Document:

Unassociated Document

    
      

        EXHIBIT
          10.77

      BUSINESS
        LOAN AGREEMENT

      

      
        	
                Principal

              	
                Loan
                  Date

              	
                Expiration

              	
                Loan
                  No

              	
                Call
                  / Coll

              	
                Account

              	
                Officer

              	
                Initials

              
	
                $5,000,000.00

              	
                05-13-2008

              	
                05-13-2010

              	
                
                  400461335

                

              	 	
                Port
                  #583277

              	
                247

              	 

        
          

        

      

      References
        in the boxes above are for Lender's use only and do not limit the applicability
        of this document to any particular loan or item.

      Any
        item
        above containing "***" has been omitted due to text length
        limitations.

      
        
          

        

      

      
        	
                Borrower:

              	
                Rubio's
                  Restaurants, Inc., a Delaware corporation

                1902
                  Wright Place, Suite 300

                Carlsbad,
                  CA 92008

              	
                Lender:

              	
                Pacific
                  Western Bank

                Pasadena
                  Office

                150
                  South Los Robles

                Suite
                  100

                Pasadena,
                  CA 91101

              

      

       

      THIS
        BUSINESS LOAN AGREEMENT dated May 13, 2008, is made and executed between
        Rubio's
        Restaurants, Inc., a Delaware corporation ("Borrower") and Pacific Western
        Bank
        ("Lender") on the following terms and conditions. Borrower has received prior
        commercial loans from Lender or has applied to Lender for a commercial loan
        or
        loans or other financial accommodations, including those which may be described
        on any exhibit or schedule attached to this Agreement. Borrower understands
        and
        agrees that: (A) in granting, renewing, or extending any Loan, Lender is
        relying
        upon Borrower's representations, warranties, and agreements as set forth
        in this
        Agreement; (B) the granting, renewing, or extending of any Loan by Lender
        at all
        times shall be subject to Lender's sole judgment and discretion; and (C)
        all
        such Loans shall be and remain subject to the terms and conditions of this
        Agreement.

       

      TERM.
        This
        Agreement shall be effective as of May 13, 2008, and shall continue in full
        force and effect until such time as all of Borrower's Loans in favor of Lender
        have been paid in full, including principal, interest, costs, expenses,
        attorneys' fees, and other fees and charges, or until such time as the parties
        may agree in writing to terminate this Agreement.

       

      ADVANCE
        AUTHORITY.
        The
        following person or persons are authorized to request advances and authorize
        payments under the line of credit until Lender receives from Borrower, at
        Lender's address shown above, written notice of revocation of such
        authority:
        Daniel E. Pittard or Frank Henigman.

       

      CONDITIONS
        PRECEDENT TO EACH ADVANCE.
        Lender's
        obligation to make the initial Advance and each subsequent Advance under
        this
        Agreement shall be subject to the fulfillment to Lender's satisfaction of
        all of
        the conditions set forth in this Agreement and in the Related Documents.
        

       

      Loan
        Documents.
        Borrower
        shall provide to Lender the following documents for the Loan: (1) the Note;
        (2)
        Security Agreements granting to Lender security interests in the Collateral;
        (3)
        financing statements and all other documents perfecting Lender's Security
        Interests; (4) evidence of insurance as required below; (5) guaranties; (6)
        together with all such Related Documents as Lender may require for the Loan;
        all
        in form and substance satisfactory to Lender and Lender's counsel.

       

      Borrower's
        Authorization.
        Borrower
        shall have provided in form and substance satisfactory to Lender properly
        certified resolutions, duly authorizing the execution and delivery of this
        Agreement, the Note and the Related Documents. In addition, Borrower shall
        have
        provided such other resolutions, authorizations, documents and instruments
        as
        Lender or its counsel, may require.

       

      Payment
        of Fees and Expenses.
        Borrower
        shall have paid to Lender all fees, charges, and other expenses which are
        then
        due and payable as specified in this Agreement or any Related
        Document.

       

      Representations
        and Warranties.
        The
        representations and warranties set forth in this Agreement, in the Related
        Documents, and in any document or certificate delivered to Lender under this
        Agreement are true and correct.

       

      No
        Event of Default.
        There
        shall not exist at the time of any Advance a condition which would constitute
        an
        Event of Default under this Agreement or under any Related
        Document.

       

      REPRESENTATIONS
        AND WARRANTIES.
        Borrower
        represents and warrants to Lender, as of the date of this Agreement, as of
        the
        date of each disbursement of loan proceeds, as of the date of any renewal,
        extension or modification of any Loan, and at all times any Indebtedness
        exists:

       

      Organization.
        Borrower
        is a corporation for profit which is, and at all times shall be, duly organized,
        validly existing, and in good standing under and by virtue of the laws of
        the
        State of Delaware. Borrower is duly authorized to transact business in all
        other
        states in which Borrower is doing business, having obtained all necessary
        filings, governmental licenses and approvals for each state in which Borrower
        is
        doing business, except where failure would not have a material adverse affect
        on
        its business or financial condition. Specifically, Borrower is, and at all
        times
        shall be, duly qualified as a foreign corporation in all states in which
        the
        failure to so qualify would have a material adverse effect on its business
        or
        financial condition. Borrower has the full power and authority to own its
        properties and to transact the business in which it is presently engaged
        or
        presently proposes to engage. Borrower maintains an office at 1902 Wright
        Place,
        Suite 300, Carlsbad, CA 92008. Unless Borrower has designated otherwise in
        writing, the principal office is the office at which Borrower keeps its books
        and records including its records concerning the Collateral. Borrower will
        notify Lender prior to any change in the location of Borrower's state of
        organization or any change in Borrower's name. Borrower shall do all things
        necessary to preserve and to keep in full force and effect its existence,
        rights
        and privileges, and shall comply with all regulations, rules, ordinances,
        statutes, orders and decrees of any governmental or quasi-governmental authority
        or court applicable to Borrower and Borrower's business activities, except
        where
        failure would not have a material adverse affect on its business or financial
        condition.

       

      Assumed
        Business Names.
        Borrower
        has filed or recorded all documents or filings required by law relating to
        all
        assumed business names used by Borrower. Excluding the name of Borrower,
        the
        following is a complete list of all assumed business names under which Borrower
        does business:
        None.

       

      Authorization.
        Borrower's execution, delivery, and performance of this Agreement and all
        the
        Related Documents have been duly authorized by all necessary action by Borrower
        and do not conflict with, result in a violation of, or constitute a default
        under (1) any provision of (a) Borrower's articles of incorporation or
        organization, or bylaws, or (b) any agreement or other instrument binding
        upon
        Borrower or (2) any law, governmental regulation, court decree, or order
        applicable to Borrower or to Borrower's properties, except with respect to
        (1)(b) and (2), where failure would not have a material adverse affect on
        its
        business or financial condition.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Financial
        Information.
        Each of
        Borrower's financial statements supplied to Lender truly and completely
        disclosed Borrower's financial condition as of the date of the statement
        in all
        material respects and in conformance with GAAP, and there has been no material
        adverse change in Borrower's financial condition subsequent to the date of
        the
        most recent financial statement supplied to Lender. Borrower has no material
        contingent obligations except as disclosed to Lender in such financial
        statements or as otherwise disclosed to Lender in Schedule
        1
        to the
        Disclosure Schedule.

       

      Legal
        Effect.
        This
        Agreement constitutes, and any instrument or agreement Borrower is required
        to
        give under this Agreement when delivered will constitute legal, valid, and
        binding obligations of Borrower enforceable against Borrower in accordance
        with
        their respective terms.

       

      Properties.
        Except
        as contemplated by this Agreement (including Permitted Liens) or the Guidance
        Line or as previously disclosed in Borrower's financial statements or in
        writing
        to Lender and as accepted by Lender, and except for property tax liens for
        taxes
        not presently due and payable, Borrower owns and has good title to all of
        Borrower's properties free and clear of all Security Interests, and has not
        executed any security documents or financing statements relating to such
        properties. All of Borrower's properties are titled in Borrower's legal name,
        and Borrower has not used or filed a financing statement under any other
        name
        for at least the last five (5) years.

       

      Hazardous
        Substances.
        Except
        as disclosed to and acknowledged by Lender in writing, Borrower represents
        and
        warrants that: (1) During the period of Borrower's ownership of the Collateral,
        there has been no use, generation, manufacture, storage, treatment, disposal,
        release or threatened release of any Hazardous Substance by any person on,
        under, about or from any of the Collateral. (2) Borrower has no knowledge
        of, or
        reason to believe that there has been (a) any breach or violation of any
        Environmental Laws; (b) any use, generation, manufacture, storage, treatment,
        disposal, release or threatened release of any Hazardous Substance on, under,
        about or from the Collateral by any prior owners or occupants of any of the
        Collateral; or (c) any actual or threatened litigation or claims of any kind
        by
        any person relating to such matters. (3) Neither Borrower nor any tenant,
        contractor, agent or other authorized user of any of the Collateral shall
        use,
        generate, manufacture, store, treat, dispose of or release any Hazardous
        Substance on, under, about or from any of the Collateral; and any such activity
        shall be conducted in compliance with all applicable federal, state, and
        local
        laws, regulations, and ordinances, including without limitation all
        Environmental Laws. Borrower authorizes Lender and its agents to enter upon
        Borrower’s premises to make such inspections and tests as Lender may deem
        appropriate to determine compliance of the Collateral with this section of
        the
        Agreement. Any inspections or tests made by Lender shall be at Borrower's
        expense (not to exceed $750 per day), upon prior written notice and not more
        frequently than annually, and for Lender's purposes only and shall not be
        construed to create any responsibility or liability on the part of Lender
        to
        Borrower or to any other person. The representations and warranties contained
        herein are based on Borrower's due diligence in investigating the Collateral
        for
        hazardous waste and Hazardous Substances. Borrower hereby (1) releases and
        waives any future claims against Lender for indemnity or contribution in
        the
        event Borrower becomes liable for cleanup or other costs under any such laws,
        and (2) agrees to indemnify, defend, and hold harmless Lender against any
        and
        all claims, losses, liabilities, damages, penalties, and expenses which Lender
        may directly or indirectly sustain or suffer resulting from a breach of this
        section of the Agreement or as a consequence of any use, generation,
        manufacture, storage, disposal, release or threatened release of a hazardous
        waste or substance on the Collateral, except in the event of Lender’s gross
        negligence or willful misconduct. The provisions of this section of the
        Agreement, including the obligation to indemnify and defend, shall survive
        the
        payment of the Indebtedness and the termination, expiration or satisfaction
        of
        this Agreement and shall not be affected by Lender's acquisition of any interest
        in any of the Collateral, whether by foreclosure or otherwise.

       

      Litigation
        and Claims.
        Except
        as set forth on Schedule
        1
        to the
        Disclosure Schedule, no litigation, claim, investigation, administrative
        proceeding or similar action (including those for unpaid taxes) against Borrower
        is pending or threatened, and no other event has occurred which may materially
        adversely affect Borrower's financial condition or properties. 

       

      Taxes.
        To the
        best of Borrower's knowledge, all of Borrower's tax returns and reports that
        are
        or were required to be filed, have been filed, and all taxes, assessments
        and
        other governmental charges have been paid in full, except as set forth on
        Schedule
        2
        to the
        Disclosure Schedule, that are presently being or to be contested by Borrower
        in
        good faith in the ordinary course of business and for which adequate reserves
        have been provided. 

       

      Lien
        Priority.
        Except
        as set forth in Schedule
        3
        to the
        Disclosure Schedule and other than Permitted Liens, Borrower has not entered
        into or granted any Security Agreements, or permitted the filing or attachment
        of any Security Interests on or affecting any of the Collateral directly
        or
        indirectly securing repayment of Borrower's Loan and Note, that would be
        prior
        or that may in any way be superior to Lender's Security Interests and rights
        in
        and to such Collateral.

       

      Binding
        Effect.
        This
        Agreement, the Note, all Security Agreements (if any), and all Related Documents
        are binding upon the signers thereof, as well as upon their successors,
        representatives and assigns, and are legally enforceable in accordance with
        their respective terms.

       

      AFFIRMATIVE
        COVENANTS.
        Borrower
        covenants and agrees with Lender that, so long as this Agreement remains
        in
        effect, Borrower will:

       

      Notices
        of Claims and Litigation.
        Promptly
        inform Lender in writing of (1) all material adverse changes in Borrower's
        financial condition, and (2) all existing and all threatened litigation,
        claims,
        investigations, administrative proceedings or similar actions affecting Borrower
        or any Guarantor which could materially affect the financial condition of
        Borrower or the financial condition of any Guarantor.

       

      Financial
        Records.
        Maintain
        its books and records in accordance with GAAP, applied on a consistent basis,
        and permit Lender to examine and audit Borrower's books and records at all
        reasonable times.

       

      Financial
        Statements.
        Furnish
        Lender with the following:

       

      Additional
        Requirements. 

       

      BORROWER'S
        FINANCIAL REQUIREMENTS:

       

      (i)
        Financial Statements:

       

      ANNUAL
        STATEMENTS.
        Borrower
        shall provide to Lender, as soon as available, but in no event later than
        one
        hundred five (105) days after the end of each fiscal year end, a 10K report
        and
        consolidated balance sheet and income statement for the period ended in form
        satisfactory to Lender, audited, unqualified opinion, by a CPA acceptable
        to
        Lender.

       

      INTERIM
        STATEMENTS.
        Borrower
        shall provide to Lender, as soon as available, but in no event later than
        sixty
        (60) days after the end of each fiscal quarter (including fiscal year end),
        a
        10Q and supporting schedules for the period ended, each in form satisfactory
        to
        Lender. Statements may be due more often if requested by Lender.

      
         

        
          
            
              Rubio’s
                Restaurants, Inc.-Line #400461335

              Business
                Loan Agreement (04-2008)

            

          

          
            2

            
              

            

          

          
            
            

          

        

      

      LEASE
        MANAGEMENT REPORTS.
        Borrower
        shall provide to Lender, as soon as available, but in no event later than
        sixty
        (60) days after the end of each fiscal quarter (including fiscal year end),
        a
        lease management report and same store sales analysis for the period ended,
        each
        in form satisfactory to Lender. Statements may be due more often if requested
        by
        Lender.

       

      ANNUAL
        BUDGET.
        Borrower
        shall provide to Lender, as soon as available, but in no event later than
        one
        hundred five (105) days after the end of each fiscal year end, an annual
        budget
        and balance sheet for the period ended in form satisfactory to
        Lender.

       

      (ii)
        Financial Covenants/Ratios: (the first reporting period will be Borrower’s
        second fiscal quarter ending June 29, 2008)

       

      TOTAL
        DEBT/EBITDA RATIO.
        Borrower
        to maintain a maximum ratio of Total Debt/EBITDA of *** to ***. "Total Debt"
        means Borrower's outstanding senior debt plus Standby Letters of Credit issued
        by Lender. "EBITDA" means net earnings before interest expense, taxes,
        depreciation, amortization, and other adjustments reasonably acceptable to
        Lender in its sole discretion ( *** ), calculated on a rolling *** fiscal
        quarter basis. This ratio must be maintained at all times and may be evaluated
        quarterly.

       

      PROFITABILITY.
        Borrower
        must *** for its ***
        ending
        *** (one time covenant) and to be *** at the *** and *** reporting periods
        (starting with the *** reporting). Borrower will *** in *** consecutive fiscal
        quarters (first compliance review commencing with the **** reporting). For
        purposes of determining whether Borrower satisfies the profitability tests
        set
        forth in this paragraph, Lender agrees that Borrower may exclude ***
        .

       

      COMMERCIAL
        LOAN DEBT SERVICE COVERAGE RATIO.
        Borrower
        to maintain a minimum Debt Service Coverage Ratio of *** to *** , which is
        calculated based on a rolling *** fiscal quarter basis, as 1) the sum of
        net
        profit plus depreciation and amortization and interest and other adjustments
        reasonably acceptable to Lender in its sole discretion ( *** ), less the
        sum of
        dividends and distributions divided by 2) Current Portion of Long Term Debt
        plus
        Interest. This ratio must be maintained at all times and may be evaluated
        quarterly. For purposes of determining whether Borrower net profit for the
        financial tests set forth in this paragraph, Lender agrees that Borrower
        may
        exclude *** .

       

      All
        financial reports required to be provided under this Agreement shall be prepared
        in accordance with GAAP, applied on a consistent basis, and certified by
        Borrower as being true and correct.

       

      Additional
        Information.
        Furnish
        such additional information and statements, as Lender may request from time
        to
        time.

       

      Insurance.
        Maintain
        fire and other risk insurance, public liability insurance, and such other
        insurance as Lender may require with respect to Borrower's properties and
        operations, in form, amounts, coverages and with insurance companies acceptable
        to Lender in its commercially reasonable discretion. Borrower, upon request
        of
        Lender, will deliver to Lender from time to time the policies or certificates
        of
        insurance in form reasonably satisfactory to Lender, including stipulations
        that
        coverages will not be cancelled or diminished without at least thirty (30)
        days
        prior written notice to Lender. Each insurance policy also shall include
        an
        endorsement providing that coverage in favor of Lender will not be impaired
        in
        any way by any act, omission or default of Borrower or any other person.
        In
        connection with all policies covering assets in which Lender holds or is
        offered
        a security interest for the Loans, Borrower will provide Lender with such
        lender's loss payable or other endorsements as Lender may require in its
        commercially reasonable discretion.

       

      Insurance
        Reports.
        Furnish
        to Lender, upon request of Lender, reports on each existing insurance policy
        showing such information as Lender may reasonably request, including without
        limitation the following: (1) the name of the insurer; (2) the risks insured;
        (3) the amount of the policy; (4) the properties insured; (5) the then current
        property values on the basis of which insurance has been obtained, and the
        manner of determining those values; and (6) the expiration date of the policy.
        In addition, upon request of Lender (however not more often than annually),
        Borrower will have an independent appraiser satisfactory to Lender determine,
        as
        applicable, the actual cash value or replacement cost of any Collateral.
        The
        cost of such appraisal shall be paid by Borrower. Lender acknowledges and
        agrees
        that Borrower does not currently insure the full cash value or replacement
        cost
        of the Collateral.

       

      Guaranties.
        Prior to
        disbursement of any Loan proceeds, furnish executed guaranties of the Loans
        in
        favor of Lender, executed by the guarantors named below, on Lender's forms,
        and
        in the amounts and under the conditions set forth in those
        guaranties.

      

      
        	
                Names
                  of Guarantors

              	
                Amounts

              
	 	 
	
                Rubio's
                  Restaurants of Nevada, Inc., a Nevada corporation

              	
                Unlimited

              
	 	 
	
                Rubio's
                  Promotions, Inc., an Arizona corporation

              	
                Unlimited

              

      

       

      Other
        Agreements.
        Comply
        with all terms and conditions of all other agreements, whether now or hereafter
        existing, between Borrower and any other party and notify Lender immediately
        in
        writing of any default in connection with any other such agreements that
        would
        have a material adverse affect on Borrower’s financial condition.

       

      Loan
        Proceeds.
        Use all
        Loan proceeds solely for Borrower's business operations and Permitted
        Acquisitions, unless specifically consented to the contrary by Lender in
        writing.

       

      Taxes,
        Charges and Liens.
        Pay and
        discharge when due all of its indebtedness and obligations, including without
        limitation all assessments, taxes, governmental charges, levies and liens,
        of
        every kind and nature, imposed upon Borrower or its properties, income, or
        profits, prior to the date on which penalties would attach, and all lawful
        claims that, if unpaid, might become a lien or charge upon any of Borrower's
        properties, income, or profits. Provided however, Borrower will not be required
        to pay and discharge any such assessment, tax, charge, levy, lien or claim
        so
        long as (1) the legality of the same shall be contested in good faith by
        appropriate proceedings, and (2) Borrower shall have established on Borrower's
        books adequate reserves with respect to such contested assessment, tax, charge,
        levy, lien, or claim in accordance with GAAP.

       

      Performance.
        Perform
        and comply, in a timely manner, with all terms, conditions, and provisions
        set
        forth in this Agreement, in the Related Documents, and in all other instruments
        and agreements between Borrower and Lender. Borrower shall notify Lender
        immediately in writing of any default in connection with any agreement with
        Lender

       

      
        ***
          Portions
          of this page have been omitted pursuant to a request for Confidential Treatment
          and filed separately with the Commission.

        
           

          
            
              
                Rubio’s
                  Restaurants, Inc.-Line #400461335

                Business
                  Loan Agreement (04-2008)

              

            

            
              3

              
                

              

            

            
              
              

            

          

        

      

      Operations.
        Maintain
        executive and management personnel with substantially the same qualifications
        and experience as the present executive and management personnel; provide
        written notice to Lender of any change in executive and management personnel;
        conduct its business affairs in a reasonable and prudent manner.

       

      Environmental
        Studies.
        Promptly
        conduct and complete, at Borrower's expense, all such investigations, studies,
        samplings and testings as may be requested by Lender or any governmental
        authority relative to any substance, or any waste or by-product of any substance
        defined as toxic or a hazardous substance under applicable federal, state,
        or
        local law, rule, regulation, order or directive, at or affecting any property
        or
        any facility owned, leased or used by Borrower.

       

      Compliance
        with Governmental Requirements.
        Comply
        with all laws, ordinances, and regulations, now or hereafter in effect, of
        all
        governmental authorities including but not limited to Anti-Terrorism laws,
        and
        other laws applicable to the conduct of Borrower's properties, businesses
        and
        operations, and to the use or occupancy of the Collateral, including without
        limitation, the Americans With Disabilities Act, except any failure which
        would
        not have a material adverse affect on its financial condition. Borrower may
        contest in good faith any such law, ordinance, or regulation and withhold
        compliance during any proceeding, including appropriate appeals, so long
        as
        Borrower has notified Lender in writing prior to doing so and so long as,
        in
        Lender's sole opinion, Lender's interests in the Collateral are not jeopardized.
        Lender may require Borrower to post adequate security or a surety bond,
        reasonably satisfactory to Lender, to protect Lender's interest.

       

      Inspection.
        Permit
        employees or agents of Lender at any reasonable time to inspect any and all
        Collateral for the Loan or Loans and Borrower's other properties and to examine
        or audit Borrower's books, accounts, and records and to make copies and
        memoranda of Borrower's books, accounts, and records. If Borrower now or
        at any
        time hereafter maintains any records (including without limitation computer
        generated records and computer software programs for the generation of such
        records) in the possession of a third party, Borrower, upon request of Lender,
        shall notify such party to permit Lender free access to such records at all
        reasonable times and to provide Lender with copies of any records it may
        request, all at Borrower's expense. 

       

      Compliance
        Certificates.
        Unless
        waived in writing by Lender, provide Lender, within sixty (60) days after
        the
        end of each fiscal quarter and at the time of each disbursement of Loan
        proceeds, a certificate executed by Borrower's chief financial officer, or
        other
        officer or person acceptable to Lender, certifying that the representations
        and
        warranties set forth in this Agreement are true and correct as of the date
        of
        the certificate and further certifying that, as of the date of the certificate,
        no Event of Default exists under this Agreement.

       

      Environmental
        Compliance and Reports.
        Borrower
        shall comply in all respects with any and all Environmental Laws; not cause
        or
        permit to exist, as a result of an intentional or unintentional action or
        omission on Borrower's part or on the part of any third party, on property
        owned
        and/or occupied by Borrower, any environmental activity where damage may
        result
        to the environment, unless such environmental activity is pursuant to and
        in
        compliance with the conditions of a permit issued by the appropriate federal,
        state or local governmental authorities; shall furnish to Lender promptly
        and in
        any event within thirty (30) days after receipt thereof a copy of any notice,
        summons, lien, citation, directive, letter or other communication from any
        governmental agency or instrumentality concerning any intentional or
        unintentional action or omission on Borrower's part in connection with any
        environmental activity whether or not there is damage to the environment
        and/or
        other natural resources.

       

      Additional
        Assurances.
        Make,
        execute and deliver to Lender such notes, mortgages, deeds of trust, security
        agreements, assignments, financing statements, instruments, documents and
        other
        agreements as Lender or its attorneys may reasonably request to evidence
        and
        secure the Loans and to perfect all Security Interests.

       

      RECOVERY
        OF ADDITIONAL COSTS.
        If the
        imposition of or any change in any law, rule, regulation or guideline, or
        the
        interpretation or application of any thereof by any court or administrative
        or
        governmental authority (including any request or policy not having the force
        of
        law) shall impose, modify or make applicable any taxes (except federal, state
        or
        local income or franchise taxes imposed on Lender), reserve requirements,
        capital adequacy requirements or other obligations which would (A) increase
        the
        cost to Lender for extending or maintaining the credit facilities to which
        this
        Agreement relates, (B) reduce the amounts payable to Lender under this Agreement
        or the Related Documents, or (C) reduce the rate of return on Lender's capital
        as a consequence of Lender's obligations with respect to the credit facilities
        to which this Agreement relates, then Borrower agrees to pay Lender such
        additional amounts as will compensate Lender therefor, within five (5) days
        after Lender's written demand for such payment, which demand shall (x) be
        provided to Borrower within ninety (90) days of such imposition or change
        and
        (y) be accompanied by an explanation of such imposition or charge and a
        calculation in reasonable detail of the additional amounts payable by Borrower,
        which explanation and calculations shall be conclusive in the absence of
        manifest error.

       

      LENDER'S
        EXPENDITURES.
        If any
        action or proceeding is commenced that would materially affect Lender's interest
        in the Collateral (and in which Borrower is not taking reasonably prudent
        actions to protect Lender’s interest in the Collateral) or if Borrower fails to
        comply with any provision of this Agreement or any Related Documents, including
        but not limited to Borrower's failure to discharge or pay when due any amounts
        Borrower is required to discharge or pay under this Agreement or any Related
        Documents, Lender on Borrower's behalf may (but shall not be obligated to)
        take
        any action that Lender deems appropriate, including but not limited to
        discharging or paying all taxes, liens, security interests, encumbrances
        and
        other claims, at any time levied or placed on any Collateral and paying all
        costs for insuring, maintaining and preserving any Collateral. All such
        expenditures reasonably incurred or paid by Lender for such purposes will
        then
        bear interest at the rate charged under the Note from the date incurred or
        paid
        by Lender to the date of repayment by Borrower. All such expenses will become
        a
        part of the Indebtedness and, at Lender's option, will (A) be payable on
        demand;
        (B) be added to the balance of the Note and be apportioned among and be payable
        with any installment payments to become due during either (1) the term of
        any
        applicable insurance policy; or (2) the remaining term of the Note; or (C)
        be
        treated as a balloon payment which will be due and payable on the Maturity
        Date.

       

      NEGATIVE
        COVENANTS.
        Borrower
        covenants and agrees with Lender that while this Agreement is in effect,
        Borrower shall not, without the prior written consent of Lender:

       

      Indebtedness
        and Liens.
        (1)
        Create, incur or assume indebtedness for borrowed money, including capital
        leases, except for (a) trade debt incurred in the normal course of business,
        (b)
        equipment debt not to exceed ***
        in the
        aggregate (i) upon or in any equipment acquired or held by the Borrower to
        secure the purchase price of such equipment or indebtedness incurred solely
        for
        the purpose of financing the acquisition or lease of such equipment, or (ii)
        existing on such equipment at the time of its acquisition, (c) liabilities,
        lines of credit, and leases in existence on the date of this Agreement and
        disclosed to Lender on Schedule
        4
        to the
        Disclosure Schedule and leases entered into after the date of this Agreement
        in
        the normal course of business, (d) endorsing negotiable instruments received
        in
        the usual course of business and (e) and indebtedness to Lender contemplated
        by
        this Agreement or the Credit Agreement; and (2) sell, transfer, mortgage,
        assign, pledge, lease, grant a security interest in, or encumber any of
        Borrower's assets (except as allowed as Permitted Liens), or (3) sell with
        recourse any of Borrower's accounts, except to Lender.

      
         

        ***
          Portions
          of this page have been omitted pursuant to a request for Confidential Treatment
          and filed separately with the Commission.

        
           

          
            
              
                Rubio’s
                  Restaurants, Inc.-Line #400461335

                Business
                  Loan Agreement (04-2008)

              

            

            
              4

              
                

              

            

            
              
              

            

          

        

      

      Continuity
        of Operations.
        (1)
        Engage in any business activities substantially different than those in which
        Borrower is presently engaged, (2) cease operations, liquidate, merge, transfer,
        acquire or consolidate with any other entity, change its name, dissolve or
        transfer or sell Collateral out of the ordinary course of business, or (3)
        pay
        any dividends on Borrower's stock (other than dividends payable in its stock),
        provided, however that notwithstanding the foregoing, but only so long as
        no
        Event of Default has occurred and is continuing or would result from the
        payment
        of dividends, if Borrower is a "Subchapter S Corporation" (as defined in
        the
        Internal Revenue Code of 1986, as amended), Borrower may pay cash dividends
        on
        its stock to its shareholders from time to time in amounts necessary to enable
        the shareholders to pay income taxes and make estimated income tax payments
        to
        satisfy their liabilities under federal and state law which arise solely
        from
        their status as Shareholders of a Subchapter S Corporation because of their
        ownership of shares of Borrower's stock, or purchase or retire any of Borrower's
        outstanding shares or alter or amend Borrower's capital structure; provided,
        further, that Borrower may use up to $*** of the Loan to fund Permitted
        Acquisitions, Borrower may terminate up to ***
        percent
        (***%) of all leases through the Maturity Date and Borrower may elect not
        to
        renew leases in connection with locations that have generated less than $***
        of
        trailing twelve month EBITDA.

       

      Loans,
        Acquisitions and Guaranties.
        Borrower
        shall not: (1)  except with respect to the Subsidiaries, loan, invest in or
        advance money or assets to any other person, enterprise or entity,
 (2)  except with respect to the Subsidiaries, purchase, create or
        acquire any interest in any other enterprise or entity, or (3) incur any
        obligation as surety or guarantor other than in the ordinary course of business;
        provided,
        however,
        Borrower may use up to $*** of the Loan to fund Permitted
        Acquisitions.

       

      Agreements.
        Borrower
        will not enter into any agreement containing any provisions which would be
        violated or breached by the performance of Borrower's obligations under this
        Agreement or in connection herewith.

       

      CESSATION
        OF ADVANCES.
        If
        Lender has made any commitment to make any Loan to Borrower, whether under
        this
        Agreement or under any other agreement, Lender shall have no obligation to
        make
        Loan Advances or to disburse Loan proceeds if: (A) Borrower or any Guarantor
        is
        in default under this Agreement or any of the Related Documents or any other
        agreement that Borrower or any Guarantor has with Lender; (B) Borrower or
        any
        Guarantor dies, becomes incompetent or becomes insolvent, files a petition
        in
        bankruptcy or similar proceedings, or is adjudged a bankrupt; (C) there occurs
        a
        materially adverse change in Borrower's financial condition, in the financial
        condition of any Guarantor, or in the value of any Collateral securing any
        Loan;
        or (D) any Guarantor seeks, claims or otherwise attempts to limit, modify
        or
        revoke such Guarantor's guaranty of the Loan or any other loan with
        Lender.

       

      RIGHT
        OF SETOFF.
        To the
        extent permitted by applicable law, Lender reserves a right of setoff in
        all
        Borrower's accounts with Lender (whether checking, savings, or some other
        account). This includes all accounts Borrower holds jointly with someone
        else
        and all accounts Borrower may open in the future. However, this does not
        include
        any IRA or Keogh accounts, or any trust accounts for which setoff would be
        prohibited by law. Borrower authorizes Lender, to the extent permitted by
        applicable law, to charge or setoff all sums owing on the Indebtedness against
        any and all such accounts.

       

      DEFAULT.
        Each of
        the following shall constitute an Event of Default under this
        Agreement:

       

      Payment
        Default.
        Borrower
        fails to make any payment when due under the Loan (including the
        Note).

       

      Other
        Defaults.
        Borrower
        fails to comply with or to perform any other term, obligation, covenant or
        condition contained in this Agreement or in any of the Related Documents
        or to
        comply with or to perform any term, obligation, covenant or condition contained
        in any other agreement between Lender and Borrower.

       

      Default
        in Favor of Third Parties.
        Borrower
        or any Grantor defaults under any loan, extension of credit, security agreement,
        purchase or sales agreement, or any other agreement, in favor of any other
        creditor or person that would materially affect any of Borrower's or any
        Grantor's financial condition or Borrower's or any Grantor's ability to repay
        the Loans or perform their respective obligations under this Agreement or
        any of
        the Related Documents.

       

      False
        Statements.
        Any
        warranty, representation or statement made or furnished to Lender by Borrower
        or
        on Borrower's behalf under this Agreement or the Related Documents is false
        or
        misleading in any material respect, either now or at the time made or furnished
        or becomes false or misleading at any time thereafter.

       

      Insolvency.
        The
        dissolution or termination of Borrower's existence as a going business, the
        insolvency of Borrower, the appointment of a receiver for any part of Borrower's
        property, any assignment for the benefit of creditors, any type of creditor
        workout, or the commencement of any proceeding under any bankruptcy or
        insolvency laws by or against Borrower.

       

      Defective
        Collateralization.
        This
        Agreement or any of the Related Documents ceases to be in full force and
        effect
        (including failure of any collateral document to create a valid and perfected
        security interest or lien) at any time and for any reason other than as a
        result
        of Lender’s actions or inactions.

       

      Creditor
        or Forfeiture Proceedings.
        Commencement of foreclosure or forfeiture proceedings, whether by judicial
        proceeding, self-help, repossession or any other method, by any creditor
        of
        Borrower or by any governmental agency against any collateral securing the
        Loan.
        This includes a garnishment of any of Borrower's accounts, including deposit
        accounts, with Lender. However, this Event of Default shall not apply if
        there
        is a good faith dispute by Borrower as to the validity or reasonableness
        of the
        claim which is the basis of the creditor or forfeiture proceeding and if
        Borrower gives Lender written notice of the creditor or forfeiture proceeding
        and deposits with Lender monies or a surety bond for the creditor or forfeiture
        proceeding, in an amount determined by Lender, in its sole discretion, as
        being
        an adequate reserve or bond for the dispute; provided, however, Borrower
        may
        terminate up to *** percent (***%) of all leases through the Maturity Date
        and
        Borrower may elect not to renew leases in connection with locations that
        have
        generated less than $*** of trailing twelve month EBITDA.

       

      Events
        Affecting Guarantor.
        Any of
        the preceding events occurs with respect to any Guarantor of any of the
        Indebtedness or any Guarantor dies or becomes incompetent, or revokes or
        disputes the validity of, or liability under, any Guaranty of the
        Indebtedness.

       

      
        ***
          Portions
          of this page have been omitted pursuant to a request for Confidential Treatment
          and filed separately with the Commission.

        
           

          
            
              
                Rubio’s
                  Restaurants, Inc.-Line #400461335

                Business
                  Loan Agreement (04-2008)

              

            

            
              5

              
                

              

            

            
              
              

            

          

        

      

      Change
        in Ownership.
        Any
        change in ownership an event or series of events by which (a) any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of the Securities
        Exchange Act of 1934) shall become, or obtains rights (whether by means of
        warrants, options or otherwise) to become, the “beneficial owner” (as defined in
        Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934), directly
        or
        indirectly, of twenty five percent (25%) or more of the equity securities
        of the
        Borrower entitled to vote for members of the board of directors or equivalent
        governing body of the Borrower on a fully-diluted basis, (b) any “person” or
“group” acquires direct or indirect Control of the Borrower, or (c) the majority
        of the members of the board of directors or other equivalent governing body
        of
        the Borrower cease to be composed of Continuing Directors. “Continuing
        Directors” means the directors of the Borrower on the Loan Date, and each other
        director of the Borrower, if such other director’s nomination for election to
        the board of directors of the Borrower is recommended by a majority of the
        then
        Continuing Directors of the Borrower, whether or not directors on the Loan
        Date,
        in his or her election by the shareholders of the Borrower. For purposes
        of this
        Section, “Control” means (a) the power to control a majority of the Borrower’s
        Board of Directors, whether by virtue of ownership of a specified number
        of
        shares, or by contract, or (b) any contract with any person that gives such
        person control over a substantial portion of the policies or other decision
        making of the Borrower.

       

      Adverse
        Change.
        Lender
        determines, on the basis of its commercially reasonable discretion, that
        a
        material adverse change has occurred or is occurring in Borrower's financial
        condition.

       

      Right
        to Cure.
        If any
        default, other than a default on Indebtedness, is curable and if Borrower
        or
        Grantor, as the case may be, has not been given a notice of a similar default
        within the preceding twelve (12) months, it may be cured if Borrower or Grantor,
        as the case may be, after receiving written notice from Lender demanding
        cure of
        such default: (1) cure the default within fifteen (15) days; or (2) if the
        cure
        requires more than fifteen (15) days, immediately initiate steps which Lender
        deems in Lender's sole discretion to be sufficient to cure the default and
        thereafter continue and complete all reasonable and necessary steps sufficient
        to produce compliance as soon as reasonably practical.

       

      EFFECT
        OF AN EVENT OF DEFAULT.
        If any
        Event of Default shall occur, except where otherwise provided in this Agreement
        or the Related Documents, all commitments and obligations of Lender under
        this
        Agreement or the Related Documents or any other agreement immediately will
        terminate (including any obligation to make further Loan Advances or
        disbursements), and, at Lender's option, all Indebtedness immediately will
        become due and payable, all without notice of any kind to Borrower, except
        that
        in the case of an Event of Default of the type described in the "Insolvency"
        subsection above, such acceleration shall be automatic and not optional.
        In
        addition, Lender shall have all the rights and remedies provided in the Related
        Documents or available at law, in equity, or otherwise. Except as may be
        prohibited by applicable law, all of Lender's rights and remedies shall be
        cumulative and may be exercised singularly or concurrently. Election by Lender
        to pursue any remedy shall not exclude pursuit of any other remedy, and an
        election to make expenditures or to take action to perform an obligation
        of
        Borrower or of any Grantor shall not affect Lender's right to declare a default
        and to exercise its rights and remedies.

       

      PRIMARY
        DEPOSITORY RELATIONSHIP.
        Borrower
        agrees to maintain its primary depository relationship with Lender subject
        to
        Lender's applicable fees and charges.

       

      OUTSIDE
        INDEBTEDNESS.
        New
        outside indebtedness (in addition to Permitted Liens) is allowed to a maximum
        amount of $*** in the aggregate, annually.

       

      ADDITIONAL
        EVENTS OF DEFAULT. 

       

      1.
        An
        event of default will exist if Borrower's ***.

       

      2.
        An
        event of default will exist if Borrower's ***.

       

      To
        cure a
        potential default on the above referenced items, Lender will permit Borrower
        to
        *** ; Borrower has a five (5) business day period to cure either
        default.

       

      CONDITIONS
        TO CLOSING. Lender
        shall not be required to fund any Loans, arrange for issuance of any letters
        of
        credit or grant any other accommodation to or for the benefit of Borrower,
        unless the following conditions are satisfied:

       

      (a) All
        Loan
        Documents shall have been duly executed and delivered to Lender by each
        signatory thereto, and each Obligor shall be in compliance with all terms
        thereof.

       

      (b) Lender
        shall have received acknowledgments of all filings or recordations necessary
        to
        perfect its liens in the Collateral, as well as UCC and lien searches and
        other
        evidence satisfactory to Lender that such liens are the only liens upon the
        Collateral, except Permitted Liens and except as provided below in the Section
        titled “Post Closing Conditions”.

       

      (c) Lender
        shall have received copies of policies or certificates of insurance for the
        insurance policies carried by Borrower, all in compliance with this
        Agreement.

       

      (d) No
        Event
        of Default shall exist at the time of, or result from, such funding, issuance
        or
        grant.

       

      (e) Lender
        shall have received the written opinion of DLA Piper in form and substance
        reasonably satisfactory to Lender.

       

      (f) No
        event
        shall have occurred or circumstance exist that has or would reasonably be
        expected to have a material adverse effect on Borrower’s financial
        condition.

       

      (g) The
        representations and warranties of each Obligor in the Loan Documents shall
        be
        true and correct on the date of, and upon giving effect to, such funding,
        issuance or grant (except for representations and warranties that expressly
        relate to an earlier date).

       

      (h) Lender
        shall have received a certificate of a duly authorized officer of each Obligor,
        certifying (i) that attached copies of such Obligor’s organizational
        documents are true and complete, and in full force and effect, without amendment
        except as shown; (ii) that an attached copy of resolutions authorizing
        execution and delivery of the Loan Documents is true and complete, and that
        such
        resolutions are in full force and effect, were duly adopted, have not been
        amended, modified or revoked, and constitute all resolutions adopted with
        respect to this credit facility; and (iii) to the title, name and signature
        of each Person authorized to sign the Loan Documents. Agent may conclusively
        rely on this certificate until it is otherwise notified by the applicable
        Obligor in writing.

       

      
        ***
          Portions
          of this page have been omitted pursuant to a request for Confidential Treatment
          and filed separately with the Commission.

        
           

          
            
              
                Rubio’s
                  Restaurants, Inc.-Line #400461335

                Business
                  Loan Agreement (04-2008)

              

            

            
              6

              
                

              

            

            
              
              

            

          

        

      

      (i) Lender
        shall have received good standing certificates for each Obligor, issued by
        the
        Secretary of State or other appropriate official of such Obligor’s jurisdiction
        of organization and each jurisdiction where such Obligor’s conduct of business
        necessitates qualification.

       

      POST
        CLOSING CONDITIONS. The
        Borrower shall deliver or cause to be delivered to the Lender the following
        documents, in form and substance satisfactory to Lender, within the prescribed
        time period set forth below (failure to timely comply with such covenants
        shall
        result in an immediate Event of Default under this Agreement):

       

      (a) Within
        10
        days of the Loan Date, an acknowledgment/consent executed by Bank of America
        and
        any beneficiary to a letter of credit issued by Bank of America, in form
        and
        substance satisfactory to Lender, acknowledging Bank of America’s release of any
        security interest and existing liens (other than Permitted Liens) relating
        to
        any issued letter of credit, and consenting to the replacement of any such
        issued letter of credit by a new Letter of Credit issued by Lender.

       

      (b) Within
        45
        days of the Loan Date, either (1) evidence satisfactory to the Lender that
        the Borrower has closed those certain deposit accounts (other than payroll
        accounts) set forth on Schedule 5
        to the
        Disclosure Schedule, and transferred all funds therein to another deposit
        account(s) held by Lender, or (2) control agreements substantially
        establishing the Lender’s “control” (within the meaning of Section 8-106, 9-106
        or 9-104 of the UCC, as applicable) with respect to such deposit accounts
        set
        forth on Schedule 5
        to the
        Disclosure Schedule.

       

      LETTERS
        OF CREDIT. 

       

      Subject
        to the terms of this Agreement, Lender will issue one or more Standby Letters
        of
        Credit (each a "Letter of Credit") on behalf of Borrower for terms of up
        to two
        year(s). At no time, however, shall (i) the total face amount of the Letters
        of
        Credit outstanding exceed the sum of $4,000,000.00; and (ii) the total amount
        outstanding under this Agreement, inclusive of any Letter’s of Credit, exceed
        the sum of $5,000,000.00.

       

      (a)
        Upon
        Lenders request, Borrower promptly shall pay to Lender issuance fees and
        such
        other fees, commissions, costs and any out of pocket expenses charged or
        incurred by Lender with respect to any Letter of Credit including but not
        limited to an annual fee equal to ***%
        per
        annum prior to issuance of any Letter of Credit.

       

      (b)
        The
        commitment by Lender to issue Letters of Credit shall, unless earlier terminated
        in accordance with the terms of this Agreement, automatically terminate
        concurrently with the Maturity Date of the Note.

       

      (c)
        Each
        Letter of Credit shall be in form and substance satisfactory to Lender and
        in
        favor of beneficiaries satisfactory to Lender, provided that Lender may refuse
        to issue a Letter of Credit due to the nature of the transaction or its terms
        or
        in connection with any transaction where Lender, due to the beneficiary or
        the
        nationality or residence of the beneficiary, would be prohibited by any
        applicable law, regulation, or order from issuing such Letter of
        Credit.

       

      (d)
        Prior
        to the issuance of each Letter of Credit, and in all events prior to any
        daily
        cutoff time Lender may have established for purposes thereof, Borrower shall
        deliver to Lender, a duly executed form of Lender's standard form of application
        for issuance of Letters of Credit with proper insertions.

       

      (e)
        If
        drawn, whether in full or in part, the principal amount of each draw (including
        accrued interest and fees) must be repaid upon Lender’s demand.

       

      MISCELLANEOUS
        PROVISIONS.
        The
        following miscellaneous provisions are a part of this Agreement:

       

      Amendments.
        This
        Agreement, together with any Related Documents, constitutes the entire
        understanding and agreement of the parties as to the matters set forth in
        this
        Agreement. No alteration of or amendment to this Agreement shall be effective
        unless given in writing and signed by the party or parties sought to be charged
        or bound by the alteration or amendment.

       

      Attorneys'
        Fees; Expenses.
        Borrower
        agrees to pay upon demand all of Lender's costs and expenses, including Lender's
        reasonable attorneys' fees and Lender's reasonable legal expenses, incurred
        in
        connection with the enforcement of this Agreement. Lender may hire or pay
        someone else to help enforce this Agreement, and Borrower shall pay the
        reasonable costs and expenses of such enforcement. Costs and expenses include
        Lender's reasonable attorneys' fees and legal expenses whether or not there
        is a
        lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings
        (including efforts to modify or vacate any automatic stay or injunction),
        appeals, and any anticipated post-judgment collection services. Borrower
        also
        shall pay all court costs and such additional fees as may be directed by
        the
        court.

       

      Caption
        Headings.
        Caption
        headings in this Agreement are for convenience purposes only and are not
        to be
        used to interpret or define the provisions of this Agreement.

       

      Consent
        to Loan Participation.
        Borrower
        agrees and consents to Lender's sale or transfer, whether now or later, of
        one
        or more participation interests in the Loan to one or more purchasers, whether
        related or unrelated to Lender. Lender may provide, without any limitation
        whatsoever, to any one or more purchasers, or potential purchasers, any
        information or knowledge Lender may have about Borrower or about any other
        matter relating to the Loan, and Borrower hereby waives any rights to privacy
        Borrower may have with respect to such matters. Borrower additionally waives
        any
        and all notices of sale of participation interests, as well as all notices
        of
        any repurchase of such participation interests. Borrower also agrees that
        the
        purchasers of any such participation interests will be considered as the
        absolute owners of such interests in the Loan and will have all the rights
        granted under the participation agreement or agreements governing the sale
        of
        such participation interests. Borrower further waives all rights of offset
        or
        counterclaim that it may have now or later against Lender or against any
        purchaser of such a participation interest and unconditionally agrees that
        either Lender or such purchaser may enforce Borrower's obligation under the
        Loan
        irrespective of the failure or insolvency of any holder of any interest in
        the
        Loan. Borrower further agrees that the purchaser of any such participation
        interests may enforce its interests irrespective of any personal claims or
        defenses that Borrower may have against Lender.

       

      
        ***
          Portions
          of this page have been omitted pursuant to a request for Confidential Treatment
          and filed separately with the Commission.

        
           

          
            
              
                Rubio’s
                  Restaurants, Inc.-Line #400461335

                Business
                  Loan Agreement (04-2008)

              

            

            
              7

              
                

              

            

            
              
              

            

          

        

      

      Confidentiality.
        Lender
        agrees to maintain the confidentiality of all 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, agents,
        advisors and representatives (it being understood that the Persons to whom
        such
        disclosure is made will 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 purporting to have jurisdiction
        over it (including any self-regulatory authority, including but not limited
        to
        the Federal Deposit Insurance Corporation or the California Department of
        Financial Institutions); (c) to the extent required by Applicable Law or
        by any
        subpoena or similar legal process; (d) to any other party hereto; (e) in
        connection with the exercise of any remedies, the enforcement of any rights,
        or
        any action or proceeding relating to any Loan Documents; (f) subject to an
        agreement containing provisions substantially the same as those of this Section,
        to any transferee or any actual or prospective party (or its advisors) to
        any
        Bank Product; (g) with the consent of the Borrower; or (h) to the extent
        such
        Information (i) becomes publicly available other than as a result of a breach
        of
        this Section or (ii) becomes available to Lender or any of its Affiliates
        on a
        nonconfidential basis from a source other than Borrower. Notwithstanding
        the
        foregoing, Lender may issue and disseminate to the public general information
        describing this credit facility, including the name and address of Borrower
        and
        a general description of Borrower’s business, and may use Borrower’s name in
        advertising and other promotional materials. For purposes of this Section,
        “Information” means all information received from an Obligor or Subsidiary
        relating to it or its business, other than any information that is available
        to
        Lender on a nonconfidential basis prior to disclosure by the Obligor or
        Subsidiary, provided,
        however,
        that,
        in the case of information received from an Obligor or Subsidiary after the
        date
        hereof, such information is clearly identified at the time of delivery as
        confidential. Any Person required to maintain the confidentiality of Information
        pursuant to this Section 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, but in no event less than commercially
        reasonable care. Lender acknowledges that (i) Information may include material
        non-public information concerning an Obligor or Subsidiary; (ii) it has
        developed compliance procedures regarding the use of material non-public
        information; and (iii) it will handle such material non-public information
        in
        accordance with Applicable Law, including federal and state securities
        laws.
        For
        purposes of this Section, “Affiliate” means with respect to any 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 Section, “Control” means the possession, directly or
        indirectly, of the power to direct or cause the direction of the management
        or
        policies of a Person, whether through the ability to exercise voting power,
        by
        contract or otherwise (“Controlling” and “Controlled” have correlative
        meanings). 

       

      Governing
        Law. This
        Agreement will be governed by federal law applicable to Lender and, to the
        extent not preempted by federal law, the laws of the State of California
        without
        regard to its conflicts of law provisions. This Agreement has been accepted
        by
        Lender in the State of California.

       

      Choice
        of Venue.
        If there
        is a lawsuit, Borrower agrees upon Lender's request to submit to the
        jurisdiction of the courts of Los Angeles County, State of
        California.

       

      Waiver
        of Jury Trial. TO
        THE
        FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND LENDER HEREBY
        IRREVOCABLY AND EXPRESSLY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION,
        PROCEEDING, OR COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE)
        ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER RELATED DOCUMENT,
        THE
        OBLIGATIONS OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY OR
        EITHER
        PARTY’S ACTIONS IN THE NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT HEREOF OR
        THEREOF. BORROWER AND LENDER EACH ACKNOWLEDGES THAT SUCH WAIVER IS MADE WITH
        FULL KNOWLEDGE AND UNDERSTANDING OF THE NATURE OF THE RIGHTS AND BENEFITS
        WAIVED
        HEREBY, AND WITH THE BENEFIT OF ADVICE OF COUNSEL OF ITS CHOOSING.

       

      Judicial
        Reference. The
        parties prefer that any dispute between them be resolved in litigation subject
        to a Jury Trial Waiver as set forth in this Agreement, but the California
        Supreme Court has held that such pre-dispute jury trial waivers are
        unenforceable. This section will be applicable until: (i) the California
        Supreme Court holds that a pre-dispute jury trial waiver provision similar
        to
        that contained in this Agreement is valid or enforceable; or (ii) the
        California Legislature passes legislation and the governor of the State of
        California signs into law a statute authorizing pre-dispute jury trial waivers
        and as a result such waivers become enforceable.

       

      Other
        than the exercise of provisional remedies (any of which may be initiated
        pursuant to applicable law), any controversy, dispute or claim (each, a “Claim”)
        between the parties arising out of or relating to this Agreement will be
        resolved by a reference proceeding in California in accordance with the
        provisions of Section 638 et seq. of the California Code of Civil Procedure
        (“CCP”), or their successor sections, which shall constitute the exclusive
        remedy for the resolution of any Claim, including whether the Claim is subject
        to the reference proceeding. Venue for the reference proceeding will be in
        the
        Superior Court or Federal District Court in Los Angeles County, California
        (the
“Court”).

       

      The
        referee shall be a retired Judge or Justice selected by mutual written agreement
        of the parties. If the parties do not agree, the referee shall be selected
        by
        the Presiding Judge of the Court (or his or her representative). A request
        for
        appointment of a referee may be heard on an ex
        parte
        or
        expedited basis, and the parties agree that irreparable harm would result
        if
ex
        parte
        relief
        is not granted. The referee shall be appointed to sit with all the powers
        provided by law. Pending appointment of the referee, the Court has power
        to
        issue temporary or provisional remedies.

       

      The
        parties agree that time is of the essence in conducting the reference
        proceedings. Accordingly, the referee shall be requested, subject to change
        in
        the time periods specified herein for good cause shown, to (a) set the
        matter for a status and trial-setting conference within forty-five (45) days
        after the date of selection of the referee, (b) if practicable, try all
        issues of law or fact within one hundred twenty (120) days after the date
        of the
        conference and (c) report a statement of decision within twenty (20) days
        after the matter has been submitted for decision.

       

      The
        referee will have power to expand or limit the amount and duration of discovery.
        The referee may set or extend discovery deadlines or cutoffs for good cause,
        including a party’s failure to provide requested discovery for any reason
        whatsoever. Unless otherwise ordered based upon good cause shown, no party
        shall
        be entitled to “priority” in conducting discovery, depositions may be taken by
        either party upon ten (10) days written notice, and all other discovery shall
        be
        responded to within twenty (20) days after service. All disputes relating
        to
        discovery which cannot be resolved by the parties shall be submitted to the
        referee whose decision shall be final and binding.

       

      Except
        as
        expressly set forth in this Agreement, the referee shall determine the manner
        in
        which the reference proceeding is conducted including the time and place
        of
        hearings, the order of presentation of evidence, and all other questions
        that
        arise with respect to the course of the reference proceeding. All proceedings
        and hearings conducted before the referee, except for trial, shall be conducted
        without a court reporter, except that when any party so requests, a court
        reporter will be used at any hearing conducted before the referee, and the
        referee will be provided a courtesy copy of the transcript. The party making
        such a request shall have the obligation to arrange for and pay the court
        reporter. Subject to the referee’s power to award costs to the prevailing party,
        the parties will equally share the cost of the referee and the court reporter
        at
        trial.

       

      The
        referee shall be required to determine all issues in accordance with existing
        case law and the statutory laws of the State of California. The rules of
        evidence applicable to proceedings at law in the State of California will
        be
        applicable to the reference proceeding. The referee shall be empowered to
        enter
        equitable as well as legal relief, provide all temporary or provisional
        remedies, enter equitable orders that will be binding on the parties and
        rule on
        any motion which would be authorized in a trial, including without limitation
        motions for summary judgment or summary adjudication. The referee shall issue
        a
        decision pursuant to CCP Section 644 the referee’s decision shall be entered by
        the Court as a judgment or an order in the same manner as if the action had
        been
        tried by the Court. The final judgment or order or from any appealable decision
        or order entered by the referee shall be fully appealable as provided by
        law.
        The parties reserve the right to findings of fact, conclusions of laws, a
        written statement of decision, and the right to move for a new trial or a
        different judgment, which new trial, if granted, is also to be a reference
        proceeding under this provision.

       

      
        
          
            
              
                Rubio’s
                  Restaurants, Inc.-Line #400461335

                Business
                  Loan Agreement (04-2008)

              

            

            
              8

              
                

              

            

            
              
              

            

          

        

      

      If
        the
        enabling legislation which provides for appointment of a referee is repealed
        (and no successor statute is enacted), any dispute between the parties that
        would otherwise be determined by reference procedure will be resolved and
        determined by arbitration. The arbitration will be conducted by a retired
        judge
        or Justice, in accordance with the California Arbitration Act Section 1280
        through Section 1294.2 of the CCP as amended from time to time. The limitations
        with respect to discovery set forth above shall apply to any such arbitration
        proceeding.

       

      THE
        PARTIES RECOGNIZE AND AGREE THAT ALL DISPUTES RESOLVED UNDER THIS REFERENCE
        PROVISION WILL BE DECIDED BY A REFEREE AND NOT BY A JURY. AFTER CONSULTING
        (OR
        HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR OWN CHOICE,
        EACH
        PARTY KNOWINGLY AND VOLUNTARILY AND FOR THEIR MUTUAL BENEFIT AGREES THAT
        THIS
        REFERENCE PROVISION WILL APPLY TO ANY DISPUTE BETWEEN THEM WHICH ARISES OUT
        OF
        OR IS RELATED TO THIS AGREEMENT.

       

      No
        Waiver by Lender.
        Lender
        shall not be deemed to have waived any rights under this Agreement unless
        such
        waiver is given in writing and signed by Lender. No delay or omission on
        the
        part of Lender in exercising any right shall operate as a waiver of such
        right
        or any other right. A waiver by Lender of a provision of this Agreement shall
        not prejudice or constitute a waiver of Lender's right otherwise to demand
        strict compliance with that provision or any other provision of this Agreement.
        No prior waiver by Lender, nor any course of dealing between Lender and
        Borrower, or between Lender and any Grantor, shall constitute a waiver of
        any of
        Lender's rights or of any of Borrower's or any Grantor's obligations as to
        any
        future transactions. Whenever the consent of Lender is required under this
        Agreement, the granting of such consent by Lender in any instance shall not
        constitute continuing consent to subsequent instances where such consent
        is
        required and in all cases such consent may be granted or withheld in the
        sole
        discretion of Lender.

       

      Integration.
        The
        parties agree that (a) this Agreement, together with all of the Related
        Documents, represents the final agreement between the parties, and therefore
        incorporates all negotiations of the parties hereto (b) there are no unwritten
        oral agreements between the parties, and (c) this Agreement may not be
        contradicted by evidence of any prior, contemporaneous, or subsequent oral
        agreements or understandings of the parties.

       

      Notices.
        Any
        notice required to be given under this Agreement shall be given in writing,
        and
        shall be effective when actually delivered, when actually received by
        telefacsimile (unless otherwise required by law), when deposited with a
        nationally recognized overnight courier, or, if mailed, when deposited in
        the
        United States mail, as first class, certified or registered mail postage
        prepaid, directed to the addresses shown near the beginning of this Agreement.
        Any party may change its address for notices under this Agreement by giving
        formal written notice to the other parties, specifying that the purpose of
        the
        notice is to change the party's address. For notice purposes, Borrower agrees
        to
        keep Lender informed at all times of Borrower's current address. Unless
        otherwise provided or required by law, if there is more than one Borrower,
        any
        notice given by Lender to any Borrower is deemed to be notice given to all
        Borrowers.

       

      Severability.
        If a
        court of competent jurisdiction finds any provision of this Agreement to
        be
        illegal, invalid, or unenforceable as to any circumstance, that finding shall
        not make the offending provision illegal, invalid, or unenforceable as to
        any
        other circumstance. If feasible, the offending provision shall be considered
        modified so that it becomes legal, valid and enforceable. If the offending
        provision cannot be so modified, it shall be considered deleted from this
        Agreement. Unless otherwise required by law, the illegality, invalidity,
        or
        unenforceability of any provision of this Agreement shall not affect the
        legality, validity or enforceability of any other provision of this
        Agreement.

       

      Subsidiaries
        and Affiliates of Borrower.
        To the
        extent the context of any provisions of this Agreement makes it appropriate,
        including without limitation any representation, warranty or covenant, the
        word
        "Borrower" as used in this Agreement shall include all of Borrower's
        subsidiaries and affiliates. Notwithstanding the foregoing however, under
        no
        circumstances shall this Agreement be construed to require Lender to make
        any
        Loan or other financial accommodation to any of Borrower's subsidiaries or
        affiliates.

       

      Successors
        and Assigns.
        All
        covenants and agreements by or on behalf of Borrower contained in this Agreement
        or any Related Documents shall bind Borrower's successors and assigns and
        shall
        inure to the benefit of Lender and its successors and assigns. Borrower shall
        not, however, have the right to assign Borrower's rights under this Agreement
        or
        any interest therein, without the prior written consent of Lender.

       

      Survival
        of Representations and Warranties.
        Borrower
        understands and agrees that in extending Loan Advances, Lender is relying
        on all
        representations, warranties, and covenants made by Borrower in this Agreement
        or
        in any certificate or other instrument delivered by Borrower to Lender under
        this Agreement or the Related Documents. Borrower further agrees that regardless
        of any investigation made by Lender, all such representations, warranties
        and
        covenants will survive the extension of Loan Advances and delivery to Lender
        of
        the Related Documents, shall be continuing in nature, shall be deemed made
        and
        redated by Borrower at the time each Loan Advance is made, and shall remain
        in
        full force and effect until such time as Borrower's Indebtedness shall be
        paid
        in full, or until this Agreement shall be terminated in the manner provided
        above, whichever is the last to occur.

       

      Time
        is of the Essence.
        Time is
        of the essence in the performance of this Agreement.

       

      Patriot
        Act Notice. Lender
        hereby notifies Borrower that pursuant to the requirements of the Patriot
        Act,
        Lender is required to obtain, verify and record information identifying
        Borrower, including Borrower’s legal name, address, tax ID number and other
        information that will allow Lender to identify Borrower in accordance with
        the
        Patriot Act. Lender will also require information regarding each personal
        guarantor, if any, and may require information regarding Borrower’s management
        and owners, such as legal name, address, social security number and date
        of
        birth.

       

      DEFINITIONS.
        The
        following capitalized words and terms shall have the following meanings when
        used in this Agreement. Unless specifically stated to the contrary, all
        references to dollar amounts shall mean amounts in lawful money of the United
        States of America. Words and terms used in the singular shall include the
        plural, and the plural shall include the singular, as the context may require.
        Words and terms not otherwise defined in this Agreement shall have the meanings
        attributed to such terms in the Uniform Commercial Code. Accounting words
        and
        terms not otherwise defined in this Agreement shall have the meanings assigned
        to them in accordance with generally accepted accounting principles as in
        effect
        on the date of this Agreement: 

       

      Advance.
        The word
        "Advance" means a disbursement of Loan funds made, or to be made, to Borrower
        or
        on Borrower's behalf on a line of credit or multiple advance basis under
        the
        terms and conditions of this Agreement. 

       

      Agreement.
        The word
        "Agreement" means this Business Loan Agreement, as this Business Loan Agreement
        may be amended or modified from time to time, together with all exhibits
        and
        schedules attached to this Business Loan Agreement from time to time.

      
        
           

          
            
              
                Rubio’s
                  Restaurants, Inc.-Line #400461335

                Business
                  Loan Agreement (04-2008)

              

            

            
              9

              
                

              

            

            
              
              

            

          

        

      

      Anti-Terrorism
        Laws. The
        words
“Anti-Terrorism laws” mean any laws relating to terrorism or money laundering,
        including the Patriot Act.

       

      Borrower.
        The word
        "Borrower" means Rubio's Restaurants, Inc., a Delaware corporation and includes
        all co-signers and co-makers signing the Note and all their successors and
        assigns.

       

      Collateral
        Description.
        The word
        "Collateral" as used in this Agreement means the following described property,
        whether now owned or hereafter acquired, whether now existing or hereafter
        arising, and wherever located, in which Borrower is giving to Lender a security
        interest for the payment of the Indebtedness and performance of all other
        obligations under the Note, the Security Agreement, and this
        Agreement:

       

      All
        present and future right, title and interest of Borrower in and to, without
        limitation, all: personal and fixture property of every kind and nature
        including without limitation all goods (including inventory, equipment and
        any
        accessions thereto), instruments (including promissory notes), documents,
        accounts (including health care insurance receivables), chattel paper (whether
        tangible or electronic), deposit accounts, letter of credit rights (whether
        or
        not the letter of credit is evidenced by a writing), commercial tort claims,
        securities and all other investment property, supporting obligations, any
        other
        contract rights or rights to the payment of money, insurance claims and
        proceeds, tort claims, and all general intangibles including, without
        limitation, all payment intangibles, patents, patent applications, trademarks,
        trademark applications, trade names, copyrights, copyright applications,
        software, engineering drawings, service marks, customer lists, goodwill,
        and all
        licenses, permits, agreements of any kind or nature pursuant to which the
        Debtor
        possesses, uses or has authority to possess or use property (whether tangible
        or
        intangible) of others or others possess, use or have authority to possess
        or use
        property (whether tangible or intangible) of the Borrower, and all recorded
        data
        of any kind or nature, regardless of the medium of recording including, without
        limitation, all software, writings, plans, specifications and schematics.
        With
        respect to any term used herein that is defined in either (i) Article 9 of
        the
        Uniform Commercial Code as in force in the jurisdiction in which this agreement
        was signed by Borrower at the time that it was signed, or (ii) Article 9
        as in
        force at any relevant time in the jurisdiction in which the financing statement
        is filed, the meaning to be ascribed thereto with respect to any particular
        item
        of property shall be that under the more encompassing of the two
        definitions. In
        addition, the word "Collateral" also includes all the following, whether
        now
        owned or hereafter acquired, whether now existing or hereafter arising, and
        wherever located:

       

      (A)
        All
        accessions, attachments, accessories, replacements of and additions to any
        of
        the collateral described herein, whether added now or later.

       

      (B)
        All
        products and proceeds of any of the property described in this Collateral
        section.

       

      (C)
        All
        accounts, general intangibles, instruments, rents, monies, payments, and
        all
        other rights, arising out of a sale, lease, consignment or other disposition
        of
        any of the property herein described.

       

      (D)
        All
        proceeds (including insurance proceeds) from the sale, destruction, loss,
        or
        other disposition of any of the property herein described and sums due from
        a
        third party who has damaged or destroyed the Collateral or from that party's
        insurer, whether due to judgment, settlement or other process.

       

      (E)
        All
        records and data relating to any of the property herein described whether
        in the
        form of a writing, photograph, microfilm, microfiche, or electronic media,
        together with all of Borrower's right, title, and interest in and to all
        computer software required to utilize, create, maintain, and process any
        such
        records or data on electronic media.

       

      For
        purposes of clarity, the word “Collateral” shall include the Company’s interests
        in the leases and the equipment for its existing and future restaurant units
        only to the extent allowed by and in accordance with the terms and conditions
        of
        such leases. 

       

      Disclosure
        Schedule.
        The word
“Disclosure Schedule” means that certain Disclosure Schedule drafted by Borrower
        in connection with this Agreement and the Guidance Line.

       

      Environmental
        Laws.
        The
        words "Environmental Laws" mean any and all state, federal and local statutes,
        regulations and ordinances relating to the protection of human health or
        the
        environment, including without limitation the Comprehensive Environmental
        Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C.
        Section
        9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act
        of
        1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation
        Act,
        49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act,
        42
        U.S.C. Section 6901, et seq., Chapters 6.5 through 7.7 of Division 20 of
        the
        California Health and Safety Code, Section 25100, et seq., or other applicable
        state or federal laws, rules, or regulations adopted pursuant
        thereto.

       

      Event
        of Default.
        The
        words "Event of Default" mean any of the events of default set forth in this
        Agreement in the default section of this Agreement.

       

      GAAP.
        The word
        "GAAP" means generally accepted accounting principles. 

       

      Grantor.
        The word
        "Grantor" means each and all of the persons or entities granting a Security
        Interest in any Collateral for the Loan, including without limitation all
        Borrowers granting such a Security Interest. 

       

      Guarantor.
        The word
        "Guarantor" means any guarantor, surety, or accommodation party of any or
        all of
        the Loan.

       

      Guaranty.
        The word
        "Guaranty" means the guaranty from Guarantor to Lender, including without
        limitation a guaranty of all or part of the Note.

       

      Guidance
        Line. The
        word
“Guidance Line” means that certain Business Loan Agreement entered into among
        Borrower and Lender dated May 13, 2008 (as the same may be amended or modified
        from time to time, together with all exhibits and schedules attached to such
        Guidance Line from time to time) pursuant to which Lender provided Borrower
        a
        Guidance Line.

       

      Hazardous
        Substances.
        The
        words "Hazardous Substances" mean materials that, because of their quantity,
        concentration or physical, chemical or infectious characteristics, may cause
        or
        pose a present or potential hazard to human health or the environment when
        improperly used, treated, stored, disposed of, generated, manufactured,
        transported or otherwise handled. The words "Hazardous Substances" are used
        in
        their very broadest sense and include without limitation any and all hazardous
        or toxic substances, materials or waste as defined by or listed under the
        Environmental Laws. The term "Hazardous Substances" also includes, without
        limitation, petroleum and petroleum by-products or any fraction thereof and
        asbestos.

       

      Indebtedness.
        The word
        "Indebtedness" means the indebtedness evidenced by the Note or Related
        Documents, including all principal and interest together with all other
        indebtedness and costs and expenses for which Borrower is responsible under
        this
        Agreement or under any of the Related Documents.

       

      Lender.
        The word
        "Lender" means Pacific Western Bank, its successors and assigns. 

      
        
           

          
            
              
                Rubio’s
                  Restaurants, Inc.-Line #400461335

                Business
                  Loan Agreement (04-2008)

              

            

            
              10

              
                

              

            

            
              
              

            

          

        

      

      Loan.
        The word
        "Loan" means any and all loans and financial accommodations from Lender to
        Borrower whether now or hereafter existing, and however evidenced, including
        without limitation those loans and financial accommodations described herein
        or
        described on any exhibit or schedule attached to this Agreement from time
        to
        time.

       

      Loan
        Date.
        The word
“Loan Date” means May 13, 2008.

       

      Loan
        Documents. The
        word
“Loan Documents” means this Agreement, the Guidance Line, and all Related
        Documents.

       

      Maturity
        Date. The
        word
“Maturity Date” means May 13, 2010.

       

      Note.
        The word
        "Note" means the Note executed by Rubio's Restaurants, Inc., a Delaware
        corporation in the principal amount of $5,000,000.00 dated May 13, 2008,
        together with all renewals of, extensions of, modifications of, refinancings
        of,
        consolidations of, and substitutions for the note or credit
        agreement.

       

      Obligor.
        The
        word
“Obligor” means Borrower, Guarantor, or other Person that is liable for payment
        of any Obligations or that has granted a Lien in favor of Agent on its assets
        to
        secure any Obligations.

       

      Patriot
        Act. The
        words
“Patriot Act” means and refers to Uniting
        and Strengthening America by Providing Appropriate Tools Required to Intercept
        and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56, 115 Stat. 272
        (2001).

       

      Permitted
        Acquisition.
        Any
        acquisition that conforms to all of the following requirements: (i) the assets,
        division or line of business to be acquired is primarily in a substantially
        similar line of business as the Borrower’s, (ii) the assets, division or line of
        business to be acquired shall be used towards expansion of Borrower’s existing
        business operations, or the establishment of the Borrower’s future Rubio’s
        restaurant units, (iii) all transactions related to such acquisition shall
        be
        consummated in accordance with applicable law; and (iv) all such assets,
        divisions or lines of business acquired shall be (a) owned directly by Borrower
        or any Guarantor that has granted a Security Interest to Lender, and (b)
        subject
        to Lender’s Security Interest under the Loan Documents.

       

      Permitted
        Liens.
        The
        words "Permitted Liens" mean (1) liens and security interests securing
        Indebtedness owed by Borrower to Lender; (2) liens for taxes, assessments,
        or
        similar charges either not yet due or being contested in good faith; (3)
        liens
        of materialmen, mechanics, warehousemen, or carriers, or other like liens
        arising in the ordinary course of business and securing obligations which
        are
        not yet delinquent or are being contested in good faith by appropriate
        proceedings and Borrower shall have established on Borrower’s books adequate
        reserves with respect to such contested lien or claim in accordance with
        GAAP;
        (4) purchase money liens or purchase money security interests upon or in
        any
        property acquired or held by Borrower in the ordinary course of business
        to
        secure indebtedness outstanding on the date of this Agreement or permitted
        to be
        incurred under the paragraph of this Agreement titled "Indebtedness and Liens";
        (5) liens and security interests which, as of the date of this Agreement,
        have
        been disclosed to and approved by the Lender in writing, including the liens
        and
        security interests, if any, of the landlords for the Company’s existing and
        future restaurant units; and (6) those liens and security interests which
        in the
        aggregate constitute an immaterial and insignificant monetary amount with
        respect to the net value of Borrower's assets; and (7) liens not to exceed
        ***
        in the
        aggregate (i) upon or in any equipment acquired or held by the Borrower to
        secure the purchase price of such equipment or indebtedness incurred solely
        for
        the purpose of financing the acquisition or lease of such equipment, or (ii)
        existing on such equipment at the time of its acquisition, provided that
        the
        lien is confined solely to the property so acquired and improvements thereon,
        and the proceeds of such equipment.

       

      Person.
        The
        word
“Person” means any individual, corporation, limited liability company,
        partnership, joint venture, joint stock company, land trust, business trust,
        unincorporated organization, Governmental Authority or other entity.

       

      Related
        Documents.
        The
        words "Related Documents" mean all promissory notes, credit agreements, loan
        agreements, environmental agreements, guaranties, security agreements,
        mortgages, deeds of trust, security deeds, collateral mortgages, disclosure
        schedules, and all other instruments, agreements and documents, whether now
        or
        hereafter existing, executed in connection with this Loan or the Guidance
        Line.

       

      Security
        Agreement.
        The
        words "Security Agreement" mean and include without limitation any agreements,
        promises, covenants, arrangements, understandings or other agreements, whether
        created by law, contract, or otherwise, evidencing, governing, representing,
        or
        creating a Security Interest. 

       

      Security
        Interest.
        The
        words "Security Interest" mean, without limitation, any and all types of
        collateral security, present and future, whether in the form of a lien, charge,
        encumbrance, mortgage, deed of trust, security deed, assignment, pledge,
        crop
        pledge, chattel mortgage, collateral chattel mortgage, chattel trust, factor's
        lien, equipment trust, conditional sale, trust receipt, lien or title retention
        contract, lease or consignment intended as a security device, or any other
        security or lien interest whatsoever whether created by law, contract, or
        otherwise.

       

      Subsidiaries.
        The word
“Subsidiaries” means, collectively, Rubio's Promotions, Inc., an Arizona
        corporation, and Rubio's Restaurants of Nevada, Inc., a Nevada
        corporation.

       

      UCC.
        The
        word
“UCC” means Uniform Commercial Code.

       

       

      
        ***
          Portions
          of this page have been omitted pursuant to a request for Confidential Treatment
          and filed separately with the Commission.

        
           

          
            
              
                Rubio’s
                  Restaurants, Inc.-Line #400461335

                Business
                  Loan Agreement (04-2008)

              

            

            
              11

              
                

              

            

            
              
              

            

          

        

      

       

       

    

    
      BORROWER
        ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT
        AND
        BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT IS DATED MAY 13,
        2008.

       

      BORROWER:

       

      RUBIO'S
        RESTAURANTS, INC., A DELAWARE CORPORATION

       

      

      
        	
                By:
                  /s/
                  Daniel E.
                  Pittard                                              
                  

                Daniel
                  E. Pittard, President/CEO of Rubio's 

                Restaurants,
                  Inc., a Delaware corporation

              	
                By:
                  /s/
                  Frank
                  Henigman                                    
                  

                Frank
                  Henigman, Chief Financial Officer of 

                Rubio's
                  Restaurants, Inc., a Delaware
                  corporation

              

      

      

       

      LENDER:

       

      PACIFIC
        WESTERN BANK

       

      

      By:
        /s/
        Eric E. Baird, VP______________________

      Authorized
        Signer

      

       

       

      

        S-1

        Business
          Loan Agreement (Line #400461335)Intermediate
      Supply Agreement

     

    This
      Intermediate Supply Agreement is entered into, effective as of this 9 day of
      April, 2008 (the “Effective Date”) by and between 

    

    Lev
      Pharmaceuticals, Inc., 675 Third Avenue, New York, NY 10017, USA (hereinafter
      referred to as "Lev” or “Seller“)

    

    and
      

    

    Biotest
      AG, a corporation having a place of business at Landsteinerstrasse 5, 63303
      Dreieich, Germany (hereinafter referred to as "Biotest” or
“Purchaser“)

    

    Both,
      LEV
      and BIOTEST may be referred to as the "PARTIES"

    

    RECITALS

     

    Whereas,
      BIOTEST wishes to purchase intermediates manufactured from human plasma as
      starting material, and whereas, LEV has access to human plasma and is interested
      to sell intermediates manufactured out of such plasma by toll
      manufacture.

    

    Now,
      therefore, in consideration of the foregoing and the mutual promises contained
      herein the Parties agree as follows:

     

    TERMS

     

    
      	1.	
              Purpose

            

    

    
      	
            	a)	
              "Products"
                are defined as the intermediates manufactured by fractionation of
                plasma
                and specified by Appendix
                1.
                

            

    

    

    
      	
            	b)	
              "Plasma"
                ("Plasma for Fractionation") is the liquid part of human blood donated
                by
                donors and which satisfies the definition of “Source Plasma”, as defined
                by the United States Food and Drug Administration (“FDA”) in 21 C.F.R.
                640.60.

            

    

    

    
      	
            	c)	
              BIOTEST
                acknowledges that the Products are manufactured on LEV’s behalf by Sanquin
                Blood Supply Foundation (“Sanquin”), located at Plesmanlaan
                125, 1066 CX Amsterdam,
                Netherlands. Manufacturing site is the facility of CAF/DCF, Avenue
                de
                Tyraslaan 109, 1120 Brussels,
                Belgium.

            

    

    

    
      	2.	
              Sale
                of Products

            

    

    
      	
            	2.1	
              Agreement
                to purchase and sell.
                During the Term of, and in accordance with the terms and conditions,
                of
                this Agreement, Seller shall sell and Purchaser shall purchase all
                of the
                Products (as defined above) produced by Sanquin on behalf of Seller
                from
                the Plasma provided by Seller to Sanquin that Seller does not require
                for
                use in clinical trials of its product candidates, as it may determine
                in
                its reasonable discretion. Seller represents to Purchaser that the
                volume
                of Plasma to be processed on its behalf by Sanquin for the calendar
                year
                ending December 31, 2008 shall be approximately *
                * *
                liters. Thereafter, and for all subsequent 12 month periods during
                the
                term of this Agreement, Seller shall notify Purchaser prior to November
                30
                of the prior year of the volume of Plasma that is anticipated to
                be
                processed for Seller by Sanquin for the next succeeding twelve month
                period. Notwithstanding the foregoing, however, Purchaser agrees
                and
                acknowledges that the specific quantities of Products which it hereby
                agrees to purchase shall fluctuate throughout the Term, based on
                Seller’s
                requirements, and that Seller makes no commitment or guarantee to
                sell any
                set quantity of Products during the Term. Seller will estimate, on
                a
                periodic basis during the Term, the estimated volume and schedule
                for
                shipments of Products.

            

    

    

      [*CONFIDENTIAL
        TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH
        SUCH
        PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK [***],
        HAS
        BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    

    
 

    
      	
            	2.2	
              Purchaser’s
                Right of First Refusal for Plasma. 

            

    

    

    (a)
       If
      during
      the Term Seller determines to sell unprocessed Plasma to an unaffiliated third
      party, Seller agrees to offer such Plasma to Purchaser in accordance with the
      terms and conditions of this Agreement. In the event Seller determines to sell
      unprocessed Plasma, it shall first provide Purchaser with written notification
      (the “Notice”) of its offer to sell such Plasma, which Notice shall include at a
      minimum (i) the volume of Plasma it is willing to sell (the “Offered Plasma”),
      (ii) the aggregate purchase price for such Offered Plasma and (iii) the date
      by
      which Seller wishes to consummate such sale. Seller and Purchaser hereby agree
      that the purchase price per liter of Offered Plasma shall be equivalent to
      Seller’s acquisition cost for such Offered Plasma.

    

    (b) Purchaser
      shall have a period of seven calendar days from the date of Seller’s notice to
      notify Seller in writing if it wishes to purchase some or all of the Offered
      Plasma on the terms set forth in the Notice. Such election shall be irrevocable
      and Purchaser shall be liable to Seller for the purchase price of such Offered
      Plasma. In the event Purchaser elects to purchase some or all of the Offered
      Plasma, the parties shall proceed in good faith and use their best efforts
      to
      consummate such transaction within the time frame stated in Seller’s Notice.

    

    (c) In
      the
      event Purchaser declines to purchase any Offered Plasma, the Seller shall be
      permitted to proceed with a sale of such Offered Plasma to any third party
      on
      such other terms and conditions as Seller may elect. In no event shall any
      specific volume of Offered Plasma that Purchaser declines to purchase again
      be
      subject to this right of first refusal.

    
      
         

      

    

    
      	
            	2.3	
              Seller’s
                Right of First Refusal for Fraction V Paste. 

            

    

    

    (a)
       During
      the Term, if Purchaser determines to sell any quantity of Fraction V Paste
      derived from Plasma supplied to Sanquin by Seller (the “Paste”) to a third
      party, other than as specified below in clause (b), Purchaser agrees to offer
      such Paste to Seller in accordance with the terms and conditions of this
      Agreement. In the event Purchaser determines to sell such Paste, it shall first
      provide Seller with written notification (the “Notice”) of its offer to sell the
      Paste, which Notice shall include at a minimum (i) the volume of Paste it is
      willing to sell (the “Offered Paste”), (ii) the aggregate purchase price for
      such Offered Paste and (iii) the date by which Purchaser wishes to consummate
      such sale. Seller and Purchaser hereby agree that the purchase price per liter
      of Offered Paste shall not exceed the fair market value of such Paste as
      determined at any time that this right of first refusal is
      triggered.

    
      

        [*CONFIDENTIAL
          TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH
          SUCH
          PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK [***],
          HAS
          BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

      

    

    

    (b)
       Notwithstanding
      the foregoing right of first refusal, the Purchaser’s obligation to offer Seller
      the right to buy Paste shall not extend to the Fraction V Paste obtained from
      the Residuals derived from the processing by Sanquin of an initial quantity
      of
*
      * *
      liters
      of U.S. Source Plasma owned by Seller. 

    

    (c) Seller
      shall have a period of seven calendar days from the date of Purchaser’s Notice
      to notify Purchaser in writing if it wishes to purchase some or all of the
      Offered Paste on the terms set forth in the Notice. In the event Seller elects
      to purchase some or all of the Offered Paste, the parties shall proceed in
      good
      faith and use their best efforts to consummate such transaction within the
      time
      frame and on the terms stated in the Notice. At
      the
      closing, (a) the Purchaser shall sell, transfer and deliver to the Seller or
      its
      designee full right, title and interest in and to the Offered Paste so
      purchased, free and clear of all liens, security interests or adverse claims
      of
      any kind and nature and (b) Seller shall deliver to the Purchaser the purchase
      price of the Offered Paste.

    

    (d) In
      the
      event Seller declines to purchase any Offered Paste, the Purchaser shall be
      permitted to proceed with the sale of such Offered Paste specified in the Notice
      within 120 days from the date of, and on the same terms set forth in, the
      Notice. If
      the
      Purchaser does not complete the sale of the Offered Paste within the 120-day
      period, or seeks to modify the terms of the sale as described in the Notice,
      the
      provisions of this Section shall again apply, and no transfer or sale of such
      Offered Paste shall be made otherwise than in accordance with the terms of
      this
      right of first refusal. 

    

    
      	
            	2.4	
              Invoices.
                From time to time during the Term, Seller shall deliver to Purchaser
                an
                invoice order reflecting the aggregate volume of Products to be purchased
                hereunder (an “Invoice”). Seller shall be entitled to deliver Invoices to
                Purchaser at such time as the transfer of title of the Products covered
                by
                each such Invoice occurs, as specified in Section 4(c) of this Agreement.
                Each Invoice shall specify the quantity of Products purchased and
                the
                corresponding delivery dates. 

            

    

    

    
      	3.	
              Quality

            

    

    The
      responsibility for the quality of the Products, and the specifications thereof,
      is regulated by a quality agreement between Biotest and Sanquin (the “Quality
      Agreement”). The responsibility for the quality of Plasma is regulated by an
      agreement between Lev and Sanquin (the “Lev-Sanquin Agreement”). Biotest agrees
      that Lev is not a party to the Quality Agreement and shall have no
      responsibility for and incur no liability hereunder for failure of the Products
      to comply with any requirements of the Quality Agreement. Nothing herein shall
      make Biotest a party to the Lev-Sanquin Agreement, granting Biotest any rights
      or remedies under such Lev-Sanquin Agreement nor shall Biotest be deemed a
      third-party beneficiary of the Lev-Sanquin Agreement.

    

    
      	4.	
              Delivery.

            

    

    
      	
            	a)	
              From
                time to time during the Term, Seller shall deliver the Plasma from
                which
                Sanquin shall manufacture the Products to Sanquin at such locations
                as
                shall be determined by LEV and Sanquin. On behalf of Sanquin the
                Products
                are produced at the facility of CAF/DCF.

            

    

    

    
      	
            	b)	
              From
                time to time during the Term, Seller shall generate and deliver to
                Purchaser an invoice for the volume of Products sold. Each such invoice
                shall specify the quantity of Products sold, the aggregate price
                for such
                Products and the date on which the Products shall be transferred
                to
                Purchaser. Seller agrees to consult with Purchaser regarding the
                quantity,
                frequency and timing of Products tendered for delivery; however Purchaser
                agrees and acknowledges that the exact quantity, frequency and delivery
                time for Product delivery is subject to the production output of
                Sanquin.
                

            

    

    
      

        [*CONFIDENTIAL
          TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH
          SUCH
          PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK [***],
          HAS
          BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

           

        

      

    

    
      	 	
              c)

            	
              The
                transfer of title, use and risk of loss for the Products shall occur
                at
                the designated shipment or transfer location of Seller. Transfer
                of title,
                use and risk of loss shall occur periodically during the Term at
                each time
                that Seller confirms to Purchaser that Sanquin is authorized to release
                a
                batch of *** and/or *** (as such terms are defined in Appendix 1)
                from its
                quality assurance procedures for shipment. Accordingly, any damages
                sustained beyond that point, will be the responsibility of Purchaser.
                In
                the event Purchaser is notified by Sanquin that a batch of Product
                (whether it is *** or ***) has been released from quality assurance,
                it
                shall, prior to taking delivery of such batch of Product, notify
                Seller of
                such occurrence. In no event may Purchaser accept delivery of and
                title to
                any Products until the release of such Product batch is confirmed
                by
                Seller. Purchaser agrees to bear all costs of shipments, freight,
                insurance and all governmental taxes and duties incurred during shipping
                of the Products sold hereunder from the Seller shipping point to
                Purchaser’s designated receiving terminal.

            

    

    

    
      	
            	d)	
              Products
                shall be packed by or on behalf of Seller in such a manner as to
                mitigate
                damage to the Products or containers during shipping and shall be
                tendered
                to Purchaser at Seller’s designated shipping point.
                

            

    

    

    
      	5.	
              Terms
                of Payment

            

    

    The
      price
      and payment terms Seller and Purchaser have agreed upon are specified in
Appendix
      2.

    

    
      	6.	
              Receipt,
                Tests and Complaints

            

    

    
      	 	
              a)

            	
              The
                receipt, tests to be performed on Plasma, including NAT testing for
                HIV,
                HBV, HCV, HAV, and Parvo B19, respective documentation, and possible
                complaints, as well as handling of look-backs and Post Donation
                Information are the responsibility of Sanquin pursuant to the Lev-Sanquin
                Agreement. 

            

    

    

    
      	 	
              b)

            	
              The
                location for the receipt of Products purchased hereunder by Purchase
                is:
                BIOTEST at its manufacturing site at Dreieich, Germany for purchases
                of
                *** and CAF/DCF for purchases of *** at its manufacturing site at
                Brussels, Belgium for further manufacturing. Purchaser may, upon
                prior
                written notice to Seller, select other receiving locations for
                Products.

            

    

    

    
      	
            	c)	
              Purchaser
                reserves the right for up to 90 days from date of delivery to inspect
                Products for deficiencies. In the event a shipment of Products does
                not
                comply with the requirements of this Agreement because of any failure
                of
                the Plasma to comply with the warranty provided in Section 7.1(i)
                below,
                Purchaser may reject all or party of such shipment by promptly notifying
                Seller in writing of such alleged defect in reasonably sufficient
                detail.
                The nonconforming shipment or portion thereof shall be held for Seller’s
                disposition, or shall be returned to Seller, in each case at Seller’s
                expense, as directed by Seller. Purchaser shall not be obligated
                to buy or
                pay for any shipment which does not comply with the specifications
                or is
                otherwise not as warranted. Purchaser shall receive a full credit
                for any
                rejected shipment, which shall include Purchaser’s shipping costs. In the
                event the Products are not accepted for any reason other than the
                failure
                of the Plasma to satisfy the warranty of Seller in Section 7.1(i),
                Purchaser shall not have any recourse against Seller, shall be liable
                to
                the Seller for the prompt payment of the purchase price of such Products
                and shall be limited to pursuing any remedies it may have pursuant
                to the
                Quality Agreement or such other agreement it may have with
                Sanquin.

            

    

    
      

        [*CONFIDENTIAL
          TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH
          SUCH
          PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK [***],
          HAS
          BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

      

    

     

    
      	7.	
              Representations
                and Warranties 

            

    

    7.1
      Seller’s
      Warranties.
      Seller
      warrants that (i) all Plasma provided to Sanquin shall be Source Plasma, as
      defined above, and (ii) all Products delivered pursuant to this Agreement shall
      be manufactured for it by or on behalf of Sanquin. 

    

    Seller
      further warrants that it shall (a) to the extent permitted by Governmental
      Authorities: report serious failures and exceptional incidents to Purchaser;
      inform Purchaser immediately about measures taken against it or its suppliers
      by
      Governmental Authorities concerning the Products; and (b) use commercially
      reasonable efforts to ensure the source and traceability of individual plasma
      units; implement a quality assurance system including a look-back system and
      relevant contractual terms with its suppliers.

    

    SELLER
      MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED OTHER THAN THOSE
      EXPRESSLY MADE IN THIS AGREEMENT. ALL OTHER WARRANTIES, EXPRESS OR IMPLIED,
      INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
      FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY DISCLAIMED.

    

    7.2
      Mutual
      Representations.
      Each
      Party represents that:

    

    
      	 	
              (a)

            	
              Such
                Party is a corporation duly organized, validly existing, and in good
                standing under the laws of jurisdiction in which it is
                incorporated.

            

    

    
      	 	
              (b)

            	
              Such
                Party has the corporate and legal power and authority to enter into
                this
                Agreement and to perform its obligations hereunder, and such Party
                has
                undertaken all necessary corporate action to authorize the execution
                and
                delivery of this Agreement and to perform its obligations hereunder.
                This
                Agreement, once executed and delivered by the Parties shall constitute
                a
                valid and binding obligation enforceable against each Party in accordance
                with the terms hereof.

            

    

    
      	 	
              (c)

            	
              Such
                Party has not made and, during the term of this Agreement, will not
                make
                any commitments to any other person or entity that is or may be
                inconsistent or in conflict with any rights granted under this
                Agreement.

            

    

    

    7.3
      Purchaser
      Acknowledgement.
      Purchaser agrees that the requirements for the applicable dating period and
      for
      how the Products shall be processed, stored, tested, packaged, labeled and
      shipped in accordance with good manufacturing practices, pursuant to regulations
      prescribed by the respective Government Authorities and all other applicable
      standards, and methods, practices, procedures and directives, requirements
      and
      specifications stated or referred to therein shall be terms and conditions
      of
      the Quality Agreement and Seller makes no representations or warranties
      hereunder concerning the subject matter of this Section 7.3.

    

    
      	8.	
              Limitation
                of Liability and Indemnification

            

    

    8.1 Limitation
      of Liability.
      

    The
      liability of Seller for any damages resulting from its breach of this Agreement
      shall not exceed the purchase price for the Products received by Seller during
      the twelve month period immediately prior to the date of claim. After transfer
      of title for Products, Seller shall not be liable for damages attributable
      to
      said Products due to unsatisfactory storage, transport, or further
      manufacturing. Except
      for a breach of confidentiality obligations as set forth in the Non-Disclosure
      Agreement or as
      may
      arise pursuant to the indemnification obligations under this
      Agreement,
      in
      no event
      shall either of the Parties hereto be liable to the other for payment of any
      consequential, punitive, incidental or special damages incurred by the other
      Party.

    
      

        [*CONFIDENTIAL
          TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH
          SUCH
          PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK [***],
          HAS
          BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

      

    

    

    8.2
      Indemnity.

    a.
      Purchaser’s Obligation.
      Purchaser shall defend, indemnify and hold harmless Seller, affiliated companies
      of Seller and the directors, officers, employees and agents of Seller (each
      a
“Seller Indemnified Party”) from and against all liability, loss, costs, claims,
      damages, expenses, judgments, awards and settlements, including, without
      limitation, actual attorneys’ fees and expenses reasonably incurred (whether or
      not these are covered by insurance), whether in tort or in contract, law or
      equity, that a Seller Indemnified Party may incur by reason of or arising out
      of
      any claim made by any third party, resulting from or with respect to (i) the
      material breach of this Agreement by Purchaser or any other person for whose
      actions Purchaser is liable under applicable law; (ii) the gross negligence
      or
      intentional misconduct or omission of Purchaser or any employee, contractor,
      or
      authorized representative of Purchaser; or (iii) the harmful or unsafe effect
      of
      any drug or other product owned or to which rights are held by Purchaser;
      provided, however, that this indemnification shall not extend to any claims
      arising out of a material breach of this Agreement by Seller or any other person
      for whose actions Seller is liable under applicable law; or the gross negligence
      or intentional misconduct or omission of Seller in connection with this
      Agreement.

    

    b.
      Seller’s Obligation.
      Seller
      shall defend, indemnify and hold harmless Purchaser, affiliated companies of
      Purchaser and the directors, officers, employees and agents of Purchaser (each
      a
“Purchaser Indemnified Party”), from and against all liability, loss, costs,
      claims, damages, expenses, judgments, awards and settlements, including, without
      limitations, actual attorneys’ fees and expenses reasonably incurred (whether or
      not these are covered by insurance), whether in tort or in contract, law or
      equity, that a Seller indemnified Party may incur by reason of or arising out
      of
      any claim made by any third party resulting from or with respect to (i) material
      breach of this Agreement by Seller or any other person for whose actions Seller
      is liable under applicable law, or (ii) the gross negligence or intentional
      misconduct or omission of Seller or any employee, contractor, or authorized
      representative of Seller; provided, however, that this indemnification shall
      not
      extend to any claims arising out of a material breach of the Agreement by
      Purchaser or any other person for whose actions Purchaser is liable under
      applicable law; or the gross negligence or intentional misconduct or omission
      of
      Purchaser in connection with this Agreement.

    

    c.
      Condition to Indemnity.
      The
      obligations to indemnify, defend and hold harmless set forth in this Section
      shall not apply to the Party to be indemnified (the “Indemnified Party”) unless
      the Indemnified Party (i) promptly notifies the Party providing such
      indemnification (the “Indemnifying Party”) of any matters in respect of which
      the indemnity may apply and of which the Indemnified Party has knowledge; (ii)
      gives the Indemnifying Party, at the Indemnifying Party’s option, full
      opportunity to control the response thereto and the defense thereof, including
      any agreement relating to the settlement thereof, provided that the Indemnifying
      Party shall not settle any such claim or action without the prior written
      consent of the Indemnified Party (which consent shall not be unreasonably
      withheld or delayed) unless such settlement include as an unconditional term
      thereof the giving by the claimant of an unconditional release from all
      liability in favor of the Indemnified Party; and (iii) cooperates with the
      Indemnifying Party, at the Indemnifying Party’s cost and expense, in the defense
      or settlement thereof. Notwithstanding the foregoing, the indemnification
      obligations hereunder shall not be relieved hereunder for failure to do the
      foregoing, or delay with so doing, unless the Indemnifying Party is prejudiced
      thereby. In addition, the Indemnified Party may, at its own expense, participate
      in its defense of any claim. 

    
      

        [*CONFIDENTIAL
          TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH
          SUCH
          PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK [***],
          HAS
          BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

           

        

      

    

    
      	9.	
              Extraordinary Risks

            

    

    Purchaser
      acknowledges that when Products prepared from human blood or plasma are
      administered, the potential for the transmission of infectious agents (such
      as
      viruses or other infectious particles, and including infectious agents that
      may
      not have been discovered or characterized at this time) cannot be totally
      eliminated, despite stringent controls applied in the selection of blood and
      plasma donors and prescribed manufacturing standards used at blood and plasma
      collection centers, testing laboratories and fractionation facilities.
      Accordingly, Purchaser agrees that any claims resulting from or alleging such
      transmission of infectious agents are NOT intended to be covered by the
      indemnification provisions of Article 8.

    

    
      	10.	
              Confidentiality

            

    

    The
      Parties have signed a "Non-Disclosure Agreement" which has been executed on
      August 20, 2007, the provisions of which are incorporated by reference
      herein.

    

    
      	11.	
              Term
                and Termination of
                Agreement

            

    

    
      	
            	a)	
              Term
                of Agreement.
                The term of this Agreement shall commence on the Effective Date and
                shall
                continue in full force and effect until December 31, 2012 (the “Term”)
                unless terminated earlier in accordance with this Agreement. Articles
                6,
                7, 8, 9, 10, 11, 12, and 13 shall survive termination or expiration
                of
                this Agreement and remain in full force and effect to the degree
                necessary
                to permit their complete fulfillment or
                discharge.

            

    

    

    
      	
            	b)	
              Renewal.
                This Agreement shall be executed by mutual signatures of the Parties.
                This
                Agreement will be automatically extended for an additional two years
                unless it is cancelled by either of the parties in writing on or
                before
                December 31, 2011.

            

    

    

    
      	
            	c)	
              Termination
                for Cause.
                Either Party shall have the right to immediately terminate this Agreement
                in the event the other Party fails to perform any of its material
                obligations under this Agreement and such failure to perform is not
                cured
                within 30 days of written notice of such failure; provided, however
                correction of a breach by Purchaser for non-payment must be made
                within 30
                business days. Non payment shall not be considered a breach in the
                event
                of (1) a payment dispute, in good faith, in accordance with terms
                and
                conditions of Appendix 2 and/or (2) a breach by Seller of its warranty
                set
                forth in Section 7.1(i). The right of any Party to terminate this
                Agreement pursuant to this section shall not be affected in any way
                by its
                waiver or failure to take action with respect to any prior default.
                The
                Party not in default shall be entitled to terminate this Agreement
                without
                prejudice to any other rights conferred on it by this Agreement or
                under
                law or equity. A termination shall not relieve a Party from any
                obligations that survive termination or expiration of this Agreement.
                

            

    

    

    
      	
            	d)	
              Other
                Termination Provisions.
                Either Party may immediately terminate this Agreement if the other
                Party:
                (i) admits in writing that it is unable to pay its debts as they
                become
                due; (ii) starts a proceeding, or indicates its acquiescence to a
                proceeding started by another, relating to it under any bankruptcy,
                reorganization, rearrangement, insolvency, readjustment or debt,
                dissolution, liquidation or similar law; (iii) makes an assignment
                for the
                benefit of creditors; (iv) consents to the appointment of a receiver,
                trustee or liquidator for a substantial part of its property; (v)
                files,
                or has filed against it, a petition in bankruptcy, reorganization,
                rearrangement or insolvency which, if filed against it, is not dissolved
                or dismissed within ninety (90) days after filing; or (vi) had entered
                against it an order by a court of competent jurisdiction appointing
                a
                receiver, trustee or liquidator for it or a substantial part of its
                property, or approving its dissolution or termination, and if not
                consented to or acquiesced in by such Party, such order in not vacated
                or
                set aside or stayed within ninety (90)
                days.

            

    

    
      

        [*CONFIDENTIAL
          TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH
          SUCH
          PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK [***],
          HAS
          BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

      

    

     

    
      	12.	
              Remedies
                for Non-Performance

            

    

    
      	
            	a)	
              In
                the event Purchaser fails to timely pay any invoice for Products,
                except
                in the event of (i) a good faith payment dispute in accordance with
                Appendix 2 and/or (ii) a breach by Seller of its warranty set forth
                in
                Section 7.1(i),upon the expiration of the twenty (20) day cure period,
                Seller will have no further obligation to sell Products to Purchaser,
                and
                Purchaser will be liable to purchase from Seller all amounts of Products
                deliverable hereunder during the remaining Term of this Agreement,
                which
                amount shall be based on a per annum Product yield equal to either
                *
                * *
                liters or if greater, the volume of Products actually purchased by
                Purchaser during the *** period immediately prior to the termination
                date.
                

            

    

    

    
      	
            	b)	
              In
                the event the Seller or Purchaser is in breach of any provision,
                other
                than non-payment by Purchaser and such breach remains uncured following
                thirty (30) days’ written notice to the breaching party, the non-breaching
                party shall have the right to immediately terminate this agreement
                upon
                written notice to the breaching party. In addition, Purchaser or
                the
                Seller shall have the right to exercise any and all other rights
                and
                remedies available to it, whether arising at law or in equity or
                arising
                under this agreement. 

            

    

    

    
      	
            	c)	
              Intentionally
                omitted.

            

    

    

    
      	
            	d)	
              The
                rights and remedies available to Purchaser or the Seller under this
                agreement or any other agreement among the parties are cumulative
                and the
                exercise of any right or remedy shall not preclude or dismiss Purchaser's
                or the Seller's right to pursue any other or additional right or
                remedy,
                including, without limitation, any claim for damages. The failure
                to
                exercise any right or remedy in the event of any breach or default
                shall
                not constitute a waiver or adversely affect Purchaser's or the Seller's
                right to exercise any right or remedy in the future for the same
                or any
                other breach or default in the
                future.

            

    

    

    
      	
            	e)	
              Purchase
                of Closing Inventory. At
                the termination or expiration of this agreement, the Seller shall
                sell,
                and Purchaser is obligated to buy from the Seller, the Seller’s inventory
                of Products collected for Purchaser prior to the termination or expiration
                of this Agreement, provided such Products meet Seller’s warranties set
                forth in this Agreement, and such Products shall be purchased at
                the same
                price that Purchaser was paying Seller prior to the termination or
                expiration of the Agreement. The volumes of Product processed for
                Seller
                during the *** period prior to such termination or expiration date
                and the volume of Product deliverable upon the completion of processing
                of
                unprocessed Plasma collected by Seller prior to such termination
                or
                expiration date will constitute the Closing
                Inventory.

            

    

    
      

        [*CONFIDENTIAL
          TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH
          SUCH
          PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK [***],
          HAS
          BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

           

        

      

    

    
      	13.	
              Force
                Majeure

            

    

    
      	
            	a)	
              The
                performance of Purchaser and Seller hereunder is subject to all
                contingencies except those beyond the direct control of the non-performing
                Party, and neither Party shall be considered in default in the performance
                of its obligations hereunder (other than the obligation to make payment
                of
                money hereunder) or be liable in damages or otherwise for any failure
                or
                delay in performance which is due to: strikes, lockouts, concerted
                acts of
                workers or other industrial disturbances, fires, explosions, floods,
                or
                other natural catastrophes, civil disturbances, riots, or armed conflict,
                whether declared or undeclared, curtailment, shortage, or allocation,
                of
                normal sources of supply, including without limitation the manufacturing
                of Products by Sanquin, labor, materials, transportation, energy,
                or
                utilities, accidents, acts of God, sufferance of or voluntary compliance
                with acts of government or governmental regulation, whether or not
                valid,
                embargoes, quotas, seizures, restrictions, or actions of or rejections
                by
                inspectors or retentions of goods by customs authorities or any other
                similar, or dissimilar cause which is beyond the reasonable control
                of the
                non-performing party (“Force Majeure”). The Parties shall continue to
                perform this Agreement promptly following the cessation of the Force
                Majeure event.

            

    

    

    
      	
            	b)	
              In
                the event the establishment or product licenses under which the Plasma
                or
                Products are processed by Seller’s Plasma suppliers or Sanquin shall be
                revoked by the respective Government regulatory Authorities, this
                Agreement shall automatically terminate, without penalty to any Party
                and
                neither Party shall be further liable to the
                other.

            

    

    

    
      	
            	c)	
              In
                the event licenses of establishments, and/or Products, and/or Plasma,
                or
                either of them, under which the Products or Plasma are processed
                are
                suspended by the respective Government regulatory Authorities, the
                performance by both Parties under this Agreement shall be similarly
                suspended during the applicable appeal periods for Purchaser or Seller
                to
                contest such revocation or suspension. Any appeal of such suspension
                or
                revocation shall be at the option of the relevant Party. To the extent
                permitted by the respective Government regulatory Authorities, Purchaser
                may continue to utilize the Products from stocks in its possession
                or in
                transit.

            

    

    

    
      	14.	
              General
                Provisions

            

    

    
      	
            	a)	
              All
                costs, taxes, fees, and charges being accrued from this Agreement
                to a
                Party shall be covered by this Party itself.

            

    

    

    
      	
            	b)	
              This
                Agreement constitute the entire Agreement between the parties relating
                to
                the subject matter herein, and all prior proposals, discussions and
                writings by and between the parties and relating to the subject matter
                herein are superseded hereby, except for the Confidentiality Agreement
                previously entered into. None of the terms of this Agreement shall
                be
                deemed to be waived or amended by either Party unless such waiver
                or
                amendment is written and signed by the Parties, and recites specifically
                that it is a waiver of, or amendment to, the terms of this Agreement.
                

            

    

    

    
      	
            	d)	
              In
                the event any portion of this Agreement is declared void or invalid
                by a
                court or tribunal of competent jurisdiction, such provision shall
                be
                modified or severed from this Agreement, and the remaining provisions
                shall remain in effect, unless the effect of such severance would
                be to
                alter substantially this Agreement or the obligations of the parties,
                in
                which case this Agreement may be immediately terminated.
                

            

    

    
      

        [*CONFIDENTIAL
          TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH
          SUCH
          PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK [***],
          HAS
          BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

      

    

     

    
      	
            	e)	
              The
                relationship between Purchaser and Seller is, and during the term
                hereof
                shall be, that of buyer and seller. Seller is in no way the partner,
                legal
                representative or agent of Purchaser for any purpose whatsoever and
                has no
                right or authority to incur, assume, or create, in writing or otherwise,
                any warranty, liability or obligation of any kind, expressed or implied,
                in the name of, or on behalf of
                Purchaser.

            

    

     

    
      	
            	f)	
              All
                notices or other communications required or permitted to be given
                or made
                under this Agreement may be effected by personal delivery in writing,
                which shall then be deemed communicated the same day as the personal
                delivery thereof, or by registered or certified mail, postage prepaid,
                return receipt requested, which shall then be deemed communicated
                five (5)
                days from the mailing thereof. Notices shall be addressed to the
                parties
                at the address given at the top of this Agreement or at such address
                as
                the respective parties may hereafter designate to the other in
                writing.

            

    

     

    
      	
            	g)	
              This
                Agreement shall be governed by and construed in accordance with the
                substantive and procedural laws of the State of New York without
                giving
                effect to the principles of conflicts of law as applied in the State
                of
                New York.

            

    

    

    
      	
            	h)	
              This
                Agreement shall become effective only upon execution and acceptance
                by
                Purchaser and Seller. 

            

    

    

    
      	
            	i)	
              This
                Agreement may be executed simultaneously or in one or more counterparts,
                each of which shall be deemed an original, but all of which together
                shall
                constitute one and the same instrument.

            

    

    

    
      	
            	j)	
              The
                subject headings of the paragraphs and subparagraphs of this Agreement
                are
                included for the purposes of convenience only, and shall not affect
                the
                construction or interpretation of any of its
                provisions.

            

    

    

    
      	
            	k)	
              Except
                as otherwise set forth herein, this Agreement shall not be assignable
                by
                either Party hereto, either voluntarily or by operation of law or
                otherwise, without the prior written consent of the other Party.
                Any
                assignment without prior written consent is void. Notwithstanding
                the
                foregoing, Seller or Purchaser may assign or transfer this Agreement
                (i)
                to a successor entity, solely in the event of an acquisition,
                consolidation, asset sale or merger by or with another entity, upon
                ten
                (10) days prior written notice to Seller; or (ii) to an Affiliate
                of the
                Seller or Purchaser. 

            

    

    

    
      	
            	l)	
              This
                Agreement shall be binding upon and inure to the benefit of the parties
                hereto, their successors and assigns.

            

    

    

    
      	
            	m)	
              Nothing
                in this Agreement, whether expressed or implied, is intended to confer
                any
                right or remedies under or by reason of this Agreement of any persons
                other than the parties to it and their respective successors and
                assigns,
                nor is this Agreement intended to relieve or discharge the obligation
                or
                liability of any third persons to any party to this Agreement, nor
                shall
                any provision give any third persons any right of subrogation or
                action
                over or against any party to this Agreement.

            

    

    

    
      	
            	n)	
              Each
                Party represents and warrants that it has the right, legal capacity
                and
                authority to enter into this Agreement and that the execution of
                this
                Agreement has been duly authorized.

            

    

    
      

        [*CONFIDENTIAL
          TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH
          SUCH
          PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK [***],
          HAS
          BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have entered into this Agreement on the
      date
      first set forth above.

    

    
      	
              Biotest
                AG,

            	 	
              Lev
                Pharmaceuticals, Inc.

            
	
              Dreireich,
                Germany

            	 	
              New
                York, NY USA

            
	 	 	 
	
              /s/
                Dr. M. Reinecke

            	 	
              /s/
                Judson A. Cooper

            
	
              ppa.
                Dr. M. Reinecke

            	 	
              By:
                Judson A. Cooper

            
	 	 	
              Title:
                Chairman and Executive Vice President

            
	 	 	 
	
              Biotest
                AG,

            	 	 
	
              Dreieich,
                Germany

            	 	 
	 	 	 
	
              /s/
                Dr. G. Floß

            	 	 
	
              ppa.
                Dr. G. Floß

            	 	 

    

    

    
      	
              List
                of Appendices

            
	
              Appendix 1:     Specification
                of Products

            
	
              Appendix 2:     Price
                and Payment Terms

            

    

    
      
        

          [*CONFIDENTIAL
            TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT.
            EACH SUCH
            PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK
            [***], HAS
            BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

           

          
            
              
              

            

            
              11

              
                

              

            

            
              
              

            

          

        

      

    

    Appendix
      1 of the Intermediate Supply Agreement

     

    Specification
      of Products

    

    ***

    

    Specification
      of ***:

    

    Yields
      and quality according to specifications regulated between SANQUIN and BIOTEST
      in
      the Quality Agreement. *** is stored at temperatures below minus 25°C at all
      times and shipped by temperatures below minus 25°C. Plasma complies with the
      European monography "Human Plasma for Fractionation".

    

    ***

    

    Specification
      of ***:

    

    Yields
      and quality according to specifications regulated between SANQUIN and BIOTEST
      in
      the Quality Agreement. Plasma complies with the European monography

    "Human
      Plasma for Fractionation".

    
      

        [*CONFIDENTIAL
          TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH
          SUCH
          PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK [***],
          HAS
          BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

      

    

    Appendix
      2 of the Intermediate Supply Agreement

    

    Price
      and Payment Terms

    

    Price

    

    The
      price
      for the Products delivered from the Effective Date until December 31, 2010
      shall
      be *
      * *
      Euro per
      liter of Plasma processed by Sanquin for Lev. 

    

    The
      parties shall commence negotiations prior to October 31, 2010 in order to
      determine the purchase price for the Products for the subsequent two years
      during the term of this Agreement. It is hereby agreed that the purchase price
      per liter of processed Plasma for 2011 and 2012 will be in a range of
*
      * *
      Euro,
      plus or minus ***%. 

    

    All
      negotiations shall be undertaken in good faith by each Party with the purpose
      of
      and intent to agree to a fair and reasonable price reflective of the then
      current fair market price for Products. The Parties shall take into account
      in
      such negotiations the then current economic conditions and trends, within the
      human plasma industry and otherwise, market prices, cost indices and other
      applicable factors. The Parties agree that promptly upon the conclusion of
      the
      price review, they will document and execute an amendment to this Appendix
      2 in
      order to evidence the agreed upon Product Price for 2011 and 2012. 

    

    In
      the
      event that the costs incurred by the Seller in the collection, packaging,
      sampling, labeling, testing, processing or storage of plasma are increased
      to
      any extent above the cost in effect as of the date of this Agreement as a result
      of a modification by Purchaser of its specifications or pursuant to requirements
      of a Government Authority (or other regulatory body), then the purchase price
      per liter shall be increased to the extent properly allocable to the Products
      sold to Purchaser under this agreement, using generally accepted cost accounting
      principles. All prices are DDP (Incoterms 2000) warehouse Sanquin as determined
      by Sanquin.

     

    Payment

    

    Invoices
      must show the order number of BIOTEST's purchase order/s and shall be sent
      to
      "Zentraler Rechnungseingang" of BIOTEST (at the address set forth in the
      Agreement) in duplicate. 

    

    Payment
      is due 30 days from the date of invoice. All Payments shall be made in Euros
      in
      immediately available funds) wired into Seller’s designated bank
      account.

    

    Late
      Charges.
      If any
      undisputed amount due is not paid on or before the due date for any reason,
      LEV
      may accrue interest on such overdue amount at the lesser of the maximum amount
      allowed by law or eight percent (8%) per annum, from the date such undisputed
      amount
      was due
      until the date paid. 

    

    Payment
      Disputes.
      If
      BIOTEST in good faith believes that some portion of the amount invoiced was
      in
      error, BIOTEST will pay all undisputed amounts and will notify LEV in writing
      of
      its dispute within thirty (30) days of receipt of the invoice, specifying in
      reasonable detail, as defined herein, the nature of the dispute and the portion
      of the invoiced amount disputed. LEV will respond in
      writing to
      any
      notice of dispute within thirty (30) days, and within thirty
      (30) days of resolution between the Parties,
      BIOTEST
      will pay to LEV all amounts that were previously withheld and remain due per
      the
Parties’
      resolution.

     

    
      [*CONFIDENTIAL
        TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH
        SUCH
        PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK [***],
        HAS
        BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.]

       

      
        
          
          

        

        
          13

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