Document:

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                                                                    EXHIBIT 10.8

                            ASIAINFO HOLDINGS, INC.
                 1999 INCENTIVE STOCK OPTION PLAN, AS AMENDED

                                   ARTICLE 1

                                    PURPOSE

The purpose of the Plan is to attract employees to AsiaInfo Holdings, Inc., a
Delaware corporation (the "Company"), and to its Subsidiaries (hereafter
defined), and to provide such persons and employees of the Company and its
Subsidiaries with a proprietary interest in the Company through the granting of
Incentive Stock Options that will:

(a)  increase the interest of the employees in the Company's welfare;

(b)  furnish an incentive to the employees to continue their services for the
     Company; and

(c)  provide a means through which the Company may attract able persons to enter
     its employ.

                                   ARTICLE 2

                                  DEFINITIONS

For the purpose of the Plan, unless the context requires otherwise, the
following terms shall have the meanings indicated:

"Board" means the board of directors of the Company and, to the extent
applicable, such members thereof as are delegated powers under Article 3 of this
Plan.

"Code" means the Internal Revenue Code of 1986, as amended.

"Common Stock" means the Common Stock, $.01 par value, which the Company is
currently authorized to issue or may in the future be authorized to issue.

"Company" means AsiaInfo Holdings, Inc., a Delaware corporation.

"Date of Grant" means the effective date on which an option is awarded to an
employee as set forth in the stock option agreement.

"Incentive Stock Option" means an option to purchase Common Stock of the Company
granted under this Plan and which is intended to qualify as an incentive stock
option under Section 422 of the Code.

"Option Period" means the period during which an option may be exercised.
<PAGE>

"Plan" means this AsiaInfo Holdings, Inc., 1999 Incentive Stock Option Plan, as
amended from time to time.

"Subsidiary" means any corporation, partnership, limited liability company, or
other entity (for the purposes of this definition, a "company") in an unbroken
chain of companies beginning with the Company if, at the time of the granting of
an Incentive Stock Option, each of the companies other than the last company in
the unbroken chain owns stock possessing 50% or more of the total combined
voting power of all classes of stock or other interests in one of the other
companies in the chain, and "Subsidiaries" means more than one of any such
companies.

                                   ARTICLE 3

                                ADMINISTRATION

The Plan shall be administered by the Board; provided, however, that the Board
in its discretion may appoint a Stock Option Committee (the "Committee") or
designate the Compensation Committee of the Board as the Committee, the
Committee consisting of not fewer than two persons, for the purpose of
administering the Plan (hereafter, for convenience only, all references to
administration will be to the Board). The Board may upon resolution delegate
some or all of its powers with respect to the administration of the Plan to the
Committee. The Committee shall have only such powers as may be so delegated.

If the Board delegates some or all of its powers to the Committee as provided
hereunder, any member of the Committee (or all members in the event the Board
elects to assume direct responsibility for administration of the Plan) may be
removed at any time, with or without cause, by resolution of the Board. Any
vacancy occurring in the membership of the Committee may be filled by
appointment by the Board. The Committee shall select one of its members to act
as its Chairman and shall make such rules and regulations for its operation as
it deems appropriate. A majority of the Committee shall constitute a quorum, and
the act of a majority of the members of the Committee present at a meeting at
which a quorum is present shall be the act of the Committee. The Committee shall
determine and designate from time the employees to whom options will be granted,
the number of shares subject to each option, interpret the Plan, prescribe,
amend, and rescind any rules and regulations necessary or appropriate for the
administration of the Plan, and make such other determinations and take such
other action as it deems necessary or advisable. Any interpretation,
determination, or other action made or taken by the Committee shall be final,
binding, and conclusive on all interested parties. If no Committee is appointed,
the Board shall have the powers described in this Article.

                                   ARTICLE 4

                                  ELIGIBILITY

Any employee of the Company or any of its Subsidiaries whose judgment,
initiative and

                                      -2-
<PAGE>

efforts contributed or may be expected to contribute to a successful performance
of the Company is eligible to participate in the Plan.

                                   ARTICLE 5

                            SHARES SUBJECT TO PLAN

The Board may not grant options under the Plan for more than Four Million Five
Hundred and Eight Thousand (4,508,000) shares of Common Stock of the Company (as
may be adjusted in accordance with Article 20 hereof). Shares to be optioned and
sold may be made available from either authorized but unissued Common Stock or
Common Stock held by the Company in its treasury. Shares that by reason of the
expiration or cancellation of an option granted under the Plan may be reoffered
under the Plan.

                                   ARTICLE 6

                          STOCK OWNERSHIP LIMITATIONS

No option may be granted to an employee who owns more than 5% of the total
combined voting power of all classes of stock of the Company or its
Subsidiaries; provided, however, that this limitation will not apply if the
exercise price is at least 110% of the fair market value of the stock of the
Company on the Date of Grant and the Option Period is not greater than five
years from the Date of Grant.

                                   ARTICLE 7

                            LIMITATION ON EXERCISES

To the extent required by the Code, the exercise of options granted under the
Plan shall be subject to the $100,000 calendar-year limit set forth in Section
422(d) of the Code.

                                   ARTICLE 8

                              ALLOTMENT OF SHARES

The Board shall determine the number of shares of Common Stock to be offered
from time to time by grant of options to participants under the Plan. The grant
of an option to a participant shall not be deemed either to entitle the
participant to, or to disqualify the participant from, participation in any
other grant of options under the Plan.

                                   ARTICLE 9

                               GRANT OF OPTIONS

All options under the Plan shall be granted by the Board and are intended to be
Incentive

                                      -3-
<PAGE>

Stock Options. The grant of options shall be evidenced by stock option
agreements setting forth the total number of shares subject to the option, the
exercise price, the term of the option, the Date of Grant, and such other terms
and provisions as are approved by the Board, but not inconsistent with the Plan,
including provisions that may be necessary to assure that the option is an
Incentive Stock Option under the Code. The Company shall execute stock option
agreements with the participants after approval of the issuance of stock option
grants. The Plan shall be submitted to the Company's stockholders for approval;
however, the Board may grant options under the Plan prior to the time of
stockholder approval.

                                  ARTICLE 10

                                EXERCISE PRICE

The exercise price shall not be less than 100% of the fair market value per
share of the Common Stock on the Date of Grant. The Board shall determine the
fair market value of the Common Stock on the Date of Grant and shall set forth
the determination in its minutes, using any reasonable valuation method.

                                   ARTICLE 11

                                 OPTION PERIOD

The Option Period of each option will begin and terminate on the dates specified
by the Board, but may not terminate later than ten years from the Date of Grant.
No option granted under the Plan may be exercised at any time after its term.
The Board may provide for exercise of options immediately or in instalments and
upon such other terms, conditions and restrictions as it may determine,
including granting the Company the right to repurchase shares issued upon
exercise of options.

                                  ARTICLE 12

                           TERMINATION OF EMPLOYMENT

In the event a participant shall cease to be employed by the Company or its
Subsidiaries, such participant's Incentive Stock Options shall be terminated as
follows:

(a)  Death. In the event of death while employed, the option may be exercised,
     for a period of ninety (90) days after the participant's death or until
     expiration of the Option Period (if sooner) to the extent of the shares
     with respect to which the option could have been exercised by the
     participant on the date of the participant's death; such option may only be
     exercised by the personal representative of the participant's estate or by
     the person who acquired the right to exercise the option by bequest or
     inheritance or by reason of the participant's death.

                                      -4-
<PAGE>

(b)  Disability. In the event of termination of employment as the result of a
     total and permanent disability (as defined in Section 22 (e) of the Code),
     the option may be exercised by the participant or his guardian for a period
     of ninety (90) days after such termination or until expiration of the
     Option Period (if sooner), to the extent of the shares with respect to
     which the option could have been exercised by the participant on the date
     of such termination.

(c)  Termination for Other Reasons. In the event of termination of employment
     (for reasons other than as set forth in subparagraphs (a) and (b) above),
     the option may be exercised by participant for a period of 30 days after
     the participant's termination or until expiration of the Option Period (if
     sooner), to the extent of the shares with respect to which the option could
     have been exercised by the participant on the date of termination.

                                   ARTICLE 13

                                    PAYMENT

Full payment for shares purchased upon exercise of an option shall be made in
cash, at the option of the Board by the participant's delivery to the Company of
shares of Common Stock which have a fair market value equal to the exercise
price, or at the option of the Board in any combination of cash and shares of
Common Stock having an aggregate fair market value equal to the exercise price.
No shares may be issued until full payment of the purchase price thereof has
been made, and a participant will have none of the rights of a stockholder until
shares are issued to him.

                                  ARTICLE 14

                              EXERCISE OF OPTIONS

Options granted under the Plan may be exercised during the Option Period, at
such times and in such amounts, in accordance with the terms and conditions and
subject to such restrictions as are set forth in the applicable stock option
agreements. If the Board imposes conditions upon exercise, then subsequent to
the Date of Grant the Board may, also in its sole discretion, accelerate the
date on which all or any portion of the options may be exercised. In no event
may an option be exercised or shares be issued pursuant to an option if
necessary listing of the shares on a stock exchange or any registration under
state or federal securities laws required under the circumstances has not been
accomplished.

                                  ARTICLE 15

                               NON-ASSIGNABILITY

An option granted to a participant may not be transferred or assigned other than
by will or by

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<PAGE>

the laws of descent and distribution or pursuant to the terms of a qualified
domestic relations order as defined in Code Section 411(a)(13). If the
participant attempts to alienate, assign, pledge, hypothecate or otherwise
dispose of his option or any right thereunder, except as provided for in this
Plan or the stock option agreement, or in the event of any levy, attachment,
execution or similar process upon the right or interest conferred by this Plan
or the stock option agreement, the Board may terminate the participant's option
by notice to him, and it shall thereupon become null and void.

                                  ARTICLE 16

                           DISQUALIFYING DISPOSITION

If stock acquired upon exercise of an Incentive Stock Option is disposed of by a
participant prior to the expiration of either two years from the Date of Grant
of such option or one year from the transfer of shares to the participant
pursuant to the exercise of such option, or in any other disqualifying
disposition within the meaning of Section 422 of the Code, such participant
shall notify the Company in writing of the date and terms of such disposition. A
disqualifying disposition by a participant shall not affect the status of any
other option granted under the Plan as an Incentive Stock Option within the
meaning of Section 422 of the Code.

                                  ARTICLE 17

                          AMENDMENT OR DISCONTINUANCE

The Plan may be amended or discontinued by the Board without the approval of the
stockholders of the Company, unless stockholders approval is required to
maintain the special tax treatment for Incentive Stock Options under the Code or
by any stock exchange on which the shares to be issued upon exercise of the
options are listed. No amendment may adversely affect an outstanding option
without the consent of the participant.

                                   ARTICLE 18

                               EFFECT OF THE PLAN

Neither the adoption of this Plan nor any action of the Board or the Committee
shall be deemed to give any officer or employee any right to be granted an
option to purchase Common Stock of the Company or any other rights except as may
be evidenced by a stock option agreement, or any amendment thereto, duly
authorized by the Board and executed on behalf of the Company and then only to
the extent and upon the terms and conditions expressly set forth therein.

                                      -6-
<PAGE>

                                  ARTICLE 19

                                     TERM

Unless sooner terminated by action of the Board, the Plan will terminate on the
[tenth] anniversary of the Effective Date, but options granted before the date
will continue to be effective in accordance with their terms and conditions.

                                  ARTICLE 20

                  RECAPITALIZATION, MERGER AND CONSOLIDATION

(a)  The existence of this Plan and options granted hereunder shall not affect
     in any way the right or power of the Company or its stockholders to make or
     authorize any or all adjustments, recapitalizations, reorganizations or
     other changes in the Company's capital structure and its business, or any
     merger or consolidation of the Company, or any issue of bonds, debentures,
     preferred or preference stocks ranking prior to or otherwise affecting the
     Common stock or the rights thereof (or any rights, options or warrants to
     purchase same), or the dissolution or the liquidation of the Company, or
     any sale or transfer of all or any part of its assets or business, or any
     other corporate act or proceeding, whether or a similar character or
     otherwise.

(b)  The number of shares of Common Stock available under the Plan described in
     Article 5, the number of shares of Common Stock that may be purchased
     pursuant to options granted under the Plan, and the consideration payable
     per share upon exercise, shall be proportionately adjusted by the Board for
     any increase or decrease in the number of issued shares of Common Stock
     resulting from a subdivision or consolidation of shares or other capital
     adjustment, or the payment of a stock dividend or other increase or
     decrease in such shares, effected without receipt of consideration by the
     Company; provided, however, that any fractional shares resulting from any
     such adjustment shall be eliminated for the purposes of such adjustment.

(c)  Subject to any required action by the stockholders, if the Company shall be
     the surviving or resulting corporation in any merger or consolidation, any
     option granted hereunder shall pertain to and apply to the securities or
     rights (including cash, property or assets) to which a holder of the number
     of shares of Common Stock subject to the option would have been entitled.

(d)  In the event of any merger or consolidation pursuant to which the Company
     is not the surviving or resulting corporation, there shall be substituted
     for each share of Common Stock subject to the unexercised portions of such
     outstanding options, that number of shares of each class of stock or other
     securities or that amount of cash, property or assets of the surviving or
     consolidated company which were distributed or distributable to the
     stockholders of the Company in respect to each share of Common Stock held
     by them, such outstanding options to be thereafter exercisable (subject to
     appropriate adjustment, if appropriate, as to the per share exercise prices
     for such

                                      -7-
<PAGE>

     stock, securities, cash or property, as determined under subsection (b)
     above) in accordance with their terms. Notwithstanding the foregoing,
     however, all such options may be cancelled by the Company as of the
     effective date of any such reorganization, merger or consolidation or of
     any dissolution or liquidation of the Company by giving notice to each
     holder thereof or his personal representative of its intention to do so and
     by permitting the purchase during the thirty (30) day period next preceding
     such effective date of all of the shares subject to such outstanding
     options.

(e)  In the event that either sufficient shares of the Company's Common Stock
     are purchased, or any tender, exchange or similar offer is commenced which
     would, if successful (i) result in any of the events described in sections
     20(c) and (d) or (ii) materially alter the structure or business of the
     Company, then, notwithstanding any other provision in its Plan to the
     contrary, all unmatured instalments of options outstanding shall thereupon
     automatically be accelerated and exercisable in full and any right the
     Company may have to repurchase shares issued upon exercise of options shall
     terminate. The determination of the Board that any of the foregoing
     conditions has been met shall be binding and conclusive an all parties.

(f)  Expect as hereinbefore expressly provided, the issue by the Company of
     shares of stock of any class, or securities convertible into shares of
     stock of any class, for cash or property, or for labor or services either
     upon direct sale or upon the exercise of rights or warrants to subscribe
     therefor, or upon conversion of shares or obligations of the Company
     convertible into such shares or other securities, shall not affect, and no
     adjustment by reason thereof shall be made with respect to, the number or
     price of shares of Common Stock subject to options granted pursuant to this
     Plan.

(g)  Upon the occurrence of each event requiring an adjustment of the price or
     the number of shares purchasable pursuant to options granted pursuant to
     the terms of this Plan, the Company shall mail forthwith to each
     participant a copy of its computation of such adjustment which shall be
     conclusive and shall be binding upon each such participant.

                                  ARTICLE 21

                          LIQUIDATION OR DISSOLUTION

In case the Company shall, at any time while any option under this Plan shall be
in force and remain unexpired, (i) sell all or substantially all its property,
or (ii) dissolve, liquidate, or wind up its affairs, then each participant may
thereafter receive upon exercise hereof (in lieu of each share of Common Stock
of the Company which such participant would have been entitled to receive) the
same kind and amount of any securities or assets as may be issuable,
distributable or payable upon any such sale, dissolution, liquidation, or
winding up with respect to each share of Common Stock of the Company. If the
Company shall, at any time prior to the expiration of any option, make any
partial distribution of its assets, in the nature of a partial liquidation,
whether payable in cash or in kind (but excluding the distribution of a cash
dividend payable out of earned surplus and designated as such) then in such
event the prices then in effect with respect to each option shall be reduced, on
the payment date of such

                                      -8-
<PAGE>

distribution, in proportion to the percentage reduction in the tangible book
value of the shares of the Company's Common Stock (determined in accordance with
generally accepted accounting principles) resulting by reason of such
distribution.

                                   ARTICLE 22

                          OPTIONS IN SUBSTITUTION FOR

                  STOCK OPTIONS GRANTED BY OTHER CORPORATIONS

Stock options may be granted under the Plan from time to time in substitution
for such options held by employees of a corporation who become or are about to
become employees of the Company or its Subsidiaries as the result of a merger or
consolidation of the employing entity with the Company or the acquisition by the
Company of stock of the employing entity. The terms and conditions of the
substitute options so granted may vary from the terms and conditions set forth
in this Plan to such extent as the Board at the time of grant may deem
appropriate to conform, in whole or in part, to the provisions of the options in
substitution for which they are granted.

                                   ARTICLE 23

                               INVESTMENT INTENT

The Company may require that there be presented to and filed with it by any
participant under the Plan, such evidence as it may deem necessary to establish
that the options granted or the shares of Common Stock to be purchased or
transferred are being acquired for investment and not with a view to their
distribution.

                                  ARTICLE 24

                        NO RIGHT TO CONTINUE EMPLOYMENT

Nothing in the Plan or the grant of any option confers upon any employee the
right to continue in the employ of the Company or its Subsidiaries or interferes
with or restricts in any way the right of the Company or its Subsidiaries to
discharge any employee at any time (subject to any contract rights of such
employee).

                                   ARTICLE 25

                     INDEMNIFICATION OF BOARD AND COMMITTEE

No member of the Board or the Committee, nor any officer or employee of the
Company acting on behalf of the Board or the Committee, shall be personally
liable for any action, determination, or interpretation taken or made in good
faith with respect to the Plan, and all members of the Board or the Committee
and each and any officer or employee of the

                                      -9-
<PAGE>

Company acting on their behalf shall, to the extent permitted by law, be fully
indemnified and protected by the Company in respect of any such action,
determination or interpretation. This obligation shall survive any termination
of this Plan.

                                  ARTICLE 26

                               TAX REQUIREMENTS

The Company shall have the right to deduct from all amounts hereunder paid in
cash any taxes required by United States (including state and local taxes) or
other applicable law to be withheld with respect to such cash payments. The
employee receiving shares issued upon exercise of any stock option shall be
required to pay the Company the amount of any taxes which the Company is
required to withhold with respect to such shares of Common Stock. Such payments
shall be required to be made prior to the delivery of any certificate
representing such shares of Common Stock. Such payment may be made in cash, by
check, or through the delivery of shares of Common Stock owned by the employee
(which may be effected by the actual delivery of shares of Common Stock by the
employee or by the Company's withholding a number of shares to be issued upon
the exercise of the stock option), which shares have an aggregate fair market
value equal to the required withholding payment, or any combination thereof.

                                  ARTICLE 27

                                EFFECTIVE DATE

The effective date (the "Effective Date") of the Plan shall be 1 June 1999, that
is, the date the plan was approved and adopted by the Board.

IN WITNESS WHEREOF, the Company has caused this instrument to be executed as of
the effective date, by its President pursuant to prior action taken by the
Board.

                              ASIAINFO HOLDINGS, INC.

                              By:        James Ding
                              Title:     CEO and Company Secretary

                              Signature:      /s/ James Ding
                                         -------------------------

                                      -10-<PAGE>

                                                                   EXHIBIT 10.44

                FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT
                -----------------------------------------------

  THIS FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this "Amendment") is
made and entered into this 23rd day of August, 2000, by and among PAMECO
CORPORATION, a Delaware corporation with its chief executive office and
principal place of business at 1000 Center Place, Norcross, Georgia 30093
("Borrower"); and FLEET CAPITAL CORPORATION, a Rhode Island corporation with an
office at 300 Galleria Parkway, N.W., Suite 800, Atlanta, Georgia 30339
("Agent"), in its capacity as collateral and administrative agent for the
Lenders (as defined in the Loan Agreement referenced below); and Lenders.

                                 Recitals:
                                 --------

  Lenders, Agent and Borrower are parties to a certain Loan and Security
Agreement dated February 17, 2000, as amended by that certain First Amendment to
Loan and Security Agreement dated February 29, 2000, that certain Second
Amendment to Loan and Security Agreement dated May 18, 2000, and that certain
Assumption and Amendment Agreement dated as of July 21, 2000 (as at any time
amended, the Loan Agreement), pursuant to which Lenders may make certain loans
and other extensions of credit to Borrower from time to time.

  The parties desire to amend the Loan Agreement as hereinafter set forth.

  NOW, THEREFORE, for TEN DOLLARS ($10.00) in hand paid and other good and
valuable consideration, the receipt and sufficiency of which are hereby
severally acknowledged, the parties hereto, intending to be legally bound
hereby, agree as follows:

  1.  Definitions.  All capitalized terms used in this Amendment, unless
      -----------
otherwise defined herein, shall have the meaning ascribed to such terms in the
Loan Agreement.

  2.  Amendments to Loan Agreement.  The Loan Agreement is hereby amended as
      ----------------------------
follows:

  (a) By adding a new Section 7.6 to the Loan Agreement that reads as follows:

      7.6.  Additional Reporting Requirements.  Borrower shall deliver to Agent
            ---------------------------------
      and Lenders a weekly sales and gross margin report on Monday of each week
      for the immediately preceding week. Borrower shall deliver to Agent and
      Lenders on Tuesday of each week, commencing on August 23, 2000, a weekly
      rolling cash forecast for the immediately succeeding 6-week period.
<PAGE>

  (b) By deleting Section 9.2.9 of the Loan Agreement and by substituting the
following new Section 9.2.9 in lieu thereof:

      9.2.9.  Capital Expenditures.  Make Capital Expenditures (including
              --------------------
      expenditures by way of capitalized leases) which in the aggregate, as to
      Borrower and its Subsidiaries, exceed (i) $2,500,000 during the Fiscal
      Year ending February 28, 2001, and (ii) $4,000,000 during the Fiscal Year
      ending February 28, 2002 and for each Fiscal Year thereafter.

  (c) By deleting Sections 9.3.1, 9.3.2 and 9.3.3 of the Loan Agreement and by
substituting the following new Sections 9.3.1, 9.3.2 and 9.3.3 in lieu thereof:

      9.3.1.  Consolidated Net Worth.  Maintain a Consolidated Net Worth of at
              ----------------------
      least the amount set forth below for the period applicable thereto, to be
      tested on a monthly basis as of the last day of each month (except as
      otherwise expressly provided below):

               Period               Amount
               ------             -----------

               July, 2000         $20,250,000
               August, 2000       $27,750,000
               September, 2000    $27,725,000
               October, 2000      $25,375,000
               November, 2000     $22,475,000
               December, 2000     $19,375,000
               January, 2001      $16,225,000
               February, 2001     $13,475,000
               March, 2001        $12,325,000
               April, 2001        $12,075,000
               May, 2001          $14,225,000
               June, 2001         $16,975,000
               July, 2001         $20,025,000
               August, 2001       $22,225,000
               September, 2001    $21,975,000
               October, 2001      $22,075,000
               November, 2001     $20,875,000
               December, 2001     $19,525,000
               January, 2002      $17,825,000
               February, 2002     $16,425,000
               March, 2002        $16,425,000
               April, 2002        $16,425,000
               May, 2002          $20,425,000
               June, 2002         $20,425,000
               July, 2002         $20,425,000

                                       2
<PAGE>

               August, 2002       $32,775,000

      ;provided, however, that the foregoing amount shall be increased as of
       --------  -------
      the last day of the second month following the end of each Fiscal
      Quarter, commencing with the Fiscal Quarter ending August 31, 2002, by an
      amount equal to 50% of Consolidated Net Income during each such Fiscal
      Quarter, but no reduction in the foregoing amount shall be made if
      Consolidated Net Income in any Fiscal Quarter is a negative number.

      9.3.2.  Consolidated EBITDA.  Achieve Consolidated EBITDA of at least the
              -------------------
      amount shown below for the period corresponding thereto:

      Period                                                Amount
      ------                                                ------
      July 1, 2000
        through July 31, 2000                             $         0
      July 1, 2000
        through August 31, 2000                          ($   100,000)
      July 1, 2000
        through September 30, 2000                       ($ 1,500,000)
      July 1, 2000
        through October 31, 2000                         ($ 3,300,000)
      July 1, 2000
        through November 30, 2000                        ($ 5,700,000)
      July 1, 2000
        through December 31, 2000                        ($ 8,400,000)
      July 1, 2000
        through January 30, 2001                         ($11,600,000)
      July 1, 2000
        through February 28, 2001                        ($14,200,000)
      July 1, 2000
        through March 31, 2001                           ($14,300,000)
      July 1, 2000
        through April 30, 2001                           ($13,700,000)
      July 1, 2000
        through May 31, 2001                             ($10,600,000)
      July 1, 2000
        through June 30, 2001                            ($ 6,500,000)
      August 1, 2000
        through July 31, 2001                            ($ 1,000,000)
      September 1, 2000
        through August 31, 2001                           $ 2,300,000
      October 1, 2000
        through September 30, 2001                        $ 4,400,000

                                       3
<PAGE>

      November 1, 2000
        through October 31, 2001                          $ 6,900,000
      December 1, 2000
        through November 30, 2001                         $ 8,700,000
      January 1, 2001
        through December 31, 2001                         $11,100,000
      February 1, 2001
        through January 31, 2002                          $13,200,000
      March 1, 2001
        through February 28, 2002                         $15,200,000

      9.3.3.  Consolidated Fixed Charge Coverage Ratio.  Achieve a Consolidated
              ----------------------------------------
      Fixed Charge Coverage Ratio of at least the ratio shown below for the
      period corresponding thereto:

      Fiscal Quarter ended 5/31/02                     1.30 to 1.0
      Two Fiscal Quarters ended 8/31/02                1.40 to 1.0
      Three Fiscal Quarters ended 11/30/02             1.40 to 1.0
      Four Fiscal Quarters ended on 2/28/03            1.40 to 1.0
      Each Fiscal Quarter end thereafter
        for the four Fiscal Quarters then ending       1.40 to 1.0

  (d) By inserting the words or 7.6" directly following the words contained in
Section 7.5" in Section 11.1.3(ii) of the Loan Agreement.

  (e) By adding a new Section 11.1.19 to the Loan Agreement that reads as
follows:

      11.1.19  Additional Capital Contribution.  Littlejohn and/or Quilvest
               -------------------------------
      shall fail to make an additional capital contribution to Borrower of at
      least $2,500,000 after August 23, 2000 but prior to September 23, 2000.

  (f) By deleting the definition of Applicable Margin from Appendix A to the
Loan Agreement and by substituting the following new definition in lieu thereof:

      Applicable Margin - a percentage equal to 1.25% with respect to Revolver
      -----------------
      Loans that are Base Rate Loans, 3.25% with respect to Revolver Loans that
      are LIBOR Loans, and 0.375% with respect to the Unused Line Fee, provided
                                                                       --------
      that, commencing after the Adjustment Date, the Applicable Margin shall be
      ----
      increased or (if no Default or Event of Default exists) decreased, based
      upon the Average Availability, as follows:

                                       4
<PAGE>

<TABLE>
<CAPTION>
      -------------------------------------------------------------------------------------
                                       Applicable Margin
      -------------------------------------------------------------------------------------
      Average
      Availability                               Base Rate    LIBOR Rate    Unused Line Fee
      -------------------------------------------------------------------------------------
      <S>                                        <C>          <C>           <C>
      Less than $2,500,000                         1.00%         3.00%             0.50%
      -------------------------------------------------------------------------------------
      Less than $10,000,00 but greater than        0.75%         2.75%             0.375%
       or equal to $2,500,000
      -------------------------------------------------------------------------------------
      Less than $20,000,000 but greater than       0.50%         2.50%             0.375%
       or equal to $10,000,000
      -------------------------------------------------------------------------------------
      Less than $30,000,000 but greater than       0.25%         2.25%             0.35%
       or equal to $15,000,000
      -------------------------------------------------------------------------------------
      Greater than or equal to $30,000,000         0.00%         2.00%             0.25%
      -------------------------------------------------------------------------------------
</TABLE>

      The Applicable Margin shall be subject to reduction or increase, as
      applicable and as set forth in the table above, on a quarterly basis, as
      measured by Average Availability, as of the end of each Fiscal Quarter
      after the Adjustment Date, based upon the immediately preceding 4 Fiscal
      Quarters of Borrower. Except as set forth in the last sentence hereof, any
      such increase or reduction in the Applicable Margin provided for herein
      shall be effective 3 Business Days after receipt by Agent of Borrower's
      quarterly financial statements and Compliance Certificate; provided,
                                                                 --------
      however, that any reduction in the Applicable Margin shall not apply to
      -------
      any LIBOR Loans outstanding on the effective date of such reduction that
      have an Interest Period commencing prior to the effective date of such
      reduction. If the financial statements and the Compliance Certificate of
      Borrower setting forth the Average Availability are not received by Agent
      by the date required pursuant to Section 9.1.3 of the Agreement, the
      Applicable Margin shall be determined as if the Average Availability was
      less than $2,500,000 until such time as such financial statements and
      Compliance Certificate are received and any Event of Default resulting
      from a failure timely to deliver such financial statements or Compliance
      Certificate is waived in writing by Agent and Lenders; provided, however,
                                                             --------  -------
      that nothing herein shall be deemed to prevent Agent and Lenders from
      charging interest at the Default Rate at any time that an Event of Default
      exists.

  (g) By deleting the definition of Consolidated Net Worth from Appendix A to
the Loan Agreement and by substituting the following new definition in lieu
thereof:

                                       5
<PAGE>

      Consolidated Net Worth - on any date of determination thereof, the sum on
      ----------------------
      such date of (i) the Consolidated net worth of Borrower and its
      Subsidiaries after deducting therefrom the amount of all intangible items
      reflected therein, including all unamortized debt discount and expense,
      unamortized research and development expense, unamortized deferred
      charges, goodwill, patents, trademarks, service marks, trade names,
      copyrights, unamortized excess cost of investment in Subsidiaries over
      equity at dates of acquisition and all similar items that could properly
      be treated as intangibles in accordance with GAAP, (ii) Subordinated Debt,
      (iii) accrued but undeclared Distributions with respect to preferred stock
      as reflected on a Consolidated balance sheet of Borrower and its
      Subsidiaries, (iv) the $35,000,000 investment in Series A redeemable
      preferred stock and warrants of Borrower made by Littlejohn and Quilvest
      on the Closing Date, (v) the $10,000,000 investment in Series B Cumulative
      Pay-in-Kind Convertible Preferred Stock of Borrower by Littlejohn and
      Quilvest on or about August 23, 2000, and (vi) the $2,500,000 investment
      in Series B Cumulative Pay-in-Kind Convertible Preferred Stock of Borrower
      by Littlejohn and/or Quilvest on or before September 23, 2000.

  (h) By deleting the definitions Normal Period Reserve Amount and Slow Period
Reserve Amount from Appendix A to the Loan Agreement and by substituting the
following new definitions in lieu thereof:

      Normal Period Reserve Amount - for each month, or portion thereof, that
      ----------------------------
      the Slow Period Reserve Amount or Interim Period Reserve Amount is not in
      effect, an amount equal to $10,000,000; provided that, commencing April 1,
                                              --------
      2000, and for each month thereafter (other than a month, or portion
      thereof, that the Slow Period Reserve Amount or the Interim Period Reserve
      Amount is in effect), the amount shall be $5,000,000 if the ratio of
      Consolidated Operating Cash Flow to Consolidated Debt Service is equal to
      or greater than 1.25 to 1. The foregoing ratio shall be calculated for a
      period (not to exceed 12 consecutive months) ending on the month preceding
      the month for which the reserve amount is to be determined, but the first
      month of such period shall be February 2000 until March 2001 (at which
      time a rolling 12-month period shall be utilized to calculate the ratio).

      Slow Period Reserve Amount - for any interval of 90 consecutive days
      --------------------------
      selected by Borrower to be effective during the period (other than any
      period in which the Interim Period Reserve Amount is in effect) from
      November 1 of each year through the last day of February of the next
      year, an amount equal to $5,000,000.

                                       6
<PAGE>

  (i) By deleting the reference to "$130,000,000" that is contained in the
definition of "Revolver Commitment" in Appendix A to the Loan Agreement and by
substituting in lieu thereof a reference to "$117,500,000."

  (j) By adding  new definitions of Adjustment Date and Interim Period Reserve
Amount to Appendix A to the Loan Agreement, in proper alphabetical sequence:

      Adjustment Date - November 30, 2001, unless a Default or Event of Default
      ---------------
      exists at such time, in which case, the last day of the first Fiscal
      Quarter following November 30, 2001 at which time no Default or Event
      of Default exists.

      Interim Period Reserve Amount - (i)  $3,000,000 for each month during the
      -----------------------------
      period from August 1, 2000 through February 28, 2001 and (ii) $3,000,000
      for each month during the period from July 1, 2001 through October 31,
      2001.

  (k) By deleting the references to "$130,000,000" that are contained on the
cover page to the Loan Agreement, the first recital thereto, and in the
introductory paragraph of Section 1 of the Loan Agreement and by substituting in
lieu thereof, in each instance, a reference to "$117,500,000."

  (l) By amending the Loan Agreement to reflect the aggregate amount of the
Revolver Commitments as $117,500,000 and the Revolver Commitment of each Lender
as follows:

      (i)   Fleet Capital Corporation - $27,500,000

      (ii)  Foothill Capital Corporation  - $25,000,000

      (iii) Bank of America, N.A - $25,000,000

      (iv)  The CIT Group/Business Credit, Inc. - $25,000,000

      (v)   Wachovia Bank, N.A. - $15,000,000

  3.  Ratification and Reaffirmation.  Borrower hereby ratifies and reaffirms
      ------------------------------
the Obligations, each of the Loan Documents and all of Borrower's covenants,
duties, indebtedness and liabilities under the Loan Documents.

  4.  Acknowledgments and Stipulations.  Borrower acknowledges and stipulates
      ---------------------------------
that the Loan Agreement and the other Loan Documents executed by Borrower are
legal, valid and binding obligations of Borrower that are enforceable against
Borrower in accordance with the terms thereof; all of the Obligations are owing
and payable without defense, offset or counterclaim (and

                                       7
<PAGE>

to the extent there exists any such defense, offset or counterclaim on the date
hereof, the same is hereby waived by Borrower); and the security interests and
Liens granted by Borrower in favor of Agent, for the benefit of itself and
Lenders, are duly perfected, first priority security interests and Liens.

  5.  Representations and Warranties.  Borrower represents and warrants to Agent
      ------------------------------
and Lenders, to induce Agent and Lenders to enter into this Amendment, that no
Default or Event of Default exists on the date hereof; the execution, delivery
and performance of this Amendment have been duly authorized by all requisite
corporate action on the part of Borrower and this Amendment has been duly
executed and delivered by Borrower; and all of the representations and
warranties made by Borrower in the Loan Agreement are true and correct on and as
of the date hereof.

  6.  Amendment Fee.  In consideration of Agent's and Lenders' willingness to
      -------------
enter into this Amendment, Borrower agrees to pay to Agent, for the ratable
benefit of Lenders, an amendment fee of  $146,875 on the date hereof, in
immediately available funds.

  7.  Waiver.   By their signatures below, Agent and Lenders hereby waive any
      ------
Events of Default under Sections 8.1.1, 8.1.2, 8.1.4, 8.1.5, 8.1.20, 9.2.1,
9.2.7, 9.2.11, 9.2.16, 10.2.1, 11.1.3, 12.9.1, 12.9.2, 14.8 and 14.9 of, and any
Schedules to, the Loan Agreement arising from the reincorporation of Pameco
Corporation in the State of Delaware, as described in that certain Assumption
and Amendment Agreement dated as of July 21, 2000, among Borrower, Agent and
Lenders, such waivers to be effective as of July 21, 2000.

  8.  Breach of Amendment.  This Amendment shall be part of the Loan Agreement
      -------------------
and a breach of any representation, warranty or covenant herein shall constitute
an Event of Default.

  9.  Expenses of Agent.  Borrower agrees to pay, on demand, all reasonable
      -----------------
costs and expenses incurred by Agent in connection with the preparation,
negotiation and execution of this Amendment and any other Loan Documents
executed pursuant hereto and any and all amendments, modifications, and
supplements thereto, including, without limitation, the reasonable costs and
fees of Agent's legal counsel and any taxes or expenses associated with or
incurred in connection with any instrument or agreement referred to herein or
contemplated hereby.

  10.  Conditions Precedent.  The effectiveness of the amendments contained in
       ---------------------
Section 2 hereof are subject to the satisfaction of each of the following
conditions precedent, in form and substance satisfactory to Agent and Lenders,
unless satisfaction thereof is specifically waived in writing by Agent and
Lenders:

  (a) Littlejohn and Quilvest shall have made an additional capital contribution
to Borrower of at least $10,000,000 in the aggregate in exchange for shares of
Series B Cumulative Pay-in-Kind Convertible Preferred Stock, and the proceeds of
such capital contribution shall have been applied to the outstanding balance of
the Revolver Loans;

                                       8
<PAGE>

  (b) Agent and Lenders shall have received and found satisfactory in all
respects an appraisal with respect to the Inventory; and

  (c) Borrower, Guarantor and each Lender shall have delivered to Agent an
executed original of this Amendment.

  11.  Effectiveness; Governing Law.  This Amendment shall be effective upon
       ----------------------------
execution by Borrower and acceptance by Agent and Lenders (notice of which
acceptance is hereby waived), whereupon the same shall be governed by and
construed in accordance with the internal laws of the State of Georgia.

  12.  Successors and Assigns.  This Amendment shall be binding upon and inure
       ----------------------
to the benefit of the parties hereto and their respective successors and
assigns.

  13.  No Novation, etc.  Except as otherwise expressly provided in this
       ----------------
Amendment, nothing herein shall be deemed to amend or modify any provision of
the Loan Agreement or any of the other Loan Documents, each of which shall
remain in full force and effect.  This Amendment is not intended to be, nor
shall it be construed to create, a novation or accord and satisfaction, and the
Loan Agreement as herein modified shall continue in full force and effect.

  14.  Counterparts; Telecopied Signatures.  This Amendment may be executed in
       -----------------------------------
any number of counterparts and by different parties to this Amendment on
separate counterparts, each  of which, when so executed, shall be deemed an
original, but all such counterparts shall constitute one and the same agreement.
Any signature delivered by a party by facsimile transmission shall be deemed to
be an original signature hereto.

  15.  Further Assurances.  Borrower agrees to take such further actions as
       ------------------
Agent shall reasonably request from time to time in connection herewith to
evidence or give effect to the amendments set forth herein or any of the
transactions contemplated hereby in accordance with the terms and conditions of
the Loan Documents.

  16.  Section Titles.  Section titles and references used in this Amendment
       --------------
shall be without substantive meaning or content of any kind whatsoever and are
not a part of the agreements among the parties hereto.

  17.  Waiver of Jury Trial.  To the fullest extent permitted by Applicable Law,
       --------------------
the parties hereto each hereby waives the right to trial by jury in any action,
suit, counterclaim or proceeding arising out of or related to this Amendment.

                                       9
<PAGE>

  IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed under seal in Atlanta, Georgia, and delivered by their respective duly
authorized officers on the date first written above.

ATTEST:                                PAMECO CORPORATION

/s/ Richard Martin                     By: /s/ Robert J. Davis
-----------------------------              -------------------------------------
Name: Richard Martin                       Name: Robert J. Davis
      -----------------------                    -------------------------------
Title: VP, Sec., Treas.                    Title: Chief Financial Officer
       ----------------------                     ------------------------------

                                       FLEET CAPITAL CORPORATION, as Agent

                                       By: /s/ Dennis Login
                                           -------------------------------------
                                           Title: Vice President
                                                  ------------------------------

                                       FLEET CAPITAL CORPORATION, as a Lender

                                       By: /s/ Dennis Login
                                           -------------------------------------
                                           Title: Vice President
                                                  ------------------------------

                    [Signatures continued on following page]

                                       10
<PAGE>

                                       FOOTHILL CAPITAL CORPORATION, as a Lender

                                       By:  /s/ Robert Lambara
                                           -------------------------------------
                                           Title: Senior Vice President
                                                  ------------------------------

                                       THE CIT GROUP/BUSINESS CREDIT, INC.,
                                         as a Lender

                                       By:  /s/ Norbert Schmidt
                                           -------------------------------------
                                           Title: AVP
                                                  ------------------------------

                                       BANK OF AMERICA, N.A., as a Lender

                                       By:  /s/ Douglas E. Cowan
                                           -------------------------------------
                                           Title: Vice President
                                                  ------------------------------

                                       WACHOVIA BANK, N.A., as a Lender

                                       By:  /s/ Melissa Phipps
                                           -------------------------------------
                                           Title: Vice President
                                                  ------------------------------

                                       11
<PAGE>

                           CONSENT AND REAFFIRMATION
                           -------------------------

  Each of the undersigned guarantors of the Obligations of Borrower at any time
owing to Agent and Lenders hereby:  (i) acknowledges receipt of a copy of the
foregoing Fourth Amendment to Loan and Security Agreement; (ii) consents to
Borrower's execution and delivery thereof and of the other documents,
instruments or agreements Borrower agrees to execute and deliver pursuant
thereto; (iii) agrees to be bound thereby; and (iv) affirms that nothing
contained therein shall modify in any respect whatsoever its guaranty of the
Obligations and reaffirms that such guaranty is and shall remain in full force
and effect.

  IN WITNESS WHEREOF, each of the undersigned has executed this Consent and
Reaffirmation on the date of such Fourth Amendment to Loan and Security
Agreement.

                                       PAMECO INVESTMENT COMPANY, INC.

                                       By:  /s/ Robert J. Davis
                                           -------------------------------------
                                           Title: Chief Financial Officer
                                                  ------------------------------
                                       Attest:  /s/ Richard Martin
                                               ---------------------------------
                                           Title: VP, Sec., Treas.
                                                  ------------------------------

                                                          [CORPORATE SEAL]

                                       LITTLEJOHN FUND II, L.P.

                                       By: Littlejohn Associates II, L.L.C.,
                                           its General Partner

                                       By:  /s/ [illegible]
                                           -------------------------------------
                                           Title: Manager
                                                  ------------------------------

                                       12

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