thereof; or

(d)       The  Borrower  does not  pay when due  or prior to the expiration  of the applicable  cure period, if any, any principal or interest on any other Indebtedness  in excess of One Hundred Thousand Dollars ($100,000), or the Borrower defaults in the performance or observance of any other term or condition contained in any agreement or instrument under which such Indebtedness is created, and the holder of such other Indebtedness declares, or may declare, such Indebtedness due prior to its stated maturity because of the Borrower's  default thereunder; or

(e)        There  shall  have  occurred  any  violation  or  breach  of  any  covenant, agreement  or condition  contained in any other agreement  between the Borrower and the Bank which has not been cured by the Borrower prior to the expiration of the applicable cure period, if any; including, without limitation, that certain Continuing Reimbursement Agreement dated May
16, 2013 by and between the Borrower and the Bank, as may be amended, restated, extended, supplemented or otherwise modified from time to time; or

(f)        The  Borrower   does  not  perform  its  obligations   under  any  agreement material to its business, and the other party to such agreement declares, or may declare, such agreement in default; or

(g)       Any   representation   or  warranty   made   herein   or  in  any  other   Loan Document or writing furnished in connection with this Agreement shall be false or misleading in any material respect when made; or

(h)     The Borrower is generally not paying its debts as they become due; or

(i)        With respect to the plans referred to in Section  l(h)  above, or any other similar  plan, a "reportable event" or "prohibited  transaction"  pursuant  to ERISA  has occurred which  results  in  the  imposition   of  material  taxes  or  penalties  against  the  Borrower  or  the termination  of such plans (or trusts related thereto), or the Borrower incurs any material liability to the PBGC in connection with such plans; or

(j)        The Borrower  makes an assignment of a material  part of its assets for the benefit of creditors; or

(k)       The  Borrower  applies  for the appointment  of a trustee  or receiver for a material part of its assets or commences any proceedings relating to the Borrower under any bankruptcy,  reorganization, arrangement,  insolvency,  readjustment  of debt, dissolution  or other liquidation  law of any jurisdiction;  or any such application  is filed, or any such proceedings are commenced,   against   the  Borrower,   and   the  Borrower   indicates   its  approval,   consent   or acquiescence  thereto; or an order is entered appointing  such trustee or receiver, or adjudicating the Borrower bankrupt or insolvent, or approving the petition in any such proceedings,  and such order remains in effect for sixty (60) days; or

(l)        Any order is entered  in any proceedings  against  the Borrower  decreeing the dissolution of the Borrower; or

(m)      Any  material  part  of  the  Borrower's operations  shall  cease,  other  than temporary or seasonal  cessations  which are experienced  by other companies  in the same line of business  and which  would not have a material  adverse  effect on the Borrower's operations  or financial condition or its ability to perform its obligations hereunder; or

(n)       Any final non-appealable judgment which, together with other outstanding judgments  against the Borrower, causes the aggregate of such judgments in excess of confirmed insurance coverage satisfactory to the Bank to exceed Seven Hundred Fifty Thousand Dollars ($750,000),  shall be rendered against the Borrower; or

(o)       Any  event  of  default  occurs  under  any  other  agreement  to  which  the Borrower and the Bank are parties or under any document or instrument running to the benefit of the Bank from the Borrower.

The above  recitation  of Events  of Default  shall  be interpreted  in all respects  in favor of the Bank.   To the extent  any cure-of-default  period is provided above, the Bank may

nevertheless,  at its option  pending  completion  of such cure, suspend  its obligation  to consider further disbursement  of the Loans hereunder.

6.    General.

(a)        Reasonable Actions.  The Bank agrees that in taking any action which it is permitted  or  empowered  to  take  under  this  Agreement,  it  will  act  reasonably  under  what  it believes are the facts and circumstances existing at such time.

(b)       Delay.   No delay, omission  or forbearance  on the part of the Bank in the exercise  of any power  or right shall operate as a waiver thereof,  nor shall any single or partial delay,  omission  or forbearance  in the exercise  of any other  power or right.   The rights and/or remedies of the Bank herein provided are cumulative, shall be interpreted in all respects in favor of the Bank and are not exclusive of any other rights and/or remedies provided by law.

(c)       Notice.   Except  as otherwise  expressly  provided  in this Agreement,  any notice hereunder  shall be in writing and shall be deemed to be given when personally delivered or when sent by certified mail, postage prepaid, and addressed to the parties at their addresses set forth below:

Bank:     U.S. Bank National Association
425 Walnut Street
Cincinnati, Ohio  45202
Attention:     Marshall Stuart
Vice President

With a copy to:     Jeffrey S. Schloemer, Esq.
Taft, Stettinius & Hollister LLP
425 Walnut Street, Suite 1800
Cincinnati, Ohio  45202

Borrower:     Frisch's Restaurants, Inc.
2800 Gilbert Avenue
Cincinnati, Ohio 45206
Attention:     Mr. Mark Lanning
Vice President-Finance

With copies to:     Craig F. Maier, President
Frisch's  Restaurants,  Inc.
2800 Gilbert Avenue
Cincinnati, Ohio  45206 and
Donald A. Bodner
Frisch's  Restaurants,  Inc.
2800 Gilbert Avenue
Cincinnati, Ohio  45206

The  Borrower  or the Bank  may,  by written notice to the other  as provided  herein,  designate another address for purposes hereunder.

(d)       Expenses;  Indemnity.    The  Borrower  shall  pay  all  reasonable  out-of- pocket expenses incurred by the Bank, including the reasonable fees, charges and disbursements of outside-counsel  for the Bank (determined on the basis of such counsel's  generally applicable rates, which may be higher than the rates such counsel charges the Bank in certain matters) and/ or the allocated costs of in-house counsel incurred from time to time by the Bank in entering into and   closing   this   Agreement   and   preparing   the   documentation   in   connection   herewith, administering   the  obligations  of  the  Borrower  hereunder  or  under  any  of  the  other  Loan Documents,  and enforcing the obligations  of the Borrower hereunder or under any of the other Loan  Documents,  and the Borrower  agrees to pay the Bank upon demand for the same.   The Borrower agrees to defend, indemnify and hold the Bank harmless from any liability, obligation, cost,  damage  or  expense  (including  reasonable  attorneys'  fees  and  legal  expenses)  for  taxes (other  than  income  taxes),  fees  or  third  party  claims  which  may  arise  or  be  related  to  the execution,  delivery  or  performance  of  this  Agreement  or any  of  the other  Loan  Documents, except in the case of negligence or willful misconduct on the part of the Bank.   The Borrower further  agrees  to indemnify  and hold harmless  the Bank from any loss or expense which the Bank  may  sustain  or incur  as a consequence  of default  by the  Borrower  in payment of any principal  of or interest  on the Loans,  including,  without  limitation,  any such loss or expense arising from interest or fees payable by the Bank to lenders of funds obtained by it in order to maintain interest rates on the Cost of Funds Loans.

(e)       Survival.  All covenants and agreements of the Borrower made herein or otherwise  in connection  with the transactions  contemplated  hereby shall survive the execution and delivery of this Agreement and the other Loan Documents, and shall remain in effect so long as any obligations of the Borrower are outstanding hereunder or under any of the other Loan Documents.

(f)        Severability.  Any provision of this Agreement or any of the other Loan Documents which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be  ineffective   to  the  extent  of  such  prohibition  of  enforceability   without  invalidating  the remaining  portions  hereof  or affecting  the validity  or enforceability  of such provision  in any other jurisdiction.

(g)       Law.  IMPORTANT:   The Loans shall be deemed made in Ohio and this Agreement and all other Loan Documents, and all of the rights and obligations of the Borrower and the Bank hereunder and thereunder, shall in all respects be governed by and construed in accordance with the laws of the State of Ohio, including all matters of construction, validity and performance.  Without limitation on the ability of the Bank to initiate and prosecute any action or proceeding in any applicable jurisdiction related to loan repayment, the Borrower and the Bank agree that any action or proceeding commenced  by or on behalf of the parties arising out of or relating to the Loans and/or this Agreement and/or any of the other Loan Documents shall be commenced  and  maintained  exclusively  in  the  District  Court  of  the  United  States  for  the Southern  District  of Ohio, or any other  court of applicable  jurisdiction  located  in Cincinnati, Ohio.   The Borrower and the Bank also agree that a summons and complaint  commencing  an action or proceeding  in any such Ohio courts by or on behalf of such parties shall be properly

served and shall confer personal jurisdiction on a party to which said party consents, if (i) served personally  or by certified  mail to the other party at any of its addresses  noted herein, or (ii) as otherwise provided under the laws of the State of Ohio.  The interest rates and all other terms of the  Loans  negotiated  with  the  Borrower  are,  in part,  related  to  the  aforesaid  provisions  on jurisdiction,  which the Bank deems a vital part of this loan arrangement.

(h)        Successors.    This  Agreement  shall  be  binding  upon  and  inure  to  the benefit of the Borrower and the Bank and their respective successors and assigns.  The Borrower shall not assign its rights or delegate its duties hereunder without the prior written consent of the Bank.

(i)        Amendment  and Restatement.   This Agreement  amends  and restates the Prior  Loan Agreement  and amounts  outstanding  under the Prior Loan Agreement  shall not be deemed canceled  or satisfied, but shall be evidenced by this Agreement  instead of by the Prior Loan Agreement.

G)       Amendment.      Except   as   otherwise   expressly   provided   herein,   this Agreement  may not be modified  or amended except in writing signed by authorized  officers of the Bank and the Borrower.

[SIGNATURES  ON FOLLOWING PAGE]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly effective as of the date first set forth above.

BANK NATIONAL ASSOCIATION     FRISCH'S RESTAURANTS, INC.

		
	By: 
	/s/ Marshall Stuart       By:     /s/ Mark R. Lanning               Marshall Stuart            Mark Lanning

Vice President            Vice President-Finance

LIST OF EXHIBITS

A-     Financial Information and Reports
B-     Actions [REDACTED]
C-     Permitted Liens
D-     Financial Covenants
E-     Permitted Indebtedness
F-     Construction  Period Construction Note
G-1-     Form of Term Note (Cost of Funds Rate Term Loan) G-2-     Form of Term Note (Variable Rate Term Loan)
H-     Revolving Note

EXHIBIT A

FINANCIAL  INFORMATION AND REPORTS

1.     Form 10-K annual report for the period ended May 28, 2013.

2.     Projections for the Borrower through the year ending June, 2014.

EXHIBIT B

Exhibit B has been redacted to protect the confidentiality surrounding the legal matters discussed.  Please refer to NOTE G - LITIGATION AND CONTINGENCIES, as well as Part II - OTHER INFORMATION, ITEM 1 - LEGAL PROCEEDINGS section in the 10-Q for additional details regarding legal matters.

EXHIBIT C PERMITTED LIENS

All obligations of the Borrower incurred in connection with any existing or future lease transactions capitalized or required to be capitalized on the Borrower's books.

EXHIBIT D 
FINANCIAL COVENANTS

The Borrower agrees that it shall:

(a)     Ratio  of  Senior  Bank  Debt  to Adjusted  EBITDA.    Not  permit  the  ratio  of the
Borrower 's Senior Bank Debt to Adjusted EBITDA to exceed 2.00 to 1.0 at any time.

"Senior   Bank   Debt"  for   purposes   hereof   shall   mean  the  sum   of  all  of  the  Borrower 's indebtedness   for  borrowed   money  that  in  accordance   with  generally   accepted   accounting principles  would  be considered  as a liability,  and  all obligations  of the  Borrower  incurred  in connection  with any existing or future lease transactions capitalized  or required to be capitalized on the Borrower 's books.

"Adjusted  EBITDA"  for  purposes  hereof  shall  mean  the  Borrower's  consolidated   earnings (before interest, taxes, depreciation  and amortization);  plus losses on disposition  of assets (net of abandonment  losses);  less gains on disposition  of assets,  net of abandonment  losses; less cash and  non-cash  unusual  gains;  plus  cash  and  non-cash  unusual  losses  (including  impairment losses),   all  calculated   in  accordance   with  generally   acceptable   accounting   principles   and consistently applied in accordance  with past practices on a rolling four (4) quarter basis.

(b)        Minimum   EBITDA.     Not  permit  the  Borrower's  Adjusted  EBITDA  for  the trailing twelve  (12) month period to be less than $14,000,000.00, measured  as of the date each fiscal quarter end of the Borrower.

EXHIBIT E
 PERMITTED INDEBTEDNESS
[TO BE CONFIRMED/UPDATED BY BANK AND BORROWER]

Indebtedness to US Bank  NA

	
									
	 
	 
	 
	 
	Balance            October 31, 2013

	Revolving Loan (up to $11,000,000 may be borrowed)
	 
	 
	 
	$—

	 
	 
	 
	 
	 

	Stock Repurchase Term Loan
	 
	 
	 
	$
	705,744.10
	

	 
	 
	 
	 
	 

	Construction Loan Credit Facility
	 
	 
	 
	 

	 
	Construction Phase up to $5,000,000 more may be borrowed)
	 
	$
	—
	

	 

	 
	Term Loans
	 
	$
	11,449,002.65
	

	 

	 
	 
	 
	 
	$
	11,449,002.65
	

	Total
	 
	 
	 
	$
	12,154,747
	

Capitalized Leases

All obligations of the Borrower incurred  in connection with any existing  or future  lease transactions capitalized or required  to be capitalized on the Borrower's books

Contingent liability  as assignor/guarantor of the following leases:

	
					
	Location
	Annual Straight-lined Rent
	Assignee
	Remaining Lease Term

	 
	 
	 
	 

	Covington, KY (old Hotel property)
	48,072
	

	Remington Hotel Corporation
	4/30/2020

	Colerain, OH (old Golden Corral)
	59,338
	

	Golden Corral Corporation
	1/31/2022

	Middletown, OH (old Golden Corral)
	112,914
	

	Golden Corral Corporation
	4/30/2022

	Lima, OH (old Golden Corral)
	75,940
	

	Golden Corral Corporation
	1/31/2024

	Louisville, KY (Hikes Point (old Golden Corral)
	105,639
	

	Golden Corral Corporation
	9/30/2020

	Louisville, KY Dixie Highway (old Golden Corral)
	106,821
	

	Golden Corral Corporation
	3/31/2025

	Uniontown, PA (old Golden Corral)
	79,886
	

	Golden Corral Corporation
	5/31/2025

	Morgantown, WV (old Golden Corral)
	78,264
	

	Golden Corral Corporation
	10/16/2025

EXHIBIT F PROMISSORY NOTE

$5,000,000.00                                                                                                              Cincinnati, Ohio
October 31, 2013

FRISCH'S RESTAURANTS,  INC., an Ohio corporation  (the "Borrower"),  for value  received,  hereby  promises  to  pay  to  the  order  of  U.S.  BANK  NATIONAL ASSOCIATION, a national banking association  formerly known as Firstar Bank, N.A. and Star Bank, National  Association  (the "Bank"), or it successors or assigns, on or before October 31,
2016,  the principal  sum  of Five  Million  and 00/1 00 Dollars  ($5,000,000.00), or such portion thereof  as may  be outstanding  from  time to time, together  with  interest  thereon  as hereinafter provided.

This is the Construction  Note referred to in, was executed and delivered pursuant to, and  evidences  indebtedness  of the Borrower  incurred  under,  that certain  Loan  Agreement dated as of October  31, 2013 between the Borrower and the Bank, as the same has been and/or may  be amended,  restated,  supplemented,  renewed,  or otherwise  modified  and  in effect  from time to time (the "Loan Agreement"), to which reference is hereby made for a statement of the terms and conditions  under which the Construction  Loans evidenced  hereby were made and are to be repaid  and  for  a statement  of the Bank's  remedies  upon  the occurrence  of an Event of Default.   Capitalized  terms  used herein,  but not otherwise  specifically  defined,  shall have the meanings ascribed to such terms in the Loan Agreement.

The Borrower further promises to pay interest on the outstanding unpaid principal amount hereof from the date hereof until payment in full at the rate or rates from time to time applicable  to the Construction  Loans  as determined  in accordance  with the Loan  Agreement; provided, however, that upon the occurrence and during the continuance of an Event of Default, the Borrower  shall pay interest  on the outstanding  principal  balance of this Note at the rate of interest applicable  following the occurrence of an Event of Default as determined  in accordance with the Loan Agreement.

Interest on this Note shall be payable, at the times and from the dates specified in the  Loan  Agreement,   on  the  date  of  any  prepayment  hereof,  at  maturity,  whether  due  by acceleration  or otherwise, and as otherwise provided in the Loan Agreement.   From and after the date when the principal balance hereof becomes due and payable, whether by acceleration or otherwise,  interest  hereon shall be payable on demand.   In no contingency  or event whatsoever shall  interest  charged  hereunder,  however  such  interest  may  be  characterized   or  computed, exceed the highest rate permissible  under any law which a court of competent jurisdiction  shall, in a final determination,  deem applicable  hereto.   In the event that such a court determines  that the Bank  has received  interest  hereunder  in excess  of the highest  rate applicable  hereto, such excess shall be applied in accordance with the terms of the Loan Agreement.

The indebtedness  evidenced  by this Note is secured  pursuant to the terms of the
Loan Documents.

The  Borrower  hereby  waives  demand,  presentment,  and  protest  and  notice  of demand, presentment, protest, and nonpayment.

The Borrower further agrees, subject only to any limitation  imposed by applicable law, to pay all expenses, including attorneys' fees and legal expenses, incurred by the Bank in endeavoring  to collect any amounts payable hereunder which are not paid when due, whether by acceleration  or otherwise.

IMPORTANT:  This Note shall be deemed made in Ohio and shall in all respects be governed  by and construed  in accordance  with the laws of the State of Ohio, including  all matters of construction,  validity and performance.   Without limitation on the ability of the Bank to initiate and prosecute any action or proceeding in any applicable jurisdiction related to loan repayment,  the Borrower and the Bank agree that any action or proceeding  commenced  by or on behalf of the parties arising out of or relating to this Note shall be commenced  and maintained exclusively  in the District  Court of the United States for the Southern  District  of Ohio, or any other court of applicable  jurisdiction  located  in Cincinnati,  Ohio.   The Borrower  and the Bank also agree that a summons and complaint commencing an action or proceeding in any such Ohio courts  by  or  on  behalf  of  such  parties  shall  be  properly  served  and  shall  confer  personal jurisdiction  on a party to which said party consents, if (a) served personally  or by certified mail to the other party at any of its addresses noted herein, or (b) as otherwise provided under the laws of the  State  of Ohio.   The  interest  rates and all other  terms  of this Note  negotiated  with the Borrower are, in part, related to the aforesaid provisions on jurisdiction,  which the Bank deems a vital part of this loan arrangement.

[remainder of page intentionally left blank}

Presentment for  payment,  notice  of  dishonor,  protest  and  notice  of  protest  are hereby waived.

FRISCH'S RESTAURANTS, INC.

By:     _
Mark Lanning, Vice President-Finance
Address:  2800 Gilbert Avenue
Cincinnati, Ohio  45206

EXHIBIT G-1

COST OF FUNDS RATE TERM LOAN PROMISSORY NOTE

$          Cincinnati, Ohio
               1,         

FRISCH'S  RESTAURANTS, INC.,  an Ohio corporation  (the "Borrower"),  for value  received,  hereby  promises  to  pay  to  the  order  of  U.S.  BANK  NATIONAL ASSOCIATION,  a national  banking association  formerly  known as Firstar Bank, N.A. and Star Bank,   National    Association    (the   "Bank"),   or   it   successors   or   assigns,   on   or   before                     1,           (the "Maturity  
Date"),  the principal  sum  of                    Dollars ($               ), together with interest thereon as hereinafter provided.

This  Note  is a "Term  Note"  as described  in and  evidences  a "Cost  of Funds Rate  Term  Loan"  made  under  that  certain  Loan  Agreement  dated  as  of  October  31,  2013 between the Borrower and the Bank, as the same has been and/or may be amended, restated, supplemented,  renewed, or otherwise modified and in effect from time to time (the "Loan Agreement"),  and is subject  to the terms and conditions  thereof, including,  without limitation, the terms thereof providing for acceleration of maturity of such Cost of Funds Rate Term Loan. If any term or condition of this Note conflicts with the express terms or conditions of the Loan Agreement,  the terms and conditions  of the Loan Agreement  shall control.   Terms used herein shall have the same meanings as in the Loan Agreement.

The outstanding  principal  balance of this Note shall bear interest at a per annum rate equal to                     percent (   _%). Interest on this Note shall be computed on the basis of a year  consisting  of three hundred  sixty  (360)  days  but applied  to the actual  number  of days elapsed.

The Borrower shall make monthly payments of principal and interest on this Note in  the  amount  of                                                  Dollars  ($                  ,  with  each  such  payment being  applied  first  to accrued  interest  and  then  to  principal,  commencing  on  the first  day  of                                          ,     and on the first day of each month thereafter through and including the Maturity  Date, at which  time the outstanding  principal  balance of and all interest on this Note shall be due and payable in full.

At the option of the Bank, (a) prior to acceleration  of this Note, in the event that any interest  on or principal  of this Note remains  unpaid  past thirty  (30) days of the date due, and/or (b) upon the occurrence  of any other Event of Default under the Loan Agreement or upon the acceleration  of this Note, interest (computed  and adjusted in the same manner, and with the same effect,  as interest on this Note prior to maturity)  on the outstanding  balance of this Note shall  be payable  on demand  at the rate that would otherwise  be in effect for such Loans from time to time as set forth in the Loan 

Agreement  plus an additional three percent (3%) per annum up to any maximum  rate permitted by law, in all cases until paid and whether before or after the

entry of any judgment  thereon.   In addition,  in the event that the Borrower should fail to make any payment hereunder  within ten (10) days of the date due, the Borrower shall pay the Bank a fee in an amount of up to five percent (5%) of the amount of such payment,  but in no event less than Fifty Dollars  ($50.00),  which fee shall be immediately  due and payable  without  notice or demand.

All payments of principal and interest hereunder shall be made in immediately available funds to the Bank at 425 Walnut Street, Location 9150, Cincinnati,  Ohio  45202, or at such  other  place  as may  be designated  by the Bank to the Borrower  in writing.   The Bank is authorized  by the Borrower to enter from time to time the balance of this Note and all payments and prepayments  thereon on the reverse of this Note or in the Bank's  regularly  maintained  data processing   records,  and  the  aggregate  unpaid  amount  set  forth  thereon  or  therein  shall  be presumptive  evidence of the amount owing to the Bank and unpaid on this Note.

[This  Note  may  not  be  prepaid  in whole  or  in  part  except  upon  (i)  written notice  to  the  Bank  not  less  than  thirty  (30)  days  prior  to  the  date  of prepayment (which notice  shall  specify  the date  and amount of prepayment), (ii)  the Bank  granting its consent to such  prepayment, which  consent  the Bank  may  grant  or withhold in its sole  discretion, (iii)  payment to  the  Bank  of a "Prepayment Fee"  and  other  amounts as  specified in and calculated in accordance with  the terms  of the Loan  Agreement, and  (iv) compliance with the other  terms and  conditions of the Loan Agreement.

The   per  annum   rate  of  this  Note  includes   a  premium  of         %  over  the otherwise applicable Cost of Funds-Based Rate  so that the Borrower may  prepay  this Note in whole  or in part  at any  time without  incurring a "Prepayment Fee" as specified in and calculated in accordance with the terms of the Loan Agreement.]

IMPORTANT:  This Note shall be deemed made in Ohio and shall in all respects be governed  by and construed  in accordance  with the laws of the State of Ohio,  including  all matters of construction,  validity and performance.   Without limitation on the ability of the Bank to initiate and prosecute any action or proceeding in any applicable jurisdiction related to loan repayment,  the Borrower and the Bank agree that any action or proceeding commenced  by or on behalf of the parties  arising out of or relating to this Note shall be commenced  and maintained exclusively  in the District  Court of the United  States for the Southern  District  of Ohio, or any other court of applicable  jurisdiction  located  in Cincinnati,  Ohio.   The Borrower  and the Bank also agree that a summons and complaint commencing an action or proceeding  in any such Ohio courts  by  or  on  behalf  of  such  parties  shall  be  properly  served  and  shall  confer  personal jurisdiction  on a party to which said party consents, if (a) served personally or by certified mail to the other party at any of its addresses noted herein, or (b) as otherwise provided under the laws of the  State  of Ohio.   The  interest  rates and all  other terms  of this Note  negotiated  with  the Borrower are, in part, related to the aforesaid provisions on jurisdiction,  which the Bank deems a vital part of this loan arrangement.

Presentment  for  payment,  notice of dishonor,  protest and  notice of  protest are hereby waived.

FRISCH'S RESTAURANTS,  INC.

By:     
Title:              _ Address:     2800 Gilbert Avenue
Cincinnati, Ohio  45206

EXHIBIT G-2

VARIABLE RATE TERM LOAN PROMISSORY NOTE

$         Cincinnati, Ohio
     1,             

FRISCH'S  RESTAURANTS, INC.,  an  Ohio  corporation (the  "Borrower"),  for value    received,    hereby    promises   to   pay    to   the    order    of   U.S.    BANK    NATIONAL ASSOCIATION, a national  banking  association formerly  known  as Firstar  Bank,  N.A.  and Star Bank,   National   Association   (the   "Bank"),   or   it   successors  or   assigns,  on   or   before
         1,              (the     "Maturity     Date"),    ·  the     principal    sum     of
      Dollars ($     , together with  interest thereon  as hereinafter provided.

This  is a Term  Note  referred  to in,  was executed  and  delivered pursuant  to, and evidences a  Variable Rate  Term  Loan  made  under,  that  certain  Loan  Agreement dated  as  of October   31,  2013  between the  Borrower and  the  Bank,  as  the  same  has  been  and/or  may  be amended, restated, supplemented, renewed,  or  otherwise modified   and  in  effect  from  time  to time  (the "Loan  Agreement"),  to which  reference is hereby  made  for a statement of the terms and conditions under  which  the Variable Rate Term  Loan evidenced hereby  was made  and is to be repaid  and for a statement of the Bank's remedies upon the occurrence of an Event of Default. Capitalized terms  used  herein,  but  not  otherwise specifically defined,  shall  have  the  meanings ascribed to such terms in the Loan Agreement.

The Borrower further  promises to pay interest  on the outstanding unpaid  principal amount  hereof  from  the  date  hereof  until  payment in full at the rate  or rates  from  time  to time applicable to a Variable Rate Term  Loan as determined in accordance with the Loan  Agreement; provided, however, that upon  the occurrence and during  the continuance of an Event  of Default, the  Borrower shall  pay  interest  on  the outstanding principal  balance  of this  Note  at the rate  of interest  applicable following the occurrence of an Event  of Default  as determined in accordance with the Loan Agreement.

Interest  on this Note shall  be payable, at the times  and from  the dates specified in the  Loan   Agreement,  on  the  date  of  any  prepayment  hereof,   at  maturity,  whether   due  by acceleration or otherwise, and as otherwise provided  in the Loan  Agreement for a Variable Rate Term   Loan.     From  and  after  the  date  when  the  principal   balance   hereof   becomes due  and payable, whether  by acceleration or otherwise, interest  hereon  shall be payable  on demand.   In no contingency or event  whatsoever shall  interest  charged  hereunder, however such  interest  may be characterized or computed, exceed  the highest  rate  permissible under  any  law which  a court  of competent jurisdiction shall,  in a final  determination, deem  applicable hereto.   In the event  that such  a court  determines that  the  Bank  has  received  interest  hereunder in excess  of the  highest rate  applicable hereto,  such  excess  shall  be applied  in accordance with  the  terms  of  the  Loan Agreement.

The  principal   of  this  Note  shall  be  payable  in    (    )
installments     of     Dollars     ($     each,
commencing  on  the first  day of        ,    and on the first  day  of each  month

thereafter  through  and  including  the  Maturity  Date,  at  which  time  the  outstanding  principal balance of this Note shall be due and payable in full.

The indebtedness  evidenced  by this Note is secured pursuant  to the terms of the
Loan Documents.

The  Borrower  hereby  waives  demand,  presentment,  and  protest  and  notice  of demand, presentment,  protest, and nonpayment.

The Borrower further agrees, subject only to any limitation imposed by applicable law, to pay all expenses,  including  attorneys' fees and legal expenses,  incurred  by the Bank in endeavoring  to collect any amounts payable hereunder which are not paid when due, whether by acceleration  or otherwise.

IMPORTANT:  This Note shall be deemed made in Ohio and shall in all respects be governed  by and  construed  in accordance  with the laws of the State of Ohio, including  all matters of construction,  validity and performance.   Without limitation on the ability of the Bank to initiate and prosecute any action or proceeding in any applicable jurisdiction related to loan repayment, the Borrower and the Bank agree that any action or proceeding commenced  by or on behalf of the parties arising out of or relating to this Note shall be commenced  and maintained exclusively  in the District  Court of the United States for the Southern  District  of Ohio, or any other court of applicable  jurisdiction  located in Cincinnati,  Ohio.   The Borrower  and the Bank also agree that a summons and complaint commencing an action or proceeding  in any such Ohio courts  by  or  on  behalf  of  such  parties  shall  be  properly  served  and  shall  confer  personal jurisdiction  on a party to which said party consents, if (a) served personally or by certified mail to the other party at any of its addresses noted herein, or (b) as otherwise provided under the laws of the State  of Ohio.   The  interest  rates  and all other  terms  of this  Note  negotiated  with  the Borrower are, in part, related to the aforesaid provisions on jurisdiction,  which the Bank deems a vital part of this loan arrangement.

Presentment  for  payment,  notice  of  dishonor,  protest  and  notice  of  protest  are hereby waived.

FRISCH'S RESTAURANTS, INC.

By:          _ Title:----------------
Address:     2800 Gilbert Avenue
Cincinnati, Ohio  45206

EXHIBIT H

REVOLVING  CREDIT PROMISSORY  NOTE

$11,000,000.00     Cincinnati, Ohio
October 31, 2013

FRISCH'S RESTAURANTS, INC., an Ohio corporation  (the "Borrower"),  for value  received,  hereby  promises  to  pay  to  the  order  of  U.S.  BANK  NATIONAL ASSOCIATION,  a national  banking association  formerly known as Firstar Bank, N.A. and Star Bank, National  Association  (the "Bank"), or it successors or assigns, on or before October 31, 2016,  the  principal  sum  of  ELEVEN  MILLION  DOLLARS  ($11,000,000), or  such  portion
thereof  as may  be outstanding  from time to time,  together  with interest  thereon  as hereinafter provided.

This is the Revolving Note referred to in, was executed and delivered pursuant to, and evidences  indebtedness  of the Borrower incurred under, that certain Loan Agreement  dated as of  October  31, 2013  between  the Borrower  and  the  Bank,  as  the same  may  be amended, restated,  supplemented,  renewed,  or  otherwise  modified  and  in effect  from  time  to time  (the "Loan  Agreement"),  to  which  reference  is  hereby  made  for  a  statement  of  the  terms  and conditions  under which the Revolving Loan evidenced hereby was made and is to be repaid and for a statement  of the Bank's  remedies upon the occurrence of an Event of Default.   Capitalized terms  used herein,  but not otherwise  specifically  defined, shall have the meanings  ascribed to such terms in the Loan Agreement.

The Borrower further promises to pay interest on the outstanding  unpaid principal amount  hereof from the date hereof  until payment  in full at the rate or rates from time to time applicable  to  the  Revolving   Loan  as  determined  in  accordance   with  the  Loan  Agreement; provided,  however,  that upon the occurrence and during the continuance  of an Event of Default, the Borrower shall pay interest on the outstanding principal balance of this Revolving Note at the rate  of  interest  applicable  following  the occurrence  of  an Event  of  Default  as determined  in accordance  with the Loan Agreement.

Interest on this Revolving  Note shall be payable, at the times and from the dates specified in the Loan Agreement, on the date of any prepayment  hereof, at maturity, whether due by acceleration  or otherwise,  and as otherwise provided in the Loan Agreement.   From and after the date when the principal  balance hereof becomes due and payable, whether by acceleration  or otherwise,  interest hereon  shall be payable on demand.   In no contingency  or event whatsoever shall  interest  charged  hereunder,  however  such  interest  may  be  characterized   or  computed, exceed the highest rate permissible  under any law which a court of competent jurisdiction  shall, in a final determination,  deem applicable  hereto.   In the event that such a court determines  that the Bank  has received  interest  hereunder  in excess  of the highest  rate applicable  hereto, such excess shall be applied in accordance with the terms of the Loan Agreement.

The  indebtedness  evidenced  by this Revolving  Note  is secured  pursuant  to the terms of the Loan Documents.

The  Borrower  hereby  waives  demand,  presentment,  and  protest  and  notice  of demand, presentment,  protest, and nonpayment.

The Borrower further agrees, subject only to any limitation imposed by applicable law, to pay all expenses, including attorneys'  fees and legal expenses, incurred by the Bank in endeavoring  to collect any amounts payable hereunder which are not paid when due, whether by acceleration  or otherwise.

IMPORTANT:   This Revolving Note shall be deemed made in Ohio and shall in all  respects  be governed  by and  construed  in accordance  with  the  laws  of the  State  of Ohio, including all matters of construction,  validity and performance.   Without limitation on the ability of  the  Bank  to  initiate  and  prosecute  any  action  or  proceeding  in any  applicable  jurisdiction related  to  loan  repayment,  the  Borrower  and  the  Bank  agree  that  any  action  or  proceeding commenced  by or on behalf of the parties arising out of or relating to this Revolving  Note shall be commenced  and  maintained  exclusively  in the  District  Court  of the  United  States  for  the Southern  District  of Ohio,  or any  other  court  of applicable  jurisdiction  located  in Cincinnati, Ohio.   The Borrower  and the Bank also agree that a summons  and complaint  commencing  an action  or proceeding  in any such Ohio courts  by or on behalf of such parties  shall be properly served and shall confer personal jurisdiction on a party to which said party consents, if (a) served personally  or by certified  mail to the other party at any of its addresses  noted herein, or (b) as otherwise  provided  under the laws of the State of Ohio.  The interest rates and all other terms of this Revolving Note negotiated with the Borrower are, in part, related to the aforesaid provisions on jurisdiction,  which the Bank deems a vital part of this loan arrangement.

Presentment  for  payment,  notice  of  dishonor,  protest  and  notice  of  protest  are hereby waived.

FRISCH'S RESTAURANTS,  INC.

By:          
Mark Lanning, Vice President Finance
Address: 2800 Gilbert Avenue
Cincinnati, Ohio  45206

PROMISSORY NOTE

$5,000,000.00     Cincinnati, Ohio
October 31,2013

FRISCH'S RESTAURANTS,  INC., an Ohio corporation  (the "Borrower"),  for value  received,  hereby  promises  to  pay to  the  order  of  U.S.  BANK  NATIONAL ASSOCIATION,  a national banking association formerly known as Firstar Bank, N.A. and Star Bank, National Association  (the "Bank"), or it successors or assigns,  on or before October 31,
2016,  the principal  sum  of Five  Million  and 00/100  Dollars  ($5,000,000.00), or such  portion
thereof  as may be outstanding  from time to time, together  with interest  thereon  as hereinafter provided.

This is the Construction  Note referred to in, was executed and delivered pursuant to, and evidences  indebtedness  of the Borrower  incurred  under,  that  certain  Loan  Agreement dated as of October 31, 2013 between the Borrower and the Bank, as the same has been and/or may be amended,  restated,  supplemented,  renewed,  or otherwise  modified  and  in effect from time to time (the "Loan Agreement"), to which reference is hereby made for a statement of the terms and conditions  under which the Construction  Loans evidenced  hereby were made and are to be repaid  and  for  a statement  of the Bank's  remedies  upon  the occurrence  of an Event of Default.   Capitalized  terms  used herein,  but not otherwise  specifically  defined,  shall have the meanings ascribed to such terms in the Loan Agreement.

The Borrower further promises to pay interest on the outstanding  unpaid principal amount hereof from the date hereof until payment in full at the rate or rates from time to time applicable  to the  Construction  Loans as determined  in accordance  with the  Loan  Agreement; provided, however, that upon the occurrence and during the continuance  of an Event of Default, the Borrower shall pay interest  on the outstanding  principal  balance of this Note at the rate of interest applicable  following the occurrence  of an Event of Default as determined  in accordance with the Loan Agreement.

Interest on this Note shall be payable, at the times and from the dates specified in the  Loan  Agreement,   on  the  date  of  any  prepayment  hereof,  at  maturity,  whether  due  by acceleration or otherwise, and as otherwise provided in the Loan Agreement.   From and after the date when the principal balance hereof becomes due and payable, whether by acceleration or otherwise, interest hereon shall be payable on demand.   In no contingency  or event whatsoever shall  interest  charged  hereunder,  however  such  interest  may  be  characterized   or  computed, exceed the highest rate permissible  under any law which a court of competent jurisdiction  shall, in a final determination,  deem applicable  hereto.   In the event that such a court determines  that the Bank has received  interest  hereunder  in excess of the highest  rate applicable  hereto, such excess shall be applied in accordance with the terms of the Loan Agreement.

The indebtedness  evidenced  by this Note is secured  pursuant to the terms of the
Loan Documents.

The  Borrower  hereby  waives  demand,  presentment,  and  protest  and  notice  of demand, presentment, protest, and nonpayment.

The Borrower further agrees, subject only to any limitation imposed by applicable law, to pay all expenses,  including attorneys'  fees and legal expenses,  incurred  by the Bank in endeavoring to collect any amounts payable hereunder which are not paid when due, whether by acceleration or otherwise.

IMPORTANT:   This Note shall be deemed made in Ohio and shall in all respects be governed  by and construed  in accordance  with the laws of the State of Ohio, including all matters of construction, validity and performance.  Without limitation on the ability of the Bank to initiate and prosecute any action or proceeding in any applicable jurisdiction  related to loan repayment, the Borrower and the Bank agree that any action or proceeding commenced by or on behalf of the parties arising out of or relating to this Note shall be commenced  and maintained exclusively in the District Court of the United States for the Southern  District of Ohio, or any other court of applicable  jurisdiction  located in Cincinnati, Ohio.   The Borrower and the Bank also agree that a summons and complaint commencing an action or proceeding in any such Ohio courts  by  or  on  behalf  of  such  parties  shall  be  properly  served  and  shall  confer  personal jurisdiction on a party to which said party consents, if (a) served personally or by certified mail to the other party at any of its addresses noted herein, or (b) as otherwise provided under the laws of the State of Ohio.   The interest  rates and all other terms of this Note  negotiated  with the Borrower are, in part, related to the aforesaid provisions on jurisdiction, which the Bank deems a vital part of this loan arrangement.

[remainder of page intentionally left blank]

Presentment for  payment,  notice  of  dishonor,  protest  and  notice  of  protest  are hereby waived.

FRISCH'S RESTAURANTS, INC.

By:     _
Mark Lanning, Vice President-Finance
Address:  2800 Gilbert Avenue
Cincinnati, Ohio  45206

REVOLVING CREDIT PROMISSORY NOTE

$11,000,000.00                                                                                                             Cincinnati, Ohio
October 31,2013

FRISCH'S RESTAURANTS, INC., an Ohio corporation (the "Borrower"), for value  received,  hereby  promises  to  pay to  the  order  of  U.S.  BANK  NATIONAL ASSOCIATION, a national banking association formerly known as Firstar Bank, N.A. and Star Bank, National Association  (the "Bank"), or it successors or assigns, on or before October 31, 2016,  the  principal  sum  of  ELEVEN  MILLION  DOLLARS  ($11,000,000),  or  such  portion thereof as may be outstanding from time to time, together with interest thereon as hereinafter provided.

This is the Revolving Note referred to in, was executed and delivered pursuant to, and evidences indebtedness  of the Borrower incurred under, that certain Loan Agreement dated as of October 31,  2013  between  the Borrower  and the Bank, as the  same  may  be amended, restated, supplemented,  renewed,  or otherwise  modified  and in effect  from  time  to time (the "Loan  Agreement"),  to  which  reference  is  hereby  made  for  a  statement  of  the  terms  and conditions under which the Revolving Loan evidenced hereby was made and is to be repaid and for a statement of the Bank's  remedies upon the occurrence of an Event of Default.  Capitalized terms used herein,  but not otherwise  specifically  defined, shall have the meanings  ascribed to such terms in the Loan Agreement.

The Borrower further promises to pay interest on the outstanding unpaid principal amount hereof from the date hereof until payment in full at the rate or rates from time to time applicable  to  the  Revolving  Loan  as  determined  in  accordance  with  the  Loan  Agreement; provided, however, that upon the occurrence and during the continuance of an Event of Default, the Borrower shall pay interest on the outstanding principal balance of this Revolving Note at the rate of interest applicable following the occurrence of an Event of Default as determined in accordance with the Loan Agreement.

Interest on this Revolving Note shall be payable, at the times and from the dates specified in the Loan Agreement, on the date of any prepayment hereof, at maturity, whether due by acceleration or otherwise, and as otherwise provided in the Loan Agreement.   From and after the date when the principal balance hereof becomes due and payable, whether by acceleration or otherwise, interest hereon 

shall be payable on demand.   In no contingency  or event whatsoever shall  interest  charged  hereunder,  however  such  interest  may  be  characterized  or  computed, exceed the highest rate permissible under any law which a court of competent jurisdiction shall, in a final determination,  deem applicable hereto.   In the event that such a court determines that the Bank has received  interest  hereunder  in excess of the highest  rate applicable  hereto, such excess shall be applied in accordance with the terms of the Loan Agreement.

The indebtedness  evidenced  by this Revolving  Note  is secured  pursuant  to the terms of the Loan Documents.

The  Borrower  hereby  waives  demand,  presentment,  and  protest  and  notice  of demand, presentment, protest, and nonpayment.

The Borrower further agrees, subject only to any limitation imposed by applicable law, to pay all expenses,  including  attorneys'  fees and legal expenses,  incurred  by the Bank in endeavoring  to collect any amounts payable hereunder which are not paid when due, whether by acceleration or otherwise.

IMPORTANT:  This Revolving Note shall be deemed made in Ohio and shall in all respects  be governed  by and  construed  in accordance  with  the  laws  of the State  of Ohio, including all matters of construction,  validity and performance.   Without limitation on the ability of the  Bank  to initiate  and  prosecute  any  action  or  proceeding  in any  applicable  jurisdiction related  to  loan  repayment,  the  Borrower  and  the  Bank  agree  that  any  action  or  proceeding commenced  by or on behalf of the parties arising out of or relating to this Revolving Note shall be commenced  and  maintained  exclusively  in the  District  Court  of the  United  States  for  the Southern  District  of Ohio,  or any  other  court of applicable  jurisdiction  located  in Cincinnati, Ohio.   The Borrower  and the Bank also agree that a summons  and complaint  commencing  an action or proceeding  in any such Ohio courts  by or on behalf of such parties shall be properly served and shall confer personal jurisdiction on a party to which said party consents, if (a) served personally  or by certified  mail to the other party at any of its addresses  noted herein, or (b) as otherwise provided under the laws of the State of Ohio.  The interest rates and all other terms of this Revolving Note negotiated with the Borrower are, in part, related to the aforesaid provisions on jurisdiction, which the Bank deems a vital part of this loan arrangement.

Presentment for  payment,  notice  of  dishonor,  protest  and  notice  of  protest  are hereby waived.

FRISCH'S RESTAURANTS, INC.

By:     _
Mark Lanning, Vice President-Finance
Address:  2800 Gilbert Avenue
Cincinnati, Ohio  45206

CERTIFICATE OF OFFICER OF

FRISCH'S RESTAURANTS, INC.

I, Mark R. Lanning, am the duly elected, qualified, and acting CFO and Vice President of Finance of Frisch's  Restaurants,  Inc., an Ohio corporation (the "Company"), and hereby certify that the following persons are duly elected, qualified, acting, and incumbent officers of the Company and occupy the offices set opposite their names, and that the signatures set opposite their names are the true signatures of said officers:

	
			
	 
	 
	 

	NAME
	OFFICE
	SIGNATURE

	 
	 
	 

	Craig F. Maier
	President
	/s/ Craig F. Maier

	 
	 
	 

	Mark R. Lanning
	CFO Vice President of Finance
	/s/ Mark R. Lanning

	 
	 
	 

	Donald A. Bodner
	Secretary
	/s/ Donald A. Bodner

	 
	 
	 

and I do hereby further certify that:

(a)     The Articles of lncorporation of the Company, including all amendments thereto, that were delivered to U.S. Bank National Association, a national banking association (the "Bank"), as of October 15, 2004 remain in full force and effect, and have not been amended or supplemented, through the date hereof.

(b)       The Code of Regulations of the Company effective October 2, 2006, including all amendments thereto, that was delivered to the Bank on March 15, 2007 remains in full force and effect, and has not been amended or supplemented, through the date hereof.

(c)     The Board of Directors of the Company duly adopted the resolutions set forth at Exhibit A, which is attached hereto, at a meeting duly called and held in accordance with all requirements of law and the Articles of lncorporation and Code of Regulations of the Company, none of which resolutions has been amended or repealed in any respect since adoption, and all of which resolutions remain in full force and effect as of the date hereof.

[Signatures on following page]

2013.
 
IN WITNESS WHEREOF, I have executed this Certificate as of the 31st day of October,

/s/ Mark R. Lanning        
Mark R. Lanning, 
CFO and Vice President of Finance of Frisch's Restaurants, Inc. 

The undersigned, being the duly elected, qualified, and acting Secretary of the Company, does hereby certify that  ark R. Lanning is the duly elected, qualified, acting, and incumbent CFO and Vice President of Finance of the Company, and that his signature set forth above is his true signature.

2013.
 
IN WITNESS WHEREOF, I have executed this certificate as of the 31st day of October,

/s/ Donald A. Bodner        
Donald A. Bodner, 
Secretary of Frisch's Restaurants, Inc. 

13808390.1

EXHIBIT A

See attached

13808390.1

RESOLUTION # 1

RESOLUTIONS OF THE BOARD OF DIRECTORS OF
FRISCH'S  RESTAURANTS, INC.
(the "Company") ADOPTED OCTOBER 2, 2013

"RESOLVED, that the Chief Executive and Chief Financial Officer of the Company be, and they hereby are, authorized and directed to proceed with negotiations for securing credit arrangements consisting of up to $30,000,000  Senior Unsecured Credit, with U.S. Bank National Association, a national banking association (the "Bank").  The terms and conditions of such Senior Unsecured Credit  shall  be  substantially  the  same  as  described  in the  Bank's   expression  of  interest  of September 24, 2013, presented to the members of the Company's  Board of Directors.

FURTHER  RESOLVED,   that  each  and  every  officer  of  the  Company  be,  and  hereby  is, authorized, empowered, and directed to execute and deliver, on behalf of the Company, all notes, guaranties,  acknowledgments,  agreements,  certificates,  instruments,  and any other documents, and  to  do  all  other  things,  on  behalf  of  the  Company  that  he  or  she  deems  advisable  to consummate  and  carry  out  the  transactions  contemplated   by,  and /or  to  be  completed   in connection with, the Senior Unsecured Credit (collectively, the "Transactions"), and with the signature of only one such officer being required.  The execution and delivery by any one of such officers of any document or amendment to the Transactions or any other note, guaranty, acknowledgment, agreement, certificate, instrument, or document shall be deemed conclusive evidence that such  officer  deems  all of the terms and provisions  thereof  to be advisable and proper.

FURTHER  RESOLVED,   that  each  and  every  officer  of  the  Company   be,  and  hereby  is, authorized to take such action from time to time on behalf of the Company  as he or she may deem necessary,  advisable,  or proper in order to carry out and perform the obligations  of the Company in connection with the Transactions, and to fully consummate the Transactions contemplated by these resolutions.

FURTHER  RESOLVED,   that  any  act  of  any  officer  of  the  Company  and  of  any  person designated  or authorized  to act  by any officer  of the Company,  which  act  would  have been authorized  by the foregoing  resolutions except that such act was taken prior to the adoption of such  resolutions,  is  hereby  ratified,  confirmed,  approved,  and  adopted  as  the  act  of  the Company."

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