Document:

FOURTH AMENDMENT TO CREDIT AGREEMENT

     THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this  "Amendment"),  dated as of
October 13, 2000 (the "Amendment  Date"), is made among (i) AVADO BRANDS,  INC.,
as "Borrower";  (ii) WACHOVIA BANK, NATIONAL  ASSOCIATION,  FLEET NATIONAL BANK,
successor in interest to  BANKBOSTON,  N.A.,  and the other parties  listed as a
"Bank" or the  "Banks"  on the  signature  page(s)  hereof,  as  "Banks";  (iii)
WACHOVIA BANK, NATIONAL  ASSOCIATION,  as "Administrative  Agent" for the Banks,
the "Syndication  Agent," as defined below, and itself;  and (iv) FLEET NATIONAL
BANK, successor in interest to BANKBOSTON,  N.A., as "Syndication Agent" for the
Banks.  The Borrower,  the Banks, the  Administrative  Agent and the Syndication
Agent are  hereinafter  called,  collectively,  the  "Parties."  The Parties are
parties to a Credit Agreement, dated as of June 22, 1999 (which, as modified and
amended to date, is hereinafter called the "Credit Agreement").  The Parties are
entering into this  Amendment for the purpose of further  modifying and amending
the Credit Agreement in the manner specified below.

     Accordingly, for value received, intending to be legally bound, the Parties
agree as follows:

1.       Definitions.
--------------------

     1.1. Terms  Incorporated by Reference.  Capitalized terms used herein,  but
not expressly defined herein, shall have the meanings given to such terms in the
Credit Agreement  (including  those existing defined terms modified  pursuant to
Section 1.2 below and those new defined terms added thereto  pursuant to Section
1.3 below).

     1.2. Modification of Certain Terms.

     A. The existing definition of the term "Fixed Charge Coverage Ratio," which
is set in Section 1.1 of the Credit Agreement, shall be deleted in its entirety,
and the following  revised  definition of "Fixed Charge Coverage Ratio" shall be
substituted  in its place (in keeping with the  Borrower's  stated  intention to
exercise  its right to  suspend  the  making of further  cash  distributions  in
respect of the TECONS in accordance with the terms thereof):

     "Fixed Charge Coverage Ratio" shall mean, for any fiscal period,  the ratio
which (A) the sum of (i)  EBITDAR  for such  period  plus (ii) the sum  (without
duplication) of (a) any dividends paid in respect of Redeemable  Preferred Stock
during such  period,  plus (b) any payments  made or accrued  during such period
(howsoever  denominated  or  construed) in respect of any TECONS in such period,
regardless  of maturity or the timing of any  redemption  or  repurchase  rights
granted in regard thereto (the foregoing herein called "TECONS Payments"), bears
to (B) the sum  (without  duplication),  for the same such  period,  of: (i) any
dividends paid in respect to Redeemable  Preferred Stock, plus (ii) that portion
of any  TECONS  Payments  actually  paid in cash;  plus  (iii)  operating  lease
expense;  plus (iv)  interest  expense;  plus (v) all payments  made  (including
payments made in  settlement of existing  obligations  or claims)  under,  or in
respect of,  interest rate "hedge,"  "swap,"  "collar" or similar  arrangements,
whether  now or  hereafter  existing,  including,  but  not  limited  to,  those
expressly  permitted to exist under clause (ix) of Section  5.21;  in each case,
for the Borrower and its Consolidated Subsidiaries for the same such period; all
as determined under GAAP.

     B. The existing  definition of the term "Total Debt," which is set forth in
Section 1.1 of the Credit Agreement,  shall be amended by adding thereto, at the
end thereof, the following:

     provided,  however,  that  notwithstanding  the  foregoing,  in making  the
foregoing   calculation  there  shall  be  excluded  from  clause  (iii)  above,
concerning,  Debts,  liabilities  and  obligations  which  are  Guaranteed,  any
Guarantee  by the  Borrower  or any  Subsidiary  given in  respect of any of the
former  Applebee's  locations  owned or  operated  by the  Borrower  or any such
Subsidiary.

<PAGE>

     1.3. Introduction of Additional Terms. The following defined terms shall be
added to Section 1.1 of the Credit  Agreement  in the  appropriate  alphabetical
order:

     "Existing Equipment Lease" shall mean the Master Equipment Lease Agreement,
dated as of  September  24,  1997  (Apple  South  Trust No.  97-1),  between the
Existing Equipment Lessor, as "Owner Trustee" and "Lessor"  thereunder,  and the
Borrower,  as "Lessee"  thereunder,  together  with all exhibits  and  schedules
thereto, and all modifications and amendments thereto.

     "Existing  Equipment  Lessor"  shall mean  First  Security  Bank,  National
Association,  not individually,  but solely as "Owner Trustee" under Apple South
Trust No. 97-1; and its successors and assigns.

     "Existing  Leased  Equipment"  shall  mean,  collectively,  all  equipment,
machinery  and other  personal  property  leased to the Borrower by the Existing
Equipment Lessor under the Existing Equipment Lease.

     "Fourth  Amendment"  shall mean the Fourth  Amendment to Credit  Agreement,
dated on or about the Sale-Leaseback  Date, made by and among the Borrower,  the
Banks,  the  Administrative  Agent  and the  Syndication  Agent,  amending  this
Agreement,   among  other  things,   to  reflect  the  Banks'   consent  to  the
Sale-Leaseback Transaction.

     "Hops"  shall  mean  Hops  Grill & Bar,  Inc.  a  Florida  corporation  and
wholly-owned Subsidiary of the Borrower.

     "Hops  Marks"  shall mean any trade names,  trademarks,  service  marks and
other  commercial  symbols and  applications  related to the  operation of "Hops
Restaurant Bar & Brewery" restaurants on the Sale-Leaseback Realty.

     "Hops  Marks  License"  shall mean the License  Agreement,  dated as of the
Sale-Leaseback  Date,  between  the  Borrower,  as  licensor,  and the  SPV,  as
licensee,  concerning the licensing of the Hops Marks to the SPV;  together with
all schedules and exhibits thereto; and any modifications or amendments thereof.

     "Sale-Leaseback  Agreement" shall mean the Sale-Leaseback Agreement,  dated
on or prior to the  Sale-Leaseback  Date,  between  Hops and Avado,  as "Seller"
thereunder, and the SPV, as "Buyer" thereunder, concerning the sale and purchase
of the  Sale-Leaseback  Property;  together  with  all  schedules  and  exhibits
thereto; and any modifications or amendments thereof,  including,  particularly,
any done to give effect to the Swap Equipment Transactions.

     "Sale-Leaseback  Date"  shall  mean the date on  which  the  Sale-Leaseback
Transactions are consummated.

     "Sale-Leaseback  Personalty" shall mean all machinery,  equipment and other
personal property of Hops located at the  Sale-Leaseback  Realty.  The foregoing
shall  include,  without  limitation,  any such  machinery,  equipment  or other
personal property conveyed to the SPV subsequent to the  Sale-Leaseback  Date in
connection with the Swap Equipment Transactions.

     "Sale-Leaseback  Proceeds" shall mean all Net Cash Proceeds  derived by the
Borrower from the Sale-Leaseback  Transactions,  including,  without limitation,
any  such  Sale-Leaseback   Proceeds  derived  by  Borrower  subsequent  to  the
Sale-Leaseback Date in connection with the Swap Equipment Transactions.

     "Sale-Leaseback Property" shall mean, collectively,  (i) the Sale-Leaseback
Realty and (ii) the Sale-Leaseback Personalty.

     "Sale-Leaseback   Realty"  shall  mean  the  real  property  on  which  the
following, existing locations of "Hops Restaurant Bar & Brewery" restaurants are
situated:

<PAGE>

                  Property No.                              Location
                  ------------                              --------
                      9004                                  Tampa, FL
                      9004B                                 Tampa, FL
                      9008                                  Tampa, FL
                      9010                                  N. Port Richey, FL
                      9011                                  Orlando, FL
                      9015                                  St. Petersburg, FL
                      9021                                  Stuart, FL
                      9022                                  Plantation, FL
                      9025                                  Pineville, NC
                      9026                                  Columbia, SC
                      9028                                  Kennesaw, GA
                      9032                                  Columbia, SC
                      9034                                  Orlando, FL
                      9035                                  Aurora, CO
                      9037                                  Brandon, FL
                      9039                                  Daytona Beach, FL
                      9048                                  Maple Grove, MN
                      9049                                  N. Charleston, SC
                      9056                                  Winter Park, FL
                      9063                                  Richmond, VA
                      9067                                  Lone Tree, CO

     "Sale-Leaseback  Transactions"  shall  mean,  collectively,  the  series of
successive transactions,  to occur on or after the Sale-Leaseback Date, pursuant
to  which  (i) Hops  shall  convey  the  Sale-Leaseback  Property  to the SPV in
exchange for the  Sale-Leaseback  Proceeds,  which shall be paid to the Borrower
directly on behalf of Hops, pursuant to the Sale-Leaseback  Agreement,  (ii) the
SPV shall lease the  Sale-Leaseback  Property to Hops pursuant to the SPV Master
Lease, (iii) the Borrower shall guaranty the payment  obligations of Hops to the
SPV  arising  under  the SPV  Master  Lease  pursuant  to the SPV  Master  Lease
Guaranty,  and (iv) the Borrower  shall license the use of the Hops Marks to the
SPV pursuant to the Hops Marks License.  In addition to the foregoing,  the term
"Sale-Leaseback  Transactions"  shall  also  include  that  portion  of the Swap
Equipment  Transactions  pertaining to the leasing of additional  Sale-Leaseback
Personalty under the SPV Master Lease, whether occurring on or subsequent to the
Sale-Leaseback Date.

     "SPV" shall mean Pubs Property,  LLC, a Delaware limited  liability company
which is not Affiliated with the Borrower.

     "SPV Master Lease" shall mean the Master Lease Agreement, dated on or about
the  Sale-Leaseback  Date,  between  the SPV,  as lessor,  and Hops,  as lessee,
concerning the lease of the Sale-Leaseback Property to Hops by the SPV; together
with all schedules and exhibits  thereto,  and any  modifications and amendments
thereof.

     "SPV Master Lease Guaranty" shall mean the Guaranty Agreement,  dated on or
about the Sale-Leaseback  Date, made by the Borrower to and in favor of the SPV,
concerning  the guaranty by the Borrower of the payment  obligations  of Hops to
the SPV arising  under the SPV Master  Lease;  together  with all  schedules and
exhibits thereto, and any modifications and amendments thereof.

     "Swap Equipment" shall mean all the equipment, machinery and other personal
property of Hops located at such Hops' locations (in which,  heretofore,  a Lien
has been  granted to the  Agent,  on behalf of the Banks,  as  security  for the
payment of the Notes) as the  Borrower  shall  select in  coordination  with the
Existing  Equipment  Lessor,  but which shall be  acceptable in any event to the
Administrative  Agent, for swapping purposes, to satisfy the requirements of the
SPV Master  Lease,  provided  that the gross  book value of all such  equipment,
machinery and other  personal  property of Hops at all such  locations  does not
exceed $5,500,000.

<PAGE>

     "Swap  Equipment  Transactions"  shall  mean,  collectively,  the series of
successive  transactions,  to occur on or subsequent to the Sale-Leaseback Date,
pursuant to which (i) the  Existing  Equipment  Lessor  shall  convey any of the
Existing Leased Equipment intended for lease pursuant to the SPV Master Lease to
Hops or the  Lessor,  (ii) the  Lenders  shall  release  their Liens on the Swap
Equipment,  and (iii)  Hops  shall  convey the Swap  Equipment  to the  Existing
Equipment  Lessor  in  substitution  for that  portion  of the  Existing  Leased
Equipment constituting  Sale-Leaseback  Personalty being conveyed by Hops to the
SPV pursuant to the Sale-Leaseback Agreement.

2.       Consents.
-----------------

     2.1.  Sale-Leaseback  Transactions.  The  Banks do  hereby  consent  to the
Sale-Leaseback  Transactions;  and authorize and direct the Administrative Agent
in conjunction therewith (i) to release all Liens on the Sale-Leaseback Property
as and when made  subject  to the  terms of the SPV  Master  Lease,  and (ii) to
subordinate  any Liens on the Hops Marks to the extent  necessary to reflect and
permit the licensing thereof to the SPV under the Hops Marks License;  provided,
however, that each of the foregoing consents is expressly conditioned on (i) the
entire Sale-Leaseback  Proceeds being paid over and delivered by the Borrower to
the Administrative Agent upon the Borrower's receipt thereof,  whenever received
(whether at or after the  Sale-Leaseback  Date) for  application  to outstanding
Borrowings under the Line of Credit,  to be shared ratably among the Banks; (ii)
at least $24,800,000 of such Sale-Leaseback Proceeds shall be so received on the
Sale-Leaseback   Date;  (iii)   simultaneously  with  the  Agent's  receipt  and
application of such Net Cash Proceeds on the Sale-Leaseback  Date, the aggregate
Commitments of the Banks shall be permanently  reduced by $20,000,000;  that is,
to  $105,000,000,  with such reduction to be shared ratably among all Banks; and
(iv) if  aggregate  Sale-Leaseback  Proceeds,  whenever  received,  ever  exceed
$28,500,000, then, any amount in excess of $28,500,000 shall also result, as and
when  received,  in a permanent  reduction in the aggregate  Commitments  of the
Banks, to be shared ratably among them; (v) Sale-Leaseback Proceeds arising from
the Swap Equipment Transactions must be at least $3,300,000; and (vi) no Default
or Event of Default shall have occurred.

     2.2. Swap Equipment  Transactions.  The Banks do hereby consent to the Swap
Equipment Transactions,  as and when they should occur, and authorize and direct
the  Administrative  Agent  to  release  all  Liens  on the  Swap  Equipment  in
conjunction  therewith;  subject,  however,  to the Sale-Leaseback  Transactions
pertinent thereto occurring as prescribed in Section 2.1 above.

3.       Amendments.
-------------------

     3.1. Restructuring Fee. There shall be added to existing Section 2.6 of the
Credit Agreement (Fees) a new Subsection 2.6.4, to read as follows:

     2.6.4  Restructuring  Fee. In  consideration  of the Banks'  entry into the
Fourth Amendment, unless by May 31, 2001, all Debts, liabilities and obligations
owing to the  Banks  and the  Administrative  Agent  have  been  fully  paid and
satisfied and all Commitments have been terminated,  then,  effective as of June
1, 2001, the Banks shall have earned a  restructuring  fee, to be shared ratably
among the Banks,  which fee shall be due and payable  upon the earliest to occur
after May 31, 2001,  of the  following  dates (the  earliest of such dates being
called herein the "Due Date"):  (i) the Termination  Date, (ii) that date, prior
to the  Termination  Date,  on which  there  occurs  full  payment of all Debts,
liabilities and obligations owing to the Banks and the Administrative  Agent and
termination of all  Commitments,  or (iii) that date,  prior to the  Termination
Date, on which there occurs  termination of the Commitments and  acceleration of
the date for full  payment of the Notes  pursuant  to Section  6.1 of the Credit
Agreement;  with the amount of such fee then  being due and  payable to be based
upon the following schedule:

<PAGE>

    If the Due Date Occurs:                     The Restructuring Fee Shall Be:

    ------------------------------------------- --------------------------------
    Subsequent to May 31, 2001, but                        $100,000
    on or prior to June 30, 2001
    ------------------------------------------- --------------------------------
    Subsequent to June 30, 2001, but                       $200,000
    on or prior to September 30, 2001

    ------------------------------------------- --------------------------------
    Subsequent to September 30,                            $300,000
    2001, but on or prior to
    December 31, 2001
    ------------------------------------------- --------------------------------
    Subsequent to December 31, 2001                        $400,000
    ------------------------------------------- --------------------------------

     This fee shall be separate  and apart from any other fee paid (or  payable)
to the Banks or the  Administrative  Agent  pursuant  hereto or  pursuant to the
terms of the Fourth Amendment.

     3.2. Mandatory Reductions in Line of Credit.  Existing Section 2.7.3 of the
Credit  Agreement  shall be deleted in its  entirety and the  following  revised
version of Section 2.7.3 shall be substituted in its place (in order to reflect,
among  other  things,  the  reduction  in the  Commitments  resulting  from  the
consummation of the Sale-Leaseback Transactions):

     2.7.3.   Mandatory  Ratable   Reductions  in  Commitments.   Prior  to  the
Commitments  being reduced to zero on the  Termination  Date, the Commitments of
the Banks shall reduce  ratably,  beginning  with the Fiscal Quarter of Borrower
ending on April 4, 2001, and continuing thereafter at the end of each succeeding
Fiscal Quarter,  by the amounts prescribed below as of each quarterly  reduction
date prescribed below corresponding thereto:

           Quarterly Reduction Date:                Quarterly Reduction Amount
           ------------------------                 --------------------------
           April 4, 2001                                     $7,500,000
           July 1, 2001                                      $7,500,000
           September 30, 2001                                $7,500,000
           December 30, 2001                                 $7,500,000
           March 31, 2002                                    $7,500,000

     Effective  with each  mandatory  reduction  in the  Commitments  prescribed
above,  the Borrower shall be required to repay  Borrowings then  outstanding by
that amount  necessary to cause total  Borrowings then outstanding not to exceed
the total amount of the Commitments,  as so reduced each quarter,  in accordance
with the terms of Section 2.9.1. If the Borrower should fail at any time or from
time to time to repay  its  Borrowings  by the  amounts  required  to be made in
conjunction  with any reduction in Commitments  prescribed  hereinabove,  as and
when so required to be made,  its failure to do so shall  constitute an Event of
Default and permit the Administrative Agent, on behalf of the Banks, to exercise
the rights and remedies provided herein and in the Loan Documents attendant upon
such Event of Default occurring. Without limitation of such attendant rights and
remedies,  the Borrower  acknowledges and agrees that the  Administrative  Agent
may, as the Borrower's attorney-in-fact,  cause the Capital Stock of Belgo, PLC,
then being held by it as collateral  hereunder,  or such portions thereof as the
Administrative Agent determines,  in its sole discretion, to be sold by the most
expeditious  means  practicable,  after first giving Borrower three (3) Business
Days advance notice thereof (which notice period shall supersede and replace any
notice  period  otherwise  set forth in the Loan  Documents  in  respect of such
action),  and apply any cash  proceeds  (net of all  expenses  of sale)  derived

<PAGE>

therefrom to the Borrowings,  without  necessity of further notice to, or demand
upon,  the Borrower to do so, and without any  liability to the Borrower for the
price  obtained in any such sale or any tax liability of the Borrower  resulting
from any such sale.  The  Commitments  of the Banks shall also reduce ratably by
the amount of any mandatory  prepayments of Borrowings from Asset Sales or Asset
Recoveries made subsequent to the Sale-Leaseback  Date pursuant to Section 2.9.2
(subject to the limitations thereon set forth therein);  it being understood and
agreed in connection  therewith that any such reductions to the Commitments made
from Asset Sales or Asset Recoveries  occurring subsequent to the Sale-Leaseback
Date (excluding  Sale-Leaseback  Proceeds,  whenever  received) shall be counted
against the amount of the quarterly reductions in the Commitments  prescribed in
the table set forth above.  For example,  and without  limitation,  if the total
amount of Asset  Recoveries  and Net Cash  Proceeds from Asset Sales made during
the  period  subsequent  to the  Sale-Leaseback  Date but prior to April 4, 2001
equals  $4,000,000,  and the  Commitments  have been reduced by $3,000,000 as of
such date in accordance with the terms of Section 2.9.2, then, on April 4, 2001,
an additional  $4,500,000 of the Commitments  shall be required to be reduced in
order that total  reductions in  Commitments  by such date amount to $7,500,000.
The  Commitments,  once reduced pursuant to the operation of this Section 2.7.3,
shall not be  reinstated  by the Banks;  that is, all such  reductions  shall be
permanent.

     The unused  commitment fees,  payable to each Bank in respect of its Unused
Commitment  shall continue to be due and payable at the times and in the amounts
prescribed in Section  2.6.1,  notwithstanding  implementation  of the foregoing
reductions in Commitments  (however,  in accordance with the definition thereof,
the Unused  Commitments  shall  adjust  consistent  with each  reduction  in the
Commitments  and the  amounts of the unused  commitment  fees shall be  adjusted
accordingly).

     3.3. Asset Sales and Asset Recoveries. Existing Section 2.9.2 of the Credit
Agreement shall be deleted in its entirety and the following  revised version of
said Section 2.9.2 shall be substituted in its place (in order to reflect, among
other  things,  a  revised  methodology  in  determining   concurrent  mandatory
reductions in Commitments):

     2.9.2.  Asset  Sales and  Asset  Recoveries.  To the  extent  that,  (i) in
accordance  with the  provisions  of Section  5.11,  the  Borrower or any of its
Subsidiaries  consummates any Asset Sale on or subsequent to the  Sale-Leaseback
Date,  or (ii) the  Borrower  or any of its  Subsidiaries  collects  any loan or
advance  made  pursuant to clause (xi) of Section  5.20 or  otherwise  makes any
recoveries  in  respect  of any  "investments"  (as that term is  defined in the
introductory paragraph to Section 5.20, and including particularly,  but without
limitation,  the "Real Receivable," as that term is defined in Section 2.2(f) of
Consent  and Waiver  No. 3 to this  Agreement)  (the  foregoing  herein  called,
individually  and  collectively,  "Asset  Recoveries"),  on or subsequent to the
Sale-Leaseback  Date,  then,  as soon as received,  the Borrower  shall apply an
amount equal to one hundred  percent  (100%) of the Net Cash  Proceeds from such
Asset Sale, in the case of clause (i) above,  and one hundred  percent (100%) of
the amount of such Asset  Recovery,  in the case of clause (ii) above,  to repay
then  outstanding  Revolving  Loans and, if Revolving Loans are reduced to zero,
Swing  Loans,  plus,  in each  case,  accrued  interest  thereon  to the date of
prepayment and any compensation required to be paid to any Banks by Section 8.6.
In each such case,  the  Commitments  of the Banks shall also be  simultaneously
reduced  by an  amount  equal  to  seventy-five  percent  (75%) of such Net Cash
Proceeds so received and applied;  provided,  however, that, notwithstanding the
foregoing,  (i) in respect of Sale-Leaseback  Proceeds, the terms of Section 2.1
of the Fourth Amendment shall govern and control,  and (ii) if and to the extent
any Event of Default or  Default  exists at the time any such Net Cash  Proceeds
are received and applied,  the Commitments shall reduce,  instead,  by an amount
equal to one hundred percent (100%) of such Net Cash Proceeds.

     3.4.  Modifications  to Existing  Financial  Covenants  and Addition of New
Financial  Covenant.  Existing  Sections  5.4,  5.5,  5.6 and 5.7 of the  Credit

<PAGE>

Agreement  shall be deleted,  each in its entirety,  and the  following  revised
versions  of said  Sections  5.4,  5.5,  5.6 and  5.7,  respectively,  shall  be
substituted  in their  place  and any  Default  or Event of  Default  heretofore
existing  solely in respect of the  Borrower's  failure to comply with  Sections
5.4, 5.5, 5.6 and 5.7 for the Fiscal  Quarter  ending  October 1, 2000 (prior to
giving effect to this Amendment) are hereby waived by the Banks:

     SECTION   5.4   Adjusted   Total   Debt/Adjusted   Total   Capital   Ratio.

     The Adjusted Total  Debt/Adjusted  Total Capital Ratio will not at any time
exceed .73:1.0.

     SECTION 5.5 Fixed Charge Coverage Ratio.

     Borrower's  Fixed  Charge  Coverage  Ratio,  measured on a rolling four (4)
Fiscal  Quarters'  basis, as of the end of each Fiscal Quarter,  commencing with
the Fiscal Quarter ending closest to October 1, 2000, shall be not less than the
ratio  prescribed below for each Fiscal Quarter  prescribed below  corresponding
thereto:

                  Fiscal Quarter Ending:                             Ratio
                  ---------------------                              -----
                  October 1, 2000                                    1.10:1
                  December 31, 2000                                  1.25:1
                  April 4, 2001                                      1.30:1
                  July 1, 2001                                       1.30:1
                  September 30, 2001                                 1.40:1
                  December 30, 2001                                  1.45:1
                  March 31, 2002                                     1.50:1
                  and thereafter

     SECTION 5.6 Total Debt/EBITDA Ratio.

     The ratio  which (i) the Total Debt of the  Borrower  and its  Consolidated
Subsidiaries  at the end of any  Fiscal  Quarter,  commencing  with  the  Fiscal
Quarter  ended  closest  to  October  1,  2000,  bears to (ii) the EBITDA of the
Borrower  and its  Consolidated  Subsidiaries,  measured  on a rolling  four (4)
Fiscal  Quarters'  basis  as of the  end of  such  Fiscal  Quarter  (the  "Total
Debt/EBITDA Ratio"), shall be not more than the ratio prescribed below as of the
end of each Fiscal Quarter corresponding thereto:

                  Fiscal Quarter Ending:                             Ratio
                  ---------------------                              -----
                  October 1, 2000                                    6.00:1
                  December 31, 2000                                  4.70:1
                  April 4, 2001                                      4.45:1
                  July 1, 2001                                       4.40:1
                  September 30, 2001                                 4.10:1
                  December 30, 2001                                  3.90:1
                  March 31, 2002                                     3.75:1
                  and thereafter

     In computing  EBITDA in respect of the foregoing ratio, the ratio set forth
in Section 5.7 below and the minimum  amount of EBITDA set forth in Section 5.7A
below,  (a) any asset or stock  dispositions  by the Borrower  consisting of the
sale of a business line, segment or other group of related restaurants occurring
within a Fiscal  Quarter  shall  be  accounted  for by  reducing  EBITDA  by the
individual  EBITDA  attributable to each store within such group for such Fiscal
Quarter and the three (3)  preceding  Fiscal  Quarters or, in the event that any
such restaurant had negative  individual EBITDA for such periods,  by increasing

<PAGE>

EBITDA  by the  amount  of such  negative  EBITDA;  and (b) any  asset  or stock
acquisitions  by the Borrower,  to the extent  otherwise then permitted to occur
hereunder (and without implying such permission),  consisting of the purchase of
a business, line, segment or other group of related restaurants occurring within
a Fiscal  Quarter shall be accounted for by increasing  EBITDA by the individual
EBITDA  attributable to each store within such group for such Fiscal Quarter and
for the three (3) preceding Fiscal Quarters or, in the event that any such store
had negative  individual  EBITDA for such periods,  by decreasing  EBITDA by the
amount of such negative EBITDA;  in each instance,  on an historical basis, in a
manner which the Borrower shall determine, but subject to prior review with, and
approval by, the Administrative Agent.

     SECTION 5.7. Total Senior  Debt/EBITDA Ratio. The ratio which (i) the Total
Senior Debt of the Borrower and its Consolidated  Subsidiaries at the end of any
Fiscal  Quarter,  commencing with the Fiscal Quarter ended closest to October 1,
2000,  bears to (ii) EBITDA of the Borrower and its  Consolidated  Subsidiaries,
measured  on a rolling  four (4)  Fiscal  Quarters'  basis as of the end of such
Fiscal Quarter  (adjusted,  however,  as reflected in Section 5.6), shall be not
more than the amounts  prescribed below for each Fiscal Quarter prescribed below
corresponding thereto:

                  Fiscal Quarter Ending:                             Ratio
                  ---------------------                              -----
                  October 1, 2000                                    4.30:1
                  December 31, 2000                                  3.25:1
                  April 4, 2001                                      3.05:1
                  July 1, 2001                                       3.00:1
                  September 30, 2001                                 2.75:1
                  December 30, 2001                                  2.55:1
                  March 31, 2002                                     2.50:1
                  and thereafter

     and there  shall be added to the Credit  Agreement,  immediately  following
amended Section 5.7 thereof (see above), a new Section 5.7A, to read as follows:

     SECTION 5.7A.  Minimum EBITDA.  EBITDA of the Borrower and its Consolidated
Subsidiaries  for each of the following  Fiscal  Quarters shall be at least that
amount prescribed opposite such Fiscal Quarter:

                Fiscal Quarter Ending:                             EBITDA
                ---------------------                              ------
                December 31, 2000                               $17,900,000
                April 4, 2001                                   $17,700,000
                July 1, 2001                                    $20,000,000
                September 30, 2001                              $15,000,000
                December 30, 2001                               $19,000,000
                March 31, 2002                                  $17,000,000
                and thereafter

     3.5.  Asset  Sales.  There  shall be  deemed  added to the end of  existing
Section 5.11 of the Credit Agreement the following sentence:

     Notwithstanding,  however,  the preceding terms of this Section 5.11 or the
terms of clause  (vii) of Section  9.6 below,  so long as no Default or Event of
Default shall have  occurred,  no consent of the Banks shall be required for any
Asset Sale otherwise made in conformity with the preceding terms of this Section
5.11 (but for the  provision  concerning  consents)  if, but only if, such Asset
Sale  concerns the  properties  listed below and the Net Cash  Proceeds  derived
therefrom  are not  less  than  ninety  percent  (90%)  of the  targeted  amount
prescribed  below  opposite  each such listed  property  (the  foregoing  herein
called, for each such property, "Minimum Net Cash Proceeds"):

<PAGE>

------------------------------------------------------ -------------------------
                                                                 Targeted
               Property                                          Net Cash
                                                                 Proceeds
------------------------------------------------------ -------------------------
      Harrigan's real estate                                     $2,000,000
------------------------------------------------------ -------------------------
      Sale of DP Alpharetta site                                 $1,000,000
------------------------------------------------------ -------------------------
      Sale of DP office (Bedford, TX)                            $5,250,000
------------------------------------------------------ -------------------------
      Sale of Gainesville Hardee's                                 $810,000
------------------------------------------------------ -------------------------
      Sale of Hops Aventura site                                 $1,000,000
------------------------------------------------------ -------------------------
      Sale of Williamsburg Applebee's                              $480,000
------------------------------------------------------ -------------------------
      Collection of Wis. Hospitality note                        $1,200,000
------------------------------------------------------ -------------------------
      Collection of Apple Capital note (2001)                    $2,400,000
------------------------------------------------------ -------------------------
      Sale of Belgo Group PLC stock (203,233,460 shares)         $7,000,000
      (prorated per share, if less than 100% is sold)
------------------------------------------------------ -------------------------

     and the Administrative  Agent may, without the consent of any Bank, release
the Liens of the Administrative Agent on any such properties made subject to any
Asset  Sale  provided  that such  Minimum  Net Cash  Proceeds  are  received  as
prescribed hereinabove prior thereto and applied as prescribed in Section 2.9.2.

     3.6. New Limit on Capital Expenditures.  Clause (ii) of Section 5.20 of the
Credit  Agreement  shall be deleted in its  entirety and the  following  revised
version of said clause (ii) of Section 5.20 shall be substituted in its place:

     (ii) Capital Expenditures. Make capital expenditures in the ordinary course
of business;  provided,  however, commencing with the Fiscal Year ending closest
to December  31,  2000,  capital  expenditures  shall be  limited,  in amount as
follows:  (i)  for  the  Fiscal  Year  ending  closest  to  December  31,  2000,
$50,000,000;  (ii) for the Fiscal Year  ending  closest to  December  31,  2001,
$25,000,000;  provided,  however, that, within the Fiscal Year ending closest to
December 31, 2001, in addition to the aforesaid  overall  limitation (A) capital
expenditures  shall  not  exceed,  in any event (1)  $6,600,000  for the  Fiscal
Quarter ending April 4, 2001, (2)  $13,200,000,  on a cumulative  basis, for the
two (2) Fiscal Quarters'  period ending July 1, 2001, and (3) $20,400,000,  on a
cumulative basis, for the three (3) Fiscal Quarters' period ending September 30,
2001, and (B) no such capital  expenditures  in excess of $3,000,000 may be made
in any one Fiscal  Quarter in such  Fiscal  Year  unless and until the Agent has
received  financial  statements  from the  Borrower  confirming  its  continuing
compliance  with all  financial  covenants set forth in Sections 5.4 through 5.7
hereof and this clause (ii) of Section 5.20 as of and for the  preceding  Fiscal
Quarter;  and (iii) for each  Fiscal Year  subsequent  to the fiscal year ending
closest to December 31, 2001, $12,500,000. In addition to the foregoing, in each
Fiscal Year  subsequent to the Fiscal Year ending  closest to December 31, 2000,
capital expenditures shall not include any expenditures for the purchase of land
or  buildings  or real  estate  interests  other  than  fixtures  and  leasehold
improvements.

     3.7. Special Life Insurance Program. The permission,  heretofore granted to
the Borrower, pursuant to Section 5.20(ix) of the Credit Agreement, to invest up
to $850,000 per Fiscal Year in the making of annual premiums  payable on certain
life insurance  policies on the lives of Tom E. DuPree,  Jr. and Anne DuPree, is
hereby revoked,  effective  immediately,  but any funds invested therein through
the Amendment Date shall remain as permitted investments.

<PAGE>

     3.8.  Restaurant   Concepts.   Notwithstanding  any  other  prohibition  or
restriction  thereon heretofore  existing in respect of investment in restaurant
concepts and joint ventures under Section  5.20(x) of the Credit  Agreement,  so
long as no Default has occurred and is  continuing  or would be caused  thereby,
the Borrower may invest up to $1,000,000, in the aggregate, in the "San Marzano"
restaurant concept/joint venture subsequent to the Amendment Date (the amount of
investment  by the  Borrower  therein  as of the  Amendment  Date  being  zero);
provided, however, that, subsequent to the Amendment Date no further investments
may be  made  pursuant  to  said  Section  5.20(x),  of  whatever  sort,  in any
restaurant concept or joint venture except for the aforementioned  "San Marzano"
investment.

     3.9. Certain Advances to Affiliates.  All loans and advances to Affiliates,
including, particularly, but without limitation, Tom E. DuPree, Jr., outstanding
on the Amendment  Date  pursuant to the  operation and effect of former  Section
5.20(xi)  (none being  permitted to be made since March 31, 2000 in  conjunction
with the  elimination  of the  permissions  granted under said clause (xi) as of
such  date),  shall be  repaid  in full not  later  than the  Termination  Date,
notwithstanding any provision of the Credit Agreement  heretofore  requiring any
earlier date;  e.g.,  March 31, 2001, as the deadline date for such full payment
to be made.

     3.10.  Restrictions  on  Dividends.  Existing  Section  5.22 of the  Credit
Agreement is hereby deleted in its entirety and the following revised version of
said Section 5.22 is substituted in its place:

     SECTION 5.22 Dividends and  Distributions.  The Borrower will not, nor will
the Borrower permit any Subsidiary to, (i) pay any cash dividend;  (ii) make any
capital  distribution;  (iii) redeem,  repurchase or retire for cash any Capital
Stock;  provided,   however,  that,  notwithstanding  the  foregoing,  (A)  each
Subsidiary may make  Distributions on any Capital Stock of such Subsidiary owned
by the  Borrower  or  another  Consolidated  Subsidiary  which  is a  Subsidiary
Guarantor,  and (B) the  Borrower  may make  distributions  from time to time in
respect of the TECONS as and when due and payable in  accordance  with the terms
thereof.

4.       Miscellaneous.
----------------------

     4.1.  Effect and Effective  Date of  Amendments.  The effective date of the
amendments to the Credit Agreement set forth  hereinabove shall be the Amendment
Date.  Except as set forth expressly  herein,  all terms of the Credit Agreement
shall remain  unchanged and in full force and effect.  It is not intended by the
Parties that this Amendment constitute, and this Amendment, shall not constitute
a novation.

     4.2.  Georgia Law. This Amendment shall be construed in accordance with and
governed by the law of the State of Georgia.

     4.3.  Counterparts.   This  Amendment  may  be  signed  in  any  number  of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

     4.4. Entire  Agreement.  This Amendment  constitutes  the entire  agreement
among the parties with respect to the subject matter hereof, and shall supersede
and replace any  agreements or  commitments  to agree,  whether oral or written,
heretofore existing in regard thereto.

     4.5.  Restatement of  Representations  and Warranties;  Certifications.  To
induce all other Parties to enter into this  Amendment,  the Borrower (A) hereby
restates and renews each and every  representation and warranty  heretofore made
by it under,  or in connection  with,  the execution and delivery of, the Credit
Agreement;  (B) hereby restates,  ratifies and reaffirms each and every term and

<PAGE>

condition set forth in the Credit Agreement,  as amended hereby, and in the Loan
Documents,  as amended  hereby,  effective as of the date  hereof.  The Borrower
hereby  certifies that,  after giving effect to this  Amendment,  no Default has
occurred which is continuing other than any which,  heretofore,  has been waived
in writing by the Banks.  The Borrower hereby further  certifies that, as of the
date hereof, no right of setoff, defense,  counterclaim or cross-claim exists in
its  or  any  Subsidiary's  favor  in  respect  of  any  debts,  liabilities  or
obligations of the Borrower or any Subsidiary to any Lender,  the Administrative
Agent or the Syndication Agent and the agents, officers and employees of each of
them (the "Other  Parties")  arising under or pursuant to the Credit  Agreement;
and the  Borrower,  for itself and each  Subsidiary,  hereby waives and releases
each of the Other  Parties  from any  claim,  action  or cause of  action  which
exists,  or hereafter may exist, in the Borrower's or any Subsidiary's  favor in
respect of any action (or  failure to act) taken (or omitted to be taken) by any
of the Other Parties in connection herewith or pursuant to the Credit Agreement.

     4.6. Borrower as Agent. In executing this Amendment, Borrower is acting for
itself  individually and as agent for each Subsidiary which is party to any Loan
Document,  and, in the latter regard,  binding each such Subsidiary to the terms
hereof  without  necessity of giving further notice to, or obtaining any further
consent from, any such Subsidiary.

     4.7.  Introduction  of  Consultants.  As  soon  as  practicable  after  the
Amendment  Date,  but  in any  event  not  later  than  November  3,  2000,  the
Administrative Agent shall, for the benefit of the Banks, retain the services of
a  nationally  recognized  firm of forensic  accounting  consultants  reasonably
acceptable  to the Required  Banks for the purpose of reviewing  the  Borrower's
historical and forecasted financial performance and condition (with a particular
emphasis  on cash  flows)  and  related  matters  pertaining  to the  Borrower's
business  operations on an ongoing basis;  and the Borrower shall  reimburse the
Agent for the reasonable costs and expenses of such consultants,  provided that,
unless an Event of Default then exists,  such  reimbursements  shall not exceed,
within  any  consecutive  twelve  (12)  months'  period,  the  aggregate  sum of
$100,000.  In further regard to the foregoing,  the Borrower agrees to cooperate
with such consultants in accomplishing such review on a timely basis.

     4.8. Additional Reporting. With reference to Section 5.19, henceforth,  the
Borrower  shall  provide the Banks weekly with a rolling cash flow  forecast for
the thirteen (13) weeks following the report date, together with a report of the
prior week's actual performance compared to projections,  to be in such form and
detail as the  Administrative  Agent or the  Syndication  Agent  may  reasonably
request.

     5. Conditions Precedent.  The following shall constitute express conditions
precedent to any  obligations  of the Banks  hereunder:  (i) the  Administrative
Agent  shall  have  received  from the  Borrower  and each Bank a duly  executed
counterpart of this Amendment; (ii) the Administrative Agent shall have received
from the Secretary  (or any  Assistant  Secretary) of the Borrower an incumbency
and authority  certificate in respect of the officer(s) executing this Amendment
on  behalf  of  the  Borrower,  in  form  and  substance   satisfactory  to  the
Administrative  Agent; (iii) the  Administrative  Agent shall have received from
the Borrower's  legal counsel an opinion of counsel as to this  transaction  and
the transactions  contemplated  hereby; (iv) the Administrative Agent shall have
received   from  the   Borrower,   reviewed   and  approved  the  terms  of  the
Sale-Leaseback  Agreement,  the SPV Master Lease,  the SPV Master Lease Guaranty
and all other documents  pertaining to the  Sale-Leaseback  Transactions and, to
the  extent   occurring  on  the   Sale-Leaseback   Date,   the  Swap  Equipment
Transactions;  (v) the Sale-Leaseback  Transactions and, to the extent occurring
on the  Sale-Leaseback  Date,  the Swap Equipment  Transactions  shall have been
consummated in accordance  with the terms hereof and,  without  limitation,  the
conditions  described  in Section  2.1,  excluding  those in clause (v) thereof,
shall have been satisfied; and (vi) the Administrative Agent shall have received
from the Borrower  evidence  satisfactory to the  Administrative  Agent that all
consents and approvals of third party  creditors of the Borrower  (excluding the
Banks) necessary to permit the consummation of the  Sale-Leaseback  Transactions
and, to the extent  occurring on the  Sale-Leaseback  Date,  the Swap  Equipment
Transactions  have been  obtained  on terms  which do not  contravene  any terms
hereof or of the Credit Agreement. If each of the foregoing conditions precedent
is not  completely  fulfilled by October 20, 2000,  then effective on such date,
this Amendment shall cease to be effective.

<PAGE>

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

                                            "BORROWER"

                                            AVADO BRANDS, INC.

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

                                            Attest:
                                                   -----------------------------
                                                     Name:
                                                          ----------------------
                                                     Title:
                                                           ---------------------

<PAGE>

                                            "BANKS"

                                            WACHOVIA BANK, NATIONAL
                                            ASSOCIATION, as the Administrative
                                            Agent and as a Bank

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

<PAGE>

                        FLEET NATIONAL BANK, as successor
                                            to BANKBOSTON, N.A., as Syndication
                                            Agent and as a Bank

                                             By:________________________________
                                                  Name:_________________________
                                                  Title:________________________

<PAGE>

                                            SUNTRUST BANK, as a Bank

                                             By:________________________________
                                                 Name:__________________________
                                                 Title:_________________________

<PAGE>

                                            COOPERATIEVE CENTRALE
                                            RAIFFEISEN-BOERENLEENBANK B.A.,
                                            "RABOBANK INTERNATIONAL,"
                                            NEW YORK BRANCH, as a Bank

                                            By:_________________________________
                                                 Name:__________________________
                                                 Title:_________________________

                                            By:_________________________________
                                                 Name:__________________________
                                                 Title:_________________________

<PAGE>

                                            COMERICA BANK, as a Bank

                                            By:_________________________________
                                                  Name:_________________________
                                                  Title:________________________

<PAGE>

                                            SOUTHTRUST BANK, NATIONAL
                                            ASSOCIATION, as a Bank

                                            By:_________________________________
                                                  Name:_________________________
                                                  Title:________________________Exhibit 10.1

                        AMENDMENT TO EMPLOYMENT AGREEMENT

         AMENDMENT,  dated  as of  August  9,  2000  (the  "Amendment"),  to the
Employment  Agreement,  dated as of February 1, 2000 (the  "Agreement"),  by and
between THCG Ventures, LLC, a Delaware limited liability company (the "Company")
and Evan Marks (the "Executive").

         WHEREAS,  the  Company  and  Executive  desire to amend  the  Agreement
pursuant to Section 11 thereof;

         NOW, THEREFORE,  for good and valuable  consideration,  the adequacy of
which is hereby acknowledged, the parties hereto hereby agree as follows:

         1. The first sentence of Section (b) of the Agreement is hereby amended
to provide as follows:

         "The term of this  Agreement  shall commence on the Effective Date and,
unless earlier terminated in accordance with Paragraph 5 hereof, shall terminate
the day after the option to be awarded to the  Executive  under  Paragraph  3(d)
shall have completely vested (the "Initial Term")."

         2. Section 2(a) of the Agreement is hereby amended to read as follows:

                  "(a) During the Term,  the Executive  shall serve as President
         and Chief  Executive  Officer  of the  Company  and as  Executive  Vice
         President  and  Chief  Operating   Officer  of  the  Company's   parent
         corporation,  THCG, Inc. ("THCG"),  and shall report to managing member
         of the Company  (the  "Managing  Member") and the Board of Directors of
         THCG  and,  in his  capacity  as  Executive  Vice  President  and Chief
         Operating Officer of THCG, to the Chief Executive Officer of THCG.

         3. Section 2(b) of the Agreement is hereby amended to read as follows:

                  "(b)   The   Executive   shall   have   such   authority   and
         responsibility  as is  customary  for such  position  or  positions  in
         businesses   comparable   in  size  and   function,   and  such   other
         responsibilities  as may reasonable be assigned by the Managing Member,
         the Board of  Director  s of THCG or the Chief  Executive  Officer,  as
         applicable."

         4. Section 3 of the Agreement is hereby amended by adding the following
new Paragraph (d) thereto:

                  "(d) The Executive shall receive an option,  to be awarded the
         effective  date of the First  Amendment  hereto,  to  purchase  500,000
         shares of the common  stock of THCG at an  exercise  price equal to the
         fair market  value of such common  stock on the date of the award,  but
         not greater than $5.00 per share.  Such option  shall vest  pro-rata in
         twelve  equal  quarterly  installments,  with the first such  quarterly
         installment  vesting  November  9, 2000.  In the event the  Executive's
         employment  hereunder is terminated prior to the end of the Term by the
         Company  without  Cause  pursuant to Paragraph  5(e) hereof,  of by the

<PAGE>

         Executive for Good Reason  pursuant to Paragraph 5(e) hereof,  then any
         unvested  shares of common stock under the option  provided for in this
         Section 3(d) or under any other option then held by the Executive shall
         accelerate  and  become  fully  exercisable  as of  the  date  of  such
         termination of  employment.  The option shall be granted under the 2000
         THCG,  Inc.  Stock  Incentive  Plan and shall  terminate on November 9,
         2010.  The  option  shall be  included  in the  Company's  registration
         statement on Form S-8."

         5. Except as herein expressly amended,  all terms and provisions of the
Agreement are and shall remain in full force and effect.

         6. This  Amendment  shall be  governed  by the laws of the State of New
York.

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

         IN WITNESS WHEREOF,  the parties have executed this Amendment as of the
date first written above.

                                        THCG, INC.

                                        By: /s/ Joseph D. Mark
                                            -----------------------------
                                        Name:  Joseph D. Mark
                                        Title: Co-Chairman of the Board
                                               and Chief Executive Officer

                                        EXECUTIVE

                                        /s/ Evan Marks
                                        ----------------------------------
                                            Evan Marks

                                        THCG VENTURES,LLC

                                        By: /s/ Michael Gegenheimer
                                           -------------------------------
                                        Name:  Michael Gegenheimer
                                        Title: Managing Director

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