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Exhibit 10.51    
    

 
 

AMENDMENT NO. 3 TO LOAN AGREEMENT    
    

        THIS
AMENDMENT NO. 3 TO LOAN AGREEMENT, dated as of February 1, 2003 (herein called this "Amendment"), is entered into between BET ASSOCIATES, L.P., a Delaware limited partnership
("Lender"), and NEW WORLD RESTAURANT GROUP, INC., a Delaware corporation ("Borrower"). Unless otherwise defined herein, capitalized terms used herein shall have the respective meanings ascribed
to such terms in the Loan Agreement herein referenced. 

W I T N E S S E T H:  

        WHEREAS, Borrower and Lender have heretofore entered into that certain Loan and Security Agreement, dated as of May 30, 2002, as amended by that certain
Amendment No. 1 to Loan and Security Agreement, dated as of July 18, 2002, and as further amended by that certain Amendment No. 2 to Loan and Security Agreement, dated as of
July 31, 2002 (herein called the "Loan Agreement"); and 

        WHEREAS,
Borrower and Lender now desire to further amend the Loan Agreement in certain respects as hereinafter provided. 

        NOW,
THEREFORE, in consideration of the premises and the mutual agreements herein contained, Borrower and Lender, intending to be legally bound, hereby agree as follows: 

        1.    Amendments to Loan Agreement.    The Loan Agreement is hereby amended as follows: 

        (a)    Amendment to Section 1.1.    Section 1.1 of the Loan Agreement is hereby amended by amending the
following definition in its entirety to read as follows: 

        "Interest Rate" means an interest rate per annum equal to eleven percent (11%) at any time prior to February 1, 2003 and thirteen
percent (13%) at any time on or after February 1, 2003. 

        (b)    Amendment to Section 2.6(b).    Section 2.6(b) of the Loan Agreement is hereby amended by
inserting the following at the end thereof: 

        "Such
interest rate shall be effective without notice or demand." 

        (c)    Amendment to Article 2.    Article 2 of the Loan Agreement is hereby amended by inserting the
following Section 2.12 immediately following Section 2.11 of the Loan Agreement: 

        "2.12    Extension Fee.    On the earlier of (a) June 1, 2003 and (b) the date of termination of
this Agreement, Borrower shall pay to Lender or to a designee or designees of Lender an aggregate fee of $187,500. In addition, in the event that all Obligations have not been paid in full on or prior
to June 1, 2003, on June 2, 2003, Borrower shall pay to Lender a fee of $112,500 in addition to the foregoing fee. All such fees shall be due and payable without notice or demand." 

        (d)    Amendment to Section 3.4.    Section 3.4 of the Loan Agreement is hereby amended by deleting the
first sentence thereof in its entirety and replacing it with the following: 

"This
Agreement shall become effective upon the execution and delivery hereof by Borrower and Lender and shall continue in full force and effect for a term ending on June 1, 2003 (the "Maturity
Date")." 

        2.    Reaffirmation of Credit Agreement.    This Amendment shall be deemed to be an amendment to the Loan Agreement,
and the Loan Agreement, as amended hereby, is hereby ratified, approved and confirmed in each and every respect. All references to the Loan Agreement in any other document, instrument, agreement or
writing, including all references to the "Agreement" in the Loan Agreement, 

 

shall
hereafter be deemed to refer to the Loan Agreement as amended hereby, and this Amendment shall be deemed a Loan Document. 

        3.    Governing Law, Forum Selection, Consent to Jurisdiction, etc.    

        (a)   THIS
AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. 

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

        (c)   BORROWER
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. 

        (d)   EACH
PARTY TO THIS AMENDMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 12 OF THE LOAN
AGREEMENT. NOTHING IN THIS AMENDMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AMENDMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. 

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

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        5.    Severability, etc.    All obligations of the parties hereto expressed herein shall be in addition to and not in
limitation of those provided by applicable law. Whenever possible each provision of this Amendment shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Amendment. 

        6.    Headings.    Article and Section headings used herein are for convenience of reference only, are not part of
this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment. 

        7.    Counterparts.    This Amendment may be executed in any number of counterparts, all of which taken together shall
constitute one and the same instrument, and any party hereto may execute this Amendment by signing a counterpart. 

        8.    Entire Agreement.    The Loan Agreement, this Amendment, the Loan Documents, and any separate letter agreements
with respect to fees payable to, or other matters between Borrower and Lender constitute, on and as of the date hereof, the entire agreement of the parties hereto with respect to the subject matter
hereof, and all other prior or contemporaneous understandings or agreements, if any, whether written or oral, among or between the parties hereto with respect to the overall transaction are hereby
superseded in their entirety. 

[Remainder
of Page Intentionally Blank] 

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

	 	 	NEW WORLD RESTAURANT GROUP, INC.,
	

 	
 	

By:	

 
	 	 	 	/s/  ANTHONY D. WEDO      
 Name:

Title:
	

 	
 	

BET ASSOCIATES, L.P.,
	

 	
 	

By:	

 
	 	 	 	/s/  BRUCE E. TOLL      
 Name:

Title:

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Exhibit 10.51

AMENDMENT NO. 3 TO LOAN AGREEMENTQuickLinks
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Exhibit 10.52    
    

 
 

AGREEMENT
  
    October 10, 2002    
    

        The parties to this agreement are New World Restaurant Group, Inc. (formerly known as New World Coffee- Manhattan Bagel, Inc.) (the "Company"), BET
Associates, L.P. ("BET"), Brookwood New World Investors, L.L.C. ("Brookwood") and Halpern Denny III, L.P. ("Halpern Denny"). 

        Reference
is made to the letter agreement dated June 19, 2001 by and among the Company, BET, Brookwood and Halpern Denny, which among other things, amended subsection f(5) of the
Warrants issued pursuant to (i) the Exchange Agreement dated as of January 18, 2001 among Brookwood, BET and the Company (the "Exchange Agreement"), (ii) the Series F Stock
and Warrant Purchase Agreement dated as of January 18, 2001 (the "First Series F Purchase Agreement") and (iii) the Second Series F Stock and Warrant Purchase Agreement
between the Company and Halpern Denny (the "Second Series F Purchase Agreement"). The parties hereto acknowledge and agree that the amendment to section f(5) of the Warrants did not
correctly reflect the intention of the parties. 

        The
parties hereto agree that section f(5) of the Warrants issued pursuant to the Exchange Agreement, First Series F Purchase Agreement and Second Series F Purchase
Agreement shall be amended in its entirety to read as follows: 

"On
June 30, 2002, the number of shares specified in this Warrant shall be increased by the Additional Warrant Shares (where X is the number of Additional Warrant Shares) derived from the
following equation: 

	 	 	the number of shares of Common Stock, which could be purchased hereunder or have already been purchased hereunder immediately after the issuance of the Jefferies Warrants (the "Existing Warrant Shares")	 	 	 	X + the Existing Warrant Shares
	 	 	
	 	=	 	

	 	 	the Fully-Diluted Common Stock of the Company immediately prior to the issuance of the Jefferies Warrants (but excluding 5,369,084 shares)	 	 	 	the Fully-Diluted Common Stock of the Company immediately after the issuance of the Jefferies Warrants

In
addition, on June 30, 2002, if Additional Jefferies Warrants have been issued prior to such date: (i) the number of Additional Warrant Shares (where X is the number of Additional
Warrant Shares) shall be calculated in accordance with the following equation for each such issuance and 

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(ii) the
number of shares specified in this Warrant shall be further increased by the cumulative amount of Additional Warrant Shares calculated pursuant to clause (i). 

	 	 	the number of shares of Common Stock, which could be purchased hereunder or have already been purchased hereunder immediately after the issuance the Additional Jefferies Warrants (the "Existing Warrant Shares")
	 	 	 	X + the Existing Warrant Shares
	 	 	
	 	=	 	

	 	 	the Fully-Diluted Common Stock of the Company immediately prior to the issuance of the Additional Jefferies Warrants	 	 	 	the Fully-Diluted Common Stock of the Company immediately after the issuance of the Additional Jefferies Warrants (including any additional shares of Common Stock issuable pursuant to the terms of other warrants of the
Company similar to this Warrant)

On
any date after June 30, 2002, if any Additional Jefferies Warrants (as defined below) are issued, the number of shares specified in this Warrant shall be adjusted to that number of shares of
Common Stock equal to the Existing Warrant Shares plus the Additional Warrant Shares (where X is the number of Additional Warrant Shares derived from
the following equation): 

	 	 	the number of shares of Common Stock, which could be purchased hereunder or have already been purchased hereunder immediately after the issuance the Additional Jefferies Warrants (the "Existing Warrant Shares")
	 	 	 	X + the Existing Warrant Shares
	 	 	
	 	=	 	

	 	 	the Fully-Diluted Common Stock of the Company immediately prior to the issuance of the Additional Jefferies Warrants	 	 	 	the Fully-Diluted Common Stock of the Company immediately after the issuance of the Additional Jefferies Warrants (including the Additional Warrant Shares and any additional shares of Common Stock issuable pursuant to the
terms of other warrants of the Company similar to this Warrant)

Notwithstanding
the foregoing, in the event that any shares of Series F Preferred Stock of the Corporation are redeemed as of the date of the applicable issuance of Additional Jefferies
Warrants (other than through the issuance of the Notes (as provided in the Certificate of Designation) if such Notes have not been paid in full), then the Additional Warrant Shares derived on that
date from the equation above shall be reduced to an amount equal to the product of (x) the Additional Warrant Shares multiplied by (y) the quotient of (i) the number of shares of
Series F Preferred Stock outstanding as of that date divided by (ii) the number of shares of Series F Preferred Stock outstanding as of June 30, 2001. 

For
purposes of this subsection (5), the "Fully-Diluted Common Stock of the Company" shall include all outstanding shares of Common Stock, and all shares of Common Stock issuable pursuant to all
outstanding options, warrants or convertible securities (including convertible debt) of the Company but not including any warrants or options with a strike price greater than $3.00 

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per
share. For purposes of this subsection (5), the "Jefferies Warrants" are the warrants, dated as of June 19, 2001, to purchase Common Stock of the Company issued to the holders of the Senior
Secured Increasing Rate Notes due 2003. The "Additional Jefferies Warrants" are any additional warrants issued pursuant to the Jefferies Warrants because the Company has not repaid the Senior Secured
Increasing Rate Notes due 2003. In the event that this Warrant shall be exercised in full prior to June 30, 2002 or any date thereafter in which Additional Jefferies Warrants are issued, a new
Warrant representing the amount of the adjustment pursuant to this subsection (5) shall be issued upon the occurrence of such adjustment and such Warrant shall be substantially in the form of
this Warrant. The preceding provision shall survive the exercise of this Warrant." 

        The
parties agree that the terms and provisions of this agreement will apply retroactively to the Warrants that were issued pursuant to the terms of the Exchange Agreement, the First
Series F Purchase Agreement and the Second Series F Purchase Agreement. In order to give effect to the foregoing, the parties will return any Additional Warrant Shares that were issued
to them by the Company pursuant to section f(5) of the Warrants. Upon receipt the Company will cancel such Additional Warrant Shares and will issue Additional Warrant Shares to the parties
calculated in accordance with section f(5) of the Warrants, as amended by this agreement. 

	 	 	NEW WORLD RESTAURANT GROUP, INC.
	

 	
 	

By:	

/s/  ANTHONY D. WEDO          
 Anthony D. Wedo

Chief Executive Officer	
 	

 
	

 	
 	
BET ASSOCIATES, L.P.
	

 	
 	

By:	

/s/  LEONARD TANNENBAUM          
 Name: Leonard Tannenbaum

Title:	
 	

 
	

 	
 	
BROOKWOOD NEW WORLD INVESTORS, LLC
	

 	
 	

By:	

/s/  EVE TRKLA          
 Name: Eve Trkla

Title:	
 	

 
	

 	
 	
HALPERN DENNY III, L.P.
	

 	
 	

By:	

/s/  WILLIAM NIMMO          
 Name: William Nimmo

Title:	
 	

 

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Exhibit 10.52

AGREEMENT October 10, 2002

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