Document:

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                                  EXHIBIT 10(u)

                             [LETTERHEAD OF KEYBANK]

April 1, 2003

Mr. Michael R. Sayre
Executive Vice President
Corporate Strategy and Finance
Pinnacle Data Systems, Inc.
6600 Port Rd.
Groveport, OH 43125

Dear Mike:

We are pleased to confirm the renewal by KeyBank National Association ("Bank")
of the following Facility on behalf of Pinnacle Data Systems, Inc. ("Borrower").
This Facility shall be subject to the continued satisfactory financial condition
of Borrower and to the following terms and conditions:

BORROWER:                  PINNACLE DATA SYSTEMS, INC.

FACILITY:                  $4,000,000.00 LINE OF CREDIT

PURPOSE:                   To provide working capital as needed.

INTEREST RATE:             The interest rate on the Facility will be at the rate
                           per annum equal to the Prime Rate plus twenty five
                           basis points which interest rate will be
                           correspondingly and immediately adjusted with each
                           change in the Prime Rate.

                           The term "Prime Rate" means that rate established
                           from time to time by the Bank as the Bank's Prime
                           Rate, whether or not such rate is publicly announced.
                           The Prime Rate may not be the lowest interest rate
                           charged by the Bank for commercial or other
                           extensions of credit.

                           Interest hereon shall be calculated on a 360-day year
                           and the actual days elapsed.

                           Prime Rate is currently 4.25% and your effective rate
                           as of 04/01/2003 would be 4.50%.

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TERM/REPAYMENT:            Interest payable monthly, principal on demand. To be
                           reviewed for renewal on or before May 15, 2004 after
                           receipt of fiscal year end financial statements.

COLLATERAL:                Blanket lien on all business assets of the Borrower;
                           specifically, all inventory, chattel paper, accounts,
                           equipment and general intangibles.

FEES:                      $1,500.00 Renewal Fee

BORROWING BASE:            Aggregate advances for this facility are subject to a
                           monthly borrowing base which limits availability as
                           follows: 85% of Eligible Account Receivable less than
                           90 days plus 50% of Eligible Inventory. The portion
                           of the borrowing base calculated on Eligible
                           Inventory shall be capped at $2,000,000.

DOCUMENTATION:             This Facility shall be conditioned upon the execution
                           of such documentation in a form and content
                           acceptable to Bank and it's counsel.

EXPENSES:                  Borrowers agree to pay all reasonable loan expenses
                           including, but not limited to, fees of the Bank's
                           counsel, recording fees and taxes, and all other
                           expenses in connection with the preparation, closing
                           and disbursement of this loan. To the extent
                           incurred, Borrower shall pay the foregoing expenses
                           whether or not the loan shall close or be funded.

                           Salient covenants in the Loan Agreement will include,
                           but not be limited to, the following:

                           a) Financial statements to be provided as follows:

                               1)  Receipt of quarterly internal financial
                                    statements for Borrower within 60 days of
                                    each quarter-end.

                               2)  Receipt of annual Audited CPA financial
                                    statements, in accordance to GAAP, for
                                    Borrower within 120 days of FYE.

                               3)  Receipt of monthly borrowing base certificate
                                    for Borrower within 20 days of each
                                    month-end.

                               4)  Receipt of monthly accounts receivable aging
                                    report for Borrower, in conjunction with the
                                    borrowing base certificate, within 20 days
                                    of month-end.

                               5)  Such other information as the Bank may
                                    reasonably request.

                           b) Financial covenants for Borrower, to include the
                           following:

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                                1)  Borrower shall not (a) create, incur or
                                    assume indebtedness for borrowed money,
                                    including capital leases, or (b) transfer,
                                    mortgage, assign, lease, grant a security
                                    interest in, or encumber, any assets.

                                2)  Borrower shall not (a) merge, transfer,
                                    acquire or consolidate with any other
                                    entity, change ownership, or transfer or
                                    sell any Collateral out of the normal course
                                    of business, (b) pay any dividends or (c)
                                    purchase or retire any outstanding shares.

                                3)  Borrower shall not (a) loan, invest in or
                                    advance any money or assets, (b) purchase,
                                    create or acquire any other enterprise or
                                    entity, or (c) incur any obligation as
                                    surety or guarantor other than in the
                                    ordinary course of business.

                                4)  Borrower shall maintain a Total Debt to
                                    Tangible Net Worth of less than or equal to
                                    2.00 to 1.00 which shall be tested on a
                                    quarterly basis. "Total Debt" means all of
                                    Borrower's liabilities including
                                    Subordinated Debt. "Subordinated Debt" means
                                    indebtedness and liabilities of Borrower
                                    that have. been subordinated by written
                                    agreement to indebtedness owed by Borrower
                                    to Lender in form and substance acceptable
                                    to Lender. "Tangible Net Worth" means
                                    Borrower's total assets excluding all
                                    intangible assets (i.e., goodwill,
                                    trademarks, patents, copyrights,
                                    organizational expenses, and similar
                                    intangible items, but including leaseholds
                                    and leasehold improvements) less Total Debt.

                                5)  Borrower shall maintain an Operating Cash
                                    Flow to Total Fixed Charge Ratio of not less
                                    than 1.20 to 1.00 beginning 03/30/2003 and
                                    thereafter; calculated on the most recently
                                    completed (4) fiscal quarters which shall be
                                    tested on a quarterly basis. "Operating Cash
                                    Flow" shall mean net income after taxes and
                                    exclusive of extraordinary gains and losses,
                                    gains on sale of fixed assets, and other
                                    income; plus depreciation, amortization,
                                    interest expense, and lease expense; less
                                    dividend and distributions. "Total Fixed
                                    Charges" shall mean the sum of interest
                                    expense, current maturities of long-term
                                    debt, current maturities of capital leases,
                                    lease expenses, preferred stock dividends
                                    and Capital Expenditures (all calculated for
                                    the preceding twelve-month period). "Capital
                                    Expenditures" shall mean net fixed assets at
                                    the beginning of the period less net fixed
                                    assets at the end of the period plus
                                    depreciation expense for the period.

DEPOSITORY

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 RELATIONSHIP:             Borrower shall maintain its primary operating
                           account, to include cash management services, with
                           Bank.

We are pleased to renew the above Facility on behalf of your company and look
forward to a long and mutually beneficial relationship. Should you find the
above terms and conditions acceptable, please sign the enclosed copy of this
letter and return it to me. The deadline to accept this commitment will be April
18, 2003.

Sincerely,
/s/ Roger
Roger D. Campbell
Senior Vice President
KeyBank National Association

Acceptance:

BORROWER:

Pinnacle Data Systems, Inc.

By: /s/ Michael R. Sayre
    --------------------
      Michael R. Sayre, Executive Vice President<PAGE>

                                  EXHIBIT 10(v)

                            FIFTH AMENDMENT TO LOAN AGREEMENT

          THIS FIFTH AMENDMENT TO LOAN AGREEMENT (this "Amendment") made as of
the 12th day of May, 2003, by and between Pinnacle Data Systems, Inc. (the
"Borrower") and KeyBank National Association ("Lender"):

          WHEREAS, Borrower and Lender are parties to a certain Loan Agreement
dated August 10, 2000, as amended and as it may from time to time be further
amended, supplemented or otherwise modified (the "Loan Agreement");

          WHEREAS, Borrower and Lender desire to amend the Loan Agreement by
modifying a certain financial covenant thereof, and

          WHEREAS, each term used herein shall be defined in accordance with the
Loan Agreement.

          NOW, THEREFORE, in consideration of the premises and of the mutual
covenants herein and for other valuable considerations, Borrower and Lender
agree as follows:

          1. The Loan Agreement is hereby amended by deleting Subparagraph A
from the section titled "Financial Covenants" in its entirety and replacing it
with the following:

          A) [RESERVED]

          2. Concurrently with the execution of this Amendment, Borrower shall
pay (i) all reasonable legal fees and expenses of Lender incurred in connection
with this Amendment, and (ii) a renewal fee of One Thousand Five Hundred Dollars
($1,500).

          3. Borrower hereby represents and warrants to Lender that (a) Borrower
has the legal power and authority to execute and deliver this Amendment; (b)
officials executing this Amendment have been duly authorized to execute and
deliver the same and bind Borrower with respect to the provisions hereof; (c)
the execution and delivery hereof by Borrower and the performance and observance
by Borrower of the provisions hereof do not violate or conflict with the
organizational agreements of Borrower or any law applicable to Borrower or
result in a breach of any provision of or constitute a default under any other
agreement, instrument or document binding upon or enforceable against Borrower;
(d) no Event of Default exists under the Loan Agreement, nor will any occur
immediately after the execution and delivery of this Amendment or by the
performance or observance of any provision hereof; (e) neither Borrower (nor any
subsidiary) has any claim or offset against, or defense or counterclaim to, any
of Borrower's (or any subsidiary's) obligations or liabilities under the Loan
Agreement or any Related Documents, and Borrower (and each subsidiary) hereby
waives and releases Lender from any and all such claims, offsets, defenses and
counterclaims of which Borrower (and any subsidiary) is aware, such waiver and
release being with full knowledge and understanding of the circumstances and
effect thereof and after having consulted legal counsel with respect thereto,

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and (f) this Amendment constitutes a valid and binding obligation of Borrower in
every respect, enforceable in accordance with its terms.

          4. Each reference that is made in the Loan Agreement or any other
writing shall hereafter be construed as a reference to the Loan Agreement as
amended hereby. Except as herein otherwise specifically provided, all provisions
of the Loan Agreement shall remain in full force and effect and be unaffected
hereby.

          5. This Amendment may be executed in any number of counterparts, by
different parties hereto in separate counterparts and by facsimile signature,
each of which when so executed and delivered shall be deemed to be an original
and all of which taken together shall constitute but one and the same agreement.

          6. The rights and obligations of all parties hereto shall be governed
by the laws of the State of Ohio, without regard to principles of conflicts of
laws.

            [The remainder of this page is intentionally left blank.]

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          7. JURY TRIAL WAIVER. BORROWER AND LENDER WAIVE ANY RIGHT TO HAVE A
JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE, BETWEEN BORROWER AND LENDER, ARISING OUT OF, IN CONNECTION WITH,
RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN
CONNECTION WITH THIS AGREEMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR
AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS
RELATED THERETO. THIS WAIVER SHALL NOT IN ANY WAY AFFECT, WAIVE, LIMIT, AMEND OR
MODIFY LENDER'S ABILITY TO PURSUE REMEDIES PURSUANT TO ANY CONFESSION OF
JUDGMENT OR COGNOVIT PROVISION CONTAINED IN ANY NOTE OR OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT BETWEEN BORROWER AND LENDER.

Address:     Pinnacle Data Systems, Inc.           PINNACLE DATA SYSTEMS, INC.
             6600 Port Road
             Groveport, Ohio 43125
             Attn: M. Sayre                        By: /s/ Michael R Sayre
                   --------                            --------------------
                                                   Its: EVP & CFO
                                                        -------------------

Address:     KeyBank National Association          KEYBANK NATIONAL ASSOCIATION
             88 East Broad Street
             Columbus, Ohio 43215
             Attn: R. Campbell                     By:/s/ Roger Campbell
                   -----------                        ------------------
                                                   Its: SVP
                                                        ---

The State of Ohio      )
             ----------
                       )SS.
The County of Franklin )
              ---------

Before me a notary public, in and for said County, personally appeared the above
named officer, Michael R. Sayre, Executive Vice President of Pinnacle Data
Systems, Inc. who acknowledges that he did sign the foregoing instrument, and
that the same is the free act and deed of such corporation and of such officer.

In Testimony Whereof, I have hereunto set my hand and official seal at 2:23
P.M., this 12th day of May, 2003.

                                                          /s/ Kathy K Kelly,
                                                          ------------------
                                                                   Notary Public

                                                     commission expires 6/29/04

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