Document:

Exhibit 10.6

Exhibit 10.6

AMENDMENT NO. 4 TO SECOND AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

THIS AMENDMENT NO. 4 TO SECOND AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT (this
“Agreement”) is entered into as of the 7th day of July, 2009, by and among (a) REAL MEX
RESTAURANTS, INC., formerly known as Acapulco Acquisition Corp., a Delaware corporation (“Real
Mex”), ACAPULCO RESTAURANTS, INC., a Delaware corporation (“ARI”), EL TORITO
FRANCHISING COMPANY, a Delaware corporation (“ETFI”), EL TORITO RESTAURANTS, INC., a
Delaware corporation (“ETRI”), TARV, INC., a California corporation (“TARV”),
ACAPULCO RESTAURANT OF VENTURA, INC., a California corporation (“ARV”), ACAPULCO RESTAURANT
OF WESTWOOD, INC., a California corporation (“ARW”), ACAPULCO MARK CORP., a Delaware
corporation (“AMC”), MURRAY PACIFIC, a California corporation (“MP”), ALA DESIGN,
INC., a California corporation (“ALAD”), REAL MEX FOODS, INC., formerly known as ALA Foods,
Inc., a California corporation (“RMF”), ACAPULCO RESTAURANT OF DOWNEY, INC., a California
corporation (“ARD”), ACAPULCO RESTAURANT OF MORENO VALLEY, INC., a California corporation
(“AMV”), EL PASO CANTINA, INC., a California corporation (“EPC”), CKR ACQUISITION
CORP., a Delaware corporation (“CKR”), CHEVYS RESTAURANTS, LLC, a Delaware limited
liability company (“Chevys”; and collectively with Real Mex, ARI, ETFI, ETRI, TARV, ARV,
ARW, AMC, MP, ALAD, RMF, ARD, AMV, EPC and CKR, the “Borrowers”), (b) the lending
institutions party hereto as Lenders, and (c) GENERAL ELECTRIC CAPITAL CORPORATION as agent and
administrative agent (the “Agent”) for itself and such lending institutions.

RECITALS

WHEREAS, the Borrowers, Lenders, and Agent entered into a Second Amended and Restated
Revolving Credit Agreement, dated as of January 29, 2007 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”; unless otherwise defined
herein, capitalized terms used herein that are not otherwise defined herein shall have the
respective meanings assigned to such terms in the Credit Agreement);

WHEREAS, substantially contemporaneously with the execution and delivery of this Agreement,
the Agent, Credit Suisse, Cayman Islands Branch, as administrative agent under the Unsecured Term
Loan Documents, Cocina, KKR Financial CLO 2005-2, Ltd., the Parent and the Borrowers are entering
into a waiver and amendment no. 2 to the subordination and intercreditor agreement (the
“Intercreditor Agreement (Unsecured Term Loan) Amendment”);

WHEREAS, Borrowers have requested that the Agent and the Lenders amend certain provisions of
the Credit Agreement, consent to the execution and delivery of the Intercreditor Agreement
(Unsecured Term Loan) Amendment and the 2009 Intercreditor Agreement (2009 Senior Secured Debt) and
the performance of each of the transactions contemplated thereby, all as set forth in this
Agreement; and

WHEREAS, the Agent and Lenders agree to such amendments and consents upon the terms and
subject to conditions set forth herein.

 

 

 

NOW THEREFORE, in consideration of the premises and the mutual agreements set forth, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

1. Definitions in Credit Agreement; etc. Unless otherwise defined herein, terms
defined in or by reference to the Credit Agreement (as from time to time amended) are used herein
as therein defined.

2. Consents. Notwithstanding anything in the Credit Agreement or any other Loan
Document to the contrary,

(a) the Lenders hereby consent to the execution, delivery and performance of the Intercreditor
Agreement (Unsecured Term Loan) Amendment and the 2009 Intercreditor Agreement (2009 Senior Secured
Debt) and the transactions contemplated thereby and authorize, direct and instruct the Agent to
enter into the Intercreditor Agreement (Unsecured Term Loan) Amendment, the 2009 Intercreditor
Agreement (Parent Debt) and the 2009 Intercreditor Agreement (2009 Senior Secured Debt); and

(b) the Agent and the Lenders hereby consent to the discharge of the 2004 Indenture and to the
2004 Indenture ceasing to be of further effect as to all Notes issued thereunder pursuant to
Section 12.01(1)(b) of the 2004 Indenture; provided, however, that if the
2009 Indenture Effective Time (as such term is defined in Section 3(d) of this Agreement
below) does not occur on or prior to July 31, 2009, the consents set forth in this Section
2(b) shall become null and void and of no further force or effect at 11:59 p.m. (Chicago time)
on July 31, 2009.

3. Amendments. Subject to the satisfaction of the conditions precedent set forth in
Section 4 of this Agreement, the following amendments to the Credit Agreement shall become
effective; provided, however, that if the 2009 Indenture Effective Time (as such
term is defined in Section 3(d) of this Agreement below) does not occur on or prior to July
31, 2009, the amendments set forth in this Section 3 shall become null and void and of no
further force or effect at 11:59 p.m. (Chicago time) on July 31, 2009:

(a) §1.1 of the Credit Agreement is amended by amending and restating the following
definitions to read in their entirety as follows:

Applicable Margin. For the period commencing on March 31, 2008 through
the date immediately preceding the Amendment No. 3 Effective Date, the Applicable
Margin with respect to Revolving Credit Loans that are Base Rate Loans shall be
1.25% and the Applicable Margin with respect to Revolving Credit Loans that are
Eurodollar Rate Loans shall be 2.75%. For the period commencing on the Amendment
No. 3 Effective Date through the date immediately preceding the 2009 Indenture
Effective Time, the Applicable Margin with respect to Revolving Credit Loans that
are Base Rate Loans shall be 4.17% and the Applicable Margin with respect to
Revolving Credit Loans that are Eurodollar Rate Loans shall be 5.67%. On the 2009
Indenture Effective Time and at all times thereafter, the Applicable Margin with
respect to Revolving Credit Loans that are Base Rate Loans shall be 6.00% and the
Applicable Margin with respect to Revolving Credit Loans that are Eurodollar Rate
Loans shall be 7.00%.

 

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Change of Control. At any time, the occurrence of one or more of the
following events: (i) the Parent shall at any time fail to own, directly or
indirectly, 100% of each class of issued and outstanding Voting Stock and economic
interests of Real Mex free and clear of all liens other than Permitted Liens and, as
long as such liens are subordinated to the liens of the Agent pursuant to the 2009
Intercreditor Agreement (2009 Senior Secured Debt), liens granted by Parent to
secure its guaranty of the 2009 Senior Secured Debt, (ii) at all times prior to the
2009 Indenture Effective Time, any “Change of Control” under (and as defined in) the
Senior Secured Debt Documents, (iii) at all times from and after the 2009 Indenture
Effective Time, any “change of control” or similar event, however defined, under the
2009 Senior Secured Debt Documents, (iv) any “Change of Control” under (and as
defined in) the Unsecured Term Loan Documents, (v) any “change of control” or
similar event, however defined, under the 2009 Parent Debt Documents, (vi) Permitted
Holders shall at any time fail to own, directly or indirectly, 50.1% of each class
of issued and outstanding Voting Stock and economic interests of the Parent or (vii)
Cocina and KKR and their Control Investment Affiliates shall at any time fail to
own, directly or indirectly, a greater percentage of the issued and outstanding
Voting Stock and economic interest of Parent than any other Person and its Control
Investment Affiliates.

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

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

Eurodollar Base Rate. For any Interest Period with respect to a
Eurodollar Rate Loan, the higher of (i) 2.00% per annum and (ii) the rate determined
by the Agent to be the offered rate per annum for deposits of Dollars for the
applicable Interest Period that appears on Reuters Screen LIBOR01 Page as of 11:00
a.m. (London, England time) two Eurodollar Business Days prior to the first day in
such Interest Period. In the event that such rate does not appear on Reuters Screen
LIBOR01 Page at such time, such rate will be the rate of interest per annum, as
determined by the Agent (rounded upwards, if necessary, to the nearest 1/100 of 1%)
at which deposits of Dollars in immediately available funds are offered at 11:00
a.m. (London, England time) two (2) Business Days prior to the first day in such
Interest Period by major financial institutions reasonably satisfactory to the Agent
in the London interbank market for such Interest Period for the applicable principal
amount on such date of determination.

 

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Excess Cash Flow. As such term and the component terms thereof are
defined in the 2009 Indenture, as in effect as of the 2009 Indenture Effective Time.

Permitted Holders. Collectively, (a) Cocina, KKR, Canpartners and
Capstone, (b) the Co-Investors, and (c) any Related Parties of (i) Cocina, KKR,
Canpartners or Capstone or (ii) the Co-Investors.

Permitted Parent Debt. The 2009 Parent Debt as long as (i) all of such
Indebtedness results from an assumption by the Parent from Real Mex of the portion
of the Unsecured Term Loan in the same amount on or about the 2009 Indenture
Effective Time, (ii) such Indebtedness is unsecured and not guaranteed by any
Borrower or any Subsidiary of a Borrower, (iii) such Indebtedness is not
exchangeable or convertible into any Indebtedness of the Parent or any of its
Subsidiaries, (iv) such Indebtedness is subordinated to the Obligations pursuant to
the 2009 Intercreditor Agreement (Parent Debt), (v) interest on such Indebtedness
shall be payable only in kind, and (vi) such Indebtedness does not mature, and is
not subject to mandatory repurchase, redemption or amortization, in each case prior
to the 180th day after the date specified in clause (a) of the definition of the
term “Revolving Credit Loan Maturity Date”.

Restricted Payments. In relation to the Borrowers, any (a)
Distribution, (b) payment in respect of or purchase of any or all of the Senior
Secured Debt, (c) payment in respect of or purchase of any or all of the 2009 Senior
Secured Debt or (d) payment in respect of or purchase of any or all of the Unsecured
Term Loan.

Revolving Credit Loan Maturity Date. The earliest to occur of (a) July
1, 2012, (b) the payment or defeasance in full of the Senior Secured Debt (other
than the payment in full of the Senior Secured Debt contemplated by the definition
of the term “2009 Indenture Effective Time”), (c) the payment or defeasance in full
of the 2009 Senior Secured Debt, (d) the payment in full in cash of the Unsecured
Term Loan or (e) the date upon which interest on the Permitted Parent Debt is
required to be paid in cash pursuant to the terms thereof.

Security Documents. The Intercreditor Agreement, the 2009
Intercreditor Agreement (2009 Senior Secured Debt), the Parent Guaranty, the Parent
Security Agreement, the Security Agreement, the Mortgages, the Trademark Security
Agreement, the Stock Pledge Agreements, the Assignment and Agency Account Agreement,
the Agency Account Agreements and all other instruments and documents, including,
without limitation, Uniform Commercial Code financing statements, required to be
executed or delivered pursuant to any Security Document, in each case, as amended,
restated, supplemented or otherwise modified from time to time.

 

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Unsecured Term Loan Documents. (i) (A) at all times prior to the 2009
Indenture Effective Time, the Amended and Restated Credit Agreement, dated as of
October 5, 2006 (the “Unsecured Credit Agreement”), by and among Real Mex,
Parent, the lenders party thereto, Credit Suisse, Cayman Islands Branch, as
administrative agent, sole book runner and sole lead arranger and (B) at all
times from and after the 2009 Indenture Effective Time, the Second A&R Unsecured
Credit Agreement, (ii) (A) at all times prior to the 2009 Indenture Effective Time,
the Guarantee Agreement (as defined in the Unsecured Credit Agreement) and (B) at
all times from and after the 2009 Indenture Effective Time, the Guarantee Agreement
(as defined in the Second A&R Unsecured Credit Agreement) and (iii) (A) at all times
prior to the 2009 Indenture Effective Time, the Term Notes (as defined in the
Unsecured Credit Agreement) and (B) at all times from and after the 2009 Indenture
Effective Time, the Term Notes (as defined in the Second A&R Unsecured Unsecured
Credit Agreement), in each case as amended (to the extent permitted by §10.15) and
in effect from time to time.

(b) The definition of the term “Consolidated EBITDA” in §1.1 of the Credit Agreement is
amended by replacing the phrase “minus (l)” appearing therein with the phrase “plus (l) to the
extent deducted in the calculation of Consolidated Pre-Tax Income and without duplication, fees and
expenses incurred and paid by the Parent and/or Borrowers in connection with the closing of the
Transactions in each case incurred and paid by the Parent and/or Borrowers on or before August 31,
2009, in an amount not to exceed $8,500,000 in the aggregate for all such fees and expenses, minus
(m)”.

(c) The definition of the term “Interest Period” in §1.1 of the Credit Agreement is amended by
deleting the word “and” after clause (d), deleting the period at end of clause (e) thereof and
inserting the phrase “; and” in its place and adding new clause (f) thereto, which shall read in
its entirety as follows:

“(f) from and after the 2009 Indenture Effective Time, no
Revolving Credit Loan may be borrowed or continued as, or
converted into, a Eurodollar Rate Loan having an Interest
Period of 1, 2 or 6 months.”

(d) §1.1 of the Credit Agreement is further amended by adding thereto in the proper
alphabetical order the following definitions:

Amendment No. 4 Date. July 7, 2009.

Capstone. Capstone Consulting LLC.

Capstone Engagement Letter. Engagement letter, dated as of February
27, 2009, between Holdings and Capstone, as the same may be amended, restated,
supplemented or otherwise modified from time to time.

Consolidated Cash Flow. As defined in the 2009 Indenture, as in effect
as of the 2009 Indenture Effective Time.

Excess Cash Flow Account. A securities account (i) which holds amounts
pursuant to §9.20 hereof and from which funds may be released only in accordance
with §9.20 hereof and which is otherwise acceptable to the Agent (it being agreed
that having such account held at Wells Fargo Bank, National Association is
acceptable to the Agent), (ii) over which the Agent has, pursuant to
a control agreement acceptable to the Agent, a first priority perfected lien,
and (iii) over which the collateral agent under the 2009 Senior Secured Debt
Documents may have, pursuant to a control agreement acceptable to the Agent and such
collateral agent, a second priority perfected lien.

 

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Government Securities. Direct obligations of, or obligations guaranteed
by, the United States of America, and the payment for which the United States
pledges its full faith and credit.

Parent Security Agreement. The Security Agreement, dated as of the
Amendment No. 4 Date, between the Parent and the Agent, and in form and substance
satisfactory to the Lenders and the Agent.

Second A&R Unsecured Credit Agreement. The Second Amended and Restated
Credit Agreement, dated as of the Amendment No. 4 Date, by and among Real Mex,
Parent, the lenders party thereto, and the administrative agent thereunder.

Transactions. The termination of the Senior Secured Debt Documents on
or about the 2009 Indenture Effective Time and transactions consummated pursuant to
(i) the Amendment No. 4 to Credit Agreement, (ii) the Unsecured Term Loan Documents
as in effect at the 2009 Indenture Effective Time, (iii) the 2009 Parent Debt
Documents, and (iv) the 2009 Senior Secured Debt Documents.

2004 Indenture. The Indenture referenced in the definition of the term
“Senior Secured Debt Documents”.

2009 Indenture. The Indenture referenced in the definition of the term
“2009 Senior Secured Debt Documents”.

2009 Indenture Effective Time. The first time at which each of the
following conditions has been satisfied:

(a) each of the 2009 Intercreditor Agreement (2009 Senior Secured Debt) and the
2009 Intercreditor Agreement (Parent Debt) shall have been duly executed and
delivered by the respective parties thereto, shall be in full force and effect and
shall be in form and substance satisfactory to each of the Lenders;

(b) each of the 2009 Senior Secured Debt Documents and the 2009 Parent Debt
Documents shall have been duly executed and delivered by the respective parties
thereto, shall be in full force and effect and shall be in form and substance
satisfactory to each of the Lenders;

(c) the Second A&R Unsecured Credit Agreement shall have been duly executed and
delivered by the respective parties thereto, shall be in full force and effect and
shall be in form and substance satisfactory to each of the Lenders;

(d) the Agent shall have received from the Borrowers copies, certified by a
duly authorized officer of such Person to be true and complete on the 2009
Indenture Effective Time, of each of the 2009 Senior Secured Debt Documents,
the 2009 Parent Debt Documents and the Second A&R Unsecured Credit Agreement;

 

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(e) all corporate action necessary for the valid execution, delivery and
performance by the Parent, Borrowers and each of their Subsidiaries of the 2009
Senior Secured Debt Documents, the 2009 Parent Debt Documents and the Second A&R
Unsecured Credit Agreement to which it is or is to become a party shall have been
duly and effectively taken, and evidence thereof satisfactory to the Agent shall
have been provided to the Agent;

(f) the Agent shall have received evidence, reasonably satisfactory to it, of
the completion by the parties to the 2009 Senior Secured Debt Documents, the 2009
Parent Debt Documents and the Second A&R Unsecured Credit Agreement of all actions
to be taken prior to or concurrently with the closing of the transactions
contemplated thereby pursuant to the terms thereof, including without limitation,
the satisfaction or, to the extent consented to in writing by the Agent, waiver, of
all conditions to closing set forth in the 2009 Senior Secured Debt Documents, the
2009 Parent Debt Documents and the Second A&R Unsecured Credit Agreement;

(g) the Agent shall have received evidence, reasonably satisfactory to it, that
(i) the 2004 Indenture has been discharged and is of no further effect as to all
Notes issued thereunder pursuant to Section 12.01(1)(b) of the 2004
Indenture and (ii) Real Mex has delivered Officers’ Certificate and an Opinion of
Counsel (as each such term is defined in the 2004 Indenture) to the Trustee (under
and as defined in the 2004 Indenture) stating that all conditions precedent to
satisfaction and discharge of the 2004 Indenture under Section 12.01 thereof have
been satisfied;

(h) the Agent shall have received evidence, reasonably satisfactory to it, of
the assumption by Parent of the principal of the Unsecured Term Loan in an amount
equal to $25,000,000 pursuant to an assignment and assumption agreement in form and
substance satisfactory to the Agent (the “Assignment and Assumption
Agreement”); and

(i) the Agent shall have received evidence, reasonably satisfactory to it, of
the exchange of the outstanding principal of the Unsecured Term Loan in an amount
equal to $15,000,000 for the outstanding principal of the 2009 Senior Secured Debt
in an amount equal to $4,583,000 pursuant to an exchange agreement in form and
substance satisfactory to the Agent (the “Exchange Agreement”).

2009 Intercreditor Agreement (2009 Senior Secured Debt). The
Intercreditor Agreement among the collateral agent and trustee under the 2009 Senior
Secured Debt Documents, and the Agent, dated as of the date on which the 2009
Indenture Effective Time occurs, pursuant to which, among other things, the
liens securing the 2009 Senior Secured Debt are subordinated to the liens
securing the Obligations.

 

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2009 Intercreditor Agreement (Parent Debt). The Subordination and
Intercreditor Agreement among the Parent, the administrative agent under the 2009
Parent Debt Documents, and the Agent, dated as of the date on which the 2009
Indenture Effective Time occurs, pursuant to which, among other things, 2009 Parent
Debt and other obligations incurred pursuant to or evidenced by the 2009 Parent Debt
Documents are subordinated to the Obligations.

2009 Unsecured Term Loan Subordination Agreement (Senior Secured Debt).
Subordination and Intercreditor Agreement dated as of July 7, 2009 by and among
Credit Suisse, Cayman Islands Branch, as subordinated agent, Cocina and KKR
Financial CLO 2005-2, Ltd., as subordinated creditors, Holding (as defined therein),
Opco (as defined therein), the Listed Obligors (as defined therein) party thereto
and the trustee for the holders of the Senior Secured Debt.

2009 Unsecured Term Loan Subordination Agreement (2009 Senior Secured
Debt). Subordination and Intercreditor Agreement dated as of July 7, 2009 by
and among Credit Suisse, Cayman Islands Branch, as subordinated agent, Cocina and
KKR Financial CLO 2005-2, Ltd., as subordinated creditors, Holding (as defined
therein), Opco (as defined therein), the Listed Obligors (as defined therein) party
thereto and the trustee for the holders of the 2009 Senior Secured Debt.

2009 Parent Debt. Unsecured Indebtedness of the Parent in an aggregate
principal amount not to exceed $25,000,000 (plus any increase in such $25,000,000
amount solely due to the capitalization of interest on such Indebtedness by adding
such interest to the principal amount thereof) and evidenced by the 2009 Parent Debt
Documents and any Permitted Subordinated Refinancings (as defined in the 2009
Intercreditor Agreement (Parent Debt) thereof.

2009 Parent Debt Documents. The credit agreement, dated as of the date
on which the 2009 Indenture Effective Time occurs, among Parent, the administrative
agent and the lenders referred to therein pursuant to which up to $25,000,000
aggregate principal amount of 2009 Parent Debt has been issued to the Parent and
each of the notes and other documents delivered pursuant thereto, in each case, as
amended in accordance with this Credit Agreement and in effect from time to time.

2009 Senior Secured Debt. Indebtedness of the Borrowers issued on the
date the 2009 Indenture Effective Time occurs in an aggregate original principal
amount not to exceed $130,000,000 evidenced by senior secured notes due 2013 issued
pursuant to the 2009 Senior Secured Debt Documents and that is expressly subject to
the provisions of the 2009 Intercreditor Agreement (2009 Senior Secured Debt).

 

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2009 Senior Secured Debt Documents. (i) The Indenture, dated as of
the date on which 2009 Indenture Effective Time occurs, among Real Mex, the
guarantors thereunder, and the trustee and collateral agent thereunder (the
“2009 Indenture”), pursuant to which up to $130,000,000 original principal
amount of 2009 Senior Secured Debt has been issued by Real Mex, as amended (to the
extent permitted by §10.13), and each of the notes, security documents, guaranties
and other documents delivered pursuant thereto, and (ii) the 2009 Intercreditor
Agreement (2009 Senior Secured Debt).

(e) §2.1 of the Credit Agreement is amended by replacing the phrase

“at any one time equal to such Lender’s Revolving Credit Commitment, minus
such Lender’s Revolving Credit Commitment Percentage of the sum of the
Maximum Drawing Amount and all Unpaid Reimbursement Obligations”

appearing therein with the phrase

“at any one time equal to such Lender’s Revolving Credit Commitment
Percentage of the Total Revolving Credit Commitment, minus such Lender’s
Revolving Credit Commitment Percentage of the sum of the Maximum Drawing
Amount and all Unpaid Reimbursement Obligations”.

(f) §5.1.6 of the Credit Agreement is amended by replacing the phrase “At any time during the
term of this Credit Agreement,” appearing therein with the phrase “At any time following the
occurrence and during the continuance a Default or an Event of Default,”

(g) §5.6 of the Credit Agreement is amended by replacing the phrase “multiplied by a per annum
rate equal to 2.75%” appearing therein with the phrase “multiplied by a per annum rate equal to
4.50%”.

(h) Each of §8.1.2, §8.2, §8.7, §8.25 and §16.4 of the Credit Agreement is amended by
replacing the phrase “the Senior Secured Debt Documents” each time such phrase appears therein with
the phrase “the Senior Secured Debt Documents, the 2009 Senior Secured Debt Documents,”.

(i) §8.5(b) of the Credit Agreement is amended by replacing the phrase “Since December 31,
2007” appearing therein with the phrase “Since December 31, 2008”.

(j) §8.19 of the Credit Agreement is amended by adding thereto new clause (f) and new clause
(g), which shall read in their entirety as follows:

“(f) As of the 2009 Indenture Effective Time, the 2009 Senior Secured Debt
Documents constitute the complete understanding among the parties thereto in
respect of the matters and transactions covered thereby. As of the 2009
Indenture Effective Time, the representations and warranties of the
Borrowers and the Parent contained in the 2009 Senior Secured Debt Documents
were true and correct in all material respects when made or
deemed to be made except as would not have a Materially Adverse Effect and
the Agent and the Lenders may rely on such representations and warranties as
if they were incorporated herein on the 2009 Indenture Effective Time;
provided, that nothing contained herein shall prejudice in any way
any rights of the Borrowers or the Parent under or in respect of the 2009
Senior Secured Debt Documents, all of which are expressly hereby reserved.”

 

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“(g) As of the 2009 Indenture Effective Time, the 2009 Parent Debt Documents
constitute the complete understanding among the parties thereto in respect
of the matters and transactions covered thereby. As of the 2009 Indenture
Effective Time, the representations and warranties of the Parent contained
in the 2009 Parent Debt Documents were true and correct in all material
respects when made or deemed to be made except as would not have a
Materially Adverse Effect and the Agent and the Lenders may rely on such
representations and warranties as if they were incorporated herein on the
2009 Indenture Effective Time; provided, that nothing contained
herein shall prejudice in any way any rights of the Parent under or in
respect of the 2009 Parent Debt Documents, all of which are expressly hereby
reserved.”

(k) §9.4(i) of the Credit Agreement is amended and restated to read in its entirety as
follows:

(i) (A) all notices and other information sent to any holder of any
obligations under Unsecured Term Loan Documents in its capacity as such, (B)
all notices and other information sent to any holder of any obligations
under the Senior Secured Debt Documents in its capacity as such, (C) all
notices and other information sent to any holder of any obligations under
the 2009 Senior Secured Debt Documents in its capacity as such, (D) all
notices and other information sent to any party to the 2009 Unsecured Term
Loan Subordination Agreement (Senior Secured Debt) and (E) all notices and
other information sent to any party to the 2009 Unsecured Term Loan
Subordination Agreement (2009 Senior Secured Debt);”

(l) §9.4(e) of the Credit Agreement is amended and restated to read in its entirety as
follows:

“(e) simultaneously with the delivery of the financial statements referred
to in subsections (a), (b) and (c) above, a statement certified by the
principal financial or accounting officer of the Borrowers (and in the case
of delivery of the financial statements referred to in subsection (a) above,
the accountants of the Borrowers), in substantially the form of
Exhibit C hereto (a “Compliance Certificate”) and setting
forth in reasonable detail computations evidencing compliance with the
covenants contained in §11 and §13.5 and (if applicable) reconciliations to
reflect changes in generally accepted accounting principles since the
Balance Sheet Date;”

 

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(m) §9 of the Credit Agreement is amended by adding new §9.19 and new §9.19 thereto which
shall read in their entirety as follows:

“9.19 Senior Secured Debt Redemption. On or prior to the 40th day
after the Amendment No. 4 Date, the Borrowers will deliver evidence
reasonably satisfactory to the Agent that all money deposited with the
Trustee pursuant to Section 12.01(1)(b) of the 2004 Indenture have been sent
by the applicable trustee to the holders of the Senior Secured Debt for
application to the payment of all Notes issued thereunder.

“9.20 Excess Cash Flow Deposits. Within ninety (90) days of the end
of each four (4) fiscal quarter period ending on or near December 31,
beginning with the first such period ending in the year 2009, Borrowers will
deposit an amount equal to 75% of Excess Cash Flow of the Borrowers and
their Subsidiaries (as calculated in a written calculation (in the form
satisfactory to the Agent) of Excess Cash Flow of the Borrowers and their
Subsidiaries for such four (4) fiscal quarter period delivered to the Agent
and certified as correct on behalf of the Borrowers by an authorized officer
of each of the Borrowers) into the Excess Cash Flow Account to be retained
in such account until such time as receipt by Agent of a written request
from an authorized officer of one of the Borrowers requesting that such
funds be released to repay or cash collateralize Obligations or such funds
be applied towards the redemption of the 2009 Senior Secured Notes, which
request to redeem the 2009 Senior Secured Notes may be rejected by the
Agent, in its sole discretion. Notwithstanding the foregoing, the Borrowers
will not be required to make a deposit pursuant to this §9.20 for the
relevant period if the amount required to be deposited pursuant to this
§9.20 for such period does not exceed $1,000,000; provided that any
amount not so deposited, if positive, shall be added to the Excess Cash Flow
amount for the next measurement period. In the event the amounts in the
Excess Cash Flow Account are to be applied to Obligations at a time when no
Event of Default has occurred and is continuing, such amounts shall be
applied first to cash collateralize obligations (in a manner and pursuant to
documentation acceptable to the Agent) in respect of undrawn letters of
credit to the extent of 105% of the face amount thereof, and second to repay
any Revolving Loans or other Obligations. Each repayment of Obligations or
cash collateralization in respect of undrawn letters of credit from amounts
in the Excess Cash Flow Account shall reduce the applicable Revolving Credit
Commitments, ratably in respect of each Lender, in the amount of the
principal amount of the Revolving Loans repaid or the face amount of the
letter of credit obligations cash collateralized. Notwithstanding anything
to the contrary contained in this Agreement or any of the other Loan
Documents including §10.3 hereof, amounts in the Excess Cash Flow Account
may be invested only in readily accessible, unrestricted money market funds
that are solely invested in Government Securities.”

 

11

 

(n) §10.1(g) of the Credit Agreement is amended and restated to read in its entirety as
follows:

“(g) (i) at all times prior to the 2009 Indenture Effective Time,
Indebtedness in an original principal amount not in excess of $105,000,000
evidenced by the Senior Secured Debt Documents or (ii) from and after the
2009 Indenture Effective Time, Indebtedness issued on the date that the 2009
Effective Time occurs in an original principal amount not in excess of
$130,000,000 evidenced by the 2009 Senior Secured Debt Documents;”

(o) §10.1(j) of the Credit Agreement is amended and restated to read in its entirety as
follows:

“(j) other Indebtedness in an aggregate principal amount at any time
outstanding not to exceed $3,000,000; provided that no Event of
Default shall exist (i) prior to the incurrence of such Indebtedness or (ii)
as a result of the incurrence of such Indebtedness;”

(p) §10.1(k) of the Credit Agreement is amended and restated to read in its entirety as
follows:

“(k) Indebtedness in an original principal amount not in excess of (i) at
all times prior to the 2009 Indenture Effective Time, $65,000,000 or (ii)
from and after the 2009 Indenture Effective Time, $25,000,000 (plus any
increase in such $25,000,000 amount solely due to the capitalization of
interest on such Indebtedness by adding such interest to the principal
amount thereof), and evidenced by the Unsecured Term Loan Documents, and any
Permitted Subordinated Refinancing (as defined in the Intercreditor
Agreement (Unsecured Term Loan)) thereof; and”

(q) §10.1 of the Credit Agreement is amended by adding new clause (l) thereto, which shall
read in its entirety as follows:

“(l) Indebtedness representing installment insurance premiums of any
Borrower or any of its Subsidiaries owing to insurance companies in the
ordinary course of business.”

(r) §10.2 of the Credit Agreement is amended by replacing the phrase:

“(2) the restrictions under the Senior Debt Documents as in effect on the
Closing Date and as amended to the extent permitted by §10.13, and (3)
customary anti-assignment provisions in leases and licensing agreements
entered into by such Borrower or such Subsidiary in the ordinary course of
its business,”

 

12

 

appearing therein with the phrase:

“(2) at all time prior to the 2009 Indenture Effective Time, the
restrictions under the Senior Debt Documents as in effect on the Closing
Date and as amended to the extent permitted by §10.13, (3) at all times from
and after the 2009 Indenture Effective Time, restrictions under the 2009
Senior Secured Debt Documents as in effect on the 2009 Indenture Effective
Time and as amended to the extent permitted by §10.13, (4) restrictions
under the Unsecured Term Loan Documents and as amended to the extent
permitted by §10.15, and (5) customary anti-assignment provisions in leases
and licensing agreements entered into by such Borrower or such Subsidiary in
the ordinary course of its business,”

(s) §10.2(k) of the Credit Agreement is amended and restated to read in its entirety as
follows:

“(k) (i) at all times prior to the 2009 Indenture Effective Time, liens
created under, or evidenced or governed by, the Senior Secured Debt
Documents securing Indebtedness permitted by §10.1(g)(i) and other Note
Obligations (as defined in the Senior Secured Debt Documents, as in effect
on the Closing Date), so long as such liens are subject to, and subordinated
to the liens of the Agent pursuant to, all of the terms of the Intercreditor
Agreement, or (ii) from and after the 2009 Indenture Effective Time, liens
created under, or evidenced or governed by, the 2009 Senior Secured Debt
Documents securing Indebtedness permitted by §10.1(g)(ii) as in effect on
the 2009 Indenture Effective Time), so long as such liens are subject to,
and subordinated to the liens of the Agent pursuant to, all of the terms of
the 2009 Intercreditor Agreement (2009 Senior Secured Debt); and”

(t) §10.2 of the Credit Agreement is further amended by deleting the word “and” at the end of
clause (j) thereof and by adding new clause (l) thereto which shall read in its entirety as
follows:

“(l) liens on insurance policies and the proceeds thereof securing the
financing of premiums with respect thereto.”

(u) §10.4(b) of the Credit Agreement is amended and restated to read in its entirety as
follows:

“(b) (A) at all times prior to the 2009 Indenture Effective Time, (i)
payment in respect of or purchase of the Senior Secured Debt funded solely
with the proceeds of the substantially contemporaneous sale or issuance of
common Equity Interest in Parent to Permitted Holders or their Control
Investment Affiliates and (ii) cash payment obligations with respect to
interest and costs and expenses on the Senior Secured Debt to the extent
required by the Senior Secured Debt Documents, (B) from and after the 2009
Indenture Effective Time, (i) payment in respect of or purchase (including
by way of defeasance or satisfaction or discharge) of the 2009 Senior
Secured Debt funded solely with the proceeds of the
substantially contemporaneous sale or issuance of common Equity Interest in
Parent to Permitted Holders or their Control Investment Affiliates, (ii)
cash payment obligations with respect to interest and costs and expenses on
the 2009 Senior Secured Debt to the extent required by the 2009 Senior
Secured Debt Documents, and (iii) purchase of the 2009 Senior Secured Debt
permitted to be made by the Agent in the Agent’s sole discretion in
accordance with §9.20 or (C) payment in full on or about the 2009 Indenture
Effective Time of the Senior Secured Debt contemplated by the definition of
the term “2009 Indenture Effective Time”;”

 

13

 

(v) §10.4(d) of the Credit Agreement is amended and restated to read in its entirety as
follows:

“(d) Distributions made by one or more Borrowers to the Parent solely to
the extent all of the proceeds of such Distributions are promptly, upon the
Parent’s receipt thereof, used by the Parent to make payments of fees and
expenses permitted by clauses (a), (b), (c) or (e) of the proviso to §10.10
(and to the extent that the Parent makes such payments in the form of a
Distribution, such Distributions by the Parent);”

(w) §10.4(e) of the Credit Agreement is amended by replacing the phrase:

“cash payment obligations with respect to interest and costs and expenses on
the Unsecured Term Loan to the extent required by the Unsecured Term Loan
Documents and, so long as”

appearing therein with the phrase:

“(A) reduction in the principal amount of the Unsecured Term Loan in an
amount equal to $25,000,000 as a result of the assumption of the Unsecured
Term Loan pursuant to and in accordance with the Assignment and Assumption
Agreement contemplated by the definition of the term “2009 Indenture
Effective Time”, (B) reduction in the principal amount of the Unsecured Term
Loan in an amount equal to $15,000,000 as a result of the exchange of such
principal amount for the principal of the 2009 Senior Secured Debt in an
amount equal to $4,583,000 pursuant to and in accordance with the Exchange
Agreement contemplated by the definition of the term “2009 Indenture
Effective Time”, (C) cash payment obligations with respect to interest and
costs and expenses on the Unsecured Term Loan to the extent required by the
Unsecured Term Loan Documents; provided, however, that to
the extent any payment of interest on the Unsecured Term Loan is permitted
or required to be made in-kind pursuant to the terms of the Unsecured Term
Loan Documents, such payment shall be paid in-kind and not in cash, and (D)
so long as”.

 

14

 

(x) §10.10 of the Credit Agreement is amended by amending and restating the proviso thereto to
read in its entirety as follows:

“provided that for so long as no Default or Event of Default is
continuing the foregoing restriction shall not apply to (a) payments by the
Borrowers and/or the Parent of reasonable expenses (other than fees and
expenses of outside counsel) of Cocina, SCSF Cantinas, KKR and Canpartners
or their Control Investment Affiliates, in each case incurred by such Person
in its capacity as an owner of the Equity Interests in the Parent
(including, without limitation, reasonable travel expenses and outside
director fees) in an aggregate amount not to exceed $150,000 in any fiscal
year for all such Persons, (b) payments by one or more Borrowers to Parent
to permit Parent to pay franchise taxes, directors fees and reasonable
accounting, legal and administrative expenses of Parent (other than legal
fees and expenses and fees and expenses of auditors and accountants incurred
in connection with any litigation relating to or defaults under this Credit
Agreement) when due, in an aggregate amount not to exceed $500,000 in any
fiscal year, (c) for so long as Real Mex is a member of a group filing a
consolidated or combined tax return with Parent or any direct or indirect
parent of Parent, payments by Real Mex to Parent in respect of an allocable
portion of the tax liabilities of such group that is attributable to Real
Mex and its Subsidiaries (“Tax Payments”); provided,
however, that (A) the Tax Payments shall not exceed the lesser of
(i) the amount of the relevant tax (including any penalties and interest)
that Real Mex would owe if Real Mex were filing a separate tax return (or a
separate consolidated or combined return with its Subsidiaries that are
members of the consolidated or combined group), taking into account any
carryovers and carrybacks of tax attributes (such as net operating losses)
of Real Mex and such Subsidiaries from other taxable years and (ii) the net
amount of the relevant tax that Parent actually owes to the appropriate
taxing authority and (B) any Tax Payments received from Real Mex shall be
paid over to the appropriate taxing authority within 30 days of Parent’s
receipt of such Tax Payments or refunded to Real Mex, (d) payments of fees,
costs and expenses made by Real Mex pursuant to the terms of the Exchange
Fee Agreement, as the same is in effect on the Amendment No. 3 Effective
Date, in an aggregate amount not to exceed $1,200,000, (e) payments made by
one or more Borrowers to Parent to permit Parent to pay reasonable out of
pocket expenses associated with Transactions which are incurred and paid by
the Parent on or before August 31, 2009 as long as the aggregate amount of
such expenses, together with all fees and expenses incurred by the Borrowers
in connection with the Transactions, does not exceed $8,500,000, (f) the
issuance of any common Equity Interests in the Parent to Capstone pursuant
to the Capstone Engagement Letter or any related documents entered into in
connection therewith, and (g) Investments permitted under §10.3(k);”

 

15

 

(y) §10.13 of the Credit Agreement is amended and restated to read in its entirety as follows:

(z) “10.13 Senior Secured Debt Documents, 2009 Senior Secured Debt Documents and Related
Documents. None of the Borrowers will, and none will permit
any of its Subsidiaries to, materially amend, supplement or otherwise modify (pursuant to a
waiver or otherwise) the terms and conditions of any of the Senior Secured Debt Documents, the 2009
Senior Secured Debt Documents, the 2009 Unsecured Term Loan Subordination Agreement (Senior Secured
Debt), or the 2009 Unsecured Term Loan Subordination Agreement (2009 Senior Secured Debt) without
the prior written consent of the Agent.”

(aa) §10.14 of the Credit Agreement is amended and restated to read in its entirety as
follows:

“10.14 Intentionally Omitted.”

(bb) §11.1 of the Credit Agreement is amended and restated to read in its entirety as follows:

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

	 	 	 
	Period	 	 
	(inclusive of end dates)	 	Ratio
	 	

	January 1, 2006 – December 31, 2007
	 	3.85 to 1.00
	January 1, 2008 – March 31, 2008
	 	4.00 to 1.00
	April 1, 2008 – June 30, 2008
	 	4.00 to 1.00
	July 1, 2008 – September 30, 2008
	 	4.00 to 1.00
	October 1, 2008 – March 31, 2009
	 	5.25 to 1.00
	April 1, 2009 and thereafter
	 	6.00 to 1.00

(cc) §11.2 of the Credit Agreement is amended and restated to read in its entirety as follows:

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

	 	 	 
	Period	 	 
	(inclusive of end dates)	 	Ratio
	 	

	January 1, 2006 – December 31, 2007
	 	5.95 to 1.00
	January 1, 2008 – March 31, 2008
	 	6.25 to 1.00
	April 1, 2008 – June 30, 2008
	 	6.15 to 1.00
	July 1, 2008 – September 30, 2008
	 	6.15 to 1.00
	October 1, 2008 – March 31, 2009
	 	6.85 to 1.00
	April 1, 2009 and thereafter
	 	7.25 to 1.00

 

16

 

(dd) §11.3 of the Credit Agreement is amended and restated to read in its entirety as follows:

“11.3 Minimum Interest Coverage Ratio. The Borrowers will not permit
the Interest Coverage Ratio, determined for any Measurement Period ending on the
last day of each fiscal quarter, to be less than 1.10 to 1.00.”

(ee) §11.4(A) of the Credit Agreement is hereby amended and restated to read in its entirety
as follows:

“(A) The Borrowers will not make, and will not permit any of their
Subsidiaries to make, any Capital Expenditures in excess of the lesser of:

(I) the maximum amount permitted by Section 4.21 of the 2009 Indenture, and

(II) (other than Capital Expenditures funded solely with the proceeds of a
sale or issuance of common Equity Interests in Parent to Permitted Holders or
their Control Investment Affiliates received by Parent no earlier than the
60th day prior to the date that the applicable Capital Expenditure is made
and no later than the date that the applicable Capital Expenditure is made)
$20,000,000 in any fiscal year (each a “Capital Expenditure
Limitation”); provided, however, in the event the
Borrowers and their Subsidiaries do not expend the entire Capital Expenditure
Limitation in any fiscal year, the Borrowers and their Subsidiaries may carry
forward to the immediately succeeding fiscal year the unutilized portion not
to exceed $5,000,000 (it being understood and agreed that all Capital
Expenditures shall first be applied to reduce the applicable Capital
Expenditure Limitation and then to reduce the carry-forward from the previous
fiscal year, if any); provided, further, however,
that if Consolidated EBITDA for any fiscal year (each a “Test Year”)
is equal to or greater than $45,000,000, the Borrowers and their Subsidiaries
shall be permitted to make Capital Expenditures during the fiscal year
following such Test Year in an aggregate amount not to exceed 50% of
Consolidated EBITDA for such Test Year (plus Capital Expenditures funded
solely with the proceeds of a sale or issuance of common Equity Interests in
Parent to Permitted Holders or their Control Investment Affiliates received
by Parent no earlier than the 60th day prior to the date that the applicable
Capital Expenditure is made and no later than the date that the applicable
Capital Expenditure is made)”.

 

17

 

(ff) §11.5 of the Credit Agreement is amended and restated to read in its entirety as follows:

“11.5 Minimum Consolidated Cash Flow. The Borrowers will not permit the Consolidated
Cash Flow, determined for any Measurement Period ending on the last
day of any fiscal quarter (commencing with the fiscal quarter ending on or about June 30,
2009), to be less than $32,000,000.”

(gg) §13.5 of the Credit Agreement is amended and restated to read in its entirety as follows:

“13.5 Monthly Debt to EBITDA Ratio Compliance. The ratio of (a)
Consolidated Funded Indebtedness as of the close of business on the last day
of the then most recently completed full fiscal month (such day being a
“Compliance Date”) to (b) Consolidated EBITDA for the period of the
most recent four (4) consecutive fiscal quarters ending on or prior to the
relevant Compliance Date for which financial statements have been delivered
pursuant to §9.4(b), does not exceed 6.00 to 1.00. For the purpose of
determining compliance with the above monthly Debt to EBITDA ratio covenant
for the measurement period ending on or about July 31, 2009, the term
“Consolidated Funded Indebtedness” shall not include Senior Secured Debt.”

§14.1(c) of the Credit Agreement is amended by replacing the phrase “§§ 9.5, 9.7.1, 9.9,”
appearing therein with the phrase “§§ 9.5, 9.7.1, 9.9, 9.19, 9.20”.

(hh) §14.1(j) of the Credit Agreement is amended and restated to read in its entirety as
follows:

“(j) (A) the holders of all or any part of the Senior Secured Debt shall
accelerate the maturity of all or any part of the Senior Secured Debt, or
the Senior Secured Debt or any Equity Interest in the Parent or any
Subsidiary of the Parent shall be prepaid, redeemed or repurchased in whole
or in part, or any event of default shall occur with respect to the Senior
Secured Debt (other than redemption of the Senior Secured Debt contemplated
by the definition of the term “2009 Indenture Effective Time”) or (B) the
holders of all or any part of the 2009 Senior Secured Debt shall accelerate
the maturity of all or any part of the 2009 Senior Secured Debt, or the 2009
Senior Secured Debt or any Equity Interest in the Parent or any Subsidiary
of the Parent shall be prepaid, redeemed or repurchased in whole or in part
(other than to the extent such prepayment, redemption or repurchase is
permitted by §10.4(b)(B) or §10.4(c)), or any event of default shall occur
with respect to the 2009 Senior Secured Debt;”

(ii) §14.1(k) of the Credit Agreement is amended by replacing the phrase “any holder of all or
any part of the Senior Secured Debt” appearing therein with the phrase “any holder of all or any
part of the Senior Secured Debt, any holder of all or any part of the 2009 Senior Secured Debt”.

 

18

 

(jj) §14.1(s) of the Credit Agreement is amended and restated to read in its entirety as
follows:

“(s)(i) any default or event of default shall occur under the 2009 Parent
Debt Documents, (ii) the Parent shall incur any Indebtedness other than
the Permitted Parent Debt and its guaranty of the 2009 Senior Secured Debt
to the extent such guaranty is subject to the 2009 Intercreditor Agreement
(2009 Senior Secured Debt), or (iii) the Parent, any Borrower or any of
their Subsidiaries shall (A) materially amend, supplement or otherwise
modify (pursuant to a waiver or otherwise) the terms and conditions of any
of the Permitted Parent Debt or (B) refinance, refund, extend, renew or
replace any of the Permitted Parent Debt, in each case, without the prior
written consent of the Agent, if the effect of such amendment, supplement or
other modification or waiver or such refinancing, refunding, extension,
renewal or replacement is to (u) increase the interest rate payable on the
relevant Indebtedness thereunder, (v) increase the cash portion of any
interest required to be paid thereon, (w) change (to earlier dates) any
dates upon which payments of principal or interest are due thereon, (x)
increase the obligations of the obligor or obligors thereunder, (y) increase
the principal amount of such Indebtedness in excess of the amounts set forth
in the definitions of the term “2009 Parent Debt” plus the amount of any
accrued and unpaid interest thereon, or (z) confer any additional rights on
the holders of the relevant Indebtedness thereunder which would be adverse
to the Borrowers or any of the their Subsidiaries, the Agent or the
Lenders;”

(kk) §14.1(t) of the Credit Agreement is amended and restated to read in its entirety as
follows:

“(t) the Parent shall engage is any business activities or has any other
assets other than (i) its ownership of 100% of the capital stock and
economic interest of Real Mex, (ii) performing its obligations and
activities incidental thereto under the Loan Documents and under the terms
and conditions of the Permitted Parent Debt, (iii) making or receiving
Restricted Payments to the extent permitted by this Credit Agreement and
(iv) its secured guaranty of the 2009 Senior Secured Debt to the extent the
liens securing such guaranty are subordinated to the liens of the Agent
pursuant to the 2009 Intercreditor Agreement (2009 Senior Secured Debt);”

(ll) §14.1(v) of the Credit Agreement is amended by replacing the phrase “other than liens in
favor of the Agent for the benefit of the Lenders and the Agent under the Loan Documents” appearing
therein with the phrase “other than liens in favor of the Agent for the benefit of the Lenders and
the Agent under the Loan Documents and, subject to the 2009 Intercreditor Agreement (2009 Senior
Secured Debt), liens granted by Parent to secure its guaranty of the 2009 Senior Secured Debt”.

(mm) Exhibit C to the Credit Agreement is amended and restated to read in its entirety
as Exhibit C attached hereto.

 

19

 

4. Conditions. This Agreement shall be effective on the first day on which each of
the following conditions precedent have been satisfied; provided, however, that if
the 2009 Indenture Effective Time (as such term is defined in Section 3(d) of this
Agreement above) does not occur on or prior to July 31, 2009, the amendments set forth in
Section 3 of this Agreement shall become null and void and of no further force or effect at
11:59 p.m. (Chicago time) on July 31, 2009:

(a) The Agent shall have received a counterpart signature of the Borrowers and the Lenders to
this Agreement;

(b) The Borrowers shall have paid, in immediately available funds, to the Agent for the
account of the Lenders (i) a fully earned and non-refundable consent fee in an amount equal to
$600,000 and (ii) a fully earned and non-refundable modification fee in an amount equal to
$600,000;

(c) The Borrowers shall deliver all other documents listed on, take all actions set forth on
and satisfy all other conditions precedent listed in the Closing Checklist attached hereto as
Annex A, all in form and substance, or in a manner, reasonably satisfactory to the Agent;
and

(d) The Borrowers shall have paid to the Lenders or the Agent, all fees that are due and
payable on or before the date hereof and shall have reimbursed the Agent for, or paid directly, all
fees, costs and expenses incurred by the Agent’s counsel in connection with the closing of the
transactions contemplated hereby.

5. Representations and Warranties. The Borrowers represent and warrant to the Lenders
and the Agent as follows:

(a) The execution, delivery and performance of this Agreement (i) is within the corporate
authority of such Person, (ii) has been duly authorized by all necessary corporate proceedings,
(iii) does not conflict with or result in any breach or contravention of any provision of law,
statute, rule or regulation to which any of the Borrowers or any of their Subsidiaries is subject
or any judgment, order, writ, injunction, license or permit applicable to any of the Borrowers or
any of their Subsidiaries and (iv) does not conflict with any provision of the corporate charter or
bylaws of, or any agreement or other instrument binding upon, any of the Borrowers or any of their
Subsidiaries.

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

(c) The execution, delivery and performance by each of the Borrowers and their Subsidiaries of
this Agreement, does not require the approval or consent of, or filing with, any governmental
agency or authority other than those already obtained.

 

20

 

(d) Immediately prior to the execution of this Agreement, none of the Parent or any of its
Subsidiaries are in breach of or default under any of the following agreements (or which breach or
default has been, or is contemporaneously herewith being, cured or waived):

(i) any Unsecured Term Loan Document;

(ii) any Senior Secured Debt Document; or

(iii) any other agreement unless, in each case, the breach or default thereunder could
not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

(e) Each of the representations and warranties of any of the Borrowers and their Subsidiaries
contained in the Credit Agreement, the other Loan Documents or in any document or instrument
delivered pursuant to or in connection with the Credit Agreement shall be true as of the date as of
which they were made and shall also be true at and as of the time and after giving effect to this
Agreement, the Unsecured Credit Agreement Amendment, the Intercreditor Agreement (Unsecured Term
Loan) Amendment and the performance of each of the transactions contemplated thereby, including the
Exchange, with the same effect as if made at and as of that time (except to the extent of changes
resulting from transactions contemplated or permitted by the Credit Agreement and the other Loan
Documents and changes occurring in the ordinary course of business that singly or in the aggregate
are not materially adverse, and to the extent that such representations and warranties relate
expressly to an earlier date) and, after giving effect to this Agreement, no Default or Event of
Default shall have occurred and be continuing.

 

21

 

6. Execution in Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which when taken together shall
constitute but one and the same instrument.

7. Continuing Effect of the Credit Agreement. Except as expressly set forth herein,
this Agreement shall not by implication or otherwise limit, impair, constitute a waiver of, or
otherwise affect the rights and remedies of the Lenders, the Agents or the Borrowers under the
Credit Agreement and shall not alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the Credit Agreement, all of which
are ratified and affirmed in all respects and shall continue in full force and effect. Nothing
herein shall be deemed to entitle the Borrowers to a consent to, or a waiver, amendment,
modification or other change of, any of the terms, conditions, obligations, covenants or agreements
contained in the Credit Agreement in similar or different circumstances. This Agreement shall
apply and be effective only with respect to the provisions of the Credit Agreement specifically
referred to herein. After the effectiveness of this Agreement, any reference to the Credit
Agreement shall mean the Credit Agreement as amended and modified hereby.

8. Applicable Law. THIS AGREEMENT IS A CONTRACT UNDER THE LAWS OF THE STATE OF
ILLINOIS AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
SAID STATE OF ILLINOIS (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW).

9. Headings. Headings herein are included herein for convenience of reference only
and shall not constitute a part hereof for any other purpose or be given any substantive effect.

10. Loan Document. This Agreement shall constitute a Loan Document.

11. Reaffirmation. Each of the Borrowers hereby confirms its respective guarantees,
pledges, grants of security interests and mortgages and other obligations, as applicable, under and
subject to the terms of each of the other Loan Documents to which it is party, and agrees that,
notwithstanding the effectiveness of this Agreement, such guarantees, pledges, grants of security
interests and mortgages and other obligations, and the terms of each of the other Loan Documents to
which it is a party, are not impaired or affected in any manner whatsoever and shall continue to be
in full force and effect after giving effect to this Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

22

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 4 to Second Amended and
Restated Revolving Credit Agreement to be executed and delivered by their respective officers
thereunto duly authorized as of the date first written above.

	 	 	 	 	 
	 	REAL MEX RESTAURANTS, INC.

ACAPULCO RESTAURANTS, INC.

EL TORITO FRANCHISING COMPANY

EL TORITO RESTAURANTS, INC.

TARV, INC.

ACAPULCO RESTAURANT OF VENTURA, INC.

ACAPULCO RESTAURANT OF WESTWOOD, INC.

ACAPULCO MARK CORP.

MURRAY PACIFIC

ALA DESIGN, INC.

REAL MEX FOODS, INC.

ACAPULCO RESTAURANT OF DOWNEY, INC.

ACAPULCO RESTAURANT OF MORENO VALLEY, INC.

EL PASO CANTINA, INC.

CKR ACQUISITION CORP.

CHEVYS RESTAURANTS, LLC

 
	 	By:  	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Signature Page to

Amendment No. 4 to Credit Agreement

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 4 to Second Amended and
Restated Revolving Credit Agreement to be executed and delivered by their respective officers
thereunto duly authorized as of the date first written above.

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL
CORPORATION,
 as Agent and sole Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Signature Page to

Amendment No. 4 to Credit Agreement

 

 

 

ACKNOWLEDGMENT, CONSENT AND REAFFIRMATION

Parent hereby acknowledges the receipt of the above Amendment No. 4 to Second Amended and Restated
Revolving Credit Agreement and consents to the terms and provision thereof, and hereby (i) confirms
and reaffirms all of its guarantees, pledges, grants of security interests and other obligations
and undertakings under the Parent Guaranty, the applicable Stock Pledge Agreement and each of the
other Loan Documents to which it is a party and (ii) acknowledges and agrees that subsequent to,
and after taking account of the provisions of the above Amendment No. 4 to Second Amended and
Restated Revolving Credit Agreement, such guarantees, pledges, grants of security interests and
other obligations and undertakings and the terms of each such Loan Documents are not impaired or
affected in any manner whatsoever and shall continue to be in full force in accordance with the
terms thereof.

Parent hereby represents and warrants that (a) it has full capacity and right to make and perform
this Acknowledgment, Consent and Reaffirmation, and all necessary authority has been obtained; (b)
this Acknowledgment, Consent and Reaffirmation constitutes its legal, valid and binding obligation
enforceable in accordance with its terms, except as enforcement may be limited by equitable
principles and by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to
creditors’ rights generally; (c) the making and performance of this Acknowledgment, Consent and
Reaffirmation does not and will not violate the provisions of any applicable law, regulation or
order, and does not and will not result in the breach of, or constitute a default or require any
consent under, any material agreement, instrument, or document to which it is a party or by which
it or any of its property may be bound or affected; and (d) all consents, approvals, licenses and
authorizations of, and filings and registrations with, any governmental authority required under
applicable law and regulations for the making and performance of this Acknowledgment, Consent and
Reaffirmation have been obtained or made and are in full force and effect.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

Executed this                      day of                                         , 2009.

	 	 	 	 	 
	 	RM RESTAURANT HOLDING CORP.
	 
	 	 	 	 
	 

	By: 	 	 	 
	 

	 	 
	 

	 	Name: 	 
	 

	 	 	 
	 

	 	Title: 	 
	 

	 	 	 

Signature Page to

Acknowledgment, Consent and Reaffirmation

 

 

 

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

                                                             ,
                

General Electric Capital Corporation, as Agent

8377 East Hartford Drive, Suite 200

Scottsdale, Arizona 85255

Ladies and Gentlemen:

Reference is made to the Second Amended and Restated Revolving Credit Agreement, amended and
restated as of January 29, 2007 (as amended, restated, supplemented or otherwise modified and in
effect from time to time, the “Credit Agreement”), by and among REAL MEX RESTAURANTS, INC.
(formerly known as ACAPULCO ACQUISITION CORP.), a Delaware corporation (“Real Mex”), the
other Borrowers referred to therein, GENERAL ELECTRIC CAPITAL CORPORATION (“GE Capital”),
the other Lenders referred to therein, and GE Capital as agent for the Lenders (the
“Agent”). Capitalized terms used herein without definition and which are defined in the
Credit Agreement shall have the respective meanings assigned to such terms in the Credit Agreement.

Pursuant to §9.4(e) of the Credit Agreement, each of the principal financial or accounting officers
of the Borrowers hereby certifies to you as follows: (a) the information furnished in the
calculations attached hereto was true and correct as of the last day of the fiscal [**year**]
[**quarter**] ended                                          (the “Measurement Date”); (b) as of the date of this
certificate, there exists no Default or Event of Default or condition which would, with either or
both the giving of notice or the lapse of time, result in a Default or an Event of Default; and (c)
the financial statements delivered herewith were prepared in accordance with generally accepted
accounting principles applied on a basis consistent with prior periods.

[Remainder of Page Intentionally Left Blank]

 

 

 

IN WITNESS WHEREOF, the undersigned officer has executed this Compliance Certificate as of the date
first written above.

	 	 	 	 	 
	 	REAL MEX RESTAURANTS, INC.

ACAPULCO RESTAURANTS, INC.

EL TORITO FRANCHISING COMPANY

EL TORITO RESTAURANTS, INC.

TARV, INC.

ACAPULCO RESTAURANT OF VENTURA, INC.

ACAPULCO RESTAURANT OF WESTWOOD, INC.

ACAPULCO MARK CORP.

MURRAY PACIFIC

ALA DESIGN, INC.

REAL MEX FOODS, INC.

ACAPULCO RESTAURANT OF DOWNEY, INC.

ACAPULCO RESTAURANT OF MORENO VALLEY, INC.

EL PASO CANTINA, INC.

CKR ACQUISITION CORP.

CHEVYS RESTAURANTS, LLC

 	 
	 	By:  	 
	 	 	Name:  	 
	 	 	Title:  	 
	 

 

 

 

COMPLIANCE CERTIFICATE WORKSHEET

	 	 	 	 	 
	1. Leverage Ratio — Section 11.1
	 	 	 	 
	 
	 	 	 	 
	(a) Consolidated Funded Indebtedness
	 	$	 	 
	 
	 	 	 	 
	(b) Consolidated EBITDA (from item 2(w))
	 	$	 	 
	 
	 	 	 	 
	(c) Leverage Ratio (item 1(a) divided by item 1(b))
	 	 	:1.00	 
	 
	 	 	 	 
	(d) Maximum Leverage Ratio (from §11.1)
	 	 	6.00:1.00	 
	 
	 	 	 	 
	2. Adjusted Leverage Ratio — Section 11.2
	 	 	 	 
	 
	 	 	 	 
	(a) Consolidated Funded Indebtedness (from item 1(a))
	 	$	 	 
	 
	 	 	 	 
	(b) Consolidated Rental Expense for the Measurement Period
ended on or about the Measurement Date multiplied by 8
	 	$	 	 
	 
	 	 	 	 
	(c) Adjusted Debt (the sum of items 2(a) and 2(b))
	 	$	 	 
	 
	 	 	 	 
	(d) Consolidated Rental Expense
	 	$	 	 
	 
	 	 	 	 
	(e) Consolidated Net Income
	 	$	 	 
	 
	 	 	 	 
	(f) to the extent deducted in the calculation of Consolidated
Net Income, income tax expenditures
	 	$	 	 
	 
	 	 	 	 
	(g) Consolidated Pre-Tax Income (the sum of items 2(e) and
2(f))
	 	$	 	 
	 
	 	 	 	 
	(h) to the extent not otherwise included in the calculation of
Consolidated Pre-Tax Income, income of a Person in which any
Borrower holds a minority equity interest to the extent such
income is properly attributable to such minority interest held
by such Borrower and such income has been distributed to such
Borrower in cash
	 	$	 	 
	 
	 	 	 	 
	(i) Consolidated Total Interest Expense
	 	$	 	 
	 
	 	 	 	 
	(j) to the extent deducted in the calculation of Consolidated
Pre-Tax Income, Consolidated Restaurant Pre-Opening Costs
	 	$	 	 
	 
	 	 	 	 
	(k) to the extent deducted in the calculation of Consolidated
Pre-Tax Income, depreciation and amortization expenses
	 	$	 	 
	 
	 	 	 	 
	(l) to the extent deducted in the calculation of Consolidated
Pre-Tax Income and without duplication, other non-cash charges
(including non-cash extraordinary losses) of the Borrowers and
their Subsidiaries for such period,
	 	$	 	 

 

 

 

	 	 	 	 	 
	(m) to the extent deducted in the calculation of Consolidated
Pre-Tax Income and without duplication, Transaction Costs in
an aggregate amount not to exceed $8,000,000
	 	$	                    	 
	 
	 	 	 	 
	(n) to the extent deducted in the calculation of Consolidated
Pre-Tax Income and without duplication, payments to restricted
stockholders of Real Mex pursuant to the Merger Agreement in
an aggregate amount not to exceed $2,400,000
	 	$	                    	 
	 
	 	 	 	 
	(o) to the extent deducted in the calculation of Consolidated
Pre-Tax Income and without duplication, any fees and expenses
paid pursuant to the Management Services Agreement
	 	$	                    	 
	 
	 	 	 	 
	(p) to the extent deducted in the calculation of Consolidated
Pre-Tax Income and without duplication, non-recurring expenses
incurred in connection with certain class action lawsuits set
forth on Schedule 8.7 to the Credit Agreement
	 	$	                    	 
	 
	 	 	 	 
	(q) any claims alleged against the Borrowers and/or their
Subsidiaries that are asserted which arise in whole or in part
from the conduct or alleged conduct of business or any other
action allegedly taken or omitted to be taken by the Borrowers
or any of their Subsidiaries prior to the consummation of the
Merger and that assert substantially the same or substantially
similar legal theories as those relating to the litigation
described above (collectively, the “Existing Litigation”) up
to $8,500,000 in the aggregate
	 	$	                    	 
	 
	 	 	 	 
	(r) to the extent deducted in the calculation of Consolidated
Pre-Tax Income and without duplication, option payments
pursuant to the Merger Agreement in an aggregate amount not to
exceed $6,000,000
	 	$	                    	 
	 
	 	 	 	 
	(s) to the extent deducted in the calculation of Consolidated
Pre-Tax Income and without duplication, documented costs and
expenses consisting of (i) restructuring costs and expenses
incurred and paid by the Parent and/or Borrowers, (ii)
severance payments paid to employees of the Borrowers and
(iii) fees and expenses incurred and paid by the Parent and/or
Borrowers in connection with the closing of the transactions
contemplated by the limited waiver, consent and amendment no.
3 to this Agreement, the limited waiver, consent and amendment
to Unsecured Term Loan Agreement and the New Equity Documents,
each dated as of the Amendment No. 3 Effective Date, in each
case incurred and paid on or before February 15, 2009, in an
amount not to exceed $2,100,000 in the aggregate for all
costs, expenses, payments and fees described in the above
clauses (i), (ii) and (iii)
	 	$	                    	 

 

 

 

	 	 	 	 	 
	(t) to the extent deducted in the calculation of Consolidated
Pre-Tax Income and without duplication, fees and expenses
incurred and paid by the Parent and/or Borrowers in connection
with the closing of the Transactions in each case incurred and
paid by the Parent and/or Borrowers on or before August 31,
2009, in an amount not to exceed $8,500,000 in the aggregate
for all such fees and expenses
	 	$	 	 
	 
	 	 	 	 
	(u) the sum of items 2(g), 2(h), 2(i), 2(j), 2(k), 2(1), 2(m),
2(n), 2(o), 2(p), 2(q), 2(r), 2(s) and 2(t)
	 	$	 	 
	 
	 	 	 	 
	(v) to the extent included in the calculation of Consolidated
Pre-Tax Income, extraordinary non-recurring gains, including
without limitation, gains from asset dispositions
	 	$	 	 
	 
	 	 	 	 
	(w) Consolidated EBITDA for the Measurement Period ended on or
about the Measurement Date (item 2(t)) minus item 2(u)
	 	$	 	 

	 	 	 	 	 
	(x) Consolidated EBITDAR for the Measurement Period ended on
or about the Measurement Date (the sum of items 2(d) and 2(w))
	 	$	 	 
	 
	 	 	 	 
	(y) Adjusted Leverage Ratio (item 2(c) divided by item 2(x))
	 	 	:1.00	 
	 
	 	 	 	 
	(z) Maximum Adjusted Leverage Ratio (from § 11.2)
	 	 	7.25:1.00	 
	 
	 	 	 	 
	3. Minimum Interest Coverage Ratio — Section 11.3
	 	 	 	 
	 
	 	 	 	 
	(a) Consolidated EBITDA (from item 2(w))
	 	$	 	 
	 
	 	 	 	 
	(b) Consolidated Total Interest Expense for the Measurement
Period ended on or about the Measurement Date
	 	$	 	 
	 
	 	 	 	 
	(c) Interest Coverage Ratio (item 3(a) divided by item 3(b))
	 	 	:1.00	 
	 
	 	 	 	 
	(d) Minimum Interest Coverage Ratio (from § 11.3)
	 	 	1.10:1.00	 
	 
	 	 	 	 
	4. Capital Expenditures — Section 11.4
	 	 	 	 
	 
	 	 	 	 
	(a) Total Capital Expenditures
	 	$	 	 
	 
	 	 	 	 
	(b) Capital Expenditures funded solely with the proceeds of a
sale or issuance of common Equity Interests in Parent to
Permitted Holders or their Control Investment Affiliates
received by Parent no earlier than the 60th day prior to the
date that the applicable Capital Expenditure is made and no
later than the date that the applicable Capital Expenditure is
made)
	 	$	 	 

 

 

 

	 	 	 	 	 
	(c) Capital Expenditures (item (a) minus item (b))
	 	$	                    	 
	 
	 	 	 	 
	(b) Consolidated EBITDA for the Test Year
	 	$	                    	 
	 
	 	 	 	 
	(c) Maximum Capital Expenditures (from §11.4) if Revised
Maximum Capital Expenditures does not apply
	 	$	20,000,000	 
	 
	 	 	 	 
	(e) in the event the Borrowers and their Subsidiaries do not
expend the entire Capital Expenditure Limitation in any fiscal
year, the Borrowers and their Subsidiaries may carry forward
to the immediately succeeding fiscal year the unutilized
portion not to exceed $5,000,000 (it being understood and
agreed that all Capital Expenditures shall first be applied to
reduce the applicable Capital Expenditure Limitation and then
to reduce the carry-forward from the previous fiscal year, if
any)
	 	$	                    	 
	 
	 	 	 	 
	(f) If item 4(b) is equal to or greater than $45,000,000, the
Borrowers and their Subsidiaries shall be permitted to make
Capital Expenditures during the fiscal year following such
Test Year in an aggregate amount not to exceed 50% of
Consolidated EBITDA for such Test Year (plus Capital
Expenditures funded solely with the proceeds of a sale or
issuance of common Equity Interests in Parent to Permitted
Holders or their Control Investment Affiliates received by
Parent no earlier than the 60th day prior to the date that the
applicable Capital Expenditure is made and no later than the
date that the applicable Capital Expenditure is made)
	 	$	                    	 
	 
	 	 	 	 
	(g) Revised Maximum Capital Expenditures {item 4(e) plus item
4(f))
	 	$	                    	 
	 
	 	 	 	 
	(h) The maximum amount permitted by Section 4.21 of the 2009
Indenture
	 	$	                    	 
	 
	 	 	 	 
	(i) The lesser of item (h) and item (c) (or if Revised Maximum
Capital Expenditures apply, item (g))
	 	$	                    	 
	 
	 	 	 	 
	5. Minimum Consolidated Cash Flow — Section 11.5
	 	 	 	 
	 
	 	 	 	 
	(a) Consolidated Cash Flow
	 	$	                    	 
	 
	 	 	 	 
	(b) Minimum Consolidated Cash Flow (§ 11.5)
	 	$	32,000,000	 

 

 

 

	 	 	 	 	 
	6. Monthly Debt to EBITDA ratio covenant — Section 13.5
	 	 	 	 
	 
	 	 	 	 
	(a) Compliance Date:                     ,                     
	 	 	 	 
	 
	 	 	 	 
	(b) Consolidated Funded Indebtedness as of the close of
business on of the Compliance Date
	 	$	                    	 
	 
	 	 	 	 
	(c) Consolidated EBITDA for the period of the most recent four
(4) consecutive fiscal quarters ending on or prior to the
Compliance Date
	 	$	                    	 
	 
	 	 	 	 
	(d) Maximum monthly Debt to EBITDA Ratio (from §13.5)
	 	 	6.00:1.00Exhibit 10.7

Exhibit 10.7

Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

DATED AS OF JULY 7, 2009

By and Among

RM RESTAURANT HOLDING CORP.,

as Holdings,

REAL MEX RESTAURANTS, INC.,

as Company,

THE LENDERS PARTY HERETO FROM TIME TO TIME,

as Lenders,

AND

CREDIT SUISSE, CAYMAN ISLANDS BRANCH

as Administrative Agent, Sole Bookrunner and Sole Lead Arranger

 

$25,000,000 TERM LOAN FACILITY

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 1. DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	1.1 Certain Defined Terms
	 	 	2	 
	1.2 Defined Terms; Accounting Terms; Utilization of GAAP for Purposes of
Calculations Under Agreement
	 	 	22	 
	 
	 	 	 	 
	SECTION 2. AMOUNTS AND TERMS OF COMMITMENTS AND TERM LOANS
	 	 	22	 
	 
	 	 	 	 
	2.1 Term Loans
	 	 	22	 
	2.2 Interest on the Term Loans
	 	 	23	 
	2.3 Fees
	 	 	24	 
	2.4 Repayments and Prepayments; General Provisions Regarding Payments
	 	 	24	 
	A. Scheduled Maturity of Term Loans
	 	 	24	 
	B. Prepayments
	 	 	24	 
	2.5 Use of Proceeds
	 	 	28	 
	2.6 [Intentionally Omitted]
	 	 	28	 
	2.7 Increased Costs; Taxes
	 	 	28	 
	2.8 Mitigation Obligations; Replacement of Lenders
	 	 	31	 
	 
	 	 	 	 
	SECTION 3. CONDITIONS TO EFFECTIVENESS
	 	 	32	 
	 
	 	 	 	 
	3.1 Conditions to Effectiveness on the Restatement Date
	 	 	32	 
	 
	 	 	 	 
	SECTION 4. REPRESENTATIONS AND WARRANTIES
	 	 	36	 
	 
	 	 	 	 
	4.1 Organization, Powers, Qualification, Good Standing, Business and Subsidiaries
	 	 	37	 
	4.2 Authorization, etc.
	 	 	37	 
	4.3 Financial Condition
	 	 	38	 
	4.4 No Material Adverse Change
	 	 	39	 
	4.5 Title to Properties; Liens; Real Property; Intellectual Property
	 	 	39	 
	4.6 Litigation; Compliance with Law
	 	 	40	 
	4.7 Payment of Taxes
	 	 	40	 
	4.8 Performance of Agreements; Materially Adverse Agreements
	 	 	40	 
	4.9 Governmental Regulation
	 	 	40	 
	4.10 Securities Activities
	 	 	41	 
	4.11 ERISA
	 	 	41	 
	4.12 Certain Fees
	 	 	41	 
	4.13 Environmental Matters
	 	 	42	 
	4.14 Employee Matters
	 	 	42	 
	4.15 Solvency
	 	 	42	 
	 
	 	 	 	 
	SECTION 5. AFFIRMATIVE COVENANTS
	 	 	43	 
	 
	 	 	 	 
	5.1 Financial Statements and Other Reports and Notices
	 	 	43	 
	5.2 Corporate Existence; Maintenance of Properties
	 	 	45	 
	5.3 Taxes
	 	 	45	 

 

i 

 

Table of Contents

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	5.4 Insurance
	 	 	46	 
	5.5 Inspection
	 	 	46	 
	5.6 Compliance with Laws, Contracts, Licenses, and Permits
	 	 	47	 
	5.7 Environmental Laws
	 	 	47	 
	5.8 Employee Benefit Plans
	 	 	49	 
	5.9 Reporting
	 	 	49	 
	5.10 Use of Proceeds
	 	 	49	 
	5.11 Further Assurances
	 	 	49	 
	5.12 Conduct of Business; Stores
	 	 	50	 
	5.13 New Subsidiaries
	 	 	50	 
	 
	 	 	 	 
	SECTION 6. NEGATIVE COVENANTS
	 	 	50	 
	 
	 	 	 	 
	6.1 Indebtedness
	 	 	50	 
	6.2 Liens and Related Matters
	 	 	52	 
	6.3 Investments
	 	 	54	 
	6.4 Restricted Payments
	 	 	55	 
	6.5 Restriction on Fundamental Changes; Asset Sales
	 	 	56	 
	6.6 Sales and Lease-Backs
	 	 	56	 
	6.7 Employee Benefit Plans
	 	 	57	 
	6.8 Change in Fiscal Year
	 	 	57	 
	6.9 Transactions with Affiliates
	 	 	57	 
	6.10 Holdings Credit Documents, Senior Secured Note Documents and Revolving
Credit Documents
	 	 	58	 
	6.11 Business of Holdings
	 	 	58	 
	 
	 	 	 	 
	SECTION 7. EVENTS OF DEFAULT
	 	 	59	 
	 
	 	 	 	 
	7.1 Failure to Make Payments When Due
	 	 	59	 
	7.2 Default in Other Agreements
	 	 	59	 
	7.3 Breach of Certain Covenants
	 	 	60	 
	7.4 Breach of Representation or Warranty
	 	 	60	 
	7.5 Other Defaults Under Loan Documents
	 	 	60	 
	7.6 Involuntary Bankruptcy; Appointment of Receiver, etc.
	 	 	60	 
	7.7 Voluntary Bankruptcy; Appointment of Receiver, etc.
	 	 	61	 
	7.8 Judgments and Attachments
	 	 	61	 
	7.9 Dissolution
	 	 	61	 
	7.10 Employee Benefit Plans
	 	 	61	 
	7.11 Invalidity of the Guarantee Agreement
	 	 	61	 
	7.12 Change of Control
	 	 	62	 
	 
	 	 	 	 
	SECTION 8. ADMINISTRATIVE AGENT
	 	 	62	 
	 
	 	 	 	 
	8.1 Appointment
	 	 	62	 
	8.2 Rights as a Lender
	 	 	63	 
	8.3 Exculpatory Provisions
	 	 	63	 
	8.4 Reliance by the Administrative Agent
	 	 	64	 
	8.5 Delegation of Duties
	 	 	64	 

 

ii 

 

Table of Contents

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	8.6 Resignation of Administrative Agent
	 	 	64	 
	8.7 Non-Reliance on Agent and Other Lenders
	 	 	65	 
	8.8 Withholding
	 	 	65	 
	 
	 	 	 	 
	SECTION 9. MISCELLANEOUS
	 	 	65	 
	 
	 	 	 	 
	9.1 Assignments and Participations in Term Loans
	 	 	65	 
	9.2 Expenses; Indemnity; Damage Waiver
	 	 	68	 
	9.3 Right of Set-Off
	 	 	70	 
	9.4 Sharing of Payments by Lenders
	 	 	70	 
	9.5 Amendments and Waivers
	 	 	71	 
	9.6 Independence of Covenants
	 	 	72	 
	9.7 Notices
	 	 	72	 
	9.8 Survival of Representations, Warranties and Agreements
	 	 	73	 
	9.9 Failure or Indulgence Not Waiver; Remedies Cumulative
	 	 	73	 
	9.10 Marshalling; Payments Set Aside
	 	 	73	 
	9.11 Severability
	 	 	74	 
	9.12 Obligations Several; Independent Nature of the Lenders’ Rights
	 	 	74	 
	9.13 Maximum Amount
	 	 	74	 
	9.14 Headings
	 	 	75	 
	9.15 Governing Law
	 	 	75	 
	9.16 Consent to Jurisdiction and Service of Process
	 	 	75	 
	9.17 Waiver of Jury Trial
	 	 	76	 
	9.18 Confidentiality
	 	 	76	 
	9.19 Counterparts; Integration; Effectiveness; Electronic Execution
	 	 	77	 
	9.20 Restatement
	 	 	77	 

 

iii 

 

EXHIBITS

	 	 	 
	I
	 	FORM OF ASSIGNMENT AGREEMENT

	II
	 	FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

	III
	 	FORM OF CANPARTNERS EXCHANGE AGREEMENT

	IV
	 	FORM OF HOLDINGS GUARANTEE AGREEMENT

	V
	 	FORM OF GUARANTEE AGREEMENT

	VI
	 	FORM OF TERM NOTE

	VII
	 	FORM OF FINANCIAL CONDITION CERTIFICATE

	VIII
	 	FORM OF COMPLIANCE CERTIFICATE

	IX
	 	FORM OF OPINIONS OF COUNSEL TO LOAN PARTIES

SCHEDULES

	 	 	 	 	 
	2.1A	 	 	TERM LOAN COMMITMENTS

	3.1M	 	 	CORPORATE STRUCTURE; CAPITAL STRUCTURE; OWNERSHIP

	3.1O	 	 	LITIGATION

	4.1D	 	 	CERTAIN REGISTRATION RIGHTS

	4.6	 	 	COMPLIANCE WITH LAW

	4.11	 	 	ERISA

	6.1	 	 	CERTAIN EXISTING INDEBTEDNESS

	6.2	 	 	CERTAIN EXISTING LIENS

	6.3	 	 	CERTAIN EXISTING INVESTMENTS

 

iv 

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

This SECOND AMENDED AND RESTATED CREDIT AGREEMENT is dated as of July 7, 2009 and entered into
by and among RM RESTAURANT HOLDING CORP., a Delaware corporation (“Holdings”), REAL MEX
RESTAURANTS, INC., a Delaware corporation (the “Company”), THE BANKS, FINANCIAL INSTITUTIONS AND
OTHER ENTITIES PARTY HERETO FROM TIME TO TIME AS LENDERS and CREDIT SUISSE, CAYMAN ISLANDS BRANCH
(“CS”), as administrative agent for the Lenders (and in such capacity and together with its
successors, the “Administrative Agent”), and as sole bookrunner and lead arranger (in such
capacity, the “Lead Arranger”).

WHEREAS, Holdings and the Company entered into that certain Agreement and Plan of Merger (the
“Merger Agreement”) dated as of August 21, 2006 (the “Merger Date”), by and among
Holdings, the Company, RM Integrated, Inc., a wholly-owned subsidiary of Holdings (“Newco”), and
Bruckmann, Rosser, Sherrill & Co., Inc., as representative for the benefit of the Former Securities
Holders (as defined therein) (collectively, the “Sellers”) pursuant to which Newco merged
with and into the Company on the terms and subject to the conditions set forth in the Merger
Agreement, with the Company being the surviving corporation of the transactions contemplated
therein and becoming a wholly-owned subsidiary of Holdings (the “Merger”);

WHEREAS, in connection with the Merger, Holdings incurred the Bank of Montreal Indebtedness to
pay the Sellers in cash the consideration for the Merger pursuant to the terms of the Merger
Agreement (the “Merger Consideration”) and transaction fees and expenses;

WHEREAS, pursuant to that certain Amended and Restated Credit Agreement, the Lenders agreed to
amend and restate the Original Credit Agreement and provide a senior unsecured term loan facility
to the Company in an aggregate amount not to exceed $65,000,000 as set forth therein;

WHEREAS, fees and expenses incurred in connection with the foregoing (the “Transaction
Costs”) were paid on or about the Merger Date (the transactions described in this paragraph,
together with the Merger and the execution, delivery and performance by the Loan Parties of the
Loan Documents, are collectively referred to herein as the “Transactions”);

WHEREAS, the Lender previously agreed, severally and not jointly, to amend and restate the
Original Credit Agreement and provide a senior unsecured term loan facility to the Company in an
aggregate amount not to exceed $65,000,000, as set forth in the Amended and Restated Credit
Agreement;

WHEREAS, the Lenders have agreed, severally and not jointly, to amend and restate the Amended
and Restated Credit Agreement and provide a senior unsecured term loan facility to the Company in
an aggregate amount not to exceed $25,000,000 as set forth herein;

WHEREAS, Holdings and the Subsidiary Guarantors have agreed to guarantee, on a joint and
several basis, the obligations of the Company hereunder;

WHEREAS, pursuant to the Canpartners Exchange Agreement, Canpartners will exchange
$15,000,000 of the principal amount of term loans outstanding under the Amended and Restated Credit
Agreement (the “Exchanged Term Loans”) for $4,583,000 face amount of Senior Secured Notes
(the “Exchanged Notes”) and the Lenders shall release the Company from such assigned
obligations; and

WHEREAS, pursuant to the Assignment and Assumption Agreement, Holdings will assume $25,000,000
of the principal amount of the obligations of the Company outstanding under the Amended and
Restated Credit Agreement pursuant to the terms of the Holdings Credit Agreement and the Lenders
shall release the Company from such assumed obligations.

 

1

 

Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto agree as follows:

SECTION 1.

DEFINITIONS

1.1 Certain Defined Terms.

The following terms used in this Agreement shall have the following meanings:

“2009 Indenture Effective Time” has the meaning assigned to such term in the Revolving
Credit Agreement.

“2009 Transaction” means the termination of the Existing Senior Secured Note Documents
on or about the 2009 Indenture Effective Time and transactions consummated pursuant to (i)
Amendment No. 4 to the Revolving Credit Agreement, (ii) this Agreement and (iii) the Holdings
Credit Documents and (iv) Senior Secured Note Documents.

“Additional PIK Amount” has the meaning assigned to such term in Section 2.2C.

“Administrative Agent” has the meaning assigned to such term in the Preamble to this
Agreement.

“Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent and delivered by Lenders.

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

“Agreement” means this Second Amended and Restated Credit Agreement dated as of July
7, 2009, as it may be amended, restated, supplemented or otherwise modified from time to time.

“Amended and Restated Credit Agreement” means the Amended and Restated Credit
Agreement dated as of October 5, 2006, as amended prior to the date hereof.

“Applicable Laws” means, collectively, all statutes, laws, rules, regulations,
ordinances, decisions, writs, judgments, decrees, and injunctions of any Governmental Authority
affecting Holdings, the Company or any of the Subsidiaries or any of their respective assets,
whether now or hereafter enacted and in force, and all Governmental Authorizations relating
thereto.

 

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Second Amended and Restated Credit Agreement

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

“Asset Sale” means the sale, lease, sale and leaseback, assignment, conveyance,
transfer or other disposition by Holdings, the Company or any of the Subsidiaries to any Person
(other than the Company or any Subsidiary Guarantor) of any right or interest in or to property of
any kind whatsoever, whether real, personal or mixed and whether tangible or intangible, including
Capital Stock of any of the Subsidiaries, but excluding (a) sales or other dispositions of assets
(other than Capital Stock of any of the Subsidiaries) in the ordinary course of business, (b)
dispositions between the Subsidiaries that are not Subsidiary Guarantors and (c) sales or other
dispositions of assets (other than Capital Stock of any of the Subsidiaries) having a value not in
excess of $500,000 in a single transaction or series of related transactions.

“Assignment Agreement” means an assignment and assumption agreement in substantially
the form of Exhibit I or in such other form as may be approved by the Administrative Agent.

“Assignment and Assumption Agreement” means the assignment and assumption agreement,
in substantially the form of Exhibit II, pursuant to which Holdings shall assume an
aggregate principal amount of $25,000,000 of the Company’s Term Loans outstanding under and as
defined in the Amended and Restated Credit Agreement.

“Bank of Montreal Indebtedness” means that certain Loan Authorization Agreement dated
as of August 21, 2006, as amended by that certain First Amendment dated as of August 24, 2006, by
and between Holdings and Bank of Montreal, as the same may be amended, amended and restated,
supplemented or otherwise modified from time to time.

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as
now and hereafter in effect, or any successor statute.

“Business Day” means a day other than a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to close.

“Canpartners” means Canpartners Investments IV, LLC.

“Canpartners Exchange Agreement” means the exchange agreement, in substantially the
form of Exhibit III, pursuant to which Canpartners shall exchange an aggregate principal
amount of $15,000,000 of Term Loans under and as defined in the Amended and Restated Credit
Agreement for $4,583,000 in face amount of the Senior Secured Notes.

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

“Capital Expenditures” means, for any period, all direct or indirect (by way of
acquisition of Capital Stock of a Person or the expenditure of cash or the transfer of property or
the incurrence of Indebtedness) expenditures in respect of the purchase or other acquisition of
fixed or Capital Assets that would be required to be capitalized in conformity with GAAP, excluding
(a) normal replacement and maintenance programs properly charged to current operations, (b) the
purchase price of equipment to the extent that the consideration thereof consists of used, worn
out, damaged, obsolete or surplus equipment being traded in at such time or the proceeds of a
concurrent sale of such used, worn out, damaged,
obsolete or surplus equipment, (c) the acquisition of all or substantially all of the assets
of, or any Capital Stock of, another entity or business unit (such as a division) as permitted by
the terms of this Agreement, (d) the amount of any expenditures used to replace assets that have
suffered a casualty for which insurance proceeds have been received or have been properly recorded
as receivable and (e) any item customarily charged directly to expenses or depreciated over a
useful life of twelve (12) months or less in accordance with GAAP.

 

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Second Amended and Restated Credit Agreement

“Capitalized Lease” means any lease under which Holdings, the Company or any of the
Subsidiaries is the lessee or obligor, the discounted future rental payment obligations under which
are required to be capitalized on the balance sheet of the lessee or obligor in accordance with
GAAP.

“Capital Stock” means any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation, any and all equivalent
ownership interests in a Person (other than a corporation), including partnership interests and
membership interests, and any and all warrants, rights or options to purchase or other arrangements
or rights to acquire any of the foregoing.

“Casa Gallardo Restaurants” means the restaurants doing business as Casa Gallardo
located in Fairview Heights, Missouri, St. Louis, Missouri, Bridgeton, Missouri, and Westport,
Missouri.

“Cash” means money, currency or a credit balance in a Deposit Account.

“Cash Equivalents” means, as at any date of determination, (a) marketable securities
(i) issued or directly and unconditionally guaranteed as to interest and principal by the United
States Government or (ii) issued by any agency of the United States the obligations of which are
backed by the full faith and credit of the United States, in each case maturing within one year
after such date; (b) marketable direct obligations issued by any state of the United States of
America or any political subdivision of any such state or any public instrumentality thereof, in
each case maturing within one year after such date and having, at the time of the acquisition
thereof, a rating of at least A 1 from S&P or at least P 1 from Moody’s; (c) commercial paper
maturing no more than one year from the date of creation thereof and having, at the time of the
acquisition thereof, a rating of at least A 1 from S&P or at least P 1 from Moody’s; (d)
certificates of deposit or bankers’ acceptances maturing within one year after such date and issued
or accepted by any Lender or by any commercial bank organized under the laws of the United States
of America or any state thereof or the District of Columbia that (i) is at least “adequately
capitalized” (as defined in the regulations of its primary Federal banking regulator) and (ii) has
Tier 1 capital (as defined in such regulations) of not less than $100,000,000; and (e) shares of
any money market mutual fund that (i) has substantially all of its assets invested continuously in
the types of investments referred to in clauses (a) and (b) above, (ii) has net assets of not less
than $500,000,000, and (iii) has the highest rating obtainable from either S&P or Moody’s.

“Cash Proceeds” means, with respect to any Asset Sale, Cash payments (including any
Cash received by way of deferred payment pursuant to, or monetization of, a note receivable or
otherwise, but only as and when so received) received from such Asset Sale.

“Change in Law” means the occurrence, after the Restatement Date, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental Authority.

“Change of Control” means at any time, the occurrence of one or more of the following
events: (i) Holdings shall at any time fail to own, directly or indirectly, 100% of each class of
issued and outstanding Capital Stock of the Company that carries voting rights and/or economic interests
free and clear of all Liens other than Permitted Liens, (ii) the Permitted Holders shall at any
time fail to own, directly or indirectly, 50.1% of each class of issued and outstanding Capital
Stock of Holdings that carries voting rights and/or economic interests, (iii) the occurrence of any
“Change of Control” under (and as defined in) the Revolving Credit Documents, or (iv) the
occurrence of any “Change of Control” under (and as defined in) the Senior Secured Note Documents.

 

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Second Amended and Restated Credit Agreement

“Closing Date” means January 11, 2005.

“Cocina” means Cocina Funding Corp., LLC.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, any
successor statute and the regulations promulgated and rulings issued thereunder.

“Co-Investors” means H.I.G. Sun Partners, Inc., SCSF Cantinas and any of their Control
Investment Affiliates, and members of the management of Holdings, the Company and the Subsidiaries.

“Commitments” means the commitments of the Lenders to make Term Loans as set forth in
subsection 2.1 A of this Agreement.

“Company” has the meaning assigned to that term in the Preamble to this Agreement.

“Company Intercreditor Agreement” means the Intercreditor Agreement dated as of the
Restatement Date by and among Wells Fargo Bank, National Association, as Trustee under the Senior
Secured Note Indenture, Holdings, the Company, the lenders party thereto and Credit Suisse, Cayman
Islands Branch, as subordinated agent, as amended, restated or otherwise modified from time to
time.

“Compliance Certificate” has the meaning assigned to that term in subsection 5.1A(iv).

“Condemnation Proceeds” has the meaning assigned to that term in subsection
2.4B(iii)(d).

“Confirmation Order” has the meaning assigned to that term in subsection 3.1C(ii).

“Consolidated Cash Flow” has the meaning assigned to such term in the Senior Secured
Note Indenture, as in effect as of the 2009 Indenture Effective Time.

“Consolidated EBITDA” means, for any period, the sum of (a) the Consolidated Pre-Tax
Income of the Company and the Subsidiaries for such period, plus (b) to the extent not otherwise
included in the calculation of Consolidated Pre-Tax Income of the Company and the Subsidiaries,
income of a Person in which the Company holds a minority equity interest to the extent such income
is properly attributable to such minority interest held by the Company and such income has been
distributed to the Company in Cash in such period, plus (c) Consolidated Interest Expense for such
period, plus (d) to the extent deducted in the calculation of Consolidated Pre-Tax Income,
Consolidated Restaurant Pre-Opening Costs and depreciation and amortization expenses of the Company
and the Subsidiaries for such period, plus (e) to the extent deducted in the calculation of
Consolidated Pre-Tax Income and actually paid in cash and without duplication, option payments
pursuant to the Merger Agreement in an aggregate amount not to exceed $6,000,000, plus (f) to the
extent deducted in the calculation of Consolidated Pre-Tax Income and without duplication, other
non-cash charges (including non-cash extraordinary losses) of the Company and the Subsidiaries for
such period, plus (g) to the extent deducted in the calculation of Consolidated Pre-Tax Income and
without duplication, Transaction Costs in an aggregate amount not to exceed $8,000,000, plus (h)
payments to restricted stockholders of the Company

 

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Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

relating to the Merger in an aggregate amount not to exceed $2,400,000, plus (i) any fees and expenses paid pursuant to
the Management Services Agreement, plus (j) non-recurring expenses incurred in connection with (x)
certain class action lawsuits set forth on Schedule 3.1O-1 hereto, (y) any litigation
claims consolidated with any of the litigation matters set forth on Schedule 3.1O-1 hereto
and (z) any claims alleged against the Company and/or the Subsidiaries that are asserted which
arise in whole or in part from the conduct or alleged conduct of business or any other action
allegedly taken or omitted to be taken by the Company or any of the Subsidiaries prior to the
Merger Date and that assert substantially the same or substantially similar legal theories as those
relating to the litigation described above (collectively, the “Existing Litigation”);
provided that the amount of such expenses which are added back pursuant to this clause (j) shall
not exceed $8,500,000 in the aggregate plus (k) to the extent deducted in the calculation of
Consolidated Pre-Tax Income and without duplication, documented costs and expenses consisting of
(i) restructuring costs and expenses incurred and paid by Holdings, the Company and the
Subsidiaries, (ii) severance payments paid to employees of the Company and the Subsidiaries, and
(iii) fees and expenses incurred and paid by Holdings, the Company and/or the Subsidiaries in
connection with the closing of the transactions contemplated by the limited waiver, consent and
amendment to the Amended and Restated Credit Agreement, the limited waiver, consent and amendment
no. 3 to the Revolving Credit Agreement and the New Equity Documents, each dated as of November 13,
2008, in each case incurred and paid on or before February 15, 2009, in an amount not to exceed
$2,600,000 in the aggregate for all costs, expenses, payments and fees described in the above
clauses (i), (ii) and (iii), plus (l) without duplication, a lump sum, non-recurring cash payment
in respect of Taxes for Fiscal Year 2008 on income arising from the cancellation of indebtedness
arising from the Exchange Agreement and the other transactions on November 13, 2008, plus (m) to
the extent deducted in the calculation of Consolidated Pre-Tax Income, and without duplication,
fees and expenses occurred and paid by Holdings and/or the Company in connection with the closing
of the transactions contemplated by Amendment No. 4 to the Revolving Credit Agreement, the Senior
Secured Note Documents, the Holdings Credit Documents and this Agreement, in each case dated as of
the Restatement Date and incurred and paid on or before August 31, 2009, in an amount not to exceed
$8,500,000, minus (n) to the extent included in the calculation of Consolidated Pre-Tax Income,
extraordinary non-recurring gains, including without limitation, gains from asset dispositions.

“Consolidated Interest Expense” means, for any period, the aggregate amount of
interest required to be paid or accrued by the Company and the Subsidiaries during such period on
all Indebtedness of the Company and the Subsidiaries outstanding during all or any part of such
period, whether such interest was or is required to be reflected as an item of expense or
capitalized, including payments consisting of interest in respect of Capitalized Leases or any
Synthetic Lease and including commitment fees, agency fees, facility fees, balance deficiency fees
and similar fees or expenses in connection with the borrowing of money.

“Consolidated Net Income” means, for any period, the consolidated net income (or
deficit) of the Company and the Subsidiaries, after deduction of all expenses, taxes, and other
proper charges, determined in accordance with GAAP.

“Consolidated Pre-Tax Income” means, for any period, Consolidated Net Income for such
period, plus, to the extent deducted from the calculation of Consolidated Net Income, income tax
expenditures for such period, determined in accordance with GAAP.

“Consolidated Restaurant Pre-Opening Costs” means “Start-up costs” (such term used
herein as defined in SOP 98-5 published by the American Institute of Certified Public Accountants)
related to the opening and organizing or conversion of new Stores, such costs including, without
limitation, the cost of feasibility studies, staff-training, and recruiting and travel costs for employees engaged
in such start-up activities.

 

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Second Amended and Restated Credit Agreement

“Contingent Obligation” means, as applied to any Person, any direct or indirect
liability, contingent or otherwise, of that Person (a) with respect to any Indebtedness, lease,
dividend or other obligation of another Person if the primary purpose or intent thereof by the
Person incurring the Contingent Obligation is to provide assurance to the obligee of such
obligation of another Person that such obligation of another Person will be paid or discharged, or
that any agreements relating thereto will be complied with, or that the holders of such obligation
will be protected (in whole or in part) against loss in respect thereof, (b) with respect to any
letter of credit issued for the account of that Person or as to which that Person is otherwise
liable for reimbursement of drawings, or (c) under Rate Protection Agreements or other Hedge
Agreements. Contingent Obligations shall include (a) the direct or indirect guaranty, endorsement
(otherwise than for collection or deposit in the ordinary course of business), co-making,
discounting with recourse or sale with recourse by such Person of the obligation of another, (b)
the obligation to make take-or-pay or similar payments if required regardless of non-performance by
any other party or parties to an agreement, and (c) any liability of such Person for the obligation
of another Person through any agreement (contingent or otherwise) (i) to purchase, repurchase or
otherwise acquire such obligation or any security therefor, or to provide funds for the payment or
discharge of such obligation (whether in the form of loans, advances, stock purchases, capital
contributions or otherwise) or (ii) to maintain the solvency or any balance sheet item, level of
income or financial condition of another Person if, in the case of any agreement described under
subclauses (i) or (ii) of this sentence, the primary purpose or intent thereof is as described in
the preceding sentence. The amount of any Contingent Obligation shall be equal to the amount of the
obligation so guaranteed or otherwise supported or, if less, the amount to which such Contingent
Obligation is specifically limited.

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

“CS” has the meaning assigned to that term in the Preamble to this Agreement.

“Default” means a condition or event that, after notice or after any applicable grace
period has lapsed, or both, would constitute an Event of Default.

“Deposit Account” means a demand, time, savings, passbook or like account with a bank,
savings and loan association, credit union or like organization, other than an account evidenced by
a negotiable certificate of deposit.

“Distribution” means (a) the declaration or payment of any dividend or other
distribution on or in respect of any Capital Stock of a Person, other than dividends or
distributions payable solely in Capital Stock of such Person of the same class; (b) the purchase,
redemption or other retirement of any Capital Stock of a Person, directly or through a Subsidiary
of such Person or otherwise; (c) the return of capital by a Person to the holders of its Capital
Stock as such; or (d) any other distribution on or in respect of any Capital Stock of a Person.

“Dollars” and the sign “$” mean the lawful money of the United States of
America.

 

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Second Amended and Restated Credit Agreement

“Domestic Subsidiary” means any Subsidiary incorporated, formed or organized under the
laws of any jurisdiction within the United States of America or any territory thereof.

“Eligible Assignee” means (a) Lender, (b) an Affiliate of a Lender, (c) an Approved
Fund, and (d) any other Person (other than a natural person) approved by the Administrative Agent
(such approval not to be unreasonably withheld or delayed).

“Employee Benefit Plan” means any “employee benefit plan” as defined in Section 3(3)
of ERISA which is or was sponsored, maintained or contributed to by, or required to be contributed
by, the Company, any of the Subsidiaries or any of their respective ERISA Affiliates.

“Engagement Letter” means that certain engagement letter, dated as of February 27,
2009, between Holdings and Capstone Consulting LLC, as the same may be amended, restated,
supplemented or otherwise modified from time to time.

“Environmental Claim” means any investigation, notice, notice of violation, claim,
action, suit, proceeding, demand, abatement order or other order or directive (conditional or
otherwise), by any Governmental Authority or any other Person, arising (a) pursuant to or in
connection with any actual or alleged violation of any Environmental Law; (b) in connection with
any Hazardous Material or any actual or alleged Hazardous Materials Activity; or (c) in connection
with any actual or alleged damage, injury, threat or harm to health, safety, natural resources or
the environment.

“Environmental Laws” means any and all applicable current or future foreign or
domestic, federal or state (or any subdivision of either of them), statutes, ordinances, orders,
rules, regulations, judgments, Governmental Authorizations, or any other requirements of
Governmental Authorities relating to (a) environmental matters, including those relating to any
Hazardous Materials Activity and the preservation and protection of the environment; (b) the
generation, use, storage, transportation or disposal of, or exposure to, Hazardous Materials; or
(c) occupational safety and health, industrial hygiene, land use or the protection of human, plant
or animal health or welfare, in any manner applicable to Holdings, the Company or any of the
Subsidiaries or any of the Facilities.

“Equity Proceeds” means the cash proceeds (net of underwriting discounts and
commissions and other reasonable costs associated therewith) from the issuance of any Capital Stock
or other equity securities of, or the making of any capital contribution to, the Company after the
Restatement Date. For the avoidance of doubt, the issuance of any Capital Stock or other equity
securities to Capstone Consulting LLC pursuant to the Engagement Letter, or any subsequent capital
contribution of the proceeds of such issuance from Holdings to the Company does not give rise to
any Equity Proceeds.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and any successor statute.

“ERISA Affiliate” means, as applied to any Person, (a) any corporation which is a
member of a controlled group of corporations within the meaning of Section 414(b) of the Code of
which that Person is a member; (b) any trade or business (whether or not incorporated) which is a
member of a group of trades or businesses under common control within the meaning of Section 414(c)
of the Code of which that Person is a member; and (c) any member of an affiliated service group
within the meaning of Section 414(m) or (o) of the Code of which that Person, any corporation
described in clause (a) above or any trade or business described in clause (b) above is a member.
Any former ERISA Affiliate of Holdings, the Company or any of the Subsidiaries shall continue to be
considered an ERISA Affiliate of the Company or any such Subsidiary within the meaning of this
definition with respect to the period such entity was an
ERISA Affiliate of the Company or such Subsidiary and with respect to liabilities arising
after such period for which the Company or such Subsidiary could be liable under the Code or ERISA.

 

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“ERISA Event” means (a) a “reportable event” within the meaning of Section 4043 of
ERISA and the regulations issued thereunder with respect to any Pension Plan (excluding those for
which the provision for 30-day notice to the PBGC has been waived by regulation); (b) the failure
to meet the minimum funding standard of Section 412 of the Code with respect to any Pension Plan
(whether or not waived in accordance with Section 412(d) of the Code) or the failure to make by its
due date a required installment under Section 412(m) of the Code with respect to any Pension Plan
or the failure to make any required contribution to a Multiemployer Plan; (c) the provision by the
administrator of any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a notice of intent to
terminate such plan in a distress termination described in Section 4041(c) of ERISA; (d) the
withdrawal by Holdings, the Company, any of the Subsidiaries or any of their respective ERISA
Affiliates from any Pension Plan with two or more contributing sponsors or the termination of any
such Pension Plan resulting in liability to Holdings, the Company, any of the Subsidiaries or any
of their respective Affiliates pursuant to Section 4063 or 4064 of ER1SA; (e) the institution by
the PBGC of proceedings to terminate any Pension Plan, or the occurrence of any event or condition
which might constitute grounds under ERISA for the termination of, or the appointment of a trustee
to administer, any Pension Plan; (1) the imposition of liability on Holdings, the Company, any of
the Subsidiaries or any of their respective ERISA Affiliates pursuant to Section 4062(e) or 4069 of
ERISA or by reason of the application of Section 4212(c) of ERISA; (g) the withdrawal of Holdings,
the Company, any of the Subsidiaries or any of their respective ERISA Affiliates in a complete or
partial withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer
Plan if there is any potential liability therefore, or the receipt by Holdings, the Company, any of
the Subsidiaries or any of their respective ERISA Affiliates of notice from any Multiemployer Plan
that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA, or that it
intends to terminate or has terminated under Section 4041A or 4042 of ERISA; (h) the occurrence of
an act or omission which could reasonably be expected to give rise to the imposition on Holdings,
the Company, any of the Subsidiaries or any of their respective ERISA Affiliates of fines,
penalties, taxes or related charges under Chapter 43 of the Code or under Section 409, Section
502(c), (i) or (1), or Section 4071 of ERISA in respect of any Employee Benefit Plan; (i) the
assertion of a material claim (other than routine claims for benefits) against any Employee Benefit
Plan other than a Multiemployer Plan or the assets thereof, or against Holdings, the Company, any
of the Subsidiaries or any of their respective ERISA Affiliates in connection with any Employee
Benefit Plan; (j) receipt from the Internal Revenue Service of notice of the failure of any Pension
Plan (or any other Employee Benefit Plan intended to be qualified under Section 401(a) of the Code)
to qualify under Section 401(a) of the Code, or the failure of any trust forming part of any
Pension Plan to qualify for exemption from taxation under Section 501(a) of the Code; or (k) the
imposition of a Lien pursuant to Section 401(a)(29) or 412(n) of the Code or pursuant to ERISA with
respect to any Pension Plan.

“Escrow Agreement” means that certain Escrow Agreement, dated as of August 21, 2006,
by and among J.P. Morgan Trust Company, National Association, as Escrow Agent thereunder, the
Company, Holdings and Sellers.

“Event of Default” means each of the events set forth in Section 7 identified as such.

“Excess Cash Flow” has the meaning assigned to such term in the Senior Secured Note
Indenture.

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, and any successor statute.

 

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Second Amended and Restated Credit Agreement

“Exchange Agreement” means the Exchange Agreement, dated as of November 13, 2008, by
and among Cocina, KKR, Canpartners, SCSF Cantinas and the Company.

“Exchanged Notes” has the meaning assigned to such term in the Recitals to this
Agreement.

“Exchanged Term Loans” has the meaning assigned to that term in the Recitals to this
Agreement.

“Exchange Fee Agreement” means the letter agreement, dated as of November 13, 2008, by
and among Cocina, KKR, Canpartners, SCSF Cantinas and the Company.

“Excluded Foreign Subsidiary” means, at any time, a Foreign Subsidiary that is (or is
treated as) for United States federal income tax purposes either (a) a corporation or (b) a
pass-through entity owned directly or indirectly by another Foreign Subsidiary that is (or is
treated as) a corporation.

“Excluded Taxes” means, with respect to the Administrative Agent, any Lender, or any
other recipient of any payment to be made by or on account of any obligation of the Company
hereunder, (a) taxes imposed on or measured by its overall net income (however denominated), and
franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political
subdivision thereof) under the laws of which such recipient is organized or in which its principal
office is located or, in the case of any Lender, in which its applicable Lender Office is located,
(b) any branch profits taxes imposed by the United States of America or any similar tax imposed by
any other jurisdiction in which the Company is located and (c) in the case of a Foreign Lender
(other than an assignee pursuant to a request by the Company under subsection 2.8B), any
withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign
Lender becomes a party hereto (or designates a new Lender Office) or is attributable to such
Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply with
subsection 2.7E(v), except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new Lender Office (or assignment), to receive additional
amounts from the Company with respect to such withholding tax pursuant to subsection 2.7E(i).

“Existing Intercreditor Agreement” means the subordination and Intercreditor
Agreement, dated as of January 29, 2007 (as the may be may amended, supplemented, restated or
otherwise modified from time to time) among General Electric Capital Corporation, as administrative
agent under the Revolving Credit Documents, the Administrative Agent, Cocina, KKR Financial CLO
2005-2, Ltd., Canpartners, Holdings, the Company and the other Revolver Borrowers.

“Existing Note Company Intercreditor Agreement” means the Intercreditor Agreement
dated as of the Restatement Date, by and among Wells Fargo Bank, National Association, as Trustee
under the Existing Senior Secured Note Indenture, Holdings,the Company, the lenders party thereto
and Credit Suisse, Cayman Islands Branch, as subordinated agent, as amended, restated or otherwise
modified from time to time.

“Existing Senior Secured Note Documents” means (a) the Existing Senior Secured Note
Indenture, (b) the Existing Senior Secured Note Intercreditor Agreement, and (c) the Existing Note
Company Intercreditor Agreement.

“Existing Senior Secured Note Indenture” means the indenture, dated as of March 31,
2004, among the Company, the guarantors party thereto, and Wells Fargo Bank, N.A., pursuant to
which up to $105,000,000 original principal amount of Existing Senior Secured Notes were issued by
the Company, as amended or supplemented in accordance with the terms hereof and in effect from time
to time, and each of the notes, security documents and other documents delivered pursuant thereto.

 

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Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

“Existing Senior Secured Note Intercreditor Agreement” means the Intercreditor
Agreement dated as of March 31, 2004 by and among Wells Fargo Bank, N.A., as Collateral Agent and
Trustee and General Electric Capital Corporation, as successor to Fleet National Bank, as amended,
restated or otherwise modified from time to time.

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

“Facilities” means any and all real property (including all buildings, fixtures or
other improvements located thereon) now, hereafter or heretofore owned, leased, operated or used by
Holdings, the Company or any of the Subsidiaries (but only as to portions thereof actually owned,
leased, operated or used) or any of their respective predecessors or any of their respective
Affiliates that are directly or indirectly controlled by the Company.

“Fiscal Quarter” means each period ending on the last Sunday of March, June, September
and December.

“Fiscal Year” means the fiscal year of the Company and the Subsidiaries ending on the
last Sunday in December of each calendar year.

“Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Company is resident for tax purposes. For purposes of this definition,
the United States of America, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

“Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

“Fund” means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its business.

“Funding and Payment Office” means the office of the Administrative Agent located at
Eleven Madison Avenue, New York, NY 10010 (or such office of the Administrative Agent or any
successor Administrative Agent specified by the Administrative Agent or such successor
Administrative Agent in a notice to the Company and the Lenders).

“GAAP” means, subject to the limitations on the application thereof set forth in
subsection 1.2, generally accepted accounting principles, as in effect in the United States on the
date of determination, consistently applied.

“Governmental Authority” means the government of the United States of America or any
other nation, or of any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government (including any supra-national bodies such as the European Union or the
European Central Bank).

“Governmental Authorization” means any permit, license, authorization, plan,
directive, consent order or consent decree of or from any Governmental Authority.

 

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Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

“Granting Lender” has the meaning assigned to that term in subsection 9.1G.

“Guarantee Agreement” means each of (i) the Guarantee Agreement, substantially in the
form of Exhibit IV executed and delivered by Holdings on the Restatement Date , and (ii)
the Guarantee Agreement, substantially in the form of Exhibit V executed and delivered by
each of the Subsidiary Guarantors on October 5, 2006 and reaffirmed on the Restatement Date
pursuant to the Reaffirmation Agreement, or executed and delivered by any additional Subsidiary
Guarantor from time to time thereafter pursuant to subsection 5.13, each as may be amended,
restated, supplemented or otherwise modified from time to time in accordance with its terms and
this Agreement.

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

“Guarantor” means Holdings or any Subsidiary Guarantor.

“Hazardous Materials” means any chemical, material or substance, the generation, use,
storage, transportation or disposal of which, or the exposure to which, is prohibited, limited or
regulated by any Governmental Authority or which may or could pose a hazard to the health and
safety of the owners, occupants or any Persons in the vicinity of any Facility or to the indoor or
outdoor environment.

“Hazardous Materials Activity” means any past, current, proposed or threatened
activity, event or occurrence involving any Hazardous Materials, including the use, manufacture,
possession, storage, holding, presence, existence, location, Release, threatened Release,
discharge, placement, generation, transportation, processing, construction, treatment, abatement,
removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any
corrective action or response action with respect to any of the foregoing.

“Hedge Agreements” means all Rate Protection Agreements and all other swaps, caps or
collar agreements or similar arrangements entered into by the Company or any of the Subsidiaries
providing for protection against fluctuations in currency exchange rates either generally or under
specific contingencies.

“Holdings” has the meaning assigned to that term in the Preamble to this Agreement.

“Holdings Credit Agreement” means the Credit Agreement dated as of July 7, 2009, among
Holdings, as borrower, Wilmington Trust FSB, as administrative agent, the lenders signatory thereto
from time to time, as amended, amended and restated, supplemented or otherwise modified in
accordance with the terms hereof from time to time.

“Holdings Credit Documents” means the Holdings Credit Agreement, the Assignment and
Assumption Agreement and each other document delivered pursuant thereto.

“Holdings Term Loan” means the indebtedness incurred by Holdings on the Restatement
Date pursuant to the Holdings Credit Agreement.

 

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Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

“Indebtedness” means, as applied to any Person, without duplication, (a) all
obligations of such Person for borrowed money, (b) that portion of obligations of such Person with
respect to Capital Leases that is properly classified as a liability on a balance sheet in
conformity with GAAP, (c) notes payable and drafts accepted representing extensions of credit to
such Person whether or not representing obligations for borrowed money (other than current accounts
payable incurred in the ordinary course of business and accrued expenses incurred in the ordinary course of business), (d) any obligation owed by such
Person for all or any part of the deferred purchase price of property or services (excluding any
such obligations incurred under ERISA and current trade payables incurred in the ordinary course of
business), (e) all obligations of such Person evidenced by notes, bonds (other than performance
bonds), debentures or other similar instruments, (f) all indebtedness of such Person created or
arising under any conditional sale or other title retention agreement with respect to any property
or assets acquired by such Person (even though the rights and remedies of the seller or the lender
under such agreement in the event of default are limited to repossession or sale of such property
or assets), (g) all reimbursement obligations of such Person, contingent or otherwise, as an
account party under any letter of credit or under acceptance, letter of credit or similar
facilities to the extent not reflected as trade liabilities on the balance sheet of such Person in
accordance with GAAP, (h) all obligations of such Person, contingent or otherwise, to purchase,
redeem, retire or otherwise acquire for value any Capital Stock prior to the Term Loan Maturity
Date, (i) all obligations of such Person under Rate Protection Agreements and other Hedge
Agreements, including, as of any date of determination, the net amounts, if any, that would be
required to be paid by such Person if such Hedge Agreements were terminated on such date, (j) all
Contingent Obligations of such Person in respect of obligations of the kind referred to in clauses
(a) through (i) above or in respect of the payment of dividends on the Capital Stock of any other
Person, and (k) all indebtedness secured by any Lien on any property or asset owned or held by such
Person regardless of whether the indebtedness secured thereby shall have been assumed by such
Person or is nonrecourse to the credit of such Person; provided, however, that the obligation of
such Person to pay current year insurance premiums in an amount not to exceed $3,500,000 shall be
excluded from Indebtedness.

“Indemnified Taxes” means Taxes other than Excluded Taxes.

“Indemnitee” has the meaning assigned to that term in subsection 9.2B.

“Insurance Proceeds” has the meaning assigned to that term in subsection 2.4B(iii)(d).

“Intellectual Property” has the meaning assigned to that term in subsection 4.5C.

“Intercreditor Agreement” means that certain subordination and intercreditor
agreement, dated as of January 29, 2007, among General Electric Capital Corporation, as
administrative agent under the Revolving Credit Documents, the Administrative Agent, Cocina, KKR
Financial CLO 2005-2, Ltd., Canpartners, Holdings, the Company and the other Revolver Borrowers.

“Interest Payment Date” means the last Business Day of each of March, June, September
and December of each year.

“Investment” means (a) any direct or indirect purchase or other acquisition by
Holdings, the Company or any of the Subsidiaries of, or of a beneficial interest in, Capital Stock
or other Securities of any other Person, or (b) any direct or indirect loan, advance (other than
advances to employees for moving, entertainment and travel expenses, drawing accounts and similar
expenditures in the ordinary course of business) or capital contribution by Holdings, the Company
or any of the Subsidiaries to any other Person, including any Indebtedness and accounts receivable
acquired from that other Person that are not current assets or did not arise from sales to that
other Person in the ordinary course of business; provided, however, that the term
“Investment” shall not include (i) current trade and customer accounts receivable for goods
furnished or services rendered in the ordinary course of business and payable in accordance with
customary trade terms, (ii) advances and prepayments to suppliers for goods and services in the
ordinary course of business, (iii) Capital Stock or other Securities acquired in connection with
the satisfaction or enforcement of Indebtedness or claims due or owing to Holdings, the Company or
any of the Subsidiaries or as security for any such Indebtedness or claims, (iv) Cash held in
Deposit Accounts with banks, savings and loans, trust companies and the Lenders and (v) shares in a mutual fund
that invests solely in Cash Equivalents. The amount of any Investment shall be the original cost of
such Investment plus the cost of all additions thereto minus all cash dividends or distributions
received in respect thereof, without any adjustments for increases or decreases in value, or
write-ups, write-downs or write-offs with respect to such Investment. Without limitation of the
foregoing, “Investments” shall include the incurring by any Person of Contingent Obligations in
respect of the obligations of any other Person.

 

13

 

Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

“KKR” means, collectively, KKR Financial CLO 2007-1, Ltd., KKR Strategic Capital
Overseas Fund, Ltd., KKR Strategic Capital Fund, L.P., KKR Strategic Capital Institutional Fund,
Ltd.

“Lead Arranger” has the meaning assigned to such term in the Preamble to this
Agreement.

“Leasehold Property” means any leasehold interest of any Loan Party as lessee under
any lease of real property.

“Lender” and “Lenders” means the Persons identified as “Lenders” and listed on
the signature pages of this Agreement, together with their successors and permitted assigns
pursuant to subsection 9.1

“Lender Office” means, as to any Lender, the office or offices of such Lender
specified in the Administrative Questionnaire completed by such Lender and delivered to the
Administrative Agent, or such other office or offices as such Lender may from time to time notify
the Company and the Administrative Agent.

“Lien” means any lien, mortgage, pledge, assignment, security interest, fixed or
floating charge or encumbrance of any kind (including any conditional sale or other title retention
agreement, any lease in the nature thereof, and any agreement to give any security interest) and
any option, trust or deposit or other preferential arrangement having the practical effect of any
of the foregoing.

“Litigation Escrow” means the $6,000,000 escrow fund established in connection with
the Existing Litigation pursuant to the Escrow Agreement.

“Loan Documents” means this Agreement, any Term Notes, the Guarantee Agreement and any
other documents evidencing Obligations.

“Loan Parties” means Holdings, the Company and each Subsidiary Guarantor.

“Management Services Agreements” means, collectively, the management service
agreements or consulting services agreements entered into by and among Holdings, the Company or the
Subsidiaries with the prior written consent of the Requisite Lenders (not to be unreasonably
withheld or delayed) and each in form and substance reasonably satisfactory to the Requisite
Lenders.

“Margin Stock” has the meaning assigned to that term in Regulation U of the Board of
Governors of the Federal Reserve System as in effect from time to time.

“Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations, properties, condition (financial or otherwise) or prospects of Holdings, the Company
and the Subsidiaries, taken as a whole, (b) the ability of any Loan Party to perform any of the
Obligations, (c) the legality, validity, binding effect or enforceability of any Loan Document or
(d) the rights, remedies and benefits available to, or conferred upon, the Lenders or the
Administrative Agent under any Loan Document.

 

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Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

“Maximum Amount” has the meaning assigned to that term in subsection 9.13.

“Merger” has the meaning assigned to that term in the Recitals to this Agreement.

“Merger Agreement” has the meaning assigned to that term in the Recitals to this
Agreement.

“Merger Consideration” has the meaning assigned to that term in the Recitals to this
Agreement.

“Merger Documents” means, collectively, the Merger Agreement and all schedules,
exhibits, annexes and amendments thereto and all side letters and agreements affecting the terms
thereof.

“Moody’s” means Moody’s Investor Services, Inc. or any successor thereto.

“Multiemplover Plan” means a Plan which is a “multiemployer plan” as defined in
Section 3(37) of ERISA.

“Net Cash Proceeds” means, with respect to any Asset Sale, Cash Proceeds of such Asset
Sale net of bona fide direct costs of sale, including (a) income taxes reasonably estimated to be
actually payable as a result of such Asset Sale (after taking into account any available tax
credits or deductions and any tax sharing arrangements reasonably estimated to be applicable in the
relevant tax year), (b) transfer, sales, use and other taxes payable in connection with such Asset
Sale, (c) payment of the outstanding principal amount of, premium or penalty, if any, and interest
on any Indebtedness (other than the Term Loans, any such Indebtedness assumed by the purchaser of
the relevant assets and any Indebtedness under the Senior Secured Note Documents, the Revolving
Credit Documents or the Holdings Credit Documents) that is secured by a Lien on the stock or assets
in question and that is required to be repaid under the terms thereof as a result of such Asset
Sale, (d) brokers’ and financial advisors’ commissions and reasonable fees and expenses of counsel
and other advisors in connection with such Asset Sale and (e) reasonable reserves against
indemnities or other obligations (so long as such indemnity or other obligations are outstanding)
in respect of post-closing and purchase price adjustments (including adjustments related to the
performance or results of any divested or acquired business) in connection with such Asset Sale;
provided that, to the extent and at the time any such amounts are released from
such reserves, such amounts shall constitute Net Cash Proceeds.

“New Equity Documents” means, collectively, (a) the Stockholder Rights Agreement, (b)
the Exchange Agreement, and (c) the Release and Satisfaction.

“Non-Consenting Lender” has the meaning assigned to that term in subsection 9.5B.

“Obligations” means all obligations of every nature of each Loan Party from time to
time owed to the Administrative Agent, the Lenders or any of them or their respective Affiliates
under the Loan Documents or Hedge Agreements (with any Lender or an Affiliate of a Lender), whether
for principal, interest, reimbursement or payments for early termination of Rate Protection
Agreements (with any Lender or an Affiliate of a Lender), fees, expenses, indemnification or
otherwise.

“Officer’s Certificate” means, with respect to any Person, a certificate executed on
behalf of such Person (a) if such Person is a partnership or limited liability company, by its
chairman of the board (if an officer), chief executive officer or chief financial officer or by the
chief executive officer or chief financial officer of its general partner or managing member or
other Person authorized to do so by its Organizational Documents, (b) if such Person is a
corporation, on behalf of such corporation by its chairman of the board (if an officer), chief executive officer, chief financial officer or
vice president, and (c) if such person is the Company or any of the Subsidiaries, a Responsible
Officer.

 

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Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

“Organizational Authorizations” means, with respect to any Person, resolutions of its
Board of Directors, general partners or members of such Person, and such other Persons, groups or
committees (including managers and managing committees), if any, required by the Organizational
Certificate or Organizational Documents of such Person to authorize or approve the taking of any
action or the entering into of any transaction.

“Organizational Certificate” means, with respect to any Person, the certificate or
articles of incorporation, partnership or limited liability company or any other similar or
equivalent organizational, charter or constitutional certificate or document filed with the
applicable Governmental Authority in the jurisdiction of its incorporation, organization or
formation, which, if such Person is a partnership or limited liability company, shall include such
certificates, articles or other certificates or documents in respect of each partner or member of
such Person.

“Organizational Documents” means, with respect to any Person, the by-laws, partnership
agreement, limited liability company agreement, operating agreement, management agreement or other
similar or equivalent organizational, charter or constitutional agreement or arrangement, which, if
such Person is a partnership or limited liability company, shall include such by-laws, agreements
or arrangements in respect of each partner or member of such Person.

“Original Credit Agreement” means that certain credit agreement dated as of January
11, 2005 among the Company, the lenders party thereto from time to time and Credit Suisse (formerly
known as Credit Suisse First Boston), as administrative agent, as amended or modified and in effect
immediately prior to the Restatement Date.

“Other Taxes” means all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment made hereunder or any
other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect
to, this Agreement or any other Loan Document.

“Participant” has the meaning assigned to that term in subsection 9.1D.

“PBGC” means the Pension Benefit Guaranty Corporation established pursuant to Subtitle
A of Title IV of ERISA (or any successor thereto).

“Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which
is subject to Section 412 of the Code or Section 302 of ERISA.

“Permitted Holders” means, collectively, (a) Cocina, KKR, Canpartners and Capstone
Consulting LLC, and (b) the Co-Investors; and (c) any Related Parties of (i) Cocina, KKR,
Canpartners or Capstone Consulting LLC or (ii) the Co-Investors.

 

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Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

“Permitted Refinancing Indebtedness” means Indebtedness issued or incurred (including
by means of the extension or renewal of existing Indebtedness) to refinance, refund, extend, renew
or replace existing Indebtedness (“Refinanced Indebtedness”); provided that
(a) the principal amount of such refinancing, refunding, extending, renewing or replacing
Indebtedness is not greater than the principal amount of such Refinanced Indebtedness plus the
amount of any premiums or penalties and accrued and unpaid interest paid thereon and reasonable
fees and expenses, in each case, associated with such refinancing, refunding, extension, renewal or
replacement, (b) such refinancing, refunding, extending, renewing or replacing Indebtedness has a final maturity that is no sooner than, scheduled
principal payments or permanent commitment reductions no earlier than, and a weighted average life
to maturity that is no shorter than, such Refinanced Indebtedness, (c) if such Refinanced
Indebtedness or any guaranties thereof are subordinated to the Obligations, such refinancing,
refunding, extending, renewing or replacing Indebtedness and any guaranties thereof remain so
subordinated on terms no less favorable to the Lenders, (d) the obligors in respect of such
Refinanced Indebtedness immediately prior to such refinancing, refunding, extending, renewing or
replacing are the only obligors on such refinancing, refunding extending, renewing or replacing
Indebtedness and (e) such refinancing, refunding, extending, renewing or replacing Indebtedness
contains covenants and events of default and is benefited by guaranties, if any, which, taken as a
whole, are determined in good faith by a Responsible Officer of the Company to be no less favorable
to the Company or its applicable Subsidiary and the Lenders in any material respect than the
covenants and events of default or guaranties, if any, in respect of such Refinanced Indebtedness.

“Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

“PIK Amount” has the meaning assigned to that term in Section 2.2C.

“Principal Office” means, for the Administrative Agent, such Person’s “Principal
Office” as such Person may from time to time designate in writing to the Company and the Lenders.

“Pro Forma Basis” means, with respect to compliance with any test or covenant
hereunder, compliance with such test or covenant after giving effect to any proposed acquisition,
distribution or other action which requires compliance on a pro forma basis (taking into account
only those pro forma adjustments arising out of events which are directly attributable to a
specific transaction, are factually supportable and are expected to have a continuing impact, in
each case either (a) determined on a basis consistent with Article 11 of Regulation S-X of the
Securities Act and as interpreted by the staff of the Securities and Exchange Commission or (b)
determined on a basis acceptable to the Administrative Agent, in each case, which pro forma
adjustments shall be certified by the chief financial officer of the Company as having been
prepared in good faith on such basis and based upon reasonable assumptions), using, for purposes of
determining such compliance, the historical financial statements of all entities or assets so
acquired or to be acquired and the consolidated financial statements of the Company and the
Subsidiaries which shall be reformulated (i) as if such acquisition, distribution or other action,
and any other acquisitions which have been consummated during the period, and any Indebtedness or
other liabilities incurred in connection with any such acquisition, distribution or other action,
had been consummated at the beginning of such period (and assuming that such Indebtedness bears
interest during any portion of the applicable measurement period prior to the relevant acquisition
at the weighted average of the interest rates applicable to outstanding Term Loans during such
period or such other interest rate acceptable to the Administrative Agent), and (ii) otherwise in
conformity with such procedures as may be agreed upon between the Administrative Agent and the
Company, all such calculations to be in form and substance reasonably satisfactory to the
Administrative Agent.

“Pro Rata Share” means with respect to all payments, computations and other matters
relating to the Term Loans of any Lender, the percentage obtained by dividing (i) the Term
Loan Exposure of that Lender by (ii) the aggregate Term Loan Exposure of all the Lenders,
as the applicable percentage may be adjusted by assignments in accordance with subsection 9.1. The
initial Pro Rata Share of each Lender is set forth opposite the name of that Lender on Schedule
2.1A.

 

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Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

“Rate Protection Agreement” means any interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement or other similar agreement or arrangement designed to
protect the Company or any of the Subsidiaries against fluctuations in interest rates.

“Reaffirmation Agreement” means that certain Reaffirmation Agreement, dated as of the
Restatement Date executed by each Guarantor.

“Real Property Asset” means, at any time of determination, any interest (fee,
leasehold or otherwise) then owned by any Loan Party in any real property.

“Recovery Event” has the meaning assigned to that term in subsection 2.4B(iii)(d).

“Register” has the meaning assigned to that term in subsection 9.1C.

“Reinvestment Assets” means, in the case of any Reinvestment Event, any Capital Assets
which are used in the business of the Company and the Subsidiaries.

“Reinvestment Deferred Amount” means, with respect to any Reinvestment Event, the
aggregate Insurance Proceeds or Condemnation Proceeds, as the case may be, received by the Company
or any of the Subsidiaries in connection therewith which are not applied to prepay the Term Loans
in accordance with subsection 2.4B(iii)(d) as a result of the delivery of a Reinvestment Notice.

“Reinvestment Event” means any Recovery Event in respect of which the Company has
delivered a Reinvestment Notice.

“Reinvestment Notice” means a written notice executed by a Responsible Officer stating
that no Default or Event of Default has occurred and is continuing and that the Company (directly
or through one of the Subsidiaries) intends and expects to use all or a specified portion of the
Insurance Proceeds or Condemnation Proceeds, as the case may be, of a Recovery Event to acquire
Reinvestment Assets within three hundred sixty (360) days of the receipt of such Insurance Proceeds
or Condemnation Proceeds, as the case may be.

“Reinvestment Prepayment Amount” means, with respect to any Reinvestment Event, the
Reinvestment Deferred Amount, if any, relating thereto less any amount expended prior to the
relevant Reinvestment Prepayment Date to acquire Reinvestment Assets.

“Reinvestment Prepayment Date” means, with respect to any Reinvestment Event, the
earlier of (a) the date occurring three hundred sixty (360) days after such Reinvestment Event and
(b) the date on which the Company shall have determined not to, or shall have otherwise ceased to,
acquire Reinvestment Assets with all or any portion of the relevant Reinvestment Deferred Amount.

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the
members, partners, directors, officers, employees, agents, trustees and advisors of such Person and
of such Person’s Affiliates.

“Release” means any release, spill, emission, leaking, pumping, pouring, injection,
escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous
Material into the indoor or outdoor environment (including the abandonment or disposal of any
barrels, containers or other closed receptacles containing any Hazardous Material), including the
movement of any Hazardous Material through the air, soil, surface water or groundwater.

 

18

 

Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

“Release and Satisfaction” means the Release and Satisfaction of Credit Agreement,
dated as of November 8, 2008, by and among Credit Suisse, Cayman Islands Branch, Cocina, KKR,
Canpartners, SCSF Cantinas and Holdings.

“Required Percentage” means 50%.

“Requisite Lenders” means Lenders having or holding more than 50% of the sum of the
aggregate Term Loan Exposure of all Lenders.

“Responsible Officer” means the chief executive officer, president, executive vice
president, senior vice president, treasurer, general counsel or chief financial officer of the
Company or the applicable Subsidiary, but in any event, with respect to financial matters, the
chief financial officer, treasurer or controller of the Company or the applicable Subsidiary.

“Restatement Date” means July 7, 2009.

“Restricted Payment” means, in relation to Holdings, the Company or any of the
Subsidiaries, any (a) Distribution, or (b) redemption of, payment in respect of, or purchase of the
Senior Secured Notes.

“Revolving Credit Agreement” means the Second Amended and Restated Credit Agreement
dated as of January 29, 2007, among the Company, as borrower, the other credit parties signatory
thereto, General Electric Capital Corporation, as administrative agent, the lenders signatory
thereto from time to time, as amended, amended and restated, supplemented or otherwise modified in
accordance with the terms hereof from time to time.

“Revolving Credit Documents” means (a) the Revolving Credit Agreement and each of the
notes, security documents and other documents delivered pursuant thereto, and (b) the Intercreditor
Agreement.

“S&P” means Standard & Poor’s Ratings Group, a division of The McGraw Hill
Corporation, or any successor thereto.

“Sale-Leaseback” has the meaning assigned to that term in subsection 6.7.

“SCSF Cantinas” means SCSF Cantinas, LLC.

“Securities” means any stock, shares, partnership interests, voting trust
certificates, certificates of interest or participation in any profit-sharing agreement or
arrangement, options, warrants, bonds, debentures, notes, or other evidences of Indebtedness,
secured or unsecured, convertible, subordinated or otherwise, or in general any instruments
commonly known as “securities” or any certificates of interest, shares or participations in
temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to,
purchase or acquire, any of the foregoing.

“Securities Act” means the Securities Act of 1933, as amended from time to time, and
any successor statute.

“SEC” means the U.S. Securities and Exchange Commission.

“Sellers” has the meaning assigned to that term in the Recitals to this Agreement.

 

19

 

Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

“Senior Secured Note Documents” means (a) the Senior Secured Note Indenture, (b) the
Senior Secured Note Intercreditor Agreement and (c) the Company Intercreditor Agreement.

“Senior Secured Note Indenture” means the indenture, dated as of July 7, 2009, among
the Company and Wells Fargo Bank, National Association, pursuant to which up to $130,000,000
original principal amount of Senior Secured Notes have been issued by the Company, as amended or
supplemented in accordance with the terms hereof and in effect from time to time, and each of the
notes, guarantees, security documents and other documents delivered pursuant thereto.

“Senior Secured Note Intercreditor Agreement” means the Intercreditor Agreement dated
as of the Restatement Date by and among Wells Fargo Bank, National Association, as Collateral Agent
and Trustee and General Electric Capital Corporation, as amended, restated or otherwise modified
from time to time.

“Senior Secured Notes” means Indebtedness of the Company in an aggregate principal
amount not to exceed $130,000,000 evidenced by senior secured notes due 2013 issued pursuant to the
Senior Secured Note Documents and that is expressly subject to the provisions of the Senior Secured
Note Intercreditor Agreement.

“Solvent” means, with respect to any Person, that as of the date of determination both
(a) (i) the then fair saleable value of the property of such Person is (A) greater than the total
amount of liabilities (including contingent liabilities but excluding amounts payable under
intercompany promissory notes) of such Person and (B) not less than the amount that will be
required to pay the probable liabilities on such Person’s then existing debts as they become
absolute and matured considering all financing alternatives and potential asset sales reasonably
available to such Person; (ii) such Person’s capital is not unreasonably small in relation to its
business or any contemplated or undertaken transaction; and (iii) such Person does not intend to
incur, or believe that it will incur, debts beyond its ability to pay such debts as they become
due; and (b) such Person is “solvent” within the meaning given that term and similar terms under
applicable laws relating to fraudulent transfers and conveyances. For purposes of this definition,
the amount of any contingent liability at any time shall be computed as the amount that, in light
of all of the facts and circumstances existing at such time, represents the amount that can
reasonably be expected to become an actual or matured liability.

“SPV” has the meaning assigned to that term in subsection 9.1G.

“Stockholder Rights Agreement” means the Stockholder Rights Agreement, dated as of
November 13, 2008, as amended from time to time, by and among Cocina, KKR, Canpartners, SCSF
Cantinas and Holdings.

“Store” means a particular restaurant at a particular location that is owned or
operated by the Company or a Subsidiary.

“subsidiary” means, with respect to any Person, any corporation, limited liability
company, partnership, association, joint venture or other business entity of which more than 50% of
the total voting power of shares of Capital Stock or other ownership interests entitled (without
regard to the occurrence of any contingency) to vote in the election of the Person or Persons
(whether directors, managers, members, partners, trustees or other Persons performing similar
functions) having the power to direct or cause the direction of the management and policies thereof
is at the time owned or controlled, directly or indirectly, by that Person or one or more of the
other subsidiaries of that Person or a combination thereof.

“Subsidiary” shall mean any subsidiary of the Company.

 

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Second Amended and Restated Credit Agreement

“Subsidiary Guarantor” means any Subsidiary (other than any Excluded Foreign
Subsidiary) that is a party to the Guarantee Agreement on the Closing Date (which shall include
each Subsidiary (other than any Excluded Foreign Subsidiary) existing as of the Closing Date) or at
any time after the Closing Date pursuant to subsection 5.13.

“Synthetic Lease” every obligation of any Person under any lease treated as an
operating lease under GAAP and as a loan or financing for U.S. income tax.

“Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental Authority, including
any interest, additions to tax or penalties applicable thereto.

“Term Loan Exposure” means, with respect to any Lender, as of any date of
determination, the outstanding principal amount of the Term Loans of that Lender.

“Term Loan Maturity Date” means the earlier of (a) July 1, 2013 and (b) the date that
all Term Loans shall become due and payable in full hereunder, whether by acceleration or
otherwise.

“Term Loans” means the Term Loans outstanding or made by the Lenders pursuant to
subsection 2.1A.

“Term Notes” means (a) the promissory notes of the Company issued pursuant to
subsection 2.1D and (b) any promissory notes issued by the Company in connection with assignments
of the Term Loans of any Lender, in each case substantially in the form of Exhibit VI, as
they may be amended, restated, supplemented or otherwise modified from time to time in accordance
with this Agreement.

“Transaction Costs” has the meaning set forth in the Recitals to this Agreement.

“Transaction Documents” means, collectively, (a) the Amended and Restated Credit
Agreement and any other documents entered into in connection therewith; (b) the Merger Documents;
and (c) all other documents, instruments and agreements entered into or delivered by the Company
and/or any of the Subsidiaries in connection with the Transactions.

“Transactions” has the meaning set forth in the Recitals to this Agreement.

“Treasury Rate” means, as of any prepayment date, the yield to maturity as of such
prepayment date of United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15(519) that has become publicly
available at least two business days prior to the prepayment date (or if such Statistical Release
is no longer published, any publicly available source of similar market data)) most nearly equal to
the period from the prepayment date to the Term Loan Maturity Date.

“Ventura Property” means that certain real property owned by El Torito Restaurants,
Inc. and located at 770 Seaward Avenue, Ventura, California 93001.

 

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1.2 Defined Terms; Accounting Terms; Utilization of GAAP for Purposes of Calculations Under
Agreement.

A. The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include”, “includes” and “including”, and words of
similar import, shall not be limiting and shall be deemed to be followed by the phrase “without limitation”.
The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless
the context requires otherwise (a) any definition of or reference to any agreement, instrument or
other document herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person’s successors and assigns, (c) the
words “herein”, “hereof’ and “hereunder”, and words of similar import, shall be construed to refer
to this Agreement in its entirety and not to any particular provision hereof, (d) all references
herein to subsections, Exhibits and Schedules shall be construed to refer to subsections of, and
Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, whether real, personal or mixed, including cash, Securities, accounts and
contract rights.

B. Except as otherwise expressly provided in this Agreement, all accounting terms not
otherwise defined herein shall have the meanings assigned to them in conformity with GAAP.
Financial and accounting calculations in connection with the definitions, covenants and other
provisions of this Agreement shall utilize accounting principles and policies in conformity with
those used to prepare the most recently delivered financial statements referred to in subsection
5.1A(i); provided, that if the Company notifies the Administrative Agent after the
Closing Date that it wishes to amend any covenant in subsection 6.5 or any related definition to
eliminate the effect of any change in GAAP occurring after the Closing Date on the operation of
such covenant (or if the Administrative Agent notifies the Company that the Requisite Lenders wish
to amend subsection 6.5 or any related definition for such purpose), then the Company’s compliance
with such covenant shall be determined on the basis of GAAP in effect immediately before the
relevant change in GAAP became effective, until either such notice is withdrawn or such covenant is
amended in a manner satisfactory to the Company and the Requisite Lenders.

SECTION 2.

AMOUNTS AND TERMS OF COMMITMENTS AND TERM LOANS

2.1 Term Loans.

A. Term Loans. 

(i) Each Lender severally made, on the Closing Date, a Term Loan to the Company. The
original amount of each Lender’s Term Loan on the Closing Date is set forth opposite its name
on Schedule 2.1A. The Term Loans made on the Closing Date were used for the purposes
identified in subsection 2.5A.

(ii) Subject to the terms and conditions hereof, each Lender with an outstanding Term Loan
immediately prior to the Restatement Date by executing and delivering a signature page to this
Agreement will be deemed upon the Restatement Date to have (a) agreed to the terms of this
Agreement, as restated on the Restatement Date, (b) continued all of its outstanding Term Loans
as Term Loans for all purposes under this Agreement (subject to the assumption by Holdings of a
portion of the Term Loans pursuant to the Holdings Credit Documents), as restated on the
Restatement Date, and (c) consented to the exchange by Canpartners of the Exchanged Term Loans
for the Exchanged Notes pursuant to the terms of the Canpartners Exchange Agreement.

(iii) The original amount of each Lender’s Term Loan on the Restatement Date is set forth
opposite its name on Schedule 2.1A.

(iv) The Company may make no additional borrowings hereunder and any amount of the Term
Loans repaid or prepaid may not be reborrowed. Subject to subsections 2.4A and 2.4B, all
amounts owed hereunder with respect to the Term Loans shall be paid in full no later than the
Term Loan Maturity Date.

 

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Second Amended and Restated Credit Agreement

B. [Intentionally Omitted]

C. [Intentionally Omitted]

D. Term Notes. The Company shall execute and deliver on the Restatement Date to each
Lender requesting the same a reasonable time in advance of the Restatement Date, a Term Note to
evidence that Lender’s Term Loans in the principal amount of that Lender’s Term Loans and with
other appropriate insertions, and each Lender’s Term Note shall evidence such Lender’s Pro Rata
Share of such respective amounts. Any Lender not receiving a Term Note may request at any time that
the Company issue it such a Term Note on the terms set forth herein, and the Company agrees to
issue such Term Note promptly upon the request of a Lender. The Term Notes and the Obligations
evidenced thereby shall be governed by, subject to and benefit from all of the terms and conditions
of this Agreement and the other Loan Documents.

2.2 Interest on the Term Loans.

A. Rate of Interest

(i) . Subject to the provisions of Section 2.7, each Term Loan shall bear interest on the
unpaid principal amount thereof from the Restatement Date to maturity (whether by acceleration
or otherwise) at a fixed rate equal to 16.50% per annum.

B. [Intentionally Omitted]

C. Interest Payments. Subject to the provisions of subsection 2.2E, interest on each
Term Loan shall be payable in arrears on each Interest Payment Date applicable to that Term Loan,
as follow: (i) for each Interest Payment Date prior to the first anniversary of the Restatement
Date, all interest accrued on the unpaid principal amount of the Term Loans since the immediately
preceding Interest Payment Date (such amount, the “PIK Amount”) shall be paid on such
Interest Payment Date, upon any prepayment of that Term Loan (to the extent accrued on the amount
being prepaid) and at maturity (including final maturity by acceleration or otherwise), by the
addition of such PIK Amount to the outstanding principal of the Term Loan and thereafter the
outstanding principal amount of the Term Loan shall be deemed to include such PIK Amount, and (ii)
thereafter, interest accrued on the unpaid principal amount of the Term Loan will be payable on
each Interest Payment Date, upon any prepayment of that Term Loan (to the extent accrued on the
amount being prepaid) and at maturity (including final maturity by acceleration or otherwise), in a
combination of cash and payment in kind as follows: (A) payment in cash shall be made in an amount
equal to the lesser of (x) an amount based on a interest rate equal to 12.50% per annum and (y) 50%
of the difference between (I) Consolidated Cash Flow for the most recent four Fiscal Quarter period
and (II) $42,000,000 and (B) that portion of the payment to be made on such Interest Payment Date
that can not be made in cash as a result of the limitations in clause (A) above shall be paid on
such Interest Payment Date by the addition of such amount (such amount, the “Additional PIK
Amount”) to the outstanding principal of the Term Loan and thereafter the outstanding principal
amount of the Term Loan shall be deemed to include such Additional PIK Amount.

D. [Intentionally Omitted]

 

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Second Amended and Restated Credit Agreement

E. Post-Default Interest. Any overdue amounts on any Term Loans and, to the extent
permitted by applicable law, any interest payments thereon not paid when due and any fees and other
amounts then due and payable hereunder, shall thereafter bear interest (including post-petition
interest in any proceeding under the Bankruptcy Code, or other applicable bankruptcy or insolvency
laws) payable upon demand at a rate that is 2% per annum in excess of the interest rate otherwise
payable under this Agreement with respect to the applicable Term Loans. Payment or acceptance of
the increased rates of interest provided for in this subsection 2.2E is not a permitted alternative
to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice
or limit any rights or remedies of the Administrative Agent or any Lender.

F. Computation of Interest. Interest on Term Loans shall be computed on the basis of
a 360-day year and for the actual number of days elapsed in the period during which it accrues. In
computing interest on any Loan, the Closing Date shall be included, and the date of payment of such
Term Loan shall be excluded.

2.3 Fees.

A. Annual Administrative Fee.

The Company agrees to pay to the Administrative Agent, for its own account, an annual
administrative fee in such amounts as may have been or hereafter may be mutually agreed upon from
time to time.

B. Other Agent Fees.

The Company agrees to pay such other fees to the Administrative Agent and the Lead Arranger,
for their respective accounts, as may have been or hereafter may be mutually agreed upon from time
to time.

2.4 Repayments and Prepayments; General Provisions Regarding Payments.

A. Scheduled Maturity of Term Loans. On the Term Loan Maturity Date, the Company
shall pay all amounts owing by the Company under this Agreement with respect to the Term Loans
including, without limitation, all PIK Amounts and Additional PIK Amounts.

B. Prepayments.

(i) Voluntary Prepayments. Subject to the terms of the Intercreditor Agreement,
the Company Intercreditor Agreement and the Existing Note Company Intercreditor Agreement, the
Company may, upon not less than one (1) Business Day’s prior written or telephonic notice,
promptly confirmed in writing to the Administrative Agent (which notice the Administrative
Agent will promptly notify each Lender), at any time and from time to time voluntarily prepay
the Term Loans on any Business Day in whole or in part in an aggregate minimum amount of
$1,000,000 and integral multiples of $1,000,000 in excess of that amount. Notice of prepayment
having been given as aforesaid, the Term Loans shall become due and payable on the prepayment
date specified in such notice and in the aggregate principal amount specified therein. Any
voluntary prepayments pursuant to this subsection 2.4B(i) shall be applied as specified in
subsection 2.4C.

(ii) [Intentionally Omitted]

 

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Second Amended and Restated Credit Agreement

(iii) Mandatory Prepayments. Subject to the terms of the Intercreditor Agreement,
the Company Intercreditor Agreement and the Existing Note Company Intercreditor Agreement, the
Term Loans shall be prepaid in the manner provided in subsection 2.4C upon the occurrence of
the following circumstances:

(a) Prepayments from Asset Sales. No later than the fifth (5th)
Business Day following the date of receipt by the Company or any of the Subsidiaries of
Cash Proceeds of any Asset Sale, the Company shall, to the extent that it is not
required to offer such Net Cash Proceeds to redeem or otherwise prepay the Senior
Secured Notes (or following such offer, to apply such Net Cash Proceeds to so redeem or
otherwise prepay the Senior Secured Notes), prepay the Term Loans (and associated
accrued interest and prepayment fees, if any) as provided in subsection 2.4C in an
amount equal to the Net Cash Proceeds received; provided that so long
as no Default or Event of Default shall have occurred and be continuing, the Company
shall have the option, directly or through one or more of the Subsidiaries, to invest
such Net Cash Proceeds, within three hundred sixty (360) days of receipt thereof, in
long-term productive assets of the general type used in the business of the Company and
the Subsidiaries and, to the extent not so invested, shall apply such amounts as
provided in subsection 2.4C; provided further, that none of Holdings or
any of the Subsidiaries shall have such right to invest Net Cash Proceeds that (x) are
arising from an Asset Sale of an asset of Holdings or (y) are distributed to Holdings
in compliance with the Revolving Credit Agreement, the Holdings Credit Agreement and
the Senior Secured Note Documents.

(b) Prepayments Due to Issuance of Debt. No later than the fifth
(5th) Business Day following the date of receipt by the Company or any of
the Subsidiaries of any proceeds of any Indebtedness (other than any Indebtedness
permitted by subsection 6.1), the Company shall prepay the Term Loans (and associated
accrued interest and prepayment fees, if any) as provided in subsection 2.4C in an
amount equal to the amount of such proceeds; provided that payment or
acceptance of the amounts provided for in this subsection 2.4B(iii)(b) shall not
constitute a waiver of any Event of Default resulting from the incurrence of such
Indebtedness or otherwise prejudice any rights or remedies of the Administrative Agent
or any Lender.

(c) Prepayments Due to Issuance of Equity Securities. No later than the
fifth (5th) Business Day following the date of receipt by the Company or any
of the Subsidiaries of any Equity Proceeds (other than (i) Equity Proceeds received in
connection with an issuance of Capital Stock to one or more of the Permitted Holders,
(ii) equity issued to any officer, employee or director of Holdings, the Company or any
of the Subsidiaries, or (iii) Equity Proceeds received by Holdings (x) in connection
with an equity contribution by Holdings to the Company to be used by the Company for
general corporate purposes or (y) to be used by Holdings for repayment of Indebtedness
of Holdings otherwise permitted hereunder); the Company shall prepay the Term Loans
(and associated accrued interest and prepayment fees, if any) as provided in subsection
2.4C in an aggregate amount equal to 100% of such Equity Proceeds.

 

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Second Amended and Restated Credit Agreement

(d) Prepayments Due to Insurance and Condemnation Proceeds. No later than
the third (3rd) Business Day following the date of receipt by the Company or
any of the Subsidiaries of any cash payments in excess of $500,000 under any insurance
policy as a result of any damage to or loss of all or any portion any tangible asset
(net of actual and documented reasonable costs incurred by the Company or any of the
Subsidiaries in connection with adjustment and settlement thereof, “Insurance Proceeds”)
or any proceeds resulting from the taking of assets by the power of eminent domain,
condemnation or otherwise (net of actual and documented reasonable costs incurred by
Holdings, the Company or any of the Subsidiaries in connection with adjustment and
settlement thereof, “Condemnation Proceeds”) (any such event resulting in the
recovery of Insurance Proceeds or Condemnation Proceeds, a “Recovery Event”),
the Company shall, to the extent it is not required to redeem or otherwise prepay the
Senior Secured Notes with such cash proceeds or cash collateralize obligations under
the Revolving Credit Agreement, prepay the Term Loans in an amount equal to the
Insurance Proceeds or Condemnation Proceeds, as the case may be, received (less any
payment of the outstanding principal amount of, premium or penalty, if any, and
interest on any Indebtedness (other than the Term Loans) that is secured by a Lien on
the stock or assets in question and that is required to be repaid under the terms
thereof as a result of such event). Concurrently with any prepayment of Term Loans
pursuant to this subsection 2.4B(iii)(d), the Company shall deliver to the
Administrative Agent an Officer’s Certificate demonstrating in detail reasonably
satisfactory to the Administrative Agent the derivation of the Insurance Proceeds or
Condemnation Proceeds, as the case may be, of the correlative Recovery Event;
provided that if the Company shall have delivered a Reinvestment Notice
to the Administrative Agent no later than three (3) Business Days after the receipt of
such Insurance Proceeds or Condemnation Proceeds and no Default or Event of Default
exists at the time of such consummation or delivery of such notice, the Company shall
not be required to make any prepayment with the proceeds of such Recovery Event to the
extent that all or any portion of such proceeds are reinvested in Reinvestment Assets
within three hundred sixty (360) days from the date of receipt of such proceeds. In
addition, in the event that the Company shall, at any time after receipt of proceeds of
any Reinvestment Event requiring a prepayment pursuant to this subsection 2.4B(iii)(d),
determine that the prepayments previously made in respect of such Reinvestment Event
were in an aggregate amount less than that required by the terms of this subsection
2.4B(iii)(d), the Company shall promptly cause to be made an additional prepayment of
the Term Loans in an amount equal to the amount of any such deficit, and the Company
shall concurrently therewith deliver to the Administrative Agent an Officer’s
Certificate demonstrating the derivation of the additional proceeds resulting in such
deficit. Notwithstanding the foregoing, none of Holdings or any of the Subsidiaries
shall have the right to reinvest Insurance Proceeds that have been distributed to
Holdings in compliance with the Revolving Credit Agreement, the Holdings Loan Agreement
and the Senior Secured Note Documents.

(e) Prepayments from Excess Cash Flow. In the event that there shall be
Excess Cash Flow for any Fiscal Year (commencing with the Fiscal Year ending December
31, 2009), the Company shall, to the extent such prepayment in respect of such Excess
Cash Flow is not required to be made under the terms of the Senior Secured Note
Documents or such Excess Cash Flow is not required to be escrowed under the terms of
the Senior Secured Note Documents or the Revolving Credit Agreement, no later than
ninety-five (95) days after the end of such Fiscal Year, prepay the Term Loans in an
aggregate amount equal to the Required Percentage of such Excess Cash Flow for such
Fiscal Year.

 

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Second Amended and Restated Credit Agreement

C. Application of Prepayments.

(i) Application of Mandatory Prepayments. The Company shall deliver to the
Administrative Agent, no later than the date that is fifteen (15) Business Days prior to any
prepayment required by subclauses (a), (b), (c), (d) or (e) of subsection 2.4B(iii) (unless
delivery by such date is not practicable, in which case the Company shall deliver the same as soon as
practicable), a certificate of a Responsible Officer setting forth (a) in reasonable detail the
calculation of the amount of such prepayment and (b) the anticipated prepayment date therefor
(which information the Administrative Agent shall promptly provide to the Lenders). Any amount
required to be applied as a prepayment of Term Loans pursuant to subclauses (a), (b), (c), (d)
or (e) of subsection 2.4B(iii) shall be applied to prepay the Term Loans; provided
that any Lender may elect, by notice to the Administrative Agent by telephone
(confirmed by facsimile) at least five (5) Business Days prior to the applicable prepayment
date, to decline all or any portion of any prepayment of its Term Loans pursuant to subclauses
(a), (b), (c), (d) or (e) of subsection 2.4B(iii), in which case the aggregate amount of the
prepayment that would have been applied to prepay such Term Loans but was so declined shall be
applied as an offer to prepay the Holdings Term Loan under and in accordance with the Holdings
Credit Agreement, provided that such payment is not prohibited by the Revolving Credit
Agreement. Any voluntary prepayments pursuant to subsection 2.4B(i) and any amount required to
be applied as a prepayment of Term Loans pursuant to subsection 2.4B(iii) shall be applied to
prepay the Term Loans of the Lenders in accordance with the Lenders Pro Rata Shares. Each such
prepayment shall be made subject to the requirements of subsection 2.6D.

(ii) Application of Payments Under the Guarantee Agreement. All payments received
by the Administrative Agent under the Guarantee Agreement shall be applied promptly from time
to time by the Administrative Agent in the following order of priority:

(a) to the payment of the reasonable costs and expenses of any collection or other
realization under the Guarantee Agreement, including reasonable compensation to the
Administrative Agent and its agents and counsel, and all expenses, liabilities and
advances made or incurred by the Administrative Agent in connection therewith, all in
accordance with the terms of this Agreement and the Guarantee Agreement;

(b) thereafter, to the extent of any excess payments, to the payment of all other
Guarantied Obligations (as defined in the Guarantee Agreement) for the ratable benefit
of the holders thereof; and

(c) thereafter, to the extent of any excess payments, to the payment to the
applicable Guarantor or to whosoever may be lawfully entitled to receive the same or as
a court of competent jurisdiction may direct.

D. General Provisions Regarding Payments.

(i) Manner and Time of Payment. All payments by the Company of principal,
interest, fees, expenses and other Obligations hereunder and under the Term Notes shall be made
in same day funds and without defense, setoff or counterclaim, free of any restriction or
condition, and delivered to the Administrative Agent not later than 1:00 p.m. (New York time)
on the date due at the Funding and Payment Office for the account of the Lenders; funds
received by the Administrative Agent after that time on such due date shall, at the
Administrative Agent’s discretion, be deemed to have been paid by the Company on the next
succeeding Business Day. The Company hereby authorizes the Administrative Agent to charge its
accounts with the Administrative Agent in order to cause timely payment to be made to the
Administrative Agent of all principal, interest, fees, expenses and other Obligations due
hereunder (subject to sufficient funds being available in its accounts for that purpose).

 

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Second Amended and Restated Credit Agreement

(ii) Application of Payments to Principal and Interest. Except as provided in
subsection 2.2C, all payments in respect of the principal amount of any Term Loan shall include
payment of accrued interest, if any and so long as such interest has not been deemed a PIK
Amount or Additional PIK Amount, on the principal amount being repaid or prepaid, and all such
payments (and in any event any payments made in respect of any Term Loan on a date when
interest is due and payable with respect to such Loan) shall be applied to the payment of
interest and prepayment fees, if any, before application to principal.

(iii) Apportionment of Payments. The aggregate principal, prepayment fees, if any,
and interest payments shall be apportioned among all outstanding Term Loans to which such
payments relate, in each case proportionately to the Lenders’ respective Pro Rata Shares. The
Administrative Agent shall promptly distribute to each Lender, at its applicable Lender Office,
its Pro Rata Share of all such payments received by the Administrative Agent.

(iv) Payments on Business Days. Except if expressly provided otherwise, whenever
any payment to be made hereunder shall be stated to be due on a day that is not a Business Day,
such payment shall be made on the immediately preceding Business Day.

(v) Notation of Payment. Each Lender agrees that before disposing of any Term Note
held by it, or any part thereof (other than by granting participations therein), that Lender
will make a notation thereon of all Term Loans evidenced by that Term Note and all principal
payments previously made thereon and of the date to which interest thereon has been paid;
provided that the failure to make (or any error in the making of) a notation of any Term Loan
made under such Note shall not limit or otherwise affect such disposition or the obligations of
the Company hereunder or under such Term Note with respect to any Term Loan or any payments of
principal or interest on such Term Note.

2.5 Use of Proceeds. The proceeds of the Term Loans made to the Company on the Closing
Date were used by the Company on the Closing Date, together with cash on hand of the Company,
solely in accordance with the terms of the Original Credit Agreement.

2.6 [Intentionally Omitted].

2.7 Increased Costs; Taxes.

A. Increased Costs Generally.

If any Change in Law shall: (i) impose, modify or deem applicable any reserve, special
deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with
or for the account of, or credit extended by, any Lender; (ii) subject any Lender to any tax of any
kind whatsoever with respect to this Agreement, or change the basis of taxation of payments to such
Lender in respect thereof (except for Indemnified Taxes or Other Taxes covered by subsection 2.7E
and changes in the rate of any Excluded Tax payable by such Lender); or (iii) impose on any Lender
any other condition, cost or expense affecting this Agreement; and the result of any of the
foregoing shall be to reduce the amount of any sum received or receivable by such Lender hereunder
(whether of principal, interest or any other amount), then upon request of such Lender the Company
will pay to such Lender such additional amount or amounts as will compensate such Lender for such
additional costs incurred or reduction suffered.

 

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Second Amended and Restated Credit Agreement

B. Capital Requirements.

If any Lender determines that any Change in Law affecting such Lender or the applicable
Lender Office of such Lender or such Lender’s holding company, if any, regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s capital
or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement, the
Commitments of such Lender or the Term Loans made by, such Lender, to a level below that which such
Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into
consideration such Lender’s policies and the policies of such Lender’s holding company with respect
to capital adequacy), then from time to time the Company will pay to such Lender such additional
amount or amounts as will compensate such Lender or such Lender’s holding company for any such
reduction suffered.

C. Certificates for Reimbursement.

A certificate of a Lender setting forth the amount or amounts necessary to compensate such
Lender or its holding company, as the case may be, as specified in subsection 2.7A or 2.7B and
delivered to the Company shall be conclusive absent manifest error. The Company shall pay such
Lender, as the case may be, the amount shown as due on any such certificate within 10 days after
receipt thereof.

D. Delay in Requests.

Failure or delay on the part of any Lender to demand compensation pursuant to this
subsection shall not constitute a waiver of such Lender’s right to demand such compensation;
provided that the Company shall not be required to compensate a Lender pursuant to
this subsection for any increased costs incurred or reductions suffered more than nine months prior
to the date that such Lender, as the case may be, notifies the Company of the Change in Law giving
rise to such increased costs or reductions and of such Lender’s intention to claim compensation
therefor (except that, if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the nine-month period referred to above shall be extended to include the period
of retroactive effect thereof).

E. Taxes.

(i) Payments Free of Taxes. Any and all payments by or on account of any
obligation of the Company hereunder or any other Loan Document shall be made free and clear of
and without reduction or withholding for any Indemnified Taxes or Other Taxes; provided
that if the Company shall be required by applicable law to deduct any Indemnified Taxes
(including any Other Taxes) from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this subsection) the Administrative Agent or Lender, as the case
may be, receives an amount equal to the sum it would have received had no such deductions been
made, (ii) the Company shall make such deductions and (iii) the Company shall timely pay the
full amount deducted to the relevant Governmental Authority in accordance with applicable law.

(ii) Payment of Other Taxes by the Company. Without limiting the provisions of
paragraph (i) above, the Company shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

(iii) Indemnification by the Company. The Company shall indemnify the
Administrative Agent and each Lender within 10 days after demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) paid by the Administrative
Agent or such Lender, as the case may be, and any penalties, interest and reasonable expenses
arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. A certificate as to the
amount of such payment or liability delivered to the Company by an Agent or a Lender (with a
copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on
behalf of a Lender, shall be conclusive absent manifest error.

 

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(iv) Evidence of Payments. As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by the Company to a Governmental Authority, the Company shall deliver to
the Administrative Agent the original or a certified copy of a receipt issued by such
Governmental Authority evidencing such payment, a copy of the return reporting such payment or
other evidence of such payment reasonably satisfactory to the Administrative Agent.

(v) Status of Lenders. Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the Company is a
resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to
payments hereunder or under any other Loan Document shall deliver to the Company (with a copy
to the Administrative Agent), at the time or times prescribed by applicable law or reasonably
requested by the Company or the Administrative Agent, such properly completed and executed
documentation prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate of withholding. In addition, any Lender, if requested by the
Company or the Administrative Agent, shall deliver such other documentation prescribed by
applicable law or reasonably requested by the Company or the Administrative Agent as will
enable the Company or the Administrative Agent to determine whether or not such Lender is
subject to backup withholding or information reporting requirements. Without limiting the
generality of the foregoing, in the event that the Company is a resident for tax purposes in
the United States of America, any Foreign Lender shall deliver to the Company and the
Administrative Agent (in such number of copies as shall be requested by the recipient) on or
prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from
time to time thereafter upon the request of the Company or the Administrative Agent, but only
if such Foreign Lender is legally entitled to do so), whichever of the following is applicable:
(i) duly completed copies of Internal Revenue Service Form W-8BEN, claiming eligibility for
benefits of an income tax treaty to which the United States of America is a party, (ii) duly
completed copies of Internal Revenue Service Form W-8ECI, (iii) in the case of a Foreign Lender
claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code,
(x) a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning
of section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Company within the
meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation”
described in section 881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue
Service Form W-8BEN or (iv) any other form prescribed by applicable law as a basis for claiming
exemption from or a reduction in United States Federal withholding tax duly completed together
with such supplementary documentation as may be prescribed by applicable law to permit the
Company to determine the withholding or deduction required to be made.

(vi) Treatment of Certain Refunds. If the Administrative Agent or a Lender determines, in
its sole discretion, that it has received a refund of (or the benefit of a tax credit in lieu
of such refund attributable to) any Taxes or Other Taxes as to which it has been indemnified by
the Company or with respect to which the Company has paid additional amounts pursuant to such
subsection 2.7, it shall pay to the Company an amount equal to such refund or credit (but only
to the extent of indemnity payments made, or additional amounts paid, by the Company under such
subsection 2.7 with respect to the Taxes or Other Taxes giving rise to such refund or credit),
net of all out-of-pocket expenses of the Administrative Agent or such Lender, as the case may
be, and without interest (other than any interest paid by the relevant Governmental Authority with
respect to such refund or credit); provided that the Company, upon the request
of the Administrative Agent or such Lender, agrees to repay the amount paid over to the Company
(plus any penalties, interest or other charges imposed by the relevant Governmental Authority)
to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender
is required to repay such refund or credit to such Governmental Authority. This paragraph shall
not be construed to require any Agent or any Lender to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to the Company or any
other Person.

 

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2.8 Mitigation Obligations; Replacement of Lenders.

A. Designation of a Different Lender Office.

If any Lender requests compensation under subsection 2.7A or 2.7B, or requires the Company
to pay any additional amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to subsection 2.7E, then such Lender shall use reasonable efforts to designate a
different Lender Office for making, issuing, funding or maintaining its Term Loans hereunder or to
assign its rights and obligations hereunder to another of its offices, branches or affiliates, if,
in the judgment of such Lender such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to subsection 2.7 in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Company
hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with
any such designation or assignment.

B. Replacement of Lenders.

If any Lender requests compensation under subsection 2.7A or 2.7B, or if the Company is
required to pay any additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to subsection 2.7E, then the Company may, at its sole expense and effort,
upon notice to such Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions contained in, and
consents required by, subsection 9.1), all of its interests, rights and obligations under this
Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations
(which Eligible Assignee may be another Lender, if a Lender accepts such assignment);
provided that (i) the Company shall have paid to the Administrative Agent the
assignment fee specified in subsection 9.1B(iv), if applicable, (ii) such Lender shall have
received payment of an amount equal to the outstanding principal of its Term Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder and under the other
Loan Documents (including any amounts under subsection 2.6D) from such Eligible Assignee (to the
extent of such outstanding principal and accrued interest and fees) or the Company (in the case of
all other amounts), (iii) in the case of any such assignment resulting from a claim for
compensation under subsection 2.7A or 2.7B or payments required to be made pursuant to subsection
2.7E, such assignment will result in a reduction in such compensation or payments thereafter, and
(iv) such assignment does not conflict with applicable law. A Lender shall not be required to make
any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Company to require such assignment and delegation cease
to apply. Each Lender agrees that if the Company exercises its option under this paragraph, it
shall promptly execute and deliver all agreements and documentation necessary to effectuate such
assignment as set forth in subsection 9.1. The Company shall be entitled (but not obligated) to
execute and deliver such agreements and documentation on behalf of each such applicable Lender and
any such agreements and/or documentation so executed by the Company shall be effective for all
purposes of documenting an assignment pursuant to subsection 9.1.

 

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SECTION 3.

CONDITIONS TO EFFECTIVENESS

3.1 Conditions to Effectiveness on the Restatement Date.

The effectiveness of this Agreement is subject to the satisfaction, prior to or concurrently with
the Restatement Date, of the following conditions precedent:

A. Company Documents.

On or before the Restatement Date, the Company shall deliver or cause to be delivered to the
Administrative Agent and the Requisite Lenders the following, each, unless otherwise noted, dated
the Restatement Date:

(i) a certified copy of its Certificate of Incorporation, together with a good standing
certificate from the Secretary of State of the State of Delaware, each state in which any of
its Real Property Assets are located, and each other state where it is qualified as a foreign
corporation to do business, each dated a recent date prior to the Restatement Date;

(ii) a copy of its Bylaws, certified as of the Restatement Date by its corporate secretary
or an assistant secretary;

(iii) resolutions of its Board of Directors approving and authorizing the execution,
delivery and performance of this Agreement and the other Loan Documents to which it is a party
or by which it or its assets may be bound that are to be delivered on the Restatement Date,
certified as of the Restatement Date by its corporate secretary or an assistant secretary as
being in full force and effect without modification or amendment;

(iv) incumbency certificates of its officers executing this Agreement and the other Loan
Documents to which it is a party as of the Restatement Date;

(v) executed originals of this Agreement and the other Loan Documents to which it is a
party that are to be delivered on the Restatement Date;

(vi) executed originals of (A) the amendment to the Revolving Credit Agreement dated as of
the Restatement Date and (B) each Senior Secured Notes Documents entered into on the
Restatement Date; and

(vii) such other documents as the Administrative Agent may reasonably request.

B. Subsidiary Documents.

On or before the Restatement Date, the Company shall deliver or cause to be delivered to the
Administrative Agent and the Requisite Lenders the following for each Subsidiary that is a Loan
Party (which may be waived by the Requisite Lenders for any Subsidiary with respect to the items
described in clause (i) below), each, unless otherwise noted, dated the Restatement Date:

(i) certified copies of its Organizational Certificate, together with a good standing
certificate from the applicable Governmental Authority of its jurisdiction of incorporation,
organization or formation, each state in which any of its Real Property Assets are located, and
each other state in which it is qualified as a foreign corporation or other entity to do
business, each dated a recent date prior to the Restatement Date;

 

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(ii) copies of its Organizational Documents, certified as of the Restatement Date by its
corporate secretary or an assistant secretary;

(iii) copies of its Organizational Authorizations approving and authorizing the execution,
delivery and performance of the Reaffirmation Agreement and the other Loan Documents to which
it is party or by which it or its assets may be bound that are to be delivered on the
Restatement Date, certified as of the Restatement Date by its corporate secretary or an
assistant secretary as being in full force and effect without modification or amendment;

(iv) incumbency certificates of its officers executing the Reaffirmation Agreement and any
other documents to which it is a party as of the Restatement Date;

(v) executed originals of the Reaffirmation Agreement, as the case may be, and the other
Loan Documents to which it is a party that are to be delivered on the Restatement Date; and

(vi) such other documents as the Administrative Agent may reasonably request.

C. Holdings Documents.

On or before the Restatement Date, the Company shall deliver or cause to be delivered to the
Administrative Agent and the Requisite Lenders the following for Holdings, each, unless otherwise
noted, dated the Restatement Date:

(i) a certified copy of the Certificate of Incorporation of Holdings, together with a good
standing certificate from the Secretary of State of the State of Delaware and each other state
where it is qualified as a foreign corporation to do business, each dated a recent date prior
to the Restatement Date;

(ii) a copy of Holdings’ Bylaws, certified as of the Restatement Date by its corporate
secretary or an assistant secretary;

(iii) resolutions of Holdings’ Board of Directors approving and authorizing the execution,
delivery and performance of this Agreement and the other Loan Documents to which it is a party
or by which it or its assets may be bound that are to be delivered on the Restatement Date,
certified as of the Restatement Date by its corporate secretary or an assistant secretary as
being in full force and effect without modification or amendment;

(iv) incumbency certificates of Holdings’ officers executing this Agreement and the other
Loan Documents to which it is a party as of the Restatement Date;

(v) executed originals of this Agreement and the other Loan Documents to which Holdings is
a party that are to be delivered on the Restatement Date;

(vi) executed originals of the Assignment and Assumption Agreement and the Holdings Credit
Agreement;

(vii) incumbency certificates of its officers executing the Reaffirmation Agreement and
the other Loan Documents to which it is a party as of the Restatement Date;

(viii) such other documents as the Administrative Agent may reasonably request.

 

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D. Lender Signatures.

The following Persons shall have executed and delivered this Agreement:

(i) the Lenders; and

(ii) the Administrative Agent.

E. Necessary Consents.

The Company shall have obtained all approvals and consents of Governmental Authorities and
other Persons necessary in connection with the transactions contemplated herein and the continued
operation of the business conducted by Holdings, the Company and the Subsidiaries, all applicable
appeal periods shall have expired and each of the foregoing shall be in full force and effect and
in form and substance reasonably satisfactory to the Requisite Lenders.

F. Repayment of Existing Senior Notes.

The Company shall have delivered to the Administrative Agent evidence of the repayment (or
provision for repayment within 40-days after the Restatement Date) of the Company’s Existing Senior
Secured Notes.

G. Financial Condition and Solvency Certificate.

The Company shall have delivered to the Administrative Agent a certificate from the chief
financial officer of the Company, substantially in the form of Exhibit VI.

H. Costs, Fees and Expenses.

On or prior to the Restatement Date, the Company shall have paid (i) to the Administrative
Agent any and all fees and reasonable expenses of the Administrative Agent that are then due and
owing or accrued and not yet paid under or in connection with this Agreement or any of the
documents, instrument or agreements executed in connection herewith and (ii) to the appropriate
Persons any and all outstanding reasonable fees and expenses (including legal advisors) incurred by
the Administrative Agent through the Restatement Date in connection with the negotiation, drafting
and execution of the Loan Documents, including, without limitation, the fees and expenses of
Gibson, Dunn & Crutcher LLP.

I. Opinions of Loan Parties’ Counsel.

The Administrative Agent and its counsel shall have received the written opinion of the
Company’s counsel, (a) in form and substance reasonably satisfactory to the Requisite Lenders and
the Administrative Agent and their counsel, (b) dated as of the Restatement Date, (c) addressed to
each of the Administrative Agent and the Lenders and (d) setting forth substantially the matters
set forth in Exhibit IX.

J. Financial Information.

On or before the Restatement Date, the Requisite Lenders shall have received from the
Company such budgets and other cash flow and financial information as the Administrative Agent or
the Requisite Lenders may reasonably request, all in form and substance reasonably satisfactory to
the Requisite Lenders.

 

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K. Evidence of Insurance.

The Requisite Lenders shall have received copies of certificates of insurance with respect
to each of the insurance policies required pursuant to subsection 5.4, and the Requisite Lenders
shall be reasonably satisfied with the nature and scope of these insurance policies.

L. No Material Adverse Effect.

Since December 31, 2008, there shall not have occurred any event, change or condition that
has had, or could reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect.

M. Corporate and Capital Structure, Ownership, Management, Etc.

(i) Corporate Structure. The corporate organizational structure of Holdings, the Company
and the Subsidiaries as of the Restatement Date shall be as set forth on Schedule 3.1M.

(ii) Capital Structure and Ownership. The capital structure and ownership of Holdings and
the Company as of the Restatement Date shall be as set forth on Schedule 3.1M.

N. Representations and Warranties; Performance of Agreements.

The representations and warranties contained herein and in the other Loan Documents shall be
true and correct in all material respects on and as of the Restatement Date, except to the extent
such representations and warranties specifically relate to an earlier date, in which case such
representations and warranties shall have been true and correct in all material respects on and as
of such earlier date. The Company shall have delivered to the Administrative Agent and the
Requisite Lenders an Officer’s Certificate, in form and substance satisfactory to the Requisite
Lenders, to the effect that the representations and warranties in Section 4 are true and correct in
all material respects on and as of the Restatement Date and both before and after giving effect to
the transactions contemplated by the Loan Documents, to the same extent as though made on and as of
that date and that the Company has performed in all material respects all agreements and satisfied
all conditions which this Agreement provides shall be performed or satisfied by it on or before the
Restatement Date.

O. No Litigation.

There shall be no litigation or governmental, administrative or judicial actions or
proceedings, actual or threatened, that, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect or that could reasonably be expected to restrain,
prevent or impose burdensome conditions on any of the transactions contemplated by the Loan
Documents; provided, that it is expressly acknowledged by the Administrative Agent
and the Lenders that none of (i) the litigation matters currently pending against the Company and
disclosed in Schedule 3.1O-2 hereto, (ii) any litigation claims that assert substantially
the same or substantially similar legal theories or bases of liability as any of the matters
described in the immediately preceding clause (i) that are consolidated with any of the litigation
matters described in the immediately preceding clause (i), (iii) any claims alleged against the
Company and/or the Subsidiaries that are asserted during the period after the Merger Date, which
arise in whole or in part from the conduct or alleged conduct of business or any other action
allegedly taken or omitted to be taken by the Company or any of the Subsidiaries prior to the
Merger Date, and that assert substantially the same or substantially similar legal theories or bases of liability as any of the matters
described in the immediately preceding clauses (i) or (ii), and (iv) the litigation claims
disclosed in Item #5 of Schedule 3.1O-2 hereto, shall be considered to have or reasonably
be expected to have a Material Adverse Effect upon the Company, it being understood (and this
proviso being conditioned upon it being the case) that the Litigation Escrow shall have been
established pursuant and subject to the terms of the Escrow Agreement.

 

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P. Completion of Proceedings.

All partnership, corporate, limited liability company and other proceedings taken or to be
taken in connection with the transactions contemplated by the Loan Documents and all documents
incidental thereto not previously found acceptable by the Requisite Lenders and the Administrative
Agent and its counsel shall be satisfactory in form and substance to the Requisite Lenders and the
Administrative Agent and such counsel, and the Requisite Lenders and the Administrative Agent and
such counsel shall have received all such counterpart originals or certified copies of such
documents as the Administrative Agent may reasonably request.

Q. Default, Event of Default.

No event shall have occurred and be continuing that would constitute an event of default
under the Amended and Restated Credit Agreement, and no event shall have occurred and be continuing
or would result from the consummation of the transactions contemplated by this Agreement that would
constitute a Default or Event of Default.

R. Indebtedness.

The aggregate principal amount of Indebtedness of the Company and the Subsidiaries
outstanding on the Restatement Date shall not exceed the amount set forth in an officer’s
certificate acceptable to the Requisite Lenders in their sole discretion.

S. Redemption Notice.

The Requisite Lenders shall have received evidence satisfactory
to them of delivery by the Company of a notice of redemption with respect to the Existing Senior
Secured Notes in accordance with Section 3.03 of the Existing Senior Secured Notes Indenture.

Each Lender, by delivering its signature page to this Agreement, shall be deemed to have
acknowledged receipt of, and consented to and approved, each Loan Document and each other document
required to be approved by any Agent, Requisite Lenders or Lenders, as applicable, on or prior to
the Restatement Date.

SECTION 4.

REPRESENTATIONS AND WARRANTIES

In order to induce the Lenders to enter into this Agreement and to continue the Term Loans,
each of Holdings and the Company represents and warrants to the Administrative Agent and each
Lender, on the Restatement Date, that the following statements are true and correct on and as of
such date (except to the extent such statements specifically relate to any earlier date, in which
case they were true and correct on and as of such earlier date).

 

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4.1 Organization, Powers, Qualification, Good Standing, Business and Subsidiaries.

A. Organization and Powers.

Each Loan Party that is a corporation is duly organized, validly existing and in good
standing under the laws of its state of organization. Each Loan Party that is a partnership or
limited liability company is a duly organized and validly existing partnership or limited liability
company (as applicable) under the laws of its jurisdiction of formation and is in good standing in
such jurisdiction. Each Loan Party has all requisite corporate, partnership or limited liability
company (as applicable) power and authority to own and operate its properties and to carry on its
business as now conducted and as proposed to be conducted, and each Loan Party has all requisite
corporate, partnership or limited liability company (as applicable) power and authority to enter
into the Loan Documents to which it is a party, to carry out the transactions contemplated by the
Loan Documents and, in the case of the Company, to issue, deliver and pay the Term Notes and pay
the obligations incurred under each of the Loan Documents.

B. Qualification and Good Standing.

Each Loan Party is qualified or authorized to do business and is in good standing in every
jurisdiction where its assets are located and wherever necessary to carry out its businesses and
operations, except in jurisdictions where the failure to be so qualified or in good standing has
not had and could not reasonably be expected to have a Material Adverse Effect.

C. Conduct of Business.

Holdings, the Company and the Subsidiaries are engaged only in the businesses permitted to
be engaged in pursuant to subsection 5.12.

D. Company and Subsidiaries.

All of the Subsidiaries of the Company as of the Restatement Date are identified on
Schedule 3.1M. As of the Restatement Date, the Capital Stock or other equity interests of
the Company and each of the Subsidiaries identified on Schedule 3.1M is duly authorized,
validly issued, fully paid and nonassessable and none of such Capital Stock or other equity
interests constitutes Margin Stock. Schedule 3.1M correctly sets forth, as of the
Restatement Date, the ownership interest of the Company and each of the Subsidiaries identified
therein and all Capital Stock and other equity interest in such Subsidiaries owned by others and
there are no other warrants, options or other rights to acquire any such Capital Stock or equity
interests of such Subsidiaries. As of the Restatement Date, except as set forth on Schedule
4.1D, there are no registration rights, shareholder, voting rights and similar agreements
requiring the Company or any of the Subsidiaries to register securities under the Securities Act or
governing voting or other rights of shareholders of the Company or any of the Subsidiaries, in each
case to which the Company or any of the Subsidiaries is a party.

4.2 Authorization, etc.

A. Authorization of Borrowing.

The execution, delivery and performance of the Loan Documents and the issuance and delivery
of the Term Notes have been duly authorized by all necessary corporate, partnership and/or limited
liability company (as applicable) action on the part of each of the Loan Parties party thereto.

 

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B. No Conflict.

After giving effect to the execution, delivery and performance by each of the applicable
Loan Parties of the Loan Documents, the issuance, delivery and payment of the Term Notes, the
consummation of the transactions contemplated herein do not and will not (i) violate any provision
of any law or any governmental rule or regulation applicable to any Loan Party, or violate the Organizational
Certificate or any other Organizational Documents of any Loan Party or any order, judgment or
decree of any court or other Governmental Authority binding on any Loan Party, (ii) conflict with,
result in a breach of or constitute (with due notice or lapse of time or both) a default under any
indenture, agreement, contract or instrument to which any Loan Party is a party or by which any of
them or any of their property may be bound, except to the extent such conflict, breach or default
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect, (iii) result in or require the creation or imposition of any Lien upon any of the
properties or assets of any Loan Party (other than any Liens securing obligations under the Senior
Secured Note Documents and the Revolving Credit Documents), (iv) require any approval of
stockholders, partners or members or any approval or consent of any Person under any Organizational
Certificate or other indenture, agreement, contract or instrument to which any Loan Party is a
party or by which any of them or any of their property may be bound, except for such approvals or
consents obtained on or before the Restatement Date or (v) give rise to any preemptive rights,
rights of first refusal or other similar rights on behalf of any Person under any Applicable Law or
any provision of the Organizational Documents of any Loan Party or any material contract to which
any Loan Party is a party or by which any Loan Party is bound.

C. Governmental Consents.

The execution, delivery and performance by the Loan Parties of the Loan Documents, the
issuance, delivery and payment of the Term Notes and the consummation of the transactions
contemplated herein do not and will not require any material registration with, consent or approval
of, or notice, declaration, filing or other action to, with or by, any Governmental Authority,
except to the extent obtained on or before the Restatement Date.

D. Binding Obligation.

Each of the Loan Documents has been duly executed and delivered by each of the Loan Parties
party thereto and is the legally valid and binding obligation of each such Loan Party, enforceable
against such Loan Party in accordance with its respective terms, except as may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting
creditors’ rights generally or by equitable principles relating to enforceability.

E. Margin Regulations.

The making of the Term Loans does not violate Regulation T, Regulation U or Regulation X of
the Board of Governors of the Federal Reserve System.

4.3 Financial Condition.

A. Financial Statements.

During the 2008 and 2009 calendar years the Company has heretofore delivered to the
Administrative Agent on behalf of the Lenders, at the Lenders’ request, (i) certain quarterly
unaudited consolidated balance sheets of the Company and the Subsidiaries, together with related
consolidated statements of income, stockholders’ equity and cash flows, (ii) certain pro forma
consolidated balance sheet and related pro forma consolidated statements of income and cash flows
of the Company and (iii) certain audited annual consolidated balance sheets and statements of
income, stockholders’ equity and cash flows of the Company and the Subsidiaries, in each case, with
all supporting documentation for any of the foregoing reasonably requested by the Administrative
Agent. All such statements were prepared in conformity with GAAP and fairly present, in all
material

 

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respects, the financial position (on a consolidated basis) of the entities described therein as at the respective dates thereof and
the results of operations and cash flows (on a consolidated basis) of the entities described
therein for each of the periods then ended, subject, in the case of any such unaudited financial
statements, to changes resulting from audit and normal year-end adjustments and the absence of
footnote disclosure required in accordance with GAAP. Neither the Company nor any of the
Subsidiaries has any Contingent Obligation, contingent liability or liability for taxes, long-term
leases or unusual forward or long-term commitments that is not reflected in the financial
statements referred to in the preceding clauses of this subsection, the most recent financial
statements delivered pursuant to subsection 5.1 or the notes thereto and which in any such case is
material in relation to the business, assets, operations, properties, condition (financial or
otherwise) or prospects of the Company and the Subsidiaries, taken as a whole.

B. [Intentionally Omitted]

4.4 No Material Adverse Change. Since December 31, 2008, there has occurred no materially
adverse change in the financial condition or business of the Company and the Subsidiaries other
than changes in the ordinary course of business that have not had any materially adverse effect
either individually or in the aggregate on the business or financial condition of the Company and
the Subsidiaries.

4.5 Title to Properties; Liens; Real Property; Intellectual Property.

A. Title to Properties; Liens.

The Loan Parties have good and marketable fee simple title to or a valid leasehold interest
in all of their Real Property Assets reflected in the financial statements referred to in
subsection 4.3 or in the most recent financial statements delivered pursuant to subsection 5.1,
except for Real Property Assets disposed of since the date of such financial statements in the
ordinary course of business or as otherwise permitted under subsection 6.7 and except for such
defects that, individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect. All such properties and assets are free and clear of Liens (other than Liens
expressly permitted by subsection 6.2).

B. Real Property.

Each lease or sublease, as applicable, for each such Leasehold Property is in full force and
effect and the Company does not have knowledge of and has not received written notice of any
material default by any party thereto that has occurred and is continuing thereunder which could
reasonably be expected to have a Material Adverse Effect, and each such agreement constitutes the
legally valid and binding obligation of each applicable Loan Party, enforceable against such Loan
Party in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or
by equitable principles.

C. Intellectual Property.

The Loan Parties own or have the valid right to use all trademarks and service marks,
tradenames, patents, copyrights, trade secrets and technology necessary to conduct such Loan
Party’s business (collectively, the “Intellectual Property”), free and clear of any and all
Liens (other than Liens expressly permitted by subsection 6.2). All registrations therefor are in
full force and effect and are valid and enforceable, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting
creditors’ rights generally or by equitable principles. The conduct of each Loan Party’s business
as currently conducted, including all products, processes or services made, offered or sold by such
Loan Party, does not infringe upon, violate, misappropriate or dilute any intellectual property of any third party, which infringement, violation,
misappropriation or dilution could reasonably be expected to have a Material Adverse Effect. To
each Loan Party’s knowledge, no third party is infringing upon the Intellectual Property in any
material respect. There is no pending or, to each Loan Party’s knowledge, threatened claim or
litigation contesting the right of such Loan Party to own or use any material Intellectual Property
or the validity or enforceability thereof.

 

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4.6 Litigation; Compliance with Law.

There is no action, suit, proceeding, arbitration or governmental investigation at law or in
equity or before or by any Governmental Authority pending or, to the knowledge of Holdings, the
Company and the Subsidiaries, threatened against or affecting Holdings, the Company or any of the
Subsidiaries or any property of Holdings, the Company or any of the Subsidiaries that, either
individually or in the aggregate, has had, or could reasonably be expected to have, a Material
Adverse Effect. Except as identified on Schedule 4.6, none of Holdings or the Company or
any of the Subsidiaries is (i) in violation of any Applicable Law that has had, or could reasonably
be expected to have, a Material Adverse Effect or (ii) subject to or in default with respect to any
final judgment, writ, injunction, decree, order, rule or regulation of any Governmental Authority
that has had, or could reasonably be expected to have, a Material Adverse Effect.

4.7 Payment of Taxes.

Except to the extent permitted by subsection 5.3, all material tax returns and reports of
Holdings, the Company and the Subsidiaries required to be filed by any of them have been timely
filed and are true, correct and complete in all material respects, and all material taxes,
assessments, fees and other governmental charges upon Holdings, the Company and the Subsidiaries
and upon their respective properties, assets, income, businesses and franchises which are due and
payable have been paid when due and payable. None of Holdings, the Company or any of the
Subsidiaries knows of any proposed assessment of additional taxes against the Company or any of the
Subsidiaries with respect to any period beginning on or before the Restatement Date, as applicable,
other than those which are being actively contested by the Company or such Subsidiary in good faith
and by appropriate proceedings and for which reserves or other appropriate provisions, if any, as
may be required in conformity with GAAP shall have been made or provided therefor.

4.8 Performance of Agreements; Materially Adverse Agreements.

On and after the Restatement Date and after giving effect to the transactions contemplated by
the Loan Documents, none of Holdings, the Company or any of the Subsidiaries is in default in the
performance, observance or fulfillment of any of the obligations, covenants or conditions contained
in any indenture, agreement, contract or instrument to which it is a party or by which it or any of
its property may be bound, and no condition exists that, with the giving of notice or the lapse of
time or both, would constitute such a default, except, in each case, where the consequences, direct
or indirect, of such default or defaults, if any, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

4.9 Governmental Regulation.

None of Holdings, the Company or any of the Subsidiaries is subject to regulation under the
Federal Power Act, the Interstate Commerce Act or the Investment Company Act of 1940 or under any
other federal or state statute or regulation which may limit its ability to incur Indebtedness or
which may otherwise render all or any portion of the Obligations unenforceable.

 

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4.10 Securities Activities.

None of Holdings, the Company or any of the Subsidiaries is engaged principally, or as one of
its important activities, in the business of extending credit for the purpose of purchasing or
carrying any Margin Stock.

4.11 ERISA.

Holdings, the Company, each of the Subsidiaries and each of their respective ERISA Affiliates
are in compliance with all applicable provisions and requirements of ERISA and the Code and the
regulations and published interpretations thereunder with respect to each Employee Benefit Plan,
and have performed all their obligations under each Employee Benefit Plan. Each Employee Benefit
Plan which is intended to qualify under Section 401(a) of the Code has received a favorable
determination letter from the Internal Revenue Service indicating that such Employee Benefit Plan
is so qualified and nothing has occurred subsequent to the issuance of such determination letter
which would cause such Employee Benefit Plan to lose its qualified status. No liability to the PBGC
(other than required premium payments), the Internal Revenue Service, any Employee Benefit Plan or
any trust established under Title IV of ERISA has been or is expected to be incurred by Holdings,
the Company, any of the Subsidiaries or any of their respective ERISA Affiliates. No ERISA Event
has occurred or is reasonably expected to occur. Except to the extent required under Section 4980B
of the Code or similar state laws or as set forth on Schedule 4.11, no Employee Benefit
Plan provides health or welfare benefits (through the purchase of insurance or otherwise) for any
retired or former employee of the Company, any of the Subsidiaries or any of their respective ERISA
Affiliates. The present value of the aggregate benefit liabilities under each Pension Plan
sponsored, maintained or contributed to by Holdings, the Company, any of the Subsidiaries or any of
their respective ERISA Affiliates (determined as of the end of the most recent plan year on the
basis of the actuarial assumptions specified for funding purposes in the most recent actuarial
valuation for such Pension Plan) did not exceed the aggregate current value of the assets of such
Pension Plan by more than $5,000,000. As of the most recent valuation date for each Multiemployer
Plan for which the actuarial report is available, the potential liability of Holdings, the Company,
the Subsidiaries and their respective ERISA Affiliates for a complete withdrawal from such
Multiemployer Plan (within the meaning of Section 4203 of ERISA), when aggregated with such
potential liability for a complete withdrawal from all Multiemployer Plans, based on information
available pursuant to Section 4221(e) of ERISA is not greater than $5,000,000. Holdings, the
Company, each of the Subsidiaries and each of their respective ERISA Affiliates have complied with
the requirements of Section 515 of ERISA with respect to each Multiemployer Plan and are not in
material “default” (as defined in Section 4219(c)(5) of ERISA) with respect to payments to a
Multiemployer Plan.

4.12 Certain Fees.

Except as otherwise disclosed in writing to the Administrative Agent, no broker’s or finder’s
fee or commission will be payable with respect to this Agreement or any of the transactions
contemplated by the Loan Documents, and the Company hereby indemnifies the Administrative Agent and
the Lenders against, and agrees that it will hold the Administrative Agent and the Lenders harmless
from, any claim, demand or liability for any such broker’s or finder’s fees alleged to have been
incurred in connection herewith or therewith by the Company or any of its Affiliates and any
expenses (including reasonable fees, expenses and disbursements of counsel) arising in connection
with any such claim, demand or liability.

 

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4.13 Environmental Matters.

None of Holdings, the Company or any of the Subsidiaries nor any of their respective
Facilities or operations are subject to any outstanding written order, consent decree or settlement
agreement with any Person relating to any Environmental Law, any Environmental Claim, or any
Hazardous Materials Activity that, individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect. None of Holdings, the Company or any of the Subsidiaries has
received any letter or request for information under Section 104 of the Comprehensive Environmental
Response, Compensation, and Liability Act (42 U.S.C. Section 9604) or any comparable law. There are
and, to each of the Company’ and the Subsidiaries’ knowledge, have been, no conditions,
occurrences, or Hazardous Materials Activities which could reasonably be expected to form the basis
of an Environmental Claim against Holdings, the Company or any of the Subsidiaries that,
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
None of Holdings, the Company or any of the Subsidiaries or, to any Loan Party’s knowledge, any
predecessor of Holdings, the Company or any of the Subsidiaries has filed any notice under any
Environmental Law indicating past or present treatment of Hazardous Materials at any Facility, and
none of Holdings’, the Company’s or any of the Subsidiaries’ operations involves the generation,
transportation, treatment, storage or disposal of hazardous waste, as defined under 40 C.F.R. Parts
260-270 or any state equivalent which has materially violated any Environmental Law. Compliance
with all current or reasonably foreseeable future requirements pursuant to or under Environmental
Laws, individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect. No event or condition has occurred or is occurring with respect to Holdings, the Company or
any of the Subsidiaries relating to any Environmental Law, any Release of Hazardous Materials, or
any Hazardous Materials Activity which, individually or in the aggregate, has had, or could
reasonably be expected to have, a Material Adverse Effect.

4.14 Employee Matters.

There is no strike or work stoppage in existence or threatened involving Holdings, the Company
or any of the Subsidiaries that could reasonably be expected to have a Material Adverse Effect.

4.15 Solvency.

Each of Holdings, the Company and each of the Subsidiaries, taken as a whole, are, and, upon
the incurrence of any Obligations by any Loan Party on any date on which this representation is
made, will be, Solvent.

4.16 [Intentionally Omitted]

4.17 Disclosure.

The representations and warranties of Holdings, the Company and the Subsidiaries contained in
the Loan Documents and the factual information contained in the other documents, certificates and
written statements furnished to any of the Administrative Agent or the Lenders by or on behalf of
Holdings, the Company or any of the Subsidiaries for use in connection with the transactions
contemplated by this Agreement or any other Loan Document, when taken together, do not contain any
untrue statement of a material fact or omit to state a material fact (known to the Company or the
applicable Subsidiary, in the case of any document not furnished by it) necessary in order to make
the statements contained herein or therein not materially misleading in light of the circumstances
under which the same were made. The Company has disclosed to the Administrative Agent and the
Lenders all facts known to Holdings, the Company or any of the Subsidiaries (other than matters of
a general economic nature) that, individually or in the aggregate, have had, or could reasonably be
expected to have, a Material Adverse Effect.

 

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SECTION 5.

AFFIRMATIVE COVENANTS

Each of Holdings and the Company covenants and agrees that, until payment in full of all of
the Term Loans and other Obligations, Holdings and the Company shall perform, and the Company shall
cause each of the Subsidiaries to perform, all covenants in this Section 5.

5.1 Financial Statements and Other Reports and Notices.

A. Financial Information.

The Company shall maintain, and shall cause each of the Subsidiaries to maintain, a system
of accounting established and administered to permit preparation of financial statements in
conformity with GAAP. The Company shall deliver to the Administrative Agent (who shall promptly
forward copies of the same to each Lender):

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

(ii) as soon as practicable, but in any event not later than fifty-five (55) days after
the end of each of the Fiscal Quarters of the Company and the Subsidiaries, copies of the
unaudited consolidated balance sheet of the Company and the Subsidiaries as at the end of such
Fiscal Quarter, and the related consolidated statement of income and consolidated statement of
cash flow for such Fiscal Quarter and the portion of such Persons’ Fiscal Year then elapsed,
setting forth in each case in comparative form the figures for the corresponding period or
periods of (or, in the case of the balance sheet as of the end of) the previous Fiscal Year and
the comparisons to the projections for such period, all in reasonable detail and prepared in
accordance with GAAP, together with a certification by the principal financial or accounting
officer of the Company that the information contained in such financial statements fairly
presents the financial position of the Company and the Subsidiaries on the date thereof
(subject to yearend adjustments);

(iii) contemporaneously with the provision of such financial statements to the lenders or
agent under the Revolving Credit Agreement, unaudited monthly consolidated financial statements
of the Company and the Subsidiaries for such monthly period ending on the last Sunday of each
calendar month and the portion of the Company’s Fiscal Year then ending setting forth in each
case in comparative form the figures for the corresponding period or periods of (or, in the
case of the balance sheet, as of the end of) the previous Fiscal Year and the projections for
such period, each prepared in accordance with GAAP, together with a certification by the
principal financial or accounting officer of the Company that the information contained in such financial
statements fairly presents the financial condition of the Company and the Subsidiaries on the
date thereof (subject to yearend adjustments);

 

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(iv) simultaneously with the delivery of the financial statements referred to in clauses
(i) and (ii) above, a statement certified by the principal financial or accounting officer of
the Company, in substantially the form of Exhibit VIII hereto (a “Compliance
Certificate”);

(v) promptly after the filing or mailing thereof, copies of all material of a financial
nature filed with the Securities and Exchange Commission, if any filings are required, or sent
to the stockholders of Holdings or the Company;

(vi) within forty-five (45) days after the beginning of each Fiscal Year of the Company
and from time to time upon request of the Administrative Agent (but not more frequently than
annually so long as no Default or Event of Default is continuing), projections of the Company
and the Subsidiaries broken down for the next Fiscal Year on a month by month and quarter by
quarter basis updating those projections and budgets delivered to the Lenders and referred to
in subsection 4.3 or, if applicable, updating any later such projections delivered in response
to a request pursuant to this subsection 5.1(v);

(vii) all notices and other information sent to any holder of any of the Senior Secured
Notes, to any lender under the Revolving Credit Documents or to any lender under the Holdings
Credit Documents, in each case, in its capacity as such; and

(viii) from time to time such other financial data and information (including accountants’
management letters, quarterly statements of Consolidated EBITDA for individual Stores and
operating and other financial statements delivered on a monthly basis under the Original Credit
Agreement) as the Administrative Agent or any Lender may reasonably request.

B. Defaults.

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

C. Environmental Events.

The Company will promptly give notice to the Administrative Agent (a) of any violation of
any Environmental Law that any of Holdings, the Company or the Subsidiaries reports in writing to,
or is required by Environmental Law to report (or for which any written report supplemental to any
oral report is made) to, any federal, state or local environmental agency, and (b) upon becoming
aware thereof, of any inquiry, proceeding, investigation, or other action, including a notice from
any agency of potential environmental liability, of any federal, state or local environmental
agency or board, that has the potential to have a Materially Adverse Effect.

 

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D. Notice of Litigation and Judgments.

Each of Holdings and the Company will, and the Company will cause each of the Subsidiaries
to, give notice to the Administrative Agent in writing within fifteen (15) days of becoming aware
of any litigation or proceedings threatened in writing or any significant development in any
pending litigation and proceedings affecting Holdings, the Company or any of the Subsidiaries or to
which any of Holdings, the Company or the Subsidiaries is or becomes a party involving an uninsured
claim against any of Holdings, the Company or the Subsidiaries that could reasonably be expected to
have a materially adverse effect on Holdings, the Company or the Subsidiaries and stating the
nature and status of such litigation or proceedings. Holdings and the Company will, and the Company
will cause each of the Subsidiaries to, give notice to the Administrative Agent, in writing, in
form and detail satisfactory to the Administrative Agent, within ten (10) days of any judgment not
covered by insurance, final or otherwise, against any of Holdings, the Company or the Subsidiaries
in an amount in excess of $500,000.

5.2 Corporate Existence; Maintenance of Properties.

Holdings and the Company will do or cause to be done all things necessary to preserve and keep
in full force and effect its corporate existence and rights and those of the Subsidiaries and will
not, and the Company will not cause or permit any of the Subsidiaries to, convert to a limited
liability company. Each of Holdings and the Company (i) will cause all of its properties and those
of the Subsidiaries used or useful in the conduct of its business or the business of the
Subsidiaries to be maintained and kept in good condition, repair and working order and supplied
with all necessary equipment, (ii) will cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of the Company may be
necessary so that the business carried on in connection therewith may be properly and
advantageously conducted at all times, and (iii) will, and the Company will cause each of the
Subsidiaries to, continue to engage primarily in the businesses now conducted by them and in
related businesses; provided that nothing in this subsection 5.2 shall prevent Holdings or the
Company from discontinuing the operation and maintenance of any of its properties or any of those
of the Subsidiaries if such discontinuance is, in the judgment of the Company, desirable in the
conduct of its or their business and that do not in the aggregate materially adversely affect the
business of the Company and the Subsidiaries on a consolidated basis.

5.3 Taxes.

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

 

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5.4 Insurance.

Each of Holdings and the Company will, and the Company will cause each of the Subsidiaries to,
maintain with financially sound and reputable insurers insurance with respect to its properties and
business against such casualties and contingencies as shall be in accordance with the general
practices of businesses engaged in similar activities in similar geographic areas and in amounts,
containing such terms, in such forms and for such periods as may be reasonable and prudent. Without
limiting the foregoing, (i) such insurance shall be in such minimum amounts that such Person will not be
deemed a co-insurer under applicable insurance laws, regulations and policies and otherwise shall
be in such amounts, contain such terms, be in such forms and be for such periods as may be
reasonably satisfactory to the Administrative Agent, and (ii) each such Person will (a) keep all of
its physical property insured with casualty or physical hazard insurance on an “all risks” basis,
with broad form flood and earthquake coverages and electronic data processing coverage, with a full
replacement cost endorsement and an “agreed amount” clause in an amount equal to 100% of the full
replacement cost of such property, with deductibles equal to those generally maintained by
businesses engaged in similar activities in similar geographic areas, subject to aggregate
sublimits for flood and earthquake equal to those generally maintained by businesses engaged in
similar activities in similar geographic areas, (b) maintain all such workers’ compensation or
similar insurance as may be required by law and (c) maintain, in amounts and with deductibles and
“stop loss” provisions equal to those generally maintained by businesses engaged in similar
activities in similar geographic areas, general public liability insurance against claims of bodily
injury, death or property damage occurring, on, in or about the properties of such Person, business
interruption insurance, and product liability insurance. In the event of failure by the Company to
provide and maintain insurance as herein provided, the Administrative Agent may, at its option,
provide such insurance and charge the amount thereof to the Company. The Company shall furnish the
Administrative Agent with certificates of insurance and policies evidencing compliance with the
foregoing insurance provision.

5.5 Inspection.

A. General.

Each of Holdings and the Company shall permit the Lenders, if accompanied by the
Administrative Agent, or the Requisite Lenders, whether or not accompanied by the Administrative
Agent, to visit and inspect any of the properties of Holdings, the Company or the Subsidiaries, to
examine the books of account of Holdings, the Company and the Subsidiaries (and to make copies
thereof and extracts therefrom), and shall permit the Lenders to discuss the affairs, finances and
accounts of Holdings, the Company and the Subsidiaries with, and to be advised as to the same by,
its and their officers, all at such reasonable times and intervals as the Administrative Agent or
any Lender may reasonably request; provided that any such visits shall occur no
more frequently than twice per year if no Event of Default has occurred and is continuing. The
Administrative Agent shall notify the Lenders of any such visit or inspection by the Administrative
Agent, and the Lenders shall have the right to participate therein.

B. Communications with Accountants.

The Company authorizes the Lenders, if accompanied by the Administrative Agent, to
communicate directly with the Company’s independent certified public accountants and authorizes
such accountants to disclose to the Administrative Agent any and all financial statements and other
supporting financial documents and schedules including copies of any management letter with respect
to the business, financial condition and other affairs of any of Holdings, the Company or the
Subsidiaries. At the request of the Administrative Agent, the Company shall deliver a letter
addressed to such accountants instructing them to comply with the provisions of this subsection
5.5B.

 

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5.6 Compliance with Laws, Contracts, Licenses, and Permits.

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

5.7 Environmental Laws.

A. Each of Holdings and the Company shall, and the Company shall cause each of the
Subsidiaries to, (i) comply and cause (x) all tenants under any leases or occupancy agreements
affecting any portion of the Facilities presently owned or operated by Holdings, the Company or the
Subsidiaries and (y) all other Persons on or occupying such property to comply with all
Environmental Laws and (ii) obtain and comply with and maintain, and ensure that all tenants and
subtenants obtain and comply with and maintain, any and all licenses, approvals, notifications,
registrations or permits required by applicable Environmental Laws except where the failure to
comply, obtain or maintain with respect to clauses (i) or (ii) would not have a Material Adverse
Effect.

B. Each of Holdings and the Company shall, and the Company shall cause each of the
Subsidiaries to, conduct and complete all investigations, studies, sampling and testing, and all
remedial, removal and other actions required under Environmental Laws and timely comply with all
lawful orders and directives of all Governmental Authorities regarding Environmental Laws except to
the extent that the same are being contested in good faith by appropriate proceedings and the
pendency of such proceedings, individually or in the aggregate, could not reasonable be expected to
have a Material Adverse Effect.

C. Each of Holdings and the Company agrees that the Administrative Agent may, from time to
time, retain, at the Company’s expense, an independent professional consultant to review any report
relating to Hazardous Materials prepared by or for Holdings, the Company or the Subsidiaries and to
conduct its own investigation of any Facility currently owned, leased, operated or used by the
Company or any of the Subsidiaries, if (i) a Default or an Event of Default shall have occurred and
be continuing and any facility has an occurrence giving rise to an Environmental Liability, or (ii)
the Administrative Agent or Requisite Lenders reasonably believes (x) that an occurrence relating
to such Facility is likely to give rise to an Environmental Liability or (y) that a violation of an
Environmental Law on or around such Facility has occurred or is likely to occur, which could, in
either such case, reasonably be expected to have a Material Adverse Effect. The Company shall
obtain for the Administrative Agent and its agents, employees, consultants and contractors the
right, upon notice to the Company, to enter into or on to the Facilities currently owned, leased,
operated or used by the Company or any of the Subsidiaries to perform such tests on such property
as are necessary to conduct such a review and/or investigation. Any such investigation of any
Facility shall be conducted, unless otherwise agreed to by the Company and the Administrative
Agent, during normal business hours and, to the extent reasonably practicable, shall be conducted
so as not to interfere with the ongoing operations at any such Facility or to cause any damage or
loss to any property at such Facility. The Company and the Administrative Agent hereby acknowledge
and agree that any report of any investigation conducted at the request of the Administrative Agent
pursuant to this subsection 5.7C shall be for the benefit of the Company and may be used by the
Administrative Agent and the Lenders for the
purposes of the Lenders’ internal credit decisions, to monitor and police the Term Loans, and
the Administrative Agent and the Lenders hereby acknowledge and agree any such report shall be kept
confidential by them to the extent permitted by law pursuant to subsection 9.18. The Administrative
Agent agrees to deliver a copy of any such report to the Company with the understanding that the
Company acknowledges and agrees that (i) it shall indemnify and hold harmless the Administrative
Agent and each Lender from any costs, losses or liabilities relating to the Company’s use of or
reliance on such report, (ii) no Agent nor any Lender makes any representation or warranty with
respect to such report, and (iii) by delivering such report to the Company, no Agent nor any Lender
is requiring or recommending the implementation of any suggestions or recommendations contained in
such report.

 

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D. Each of Holdings and the Company shall, and the Company shall cause each of the
Subsidiaries to, promptly advise the Administrative Agent in writing and in reasonable detail of
(i) any Release or threatened Release of any Hazardous Materials required to be reported to any
Governmental Authority under any applicable Environmental Laws, (ii) any and all communications
(written or oral) with respect to any pending or threatened Environmental Claims in each such case
which, individually or in the aggregate, could reasonably be expected to have a Material Adverse
Effect and any and all material written communications with respect to any Release or threatened
Release of Hazardous Materials, (iii) any cleanup performed by Holdings, the Company or any of the
Subsidiaries or any other Person in response to (x) any Hazardous Materials on, under or about any
Facility, the existence of which could reasonably be expected to result in an Environmental
Liability having a Material Adverse Effect, or (y) any Environmental Liabilities that could
reasonably be expected to have a Material Adverse Effect, (iv) any discovery by Holdings, the
Company or any of the Subsidiaries of any occurrence or condition on any property that could cause
any Facility presently owned or operated by Holdings, the Company or the Subsidiaries or any part
thereof to be subject to any restrictions on the ownership, occupancy, transferability or use
thereof under any Environmental Laws, and (v) any request for information from any Governmental
Authority that fairly suggests such Governmental Authority is investigating whether Holdings, the
Company or any of the Subsidiaries may be potentially responsible for a Release or threatened
Release of Hazardous Materials which could reasonably be expected to have a Material Adverse
Effect.

E. Each of Holdings and the Company shall, and the Company shall cause each of the
Subsidiaries to, promptly notify the Administrative Agent in writing and in reasonable detail of
(i) any proposed acquisition of stock, assets, or property by Holdings, the Company or any of the
Subsidiaries that could reasonably be expected to expose Holdings, the Company or any of the
Subsidiaries to, or result in, Environmental Liability that could reasonably be expected to have a
Material Adverse Effect or that could reasonably be expected to have a material adverse effect on
any Governmental Authorization then held by Holdings, the Company or any of the Subsidiaries and
(ii) any proposed action to be taken by Holdings, the Company or any of the Subsidiaries to
commence manufacturing, agricultural, industrial or other similar operations that could reasonably
be expected to subject Holdings, the Company or any of the Subsidiaries to additional Environmental
Laws, that are materially different from the Environmental Laws applicable to the operations of
Holdings, the Company and the Subsidiaries as of the Closing Date.

F. Each of Holdings and the Company shall, and the Company shall cause each of the
Subsidiaries to, at its own expense, provide copies of such documents or information as the
Administrative Agent may reasonably request in relation to any matters disclosed pursuant to this
subsection 5.7.

G. Each of Holdings and the Company shall, and the Company shall cause each of the
Subsidiaries to, defend, indemnify and hold harmless the Administrative Agent and the Lenders, and
their respective employees, agents, officers and directors, from and against any and all claims,
demands, penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind
or nature known or unknown, contingent or otherwise, arising out of, or in any way relating to the
violation of, noncompliance with or liability under, any Environmental Law applicable to the Facilities or the business or
operations of Holdings, the Company or any of the Subsidiaries, or any orders, requirements or
demands of Governmental Authorities related thereto, including reasonable attorney’s and
consultant’s fees, investigation and laboratory fees, response costs, court costs and litigation
expenses, except to the extent that any of the foregoing arise out of the gross negligence or
willful misconduct of the party seeking indemnification therefor. The agreements in this paragraph
shall survive repayment of the Obligations solely to the extent relating to periods prior to such
repayment.

 

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5.8 Employee Benefit Plans.

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

5.9 Reporting.

Whether or not required by the SEC or any of its rules or regulations, so long as any Term
Loans are outstanding, the Company will file with the SEC, unless such filing by a company having
no obligation to file under applicable law and regulation is not permitted by the SEC, and will
deliver to the Administrative Agent and the Lenders, within the time periods specified in the SEC’s
rules and regulations, (i) all quarterly and annual financial information that would be required to
be contained in a filing with the SEC on Forms 10-Q and 10-K if the Company was required to file
such Forms, including a “Management’s Discussion and Analysis of Financial Condition and Result of
Operations” and with respect to the annual information only, a report on the annual financial
statements by the Company’s certified independent accounts; and (ii) all current reports that would
be required to be filed with the SEC on Form 8-K if the Company were required to file such reports.

5.10 Use of Proceeds.

The Company has used the proceeds of the Term Loans for the purposes described in Section 2.5,
and none other.

5.11 Further Assurances.

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

 

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5.12 Conduct of Business; Stores.

The Company will cause the Subsidiaries to continue to engage only in the business of owning
and operating casual dining restaurants, manufacturing of food products and the distribution of
food, beverages and other restaurant supplies and in businesses and activities closely related
thereto. The Company shall inform the Administrative Agent of any new Store locations
simultaneously with the delivery of the financial statements referred to in subsection 5.1A(iii)
but in any event no later than one month after the opening of a new Store location and the entering
into a lease for, or the acquisition of, the premises for a new Store. The Company will continue to
engage only in the business of owning the capital stock of the Subsidiaries and shall not own any
assets other than the capital stock of the Subsidiaries.

5.13 New Subsidiaries.

Any new Subsidiary (other than an Excluded Foreign Subsidiary) created or acquired shall
become a Subsidiary Guarantor and become a party to the Guarantee Agreement by (i) signing a
joinder agreement, and (ii) providing such other documentation as the Administrative Agent may
reasonably request, including, without limitation, legal opinions and corporate authorization
documentation with respect to such new Subsidiary and other documentation with respect to the
conditions specified in Section 3 hereof.

5.14 Existing Senior Secured Note Redemption.

On or prior to the 40th day following the delivery of a notice of redemption delivered in
accordance with Section 3.03 of the Existing Senior Secured Note Indenture in which the Company
elected to redeem all but not less than all Existing Senior Secured Notes issued thereunder
pursuant to the optional redemption provisions of Section 3.07 of the Existing Senior Secured Note
Indenture, the Company will deliver evidence reasonably satisfactory to the Administrative Agent
that all money deposited with the Trustee (as defined in the Existing Notes Indenture) pursuant to
Section 12.01(1)(b) of the Existing Senior Secured Note Indenture have been sent by the applicable
trustee to the holders of the Senior Secured Notes for application to the payment of all Senior
Secured Notes issued thereunder.

SECTION 6.

NEGATIVE COVENANTS

Each of Holdings and the Company covenants and agrees that, until payment in full of all of
the Term Loans and other Obligations, it shall perform, and the Company shall cause each of the
Subsidiaries to perform, all covenants in this Section 6.

6.1 Indebtedness.

Neither Holdings nor the Company will, and the Company will not permit any of the Subsidiaries
to, directly or indirectly, create, incur, issue, assume or guaranty, or otherwise become or remain
directly or indirectly liable with respect to, any Indebtedness other than:

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

(ii) Indebtedness at any time incurred under the Revolving Credit Documents and any
Permitted Refinancing Indebtedness in respect of such Indebtedness in an aggregate principal
amount under this clause (ii) not to exceed $40,000,000, less the aggregate amount of all
permanent reductions of the commitments thereunder by the Company or any of the Subsidiaries
since the Restatement Date;

 

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(iii) Indebtedness at any time incurred by Holdings under the Holdings Credit Documents
and any Permitted Refinancing Indebtedness in respect of such Indebtedness, provided
that in no event shall the principal amount of such Indebtedness increase in excess
of the amounts outstanding as of the Restatement Date plus the amount of accrued and unpaid
interest paid thereon in kind in accordance with the Holdings Credit Agreement as in effect
on the Restatement Date;

(iv) [Intentionally Omitted];

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

(vi) Indebtedness of the Company or any of the Subsidiaries in respect of Rate
Protection Agreements entered into in order to hedge against interest rate fluctuations on
Indebtedness for borrowed money of the Company and the Subsidiaries and not for speculative
purposes;

(vii) Indebtedness incurred in connection with the acquisition after the Closing Date
of any real or personal property by the Company or any of the Subsidiaries or under any
Capitalized Lease in connection with new Stores or major renovations or refurbishments of
existing Stores; provided that the aggregate principal amount of such
Indebtedness of the Company and the Subsidiaries outstanding at any time under this clause
(v) shall not exceed the aggregate amount of $5,000,000 and provided
further, that no Default or Event of Default shall exist (a) prior to the incurrence
of such Indebtedness or (b) as a result of the incurrence of such Indebtedness;

(viii) Indebtedness of the Company or a Subsidiary Guarantor to the Company or another
Subsidiary Guarantor; provided that all such intercompany Indebtedness shall
be subordinated to the Obligations on terms satisfactory to the Administrative Agent;

(ix) Indebtedness existing on the Restatement Date and listed and described on
Schedule 6.1 hereto and any Permitted Refinancing Indebtedness in respect of such
Indebtedness;

(x) Indebtedness evidenced by the Senior Secured Note Documents and any Permitted
Refinancing Indebtedness in respect of such Indebtedness in an aggregate principal amount
under this clause (x) not to exceed $130,000,000, less the aggregate amount of all
repayments, redemptions or repurchase by the Company or any of the Subsidiaries of the
Indebtedness thereunder since the Closing Date;

(xi) Indebtedness consisting of contingent obligations of the Company or any of the
Subsidiaries to repurchase or otherwise redeem capital stock of the Company from former
employees of the Company and the Subsidiaries pursuant to the terms of employee stock
ownership, employee stock option or other employee compensation plans of the Company and the
Subsidiaries and matured obligations to repurchase or otherwise redeem such stock to the
extent such repurchase or redemption is permitted under subsection 6.4(iii);

(xii) Indebtedness evidenced by the Existing Senior Secured Note Documents in an
aggregate principal amount under this clause (xii) not to exceed $105,000,000;
provided that cash proceeds in the amount of such Indebtedness permitted
under this clause (xii) shall be deposited with the trustee under the Existing Senior
Secured Note Documents on or prior to the Restatement Date and such Indebtedness shall be redeemed as set forth in the Existing
Senior Secured Note Documents within 40-days from the Restatement Date;

 

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(xiii) Indebtedness consisting of Holdings or any of the Subsidiaries guarantying the
Indebtedness of the Company or any of the Subsidiaries so long as such Indebtedness is
otherwise permitted hereunder;

(xiv) other Indebtedness in an aggregate principal amount at any time outstanding not
to exceed $5,000,000; and

(xv) Indebtedness representing installment insurance premiums of Holdings or any of the
Subsidiaries owing to insurance companies in the ordinary course of business.

6.2 Liens and Related Matters.

Neither Holdings nor the Company will, and the Company will not permit any of the Subsidiaries
to, (i) create or incur or suffer to be created or incurred or to exist any Lien upon any of its
property or assets of any character whether now owned or hereafter acquired, or upon the income or
profits therefrom; (ii) transfer any of such property or assets or the income or profits therefrom
for the purpose of subjecting the same to the payment of Indebtedness or performance of any other
obligation in priority to payment of its general creditors; (iii) acquire, or agree or have an
option to acquire, any property or assets upon conditional sale or other title retention or
purchase money security agreement, device or arrangement; (iv) suffer to exist for a period of more
than thirty (30) days after the same shall have been incurred any Indebtedness or claim or demand
against it that if unpaid might by law or upon bankruptcy or insolvency, or otherwise, be given any
priority whatsoever over its general creditors; (v) sell, assign, pledge or otherwise transfer any
accounts or general intangibles for money due or to become due, chattel paper, instruments or
documents creating or evidencing a right to payment of money or other receivables, with or without
recourse; or (vi) enter into or permit to exist any arrangement or agreement, enforceable under
applicable law, which directly or indirectly prohibits the Company or any of the Subsidiaries from
creating or incurring any lien, encumbrance, mortgage, pledge, charge, restriction or other
security interest other than (1) the restrictions under the Revolving Credit Documents as in effect
on the Restatement Date and as amended to the extent permitted by subsection 6.10 in favor of the
agent thereunder for the benefit of the lenders and the agent thereunder, (2) the restrictions
under the Senior Secured Note Documents as in effect on the Restatement Date and as amended to the
extent permitted by subsection 6.10, (3) prior to the 2009 Indenture Effective Time, the
restrictions under the Existing Senior Secured Note Documents, (4) the restrictions under the
Holdings Credit Documents as in effect on the Restatement Date and as amended from time to time to
the extent permitted by subsection 6.10, and (5) customary anti-assignment provisions in leases and
licensing agreements entered into by the Company or any of the Subsidiaries in the ordinary course
of its business; provided that

(a) any of the Company or the Subsidiaries may create or incur or suffer to be created or
incurred or to exist:

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

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

 

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

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

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

(vi) liens existing on the Restatement Date and listed and described on Schedule
6.2 hereto;

(vii) purchase money security interests in or purchase money mortgages on real or personal
property acquired after the Closing Date to secure purchase money Indebtedness of the type and
amount permitted by subsection 6.1(vii), incurred in connection with the acquisition of such
property, which security interests or mortgages cover only the real or personal property so
acquired;

(viii) liens on tenant improvements securing Indebtedness incurred with respect thereto
and which is permitted under subsection 6.1(v) or subsection 6.1(xi);

(ix) liens created under, or evidenced or governed by, the Senior Secured Note Documents
securing Indebtedness permitted by subsection 6.1(x) and other Note Obligations (as defined in
the Senior Secured Note Documents);

(x) liens created under, or evidenced or governed by, the Revolving Credit Documents (or
the documents relating to any Permitted Refinancing Indebtedness in respect thereof) securing
Indebtedness permitted by subsection 6.1(ii);

(xi) liens on Cash in an amount not to exceed $5,000,000 utilized to collateralize letters
of credit;

(xii) liens securing Indebtedness incurred under the Existing Senior Secured Note
Documents to the extent permitted under Section 6.1;

(xiii) liens on assets of the Company and the Subsidiaries not otherwise permitted by this
subsection; provided that neither the aggregate amount of the obligations
secured thereby nor the aggregate fair market value of the assets subject thereto exceeds
$500,000 at any time outstanding; and

(xiv) liens on insurance policies and the proceeds thereof securing the financing of
premiums with respect thereto;

 

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(b) Holdings may create or incur or suffer to be created or incurred or to exist:

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

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

(iii) liens on insurance policies and the proceeds thereof securing the financing of
premiums with respect thereto;

(iv) liens created under, or evidenced or governed by, the Senior Secured Note Documents
securing Indebtedness permitted by subsection 6.1(x) and other Note Obligations (as defined in
the Senior Secured Note Documents); and

(v) liens created under, or evidenced or governed by, the Revolving Credit Documents (or
the documents relating to any Permitted Refinancing Indebtedness in respect thereof) securing
Indebtedness permitted by subsection 6.1(ii).

6.3 Investments.

Neither Holdings nor the Company will, and the Company will not permit any of the Subsidiaries
to, make or permit to exist or to remain outstanding any Investment, except Investments in:

(i) Cash Equivalents;

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

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

(iv) Investments existing on the Closing Date and listed on Schedule 6.3 hereto;

(v) loans, investments and advances by the Company, Holdings or any Subsidiary in or to
the Company or another Subsidiary to the extent permitted by subsections 6.1(viii) and equity
investments made by the Company in a Subsidiary;

(vi) Investments by the Company and the Subsidiaries in respect of any Rate Protection
Agreement which is permitted by subsection 6.1(vi);

 

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

(viii) Investments consisting of promissory notes received as proceeds of asset
dispositions permitted by subsection 6.6B, provided that the aggregate value of
such promissory notes received in connection with any such asset disposition shall not exceed
25% of the aggregate value of the proceeds of such asset disposition; and

(ix) Investments consisting of loans and advances to employees for moving, entertainment,
travel and other similar expenses in the ordinary course of business not to exceed $500,000 in
the aggregate at any time outstanding.

6.4 Restricted Payments.

Neither Holdings nor the Company will, and the Company will not permit any of the Subsidiaries
to, make any Restricted Payments, except for the following:

(i) Distributions payable by any Subsidiary to the Company;

(ii) so long as no Event of Default is then continuing, Distributions in an amount not to
exceed $1,000,000 per annum (with up to $1,000,000 of unused amounts in previous periods to be
carried over into subsequent periods) to be used to repurchase or otherwise redeem capital
stock of the Company or Holdings from former employees of the Company and the Subsidiaries
pursuant to the terms of employee stock ownership, employee stock options or other employee
compensation plans of the Company and the Subsidiaries; provided that that
portion of such Distributions equal to cash payments received by the Company from the
subsequent sale of such repurchased or redeemed capital stock for cash to any employee of the
Company and the Subsidiaries at the commencement of such Person’s employment shall not be
deemed to be a Distribution for purposes of this Section 6.4(ii);

(iii) Holdings, the Company and the Subsidiaries may make Distributions to the extent all
of the proceeds of such Distributions are promptly upon receipt thereof used by Holdings to
make payments of fees and expenses permitted by clauses (a), (b), (c) or (e) of the proviso to
Section 6.9 (and to the extent Holdings makes such payments in the form of a Distribution, such
Distribution by Holdings); and

(iv) (A) at all times prior to the 2009 Indenture Effective Time, (i) payment in respect
of or purchase of the Existing Senior Secured Notes funded solely with the proceeds of the
substantially contemporaneous sale or issuance of common Equity Interest of Holdings to
Permitted Holders or their Control Investment Affiliates and (ii) cash payment obligations with
respect to interest and costs and expenses on the Existing Senior Secured Notes to the extent
required by the Existing Senior Secured Note Documents, (B) from and after the 2009 Indenture
Effective Time, (i) payment in respect of or purchase of the Senior Secured Notes funded solely
with the proceeds of the substantially contemporaneous sale or issuance of common Equity
Interest of Holdings to Permitted Holders or their Control Investment Affiliates, (ii) cash
payment obligations with respect to interest and costs and expenses on the Senior Secured Notes
to the extent required by the Senior Secured Note Documents, (iii) payments made by the Company
in connection with an Excess Cash Flow Offer as defined in and as required by the Senior
Secured Note Indenture and to the extent permitted by the Revolving Credit Agreement, and (iv)
payment in full of the Senior Secured Notes at scheduled maturity pursuant to the terms of the
Senior Secured Indenture, or (C) payment in full on or about the 2009 Indenture Effective Time of the Existing Senior Secured Notes
contemplated by the definition of the term “2009 Indenture Effective Time”.

 

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6.5 Restriction on Fundamental Changes; Asset Sales.

A. Mergers and Consolidations.

Subject to subsection 6.5C, neither Holdings nor the Company will, and the Company will not
permit any of the Subsidiaries to, become a party to any merger or consolidation except the merger
or consolidation of one or more of the Subsidiaries of the Company with and into the Company, or
the merger or consolidation of two or more Subsidiaries of the Company; provided
that in the case of a merger involving a Subsidiary Guarantor (and not the Company) a
Subsidiary Guarantor shall be the continuing or surviving corporation.

B. Dispositions of Assets.

Neither Holdings nor the Company will, and the Company will not permit any of the
Subsidiaries to, become a party to or agree to or effect any Asset Sale, other than (a) the sale of
inventory and the disposition of obsolete assets, in each case in the ordinary course of business
consistent with past practices, (b) Sale-Leaseback transactions permitted pursuant to subsection
6.6, (c) the sale of unprofitable stores and (d) Asset Sales of assets having a fair market value
(determined in good faith by the board of directors of the Company) not in excess of $5,000,000
(provided that the fair market value of any Casa Gallardo Restaurants and of the
Ventura Property sold shall not reduce this amount) during any Fiscal Year or $10,000,000
(provided that the fair market value of any Casa Gallardo Restaurants and of the
Ventura Property sold shall not reduce this amount) in the aggregate on a cumulative basis from the
Closing Date; provided that, in each case under this clause (d), (i) the
consideration received for such assets shall be in an amount at least equal to the fair market
value thereof (determined in good faith by the board of directors of the Company), (ii) not less
than 75% of the consideration received therefor shall be cash and (iii) the Net Cash Proceeds of
such Asset Sale shall be applied if and to the extent required by subsection 2.4B(iii). Nothing in
this subsection 6.5B is intended to prohibit the Company or any of the Subsidiaries from
conditionally agreeing to dispose of any assets subject to the prior approval of the Lenders if the
Company or such Subsidiary will not be subject to any penalties in connection with such agreement
in the event that the Lenders (or all of the Lenders, as the case may require) do not consent to
such disposition.

C. Acquisitions.

Neither Holdings nor the Company will, and the Company will not permit any of the
Subsidiaries to, agree to or effect any asset acquisition or stock acquisition except (a) Capital
Expenditures, and (b) the acquisition of inventory, equipment, furnishings and other similar assets
(not including Stores or real property) in the ordinary course of business consistent with past
practices.

6.6 Sales and Lease-Backs.

Neither Holdings nor the Company will, and the Company will not permit any of the Subsidiaries
to, enter into any arrangement, directly or indirectly, whereby Holdings, the Company or any
Subsidiary shall sell or transfer any property owned by it in order then or thereafter to lease
such property or lease other property that Holdings, the Company or any such Subsidiary intends to
use for substantially the same purpose as the property being sold or transferred (a
“Sale-Leaseback”); provided that, so long as no Event of Default has
occurred and is continuing, the Company and the Subsidiaries may enter into Sale-Leaseback
transactions with respect to property and equipment in an aggregate amount not to exceed
$5,000,000; provided further that (a) the terms of the sales as such
are comparable to terms which could be obtained in arms length sales among unaffiliated parties not
involving Sale-Leaseback transactions, and (b) the terms of the leases as such are comparable to
terms which could be obtained in arms length commercial operating leases among unaffiliated
parties.

 

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6.7 Employee Benefit Plans.

None of Holdings, the Company or any ERISA Affiliate will:

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

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

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

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

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

6.8 Change in Fiscal Year.

Neither Holdings nor the Company will, and the Company will not permit any of the
Subsidiaries to, effect any change in the end of its Fiscal Year from that set forth in Section 1
hereto.

6.9 Transactions with Affiliates.

Neither Holdings nor the Company will, and the Company will not permit any of the Subsidiaries
to, engage in any transaction with any Affiliate (other than for services as employees, officers
and directors), including any contract, agreement or other arrangement providing for the furnishing
of services to or by, providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any such Affiliate or, to the knowledge of the Company, any
corporation, partnership, trust or other entity in which any such Affiliate has a substantial
interest or is an officer, director, trustee or partner, on terms less favorable to Holdings, the
Company or the Subsidiaries than would have been obtainable on an arm’s-length basis in the
ordinary course of business, provided that for so long as no Default or Event of Default is
continuing the foregoing restriction shall not apply to (a) payments by Holdings or any of the
Subsidiaries of reasonable expenses (other than fees and expenses of outside counsel) of Cocina,
SCSF Cantinas, KKR and Canpartners or their Control Investment Affiliates, in each case incurred by
such Person in its capacity as an owner of the Equity Interests in Holdings (including, without
limitation, reasonable travel expenses and outside director fees) in an aggregate amount not to
exceed $150,000 in any fiscal year for all such Persons,

 

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(b) payments by the Company to Holdings to
permit Holdings to pay franchise taxes, directors fees and reasonable accounting, legal and administrative expenses of
Holdings (other than legal fees and expenses and fees and expenses of auditors and accountants
incurred in connection with any litigation relating to or defaults under this Agreement) when due,
in an aggregate amount not to exceed $500,000 in any Fiscal Year, (c) for so long as the Company is
a member of a group filing a consolidated or combined tax return with Holdings or any direct or
indirect parent of Holdings, payments by the Company to Holdings in respect of an allocable portion
of the tax liabilities of such group that is attributable to the Company and the Subsidiaries
(“Tax Payments”); provided, however, that (A) the Tax Payments shall not
exceed the lesser of (1) the amount of the relevant tax (including any penalties and interest) that
the Company would owe if the Company were filing a separate tax return (or a separate consolidated
or combined return with the Subsidiaries that are members of the consolidated or combined group),
taking into account any carryovers and carrybacks of tax attributes (such as net operating losses)
of the Company and such Subsidiaries from other taxable years and (2) the net amount of the
relevant tax that Holdings actually owes to the appropriate taxing authority and (B) any Tax
Payments received from the Company shall be paid over to the appropriate taxing authority within 30
days of Holdings’ receipt of such Tax Payments or refunded to the Company, (d) payments of fees,
costs and expenses made by the Company pursuant to the terms of the Exchange Fee Agreement, as the
same is in effect on the Amendment No. 3 Effective Date, in an aggregate amount not to exceed
$1,200,000, (e) payments made by the Company to Holdings to permit Holdings to pay reasonable out
of pocket expenses associated with 2009 Transactions which are incurred and paid by Holdings on or
before August 31, 2009 as long as the aggregate amount of such expenses, together with all fees and
expenses incurred by Holdings and the Subsidiaries in connection with the 2009 Transactions, does
not exceed $8,500,000, and (f) the issuance of any Capital Stock or other equity issuances to
Capstone Consulting LLC pursuant to the Engagement Letter, or any related documents entered into in
connection therewith.

6.10 Holdings Credit Documents, Senior Secured Note Documents and Revolving Credit
Documents.

(a) Neither Holdings nor the Company will, and the Company will not permit any of the
Subsidiaries to, materially amend, supplement or otherwise modify (pursuant to a waiver or
otherwise) the terms and conditions of any of the Holdings Credit Documents, the Existing Senior
Secured Note Documents or the Senior Secured Note Documents without the prior written consent of
the Administrative Agent, if the effect of such amendment, supplement or other modification or
waiver is to increase the cash interest rate payable on the relevant Indebtedness thereunder or
increase the cash portion of any interest required to be paid thereon, change (to earlier dates)
any dates upon which payments of principal or interest are due thereon, increase the obligations of
the obligor or obligors thereunder or confer any additional rights on the holders of the relevant
Indebtedness thereunder which would be materially adverse to Holdings, the Company, any of the
Subsidiaries, the Administrative Agent or the Lenders.

(b) Neither Holdings nor the Company will, and the Company will not permit any of the
Subsidiaries to, amend, supplement or otherwise modify (pursuant to a waiver or otherwise) the
terms and conditions of any of the Revolving Credit Documents if such amendment, supplement or
modification would violate the terms of the Intercreditor Agreement.

6.11 Business of Holdings.

(a) Holdings will not engage in any business activities or have any assets other than (i)
its ownership of 100% of the Capital Stock of the Company, (ii) performing its obligations and
activities incidental thereto under the Loan Documents and under the Holdings Credit Documents,
(iii) performing its obligations and activities incidental thereto under the Revolving Credit Documents and the
Senior Secured Note Documents, and (iv) making Restricted Payments to the extent permitted by this
Agreement.

 

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(b) Except as permitted under Section 6.1 hereof, Holdings will not incur, directly or
indirectly, any Indebtedness or any other obligations whatsoever other than (i) the Holdings Term
Loan (including PIK interest payable in respect thereof), (ii) guarantee obligations under the
Revolving Credit Documents and the Senior Secured Note Documents, and (iii) and other obligations
not constituting Indebtedness incurred in the ordinary course of business as a holding company and
not otherwise restricted by this Section 6.12.

(c) Holdings will not (i) consolidate with or merge with or into, or convey, transfer or lease
all or substantially all its assets to, any Person; (ii) sell or otherwise dispose of any Capital
Stock of the Company; (iii) create or acquire any subsidiary or make or own any Investment in any
Person other than the Company and subsidiaries created or acquired by the Company; or (iv) fail to
hold itself out to the public as a legal entity separate and distinct from all other Persons.

SECTION 7.

EVENTS OF DEFAULT

If any of the following conditions or events (“Events of Default”) shall occur:

7.1 Failure to Make Payments When Due.

(i) Failure to pay any installment of principal of any Term Loan when due, whether at
stated maturity, by acceleration, by notice of prepayment or otherwise; or (ii) failure to pay
any interest on any Term Loan or any fee or any other amount (other than an amount referred to
in clause (i) above) due under this Agreement or any other Loan Document within three (3)
Business Days after the date due therefor; or

7.2 Default in Other Agreements.

(i) Failure of Holdings, the Company or any of the Subsidiaries to pay when due (a) any
principal of or interest on any Indebtedness (other than Indebtedness referred to in subsection
7.1, Indebtedness under the Revolving Credit Agreement and Indebtedness under the Holdco Credit
Agreement) in a principal amount outstanding of $3,000,000 or more or (b) any Contingent Obligation
(other than a Contingent Obligation in respect of Indebtedness under the Revolving Credit
Agreement) in a principal amount of $3,000,000 or more, in each case of clause (a) and (b) above
beyond the end of any grace period provided therefor; (ii) breach or default by Holdings, the
Company or any of the Subsidiaries with respect to any other term of (a) any evidence of any
Indebtedness (other than Indebtedness under the Revolving Credit Agreement and Indebtedness under
the Holdco Credit Agreement) in a principal amount of $3,000,000 or more or any Contingent
Obligation (other than a Contingent Obligation in respect of Indebtedness under the Revolving
Credit Agreement) in a principal amount of $3,000,000 or more, (b) any loan agreement, mortgage,
indenture or other agreement relating to such Indebtedness or Contingent Obligation(s), or the
occurrence of any other event, condition or circumstance in respect of any such Indebtedness or
Contingent Obligation(s) if in any case under this clause (ii) the effect of such breach or default
or event, condition or circumstance is to cause, or to permit the holder or holders of such
Indebtedness or Contingent Obligation(s) (or a trustee on behalf of such holder or holders) to
cause, that Indebtedness or Contingent Obligation(s) to become or be declared due and payable (or
redeemable) prior to its stated maturity or the stated maturity of any underlying obligation, as
the case may be (upon the giving or receiving of notice, lapse of time, both, or otherwise); or
(iii)(a) breach or default by Holdings,
the Company or any of the Subsidiaries with respect to any term of the Revolving Credit
Agreement if the effect of such breach or default or event, condition or circumstance is to cause
the Indebtedness under the Revolving Credit Agreement to become or be declared due and payable
prior to its stated maturity and (b) breach or default by Holdings with respect to any term of the
Holdings Credit Agreement if the effect of such breach or default or event, condition or
circumstance is to cause the Indebtedness under the Holdings Credit Agreement to become or be
declared due and payable prior to its stated maturity; provided that clauses (ii) and (iii) shall
not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of
the assets securing such Indebtedness.

 

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7.3 Breach of Certain Covenants.

Failure of Holdings, the Company or any of the Subsidiaries to perform or comply with any
term, covenant or condition contained in subsection 2.4, subsection 5.9 or Section 6 of this
Agreement; or

7.4 Breach of Representation or Warranty.

Any representation, warranty, certification or other statement made by Holdings, the Company
or any of the Subsidiaries in this Agreement or any other Loan Document or in any statement or
certificate at any time given by Holdings, the Company or any of the Subsidiaries in writing
pursuant hereto or thereto or in connection herewith or therewith shall be false or misleading in
any material respect on the date as of which it is made; or

7.5 Other Defaults Under Loan Documents.

Holdings, the Company or any of the Subsidiaries shall default in the performance of or
compliance with any term, covenant or condition contained in this Agreement or any of the other
Loan Documents, other than any such term referred to in subsection 7.3, and such default shall not
have been remedied or waived within thirty (30) days after the occurrence of such default; or

7.6 Involuntary Bankruptcy; Appointment of Receiver, etc.

(i) A court having jurisdiction in the premises shall enter a decree or order for relief
in respect of Holdings, the Company or any of the Subsidiaries in an involuntary case under the
Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or
hereafter in effect, which decree or order is not stayed; or any other similar relief shall be
granted under any applicable federal or state law; or (ii) an involuntary case shall be
commenced against Holdings, the Company or any of the Subsidiaries under the Bankruptcy Code or
under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect; or
a decree or order of a court having jurisdiction in the premises for the appointment of a
receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers
over Holdings, the Company or any of the Subsidiaries, or over all or a substantial part of its
property, shall have been entered; or there shall have occurred the involuntary appointment of
an interim receiver, trustee or other custodian of Holdings, the Company or any of the
Subsidiaries for all or a substantial part of its property; or a warrant of attachment,
execution or similar process shall have been issued against any substantial part of the
property of Holdings, the Company or any of the Subsidiaries, and any such event described in
this clause (ii) shall continue for sixty (60) days unless dismissed, bonded or discharged; or

 

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7.7 Voluntary Bankruptcy; Appointment of Receiver, etc.

(i) Holdings, the Company or any of the Subsidiaries shall have an order for relief
entered with respect to it or commence a voluntary case under the Bankruptcy Code or under any
other applicable bankruptcy, insolvency or similar law now or hereafter in effect, or shall
consent to the entry of an order for relief in an involuntary case, or to the conversion of an
involuntary case to a voluntary case, under any such law, or shall consent to the appointment
of or taking possession by a receiver, trustee or other custodian for all or a substantial part
of its property; or Holdings, the Company or any of the Subsidiaries shall make any assignment
for the benefit of creditors; or (ii) Holdings, the Company or any of the Subsidiaries shall be
unable, or shall fail generally, or shall admit in writing its inability, to pay its debts as
such debts become due; or the board of directors of Holdings, the Company or any of the
Subsidiaries (or any committee thereof) shall adopt any resolution or otherwise authorize any
action to approve any of the actions referred to in clause (i) above or this clause (ii); or

7.8 Judgments and Attachments.

Any money judgment, writ or warrant of attachment or similar process involving in the
aggregate at any time an amount in excess of $1,000,000 (in either case not adequately covered by
insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage) shall
be entered or filed against Holdings, the Company or any of the Subsidiaries or any of their
respective assets and shall remain undischarged, unvacated, unbonded or unstayed for a period of
thirty (30) days; or

7.9 Dissolution.

Any order, judgment or decree shall be entered against Holdings, the Company or any of the
Subsidiaries decreeing the dissolution or split up of Holdings, the Company or that Subsidiary and
such order shall remain undischarged or unstayed for a period in excess of sixty (60) days; or

7.10 Employee Benefit Plans.

(i) There shall occur one or more ERISA Events which, individually or in the aggregate,
result in or could reasonably be expected to result in liability of Holdings, the Company, any
of the Subsidiaries or any of their respective ERISA Affiliates in excess of $1,000,000 during
the term hereof; or (ii) there exists any fact or circumstance that reasonably could be
expected to result in the imposition of a Lien or security interest under Section 412(n) of the
Code or under ERISA; or

7.11 Invalidity of the Guarantee Agreement.

At any time after the execution and delivery thereof, the guarantees pursuant to the Guarantee
Agreement of the Obligations of the Company for any reason, other than the satisfaction in full of
all Obligations (or any other termination thereof in accordance with the terms hereof or thereof),
shall cease to be in full force and effect or be declared null and void, or any of the Guarantors
shall deny in writing that it has any further liability thereunder, including with respect to
future advances by the Lenders; or

 

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7.12 Change of Control.

A Change of Control.

THEN (i) upon the occurrence of any Event of Default described in subsection 7.6 or 7.7, each of
(a) the unpaid principal amount of and accrued interest on the Term Loans and (b) all other
Obligations accrued hereunder or under any other Loan Document shall automatically become
immediately due and payable, without presentment, demand, protest or other requirements of any kind, all of which are hereby
expressly waived by the Company, and the Administrative Agent and the Lenders shall have the right
to take any and all actions and exercise any and all remedies available to a secured party under
the Loan Documents or applicable law or in equity and (ii) upon the occurrence and during the
continuation of any other Event of Default, the Administrative Agent may, and upon the written
request of the Requisite Lenders shall, declare all or any portion of the amounts described in
clauses (a) and (b) above to be, and the same shall forthwith become, immediately due and payable,
and the Administrative Agent and the Lenders shall have the right to take any and all actions and
exercise any and all remedies available to a secured party under the Loan Documents or applicable
law or in equity.

Notwithstanding anything contained in the preceding paragraph, if at any time within sixty
(60) days after an acceleration of the Term Loans pursuant to such paragraph the Company shall pay
all arrears of interest and all payments on account of principal which shall have become due
otherwise than as a result of such acceleration (with interest on principal and, to the extent
permitted by law, on overdue interest, at the rates specified in this Agreement) and all Defaults
and Events of Default (other than non-payment of the principal of and accrued interest on the Term
Loans, in each case which is due and payable solely by virtue of acceleration) shall be remedied or
waived pursuant to subsection 9.5, then the Requisite Lenders, by written notice to the Company,
may at their option rescind and annul such acceleration and its consequences; but such action shall
not affect any subsequent Default or Event of Default or impair any right consequent thereon. The
provisions of this paragraph are intended merely to bind the Lenders to a decision which may be
made at the election of the Requisite Lenders and are not intended to benefit the Company and do
not grant the Company the right to require the Lenders to rescind or annul any acceleration
hereunder or preclude the Administrative Agent or the Lenders from exercising any of the rights or
remedies available to them under any of the Loan Documents, even if the conditions set forth in
this paragraph are met.

SECTION 8.

ADMINISTRATIVE AGENT

8.1 Appointment.

A. Appointment Authority.

Each of the Lenders hereby irrevocably appoints CS as the Administrative Agent hereunder and
under the other Loan Documents and authorizes CS, in such capacities, to take such actions on its
behalf and to exercise such powers as are delegated to CS in such capacities by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental thereto. The
Administrative Agent agrees to act upon the express conditions contained in this Agreement and the
other Loan Documents, as applicable. In performing its functions and duties under this Agreement,
the Administrative Agent shall act solely as an agent of the Lenders and does not assume and shall
not be deemed to have assumed any obligation towards or relationship of agency or trust with or for
the Company or any of the Subsidiaries. The provisions of this Section are solely for the benefit
of the Administrative Agent, the Lenders and the Company and the Subsidiaries shall not have rights
as a third party beneficiary of any of such provisions. Notwithstanding anything to the contrary in
this Agreement, in the event that at any time there shall be a Lender or group of affiliated
Lenders which shall constitute the Requisite Lenders, the Administrative Agent shall act only in
accordance with the consent of such Lender or group of affiliated Lenders constituting the
Requisite Lenders in granting any approvals, making any requests on the Company, making any
determinations that items are performed to its satisfaction or exercising any of its discretion
under the Loan Documents (other than making determinations relating to interest rates); provided
that following the Restatement Date such consent of such Lender or group of affiliated Lenders
constituting the Requisite Lenders shall not be required for non-material, routine and administrative
actions that the Administrative Agent is permitted to take under the Loan Documents.

 

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8.2 Rights as a Lender.

Any Person serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not an
Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the
context otherwise requires, include any Person serving as the Administrative Agent hereunder in
their individual capacity. Such Person and its Affiliates may accept deposits from, lend money to,
act as the financial advisor or in any other advisory capacity for and generally engage in any kind
of business with the Company or any of the Subsidiaries or any of their Affiliates as if such
Person were not the Administrative Agent hereunder and without any duty to account therefor to the
Lenders.

8.3 Exculpatory Provisions.

The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, the
Administrative Agent (i) shall not be subject to any fiduciary or other implied duties, regardless
of whether a Default or an Event of Default has occurred and is continuing, (ii) shall not have any
duty to take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents that the
Administrative Agent is required to exercise as directed in writing by the Requisite Lenders (or
such other number or percentage of the relevant Lenders as shall be necessary under the
circumstances as provided in subsection 9.5); provided that no Agent shall be
required to take any action that, in its opinion or the opinion of its counsel, may expose the
Administrative Agent to liability or that is contrary to any Loan Document or applicable law, and
(iii) shall not, except as expressly set forth herein and in the other Loan Documents, have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to
the Company or any of its Affiliates that is communicated to or obtained by the person serving as
an Agent or any of its Affiliates in any capacity. No Agent shall be liable for any action taken or
not taken by it with the consent or at the request of the Requisite Lenders (or such other number
or percentage of the Lenders as shall be necessary under the circumstances as provided in
subsection 9.5) or in the absence of its own gross negligence or willful misconduct. No Agent shall
be deemed to have knowledge of any Default or Event of Default unless and until notice thereof is
given to the Administrative Agent in writing by the Company or a Lender. The Administrative Agent
shall not be responsible for or have any duty to ascertain or inquire into (i) any statement,
warranty or representation made in or in connection with this Agreement or any other Loan Document,
(ii) the contents of any certificate, report or other document delivered hereunder or thereunder or
in connection herewith or therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth herein or therein or the occurrence of any
Default or Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of
this Agreement or any other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Section 3 or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to the Administrative Agent.

The Lead Arranger, in its capacity as such, shall have no duties and responsibilities, and
shall incur no liability whatsoever, under this Agreement or any other Loan Document.

 

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8.4 Reliance by the Administrative Agent.

The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing (including any electronic message, posting or other distribution) believed by it to be genuine
and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative
Agent also may rely upon any statement made to it orally or by telephone and believed by it to have
been made by the proper Person, and shall not incur any liability for relying thereon. In
determining compliance with any condition hereunder to the making of any Term Loan that by its
terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that
such condition is satisfactory to such Lender unless the Administrative Agent shall have received
notice to the contrary from such Lender prior to the making of such Term Loan. The Administrative
Agent may consult with legal counsel (who may be counsel for the Company or its Affiliates),
independent accountants and other experts selected by it, and shall not be liable for any action
taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

8.5 Delegation of Duties.

The Administrative Agent may perform any and all of its duties and exercise its rights and
powers hereunder or under any other Loan Document by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform
any and all of its duties and exercise its rights and powers by or through their respective Related
Parties. The exculpatory provisions of subsection 8.3 shall apply to any such sub-agent and to the
Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit facilities provided for
herein as well as activities as the Administrative Agent.

8.6 Resignation of Administrative Agent.

The Administrative Agent may at any time give notice of its resignation to the Lenders and the
Company. Upon receipt of any such notice of resignation, the Requisite Lenders shall have the
right, in consultation with the Company (provided that at any time during the occurrence and
continuance of an Event of Default no such consultation shall be required) to appoint a successor
Administrative Agent, as applicable, which shall be a bank with an office in New York, or an
Affiliate of any such bank with an office in New York. If no such successor shall have been so
appointed by the Requisite Lenders and shall have accepted such appointment within sixty (60) days
after the retiring Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent, as applicable, may on behalf of the Lenders, appoint a successor
Administrative Agent, as applicable, meeting the qualifications set forth above; provided
that if the Administrative Agent shall notify the Company and the Lenders that no such
successor is willing to accept such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (i) the retiring Administrative Agent, as applicable,
shall be discharged from its duties and obligations hereunder and under the other Loan Documents
and (ii) all payments, communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender directly, until such time as the
Requisite Lenders appoint a successor Administrative Agent, as applicable, as provided for above in
this paragraph. Upon the acceptance of a successor’s appointment as the Administrative Agent
hereunder, such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or retired) Administrative Agent and the retiring
Administrative Agent shall be discharged from all of its duties and obligations hereunder or under
the Loan Documents. The fees payable by the Company to a successor Administrative Agent shall be
the same as those payable to its predecessor unless otherwise agreed between the Company and such
successor. After the retiring Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Section 8 and subsection 9.2 shall continue in effect for the
benefit of such retiring Administrative Agent, its sub-agents and their respective
Related Parties in respect of any actions taken or omitted to be taken by any of them while
the retiring Administrative Agent was acting in such capacity.

 

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8.7 Non-Reliance on Agent and Other Lenders.

Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and based on such
documents and information as it has deemed appropriate, made its own credit analysis and decision
to enter into this Agreement. Each Lender also acknowledges that it shall, independently and
without reliance upon the Administrative Agent or any other Lender or any of their Related Parties
and based on such documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or based upon this
Agreement, any other Loan Document or any related agreement or any document furnished hereunder or
thereunder.

8.8 Withholding.

To the extent required by any applicable law, the Administrative Agent may withhold from any
interest payment to any Lender an amount equivalent to any applicable withholding tax. If the
Internal Revenue Service or any other Governmental Authority asserts a claim that the
Administrative Agent did not properly withhold tax from amounts paid to or for the account of any
Lender because the appropriate form was not delivered or was not properly executed or because such
Lender failed to notify the Administrative Agent of a change in circumstance which rendered the
exemption from, or reduction of, withholding tax ineffective or for any other reason, such Lender
shall indemnify the Administrative Agent fully for all amounts paid, directly or indirectly, by the
Administrative Agent as tax or otherwise, including any penalties or interest and together with all
expenses (including legal expenses, allocated internal costs and out-of-pocket expenses) incurred.

SECTION 9.

MISCELLANEOUS

9.1 Assignments and Participations in Term Loans.

A. Successors and Assigns Generally.

The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that the
Company may not assign or otherwise transfer any of its rights or obligations hereunder without the
prior written consent of each Lender and the Administrative Agent and no Lender may assign or
otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in
accordance with the provisions of subsection 9.1B, (ii) by way of participation in accordance with
the provisions of subsection 9.1 D or (iii) by way of pledge or assignment of a security interest
in accordance with the provisions of subsection 9.1 F (and any other attempted assignment or
transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, Participants to the extent provided in
subsection 9.1 D and, to the extent expressly contemplated hereby, the Related Parties of the
Administrative Agent and the Lenders and any other Indemnitee) any legal or equitable right, remedy
or claim under or by reason of this Agreement.

 

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B. Assignments by Lenders.

Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its
rights and obligations under this Agreement; provided that

(i) except in the case of an assignment of the entire remaining amount of the assigning
Lender’s Term Loans or in the case of an assignment to a Lender or an Affiliate of a Lender or
an Approved Fund with respect to a Lender, the aggregate amount of the Term Loans subject to
each such assignment (determined as of the date of the Assignment Agreement with respect to
such assignment is recorded by the Administrative Agent) shall not be less than $1,000,000 or
an integral multiple of $1,000,000 in excess thereof, unless the Administrative Agent shall
otherwise consent (such consent not to be unreasonably withheld or delayed and such approval to
be deemed to have been given if a response is not received within five (5) Business Days from
the date on which request for approval was received by the applicable Person);

(ii) each partial assignment shall be made as an assignment of a proportionate part of all
the assigning Lender’s rights and obligations under this Agreement with respect to the Term
Loans assigned; and

(iii) the parties to each assignment shall execute and deliver to the Administrative Agent
an Assignment Agreement to be either (a) electronically executed and delivered via an
electronic settlement system then acceptable to the Administrative Agent (which shall initially
be the settlement system of ClearPar) or (b) manually executed and delivered, together with,
except in the case of an assignment to an Affiliate of a Lender or an Approved Fund with
respect to a Lender, a processing and recordation fee of $3,500 in the case of assignments not
made using an electronic settlement system, and the Eligible Assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an Administrative Questionnaire and, if
required, applicable tax forms.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection
9.1C, from and after the effective date specified in each Assignment Agreement, the Eligible
Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment Agreement, have the rights and obligations of a Lender under this Agreement, and
the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment
Agreement, be released from its obligations under this Agreement (and, in the case of an Assignment
Agreement covering all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of
subsections 2.7 and 9.2 with respect to facts and circumstances occurring prior to the effective
date of such assignment. Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in accordance with
subsection 9.1D.

C. The Register.

The Administrative Agent, acting solely for this purpose as an agent of the Company, shall
maintain at one of its offices in New York City a copy of each Assignment Agreement delivered to it
and a register for the recordation of the names and addresses of the Lenders, and principal amounts
of the Term Loans owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”). The entries in the Register shall be conclusive absent manifest error, and the
Company, the Administrative Agent and the Lenders may treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for inspection by the
Company and the Lenders at any reasonable time and from time to time upon reasonable prior notice.

 

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D. Participations.

Any Lender may at any time, without the consent of, or notice to, the Company or the
Administrative Agent, sell participations to any Person (other than a natural person or the Company
or any of the Company’ Affiliates or Subsidiaries) (each, a “Participant”) in all or a
portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion
of its Commitment and/or the Term Loans owing to it); provided that

(i) such Lender’s obligations under this Agreement shall remain unchanged,

(ii) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, and

(iii) the Company, the Administrative Agent and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Agreement.

Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender shall not, without the consent of the
Participant, agree to any amendment, modification or waiver with respect to any action (i)
effecting the extension of the final maturity of the Term Loan allocated to such participation,
(ii) effecting a reduction of the principal amount of or the rate of interest payable on any Term
Loan or any fee allocated to such participation, or (iii) releasing all or substantially all of the
Subsidiary Guarantors from their obligations under the Guarantee Agreement (other than in
connection with Asset Sales permitted hereunder). Subject to subsection 9.1E, the Company agrees
that each Participant shall be entitled to the benefits of subsection 2.7 to the same extent as if
it were a Lender and had acquired its interest by assignment pursuant to subsection 9.1B. To the
extent permitted by law, each Participant also shall be entitled to the benefits of subsection 9.3
as though it were a Lender, provided such Participant agrees to be subject to subsection 9.4 as
though it were a Lender.

E. Limitations Upon Participant Rights.

A Participant shall not be entitled to receive any greater payment under subsection 2.7 than
the applicable Lender would have been entitled to receive with respect to the participation sold to
such Participant, unless the sale of the participation to such Participant is made with the
Company’s prior written consent. A Participant that would be a Foreign Lender if it were a Lender
shall not be entitled to the benefits of subsection 2.7E unless the Company is notified of the
participation sold to such Participant and such Participant agrees, for the benefit of the Company,
to comply with the provisions of subsection 2.7E as though it were a Lender.

F. Certain Pledges.

Any Lender may at any time pledge or assign a security interest in all or any portion of its
rights under this Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank; provided that no such
pledge or assignment shall release such Lender from any of its obligations hereunder or substitute
any such pledgee or assignee for such Lender as a party hereto. Notwithstanding anything to the
contrary contained herein, any Lender that is a Fund may create a security interest in all or any
portion of the Term Loans owing to it and the Term Notes, if any, held by it to the trustee for
holders of obligations owed, or securities issued, by such Fund as security for such obligations or
securities; provided that unless and until such trustee actually becomes a Lender
in compliance with the other provisions of this subsection 9.1, (i) no such pledge shall release
the pledging Lender from any of its obligations under this Agreement and (ii) such trustee shall
not be entitled to exercise any of the rights of a Lender under this Agreement and the Term Notes
even though such trustee may have acquired ownership rights with respect to the pledged interest
through foreclosure or otherwise.

 

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G. SPV Lender.

Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (a “SPV”), identified as such
in writing from time to time by the Granting Lender to the Administrative Agent and the Company,
the option to provide to the Company all or any part of any Term Loan that such Granting Lender
would otherwise be obligated to make the Company pursuant to this Agreement; provided
that (i) nothing herein shall constitute a commitment by any SPV to make any Term Loan and
(ii) if an SPV elects not to exercise such option or otherwise fails to provide all or any part of
such Loan, the Granting Lender shall be obligated to make such Term Loan pursuant to the terms
hereof. The making of a Term Loan by an SPV hereunder shall utilize the Commitment of the Granting
Lender to the same extent, and as if, such Term Loan were made by such Granting Lender. Each party
hereto hereby agrees that no SPV shall be liable for any indemnity or similar payment obligation
under this Agreement (all liability for which shall remain with the Granting Lender). In
furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the
termination of this Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior indebtedness of any SPV, it
shall not institute against, or join any other person in instituting against, such SPV any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of
the United States or any State thereof. In addition, notwithstanding anything to the contrary
contained in this subsection 9.1, any SPV may (i) with notice to, but without the prior written
consent of, the Company and the Administrative Agent and without paying any processing fee
therefore, assign all or a portion of its interests in any Term Loans to the Granting Lender or to
any financial institutions (consented to by the Company and the Administrative Agent) providing
liquidity and/or credit support to or for the account of such SPV to support the funding or
maintenance of Term Loans and (ii) disclose on a confidential basis any non-public information
relating to its Term Loans to any rating agency, commercial paper dealer or provider of any surety,
guarantee or credit or liquidity enhancement to such SPV. This subsection 9.1G may not be amended
without the written consent of the SPV. Notwithstanding anything to the contrary in this Agreement,
no SPV shall be entitled to any greater rights under subsection 2.7E than its Granting Lender would
have been entitled to absent the use of such SPV.

9.2 Expenses; Indemnity; Damage Waiver.

A. Costs and Expenses.

The Company shall, jointly and severally, pay (i) all reasonable out-of-pocket expenses
incurred by the Administrative Agent and its respective Affiliates, including the reasonable fees,
charges and disbursements of counsel for the Administrative Agent in connection with the
syndication of the credit facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or any amendments,
modifications or waivers of the provisions hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated); (ii) all out-of-pocket expenses incurred by
the Administrative Agent or any Lender, including the fees, charges and disbursements of any
counsel for the Administrative Agent or any Lender, in connection with the enforcement or
protection of its rights in connection with this Agreement and the other Loan Documents, including
its rights under this subsection 9.2A, or in connection with the Term Loans made hereunder,
including all such out-of-pocket expenses incurred during any workout, Event of Default,
restructuring or negotiations in respect of such Term Loans; and (iii) all reasonable out-of-pocket
expenses incurred by any Lender or group of affiliated Lenders that shall constitute the
Requisite Lenders, including the reasonable fees, charges and disbursements of counsel to such
Lender or Lenders, in connection with any amendments, modifications or waivers of the provisions
hereof.

 

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B. Indemnification by the Company.

The Company shall, jointly and severally, indemnify the Administrative Agent (and any
sub-Agent thereof), each Lender and each Related Party of any of the foregoing Persons (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any
and all losses, claims, damages, liabilities and related expenses, including the fees, charges and
disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee
arising out of, in connection with, or as a result of (i) the execution or delivery of this
Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby,
the performance by the parties hereto of their respective obligations hereunder or thereunder or
the consummation of the transactions contemplated hereby or thereby, (ii) any Term Loan or the use
of the proceeds therefrom, or (iii) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on contract, tort or any other theory
and regardless of whether any Indemnitee is a party thereto (including any claim under any
Environmental Laws); provided that such indemnity shall not, as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities or related expenses are determined by a
court of competent jurisdiction by final and nonappealable judgment to have resulted from primarily
the gross negligence or willful misconduct of such Indemnitee.

C. Reimbursement by the Lenders.

To the extent that the Company fails to pay any amount required under subsection 9.2A or
9.2B to be paid by it to any Agent (or any sub-Agent thereof) or any Related Party of any of the
foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-Agent)
or such Related Party, as the case may be, such Lender’s Pro Rata Share (determined as of the time
that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-Agent) in its capacity as such, or against any Related Party
of any of the foregoing acting for the Administrative Agent (or any such sub-Agent) in connection
with such capacity. The obligations of the Lenders under this subsection 9.2C are subject to the
provisions of subsection 9.12.

D. Waiver of Consequential Damages, Etc.

To the fullest extent permitted by applicable law, the Company shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby, the transactions contemplated hereby or thereby, any Term Loan or
the use of the proceeds thereof. No Indemnitee referred to in subsection 9.2B above shall be liable
for any damages arising from the use by unintended recipients of any information or other materials
distributed by it through telecommunications, electronic or other information transmission systems
in connection with this Agreement or the other Loan Documents or the transactions contemplated
hereby or thereby.

E. Payments.

All amounts due under this subsection 9.2 shall be payable promptly after demand therefor.

 

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9.3 Right of Set-Off.

Without limitation of any other rights or remedies of the Administrative Agent or the Lenders,
if an Event of Default shall have occurred and be continuing, the Administrative Agent, each Lender
and each of their respective Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by applicable law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final, in whatever currency) at any time held and other
obligations (in whatever currency) at any time owing by the Administrative Agent, Lender or any
such Affiliate to or for the credit or the account of the Company against any and all of the
obligations of the Company now or hereafter existing under this Agreement or any other Loan
Document to the Administrative Agent or Lender, irrespective of whether or not the Administrative
Agent or Lender shall have made any demand under this Agreement or any other Loan Document and
although such obligations of the Company may be contingent or unmatured or are owed to a branch or
office of the Administrative Agent or Lender different from the branch or office holding such
deposit or obligated on such indebtedness. The rights of the Administrative Agent, Lender and their
respective Affiliates under this subsection 9.3 are in addition to other rights and remedies
(including other rights of setoff) which the Administrative Agent, Lender or their respective
Affiliates may have. The Administrative Agent and Lender agrees promptly to notify in writing the
Company and the Administrative Agent promptly after any such setoff and application; provided that
the failure to give such notice shall not affect the validity of such setoff and application.

9.4 Sharing of Payments by Lenders.

If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain
payment in respect of any principal of or interest on any of its Term Loans or other obligations
hereunder resulting in such Lender’s receiving payment of a proportion of the aggregate amount of
its Term Loans and accrued interest thereon or other such obligations greater than its Pro Rata
Share thereof as provided herein, then the Lender receiving such greater proportion shall (a)
notify the Administrative Agent of such fact, and (b) purchase (for cash at face value)
participations in the Term Loans and such other obligations of the other Lenders, or make such
other adjustments as shall be equitable, to the end that the benefit of all such payments shall be
shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued
interest on their respective Term Loans and other amounts owing them; provided that
(i) if any such participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be
construed to apply to (x) any payment made by the Company pursuant to and in accordance with the
express terms of this Agreement or (y) any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Term Loans to any assignee or participant,
other than to the Company or any Subsidiary thereof (as to which the provisions of this paragraph
shall apply). The Company consents to the foregoing and agrees, to the extent it may effectively do
so under applicable law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against the Company rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of the Company in the amount
of such participation.

 

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9.5 Amendments and Waivers.

A. Amendment and Waivers.

No amendment, modification, termination or waiver of any provision of this Agreement or of
the Term Notes, or consent to any departure by the Company or any other Loan Party therefrom, shall
in any event be effective without the written concurrence of the Requisite Lenders;
provided that any such amendment, modification, termination, waiver or consent
which:

(a) reduces or forgives the principal amount of any of the Term Loans;

(b) reduces or increases the percentage specified in the definition of the
“Requisite Lenders” (it being understood that, with the consent of the Requisite
Lenders, additional extensions of credit permitted pursuant to this Agreement may be
included in the definition of the “Requisite Lenders” on substantially the same basis
as the Term Loans are included on the Restatement Date);

(c) changes in any manner any provision of this Agreement which, by its terms,
expressly requires the approval or concurrence of all the Lenders;

(d) postpones the scheduled final maturity date of any of the Term Loans;

(e) postpones the date or reduces the amount of any scheduled payment (but not
prepayment) of principal of any of the Term Loans;

(f) postpones the date on which any interest or any fees are payable;

(g) decreases the interest rate borne by any of the Term Loans (other than any
waiver of any increase in the interest rate applicable to any of the Term Loans
pursuant to subsection 2.2E) or the amount of any fees payable hereunder;

(h) except as expressly required or permitted by the Guarantee Agreement, release
all or substantially all of the Subsidiary Guarantors from their obligations under the
Guarantee Agreement; or

(i) changes in any manner the provisions contained in subsection 7.1 or this
subsection 9.5;

in each case, shall be effective only if evidenced by a writing signed by or on behalf of all the
Lenders to whom Obligations are owed being directly affected by such amendment, modification,
termination, waiver or consent (the consent of the Requisite Lenders not being required for any
such change).

In addition, no amendment, modification, termination or waiver of any provision of Section 8
or of any other provision of this Agreement which, by its terms, expressly requires the approval or
concurrence of the Administrative Agent shall be effective without the written concurrence of the
Administrative Agent.

The Administrative Agent may, but shall have no obligation to, with the concurrence of any
Lender, execute amendments, modifications, waivers or consents on behalf of that Lender. Any waiver
or consent shall be effective only in the specific instance and for the specific purpose for which
it was given. No notice to or demand on the Company in any case shall entitle the Company to any
other or further notice or demand in similar or other circumstances. Any amendment, modification,
termination, waiver or consent effected in accordance with this subsection 9.5 shall be binding
upon each Lender at the time outstanding, each future Lender and, if signed by the Company, on the
Company.

 

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B. Non-Consenting Lenders.

Each Lender grants (x) to the Administrative Agent and any Lender or group of affiliated
Lenders which constitutes Requisite Lenders the right to purchase all (but not less than all) of
such Lender’s Term Loans owing to it and the Term Notes held by it and all of its rights and
obligations hereunder and under the other Loan Documents, and (y) to the Company the right to cause an
assignment of all (but not less than all) of such Lender’s Term Loans owing to it, its
participations in the Term Notes held by it and all of its rights and obligations hereunder and
under the other Loan Documents to Eligible Assignees, which right may be exercised by the
Administrative Agent, any Lender or group of affiliated Lenders which constitutes the Requisite
Lenders or the Company, as the case may be, if such Lender (a “Non-Consenting Lender”)
refuses to execute any amendment, waiver or consent which requires the written consent of Lenders
other than Requisite Lenders and to which Requisite Lenders, the Administrative Agent and the
Company have otherwise agreed; provided that such Non-Consenting Lender shall
receive, in connection with such assignment payment equal to the aggregate amount of outstanding
Term Loans owed to such Lender (together with all accrued and unpaid interest, fees and all other
amounts (other than indemnities) owed to such Lender). Each Lender agrees that if the
Administrative Agent, any Lender or group of affiliated Lenders which constitutes Requisite Lenders
or the Company, as the case may be, exercises their option under this paragraph, it shall promptly
execute and deliver all agreements and documentation necessary to effectuate such assignment as set
forth in subsection 9.1. The Company shall be entitled (but not obligated) to execute and deliver
such agreements and documentation on behalf of such Non-Consenting Lender and any such agreements
and/or documentation so executed by the Company shall be effective for all purposes of documenting
an assignment pursuant to subsection 9.1.

9.6 Independence of Covenants.

All covenants hereunder shall be given independent effect so that if a particular action or
condition is not permitted by any of such covenants, the fact that it would be permitted by an
exception to, or would otherwise be within the limitations of, another such covenant shall not
avoid the occurrence of an Default or Event of Default if such action is taken or condition exists.

9.7 Notices.

A. Notices Generally.

Except in the case of notices and other communications expressly permitted to be given by
telephone (and except as provided in subsection 9.7B below), all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by facsimile as follows: (i) if to the
Company, to Real Mex Restaurants, Inc., 5660 Katella Avenue, Suite 100, Cypress, California 90630)
Attention: Steven L. Tanner, Chief Financial Officer (Facsimile No. 562-346-1325; Telephone No.
562-346-1200); (ii) if to the Administrative Agent, to CS at Eleven Madison Avenue, New York, New
York 10010, Attention of Agency Group (Facsimile No. 212-325-8304; Telephone No. 212-325-9936); and
(iii) if to a Lender, to it at its address (or facsimile number) set forth in its Administrative
Questionnaire. Notices sent by hand or overnight courier service, or mailed by certified or
registered mail, shall be deemed to have been given when received; notices sent by facsimile shall
be deemed to have been given when sent (except that, if not given during normal business hours for
the recipient, shall be deemed to have been given at the opening of business on the next business
day for the recipient). Notices delivered through electronic communications to the extent provided
in subsection 9.7B below shall be effective as provided in subsection 9.7B.

 

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B. Electronic Communications.

Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites) pursuant to
procedures approved by the Administrative Agent; provided that the foregoing shall
not apply to notices to any Lender pursuant to subsection 2.1 if such Lender has notified the Administrative Agent that it
is incapable of receiving notices under such subsection by electronic communication. The
Administrative Agent or the Company may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to procedures approved by it;
provided that approval of such procedures may be limited to particular notices or communications.
Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to
an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgment from the
intended recipient (such as by the “return receipt requested” function, as available, return e-mail
or other written acknowledgment); provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

C. Change of Address, Etc.

Any party hereto may change its address or facsimile number for notices and other
communications hereunder by notice to the other parties hereto.

9.8 Survival of Representations, Warranties and Agreements.

A. All representations, warranties and agreements made herein shall survive the execution and
delivery of this Agreement and the making of the Term Loans hereunder.

B. Notwithstanding anything in this Agreement or implied by law to the contrary, the
agreements of the Company set forth in subsections 2.7, 9.2 and 9.3 and the agreements of the
Lenders set forth in subsections 8.4, 9.3, 9.4 and 9.18 shall survive the payment of the Term Loans
and the termination of this Agreement.

9.9 Failure or Indulgence Not Waiver; Remedies Cumulative.

No failure or delay on the part of any Agent or any Lender in the exercise of any power, right
or privilege hereunder or under any other Loan Document shall impair such power, right or privilege
or be construed to be a waiver of any default or acquiescence therein, nor shall any single or
partial exercise of any such power, right or privilege preclude other or further exercise thereof
or of any other power, right or privilege. All rights and remedies existing under this Agreement
and the other Loan Documents are cumulative to, and not exclusive of, any rights or remedies
otherwise available.

9.10 Marshalling; Payments Set Aside.

Neither any Agent nor any Lender shall be under any obligation to marshal any assets in favor
of the Company, any other Loan Party or any other party or against or in payment of any or all of
the Obligations. To the extent that the Company or any other Loan Party makes a payment or payments
to the Administrative Agent or the Lenders (or to the Administrative Agent for the benefit of the
Lenders), or any Agent or the Lenders enforce any security interests or exercise their rights of
setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or
required to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other
state or federal law, common law or any equitable cause, then, to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies
therefor or related thereto, shall be revived and continued
in full force and effect as if such payment or payments had not been made or such enforcement
or setoff had not occurred.

 

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9.11 Severability.

In case any provision in or obligation under this Agreement or the Term Notes shall be
invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

9.12 Obligations Several; Independent Nature of the Lenders’ Rights.

The obligations of the Lenders hereunder are several and no Lender shall be responsible for
the obligations or Commitments of any other Lender hereunder. Nothing contained herein or in any
other Loan Document, and no action taken by the Lenders pursuant hereto or thereto, shall be deemed
to constitute the Lenders as a partnership, an association, a joint venture or any other kind of
entity. The amounts payable at any time hereunder to each Lender shall be a separate and
independent debt, and each Lender shall be entitled to protect and enforce its rights arising out
of this Agreement and it shall not be necessary for any other Lender to be joined as an additional
party in any proceeding for such purpose.

9.13 Maximum Amount.

A. It is the intention of the Company and the Lenders to conform strictly to the usury and
similar laws relating to interest from time to time in force, and all agreements between the Loan
Parties and the Subsidiaries and the Lenders, whether now existing or hereafter arising and whether
oral or written, are hereby expressly limited so that in no contingency or event whatsoever,
whether by acceleration of maturity hereof or otherwise, shall the amount paid or agreed to be paid
in the aggregate to the Lenders as interest (whether or not designated as interest, and including
any amount otherwise designated but deemed to constitute interest by a court of competent
jurisdiction) hereunder or under the other Loan Documents or in any other agreement given to secure
the Indebtedness or obligations of the Company to the Lenders, or in any other document evidencing,
securing or pertaining to the Indebtedness evidenced hereby, exceed the maximum amount permissible
under applicable usury or such other laws (the “Maximum Amount”). If under any
circumstances whatsoever fulfillment of any provision hereof, or any of the other Loan Documents,
at the time performance of such provision shall be due, shall involve exceeding the Maximum Amount,
then, ipso facto, the obligation to be fulfilled shall be reduced to the Maximum Amount. For the
purposes of calculating the actual amount of interest paid and/or payable hereunder in respect of
laws pertaining to usury or such other laws, all sums paid or agreed to be paid to the holder
hereof for the use, forbearance or detention of the Indebtedness of the Company evidenced hereby,
outstanding from time to time shall, to the extent permitted by Applicable Law, be amortized,
pro-rated, allocated and spread from the date of disbursement of the proceeds of the Term Notes
until payment in full of all of such Indebtedness, so that the actual rate of interest on account
of such Indebtedness is uniform through the term hereof. The terms and provisions of this
subsection 9.13 shall control and supersede every other provision of all agreements between the
Company or any endorser of the Term Notes and the Lenders.

B. If under any circumstances any Lender shall ever receive an amount which would exceed the
Maximum Amount, such amount shall be deemed a payment in reduction of the principal amount of the
Term Loans and shall be treated as a voluntary prepayment under subsection 2.4B(i) and shall be so
applied in accordance with subsection 2.4 or if such excessive interest exceeds the unpaid balance
of the Term Loans and any other Indebtedness of the Company in favor of such Lender, the excess
shall be deemed to have been a payment made by mistake and shall be promptly refunded to the
Company.

 

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9.14 Headings.

Section and subsection headings in this Agreement are included herein for convenience of
reference only and shall not constitute a part of this Agreement for any other purpose or be given
any substantive effect.

9.15 Governing Law.

THIS AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

9.16 Consent to Jurisdiction and Service of Process.

A. SUBMISSION TO JURISDICTION.

THE COMPANY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY AND OF
THE UNITED STATES DISTRICT COURT SITTING IN NEW YORK CITY, AND ANY APPELLATE COURT FROM ANY
THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING
MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN
ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY
OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING
ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE COMPANY
OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

B. WAIVER OF VENUE.

THE COMPANY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY
COURT REFERRED TO IN SUBSECTION 9.16A. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE
OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

C. Service of Process.

Each party hereto irrevocably consents to service of process in the manner provided for
notices in subsection 9.7. Nothing in this Agreement shall affect the right of any party hereto to
serve process in any other manner permitted by applicable law.

 

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9.17 Waiver of Jury Trial.

EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SUBSECTION.

9.18 Confidentiality.

Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to its Affiliates and
to its and its Affiliates’ respective partners, directors, officers, employees, advisors and
representatives (it being understood that the Persons to whom such disclosure is made shall be
informed of the confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority (including any
self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the
extent required by applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under
any other Loan Document or any action or proceeding relating to this Agreement or any other Loan
Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this subsection 9.18, to (i) any assignee
or pledgee of or Participant in, or any prospective assignee or pledgee of or Participant in, any
of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty
(or its advisors) to any swap or derivative transaction relating to the Company and its
obligations, (g) with the written consent of the Company (such consent not to be unreasonably
withheld or delayed) or (h) to the extent such Information becomes publicly available other than as
a result of a breach of this subsection 9.18.

For purposes of this subsection 9.18 “Information” means all information received from
Holdings, the Company or any of the Subsidiaries relating to Holdings, the Company or any of the
Subsidiaries or any of their respective businesses, other than any such information that is
available to any Agent or any Lender on a nonconfidential basis prior to disclosure by the Company;
provided that, in the case of information received from the Company after the
Closing Date, such information is clearly identified at the time of delivery as confidential. Any
Person required to maintain the confidentiality of Information as provided in this subsection 9.18
shall be considered to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such Person would accord
to its own confidential information.

 

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Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

9.19 Counterparts; Integration; Effectiveness; Electronic Execution.

A. Counterparts; Integration; Effectiveness.

This Agreement may be executed in counterparts (and by different parties hereto in different
counterparts), each of which shall constitute an original, but all of which when taken together
shall constitute a single contract. This Agreement and any separate letter agreements with respect
to fees payable to the Administrative Agent constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. This Agreement shall become
effective upon the satisfaction of the conditions precedent set forth in Section 3 and when it
shall have been executed by the Administrative Agent and when the Administrative Agent shall have
received counterparts hereof which, when taken together, bear the signatures of each of the other
parties hereto required pursuant to Section 3, and thereafter shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page of this Agreement or any document or instrument delivered
in connection herewith by facsimile or electronic mail shall be effective as delivery of a manually
executed counterpart of this Agreement or such other document or instrument, as applicable.

B. Electronic Execution of Assignments.

The words “execution,” “signed,” “signature,” and words of like import in any Assignment
Agreement shall be deemed to include electronic signatures or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity or enforceability as a manually
executed signature or the use of a paper-based record keeping system, as the case may be, to the
extent and as provided for in any applicable law, including the Federal Electronic Signatures in
Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any
other similar state laws based on the Uniform Electronic Transactions Act.

9.20 Restatement.

(a) On the Restatement Date, the Amended and Restated Credit Agreement shall be
amended and restated in its entirety by this Agreement and the Amended and Restated
Credit Agreement shall thereafter be of no further force and effect except to evidence
(i) the incurrence by the Company of the “Obligations” under and as defined in the
Amended and Restated Credit Agreement (whether or not such “Obligations” are contingent
as of the Restatement Date) and (ii) obligations of the Company to the extent such
obligations would have survived the termination of the Original Credit Agreement in
accordance with Section 9.8. This Agreement is not in any way intended to constitute a
novation of the obligations and liabilities existing under the Amended and Restated
Credit Agreement or evidence payment of all or any portion of such obligations and
liabilities.

(b) The terms and conditions of this Agreement and the Administrative Agent’s and
the Lenders’ rights and remedies under this Agreement and the other Loan Documents
shall apply to all of the Obligations incurred under the Amended and Restated Credit
Agreement.

 

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Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

(c) On and after the Restatement Date, (i) all references to the Amended and
Restated Credit Agreement in the Loan Documents (other than this Agreement) shall be
deemed to refer to the Amended and Restated Credit Agreement, as amended and restated
hereby, (ii) all references to any section (or subsection) of the Amended and Restated
Credit Agreement in any Loan Document (but not herein) shall be amended to become,
mutatis mutandis, references to the corresponding provisions of this Agreement and
(iii) except as the context otherwise provides, on or after the Restatement Date, all
references to this Agreement herein (including for purposes of indemnification and
reimbursement of fees) shall be deemed to be reference to the Amended and Restated Credit Agreement as
amended and restated hereby.

(d) This amendment and restatement is limited as written and is not a consent to
any other amendment, restatement or waiver or other modification, whether or not
similar and, except as expressly provided herein or in any other Loan Document, all
terms and conditions of the Loans Documents remain in full force and effect unless
otherwise specifically amended hereby or by any other Loan Document.

9.21 Directions to Administrative Agent.

The Lenders party hereto hereby direct the Administrative Agent to consent to this Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

78

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their respective officers thereunto duly authorized as of the date first written
above.

	 	 	 	 	 
	HOLDINGS:                	RM RESTAURANT HOLDING CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Steve Tanner 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	THE COMPANY:             	REAL MEX RESTAURANTS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Steve Tanner 	 
	 	 	Title:  	Chief Financial Officer 	 

Real Mex Credit Agreement signature page

 

 

 

Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

	 	 	 	 	 
	ADMINISTRATIVE AGENT 
AND LENDERS: 	
CREDIT SUISSE, CAYMAN ISLANDS BRANCH,
 acting as Administrative Agent, Sole Bookrunner and Sole Lead Arranger

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Real Mex Credit Agreement signature page

 

 

 

Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

	 	 	 	 	 
	 	SIGNATURE PAGE TO THE SECOND AMENDED AND RESTATED CREDIT AMENDMENT DATED AS OF JULY
_____, 2009 AMONG RM RESTAURANT HOLDING CORP., REAL MEX RESTAURANTS, INC.,
THE LENDERS PARTY HERETO AND CREDIT SUISSE, CAYMAN ISLANDS BRANCH, AS ADMINISTRATIVE AGENT

COCINA FUNDING CORP., L.L.C.

 	 
	 	By: 	Farallon Capital Management, L.L.C., its Manager 	 
	 
	 	By:  	 	 
	 	 	Managing Member 	 

Real Mex Credit Agreement signature page

 

 

 

Real Mex Restaurants, Inc.

Second Amended and Restated Credit Agreement

	 	 	 	 	 
	 	SIGNATURE PAGE TO THE SECOND AMENDED AND RESTATED CREDIT AMENDMENT DATED AS OF JULY
_____, 2009 AMONG RM RESTAURANT HOLDING CORP., REAL MEX RESTAURANTS, INC.,
THE LENDERS PARTY HERETO AND CREDIT SUISSE, CAYMAN ISLANDS BRANCH, AS
ADMINISTRATIVE AGENT

KKR FINANCIAL CLO 2005-2, LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Real Mex Credit Agreement signature page

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