Document:

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                                                                   Exhibit 10.29

               THIRD AMENDMENT TO FINANCING AND SECURITY AGREEMENT

     THIS THIRD AMENDMENT TO FINANCING AND SECURITY AGREEMENT (this "Agreement")
is made as of July ___, 2004, by GENERAL PHYSICS CORPORATION, a corporation
organized under the laws of the State of Delaware ("General Physics"),
SKILLRIGHT, INC., a Delaware corporation ("Skillright"), GSE SYSTEMS, INC., a
corporation organized under the laws of the State of Delaware ("GSE Systems"),
GSE POWER SYSTEMS, INC., a Delaware corporation ("GSE Power") and MSHI, INC., a
Virginia corporation ("MSHI"; GSE Systems, GSE Power and MSHI are hereinafter
referred to collectively as "GSE") (General Physics, Skillright, GSE Systems,
GSE Power and MSHI are hereinafter referred to individually as a "Borrower" and
collectively as "Borrowers"), jointly and severally and WACHOVIA BANK, NATIONAL
ASSOCIATION, a national banking association (the "Lender").

                                    RECITALS

     A. Borrowers and Lender are parties to a Financing and Security Agreement
dated August 13, 2003, as modified by a First Amendment to Financing and
Security Agreement dated as of March 30, 2004 and as further modified by a
Second Amendment to Financing and Security Agreement dated as of July 2, 2004
(the "First Amendment"; the same, as amended, modified, substituted, extended,
and renewed from time to time, collectively, the "Financing Agreement").

     B. Borrowers have requested that Lender permit an additional management fee
to be paid to GP Strategies Corporation during the current fiscal year.

     C. Lender is willing to agree to Borrowers' request on the condition, among
others, that this Agreement be executed by Borrowers.

                                   AGREEMENTS

     NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, receipt of which is hereby acknowledged, Borrowers and
Lender agree as follows:

     1. Borrowers and Lender agree that the Recitals above are a part of this
Agreement. Unless otherwise expressly defined in this Agreement, terms defined
in the Financing Agreement shall have the same meaning under this Agreement.

     2. Borrowers and Lender agree that on the date hereof the aggregate
outstanding principal balance under the Revolving Credit Note (subject to change
for returned items and other adjustments made in the ordinary course of
business) is $______________ and under the GSE Note is $_______________.

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     3. Each Borrower represents and warrants to Lender as follows:

          (a) It is a corporation duly organized, and validly existing and in
good standing under the laws of the State of its organization and is duly
qualified to do business as a foreign corporation in good standing in every
other state wherein the conduct of its business or the ownership of its property
requires such qualification;

          (b) It has the power and authority to execute and deliver this
Agreement and perform its obligations hereunder and has taken all necessary and
appropriate action to authorize the execution, delivery and performance of this
Agreement;

          (c) The Financing Agreement, as heretofore amended and as amended by
this Agreement, and each of the other Financing Documents remains in full force
and effect, and each constitutes the valid and legally binding obligation of
such Borrower, enforceable in accordance with its terms;

          (d) All of its representations and warranties contained in the
Financing Agreement and the other Financing Documents are true and correct on
and as of the date of its execution of this Agreement; and

          (e) No Event of Default and no event which, with notice, lapse of time
or both would constitute an Event of Default, has occurred and is continuing
under the Financing Agreement or the other Financing Documents which has not
been waived in writing by Lender.

     4. The Financing Agreement is hereby amended as follows:

          (a) Section 1.1 (Certain Defined Terms) is modified by deleting the
following defined term in its entirety and inserting the following in place
thereof:

          ""Revolving Credit Expiration Date" means August 12, 2006, unless
     otherwise extended for successive periods of one (1) year beyond the then
     existing maturity date commencing as of the first anniversary date of this
     Agreement, by Lender in the exercise of its sole and absolute discretion."

          (b) Section 2.3(d) (Applicable Interest Rates) is deleted in its
entirety and the following is inserted in its place:

          "(d) Changes in the Applicable Margin shall be made not more
     frequently than semi-annually based on the Pricing Ratio, determined by
     Lender subsequent to its review of the quarterly reports required by
     Section 7.1.1(c) (Quarterly Statements and Certificates), except that the
     first such determination shall be made based on Borrower's annual financial
     statements required by Section 7.1.1(a) (Annual Statements and
     Certificates) for Borrower's fiscal year ended December 31, 2004 and shall
     be effective as of the first day of the first month after Lender receives
     and reviews such statements. The Applicable Margin (expressed as basis
     points) shall vary depending upon the Pricing Ratio, as follows:

                                       2

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<TABLE>
<CAPTION>
                          Pricing Ratio
   (both covenants achieved for two (2) consecutive quarters)
-----------------------------------------------------------------
Total Liabilities to Tangible Net Worth   Interest Coverage Ratio   Applicable Margin
---------------------------------------   -----------------------   -----------------
<S>                                       <C>                       <C>
Equal to or less than 2.25 to 1.0         Greater than 3.5 to 1.0    275 basis points
Equal to or less than 1.75 to 1.0         Greater than 4.0 to 1.0    250 basis points
</TABLE>

          (c) Section 7.1.13(d) (Interest Coverage Ratio) is deleted in its
entirety and the following is inserted in its place:

          "(d) Interest Coverage Ratio. Borrower shall maintain, at all times,
an Interest Coverage Ratio equal to but not less than 3.0 to 1.0."

     5. The Borrower has requested that the Lender permit an additional
management fee in an amount not to exceed $1,000,000 to be paid to GP Strategies
Corporation in fiscal year 2004 (the "Additional Fee"). The Additional Fee is in
addition to the management fee currently permitted pursuant to Section 7.3.6(e)
(Investments, Loans and Other Transaction). Lender agrees to the Additional Fee
on a one time basis provided that the Borrower complies with each of the
following conditions:

          (a) The Borrower executes this Agreement;

          (b) The Additional Fee is made solely for the purpose of and to the
extent necessary to conform the closing balance sheet in connection with the
spin-off of NPDC to the pro-forma balance sheet of such entity;

          (c) No Event of Default exists prior to or subsequent to the payment
of the Additional Fee.

     6. Each Borrower hereby issues, ratifies and confirms the representations,
warranties and covenants contained in the Financing Agreement, as amended
hereby. Each Borrower agrees that this Agreement is not intended to and shall
not cause a novation with respect to any or all of the Obligations.

     7. Borrower shall pay at the time this Agreement is executed and delivered
all fees, commissions, costs, charges, taxes and other expenses incurred by
Lender and its counsel in connection with this Agreement, including, but not
limited to, reasonable fees and expenses of Lender's counsel and all recording
fees, taxes and charges.

     8. This Agreement may be executed in any number of duplicate originals or
counterparts, each of such duplicate originals or counterparts shall be deemed
to be an original and all taken together shall constitute but one and the same
instrument. Each Borrower agrees that Lender may rely on a telecopy of any
signature of Borrower. Lender agrees that each Borrower may rely on a telecopy
of this Agreement executed by Lender.

                                       3

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     IN WITNESS WHEREOF, Borrower and Lender have executed this Agreement under
seal as of the date and year first written above.

WITNESS OR ATTEST:                      GENERAL PHYSICS CORPORATION

                                        By:                               (SEAL)
-------------------------------------       ------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

WITNESS OR ATTEST:                      SKILLRIGHT, INC.

                                        By:                               (SEAL)
-------------------------------------       ------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

WITNESS OR ATTEST:                      GSE SYSTEMS, INC.

                                        By:                               (SEAL)
-------------------------------------       ------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

WITNESS OR ATTEST:                      GSE POWER SYSTEMS, INC.

                                        By:                               (SEAL)
-------------------------------------       ------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

WITNESS OR ATTEST:                      MSHI, INC.

                                        By:                               (SEAL)
-------------------------------------       ------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       4

<PAGE>

WITNESS:                                WACHOVIA BANK, NATIONAL ASSOCIATION

                                        By:                               (SEAL)
-------------------------------------       ------------------------------
                                            Lucy C. Campbell
                                            Vice President

                                       5

<PAGE>

                             AGREEMENT OF GUARANTOR

     The undersigned is the "Guarantor" under a Guaranty of Payment Agreement,
dated August 13, 2003 (as amended, modified, substituted, extended and renewed
from time to time, the "Guaranty"), in favor of Lender. In order to induce
Lender to enter into the foregoing Agreement, the undersigned (a) consents to
the transactions contemplated by, and agreements made by Borrower under, the
foregoing Agreement, and (b) ratifies, confirms and reissues the terms,
conditions, promises, covenants, grants, assignments, security agreements,
agreements, representations, warranties and provisions contained in the
Guaranty.

     WITNESS signature and seal of the undersigned as of the date of the
Agreement.

WITNESS OR ATTEST:                      GP STRATEGIES CORPORATION

                                        By:                               (SEAL)
-------------------------------------       ------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       6<PAGE>

                                                                   EXHIBIT 10.32

[WACHOVIA LOGO]

                       February 17, 2006

General Physics Corporation
6095 Marshalee Drive
Suite 300
Elkridge, Maryland 21075

Attention: Sharon Esposito-Mayer

                  Re: Financing and Security Agreement dated as of August 13,
                  2003 (as amended, modified, substituted, extended, and renewed
                  from time to time, the "Financing Agreement") by and between
                  General Physics Corporation ("General Physics") and Wachovia
                  Bank, National Association (the "Lender")

Ladies and Gentlemen:

      Reference is made to the Financing Agreement for the meaning of
capitalized terms not otherwise defined herein. This letter shall be deemed one
of the Financing Documents as defined in the Financing Agreement.

      General Physics desires to provide cash to General Physics (UK)
Limited("UK") for the purpose of funding the obligations of UK pursuant to the
Share Purchase Agreement relating to Peters Management Consultancy Limited, a
copy of which is attached hereto and made a part hereof (the "PMC Agreement").
The definition of "Permitted Uses" does not permit the use of proceeds of the
Revolving Loan for such a purpose.

      Provided that the purchase price to be paid by UK pursuant to the PMC
Agreement does not exceed the sum set forth in the PMC Agreement (i.e., payment
of (pound)750,000 as of the date of closing and subsequent payment of
(pound)520,000, with an adjustment based on Net Asset Value (as defined in the
PMC Agreement, the "Purchase Price")), Lender hereby (a) consents to the use of
proceeds of the Revolving Loan to complete the purchase described in the PMC
Agreement and (b) consents to the transfer of funds by General Physics to UK by
dividend, loan or other means up to the maximum amount which is the equivalent
in dollars of the Purchase Price. This letter is limited to the PMC Agreement
only and shall not be deemed to waive any other non-compliance under the
Financing Agreement, whether or not the events, facts or circumstances giving
rise to such non-compliance existed on or prior to the date hereof.

<PAGE>

      This letter shall not constitute a waiver, amendment or modification of
any provision of the Financing Agreement or any of the other Financing Documents
except as expressly set forth herein.

      The agreements of the Lender under this Agreement are subject to payment
by General Physics to Lender of a waiver fee in the amount of $5,000, time being
of the essence.

      All other terms and conditions of the Financing Agreement remain
unchanged.

                                            Wachovia Bank, National Association

                                            By:________________________________
                                               Lucy C. Campbell
                                               Vice President

                                       2

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