<PAGE>

                                                                   EXHIBIT 10.29

                   FOURTH AMENDMENT TO MODIFICATION AGREEMENT


         THIS FOURTH AMENDMENT TO MODIFICATION  AGREEMENT (this  "Amendment") is
made as of the 18th day of January, 2002 by and among STEELCLOUD, INC. (formerly
known as Dunn Computer Corporation and changed to SteelCloud, Inc. pursuant to a
certificate  of amendment  issued by the Virginia State  Corporation  Commission
effective  as  of  July  30,  2001),  a  Virginia  corporation,   DUNN  COMPUTER
CORPORATION,  a Delaware corporation,  INTERNATIONAL DATA PRODUCTS, CORP., STMS,
INC., PUERTO RICO INDUSTRIAL  MANUFACTURING  OPERATIONS  ACQUISITION,  CORP. and
DUNN COMPUTER OPERATING COMPANY  (collectively,  the "Borrower") and FIRST UNION
NATIONAL BANK,  holder of the Note (as defined below)  pursuant to an assignment
from First  Union  Commercial  Corporation  to First  Union  National  Bank (the
"Lender").

                                    Recitals

         R-1. The Borrower and the Lender entered into a Modification  Agreement
dated February 11, 2000, as modified by an Amendment to  Modification  Agreement
dated on or about November,  2000, a Second Amendment to Modification  Agreement
dated  July 26,  2001 and a Third  Amendment  to  Modification  Agreement  dated
November 28, 2001 (collectively,  the "Modification Agreement"), with respect to
the Line of Credit.

         R-2.  Capitalized  terms used herein and not otherwise  defined  herein
shall  have  the  meanings  set  forth  in  the  Modification   Agreement.   The
Modification   Agreement,   the  Modification  of  Revolving  Note,  the  Second
Modification of Revolving Note, the Third Modification of Revolving Note and any
other documents executed in connection with the Modification  Agreement shall be
deemed to be included  within the  definition of "Loan  Documents" as defined in
the Modification Agreement.

         R-3.  As of  January  11,  2002,  there is due under the Line of Credit
principal  of  Four  Million  Six  Hundred  Twenty-two  Thousand  Seven  Hundred
Sixty-two and 48/100 Dollars ($4,622,762.48) and interest of Five Thousand Eight
Hundred Twenty and 38/100 Dollars  ($5,820.38),  plus  attorneys' fees and other
costs which are payable under the Loan Documents.

         R-4. Pursuant to the Modification Agreement, the Line of Credit expires
on  February  28,  2002 (the  "Maturity  Date"),  at which  time all  principal,
interest and other sums then outstanding shall be immediately due and payable.

         R-5.  The Borrower has  requested  that the Lender  extend the Maturity
Date until March 31, 2003 and the Lender is agreeable to doing so subject to the
terms and conditions set forth in the Modification Agreement, as amended by this
Amendment.

       NOW, THEREFORE,  in consideration of the foregoing,  the mutual covenants
and agreements set forth herein,  the sum of Ten Dollars ($10.00) and other good
and  valuable  consideration,  the receipt and  sufficiency  of which are hereby
acknowledged by the parties, the parties hereto covenant and agree as follows.

<PAGE>

         1.  Recitals.  The Recitals set forth above are a material part of this
Amendment.  The Borrower  acknowledges  and affirms the accuracy of the Recitals
set forth above.

         2. Increase in Line of Credit.  Upon execution of this  Amendment,  the
availability  under  the Line of Credit  shall be  increased  from a maximum  of
$5,000,000  to a  maximum  of  $7,500,000,  with  Advances  to be made in strict
compliance with the Line of Credit  Agreement,  as modified by the  Modification
Agreement and this Amendment.

         3. Monthly Interest Payments and Fee; Maturity.

                  (a)  Interest  shall be paid on the last day of each  month in
arrears for such month.

                  (b) In addition  to  interest,  a monthly fee of One  Thousand
Dollars ($1,000) shall be paid on the last day of each month in arrears for such
month.

                  (c)  Subject  to the  terms  and  conditions  set forth in the
Modification  Agreement and this Amendment,  the Maturity Date is extended until
March 31, 2003, on which date, if not sooner paid, the entire principal  balance
of the Note,  all  accrued  and unpaid  interest  thereon and all other sums due
thereunder shall be due and payable in full.

         4. Interest Rate. Commencing as of the date hereof and continuing until
repayment  in  full of all  sums  due  under  the  Note,  the  unpaid  principal
outstanding  from  time  to  time  under  the  Note  shall  bear  interest  at a
fluctuating  rate  which  is the  lower  of (a)  the  Lender's  Prime  Rate  (as
hereinafter  defined)  per  annum  or  (b)  the  LIBOR  Market  Index  Rate  (as
hereinafter  defined) plus two and one-half  percent (2 1/2%) per annum, as that
rate may change from day to day in  accordance  with changes in the LIBOR Market
Index Rate. Interest shall be calculated daily on the basis of the actual number
of days elapsed over a 360 day year.

                  "Prime  Rate"  means  the rate of  interest  announced  by the
Lender from time to time as its prime rate. The Borrower  acknowledges  that the
Lender's Prime Rate is not represented to be the lowest rate of interest offered
by the Lender.  The rate of interest shall change  automatically and immediately
as of the date of any change in the Prime Rate,  without  notice to the Borrower
or any endorser, surety or guarantor.

                  "LIBOR  Market  Index Rate"  means,  for any day, the rate for
1-month U.S. dollar deposits as reported on Telerate page 3750 as of 11:00 a.m.,
London time, on such day, or if such day is not a London  business day, then the
immediately  preceding  London  business  day  (or if not so  reported,  then as
determined by the Lender from another recognized source or interbank quotation).

                                       2
<PAGE>

         5. Default  Interest.  Upon the  occurrence  of an Event of Default (as
hereinafter  defined),  the  principal  amount  outstanding  shall bear interest
thereafter,  until the Event of  Default  is cured,  at a rate equal to the then
applicable interest rate plus two percent (2%).

         6. Modification of Note.  Contemporaneously  with the execution of this
Agreement,  the Borrower  shall execute and deliver to the Lender a modification
of the Note reflecting the modified Maturity Date and the modified interest rate
as  set  forth  in  paragraphs  3(a)  and  (c),  4  and 5  above,  respectively,
substantially in the form attached hereto as Exhibit A.

         7.  Automatic  Debit of Checking  Account for  Interest  and Fees.  The
Borrower  authorizes  the  Lender to  continue  to debit on the last day of each
month account number  2065204298279 and/or any successor account with the Lender
(routing  number  051400549)  (the "Account") for all interest and fees then due
under the Note, the other Loan Documents, the Modification Agreement and/or this
Amendment.  The Borrower represents and warrants to the Lender that the Borrower
is the sole  owner of this  account  and  preauthorizes  these  periodic  debits
pursuant to its right of said ownership.

         8. Borrowing Base.

                  (a) Effective upon the execution of this Amendment, "Borrowing
Base" shall mean at the time in question the sum of: (a) ninety percent (90%) of
the Borrower's Eligible Government Accounts plus (b) eighty percent (80%) of the
Borrower's Eligible Commercial  Accounts,  provided that all Accounts of IDP and
PRIMO are Ineligible  Accounts and shall not be included in the Borrowing  Base.
No Advances shall be made against Inventory.

                  (b) "Ineligible  Accounts" shall mean "Ineligible Accounts" as
defined in the  Modification  Agreement and in addition  shall include  Accounts
which are owing by any account debtor whose accounts,  in face amount,  with the
Borrower exceed twenty-five  percent (25%) of the Borrower's  Eligible Accounts,
but only to the extent of such excess, provided that Accounts which are owing by
any account  debtor that  maintains an investment  grade rating of at least BBB-
from Standard & Poor's and Baa3 from Moody's  Investor  Services shall be capped
at  thirty-five  percent  (35%) and  Accounts  owing by shall be capped at fifty
percent (50%) and provided further that the Lender shall have the right to set a
cap lower than the  applicable  cap for or any other account debtor in the event
that in the Lender's  opinion there has been a material,  adverse  change in the
financial  condition,  results of  operations,  business or properties of or any
other account debtor. The Lender agrees to consider,  at the Borrower's request,
a cap higher than  twenty-five  percent (25%) on a case by case basis,  provided
that the Lender shall have no obligation  whatsoever to agree to such higher cap
and that the Lender's determination shall be conclusive.

                  (c)  In  the  absence  of   manifest   error,   the   Lender's
determination of the amount of the Borrowing Base shall be conclusive.

                                       3
<PAGE>

         9.  Federal  Tax  Refunds.  In the  Second  Amendment  to  Modification
Agreement  dated July 26, 2001, the Borrower  represented to the Lender that the
Borrower  would  receive a federal tax refund  (collectively,  the  "Federal Tax
Refund") by September 16, 2001. In the Third Amendment to Modification Agreement
dated  November  28,  2001,  the  Borrower  represented  to the Lender  that the
Borrower would receive the Federal Tax Refund within sixty (60) days thereafter.
As of the date of this Amendment,  the Borrower has not received the Federal Tax
Refund.  The Borrower  represents to the Lender that the Federal Tax Refund will
be in the aggregate  amount of $1,100,000 and that the Borrower will receive the
Federal Tax Refund  within the next ninety  (90) days.  Within two (2)  Business
Days after receipt of such Federal Tax Refund,  the Borrower  shall deliver such
Federal  Tax  Refund  to the  Lender  (in the form  received  together  with any
necessary  endorsements  to  the  Lender)  to be  applied  against  the  amounts
outstanding  under the Line of Credit in such order as the Lender  determines in
its sole  discretion,  provided  that the  Lender  agrees  to apply  part of the
proceeds of the Federal Tax Refund against the Overadvance in the event that the
Overadvance has not been sooner repaid in accordance with paragraph 10 below. In
the event that the Federal Tax Refund  delivered  by the  Borrower to the Lender
exceeds the amounts then outstanding under the Line of Credit, the Lender agrees
to deposit such excess funds in the  Borrower's  account with the Lender  within
two (2) business days after the Lender's receipt of immediately  available funds
from the Federal Tax Refund.

         10. Additional  Availability Over Borrowing Base. From the date of this
Amendment  until the  earlier of (a) the date the Federal Tax Refund is received
by the Borrower or (b) March 18, 2002, the Lender agrees,  at the request of the
Borrower  and  pursuant  to the  terms  and  conditions  of the  Line of  Credit
Agreement, to make an Advance to the Borrower in the maximum principal amount of
Five  Hundred  Thousand   Dollars   ($500,000)  over  the  Borrowing  Base  (the
"Overadvance").  The  Overadvance  shall bear interest at the rate applicable to
other Advances and the interest  accrued thereon shall be due and payable at the
same time as the interest on other Advances. The Overadvance shall be secured by
the Collateral (as defined in the Line of Credit  Agreement) and shall be repaid
in full on the earlier of (y) two (2) Business Days after the Borrower's receipt
of the  Federal  Tax Refund (in  accordance  with  paragraph  8 above)  from the
proceeds of same or (z) March 18, 2002,  provided  that the Borrower  shall have
until March 19, 2002 to repay the  Overadvance in the event that the Overadvance
is made on March 18, 2002.

         11. Termination for Convenience Monies. On April 11, 2001, the Borrower
filed a claim  against the U.S. Air  Force/U.S.  Government  (collectively,  the
"Government")  relating to the termination  for  convenience  clause in contract
number  N00140-98-C-H189,  which was  terminated  by the  Government on or about
August 31, 1999 (the "Claim"). In the Second Amendment to Modification Agreement
dated July 26, 2001,  the Borrower  represented to the Lender that the Claim was
in the amount of  approximately  , that the Borrower was  currently  negotiating
with the Government  regarding the Claim and that the Borrower believed that the
Claim would result in a settlement by October 31, 2001.  In the Third  Amendment
to Modification  Agreement dated November 28, 2001, the Borrower  represented to
the Lender that the Borrower and the Government were continuing to negotiate and
that the Borrower  believed  that the Claim would result in a settlement  within
sixty (60) days thereafter.  As of the date of this Amendment, the Claim has not
resulted  in a  settlement  and  neither  the  Borrower  nor any other party has
received  any monies or any other  consideration  as a result of the Claim.  The
Borrower  again  represents  to the  Lender  that the Claim is in the  amount of
approximately  and further  represents  that the Borrower and the Government are
continuing  to  negotiate  and that the  Borrower  believes  that the Claim will
result in a settlement  within the next sixty (60) days. Within two (2) Business
Days after receipt of all monies and any other  consideration  received by or on
behalf  of  the  Borrower  as a  result  of  the  Claim  (the  "Termination  for
Convenience  Monies") (or if such  Termination for  Convenience  Monies are paid
over time, within two (2) Business Days after receipt of each such installment),
the Borrower shall deliver such Termination for Convenience Monies to the Lender
(in the form received together with any necessary endorsements to the Lender) to
be applied  against  the  amounts  outstanding  under the Line of Credit in such
order as the Lender  determines  in its sole  discretion.  In the event that the
Termination  for  Convenience  Monies  delivered  by the  Borrower to the Lender
exceeds the amounts then outstanding under the Line of Credit, the Lender agrees
to deposit such excess funds in the  Borrower's  account with the Lender  within
two (2) business days after the Lender's receipt of immediately  available funds
from the Termination for Convenience Monies.

                                       4
<PAGE>

         12. Resolutions of the Borrower/Good  Standing.  Contemporaneously with
the  execution  of this  Amendment,  the  Borrower  shall  deliver to the Lender
resolutions  prepared by the Borrower  evidencing their consent to the execution
of this Amendment and the documents  executed in connection with this Amendment.
Contemporaneously with the execution of this Amendment,  the Borrower shall also
obtain and deliver to the Lender current good standing  certificates  for all of
the jurisdictions in which the Borrower is incorporated or doing business.

         13. Reaffirmation of Representations and Warranties. In order to induce
the Lender to enter into this Amendment, the Borrower represents and warrants to
the Lender that all representations and warranties set forth in the Modification
Agreement are true and correct as of the date of this Amendment.

         14.  Events of Default.  In addition to the Events of Default set forth
in the  Modification  Agreement,  the  occurrence  of one or  more of any of the
following events shall also constitute  Events of Default under the Modification
Agreement:

                  (a) Failure to comply with or perform as and when required, or
to observe,  any of the terms,  conditions or covenants of this Amendment within
five (5) Business Days after written notice from the Lender.

                  (b) If any  representation  or warranty  made herein or in any
report,  certificate,  financial  statement  or other  instrument  furnished  in
connection  with this Amendment,  shall prove to have been  materially  false or
misleading on the date as of which it was made.

                  (c)  Failure to deliver to the Lender the  Federal  Tax Refund
and/or the Termination  for  Convenience  Monies in accordance with paragraphs 9
and 11, respectively, above.

                  (d)  Failure  to repay  the  Overadvance  in  accordance  with
paragraph 10 above.


                                       5
<PAGE>

                  (e) If an  Event of  Default  occurs  under  any note or other
document executed and delivered in connection with any other indebtedness of the
Borrower to the Lender, whether now existing or hereafter incurred.

         15.  Release.  Each Borrower,  for itself and its directors,  officers,
employees,  agents,  members,  predecessors,   successors  and  assigns,  hereby
releases and forever waives and relinquishes all claims,  demands,  obligations,
liabilities and causes of action of whatsoever kind or nature,  whether known or
unknown,  which it or he has,  may have or might  have or  assert  now or in the
future as a result of events  occurring prior to or  contemporaneously  with the
execution of this  Amendment  against the Lender  (which term for the purpose of
this  paragraph  shall  mean both  First  Union  National  Bank and First  Union
Commercial  Corporation)  and/or  any  affiliates  or  entities  related to such
entity, and any of the directors,  officers,  employees,  agents, successors and
assigns, as the case may be, of all such entities,  in connection with, directly
or indirectly,  this  Amendment,  the Loan Documents,  any document  executed in
connection  with  this  Amendment  or any  transactions  contemplated  hereby or
thereby, any prior loan made or credit extended to the Borrower by the Lender or
otherwise   to  any   relationship   between  any   Borrower   and  the  Lender.
Notwithstanding  the  foregoing,  the  Borrower  does not  release  First  Union
National Bank from any claims, if any, the Borrower may have against First Union
National Bank in connection with the handling of check nos.  009786,  009787 and
009788  made by the  Borrower  to  various  payees  in the  aggregate  amount of
approximately  $58,000,  provided that the Borrower  shall not have the right to
claim any consequential or incidental damages.

         16. Further  Assurances and Corrective  Instruments.  The Borrower will
execute,  acknowledge  and  deliver or cause to be  executed,  acknowledged  and
delivered,  from  time  to  time,  such  supplements  hereto  and  such  further
instruments  and  documents,  as  the  Lender  may  require  in  its  reasonable
discretion  to  protect,  perfect  and  enforce  the  Lender's  interest  in any
collateral  security for the Line of Credit or to facilitate the carrying out of
the intentions of the parties to this Amendment.

         17. Costs and Expenses. Upon execution of this Amendment,  the Borrower
shall pay to the Lender in  immediately  available  funds all  actual  costs and
expenses,   including,  without  limitation,  costs  and  expenses  incurred  in
connection  with filing the amendments to the existing  financing  statements as
referenced  above and attorneys'  fees incurred by the Lender in connection with
the  preparation of this Amendment and otherwise in connection  with the Line of
Credit.

         18. Fee. Upon  execution of this  Amendment,  the Borrower shall pay to
the Lender a fee of $5,000 in immediately  available funds. The foregoing fee is
in consideration  of the Lender's  entering into this Amendment and shall not be
deemed a payment under the Line of Credit.

         19. Miscellaneous.

                  (a) Waivers by the  Lender.  Neither any failure nor any delay
on the part of the Lender in  exercising  any right,  power or remedy under this
Amendment or the Loan  Documents,  or under  applicable  law shall  operate as a
waiver  thereof,  nor shall a single or partial  exercise  thereof  preclude any
other or further exercises thereof or the exercise of any other right,  power or
remedy. No waiver or forbearance by the Lender as to any Borrower shall waive or
release  any rights or claims  which the Lender may now have or  hereafter  have
against any other person,  firm or  individual.  The Lender  reserves all rights
except to the extent expressly provided herein.


                                       6
<PAGE>

                  (b) Modifications.  No modification or waiver of any provision
of this  Amendment  or the Loan  Documents,  and no consent by the Lender to any
departure by the Borrower  therefrom shall in any event be effective  unless the
modification,  waiver or consent shall be in writing. Any such waiver or consent
shall be effective  only in the  specific  instance or for the purpose for which
given.  No notice to, or demand upon the Borrower in any case shall  entitle the
Borrower to any other or further notice or demand in the same,  similar or other
circumstances.

                  (c) No  Novation.  Nothing set forth in this  Amendment  shall
cause a novation nor shall it  extinguish,  terminate,  or impair the Borrower's
obligations  under the Loan Documents,  as amended by this Amendment,  or affect
the priority of the lien of the Lender established by the Loan Documents.

                  (d)  Applicable  Law.  The   performance,   construction   and
enforcement of this  Amendment and the Loan  Documents  shall be governed by the
laws of the Commonwealth of Virginia.

                  (e)  Survival;   Successors   and  Assigns.   All   covenants,
agreements, representations and warranties made herein and in the Loan Documents
shall  continue in full force and effect.  Whenever in this Amendment any of the
parties is referred to, such reference shall be deemed to include the successors
and  assigns of such  party.  All  covenants,  agreements,  representations  and
warranties by or on behalf of the Borrower which are contained in this Amendment
and the  Loan  Documents  shall  inure  to the  benefit  of the  Lender  and its
successors and assigns.

                  (f) Severability.  If any term, provision or condition, or any
part thereof,  of this Amendment or the Loan  Documents  shall for any reason be
found or held to be invalid or unenforceable by any court or governmental agency
of competent  jurisdiction,  such invalidity or enforceability  shall not affect
the remainder of such term,  provision or condition or any other term, provision
or condition,  and this  Amendment and the Loan  Documents  shall survive and be
construed as if such invalid or unenforceable  term,  provision or condition had
not been contained therein.

                  (g)  Merger  and  Integration.  This  Amendment  and the  Loan
Documents contain the entire agreement of the parties hereto with respect to the
matters  covered  and  the  transactions   contemplated  hereby,  and  no  other
agreement,  statement  or promise  made by any party  hereto,  or any  employee,
officer, agent or attorney of any party hereto, shall be valid or binding.


                                       7
<PAGE>

                  (h) Headings.  The headings and  subheadings  contained in the
titling of this Amendment are intended to be used for convenience only and shall
not be used or deemed to limit or diminish any of the provisions hereof.

                  (i) Gender,  Singular.  All references made (a) in the neuter,
masculine  or  feminine  gender  shall be  deemed  to have been made in all such
genders,  and (b) in the singular or plural  number shall be deemed to have been
made, respectively, in the plural or singular number as well.

                  (j) Time of Essence. Time is of the essence of this Amendment.

         20. No Modification of Loan Documents.  Except as expressly modified by
this Amendment,  the Loan Documents shall remain unchanged and shall be ratified
and confirmed to be and remain in full force and effect, without defense, offset
or counterclaim.

         21. Counterparts.  This Amendment may be executed simultaneously in any
number of  counterparts,  each of which shall be deemed an original,  but all of
which shall  constitute  one and the same  agreement.  Copies of this  Amendment
which have been executed and which are delivered by facsimile  will be valid and
effective for all purposes.

         22. Closing.  Closing on this Agreement must occur on or before January
18, 2002.

         IN WITNESS  WHEREOF,  the parties  hereto have executed or caused to be
executed, this Amendment under seal as of the date first written above.

WITNESS/ATTEST:                    BORROWERS:


                                   STEELCLOUD, INC.,
                                   a Virginia corporation


                                   By:  /s/ Edward Spear
----------------------------            ---------------------------------------
                                        Edward M. Spear
                                        President


                                   DUNN COMPUTER CORPORATION,
                                   a Delaware corporation


                                   By:  /s/ Edward Spear
----------------------------            ---------------------------------------
                                        Edward M. Spear
                                        President

                                       8
<PAGE>

                                   INTERNATIONAL DATA PRODUCTS,
                                   CORP.


                                   By:  /s/ Edward Spear
----------------------------            ---------------------------------------
                                        Edward M. Spear
                                        President


                                   STMS, INC.


                                   By:  /s/ Edward Spear
----------------------------            ---------------------------------------
                                        Edward M. Spear
                                        President


                                   PUERTO RICO INDUSTRIAL
                                   MANUFACTURING OPERATIONS
                                   ACQUISITION, CORP.


                                   By:  /s/ Edward Spear
----------------------------            ---------------------------------------
                                        Edward M. Spear
                                        President


                                   DUNN COMPUTER OPERATING
                                   COMPANY


                                   By:  /s/ Edward Spear
----------------------------            ---------------------------------------
                                        Edward M. Spear
                                        President


                                   LENDER:

                                   FIRST UNION NATIONAL BANK


                                   By:  /s/ Abigail M. Matia
----------------------------            ---------------------------------------
                                        Abigail M. Matia
                                        Vice President


                                       9