<PAGE>   1

                                                                    Exhibit 10.3

                               FIRST AMENDMENT TO
                              MANAGEMENT AGREEMENT

                This First Amendment (this "Amendment"), dated as of April __,
2001, by and between Harvest Partners, Inc., a New York corporation ("Harvest"),
and Global Energy Equipment Group, L.L.C., a Delaware limited liability company
(the "Company").

                              W I T N E S S E T H:

                WHEREAS, the Company and Harvest entered into a Management
Agreement (the "Agreement"), dated August 1, 2000, whereby Harvest agreed to
provide the Company and/or its subsidiaries and affiliates with financial
advisory and strategic planning services in exchange for good and valuable
consideration; and

                WHEREAS, the parties hereto desire, and deem it in their own
best interests, to amend the Agreement as provided herein.

                NOW THEREFORE, in consideration of the mutual agreements herein
contained and of the mutual benefits hereby provided, the parties hereto hereby
agree as follows:

                1. Definitions. Capitalized terms used and not otherwise defined
herein shall have the respective meaning assigned to such term in the Agreement.

                2. Amendments to the Agreement.

                (a) Section 3(a) of the Agreement is hereby amended by deleting
the reference to "...equal to the sum of $750,000" and inserting in lieu thereof
"...equal to the sum of $1,250,000".

                (b) Section 3(b) of the Agreement is hereby deleted in its
entirety.

                (c) Section 7 of the Agreement is hereby amended by adding the
following new sentence to the end of Section 7:

                        "The indemnification obligations of this Section 7 shall
    survive the termination of this Agreement."

                3. Status of the Agreement; Effectiveness. This Amendment is
limited solely for the purposes and to the extent expressly set forth herein,
and, except as expressly modified hereby, the terms, provisions and conditions
of the Agreement shall continue in full force and effect and are hereby ratified
and confirmed in all respects. In the event of any conflict between the terms of
this Amendment and the terms of the Agreement, the terms of this Amendment shall
govern. This Amendment shall be effective as of the date on which the initial
public offering of shares of common stock of Global Power Equipment Group Inc.
(the "IPO") is consummated.

<PAGE>   2

                4. Counterparts. This Amendment may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one agreement binding upon all of the parties hereto.

                5. Amendment and Restatement. The parties agree that, for
convenience of reference, the Agreement and this Amendment shall be restated
upon consummation of the IPO.

                6. Governing Law. This Amendment shall be construed in
accordance with, and be governed by, the laws of the State of New York, without
giving effect to the conflicts of law principles thereof.

                                      *****

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



                                  HARVEST PARTNERS, INC., a New York Company



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



                                  GLOBAL ENERGY EQUIPMENT GROUP,
                                    L.L.C., a Delaware limited liability company



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



                                      -2-
<PAGE>   3


                                                                   EXHIBIT 10.15

                               EXCHANGE AGREEMENT

                This EXCHANGE AGREEMENT (this "Agreement") is entered into as of
May 1, 2001, by and among Global Power Equipment Group Inc. (the "Company"), a
Delaware corporation, and each of the Persons named on Schedule I attached
hereto (each such Person, a "Purchaser" and, collectively, the "Purchasers").

                Capitalized terms used and not otherwise defined herein shall
have the respective meaning given such term in the Limited Liability Company
Agreement of GEEG Holdings, L.L.C. ("GHLLC"), a Delaware limited liability
company, dated as of August 1, 2000.

                              W I T N E S S E T H:

                WHEREAS, each Purchaser owns the number of Preferred Units and
Class A Common Units (collectively, with respect to such Purchaser, "Units") in
GHLLC set forth opposite such Purchaser's name on Schedule I attached hereto;

                WHEREAS, each Purchaser desires to contribute such Purchaser's
Units to the Company in exchange for shares of common stock (the "Common
Stock"), par value $0.01 per share, of the Company;

                WHEREAS, the Company desires to issue shares of Common Stock to
each such Purchaser in exchange for all of such Purchaser's Units; and

                WHEREAS, with respect to each Purchaser other than GEEG
Acquisition Holdings Corp., the parties hereto intend for the transactions
contemplated hereby to qualify as a tax free contribution under Section 351(d)
of the Internal Revenue Code of 1986, as amended (the "Code") and, with respect
to GEEG Acquisition Holdings Corp., the parties hereto intend for the
transactions contemplated hereby to qualify as a tax free reorganization under
Section 368(a)(1) of the Code.

                NOW, THEREFORE, in consideration of the mutual agreements herein
contained and the mutual benefits hereby provided, the Company and the
Purchasers, intending to be bound legally, hereby agree as follows:

                Section 1.      Exchanges of Units for Common Stock.

                1.1.    Exchanges. Subject to the terms and conditions
hereinafter set forth, each Purchaser hereby agrees to transfer to the Company
such Purchaser's Units and the Company hereby agrees to issue to such Purchaser
shares of Common Stock as follows:

                (a)     Each Common Unit shall be exchanged for a number of
        shares of Common Stock equal to the amount obtained when one (1) is
        multiplied by the quotient resulting from dividing (i) the value of the
        Company (as determined by the underwriters in connection with the
        initial public offering (the "IPO") of shares of Common Stock), less the
        aggregate of the net cash proceeds received by the Company in the IPO
        and the aggregate capital contribution with respect to the Preferred
        Units, divided by the


<PAGE>   4

        aggregate amount of issued and outstanding Common Units and Common Units
        into which employee stock options granted pursuant to the 2000 Option
        Plan are exercisable on the date of consummation of the IPO (the
        "Effective Date") by (ii) the price per share at which shares of Common
        Stock will be offered in the IPO; and

                (b)     Each Preferred Unit shall be exchanged for the number of
        shares of Common Stock equal to the amount obtained when one hundred
        (100) is divided by the price per share at which shares of Common Stock
        will be offered in the IPO.

                1.2.    No Fractional Shares. No fractional shares of Common
Stock of the Company shall be issued under this Agreement and any fractional
share interests will not entitle the owner thereof to vote or to have any rights
of a holder of Common Stock of the Company. In lieu of any such fractional
shares, each holder of shares of Common Stock of the Company who would otherwise
have been entitled to a fraction of a share of Common Stock of the Company shall
be paid an amount in cash (without interest) equal to the product of (i) such
fractional part of a share of Common Stock of the Company multiplied by (ii) the
price per share at which shares of Common Stock will be offered in the IPO. As
promptly as practicable after the determination of the amount of cash, if any,
to be paid to holders of fractional interests, the Company will forward payments
to such holders of fractional interests subject to and in accordance with the
terms hereof.

                1.3.    Closing. The exchanges referred to in Section 1.1 (the
"Closing") shall take place at the offices of White & Case LLP, 1155 Avenue of
the Americas, New York, New York 10036, or such other place as shall be mutually
agreed to by the parties hereto, on such date and time as shall be mutually
agreed to by the parties hereto. Such date is herein referred to as the "Closing
Date."

                Section 2.      Representations of the Purchasers

                Each Purchaser represents and warrants to the Company as
follows:

                2.1.    Such Purchaser represents that such Purchaser is not
acquiring the Common Stock with a view to, or for resale in connection with, any
distribution of the Common Stock in violation of the Securities Act of 1933 (the
"Securities Act"). Such Purchaser understands that the Common Stock has not been
registered under the Securities Act or the securities laws of any state and that
the Common Stock has been issued to such Purchaser by reason of specific
exemptions under the provisions thereof which depend in part upon the investment
intent of such Purchaser and upon the other representations made by such
Purchaser in this Agreement. Such Purchaser understands that the Company is
relying upon the representations and agreements made by such Purchaser in this
Agreement.

                2.2.    Such Purchaser understands that such Purchaser may not
sell or transfer the Common Stock purchased pursuant to this Agreement unless
the Common Stock is registered pursuant to the requirements of the Securities
Act and of any applicable state or "blue sky" securities laws or regulations,
or, if required by the Company, such Purchaser furnishes an opinion of counsel,
in form and substance satisfactory to the Company, to the effect that
registration is not then required under the Securities Act or under any
applicable state or "blue sky" securities laws


                                      -2-
<PAGE>   5

or regulations. Such Purchaser further understand that the Company has no
obligation or present intention of so registering the Common Stock, and that
there is no assurance that any exemption from registration under the Securities
Act will be available or, if available, that such exemption will allow such
Purchaser to dispose of or otherwise transfer any or all of the shares of Common
Stock in the amounts or at the times that such Purchaser may propose.

                2.3.    Such Purchaser (i) has such knowledge, sophistication
and experience in business and financial matters that such Purchaser is capable
of evaluating the merits and risks of the exchange referred to in Section 1.1
hereof, (ii) fully understands the nature, scope and duration of the limitations
applicable to the Common Stock, (iii) is able to bear the economic risk of the
exchange referred to in Section 1.1 hereof, and (iv) is an "Accredited Investor"
as defined in Regulation D under the Securities Act.

                Section 3.      Miscellaneous

                3.1.    Effectiveness. This Agreement shall be effective as of
12:01 AM on the Effective Date.

                3.2.    Legend. So long as applicable, each certificate
representing any portion of the shares of Common Stock shall be stamped or
otherwise imprinted with a legend in the following form:

        "The securities represented by this certificate have not been registered
        under the Securities Act of 1933, as amended (the "Securities Act"), and
        such securities may not be offered, sold, pledged or otherwise
        transferred except (1) pursuant to an exemption from, or in a
        transaction not subject to, the registration requirements under the
        Securities Act or (2) pursuant to an effective registration statement
        under the Securities Act, in each case in accordance with any applicable
        securities laws of any State of the United States."

After the above requirement for a legend is no longer applicable because the
shares of Common Stock are freely transferable under the Securities Act, the
Company shall remove such legend upon request from a holder of such shares of
Common Stock, if outside counsel for such holder reasonably determines that the
transfer of such shares of Common Stock is no longer restricted by the
Securities Act and the general counsel of the Company reasonably concurs in such
determination.

                3.3.    Termination, Waiver, Amendment. Neither this Agreement
nor any provisions hereof shall be waived, modified, changed, discharged or
terminated except by an instrument in writing signed by the party against whom
such waiver, modification, change, discharge or termination is sought; provided,
however, that if the transactions contemplated by this Agreement are not
consummated by August 31, 2001, this Agreement shall terminate.

                3.4.    Assignability. Neither this Agreement nor any right,
remedy, obligation or liability arising hereunder or by reason hereof shall be
assignable by either the Company or any Purchaser, without the prior written
consent of the other parties hereto (in the case of a proposed assignment by the
Company) or the Company (in the case of a proposed assignment by such
Purchaser).


                                      -3-
<PAGE>   6

                3.5.    Power of Attorney. (a) Each Purchaser, by its execution
hereof, hereby irrevocably makes, constitutes and appoints the Board of
Directors as its true and lawful agent and attorney-in-fact, with full power of
substitution and full power and authority in its name, place and stead to make,
execute, sign, acknowledge, swear to, record and register all certificates and
other instruments deemed advisable by the Board of Directors to carry out the
provisions of this Agreement.

                (b)     The foregoing power of attorney:

                        (i)     is coupled with an interest, shall be
                irrevocable and shall survive the death, incapacity or
                bankruptcy of each Purchaser; and

                        (ii)    may be exercised by the Board of Directors
                either by authorizing a Person to sign separately as
                attorney-in-fact for each Purchaser or, after listing all of the
                Purchasers executing an instrument, by a single signature of a
                Person authorized by the Board of Directors acting as
                attorney-in-fact for all of them.

                3.6.    Severability. If any provision of this Agreement or the
application of any such provision to any Person or circumstance shall be held
invalid, illegal or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision hereof.

                3.7.    Section and Other Headings. The section headings
contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement.

                3.8.    Entire Agreement. This Agreement contains the entire
agreement between the parties hereto with respect to the subject matter hereof
and supersedes all prior arrangements or understandings (whether written or
oral) with respect thereto.

                3.9.    Counterparts. For the convenience of the parties, any
number of counterparts of this Agreement may be executed by the parties hereto
and each such executed counterpart shall be deemed to be an original instrument.

                3.10.   Notices. All notices and other communications provided
for herein and all legal process in regard hereto shall be validly given, made
or served, if in writing and delivered by personal delivery, overnight courier,
telecopier or registered or certified mail, return-receipt requested and postage
prepaid addressed as follows:


                                      -4-
<PAGE>   7

                If to a Purchaser, to:

                The address set forth under such Purchaser's
                name on Schedule I attached hereto

                If to the Company, to:

                Global Power Energy Group Inc.
                c/o Harvest Partners, Inc.
                280 Park Avenue, 33rd Floor
                New York, NY 10017
                Attention: Stephen Eisenstein

                Any such communication shall be deemed given, made or served as
of the date so delivered or, in the case of any communication delivered by mail,
as of the date so received.

                3.11.   GOVERNING LAW. THE AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO SUCH STATE'S CHOICE OF LAW PROVISIONS.

                                    * * * * *


                                      -5-
<PAGE>   8

                IN WITNESS WHEREOF, the Company and each Purchaser has executed
this Agreement as of the date first written above.




                                               GEEG ACQUISITION HOLDINGS CORP.



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

<PAGE>   9


                  [Signature page for this Exchange Agreement]




                                               GEEG ACQUISITION HOLDINGS LLC



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


<PAGE>   10

                  [Signature page for this Exchange Agreement]


                                               GLOBAL POWER EQUIPMENT GROUP INC.



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


<PAGE>   11

                  [Signature page for this Exchange Agreement]



                                               SMC POWER HOLDINGS, L.L.C.



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



<PAGE>   12

                  [Signature page for this Exchange Agreement]


                                               SAW MILL INVESTMENTS, L.L.C.



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



<PAGE>   13

                  [Signature page for this Exchange Agreement]


                                               CASCADE INVESTMENT PARTNERS,
                                                 L.L.C.



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


<PAGE>   14

                  [Signature page for this Exchange Agreement]


                                               PARIBAS PRINCIPAL INCORPORATED



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


<PAGE>   15

                  [Signature page for this Exchange Agreement]


                                               INDOSUEZ GEEG PARTNERS



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

<PAGE>   16
                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   William M. Gerstner


<PAGE>   17

                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   Larry Edwards


<PAGE>   18

                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   Gary Obermiller


<PAGE>   19

                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   Gene Schockemoehl


<PAGE>   20

                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   Michael Hackner


<PAGE>   21

                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   James Wilson


<PAGE>   22

                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   Jack Silver

<PAGE>   23

                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   Albert Breuer

<PAGE>   24

                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   Tike Wong


<PAGE>   25

                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   John Rieckman


<PAGE>   26

                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   Monte Ness


<PAGE>   27

                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   Kevin Zahler


<PAGE>   28

                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   Jack McSweeney


<PAGE>   29

                  [Signature page for this Exchange Agreement]


                                               By:
                                                   -----------------------------
                                                   Bengt Sohlen


<PAGE>   30

                                                                      SCHEDULE I



<TABLE>
<CAPTION>
                                                           Preferred Units      Class A Common
          Purchaser                                           Exchanged        Units Exchanged
          ---------                                           ---------        ---------------
<S>                                                        <C>                 <C>
GEEG Acquisition Holdings Corp.
[Address]                                                     558,517.44           620,575.3

GEEG Acquisition Holdings LLC
[Address]                                                     248,850.00           276,500.0

SMC Power Holdings, L.L.C.
[Address]                                                      24,423.81            27,137.5

Saw Mill Investments, L.L.C.
[Address]                                                      26,263.32            29,181.5

Cascade Investment Partners, L.L.C.
[Address]                                                       8,100.00             9,000.0

Paribas Principal Incorporated
[Address]                                                      15,157.63            16,841.8

Indosuez GEEG Partners
[Address]                                                      13,137.09            14,596.8

William M. Gerstner
[Address]                                                       2,918.15             3,242.4

Larry Edwards
[Address]                                                      20,120.06            22,355.6

Gary Obermiller
[Address]                                                      15,638.32            17,375.9

Gene Schockemoehl
[Address]                                                      14,916.36            16,573.7
</TABLE>



<PAGE>   31

                                                                      Schedule I
                                                                          Page 2


<TABLE>
<S>                                                          <C>                 <C>
Michael Hackner
[Adress]                                                        8,130.44             9.033.8

James Wilson
[Address]                                                       6,965.30             7,739.2

Jack Silver
[Address]                                                       4,626.12             5,140.2

Albert Breuer
[Address]                                                       4,515.06             5,016.7

Tike Wong
[Address]                                                       4,415.65             4,906.3

John Rieckman
[Address]                                                       4,570.59             5,078.5

Monte Ness
[Address]                                                       4,920.47             5,467.2

Kevin Zahler
[Address]                                                       4,781.63             5,312.9

Jack McSweeney
[Address]                                                      18,000.00            20,000.0

Bengt Sohlen
[Address]                                                              0             1,205.0
</TABLE>