Document:

<PAGE>

                                                                   EXHIBIT 10.29

================================================================================

                            STOCK PURCHASE AGREEMENT

                           Dated as of April 28, 2000

                                      among

                           --------------------------

                             FRESH ENTERPRISES, INC.

                                       and

                    Those Persons listed on Schedule 1 hereto

================================================================================

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>       <C>                                                               <C>
ARTICLE I. DEFINITIONS......................................................   1

   1.1    Defined Terms.....................................................   1

ARTICLE II. THE AUTHORIZATION AND SALE OF PREFERRED STOCK...................   5

   2.1    Authorization of Preferred Stock..................................   5
   2.2    Purchase of Preferred Stock.......................................   5
   2.3    Closing...........................................................   6

ARTICLE III. REPRESENTATIONS AND WARRANTIES OF THE BUYERS...................   6

   3.1    Authority.........................................................   6
   3.2    No Violation......................................................   6
   3.3    Disclosure of Information.........................................   7
   3.4    Investment Experience.............................................   7
   3.5    Accredited Investors..............................................   7
   3.6    Exculpation Among Buyers..........................................   7
   3.7    Legends...........................................................   7
   3.8    Rights of Senior Debt.............................................   8

ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF THE COMPANY...................   8

   4.1    Corporate Organization............................................   8
   4.2    Subsidiaries and Investments......................................   8
   4.3    Capital Stock.....................................................   9
   4.4    Issuance of Shares................................................   9
   4.5    Authority.........................................................   9
   4.6    No Violation......................................................  10
   4.7    Litigation........................................................  10
   4.8    Financial Statements..............................................  11
   4.9    No Undisclosed Liabilities........................................  11
   4.10   Absence of Certain Changes or Events..............................  11
   4.11   Insurance.........................................................  13
   4.12   Employee Benefits.................................................  13
   4.13   Material Contracts and Other Agreements...........................  13
   4.14   Suppliers.........................................................  14
   4.15   Leased Property...................................................  14
   4.16   Condition and Sufficiency of Assets...............................  15
   4.17   Compliance with Laws..............................................  15
   4.18   Licenses and Permits; Franchise Matters...........................  15
   4.20   Title to Assets...................................................  18
   4.21   Inventory.........................................................  18
</TABLE>

                                       i

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<TABLE>

<S>       <C>                                                              <C>
   4.22   Accounts and Notes Receivable ...................................   19
   4.23   Taxes............................................................   19
   4.24   Environmental Laws and Regulations...............................   20
   4.25   Board of Directors Approval......................................   21
   4.26   No Agreements to Sell the Company................................   22
   4.27   Related Party Transactions.......................................   22
   4.28   No Finders or Brokers............................................   22
   4.29   Labor Matters....................................................   22
   4.30   Full Disclosure..................................................   23

ARTICLE V. CONDITIONS PRECEDENT............................................   23

   5.1    Conditions to the Obligations of the Company.....................   23
   5.2    Conditions to the Obligations of the Buyers......................   23

ARTICLE VI. POST CLOSING...................................................   24

   6.1    Survival of Representations and Warranties.......................   24

ARTICLE VII. MISCELLANEOUS.................................................   25

   7.1    Notices..........................................................   25
   7.2    Headings; Agreement..............................................   25
   7.3    Publicity........................................................   26
   7.4    Entire Agreement.................................................   26
   7.5    Amendment........................................................   26
   7.6    Assignment.......................................................   26
   7.7    Expenses.........................................................   26
   7.8    Severability.....................................................   26
   7.9    Counterparts.....................................................   26
   7.10   Governing Law....................................................   26
   7.11   Cumulative Remedies..............................................   27
   7.12   Third Party Beneficiaries........................................   27
   7.13   Limitation of Liability..........................................   27
   7.14   Arbitration......................................................   27
</TABLE>

                                       ii

<PAGE>

                            STOCK PURCHASE AGREEMENT
                            ------------------------

     STOCK PURCHASE AGREEMENT (this "Agreement") dated as of April 28, 2000
                                     ---------
among Fresh Enterprises, Inc., a California corporation (the "Company") and
                                                              -------
those Persons listed on Schedule 1 hereto (collectively, the "Buyers" and
                                                              ------
individually a "Buyer").

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

                                   ARTICLE I.
                                  DEFINITIONS

     1.1  Defined Terms

     "Accounts Payable" shall mean accounts payable and accrued liabilities of
      ----------------
the Company and its Subsidiaries, including taxes payable, but excluding the
current portion of Funded Debt and deferred revenues.

     "Affiliate" shall have the meaning set forth for such term in the
      ---------
Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder. Without limiting the foregoing, all directors and officers of a
Person that is a corporation shall be deemed Affiliates of such Person for all
purposes hereunder.

     "Aggregate Series B Purchase Price" shall have the meaning set forth for
      ---------------------------------
such term in Section 2.2.

     "Balance Sheet" shall have the meaning set forth for such term in Section
      -------------
4.9.

     "Benefit Plans" shall have the meaning set forth for such term in Section
      -------------
412.

     "Board" shall mean the board of directors of the Company.
      -----

     "Breach" shall mean, and a breach of a representation, warranty, covenant,
      ------
obligation or other provision of this Agreement or any Transaction Document will
be deemed to have occurred if there is or has been, any inaccuracy in or breach
of, or any failure to perform or comply with, such representation, warranty,
covenant, obligation or other provision.

     "Buyers" shall have the meaning set forth for such term in the preamble of
      ------
this Agreement.

     "Catterton" shall mean, collectively, Catterton Partners IV, L.P.,
      ---------
Catterton Partners IV Offshore, L.P., Catterton Partners IV Special Purpose,
L.P. and their respective assigns and Affiliates.

     "Catterton-Baja, L.L.C." shall mean Catterton-Baja Partners, L.L.C.
      ----------------------

     "CGCL" shall mean the General Corporation Law of the State of California.
      ----

                                       1

<PAGE>

     "Closing" shall have the meaning set forth for such term in Section 2.3.
      -------

     "Closing Date" shall have the meaning set forth for such term in Section
      ------------
2.3.

     "Code" shall mean the Internal Revenue Code of 1986, as amended, or any
      ----
successor law.

     "Commercially Reasonable Efforts" shall mean the efforts that a reasonable
      -------------------------------
Person desirous of achieving a result would use in similar circumstances to
ensure that such result is achieved as expeditiously and effectively as
possible. Notwithstanding the foregoing, an obligation to use Commercially
Reasonable Efforts under this Agreement does not require the Person subject to
that obligation to make any payments or pay other consideration to third parties
from whom Consents are required to be obtained hereunder in exchange for receipt
of such Consents; provided, however, that such payments or consideration shall
                  --------  -------
exclude any payments or consideration which are otherwise required to be paid to
such parties.

     "Common Stock" shall have the meaning set forth for such term in Section
      ------------
2.2.

     "Company Contracts" shall have the meaning set forth for such term in
      -----------------
Section 4.13.

     "Company Stores" shall have the meaning set forth for such term in Section
      --------------
4.18.

     "Company Taxes" shall have the meaning set forth for such term in Section
      -------------
4.23.

     "Consent" shall mean any approval, consent, ratification, waiver, or other
      -------
authorization (including any Governmental Authorization).

     "Contract" shall mean any agreement, contract, obligation, promise or
      --------
undertaking (whether written or oral and whether express or implied) that is
legally binding.

     "Disposed Businesses" shall have the meaning set forth for such term in
      -------------------
Section 4.13.

     "Encumbrance" shall mean any charge, claim, condition, equitable interest,
      -----------
lien, option, pledge, security interest, right of first refusal or restriction
of any kind, including any restriction on use, voting, transfer, receipt of
income or exercise of any other attribute of ownership, which in each case is
not created by or arising under the Stockholders' Agreement.

     "ERISA" shall have the meaning set forth for such term in Section 4.12.
      -----

     "Financial Statements" shall have the meaning set forth for such term in
      --------------------
Section 4.8.

     "Franchise Agreements" shall have the meaning set forth for such term in
      --------------------
Section 4.18.

     "Franchise Laws" shall have the meaning set forth for such term in Section
      --------------
4.18.

                                       2

<PAGE>

     "FTC" shall have the meaning set forth for such term in Section 4.18.
      ---
     "GAAP" shall mean United States generally accepted accounting principles
      ----
and practices.

     "Governmental Authorization" shall mean any approval, Consent, license,
      --------------------------
permit, waiver or other authorization issued, granted, given or otherwise made
available by or under the authority of any Governmental Body or pursuant to any
Legal Requirement.

     "Governmental Body" shall mean any:
      -----------------

     (a) nation, state, county, city, town, village, district or other
jurisdiction of any nature;

     (b) federal, state, local, municipal, foreign or other government;

     (c) governmental or quasi-governmental authority of any nature (including
any governmental agency, branch, department, official or entity and any court or
other tribunal);

     (d) multi-national organization or body; or

     (e) body exercising, or entitled to exercise, any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or
power of any nature.

     "Hazardous Material" shall have the meaning set forth for such term in
      ------------------
Section 4.24.

     "Knowledge" shall mean and an individual will be deemed to have "Knowledge"
      ---------
of a particular fact or other matter if such individual is actually aware of
such fact or other matter; provided that, such individual shall be required to
make a reasonable investigation of the circumstances related thereto, including
making due inquiry of other Persons who should be aware of such fact or other
matter.

     "Knowledge of the Company" or other similar phrases shall mean and include
      ------------------------
the Knowledge (provided that the Company's duty of inquiry shall be limited to
inquiry of officers, directors, employees and agents of the Company) of Louis A.
Siracusa, Greg Dollarhyde, and Donald Breen, who are respectively, the Chairman,
President and Chief Executive Officer, and Chief Financial Officer of the
Company.

     "Leased Property" shall have the meaning set forth for such term in Section
      ---------------
4.15.

     "Leases" shall have the meaning set forth for such term in Section 4.15.
      ------

     "Legal Requirement" shall mean any federal, state, local, municipal or
      -----------------
other administrative order, constitution, law, ordinance, principle of common
law, regulation, statute or treaty, including, without limitation, any
applicable franchise, building, zoning, health, environmental, sanitation,
safety, labor relations, immigration or other law, ordinance or regulation.

                                       3

<PAGE>

     "Liability" shall mean any direct or indirect liability, indebtedness,
      ---------
obligation, commitment, expense, claim, deficiency, deferred income, guaranty or
endorsement of or by any Person of any type, whether known, unknown, accrued,
absolute, contingent, matured or unmatured.

     "Material Adverse Effect" or "Material Adverse Change" shall mean any
      -----------------------      -----------------------
significant adverse effect or change in the condition (financial or other),
business, results of operations, liabilities or operations of any party or on
the ability of such party to consummate the Transactions, or any event or
condition which would reasonably be expected to, with the passage of time,
constitute a "Material Adverse Effect" or "Material Adverse Change"; provided,
              -----------------------      -----------------------   --------
however, that a Material Adverse Change shall not include changes, generally, in
-------
economic conditions or the restaurant industry.

     "Order" shall mean any award, decision, injunction, judgment, order,
      -----
ruling, subpoena or verdict entered, issued, made or rendered by any court,
administrative agency or other Governmental Body or by any arbitrator.

     "Organizational Documents" shall mean (a) the articles or certificate of
      ------------------------
incorporation, all certificates of determination and designation, and the bylaws
of a corporation; (b) the partnership agreement and any statement of partnership
of a general partnership; (c) the limited partnership agreement and the
certificate or articles of limited partnership of a limited partnership; (d) the
operating agreement, limited liability company agreement and the certificate or
articles of organization or formation of a limited liability company; (e) any
charter or similar document adopted or filed in connection with the creation,
formation or organization of a Person; and (f) any amendment to any of the
foregoing.

     "Person" shall mean any individual, corporation (including any non-profit
      ------
corporation), general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization, labor union or other entity
or Governmental Body.

     "Proceeding" shall mean any action, arbitration, audit, hearing,
      ----------
investigation, litigation or suit (whether civil, criminal, administrative,
investigative or informal) commenced, brought, conducted or heard by or before,
or otherwise involving, any Governmental Body or arbitrator.

     "Proprietary Rights" shall have the meaning set forth for such term in
      ------------------
Section 4.19.

     "RCRA" shall have the meaning set forth for such term in Section 4.24.
      ----

     "Real Property" shall have the meaning set forth for such term in Section
      -------------
4.24.

     "Registration Rights Agreement" shall mean that certain Registration Rights
      -----------------------------
Agreement between the Company and certain of its shareholders dated November 24,
1998, as amended to date.

     "Representative" shall mean any officer, director, principal, stockholder,
      --------------
partner, attorney, accountant, adviser, agent, employee or other representative.

                                       4

<PAGE>

     "Required Permits" shall have the meaning set forth for such term in
      ----------------
Section 5.24.

     "Securities Act" shall mean the Securities Act of 1933, as amended, and the
      --------------
rules and regulations promulgated thereunder or any successor law.

     "Senior Credit Facility" shall mean the Credit Agreement, dated November
      ----------------------
24, 1998, among Fresh Enterprises, Inc., as Borrower, Subsidiaries of the
Borrower now or hereafter party hereto, as Guarantors, and Imperial Bank, as
Bank.

     "Series A Shares" shall mean the 2,727,941 shares of Series A Convertible
      ---------------
Preferred Stock of the Company.

     "Series B Shares" shall have the meaning set forth for such term in Section
      ---------------
2.2.

     "Series B Stock" shall have the meaning set forth for such term in Section
      --------------
2.1.

     "Shareholders' Agreement" shall mean that certain Shareholders' Agreement
      -----------------------
dated November 24, 1998, between the Company and the holders of the capital
stock of the Company, as amended to date.

     "Subsidiary" shall have the meaning set forth for such term in Section 4.2.
      ----------
     "Threatened" shall describe any claim, Proceeding, dispute, action or other
      ----------
matter if any demand, notice or statement has been received or deemed to be
received (orally or in writing) with respect to such claim, Proceeding, dispute,
action or other matter.

     "Transaction Documents" shall mean this Agreement, the Shareholders
      ---------------------
Agreement and the Registration Rights Agreement.

     "Transactions" shall mean the transactions contemplated by the Transaction
      ------------
Documents.

                                   ARTICLE II.
                  THE AUTHORIZATION AND SALE OF PREFERRED STOCK

     2.1  Authorization of Preferred Stock.. Prior to the Closing, the Company
will file with the California Secretary of State a Certificate of Determination
of Preferences of Series B Convertible Preferred Stock setting forth the rights,
powers, preferences, qualifications, limitations and restrictions of the
Company's Series B Convertible Preferred Stock ("Series B Stock") with the terms
                                                 --------------
set forth on Exhibit A attached hereto, with such certificate in form and
             ---------
substance satisfactory to the Buyers (the "Certificate").

     2.2  Purchase of Preferred Stock. Subject to the terms and conditions of
this Agreement, the Buyers agree to purchase from the Company and the Company
agrees to sell to the Buyers at the Closing, 2,153,507 shares (the "Series B
                                                                    --------
Shares") of Series B Stock of the Company free and clear of all Encumbrances.
------
Each of the Buyers shall purchase the Series B Shares listed opposite such
Buyer's name on Exhibit B attached hereto. The purchase price for
                ---------

                                       5

<PAGE>

each Series B Share shall be an amount equal to $7.28, constituting an aggregate
purchase price of $15,677,530.96 (the "Aggregate Series B Purchase Price").
                                       ---------------------------------

     2.3  Closing. The closing of the sale to and purchase by the Buyers of the
Preferred Shares referred to in Section 2.2 hereof (the "Closing") shall occur
                                                         -------
at the offices of Paul, Hastings, Janofsky & Walker, 555 South Flower Street,
Los Angeles, California at 10:00 a.m. Washington time on April 28, 2000 or at
such other date, place or time of day as the Buyers and the Company shall agree
to in writing (the "Closing Date"). At the Closing, (i) the Company shall
                    ------------
deliver to each Buyer certificates evidencing the Series B Shares being
purchased by such Buyer, free and clear of any Encumbrances of any nature
whatsoever registered in such Buyer's name, and (ii) each Buyer shall deliver to
the Company the portion of the Purchase Price listed next to such Buyer's name
on Exhibit B hereto, by check or wire transfer of immediately available funds
or, in the case of Gregory Dollarhyde, by a promissory note in a form acceptable
to the Company or any combination thereof.

     2.4  Delayed Closing. Notwithstanding the preceding Sections 2.2 and 2.3,
Catterton-Baja, L.L.C. may purchase its Series B Shares hereunder at any time
acceptable to the Company (the "Delayed Closing") up to 30 days from the Closing
Date (such date being the "Subsequent Closing Date"). If Catterton-Baja, L.L.C.
does not purchase its Series B Shares by the Subsequent Closing Date, then
Catterton shall purchase the Series B Shares allocated to Catterton-Baja, L.L.C.
on Exhibit B hereto on the Subsequent Closing Date. On the Subsequent Closing
Date (i) the Company shall deliver to Catterton-Baja, L.L.C. (or Catterton, as
applicable) certificates evidencing the Series B Shares being purchased by such
Buyer, free and clear of any Encumbrances of any nature whatsoever registered in
such Buyer's name, and (ii) Catterton-Baja, L.L.C. (or Catterton, as applicable)
shall deliver to the Company the portion of the Purchase Price listed next to
such Catterton-Baja, L.L.C.'s name on Exhibit B hereto, by check or wire
transfer of immediately available funds.

                                  ARTICLE III.
                  REPRESENTATIONS AND WARRANTIES OF THE BUYERS

     Each Buyer severally represents and warrants to the Company as follows:

     3.1  Authority. Such Buyer has full power and authority to execute and
deliver this Agreement and to perform its obligations under this Agreement. The
execution, delivery and performance by such Buyer of this Agreement and the
consummation of the Transactions have been duly authorized by all necessary
action on the part of such Buyer. No other action on the part of such Buyer is
necessary to authorize the execution and delivery of this Agreement by such
Buyer or the performance by such Buyer of its obligations hereunder. Each of the
Transaction Documents have been duly executed and delivered by such Buyer and
constitutes a legal, valid and binding agreement of such Buyer, enforceable
against such Buyer in accordance with its terms, subject to applicable
bankruptcy, insolvency, moratorium, reorganization or similar laws affecting
creditors' rights generally and subject to general equitable principles
(regardless of whether such enforceability is considered in a Proceeding in
equity or at law).

     3.2  No Violation. Neither the execution and delivery of the Transaction
Documents by such Buyer nor the consummation of the Transactions will (a)
violate any

                                       6

<PAGE>

provision of any Legal Requirement or Order applicable to such Buyer (b) require
the Consent or any filing with any Person or Governmental Body, except as
permitted by Section 500 et seq. of the CGCL, (c) violate, result (with or
                         -- ---
without notice or the passage of time, or both) in a Breach of, or give rise to
the right to terminate, accelerate or cancel any obligation under, or require
the payment of any fee, or constitute (with or without notice or the passage of
time, or both) a default under, any of the terms or provisions of (i) the
Organizational Documents of such Buyer, or (ii) any indenture, mortgage, lien,
Order, judgment, ordinance, regulation, decree, license, permit or other
Contract or instrument to which such Buyer is subject or bound (d) result in the
creation of any Encumbrance upon any property of such Buyer which could have,
individually or in the aggregate, a Material Adverse Effect on such Buyer, or
(e) with respect to such Buyer, result in a termination, loss or adverse
modification of any license, permit, certificate or Contract granted to or
otherwise held by such Buyer except (in the case of clauses (a) and (c)(ii)) for
such violations, Breaches and defaults which could not have, individually or in
the aggregate, a Material Adverse Effect on such Buyer or to interfere in any
material way with the consummation of the Transactions.

     3.3  Disclosure of Information. Such Buyer has conducted and shall continue
to conduct due diligence. Notwithstanding the foregoing, nothing in this Section
3.3 shall, or shall be deemed to, modify, waive, qualify or in any way negate
the representations and warranties of the Company set forth herein or otherwise
release the Sellers from their indemnification obligations under Article VIII
herein.

     3.4  Investment Experience. Such Buyer is an investor in securities of
companies in the development stage, is able to bear the economic risk of this
investment, and has such knowledge and experience in financial and business
matters that such Buyer is capable of evaluating the merits and risks of the
investment in the securities to be purchased hereunder.

     3.5  Accredited Investors. Such Buyer is an "accredited investor" within
the meaning of Rule 501 of Regulation D promulgated under the Securities Act.
Such Buyer is purchasing the Series B Shares pursuant to this Agreement for
investment for such Buyer's own account and not with a view to, or for resale in
connection with, any distribution thereof, within the meaning of Section 2(11)
of the Securities Act.

     3.6  Exculpation Among Buyers. Each Buyer acknowledges that in making its
decision to invest in the Company, it is not relying on any other Buyer or upon
any person, firm or company, other than the Company and its officers, employees
and/or directors. Each Buyer agrees that no other Buyer, nor the partners,
employees, officers or controlling persons of any other Buyer shall be liable
for any actions taken by such Buyer, or omitted to be taken by such Buyer, in
connection with such investment.

     3.7  Legends. Such Buyer understands that the certificates evidencing the
securities to be purchased hereunder will bear the following legend:

     "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
     1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE
     SOLD, OFFERED FOR SALE, PLEDGED OR

                                       7

<PAGE>

     HYPOTHECATED EXCEPT IN COMPLIANCE WITH THE ACT AND ALL APPLICABLE STATE
     SECURITIES LAWS."

     3.8  Rights of Senior Debt. Each Buyer understands and acknowledges that
the Company is prohibited from paying any dividends or other distributions on,
and from redeeming, repurchasing or otherwise acquiring for value, the Series B
Shares, the Series A Shares and any other outstanding shares of the Company's
capital stock, without the consent of Imperial Bank, the Company's senior lender
under the Credit Agreement dated as of November 24, 1998, and its successors and
assigns thereunder or under any extension, renewal, refunding or refinancing
thereof (the "Senior Debt"). Each Buyer further understands and acknowledges
that the Company's obligations to redeem the Series B Shares and the Series A
Shares shall be subject to (i) the prior payment in full of the Senior Debt or
(ii) obtaining the requisite consent of the lenders under the Senior Debt.

                                   ARTICLE IV.
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company represents and warrants to the Buyers that the following
representations and warranties are, as of the date hereof, true and correct:

     4.1  Corporate Organization. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of California,
with all requisite corporate power and authority to own, operate and lease its
properties and assets that it now purports to own, operate or lease, to carry on
its business as it is now being conducted, and to perform its obligations under
the Transaction Documents. Except as set forth on Schedule 4.1, the Company is
                                                  ------------
duly qualified to do business and is in good standing under the laws of each
state or other jurisdiction in which either the nature of the activities
conducted by it or the ownership, operation or leasing of the properties and
assets owned, operated or leased by it requires such qualification and good
standing, except where the failure to be so qualified or in good standing would
not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect on the Company. Schedule 4.1 contains a list of jurisdictions in
                               ------------
which the Company is qualified to do business.

     4.2  Subsidiaries and Investments. Except as set forth on Schedule 4.2, the
                                                               ------------
Company does not own, directly or indirectly, any stock, partnership interest,
joint venture interest or other security, investment or interest in any other
corporation, partnership, association, joint venture, organization or other
entity. Each of the entities set forth in Schedule 4.2 (each a "Subsidiary" and,
                                          ------------          ----------
collectively, the "Subsidiaries") is duly organized, validly existing and in
                   ------------
good standing under laws of its organization or existence with all requisite
corporate power and authority to own, operate and lease its properties and
assets that it now purports to own, operate or lease, to carry on its business
as it is now being conducted, and to perform its obligations under the
Transaction Documents to which it is a party. Each Subsidiary is duly qualified
to do business under the laws of each state or other jurisdiction in which
either the nature of the activities conducted by it or the ownership, operation
or leasing of the properties and assets owned, operated or leased by it requires
such qualification and good standing, except where the

                                       8

<PAGE>

failure to be so qualified or in good standing would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect on
such Subsidiary.

     4.3  Capital Stock. As of the date hereof the authorized capital stock of
the Company consists and will consist in its entirety of (a) 15,000,000 shares
of Common Stock, 1,520,224.50 of which are issued and outstanding, 13,479,775.50
of which are authorized but unissued and none of which is held by the Company as
treasury shares, and (b) 15,000,000 shares of preferred stock, 2,727,941 of
which are designated as Series A Preferred Stock, 2,727,941 of which shares are
issued and outstanding. Immediately following the Closing, (i) the authorized
capital stock of the Company will consist in its entirety of (x) 15,000,000
shares of Common Stock, 1,520,224.50 of which will be issued and outstanding,
and (y) 15,000,000 shares of preferred stock, 2,727,941 of which are designated
as Series A Preferred Stock, 2,727,941 of which shares are issued and
outstanding, and 2,153,507 of which are designated as Series B Stock, 2,153,507
of which shares are issued and outstanding. No other class or series of
preferred stock has been authorized by the Company. All of the outstanding
shares of capital stock of the Company and its Subsidiaries have been duly
authorized and validly issued and are fully paid and non-assessable. All of the
outstanding shares of capital stock of the Company and its Subsidiaries were
issued in compliance with the Securities Act and all Legal Requirements. Other
than the Shareholders' Agreement, there are no Contracts with respect to the
voting, issuance, redemption, repurchase, acquisition, sale or transfer of the
capital stock or other securities of the Company, or any securities convertible
into or exchangeable for shares of capital stock or other securities of the
Company to which the Company is a party. Except as set forth on Schedule 4.3,
                                                                 ------------
the Company has not granted any preemptive rights, registration rights,
subscriptions, calls, options, warrants, rights, convertible securities or other
agreements or commitments of any character relating to the issued or unissued
capital stock or other securities of the Company, or any securities convertible
into or exchangeable for shares of such capital stock or other securities of the
Company, and there are no statutory obligations of the Company to repurchase,
redeem or otherwise acquire or sell, issue or otherwise transfer any shares of
such capital stock. Schedule 4.3 sets forth the record ownership of Common
                    ------------
Stock, including the identity of each shareholder of the Company and the number
of shares of Common Stock held by such shareholder.

     4.4  Issuance of Shares. The Series B Shares to be issued at the Closing
will have been duly authorized, validly issued, fully paid and non-assessable
and will be free and clear of all Encumbrances.

     4.5  Authority. The Company has full corporate power and authority to
execute and deliver the Transaction Documents and to perform its obligations
under such Transaction Documents. The execution, delivery and performance of the
Transaction Documents and the consummation of the Transactions have been duly
authorized by the Board, and no other corporate proceedings on the part of the
Company, its Subsidiaries or their shareholders are necessary to authorize the
execution and delivery by the Company of the Transaction Documents or to
consummate the Transactions, except those which have already been obtained. This
Agreement has been duly executed and delivered by the Company and constitutes
the legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms, subject to bankruptcy, insolvency,
moratorium, reorganization or similar laws affecting creditors' rights generally
and subject to general

                                       9

<PAGE>

equitable principles (regardless of whether such enforceability is considered in
a Proceeding in equity or at law). Each of the other Transaction Documents to be
executed by the Company will be duly executed and delivered by the Company on or
prior to the Closing Date and, upon such execution and delivery (assuming due
execution and delivery by the other party or parties thereto), will constitute a
legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms, except where such enforceability may be
limited by bankruptcy, insolvency, moratorium, reorganization, or similar laws
affecting creditors' rights generally and subject to general equitable
principles (regardless of whether such enforceability is considered in a
Proceeding in equity or at law). The holders of the capital stock of the Company
will have the rights, preferences and privileges set forth in the Company's
Organizational Documents.

     4.6  No Violation. Neither the execution and delivery of this Agreement and
the other Transaction Documents by the Company nor the consummation of the
Transactions will (a) violate any provision of any Legal Requirement or Order
applicable to the Company or any Subsidiary, (b) require the Consent of or any
filing with any Person or Governmental Body, except (i) as permitted by Section
500 et seq. of the CGCL, (ii) those that have been received or made prior to the
    -- ---
date hereof or (iii) the filing of a Form D with the Securities and Exchange
Commission and a notice of transaction under Section 25102(f) with the
California Secretary of State, (c) violate, result (with or without notice or
the passage of time, or both) in a Breach of, or give rise to the right to
terminate, accelerate or cancel any obligation under, or require the payment of
any fee, or constitute (with or without notice or the passage of time, or both)
a default under, any of the terms or provisions of (i) the Organizational
Documents of the Company or any Subsidiary, or (ii) any indenture, mortgage,
lien, lease, Order, judgment, ordinance, regulation, decree, license, permit,
franchise or other Contract or instrument to which the Company or any Subsidiary
is subject or bound, (d) result in the creation of any Encumbrance upon any
property of the Company or any Subsidiary which would have, individually or in
the aggregate, a Material Adverse Effect on the Company and its Subsidiaries
taken as a whole, or (e) except as set forth on Schedule 4.6, result in a
                                                ------------
termination, loss or adverse modification of any license, permit, certificate,
franchise or Contract granted to or otherwise held by the Company or any
Subsidiary, except (in the case of clauses (a), (b), (c)(ii) and (e)) for such
terminations, losses, Breaches, accelerations, cancellations or modifications
which would not have, individually or in the aggregate, a Material Adverse
Effect on the Company and its Subsidiaries taken as a whole or interfere in any
material way with the consummation of the Transactions.

     4.7  Litigation. Except as set forth on Schedule 4.7, there is no
                                             ------------
Proceeding pending or, to the Knowledge of the Company, Threatened against the
Company or any Subsidiaries or any of their respective assets or property before
any court or Governmental Body or arbitrator, which would have, individually or
in the aggregate, a Material Adverse Effect, nor, to the Knowledge of the
Company, is there any basis for any of the foregoing. There is no Proceeding
pending or, to the Knowledge of the Company, Threatened, against the Company or
any Subsidiaries challenging the validity, timing or propriety of the
Transactions. None of the Company or any Subsidiaries or any of their assets or
property is subject to any Order, judgment, injunction or decree, which would
have, individually or in the aggregate, a Material Adverse Effect on the Company
or any Subsidiary.

                                       10

<PAGE>

     4.8  Financial Statements. True and complete copies of the Company's
audited consolidated financial statements for the fiscal years 1997 and 1998,
together with the report thereon of the Company's independent certified public
accountants, and the Company's unaudited consolidated financial statements for
the fiscal year ended January 3, 2000 (collectively, the "Financial Statements")
                                                          --------------------
are set forth in Schedule 4.8. The Financial Statements were prepared in
                 ------------
accordance with GAAP, reflect all normal and customary year-end audit
adjustments and present, fairly and accurately, the financial position, results
of operations, income, expenses, assets, liabilities, changes in shareholders'
equity and cash flows of the Company and its Subsidiaries as of the respective
dates and for the periods indicated. The Financial Statements are prepared in
accordance with the books and records of the Company and its Subsidiaries. At
the respective dates of the Financial Statements, there were no Liabilities,
commitments or obligations (absolute, accrued, contingent or otherwise) of the
Company or any Subsidiary, which in accordance with GAAP should have been shown
or reflected in such Financial Statements or the notes thereto which were not so
reflected.

     4.9  No Undisclosed Liabilities. Except as set forth in Schedule 4.9,
                                                             ------------
neither the Company nor any Subsidiary has any Liabilities or obligations of any
nature (whether known or unknown, with or without the passage of time, and
whether absolute, accrued, contingent or otherwise) except for Liabilities or
obligations reflected or reserved against in the audited consolidated balance
sheet of the Company and its Subsidiaries as of January 3, 2000 (the "Balance
                                                                      -------
Sheet Date") and current Liabilities incurred in the ordinary course of business
----------
since such date.

     4.10  Absence of Certain Changes or Events. Except as set forth in Schedule
                                                                        --------
4.10, since the Balance Sheet Date, the Company and its Subsidiaries have
----
conducted their business in the ordinary course of business consistent with past
practice and there has not been any:

           (a) Material Adverse Change in the financial condition, properties
     assets, liabilities, business, operations or results of operations of the
     Company or any Subsidiary;

           (b) addition to or modification of employee benefits plans,
     arrangements or practices;

           (c) sale, assignment or transfer of any of the material assets of the
     Company or any Subsidiary, other than in the ordinary course of business,
     consistent with past practice;

           (d) cancellation of any indebtedness owed to the Company or any
     Subsidiary in an aggregate amount greater than $50,000, or waiver of any
     rights of similar value to the Company or any Subsidiary relating to any of
     its business activities or properties, other than in the ordinary course of
     business;

           (e) amendment, cancellation or termination of any Contract, license
     or other instrument material to the Company or any Subsidiary;

                                       11

<PAGE>

          (f) failure to repay any material obligation of the Company or any
     Subsidiary when due;

          (g) change in accounting methods, principles or practices by the
     Company or any Subsidiary materially affecting its assets, Liabilities,
     results of operations or business;

          (h) material revaluation by the Company or any Subsidiary of any of
     its assets, including without limitation, any material write-offs, material
     increases in any reserves or any write-up of the value of inventory,
     property, plant, equipment or any other asset;

          (i) material damage, destruction or loss (whether or not covered by
     insurance) affecting any store or office maintained by the Company or any
     Subsidiary or any other material asset of the Company or any Subsidiary and
     resulting in a loss in excess of $50,000;

          (j) mortgage, pledge or other Encumbrance of any assets of the Company
     or any Subsidiary, material singly or in the aggregate;

          (k) declaration, setting aside or payment of any dividend or other
     distribution or payment (whether in cash, stock or property) with respect
     to the capital stock or other equity securities of the Company or any
     Subsidiary or any redemption, purchase or other acquisition of any of the
     securities of the Company or any Subsidiary, or any other payment to any
     shareholder of the Company or any Subsidiary in its capacity as a
     shareholder;

          (l) issuance by the Company or any Subsidiary of, or commitment by it
     to issue, any capital stock or other equity securities or obligations or
     any securities convertible into or exchangeable or exercisable for capital
     stock or other equity interests;

          (m) indebtedness for borrowed money incurred by the Company or any
     Subsidiary or any commitment to incur indebtedness for borrowed money
     entered into by the Company or any Subsidiary, or any loans made or agreed
     to be made by the Company or any Subsidiary other than as set forth on
     Schedule 4.10;
     -------------

          (n) incurrence of other Liabilities involving $100,000 or more, except
     in the ordinary course of business, or any increase or change in any
     assumptions underlying, or methods of calculating, any bad debt,
     contingency or other reserves;

          (o) payment, discharge or satisfaction of any Liabilities other than
     the payment, discharge or satisfaction (i) in the ordinary course of
     business, consistent with past practice, of Liabilities reserved against in
     the Financial Statements or of Liabilities incurred in the ordinary course,
     consistent with past practice or (2) of other Liabilities involving $50,000
     or less individually and $100,000 or less in the aggregate;

          (p) increase in the compensation of officers or employees (including
     any such increase pursuant to any bonus, pension, profit sharing or other
     plan or

                                       12

<PAGE>

     commitment) or any increase in the compensation payable or to become
     payable to any officer or employee or any severance or termination pay,
     except for increases as required by law;

          (q) granting of any bonus, incentive compensation, service award or
     other like benefit to any officer or employee except in accordance with
     plans or arrangements disclosed on Schedule 4.10; or
                                        -------------

          (r) agreement, whether oral or written, by the Company or any
     Subsidiary to do any of the foregoing;

(except as expressly required by this Agreement or any Transaction Document.)
 ------

     4.11  Insurance. Schedule 4.11 contains a list of all policies of
                      -------------
insurance, surety bonds and letters of credit maintained by the Company or any
Subsidiary (showing as to each policy or binder, the carrier, coverage limits,
expiration dates, annual premiums, summary of loss experience since November 24,
1998, any claim exceeding $50,000 and a general description of the type of
coverage provided), which list is true, complete and accurate in all material
respects as of the date hereof. To the best of the Company's Knowledge, the
Company and each of its Subsidiaries have paid all premiums due and are not
otherwise in default with respect to their respective obligations under any such
policies. All of such policies are sufficient for (i) compliance with all Legal
Requirements and Contracts, leases and other agreements to which the Company or
any Subsidiary is a party and (ii) all risks normally insured against by a
Person conducting the same business as the business conducted by the Company and
its Subsidiaries, except, in each case, where any such insufficiencies would not
have, individually or in the aggregate, a Material Adverse Effect on the Company
or such Subsidiary. Neither the Company nor any Subsidiary has failed to give
any notice or to present any material claim under any such policy or binder in a
due and timely fashion except for such failure as would not have, individually
or in the aggregate, a Material Adverse Effect on the Company or such
Subsidiary.

     4.12  Employee Benefits. For purposes of this Section 4.12, the term
"Company" shall include any Person that, together with the Company as of any
relevant measuring date under the Employee Retirement Income Security Act of
1974, as amended ("ERISA") was or is required to be treated as a single employer
                   -----
under Code Section 414. The Company does not sponsor or contribute to any
employee benefit plan subject to ERISA, other than as identified on Schedule
                                                                    --------
4.12 hereto. None of the employee benefit plans listed on Schedule 4.12 have any
----                                                      -------------
accumulated funding deficiency within the meaning of ERISA or any liability to
the Pension Benefit Guaranty Corporation, or any successor thereof ("PBGC")
established under ERISA in connection with any employee benefit plan (or other
class of benefit which the PBGC has elected to insure) other than an obligation
to tender premium payments to the PBGC; to the Company's Knowledge there have
been no "reportable events" or "prohibited transactions" with respect to any
such plan, as those terms are defined in Section 4043 of ERISA and Section 4975
of the Internal Revenue Code of 1986, as amended, respectively; and the Company
is otherwise in full compliance with the provisions of ERISA.

     4.13  Material Contracts and Other Agreements. Schedule 4.13 discloses, as
                                                    -------------
of the date hereof, whether written or oral, together with all amendments and
modifications thereto,

                                       13

<PAGE>

(a) obligations (contingent or otherwise) of, or payments to, the Company or any
of its subsidiaries in excess of $50,000 which are not cancelable by the Company
on less than thirty (30) days' notice, and excluding inventory purchase orders,
(b) any agreement relating to the Proprietary Rights, (c) all employment and
consulting agreements, employee benefit, bonus, pension, profit-sharing, stock
option, stock purchase and similar plans and arrangements, and distribution and
sales representative agreements, (d) all joint venture or partnership agreements
to which the Company or any Subsidiary is a party or bound, (e) all area
development agreements, letters of commitment and franchise agreements to which
the Company or any Subsidiary is a party or bound and, (f) each collective
bargaining agreement or other Contract to or with any labor union or other
employee representative of a group of employees. The foregoing are hereinafter
referred to as the "Company Contracts." With respect to each Company Contract,
                    -----------------
(1) such Contract is valid, binding and enforceable against the Company or a
Subsidiary and, to the Company's Knowledge, each other party thereto in
accordance with its terms, subject in each case to applicable bankruptcy,
insolvency, moratorium, reorganization or similar laws affecting creditors'
rights generally and subject to general equitable principles (regardless of
whether such enforceability is considered in a Proceeding in equity or at law);
(2) neither the Company nor any Subsidiary, nor, to the Company's Knowledge, any
other party to such Contract is in material Breach thereof or material default
thereunder; (3) to the Knowledge of the Company, there does not exist any event
that, with the giving of notice or the lapse of time or both, would, constitute
a material Breach of or a material default under such Contract, and neither the
Company nor any Subsidiary has received or given notice of any such Breach,
default or event; and (4) there have been no waivers or releases of any of the
Company's or any Subsidiaries' material rights or remedies under any of the
Contracts.

     4.14  Suppliers. The Company and each of its Subsidiaries has a good
business relationship with each of its suppliers. None of the Company's or its
Subsidiaries' suppliers has canceled or otherwise terminated, or threatened in
writing to cancel or otherwise terminate, its relationship with the Company or
any Subsidiary or, since the Balance Sheet Date, decreased materially, or
threatened to decrease or limit materially, its services, supplies or materials
to the Company or any Subsidiary except to the extent such cancellation,
decrease, termination or limitation would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on the Company or
any Subsidiary.

     4.15  Leased Property. Neither the Company nor any Subsidiary owns or,
since their respective inceptions, has owned, any real property or any interest
in any real property, other than leasehold interests. For purpose of this
Agreement, "Leased Property" shall mean all real property leased or otherwise
            ---------------
operated or occupied (other than as an owner) in whole or in part by the Company
or any Subsidiary. Schedule 4.15 sets forth a list of (a) all leases and
                   -------------
subleases under which the Company or any Subsidiary is the lessor, lessee,
operator or occupant of any real property, and (b) all material options granted
by or to the Company or any Subsidiary or any contractual obligations on the
part of the Company or any Subsidiary to purchase, acquire, sell or dispose of
any interest in real property. The Company and its Subsidiaries have good and
valid leasehold title to all Leased Property, free and clear of all Encumbrances
other than Encumbrances created by the Leases or the Senior Credit Facility.
Each lease, sublease or other agreement (collectively, the "Leases") set forth
                                                            ------
on Schedule 4.15 (or required to be set forth on Schedule 4.15) is in full force
   -------------                                 -------------
and effect; all rents and additional rents due to date on each such Lease have
been paid in full; and, to the Company's Knowledge, except as set forth on
Schedule
--------

                                       14

<PAGE>

4.15, the Company's and the Subsidiaries' lessors are not in default thereunder
----
in any material respect and except as set forth on Schedule 4.15, there exists
                                                   -------------
no event of default or event, occurrence, condition or act (including the
transactions contemplated hereby) which, with the giving of notice, the lapse of
time or the happening of any further event or condition not within the control
of the Company or a Subsidiary, would become a material default under such
Lease, or would reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect on the Company or any Subsidiary. The
Company and its Subsidiaries have not violated any of the terms or conditions
under any such Lease in any material respect.

          4.16 Condition and Sufficiency of Assets. The plant, offices,
structures, and equipment of the Company whether constituting the Company Stores
or otherwise are in good condition and repair in the ordinary course of business
and are reasonably fit and suitable for the purposes for which they are being
used and conform in all respects with all applicable Legal Requirements, except
to the extent such noncompliance would not reasonably be expected to have a
Material Adverse Effect on the Company and its Subsidiaries taken as a whole.

          4.17 Compliance with Laws. Except as set forth on Schedule 4.17, (i)
                                                            -------------
the Company and its Subsidiaries are in compliance with each Legal Requirement
applicable to it or to the conduct or operation of its business or the ownership
or use of any of its assets, including, without limitation, any applicable
franchise, building, zoning, health, environmental, sanitation, safety, labor
relations, immigration or other law, ordinance or regulation except to the
extent such noncompliance would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect on the Company or any Subsidiary;
(ii) no event has occurred or circumstance exists that may result in a violation
of, or failure on the part of the Company or any Subsidiary to comply with, any
Legal Requirement or give rise to any obligation of the Company or any
Subsidiary to undertake, or bear all or any portion of the cost of, any remedial
action of any nature except to the extent such event or circumstance would not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect on the Company or any Subsidiary; and (iii) neither the Company
nor any Subsidiary has received any notice regarding the foregoing.

          4.18 Licenses and Permits; Franchise Matters.

               (a) Licenses and Permits. Except as set forth on Schedule 4.18(a)
                   --------------------                         ----------------

     and Schedule 4.18(d), the Company and each Subsidiary has all governmental
         ----------------
     or regulatory licenses, permits and Governmental Authorizations (all of
     which are in full force and effect) necessary to conduct its business as it
     is now being conducted, except for such governmental or regulatory
     licenses, permits and Governmental Authorizations the absence of which
     would not have, individually or in the aggregate, a Material Adverse Effect
     on the Company or such Subsidiary, and none of such governmental or
     regulatory licenses, permits and Governmental Authorizations will be
     impaired as a result of the Transactions, except for such impairments which
     would not have, individually or in the aggregate, a Material Adverse Effect
     on the Company or such Subsidiary. Except as set forth on Schedule 4.18(a)
                                                               ----------------
     and Schedule 4.18(d), the Company and each of its Subsidiaries is, and at
         ----------------
     all times since November 24, 1998 has been, in full compliance with all of
     the terms and requirements of each Governmental Authorization held by it
     except to the extent that such noncompliance would not reasonably be
     expected to lead to

                                       15

<PAGE>

     the loss or revocation of such Governmental Authorization or to result in a
     Material Adverse Effect on the Company and its Subsidiaries taken as a
     whole. Neither the Company nor any Subsidiary has received any notice to
     the effect that, (i) any actual or potential withdrawal, suspension,
     cancellation or modification to any Governmental Authorization of the
     Company or a Subsidiary is Threatened or (ii) it is not in compliance with,
     or it is in violation of, any such governmental or regulatory licenses,
     permits and Governmental Authorizations in a manner that would have,
     individually or in the aggregate, a Material Adverse Effect, and there are
     not currently existing circumstances that are likely to result in a failure
     of the Company or any Subsidiary to comply with, or in a violation by the
     Company or any Subsidiary of, any such governmental or regulatory licenses,
     permits or Governmental Authorizations that would have, individually or in
     the aggregate, a Material Adverse Effect on the Company and its
     Subsidiaries taken as a whole.

               (b) Franchise and Area Development Agreements. Schedule 4.18(b)
                   -----------------------------------------  ----------------
     accurately identifies all current franchise agreements and area development
     agreements (the "Franchise Agreements"), by name of franchisee, date of
                      --------------------
     agreement, expiration date, location of store, and exclusive territory, and
     since November 24, 1998, no other current Contracts, agreements or
     understandings exist, whether oral or written, between the Company or any
     Subsidiary and any third party granting the right, or any option or right
     of first refusal, to operate a restaurant business under the name "Baja
     Fresh" or any related marks. Except as set forth in Schedule 4.18(b) and
                                                         ----------------
     Schedule 4.18(d), the Franchise Agreements listed on Schedule 4.18(b)
     ----------------                                     ----------------
     represent the complete terms and provisions of all current agreements with
     franchisees, and no written or, to the Knowledge of the Company, oral
     modifications of or supplements to those written agreements have been
     entered into since November 24, 1998. Except as set forth in Schedule
                                                                  --------
     4.18(b) and Schedule 4.18(d), each of the Franchise Agreements is in full
     -------     ----------------
     force and effect and is enforceable against the Company and the franchisee
     party to such Franchise Agreement in accordance with its terms subject to
     applicable bankruptcy, insolvency, moratorium, reorganization or similar
     laws affecting creditors' rights generally and subject to general equitable
     principles (regardless of whether such enforceability is considered in a
     Proceeding in equity or at law) and no notices of or demands for rescission
     or early termination have been delivered thereunder by any party. Except as
     set forth in Schedule 4.18(b) and Schedule 4.18(d), there are no material
                  ----------------     ----------------
     Breaches by the Company, any Subsidiary or to the Knowledge of the Company
     any franchisee of any of the Franchise Agreements, which Breaches remain
     uncured. Each franchisee is no more than 30 days past due in its financial
     obligations to the Company and its Subsidiaries, including without
     limitation, payments due for royalties and product purchases, except as set
     forth in Schedule 4.18(b) and Schedule 4.18(d). Except as set forth in
              ----------------     ----------------
     Schedule 4.18(b) and Schedule 4.18(d), there are no assertions or claims,
     ----------------     ----------------
     whether oral or in writing, or, as of the date hereof or as of the Closing
     Date, to the Knowledge of the Company, any basis for any claims by any
     franchisee of material Breaches of any of the Franchise Agreements by the
     Company or any Subsidiary which remain uncured. Except as set forth in
     Schedule 4.18(b) and Schedule 4.18(d), to the Knowledge of the Company
     ----------------     ----------------
     there is no basis for any demand by any franchisee for rescission of any
     Franchise Agreement no franchisee is entitled to any credit, set off or
     reduction in any payment required to be made pursuant to the terms of any
     Franchise Agreement, or in any

                                       16

<PAGE>

     other payment(s) owed to the Company or any Subsidiary, and no event has
     occurred which would give any franchisee a defense to its obligation to pay
     fees, or to perform its other obligations under its Franchise Agreement,
     and no franchisee has any claims, counterclaims or offsets against the
     Company or any Subsidiary. The Transactions do not require the prior
     Consent of or notice to any franchisee, or grant any franchisee the right
     to terminate any Franchise Agreement. There are no contractual limitations
     or prohibitions upon the Company or any Subsidiary from operating "Baja
     Fresh Mexican Grill" restaurants or selling franchises in any city, state,
     territory or country except as expressly set forth in the Franchise
     Agreements. Schedule 4.18(b) also separately lists by location all
                 ----------------
     restaurants owned or leased by the Company, any Subsidiary, or any
     Affiliate thereof (the "Company Stores") indicating which of the Company
                             --------------
     Stores are open and operating. Schedule 4.18(b) also lists all stores other
                                    ----------------
     than Company Stores which are currently open and operating.

               (c) Franchise Law Compliance. Schedule 4.18(c) accurately sets
                   ------------------------  ----------------
     forth each state in which the Company and its Subsidiaries are currently
     registered or with whom the Company or any Subsidiary has filed for an
     exemption from registration to sell franchises, the effective date and
     expiration date of each such registration. Neither the Company nor any of
     its Subsidiaries has voluntarily or involuntarily ceased to be registered
     to sell franchises in any state and the Company has no Knowledge of any
     fact or circumstance which would preclude or inhibit the Company or any
     Subsidiary from filing and receiving approval of an application to offer
     and sell franchises in any state in which the Company or such Subsidiary is
     not presently registered to do so. Except as disclosed in that certain
     Notice of Violation filed with and approved in form by the California
     Department of Corporations in December 1996, except as set forth on
     Schedule 4.18(c) neither the Company nor any Subsidiary has committed any
     material violation of any Legal Requirement of the Federal Trade Commission
     ("FTC") or of any state relating to the offer, sale, assignment, renewal,
       ---
     termination or rights of succession, of franchises, business opportunities
     and seller assisted marketing plans ("Franchise Laws"). Except as set forth
                                           --------------
     on Schedule 4.18(c), there is no pending, unresolved claim or assertion of
     any violation by the Company or any Subsidiary of any Franchise Laws,
     neither the Company nor any Subsidiary has received notice from any
     Governmental Body or private party alleging any such violation, and neither
     the Company nor any Subsidiary has any Knowledge of any basis for any such
     claim of violation. Except as set forth on Schedule 4.18(c), there
     currently exist no escrow or impound conditions or requirements imposed
     upon the sale of franchises by the Company or any Subsidiary in any
     jurisdiction. Except as set forth on Schedule 4.18(c), there are no pending
     or currently effective stop orders, administrative Proceedings, notices of
     investigation, injunctions, Orders or restitution, rescission notices, or
     other orders, actions or decrees by any state or federal agency, or by any
     state or federal court, whether civil or criminal, against the Company or
     any Subsidiary. There is currently no litigation or arbitration between the
     Company or any Subsidiary and any franchisee or ex-franchisee thereof .

               4.19 Intellectual Property.

               (a) Trademarks. The Company and its Subsidiaries own all
                   ----------
     trademarks, service marks, copyrights, and trade dress (collectively,
     "Proprietary
      -----------

                                       17

<PAGE>

     Rights") which are used in the business of the Company and its Subsidiaries
     ------
     or that of its franchisees, including without limitation, the "Baja Fresh"
     and "Baja Fresh Mexican Grill" service mark. None of the Company and its
     Subsidiaries has, and prior to Closing shall not have, sold, assigned,
     transferred, conveyed, or otherwise disposed of or agreed to sell, assign,
     transfer, convey, or otherwise dispose of any of the Proprietary Rights,
     except for licenses granted to franchisees pursuant to the Franchise
     Agreements, for fair consideration in the ordinary course of business
     consistent with prior practices. Except as set forth on Schedule 4.19 to
                                                             -------------
     the Company's Knowledge, there have been no Threatened to be filed
     oppositions to or requests for cancellation of any of the registrations or
     applications. The Company has promptly taken and will promptly take
     appropriate action to protect its Proprietary Rights when it becomes aware
     of uses by third parties of any Proprietary Rights which infringe any of
     the Proprietary Rights. Except as set forth in Schedule 4.19, no claims
                                                    -------------
     have been asserted or, to the Knowledge of the Company, Threatened against
     the Company or any Subsidiary by any third party alleging that any of the
     Proprietary Rights infringe any rights or marks held by such third party,
     or asserting palming-off, dilution or unfair competition, unjust
     enrichment, or similar claims, and the Company has no Knowledge of any
     basis for any such claim. None of the Proprietary Rights will cease to be
     valid and in full force and effect by reason of the execution, delivery and
     performance of this Agreement or the consummation of the Transactions.

               (b) Franchise Trade Secrets. The Company or a Subsidiary owns all
                   -----------------------
     trade secrets which are used in the business of the Company and its
     Subsidiaries, and has not and prior to Closing shall not have sold,
     assigned, transferred, conveyed, or otherwise disposed of or agreed to
     sell, assign, transfer, convey, or otherwise dispose of any of the trade
     secrets, except for licenses granted to franchisees pursuant to the
     Franchise Agreements, for fair consideration in the ordinary course of
     business consistent with prior practices. All reasonable precautions have
     been taken and will be taken prior to Closing, by the Company to protect
     such trade secrets from usage by or disclosure to any unauthorized Person.

          4.20 Title to Assets. The Company and each of its Subsidiaries owns or
leases all tangible personal property necessary for the conduct of its business
as presently conducted. Each such asset has been maintained in accordance with
ordinary industry practice, is in good operating condition and is usable in the
ordinary course of business, other than where any such failures individually or
in the aggregate would not reasonably be expected to have a Material Adverse
Effect on the Company or such Subsidiary. The Company and each of its
Subsidiaries have good and valid leasehold title to all leased tangible personal
property leased by them from third parties, free and clear of all liens,
security interests and other Encumbrances except for such imperfections of title
which individually or in the aggregate would not reasonably be expected to cause
a Material Adverse Effect on the Company or such Subsidiary and except for
Encumbrances arising under documents listed on Schedule 4.20.
                                               -------------

          4.21 Inventory. The value at which the inventory of the Company is
carried on the Company's Balance Sheet (attached hereto as part of Schedule 4.8)
                                                                   ------------
reflects the customary inventory valuation policy of the Company and is in
accordance with GAAP consistently applied. The current inventory of the Company
and its Subsidiaries consists of items of a

                                       18

<PAGE>

quantity and quality which are usable and saleable in the ordinary course of
business except to the extent deviations in such quality or quantity could not
have, individually or in the aggregate, a Material Adverse Effect on the Company
and its Subsidiaries taken as a whole.

          4.22 Accounts and Notes Receivable. With the exception of the accounts
receivable included on Schedule 4.22, all accounts receivable of the Company are
                       -------------
collectible at the aggregate recorded amounts thereof, net of any applicable
reserves for doubtful accounts, which reserves are adequate and were calculated
consistent with past practices. There are no refunds, rebates, discounts or
other adjustments payable with respect to accounts receivables except in the
ordinary course of business consistent with past practices.

          4.23 Taxes.

               (a) Subject to subsection (b) hereof and except as set forth in
     Schedule 4.23, since November 24, 1998:
     -------------

                    (i) The Company and each Subsidiary has paid all federal,
          state, local and foreign income, alternative, add-on, gross receipts,
          franchise, payroll, F.I.C.A., unemployment, withholding, real
          property, personal property, admissions, gains, replacement, sales,
          use, excise, payroll, disability and other taxes imposed on the
          Company or such Subsidiary or with respect to any of its properties,
          or otherwise payable by it, including interest, penalties and other
          additions, if any, in respect thereof (collectively, "Company Taxes"),
                                                                -------------
          which were due and payable on or prior to the Closing Date.

                    (ii) Without limiting the foregoing representations in any
          way, (i) the Company and each Subsidiary has collected all sales, use
          and value added taxes required to be collected, and has remitted, or
          will remit on a timely basis, such amounts to the appropriate
          Governmental Bodies and has furnished properly completed exemption
          certificates for all exempt transactions and (ii) the Company and each
          Subsidiary has properly withheld income and social security or other
          similar taxes and paid payroll taxes with respect to all Persons
          properly characterized as employees for federal, state or local tax
          purposes.

                    (iii) The Company and each Subsidiary has timely filed all
          returns, reports and other filings related to Company Taxes which it
          is required to file and has paid all the amounts shown to be due
          thereon. All such returns, reports and filings are true and correct
          and complete. Neither the Company nor any Subsidiary is required to
          file returns, reports or filings in any state or local or foreign
          jurisdiction for any tax period except in those state, local or
          foreign jurisdictions in which it has filed.

                    (iv) No audit, examination, action or Proceeding is pending
          or, to the Knowledge of the Company, Threatened by any Governmental
          Body with respect to the possible assessment or collection from the
          Company or any Subsidiary of any Company Taxes, no unresolved claim
          for assessment or

                                       19

<PAGE>

          collection of any Company Taxes has been asserted against the Company
          or any Subsidiary, and all resolved assessments of Company Taxes have
          been paid.

                    (v)    There are no liens for Company Taxes (other than for
          current Company Taxes not yet due and payable) upon the assets of the
          Company or any Subsidiary.

                    (vi)   Neither the Company nor any Subsidiary is a party to
          or bound by any tax sharing, tax indemnity or tax allocation agreement
          or other similar arrangement.

                    (vii)  Neither the Company nor any Subsidiary has taken any
          action that would require an adjustment pursuant to Section 481 of the
          Code by reason of a change in accounting method or otherwise.

                    (viii) Neither the Company nor any Subsidiary has filed a
          consent under Section 341(f)(1) of the Code or agreed to have the
          provisions of Section 341(f)(2) of the Code apply to any disposition
          of "subsection (f) assets" as such term is defined in Section
          341(f)(4) of the Code.

                    (ix)   Neither the Company nor any Subsidiary has made any
          payments, is obligated to make any payments or is a party to any
          agreement or agreements that, individually or collectively, provide
          for the payment by the Company of any amount (i) that is not
          deductible under Section 162(a)(1) or 404 of the Code or (ii) that is
          an "excess parachute payment" pursuant to Section 280G of the Code.

                    (x)    Neither the Company nor any Subsidiary has agreed to
          any extension of any applicable statute of limitations for the
          imposition of any Company Tax.

                    (xi)   Neither the Company nor any Subsidiary is an "S
          corporation" within the meaning of Section 1361(a) of the Code.

               (b) All representations in Section 4.23(a) hereof, with respect
     to state and local Company Taxes are true and correct except to the extent
     any exceptions to the truth or correctness of such representations would
     not reasonably be expected to have, individually or in the aggregate, a
     Material Adverse Effect on the Company or any Subsidiary.

               (c) All Company Taxes and related fees shall be accrued for in
     the Balance Sheet and the Pre-Closing Financial Statements.

          4.24 Environmental Laws and Regulations.

               (a) For the purposes of this section, the following words and
     phrases shall have the following meanings:

                                       20

<PAGE>

               "Environmental Condition" means any condition relating to the
                -----------------------
presence, release, threat of release, transportation, disposal, storage or
treatment of Hazardous Materials in, at, on, under or about (i) the Real
Property (as defined below), or (ii) the environment beyond the Real Property,
which Hazardous Materials migrated, emanated or originated from the Real
Property.

               "Environmental Law" means any environmental or health and
                -----------------
safety-related law, policy, regulation, rule, requirement, statute, ordinance,
common law decision, Order or determination of any Governmental Body or judicial
authority at the federal, state, or local level, whether existing as of the date
hereof, previously enforced or subsequently enacted.

               "Hazardous Material" means any pollutant, contaminant, toxic
                ------------------
substance, hazardous waste, hazardous material, hazardous substance, petroleum
or petroleum product, asbestos, polychlorinated biphenyls, underground storage
tanks and the contents thereof including, without limitation, any such materials
defined in or regulated pursuant to any Environmental Law.

               "Real Property" means any real property or "facility" (as defined
                -------------
in the Resource Conservation and Recovery Act, 42 U.S.C. ss. 6901 et seq.
("RCRA")) currently or formerly owned, operated, leased or occupied by the
Company.

               (b) Except as set forth on Schedule 4.24(b), the Company and its
                                          ----------------
     Subsidiaries have no Liability under, and are in compliance with, all
     Environmental Laws applicable to the Company's and such Subsidiaries'
     respective businesses, the Real Property and any facilities and operations
     thereon, except for such Liabilities and except for such noncompliance
     which would not have, individually or in the aggregate, a Material Adverse
     Effect on the Company or any Subsidiary. Except as set forth on Schedule
                                                                     --------
     4.24(b), (i) to the Knowledge of the Company, each Real Property is in
     -------
     compliance with all Environmental Laws, except where the failure to so
     comply would not have, individually or in the aggregate, a Material Adverse
     Effect on the Company or any Subsidiary and (ii) to the Knowledge of the
     Company, there are no Hazardous Materials located in, under or about any
     Real Property, except for such Hazardous Materials which individually or in
     the aggregate would not have a Material Adverse Effect on the Company or
     any Subsidiary.

               (c) (i) Neither the Company nor any Subsidiary has caused an
     Environmental Condition that could, individually or in the aggregate, have
     a Material Adverse Effect on the Company or such Subsidiary and (ii) to the
     Company's Knowledge, there are no Environmental Conditions that could,
     individually or in the aggregate, have a Material Adverse Effect on the
     Company or any Subsidiary.

          4.25 Board of Directors Approval. The Board has unanimously approved
the Transactions and has unanimously determined that such Transactions are fair
to and in the best interests of the Company and its shareholders. Such actions
of the Board remain in full force and effect.

                                       21

<PAGE>

          4.26 No Agreements to Sell the Company. Except as contemplated by this
Agreement and pursuant to stock options and warrants relating to the purchase of
up to 502,124.50 and 112,500 shares of common stock of the company,
respectively, the Company does not have any legal obligation, absolute or
contingent, to any other Person to sell any capital stock or material assets or
businesses of the Company or any Subsidiary or to effect any merger,
consolidation, liquidation, dissolution, recapitalization or other
reorganization of the Company or to enter into any agreement with respect
thereto.

          4.27 Related Party Transactions. Except as set forth on Schedule 4.27,
                                                                  -------------
no employee, officer, or director of the Company or any Subsidiary or, to the
Knowledge of the Company, no Affiliate of any such Person, and no member of such
Person's immediate family has engaged in any transaction with or entered into
any Contract with, the Company or any Subsidiary. Except as set forth on
Schedule 4.27, no officer or director of the Company or any Subsidiary or, to
-------------
the Knowledge of the Company, no Affiliate of any such Person, and no member of
such Person's immediate family has had any interest in any property (whether
real, personal, or mixed and whether tangible or intangible), used in or
pertaining to the businesses of the Company or any Subsidiary. Except as set
forth on Schedule 4.27, no officer, or employee-director of the Company or any
         -------------
Subsidiary or, to the Knowledge of the Company, no Affiliate of any such Person,
and no member of such Person's immediate family has owned (of record or as a
beneficial owner), an equity interest or any other financial or profit interest
in, a Person that has engaged in competition with the Company or any Subsidiary
with respect to any line of the products or services of the Company or such
Subsidiary in any market presently served by the Company or such Subsidiary
excluding interests in publicly traded companies of less than 1% of the
outstanding equity of such company.

          4.28 No Finders or Brokers. The Company has not incurred any
obligation or liability, contingent or otherwise, for brokerage or finders' fees
or agents' commissions or other similar payment in connection with this
Agreement or any of the Transactions.

          4.29 Labor Matters(a) Neither the Company nor any Subsidiary is a
     party to or bound by any collective bargaining agreement or other Contracts
     with labor unions. The Company and each Subsidiary has complied in all
     respects with all Legal Requirements, Orders or Contracts affecting
     employment, nondiscrimination, immigration, collective bargaining, equal
     opportunity employment, the payment of social security and similar taxes,
     occupational safety and health or employees' benefits, health, safety,
     welfare, wages and hours, except where the default or violation of such
     Legal Requirements, Orders or Contracts could not have, individually or in
     the aggregate, a Material Adverse Effect on the Company or any Subsidiary.

               (b) Except as could not have, individually or in the aggregate, a
     Material Adverse Effect on the Company or any Subsidiary: (i) there are no
     labor disputes pending or existing, or to the Company's Knowledge,
     Threatened, involving strikes, slow-downs, picketing, work stoppages,
     employee grievance processes, job actions or lockouts of any employees of
     the Company, (ii) there are no Proceedings against or affecting the Company
     or any Subsidiary relating to the alleged violation of any Legal
     Requirement pertaining to labor relations or employment matters, including
     any charge, petition or complaint filed by an employee or union with the
     National Labor

                                       22

<PAGE>

     Relations Board, the Equal Employment Opportunity Commission, or any
     comparable Governmental Body, and (iii) no demand for recognition
     heretofore made by any labor organization is pending with respect to the
     Company or any Subsidiary. No event has occurred or circumstance exists
     that could provide the basis for any work stoppage or other labor dispute.

          4.30 Full Disclosure. No representation or warranty by the Company
contained in this Agreement or any Transaction Document, and no statement
contained in the Schedules hereto, contains any untrue statement of material
fact or, omits to state any material fact necessary to make the statements
herein or therein, in light of the circumstances under which they were made, not
misleading. There is no fact known to the Company, which the Company has not
disclosed to the Buyers in writing, which has a Material Adverse Effect on the
Company or any Subsidiary or insofar as the Company can reasonably foresee, will
have a Material Adverse Effect on the Company or any Subsidiary.

                                   ARTICLE V.
                              CONDITIONS PRECEDENT

          5.1 Conditions to the Obligations of the Company. The obligations of
the Company to effect the transactions contemplated by this Agreement shall be
subject to the fulfillment at or prior to the Closing Date of the following
additional conditions:

               (a) Buyer's Performance of Obligations. The Buyers shall have
                   ----------------------------------
     performed in all respects their obligations under this Agreement required
     to be performed by them on or prior to the Closing Date pursuant to the
     terms hereof.

               (b) Accuracy of Representations and Warranties. The
                   ------------------------------------------
     representations and warranties of the Buyers contained in this Agreement
     shall be true and correct in all respects at and as of the Closing Date as
     if made at and as of such date, except to the extent that any such
     representation or warranty is made as of a specified date in which case
     such representation or warranty shall have been true and correct as of such
     date.

               (c) Authorization by the Buyers. Where applicable, all actions
                   ---------------------------
     necessary to authorize the execution, delivery and performance of this
     Agreement by the Buyers, and the consummation of the transactions
     contemplated herein, shall have been duly and validly taken.

          5.2 Conditions to the Obligations of the Buyers. The obligations of
the Buyers to effect the transactions contemplated by this Agreement shall be
subject to the fulfillment at or prior to the Closing Date of the following
additional conditions:

               (a) The Company's Performance of Obligations. The Company shall
                   ----------------------------------------
     have performed in all respects its obligations under this Agreement
     required to be performed by it on or prior to the Closing Date pursuant to
     the terms hereof.

               (b) Accuracy of Representations and Warranties. The
                   ------------------------------------------
     representations and warranties of the Company contained in this Agreement
     shall be true and correct in all respects at and as of the Closing Date as
     if made at and as of such date, except to the

                                       23

<PAGE>

     extent that any such representation or warranty is made as of a specified
     date in which case such representation or warranty shall have been true and
     correct as of such date.

               (c) Authorization by the Company. All actions necessary to
                   ----------------------------
     authorize the execution, delivery and performance of this Agreement by the
     Company and its shareholders, and the consummation of the transactions
     contemplated herein, shall have been duly and validly taken.

               (d) Consents and Regulatory Approvals. All necessary waivers,
                   ---------------------------------
     Consents and approvals of any third party or Governmental Bodies necessary
     to prevent the cancellation of any material Contract, lease, permit or
     license of the Company shall have been obtained by the Company and the
     Company shall have obtained all waivers, estoppels, non-disturbance
     agreements, Consents and approvals (including, without limitation, Consents
     required under any leases and Contracts) required by the Buyers.

               (e) Amendment of Articles. The Board and the shareholders of the
                   ---------------------
     Company shall have approved, and the Company shall have filed, the
     Certificate with the California Secretary of State.

               (f) Other Instruments. The Buyers shall have received such other
                   -----------------
     duly and validly executed documents and instruments in connection with the
     Closing as are reasonably requested by them.

                                   ARTICLE VI.
                                  POST CLOSING

          6.1 Survival of Representations and Warranties. Regardless of any
investigation at any time made by or on behalf of any party, or of any
information any party may have in respect thereof, all representations and
warranties made hereunder or pursuant hereto or in connection with the
Transactions shall survive the Closing Date for a period of twenty-four (24)
months from the Closing Date; provided, however, all representations and
                              --------  -------
warranties with respect to Sections 4.12, 4.23 and 4.24 shall survive the
Closing Date until the close of business on the day following the expiration of
the applicable statute of limitations (giving effect to any waiver or extension
thereof); and provided further, that the representations and warranties
contained in Sections 4.3 shall survive indefinitely (each, a "Survival Date").
                                                               -------------

          6.2 Directors and Officers' Insurance. The Company shall use
reasonable best efforts to maintain in force a policy of directors and officers
liability insurance reasonably satisfactory to the directors.

          6.3 Audited Financial Statements. The Company shall deliver to the
Buyers no later than May 31, 2000 audited financial statements for the fiscal
year ended January 3, 2000.

          6.4 Foreign Qualifications. The Company shall cause Baja Fresh
Westlake Village to become duly qualified to do business in Nevada, Arizona,
Colorado, Illinois, Maryland and the District of Columbia no later than 30 days
after the Closing Date.

                                       24

<PAGE>

                                  ARTICLE VII.
                                  MISCELLANEOUS

          7.1 Notices. All notices and other communications given or made
pursuant hereto shall be in writing and shall be deemed to have been given or
made if in writing and delivered personally, sent by commercial carrier or
registered or certified mail (postage prepaid, return receipt requested) to the
parties at the following addresses and numbers:

               (a)   If to the Buyers to:

                     Frank M. Vest, Jr.
                     Catterton Partners IV, L.P.
                     c/o Catterton Partners IV Management Company, L.L.C.
                     10 Hale Street, Suite 205
                     Charleston, WV 25301

                     with a copy to:

                     Eric A. Stern, Esq.
                     Latham & Watkins
                     1001 Pennsylvania Ave., N.E.
                     Washington, DC  20004

               (b)   If to the Company, to:

                     Fresh Enterprises, Inc.
                     225 W. Hillcrest Drive
                     Thousand Oaks, CA  913650
                     Attention:  Greg Dollarhyde

                     with a copy to:

                     Anna M. Graves, Esq.
                     Paul, Hastings, Janofsky & Walker, LLP
                     555 South Flower Street  90071
                     Los Angeles, California

or at such other addresses as shall be furnished by the parties by like notice,
and such notice or communication shall be deemed to have been given or made as
of the date actually received.

          7.2 Headings; Agreement. The headings contained in this Agreement are
inserted for convenience only and do not constitute a part of this Agreement.
The term "Agreement" for purposes of representations and warranties hereunder
shall be deemed to include the Exhibits hereto to be executed and delivered by a
party.

          7.3 Publicity. So long as this Agreement is in effect, the Company
shall not, and shall cause their Affiliates not to, issue or cause the
publication of any press release or other

                                       25

<PAGE>

announcement with respect to the transactions contemplated by this Agreement or
this Agreement without the consent of the Buyers, which consent shall not be
unreasonably withheld or delayed.

          7.4 Entire Agreement. This Agreement (including all the Schedules and
Exhibits hereto) and the other Transaction Documents constitute the entire
agreement among the parties and supersede all other prior agreements and
understandings, both written and oral, among the parties, or any of them, with
respect to the subject matter hereof.

          7.5 Amendment. This Agreement may be amended by an instrument in
writing signed on behalf of each of the parties hereto.

          7.6 Assignment. This Agreement and all of the provisions hereof shall
be binding upon and inure to the benefits of the parties hereto and their
respective successors and permitted assigns. Neither this Agreement nor any of
the rights, interests or obligations shall be assigned by any of the parties
hereto without the prior written consent of the other parties.

          7.7 Expenses. Except as otherwise set forth herein each party, shall
bear their respective costs, expenses and fees incurred in connection with the
preparation, execution and performance of this Agreement and the other
Transaction Documents (including, but not limited to, amounts payable to
accountants, attorneys, consultants, finders or investment bankers in connection
with this Agreement and the Transactions). Notwithstanding the foregoing, the
Company shall pay the reasonable expenses of a single counsel to the Buyers to
be retained by Catterton Partners IV, L.P. in connection with the preparation,
execution and performance of this Agreement and the other Transaction Documents.

          7.8 Severability. In the event that any one or more of the provisions
contained in this Agreement or in any other instrument referred to herein,
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, then to the maximum extent permitted by law, such invalidity,
illegality or unenforceability shall not affect any other provision of this
Agreement or any other such instrument.

          7.9 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Agreement by telecopier shall be
effective as delivery of a manually executed counterpart, with original
signatures, of this Agreement.

          7.10 Governing Law. The validity and interpretation of this Agreement
shall be governed by the laws of the State of California without reference to
the conflict of laws principles thereof.

          7.11 Cumulative Remedies. All rights and remedies of any party hereto
are cumulative of each other and of every other right or remedy such party may
otherwise have at law or inequity, and the exercise of one or more rights or
remedies shall not prejudice or impair the concurrent or subsequent exercise of
other rights or remedies.

                                       26

<PAGE>

          7.12 Third Party Beneficiaries. This Agreement is not intended to
confer upon any other Person any rights or remedies hereunder.

          7.13 Limitation of Liability. In no event shall any partner or
representative of the Buyers or of any partnership which is a partner of the
Buyers or any partner of any such partnership, or any direct or indirect
stockholder, officer, director, partner or any other such Person, be personally
liable for any such obligation of the Buyers under this Agreement. In no event
shall recourse with respect to the obligations under this Agreement of the
Buyers be had to the assets or business of any Person other than the Buyers. In
no event shall recourse with respect to the obligations under this Agreement of
the Company be had to the assets or business of any Person other than the
Company, including its Subsidiaries. In no event shall any officer, director or
shareholder (and their officers, directors, representatives and agents) of the
Company be personally liable for any obligation of the Company under this
Agreement. Any obligation of any trust shall be enforceable solely against the
assets of such trust and not against any trustee.

          7.14 Arbitration. All disputes and controversies arising out
of or relating to this Agreement, or relating to a Breach hereof shall be
settled by arbitration conducted in Los Angeles, California in accordance with
the Commercial Arbitration Rules of the American Arbitration Association then in
effect. The award rendered by the arbitrator(s) shall be final and judgment upon
the award rendered by the arbitrator(s) may be entered upon it in any court
having jurisdiction thereof or application may be made to such court for a
judicial acceptance of the award and an order of judgment. The arbitrator(s)
shall possess the powers to issue mandatory orders and restraining orders in
connection with such arbitration. Each party shall bear its own costs and
expenses of the arbitration, subject to reimbursement as determined by the
arbitrator(s).

                                       27

<PAGE>

          IN WITNESS WHEREOF, each of the Buyers and the Company have caused
this Recapitalization Agreement to be signed by an officer or partner thereunto
duly authorized, all as of the date first written above.

COMPANY:                     FRESH ENTERPRISES, INC.

                             By: /s/ Greg Dollarhyde
                                 -----------------------------------------------
                                 Name:  Greg Dollarhyde
                                        ----------------------------------------
                                 Title: President & CEO
                                        ----------------------------------------

CATTERTON:                   CATTERTON PARTNERS IV, L.P.,
                             a Delaware limited partnership

                             By: Catterton Managing
                                 Partner IV, L.L.C.
                                 Its:   General Partner

                             By: CP4 Principals, L.L.C.
                                 Its:   Managing Member

                             By: /s/ Frank M. Vest, Jr.
                                 -----------------------------------------------
                                 Name:  Frank M. Vest, Jr.
                                 Title: Authorized Person

                             CATTERTON PARTNERS IV OFFSHORE, LP.
                             a Cayman limited partnership

                             By: Catterton Managing
                                 Partner IV, L.L.C.
                                 Its:   Managing General Partner

                             By: CP4 Principals, L.L.C.
                                 Its:   Managing Member

                             By: /s/ Frank M. Vest, Jr.
                                 -----------------------------------------------
                                 Name:  Frank M. Vest, Jr.
                                 Title: Authorized Person

                                      S-1

<PAGE>

                              CATTERTON PARTNERS IV SPECIAL
                              PURPOSE, L.P. a Cayman limited partnership

                              By: Catterton Managing
                                  Partner IV, L.L.C.
                                  Its:   Managing General Partner

                              By: CP4 Principals, L.L.C.
                                  Its:   Managing Member

                              By: /s/ Frank M. Vest, Jr.
                                  ----------------------------------------------
                                  Name:  Frank M. Vest, Jr.
                                  Title: Authorized Person

                              CATTERTON-BAJA PARTNERS, L.L.C.,
                              a Delaware limited liability company

                              By: Catterton Partners IV Management
                                  Company, L.L.C.
                                  Its:   Managing Member

                              By  /s/ Frank M. Vest, Jr.
                                  ----------------------------------------------
                                  Name:  Frank M. Vest Jr.
                                  Title: Authorized Person

GRUMMAN HILL:                 GRUMMAN HILL INVESTMENTS III, L.P.,
                              a Delaware limited partnership

                              By: Grumman Hill Group, L.L.C.
                                  Its:   General Partner

                                  /s/ N. Elizabeth Fath
                                  ----------------------------------------------
                                  Name:  N. Elizabeth Fath
                                  Title: Authorized Person

                                      S-2

<PAGE>

OAK INVESTMENT:                  OAK INVESTMENT PARTNERS VIII, LIMITED
                                 PARTNERSHIP, a Delaware limited partnership

                                 By: /s/ Gerald R. Gallagher
                                     -------------------------------------------
                                     Name:  Gerald R. Gallagher
                                     Title: Managing Member of
                                            Oak Associates VIII, LLC,
                                            The General Partner of
                                            Oak Investment Partners VIII,
                                            Limited Partnership

                                 OAK VIII AFFILIATES FUND, LIMITED
                                 PARTNERSHIP, a Delaware limited partnership

                                 By: /s/ Gerald R. Gallagher
                                     -------------------------------------------
                                     Name:  Gerald R. Gallagher
                                     Title: Managing Member of
                                            Oak Associates VIII, LLC,
                                            The General Partner of
                                            Oak VIII Affiliates Fund, Limited
                                            Partnership

                                 DAVE & DIANE JOHNSON LIVING TRUST

                                     /s/ Dave Johnson
                                     -------------------------------------------
                                     Dave Johnson, Trustee

                                     /s/ Diane D. Johnson
                                     -------------------------------------------
                                     Diane D. Johnson, Trustee

                                      S-3

<PAGE>

                                /s/ Cyrus Monroe
                                --------------------------------
                                CYRUS MONROE

                                /s/ Jill Monroe
                                --------------------------------
                                JILL MONROE

                                /s/ Patrick J. McNeela
                                --------------------------------
                                PATRICK J. MCNEELA

                                /s/ Wolfe H. Bragin
                                --------------------------------
                                WOLFE H. BRAGIN

                                /s/ Louis A. Siracusa
                                --------------------------------
                                LOUIS A. SIRACUSA, individually and as trustee
                                of the Louis A. Siracusa Separate Property Trust

                                /s/ Donald D. Breen
                                --------------------------------
                                DONALD D. BREEN

                                /s/ Greg Dollarhyde
                                --------------------------------
                                GREG DOLLARHYDE

                                THE HARRY & JUDITH KEYS FAMILY TRUST

                                         /s/ Harry E. Keys
                                         --------------------------------
                                         Harry E. Keys, Trustee

                                         /s/ Judith A. Keys
                                         ---------------------------------
                                         Judith A. Keys, Trustee

                                       S-4

<PAGE>

                                   Schedule 1
                                   ----------

Catterton Partners IV, L.P.
Catterton Partners IV Offshore, L.P.
Catterton Partners IV Special Purpose, L.P.
Catterton-Baja Partners, L.L.C.
Grumman Hill Investments III, L.P.
Oak Investment Partners VIII, L.P.
Oak VIII Affiliates Fund, L.P.
Dave & Diane Johnson Living Trust
Cyrus Monroe
Patrick J. McNeela
Wolfe H. Bragin
Louis A. Siracusa
Donald D. Breen
Greg Dollarhyde
JKG Enterprise Group Money Purchase Pension Plan FBO Greg Dollarhyde
The Harry & Judith Keys Family Trust<PAGE>
                                                                   EXHIBIT 10.30

                            STOCK PURCHASE AGREEMENT

                           Dated as of October 2, 2001

                                      among

                             FRESH ENTERPRISES, INC.

                                       and

                    Those Persons listed on Schedule 1 hereto

<PAGE>

                                TABLE OF CONTENTS
                                -----------------

ARTICLE I DEFINITIONS ..............................................  1

     1.1      Defined Terms ........................................  1

ARTICLE II THE AUTHORIZATION AND SALE OF PREFERRED STOCK ...........  6

     2.1      Authorization of Preferred Stock .....................  6
     2.2      Purchase of Preferred Stock ..........................  6
     2.3      Closing ..............................................  6

ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE BUYERS ...........  6

     3.1      Authority ............................................  7
     3.2      No Violation .........................................  7
     3.3      Disclosure of Information ............................  7
     3.4      Investment Experience ................................  7
     3.5      Accredited Investors .................................  7
     3.6      Exculpation Among Buyers .............................  8
     3.7      Legends ..............................................  8

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY ...........  8

     4.1      Corporate Organization ...............................  8
     4.2      Subsidiaries and Investments .........................  8
     4.3      Capital Stock ........................................  9
     4.4      Issuance of Shares ...................................  9
     4.5      Authority ............................................ 10
     4.6      No Violation ......................................... 10
     4.7      Litigation ........................................... 11
     4.8      Financial Statements ................................. 11
     4.9      No Undisclosed Liabilities ........................... 11
     4.10     Absence of Certain Changes or Events ................. 11
     4.11     Insurance ............................................ 13
     4.12     Employee Benefits .................................... 13
     4.13     Material Contracts and Other Agreements .............. 14
     4.14     Suppliers ............................................ 14
     4.15     Leased Property ...................................... 14
     4.16     Condition and Sufficiency of Assets .................. 15
     4.17     Compliance with Laws ................................. 15
     4.18     Licenses and Permits; Franchise Matters  ............. 15
     4.19     Intellectual Property  ............................... 18
     4.20     Title to Assets ...................................... 18
     4.21     Inventory ............................................ 19
     4.22     Accounts and Notes Receivable ........................ 19

                                      -i-

<PAGE>

    4.23     Taxes ................................................. 19
    4.24     Environmental Laws and Regulations .................... 21
    4.25     Board of Directors Approval ........................... 21
    4.26     No Agreements to Sell the Company ..................... 22
    4.27     Related Party Transactions ............................ 22
    4.28     No Finders or Brokers ................................. 22
    4.29     Labor Matters ......................................... 22
    4.30     Full Disclosure ....................................... 23

ARTICLE V CONDITIONS PRECEDENT ..................................... 23

    5.1      Conditions to the Obligations of the Company .......... 23
    5.2      Conditions to the Obligations of the Buyers ........... 23

ARTICLE VI POST CLOSING ............................................ 25

    6.1      Survival of Representations and Warranties ............ 25
    6.2      Directors and Officers' Insurance ..................... 25
    6.3      California Securities Filing .......................... 25

ARTICLE VII MISCELLANEOUS .......................................... 25

    7.1      Notices ............................................... 25
    7.2      Headings; Agreement ................................... 26
    7.3      Publicity ............................................. 26
    7.4      Entire Agreement ...................................... 26
    7.5      Amendment ............................................. 26
    7.6      Assignment ............................................ 26
    7.7      Expenses .............................................. 27
    7.8      Severability .......................................... 27
    7.9      Counterparts .......................................... 27
    7.10     Governing Law ......................................... 27
    7.11     Cumulative Remedies ................................... 27
    7.12     Third Party Beneficiaries ............................. 27
    7.13     Limitation of Liability ............................... 27
    7.14     Arbitration ........................................... 27

                                      -ii-

<PAGE>

                            STOCK PURCHASE AGREEMENT
                            ------------------------

     STOCK PURCHASE AGREEMENT (this "Agreement") dated as of October 2, 2001
                                     ---------
among Fresh Enterprises, Inc., a California corporation (the "Company") and
                                                              -------
those Persons listed on Schedule 1 hereto (collectively, the "Buyers" and
                        ----------                            ------
individually a "Buyer").
                -----

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

                                   ARTICLE I
                                  DEFINITIONS

     1.1  Defined Terms
          -------------

     "Accounts Payable" shall mean accounts payable and accrued liabilities of
      ----------------
the Company and its Subsidiaries, including taxes payable, but excluding the
current portion of Funded Debt and deferred revenues.

     "Additional Buyers" shall mean those Buyers that participate in the
      -----------------
Subsequent Closing.

     "Additional Series C Shares" shall have the meaning set forth for such term
      --------------------------
in Section 2.2.

     "Affiliate" shall have the meaning set forth for such term in the
      ---------
Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder. Without limiting the foregoing, all directors and officers of a
Person that is a corporation shall be deemed Affiliates of such Person for all
purposes hereunder.

     "Aggregate Series C Purchase Price" shall have the meaning set forth for
      ---------------------------------
such term in Section 2.2.

     "Balance Sheet" shall have the meaning set forth for such term in Section
      -------------
4.9.

     "Benefit Plans" shall have the meaning set forth for such term in Section
      -------------
412.

     "Board" shall mean the board of directors of the Company.
      -----

     "Breach" shall mean, and a breach of a representation, warranty, covenant,
      ------
obligation or other provision of this Agreement or any Transaction Document will
be deemed to have occurred if there is or has been, any inaccuracy in or breach
of, or any failure to perform or comply with, such representation, warranty,
covenant, obligation or other provision.

     "Buyers" shall have the meaning set forth for such term in the preamble of
      ------
this Agreement.

                                       -1-

<PAGE>

     "Catterton" shall mean, collectively, Catterton Partners IV, L.P.,
      ---------
Catterton Partners IV Offshore, L.P., Catterton Partners IV Special Purpose,
L.P., Catterton Partners IV-A, L.P., Catterton Partners IV-B, L.P. and their
respective assigns and Affiliates.

     "CGCL" shall mean the General Corporation Law of the State of California.
      ----

     "Closing" shall have the meaning set forth for such term in Section 2.3.
      -------

     "Code" shall mean the Internal Revenue Code of 1986, as amended, or any
      ----
successor law.

     "Commercially Reasonable Efforts" shall mean the efforts that a reasonable
      -------------------------------
Person desirous of achieving a result would use in similar circumstances to
ensure that such result is achieved as expeditiously and effectively as
possible. Notwithstanding the foregoing, an obligation to use Commercially
Reasonable Efforts under this Agreement does not require the Person subject to
that obligation to make any payments or pay other consideration to third parties
from whom Consents are required to be obtained hereunder in exchange for receipt
of such Consents; provided, however, that such payments or consideration shall
exclude any payments or consideration which are otherwise required to be paid to
such parties.

     "Common Stock" shall have the meaning set forth for such term in Section
      ------------
2.2.

     "Company Contracts" shall have the meaning set forth for such term in
      -----------------
Section 4.13.

     "Company Stores" shall have the meaning set forth for such term in Section
      --------------
4.18.

     "Company Taxes" shall have the meaning set forth for such term in Section
      -------------
4.23.

     "Consent" shall mean any approval, consent, ratification, waiver, or other
      -------
authorization (including any Governmental Authorization).

     "Contract" shall mean any agreement, contract, obligation, promise or
      --------
undertaking (whether written or oral and whether express or implied) that is
legally binding.

     "Disposed Businesses" shall have the meaning set forth for such term in
      -------------------
Section 4.13.

     "Encumbrance" shall mean any charge, claim, condition, equitable interest,
      -----------
lien, option, pledge, security interest, right of first refusal or restriction
of any kind, including any restriction on use, voting, transfer, receipt of
income or exercise of any other attribute of ownership, which in each case is
not created by or arising under the Stockholders' Agreement.

     "ERISA" shall have the meaning set forth for such term in Section 4.12.
      -----

     "Financial Statements" shall have the meaning set forth for such term in
      --------------------
Section 4.8.

     "Franchise Agreements" shall have the meaning set forth for such term in
      --------------------
Section 4.18.

     "Franchise Laws" shall have the meaning set forth for such term in Section
      --------------
4.18.

                                       -2-

<PAGE>

     "FTC" shall have the meaning set forth for such term in Section 4.18.
      ---

     "GAAP" shall mean United States generally accepted accounting principles
      ----
and practices.

     "Governmental Authorization" shall mean any approval, Consent, license,
      --------------------------
permit, waiver or other authorization issued, granted, given or otherwise made
available by or under the authority of any Governmental Body or pursuant to any
Legal Requirement.

     "Governmental Body" shall mean any:
      -----------------

     (a) nation, state, county, city, town, village, district or other
jurisdiction of any nature;

     (b) federal, state, local, municipal, foreign or other government;

     (c) governmental or quasi-governmental authority of any nature (including
any governmental agency, branch, department, official or entity and any court or
other tribunal);

     (d) multi-national organization or body; or

     (e) body exercising, or entitled to exercise, any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or
power of any nature.

     "Hazardous Material" shall have the meaning set forth for such term in
      ------------------
Section 4.24.

     "Initial Buyers" shall mean those Buyers that participate in the Initial
      --------------
Closing.

     "Initial Closing" shall have the meaning set forth for such term in Section
      ---------------
2.3.

     "Initial Closing Date" shall have the meaning set forth for such term in
      --------------------
Section 2.3.

     "Initial Series C Shares" shall have the meaning set forth for such term in
      -----------------------
Section 2.2.

     "Knowledge" shall mean and an individual will be deemed to have "Knowledge"
      ---------
of a particular fact or other matter if such individual is actually aware of
such fact or other matter; provided that, such individual shall be required to
make a reasonable investigation of the circumstances related thereto, including
making due inquiry of other Persons who should be aware of such fact or other
matter.

     "Knowledge of the Company" or other similar phrases shall mean and include
      ------------------------
the Knowledge (provided that the Company's duty of inquiry shall be limited to
inquiry of officers, directors, employees and agents of the Company) of Louis A.
Siracusa, Greg Dollarhyde, and Donald Breen, who are respectively, the Chairman,
President and Chief Executive Officer, and Chief Financial Officer of the
Company.

     "Leased Property" shall have the meaning set forth for such term in Section
      ---------------
4.15.

     "Leases" shall have the meaning set forth for such term in Section 4.15.
      ------

                                       -3-

<PAGE>

     "Legal Requirement" shall mean any federal, state, local, municipal or
      -----------------
other administrative order, constitution, law, ordinance, principle of common
law, regulation, statute or treaty, including, without limitation, any
applicable franchise, building, zoning, health, environmental, sanitation,
safety, labor relations, immigration or other law, ordinance or regulation.

     "Liability" shall mean any direct or indirect liability, indebtedness,
      ---------
obligation, commitment, expense, claim, deficiency, deferred income, guaranty or
endorsement of or by any Person of any type, whether known, unknown, accrued,
absolute, contingent, matured or unmatured.

     "Material Adverse Effect" or "Material Adverse Change" shall mean any
      -----------------------      -----------------------
significant adverse effect or change in the condition (financial or other),
business, results of operations, liabilities or operations of any party or on
the ability of such party to consummate the Transactions, or any event or
condition which would reasonably be expected to, with the passage of time,
constitute a "Material Adverse Effect" or "Material Adverse Change"; provided,
              -----------------------      -----------------------   --------
however, that a Material Adverse Change shall not include changes, generally, in
-------
economic conditions or the restaurant industry.

     "Order" shall mean any award, decision, injunction, judgment, order,
      -----
ruling, subpoena or verdict entered, issued, made or rendered by any court,
administrative agency or other Governmental Body or by any arbitrator.

     "Organizational Documents" shall mean (a) the articles or certificate of
      ------------------------
incorporation, all certificates of determination and designation, and the bylaws
of a corporation; (b) the partnership agreement and any statement of partnership
of a general partnership; (c) the limited partnership agreement and the
certificate or articles of limited partnership of a limited partnership; (d) the
operating agreement, limited liability company agreement and the certificate or
articles of organization or formation of a limited liability company; (e) any
charter or similar document adopted or filed in connection with the creation,
formation or organization of a Person; and (f) any amendment to any of the
foregoing.

     "Person" shall mean any individual, corporation (including any non-profit
      ------
corporation), general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization, labor union or other entity
or Governmental Body.

     "Proceeding" shall mean any action, arbitration, audit, hearing,
      ----------
investigation, litigation or suit (whether civil, criminal, administrative,
investigative or informal) commenced, brought, conducted or heard by or before,
or otherwise involving, any Governmental Body or arbitrator.

     "Proprietary Rights" shall have the meaning set forth for such term in
      ------------------
Section 4.19.

     "RCRA" shall have the meaning set forth for such term in Section 4.24.
      ----

     "Real Property" shall have the meaning set forth for such term in Section
      -------------
4.24.

                                       -4-

<PAGE>

     "Registration Rights Agreement" shall mean that certain Registration Rights
      -----------------------------
Agreement between the Company and certain of its shareholders dated November 24,
1998, as amended to date.

     "Representative" shall mean any officer, director, principal, stockholder,
      --------------
partner, attorney, accountant, adviser, agent, employee or other representative.

     "Required Permits" shall have the meaning set forth for such term in
      ----------------
Section 5.24.

     "Securities Act" shall mean the Securities Act of 1933, as amended, and the
      --------------
rules and regulations promulgated thereunder or any successor law.

     "Senior Credit Facility" shall mean the Business Loan Agreement, dated
      ----------------------
December 12, 2000, among Fresh Enterprises, Inc. and Baja Fresh Westlake
Village, Inc., as Borrower, Triune Corporation, as Guarantor, and Western
Financial Bank, as Lender.

     "Series A Shares" shall mean the 2,727,941 shares of Series A Convertible
      ---------------
Preferred Stock of the Company.

     "Series B Shares" shall mean the 2,153,507 shares of Series B Convertible
      ---------------
Preferred Stock of the Company.

     "Series C Shares" shall have the meaning set forth for such term in Section
      ---------------
2.2.

     "Series C Stock" shall have the meaning set forth for such term in Section
      --------------
2.1.

     "Shareholders' Agreement" shall mean that certain Amended and Restated
      -----------------------
Shareholders' Agreement dated as of the date hereof, between the Company and the
holders of the capital stock of the Company.

     "Subsequent Closing" shall have the meaning set forth for such term in
      ------------------
Section 2.3.

     "Subsequent Closing Date" shall have the meaning set forth for such term in
      -----------------------
Section 2.3.

     "Subsidiary" shall have the meaning set forth for such term in Section 4.2.
      ----------

     "Threatened" shall describe any claim, Proceeding, dispute, action or other
      ----------
matter if any demand, notice or statement has been received or deemed to be
received (orally or in writing) with respect to such claim, Proceeding, dispute,
action or other matter.

     "Transaction Documents" shall mean this Agreement, the Shareholders
      ---------------------
Agreement and the Registration Rights Agreement.

     "Transactions" shall mean the transactions contemplated by the Transaction
      ------------
Documents.

                                       -5-

<PAGE>

                                   ARTICLE II
                  THE AUTHORIZATION AND SALE OF PREFERRED STOCK

     2.1 Authorization of Preferred Stock. Prior to the Initial Closing, the
         --------------------------------
Company will file with the California Secretary of State an Amended and Restated
Articles of Incorporation, which, inter alia, sets forth the rights, powers,
                                  ----- ----
preferences, qualifications, limitations and restrictions of the Company's
Series C Convertible Preferred Stock ("Series C Stock") in a form and substance
                                       --------------
satisfactory to the Buyers (the "Restated Articles").

     2.2 Purchase of Preferred Stock. Subject to the terms and conditions of
         ---------------------------
this Agreement, the Initial Buyers agree to purchase from the Company and the
Company agrees to sell to the Initial Buyers at the Initial Closing, 1,328,794
shares (the "Initial Series C Shares") of Series C Stock of the Company free and
             -----------------------
clear of all Encumbrances. Each of the Initial Buyers shall purchase the Initial
Series C Shares listed opposite such Initial Buyer's name on Exhibit B attached
                                                             ---------
hereto. Subject to the terms and conditions of this Agreement, the Additional
Buyers agree to purchase from the Company and the Company agrees to sell to the
Additional Buyers at the Subsequent Closing, up to 22,611 additional shares (the
"Additional Series C Shares") of Series C Stock of the Company free and clear of
 --------------------------
all Encumbrances. Each of the Additional Buyers shall become parties hereto by
signing counterpart signature pages, and shall purchase the Additional Series C
Shares listed opposite such Additional Buyer's name on the amended Exhibit B
which shall be attached hereto on or before the Subsequent Closing. The purchase
price for each Initial Series C Share and each Additional Series C Share
(collectively, the "Series C Shares") shall be an amount equal to $9.25,
                    ---------------
constituting an aggregate purchase price of up to Twelve Million Five Hundred
Thousand Four Hundred Ninety-Six and 25/100's Dollars ($12,500,496.25) (the
"Aggregate Series C Purchase Price").
 ---------------------------------

     2.3 Closing. The initial closing of the sale to and purchase by the Initial
         -------
Buyers of the Initial Series C Shares (the "Initial Closing") shall occur at the
                                            ---------------
offices of Pillsbury Winthrop LLP, 725 South Figueroa Street, Los Angeles,
California at 10:00 a.m. local time on October 2, 2001 or at such other date,
place or time of day as the Initial Buyers and the Company shall agree to in
writing (the "Initial Closing Date"). The subsequent closing of the sale to and
              --------------------
purchase by the Additional Buyers of the Additional Series C Shares (the
"Subsequent Closing") shall occur at the same place thirty (30) days after the
 ------------------
Initial Closing at 10:00 a.m. local time, or at such earlier date, place or time
of day as the Additional Buyers and the Company shall agree to in writing (the
"Subsequent Closing Date"). At the Initial Closing and the Subsequent Closing
 -----------------------
(each a "Closing"), (i) the Company shall deliver to each Buyer certificates
         -------
evidencing the Series C Shares being purchased by such Buyer, free and clear of
any Encumbrances of any nature whatsoever registered in such Buyer's name, and
(ii) each Buyer shall deliver to the Company the portion of the Purchase Price
listed next to such Buyer's name on Exhibit B hereto, by check or wire transfer
                                    ---------
of immediately available funds or, in the case of Gregory Dollarhyde and Donald
Breen, by a promissory note in a form acceptable to the Buyers purchasing a
majority of the Series C Shares at the Initial Closing.

                                  ARTICLE III
                  REPRESENTATIONS AND WARRANTIES OF THE BUYERS

     Each Buyer severally represents and warrants to the Company as follows:

                                       -6-

<PAGE>

     3.1 Authority. Such Buyer has full power and authority to execute and
         ---------
deliver this Agreement and to perform its obligations under this Agreement. The
execution, delivery and performance by such Buyer of this Agreement and the
consummation of the Transactions have been duly authorized by all necessary
action on the part of such Buyer. No other action on the part of such Buyer is
necessary to authorize the execution and delivery of this Agreement by such
Buyer or the performance by such Buyer of its obligations hereunder. Each of the
Transaction Documents have been duly executed and delivered by such Buyer and
constitutes a legal, valid and binding agreement of such Buyer, enforceable
against such Buyer in accordance with its terms, subject to applicable
bankruptcy, insolvency, moratorium, reorganization or similar laws affecting
creditors' rights generally and subject to general equitable principles
(regardless of whether such enforceability is considered in a Proceeding in
equity or at law).

     3.2 No Violation. Neither the execution and delivery of the Transaction
         ------------
Documents by such Buyer nor the consummation of the Transactions will (a)
violate any provision of any Legal Requirement or Order applicable to such
Buyer, (b) require the Consent or any filing with any Person or Governmental
Body, except as permitted by Section 500 et seq. of the CGCL, (c) violate,
                                         -- ---
result (with or without notice or the passage of time, or both) in a Breach of,
or give rise to the right to terminate, accelerate or cancel any obligation
under, or require the payment of any fee, or constitute (with or without notice
or the passage of time, or both) a default under, any of the terms or provisions
of (i) the Organizational Documents of such Buyer, or (ii) any indenture,
mortgage, lien, Order, judgment, ordinance, regulation, decree, license, permit
or other Contract or instrument to which such Buyer is subject or bound, (d)
result in the creation of any Encumbrance upon any property of such Buyer which
could have, individually or in the aggregate, a Material Adverse Effect on such
Buyer, or (e) with respect to such Buyer, result in a termination, loss or
adverse modification of any license, permit, certificate or Contract granted to
or otherwise held by such Buyer except (in the case of clauses (a) and (c)(ii))
for such violations, Breaches and defaults which could not have, individually or
in the aggregate, a Material Adverse Effect on such Buyer or to interfere in any
material way with the consummation of the Transactions.

     3.3 Disclosure of Information. Such Buyer has conducted and shall continue
         -------------------------
to conduct due diligence. Notwithstanding the foregoing, nothing in this Section
3.3 shall, or shall be deemed to, modify, waive, qualify or in any way negate
the representations and warranties of the Company set forth herein.

     3.4 Investment Experience. Such Buyer is an investor in securities of
         ---------------------
companies in the development stage, is able to bear the economic risk of this
investment, and has such knowledge and experience in financial and business
matters that such Buyer is capable of evaluating the merits and risks of the
investment in the securities to be purchased hereunder.

     3.5 Accredited Investors. Such Buyer is an "accredited investor" within the
         --------------------
meaning of Rule 501 of Regulation D promulgated under the Securities Act. Such
Buyer is purchasing the Series C Shares pursuant to this Agreement for
investment for such Buyer's own account and not with a view to, or for resale in
connection with, any distribution thereof, within the meaning of Section 2(11)
of the Securities Act.

                                       -7-

<PAGE>

     3.6 Exculpation Among Buyers. Each Buyer acknowledges that in making its
         ------------------------
decision to invest in the Company, it is not relying on any other Buyer or upon
any person, firm or company, other than the Company and its officers, employees
and/or directors. Each Buyer agrees that no other Buyer, nor the partners,
employees, officers or controlling persons of any other Buyer shall be liable
for any actions taken by such Buyer, or omitted to be taken by such Buyer, in
connection with such investment.

     3.7 Legends. Such Buyer understands that the certificates evidencing the
         -------
securities to be purchased hereunder will bear the following legend:

     "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
     1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE
                            ---
     SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED EXCEPT IN COMPLIANCE WITH
     THE ACT AND ALL APPLICABLE STATE SECURITIES LAWS."

                                   ARTICLE IV
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company represents and warrants to the Buyers that the following
representations and warranties are, as of the date hereof, true and correct;
provided, however, that notwithstanding anything to the contrary set forth
herein, all Schedules referred to in this Article IV and attached hereto refer
only to matters in existence, or occurrences taking place, since April 28, 2000,
and any matters in existence or occurrences taking place prior to April 28, 2000
and on or after November 24, 1998 which would otherwise be required to be set
forth on a Schedule are incorporated by reference from the Schedules attached to
that certain Stock Purchase Agreement dated April 28, 2000 among the Company and
the purchasers set forth therein.

     4.1 Corporate Organization. The Company is a corporation duly organized,
         ----------------------
validly existing and in good standing under the laws of the State of California,
with all requisite corporate power and authority to own, operate and lease its
properties and assets that it now purports to own, operate or lease, to carry on
its business as it is now being conducted, and to perform its obligations under
the Transaction Documents. Except as set forth on Schedule 4.1(a), the Company
                                                  --------------
is duly qualified to do business and is in good standing under the laws of each
state or other jurisdiction in which either the nature of the activities
conducted by it or the ownership, operation or leasing of the properties and
assets owned, operated or leased by it requires such qualification and good
standing, except where the failure to be so qualified or in good standing would
not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect on the Company. Schedule 4.1(b) contains a list of jurisdictions
                               ---------------
in which the Company is qualified to do business.

     4.2 Subsidiaries and Investments. Except as set forth on Schedule 4.2, the
         ----------------------------                         ------------
Company does not own, directly or indirectly, any stock, partnership interest,
joint venture interest or other security, investment or interest in any other
corporation, partnership, association, joint venture, organization or other
entity. Each of the entities set forth in Schedule 4.2 (each a "Subsidiary" and,
                                          ------------          ----------
collectively, the "Subsidiaries") is duly organized, validly existing and in
                   ------------
good standing

                                       -8-

<PAGE>

under the laws of its organization or existence with all requisite corporate
power and authority to own, operate and lease its properties and assets that it
now purports to own, operate or lease, to carry on its business as it is now
being conducted, and to perform its obligations under the Transaction Documents
to which it is a party. Each Subsidiary is duly qualified to do business under
the laws of each state or other jurisdiction in which either the nature of the
activities conducted by it or the ownership, operation or leasing of the
properties and assets owned, operated or leased by it requires such
qualification and good standing, except where the failure to be so qualified or
in good standing would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect on such Subsidiary.

     4.3 Capital Stock. As of the date hereof the authorized capital stock of
         -------------
the Company consists and will consist in its entirety of (a) 15,000,000 shares
of Common Stock, 1,520,224.50 of which are issued and outstanding, 13,479,775.50
of which are authorized but unissued and none of which is held by the Company as
treasury shares, and (b) 15,000,000 shares of preferred stock, 2,727,941 of
which are designated as Series A Preferred Stock, 2,727,940 of which shares are
issued and outstanding, and 2,153,507 of which are designated as Series B
Preferred Stock, 2,153,507 of which shares are issued and outstanding.
Immediately following the Closings, the authorized capital stock of the Company
will consist in its entirety of (x) 15,000,000 shares of Common Stock,
1,520,224.50 of which will be issued and outstanding, and (y) 15,000,000 shares
of preferred stock, 2,727,941 of which are designated as Series A Preferred
Stock, 2,727,940 of which shares will be issued and outstanding, 2,153,507 of
which are designated as Series B Preferred Stock, 2,153,507 of which shares will
be issued and outstanding, and 1,351,405 of which are designated as Series C
Stock, 1,328,794 of which shares will be issued and outstanding after the
Initial Closing and up to 22,611 more of which will be outstanding after the
Subsequent Closing. No other class or series of preferred stock has been
authorized by the Company. All of the outstanding shares of capital stock of the
Company and its Subsidiaries have been duly authorized and validly issued and
are fully paid and non-assessable. All of the outstanding shares of capital
stock of the Company and its Subsidiaries were issued in compliance with the
Securities Act and all Legal Requirements. Other than as set forth on Schedule
                                                                      --------
4.3, there are no Contracts with respect to the voting, issuance, redemption,
---
repurchase, acquisition, sale or transfer of the capital stock or other
securities of the Company, or any securities convertible into or exchangeable
for shares of capital stock or other securities of the Company to which the
Company is a party. Except as set forth on Schedule 4.3, the Company has not
                                           ------------
granted any preemptive rights, registration rights, subscriptions, calls,
options, warrants, rights, convertible securities or other agreements or
commitments of any character relating to the issued or unissued capital stock or
other securities of the Company, or any securities convertible into or
exchangeable for shares of such capital stock or other securities of the
Company, and there are no statutory obligations of the Company to repurchase,
redeem or otherwise acquire or sell, issue or otherwise transfer any shares of
such capital stock. Schedule 4.3 sets forth the record ownership of Common
                    ------------
Stock, including the identity of each shareholder of the Company and the number
of shares of Common Stock held by such shareholder.

     4.4 Issuance of Shares. The Series C Shares to be issued at each Closing
         ------------------
will have been duly authorized, validly issued, fully paid and non-assessable
and will be free and clear of all Encumbrances.

                                       -9-

<PAGE>

     4.5 Authority. The Company has full corporate power and authority to
         ---------
execute and deliver the Transaction Documents and to perform its obligations
under such Transaction Documents. The execution, delivery and performance of the
Transaction Documents and the consummation of the Transactions have been duly
authorized by the Board, and no other corporate proceedings on the part of the
Company, its Subsidiaries or their shareholders are necessary to authorize the
execution and delivery by the Company of the Transaction Documents or to
consummate the Transactions, except those which have already been obtained. This
Agreement has been duly executed and delivered by the Company and constitutes
the legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms, subject to bankruptcy, insolvency,
moratorium, reorganization or similar laws affecting creditors' rights generally
and subject to general equitable principles (regardless of whether such
enforceability is considered in a Proceeding in equity or at law). Each of the
other Transaction Documents to be executed by the Company will be duly executed
and delivered by the Company on or prior to each Closing Date and, upon such
execution and delivery (assuming due execution and delivery by the other party
or parties thereto), will constitute a legal, valid and binding obligation of
the Company, enforceable against the Company in accordance with its terms,
except where such enforceability may be limited by bankruptcy, insolvency,
moratorium, reorganization, or similar laws affecting creditors' rights
generally and subject to general equitable principles (regardless of whether
such enforceability is considered in a Proceeding in equity or at law). The
holders of the capital stock of the Company will have the rights, preferences
and privileges set forth in the Company's Organizational Documents.

     4.6 No Violation. Neither the execution and delivery of this Agreement and
         ------------
the other Transaction Documents by the Company nor the consummation of the
Transactions will (a) violate any provision of any Legal Requirement or Order
applicable to the Company or any Subsidiary, (b) require the Consent of or any
filing with any Person or Governmental Body, except (i) as permitted by Section
500 et seq. of the CGCL, (ii) those that have been received or made prior to the
    -- ---
date hereof or (iii) the filing of a Form D with the Securities and Exchange
Commission, a notice of transaction under Section 25102(f) with the California
Secretary of State and necessary notices under applicable blue sky laws and
regulations, (c) violate, result (with or without notice or the passage of time,
or both) in a Breach of, or give rise to the right to terminate, accelerate or
cancel any obligation under, or require the payment of any fee, or constitute
(with or without notice or the passage of time, or both) a default under, any of
the terms or provisions of (i) the Organizational Documents of the Company or
any Subsidiary, or (ii) any indenture, mortgage, lien, lease, Order, judgment,
ordinance, regulation, decree, license, permit, franchise or other Contract or
instrument to which the Company or any Subsidiary is subject or bound, (d)
result in the creation of any Encumbrance upon any property of the Company or
any Subsidiary which would have, individually or in the aggregate, a Material
Adverse Effect on the Company and its Subsidiaries taken as a whole, or (e)
except as set forth on Schedule 4.6, result in a termination, loss or adverse
                       ------------
modification of any license, permit, certificate, franchise or Contract granted
to or otherwise held by the Company or any Subsidiary, except (in the case of
clauses (a), (b), (c)(ii) and (e)) for such terminations, losses, Breaches,
accelerations, cancellations or modifications which would not have, individually
or in the aggregate, a Material Adverse Effect on the Company and its
Subsidiaries taken as a whole or interfere in any material way with the
consummation of the Transactions.

                                       -10-

<PAGE>

     4.7 Litigation. Except as set forth on Schedule 4.7, there is no Proceeding
         ----------                         ------------
pending or, to the Knowledge of the Company, Threatened against the Company or
any Subsidiaries or any of their respective assets or property before any court
or Governmental Body or arbitrator, which would have, individually or in the
aggregate, a Material Adverse Effect, nor, to the Knowledge of the Company, is
there any basis for any of the foregoing. There is no Proceeding pending or, to
the Knowledge of the Company, Threatened, against the Company or any
Subsidiaries challenging the validity, timing or propriety of the Transactions.
None of the Company or any Subsidiaries or any of their assets or property is
subject to any Order, judgment, injunction or decree, which would have,
individually or in the aggregate, a Material Adverse Effect on the Company or
any Subsidiary.

     4.8 Financial Statements. True and complete copies of the Company's audited
         --------------------
consolidated financial statements for the fiscal years 1999 and 2000, together
with the report thereon of the Company's independent certified public
accountants, and the Company's unaudited consolidated financial statements for
the eight (8) periods ended August 13, 2001 (collectively, the "Financial
                                                                ---------
Statements") are set forth in Schedule 4.8. The Financial Statements were
----------                    ------------
prepared in accordance with GAAP, reflect all normal and customary year-end
audit adjustments and present, fairly and accurately, the financial position,
results of operations, income, expenses, assets, liabilities, changes in
shareholders' equity and cash flows of the Company and its Subsidiaries as of
the respective dates and for the periods indicated. The Financial Statements are
prepared in accordance with the books and records of the Company and its
Subsidiaries. At the respective dates of the Financial Statements, there were no
Liabilities, commitments or obligations (absolute, accrued, contingent or
otherwise) of the Company or any Subsidiary, which in accordance with GAAP
should have been shown or reflected in such Financial Statements or the notes
thereto which were not so reflected (it being acknowledged and understood that
footnote disclosure is not required with respect to interim financial
statements).

     4.9 No Undisclosed Liabilities. Except as set forth in Schedule 4.9,
         --------------------------                         ------------
neither the Company nor any Subsidiary has any Liabilities or obligations of any
nature (whether known or unknown, with or without the passage of time, and
whether absolute, accrued, contingent or otherwise) except for Liabilities or
obligations reflected or reserved against in the audited consolidated balance
sheet of the Company and its Subsidiaries as of January 1, 2001 (the "Balance
                                                                      -------
Sheet Date") and Liabilities incurred in the ordinary course of business since
----------
such date.

     4.10 Absence of Certain Changes or Events. Except as set forth in Schedule
          ------------------------------------                         --------
4.10, since the Balance Sheet Date, the Company and its Subsidiaries have
----
conducted their business in the ordinary course of business consistent with past
practice and there has not been any:

          (a) Material Adverse Change in the financial condition, properties
     assets, liabilities, business, operations or results of operations of the
     Company or any Subsidiary;

          (b) material addition to or modification of employee benefits plans,
     arrangements or practices;

          (c) sale, assignment or transfer of any of the material assets of the
     Company or any Subsidiary, other than in the ordinary course of business,
     consistent with past practice;

                                       -11-

<PAGE>

          (d) cancellation of any indebtedness owed to the Company or any
     Subsidiary in an aggregate amount greater than $50,000, or waiver of any
     rights of similar value to the Company or any Subsidiary relating to any of
     its business activities or properties, other than in the ordinary course of
     business;

          (e) amendment, cancellation or termination of any Contract, license or
     other instrument material to the Company or any Subsidiary;

          (f) failure to repay any material obligation of the Company or any
     Subsidiary when due;

          (g) change in accounting methods, principles or practices by the
     Company or any Subsidiary materially affecting its assets, Liabilities,
     results of operations or business;

          (h) material revaluation by the Company or any Subsidiary of any of
     its assets, including without limitation, any material write-offs, material
     increases in any reserves or any write-up of the value of inventory,
     property, plant, equipment or any other asset;

          (i) material damage, destruction or loss (whether or not covered by
     insurance) affecting any store or office maintained by the Company or any
     Subsidiary or any other material asset of the Company or any Subsidiary and
     resulting in a loss in excess of $50,000;

          (j) mortgage, pledge or other Encumbrance of any assets of the Company
     or any Subsidiary, material singly or in the aggregate;

          (k) declaration, setting aside or payment of any dividend or other
     distribution or payment (whether in cash, stock or property) with respect
     to the capital stock or other equity securities of the Company or any
     Subsidiary or any redemption, purchase or other acquisition of any of the
     securities of the Company or any Subsidiary, or any other payment to any
     shareholder of the Company or any Subsidiary in its capacity as a
     shareholder;

          (l) issuance by the Company or any Subsidiary of, or commitment by it
     to issue, any capital stock or other equity securities or obligations or
     any securities convertible into or exchangeable or exercisable for capital
     stock or other equity interests;

          (m) indebtedness for borrowed money incurred by the Company or any
     Subsidiary or any commitment to incur indebtedness for borrowed money
     entered into by the Company or any Subsidiary, or any loans made or agreed
     to be made by the Company or any Subsidiary other than as set forth on
     Schedule 4.10;
     -------------

          (n) incurrence of other Liabilities involving $100,000 or more, except
     in the ordinary course of business, or any increase or change in any
     assumptions underlying, or methods of calculating, any bad debt,
     contingency or other reserves;

                                       -12-

<PAGE>

          (o) payment, discharge or satisfaction of any Liabilities other than
     the payment, discharge or satisfaction (i) in the ordinary course of
     business, consistent with past practice, of Liabilities reserved against in
     the Financial Statements or of Liabilities incurred in the ordinary course,
     consistent with past practice or (2) of other Liabilities involving $50,000
     or less individually and $100,000 or less in the aggregate;

          (p) increase in the compensation of officers or employees (including
     any such increase pursuant to any bonus, pension, profit sharing or other
     plan or commitment) or any increase in the compensation payable or to
     become payable to any officer or employee or any severance or termination
     pay, except for increases as required by law;

          (q) granting of any bonus, incentive compensation, service award or
     other like benefit to any officer or employee except in accordance with
     plans or arrangements disclosed on Schedule 4.10; or
                                        -------------

          (r) agreement, whether oral or written, by the Company or any
     Subsidiary to do any of the foregoing;

except as expressly required by this Agreement or any Transaction Document.
------

     4.11 Insurance. Schedule 4.11 contains a list of all policies of insurance,
          ---------  -------------
surety bonds and letters of credit maintained by the Company or any Subsidiary
(showing as to each policy or binder, the carrier, coverage limits, expiration
dates, annual premiums, summary of loss experience since April 28, 2000, any
claim exceeding $50,000 and a general description of the type of coverage
provided), which list is true, complete and accurate in all material respects as
of the date hereof. To the best of the Company's Knowledge, the Company and each
of its Subsidiaries have paid all premiums due and are not otherwise in default
with respect to their respective obligations under any such policies. All of
such policies are sufficient for (i) compliance with all Legal Requirements and
Contracts, leases and other agreements to which the Company or any Subsidiary is
a party and (ii) all risks normally insured against by a Person conducting the
same business as the business conducted by the Company and its Subsidiaries,
except, in each case, where any such insufficiencies would not have,
individually or in the aggregate, a Material Adverse Effect on the Company or
such Subsidiary. Neither the Company nor any Subsidiary has failed to give any
notice or to present any material claim under any such policy or binder in a due
and timely fashion except for such failure as would not have, individually or in
the aggregate, a Material Adverse Effect on the Company or such Subsidiary.

     4.12 Employee Benefits. For purposes of this Section 4.12, the term
          -----------------
"Company" shall include any Person that, together with the Company as of any
relevant measuring date under the Employee Retirement Income Security Act of
1974, as amended ("ERISA") was or is required to be treated as a single employer
                   -----
under Code Section 414. The Company does not sponsor or contribute to any
employee benefit plan subject to ERISA, other than as identified on Schedule
                                                                    --------
4.12 hereto. None of the employee benefit plans listed on Schedule 4.12 have any
----                                                      -------------
accumulated funding deficiency within the meaning of ERISA or any liability to
the Pension Benefit Guaranty Corporation, or any successor thereof ("PBGC")
                                                                     ----
established under ERISA in connection with any employee benefit plan (or other
class of benefit which the PBGC has elected to insure) other than an obligation
to tender premium payments to the PBGC; to the Company's

                                       -13-

<PAGE>

Knowledge there have been no "reportable events" or "prohibited transactions"
with respect to any such plan, as those terms are defined in Section 4043 of
ERISA and Section 4975 of the Internal Revenue Code of 1986, as amended,
respectively; and the Company is otherwise in full compliance with the
provisions of ERISA.

     4.13 Material Contracts and Other Agreements. Schedule 4.13 discloses, as
          ---------------------------------------  -------------
of the date hereof, whether written or oral, together with all amendments and
modifications thereto, (a) obligations (contingent or otherwise) of, or payments
to, the Company or any of its subsidiaries in excess of $50,000 which are not
cancelable by the Company on less than thirty (30) days' notice, and excluding
inventory purchase orders, (b) any agreement relating to the Proprietary Rights,
(c) all employment and consulting agreements, employee benefit, bonus, pension,
profit-sharing, stock option, stock purchase and similar plans and arrangements,
and distribution and sales representative agreements, (d) all joint venture or
partnership agreements to which the Company or any Subsidiary is a party or
bound, (e) all area development agreements, letters of commitment and franchise
agreements to which the Company or any Subsidiary is a party or bound and, (f)
each collective bargaining agreement or other Contract to or with any labor
union or other employee representative of a group of employees. The foregoing
are hereinafter referred to as the "Company Contracts." With respect to each
                                    -----------------
Company Contract, (1) such Contract is valid, binding and enforceable against
the Company or a Subsidiary and, to the Company's Knowledge, each other party
thereto in accordance with its terms, subject in each case to applicable
bankruptcy, insolvency, moratorium, reorganization or similar laws affecting
creditors' rights generally and subject to general equitable principles
(regardless of whether such enforceability is considered in a Proceeding in
equity or at law); (2) neither the Company nor any Subsidiary, nor, to the
Company's Knowledge, any other party to such Contract is in material Breach
thereof or material default thereunder; (3) to the Knowledge of the Company,
there does not exist any event that, with the giving of notice or the lapse of
time or both, would, constitute a material Breach of or a material default under
such Contract, and neither the Company nor any Subsidiary has received or given
notice of any such Breach, default or event; and (4) there have been no waivers
or releases of any of the Company's or any Subsidiaries' material rights or
remedies under any of the Contracts.

     4.14 Suppliers. The Company and each of its Subsidiaries has a good
          ---------
business relationship with each of its suppliers. None of the Company's or its
Subsidiaries' suppliers has canceled or otherwise terminated, or threatened in
writing to cancel or otherwise terminate, its relationship with the Company or
any Subsidiary or, since the Balance Sheet Date, decreased materially, or
threatened to decrease or limit materially, its services, supplies or materials
to the Company or any Subsidiary except to the extent such cancellation,
decrease, termination or limitation would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on the Company or
any Subsidiary.

     4.15 Leased Property. Neither the Company nor any Subsidiary owns or, since
          ---------------
their respective inceptions, has owned, any real property or any interest in any
real property, other than leasehold interests. For purpose of this Agreement,
"Leased Property" shall mean all real property leased or otherwise operated or
 ---------------
occupied (other than as an owner) in whole or in part by the Company or any
Subsidiary. Schedule 4.15 sets forth a list of (a) all leases and subleases
            -------------
under which the Company or any Subsidiary is the lessor, lessee, operator or
occupant of any real property, and (b) all material options granted by or to the
Company or any Subsidiary or any

                                       -14-

<PAGE>

contractual obligations on the part of the Company or any Subsidiary to
purchase, acquire, sell or dispose of any interest in real property. The Company
and its Subsidiaries have good and valid leasehold title to all Leased Property,
free and clear of all Encumbrances other than Encumbrances created by the Leases
or the Senior Credit Facility. Each lease, sublease or other agreement
(collectively, the "Leases") set forth on Schedule 4.15 (or required to be set
                    ------                -------------
forth on Schedule 4.15) is in full force and effect; all rents and additional
         -------------
rents due to date on each such Lease have been paid in full; and, to the
Company's Knowledge, except as set forth on Schedule 4.15, the Company's and the
                                            -------------
Subsidiaries' lessors are not in default thereunder in any material respect and
except as set forth on Schedule 4.15, there exists no event of default or event,
                       -------------
occurrence, condition or act (including the transactions contemplated hereby)
which, with the giving of notice, the lapse of time or the happening of any
further event or condition not within the control of the Company or a
Subsidiary, would become a material default under such Lease, or would
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect on the Company or any Subsidiary. The Company and its
Subsidiaries have not violated any of the terms or conditions under any such
Lease in any material respect.

     4.16 Condition and Sufficiency of Assets. The plant, offices, structures,
          -----------------------------------
and equipment of the Company whether constituting the Company Stores or
otherwise are in good condition and repair in the ordinary course of business
and are reasonably fit and suitable for the purposes for which they are being
used and conform in all respects with all applicable Legal Requirements, except
to the extent such noncompliance would not reasonably be expected to have a
Material Adverse Effect on the Company and its Subsidiaries taken as a whole.

     4.17 Compliance with Laws. Except as set forth on Schedule 4.17, (i) the
          --------------------                         -------------
Company and its Subsidiaries are in compliance with each Legal Requirement
applicable to it or to the conduct or operation of its business or the ownership
or use of any of its assets, including, without limitation, any applicable
franchise, building, zoning, health, environmental, sanitation, safety, labor
relations, immigration or other law, ordinance or regulation except to the
extent such noncompliance would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect on the Company or any Subsidiary;
(ii) no event has occurred or circumstance exists that may result in a violation
of, or failure on the part of the Company or any Subsidiary to comply with, any
Legal Requirement or give rise to any obligation of the Company or any
Subsidiary to undertake, or bear all or any portion of the cost of, any remedial
action of any nature except to the extent such event or circumstance would not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect on the Company or any Subsidiary; and (iii) neither the Company
nor any Subsidiary has received any notice regarding the foregoing.

     4.18 Licenses and Permits; Franchise Matters.
          ---------------------------------------

          (a) Licenses and Permits. Except as set forth on Schedule 4.18(a) and
              --------------------                         ----------------
     Schedule 4.18(d), the Company and each Subsidiary has all governmental or
     regulatory licenses, permits and Governmental Authorizations (all of which
     are in full force and effect) necessary to conduct its business as it is
     now being conducted, except for such governmental or regulatory licenses,
     permits and Governmental Authorizations the absence of which would not
     have, individually or in the aggregate, a Material Adverse Effect on the
     Company or such Subsidiary, and none of such governmental or regulatory

                                       -15-

<PAGE>

     licenses, permits and Governmental Authorizations will be impaired as a
     result of the Transactions, except for such impairments which would not
     have, individually or in the aggregate, a Material Adverse Effect on the
     Company or such Subsidiary. Except as set forth on Schedule 4.18(a) and
                                                        ----------------
     Schedule 4.18(d), the Company and each of its Subsidiaries is, and at all
     ----------------
     times since November 24, 1998 has been, in full compliance with all of the
     terms and requirements of each Governmental Authorization held by it except
     to the extent that such noncompliance would not reasonably be expected to
     lead to the loss or revocation of such Governmental Authorization or to
     result in a Material Adverse Effect on the Company and its Subsidiaries
     taken as a whole. Neither the Company nor any Subsidiary has received any
     notice to the effect that, (i) any actual or potential withdrawal,
     suspension, cancellation or modification to any Governmental Authorization
     of the Company or a Subsidiary is Threatened or (ii) it is not in
     compliance with, or it is in violation of, any such governmental or
     regulatory licenses, permits and Governmental Authorizations in a manner
     that would have, individually or in the aggregate, a Material Adverse
     Effect, and there are not currently existing circumstances that are likely
     to result in a failure of the Company or any Subsidiary to comply with, or
     in a violation by the Company or any Subsidiary of, any such governmental
     or regulatory licenses, permits or Governmental Authorizations that would
     have, individually or in the aggregate, a Material Adverse Effect on the
     Company and its Subsidiaries taken as a whole.

          (b) Franchise and Area Development Agreements. Schedule 4.18(b)
              -----------------------------------------  ----------------
     accurately identifies all franchise agreements and area development
     agreements (the "Franchise Agreements") in effect on September 15, 2001, by
                      --------------------
     name of franchisee, date of agreement, expiration date, location of store,
     and exclusive territory, and since November 24, 1998, no other current
     Contracts, agreements or understandings exist, whether oral or written,
     between the Company or any Subsidiary and any third party granting the
     right, or any option or right of first refusal, to operate a restaurant
     business under the name "Baja Fresh" or any related marks. Except as set
     forth in Schedule 4.18(b) and Schedule 4.18(d), the Franchise Agreements
              ----------------     ----------------
     listed on Schedule 4.18(b) represent the complete terms and provisions of
               ----------------
     all current agreements with franchisees, and no written or, to the
     Knowledge of the Company, oral modifications of or supplements to those
     written agreements have been entered into since November 24, 1998. Except
     as set forth in Schedule 4.18(b) and Schedule 4.18(d), each of the
                     ----------------     ----------------
     Franchise Agreements is in full force and effect and is enforceable against
     the Company and the franchisee party to such Franchise Agreement in
     accordance with its terms subject to applicable bankruptcy, insolvency,
     moratorium, reorganization or similar laws affecting creditors' rights
     generally and subject to general equitable principles (regardless of
     whether such enforceability is considered in a Proceeding in equity or
     at law) and no notices of or demands for rescission or early termination
     have been delivered thereunder by any party. Except as set forth in
     Schedule 4.18(b) and Schedule 4.18(d), there are no material Breaches by
     ----------------     ----------------
     the Company, any Subsidiary or to the Knowledge of the Company any
     franchisee of any of the Franchise Agreements, which Breaches remain
     uncured. Each franchisee is no more than 30 days past due in its financial
     obligations to the Company and its Subsidiaries, including without
     limitation, payments due for royalties and product purchases, except as set
     forth in Schedule 4.18(b) and Schedule 4.18(d). Except as set forth in
              ----------------     ----------------
     Schedule 4.18(b) and Schedule 4.18(d), there are no assertions or claims,
     ----------------     ----------------
     whether

                                       -16-

<PAGE>

     oral or in writing, or, as of the date hereof or as of the Closing Date, to
     the Knowledge of the Company, any basis for any claims by any franchisee of
     material Breaches of any of the Franchise Agreements by the Company or any
     Subsidiary which remain uncured. Except as set forth in Schedule 4.18(b)
                                                             ----------------
     and Schedule 4.18(d), to the Knowledge of the Company there is no basis for
         ----------------
     any demand by any franchisee for rescission of any Franchise Agreement no
     franchisee is entitled to any credit, set off or reduction in any payment
     required to be made pursuant to the terms of any Franchise Agreement, or in
     any other payment(s) owed to the Company or any Subsidiary, and no event
     has occurred which would give any franchisee a defense to its obligation to
     pay fees, or to perform its other obligations under its Franchise
     Agreement, and no franchisee has any claims, counterclaims or offsets
     against the Company or any Subsidiary. The Transactions do not require the
     prior Consent of or notice to any franchisee, or grant any franchisee the
     right to terminate any Franchise Agreement. There are no contractual
     limitations or prohibitions upon the Company or any Subsidiary from
     operating "Baja Fresh Mexican Grill" restaurants or selling franchises in
     any city, state, territory or country except as expressly set forth in the
     Franchise Agreements. Schedule 4.18(b) also separately lists by location
                           ----------------
     all restaurants owned or leased by the Company, any Subsidiary, or any
     Affiliate thereof (the "Company Stores") indicating which of the Company
                             --------------
     Stores are open and operating as of the Closing Date. Schedule 4.18(b) also
                                                           ----------------
     lists all stores other than Company Stores that are currently open and
     operating as of the Closing Date.

          (c) Franchise Law Compliance. Schedule 4.18(c) accurately sets forth
              ------------------------  ----------------
     each state in which the Company and its Subsidiaries are currently
     registered or with whom the Company or any Subsidiary has filed for an
     exemption from registration to sell franchises, the effective date and
     expiration date of each such registration. Neither the Company nor any of
     its Subsidiaries has voluntarily or involuntarily ceased to be registered
     to sell franchises in any state and the Company has no Knowledge of any
     fact or circumstance which would preclude or inhibit the Company or any
     Subsidiary from filing and receiving approval of an application to offer
     and sell franchises in any state in which the Company or such Subsidiary is
     not presently registered to do so. Except as disclosed in that certain
     Notice of Violation filed with and approved in form by the California
     Department of Corporations in December 1996, except as set forth on
     Schedule 4.18(c) neither the Company nor any Subsidiary has committed any
     ----------------
     material violation of any Legal Requirement of the Federal Trade Commission
     ("FTC") or of any state relating to the offer, sale, assignment, renewal,
       ---
     termination or rights of succession, of franchises, business opportunities
     and seller assisted marketing plans ("Franchise Laws"). Except as set forth
                                           --------------
     on Schedule 4.18(c), there is no pending, unresolved claim or assertion of
        ----------------
     any violation by the Company or any Subsidiary of any Franchise Laws,
     neither the Company nor any Subsidiary has received notice from any
     Governmental Body or private party alleging any such violation, and neither
     the Company nor any Subsidiary has any Knowledge of any basis for any such
     claim of violation. Except as set forth on Schedule 4.18(c), there
                                                ----------------
     currently exist no escrow or impound conditions or requirements imposed
     upon the sale of franchises by the Company or any Subsidiary in any
     jurisdiction. Except as set forth on Schedule 4.18(c), there are no pending
                                          ----------------
     or currently effective stop orders, administrative Proceedings, notices of
     investigation, injunctions, Orders or restitution, rescission notices, or
     other orders, actions or decrees by any state or federal agency, or by any
     state or federal court, whether civil or criminal,

                                       -17-

<PAGE>

     against the Company or any Subsidiary. There is currently no litigation or
     arbitration between the Company or any Subsidiary and any franchisee or
     ex-franchisee thereof.

     4.19 Intellectual Property.
          ---------------------

          (a) Trademarks. The Company and its Subsidiaries own all trademarks,
              ----------
     service marks, copyrights, and trade dress (collectively, "Proprietary
                                                                -----------
     Rights") which are used in the business of the Company and its Subsidiaries
     ------
     or that of its franchisees, including without limitation, the "Baja Fresh"
     and "Baja Fresh Mexican Grill" service mark. None of the Company and its
     Subsidiaries has, and prior to the Closing shall not have, sold, assigned,
     transferred, conveyed, or otherwise disposed of or agreed to sell, assign,
     transfer, convey, or otherwise dispose of any of the Proprietary Rights,
     except for licenses granted to franchisees pursuant to the Franchise
     Agreements, for fair consideration in the ordinary course of business
     consistent with prior practices. Except as set forth on Schedule 4.19 to
                                                             -------------
     the Company's Knowledge, there have been no Threatened to be filed
     oppositions to or requests for cancellation of any of the registrations or
     applications. The Company has promptly taken and will promptly take
     appropriate action to protect its Proprietary Rights when it becomes aware
     of uses by third parties of any Proprietary Rights which infringe any of
     the Proprietary Rights. Except as set forth in Schedule 4.19, no claims
                                                    -------------
     have been asserted or, to the Knowledge of the Company, Threatened against
     the Company or any Subsidiary by any third party alleging that any of the
     Proprietary Rights infringe any rights or marks held by such third party,
     or asserting palming-off, dilution or unfair competition, unjust
     enrichment, or similar claims, and the Company has no Knowledge of any
     basis for any such claim. None of the Proprietary Rights will cease to be
     valid and in full force and effect by reason of the execution, delivery and
     performance of this Agreement or the consummation of the Transactions.

          (b) Franchise Trade Secrets. The Company or a Subsidiary owns all
              -----------------------
     trade secrets which are used in the business of the Company and its
     Subsidiaries, and has not and prior to Closing shall not have sold,
     assigned, transferred, conveyed, or otherwise disposed of or agreed to
     sell, assign, transfer, convey, or otherwise dispose of any of the trade
     secrets, except for licenses granted to franchisees pursuant to the
     Franchise Agreements, for fair consideration in the ordinary course of
     business consistent with prior practices. All reasonable precautions have
     been taken and will be taken prior to Closing, by the Company to protect
     such trade secrets from usage by or disclosure to any unauthorized Person.

     4.20 Title to Assets. The Company and each of its Subsidiaries owns or
          ---------------
leases all tangible personal property necessary for the conduct of its business
as presently conducted. Each such asset has been maintained in accordance with
ordinary industry practice, is in good operating condition and is usable in the
ordinary course of business, other than where any such failures individually or
in the aggregate would not reasonably be expected to have a Material Adverse
Effect on the Company or such Subsidiary. The Company and each of its
Subsidiaries have good and valid leasehold title to all leased tangible personal
property leased by them from third parties, free and clear of all liens,
security interests and other Encumbrances except for such imperfections of title
which individually or in the aggregate would not reasonably be expected to

                                       -18-

<PAGE>

cause a Material Adverse Effect on the Company or such Subsidiary and except for
Encumbrances arising under documents listed on Schedule 4.20.

     4.21 Inventory. The value at which the inventory of the Company is carried
          ---------
on the Company's Balance Sheet (attached hereto as part of Schedule 4.8)
                                                           -------------
reflects the customary inventory valuation policy of the Company and is in
accordance with GAAP consistently applied. The current inventory of the Company
and its Subsidiaries consists of items of a quantity and quality which are
usable and saleable in the ordinary course of business except to the extent
deviations in such quality or quantity could not have, individually or in the
aggregate, a Material Adverse Effect on the Company and its Subsidiaries taken
as a whole.

     4.22 Accounts and Notes Receivable. With the exception of the accounts
          -----------------------------
receivable included on Schedule 4.22, all accounts receivable of the Company are
                       -------------
collectible at the aggregate recorded amounts thereof, net of any applicable
reserves for doubtful accounts, which reserves are adequate and were calculated
consistent with past practices. There are no refunds, rebates, discounts or
other adjustments payable with respect to accounts receivables except in the
ordinary course of business consistent with past practices.

     4.23 Taxes.
          -----

          (a) Subject to subsection (b) hereof and except as set forth in
     Schedule 4.23, since November 24, 1998:
     -------------

               (i) The Company and each Subsidiary has paid all federal, state,
          local and foreign income, alternative, add-on, gross receipts,
          franchise, payroll, F.I.C.A., unemployment, withholding, real
          property, personal property, admissions, gains, replacement, sales,
          use, excise, payroll, disability and other taxes imposed on the
          Company or such Subsidiary or with respect to any of its properties,
          or otherwise payable by it, including interest, penalties and other
          additions, if any, in respect thereof (collectively, "Company Taxes"),
                                                                -------------
          which were due and payable on or prior to each Closing Date.

               (ii) Without limiting the foregoing representations in any way,
          (i) the Company and each Subsidiary has collected all sales, use and
          value added taxes required to be collected, and has remitted, or will
          remit on a timely basis, such amounts to the appropriate Governmental
          Bodies and has furnished properly completed exemption certificates for
          all exempt transactions and (ii) the Company and each Subsidiary has
          properly withheld income and social security or other similar taxes
          and paid payroll taxes with respect to all Persons properly
          characterized as employees for federal, state or local tax purposes.

               (iii) The Company and each Subsidiary has timely filed all
          returns, reports and other filings related to Company Taxes which it
          is required to file and has paid all the amounts shown to be due
          thereon. All such returns, reports and filings are true and correct
          and complete. Neither the Company nor any Subsidiary is required to
          file returns, reports or filings in any state or local or

                                       -19-

<PAGE>

          foreign jurisdiction for any tax period except in those state, local
          or foreign jurisdictions in which it has filed.

               (iv) No audit, examination, action or Proceeding is pending or,
          to the Knowledge of the Company, Threatened by any Governmental Body
          with respect to the possible assessment or collection from the Company
          or any Subsidiary of any Company Taxes, no unresolved claim for
          assessment or collection of any Company Taxes has been asserted
          against the Company or any Subsidiary, and all resolved assessments of
          Company Taxes have been paid.

               (v) There are no liens for Company Taxes (other than for current
          Company Taxes not yet due and payable) upon the assets of the Company
          or any Subsidiary.

               (vi) Neither the Company nor any Subsidiary is a party to or
          bound by any tax sharing, tax indemnity or tax allocation agreement or
          other similar arrangement.

               (vii) Neither the Company nor any Subsidiary has taken any action
          that would require an adjustment pursuant to Section 481 of the Code
          by reason of a change in accounting method or otherwise.

               (viii) Neither the Company nor any Subsidiary has filed a consent
          under Section 341(f)(1) of the Code or agreed to have the provisions
          of Section 341(f)(2) of the Code apply to any disposition of
          "subsection (f) assets" as such term is defined in Section 341(f)(4)
          of the Code.

               (ix) Neither the Company nor any Subsidiary has made any
          payments, is obligated to make any payments or is a party to any
          agreement or agreements that, individually or collectively, provide
          for the payment by the Company of any amount (i) that is not
          deductible under Section 162(a)(1) or 404 of the Code or (ii) that is
          an "excess parachute payment" pursuant to Section 280G of the Code.

               (x) Neither the Company nor any Subsidiary has agreed to any
          extension of any applicable statute of limitations for the imposition
          of any Company Tax.

               (xi) Neither the Company nor any Subsidiary is an "S corporation"
          within the meaning of Section 1361(a) of the Code.

          (b) All representations in Section 4.23(a) hereof, with respect to
     state and local Company Taxes are true and correct except to the extent any
     exceptions to the truth or correctness of such representations would not
     reasonably be expected to have, individually or in the aggregate, a
     Material Adverse Effect on the Company or any Subsidiary.

          (c) All Company Taxes and related fees shall be accrued for in the
     Balance Sheet and the Pre-Closing Financial Statements.

                                       -20-

<PAGE>

     4.24 Environmental Laws and Regulations.
          ----------------------------------

          (a) For the purposes of this section, the following words and phrases
     shall have the following meanings:

          "Environmental Condition" means any condition relating to the
           -----------------------
presence, release, threat of release, transportation, disposal, storage or
treatment of Hazardous Materials in, at, on, under or about (i) the Real
Property (as defined below), or (ii) the environment beyond the Real Property,
which Hazardous Materials migrated, emanated or originated from the Real
Property.

          "Environmental Law" means any environmental or health and
           -----------------
safety-related law, policy, regulation, rule, requirement, statute, ordinance,
common law decision, Order or determination of any Governmental Body or judicial
authority at the federal, state, or local level, whether existing as of the date
hereof, previously enforced or subsequently enacted.

          "Hazardous Material" means any pollutant, contaminant, toxic
           ------------------
substance, hazardous waste, hazardous material, hazardous substance, petroleum
or petroleum product, asbestos, polychlorinated biphenyls, underground storage
tanks and the contents thereof including, without limitation, any such materials
defined in or regulated pursuant to any Environmental Law.

          "Real Property" means any real property or "facility" (as defined in
           -------------
the Resource Conservation and Recovery Act, 42 U.S.C. ss. 6901 et seq. ("RCRA"))
                                                               -- ---    ----
currently or formerly owned, operated, leased or occupied by the Company.

          (b) Except as set forth on Schedule 4.24(b), the Company and its
                                     ----------------
     Subsidiaries have no Liability under, and are in compliance with, all
     Environmental Laws applicable to the Company's and such Subsidiaries'
     respective businesses, the Real Property and any facilities and operations
     thereon, except for such Liabilities and except for such noncompliance
     which would not have, individually or in the aggregate, a Material Adverse
     Effect on the Company or any Subsidiary. Except as set forth on Schedule
                                                                     --------
     4.24(b), (i) to the Knowledge of the Company, each Real Property is in
     -------
     compliance with all Environmental Laws, except where the failure to so
     comply would not have, individually or in the aggregate, a Material Adverse
     Effect on the Company or any Subsidiary and (ii) to the Knowledge of the
     Company, there are no Hazardous Materials located in, under or about any
     Real Property, except for such Hazardous Materials which individually or in
     the aggregate would not have a Material Adverse Effect on the Company or
     any Subsidiary.

          (c) (i) Neither the Company nor any Subsidiary has caused an
     Environmental Condition that could, individually or in the aggregate, have
     a Material Adverse Effect on the Company or such Subsidiary and (ii) to the
     Company's Knowledge, there are no Environmental Conditions that could,
     individually or in the aggregate, have a Material Adverse Effect on the
     Company or any Subsidiary.

     4.25 Board of Directors Approval. The Board has unanimously approved the
          ---------------------------
Transactions and has unanimously determined that such Transactions are fair to
and in the best

                                       -21-

<PAGE>

interests of the Company and its shareholders. Such actions of the Board remain
in full force and effect.

     4.26 No Agreements to Sell the Company. Except as contemplated by this
          ---------------------------------
Agreement and pursuant to stock options and warrants relating to the purchase of
up to 691,206.5 and 142,500 shares of common stock of the company, respectively,
the Company does not have any legal obligation, absolute or contingent, to any
other Person to sell any capital stock or material assets or businesses of the
Company or any Subsidiary or to effect any merger, consolidation, liquidation,
dissolution, recapitalization or other reorganization of the Company or to enter
into any agreement with respect thereto.

     4.27 Related Party Transactions. Except as set forth on Schedule 4.27, no
          --------------------------                         -------------
employee, officer, or director of the Company or any Subsidiary or, to the
Knowledge of the Company, no Affiliate of any such Person, and no member of such
Person's immediate family has engaged in any transaction with or entered into
any Contract with, the Company or any Subsidiary. Except as set forth on
Schedule 4.27, no officer or director of the Company or any Subsidiary or, to
-------------
the Knowledge of the Company, no Affiliate of any such Person, and no member of
such Person's immediate family has had any interest in any property (whether
real, personal, or mixed and whether tangible or intangible), used in or
pertaining to the businesses of the Company or any Subsidiary. Except as set
forth on Schedule 4.27, no officer, or employee-director of the Company or any
         -------------
Subsidiary or, to the Knowledge of the Company, no Affiliate of any such Person,
and no member of such Person's immediate family has owned (of record or as a
beneficial owner), an equity interest or any other financial or profit interest
in, a Person that has engaged in competition with the Company or any Subsidiary
with respect to any line of the products or services of the Company or such
Subsidiary in any market presently served by the Company or such Subsidiary
excluding interests in publicly traded companies of less than 1% of the
outstanding equity of such company.

     4.28 No Finders or Brokers. The Company has not incurred any obligation or
          ---------------------
liability, contingent or otherwise, for brokerage or finders' fees or agents'
commissions or other similar payment in connection with this Agreement or any of
the Transactions.

     4.29 Labor Matters
          -------------

          (a) Neither the Company nor any Subsidiary is a party to or bound by
     any collective bargaining agreement or other Contracts with labor unions.
     The Company and each Subsidiary has complied in all respects with all Legal
     Requirements, Orders or Contracts affecting employment, nondiscrimination,
     immigration, collective bargaining, equal opportunity employment, the
     payment of social security and similar taxes, occupational safety and
     health or employees' benefits, health, safety, welfare, wages and hours,
     except where the default or violation of such Legal Requirements, Orders or
     Contracts could not have, individually or in the aggregate, a Material
     Adverse Effect on the Company or any Subsidiary.

          (b) Except as could not have, individually or in the aggregate, a
     Material Adverse Effect on the Company or any Subsidiary: (i) there are no
     labor disputes pending or existing, or to the Company's Knowledge,
     Threatened, involving strikes,

                                       -22-

<PAGE>

     slow-downs, picketing, work stoppages, employee grievance processes, job
     actions or lockouts of any employees of the Company, (ii) there are no
     Proceedings against or affecting the Company or any Subsidiary relating to
     the alleged violation of any Legal Requirement pertaining to labor
     relations or employment matters, including any charge, petition or
     complaint filed by an employee or union with the National Labor Relations
     Board, the Equal Employment Opportunity Commission, or any comparable
     Governmental Body, and (iii) no demand for recognition heretofore made by
     any labor organization is pending with respect to the Company or any
     Subsidiary. No event has occurred or circumstance exists that could provide
     the basis for any work stoppage or other labor dispute.

     4.30 Full Disclosure. No representation or warranty by the Company
          ---------------
contained in this Agreement or any Transaction Document, and no statement
contained in the Schedules hereto, contains any untrue statement of material
fact or omits to state any material fact necessary to make the statements herein
or therein, in light of the circumstances under which they were made, not
misleading. There is no fact known to the Company, which the Company has not
disclosed to the Buyers in writing, which has a Material Adverse Effect on the
Company or any Subsidiary or insofar as the Company can reasonably foresee, will
have a Material Adverse Effect on the Company or any Subsidiary.

                                   ARTICLE V

                              CONDITIONS PRECEDENT

     5.1 Conditions to the Obligations of the Company. The obligations of the
         --------------------------------------------
Company to effect the transactions contemplated by this Agreement shall be
subject to the fulfillment at or prior to each Closing Date of the following
additional conditions:

          (a) Buyer's Performance of Obligations. The Buyers participating in a
              ----------------------------------
     Closing shall have performed in all respects their obligations under this
     Agreement required to be performed by them on or prior to such Closing Date
     pursuant to the terms hereof.

          (b) Accuracy of Representations and Warranties. The representations
              ------------------------------------------
     and warranties of the Buyers participating in a Closing contained in this
     Agreement shall be true and correct in all respects at and as of such
     Closing Date as if made at and as of such date, except to the extent that
     any such representation or warranty is made as of a specified date in which
     case such representation or warranty shall have been true and correct as of
     such date.

          (c) Authorization by the Buyers. Where applicable, all actions
              ---------------------------
     necessary to authorize the execution, delivery and performance of this
     Agreement by the Buyers, and the consummation of the transactions
     contemplated herein, shall have been duly and validly taken.

     5.2 Conditions to the Obligations of the Buyers. The obligations of the
         -------------------------------------------
Buyers participating in a Closing to effect the transactions contemplated by
this Agreement shall be subject to the fulfillment at or prior to such Closing
Date of the following additional conditions:

                                       -23-

<PAGE>

          (a) The Company's Performance of Obligations. The Company shall have
              ----------------------------------------
     performed in all respects its obligations under this Agreement required to
     be performed by it on or prior to such Closing Date pursuant to the terms
     hereof.

          (b) Accuracy of Representations and Warranties. The representations
              ------------------------------------------
     and warranties of the Company contained in this Agreement shall be true and
     correct in all respects at and as of such Closing Date as if made at and as
     of such date, except to the extent that any such representation or warranty
     is made as of a specified date in which case such representation or
     warranty shall have been true and correct as of such date.

          (c) Authorization by the Company. All actions necessary to authorize
              ----------------------------
     the execution, delivery and performance of this Agreement by the Company
     and its shareholders, and the consummation of the transactions contemplated
     herein, shall have been duly and validly taken.

          (d) Consents and Regulatory Approvals. All necessary waivers, Consents
              ---------------------------------
     and approvals of any third party or Governmental Bodies necessary to
     prevent the cancellation of any material Contract, lease, permit or license
     of the Company shall have been obtained by the Company and the Company
     shall have obtained all waivers, estoppels, non-disturbance agreements,
     Consents and approvals (including, without limitation, Consents required
     under any leases and Contracts) required by the Buyers.

          (e) Amendment of Articles. The Board and the shareholders of the
              ---------------------
     Company shall have approved, and the Company shall have filed, the Restated
     Articles with the California Secretary of State.

          (f) Stock Option Plan. The Board and the shareholders of the Company
              -----------------
     shall have authorized and approved an increase in the number of shares
     reserved for issuance under the 1998 Fresh Enterprises, Inc. Stock Plan by
     425,000 shares.

          (g) 2000 Financial Statement. The Buyers shall have received from the
              ------------------------
     Company true and complete copies of the Company's audited consolidated
     financial statements for fiscal year 2000.

          (h) Certain Shareholders. On or prior to the Initial Closing Date, the
              --------------------
     Company shall have received either waivers of preemptive rights pursuant to
     Section 3 of the Shareholders' Agreement or subscriptions pursuant to
     Section 3 of the Shareholders' Agreement from Gregory G. Dollarhyde, Louis
     A. Siracusa, Donald D. Breen, Steve Lebow, James and Linda Magglos, John
     and Coralee Yonkich, and JKG Enterprise Group Money Purchase Pension Plan
     FBO Greg Dollarhyde.

          (i) Amendment of the Senior Credit Facility. The Senior Credit
              ---------------------------------------
     Facility shall have been amended to increase the amount available to the
     Company thereunder to Eighteen Million Dollars ($18,000,000).

          (j) Other Instruments. The Buyers shall have received such other duly
              -----------------
     and validly executed documents and instruments in connection with such
     Closing as are

                                       -24-

<PAGE>

     reasonably requested by them, including without limitation, the projections
     schedule referred to in Section 4 of the Shareholders' Agreement.

                                   ARTICLE VI
                                  POST CLOSING

     6.1 Survival of Representations and Warranties. Regardless of any
         ------------------------------------------
investigation at any time made by or on behalf of any party, or of any
information any party may have in respect thereof, all representations and
warranties made hereunder or pursuant hereto or in connection with the
Transactions shall survive the Initial Closing Date for a period of twenty-four
(24) months from the Initial Closing Date; provided, however, all
                                           --------  -------
representations and warranties with respect to Sections 4.12, 4.23 and 4.24
shall survive the Initial Closing Date until the close of business on the day
following the expiration of the applicable statute of limitations (giving effect
to any waiver or extension thereof); and provided further, that the
representations and warranties contained in Sections 4.3 shall survive
indefinitely (each, a "Survival Date").
                       -------------

     6.2 Directors and Officers' Insurance. The Company shall use reasonable
         ---------------------------------
best efforts to maintain in force a policy of directors and officers liability
insurance reasonably satisfactory to the directors.

     6.3 California Securities Filing. The Company will take reasonable steps in
         ----------------------------
accordance with the advice of counsel in order to correct any violation that may
exist with respect to the failure to file a Notice of Issuance of Securities
Pursuant to Subdivision (o) of Section 25102 of the Corporations Code with the
California Department of Corporations in connection with the initial issuance of
securities under the 1998 Fresh Enterprises, Inc. Stock Plan in 1998. Such steps
shall include seeking the requisite Board and shareholder consents to adopt a
new stock plan, making appropriate filings with the California Department of
Corporations, and making a rescission offer if approved by the Board.

                                  ARTICLE VII
                                 MISCELLANEOUS

     7.1 Notices. All notices and other communications given or made pursuant
         -------
hereto shall be in writing and shall be deemed to have been given or made if in
writing and delivered personally, sent by commercial carrier or registered or
certified mail (postage prepaid, return receipt requested) to the parties at the
following addresses and numbers:

         a) If to the Buyers to:

            Frank M. Vest, Jr.
            Catterton Partners IV, L.P.
            c/o Catterton Partners IV Management Company, L.L.C.
            10 Hale Street, Suite 205
            Charleston, WV 25301

                                       -25-

<PAGE>

         with a copy to:

         David McPherson, Esq.
         Latham & Watkins
         555 11th Street, N.W.
         Washington, DC  20004

     (b) If to the Company, to:

         Fresh Enterprises, Inc.
         225 W. Hillcrest Drive
         Thousand Oaks, CA  91360
         Attention:  Gregory G. Dollarhyde

         with a copy to:

         Anna M. Graves, Esq.
         Pillsbury Winthrop LLP
         725 South Figueroa Street, Suite 2800
         Los Angeles, California  90017

or at such other addresses as shall be furnished by the parties by like notice,
and such notice or communication shall be deemed to have been given or made as
of the date actually received.

     7.2 Headings; Agreement. The headings contained in this Agreement are
         -------------------
inserted for convenience only and do not constitute a part of this Agreement.
The term "Agreement" for purposes of representations and warranties hereunder
shall be deemed to include the Exhibits hereto to be executed and delivered by a
party.

     7.3 Publicity. So long as this Agreement is in effect, the Company shall
         ---------
not, and shall cause their Affiliates not to, issue or cause the publication of
any press release or other announcement with respect to the transactions
contemplated by this Agreement or this Agreement without the consent of the
Buyers, which consent shall not be unreasonably withheld or delayed.

     7.4 Entire Agreement. This Agreement (including all the Schedules and
         ----------------
Exhibits hereto) and the other Transaction Documents constitute the entire
agreement among the parties and supersede all other prior agreements and
understandings, both written and oral, among the parties, or any of them, with
respect to the subject matter hereof.

     7.5 Amendment. This Agreement may be amended by an instrument in writing
         ---------
signed on behalf of each of the parties hereto.

     7.6 Assignment. This Agreement and all of the provisions hereof shall be
         ----------
binding upon and inure to the benefits of the parties hereto and their
respective successors and permitted assigns. Neither this Agreement nor any of
the rights, interests or obligations shall be assigned by any of the parties
hereto without the prior written consent of the other parties.

                                      -26-

<PAGE>

     7.7 Expenses. Except as otherwise set forth herein each party, shall bear
         --------
their respective costs, expenses and fees incurred in connection with the
preparation, execution and performance of this Agreement and the other
Transaction Documents (including, but not limited to, amounts payable to
accountants, attorneys, consultants, finders or investment bankers in connection
with this Agreement and the Transactions). Notwithstanding the foregoing, the
Company shall pay the reasonable expenses of a single counsel to the Buyers to
be retained by Catterton Partners IV, L.P. in connection with the preparation,
execution and performance of this Agreement and the other Transaction Documents.

     7.8 Severability. In the event that any one or more of the provisions
         ------------
contained in this Agreement or in any other instrument referred to herein,
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, then to the maximum extent permitted by law, such invalidity,
illegality or unenforceability shall not affect any other provision of this
Agreement or any other such instrument.

     7.9 Counterparts. This Agreement may be executed in one or more
         ------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Agreement by telecopier shall be
effective as delivery of a manually executed counterpart, with original
signatures, of this Agreement.

     7.10 Governing Law. The validity and interpretation of this Agreement shall
          -------------
be governed by the laws of the State of California without reference to the
conflict of laws principles thereof.

     7.11 Cumulative Remedies. All rights and remedies of any party hereto are
          -------------------
cumulative of each other and of every other right or remedy such party may
otherwise have at law or inequity, and the exercise of one or more rights or
remedies shall not prejudice or impair the concurrent or subsequent exercise of
other rights or remedies.

     7.12 Third Party Beneficiaries. This Agreement is not intended to confer
          -------------------------
upon any other Person any rights or remedies hereunder.

     7.13 Limitation of Liability. In no event shall any partner or
          -----------------------
representative of the Buyers or of any partnership which is a partner of the
Buyers or any partner of any such partnership, or any direct or indirect
stockholder, officer, director, partner or any other such Person, be personally
liable for any such obligation of the Buyers under this Agreement. In no event
shall recourse with respect to the obligations under this Agreement of the
Buyers be had to the assets or business of any Person other than the Buyers. In
no event shall recourse with respect to the obligations under this Agreement of
the Company be had to the assets or business of any Person other than the
Company, including its Subsidiaries. In no event shall any officer, director or
shareholder (and their officers, directors, representatives and agents) of the
Company be personally liable for any obligation of the Company under this
Agreement. Any obligation of any trust shall be enforceable solely against the
assets of such trust and not against any trustee.

     7.14 Arbitration. All disputes and controversies arising out of or relating
          -----------
to this Agreement, or relating to a Breach hereof shall be settled by
arbitration conducted in Los

                                       -27-

<PAGE>

Angeles, California in accordance with the Commercial Arbitration Rules of the
American Arbitration Association then in effect. The award rendered by the
arbitrator(s) shall be final and judgment upon the award rendered by the
arbitrator(s) may be entered upon it in any court having jurisdiction thereof or
application may be made to such court for a judicial acceptance of the award and
an order of judgment. The arbitrator(s) shall possess the powers to issue
mandatory orders and restraining orders in connection with such arbitration.
Each party shall bear its own costs and expenses of the arbitration, subject to
reimbursement as determined by the arbitrator(s).

                                      -28-

<PAGE>

     IN WITNESS WHEREOF, each of the Buyers and the Company have caused this
Agreement to be signed by an officer or partner thereunto duly authorized, all
as of the date first written above.

COMPANY:                          FRESH ENTERPRISES, INC.

                                  By:  /s/ Gregory G. Dollarhyde
                                       --------------------------------------
                                       Gregory G. Dollarhyde
                                       President and Chief Executive Officer

CATTERTON:                        CATTERTON PARTNERS IV, L.P.,
                                  a Delaware limited partnership

                                  By:  Catterton Managing
                                       Partner IV, L.L.C.
                                       Its: General Partner

                                  By:  CP4 Principals, L.L.C.
                                       Its: Managing Member

                                  By:  /s/ Frank M. Vest, Jr.
                                       --------------------------------------
                                       Name:  Frank M. Vest, Jr.
                                       Title: Authorized Person

                                  CATTERTON PARTNERS IV-A, L.P.,
                                  a Delaware limited partnership

                                  By:  Catterton Managing
                                       Partner IV, L.L.C.
                                       Its: General Partner

                                  By:  CP4 Principals, L.L.C.
                                       Its: Managing Member

                                  By:  /s/ Frank M. Vest, Jr.
                                       --------------------------------------
                                       Name:  Frank M. Vest, Jr.
                                       Title: Authorized Person

                                      -29-

<PAGE>

                                  CATTERTON PARTNERS IV-B, L.P.,
                                  a Delaware limited partnership

                                  By:  Catterton Managing
                                       Partner IV, L.L.C.
                                       Its: General Partner

                                  By:  CP4 Principals, L.L.C.
                                       Its: Managing Member

                                  By:   /s/ Frank M. Vest, Jr.
                                        --------------------------------------
                                        Name:  Frank M. Vest, Jr.
                                        Title: Authorized Person

                                  CATTERTON PARTNERS IV OFFSHORE, L.P.
                                  a Cayman limited partnership

                                  By:  Catterton Managing
                                       Partner IV, L.L.C.
                                       Its: Managing General Partner

                                  By:  CP4 Principals, L.L.C.
                                       Its: Managing Member

                                  By:  /s/ Frank M. Vest, Jr.
                                       --------------------------------------
                                       Name:  Frank M. Vest, Jr.
                                       Title: Authorized Person

                                  CATTERTON PARTNERS IV SPECIAL
                                  PURPOSE, L.P. a Cayman limited partnership

                                  By:  Catterton Managing
                                       Partner IV, L.L.C.
                                       Its: Managing General Partner

                                  By:  CP4 Principals, L.L.C.
                                       Its: Managing Member

                                  By:  /s/ Frank M. Vest, Jr.
                                       --------------------------------------
                                       Name:  Frank M. Vest, Jr.
                                       Title: Authorized Person

                                      -30-

<PAGE>

                                  CATTERTON-BAJA PARTNERS, L.L.C.,
                                  a Delaware limited liability company

                                  By:  Catterton Partners IV Management
                                       Company, L.L.C.
                                       Its: Managing Member

                                  By:  /s/ Frank M. Vest Jr.
                                       --------------------------------------
                                       Name:  Frank M. Vest Jr.
                                       Title: Authorized Person

GRUMMAN HILL:                     GRUMMAN HILL INVESTMENTS III, L.P.,
                                  a Delaware limited partnership

                                  By:  Grumman Hill Group, L.L.C.
                                       Its:   General Partner

                                       /s/ James T. Kelsey
                                       --------------------------------------
                                       Name:  James T. Kelsey
                                       Title: Authorized Person

OAK INVESTMENT:                   OAK INVESTMENT PARTNERS VIII, LIMITED
                                  PARTNERSHIP, a Delaware limited partnership

                                  By:  /s/ Gerald R. Gallagher
                                       --------------------------------------
                                       Name:  Gerald R. Gallagher
                                       Title: Managing Member of
                                              Oak Associates VIII, LLC,
                                              The General Partner of
                                              Oak Investment Partners VIII,
                                              Limited Partnership

                                  OAK VIII AFFILIATES FUND, LIMITED
                                  PARTNERSHIP, a Delaware limited partnership

                                  By:  /s/ Gerald R. Gallagher
                                       ---------------------------------------
                                       Name:  Gerald R. Gallagher
                                       Title: Managing Member of
                                              Oak Associates VIII, LLC,
                                              The General Partner of
                                              Oak VIII Affiliates Fund, Limited
                                              Partnership

                                      -31-

<PAGE>

                             DAVE & DIANE JOHNSON LIVING TRUST

                                 /s/ Dave Johnson
                                 --------------------------
                                 Dave Johnson, Trustee

                                 /s/ Diane D. Johnson
                                 --------------------------
                                 Diane D. Johnson, Trustee

                             /s/ Cyrus Monroe
                             --------------------------------
                             CYRUS MONROE

                             /s/ Jill Monroe
                             --------------------------------
                             JILL MONROE

                             /s/ Patrick J. McNeela
                             --------------------------------
                             PATRICK J. MCNEELA

                             /s/ Wolfe H. Bragin
                             --------------------------------
                             WOLFE H. BRAGIN

                             /s/ Louis A. Siracusa
                             --------------------------------
                             LOUIS A. SIRACUSA, individually and as trustee
                             of the Louis A. Siracusa Separate Property Trust

                             /s/ Donald D. Breen
                             --------------------------------
                             DONALD D. BREEN

                             /s/ Gregory G. Dollarhyde
                             --------------------------------
                             GREGORY G. DOLLARHYDE

                             /s/ Steven E. Lebow
                             --------------------------------
                             STEVEN E. LEBOW

                             THE HARRY & JUDITH KEYS FAMILY TRUST

                                      /s/ Harry E. Keys
                                      --------------------------
                                      Harry E. Keys, Trustee

                                      /s/ Judith A. Keys
                                      --------------------------
                                      Judith A. Keys, Trustee

                                      -32-

<PAGE>

                                   Schedule 1
                                   ----------
<TABLE>
<CAPTION>
Purchaser                                            Number of Series C Shares
---------                                            -------------------------
<S>                                                  <C>
Catterton Partners IV, L.P.                          288,463
Catterton Partners IV-A, L.P.                        101,132
Catterton Partners IV-B, L.P.                        7,051
Catterton Partners IV Offshore, L.P.                 243,181
Catterton Partners IV Special Purpose, L.P.          8,822
Catterton-Baja Partners, L.L.C.                      216,216
Grumman Hill Investments III, L.P.                   172,973
Oak Investment Partners VIII, L.P.                   254,529
Oak VIII Affiliates Fund, L.P.                       4,930
The David & Diane Johnson Living Trust               2,482
Cyrus and Jill Monroe                                10,915
Patrick J. McNeela                                   3,686
Wolfe H. Bragin                                      3,686
Donald D. Breen                                      3,686
Gregory G. Dollarhyde                                17,000
Steven E. Lebow                                      10,811
The Harry & Judith Keys Family Trust                 1,842
</TABLE>

                                      -33-

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