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Exhibit 10.37

SECOND AMENDMENT AGREEMENT

        SECOND AMENDMENT AGREEMENT, dated as of February 9, 2004 (this
"Agreement") to the Loan and Security Agreement, dated as of July 8, 2003 (as
amended, supplemented or modified from time to time in accordance with its
terms, the "Loan Agreement"), among the financial institutions named therein
(the "Lenders"), AmSouth Bank, as agent (in such capacity, together with any
successor in such capacity, the "Agent"), AmSouth Capital Corp., as
administrative agent (in such capacity, together with any successor in such
capacity, the "Administrative Agent"), New World Restaurant Group, Inc., a
Delaware corporation ("New World"), Manhattan Bagel Company, Inc., a New Jersey
corporation ("Manhattan Bagel"), Chesapeake Bagel Franchise Corp., a New Jersey
corporation ("Chesapeake Bagel"), Willoughby's Incorporated, a Connecticut
corporation ("Willoughby's"), Einstein and Noah Corp., a Delaware corporation
("Einstein"), Einstein/Noah Bagel Partners, Inc., a California corporation
("Einstein/Noah") and I. & J. Bagel, Inc., a California corporation ("I&J"; New
World, Manhattan Bagel, Chesapeake Bagel, Willoughby's, Einstein, Einstein/Noah
and I&J, each a "Borrower," and, collectively, the "Borrowers"), and the
Guarantors named therein. Terms used herein and not otherwise defined herein
shall have the meanings attributed thereto in the Loan Agreement.

        WHEREAS, the Loan Parties have requested that the Lenders amend a
certain provision of the Loan Agreement.

        NOW, THEREFORE, for valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, and subject to the fulfillment of the
conditions set forth below, the parties hereto agree as follows:

        1.    Amendments.    Effective as of the date all of the conditions to
effectiveness set forth in Section 3 of this Agreement are satisfied (the
"Effective Date") the definition of "Unused Letter of Credit Subfacility" is
hereby amended by deleting the number "2,500,000" appearing therein and
substituting therefor the number "5,000,000".

        2.    Representations and Warranties of the Borrowers.    Each Loan
Party hereby represents and warrants as of the date hereof as follows (which
representations and warranties shall survive the execution and delivery of this
Agreement):

        a.     All representations and warranties made by such Loan Party in
Article VIII of the Loan Agreement are true and correct in all material respects
as of the date hereof with the same force and effect as if made on such date
(except to the extent that any such representation or warranty relates expressly
to an earlier date), except that such Loan Party represents (i) with respect to
Sections 8.7 and 8.9 of the Loan Agreement, the capitalization and Debt of such
Loan Party is as set forth on the Consolidated Balance Sheets of New World
Restaurant Group, Inc. (page 3 of the Form 10-Q filed with the Securities and
Exchange Commission for the quarterly period ended September 30, 2003) attached
hereto as Annex A and (ii) with respect to Section 8.14 of the Loan Agreement,
there has not been a Material Adverse Effect since the Closing Date.

        b.     Such Loan Party has the requisite power to execute, deliver and
carry out the terms and provisions of this Agreement.

        c.     This Agreement has been duly executed and delivered and
constitutes the legal, valid and binding obligation of such Loan Party, and is
enforceable in accordance with its terms subject (i) as to enforcement of
remedies, to applicable bankruptcy, insolvency, reorganization, moratorium and
other similar laws affecting the enforcement of creditors' rights generally,
from time to time in effect, and (ii) to general principles of equity.

        d.     No event has occurred and is continuing which constitutes or
would constitute a Material Adverse Effect, Default or Event of Default under
the Loan Agreement.

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        e.     No Loan Party has executed and delivered or otherwise granted any
mortgage in respect of the Major Premises or any other Real Property (owned or
leased) in favor of the holders of the Senior Secured Debt.

        3.    Conditions Precedent.    Notwithstanding any term or provision of
this Agreement to the contrary, Section 1 hereof shall not become effective
until executed counterparts of this Agreement have been delivered by each party
hereto to the Agent and the Agent shall have received such other approvals,
opinions or documents as the Agent may reasonably request.

        4.    Continued Effectiveness.    Nothing herein shall be deemed to be a
waiver or other modification of any covenant or agreement contained in, or any
Default or Event of Default under, the Loan Agreement or any other Loan
Document, and each Loan Party hereby agrees that, as amended hereby, all
covenants and other provisions contained in the Loan Agreement are hereby
ratified and confirmed in all respects and that it has no defense, offset,
claim, counterclaim or recoupment with respect to any of its obligations or
liabilities with respect to the Loan Agreement or the other Loan Documents.

        5.    Counterparts.    This Agreement may be executed in two or more
counterparts, each of which shall be an original, and all of which, taken
together, shall constitute a single instrument. Delivery of an executed
counterpart of a signature page to this Agreement by telecopier shall be
effective as delivery of a manually executed counterpart of this Agreement.

        6.     THIS AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES THEREOF
THAT WOULD CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION.

[Signature pages follow]

2

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

    "BORROWERS" AND "GUARANTORS"
 
 
NEW WORLD RESTAURANT GROUP, INC.
 
 
By
 
/s/  RICHARD P. DUTKIEWICZ      

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        Name:   Richard P. Dutkiewicz         Title:   Chief Financial Officer
 
 
MANHATTAN BAGEL COMPANY, INC.
 
 
By:
 
/s/  RICHARD P. DUTKIEWICZ      

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        Name:   Richard P. Dutkiewicz         Title:   Assistant Secretary
 
 
CHESAPEAKE BAGEL FRANCHISE CORP.
 
 
By:
 
/s/  RICHARD P. DUTKIEWICZ      

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        Name:   Richard P. Dutkiewicz         Title:   Assistant Secretary
 
 
WILLOUGHBY'S INCORPORATED
 
 
By:
 
/s/  RICHARD P. DUTKIEWICZ      

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        Name:   Richard P. Dutkiewicz         Title:   Assistant Secretary
 
 
EINSTEIN AND NOAH CORP.
 
 
By:
 
/s/  RICHARD P. DUTKIEWICZ      

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        Name:   Richard P. Dutkiewicz         Title:   Assistant Secretary
 
 
EINSTEIN/NOAH BAGEL PARTNERS, INC.
 
 
By:
 
/s/  RICHARD P. DUTKIEWICZ      

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        Name:   Richard P. Dutkiewicz         Title:   Assistant Secretary
 
 
I. & J. BAGEL, INC.
 
 
By:
 
/s/  RICHARD P. DUTKIEWICZ      

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        Name:   Richard P. Dutkiewicz         Title:   Assistant Secretary
 
 
"AGENT"
 
 
AMSOUTH BANK, as Agent
 
 
By:
 
/s/  BRUCE KASPER      

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        Name:   Bruce Kasper         Title:   Attorney in Fact
 
 
"ADMINISTRATIVE AGENT"
 
 
AMSOUTH CAPITAL CORP.,
as the Administrative Agent
 
 
By:
 
/s/  BRUCE KASPER      

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        Name:   Bruce Kasper         Title:   Attorney in Fact
 
 
"LENDERS"
 
 
AMSOUTH BANK, as a Lender
 
 
By:
 
/s/  BRUCE KASPER      

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        Name:   Bruce Kasper         Title:   Attorney in Fact

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SECOND AMENDMENT AGREEMENT