Document:

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                                                                  EXHIBIT 10.17

<PAGE>   2

                                FOURTH AMENDMENT
                         TO SHORT-TERM CREDIT AGREEMENT

         THIS FOURTH AMENDMENT TO SHORT-TERM CREDIT AGREEMENT dated September
25, 2000 ("this Amendment") is entered into by BOOKS-A-MILLION, INC., a Delaware
corporation ("BAM"), AMERICAN WHOLESALE BOOK COMPANY, INC., an Alabama
corporation ("AWBC"; BAM and AWBC are sometimes together referred to as the
"Borrowers") and AMSOUTH BANK, an Alabama banking corporation formerly known as
AmSouth Bank of Alabama (the "Lender").

                                    RECITALS

         A.       The Borrowers and the Lender have heretofore entered into a
Short-Term Credit Agreement dated as of October 27, 1995, as amended by a First
Amendment thereto dated as of November 1, 1996, a Second Amendment thereto dated
June 4, 1997 and by a Third Amendment thereto dated June 3, 1998 (as so amended,
the "Agreement") whereby the Lender made available to the Borrowers a revolving
credit facility in an aggregate principal amount outstanding not to exceed
$10,000,000 (the "Revolving Facility"), the proceeds of which were to be used by
the Borrowers for general corporate purposes.

         B.       The Borrowers have applied to the Lender for an extension of
the Termination Date of the Revolving Facility until May 30, 2001 and for an
increase in the amount of the Maximum Credit Amount to $15,000,000, the proceeds
of which will continue to be used by the Borrowers for general corporate
purposes.

         C.       The Borrowers and the Lender wish to amend the Agreement as
requested by the Borrowers and as further set forth in this Amendment.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the recitals and the mutual
obligations and covenants contained herein, the Borrowers and the Lender hereby
agree as follows:

         1.       Capitalized terms used in this Amendment and not otherwise
defined herein have the respective meanings attributed thereto in the Agreement.

         2.       The defined term "Assumption Agreement" is hereby added to
Article I of the Agreement and shall read as follows:

                  "Assumption Agreement shall have the meaning attributed to
         that term in Section 2.1(i)."

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         3.       The defined term "Borrowers" set forth in Article I of the
Agreement is hereby amended to read, in its entirety, as follows:

                  "Borrowers shall mean BAM, AWBC and all other entities that
         hereafter become Participating Entities."

         4.       The defined term "Maximum Credit Agreement" set forth in
Article I of the Agreement is hereby amended to read, in its entirety, as
follows:

                  "Maximum Credit Amount shall mean $15,000,000."

         5.       The defined term "Participating Entity" is hereby added to
Article I of the Agreement and shall read as follows:

                  "Participating Entity shall mean any Subsidiary that hereafter
         executes and delivers to the Lender an Assumption Agreement and all of
         the documents necessary to assume joint and several liability as to the
         Credit Obligations."

         6.       The defined term "Revolving Facility" set forth in Article I
of the Agreement is hereby amended to read, in its entirety, as follows:

                  "Revolving Facility shall mean the credit facility made
         available to the Borrowers by the Lender under the terms of Article 2
         in an aggregate amount of up to $15,000,000 as reduced by the Borrowers
         pursuant to Section 2.6 hereof."

         7.       The defined term "Termination Date" set forth in Article I of
the Agreement is hereby amended to read, in its entirety, as follows:

                  "Termination Date" means May 30, 2001, as the same may be
         extended from time to time in accordance with Section 2.7 hereof."

         8.       The reference to the figure "$10,000,000" as it refers to the
defined term "Note" in Section 2.1(a) of the Agreement is hereby amended to
refer instead to the figure "$15,000,000."

         9.       Section 2.1 of the Agreement is hereby amended to add at the
end thereof the following subparagraph (i):

                  "(i)     each person that is to become after the date of this
         Amendment a Participating Entity shall, at the time it is to become a
         Participating Entity, execute and deliver to the Lender, in accordance
         with the provisions of Section 7.13, an Assumption Agreement in the
         form attached hereto as Schedule 2.1 ("Assumption Agreement")."

         10.      The references in Sections 2.1, 2.3(b), 2.3(c), 3.2, 5.9 and
9.15 of the Agreement to the term "AWBC" shall be amended to read "AWBC and each
Participating Entity".

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         11.      Article 2 of the Agreement is hereby amended to add at the end
thereof the following Section 2.8:

                  "SECTION 2.8 FEES. As consideration for the Lender's agreement
         to provide the Short-Term Facility, the Borrowers agree to pay to the
         Lender a facility fee computed at a per annum rate of 12.5 basis points
         (.125%) times the Maximum Credit Amount (the "Facility Fee"). The
         Facility Fee shall be payable in arrears on each Quarterly Payment
         Date, commencing on October 1, 2000, and on the Termination Date or the
         date of any earlier termination of this Agreement. The Facility Fee
         shall be computed on an Actual/360 Basis."

         12.      Article 6 of the Agreement is hereby amended to add at the end
thereof the following Section 6.4:

                  "SECTION 6.4 ADDITIONAL SUPPORTING DOCUMENTS. The Lender shall
         also have received on or before any date after the Closing Date on
         which a person becomes a Participating Entity (i) a copy of resolutions
         of the Board of Directors and, if necessary, the shareholders, partners
         or members of such person certified as in full force and effect on the
         date thereof by the Secretary or Assistant Secretary of such person,
         authorizing such person's execution, delivery and performance of, the
         Loan Documents and all other agreements and instruments that this
         Agreement requires to be executed, delivered and performed by such
         person; (ii) a copy of the organizational documents of such person,
         certified as true and correct on and as of the date on which Loan
         Documents are executed and delivered by such person; (iii) certificates
         of good standing with respect to such person from the appropriate
         Governmental Authorities in the jurisdiction under the laws of which
         such person is incorporated or formed; (iv) an Opinion of Counsel to
         such person consistent with the form of the Opinions of Counsel to the
         Borrowers delivered pursuant to Section 6.3 (with such changes therein
         as are appropriate in the circumstances) as to the execution and
         delivery by such person of the Loan Documents and other matters related
         thereto; (v) fully executed copies of all Loan Documents that this
         Agreement requires to be executed or delivered (or both) by such person
         (including a fully executed Assumption Agreement); and (vi) such
         additional supporting documents as the Lender or its counsel may
         reasonably request."

         13.      Article 7 of the Agreement is hereby amended to add at the end
thereof the following Section 7.13:

                  "SECTION 7.13 CREATION OR ACQUISITION OF SUBSIDIARIES. The
         Borrowers may from time to time create or acquire new Subsidiaries in
         accordance with this Agreement, provided that promptly (and in any
         event within fifteen (15) Business Days) after the creation or direct
         or indirect acquisition by any Borrower of any such new Subsidiary,
         such new Subsidiary will execute and deliver to the Lender an
         Assumption Agreement and all other documents necessary to cause it to
         become jointly and severally liable for all the Credit Obligations
         (subject to the limitations provided in the Assumption Agreement)."

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         14.      Notwithstanding the execution of this Amendment, all of the
indebtedness evidenced by the Note shall remain in full force and effect, as
modified hereby, and all of the collateral described in the Agreement and the
Loan Documents shall remain subject to the liens, security interests and
assignments of the Agreement and the Loan Documents as security for the
indebtedness evidenced by the Note and all other indebtedness described therein;
and nothing contained in this Amendment shall be construed to constitute a
novation of the indebtedness evidenced by the Note; and nothing contained in
this Amendment should be construed to release, satisfy, discharge, terminate or
otherwise affect or impair in any manner whatsoever (a) the validity or
enforceability of the indebtedness evidenced by the Note; (b) the liens,
security interests, assignments and conveyances effected by the Agreement or the
Loan Documents, or the priority thereof; (c) the liability of any maker,
endorser, surety, guarantor or other person that may now or hereafter be liable
under or on account of the Note or the Agreement or the Loan Documents; or (d)
any other security or instrument now or hereafter held by the Lender as security
for or as evidence of any of the above-described indebtedness.

         15.      All references in the Loan Documents to "Credit Agreement"
shall refer to the Agreement as amended by this Amendment, and as the Agreement
may be further amended from time to time.

         16.      The Borrowers hereby certify that the organization documents
of the Borrowers have not been amended since June 3, 1998.

         17.      The Borrowers hereby represent and warrant to the Lender that
all representations and warranties contained in the Agreement are true and
correct as of the date hereof (except representations and warranties that are
expressly limited to an earlier date); and the Borrowers hereby certify that no
Event of Default nor any event that, upon notice or lapse of time or both, would
constitute an Event of Default, has occurred and is continuing.

         18.      Except as hereby amended, the Agreement shall remain in full
force and effect as written. This Amendment may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which when
taken together shall constitute one and the same instrument. The covenants and
agreements contained in this Amendment shall apply to and inure to the benefit
of and be binding upon the parties hereto and their respective successors and
permitted assigns.

         19.      Nothing contained herein shall be construed as a waiver,
acknowledgment or consent to any breach of or Event of Default under the
Agreement and the Loan Documents not specifically mentioned herein.

         20.      This Amendment shall be governed by the laws of the State of
Alabama.

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         IN WITNESS WHEREOF, each of the Borrowers and the Lender has caused
this Amendment to be executed and delivered by its duly authorized corporate
officer as of the day and year first above written.

                                        BOOKS-A-MILLION, INC.

                                        By:      /s/ Sandra B. Cochran
                                          --------------------------------------
                                           Its President

                                        AMERICAN WHOLESALE BOOK COMPANY, INC.

                                        By:    /s/ Sandra B. Cochran
                                            ------------------------------------
                                              Its President

                                        Hand Delivery Address:

                                        402 Industrial Lane
                                        Birmingham, Alabama 35211
                                        FAX: (205) 945-1772
                                        Attention: Chief Financial Officer

                                        Mailing Address:

                                        Post Office Box 19768
                                        Birmingham, Alabama 35219
                                        FAX: (205) 945-1772
                                        Attention: Chief Financial Officer

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                                        AMSOUTH BANK

                                        By:    /s/ David A. Simmons
                                            ------------------------------------
                                              Its Senior Vice President

                                        Hand Delivery Address:

                                        Upper Lobby, AmSouth-Sonat Tower
                                        1900 Fifth Avenue North
                                        Birmingham, Alabama 35203
                                        FAX: (205) 801-0157
                                        Attention: Metropolitan Commercial
                                                   Banking Department

                                        Mailing Address:

                                        Post Office Box 11007
                                        Birmingham, Alabama 35288
                                        FAX: (205) 801-0157
                                        Attention: Metropolitan Commercial
                                                   Banking Department<PAGE>   1

                                                                   EXHIBIT 10.18

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                      FOURTH AMENDMENT TO CREDIT AGREEMENT

         THIS FOURTH AMENDMENT TO CREDIT AGREEMENT dated as of September 25,
2000 ("this Amendment") is entered into by BOOKS-A-MILLION, INC., a Delaware
corporation ("BAM"), AMERICAN WHOLESALE BOOK COMPANY, INC., an Alabama
corporation ("AWBC"; BAM and AWBC are sometimes together referred to as the
"Borrowers"), AMSOUTH BANK, an Alabama banking corporation formerly known as
AmSouth Bank of Alabama ("AmSouth"), SUNTRUST BANK, ATLANTA, a Georgia banking
corporation, BANK OF AMERICA, N.A., a national banking association, and
SOUTHTRUST BANK, an Alabama banking corporation (collectively, the "Lenders"),
and AMSOUTH BANK, an Alabama banking corporation formerly known as AmSouth Bank
of Alabama, as agent for the Lenders (the "Agent").

                                    RECITALS

         A.       The Borrowers, the Agent and the Lenders are parties to that
certain Credit Agreement dated October 27, 1995 as amended by a First Amendment
thereto dated June 4, 1997, a Second Amendment thereto dated June 19, 1998 and a
Third Amendment thereto dated as of June 18, 1999 (collectively, the
"Agreement") pursuant to which the Lenders have made available to the Borrowers
a revolving credit facility in an aggregate principal amount outstanding not to
exceed $90,000,000, the proceeds of which are to be used by the Borrowers for
general corporate purposes.

         B.       The Borrowers have requested the Lenders and the Agent amend
the Agreement, as hereinafter set forth.

         C.       The Lenders and the Agent are willing to make such amendment
only if, among other things, the Borrowers enter into this Amendment.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the foregoing Recitals, the
Borrowers, the Lenders and the Agent hereby agree as follows:

         1.       Capitalized terms used in this Amendment and not otherwise
defined herein have the respective meanings attributed thereto in the Agreement.

         2.       The defined term "Cash Management Line of Credit" set forth in
Article I of the Agreement is hereby amended to read, in its entirety, as
follows:

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                  "Cash Management Line of Credit shall mean that certain line
         of credit in the maximum principal amount of $15,000,000 made available
         by AmSouth, as lender, to the Borrowers pursuant to a Short-Term Credit
         Agreement dated as of October 27, 1995, as amended by a certain First
         Amendment thereto dated November 1, 1996, by a Second Amendment thereto
         dated June 4, 1997, by a Third Amendment thereto dated June 3, 1998 and
         by a Fourth Amendment thereto dated September 25, 2000, with a maturity
         date of May 30, 2001, as the same may be renewed or extended from time
         to time hereafter."

         3.       The defined term "Assumption Agreement" is hereby added to
Article I of the Agreement and shall read as follows:

                  "Assumption Agreement shall have the meaning attributed to
         that term in Section 2.1(i)."

         4.       The defined term "Borrowers" set forth in Article I of the
Agreement is hereby amended to read, in its entirety, as follows:

                  "Borrowers shall mean BAM, AWBC and all other entities that
         hereafter become Participating Entities."

         5.       The defined term "Participating Entity" is hereby added to
Article I of the Agreement and shall read as follows:

                  "Participating Entity shall mean any Subsidiary that hereafter
         executes and delivers to the Agent an Assumption Agreement and all of
         the documents necessary to assume joint and several liability as to the
         Credit Obligations."

         6.       Section 2.1 of the Agreement is hereby amended to add at the
end thereof the following subparagraph (i):

                  "(i)     each person that is to become after the date of this
         Amendment a Participating Entity shall, at the time it is to become a
         Participating Entity, execute and deliver to the Agent, in accordance
         with the provisions of Section 7.13, an Assumption Agreement in the
         form attached hereto as Schedule 2.1 ("Assumption Agreement")."

         7.       The references in Sections 2.1, 3.2, 5.9 and 10.15 of the
Agreement to the term "AWBC" shall be amended to read "AWBC and each
Participating Entity".

         8.       Article 6 of the Agreement is hereby amended to add at the end
thereof the following Section 6.4:

                  "SECTION 6.4 ADDITIONAL SUPPORTING DOCUMENTS. The Agent shall
         also have received on or before any date after the Closing Date on
         which a person

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         becomes a Participating Entity (i) a copy of resolutions of the Board
         of Directors and, if necessary, the shareholders, partners or members
         of such person certified as in full force and effect on the date
         thereof by the Secretary or Assistant Secretary of such person,
         authorizing such person's execution, delivery and performance of, the
         Loan Documents and all other agreements and instruments that this
         Agreement requires to be executed, delivered and performed by such
         person; (ii) a copy of the organizational documents of such person,
         certified as true and correct on and as of the date on which Loan
         Documents are executed and delivered by such person; (iii) certificates
         of good standing with respect to such person from the appropriate
         Governmental Authorities in the jurisdiction under the laws of which
         such person is incorporated or formed; (iv) an Opinion of Counsel to
         such person consistent with the form of the Opinions of Counsel to the
         Borrowers delivered pursuant to Section 6.3 (with such changes therein
         as are appropriate in the circumstances) as to the execution and
         delivery by such person of the Loan Documents and other matters related
         thereto; (v) fully executed copies of all Loan Documents that this
         Agreement requires to be executed or delivered (or both) by such person
         (including a fully executed Assumption Agreement); and (vi) such
         additional supporting documents as the Agent or its counsel may
         reasonably request."

         9.       Article 7 of the Agreement is hereby amended to add at the end
thereof the following Section 7.13:

                  "SECTION 7.13 CREATION OR ACQUISITION OF SUBSIDIARIES. The
         Borrowers may from time to time create or acquire new Subsidiaries in
         accordance with this Agreement, provided that promptly (and in any
         event within fifteen (15) Business Days) after the creation or direct
         or indirect acquisition by any Borrower of any such new Subsidiary,
         such new Subsidiary will execute and deliver to the Agent an Assumption
         Agreement and all other documents necessary to cause it to become
         jointly and severally liable for all the Credit Obligations (subject to
         the limitations provided in the Assumption Agreement)."

         10.      Notwithstanding the execution of this Amendment, all of the
indebtedness evidenced by each of the Notes shall remain in full force and
effect, as modified hereby, and nothing contained in this Amendment shall be
construed to constitute a novation of the indebtedness evidenced by any of the
Notes or to release, satisfy, discharge, terminate or otherwise affect or impair
in any manner whatsoever (a) the validity or enforceability of the indebtedness
evidenced by any of the Notes; (b) the liens, security interests, assignments
and conveyances effected by the Agreement or the Loan Documents, or the priority
thereof; (c) the liability of any maker, endorser, surety, guarantor or other
person that may now or hereafter be liable under or on account of any of the
Notes or the Agreement or the Loan Documents; or (d) any other security or
instrument now or hereafter held by the Agent or the Lenders as security for or
as evidence of any of the above-described indebtedness.

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         11.      All references in the Loan Documents to "Credit Agreement"
shall refer to the Agreement as amended by this Amendment, and as the Agreement
may be further amended from time to time.

         12.      The Borrowers hereby certify that the organizational documents
of the Borrowers have not been amended since June 18, 1999.

         13.      The Borrowers hereby represent and warrant to the Agent and
the Lenders that all representations and warranties contained in the Agreement
are true and correct as of the date hereof; and the Borrowers hereby certify
that no Event of Default nor any event that, upon notice or lapse of time or
both, would constitute an Event of Default, has occurred and is continuing.

         14.      Except as hereby amended, the Agreement shall remain in full
force and effect as written. This Amendment may be executed in one or more
counterparts, each of which shall be deemed an original, and all of which when
taken together shall constitute one and the same instrument. The covenants and
agreements contained in this Amendment shall apply to and inure to the benefit
of and be binding upon the parties hereto and their respective successors and
permitted assigns.

         15.      Nothing contained herein shall be construed as a waiver,
acknowledgment or consent to any breach of or Event of Default under the
Agreement and the Loan Documents not specifically mentioned herein.

         16.      This Amendment shall be governed by the laws of the State of
Alabama.

                  [Remainder of this page intentionally blank]

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         IN WITNESS WHEREOF, each of the Borrowers, the Lenders and the Agent
has caused this Amendment to be executed and delivered by its duly authorized
corporate officer as of the day and year first above written.

                                     BOOKS-A-MILLION, INC.

                                     By:    /s/ Sandra B. Cochran
                                         --------------------------------------
                                           Its  President

                                     AMERICAN WHOLESALE BOOK COMPANY, INC.

                                     By:    /s/ Sandra B. Cochran
                                         --------------------------------------
                                           Its  President

<PAGE>   7

                                    AMSOUTH BANK

                                    By:    /s/ David A. Simmons
                                        ----------------------------------------
                                          Its Senior Vice President

<PAGE>   8

                                    SUNTRUST BANK, ATLANTA

                                    By:    /s/ David Edge
                                        ----------------------------------------
                                          Its  Vice President

<PAGE>   9

                                    BANK OF AMERICA, N.A.

                                    By:    /s/ David B. Jackson
                                        ----------------------------------------
                                          Its:  Vice President

<PAGE>   10

                                    SOUTHTRUST BANK

                                    By:    /s/ Austin Davis
                                        ----------------------------------------
                                          Its:  Commercial Loan Officer

<PAGE>   11

                                    AMSOUTH BANK, as Agent

                                    By:    /s/ David A. Simmons
                                        ----------------------------------------
                                          Its Senior Vice President

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