AMENDMENT NO. 1 TO
                           LOAN AND SECURITY AGREEMENT


         THIS AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT ("Amendment") is
dated as of August 7, 2000 and is entered into by and between EFTC Corporation,
and RM Electronics, Inc. (collectively the "Borrower"), the various financial
institutions that are or may from time to time become parties to the Agreement
referred to below (collectively, the "Lenders" and, individually a "Lender") and
Bank of America, N.A., as agent (in such capacity, together with its successors
and assignees in such capacity, the "Agent") and the sole lead arranger for the
Lenders. All capitalized terms used herein but not otherwise defined shall have
the meanings ascribed to them in the Agreement (as hereinafter defined).

                                   WITNESSETH

         WHEREAS, the Borrower, the Lenders and the Agent have entered into that
certain Loan and Security Agreement dated as of March 30, 2000, as amended and
supplemented (the "Agreement"); and

         WHEREAS, the Borrower desires to amend the Agreement and the Agent and
the Lenders are willing to do so, subject to the terms and conditions stated
herein;

         NOW, THEREFORE, in consideration of the premises herein contained and
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Agent, the Borrower and Lenders hereby agree as
follows:

        Section 1.      Amendment to the Agreement.  The Agent, Lenders and
Borrower agree that the Agreement shall be amended as follows:


                A.      Amendment to Section 1. The definitions of "Borrowing
          Base",  "EBITDA",  "Fixed Charges" and "Inventory  Limit" contained in
          Section 1 of the Agreement are amended to read as follows:

                           "`Borrowing Base' means, at any time, an amount equal
                  to (a) the lesser of (i) the Maximum Revolver Amount or (ii)
                  the sum of (A) (1) the Accounts Advance Rate times (2) the
                  difference between (y) the Net Amount of Eligible Accounts
                  less (z) the Honeywell Reserve; plus (B) the lesser of (1) the
                  Inventory Limit or (2) the sum of (x) the Inventory Advance
                  Rate times the value of Eligible Inventory consisting of raw
                  materials and finished goods plus (y) 30% of the value of
                  Eligible Inventory consisting of work in process minus (z) the
                  Availability Reserve; minus (b) the sum of (i) reserves for
                  accrued and unpaid interest on the Obligations, (ii) the
                  Environmental Compliance Reserve, (iii) the Bank Product
                  Reserves, (iv) the Rent Reserve, and (v) all other reserves
                  which the Agent deems necessary in the exercise of its
                  reasonable credit judgment to maintain with respect to any
                  Borrower's account, including reserves for any amount which


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                  the Agent or any Lender may be obligated to pay in the future
                  for the account of any Borrower.

                           `EBITDA' means, for any period, the sum of:

                           (1)      the Adjusted Net Earnings From Operations of
                  the Parent for such period; plus (or minus)

                           (2)      to the extent that any of the items referred
                  to in any of clauses (i) through (v) below are  deducted (or
                  added) in calculating such net income (or net loss):

                                    (i)     Interest  Expense of the Parent (to
                  the extent it exceeds  interest  income of the  Parent)  for
                  such period;

                                    (ii)    income tax expense of the Parent
                  with respect to operations for such period;

                                    (iii)   the amount of all depreciation and
                  amortization of the Parent for such period;

                                    (iv)    the amount of any non-recurring
                  charges  incurred  in Fiscal  Year 2000 in  respect  of: (x)
                  transaction  costs,  (y) moving the `NEO'  facility  (not to
                  exceed  $500,000),  and (z)  consulting  fees (not to exceed
                  $3,500,000)  provided,  however,  the sum of all transaction
                  costs that have been  incurred in the  Parent's  Fiscal Year
                  2000, cannot exceed $7,000,000; and

                                    (v) the amount of any non-recurring charges
                  incurred in the second, third, and fourth fiscal quarters of
                  Fiscal Year 2000 and the first and second quarters of Fiscal
                  Year 2001 in respect of: (A) operating losses and other
                  closure costs associated with the Parent's Fort Lauderdale,
                  Florida facility, moving the Southwest Mil-Spec Manufacturing
                  Facility from Tucson to Phoenix and moving the Parent's
                  headquarters facility from Denver to Phoenix (not to exceed
                  $1,900,000 in actual cash expenses for moving, relocation,
                  headhunter fees, severance, retention, signing bonuses and
                  other expenses associated with relocation), (B) fees and costs
                  associated with the hiring of new management and reimbursement
                  of direct costs incurred by Thayer and Blum on behalf of the
                  Borrowers (not to exceed $1,800,000), (C) moving the "NEO"
                  facility (not to exceed $1,500,000 in actual costs and
                  expenses in addition to those charges itemized in subsection
                  (iv) above), (D) write-down of property plant and equipment,
                  accounts receivable and inventory, as well as any other
                  non-cash charges associated with, among other things, the
                  relocations (not to exceed $8,500,000, in non-cash charges),
                  and (E) costs associated with early termination of Hewitson
                  consulting agreements (not to exceed $800,000 in addition to
                  other consulting fees itemized in subsection (iv) above),


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                  provided, however, that none of these cash and noncash items
                  were contemplated or accounted for in the Latest Projections
                  delivered to the Agent on or prior to the Closing Date and
                  provided further that the sum of all such cash transactions
                  shall not exceed $6,000,000 and that the sum of all non-cash
                  transactions shall not exceed $8,500,000.

                           'Fixed Charges' means, for any period, the sum of (i)
                  the aggregate amount of cash required to be paid by the
                  Borrowers in respect of Interest Expense for such period, (ii)
                  the aggregate amount of cash required to be paid by the
                  Borrowers in respect of income taxes for such period, (iii)
                  all non-financed Capital Expenditures of the Borrowers made in
                  such period, excluding the first $7,400,000 of Capital
                  Expenditures incurred since the Closing Date, and (iv) all
                  payments made in such period on account of: (x) the principal
                  amount of the Borrowers' Debt for Borrowed Money (other than
                  the Obligations), (y) Distributions, if any, allowed under
                  Section 9.10, and (z) Restricted Investments, if allowed,
                  under Section 9.10.

                           `Inventory Limit' means $32,500,000 until July 1,
                  2001 and at all times thereafter means the lesser of (a)
                  $22,500,000 or (b) the outstanding amount of Loans advanced at
                  such time in respect of Eligible Accounts."

                  B.    Additions to Section 1.  Section 1 of the Agreement is
               amended to add the following definition:


                           "`Inventory Advance Rate' means fifty percent (50%)
                  which percent shall be reduced by one percentage point on
                  November 1, 2000 and continuing to be further reduced by one
                  percentage point on the first day of each month thereafter
                  until the Inventory Advance Rate is forty-five percent (45%),
                  provided, however, the Inventory Advance Rate shall be fifty
                  percent (50%) beginning as of July 1, 2001 and at all times
                  thereafter."

                C.      Amendment to Section 9.  Sections 9.24 and 9.25 of the
               Agreement  are  amended  in their  entirety  to read as  follows:


                           "9.24 Operating Lease Obligations. Neither any
                  Borrower nor any of its Subsidiaries shall enter into, or
                  suffer to exist, any lease of real or personal property as
                  lessee or sublessee (other than a Capital Lease), if, after
                  giving effect thereto, the aggregate amount of Rentals (as
                  hereinafter defined) payable by the Borrowers and their
                  Subsidiaries on a consolidated basis in any Fiscal Year in
                  respect of such lease and all other such leases would exceed
                  $18,000,000 (such amount being referred to herein as
                  `Permitted Rentals'). The term `Rentals' means all payments
                  due from the lessee or sublessee under a lease, including,
                  without limitation, basic rent, percentage rent, property
                  taxes, utility or maintenance costs, and insurance premiums.

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                           9.25 Capital Expenditures. To the extent that no
                  other term of this Agreement would be breached thereby, the
                  Parent shall be entitled to make Capital Expenditures: (a) for
                  the acquisition of Equipment and related software to the
                  extent necessary to conduct its business, (b) up to $7,400,000
                  of Capital Expenditures for any purpose necessary to conduct
                  its business, and (c) up to an additional $3,000,000 of
                  Capital Expenditures not covered by the foregoing clause (b)
                  for the acquisition of Real Estate to be used in its business:
                  provided, however, that in connection with acquiring any such
                  Real Estate that is not financed with purchase money Debt, the
                  Parent shall provide the Agent with a deed of trust, mortgage
                  or equivalent documentation providing the Agent with a Lien on
                  such Real Estate, and such Real Estate shall be Collateral
                  hereunder."

        Section 2. Consent. Notwithstanding any terms of the Agreement to the
contrary,   the  Agent  and  the  Lenders  consent  to  the  Borrower  obtaining
$14,000,000, net of expenses, in proceeds from the issuance of exchange notes in
accordance  with  that  certain  First  Amendment  to  the  Securities  Purchase
Agreement,  dated March 30, 2000,  by and between the Purchaser and the Company,
dated as of July 12, 2000, between Thayer-BLM Funding,  LLC and EFTC Corporation
and the Amended and Restated Annex I thereto (collectively, the "July Securities
Purchase Agreement".)

        Section 3.  Conditions.  The  effectiveness  of this  Amendment  is
subject to the satisfaction of the following conditions precedent:

                A.  Amendment.  Fully executed copies of this Amendment signed
        by the Borrower shall be delivered to Agent.

                B.  Resolution.  A  Certificate  executed by the  Secretary or
        Assistant Secretary of Borrower certifying that the resolutions
        adopted by the  Borrower's  Board of Directors in connection  with the
        Agreement, on or about March 30, 2000, remain in full force and effect
        and have not been modified or rescinded since their adoption.

                C.  Receipt of Proceeds.  Receipt by the Borrower of $14,000,000
        in proceeds, net of expenses, from the issuance of the exchange notes
        in connection with the July Securities Purchase Agreement.

                D.  Other  Documents.  Borrower  shall have executed and
        delivered to Agent such other  documents  and  instruments  as Agent may
        reasonably require.

Agent agrees to execute and deliver a Certificate to Borrower within ten days of
satisfaction of the conditions contained in this Amendment, certifying the
effective date of the Amendment.

        Section 4.  Miscellaneous.


                A.  Survival of Representations and Warranties. All
        representations and warranties made in the Agreement or any other
        document or documents relating thereto, including, without limitation,
        any Loan Document  furnished in connection with this Amendment,  shall


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        survive the  execution  and delivery of this  Amendment  and the other
        Loan  Documents,  and no  investigation  by  Agent or  Lenders  or any
        closing shall affect the  representations  and warranties or the right
        of Agent or Lender to rely thereon.

                B. Reference to Agreement. The Agreement, each of the Loan
        Documents, and any and all other agreements, documents or instruments
        now or hereafter  executed and delivered pursuant to the terms hereof,
        or  pursuant  to the terms of the  Agreement  as amended  hereby,  are
        hereby  amended so that any reference  therein to the Agreement  shall
        mean a reference to the Agreement as amended hereby.

                C.  Agreement Remains in Effect. The Agreement and the Loan
         Documents, as amended hereby, remain in full force and effect and the
         Borrower ratifies and confirms its agreements and covenants  contained
         therein.  The Borrower  hereby  confirms that,  after giving effect to
         this Amendment, no Event of Default or Default exists as of such date.

                D.  Severability.  Any  provision of this  Amendment  held by a
         court of  competent  jurisdiction  to be invalid or  unenforceable
         shall not impair or invalidate  the remainder of this  Amendment and
         the effect thereof shall be confined to the provision so held to be
         invalid or unenforceable.

                E. APPLICABLE LAW.  THIS AMENDMENT SHALL BE GOVERNED BY AND
         CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

                F.  Successors  and Assigns.  This  Amendment is binding upon
         and shall inure to the benefit of the Lenders and Borrower and their
         respective  successors  and  assigns;  provided,  however,  that
         Borrower  may not  assign or  transfer  any of its rights or
         obligations hereunder without the prior written consent of the Lenders.

                G.  Counterparts.  This Amendment may be executed in one or more
         counterparts,  each of which when so executed shall be deemed to
         be an original, but all of which when taken together shall constitute
         one and the same instrument.

                H.  Headings.  The headings,  captions and  arrangements  used
         in this Amendment are for convenience only and shall not affect the
         interpretation of this Amendment.

                I.  Documentation  Fee. The Borrower shall pay to the Agent a
         documentation  fee in the amount of $2,500 for the Amendment,  which
         fee may be charged to the Borrower's Loan Account.

                J.  Amendment Fee. The Borrower  shall pay to the Agent,  for
         the ratable  benefit of the Lenders,  an amendment fee in the amount
         of $75,000 on the execution of the Amendment, which amendment fee may
         be charged to the Borrower's Loan Account.

                K.  NO ORAL  AGREEMENTS.  THIS  AMENDMENT,  TOGETHER  WITH THE
         OTHER LOAN  DOCUMENTS AS WRITTEN,  REPRESENTS  THE FINAL  AGREEMENT


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         BETWEEN LENDERS AND BORROWER AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
         PRIOR,  CONTEMPORANEOUS  OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
         THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN LENDERS AND BORROWER.

         IN WITNESS WHEREOF, the parties have executed this Amendment under seal
on the date first written above.

                                EFTC CORPORATION

                                By: /s/_________________________

                                Name: __________________________

                                Title: _________________________



                                RM ELECTRONICS, INC.

                                By: /s/_________________________

                                Name: __________________________

                                Title: _________________________



                       SIGNATURES CONTINUED ON NEXT PAGE]



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                                 BANK OF AMERICA, N.A.
                                          (as Agent)

                                 By: /s/_________________________

                                 Name: __________________________

                                 Title: _________________________


                                 BANK OF AMERICA, N.A.
                                         (as Lender)

                                 By: ____________________________

                                 Name: __________________________

                                 Title: _________________________



                                 PNC BANK, NATIONAL ASSOCIATION
                                         (as Lender)

                                 By: ____________________________

                                 Name: __________________________

                                 Title: _________________________


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