Document:

<PAGE>   1
                                                                   EXHIBIT 10.23

                      SECOND AMENDMENT TO CREDIT AGREEMENT

     This Second Amendment to Credit Agreement (this "Second Amendment") is
executed as of the 9th day of April, 2001 (the "Effective Date"), by and among
HWG LLC, a Delaware limited liability company ("Borrower"), The Hallwood  Group
Incorporated, a Delaware corporation ("Parent"), First Bank & Trust,
successor-in-interest to First Bank Texas, N.A., as Administrative Agent
("Administrative Agent") and the financial institutions parties hereto as
Lenders (individually a "Lender" and collectively "Lenders").

                                   WITNESSETH:

     WHEREAS, Borrower, Parent, Administrative Agent and Lenders are parties to
that certain Credit Agreement dated as of December 21, 1999, as amended by that
certain First Amendment to Credit Agreement dated as of September 11, 2000 (as
amended, the "Credit Agreement") (unless otherwise defined herein, all terms
used herein with their initial letter capitalized shall have the meaning given
such terms in the Credit Agreement); and

     WHEREAS, pursuant to the Credit Agreement, Lenders have made the Term Loan
to Borrower; and

     WHEREAS, Borrower and Parent have requested that Lenders amend certain
terms of the Credit Agreement in certain respects; and

     WHEREAS, subject to the terms and conditions herein contained, Lenders
have agreed to Borrower's and Parent's request.

     NOW THEREFORE, for and in consideration of the mutual covenants and
agreements herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged and confessed,
Borrower, Parent, Administrative Agent and each Lender hereby agree as follow:

     Section 1. Amendments. In reliance on the representations, warranties,
covenants and agreements contained in this Second Amendment, and subject to the
terms and conditions contained herein, including, without limitation, the
satisfaction of the conditions precedent set forth in Section 2 hereof, the
Credit Agreement is hereby amended, effective as of the Effective Date, in the
manner provided in this Section 1.

     1.1 Amendment to Definitions. The definitions of "Administrative Agent,"
"Debt Service Coverage Ratio," "EBITDA," "Financing Documents," "First Bank" and
"Security Instruments" contained in Section 1.1 of the Credit Agreement shall
be amended to read in full as follows:

          "Administrative Agent" shall mean First Bank & Trust,
     successor-in-interest to First Bank Texas, N.A., acting in the manner and
     to the extent described in Article 9.

                                       1
<PAGE>   2
                  "Debt Service Coverage Ratio" shall mean, as to Parent and its
         Subsidiaries on a consolidated basis, determined for the Fiscal Quarter
         ending on the most recent Quarterly Date as of the date of
         determination, the ratio of (a) the sum of (1) EBITDA plus (2) the
         applicable Cash Cushion Amount (if any) available for such Fiscal
         Quarter plus (3) all cash proceeds of loans made to Parent or its
         Subsidiaries by a shareholder of Parent (or an Affiliate of such
         shareholder) if all repayments of principal and interest with respect
         to such loans are subordinated to the prior payment in full of all
         Lender Indebtedness on terms acceptable to Administrative Agent and
         Lenders in their sole discretion plus (4) distributions actually
         received by Borrower from HRY during such Fiscal Quarter with respect
         to HRY's limited partnership interests and general partnership
         interests to (b) the sum of (1) scheduled principal payments on Funded
         Indebtedness plus (2) Interest Expense. The Debt Service Coverage Ratio
         shall be calculated substantially as set forth in the worksheet
         attached as Schedule 1 hereto.

                  "EBITDA" shall mean, as to any Person, for any period, without
         duplication, an amount equal to net income determined in accordance
         with GAAP (provided, that, for purposes of determining net income to
         derive Net Cash Flow for any period, leasing commissions shall be
         included in such determination when such commissions are actually
         received by such Person), plus, to the extent deducted from net income,
         Interest Expense, depreciation, other non-cash expenses, and income tax
         expenses; provided, that, (a) extraordinary gains or losses for any
         such period, including, but not limited to, gains or losses on the
         disposition of assets, and (b) the proceeds or amounts described in
         clauses (a)(2), (a)(3) and (a)(4) of the definition of Debt Service
         Coverage Ratio, shall not be included in EBITDA.

                  "Financing Documents" shall mean the Agreement, the Term
         Notes, the Security Instruments, the Cash Collateral Account Agreement,
         the First Amendment, the Second Amendment, and the other documents,
         instruments or agreements described in Article 3, together with any
         other document, instrument or agreement now or hereafter entered into
         in connection with the Term Loans, the Lender Indebtedness or the
         Collateral, as such documents, instruments or agreements may be
         amended, modified or supplemented from time to time.

                  "First Bank" shall mean First Bank & Trust,
         successor-in-interest to First Bank Texas, N.A., in its individual
         capacity and not as Administrative Agent.

                  "Security Instruments" shall mean the Pledge Agreements, the
         Cash Collateral Pledge Agreement, the Facility Guaranty, the Collateral
         Assignment of Intercompany Note and any and all other agreements or
         instruments now or hereafter executed and delivered by any Credit Party
         or any other Person as security for the payment or performance of the
         Lender Indebtedness, as any of the foregoing may be amended, modified
         or supplemented.

         1.2. "Additional Definitions". Section 1.1 of the Credit Agreement
shall be amended to add the following definitions thereto in alphabetical order:

                                       2
<PAGE>   3
          "Cash Collateral Account Agreement" shall mean the Cash Collateral
     Account Agreement executed by Parent, Borrower and Administrative Agent
     (for the benefit of Lenders), substantially in the form attached as Exhibit
     A to the Second Amendment, as modified, renewed, supplemented or amended
     from time to time, pursuant to which Parent will deposit the Collateral in
     the Cash Collateral Account (as each such term is defined therein).

          "Cash Cushion Amount" shall mean an aggregate amount of up to
     $1,500,000 evidencing the Shareholder Subordinated Advance, as such amount
     shall automatically reduce upon application of, and by an amount equal to,
     the proceeds of the Shareholder Subordinated Advance utilized by Borrower
     to satisfy the requirements of Section 7.1(b) of this Agreement for any of
     the four (4) Fiscal Quarters ending March 31, 2001, June 30, 2001,
     September 30, 2001 and December 31, 2001. By way of example only, in the
     event $250,000 of the Cash Cushion Amount is utilized by Borrower to
     satisfy the Debt Service Coverage Ratio for the Fiscal Quarter ending March
     31, 2001, such Cash Cushion Amount shall automatically be reduced to
     $1,250,000, which reduced amount will then be available (subject to further
     reduction) for utilization in the Fiscal Quarters ending June 30, 2001,
     September 30, 2001 and December 31, 2001 for satisfaction of the Debt
     Service Coverage Ratio for such Fiscal Quarters. Notwithstanding anything
     to the contrary contained herein, in no event will the aggregate Cash
     Cushion Amount exceed $1,500,000.

          "First Amendment" shall mean that certain First Amendment to Credit
     Agreement dated as of September 11, 2000, among Borrower, Parent,
     Administrative Agent and Lenders.

          "Second Amendment" shall mean that certain Second Amendment to Credit
     Agreement dated as of April 9, 2001, among Borrower, Parent, Administrative
     Agent and Lenders.

          "Shareholder Subordinated Advance" shall mean a one-time loan from
     Anthony Gumbineer to Borrower in an amount equal to $1,500,000 pursuant to,
     in accordance with, and to the extent permitted by Section 7.6(f).

     1.3. Amendment to Debt Service Coverage Ratio Covenant. Section 7.1(b) of
the Credit Agreement shall be amended to read in full as follows:

          "(b) Permit the Debt Service Coverage Ratio at the end of any Fiscal
     Quarter, commencing with the Fiscal Quarter ending March 31, 2001, to be
     less than 1.30 to 1.00"

     Section 2. Conditions Precedent. The effectiveness of the amendments to
the Credit Agreement contained in Section 1 hereof shall be effective only
upon, and are conditioned upon, the satisfaction of each of the following
conditions precedent:

                                       3
<PAGE>   4
IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be
duly executed by their respective authorized officers on the date and year
first above written.

                               BORROWER:

                               HWG LLC

                               By: /s/ WILLIAM L. GUZZETI
                                   ---------------------------------------------
                               Name: William L. Guzzeti
                                     -------------------------------------------
                               Title: President
                                     -------------------------------------------

                               PARENT:

                               THE HALLWOOD GROUP
                               INCORPORATED

                               By: /s/ MELVIN J. MELLE
                                  ----------------------------------------------
                               Name: Melvin J. Melle
                                     -------------------------------------------
                               Title: Vice President
                                      ------------------------------------------

                                ADMINISTRATIVE AGENT AND
                                LENDERS:

                                FIRST BANK & TRUST
                                successor-in-interest to First Bank Texas, N.A.,
                                individually and as Administrative Agent

                                By: /s/ ALAN COTT
                                   ---------------------------------------------
                                   Alan Cott,
                                   Senior Vice President

                                [Signature Page]<PAGE>   1

                                                                   EXHIBIT 10.48

                      FIRST AMENDMENT TO SECURITY AGREEMENT

         THIS FIRST AMENDMENT TO SECURITY AGREEMENT (this "Amendment"),
effective as of the 28th day of February, 2001, is by and between COLORADO
MEDTECH, INC. ("Medtech"), CIVCO MEDICAL INSTRUMENTS CO. INC. ("Civco"), BIOMED
Y2K, INC. ("Biomed"), CMED CATHETER AND DISPOSABLES TECHNOLOGY, INC. "CMed")
(Medtech, Civco, Biomed and CMed shall be collectively referred to herein as
"Debtor"), and KEYBANK NATIONAL ASSOCIATION, a national banking association
("Secured Party").

                                    RECITALS:

         A. On December 21, 2000, Debtor, as Borrower, and Secured Party, as
Lender, entered into that certain Credit Agreement (the "Credit Agreement")
pursuant to which Lender agreed to extend credit to Debtor, in an aggregate
amended principal amount at any time outstanding not in excess of $15,000,000
(the "Loan"), and secured by, among other items, a Security Agreement dated as
of December 21, 2000 (the "Security Agreement") executed by Debtor and Secured
party.

         B. Debtor and Secured Party desire to further amend the Security
Agreement under the terms and conditions set forth herein.

                                   AGREEMENT:

         NOW, THEREFORE, in consideration of the foregoing premises and other
good and valuable consideration, the receipt, adequacy and sufficiency of which
are hereby acknowledged, the parties hereto covenant and agree as follows:

         1. SECURITY AGREEMENT AMENDMENTS. The Security Agreement is hereby
amended as follows:

                  (a) Paragraph 4(b) of the Security Agreement shall be deleted
         in its entirety and replaced with the following:

                           "(b) All deposit accounts, reserves, deferred
                  payments, refunds, accounts receivable, notes, and chattel
                  paper; all books, records and other documentation relating to
                  the foregoing including, without limitation, all listing and
                  compilations of such accounts and all original documents
                  creating, evidencing, securing or guaranteeing the
                  indebtedness under any such accounts such as contracts,
                  orders, invoices, receipts, security documents and
                  guarantees;".

         2. DOCUMENT RATIFICATION. Subject to the amendment set forth in
Paragraph 1 above, all of the terms and conditions contained in the Security
Agreement, shall remain unmodified and in full force and effect.

<PAGE>   2

         3. RELEASE. Except as specifically set forth herein, the execution of
this Amendment by Secured Party does not and shall not constitute a waiver of
any rights or remedies to which Secured Party is entitled, nor shall the same
constitute a waiver of any default now existing or which may occur in the future
with respect to the Loan Documents.

         4. REPRESENTATIONS OF BORROWER. Debtor hereby confirms that, as of the
date hereof, (i) Debtor is in compliance with each of the representations,
warranties and covenants of Borrower set forth in the Security Agreement, (ii)
no Event of Default exists under the Security Agreement and (iii) no fact or
condition exists, which with the passage of time and/or giving of notice, would
constitute an Event of Default under the Security Agreement.

         5. CONTROLLING LAW. The terms and provisions of this Amendment shall be
construed in accordance with and governed by the laws of the State of Colorado.

         6. BINDING EFFECT. This Amendment shall be binding upon and inure to
the benefit of the parties hereto, their successors and assigns.

         7. CAPTIONS. The paragraph captions utilized herein are in no way
intended to interpret or limit the terms and conditions hereof, rather, they are
intended for purposes of convenience only.

         8. COUNTERPARTS. This Amendment may be executed in any number of
counterparts, each of which shall be effective only upon delivery and thereafter
shall be deemed an original, and all of which shall be taken to be one and the
same instrument, for the same effect as if all parties hereto had signed the
same signature page. Any signature page of this Amendment may be detached from
any counterpart of this Amendment without impairing the legal effect of any
signatures thereon and may be attached to another counterpart of this Amendment
identical in form hereto but having attached to it one or more additional
signature pages.

         9. DEFINED TERMS. Capitalized terms not defined herein shall have the
same meaning as set forth in the Credit Agreement and/or the Security Agreement.

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the day and year first above written.

                                       COLORADO MEDTECH, INC., a Colorado
                                       corporation

                                       By: /s/ Gregory A. Gould
                                           --------------------
                                       Name: Gregory A. Gould
                                       Title: Chief Financial Officer

<PAGE>   3

                                       CIVCO MEDICAL INSTRUMENTS CO., INC., an
                                       Iowa corporation

                                       By: /s/ Charles R. Klasson, Jr.
                                           ---------------------------
                                       Name: Charles R. Klasson, Jr.
                                       Title: President

                                       BIOMED Y2K, INC., a Colorado corporation

                                       By: /s/ Stephen K. Onody
                                           --------------------
                                       Name: Stephen K. Onody
                                       Title: President

                                       CMED CATHETER AND DISPOSABLES
                                       TECHNOLOGY, INC., a Minnesota corporation

                                       By: /s/ Stephen K. Onody
                                           --------------------
                                       Name: Stephen K. Onody
                                       Title: President

                                       LENDER:

                                       KEYBANK NATIONAL ASSOCIATION

                                       By: /s/ Michelle K. Bushey
                                           ----------------------
                                       Name: Michelle K. Bushey
                                       Its: Vice President

<PAGE>   4

                       FIRST AMENDMENT TO CREDIT AGREEMENT

         THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this "First Amendment"),
effective as of the 30th day of April, 2001, is by and among COLORADO MEDTECH,
INC. ("Medtech"), CIVCO MEDICAL INSTRUMENTS CO. INC. ("Civco"), BIOMED Y2K, INC.
("Biomed"), CMED CATHETER AND DISPOSABLES TECHNOLOGY, INC. "CMed") (Medtech,
Civco, Biomed and CMed shall be collectively referred to herein as "Borrower"),
and KEYBANK NATIONAL ASSOCIATION, a national banking association (the "Lender
").

                                    RECITALS:

         A. On December 21, 2000, Borrower and Lender entered into that certain
Credit Agreement (the "Credit Agreement") pursuant to which Lender agreed to
extend credit to Borrower, on a revolving basis, in an aggregate principal
amount at any time outstanding not in excess of $15,000,000 (the "Loan"), as
evidenced by that certain Promissory Note dated December 21, 2000 (the "Note"),
and secured by, among other items, a Security Agreement dated December 21, 2000,
as amended by First Amendment to Security Agreement dated February 28, 2001 (the
"Security Agreement") executed by Borrower and Lender.

         B. Upon the terms and conditions set forth herein, Lender and Borrower
desire to amend the Credit Agreement by documenting Lender's approval of the
sale of CMed, removing CMed as a Borrower thereunder, releasing CMed from the
Note and Security Agreement, and filing a UCC-3 to release the CMed assets from
the UCC-1 Financing Statement filed by the Lender.

         C. All references herein to the Loan Documents shall refer collectively
to the Credit Agreement, Note, Security Agreement, and any other instruments or
documents evidencing, securing or relating to the Loan, as amended by this First
Amendment.

                                   AGREEMENT:

         NOW, THEREFORE, in consideration of the foregoing premises and other
good and valuable consideration, the receipt, adequacy and sufficiency of which
are hereby acknowledged, the parties hereto covenant and agree as follows:

         1. LENDER'S APPROVAL OF SALE OF Cmed (a wholly owned Subsidiary of
Medtech). Pursuant to Section 6.5 of the Credit Agreement, Lender hereby
consents to the sale of CMed by Medtech.

         2. MODIFICATION OF DEFINITION OF "BORROWER". The term "Borrower" as
used in the Loan Documents is hereby modified to delete all references to CMed,
and accordingly is hereby amended to collectively refer to, on a joint and
several basis, Medtech, Civco and Biomed.

         3. RELEASE FROM NOTE. Lender hereby releases CMed from any and all
obligations as a Borrower under the Note.

<PAGE>   5

         4. RELEASE FROM SECURITY AGREEMENT. Lender hereby releases CMed from
any and all obligations as a Debtor under the Security Agreement, and agrees to
execute a UCC-3 terminating that certain UCC-1 Financing Statement filed by
Lender with the Minnesota Secretary of State on March 9, 2001.

         5. LOAN DOCUMENT AMENDMENTS. Each of the Loan Documents is hereby
amended to conform to the amendments to the Credit Agreement set forth in
Paragraphs 1, 2, 3 and 4 above.

         6. DOCUMENT RATIFICATION. Subject to the amendments set forth in
Paragraphs 1, 2, 3 and 4 above, all of the terms and conditions contained in the
Credit Agreement and the other Loan Documents, shall remain unmodified and in
full force and effect.

         7. RELEASE. Except as specifically set forth herein, the execution of
this First Amendment by Lender does not and shall not constitute a waiver of any
rights or remedies to which Lender is entitled pursuant to the Loan Documents,
nor shall the same constitute a waiver of any default now existing or which may
occur in the future with respect to the Loan Documents. Borrower hereby agrees
that Lender has fully performed its obligations pursuant to the Loan Documents
through the date hereof.

         8. REPRESENTATIONS, WARRANTIES AND COVENANTS OF BORROWER. Borrower
represents, warrants and covenants to Lender:

                  (a) No default or event of default under any of the Loan
         Documents as modified herein, nor any event, that, with the giving of
         notice or the passage of time or both, would be a default or an event
         of default under the Loan Documents as modified herein has occurred and
         is continuing.

                  (b) There has been no material adverse change in the financial
         condition of Borrower or any other person whose financial statement has
         been delivered to Lender in connection with the Loan from the most
         recent financial statement received by Lender.

                  (c) Each and all representations and warranties of Borrower in
         the Loan Documents, are accurate on the date hereof.

                  (d) Borrower has no claims, counterclaims, defense, or
         set-offs with respect to the Loan or the Loan Documents as modified
         herein.

                  (e) The Loan Documents as modified herein are the legal,
         valid, and binding obligation of Borrower, enforceable against Borrower
         in accordance with their terms.

                  (f) Borrower shall execute, deliver, and provide to Lender
         such additional agreements, documents, and instruments as reasonably
         required by Lender to effectuate the intent of this First Amendment.

<PAGE>   6

         9. CONTROLLING LAW. The terms and provisions of this First Amendment
shall be construed in accordance with and governed by the laws of the State of
Colorado.

         10. BINDING EFFECT. This First Amendment shall be binding upon and
inure to the benefit of the parties hereto, their successors and assigns.

         11. CAPTIONS. The paragraph captions utilized herein are in no way
intended to interpret or limit the terms and conditions hereof, rather, they are
intended for purposes of convenience only.

         12. COUNTERPARTS. This First Amendment may be executed in any number of
counterparts, each of which shall be effective only upon delivery and thereafter
shall be deemed an original, and all of which shall be taken to be one and the
same instrument, for the same effect as if all parties hereto had signed the
same signature page. Any signature page of this First Amendment may be detached
from any counterpart of this First Amendment without impairing the legal effect
of any signatures thereon and may be attached to another counterpart of this
First Amendment identical in form hereto but having attached to it one or more
additional signature pages.

         13. DEFINED TERMS. Capitalized terms not defined herein shall have the
same meaning as set forth in the Credit Agreement.

         IN WITNESS WHEREOF, the parties hereto have executed this First
Amendment as of the day and year first above written.

                                       BORROWER:

                                       COLORADO MEDTECH, INC., a Colorado
                                       corporation

                                       By:   /s/ Stephen K. Onody
                                             --------------------
                                       Name: Stephen K. Onody
                                       Its:  President

                                       CIVCO MEDICAL INSTRUMENTS CO., INC., an
                                       Iowa corporation

                                       By:   /s/ Stephen K. Onody
                                             --------------------
                                       Name: Stephen K. Onody
                                       Its:  Vice President

                                       BIOMED Y2K, INC., a Colorado corporation

                                       By:   /s/ Stephen K. Onody
                                             --------------------
                                       Name: Stephen K. Onody
                                       Its:  President

<PAGE>   7

                                       CMED CATHETER AND DISPOSABLES
                                       TECHNOLOGY, INC., a Minnesota corporation

                                       By:   /s/ Stephen K. Onody
                                             --------------------
                                       Name: Stephen K. Onody
                                       Its:  President

                                       LENDER:

                                       KEYBANK NATIONAL ASSOCIATION, a
                                       national banking association

                                       By:   /s/ Michelle K. Bushey
                                             ----------------------
                                       Name: Michelle K. Bushey
                                       Its:  Vice President

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