Document:

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                                                                  EXHIBIT 10.27

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
EXERCISABLE HAVE BEEN REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS THEREUNDER AND IN
COMPLIANCE WITH APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.

                           INTERNET LAW LIBRARY, INC.

                                     WARRANT

Warrant No. 7                                           Dated: February 22, 2001

         Internet Law Library, Inc., a Delaware corporation (the "Company"),
hereby certifies that, for value received, James W. Christian or his registered
assigns ("Holder"), is entitled, subject to the terms set forth below, to
purchase from the Company up to a total of 300,000 shares of common stock, $.001
par value per share (the "Common Stock"), of the Company (each such share, a
"Warrant Share" and all such shares, the "Warrant Shares") at an exercise price
equal to $0.15 per share, at any time and from time to time from and after the
date hereof and through and including February 22, 2006 (the "Expiration Date"),
and subject to the following terms and conditions:

                  1.       REGISTRATION OF WARRANT. The Company shall register
this Warrant upon records to be maintained by the Company for that purpose (the
"Warrant Register"), in the name of the record Holder hereof from time to time.
The Company may deem and treat the registered Holder of this Warrant as the
absolute owner hereof for the purpose of any exercise hereof or any distribution
to the Holder, and for all other purposes, and the Company shall not be affected
by notice to the contrary.

                  2.       REGISTRATION OF TRANSFERS AND EXCHANGES

                           (a)      The Company shall register the transfer of
any portion of this Warrant in the Warrant Register, upon surrender of this
Warrant, with the Form of Assignment attached hereto duly completed and signed,
to the Transfer Agent or to the Company at its address for notice set forth in
Section 12. Upon any such registration or transfer, a new warrant to purchase
Common Stock, in substantially the form of this Warrant (any such new warrant, a

Warrant No. 7, p. 34

<PAGE>

"New Warrant"), evidencing the portion of this Warrant so transferred shall be
issued to the transferee and a New Warrant evidencing the remaining portion of
this Warrant not so transferred, if any, shall be issued to the transferring
Holder. The acceptance of the New Warrant by the transferee thereof shall be
deemed the acceptance of such transferee of all of the rights and obligations of
a holder of a Warrant.

                           (b)      This Warrant is exchangeable, upon the
surrender hereof by the Holder to the office of the Company at its address for
notice set forth in Section 12 for one or more New Warrants, evidencing in the
aggregate the right to purchase the number of Warrant Shares which may then be
purchased hereunder. Any such New Warrant will be dated the date of such
exchange.

                  3.       DURATION AND EXERCISE OF WARRANTS

                           (a)      This Warrant shall be exercisable by the
registered Holder on any business day before 5:30 P.M., Central time, at any
time and from time to time on or after the date hereof to and including the
Expiration Date. At 5:30 P.M., Central time, time on the Expiration Date, the
portion of this Warrant not exercised prior thereto shall be and become void and
of no value. Prior to the Expiration Date, the Company may not call or otherwise
redeem this Warrant without the prior written consent of the Holder.

                           (b)      Upon delivery of a duly completed and signed
Form of Election to Purchase, which is attached hereto, to the Company at its
address for notice set forth in Section 12 and upon payment of the Exercise
Price multiplied by the number of Warrant Shares that the Holder intends to
purchase hereunder, in the manner provided hereunder, all as specified by the
Holder in the Form of Election to Purchase, the Company shall promptly (but in
no event later than 3 business days after the Date of Exercise (as defined
herein)) issue or cause to be issued and cause to be delivered to or upon the
written order of the Holder and in such name or names as the Holder may
designate, a certificate for the Warrant Shares issuable upon such exercise,
free of restrictive legends except (i) either in the event that a registration
statement covering the resale of the Warrant Shares and naming the Holder as a
selling stockholder thereunder is not then effective or the Warrant Shares are
not freely transferable without volume restrictions pursuant to Rule 144(k)
promulgated under the Securities Act of 1933, as amended (the "Securities Act"),
or (ii) if this Warrant shall have been issued pursuant to a written agreement
between the original Holder and the Company, as required by such agreement. Any
person so designated by the Holder to receive Warrant Shares shall be deemed to
have become holder of record of such Warrant Shares as of the Date of Exercise
of this Warrant. The Company shall, upon request of the Holder, if available,
use its best efforts to deliver Warrant Shares hereunder electronically through
the Depository Trust Corporation or another established clearing corporation
performing similar functions.

                           A "Date of Exercise" means the date on which the
Company shall have received (i) the Form of Election to Purchase attached hereto
(or attached to such New Warrant) appropriately completed and duly signed, and
(ii) payment of the Exercise Price for the number of Warrant Shares so indicated
by the holder hereof to be purchased.

Warrant No. 7, p. 35

<PAGE>

                           (c)      This Warrant shall be exercisable, either in
its entirety or, from time to time, for a portion of the number of Warrant
Shares. If less than all of the Warrant Shares which may be purchased under this
Warrant are exercised at any time, the Company shall issue, or cause to be
issued, at its expense, a New Warrant evidencing the right to purchase the
remaining number of Warrant Shares for which no exercise has been evidenced by
this Warrant.

                  4.       PAYMENT OF TAXES. The Company will pay all
documentary stamp taxes attributable to the issuance of Warrant Shares upon the
exercise of this Warrant; provided, however, that the Company shall not be
required to pay any tax which may be payable in respect of any transfer involved
in the registration of any certificates for Warrant Shares or Warrants in a name
other than that of the Holder. The Holder is responsible for all other tax
liability that may arise as a result of holding or transferring this Warrant or
receiving Warrant Shares upon exercise hereof.

                  5.       REPLACEMENT OF WARRANT. If this Warrant is mutilated,
lost, stolen, or destroyed, the Company shall issue or cause to be issued in
exchange and substitution for and upon cancellation hereof, or in lieu of and
substitution for this Warrant, a New Warrant, but only upon receipt of evidence
reasonably satisfactory to the Company (including without limitation, an
affidavit of such Holder) of such loss, theft or destruction and indemnity, if
requested, satisfactory to it. Applicants for a New Warrant under such
circumstances shall also comply with such other reasonable regulations and
procedures and pay such other reasonable charges as the Company may prescribe.

                  6.       RESERVATION OF WARRANT SHARES. The Company covenants
that it will at all times reserve and keep available out of the aggregate of its
authorized but unissued Common Stock, solely for the purpose of enabling it to
issue Warrant Shares upon exercise of this Warrant as herein provided, the
number of Warrant Shares which are then issuable and deliverable upon the
exercise of this entire Warrant, free from preemptive rights or any other actual
contingent purchase rights of persons other than the Holder (taking into account
the adjustments and restrictions of Section 8). The Company covenants that all
Warrant Shares that shall be so issuable and deliverable shall, upon issuance
and the payment of the applicable Exercise Price in accordance with the terms
hereof, be duly and validly authorized, issued and fully paid and nonassessable.

                  7.       CERTAIN ADJUSTMENTS. The Exercise Price and number of
Warrant Shares issuable upon exercise of this Warrant are subject to adjustment
from time to time as set forth in this Section 8. Upon each such adjustment of
the Exercise Price pursuant to this Section 8, the Holder shall thereafter prior
to the Expiration Date be entitled to purchase, at the Exercise Price resulting
from such adjustment, the number of Warrant Shares obtained by multiplying the
Exercise Price in effect immediately prior to such adjustment by the number of
Warrant Shares issuable upon exercise of this Warrant immediately prior to such
adjustment and dividing the product thereof by the Exercise Price resulting from
such adjustment.

Warrant No. 7, p. 36

<PAGE>

                           (a)      If the Company, at any time while this
Warrant is outstanding, (i) shall pay a stock dividend (except scheduled
dividends paid on outstanding preferred stock as of the date hereof which
contain a stated dividend rate) or otherwise make a distribution or
distributions on shares of its Common Stock or on any other class of capital
stock payable in shares of Common Stock, (ii) subdivide outstanding shares of
Common Stock into a larger number of shares, or (iii) combine outstanding shares
of Common Stock into a smaller number of shares, the Exercise Price shall be
multiplied by a fraction of which the numerator shall be the number of shares of
Common Stock (excluding treasury shares, if any) outstanding before such event
and of which the denominator shall be the number of shares of Common Stock
(excluding treasury shares, if any) outstanding after such event. Any adjustment
made pursuant to this Section shall become effective immediately after the
record date for the determination of stockholders entitled to receive such
dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision or combination, and shall apply to
successive subdivisions and combinations.

                           (b)      In case of any reclassification of the
Common Stock or any compulsory share exchange pursuant to which the Common Stock
is converted into other securities, cash or property, then the Holder shall have
the right thereafter to exercise this Warrant only into the shares of stock and
other securities and property receivable upon or deemed to be held by holders of
Common Stock following such reclassification or share exchange, and the Holder
shall be entitled upon such event to receive such amount of securities or
property equal to the amount of Warrant Shares such Holder would have been
entitled to had such Holder exercised this Warrant immediately prior to such
reclassification or share exchange. The terms of any such reclassification or
share exchange shall include such terms so as to continue to give to the Holder
the right to receive the securities or property set forth in this Section 8(b)
upon any exercise following any such reclassification or share exchange.

                           (c)      If the Company, at any time while this
Warrant is outstanding, shall distribute to all holders of Common Stock (and not
to holders of this Warrant) evidences of its indebtedness or assets or rights or
warrants to subscribe for or purchase any security (excluding those referred to
in Sections 8(a), (b) and (d)), then in each such case the Exercise Price shall
be determined by multiplying the Exercise Price in effect immediately prior to
the record date fixed for determination of stockholders entitled to receive such
distribution by a fraction of which the denominator shall be the Exercise Price
determined as of the record date mentioned above, and of which the numerator
shall be such Exercise Price on such record date less the then fair market value
at such record date of the portion of such assets or evidence of indebtedness so
distributed applicable to one outstanding share of Common Stock as determined by
the Company's independent certified public accountants that regularly examines
the financial statements of the Company (an "Appraiser").

                           (d)      In case of any (1) merger or consolidation
of the Company with or into another Person, or (2) sale by the Company of more
than one-half of the assets of the Company (on a book value basis) in one or a
series of related transactions, the Holder shall have the right thereafter to
exercise this Warrant for the shares of stock and other securities, cash and
property receivable upon or deemed to be held by holders of Common Stock
following such

Warrant No. 7, p. 37

<PAGE>

merger, consolidation or sale, and the Holder shall be entitled upon such
event or series of related events to receive such amount of securities, cash
and property as the Common Stock for which this Warrant could have been
exercised immediately prior to such merger, consolidation or sales would have
been entitled. The terms of any such merger, sale or consolidation shall
include such terms so as continue to give the Holder the right to receive the
securities, cash and property set forth in this Section upon any conversion
or redemption following such event. This provision shall similarly apply to
successive such events.

                           (e)      For the purposes of this Section 8, the
following clauses shall also be applicable:

                                    (i) RECORD DATE. In case the Company shall
take a record of the holders of its Common Stock for the purpose of entitling
them (A) to receive a dividend or other distribution payable in Common Stock or
in securities convertible or exchangeable into shares of Common Stock, or (B) to
subscribe for or purchase Common Stock or securities convertible or exchangeable
into shares of Common Stock, then such record date shall be deemed to be the
date of the issue or sale of the shares of Common Stock deemed to have been
issued or sold upon the declaration of such dividend or the making of such other
distribution or the date of the granting of such right of subscription or
purchase, as the case may be.

                                    (ii)     TREASURY SHARES. The number of
shares of Common Stock outstanding at any given time shall not include shares
owned or held by or for the account of the Company, and the disposition of any
such shares shall be considered an issue or sale of Common Stock.

                           (f)      All calculations under this Section 8 shall
be made to the nearest cent or the nearest 1/100th of a share, as the case may
be.

                           (g)      If:

                                    (i)      the Company shall declare a
                                             dividend (or any other
                                             distribution) on its Common Stock;
                                             or

                                    (ii)     the Company shall declare a special
                                             nonrecurring cash dividend on or a
                                             redemption of its Common Stock; or

                                    (iii)    the Company shall authorize the
                                             granting to all holders of the
                                             Common Stock rights or warrants to
                                             subscribe for or purchase any
                                             shares of capital stock of any
                                             class or of any rights; or

                                    (iv)     the approval of any stockholders of
                                             the Company shall be required in
                                             connection with any
                                             reclassification of the Common
                                             Stock, any

Warrant No. 7, p. 38

<PAGE>

                                             consolidation or merger to which
                                             the Company is a party, any sale
                                             or transfer of all or
                                             substantially all of the assets of
                                             the Company, or any compulsory
                                             share exchange whereby the Common
                                             Stock is converted into other
                                             securities, cash or property; or

                                    (v)      the Company shall authorize the
                                             voluntary dissolution, liquidation
                                             or winding up of the affairs of the
                                             Company,

then the Company shall cause to be mailed to each Holder at their last addresses
as they shall appear upon the Warrant Register, at least 20 calendar days prior
to the applicable record or effective date hereinafter specified, a notice
stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution, redemption, rights or warrants, or if a record is not to
be taken, the date as of which the holders of Common Stock of record to be
entitled to such dividend, distributions, redemption, rights or warrants are to
be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or
close, and the date as of which it is expected that holders of Common Stock of
record shall be entitled to exchange their shares of Common Stock for
securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer, share exchange, dissolution, liquidation
or winding up; PROVIDED, HOWEVER, that the failure to mail such notice or any
defect therein or in the mailing thereof shall not affect the validity of the
corporate action required to be specified in such notice.

         8.       PAYMENT OF EXERCISE PRICE. The Holder shall pay the Exercise
Price in one of the following manners:

                  (a)      CASH EXERCISE. The Holder may deliver immediately
available funds; or
                  (b)      Holder may give credit to the Company against any
amounts owed by Company to Holder.

                  9.       FRACTIONAL SHARES. The Company shall not be required
to issue or cause to be issued fractional Warrant Shares on the exercise of this
Warrant. The number of full Warrant Shares which shall be issuable upon the
exercise of this Warrant shall be computed on the basis of the aggregate number
of Warrant Shares purchasable on exercise of this Warrant so presented. If any
fraction of a Warrant Share would, except for the provisions of this Section, be
issuable on the exercise of this Warrant, the Company shall pay an amount in
cash equal to the Exercise Price multiplied by such fraction.

                  10.      NOTICES. Any and all notices or other communications
or deliveries hereunder shall be in writing and shall be deemed given and
effective on the earliest of (i) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile telephone number
specified in this Section prior to 5:30 p.m. Central time on a business day,
(ii) the business day after the date of transmission, if such notice or
communication is delivered via

Warrant No. 7, p. 39

<PAGE>

facsimile at the facsimile telephone number specified in this Section later
than 5:30 p.m. Central time on any date and earlier than 11:59 p.m. Central
time on such date, (iii) the business day following the date of mailing, if
sent by nationally recognized overnight courier service, or (iv) upon actual
receipt by the party to whom such notice is required to be given. The
addresses for such communications shall be: (i) if to the Company, to 4301
Windfern Road, Suite 2000, Houston, Texas 77041 or facsimile number (713)
462-7519, attention Hunter M.A. Carr, or (ii) if to the Holder, to the Holder
at the address or facsimile number appearing on the Warrant Register or such
other address or facsimile number as the Holder may provide to the Company in
accordance with this Section.

                  11.      WARRANT AGENT. The Company shall serve as warrant
agent under this Warrant. Upon thirty days' notice to the Holder, the Company
may appoint a new warrant agent. Any corporation into which the Company or any
new warrant agent may be merged or any corporation resulting from any
consolidation to which the Company or any new warrant agent shall be a party or
any corporation to which the Company or any new warrant agent transfers
substantially all of its corporate trust or shareholders services business shall
be a successor warrant agent under this Warrant without any further act. Any
such successor warrant agent shall promptly cause notice of its succession as
warrant agent to be mailed (by first class mail, postage prepaid) to the Holder
at the Holder's last address as shown on the Warrant Register.

                  12.      MISCELLANEOUS

                           (a)      This Warrant shall be binding on and inure
to the benefit of the parties hereto and their respective successors and
assigns. This Warrant may be amended only in writing signed by the Company and
the Holder and their successors and assigns.

                           (b)      Subject to Section 14(a), above, nothing in
this Warrant shall be construed to give to any person or corporation other than
the Company and the Holder any legal or equitable right, remedy or cause under
this Warrant. This Warrant shall inure to the sole and exclusive benefit of the
Company and the Holder.

                           (c)      The corporate laws of the State of Delaware
shall govern all issues concerning the relative rights of the Company and its
stockholders. All other questions concerning the construction, validity,
enforcement, and interpretation of this Warrant shall be governed by and
construed and enforced in accordance with the internal laws of the State of
Texas, without regard to the principles of conflicts of law thereof. The Company
and the Holder hereby irrevocably submit to the exclusive jurisdiction of the
state and federal courts sitting in the City of Houston, Harris County, Texas,
for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, or that
such suit, action or proceeding is improper. Each of the Company and the Holder
hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by receiving a copy thereof
sent to the Company at the address in effect for notices to it under this
instrument and agrees that such service shall constitute good and sufficient
service

Warrant No. 7, p. 40

<PAGE>

of process and notice thereof. Nothing contained herein shall be deemed to
limit in any way any right to serve process in any manner permitted by law.

                           (d)      The headings herein are for convenience
only, do not constitute a part of this Warrant and shall not be deemed to limit
or affect any of the provisions hereof.

                           (e)      In case any one or more of the provisions of
this Warrant shall be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Warrant shall not
in any way be affected or impaired thereby and the parties will attempt in good
faith to agree upon a valid and enforceable provision which shall be a
commercially reasonable substitute therefor, and upon so agreeing, shall
incorporate such substitute provision in this Warrant.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,
                             SIGNATURE PAGE FOLLOWS]

Warrant No. 7, p. 41

<PAGE>

                  IN WITNESS WHEREOF, the Company has caused this Warrant to be
duly executed by its authorized officer as of the date first indicated above.

                    INTERNET LAW LIBRARY, INC.

                    By:
                       ---------------------------------------------------------

                    Name:
                         -------------------------------------------------------

                    Title:
                          ------------------------------------------------------

                    HOLDER

                    ------------------------------------------------------------
                    James W. Christian

<PAGE>

                          FORM OF ELECTION TO PURCHASE

(To be executed by the Holder to exercise the right to purchase shares of Common
Stock under the foregoing Warrant)

To Internet Law Library, Inc.:

         The undersigned hereby irrevocably elects to purchase _____________
shares of common stock, $.001 par value per share, of Internet Law Library, Inc.
(the "Common Stock") and , if such Holder is not utilizing the cashless exercise
provisions set forth in this Warrant, encloses herewith $________ in cash,
certified or official bank check or checks, which sum represents the aggregate
Exercise Price (as defined in the Warrant) for the number of shares of Common
Stock to which this Form of Election to Purchase relates, together with any
applicable taxes payable by the undersigned pursuant to the Warrant.

         The Exercise Price applicable to the purchase hereunder equals
$___________.

         The undersigned requests that certificates for the shares of Common
Stock issuable upon this exercise be issued in the name of

                                            PLEASE INSERT SOCIAL SECURITY
OR
                                            TAX IDENTIFICATION NUMBER

                                            -----------------------------------

--------------------------------------------------------------------------------
                         (Please print name and address)

         If the number of shares of Common Stock issuable upon this exercise
shall not be all of the shares of Common Stock which the undersigned is entitled
to purchase in accordance with the enclosed Warrant, the undersigned requests
that a New Warrant (as defined in the Warrant) evidencing the right to purchase
the shares of Common Stock not issuable pursuant to the exercise evidenced
hereby be issued in the name of and delivered to:

--------------------------------------------------------------------------------
                         (Please print name and address)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Dated:        ,          Name of Holder:
      --------  ----

                         (Print)
                                ----------------------------------------------

                         (By:)
                              ------------------------------------------------
                         (Name:)
                         (Title:)
                         (Signature  must  conform in all  respects to name of
                         holder as specified on the face of the Warrant)

Warrant No. 7, p. 43

<PAGE>

                               FORM OF ASSIGNMENT

           [To be completed and signed only upon transfer of Warrant]

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto ________________________________ the right represented by the within
Warrant to purchase ____________ shares of Common Stock of Internet Law Library,
Inc. to which the within Warrant relates and appoints ________________ attorney
to transfer said right on the books of Internet Law Library, Inc. with full
power of substitution in the premises.

Dated:

---------------, ----

                           ---------------------------------------------------
                           (Signature must conform in all respects to name of
                           holder as specified on the face of the Warrant)

                           ---------------------------------------------------
                           Address of Transferee

                           ---------------------------------------------------

                           ---------------------------------------------------

In the presence of:<PAGE>

                                                               Exhibit 4.1

                                SEVENTH AMENDMENT

                  SEVENTH AMENDMENT, dated as of March 19, 2001 (this
"AMENDMENT"), to the Credit Agreement, dated as of November 19, 1997 (as
amended, supplemented or otherwise modified, the "CREDIT AGREEMENT"), among
FRIENDLY ICE CREAM CORPORATION, a Massachusetts corporation, the several banks
and other financial institutions or entities parties thereto as Lenders, and
SOCIETE GENERALE, as administrative agent.

                              W I T N E S S E T H :
                               -------------------

     WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to make,
and have made, extensions of credit to the Borrower; and

     WHEREAS, the Borrower has requested, and upon this Amendment becoming
effective, the Lenders will have agreed, that certain provisions of the Credit
Agreement be amended in the manner provided for in this Amendment;

     NOW, THEREFORE, in consideration of the premises and the agreements
hereinafter set forth, the parties hereto hereby agree as follows:

     SECTION 1. DEFINITIONS. Unless otherwise defined herein, terms defined in
the Credit Agreement and used herein shall have the meanings given to them in
the Credit Agreement.

     SECTION 2. AMENDMENTS TO THE CREDIT AGREEMENT. Effective as of the date
hereof, but subject to the satisfaction of the conditions precedent set forth in
Section 4 hereof, the Credit Agreement is hereby amended as follows:

     2.1 The following definitions are inserted in Section 1.1 in correct
alphabetical order:

          "'FINANCIAL ADVISOR': any advisor retained by the Agent to (i)
          initially review and assess the agreed upon financial information
          provided by the Borrower including the budget and liquidity forecast
          and (ii) upon the failure of the Refinancing Conditions to be met or
          the occurrence of a Default, review and assess the Loan Parties'
          financial condition and projections, evaluate the Loan Parties'
          operations and provide such service as the Agent may reasonably
          request.;

          "'LONG ISLAND FRANCHISE SALE': the transaction contemplated in the
          Purchase and Sale Agreement

<PAGE>

          dated as of January 15, 2001 between the Borrower and J & B Restaurant
          Partners of Long Island, LLC., whether the transaction occurs in one
          or more closings;

          "'REFINANCING CONDITIONS': as defined in Section 2.10(e).";

     2.2 The definition of Applicable Margin is amended and restated as follows:

          "'APPLICABLE MARGIN': for each Type of Loan, the rate per annum set
          forth under the relevant column heading below:

<TABLE>
<CAPTION>
                                           Eurodollar Loans           ABR Loans
                                           ----------------           ---------
          <S>                                   <C>                     <C>
          Revolving Credit Loans                3.25%                   1.75%
          Tranche A Term Loans                  3.25%                   1.75%
          Tranche B Term Loans                  3.25%                   1.75%
          Tranche C Term Loans                  3.50%                   2.00%
</TABLE>

PROVIDED, that the Applicable Margin for each Type of Loan shall be increased by
0.25% on August 2, 2001, by an additional 0.50% on January 2, 2002 and by an
additional 0.25% on each of April 1, 2002, July 1, 2002 and October 1, 2002.";

     2.3 The definition of Asset Sale is amended by replacing "clause (a), (b),
(c), (d) or (g) of Section 7.5" with "clause (a), (b), (c), (d), (g) or (h) of
Section 7.5";

     2.4 The definition of Business-Sustaining Capital Expenditures is amended
and restated as follows:

          "'BUSINESS-SUSTAINING CAPITAL EXPENDITURES': for any period of four
          consecutive fiscal quarters ending in fiscal year 2001 or 2002,
          Capital Expenditures during such period in an amount equal to
          $9,850,000 or $10,067,000, respectively, constituting the amount of
          Capital Expenditures necessary to maintain the then existing Property
          of the Borrower and its Subsidiaries in good working order and
          condition (excluding payments in respect of the principal amount of
          Indebtedness incurred in connection with such expenditures).";

     2.5 The definition of Commitment Fee Rate is amended by deleting the
proviso.

     2.6 The definition of Consolidated EBITDA is amended and restated as
follows:

                                      -2-

<PAGE>

          "'CONSOLIDATED EBITDA': for any period, Consolidated Net Income for
          such period PLUS, without duplication and to the extent reflected as a
          charge in the statement of such Consolidated Net Income for such
          period, the sum of (a) income tax expense, (b) interest expense,
          amortization or writeoff of debt discount and debt issuance costs and
          commissions, discounts and other fees and charges associated with
          Indebtedness (including the Loans), (c) depreciation and amortization
          expense, (d) amortization of intangibles (including, but not limited
          to, goodwill) and organization costs, (e) any extraordinary, unusual
          or non-recurring expenses or losses (including, whether or not
          otherwise includable as a separate item in the statement of such
          Consolidated Net Income for such period, losses on sales of assets
          outside of the ordinary course of business) and (f) any other non-cash
          charges, and MINUS, to the extent included in the statement of such
          Consolidated Net Income for such period, the sum of (a) interest
          income, (b) any extraordinary, unusual or non-recurring income or
          gains (including, whether or not otherwise includable as a separate
          item in the statement of such Consolidated Net Income for such period,
          gains on the sales of assets outside of the ordinary course of
          business (it being understood that sales of restaurants in an
          aggregate amount up to $2,500,000 in any fiscal year are deemed to be
          in the ordinary course of business and that all other gains from the
          sales of restaurants occurring after the Long Island Franchise Sale
          Date (defined below) are deemed to be extraordinary, unusual or
          non-recurring)) and (c) any other non-cash income, all as determined
          on a consolidated basis, PROVIDED, that, in calculating Consolidated
          EBITDA for periods that include any fiscal quarter of the Borrower's
          1998 and 1999 fiscal years, any expenses resulting from the closing of
          the Borrower's Troy, Ohio manufacturing and distribution facility and
          the termination of its operations in China and the United Kingdom
          shall be disregarded to the extent that the aggregate amount of such
          expenses does not exceed $7,500,000 and PROVIDED, FURTHER, that, in
          calculating Consolidated EBITDA (i) for periods that include any
          fiscal quarter of the Borrower's 1999 fiscal year, an aggregate amount
          of up to $3,200,000 of gains resulting from sales of restaurants
          consummated on or prior to January 2, 2000 shall not be subtracted
          from Consolidated Net Income and (ii) for periods that include any
          fiscal quarter of the Borrower's 2001 fiscal year, any gains

                                      -3-

<PAGE>

          resulting from sales of restaurants in the ordinary course of business
          consummated on or prior to the closing of the Long Island Franchise
          Sale (the "Long Island Franchise Sale Date") shall not be subtracted
          from Consolidated Net Income and shall not reduce the aggregate gains
          from sales of restaurants which are deemed to be in the ordinary
          course of business for the purposes of this definition.";

     2.7 The definition of Interest Payment Date is amended and restated as
follows:

          "'INTEREST PAYMENT DATE': (a) as to any ABR Loan, the fifteenth day of
          each month in which such Loan is outstanding and the final maturity
          date of such Loan, (b) as to any Eurodollar Loan, the last day of each
          Interest Period and (c) as to any Loan (other than any Revolving
          Credit Loan that is an ABR Loan), the date of any repayment or
          prepayment made in respect thereof, but only to the extent of the
          portion prepaid or repaid.";

     2.8 The definition of Interest Period is amended by replacing "one, two,
three or six months thereafter, as selected" in clauses (a) and (b) with "one
month thereafter as set forth";

     2.9 The definition of L/C Fee Payment Date is amended by replacing
"January, April, July and October" with "month";

     2.10 The definition of Net Cash Proceeds is amended by (i) inserting after
"(a) in connection with" "the Long Island Franchise Sale," and (ii) inserting
before "such Asset Sale" in each place it appears "the Long Island Franchise
Sale or";

     2.11 The definitions of Adjustment Date and Pricing Grid are deleted;

     2.12 The definition of Tranche B Maturity Date is amended and restated as
follows:

          "'Tranche B Maturity Date': November 15, 2002.";

     2.13 The definition of Tranche C Maturity Date is amended and restated as
follows:

          "'Tranche C Maturity Date': November 15, 2002.";

     2.14 Section 2.3(b) is amended by (i) replacing "23" with "15", (ii)
deleting the installments from January 15, 2003 through and including July 15,
2004 from the table and (iii) replacing the amount opposite "Tranche B Maturity
Date" in the table with "the remaining balance of the Tranche B Term Loans";

                                      -4-

<PAGE>

     2.15 Section 2.3(c) is amended by (i) replacing "27" with "15", (ii)
deleting the installments from January 15, 2003 through and including July 15,
2005 from the table and (iii) replacing the amount opposite "Tranche C Maturity
Date" in the table with "the remaining balance of the Tranche C Term Loans";

     2.16 Section 2.7(a) is amended by replacing "quarterly" with "monthly" and
"January, April, July and October" with "month";

     2.17 Section 2.10(b) is amended and restated as follows:

          "(b) Unless the Required Prepayment Lenders shall otherwise agree, if
          on any date, the Borrower or any of its Subsidiaries shall receive
          proceeds in the form of cash or Cash Equivalents from any Asset Sale
          or Recovery Event then, unless a Reinvestment Notice shall be
          delivered in respect thereof, (i) such proceeds (exclusive of any
          amounts applied on such date in the manner permitted by clause (i) of
          the definition of Net Cash Proceeds) shall be delivered to the Agent
          and held by the Agent for the benefit of the Lenders for up to five
          Business Days, (ii) within five Business Days following receipt of
          such proceeds, the Borrower shall deliver a notice of prepayment and
          certificate (the "Prepayment Documents"), signed by an Authorized
          Signatory, setting forth its calculation of Net Cash Proceeds from
          such Asset Sale or Recovery Event and (iii) on the fifth Business Day
          following receipt of such proceeds, or on such earlier Business Day as
          the Borrower may request following delivery of the Prepayment
          Documents, the Net Cash Proceeds, together with any interest earned on
          such proceeds, shall be applied toward the prepayment of the Term
          Loans and the reduction of the Revolving Credit Commitments as set
          forth in Section 2.10(d) and the remaining balance, if any, of such
          proceeds shall be available to the Borrower; PROVIDED that, if the
          Borrower fails to timely deliver the Prepayment Documents, then, on
          the fifth Business Day following receipt of such proceeds, all such
          proceeds, together with any interest earned on such proceeds, shall be
          applied in the manner described in clause (iii) and PROVIDED FURTHER
          that, on each Reinvestment Prepayment Date, an amount equal to the
          Reinvestment Prepayment Amount with respect to the relevant
          Reinvestment Event shall be applied toward the prepayment of the Term
          Loans and the

                                      -5-

<PAGE>

          reduction of the Revolving Credit Commitments as set forth in Section
          2.10(d)."

     2.18 Section 2.10(e) is added as follows:

          "(e) If (x) the Borrower fails (i) to continue to use reasonable
          efforts to pursue a refinancing of the Credit Agreement Obligations,
          (ii) to obtain, by no later than April 30, 2001, a commitment for such
          refinancing, which commitment shall be from a lender and in a form
          reasonably satisfactory to the Agent, or (iii) to satisfy, by no later
          than August 2, 2001, the Credit Agreement Obligations, or (y) at any
          time Bank of America Securities LLC determines not to pursue such
          refinancing (the "Refinancing Conditions"), then (I) on August 2, 2001
          the Revolving Credit Commitments shall be reduced by $5,000,000,
          PROVIDED, HOWEVER, that no such Commitment reduction shall be required
          unless the closing of the Long Island Franchise Sale shall have
          occurred and the Net Cash Proceeds thereof shall have been no less
          than $10,000,000, and (II) in addition to reducing the Revolving
          Credit Commitments if required by clause (I) of this Section 2.10(e),
          paying the scheduled installments of principal due hereunder and
          making the prepayments required from the proceeds of the Long Island
          Franchise Sale pursuant to Section 7.5(h), the Borrower shall prepay
          Term Loans such that the cumulative additional prepayments of Term
          Loans applied in the manner and order set forth in Section 2.10(d)
          from January 1, 2001 through each of the test dates set forth below is
          no less than the amount set forth below opposite such date:

<TABLE>
<CAPTION>
                                                   Minimum Cumulative
                                                    Prepayment and
                                                  Commitment Reduction
               Test Date                              to Lenders
               ---------                          --------------------
               <S>                                    <C>
               October 15, 2001                       $ 6,000,000
               January 15, 2002                       $ 7,500,000
               April 15, 2002                         $ 8,500,000
               July 15, 2002                          $10,000,000.
</TABLE>

          "Concurrently with any reduction of Revolving Credit Commitments
          pursuant to this Section 2.10(e), the Borrower shall prepay Revolving
          Credit Loans to the extent, if any, that the Total Revolving
          Extensions of Credit exceed the amount of the Total Revolving Credit
          Commitments as reduced in accordance with this Section 2.10(e).
          Notwithstanding anything herein to the contrary, in no event shall any
          failure by the Borrower to meet a Refinancing Condition be a
          Default.";

                                      -6-

<PAGE>

     2.19 Section 2.16(b) is amended by (i) deleting "(except as otherwise
provided in Section 2.16(d))" and (ii) inserting before the period at the end of
the second sentence "(except as otherwise provided in Section 7.5(h))";

     2.20 Section 2.16(d) is amended and restated as follows:

          "(d) Intentionally omitted.";

     2.21 Section 3.3(a) is amended by replacing "quarterly" each time it
appears with "monthly";

     2.22 Section 6.1(b) is amended by deleting "and" at the end thereof and
Section 6.1(c) is added as follows:

          "(c) as soon as available, but in any event not later than 20 days
          after the end of each fiscal month of the Borrower (30 days in the
          case of the last fiscal month of any fiscal year), the unaudited
          consolidated balance sheet of the Borrower and its consolidated
          Subsidiaries as at the end of such month and the related unaudited
          consolidated statements of income and of cash flows for such month and
          the portion of the fiscal year through the end of such month, setting
          forth in each case in comparative form the figures for the previous
          year and the most recent Projections delivered pursuant to Section
          6.2(c) and including a statement of income reported on by business
          segment (in a format reasonably acceptable to the Agent), certified by
          an Authorized Signatory as being fairly stated in all material
          respects (subject to normal year-end audit adjustments); and";

     2.23 Section 6.2 is amended by adding before the period at the end of
Section 6.2(i):

          "together with a forecast of cash receipts and disbursements (in a
          format reasonably acceptable to the Agent) for the thirteen week
          period commencing with the first week of the month in which such
          forecast is required to be delivered and, commencing with the second
          such forecast delivered, a report setting forth in comparative form
          the actual cash receipts and disbursements for the fiscal four or five
          week period ending with the last week in the month just ended and the
          forecast most recently delivered for such period.";

                                      -7-

<PAGE>

     2.24 Section 6.13 is added as follows:

          "6.13 FINANCIAL ADVISOR. The Borrower shall cooperate with the
          Financial Advisor.";

     2.25 The table in Section 7.1(a) is amended by (i) replacing "4.10"
appearing opposite the fourth quarter of fiscal 2000 with "5.30", (ii) replacing
"Fiscal quarters from and including first quarter of fiscal 2001 through and
including third quarter of fiscal 2001" and the ratio opposite such quarters
with:

     "First quarter of fiscal 2001 5.10 to 1.00

     "Second quarter of fiscal 2001 5.30 to 1.00

     "Third quarter of fiscal 2001 5.00 to 1.00",

(iii) replacing "3.55" appearing opposite the fourth quarter of fiscal 2001 with
"5.20" and (iv) adding the following proviso to the end thereof:

     "PROVIDED, HOWEVER, if the Long Island Franchise Sale does not occur in the
     first quarter of fiscal 2001, then, in lieu of the ratio set forth above as
     at the last day of the four consecutive fiscal quarters of the Borrower
     ending with the first quarter of fiscal 2001, the Consolidated Leverage
     Ratio as at such day shall not exceed 5.90 to 1.00.";

     2.26 The table in Section 7.1(b) is amended by (i) replacing "1.75"
appearing opposite the fourth quarter of fiscal 2000 with "1.45", (ii) replacing
"Fiscal quarters from and including first quarter of fiscal 2001 through and
including third quarter of fiscal 2001" and the ratio opposite such quarters
with:

     "First quarter of fiscal 2001 1.45 to 1.00

     "Second quarter of fiscal 2001 1.40 to 1.00

     "Third quarter of fiscal 2001 1.45 to 1.00",

(iii) replacing "1.95" appearing opposite the fourth quarter of fiscal 2001 with
"1.45" and (iv) adding the following proviso to the end thereof:

     "PROVIDED, HOWEVER, if the Long Island Franchise Sale does not occur in the
     first quarter of fiscal 2001, then, in lieu of the ratio set forth above
     for the period of four consecutive fiscal quarters of the Borrower ending
     with the first quarter of fiscal 2001, the Consolidated Interest Coverage
     Ratio for such period shall not be less than 1.30 to 1.00.";

                                      -8-

<PAGE>

     2.27 The table in Section 7.1(c) is amended by (i) replacing "1.20"
appearing opposite the fourth quarter of fiscal 2000 with "1.05", (ii) replacing
"1.10" appearing opposite "Fiscal quarters from and including first quarter of
fiscal 2001 through and including third quarter of fiscal 2001" with "1.00",
(iii) replacing "1.25" appearing opposite the fourth quarter of fiscal 2001 with
"1.10" and (iv) adding the following proviso to the end thereof:

     "PROVIDED, HOWEVER, if the Long Island Franchise Sale does not occur in the
     first quarter of fiscal 2001, then, in lieu of the ratio set forth above
     for the period of four consecutive fiscal quarters of the Borrower ending
     with the first quarter of fiscal 2001, the Consolidated Fixed Charge
     Coverage Ratio for such period shall not be less than 0.95 to 1.00.";

     2.28 The table in Section 7.1(d) is amended by (i) replacing
"($105,000,000)" appearing opposite the first quarter of fiscal 2001 with
"($106,000,000)", (ii) replacing "($100,000,000)" appearing opposite the second
quarter of fiscal 2001 with "($103,500,000)", (iii) replacing "($95,000,000)"
appearing opposite the third quarter of fiscal 2001 with "($100,000,000)", (iv)
replacing "($92,000,000)" appearing opposite the fourth quarter of fiscal 2001
with "($103,000,000)" and (v) adding the following proviso to the end thereof:

     "PROVIDED, HOWEVER, if the Long Island Franchise Sale does not occur in the
     first quarter of fiscal 2001, then, in lieu of the ratio set forth above as
     at the last day of the first quarter of fiscal 2001, the Consolidated Net
     Worth of the Borrower as at such day shall not be less than
     ($108,500,000).";

     2.29 Section 7.1(e) is added as follows:

          "(e) MINIMUM CUMULATIVE CONSOLIDATED EBITDA. Permit the cumulative
          Consolidated EBITDA for the period beginning January 1, 2001 and
          ending on the last day of any fiscal month set forth below to be less
          than the amount set forth opposite such fiscal month:

<TABLE>
<CAPTION>
             Month                                   Minimum Cumulative
             -----                                   Consolidated EBITDA
                                                     -------------------
          <S>                                            <C>
          January 2001                                   ($   108,000)
          February 2001                                   $ 1,466,000
          March 2001                                      $ 9,897,000
          April 2001                                      $12,282,000
          May 2001                                        $16,074,000
</TABLE>

                                      -9-

<PAGE>

<TABLE>
<CAPTION>
             Month                                   Minimum Cumulative
             -----                                   Consolidated EBITDA
                                                     -------------------
          <S>                                            <C>
          June 2001                                       $24,499,000
          July 2001                                       $30,746,000
          August 2001                                     $37,737,000
          September 2001                                  $43,119,000
          October 2001                                    $46,182,000
          November 2001                                   $49,129,000
          December 2001                                   $53,174,000
          January 2002                                    $53,066,000
          February 2002                                   $54,532,000
          March 2002                                      $59,380,000
</TABLE>

     "PROVIDED, HOWEVER, if the Long Island Franchise Sale does not occur in the
     first quarter of fiscal 2001, then, in lieu of the amount set forth above
     for the period ending on the last day of March of fiscal 2001, the
     cumulative Consolidated EBITDA for such period shall not be less than
     $4,848,000.";

     2.30 Section 7.5 is amended by (i) deleting "and" at the end of clause (f),
(ii) replacing the period at the end of clause (g) with "; and" and (iii) adding
clause (h) as follows:

          "(h) the Long Island Franchise Sale, provided, however, that (x) the
          initial closing of the Long Island Franchise Sale occurs no later than
          April 30, 2001, (y) the consideration received by the Borrower for the
          stores included in the Long Island Franchise Sale shall not be less
          than 85% of the aggregate market value of such stores based upon the
          appraisal report prepared by Cushman & Wakefield, Inc. as of February
          1, 2001, and (z) simultaneously with the closing thereof, (i) the Net
          Cash Proceeds of the Long Island Franchise Sale shall be delivered to
          the Agent and applied as follows: FIRST, the sum of $2,710,714.29
          shall be applied to the payment or prepayment of the installments of
          the Term Loans due April 15, 2001 if such installments of the Term
          Loans have not previously been paid; SECOND, the sum of $2,000,000.00
          shall be applied to the prepayment of the Term Loans in accordance
          with Section 2.16(b); THIRD, the sum of $10,300,000 shall be applied
          to prepay Revolving Credit Loans; FOURTH, if none of the Net Cash
          Proceeds of the Long Island Franchise Sale shall have been applied to
          the payment or prepayment of the installments of the Term Loans due
          April 15, 2001, then the additional sum of $2,700,000 shall be applied
          to prepay Revolving Credit Loans; and FIFTH, the remaining amount
          shall be applied to the prepayment of the Term Loans in accordance
          with

                                      -10-

<PAGE>

          Section 2.16(b); and (ii) the Borrower shall take all action necessary
          or reasonably requested by the Agent to grant to the Agent, for the
          benefit of the Lenders, a first priority security interest in any
          non-cash proceeds of the Long Island Franchise Sale, including the
          endorsement and delivery to the Agent, in accordance with the
          Guarantee and Collateral Agreement, of any such non-cash proceeds
          evidenced by notes.";

     2.31 Section 10.2 is amended by replacing the notice information for the
Agent with the following:

                           "Societe Generale
                           1221 Avenue of the Americas
                           New York, New York  10020
                           Attention:  Edward J. Grimm
                           Telephone:  (212) 278-6450
                           Telecopy:   (212) 278-6178

     "with a copy to

                           "Societe Generale
                           560 Lexington Avenue
                           New York, New York  10022
                           Attention:   Anna LoPiccolo
                           Telephone:  (212) 278-6732
                           Telecopy:   (212) 278-5525";

     2.32 Section 10.5 is amended by inserting before the comma at the end of
clause (a) thereof:

          "and the Financial Advisor, PROVIDED, HOWEVER, that if the Refinancing
          Conditions are duly performed and satisfied and no Default shall have
          occurred hereunder, the Borrower shall not be obligated to pay or
          reimburse the Agent for fees and expenses of the Financial Advisor in
          an amount greater than $125,000 plus reasonable and documented
          expenses";

     2.33 Section 10.6(c) is amended by inserting after "such consent" in the
fourth line thereof "of the Borrower"; and

     2.34 Annex A to the Credit Agreement is deleted.

     SECTION 3. AMENDMENT FEE. The Borrower shall pay to each Lender that
executes and delivers this Amendment by 4:00 p.m. (New York City time) on
Monday, March 19, 2001, an amendment fee of 0.75% of the sum of its outstanding
Revolving Credit Commitment and Term Loans payable in two installments as
follows: 0.25% on the Amendment Effective Date (the "First Amendment Fee
Installment") and the balance of 0.50% on

                                      -11-

<PAGE>

September 30, 2001 (the "Second Amendment Fee Installment"), provided that, if
the Credit Agreement Obligations are satisfied and paid in full in cash prior to
September 30, 2001, then the Second Amendment Fee Installment will be due and
payable in the reduced amount of 0.125% on the date of such payment. The fees
payable hereunder shall be fully earned on the Amendment Effective Date.

     SECTION 4. CONDITIONS TO EFFECTIVENESS. This Amendment shall become
effective as of the date set forth above (the "AMENDMENT EFFECTIVE DATE") on the
date on which (a) the Borrower and the Required Lenders shall have executed and
delivered to the Agent this Amendment, (b) each Guarantor shall have executed
the Acknowledgment and Consent in the form annexed hereto, (c) the Borrower
shall have paid all fees required to be paid, and expenses for which invoices
have been presented (including fees, disbursements and other charges of counsel
to the Agent) in connection with the Credit Agreement and this Amendment, (d)
the Borrower shall have delivered to the Agent, to be applied toward the
prepayment of the Term Loans and reduction of the Revolving Credit Commitments
as set forth in Section 2.10(d), all Net Cash Proceeds held on the date this
Amendment becomes effective, together with a notice of prepayment and
certificate, signed by an Authorized Signatory, setting forth the Borrower's
calculation of such Net Cash Proceeds, (e) each Loan Party shall have delivered
to the Agent a Perfection Certificate in the form annexed hereto as Exhibit A,
(f) the Borrower shall have delivered to the Agent a certified copy of the
executed contract of sale for the Long Island Franchise Sale, (g) the Borrower
shall have delivered to the Agent, with sufficient copies for each Lender, an
appraisal report addressed to the Agent, for the benefit of the Lenders, opining
on the market value of the fee simple and leasehold interests of the Borrower in
its tangible assets (including real property and furniture, fixtures, equipment
and machinery) as of February 1, 2001, prepared by Cushman & Wakefield, Inc. in
a manner consistent with the appraisal prepared by Cushman & Wakefield, Inc. as
of August 1, 1997 and including an opinion of such market value as of February
1, 2001, in excess of $300,000,000, excluding any assets which have been sold
prior to the date of such report and excluding all assets which are included in
the Long Island Franchise Sale and (h) the Borrower shall have paid to the
Agent, on behalf of each Lender that shall have executed and delivered its
signature page hereto to counsel to the Agent by 4:00 p.m. (New York City time)
on Monday, March 19, 2001 the First Amendment Fee Installment.

     SECTION 5. CUSHMAN & WAKEFIELD MEETING. The Borrower shall arrange for a
meeting among Cushman & Wakefield, the Agent and the Lenders which shall occur
no later than March 30, 2001 to discuss the appraisal prepared by Cushman &
Wakefield.

     SECTION 6. REPRESENTATIONS AND WARRANTIES. In order to induce the Agent and
the Lenders to enter into this Amendment,

                                      -12-

<PAGE>

the Borrower hereby represents and warrants to the Agent and the Lenders as
follows as of the Amendment Effective Date:

     6.1 The representations and warranties made by the Loan Parties in the Loan
Documents are true and correct in all material respects on and as of the
Amendment Effective Date, before and after giving effect to the effectiveness of
this Amendment, as if made on and as of the Amendment Effective Date, except to
the extent such representations and warranties expressly relate to a specific
earlier date, in which case such representations and warranties were true and
correct in all material respects as of such earlier date.

     6.2 No Default or Event of Default has occurred and is continuing.

     6.3 Each of the Borrower and the other Loan Parties has the corporate
power, and has been duly authorized by all requisite corporate action, to
execute and deliver this Amendment and the other documents and agreements
executed and delivered in connection herewith to which it is a party. This
Amendment has been duly executed by the Borrower and the other documents and
agreements executed and delivered in connection herewith to which the Borrower
or any Loan Party is a party have been duly executed and delivered by each of
the Borrower and the other Loan Parties.

     6.4 Since July 29, 1998, the Certificate of Incorporation and bylaws of
each of the Loan Parties has not been amended, supplemented or otherwise
modified.

     6.5 This Amendment is the legal, valid and binding obligation of the
Borrower and the other documents and agreements executed or delivered in
connection herewith to which any of the Borrower or the other Loan Parties is a
party are the legal, valid and binding obligations of the Borrower and the other
Loan Parties, in each case enforceable against each of the Borrower and the
other Loan Parties in accordance with their respective terms, except as such
enforceability may be limited by any applicable bankruptcy, insolvency,
reorganization, moratorium, or similar law affecting creditors' rights generally
and by general equitable principles (whether enforcement is sought by
proceedings in equity or at law).

     6.6 The execution, delivery and performance of this Amendment and the other
documents and agreements executed and delivered in connection therewith does not
and will not (i) violate any law, rule, regulation or court order to which any
of the Borrower or the other Loan Parties is subject; (ii) conflict with or
result in a breach of the certificate of incorporation or bylaws of the Borrower
or any of the other Loan Parties or any agreement or instrument to which it is
party or by which the properties of any of the Borrower or the other Loan
Parties are bound; or (iii) result in the creation or imposition of any Lien,
security interest or encumbrance on any property of the Borrower

                                      -13-

<PAGE>

or any of the other Loan Parties, whether now owned or hereafter acquired, other
than Liens in favor of the Agent.

     6.7 No consent or authorization of, filing with or other act by or in
respect of any Governmental Authority or any other Person is required in
connection with the execution, delivery, performance, validity or enforceability
of (i) this Amendment by the Borrower or (ii) the other documents or agreements
executed or delivered in connection herewith to which any of the Borrower or the
other Loan Parties is party, or the consummation of the transactions
contemplated hereby or thereby, or the continuing operations of any of the
Borrower or the other Loan Parties following the consummation of such
transactions, except for such as have been obtained or made.

     6.8 As of March 7, 2001, the aggregate outstanding principal balance of the
Tranche A Term Loans is $4,301,831.69, the aggregate outstanding principal
balance of the Tranche B Term Loans is $19,779,757.55, the aggregate outstanding
principal balance of the Tranche C Term Loans is $11,671,466.61 and the
aggregate outstanding balance of the Revolving Extensions of Credit is
$65,911,995.00, consisting of Revolving Credit Loans in the aggregate amount of
$55,000,000.00 and Letter of Credit Obligations in the aggregate amount of
$10,911,995.00. Interest and fees have accrued thereon as provided in the Credit
Agreement. The obligation of the Borrower and the other Loan Parties to repay
the Loans and the other Obligations, together with all interest and fees accrued
thereon, is absolute and unconditional, and there exists no right of setoff or
recoupment, counterclaim or defense of any nature whatsoever to payment of the
Obligations.

     SECTION 7. PAYMENT OF EXPENSES. The Borrower agrees to pay or reimburse the
Agent for all of its reasonable out-of-pocket expenses incurred in connection
with this Amendment and any other documents prepared in connection herewith and
the transactions contemplated hereby, including, without limitation, the
reasonable fees and disbursements of counsel to the Agent.

     SECTION 8. REFERENCE TO AND EFFECT ON THE LOAN DOCUMENTS. On and after the
Amendment Effective Date, each reference in the Credit Agreement to "this
Agreement," "hereunder," "hereof" or words of like import referring to the
Credit Agreement, and each reference in the other Loan Documents to "the Credit
Agreement," "thereunder," "thereof" or words of like import referring to the
Credit Agreement, shall mean and be a reference to the Credit Agreement as
amended hereby. The execution, delivery and effectiveness of this Amendment
shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of any Lender or the Agent under any of the Loan
Documents. Except as expressly amended herein, all of the provisions of the
Credit Agreement and the other Loan Documents are and shall remain in full force
and effect in accordance with the terms thereof and are hereby in all respects
ratified and confirmed.

                                      -14-

<PAGE>

     SECTION 9. MISCELLANEOUS.

     9.1 The Borrower agrees to execute (and to cause each of the other Loan
Parties to execute) such other and further documents and instruments as the
Agent may request to implement the provisions of this Amendment.

     9.2 This Amendment shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and their respective successors and assigns.
No other person or entity shall be entitled to claim any right or benefit
hereunder, including, without limitation, the status of a third-party
beneficiary of this Amendment.

     9.3 This Amendment, together with the Credit Agreement and the other Loan
Documents, constitutes the entire agreement and understanding among the parties
relating to the subject matter hereof, and supersedes all prior proposals,
negotiations, agreements and understandings relating to such subject matter. In
entering into this Amendment, the Borrower acknowledges that it is not relying
on any statement, representation, warranty, covenant or agreement of any kind
made by any Agent, any Lender, or any employee, agent or professional of any
Agent or Lender, except for the express written agreements of the Agent and
Lenders set forth herein.

     9.4 The provisions of this Amendment are intended to be severable. If any
provision of this Amendment shall be held invalid or unenforceable in whole or
in part in any jurisdiction, such provision shall, as to such jurisdiction, be
ineffective to the extent of such invalidity or enforceability without in any
manner affecting the validity or enforceability of such provision in any other
jurisdiction or the remaining provisions of this Amendment in any jurisdiction.

     9.5 This Amendment may be executed in counterparts and by any party to this
Amendment on separate counterparts, all of which, when so executed, shall be
deemed an original, but all of such counterparts shall constitute one and the
same agreement. Any signature delivered by a party by facsimile transmission
shall be deemed to be, and effective as, an original signature hereto.

     9.6 Any notices with respect to this Amendment shall be given in the manner
provided for in Section 10.2 of the Credit Agreement.

     9.7 All representations, warranties, covenants, agreements, undertakings,
waivers and releases of the Borrower contained herein shall survive the
Amendment Effective Date and payment in full of the Obligations.

                                      -15-

<PAGE>

     9.8 No amendment, modification, rescission, waiver or release of any
provision of this Amendment shall be effective unless the same shall be in
writing and signed by the Borrower and the Required Lenders.

     9.9 This Amendment shall constitute a Loan Document.

     SECTION 10. RELEASE OF CLAIMS. THE BORROWER HEREBY ACKNOWLEDGES AND AGREES
THAT IT DOES NOT HAVE ANY DEFENSES, COUNTERCLAIMS, OFFSETS, CROSS-COMPLAINTS,
CLAIMS OR DEMANDS OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO
REDUCE OR ELIMINATE ALL OR ANY PART OF LIABILITY OF THE BORROWER TO REPAY ANY
AGENT OR ANY LENDER AS PROVIDED IN THE CREDIT AGREEMENT AND THE OTHER LOAN
DOCUMENTS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM
ANY AGENT OR ANY LENDER. THE BORROWER HEREBY VOLUNTARILY AND KNOWINGLY RELEASES
AND FOREVER DISCHARGES THE AGENT AND THE LENDERS, AND THE AGENT'S AND EACH
LENDER'S PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL
POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, OR
EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR
UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT
LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS
AMENDMENT IS EXECUTED, WHICH THE BORROWER MAY NOW OR HEREAFTER HAVE AGAINST ANY
SUCH AGENT OR LENDER, AND THE AGENT'S OR LENDER'S PREDECESSORS, AGENTS,
EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH
CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR
OTHERWISE, INCLUDING, WITHOUT LIMITATION, THE EXERCISE OF ANY RIGHTS AND
REMEDIES UNDER THE CREDIT AGREEMENT OR OTHER LOAN DOCUMENTS, AND NEGOTIATION AND
EXECUTION OF THIS AMENDMENT.

     SECTION 11. GOVERNING LAW; JURISDICTION; WAIVER OF JURY TRIAL. Sections
10.11, 10.12 and 10.14 of the Credit Agreement shall apply to this Amendment and
to any suit, action or proceeding related to this Amendment.

               {THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK}

                                      -16-

<PAGE>

                  IN WITNESS WHEREOF, the parties hereof have caused this
amendment to be executed and delivered by their proper and duly authorized
officers as of the day and year first above written.

                                 FRIENDLY ICE CREAM CORPORATION

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

                                      S-1

<PAGE>

                                 SOCIETE GENERALE, as Agent and a Lender

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

                                      S-2

<PAGE>

                                 TRANSAMERICA BUSINESS CREDIT CORPORATION

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

                                      S-3

<PAGE>

                                 BLACK DIAMOND INTERNATIONAL
                                 FUNDING, LTD.

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

                                      S-4

<PAGE>

                                 BLACK DIAMOND CLO, 1998-I LTD.

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

                                      S-5

<PAGE>

                                 BLACK DIAMOND CLO, 2000-I LTD.

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

                                      S-6

<PAGE>

                                 FLEET NATIONAL BANK

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

                                      S-7

<PAGE>

                                 HIGHLAND LEGACY LTD.

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

                                      S-8

<PAGE>

                                 FIRST SOURCE FINANCIAL LLP

                                 By: First Source Financial, Inc.
                                     its Agent/Manager

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

                                      S-9

<PAGE>

                                 BANK OF AMERICA, N.A.

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

                                      S-10

<PAGE>

                                 PAMCO CAYMAN LTD.

                                 By: Highland Capital Management,
                                     L.P., as Collateral Manager

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

                                      S-11

<PAGE>

                                 PAM CAPITAL FUNDING, L.P.

                                 By: Highland Capital Management,
                                     L.P., as Collateral Manager

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

                                      S-12

<PAGE>

                                 FLEET NATIONAL BANK AS TRUST
                                 ADMINISTRATOR FOR LONG LANE MASTER
                                 TRUST IV

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

                                      S-13

<PAGE>

                                 FIRST UNION NATIONAL BANK

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

                                      S-14

<PAGE>

                                 FOOTHILL INCOME TRUST, L.P.

                                 By: FIT GP LLC, its General Partner

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

                                      S-15

<PAGE>

                       ACKNOWLEDGMENT, CONSENT AND RELEASE

                  Each of the undersigned corporations as guarantors under the
Guarantee and Collateral Agreement, dated as of November 19, 1997, made by the
undersigned corporations in favor of the Agent, for the benefit of the Lenders,
hereby (a) consents to the transactions contemplated by this Amendment, (b)
acknowledges and agrees that the guarantees (and grants of collateral security
therefor) contained in such Guarantee and Collateral Agreement are, and shall
remain, in full force and effect after giving effect to this Amendment and all
prior modifications to the Credit Agreement, (c) acknowledges and agrees that
its obligations under the Guarantee and Collateral Agreement are absolute and
unconditional, and there exists no right of setoff or recoupment, counterclaim
or defense of any nature whatsoever thereto, and (d) HEREBY VOLUNTARILY AND
KNOWINGLY RELEASES AND FOREVER DISCHARGES THE AGENT AND THE LENDERS, AND EACH
AGENT'S AND LENDER'S PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS,
FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, OR
EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR
UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT
LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THE
FOREGOING AMENDMENT IS EXECUTED, WHICH IT MAY NOW OR HEREAFTER HAVE AGAINST ANY
SUCH AGENT OR LENDER, AND SUCH AGENT'S OR LENDER'S PREDECESSORS, AGENTS,
EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH
CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR
OTHERWISE, INCLUDING, WITHOUT LIMITATION, THE EXERCISE OF ANY RIGHTS AND
REMEDIES UNDER THE CREDIT AGREEMENT OR OTHER CREDIT DOCUMENTS, AND NEGOTIATION
AND EXECUTION OF THE FOREGOING AMENDMENT.

                                 FRIENDLY'S RESTAURANTS FRANCHISE,
                                 INC.

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

                                 FRIENDLY'S INTERNATIONAL, INC.

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}]]