Exhibit 10.9.1(a)
BIG CITY BAGELS, INC.
00 Xxxxxxxx Xxxx
Xxxxxxxxxx, Xxx Xxxx 00000
As of June 11, 1997
Xxxx Xxxxxxx
000 Xxxxxxx Xxxxx
Xxxxxxxx, Xxx Xxxx 00000
Dear Xx. Xxxxxxx:
Reference is made to the Consolidation Agreement and
Promissory Note, dated April 30, 1996 among Big City Bagels, Inc. ("Company"),
Pumpernickel Partners, L.L.P. and you ("Promissory Note"). This will confirm
your agreement that you have permitted the Company to delay monthly payments to
you under the Promissory Note since April 1, 1997 and the Company may continue
to defer monthly payments to you as scheduled under the Promissory Note until
the earlier of (i) January 1, 1998 or (ii) such time as the Company has $750,000
in funds in bank accounts, money market funds and United States Treasury Bills.
The principal amount of any deferred payments shall continue to bear interest at
the rate of 10% per annum.
This will also confirm that you have agreed that until
December 31, 1997, you will loan to the Company, up to $100,000, in $10,000
increments each, within three business days after you have received notice from
the Company, which notice may only be given if the Company has less than $25,000
of funds in bank accounts, money market funds and United States Treasury Bills.
Any funds loaned to the Company pursuant to this paragraph will bear interest at
the rate of 12% per annum and shall be payable on the earlier of (i) June 30,
1998 or (ii) such time as the Company has $750,000 of funds in bank accounts,
money market funds and United States Treasury Bills. If and when the principal
amount of such loans by you to the Company exceeds $50,000, the Company will
secure your loan (which will be payable pari passu with any similar loans that
are made to the Company by Xxxxxxx Xxxxxxx and Xxxxxxx Xxxxxxx) with a first
priority security interest in the Company's equipment (subordinate only to
existing liens on such equipment) reflected in the fixed assets on the Company's
balance sheet. The provisions of the final four paragraphs of the Promissory
Note shall apply to these new loans as if they were restated herein in their
entirety.
Please confirm your agreement to the foregoing (which
confirmation and agreement shall serve as an amendment to the Promissory Note)
by countersigning a copy of this letter.
Very truly yours,
BIG CITY BAGELS, INC.
By:
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Xxxxxxx Xxxxxxx, Vice President
Accepted and agreed to:
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Xxxx Xxxxxxx
