Document:

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                                                                    EXHIBIT 10.1

                   FIRST AMENDED AND RESTATED CREDIT AGREEMENT

       THIS FIRST AMENDED AND RESTATED CREDIT AGREEMENT ("Agreement") is entered
into as of June 1, 2002, by and between GADZOOKS, INC., a Texas corporation
("Borrower"), and WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION ("Bank").

                                     RECITAL

       WHEREAS, Borrower is currently indebted to Bank pursuant to the terms and
conditions of that certain Credit Agreement between Borrower and Bank dated as
of January 30, 1997, as amended from time to time ("Credit Agreement").

        WHEREAS, Borrower has requested that Bank extend credit to Borrower as
described below, and Bank has agreed to provide such credit to Borrower on the
terms and conditions contained herein.

       WHEREAS, Bank and Borrower have agreed to certain changes in the terms
and conditions set forth in the Credit Agreement and have agreed to amend and
restate the Credit Agreement to reflect said changes.

        NOW, THEREFORE, for valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Bank and Borrower hereby agree as follows:

                                    ARTICLE I
                                   THE CREDIT

       SECTION 1.1. LINE OF CREDIT.

       (a) Line of Credit. Subject to the terms and conditions of this
Agreement, Bank hereby agrees to make advances to Borrower from time to time up
to and including June 1, 2003, not to exceed at any time the aggregate principal
amount of Fifteen Million Dollars ($15,000,000.00) ("Line of Credit"), the
proceeds of which shall be used to finance Borrower's working capital, general
corporate purposes and expansion plans. Borrower's obligation to repay advances
under the Line of Credit shall be evidenced by a promissory note substantially
in the form of Exhibit A attached hereto ("Line of Credit Note"), all terms of
which are incorporated herein by this reference.

       (b) Limitation on Borrowings. Outstanding borrowings under the Line of
Credit, to a maximum of the principal amount set forth above, shall not at any
time exceed the product of Annual Traditional Cash Flow multiplied by 1.40. As
used in this Agreement, the term "Annual Traditional Cash Flow" will mean, as of
any date of determination for the twelve months ended on such date, the sum of
the Borrower's net income, plus depreciation and amortization (each determined
in accordance with GAAP), minus any cash gains resulting from the sale of assets
of the Borrower outside of the normal course of the Borrower's business, minus
all non-cash gains.

       (c) Letter of Credit Subfeature. As a subfeature under the Line of
Credit, Bank agrees from time to time during the term thereof to issue multiple
letters of credit for the account of Borrower (each, a "Letter of Credit" and
collectively, "Letters of Credit"); provided however, that the form and
substance of each Letter of Credit shall be subject to approval by Bank, in its
sole discretion; and provided further, that the aggregate undrawn amount of all
outstanding Letters of

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Credit shall not at any time exceed Five Million Dollars ($5,000,000.00). Each
Letter of Credit shall be issued for a term not to exceed one hundred eighty
(180) days, as designated by Borrower; provided however, that no Letter of
Credit shall have an expiration date subsequent to December 30, 2003. The
undrawn amount of all Letters of Credit shall be reserved under the Line of
Credit and shall not be available for borrowings thereunder. Each Letter of
Credit shall be subject to the additional terms and conditions of the Letter of
Credit Agreement and related documents, if any, required by Bank in connection
with the issuance thereof (each, a "Letter of Credit Agreement" and
collectively, "Letter of Credit Agreements"). Each draft paid by Bank under a
Letter of Credit shall be deemed an advance under the Line of Credit and shall
be repaid by Borrower in accordance with the terms and conditions of this
Agreement applicable to such advances; provided however, that if advances under
the Line of Credit are not available, for any reason, at the time any draft is
paid by Bank, then Borrower shall immediately pay to Bank the full amount of
such draft, together with interest thereon from the date such amount is paid by
Bank to the date such amount is fully repaid by Borrower, at the rate of
interest applicable to advances under the Line of Credit. In such event Borrower
agrees that Bank, in its sole discretion, may debit any demand deposit account
maintained by Borrower with Bank for the amount of any such draft.

        Bank may, at its option, require, as security for any Letter of Credit
with an expiration date subsequent to the maturity of the Line of Credit, that
Borrower provide "Cash Collateral", defined as cash, cash equivalents and/or
publicly traded/quoted marketable securities acceptable to Bank in its sole
discretion, with an aggregate fair market value not at any time less than the
amount of the Unpaid and Undrawn Balance (as defined below).

        As used above, "Unpaid and Undrawn Balance" means, at any time, the
entire amount that has not been paid by Bank under all the Letters of Credit
issued for Borrower's account, including, without limitation, the amount of each
draft on which Bank has not yet effected payment as well as the amount undrawn
under all such Letters of Credit.

       (d) Borrowing and Repayment. Borrower may from time to time during the
term of the Line of Credit borrow, partially or wholly repay its outstanding
borrowings, and reborrow, subject to all of the limitations, terms and
conditions contained herein or in the Line of Credit Note; provided however,
that the total outstanding borrowings under the Line of Credit shall not at any
time exceed the maximum principal amount available thereunder, as set forth
above.

       SECTION 1.2. INTEREST/FEES.

       (a) Interest. The outstanding principal balance of the Line Of Credit
shall bear interest at the rate of interest set forth in the Line of Credit
Note.

       (b) Computation and Payment. Interest shall be computed on the basis of a
360-day year, actual days elapsed, unless such calculation would result in a
usurious rate, in which case interest shall be computed on the basis of a
365/366-day year, as the case may be, actual days elapsed. Interest shall be
payable at the times and place set forth in the Line of Credit Note.

       (c) Loan Origination Fee. Borrower shall pay to Bank a non-refundable
loan origination fee for the Line of Credit equal to Fifteen Thousand Dollars
($15,000.00), which fee shall be due and payable in full on June 1, 2002.

       (d) Unused Commitment Fee. Borrower shall pay to Bank a fee equal to
thirty-seven and one-half percent (.375%) per annum (computed on the basis of a
360-day year, actual days elapsed) on the average daily unused amount of the
Line of Credit, which fee shall be

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calculated on a calendar quarter basis by Bank and shall be due and payable by
Borrower in arrears on the fifth day of each calendar quarter.

       (e) Letter of Credit Fees. Borrower shall pay to Bank fees upon the
issuance of each Letter of Credit, upon the payment or negotiation by Bank of
each draft under any Letter of Credit and upon the occurrence of any other
activity with respect to any Letter of Credit (including without limitation, the
transfer, amendment or cancellation of any Letter of Credit) determined in
accordance with Bank's standard fees and charges then in effect for such
activity. As of the date of this renewal those fees and charges are listed at
Exhibit B. While these fees and charges are subject to change at the Bank's
discretion they will remain in effect until the maturity of the Line of Credit
on June 1, 2003.

       SECTION 1.3. COLLECTION OF PAYMENTS. Borrower authorizes Bank to collect
all interest and fees due under the Line of Credit by charging Borrower's demand
deposit account number 4159726405 with Bank, or any other demand deposit account
maintained by Borrower with Bank, for the full amount thereof. Should there be
insufficient funds in any such demand deposit account to pay all such sums when
due, the full amount of such deficiency shall be immediately due and payable by
Borrower.

                                   ARTICLE II
                         REPRESENTATIONS AND WARRANTIES

       Borrower makes the following representations and warranties to Bank,
which representations and warranties shall survive the execution of this
Agreement and shall continue in full force and effect until the full and final
payment, and satisfaction and discharge, of all obligations of Borrower to Bank
subject to this Agreement.

       SECTION 2.1. LEGAL STATUS. Borrower is a corporation, duly organized and
existing and in good standing under the laws of the State of Texas, and is
qualified or licensed to do business (and is in good standing as a foreign
corporation, if applicable) in all jurisdictions in which the failure to so
qualify or to be so licensed could have a material adverse effect on Borrower.

       SECTION 2.2. AUTHORIZATION AND VALIDITY. This Agreement, the Line of
Credit Note, and each other document, contract and instrument required hereby or
at any time hereafter delivered to Bank in connection herewith (collectively,
the "Loan Documents") have been duly authorized, and upon their execution and
delivery in accordance with the provisions hereof will constitute legal, valid
and binding agreements and obligations of Borrower or the party which executes
the same, enforceable in accordance with their respective terms.

       SECTION 2.3. NO VIOLATION. The execution, delivery and performance by
Borrower of each of the Loan Documents do not violate any provision of any law
or regulation, or contravene any provision of the Articles of Incorporation or
By-Laws of Borrower, or result in any breach of or default under any material
contract, obligation, indenture or other instrument to which Borrower is a party
or by which Borrower may be bound.

       SECTION 2.4. LITIGATION. There are no pending, or to the best of
Borrower's knowledge threatened, actions, claims, investigations, suits or
proceedings by or before any governmental authority, arbitrator, court or
administrative agency which could reasonably be expected to have a material
adverse effect on the financial condition or operation of Borrower other than
those disclosed by Borrower to Bank in writing prior to the date hereof.

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       SECTION 2.5. CORRECTNESS OF FINANCIAL STATEMENT. The financial statement
of Borrower dated _________________, a true copy of which has been delivered by
Borrower to Bank prior to the date hereof, (a) presents fairly the financial
condition of Borrower, (b) discloses all liabilities of Borrower that are
required to be reflected or reserved against under generally accepted accounting
principles, whether liquidated or unliquidated, fixed or contingent, and (c) has
been prepared in accordance with generally accepted accounting principles
consistently applied. Since the date of such financial statement there has been
no material adverse change in the financial condition of Borrower, nor has
Borrower mortgaged, pledged, granted a security interest in or otherwise
encumbered any of its assets or properties except in favor of Bank or as
otherwise permitted by Bank in writing.

       SECTION 2.6. INCOME TAX RETURNS. Borrower has no knowledge of any pending
assessments or adjustments of its income tax payable with respect to any year.

       SECTION 2.7. NO SUBORDINATION. There is no agreement, indenture, contract
or instrument to which Borrower is a party or by which Borrower may be bound
that requires the subordination in right of payment of any of Borrower's
obligations subject to this Agreement to any other obligation of Borrower.

       SECTION 2.8. PERMITS, FRANCHISES. Borrower possesses, and will hereafter
possess, all material permits, consents, approvals, franchises and licenses
required and rights to all trademarks, trade names, patents, and fictitious
names, if any, necessary to enable it to conduct the business in which it is now
engaged in compliance with applicable law.

       SECTION 2.9. ERISA. Borrower is in compliance in all material respects
with all applicable provisions of the Employee Retirement Income Security Act of
1974, as amended or recodified from time to time ("ERISA"); Borrower has not
violated any provision of any defined employee pension benefit plan (as defined
in ERISA) maintained or contributed to by Borrower (each, a "Plan"); no
Reportable Event as defined in ERISA has occurred and is continuing with respect
to any Plan initiated by Borrower; Borrower has met its minimum funding
requirements under ERISA with respect to each Plan; and each Plan will be able
to fulfill its benefit obligations as they come due in accordance with the Plan
documents and under generally accepted accounting principles.

       SECTION 2.10. OTHER OBLIGATIONS. Borrower is not in default on any
obligation for borrowed money, any purchase money obligation or any other
material lease, commitment, contract, instrument or obligation.

       SECTION 2.11. ENVIRONMENTAL MATTERS. Except as disclosed by Borrower to
Bank in writing prior to the date hereof, Borrower is in compliance in all
material respects with all applicable federal or state environmental, hazardous
waste, health and safety statutes, and any rules or regulations adopted pursuant
thereto, which govern or affect any of Borrower's operations and/or properties,
including without limitation, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, the Superfund Amendments and
Reauthorization Act of 1986, the Federal Resource Conservation and Recovery Act
of 1976, and the Federal Toxic Substances Control Act, as any of the same may be
amended, modified or supplemented from time to time. None of the operations of
Borrower is the subject of any federal or state investigation evaluating whether
any remedial action involving a material expenditure is needed to respond to a
release of any toxic or hazardous waste or substance into the environment.
Borrower has no material contingent liability in connection with any release of
any toxic or hazardous waste or substance into the environment.

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                                   ARTICLE III
                                   CONDITIONS

       SECTION 3.1. CONDITIONS OF INITIAL EXTENSION OF CREDIT. The obligation of
Bank to make the initial extension of credit contemplated by this Agreement is
subject to the fulfillment to Bank's satisfaction of all of the following
conditions:

       (a) Approval of Bank Counsel. All legal matters incidental to the
extension of credit by Bank shall be satisfactory to Bank's counsel.

       (b) Documentation. Bank shall have received, in form and substance
satisfactory to Bank, each of the following, duly executed:

          (i)     This Agreement and each promissory note or other instrument
                  required hereby.

         (ii)     Corporate Borrowing Resolution.

        (iii)     Certificate of Incumbency.

         (iv)     Such other documents as Bank may require under any other
                  Section of this Agreement.

       The foregoing documents, the documents described in Section 3.2(b) below,
and such other documents, instruments and agreements as may be executed and/or
delivered in connection with this Agreement, as the same may be amended,
modified, extended, renewed or supplemented from time to time, shall be called
the "Loan Documents".

       (c) Financial Condition. There shall have been no material adverse
change, as determined in good faith by Bank, in the financial condition or
business of Borrower or any guarantor hereunder, nor any material decline, as
determined in good faith by Bank, in the market value of any collateral required
hereunder or a substantial or material portion of the assets of Borrower or any
such guarantor.

       SECTION 3.2. CONDITIONS OF EACH EXTENSION OF CREDIT. The obligation of
Bank to make each extension of credit requested by Borrower hereunder shall be
subject to the fulfillment to Bank's satisfaction of each of the following
conditions:

       (a) Compliance. The representations and warranties contained herein and
in each of the other Loan Documents shall be true on and as of the date of the
signing of this Agreement and on the date of each extension of credit by Bank
pursuant hereto, with the same effect as though such representations and
warranties had been made on and as of each such date, and on each such date, no
Event of Default as defined herein, and no condition, event or act which with
the giving of notice or the passage of time or both would constitute such an
Event of Default, shall have occurred and be continuing or shall exist.

       (b) Documentation. Bank shall have received all additional documents
which may be required in connection with such extension of credit.

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       SECTION 3.3 SUBSIDIARY GUARANTY. So long as an obligation exists under
this Agreement, the Line of Credit Note or any other Loan Document, Borrower
will cause any now or hereafter existing Subsidiary (as defined in Section 4.10
of this Agreement) promptly (upon becoming a Subsidiary) to execute and deliver
to Bank an unconditional guaranty of such obligations of Borrower in form and
substance satisfactory to Bank.

                                   ARTICLE IV
                              AFFIRMATIVE COVENANTS

       Borrower covenants that so long as Bank remains committed to extend
credit to Borrower pursuant hereto, or any liabilities (whether direct or
contingent, liquidated or unliquidated) of Borrower to Bank under any of the
Loan Documents remain outstanding, and until payment in full of all obligations
of Borrower subject hereto, Borrower shall, unless Bank otherwise consents in
writing:

       SECTION 4.1. PUNCTUAL PAYMENTS. Punctually pay all principal, interest,
fees or other liabilities due under any of the Loan Documents at the times and
place and in the manner specified therein.

       SECTION 4.2. ACCOUNTING RECORDS. Maintain adequate books and records in
accordance with generally accepted accounting principles consistently applied,
and permit any representative of Bank, at any reasonable time, to inspect, audit
and examine such books and records, to make copies of the same, and to inspect
the properties of Borrower.

       SECTION 4.3. FINANCIAL STATEMENTS. Provide to Bank all of the following,
in form and detail satisfactory to Bank:

       (a) not later than 95 days after and as of the end of each fiscal year,
an audited financial statement of Borrower, prepared by a certified public
accountant, to include balance sheet, income statement, statement of cash flow,
source and application of funds statement, and Form 10-K;

       (b) not later than 50 days after and as of the end of each fiscal
quarter, a Form 10-Q;

       (c) not later than 30 days after and as of the end of the first eleven
months in Borrower's fiscal year, and within 45 days after the end of the
twelfth month of such fiscal year, a financial statement of Borrower, prepared
by Borrower in accordance with Borrower's customary or historical methods of
accounting for such statement;

       (d) not later than 10 days of a request by Bank, an accounts receivable
listing and aging report, an accounts payable listing and aging report, and an
inventory summary;

       (e) upon delivery of the financial statements required pursuant to this
Section 4.3, a Certificate of Compliance duly executed by the president or chief
financial officer or controller of Borrower in a form and condition satisfactory
to Bank in its sole discretion stating (i) whether or not Borrower is in
compliance with the applicable financial covenants of this Agreement as
evidenced by the accompanying financial statements, and if not in compliance,
stating the reasons for such non-compliance, (ii) further stating that there
exists no Event of Default nor any condition, act or event which with the giving
of notice or the passage of time or both would constitute an Event of Default,
and (iii) further certifying that said financial statements present fairly the
financial condition of the Borrower;

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       (f) from time to time such other information as Bank may reasonably
request.

       SECTION 4.4. COMPLIANCE. Preserve and maintain all licenses, permits,
governmental approvals, rights, privileges and franchises necessary for the
conduct of its business; and comply with the provisions of all documents
pursuant to which Borrower is organized and/or which govern Borrower's continued
existence and with the requirements of all laws, rules, regulations and orders
of any governmental authority applicable to Borrower and/or its business.

       SECTION 4.6. FACILITIES. Keep all properties useful or necessary to
Borrower's business in good repair and condition, and from time to time make
necessary repairs, renewals and replacements thereto so that such properties
shall be fully and efficiently preserved and maintained.

       SECTION 4.7. TAXES AND OTHER LIABILITIES. Pay and discharge when due any
and all indebtedness, obligations, assessments and taxes, both real or personal,
including without limitation Federal and state income taxes and state and local
property taxes and assessments, except such (a) as Borrower may in good faith
contest or as to which a bona fide dispute may arise, and (b) for which Borrower
has made provision, to Bank's satisfaction, for eventual payment thereof in the
event Borrower is obligated to make such payment.

       SECTION 4.8. LITIGATION. Promptly give notice in writing to Bank of any
material litigation pending or threatened against Borrower.

       SECTION 4.9. FINANCIAL CONDITION. Maintain Borrower's financial condition
as follows using generally accepted accounting principles consistently applied
and used consistently with prior practices (except to the extent modified by the
definitions herein):

       (a) Tangible Net Worth not less than $80,000,000.00 during the period
beginning the date hereof and ending February 1, 2003; and for the fiscal year
beginning February 2, 2003, and during each subsequent fiscal year of the
Borrower, not less than the sum of (i) the minimum Tangible Net Worth that the
Borrower was required to maintain by this covenant during the fiscal year of the
Borrower immediately preceding the year of determination, plus (ii) seventy-five
percent (75%) of the Borrower's net income after taxes during the fiscal year of
the Borrower immediately preceding the year of determination (with net income
after taxes being determined in accordance with generally accepted accounting
principles but before giving effect to the payment of any dividends); provided,
that no reduction will be made to the amount of Tangible Net Worth required to
be maintained by the Borrower hereunder as a result of the Borrower's net income
after taxes being a negative number. As used in this Section 4.9, "Tangible Net
Worth" is defined as the aggregate of total stockholders' equity plus
subordinated debt less any intangible assets.

       (b) Total Liabilities divided by Tangible Net Worth not at any time
greater than 0.60 to 1.0, with "Total Liabilities" defined as the aggregate of
current liabilities and non-current liabilities less subordinated debt approved
by the Bank, and with "Tangible Net Worth" as defined above.

       (c) Net income after taxes not less than $1.00 on a trailing two quarter
basis, determined as of each fiscal quarter end.

       (d) Maintain, on a rolling four quarter basis (i.e. as of the end of each
fiscal quarter for the four quarter period ended as of the end of each quarter
for which any determination is being

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made), a Fixed Charge Coverage of not less than 1.35 to 1.0. For purposes of
this financial covenant, "Fixed Charge Coverage" means, as of any date of
determination, (i) the sum of Annual Traditional Cash Flow (as defined in
Section 1.1(b) above), plus interest expense, plus rental expense, minus any
treasury stock repurchases, divided by (ii) the sum of the Borrower's current
portion of long-term debt, plus interest expense, plus rental expense, plus any
cash dividends paid by the Borrower.

       (e) Maintain a ratio of (i) an amount equal to the sum of (A) the face
amount of all outstanding Letters of Credit, plus (B) the indebtedness under the
Line of Credit Note to; (ii) total inventory of Borrower, of not more than
thirty-five percent (35%) throughout the term hereof.

       SECTION 4.10. NOTICE TO BANK. Promptly (but in no event more than five
(5) days after the occurrence of each such event or matter) give written notice
to Bank in reasonable detail of: (a) the occurrence of any Event of Default, or
any condition, event or act which with the giving of notice or the passage of
time or both would constitute an Event of Default; (b) any change in the name or
the organizational structure of Borrower, or any material action, claim,
investigation, suit or proceeding pending or asserted by or before any
governmental authority, arbitrator, court or administrative agency; (c) the
occurrence and nature of any Reportable Event or Prohibited Transaction, each as
defined in ERISA, or any funding deficiency with respect to any Plan; (d) any
termination or cancellation of any insurance policy which Borrower is required
to maintain, or any uninsured or partially uninsured loss through liability or
property damage, or through fire, theft or any other cause affecting Borrower's
property, or (e) the existence, now or hereafter, by formation, acquisition or
otherwise, of any subsidiary of Borrower or of any subsidiary thereof (each, a
"Subsidiary").

                                    ARTICLE V
                               NEGATIVE COVENANTS

       Borrower further covenants that so long as Bank remains committed to
extend credit to Borrower pursuant hereto, or any liabilities (whether direct or
contingent, liquidated or unliquidated) of Borrower to Bank under any of the
Loan Documents remain outstanding, and until payment in full of all obligations
of Borrower subject hereto, Borrower will not, and will not permit any
Subsidiary to, without Bank's prior written consent:

       SECTION 5.1. USE OF FUNDS. Use any of the proceeds of any credit extended
hereunder except for the purposes stated in Article I hereof.

       SECTION 5.2. CAPITAL EXPENDITURES. Make any additional investment in
fixed assets in any fiscal year in excess of $12,000,000.00.

       SECTION 5.3. OTHER INDEBTEDNESS. Create, incur, assume or permit to exist
any indebtedness or liabilities resulting from borrowings, loans or advances,
whether secured or unsecured, matured or unmatured, liquidated or unliquidated,
joint or several, except (a) the liabilities of Borrower to Bank, and(b) any
other liabilities of Borrower existing as of, and disclosed to Bank prior to,
the date hereof, and (c) other liabilities not to exceed an aggregate principal
amount of $1,000,000.00.

       SECTION 5.4. MERGER, CONSOLIDATION, TRANSFER OF ASSETS. Merge into or
consolidate with any other entity; make any substantial change in the nature of
Borrower's business as conducted as of the date hereof; acquire all or
substantially all of the assets of any other entity; nor sell, lease, transfer
or otherwise dispose of all or a substantial or material portion of Borrower's
assets except in the ordinary course of its business.

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       SECTION 5.5. GUARANTIES. Guarantee or become liable in any way as surety,
endorser (other than as endorser of negotiable instruments for deposit or
collection in the ordinary course of business), accommodation endorser or
otherwise for, nor pledge or hypothecate any assets of Borrower as security for,
any liabilities or obligations of any other person or entity, except any of the
foregoing in favor of Bank.

       SECTION 5.6. LOANS, ADVANCES, INVESTMENTS. Make any loans or advances to
or investments in any person or entity, except (a) any of the foregoing existing
as of, and disclosed to Bank prior to, the date hereof, and (b) loans to
officers not to exceed $150,000 in each individual instance, with the aggregate
of all loans to officers not to exceed $250,000 at any time.

       SECTION 5.7. PLEDGE OF ASSETS. Mortgage, pledge, grant or permit to exist
a security interest in, or lien upon, all or any portion of Borrower's assets
now owned or hereafter acquired, except (a) any of the foregoing in favor of
Bank or which is existing as of, and disclosed to Bank in writing prior to, the
date hereof; (b) liens, mortgages, encumbrances or security interests to secure
payment of the borrowings authorized hereunder and those permitted under Section
5.6 herein; (c) pledges or deposits to secure obligations under workmen's
compensation laws or of similar legislation; (d) deposits to secure public or
statutory obligations; (e) statutory mechanics', carriers', workmen's,
repairmen's liens or other like items in the ordinary course of business in
respect to obligations which are not overdue or are being contested in good
faith; (f) liens, mortgages, encumbrances, or security interests granted by the
Borrower on equipment, furniture and/or fixtures in connection with additional
purchases of such equipment, furniture and/or fixtures not in excess of $250,000
per fiscal year of the Borrower; and (g) statutory or contractual landlords
liens in respect of obligations which are not overdue or being contested in good
faith.

       SECTION 5.8. PURCHASES. Borrower will agree not to incur any debt
resulting from the purchase of any Treasury Stock or the issuance of dividends.

       SECTION 5.9. NEGATIVE PLEDGE. Enter into any agreement whereby Borrower
or any subsidiary agrees not to mortgage, pledge, grant or permit to exist a
security interest in, or lien upon, all or any portion of Borrower's or any
subsidiaries' assets now owned or hereafter acquired, except any of the
foregoing in favor of Bank or which is existing as of and disclosed to Bank in
writing prior to the date hereof.

       Section 5.10. ACQUISITIONS. Make any new acquisition with a total
consideration to be paid in excess of $5,000,000.00 without prior Bank consent.

                                   ARTICLE VI
                                EVENTS OF DEFAULT

       SECTION 6.1. The occurrence of any of the following shall constitute an
"Event of Default" under this Agreement:

       (a) Borrower shall fail to pay when due any principal, interest, fees or
other amounts payable under any of the Loan Documents.

       (b) Any financial statement or certificate furnished to Bank in
connection with, or any representation or warranty made by Borrower or any other
party under this Agreement or any

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other Loan Document shall prove to be incorrect, false or misleading in any
material respect when furnished or made.

       (c) (i) Any default, which by its nature cannot be cured, in the
performance of or compliance with any obligation, agreement or other provision
contained herein or in any other Loan Document (other than those referred to in
subsections (a) and (b) above); and (ii) Twenty (20) days from the date of any
default (which by its nature can be cured) in the performance of or compliance
with any obligation, agreement or other provision contained herein or in any
other Loan Document (other than those referred to in subsections (a) and (b)
above).

       (d) Any default in the payment or performance of any obligation, or any
defined event of default, under the terms of any contract or instrument (other
than any of the Loan Documents) pursuant to which Borrower or any guarantor
hereunder has incurred any debt or other liability to any person or entity,
including Bank.

       (e) The filing of a notice of judgment lien in excess of $500,000 against
Borrower or any guarantor hereunder; or the recording of any abstract of
judgment in excess of $500,000 against Borrower or any guarantor hereunder in
any county in which Borrower or such guarantor has an interest in real property;
or the service of a notice of levy and/or of a writ of attachment or execution,
or other like process, in excess of $500,000 against the assets of Borrower or
any guarantor hereunder; or the entry of a judgment against Borrower or any
guarantor hereunder in excess of the lesser of (i) $3,000,000, or (ii) fifty
percent (50%) of the aggregate fair market value of the Borrower's unencumbered
liquid assets (defined as cash, cash equivalents and/or publicly traded/quoted
marketable securities acceptable to Bank in its sole discretion) minus
outstanding amounts under the Line of Credit.

       (f) Borrower or any guarantor hereunder shall become insolvent, or shall
suffer or consent to or apply for the appointment of a receiver, trustee,
custodian or liquidator of itself or any of its property, or shall generally
fail to pay its debts as they become due, or shall make a general assignment for
the benefit of creditors; Borrower or any guarantor hereunder shall file a
voluntary petition in bankruptcy, or seeking reorganization, in order to effect
a plan or other arrangement with creditors or any other relief under the
Bankruptcy Reform Act, Title 11 of the United States Code, as amended or
recodified from time to time ("Bankruptcy Code"), or under any state or federal
law granting relief to debtors, whether now or hereafter in effect; or any
involuntary petition or proceeding pursuant to the Bankruptcy Code or any other
applicable state or federal law relating to bankruptcy, reorganization or other
relief for debtors is filed or commenced against Borrower or any guarantor
hereunder, or Borrower or any guarantor hereunder shall file an answer admitting
the jurisdiction of the court and the material allegations of any involuntary
petition; or Borrower or any guarantor hereunder shall be adjudicated a
bankrupt, or an order for relief shall be entered against Borrower or any such
guarantor by any court of competent jurisdiction under the Bankruptcy Code or
any other applicable state or federal law relating to bankruptcy, reorganization
or other relief for debtors.

       (g) The dissolution or liquidation of Borrower or any guarantor
hereunder; or Borrower or any such guarantor, or any of their directors,
stockholders or members, shall take action seeking to effect the dissolution or
liquidation of Borrower or such guarantor.

       SECTION 6.2. REMEDIES. Upon the occurrence of any Event of Default: (a)
all principal and accrued and unpaid interest outstanding under each of the Loan
Documents, any term thereof to the contrary notwithstanding, shall at Bank's
option and without notice become immediately due and payable without
presentment, demand, or any notices of any kind, including without limitation
notice of nonperformance, notice of protest, protest, notice of dishonor, notice
of intention to accelerate or notice of acceleration, all of which are hereby

                                      -10-

<PAGE>

expressly waived by each Borrower; (b) the obligation, if any, of Bank to extend
any further credit under any of the Loan Documents shall immediately cease and
terminate; and (c) Bank shall have all rights, powers and remedies available
under each of the Loan Documents, or accorded by law, including without
limitation the right to resort to any or all security for any credit subject
hereto and to exercise any or all of the rights of a beneficiary or secured
party pursuant to applicable law. All rights, powers and remedies of Bank may be
exercised at any time by Bank and from time to time after the occurrence of an
Event of Default, are cumulative and not exclusive, and shall be in addition to
any other rights, powers or remedies provided by law or equity.

                                   ARTICLE VII
                                  MISCELLANEOUS

       SECTION 7.1. NO WAIVER. No delay, failure or discontinuance of Bank in
exercising any right, power or remedy under any of the Loan Documents shall
affect or operate as a waiver of such right, power or remedy; nor shall any
single or partial exercise of any such right, power or remedy preclude, waive or
otherwise affect any other or further exercise thereof or the exercise of any
other right, power or remedy. Any waiver, permit, consent or approval of any
kind by Bank of any breach of or default under any of the Loan Documents must be
in writing and shall be effective only to the extent set forth in such writing.

       SECTION 7.2. NOTICES. All notices, requests and demands which any party
is required or may desire to give to any other party under any provision of this
Agreement must be in writing delivered to each party at the following address:

       BORROWER:     GADZOOKS, INC.
                     4121 International Parkway
                     Carrollton, Texas  75007

       BANK:         WELLS FARGO BANK TEXAS,
                      NATIONAL ASSOCIATION
                     1445 Ross Avenue, Suite 300
                     Dallas, Texas 75202

or to such other address as any party may designate by written notice to all
other parties. Each such notice, request and demand shall be deemed given or
made as follows: (a) if sent by hand delivery, upon delivery; (b) if sent by
mail, upon the earlier of the date of receipt or three (3) days after deposit in
the U.S. mail, first class and postage prepaid; and (c) if sent by telecopy,
upon receipt.

       SECTION 7.3. COSTS, EXPENSES AND ATTORNEYS' FEES. Borrower shall pay to
Bank immediately upon demand the full amount of all payments, advances, charges,
costs and expenses, including reasonable attorneys' fees (to include outside
counsel fees and all allocated costs of Bank's in-house counsel to the extent
permissible), expended or incurred by Bank in connection with (a) Bank's
continued administration of this Agreement and the other Loan Documents, and the
preparation of any amendments and waivers hereto and thereto, (b) the
enforcement of Bank's rights and/or the collection of any amounts which become
due to Bank under any of the Loan Documents, and (c) the prosecution or defense
of any action in any way related to any of the Loan Documents, including without
limitation, any action for declaratory relief, whether incurred at the trial or
appellate level, in an arbitration proceeding or otherwise, and including any of
the foregoing incurred in connection with any bankruptcy

                                      -11-

<PAGE>

proceeding (including without limitation, any adversary proceeding, contested
matter or motion brought by Bank or any other person) relating to any Borrower
or any other person or entity.

       SECTION 7.4. SUCCESSORS, ASSIGNMENT. This Agreement shall be binding upon
and inure to the benefit of the heirs, executors, administrators, legal
representatives, successors and assigns of the parties; provided however, that
Borrower may not assign or transfer its interest hereunder without Bank's prior
written consent. Bank reserves the right to sell, assign, transfer, negotiate or
grant participations in all or any part of, or any interest in, Bank's rights
and benefits under each of the Loan Documents. In connection therewith, Bank may
disclose all documents and information which Bank now has or may hereafter
acquire relating to any credit extended by Bank to Borrower, Borrower or its
business, or any collateral required hereunder.

       SECTION 7.5. AMENDMENT. This Agreement may be amended or modified only in
writing signed by each party hereto.

       SECTION 7.6. NO THIRD PARTY BENEFICIARIES. This Agreement is made and
entered into for the sole protection and benefit of the parties hereto and their
respective permitted successors and assigns, and no other person or entity shall
be a third party beneficiary of, or have any direct or indirect cause of action
or claim in connection with, this Agreement or any other of the Loan Documents
to which it is not a party.

       SECTION 7.7. TIME. Time is of the essence of each and every provision of
this Agreement and each other of the Loan Documents.

       SECTION 7.8. SEVERABILITY OF PROVISIONS. If any provision of this
Agreement shall be prohibited by or invalid under applicable law, such provision
shall be ineffective only to the extent of such prohibition or invalidity
without invalidating the remainder of such provision or any remaining provisions
of this Agreement.

       SECTION 7.9. COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which when executed and delivered shall be deemed to be
an original, and all of which when taken together shall constitute one and the
same Agreement.

                                      -12-

<PAGE>

       SECTION 7.10. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of Texas.

       SECTION 7.11. SAVINGS CLAUSE. It is the intention of the parties to
comply strictly with applicable usury laws. Accordingly, notwithstanding any
provision to the contrary in the Loan Documents, in no event shall any Loan
Documents require the payment or permit the payment, taking, reserving,
receiving, collection or charging of any sums constituting interest under
applicable laws that exceed the maximum amount permitted by such laws, as the
same may be amended or modified from time to time (the "Maximum Rate"). If any
such excess interest is called for, contracted for, charged, taken, reserved or
received in connection with any Loan Documents, or in any communication by
Lender or any other person to Borrower or any other person, or in the event that
all or part of the principal or interest hereof or thereof shall be prepaid or
accelerated, so that under any of such circumstances or under any other
circumstance whatsoever the amount of interest contracted for, charged, taken,
reserved or received on the amount of principal actually outstanding from time
to time under the Loan Documents shall exceed the Maximum Rate, then in such
event it is agreed that: (i) the provisions of this paragraph shall govern and
control; (ii) neither Borrower nor any other person or entity now or hereafter
liable for the payment of any Loan Documents shall be obligated to pay the
amount of such interest to the extent it is in excess of the Maximum Rate; (iii)
any such excess interest which is or has been received by Lender,
notwithstanding this paragraph, shall be credited against the then unpaid
principal balance hereof or thereof, or if any of the Loan Documents has been or
would be paid in full by such credit, refunded to Borrower; and (iv) the
provisions of each of the Loan Documents, and any other communication to
Borrower, shall immediately be deemed reformed and such excess interest reduced,
without the necessity of executing any other document, to the Maximum Rate. The
right to accelerate the maturity of the Loan Documents does not include the
right to accelerate, collect or charge unearned interest, but only such interest
that has otherwise accrued as of the date of acceleration. Without limiting the
foregoing, all calculations of the rate of interest contracted for, charged,
taken, reserved or received in connection with any of the Loan Documents which
are made for the purpose of determining whether such rate exceeds the Maximum
Rate shall be made to the extent permitted by applicable laws by amortizing,
prorating, allocating and spreading during the period of the full term of such
Loan Documents, including all prior and subsequent renewals and extensions
hereof or thereof, all interest at any time contracted for, charged, taken,
reserved or received by Lender. The terms of this paragraph shall be deemed to
be incorporated into each of the other Loan Documents.

       To the extent that either Chapter 303 or 306, or both, of the Texas
Finance Code apply in determining the Maximum Rate, Bank hereby elects to
determine the applicable rate ceiling by using the weekly ceiling from time to
time in effect, subject to Bank's right subsequently to change such method in
accordance with applicable law, as the same may be amended or modified from time
to time.

       SECTION 7.12. RIGHT OF SETOFF; DEPOSIT ACCOUNTS. Upon and after the
occurrence of an Event of Default, (a) Borrower hereby authorizes Bank, at any
time and from time to time, without notice, which is hereby expressly waived by
each Borrower, and whether or not Bank shall have declared any credit extended
hereunder to be due and payable in accordance with the terms hereof, to set off
against, and to appropriate and apply to the payment of, Borrower's obligations
and liabilities under the Loan Documents (whether matured or unmatured, fixed or
contingent, liquidated or unliquidated), any and all amounts owing by Bank to
Borrower (whether payable in U.S. dollars or any other currency, whether matured
or unmatured, and in the case of deposits, whether general or special (except
trust and escrow accounts), time or demand and however evidenced), and (b)
pending any such action, to the

                                      -13-

<PAGE>

extent necessary, to hold such amounts as collateral to secure such obligations
and liabilities and to return as unpaid for insufficient funds any and all
checks and other items drawn against any deposits so held as Bank, in its sole
discretion, may elect. Borrower hereby grants to Bank a security interest in all
deposits and accounts maintained with Bank and its affiliates to secure the
payment of all obligations and liabilities of Borrower to Bank under the Loan
Documents.

       SECTION 7.13. BUSINESS PURPOSE. Borrower represents and warrants that
each credit subject hereto is for a business, commercial, investment,
agricultural or other similar purpose and not primarily for a personal, family
or household use.

       SECTION 7.14. ARBITRATION.

       (a) Arbitration. The parties hereto agree, upon demand by any party, to
submit to binding arbitration all claims, disputes and controversies between or
among them (and their respective employees, officers, directors, attorneys, and
other agents), whether in tort, contract or otherwise arising out of or relating
to in any way (i) the loan and related Loan Documents which are the subject of
this Agreement and its negotiation, execution, collateralization,
administration, repayment, modification, extension, substitution, formation,
inducement, enforcement, default or termination; or (ii) requests for additional
credit.

      (b)Governing Rules. Any arbitration proceeding will (i) proceed in a
location in Texas selected by the American Arbitration Association ("AAA"); (ii)
be governed by the Federal Arbitration Act (Title 9 of the United States Code),
notwithstanding any conflicting choice of law provision in any of the documents
between the parties; and (iii) be conducted by the AAA, or such other
administrator as the parties shall mutually agree upon, in accordance with the
AAA's commercial dispute resolution procedures, unless the claim or counterclaim
is at least $1,000,000.00 exclusive of claimed interest, arbitration fees and
costs in which case the arbitration shall be conducted in accordance with the
AAA's optional procedures for large, complex commercial disputes (the commercial
dispute resolution procedures or the optional procedures for large, complex
commercial disputes to be referred to, as applicable, as the "Rules"). If there
is any inconsistency between the terms hereof and the Rules, the terms and
procedures set forth herein shall control. Any party who fails or refuses to
submit to arbitration following a demand by any other party shall bear all costs
and expenses incurred by such other party in compelling arbitration of any
dispute. Nothing contained herein shall be deemed to be a waiver by any party
that is a bank of the protections afforded to it under 12 U.S.C. ss.91 or any
similar applicable state law.

       (c) No Waiver of Provisional Remedies, Self-Help and Foreclosure. The
arbitration requirement does not limit the right of any party to (i) foreclose
against real or personal property collateral; (ii) exercise self-help remedies
relating to collateral or proceeds of collateral such as setoff or repossession;
or (iii) obtain provisional or ancillary remedies such as replevin, injunctive
relief, attachment or the appointment of a receiver, before during or after the
pendency of any arbitration proceeding. This exclusion does not constitute a
waiver of the right or obligation of any party to submit any dispute to
arbitration or reference hereunder, including those arising from the exercise of
the actions detailed in sections (i), (ii) and (iii) of this paragraph.

       (d) Arbitrator Qualifications and Powers. Any arbitration proceeding in
which the amount in controversy is $5,000,000.00 or less will be decided by a
single arbitrator selected according to the Rules, and who shall not render an
award of greater than $5,000,000.00. Any dispute in which the amount in
controversy exceeds $5,000,000.00 shall be decided by majority

                                      -14-

<PAGE>

vote of a panel of three arbitrators; provided however, that all three
arbitrators must actively participate in all hearings and deliberations. The
arbitrator will be a neutral attorney licensed in the State of Texas with a
minimum of ten years experience in the substantive law applicable to the subject
matter of the dispute to be arbitrated. The arbitrator will determine whether or
not an issue is arbitratable and will give effect to the statutes of limitation
in determining any claim. In any arbitration proceeding the arbitrator will
decide (by documents only or with a hearing at the arbitrator's discretion) any
pre-hearing motions which are similar to motions to dismiss for failure to state
a claim or motions for summary adjudication. The arbitrator shall resolve all
disputes in accordance with the substantive law of Texas and may grant any
remedy or relief that a court of such state could order or grant within the
scope hereof and such ancillary relief as is necessary to make effective any
award. The arbitrator shall also have the power to award recovery of all costs
and fees, to impose sanctions and to take such other action as the arbitrator
deems necessary to the same extent a judge could pursuant to the Federal Rules
of Civil Procedure, the Texas Rules of Civil Procedure or other applicable law.
Judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction. The institution and maintenance of an action for judicial
relief or pursuit of a provisional or ancillary remedy shall not constitute a
waiver of the right of any party, including the plaintiff, to submit the
controversy or claim to arbitration if any other party contests such action for
judicial relief.

       (e) Discovery. In any arbitration proceeding discovery will be permitted
in accordance with the Rules. All discovery shall be expressly limited to
matters directly relevant to the dispute being arbitrated and must be completed
no later than 20 days before the hearing date and within 180 days of the filing
of the dispute with the AAA. Any requests for an extension of the discovery
periods, or any discovery disputes, will be subject to final determination by
the arbitrator upon a showing that the request for discovery is essential for
the party's presentation and that no alternative means for obtaining information
is available.

       (f) Class Proceedings and Consolidations. The resolution of any dispute
arising pursuant to the terms of this Agreement shall be determined by a
separate arbitration proceeding and such dispute shall not be consolidated with
other disputes or included in any class proceeding.

       (g) Payment Of Arbitration Costs And Fees. The arbitrator shall award all
costs and expenses of the arbitration proceeding.

       (h) Miscellaneous. To the maximum extent practicable, the AAA, the
arbitrators and the parties shall take all action required to conclude any
arbitration proceeding within 180 days of the filing of the dispute with the
AAA. No arbitrator or other party to an arbitration proceeding may disclose the
existence, content or results thereof, except for disclosures of information by
a party required in the ordinary course of its business or by applicable law or
regulation. If more than one agreement for arbitration by or between the parties
potentially applies to a dispute, the arbitration provision most directly
related to the Loan Documents or the subject matter of the dispute shall
control. This arbitration provision shall survive termination, amendment or
expiration of any of the Loan Documents or any relationship between the parties.

       SECTION 7.15. AMENDMENT AND RESTATEMENT. This Agreement amends and
restates in its entirety the provisions of that certain Credit Agreement dated
April 12, 2001, between the Borrower and the Bank.

NOTICE: THIS DOCUMENT AND ALL OTHER DOCUMENTS RELATING TO THE INDEBTEDNESS
CONSTITUTE A WRITTEN LOAN AGREEMENT WHICH REPRESENTS

                                      -15-

<PAGE>

THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE
ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES RELATING TO THE
INDEBTEDNESS.

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first written above.

                                                 WELLS FARGO BANK TEXAS,
GADZOOKS, INC.                                    NATIONAL ASSOCIATION

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

                                      -16-<PAGE>
                                                                  EXHIBIT 10.8

                                 LOAN AGREEMENT

         THIS LOAN AGREEMENT, made and entered into this 1st day of September,
1998 by and among INTRUST BANK, N.A. (herein referred to as "Bank"), TENT
Finance, Inc. , a Delaware corporation, and Total Entertainment Restaurant
Corp., a Delaware corporation (herein collectively referred to as "Borrower")
and the Subsidiaries, as defined below (herein collectively referred to as
"Guarantor").

                  WITNESSETH:

                  WHEREAS, Borrower has requested a revolving line of credit in
the amount of $20,000,000 from Bank; and

                  WHEREAS, Bank has agreed to provide such line of credit under
certain terms and conditions; and

                  WHEREAS, Guarantor has agreed to guarantee Borrower's
obligations to Bank and hypothecate its assets as additional security for the
line of credit.

                  NOW, THEREFORE, in consideration of the terms and conditions
contained herein, the parties agree as follows:

                                    ARTICLE I
                                  DEFINITIONS

                  1.1. Definitions. When used in this Agreement, the following
terms shall have the following meanings:

                  (a) "Accounts" shall mean the accounts of the Borrower and
Guarantor as that term is defined in the UCC. "Accounts" include all
receivables, third-party claims, instruments, documents, chattel paper and
executory contract rights

                  (b) "Agreement" shall mean this Loan Agreement together with
all amendments and supplements hereto.

                  (c) "Capital Lease Excess" shall mean the amount by which the
total outstanding under all Capital Leases of Borrower or Guarantor on a
consolidated basis, exceeds the sum of one million dollars ($1,000,000.00).
"Capital Leases" shall mean leases of personal property which are eligible for
capital treatment under generally accepted accounting principles consistently
applied.

                  (d) "Collateral" shall mean all of Borrower's and Guarantor's
right, title and interest in its Accounts, Contracts, Equipment, General
Intangibles and Inventory along with all Borrower's and Guarantor's right, title
and interest in its Restaurants, including but not limited to, the Real Estate,
Leaseholds, FF&E, Accounts, Contracts, General Intangibles, Inventory, Licenses
and Permits and Trademark Licenses relating to the Restaurants, whether now
owned or hereafter acquired, including all proceeds from the disposition or
collection thereof.

                                       1
<PAGE>

                  (e) "Contracts" shall mean all contracts, agreements and
warranties governing the use, occupancy, operation, management, name, or chain
affiliation and /or repair and service of a Restaurant, and all leases and
occupancy agreements, and all amendments, modifications, and supplements to any
of the foregoing, of Borrower and Guarantor.

                  (f) "EBITDA" shall mean the aggregate of Borrower's and
Guarantor's consolidated net income before interest expense, tax expense,
depreciation expense and amortization expense cumulated for the fifty two (52)
weeks immediately preceding the date of determination, excluding EBITDA
generated by any New Restaurant.

                  (g) "EBITDA Multiple" shall mean the factor 2.5 from the date
of this Agreement until March 31, 1999, and the factor 2.25 commencing April 1,
1999.

                  (h) "Equipment" shall mean Borrower's and each of Guarantor's
equipment as that term is defined in the UCC.

                  (i) "Event of Default" shall mean an event described in
Article VII.

                  (j) "Facility" shall mean the revolving credit facility
extended to Borrower by Bank evidenced by the Facility Note, as further
described in Section 2.1 hereof.

                  (k) "FF&E" shall mean Borrower's and each of Guarantor's
fixtures, furnishings, Equipment, furniture and other items of tangible personal
property now or hereafter located in the Restaurant or used in connection with
the operation, and the maintenance of all or any part of the Restaurant,
including, without limitation, appliances, machinery, equipment, signs, artwork,
furnishings, and specialized equipment for kitchens, laundries, bars,
restaurants, public rooms, linens, dishware, awnings, shades, blinds, floor
coverings, hall and lobby equipment, heating, lighting, plumbing, ventilating,
refrigerating, incinerating, elevators, escalators, air conditioning and
communication systems, security systems, sprinkler systems, fire prevention and
extinguishing apparatus, cash registers, computers and related equipment,
equipment for the maintenance, repair and cleaning of parking areas, walks,
driveways and common areas.

                  (l) "General Intangibles" shall mean Borrower's and each of
Guarantor's general intangibles as that term is defined in the UCC.

                  (m) "Indebtedness" shall refer to all debt, including all
contract, tort and statutory obligations of any nature of Borrower or Guarantor
to Bank of every kind and description, direct or indirect, primary or secondary,
secured or unsecured (including overdrafts), joint and several, absolute or
contingent, due or to become due, now existing or hereafter arising, regardless
of how it may be evidenced.

                  (n) "Inventory" shall mean Borrower's and each of Guarantor's
inventory as that term is defined in the UCC.

                  (o) "Leasehold" shall mean the interest of Borrower or
Guarantor under any ground lease or lease of improvements, including the
leasehold estate created thereby, and the buildings, structures, fixtures,
additions, enlargements, extensions, modifications, repairs,

                                       2
<PAGE>
replacements and improvements now or hereafter located thereon, plus all
modifications, extensions and renewals of any lease and all credits, deposits,
options, privileges and rights of Borrower or Guarantor as lessee under a lease,
including, but not limited to, the right, if any, to renew or extend the lease
for a succeeding term or terms; all the estates, rights, title, claims or
demands whatsoever of Borrower or Guarantor either in law or in equity, in
possession or expectancy, of, in and to the real estate covered by any lease or
improvements located thereon; and all easements, rights-of-way, strips of land,
streets, ways, alleys, passages, sewer rights, water, water courses, water
rights and powers, air rights and development rights.

                  (p) "Licenses & Permits" shall mean all building permits,
certificates of occupancy and other permits, licenses, memberships, franchises,
contracts, approvals and authorizations necessary for Borrower or Guarantor to
own, use, occupy, operate or maintain a Restaurant or any part thereof as
operated now or in the future, including any license required for the service of
alcoholic beverages.

                  (q) "Loan Documents" shall mean and refer to this Agreement,
the Note, all mortgages or deeds of trust, all security agreements and
assignments, all guaranty agreements, and all other documents and agreements
required to be executed herein or executed pursuant hereto, and as any of them
may be extended, renewed, amended or supplemented from time to time.

                  (r) "National Prime Rate" shall mean the Prime Rate as
published in the Wall Street Journal, Money Rates Table, as of the date of any
interest rate adjustment.

                  (s) "Net Worth" shall mean at any date the net worth of
Borrower, consolidated with Guarantor, including intangible assets not to exceed
$6,000,000, as determined under GAAP.

                  (t) "New Restaurant" shall mean a Restaurant under
construction or in its first fiscal quarter of operation, if the results of its
operation are not, and have not previously been, included in Borrower's EBITDA
calculation.

                  (u) "Note" shall mean the Facility Note, and all extensions,
renewals, modifications or replacements thereof.

                  (v) "Operating Leases" shall mean leases of personal or real
property by Borrower or Guarantor, the payment of which is deducted from the
results of operations of Borrower or Guarantor prior to calculation of EBITDA.

                  (w) "Real Estate" shall mean the real estate, all buildings or
improvements situated thereof, together with all easements, servitudes, rights
of way, sewer rights and all appurtenances whatsoever, in any way now or
hereafter belonging to the real estate and the rents, issues and profits
thereof.

                  (x) "Restaurant" shall mean the Real Estate, if owned by
Borrower or Guarantor; any Leasehold interest of Borrower or Guarantor; all
improvements, buildings, structures and appurtenances located on the Real Estate
or any leasehold, including bars, banquet, meeting and other public rooms,

                                       3
<PAGE>
garage and parking spaces, kitchens, storerooms and maintenance workshops and
all public grounds; and all Accounts, Contracts, General Intangibles, Inventory,
Licenses and Permits, FF&E, plans and specifications, Trademark Licenses and all
other property of every kind and description used or useful in the ownership,
occupancy, operation, and maintenance of the restaurant as currently operated or
proposed to be operated in the future, together with any and all proceeds of the
foregoing, including, without limitation, any and all cash and noncash
consideration received from the sale, exchange, lease, collection or other
disposition of any of the foregoing, any payment received from any insurer or
other person or entity as a result of the destruction, loss, theft, damage or
other involuntary conversion of whatever nature of any of the foregoing, and all
replacements, substitutions for the foregoing or assessions thereto.

                  (y) "Subsidiaries" shall mean on the date of this Agreement,
the entities identified on Attachment "A" hereto. "Subsidiaries" shall further
include all future entities owned in whole or in part by TENT Finance, Inc. to
the extent such entities own and operate Fox & Hound Restaurants, Bailey's
Sports Grilles, or other ventures financed in whole or in part by proceeds of
the Facility.

                  (z) "Trademark Licenses" shall mean all trademark rights,
trade names, trade name rights, patents, patent rights, and fictitious name
rights necessary to enable Borrower or Guarantor to conduct its business without
conflict with the rights of others, including contracts granting to Borrower or
Guarantor any right to use any Trademark or name with regard to a Restaurant or
part thereof.

                  (aa) "UCC" shall mean the Uniform Commercial Code as from time
to time in effect in the State of Kansas.

                                   ARTICLE II
                                NOTE AND SECURITY

                  Section 2.1. FACILITY. Pursuant to the terms and conditions of
this Agreement, Bank agrees to establish a Facility of $20,000,000 in favor of
Borrower, to be evidenced by a Facility Note which shall mature on October 1,
2001. A copy of the Facility Note is attached hereto as Attachment "B".
Advances under the Facility will be made by Bank to Borrower from time to time
in accordance with the terms and conditions of this Agreement. All advances
shall be used by Borrower solely for the purposes set forth in Section 2.4
hereof.

                  Section 2.2. TERMS OF PAYMENT ON FACILITY. Interest on the
Note, or any advance thereunder, shall be adjusted on the first day of each
month to National Prime Rate as of such date less 1/2%. Accrued interest shall
be due on the first day of each month beginning October 1, 1998. Principal shall
be due and payable at maturity.

                  Section 2.3. LIMITATIONS ON THE FACILITY. Borrower may borrow,
partially or wholly repay its borrowings, and reborrow, by requesting advances
from the Facility, so long as:

                  (a) The total Indebtedness owed Bank, including all principal
and accrued interest does not exceed the Facility at any one time;

                                       4
<PAGE>

                  (b) None of the terms and conditions of this Agreement are in
default and Bank has not determined that there has been a material adverse
change in the financial condition of Borrower on a consolidated basis; or

                  (c) Neither Borrower nor Guarantor is in default under any
loan, any other financial obligation, or any other material agreement.

                  (d) The advance, when aggregated with all outstanding
Indebtedness of Borrower, will not result in a breach of the financial covenants
set forth in Section 5.12 hereof, as of the date of such loan or advance
hereunder; and

                  (e) The advance, when aggregated with all outstanding loans,
advances or loan commitments by Bank, to Borrower (or to other persons or
entities required by law to be aggregated with the outstanding loans of
Borrower), would not exceed Bank's legal lending limit determined pursuant to
federal regulations and issuances of the Office of the Comptroller of the
Currency, as of the date of such loan or advance hereunder.

                  Section 2.4. USE OF PROCEEDS. The proceeds from the Facility
shall be used for working capital and restaurant development, including
acquisition of furnishings, fixtures, equipment and leaseholds for Fox & Hound
restaurants, English Pub & Grille restaurants, Bailey's Sports Grille, Baileys
Pub & Grille restaurants, or other ventures approved by Bank.

                  Section 2.5. SECURITY. As security for the entire Indebtedness
to Bank, Borrower and Guarantor hereby pledge, assign and grant a first security
interest in favor of Bank in the Collateral of Borrower and Guarantor. It is
acknowledged that Borrower may from time to time form additional Subsidiaries
for the purpose of operating additional locations. From the date of formation of
such new Subsidiary, it shall be deemed a Guarantor hereunder, subject to the
terms and condition of this Agreement. Borrower agrees to promptly notify Bank
of the formation of any new Subsidiary and to cause such Subsidiary to deliver
to Bank an unlimited guaranty of the Indebtedness and other Loan Documents
reasonably requested by Bank to grant and perfect in Bank a first and prior
security interest in the Collateral held by such new Subsidiary.

                  Section 2.6. RENEWALS AND EXTENSIONS. If no Event of Default
has occurred or is continuing, Borrower shall have the option to renew the
Indebtedness outstanding under the Facility Note on its maturity date. Such
renewal shall be evidenced by a term note having a maturity date of October 1,
2005 (the "Renewal Note"). Interest on the Renewal Note shall be adjusted on the
first day of each month to National Prime Rate as of such date less 1/2%. The
Renewal Note shall provide for equal installments of principal and interest
commencing on November 1, 2001 and continuing each month thereafter as necessary
to fully amortize the Indebtedness plus future interest over the term. As a
precondition of such renewal, Borrower and Guarantor agree to execute and
deliver to Bank such additional documents as may be required by Bank to grant,
continue or perfect Bank's interest in the Collateral, as it may exist at the
time of such renewal.

Any renewal, extension or modification of the Facility Note, or any advance made
pursuant to the terms of such note, or any other indebtedness which Borrower may
have with Bank in the future, shall be subject to the terms of this Agreement.

                                       5
<PAGE>

Except as expressly set forth herein, Bank is under no obligation to renew any
obligation when it matures.

                  ARTICLE III - REPRESENTATIONS AND WARRANTIES

                  Borrower and Guarantor hereby represent and warrant, and so
long as any indebtedness from Borrower to the Bank remains outstanding,
continuously represents and warrants as follows:

                  Section 3.1. LEGAL STATUS. Borrower is a corporation duly
organized and existing under the laws of the State of Delaware, and is qualified
to do business, and is in good standing, in all jurisdictions in which it
conducts its business. Guarantor is an entity as described on Attachment "A",
organized and existing under the laws set forth on Attachment "A", and is
qualified to do business, and is in good standing, in all jurisdictions in which
it conducts its business.

                  Section 3.2. NO VIOLATION. The making and performance by
Borrower and Guarantor of this Agreement does not violate any provision of law,
or result in a breach of, or constitute a default under, Borrower's or
Guarantor's articles of incorporation and bylaws, or any Loan Documents,
agreement, indenture or other instrument to which Borrower or Guarantor may be a
party or by which it may be bound.

                  Section 3.3. LITIGATION. There are no pending or threatened
actions or proceedings before any court or administrative agency against
Borrower or any Guarantor which would have a material adverse effect upon the
financial condition or results of operations of Borrower or any Guarantor other
than those heretofore disclosed to Bank in writing.

                  Section 3.4. CORRECTNESS OF FINANCIAL STATEMENTS. The
financial statements heretofore and hereafter delivered by Borrower to Bank
present fairly the financial condition of Borrower, consolidated with Guarantor,
and have been prepared in accordance with generally accepted accounting
principles consistently applied. As of the date of each such financial
statement, and since such date, there has been no material adverse change in the
financial condition or results of operations of Borrower or Guarantor, nor has
Borrower or Guarantor mortgaged, pledged or granted a security interest in, or
encumbered, any assets or properties since such date.

                  Section 3.5. AUTHORIZATION. The Loan Documents have been duly
authorized, executed and delivered by Borrower and Guarantor and are the legal,
valid and binding obligations of Borrower and Guarantor enforceable in
accordance with their respective terms except as rights to indemnity and
contribution contained in the Loan Documents may be limited by applicable law
and except as enforceability may be limited by bankruptcy, insolvency,
moratorium and similar laws affecting creditors' rights.

                  Section 3.6. NO SUBORDINATION. The obligations of Borrower and
Guarantor under this Agreement and the Loan Documents, are not subordinated in
right of payment or in lien priority to any obligation of Borrower or Guarantor.

                                       6
<PAGE>

                  Section 3.7. PERMITS, FRANCHISES. The Borrower or Guarantor,
as applicable, now possesses, and will hereafter possess, all Licenses and
Permits and Trademark Licenses, except where the failure to possess such
Licenses and Permits and Trademark Licenses would not have a material adverse
effect upon the financial condition or results of operations of the Borrower or
any Guarantor.

                  Section 3.8. YEAR 2000 COMPLIANT. Borrower and each Guarantor
has:

                  (a) Undertaken a detailed inventory, review, and assessment of
all areas within its business and operations that could be materially adversely
affected by the failure of Borrower or Guarantor to be Year 2000 Compliant on a
timely basis;

                  (b) Developed a plan and timeline for becoming Year 2000
Compliant on a timely basis; and

                  (c) To date, implemented in all material respects that plan in
accordance with that timetable, except to the extent that a failure to do so
could not reasonably be expected to have a material adverse effect on the
financial condition or results of operations of Borrower or any Guarantor.

Borrower and Guarantor reasonably anticipate that they will be Year 2000
Compliant on a timely basis. Borrower and Guarantor plan to make timely written
inquiry of each of their key suppliers, vendors, and customers as to whether
such persons will, on a timely basis, be Year 2000 Compliant in all material
respects and on the basis of such inquiry believe that all such persons will be
so compliant. For the purposes hereof, "Year 2000 Compliant" means, with regard
to any entity, that all software, embedded microchips, and other processing
capabilities utilized by, and material to the business operations or financial
condition of, such entity are able to interpret and manipulate data on and
involving all calendar dates correctly and without causing any abnormal ending
scenario, including in relation to dates in and after the Year 2000. For
purposes hereof, "key suppliers, vendors and customers" refers to those
suppliers, vendors and customers of Borrower or Guarantor whose business failure
would, with reasonable probability, result in a material adverse change in the
business, properties, condition (financial or otherwise), or prospects of
Borrower or Guarantor.

                        ARTICLE IV - CONDITIONS PRECEDENT

                  The obligation of Bank to make any advance under the Loan
Agreement, is subject to the fulfillment of the following conditions:

                  Section 4.1. APPROVAL OF BANK COUNSEL. All legal matters
incidental to all such advances hereunder shall be satisfactory to legal counsel
of Bank.

                  Section 4.2. COMPLIANCE. The representations and warranties
contained herein shall be true as of the date of the signing of this Agreement
and on the date of any advance, no Event of Default, as defined in Article VII
herein, and no condition, event or act which, with the giving of notice or the
lapse of time or both, would constitute an Event of Default, shall have
occurred.

                                       7
<PAGE>

                  Section 4.3. DOCUMENTATION. Borrower shall have delivered to
Bank in form and substance satisfactory to Bank the following described
documents:

                  (a) This Agreement and other Loan Documents duly executed by
Borrower and Guarantor granting to Bank a first and prior perfected security
interest in the Collateral;

                  (b) Certified copy of Corporate Resolution of Borrower
ratifying this Agreement and authorizing the execution of the Loan Documents;

                  (c) Certified copy of Resolution of Guarantor ratifying this
Agreement and authorizing the Guaranty Agreement and other Loan Documents;

                  (d) Unlimited unconditional Guaranty Agreement from the
Guarantors;

                  (e) Such other documentation as the Bank may reasonably
require.

                        ARTICLE V - AFFIRMATIVE COVENANTS

                  Borrower and Guarantor covenant that so long as Borrower is
indebted to Bank under this Agreement, Borrower and Guarantor will:

                  Section 5.1. PUNCTUAL PAYMENT. Punctually pay to Bank all
payments required to be made under this Loan Agreement and any Note.

                  Section 5.2. ACCOUNTING RECORDS. Maintain adequate books and
accounts in accordance with generally accepted accounting principles
consistently applied, so that any time, and from time to time, the true and
complete financial condition of Borrower consolidated with Guarantor is fairly
presented and can be readily determined, and permit any representative of Bank
at any reasonable time, to inspect, audit and examine such books and accounts of
Borrower or any Guarantor and permit Bank to make and obtain copies of any such
books and accounts, and to permit any representative of Bank to inspect the
properties of Borrower and any Guarantor.

                  Section 5.3. FINANCIAL STATEMENTS: Furnish Bank:

                  (a) Not later than 105 days after, and as of the end of each
fiscal year, a financial statement of Borrower prepared by a certified public
accountant to include balance sheet and income statement;

                  (b) Not later than 50 days after the end of each calendar
quarter, a balance sheet and statement of income of Borrower, consolidated with
Guarantor, in a form satisfactory to Bank, certified correct by an officer of
Borrower;

                  (c) Not later than 15 days after the end of each 4 week
accounting period, a borrowing base certificate in a form acceptable to Bank, to
include certification of EBITDA and detailed description of New Restaurants
opened for business during the period, certified correct by an officer of
Borrower; and

                                       8
<PAGE>

                  (d) From time to time such other information as Bank may
reasonably request.

                  Section 5.4. NOTICE TO ACCOUNTANTS. Notify Borrower's and
Guarantor's accountants in writing that Bank intends to rely upon financial
information prepared by such accountants on behalf of Borrower and each
Guarantor in determining whether to make any extension of credit covered by this
Loan Agreement, including any advance, renewal or extension thereto.

                  Section 5.5. EXISTENCE. Preserve and maintain the existence
and all of the rights, privileges and franchises of Borrower and Guarantor;
conduct all business in an orderly, efficient, and regular manner; and comply in
all material respects with the requirements of all applicable laws, rules,
regulations and orders of a governmental authority except where the failure to
preserve and maintain such rights, privileges and franchises or where the
failure to comply with such laws, rules, regulations and orders would not have a
material adverse effect upon the financial condition or results of operations of
Borrower or any Guarantor. Provided, further, that upon the prior written
consent of Bank which shall not be unreasonably withheld or delayed, Borrower or
Guarantor may relocate, consolidate or close any Restaurant if such relocation,
consolidation or discontinuance would not have a material adverse effect upon
the financial condition or results of operations of Borrower or any Guarantor.

                  Section 5.6. INSURANCE. Maintain and keep in force insurance
of the types and in amounts customarily carried in the line of business similar
to that of Borrower and Guarantor, including, but not limited to, fire, public
liability, property damage, workers' compensation, and carried with companies
and in amounts reasonably satisfactory to Bank; and Borrower and Guarantor shall
deliver to Bank from time to time, at Bank's request, schedules setting forth
all insurance then in effect. Borrower and Guarantor shall maintain and keep in
force product liability insurance in such amounts deemed adequate and
economically feasible by the parties.

                  Section 5.7. FACILITIES. Keep all Borrower's and Guarantor's
properties in good repair and condition, and from time to time make necessary
repairs, renewals and replacements thereto as shall be reasonably necessary for
the proper conduct of its business. . Provided, further, that upon the prior
written consent of Bank which shall not be unreasonably withheld or delayed,
Borrower or Guarantor may relocate, consolidate or close any of its facilities
if such relocation, consolidation or discontinuance would not have a material
adverse effect upon the financial condition or results of operations of Borrower
or any Guarantor. Borrower and Guarantor shall promptly satisfy any and all
mechanic's or materialmen's liens filed on any of its facilities.

                  Section 5.8. TAXES AND OTHER LIABILITIES. Pay and discharge
when due any and all indebtedness, obligations, assessments, and taxes of
Borrower or Guarantor, except such as it may in good faith contest or as to
which a bona fide dispute may arise.

                  Section 5.9. LITIGATION. Promptly give notice in writing to
Bank of any litigation pending or threatened against Borrower or Guarantor where
the amount sought exceeds $50,000.

                                       9
<PAGE>

                  Section 5.10. NOTICE TO BANK. Promptly give notice in writing
to Bank of (a) the occurrence of any Event of Default, as defined in Article
VII; (b) any change in the name, identity or corporate structure of Borrower or
Guarantor; or (c) any uninsured or partially uninsured loss through fire, theft,
liability or property damage in excess of an aggregate of $100,000 to Borrower
or to Guarantor.

                  Section 5.11. SECURITY DOCUMENTATION AND POWER OF ATTORNEY.
Upon request of Bank, assist Bank in obtaining and filing all security
agreements, financing statements, and other documentation required to retain
Bank's perfected security interest in the assets of Borrower and Guarantor.
Borrower and Guarantor irrevocably appoints Bank as its attorney in fact to
execute all financing statements and amendments thereto on behalf of Borrower
and Guarantor. Bank shall promptly provide Borrower with copies of all documents
executed by Bank under this Section.

                  Section 5.12. FINANCIAL CONDITIONS. Maintain Borrower's
financial condition, when consolidated with Guarantor, as follows:

                  (a) Borrower shall maintain Net Worth of not less than
$20,000,000.

                  (b) Borrower's Indebtedness to Bank plus any Capital Lease
Excess, shall not exceed the lesser of (i) $20,000,000 , or (ii) (EBITDA x
EBITDA Multiple) + (New Restaurants x $250,000) . If such limit is exceeded,
Borrower shall immediately reduce its outstanding Indebtedness to Bank as
required to bring itself into compliance with the foregoing financial condition.

                  Section 5.13. PAYMENT OF COSTS AND EXPENSES. Borrower and
Guarantor agree to pay to Bank, on demand, all reasonable and necessary costs
and expenses as provided in this Agreement and the other Loan Documents, and all
costs and expenses reasonably and necessarily incurred by Bank from time to time
in connection with this Agreement and the other Loan Documents, including,
without limitation, those reasonably and necessarily incurred in: (i) preparing,
negotiating, amending, waiving or granting consent with respect to the terms of
any or all of the Loan Documents; (ii) enforcing the Loan Documents; (iii)
performing any of Borrower's or Guarantor's duties under the Loan Documents upon
Borrower's or Guarantor's failure to perform them; (iv) filing financing
statements, assignments or other documents relating to the Collateral (e.g.,
filing fees, registration taxes); (v) compromising, pursuing, or defending any
controversy, action or proceeding resulting, directly or indirectly, from Bank's
relationship with Borrower or Guarantor, regardless of whether Borrower or
Guarantor is a party to such controversy, action or proceeding and whether the
controversy, action or proceeding occurs before or after all indebtedness owing
to Bank by Borrower and Guarantor has been paid in full; provided, however, that
Borrower and Guarantor shall not be liable to Bank for costs and expenses
resulting from the gross negligence or the willful misconduct of Bank in
connection therewith; (vi) enforcing or collecting any part of the indebtedness
owing to Bank by Borrower or any guaranty contemplated under the Loan Documents;
(vii) actual out of pocket expenses of Bank incurred to employ collection
agencies or other agents to collect any or all of the accounts and accounts
receivables; and (viii) obtaining independent appraisals of the Collateral from
time to time as deemed reasonably necessary by Bank. Any amount due to Bank
pursuant to this Section shall, if not paid upon demand, accrue interest at the
per annum rate of 5 percentage points over Bank's base rate as adjusted from
time to time.

                                       10
<PAGE>

                         ARTICLE VI - NEGATIVE COVENANTS

                  Borrower and Guarantor covenants that so long as Borrower is
indebted to Bank, Borrower and Guarantor will not, without prior written consent
of Bank which shall not be unreasonably withheld or delayed:

                  Section 6.1. OTHER INDEBTEDNESS. , Create, incur, or permit to
exist any liabilities resulting from borrowings, leases, loans or advances,
whether secured or unsecured, or any liens, mortgages or other encumbrances,
except:

                  (a) Indebtedness to Bank,

                  (b) Obligations of Borrower or Guarantor under Operating
Leases,

                  (c) Obligations of Borrower or Guarantor under Capital Leases
aggregating less than one million dollars ($1,000,000), computed on a
consolidated basis;

                  (d) other indebtedness of Borrower or Guarantor outstanding on
the date of this Agreement and reflected in its financial statements or
otherwise disclosed in writing to Bank; and

                  (e) obligations in the ordinary course of business.

                  Section 6.2. MERGER, CONSOLIDATION, SALE OF ASSETS. Merge into
or consolidate with any corporation or other entity or acquire all or
substantially all of the assets of any other corporation or entity; or sell,
lease, assign, transfer or otherwise dispose of all or substantially all of its
assets.

                  Section 6.3. GUARANTIES, ADVANCES AND DIVIDENDS. Guarantee or
become liable in any way as surety, endorser (other than as endorser of
negotiable instruments in the ordinary course of business) or accommodation for
the debt or obligations of any person or entity, or make advances to officers or
employees in excess of $50,000 in the aggregate, other than regularly scheduled
salary payments and regular payments to an existing qualified profit or pension
plan. Borrower may not make treasury stock purchases.

                         ARTICLE VII - EVENTS OF DEFAULT

                  Section 7.1. EVENTS OF DEFAULT. Any of the following shall
constitute an Event of Default.

                  (a) Default by Borrower in any payment of principal or
interest under any indebtedness to Bank or any sum due in this Agreement; or

                  (b) Any representation or warranty made by Borrower or
Guarantor hereunder which shall be incorrect in any material respect; or

                                       11
<PAGE>

                  (c) Default by Borrower or Guarantor in the performance of any
other term, covenant or agreement contained herein, which default is not cured
within 20 days from its occurrence; or

                  (d) Default by Borrower or Guarantor under the terms of any
agreement, note or other instrument except to the extent that such default could
not reasonably be expected to have a material adverse effect on the financial
condition of Borrower or any Guarantor or where such default has been cured
within 30 days; provided, however, that if Borrower or Guarantor defaults in its
performance under any other agreement, note, or instrument and such default
causes Borrower's or Guarantor's obligations to be immediately due and payable,
then Bank, in its sole discretion, may immediately exercise its rights under
Section 7.3 herein; or

                  (e) The failure of Borrower or Guarantor to promptly pay and
discharge any final judgment, levy of attachment, execution or other process
against the assets of Borrower and such judgment be not satisfied, or such levy
or other process be not removed, within 30 days after the date on which any
period for appeal has expired ; or

                  (f) Borrower or Guarantor shall be adjudicated a bankrupt or
insolvent, or shall consent to or apply for the appointment of a receiver,
trustee or liquidator of itself or any of its property, or shall admit in
writing its inability to pay its debts generally as they become due, or shall
make a general assignment for the benefit of creditors, or shall file a
voluntary petition in bankruptcy or voluntary petition or an answer seeking
reorganization or arrangement in a proceeding under any bankruptcy law; or

                  (g) There shall have occurred a material adverse change, as
reasonably determined by Bank, in the financial condition or results in
operations of the Borrower or Guarantor since the date of this Agreement
including, but not limited to, a change in ownership or management of Borrower
or Guarantor; or

                  (h) An Event of Default (as defined in the other Loan
Documents) occurs in any of the other Loan Documents.

                  Section 7.2. ENVIRONMENTAL EVENTS OF DEFAULT. Any of the
following shall constitute an additional Event of Default:

                  (a) If Bank receives its first notice of a hazardous discharge
or environmental complaint from a source other than Borrower or Guarantor, and
Bank does not receive notice (which may be given in oral form, provided same is
followed with all due dispatch by written notice given by Certified Mail, Return
Receipt Requested) of such hazardous discharge or environmental complaint from
Borrower or Guarantor within seven (7) days of the time Bank first receives said
notice from a source other than Borrower or Guarantor; or

                  (b) If any federal, state or local agency asserts or creates a
lien in excess of $50,000 on any or all of the assets, equipment, property,
leaseholds or other facilities of the Borrower by reason of the occurrence of a
hazardous discharge or environmental complaint; or

                                       12
<PAGE>

                  (c) If any federal, state or local agency asserts a claim
against Borrower or Guarantor and/or its assets, equipment, property, leaseholds
or other facilities for damages or cleanup costs in excess of $50,000 relating
to a hazardous discharge or environmental complaint; provided, however, such
claim shall not constitute an Event of Default if, within ten (10) business days
of the occurrence giving rise to the claim;

                           (i) Borrower or Guarantor can demonstrate to Bank's
satisfaction that Borrower or Guarantor has commenced and is diligently pursuing
either: (1) a cure or correction of the event which constitutes the basis for
the claim, and continues diligently to pursue such cure or correction to
completion or (2) proceedings for an injunction, a restraining order or other
appropriate emergent relief preventing such agency or agencies from asserting
such claim, which relief is granted within ten (10) business days of the
occurrence giving rise to the claim and the injunction, order or emergency
relief is not thereafter resolved or reversed on appeal; and

                           (ii) In either of the foregoing events, Borrower or
Guarantor has posted a bond, letter of credit or other security satisfactory in
form, substance and amount to both Bank and the agency or entity asserting the
claim to secure the correction of the event which constitutes the basis for the
claim.

                  Section 7.3. ACCELERATION. If an Event of Default shall occur,
any indebtedness of Borrower under this Agreement or any Note, any term of such
Note to the contrary notwithstanding, shall, at Bank's option and without notice
become immediately due and payable without presentment, notice or demand, all of
which are hereby expressly waived by Borrower and Guarantor; and the obligation,
if any, of the Bank to permit further borrowings hereunder shall immediately
cease and terminate.

                          ARTICLE VIII - ENVIRONMENTAL

                  Section 8.1. SURVIVAL. This Article shall survive the
expiration or termination of this Agreement.

                  Section 8.2. REPRESENTATIONS AND WARRANTIES. (a) Borrower and
Guarantor have duly complied in all material respects with, and its business,
operations, assets, equipment, property, leaseholds or other facilities are in
compliance in all material respects with, the provisions of all federal, state
and local environmental, health and safety laws, codes and ordinances, and all
rules and regulations promulgated thereunder.

                  (b) Borrower and Guarantor have been issued and will maintain
all required federal, state and local permits, licenses, certificates and
approvals relating to (i) air emissions, (ii) discharges to surface or
groundwater, (iii) noise emissions, (iv) solid or liquid waste disposal, (v) the
use, generation, storage, transportation or disposal of toxic or hazardous
substances or wastes (intended hereby and hereafter to include any and all such
materials listed in any federal, state or local law, code or ordinance and all
rules and regulations promulgated thereunder, as hazardous or potentially
hazardous), or (vi) other environmental, health or safety matters. A true,
accurate and complete list of all such permits, licenses, certificates and
approvals will be made available at Bank's request.

                                       13
<PAGE>

                  (c) Borrower and Guarantor have received no notice of, and
neither knows of nor suspect, facts which might constitute any violations of any
federal, state or local environmental, health or safety laws, codes or
ordinances and any rules or regulations promulgated thereunder with respect to
its business, operations, assets, equipment, property, leaseholds or other
facilities.

                  (d) Except in accordance with a valid governmental permit,
license, certificate of approval attached hereto, there has been no emission,
spill, release or discharge into or upon (i) the air, (ii) soils or any
improvements located thereon, (iii) surface water or groundwater, or (iv) the
sewer, septic system or waste treatment, storage or disposal system servicing
the premises, of any toxic or hazardous substances or wastes at or from the
premises in amounts that would require corrective action; and accordingly the
premises contain no such toxic or hazardous substances or wastes above amounts
that would require corrective action.

                  (e) Except where Borrower or Guarantor have provided written
notification to Bank, there has been no complaint, order, directive, claim,
citation or notice by any governmental authority or any person or entity with
respect to (i) air emissions, (ii) spills, releases or discharges to soils or
improvements located thereon, surface water, groundwater or the sewer, septic
system or waste treatment, storage or disposal systems servicing the premises,
(iii) noise emissions, (iv) solid or liquid waste disposal, (v) the use,
generation, storage, transportation or disposal of toxic or hazardous substances
or waste or (vi) other environmental, health or safety matters affecting the
Borrower, Guarantor or its business, operations, assets, equipment, property,
leaseholds, or other facilities.

                  Section 8.3. BORROWER'S AND GUARANTOR'S LIABILITY. Borrower
and Guarantor have no indebtedness, obligation or liability, absolute or
contingent, matured or not matured, with respect to the storage, treatment,
clean-up or disposal of any solid wastes, hazardous wastes or other toxic or
hazardous substances (including without limitation any such indebtedness,
obligation or liability with respect to any current regulation, law or statute
regarding such storage, treatment, clean-up or disposal).

                  Section 8.4. AFFIRMATIVE COVENANTS. Borrower and Guarantor
will, unless Bank shall otherwise consent in writing:

                  (a) be and remain in compliance in all material respects with
the provisions of all federal, state and local environmental, health and safety
laws, codes and ordinances and all rules and regulations issued thereunder;

                  (b) notify the Bank immediately of any notice of a hazardous
discharge or environmental complaint received from any governmental agency or
any other party;

                  (c) notify the Bank immediately of any hazardous discharge
from or affecting its premises; and

                           (i) immediately contain and remove the same, in
compliance in all material respects with all applicable laws; and

                                       14
<PAGE>

                           (ii) promptly pay any fine or penalty assessed in
connection therewith;

                  (d) permit the Bank to inspect the premises, to conduct tests
thereon, and to inspect all books, correspondence and records pertaining
thereto; and

                  (e) at the Bank's request, and at the Borrower's and
Guarantor's expense, provide a report to Bank of a qualified environmental
engineer, satisfactory in scope, form, and content to the Bank, and such other
and further assurances reasonably satisfactory to the Bank that the condition
has been corrected.

                  Section 8.5. INDEMNIFICATION. Borrower and Guarantor hereby
agree to defend, indemnify, and hold the Bank harmless from and against any and
all claims, damages, judgments, penalties, costs and expenses (including
reasonable attorney fees and court costs now or hereafter arising from the
aforesaid enforcement of this clause) arising directly or indirectly from the
activities of Borrower and Guarantor, their predecessors in interest, or third
parties with whom it has a contractual relationship, or arising directly or
indirectly from the violation of any environmental protection, health or safety
law, whether such claims are asserted by any governmental agency or any other
person. This indemnity shall survive termination of this Agreement.

                           ARTICLE IX - MISCELLANEOUS

                  Section 9.1. WAIVER. No delay or failure of Bank, in
exercising any right, power or privilege hereunder, shall affect such right,
power or privilege; nor shall any single or partial exercise thereof or any
abandonment or discontinuance of steps to enforce such a right, power or
privilege hereunder, shall affect such right, power or privilege. The rights and
remedies of Bank hereunder are cumulative and not exclusive. Any waiver, permit,
consent or approval of any kind to Bank, of any breach or default hereunder, or
any such waiver of any provisions or conditions hereof, must be in writing and
shall be effective only to the extent set forth in such writing.

                  Section 9.2. JURY WAIVER. Borrower and Guarantor expressly
waive any right to a trial by jury in any action or proceedings to enforce or
defend any rights hereunder or under any amendment, instrument, document or
agreement delivered, or which may hereafter be delivered, to or by Borrower or
Guarantor.

                  Section 9.3. NOTICES. All notices, requests and demands given
to or made upon the respective parties shall be deemed to have been given or
made when deposited in the mail, postage prepaid, and addressed as follows:

                  Borrower:            TENT Finance, Inc.
                                       300 Crescent Court, Suite 850
                                       Attn: James K. Zielke
                                       Dallas, Texas 75201

                  Bank:                INTRUST Bank, N.A.
                                       P.O. Box One
                                       Attn:  Bruce A. Long, Sr. Vice President
                                       Wichita, KS  67201

                  Guarantor:           As Set Forth On Attachment "A".

                                       15
<PAGE>

                  Section 9.4. WRITTEN AGREEMENTS. THIS LOAN AGREEMENT, TOGETHER
WITH OTHER WRITTEN AGREEMENTS OF THE PARTIES, IS THE FINAL EXPRESSION OF THE
AGREEMENT BETWEEN THE BANK, THE BORROWER AND GUARANTOR, AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF ANY PRIOR OR CONTEMPORANEOUS ORAL AGREEMENT BETWEEN
THE PARTIES. ANY NON-STANDARD TERM MUST BE WRITTEN BELOW TO BE ENFORCEABLE.

                  BY SIGNING BELOW THE PARTIES AFFIRM THERE ARE NO UNWRITTEN
AGREEMENTS BETWEEN THEM.

<Table>
<S>                                                  <C>
"BANK"                                               "BORROWER"

INTRUST Bank, N.A.                                   TENT Finance, Inc.

By: /s/ Bruce A. Long                                By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Bruce A. Long, Sr. Vice President                    Gary M. Judd,  CEO, COO & President

                                                     Total Entertainment Restaurant Corp.

                                                     By: /s/ Gary M. Judd
                                                         -------------------------------
                                                     Gary M. Judd, CEO, COO & President

"GUARANTOR"

Fox & Hound of Texas, Inc.                           Alabama Fox & Hound, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Fox & Hound of Colorado, Inc.                        Bailey's Sports Grille, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

F & H Restaurant Corp.                               F & H Restaurant of Georgia, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President
</Table>

                                       16
<PAGE>

<Table>
<S>                                                  <C>
Fox & Hound of Illinois, Inc.                        Fox & Hound of  Indiana, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

F & H of Iowa, Inc.                                  Fox & Hound of  Kansas, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

"GUARANTOR"

Fox & Hound of Louisiana, Inc.                       Fox & Hound of Michigan, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Fox & Hound of Missouri, Inc.                        Fox & Hound of Nebraska, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

North Carolina Fox & Hound, Inc.                     Fox & Hound of Ohio, Inc..

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Pennsylvania Fox & Hound, Inc.                       Fox & Hound of Tennessee, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Fox & Hound, Inc.                                    Fox & Hound II, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President
</Table>

                                       17
<PAGE>

<Table>
<S>                                                  <C>
F & H Dallas, L.P.,                                  Fox & Hound Club
F & H Restaurant Corp., General Partner

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Midway Entertainment, Ltd.,                          N. Collins Entertainment, Ltd.,
F &  H Restaurant Corp., General Partner             F & H Restaurant Corp., General Partner

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

"GUARANTOR"

505 Entertainment, Ltd.,                             505 Beverage, Inc.
F & H Restaurant Corp., General Partner

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Fox & Hound of Houston, Ltd.,                        Fox & Hound of Lubbock, Ltd.,
F & H Restaurant Corp., General Partner              F & H Restaurant Corp., General Partner

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Raider Beverage Corporation                          Fox & Hound of Lewisville, Ltd.,
                                                     F & H Restaurant Corp., General Partner

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Fox & Hound of San Antonio, Ltd.,                    Jackson Beverage Corporation,
F & H Restaurant Corp., General Partner              f/k/a N. Collins  Beverage, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President
</Table>

                  Section 9.5. KANSAS LAW APPLICABLE. This Agreement shall be
construed in accordance with the laws of the State of Kansas, without regard to
principles of conflicts of laws, and applicable federal law. Borrower expressly
agrees that jurisdiction and venue for all legal proceedings filed in connection
herewith shall lie exclusively in Sedgwick County, Kansas.

                  Section 9.6. OTHER LOAN DOCUMENTS. Borrower and Guarantor
understands and agrees that it is additionally bound by the terms and conditions
of the other Loan Documents, which such terms and conditions are incorporated
herein and made a part of this Agreement. To the extent that any term or

                                       18
<PAGE>

provision contained in other Loan Documents conflicts with a term or provision
of this Agreement, the term or provision providing the Bank the most security or
the greatest right shall control.

                  Section 9.7. BINDING EFFECT. The rights and obligations of the
parties under this Agreement shall inure to the benefit of, and shall be binding
upon their heirs, personal representatives, successors and assigns.

                  Section 9.8. COUNTERPARTS. This Agreement may be executed in
one or more counterparts each of which shall be deemed to be an original, but
all of which taken together shall constitute one and the same agreement.

                  IN WITNESS WHEREOF, the parties have executed this Agreement
the day first above written.

<Table>
<S>                                                  <C>
"BANK"                                               "BORROWER"

INTRUST Bank, N.A.                                   TENT Finance, Inc.

By: /s/ Bruce A. Long                                By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Bruce A. Long, Sr. Vice President                    Gary M. Judd,  CEO, COO & President

                                                     Total Entertainment Restaurant Corp.

                                                     By: /s/ Gary M. Judd
                                                         -------------------------------
                                                     Gary M. Judd, CEO, COO & President

"GUARANTOR"

Fox & Hound of Texas, Inc.                           Alabama Fox & Hound, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Fox & Hound of Colorado, Inc.                        Bailey's Sports Grille, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

"GUARANTOR"

F & H Restaurant Corp.                               F & H Restaurant of Georgia, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President
</Table>

                                       19
<PAGE>

<Table>
<S>                                                  <C>
"GUARANTOR"

Fox & Hound of Illinois, Inc.                        Fox & Hound of  Indiana, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

F & H of Iowa, Inc.                                  Fox & Hound of Kansas, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Fox & Hound of Louisiana, Inc.                       Fox & Hound of Michigan, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Fox & Hound of Missouri, Inc.                        Fox & Hound of Nebraska, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

North Carolina Fox & Hound, Inc.                     Fox & Hound of Ohio, Inc..

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Pennsylvania Fox & Hound, Inc.                       Fox & Hound of Tennessee, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Fox & Hound, Inc.                                    Fox & Hound II, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President
</Table>

                                       20
<PAGE>

<Table>
<S>                                                  <C>
F&H Dallas, L.P.,                                    Fox & Hound Club
F & H Restaurant Corp., General Partner

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Midway Entertainment, Ltd.,                          N. Collins Entertainment, Ltd.,
F & H Restaurant Corp., General Partner              F & H Restaurant Corp., General Partner

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

505 Entertainment, Ltd.,                             505 Beverage, Inc.
F & H Restaurant Corp., General Partner

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Fox & Hound of Houston, Ltd.,                        Fox & Hound of Lubbock, Ltd.,
F & H Restaurant Corp., General Partner              F & H Restaurant Corp., General Partner

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Raider Beverage Corporation                          Fox & Hound of Lewisville, Ltd.,
                                                     F & H Restaurant Corp., General Partner

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President

Fox & Hound of San Antonio, Ltd.,                    Jackson Beverage Corporation,
F & H Restaurant Corp., General Partner              f/k/a N. Collins  Beverage, Inc.

By: /s/ Gary M. Judd                                 By: /s/ Gary M. Judd
    ---------------------------------                    -------------------------------
Gary M. Judd, President                              Gary M. Judd, President
</Table>

                                       21

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