Document:

<PAGE>

                                                                    Exhibit 10.3

                             EMPLOYMENT AGREEMENT

                                COINSTAR, INC.

                                      and

                                  JENS MOLBAK

                                                       Dated as of March 19 2001
<PAGE>

                             EMPLOYMENT AGREEMENT

     This Employment Agreement (this "Agreement"), dated as of March 19, 2001,
between Coinstar, Inc., a Delaware corporation ("Employer"), and Jens Molbak
("Employee");

                             W I T N E S S E T H:

     WHEREAS, Employer and Employee wish to document certain understandings and
agreements; and

     WHEREAS, Employer desires to continue to employ Employee upon the terms and
conditions set forth herein; and

     WHEREAS, Employee is willing to provide services to Employer upon the terms
and conditions set forth herein;

                             A G R E E M E N T S:

     NOW, THEREFORE, for and in consideration of the foregoing premises and for
other good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, Employer and Employee hereby agree as follows:

1.   EMPLOYMENT

     Employer will continue to employ Employee and Employee will continue to
provide services to Employer as its Chairman.

2.   ATTENTION AND EFFORT

     Employee will devote all of his productive time, ability, attention and
effort to Employer's business and its subsidiaries and will skillfully serve its
interests during the term of this Agreement.

3.   TERM

     Unless otherwise terminated pursuant to paragraph 6 of this Agreement,
Employee's term of employment under this Agreement shall expire on December 31,
2002.

4.   COMPENSATION

     During the term of this Agreement, Employer agrees to pay or cause to be
paid to Employee, and Employee agrees to accept in exchange for the services
rendered hereunder by him, the following compensation:

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     4.1.  Base Salary

     Employee's compensation shall consist, in part, of an annual base salary of
one hundred thousand dollars ($100,000) before all customary payroll deductions.
Such annual base salary shall be paid in substantially equal installments and at
the same intervals as other officers of Employer are paid. Employee's salary
shall be reviewed annually by Employer's Compensation Committee to determine in
its discretion an appropriate increase in the base salary.

     4.2.  Bonus

     Employee shall be eligible for and receive his annual cash bonus for each
calendar year during the term of this Agreement, provided Employer meets
performance targets applicable to such bonuses, and, provided further, any such
bonus shall be pro-rated in the event of a termination without Cause or for Good
Reason.

5.   BENEFITS

     During the term of this Agreement, Employee will be entitled to
participate, subject to and in accordance with applicable eligibility
requirements, in fringe benefit programs as shall be provided from time to time
by, to the extent required, action of Employer's Board of Directors.

6.   TERMINATION

     Employment of Employee pursuant to this Agreement may be terminated as
follows, but in any case, the provisions of paragraph 8 hereof shall survive the
termination of this Agreement and the termination of Employee's employment
hereunder:

     6.1.  By Employer

     With or without Cause (as defined below), Employer may terminate the
employment of Employee at any time during the term of employment upon giving
Notice of Termination (as defined below).

     6.2.  By Employee

     Employee may terminate his employment at any time, for any reason, upon
giving Notice of Termination.

     6.3.  Automatic Termination

     This Agreement and Employee's employment hereunder shall terminate
automatically upon the death or total disability of Employee. The term "total
disability" as used herein shall mean Employee's inability to perform the duties
set forth in paragraph 1 hereof for a period or periods aggregating 180 calendar
days in any 12-month period as a result of physical or

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mental illness, loss of legal capacity or any other cause beyond Employee's
control, unless Employee is granted a leave of absence by the Employer. Employee
and Employer hereby acknowledge that Employee's ability to perform the duties
specified in paragraph 1 hereof is of the essence of this Agreement. Termination
hereunder shall be deemed to be effective (a) at the end of the calendar month
in which Employee's death occurs or (b) immediately upon a determination by the
Employer of Employee's total disability, as defined herein.

     6.4.  Notice

     The term "Notice of Termination" shall mean at least 30 days' written
notice of termination of Employee's employment, during which period Employee's
employment and performance of services will continue; provided, however, that
Employer may, upon notice to Employee and without reducing Employee's
compensation during such period, excuse Employee from any or all of his duties
during such period. The effective date of the termination of Employee's
employment hereunder shall be the date on which such 30-day period expires.

7.   TERMINATION PAYMENTS

     In the event of termination of the employment of Employee, all compensation
and benefits set forth in this Agreement shall terminate except as specifically
provided in this paragraph 7.

     7.1.  Termination by Employer

     If Employer terminates Employee's employment without Cause prior to the end
of the term of this Agreement, or removes him from its Board of Directors,
Employee shall be entitled to receive (a) termination payments equal to two (2)
times his annual base salary, and (b) any unpaid annual base salary which has
accrued for services already performed as of the date termination of Employee's
employment becomes effective. Such payment shall be provided in equal monthly
installments over a twelve (12) month period, less applicable deductions and tax
withholding, at regular payroll intervals. Employer agrees to continue
Employee's health insurance benefits, including current dependent coverage, for
twelve (12) months following the date the Employee is terminated without Cause.
Thereafter Employee may self-pay health insurance under COBRA if he elects to do
so. All other Employer benefits cease on the date of termination without Cause.
If Employee is terminated by Employer for Cause, Employee shall not be entitled
to receive any of the foregoing benefits, other than those set forth in clause
(b) above. In the event Employee obtains other employment during any salary
continuation period hereunder following a termination without Cause or for Good
Reason, Employer's obligation shall be offset by the amount of salary or pay
received from such other employment.

     7.2.  Termination by Employee

     In the case of the termination of Employee's employment by Employee for
other than Good Reason, Employee shall not be entitled to any payments
hereunder, other than those set

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forth in clause (b) of subparagraph 7.1 hereof. In the case of a termination for
Good Reason, Employee shall be entitled to receive termination payments equal to
two (2) times his annual base salary. Such payment shall be provided in equal
monthly installments over a twelve (12) month period, less applicable deductions
and tax withholding, at regular payroll intervals. Employer agrees to continue
Employee's health insurance benefits, including current dependent coverage, for
twelve (12) months following the date the Employee is terminated for Good
Reason. Thereafter Employee may self-pay health insurance under COBRA if he
elects to do so. All other Employer benefits cease on the date of termination
for Good Reason. For purposes of this Agreement, "Good Reason" means the
occurrence of any of the following events or conditions and the failure of the
Employer to cure such event or condition within 30 days after receipt of written
notice from the Employee:

     (a)  a change in the Employee's status, position or responsibilities
          (including reporting responsibilities) that, in the Employee's
          reasonable judgment, represents a substantial reduction in the status,
          position or responsibilities as in effect immediately prior thereto;
          the assignment to the Employee of any duties or responsibilities that,
          in the Employee's reasonable judgment, are materially inconsistent
          with such status, title, position or responsibilities; or any removal
          of the Employee from or failure to reappoint or reelect the Employee
          to any of such positions, except in connection with the termination of
          the Employee's employment for Cause, as a result of his total
          disability or death, or by the Employee other than for Good Reason;

     (b)  a reduction in the Employee's annual base salary;

     (c)  requiring the Employee (without the Employee's consent) to be based at
          any place outside a 50-mile radius of his place of employment, except
          for reasonably required travel on the Employer's business that is not
          materially greater than such travel requirements prior to the
          effective date of this Agreement;

     (d)  the Employer's failure to (i) continue in effect any material
          compensation or benefit plan (or the substantial equivalent thereof)
          in which the Employee was participating, or (ii) provide the Employee
          with compensation and benefits substantially equivalent (in terms of
          benefit levels and/or reward opportunities) to those provided for
          under each material employee benefit plan, program and practice in
          effect immediately prior to the effective date of this Agreement;

     (e)  any material breach by the Employer of its obligations to the Employee
          under this Agreement; or

     (f)  any purported termination of the Employee's employment or service
          relationship for Cause that is not in accordance with the definition
          of Cause under this Agreement.

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     7.3   Expiration of Term

     In the case of a termination of Employee's employment as a result of the
expiration of the term of this Agreement, Employee shall not be entitled to
receive any payments hereunder, other than those set forth in clause (b) of
subparagraph 7.1 and any bonus to which Employee may be entitled under Section
4.2 hereof.

     7.4   Payment Schedule

     All payments under this paragraph 7 shall be made to Employee at the same
interval as payments of salary were made to Employee immediately prior to
termination.

     7.5   Cause

     Wherever reference is made in this Agreement to termination being with or
without Cause, "Cause" is limited to the occurrence of one or more of the
following events:

          (a) Failure or refusal to carry out the lawful duties of Employee
     described in Section 1 hereof or any directions of the Board of Directors
     of Employer, which directions are reasonably consistent with the duties
     herein set forth to be performed by Employee;

          (b) Violation by Employee of a state or federal criminal law involving
     the commission of a crime against Employer or a felony;

          (c) Current use by Employee of illegal substances; deception, fraud,
     misrepresentation or dishonesty by Employee; any act or omission by
     Employee which substantially impairs Employer's business, good will or
     reputation; or

          (d) Any other material violation of any provision of this Agreement.

8.   NONCOMPETITION AND NONDISCLOSURE

     The nature of Employee's employment with Employer has given Employee access
to trade secrets and confidential information, including information about its
technology and customers. Therefore, during the one (1) year following the
termination of employment without Cause or for Good Reason or for the period of
the severance payment, whichever is less, Employee agrees that he will not
divulge any confidential information or work directly or indirectly (as an
employee, consultant, advisor or owner) for any of the following businesses or
companies and their affiliates: Catalina Marketing Corporation, News America
Marketing, ScanCoin Corporation, Brinks, Inc., planet U and Valassis
Corporation.

     If within one year of the date of termination without Cause or for Good
Reason or for the severance payment period, whichever is less, Employee violates
this Section 8; Employee shall forfeit any remaining termination payments
provided under Section 7.

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9.   REPRESENTATIONS AND WARRANTIES OF EMPLOYEE

     Employee represents and warrants that neither the execution nor the
performance of this Agreement by Employee will violate or conflict in any way
with any other agreement by which Employee may be bound, or with any other
duties imposed upon Employee by corporate or other statutory or common law.

10.  FORM OF NOTICE

     All notices given hereunder shall be given in writing, shall specifically
refer to this Agreement and shall be personally delivered or sent by telecopy or
other electronic facsimile transmission or by registered or certified mail,
return receipt requested, at the address set forth below or at such other
address as may hereafter be designated by notice given in compliance with the
terms hereof:

     If to Employee:   Jens Molbak
                       ---------------------
                       Bellevue, Washington

     If to Employer:   Coinstar, Inc.
                       1800  114th Avenue SE
                       Bellevue, WA  98004

     Copy to:          Perkins Coie
                       Attn:  Stephanie Daley-Watson
                       1201 Third Ave., 40th Floor
                       Seattle, WA  98101-3099

If notice is mailed, such notice shall be effective upon mailing, or if notice
is personally delivered or sent by telecopy or other electronic facsimile
transmission, it shall be effective upon receipt.

11.  ASSIGNMENT

     This Agreement is personal to Employee and shall not be assignable by
Employee. Employer may assign its rights hereunder to (a) any corporation or
other entity resulting from any merger, consolidation or other reorganization to
which Employer is a party or (b) any corporation, partnership, association or
other person to which Employer may transfer all or substantially all of the
assets and business of Employer existing at such time. All of the terms and
provisions of this Agreement shall be binding upon and shall inure to the
benefit of and be enforceable by the parties hereto and their respective
successors and permitted assigns.

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12.   WAIVERS

     No delay or failure by any party hereto in exercising, protecting or
enforcing any of its rights, titles, interests or remedies hereunder, and no
course of dealing or performance with respect thereto, shall constitute a waiver
thereof. The express waiver by a party hereto of any right, title, interest or
remedy in a particular instance or circumstance shall not constitute a waiver
thereof in any other instance or circumstance. All rights and remedies shall be
cumulative and not exclusive of any other rights or remedies.

13.  ARBITRATION

     Any controversies or claims arising out of or relating to this Agreement
shall be fully and finally settled by arbitration in accordance with the
Commercial Arbitration Rules of the American Arbitration Association then in
effect (the "AAA Rules"), conducted by one arbitrator either mutually agreed
upon by Employer and Employee or chosen in accordance with the AAA Rules, except
that the parties thereto shall have any right to discovery as would be permitted
by the Federal Rules of Civil Procedure for a period of 90 days following the
commencement of such arbitration and the arbitrator thereof shall resolve any
dispute which arises in connection with such discovery. The prevailing party
shall be entitled to costs, expenses and reasonable attorneys' fees, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof. This provision shall not preclude Employer from
seeking court enforcement or relief based upon an alleged violation of
Employee's obligations under any noncompetition or non-disclosure agreement.

14.  AMENDMENTS IN WRITING

     No amendment, modification, waiver, termination or discharge of any
provision of this Agreement, nor consent to any departure therefrom by either
party hereto, shall in any event be effective unless the same shall be in
writing, specifically identifying this Agreement and the provision intended to
be amended, modified, waived, terminated or discharged and signed by Employer
and Employee, and each such amendment, modification, waiver, termination or
discharge shall be effective only in the specific instance and for the specific
purpose for which given. No provision of this Agreement shall be varied,
contradicted or explained by any oral agreement, course of dealing or
performance or any other matter not set forth in an agreement in writing and
signed by Employer and Employee.

15.  APPLICABLE LAW

     This Agreement shall in all respects, including all matters of
construction, validity and performance, be governed by, and construed and
enforced in accordance with, the laws of the state of Washington, without regard
to any rules governing conflicts of laws.

16.  SEVERABILITY

     If any provision of this Agreement shall be held invalid, illegal or
unenforceable in any jurisdiction, for any reason, including, without
limitation, the duration of such provision,

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its geographical scope or the extent of the activities prohibited or required by
it, then, to the full extent permitted by law (a) all other provisions hereof
shall remain in full force and effect in such jurisdiction and shall be
liberally construed in order to carry out the intent of the parties hereto as
nearly as may be possible, (b) such invalidity, illegality or unenforceability
shall not affect the validity, legality or enforceability of any other provision
hereof, and (c) any court or arbitrator having jurisdiction thereover shall have
the power to reform such provision to the extent necessary for such provision to
be enforceable under applicable law.

17.  HEADINGS

     All headings used herein are for convenience only and shall not in any way
affect the construction of, or be taken into consideration in interpreting, this
Agreement.

18.  COUNTERPARTS

     This Agreement, and any amendment or modification entered into pursuant to
paragraph 14 hereof, may be executed in any number of counterparts, each of
which counterparts, when so executed and delivered, shall be deemed to be an
original and all of which counterparts, taken together, shall constitute one and
the same instrument.

19.  ENTIRE AGREEMENT

     This Agreement on and as of the date hereof constitutes the entire
agreement between Employer and Employee with respect to the subject matter
hereof and all prior or contemporaneous oral or written communications,
understandings or agreements between Employer and Employee with respect to such
subject matter, with the exceptions of [any noncompetition or non-disclosure
agreement], are hereby superseded and nullified in their entireties.

     IN WITNESS WHEREOF, the parties have executed and entered into this
Agreement on the date set forth above.

                                       COINSTAR, INC.

 /s/ Jens Molbak                       By  /s/  William Ruckelshaus
---------------------------              ----------------------------
JENS MOLBAK
                                       Its
                                          ----------------------------

                                       8<PAGE>

                                                                   Exhibit 10(a)

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

     This Fourth Amendment to Amended and Restated Loan and Security Agreement
(this "AMENDMENT") is made this 1st day of May, 2001, as of April 12, 2001 (the
"EFFECTIVE DATE"), by and among Berger Financial Corp. ("BFC"), a Delaware
corporation, Berger Bros Company ("BBC"), a Pennsylvania corporation  and Berger
Holdings, Ltd. ("BHL"), a Pennsylvania corporation, each with its chief
executive office at 805 Pennsylvania Boulevard, Feasterville, Pennsylvania
19053, CopperCraft, Inc. ("CCI"), a Texas corporation having its chief executive
office at 4995 Keller Haslet Road, Keller, Texas 76244, Walker Metal Products,
Inc. ("WALKER"), a Georgia corporation having its chief executive office at 1210
Dalton Road NE, Atlanta, Georgia 30306, and Summit Business Capital Corp.
("LENDER"), a New Jersey corporation, successor to Summit Bank ("Summit"),
having offices at 4900 Route 70, Pennsauken, New Jersey 08109-4792.  BFC, BBC,
CCI and Walker are hereinafter collectively referred to and jointly and
severally obligated as "BORROWER."  Borrower and BHL are hereinafter
collectively referred to and jointly and severally obligated as "OBLIGORS."

                                 BACKGROUND
                                 ----------

A.  Pursuant to the terms and subject to the conditions set forth in that
certain Amended and Restated Loan and Security Agreement dated January 2, 1998
between Borrower and Summit, as amended pursuant to the terms and subject to the
conditions set forth in that certain Amendment to Amended and Restated Loan and
Security Agreement dated December 7, 1998 between Borrower and Summit, that
certain Second Amendment to Amended and Restated Loan and Security Agreement
(the "SECOND AMENDMENT") dated December 20, 1999 between Obligors and Summit,
that certain letter amendment dated January 20, 2000 among Obligors (other than
CCI and Walker) and Summit, that certain letter agreement dated February 28,
2000 among Obligors (other than CCI and Walker) and Summit, that certain Joinder
and Assumption Agreement dated March 31, 2000 among Obligors (other than Walker)
and Summit, pursuant to which CCI joined, assumed in the Financing Agreements
and agreed to be liable for the Obligations, that certain Joinder and Assumption
Agreement dated October 31, 2000 among Obligors and Summit pursuant to which
Walker joined in the Financing Agreements, assumed and agreed to be liable for
the Obligations and that certain Third Amendment to Amended and Restated Loan
and Security Agreement dated October 31, 2000 among Obligors and Summit (as
amended, the "LOAN AGREEMENT"), and related instruments, agreements and
documents including, without limitation, the Surety Agreement (collectively,
along with the Loan Agreement, the "FINANCING AGREEMENTS"), Obligors are
currently indebted to Lender for repayment of (i) various loans, advances and
extensions of credit made pursuant to a revolving credit facility made available
by Lender to Borrower in a principal sum of up to Fifteen Million
($15,000,000.00) Dollars (the "REVOLVING CREDIT"), which indebtedness is further
evidenced by that certain Third Replacement Revolving Credit Note dated October
31, 2000 in the principal sum of Fifteen Million ($15,000,000.00) Dollars
executed and delivered by Borrower to Lender
<PAGE>

(the "REVOLVING CREDIT NOTE"); (ii) a term loan made by Lender to Borrower in
the principal sum of Two Million Four Hundred Thousand ($2,400,000.00) Dollars
(the "TERM LOAN"), which indebtedness is further evidenced by that certain
Second Replacement Term Loan Note dated December 20, 1999 in the principal sum
of One Million Eight Hundred Sixty-Eight Thousand and Four ($1,868,004.00)
Dollars executed and delivered by Borrower to Lender (the "TERM LOAN NOTE"), and
(iii) a supplemental term loan made by Lender to Borrower in the principal sum
of Two Million ($2,000,000.00) Dollars (the "SUPPLEMENTAL TERM LOAN"), which
indebtedness is further evidenced by that certain Supplemental Term Loan Note
dated December 20, 1999 in the principal sum of Two Million ($2,000,000.00)
Dollars executed and delivered by Borrower to Lender (the "SUPPLEMENTAL TERM
LOAN NOTE"), (iv) an acquisition line loan made by Lender to Borrower in the
principal sum of One Hundred Sixty-Four Thousand Seven Hundred Thirty-Five
($164,735.00) Dollars (the "ACQUISITION LINE LOAN"), which indebtedness is
evidenced by that certain Acquisition Line Term Loan Note dated March 31, 2000
in the principal sum of One Hundred Sixty-Four Thousand Seven Hundred Thirty-
Five ($164,735.00) Dollars executed and delivered by Borrower to Lender (the
"ACQUISITION LINE TERM LOAN NOTE") and (v) a second acquisition line loan made
by Lender to Borrower in the principal sum of Three Hundred Eighty Four Thousand
Four Hundred Eighty Eight ($384,488.00) Dollars (the "SECOND ACQUISITION LINE
LOAN"), which indebtedness is evidenced by that certain Second Acquisition Line
Term Loan Note in the principal sum of Three Hundred Eighty Four Thousand Four
Hundred Eighty Eight ($384,488.00) Dollars executed and delivered by Borrower to
Lender (the "SECOND ACQUISITION LINE TERM LOAN NOTE"). The Revolving Credit
Note, the Term Loan Note, the Supplemental Term Loan Note, the Acquisition Line
Term Loan Note and the Second Acquisition Line Term Loan Note are hereinafter
collectively referred to as the "NOTES."

B.  To induce Lender to enter into the Financing Agreements, pursuant to the
terms and subject to the conditions set forth in certain Amended and Restated
Surety Agreement dated January 2, 1998 executed and delivered by BHL to Lender
(the "SURETY AGREEMENT"), BHL guaranteed, as a surety, all existing and future
debts, liabilities and obligations of Borrower to Lender including, without
limitation, the debts, liabilities and obligations evidenced by the Existing
Notes.  To secure BHL's indebtedness to Lender as a surety for the debts,
liabilities and obligations of Borrower to Lender, pursuant to a certain
Security Agreement dated August 21, 1997 between BHL and Lender, BHL granted
Lender continuing liens on and security interests in and to all of BHL's
existing and future accounts, chattel paper, contracts, documents, equipment,
fixtures, general intangibles, goods, instruments, inventory, investment
property and the cash and non-cash proceeds thereof, all as more fully described
in such Security Agreement.

C.  All capitalized terms not otherwise defined in this Amendment shall have the
meanings ascribed to such terms in the Loan Agreement.

D.     Borrower has requested that Lender, among other things, (i) reduce the
Revolving Credit and the Maximum Line Amount thereunder to Twelve Million
($12,000,000.00) Dollars, (ii) extend the time during which Permitted
Overadvances may be outstanding, (iii) temporarily increase the percentage
advance rate applicable to Loans under the Revolving Credit based on the value
of Eligible Inventory, and (iii) permit Borrower to repay the Acquisition Line

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<PAGE>

Overadvances made by Lender to Borrower in connection with Borrower's
acquisition of Walker on a term basis, and Bank is willing to so accommodate
Borrower in accordance with the terms and subject to the conditions set forth in
this Amendment and in the instruments, agreements and documents referred to in
this Amendment.

     NOW, THEREFORE, with the foregoing background deemed incorporated
hereinafter by this reference and hereby made a part hereof, the parties hereto,
intending to be legally bound hereby, further covenant and agree as follows:

1.  CONFIRMATION OF EXISTING INDEBTEDNESS.  Obligors hereby unconditionally
    -------------------------------------
acknowledge and confirm that:  (a) the unpaid principal indebtedness of Borrower
to Lender evidenced by the Revolving Credit Note is, as of April 11, 2001, Eight
Million Five Hundred Nineteen Thousand ($8,519,000.00) Dollars; (b) interest on
the outstanding principal balance of the Revolving Credit has been paid through
March 31, 2001; (c) the unpaid principal indebtedness of Borrower to Lender
evidenced by the Term Loan Note is, as of April 11, 2001, One Million One
Hundred Fifty-Eight Thousand Seven Hundred Sixty-One ($1,158,761.00) Dollars;
(d) interest on the outstanding principal balance of the Term Loan has been paid
through March 31, 2001; (e) the unpaid principal indebtedness of Borrower to
Lender evidenced by the Supplemental Term Loan is, as of April 11, 2001, One
Million Two Hundred Twelve Thousand Two Hundred ($1,212,200.00) Dollars; (f)
interest on the outstanding principal balance of the Supplemental Term Loan Note
as in paid through March 31, 2001; (g) the unpaid principal indebtedness of
Borrower to Lender evidenced by the Acquisition Line Term Loan Note is, as of
April 11, 2001, One Hundred Thirty-One Thousand Seven Hundred Eighty-Eight
($131,788.00) Dollars; (h) interest on the outstanding principal balance of the
Acquisition Line Term Loan Note as been paid through March 31, 2001; (i) the
unpaid principal indebtedness of Borrower to Lender evidenced by the Second
Acquisition Line Term Loan Note is, as of April 11, 2001, Three Hundred Fifty-
Two Thousand Four Hundred Seventy-Seven ($352,477.00) Dollars; (j) interest on
the outstanding principal balance of the Second Acquisition Line Term Loan Note
has been paid through March 31, 2001; and (k) the foregoing sums, together with
continually accruing interest and any related costs, fees and expenses are, as
of the date hereof, owing without claim, counterclaim, right of recoupment,
defense or set off of any kind or of any nature whatsoever.

2.  RATIFICATION OF FINANCING AGREEMENTS.  Obligors hereby ratify, confirm and
    ------------------------------------
reaffirm in all respects and without condition, all of the terms, covenants and
conditions set forth in the Financing Agreements, and hereby agree that each of
them remain unconditionally liable to Lender in accordance with the respective
terms, covenants and conditions of such instruments, agreements and documents,
and that all Collateral, liens, security interests and pledges created pursuant
thereto and/or referred to therein continue unimpaired and in full force and
effect, and secure and shall continue to secure all of the Obligations.

3.  WARRANTIES AND REPRESENTATIONS.
    ------------------------------

     (a)  Except as qualified on Schedule 3(a) attached hereto and incorporated
     herein by this reference, all warranties and representations set forth in
     the Loan Agreement and

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<PAGE>

     the Surety Agreement are hereby respectively asserted, reasserted, stated
     and restated by Borrower and BHL (as applicable) as of the date hereof as
     if the same were set forth at length herein. Obligors acknowledge that such
     warranties and representations (and the warranties and representations set
     forth herein) are being specifically relied upon by Lender as a material
     inducement to Lender to enter into this Amendment.

     (b) As a further inducement to Lender to enter into this Amendment,
     Obligors further represent and warrant to Lender that:

         (i)  Each Obligor has the power, authority and capacity to enter into
     and perform this Amendment and all related instruments, agreements and
     documents, and to incur the Obligations herein and therein provided for,
     and such Obligor has taken all proper and necessary corporate action to
     authorize the execution, delivery and performance of this Amendment and
     related instruments, agreements and documents;

         (ii)  This Amendment is, and the Acquisition Line Overadvance Note and
     the Fourth Replacement Revolving Credit Note (each as hereinafter defined)
     and the other Financing Agreements, when executed and delivered by Borrower
     to Lender, will be valid, binding and enforceable against each Obligor in
     accordance with their respective terms;

         (iii)  No consent, approval or authorization of, or filing,
     registration or qualification with, any Person (including any holder of
     Subordinated Indebtedness or of liens on Collateral) is required to be
     obtained by any Obligor in connection with the execution and delivery of
     this Amendment and the instruments, agreements and documents referred to in
     this Amendment; and

         (iv)  No Event of Default or Potential Default has occurred under the
     Financing Agreements.

4.  AMENDMENTS TO LOAN AGREEMENT.  Under the terms and subject to the conditions
    ----------------------------
set forth in this Amendment, the Loan Agreement and the other Financing
Agreements are hereby amended as follows:

          (a) There shall no longer be availability under the Acquisition Line
Facility; Obligations outstanding under the Acquisition Line Facility shall be
paid in accordance with their terms and the principal Obligations thereunder
shall continue to be Loans under the Revolving Credit.  No further loans,
advances or extensions of credit under the Acquisition Line Facility shall be
considered or made; provided, however, that Lender may, in its exclusive
discretion, consider (on a case by case basis) requests for Loans for
acquisitions by Borrower.

          (b) The Revolving Credit is hereby permanently reduced to the sum of
up to Twelve Million ($12,000,000.00) Dollars and the Maximum Line Amount is
hereby permanently reduced to Twelve Million ($12,000,000.00) Dollars.
Principal Obligations outstanding under the Revolving Credit in excess of Twelve
Million ($12,000,000.00) Dollars shall be paid concurrently with the execution
and exchange of this Amendment.

                                       4
<PAGE>

          (c) As of the Effective Date, Paragraph 1.5.2 of the Loan Agreement
is hereby amended and restated to read in its entirety as follows:

                    1.5.2  An amount up to the sum of (a) eighty-five (85%)
               percent of the net outstanding amount of Eligible Accounts, after
               deducting therefrom all payments, adjustments and credits
               applicable thereto, and (b) the lesser of (i) sixty (60%) percent
               of the value (determined on the basis of the lower of cost or
               market value) of Eligible Inventory for period from April 12,
               2001 through June 30, 2001 and fifty (50%) percent on July 1,
               2001 and at all times thereafter, and (ii) Four Million Five
               Hundred Thousand ($4,500,000.00) Dollars.  The foregoing
               percentage advance rates are subject to periodic examination and
               analysis by Lender and, as a result thereof, and in Lender's
               discretion exercised reasonably and in good faith, are subject to
               change.

          (d)  Paragraph 1.29 of the Loan Agreement is hereby amended to
include within the definition of "NOTES" any Instruments evidencing Obligations
including, without limitation, the Fourth Replacement Revolving Credit Note, the
Acquisition Line Overadvance Note and any instruments, agreements and documents
executed and/or delivered in replacement or substitution or modification
thereof.

          (e)  Notwithstanding anything to the contrary set forth in Paragraph
2.4 of the Loan Agreement and Subparagraph 4(d) of the Second Amendment, and in
addition to the permitted Acquisition Line Overadvances described at Paragraph 6
of the Second Amendment, so long as there has occurred no Event of Default or
any Potential Default which is continuing, for the period from the date hereof
through and including June 30, 2001, the Revolving Credit may include loans,
advances and extensions of credit in excess of the Borrowing Base (collectively,
the "PERMITTED OVERADVANCES") in an aggregate amount of up to Five Hundred
Thousand ($500,000.00) Dollars; provided, however, at no time shall the amount
                                --------  -------
outstanding under the Revolving Credit exceed the Maximum Line Amount. If at any
time the Permitted Overadvances shall, for any reason, exceed Five Hundred
Thousand ($500,000.00) Dollars, Borrower shall immediately repay to Lender such
amount as may be necessary to eliminate such excess, and on July 1, 2001, no
Permitted Overadvances shall be outstanding.

          (f)  Lender hereby agrees that the mandatory pre-payment of the
Obligations to be made on or before April 15 of each year pursuant to Paragraph
8 of the Second Amendment for Borrower's fiscal year ending December 31, 2000
(but not any subsequent year) is hereby deferred to, and is payable on,
September 30, 2001.

          (g)  Subparagraph 6.3.1 of the Loan Agreement is hereby amended and
restated as follows:

          6.3.1   Borrower and Surety shall at all times maintain a ratio of
          Senior Liabilities (defined to be all Liabilities minus the long-term
          portion of Subordinated Indebtedness) to Tangible Capital Funds

                                       5
<PAGE>

          (defined to be Tangible Net Worth plus the long-term portion of
          Subordinated Indebtedness) of not more than: 4.00 to 1.00 at June 30,
          2001; 3.50 to 1.00 at September 30, 2001; and 3.00 to 1.00 on December
          31, 2001 and on the last day of each fiscal quarter of Borrower
          thereafter.

5.  ACQUISITION LINE OVERADVANCE NOTE.  To evidence Borrower's obligations to
    ---------------------------------
repay Lender, with interest, the Acquisition Line Overadvance under the
Revolving Credit in the principal sum of Seven Hundred Fifty Thousand
($750,000.00) Dollars made by Lender to Borrower in connection with the
acquisition of Walker, in accordance with the provisions of Paragraph 6 of the
Second Amendment, Borrower shall execute and deliver to Lender its promissory
note (the "ACQUISITION LINE OVERADVANCE NOTE") in the principal sum of Seven
Hundred Fifty Thousand ($750,000.00) Dollars, all as more fully described in the
Acquisition Line Overadvance Note, the terms, covenants and conditions of which
are hereby deemed incorporated herein by this reference and made a part hereof.

6.  FOURTH REPLACEMENT REVOLVING CREDIT NOTE.  To evidence Borrower's
    ----------------------------------------
obligations to repay Lender, with interest, for Loans under the Revolving Credit
as hereby reduced, Borrower shall execute and deliver to Lender its promissory
note (the "Fourth Replacement Revolving Credit Note") in the principal sum of
Twelve Million ($12,000,000.00) Dollars, all as more fully described in the
Fourth Replacement Revolving Credit Note, the terms, covenants and conditions of
which are hereby deemed incorporated herein by this reference and made a part
hereof.

7.  CONDITIONS PRECEDENT.  Lender's obligations under this Amendment are subject
    --------------------
to the following conditions precedent (all instruments, agreements and documents
to be in form and substance satisfactory to Lender and its counsel):

   (a)  Borrower shall duly execute and/or deliver, or cause to be duly executed
and/or delivered, to Lender the following:

        (i)  This Amendment;

        (ii)  The Acquisition Line Overadvance Note;

        (iii)  The Fourth Replacement Revolving Credit Note;

        (iv)  A certified (as of the date of this Amendment) copy of
resolutions of each Obligor's board of directors authorizing the execution,
delivery and performance of this Amendment;

        (v)  A certificate (as of the date of this Amendment) of each Obligor's
corporate secretary as to the incumbency and signatures of the officers of
such Obligor executing this Amendment; and

                                       6
<PAGE>

        (vi)  Such other instruments, agreements and documents as Lender may
reasonably require.

   (b)  No Event of Default or Potential Default shall have occurred and be
continuing.

8.  NO WAIVER OF DEFAULTS.  This Amendment is not and shall not be deemed to be
    ---------------------
a waiver of any defaults or Events of Default or Potential Defaults which may
now exist or hereafter occur under the Financing Agreements.

9.  INTEGRATED AGREEMENT.  This Amendment and all of the instruments, agreements
    --------------------
and documents executed and/or delivered or to be executed and/or delivered in
conjunction with this Amendment shall be effective upon the date of execution
hereof and thereof by all parties hereto and thereto, and shall be deemed
incorporated into and made a part of the Financing Agreements.  All such
instruments, agreements and documents, and this Amendment, shall be construed as
integrated and complementary of each other, and as augmenting and not
restricting Lender's rights, remedies, benefits and security.  If, after
applying the foregoing, an inconsistency still exists, the provisions of this
Amendment shall constitute an amendment thereto and shall govern and control.

10.  EXPENSES OF LENDER.  Borrower shall pay all expenses (including the
     ------------------
reasonable fees and expenses of legal counsel to Lender) relating to
preparation, negotiation, administration and enforcement of this Amendment and
the Financing Agreements.

11.  GOVERNING LAW.  This Amendment shall be governed by and construed and
     -------------
interpreted in accordance with the laws of the Commonwealth of Pennsylvania.

12.  SEAL.  This Amendment is intended to take effect as an instrument under
     ----
seal.

                                       7
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to Loan
and Security Agreement to be duly executed and delivered the day and year first
above written, as of April 12, 2001.

Attest:                             BERGER FINANCIAL CORP.,
                                    a Delaware corporation

By: /s/ Theodore A. Schwartz          By: /s/ Joseph F. Weiderman
   -----------------------------         ----------------------------
   Theodore A. Schwartz                  Joseph F. Weiderman,
   Chief Executive Officer               President

             [Corporate Seal]

Attest:                             BERGER BROS COMPANY,
                                    a Pennsylvania corporation

By: /s/ Theodore A. Schwartz          By: /s/ Joseph F. Weiderman
   -----------------------------         ----------------------------
   Theodore A. Schwartz                  Joseph F. Weiderman,
   Chief Executive Officer               President

             [Corporate Seal]

Attest:                             BERGER HOLDINGS, LTD.,
                                    a Pennsylvania corporation

By: /s/ Theodore A. Schwartz          By: /s/ Joseph F. Weiderman
   -----------------------------         ----------------------------
   Theodore A. Schwartz                  Joseph F. Weiderman,
   Chief Executive Officer               President

             [Corporate Seal]

                      [SIGNATURES CONTINUED ON NEXT PAGE]

                                       8
<PAGE>

                   [SIGNATURES CONTINUED FROM PREVIOUS PAGE]

Attest:                             COPPERCRAFT, INC.,
                                    a Texas corporation

By: /s/ Theodore A. Schwartz          By: /s/ Joseph F. Weiderman
   -----------------------------         ----------------------------
   Theodore A. Schwartz                  Joseph F. Weiderman,
   Chief Executive Officer               President

      [Corporate Seal]

Attest:                             WALKER METAL PRODUCTS, INC.,
                                    a Georgia corporation

By: /s/ Theodore A. Schwartz          By: /s/ Joseph F. Weiderman
   -----------------------------         ----------------------------
   Theodore A. Schwartz                  Joseph F. Weiderman,
   Chief Executive Officer               President

       [Corporate Seal]
                                    SUMMIT BUSINESS CAPITAL CORP.

                                    By: /s/ Linda Serinese
                                       ------------------------------
                                       Linda Serinese,
                                       Vice President

                                       9

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