Document:

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                                                                    EXHIBIT 10.7

                      THIRD MODIFICATION TO LOAN DOCUMENTS

         THIS THIRD MODIFICATION TO LOAN DOCUMENTS (herein the "Modification")
is made and entered into this 9th day of October, 2000, by and between
INTELLIGENT SYSTEMS CORPORATION, A Georgia corporation (herein "Borrower"), and
FIDELITY NATIONAL BANK, a national bank (herein "Lender").

                                   WITNESSETH:

         WHEREAS, on July 2, 1999, Lender made a One Million Dollar
($1,000,000.00) Loan to BORROWER ("Loan") evidenced by that certain Commercial
Promissory Note dated July 2, 1999 in the face principal amount of $1,000,000.00
executed by Borrower in favor of Lender (herein the "Original Note");

         WHEREAS, the Loan and the Original Note are secured and evidenced by,
amount other instruments:

         (a) Revolving Loan Agreement by and between Borrower and Lender dated
July 2, 1999 (herein the "Loan Agreement");

         (b) Stock Pledge Agreement dated July 2, 1999 by and between Borrower
and Lender with regard to the certain stock owned by Borrower in PaySys
International, Inc. (herein the "PaySys Pledge Agreement").

The Loan Agreement and PaySys Pledge Agreement are collectively referred to
herein as the "Additional Loan Documents";

         WHEREAS, the Loan and the Additional Loan Documents were amended by
that certain First Modification to Loan Documents dated October 13, 1999 by and
between Borrower and Lender, whereby certain terms and provisions of the Loan
were modified at the request of Borrower (all references to the term "Loan" and
any "Additional Loan Documents" shall be as amended by the aforesaid First
Modification to Loan Documents);

         WHEREAS, Borrower and Lender entered into that certain First
Modification to Commercial Promissory Note dated October 13, 1999, whereby
Borrower and Lender agreed to modify certain terms and provisions of the
Original Note (all references to the term "Original Note" shall be as modified
by the aforesaid First Amendment to Commercial Promissory Note);

         WHEREAS, the Loan and the Additional Loan Documents were amended by
that certain Second Modification to Loan Documents dated March 7, 2000 by and
between Borrower and Lender, whereby certain terms and provisions of the Loan
were modified at the request of Borrower (all references to the term "Loan" and
any "Additional Loan Documents" shall be as amended by the aforesaid Second
Modification to Loan Documents");

<PAGE>   2

         WHEREAS, Borrower and Lender entered into that certain Second
Modification to Commercial Promissory Note dated March 7, 2000, whereby Borrower
and Lender agreed to modify certain terms and provisions of the Original Note
(all references to the term "Original Note" shall be as modified by the
aforesaid Second Amendment to Commercial Promissory Note);

         WHEREAS, Borrower had requested and Lender has agreed to increase the
line of credit amount available under the terms of the Loan from $1,000,000 to
$2,000,000.

         NOW THEREFORE, for and in consideration of Ten and No/100 Dollars
($10.00) and other good and valuable consideration, the receipt, adequacy and
sufficiency of which are hereby acknowledged, Lender and Borrower hereby agree
as follows:

         1. Recitals. The foregoing recitals are true and correct and are
incorporated herein by this reference.

         2. Capitalized Terms. All capitalized terms contained in this
Modification shall have the same meaning afforded to them in the additional loan
documents.

         3. Specific Modifications to Documents.

                  a.       The Loan Agreement shall be modified to provide that
                           all references to the amount "$1,000,000.00" (as
                           originally amended by the aforesaid First
                           Modification to Loan Documents and the aforesaid
                           Second Modification of Loan Documents) contained in
                           the Loan Agreement shall hereinafter refer to
                           "$2,000,000.00" in order to evidence the increase of
                           the amount of the Revolving Loan availability from
                           $1,000,000.00 to $2,000,000.00

                  b.       Section 1.5 of the Loan Agreement is hereby modified
                           to provide that the maximum amount which Borrower
                           shall be entitled to draw upon shall be increased
                           from $1,000,000 to $2,000,000.

                  c.       The PaySys Pledge Agreement is hereby modified to
                           provide that all references to the amount
                           "$1,000,000.00" contained therein shall hereinafter
                           refer to the amount "$2,000,000.00" in order to
                           reflect the increase in the amount of the Loan from
                           $1,000,000.00 to $2,000,000.00.

         4. No Impairment. Borrower agrees that the terms and provisions hereof
shall in no manner impair, limit, restrict or otherwise effect the obligations
of Borrower to Lender or the priority of any Lien evidenced by the Additional
Loan Documents except as modified hereby.

         5. No Defenses. Borrower acknowledged that it has no offsets, claims
counterclaims or defenses against Lender or under any of its obligations
contained in the Additional Loan Documents and to the extent any such offsets,
claims, counterclaims, or defenses exist, the same are hereby waived by the
Borrower.

<PAGE>   3

         6. Ratification. Except as amended hereby, each and every term and
provision of the Additional Loan Documents are hereby ratified and affirmed by
Borrower and shall remain in full force and effect.

         7. No Novation. It is the intention of the parties hereto that the
execution and delivery of this Modification shall in no way constitute a
novation or extinguishments of the debt evidenced and secured by the Additional
Loan Documents.

         8. Effect of Modification. In signing this Modification, the parties
hereto expressly certify and covenant that they have carefully read all
provisions contained herein, have had an opportunity to consult with legal
counsel of their choosing and to consider the ramifications and terms of this
modification, and they have voluntarily signed this Modification with the
understanding that it will be final and binding as to their interests and they
have had a sufficient opportunity to review the Modification and consult with
counsel of their choice prior to making such decision to execute this
Modification. The parties hereby represent and warrant that this Modification is
executed without reliance on any statement or representation of the other,
except as expressly set forth in the within and foregoing Modification, and this
Modification constitutes the entire Modification between the parties hereto and
that no promise or inducement or consideration, other that that expressed in the
within and foregoing Modification, has been offered or accepted and all such
prior inducements or considerations are deemed merged herein.

         IN WITNESS WHEREOF, Borrower and Lender have set their hands and seals
to this Modification as of the day and year first above-written.

                                      BORROWER:

                                      INTELLIGENT SYSTEMS CORPORATION, a
                                      Georgia corporation

                                      By:      /s/ J. Leland Strange
                                               ---------------------------------
                                      Title:   President

                                      Attest:  /s/ Bonnie L. Herron
                                               ---------------------------------

                                      Title:   VP & CFO
                                               [CORPORATE SEAL]

                                      LENDER:

                                      FIDELITY NATIONAL BANK, a national bank

                                      By:      /s/ George Hodges
                                               ---------------------------------

                                      Title:   Sr. Vice President<PAGE>   1

                                                                   EXHIBIT 10.10

                  THIRD AMENDMENT TO COMMERCIAL PROMISSORY NOTE

         THIS THIRD AMENDMENT TO RENEWAL COMMERCIAL PROMISSORY NOTE (herein
"Second Amendment") is made and entered into as of this 9th day of October,
2000, by and between INTELLIGENT SYSTEMS CORPORATION, A Georgia corporation
(herein "Borrower"), and FIDELITY NATIONAL BANK, a national bank (herein
"Lender").

                                   WITNESSETH:

         WHEREAS, on July 2, 1999, Lender extended $1,000,000.00 line of credit
loan (herein the "Loan") in favor of Borrower as evidenced by that certain
Commercial Promissory Note in the face principal amount of $1,000,000.00
executed by Borrower in favor of Lender dated July 2, 1999 (herein the "Note");

         WHEREAS, Borrower previously requested and Lender agreed to extend an
additional $600,000.00 under the terms of the Loan, and, in evidence thereof,
Borrower and Lender entered into that certain First Amendment to Commercial
Promissory Note dated October 13, 1999, increasing the face amount of the Note
from $1,000,000 to $1,600,000 (all references to the terms "Loan" and "Note"
shall be as amended by the aforesaid First Amendment to Commercial Promissory
Note);

         WHEREAS, in accordance with the terms of the Note, Borrower paid to
Lender $1,000,000 in principal in order to reduce the principal balance of the
Loan and the Note from $1,600,000 to $600,000;

         WHEREAS, Borrower previously requested and Lender agreed to increase
the amount available under the terms of the Loan and the Note from $600,000 to
$1,000,000 and, in evidence thereof, Borrower and Lender entered into that
certain Second Amendment to Commercial Promissory Note dated March 7, 2000,
increasing the face amount of the Note from $600,000 to $1,000,000 (all
references to the term "Loan" and "Note" shall be as amended by the aforesaid by
the Second Amendment to Commercial Promissory Note);

         WHEREAS, Borrower has requested and Lender has agreed to increase the
amount available under the terms of the Loan and the Note from $1,000,000 to
$2,000,000, and the parties mutually desire to modify the terms and provisions
of the Note as hereinafter provided.

         NOW THEREFORE, for and in consideration of Ten and No/100 Dollars
($10.00) and other good and valuable consideration, the receipt, adequacy and
sufficiency which are hereby acknowledged, the parties hereby agree as follows:

         1. Recitals. The foregoing recitals are true and correct and are
incorporated herein by this reference.

<PAGE>   2

         2. Capitalized Terms. All capitalized terms contained in this Second
Amendment shall have the same meaning afforded to them in the Note.

         3. Specific Modifications of the Note.

                  a.       The face principal amount of the Note is hereby
                           amended to $2,000,000.00 and all references to the
                           amount "$1,000,000.00" in the Note shall hereinafter
                           refer to "$2,000,000.00".

                  b.       The maturity date of the Note shall continue to be
                           May 1, 2001.

                  c.       The amount of "$1,000,000" referred to in paragraph 4
                           of the Rider to the Note (as added by the aforesaid
                           First Amendment to Commercial Promissory Note and
                           amended by the aforesaid Second Amendment to
                           Commercial Promissory Note) shall hereinafter refer
                           to "$2,000,000".

         4. No Impairment. Borrower agrees that the terms and provisions hereof
shall in no manner impair, limit, restrict or otherwise effect the obligations
of Borrower to Lender as evidenced by the Note, except as modified hereby.

         5. No Defenses. Borrower acknowledges that it has no offsets, claims,
counterclaims or defenses against Lender or under any of their obligations
contained in the Note, and to the extent any such offsets, claims,
counterclaims, or defenses exist, the same are hereby waived by the Borrower.

         6. Ratification. Except as amended hereby, each and every term and
provision of the Note are hereby ratified and affirmed by Borrower and shall
remain in full force and effect.

         7. Effect of Amendment. In signing this Third Amendment, the parties
hereto expressly certify and covenant that they have carefully read all
provisions contained herein, have had an opportunity to consult with legal
counsel of their choosing and to consider the ramifications and terms of this
Third Amendment, and they have voluntarily signed this Third Amendment with the
understanding that it will be final and binding as to their interests and they
have had a sufficient opportunity to review the Third Amendment and consult with
counsel of their choice prior to making such decision to execute this Third
Amendment. The parties hereby represent and warrant that this Third Amendment is
executed without reliance on any statement or representation of the other,
except as expressly set forth in the within and foregoing Third Amendment, and
this Third Amendment constitutes the entire Third Amendment between the parties
hereto and that no promise or inducement or consideration, other than that
expressed in the within and foregoing Third Amendment, has been offered or
accepted and all such prior inducements or considerations are deemed merged
herein.

         8. No Novation. It is the intention of the parties hereto that the
execution and delivery of this Third Amendment shall in no way constitute a
novation or extinguishments of the debt evidenced by the Note.

         IN WITNESS WHEREOF, Borrower and Lender have set their hands and seals
to this Modification as of the day and year first above-written.

<PAGE>   3

                                      BORROWER:

                                      INTELLIGENT SYSTEMS CORPORATION, a
                                      Georgia corporation

                                      By:      /s/ J. Leland Strange
                                               ---------------------------------

                                      Title:   President

                                      Attest:  /s/ Bonnie L. Herron
                                               ---------------------------------

                                      Title:   VP & CFO
                                               [CORPORATE SEAL]

                                      LENDER:

                                      FIDELITY NATIONAL BANK, a national bank

                                      By:      /s/ George Hodges
                                               ---------------------------------

                                      Title:   Sr. Vice President
                                               [BANK SEAL]

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