Document:

<PAGE>

                     SECOND AMENDMENT TO CREDIT AGREEMENT

        THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this "Second Amendment") is
made as of April 19th, 2001, by and among MARKETING SPECIALISTS CORPORATION
("Borrower") and FIRST UNION NATIONAL BANK, as Agent ("Agent") and as sole
Lender thereunder ("First Union").

                                   BACKGROUND

        A.      Pursuant to a Second Amended and Restated Credit Agreement
dated as of March 30, 2000 (as the same may be modified and amended from time
to time, including by the First Amendment dated as of November 17, 2000, and
by this Second Amendment, the "Credit Agreement"), First Union amended and
restated credit previously extended to Borrower in the form of a $35,000,000
term loan.

        B.      On January 26, 2001, February 1, 2001, March 5, 2001 and March
30, 2001, MS Acquisition Limited (the "Purchaser") contributed, respectively,
$3,000,000, $3,500,000, $2,500,000 and $2,000,000 in equity to the Borrower
(the "Capital Contributions").

        C.      In consideration of the Capital Contributions, Borrower has
agreed to issue (the "Issuance") eleven thousand (11,000) shares of its Series
C Convertible Paid-In-Kind Preferred Stock (the "Equity Interests") to the
Purchaser pursuant to a Preferred Stock Purchase Agreement to be dated no
later than May 31, 2001 between the Borrower and the Purchaser (the "Preferred
Stock Agreement").

        D.      Borrower has requested modifications to certain terms and
provisions of the Credit Agreement and waiver of certain Events of Default, to
which First Union  is willing to agree on the terms and subject to the
condition set forth herein.

        E.      The Borrower and the Guarantors signatory hereto (each a
"Company," and collectively, the "Companies") are party to that certain Credit
Agreement dated March 30, 2000 (as amended from time to time, the "Revolver")
with the lenders identified therein ("Revolver Lenders") and The Chase
Manhattan Bank, as agent (the "Revolver Agent").

        F.      The Companies have advised the Revolver Agent and the Revolver
Lenders that "Events of Default" have occurred under:  (i) Section 11.1(d) of
the Revolver as a result of the Companies' failure to comply with the covenant
set forth in Section 8.1(a) of the Revolver for the Fiscal Year ended December
31, 2000; (ii) Section 11.1(e) of the Revolver as a result of the Companies'
failure to deliver certain items to the Revolver Agent by March 15, 2001 as
required by Section 4.6 of the Second Amendment to the Revolver; and (iii)
Section 11.1(j) of the Revolver as a result of the "Term Defaults" described
below (collectively the "Revolver Covenant Defaults" and the covenants
described in this clause F., herein the "Violated Revolver Covenants").  In
accordance with the Revolver, the Companies have requested that the Revolver
Agent and the Revolver Lenders waive the Revolver Covenant Defaults.

        G.      The Revolver Covenant Defaults constitute an existing Event of
Default under Paragraph 7.1(c) of the Credit Agreement.  The Revolver Covenant
Defaults, together with any cross defaults under the Revolver arising out of
Defaults under the Credit Agreement, are herein referred to as the "Existing
Revolver Defaults."

        H.      The Borrower has advised the Agent that "Events of Default"
have occurred under Paragraph 2.7(b)(i)(C) of the Credit Agreement as a result
of the Borrower's failure to pay the net cash proceeds of the

<PAGE>

Capital Contributions to the Agent for the benefit of the Lenders (the
"Violated Term Covenant") which Event of Default, together with the existing
Event of Default under Section 7.1(c) of the Credit Agreement, are herein
referred to as the "Term Defaults."

        I.      The Companies have requested that the Revolver Lenders (a)
waive the Existing Revolver Defaults, (b) decrease the Minimum EBITDA amount
required as of March 31, 2001 (the "Minimum EBITDA Amendment"); (c) amend the
method of calculating the Borrowing Base and the advance percentage under the
Revolver (the "Borrowing Base Amendment"); and (d) make certain other
amendments to the Revolver (together with the Minimum EBITDA Amendment and the
Borrowing Base Amendment, the "Revolver Amendments"), all pursuant to a Third
Amendment to Credit Agreement dated as of the date hereof (the "Third Revolver
Amendment"), in order that the Companies will be in compliance with the terms
and covenants of the Revolver.

        J.      Pursuant to Section 2.20(a) of the Intercreditor Agreement
dated as of March 30, 2000 (the "Intercreditor Agreement"), among the
Companies, the Revolver Agent and the Agent, the approval of the Required
Lenders (as defined in the Intercreditor Agreement) is required to adopt the
Borrowing Base Amendment.

        K.      The Borrower has requested that First Union: (a) consent to
the Minimum EBITDA Amendment and the Borrowing Base Amendment; (b) amend the
Credit Agreement to reflect the terms of the Revolver Amendments; and (c)
waive the Term Defaults.

                NOW, THEREFORE, in consideration of the foregoing premises and
for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, and intending to be legally bound hereby, the
parties hereto agree as follows.

                1.      DEFINITIONS

                (a)     GENERAL RULE.  Unless otherwise defined herein, terms
used herein which are defined in the Credit Agreement shall have the
respective meanings assigned to them in the Credit Agreement.

                (b)     AMENDED DEFINITION.  The following definition
contained in Section 1.1 of the Credit Agreement is hereby amended and
restated to read in its entirety as follows:

     "EBITDA" means, for any period and any Person, the total of the
     following, each calculated without duplication for such Person on a
     consolidated basis for such period:  (a) Net Income; plus (b) any
     provision for (or less any benefit from) income or franchise taxes
     included in determining Net Income; plus (c) interest expense deducted in
     determining Net Income; plus (d) amortization and depreciation expense
     deducted in determining Net Income; provided that, with respect to the
     Borrower, such amortization includes the impairment write-off of
     approximately $307,000,000 recorded in the Fiscal Quarter ended December
     31, 2001.

                2.      AMENDMENT TO PARAGRAPH 5.3.  Paragraph 5.3 of the
     Credit Agreement is amended to read in its entirety as follows:

                                5.3     ANNUAL FINANCIAL STATEMENTS.  Furnish
                                to each Lender within ninety (90) days after
                                the close of each Fiscal Year audited
                                consolidated and consolidating annual
                                financial statements, including the
                                information required under Paragraph 5.2
                                hereof, which financial statements shall be
                                prepared in accordance with GAAP and shall be
                                certified without

                                        -2-
<PAGE>

                                qualification (and without comment as to the
                                accountant's opinion whether the Borrower is a
                                going concern or can in the future continue to
                                be a going concern; provided, however, that
                                qualifications with respect to changes in GAAP
                                as to which Borrower's independent certified
                                public accountants have concurred shall be
                                permitted) by an independent certified public
                                accounting firm reasonably satisfactory to
                                Agent; and cause Agent to be furnished, at the
                                time of the completion of the annual audit,
                                with copies of any management letters prepared
                                by such accountants and with a certificate
                                signed by such accountants to the effect that
                                to the best of their knowledge there exists no
                                Event of Default or Default hereunder;
                                provided that the annual audit report
                                delivered for the Fiscal Year ended December
                                31, 2000 may contain the accountant's comment
                                that there is substantial doubt about the
                                Borrower's ability to continue as a going
                                concern.

                3.      AMENDMENT TO PARAGRAPH 5.16.  Paragraph 5.16 of the
     Credit Agreement is amended to read in its entirety as follows:

                                5.16    MINIMUM EBITDA.  As of each date set
                                forth in the table below, Borrower shall cause
                                its EBITDA calculated for the four (4) Fiscal
                                Quarters then ended (or, if as of such date
                                less than four (4) Fiscal Quarters have
                                elapsed since September 30, 2000, then for the
                                Fiscal Quarters that have completely elapsed
                                since September 30, 2000), to be not less than
                                the amount set forth below opposite the
                                applicable date:

<TABLE>
<CAPTION>
        ===========================================================
                      Date                        Amount
        ===========================================================
<S>                                             <C>
                December 31, 2000               $ 9,000,000
        -----------------------------------------------------------
                March 31, 2001                  $14,250,000
        -----------------------------------------------------------
                June 30, 2001                   $25,400,000
        -----------------------------------------------------------
                September 30, 2001              $34,000,000
        -----------------------------------------------------------
                December 31, 2001               $39,000,000
        ===========================================================
</TABLE>
                4.      AMENDMENTS TO PARAGRAPHS 5.17 AND 5.18.  Each of
     Paragraphs 5.17 and 5.18 of the Credit Agreement are amended to add a new
     sentence immediately after the table contained therein to read in its
     entirety as follows:

                                If the EBITDA of Borrower for the two (2)
                                Fiscal Quarters ended March 31, 2001 is equal
                                to or greater than $14,250,000, then
                                compliance with this covenant for the Fiscal
                                Quarter ended March 31, 2001 is not required
                                but shall be required with respect to all
                                other Fiscal Quarters.

                5.      CONDITIONS.  The effectiveness of this Second
     Amendment is subject to the conditions precedent that no Default or Event
     of Default (other than the Term Defaults) and no event or condition that
     would have a Material Adverse Effect shall exist as of the effective date
     hereof and the Agent shall have received all of the following, all in
     form and substance acceptable to the Agent and its legal counsel, Pepper
     Hamilton LLP, and dated (unless other indicated or not applicable) the
     date hereof:

                (a)     on or before April 27, 2001,

                        (i)     AUDIT REPORT. An annual audit report for the
                Borrower for the Fiscal Year ended December 31, 2000 in the
                form required by Section 8.1(a) of the Revolver; and

                                        -3-
<PAGE>

                        (ii)    THIRD REVOLVER AMENDMENT.  The Third Revolver
                Amendment executed by all parties thereto; and

                (b)     on or before May 31, 2001:

                        (i)     a landlord or mortgage waiver duly completed
                and executed for each location where any of its Collateral is
                located;

                        (i)     lien acknowledgments from each third-party in
                possession of Collateral and any other documents or
                instruments necessary to create, preserve, protect and perfect
                the Liens of the Agent for the benefit of the Lenders in the
                Collateral;

                        (ii)    true and correct copies of the Preferred Stock
                Agreement and any other documents evidencing the Issuance, in
                form and substance satisfactory to the Lenders, including,
                without limitation, provisions subordinating any amounts due
                by the Borrower in connection with the Equity Interests and
                any related documents to amounts due by the Borrower under the
                Credit Agreement and the Loan Documents;

                        (iii)   A certificate of an Authorized Officer of
                Borrower dated the date of consummation of the Issuance to the
                effect that: (A) all conditions to the Issuance have been
                satisfied, and the Issuance is being consummated in accordance
                with its terms, as stated in the Preferred Stock Agreement,
                without waiver of any material term or provision thereof by
                Borrower; (B) all conditions to the Issuance set forth herein
                or in the Credit Agreement (as modified hereby) have been
                satisfied; and (C) there is no Event of Default or Default
                under the Credit Agreement (as modified hereby) in existence
                or which would be caused by the Issuance;

                        (iv)    certificates of the appropriate government
                officials for the states of Massachusetts, Oregon and
                Washington as to the authority of Marketing Specialists Sales
                Company to conduct business in such states;

                        (v)     amendments or other modifications to the
                promissory notes originally executed by Richmont Marketing
                Specialist, Inc. and otherwise described below changing the
                subordination provisions thereof to reflect that all the
                "Obligations" (as defined in the Revolver) and all the Term
                Loan Obligations are senior debt under the subordination
                provisions thereof; and
<TABLE>
<CAPTION>
                                =========================================
                                Payee           Original Principal Amount
                                =========================================
<S>                                             <C>
                                Clark Brinkley                $174,116.02
                                -----------------------------------------
                                Barney Deal                   $148,061.35
                                -----------------------------------------
                                Donald Olin                   $ 28,554.82
                                -----------------------------------------
                                Doug Heyel                    $  5,808.29
                                -----------------------------------------
                                Fred Manning                  $ 87,057.78
                                -----------------------------------------
                                Joel Linebarger               $174,116.02
                                -----------------------------------------
</TABLE>
                        (vi)    ATTORNEYS' FEES AND EXPENSES.  Evidence that
                the costs and expenses (including attorneys' fees) referred to
                in Paragraph 5.11 of the Credit Agreement, to the extent
                incurred and invoiced, have been paid in full.

                                        -4-
<PAGE>

                6.      CONSENTS; WAIVERS OF THE TERM DEFAULTS.  The Lender
     hereby consents to the Revolver Amendments and waives the Term Defaults
     and agrees not to exercise any rights or remedies available as a result
     of the occurrence thereof.  To induce the Lender to agree to the
     foregoing, the Borrower agrees that this consent and waiver shall not
     constitute and shall not be deemed a consent of any other amendment to
     the Revolver or a waiver of any other Default or Event of Default,
     whether arising as a result of any further violation of the Violated Term
     Covenants or otherwise, or a waiver of any rights or remedies arising as
     a result of other Default or Event of Default.  The failure to comply
     with the Violated Term Covenants for any date, or any period ending on
     any date, other than as described above in the definition of Term
     Defaults shall constitute an Event of Default.

                7.      RATIFICATIONS.  Except as expressly modified and
     superseded by this Second Amendment, the terms and provisions of the
     Credit Agreement and the other Loan Documents are ratified and confirmed
     and shall continue in full force and effect.  Borrower, the Agent and the
     Companies party hereto agree that the Credit Agreement as amended hereby
     and the other Loan Documents shall continue to be legal, valid, binding
     and enforceable in accordance with their respective terms, subject to the
     terms and conditions of the Amended and Restated Intercreditor Agreement.

                8.      REPRESENTATIONS AND WARRANTIES.  Each Company
     represents and warrants to Lenders and Agent that:

        (a)     The information supplied to Lenders and Agent with respect to
     the Revolver Amendments, the Existing Revolver Defaults and the Term
     Defaults is true and correct in all material respects, and does not
     contain any untrue statement of material fact or omit to state a material
     fact necessary in order to make the statements contained in such
     information not misleading.

        (b)     Except to the extent such violation, Default or Event of
     Default is expressly waived or consented to by this Second Amendment, the
     entering into of the Third Revolver Amendment and the Amended and
     Restated Intercreditor Agreement, on the terms set forth herein have not
     and will not violate any term or provision of the Credit Agreement or
     result in any Default or Event of Default thereunder.

        (c)     The representations and warranties set forth in the Credit
     Agreement, the Amended and Restated Intercreditor Agreement, and each of
     the Loan Documents are true and correct in all material respects as of
     the date hereof, after giving effect to the Third Revolver Amendment, the
     Amended and Restated Intercreditor Agreement, and this Second Amendment.

        (d)     No term or provision of the Indenture will be violated by, and
     no redemption or other rights of the holders of the Richmont Subordinated
     Notes will be triggered by, the entering into of the Third Revolver
     Amendment, the Amended and Restated Intercreditor Agreement or any
     related transactions, including the incurrence of Indebtedness (as
     defined in the Indenture) pursuant thereto.

        (e)     Except as effectively consented to or waived in writing by the
     Revolver Lenders and/or Revolver Agent, no term or provision of the
     Revolver will be violated by the entering into of the Third Revolver
     Amendment, the Amended and Restated Intercreditor Agreement or any
     related transactions.

                                        -5-
<PAGE>

                9.      REFERENCE TO CREDIT AGREEMENT.  Each of the Loan
     Documents, including the Credit Agreement and any and all other
     agreements, documents, or instruments now or hereafter executed and
     delivered pursuant to the terms hereof or pursuant to the terms of the
     Credit Agreement as amended hereby, are hereby amended so that any
     reference in such Loan Documents to the Credit Agreement shall mean a
     reference to the Credit Agreement as amended hereby.

                10.     EXPENSES OF AGENT.  Borrower agrees to pay on demand
     all costs and expenses incurred by Agent in connection with the
     preparation, negotiation, and execution of this Second Amendment and the
     other Loan Documents executed pursuant hereto, including without
     limitation, the costs and fees of Agent's legal counsel.

                11.     SEVERABILITY.  Any provision of this Second Amendment
     held by a court of competent jurisdiction to be invalid or unenforceable
     shall not impair or invalidate the remainder of this Second Amendment and
     the effect thereof shall be confined to the provision so held to be
     invalid or unenforceable.

                12.     APPLICABLE LAW.  This Second Amendment and all other
     Loan Documents executed pursuant hereto shall be governed by and
     construed in accordance with the laws of the Commonwealth of Pennsylvania
     and the applicable laws of the United States of America.

                13.     SUCCESSORS AND ASSIGNS.  This Second Amendment is
     binding upon and shall inure to the benefit of Agent, each Lender and the
     Borrower and its respective successors and assigns, except Borrower may
     not assign or transfer any of its rights or obligations hereunder without
     the prior written consent of the Agent.

                14.     SECTION COUNTERPARTS.  This Second Amendment may be
     executed in one or more counterparts and on telecopy counterparts, each
     of which when so executed shall be deemed to be an original, but all of
     which when taken together shall constitute one and the same agreement.

                15.     EFFECT OF WAIVER.  No consent or waiver, express or
     implied, by Agent or any Lender to or for any breach of or deviation from
     any covenant, condition or duty by Borrower shall be deemed a consent or
     waiver to or of any other breach of the same or any other covenant,
     condition or duty.

                16.     HEADINGS.  The headings, captions, and arrangements
     used in this Second Amendment are for convenience only and shall not
     affect the interpretation of this Second Amendment.

                17.     WAIVER AND RELEASE.   IN ADDITION, TO INDUCE THE AGENT
     AND THE LENDERS TO AGREE TO THE TERMS OF THIS SECOND AMENDMENT, THE
     BORROWER AND EACH GUARANTOR REPRESENTS AND WARRANTS THAT AS OF THE DATE
     OF ITS EXECUTION OF THIS SECOND AMENDMENT THERE ARE NO CLAIMS OR OFFSETS
     AGAINST OR DEFENSES OR COUNTERCLAIMS TO ITS OBLIGATIONS UNDER THE LOAN
     DOCUMENTS AND IN ACCORDANCE THEREWITH IT:

        (i)     WAIVER.  WAIVES ANY AND ALL SUCH CLAIMS, OFFSETS, DEFENSES OR
        COUNTERCLAIMS, WHETHER KNOWN OR UNKNOWN, ARISING PRIOR TO THE DATE OF
        ITS EXECUTION OF THIS SECOND AMENDMENT AND

                                        -6-
<PAGE>

        (ii)    RELEASE.  RELEASES AND DISCHARGES THE AGENT AND THE LENDERS,
        AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS,
        SHAREHOLDERS, AFFILIATES AND ATTORNEYS (COLLECTIVELY THE "RELEASED
        PARTIES") FROM ANY AND ALL OBLIGATIONS, INDEBTEDNESS, LIABILITIES,
        CLAIMS, RIGHTS, CAUSES OF ACTION OR DEMANDS WHATSOEVER, WHETHER KNOWN
        OR UNKNOWN, SUSPECTED OR UNSUSPECTED, IN LAW OR EQUITY, WHICH THE
        BORROWER OR ANY GUARANTOR EVER HAD, NOW HAS, CLAIMS TO HAVE OR MAY
        HAVE AGAINST ANY RELEASED PARTY ARISING PRIOR TO THE DATE HEREOF AND
        FROM OR IN CONNECTION WITH THE LOAN DOCUMENTS OR THE TRANSACTIONS
        CONTEMPLATED THEREBY.

                18.     ENTIRE AGREEMENT.  THIS SECOND AMENDMENT AND ALL OTHER
     INSTRUMENTS, DOCUMENTS AND AGREEMENTS EXECUTED AND DELIVERED IN
     CONNECTION WITH THIS SECOND AMENDMENT EMBODY THE FINAL, ENTIRE AGREEMENT
     AMONG THE PARTIES HERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS,
     AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL,
     RELATING TO THIS SECOND AMENDMENT, AND MAY NOT BE CONTRADICTED OR VARIED
     BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR
     DISCUSSIONS OF THE PARTIES HERETO.  THERE ARE NO ORAL AGREEMENTS AMONG
     THE PARTIES HERETO.

                                        -7-
<PAGE>

        IN WITNESS WHEREOF, the undersigned have executed this Second
Amendment to Credit Agreement the day and year first above written.

Attest:                                 MARKETING SPECIALISTS CORPORATION

By:_________________________            By:____________________________
Name:                                   Name:
Title:                                  Title:

                                        FIRST UNION NATIONAL BANK, as sole
                                        Lender and as Agent

                                        By:____________________________
                                        Name:
                                        Title:

        Each of the undersigned Guarantors, intending to be legally bound
hereby, does hereby acknowledge and agree (i) to the terms of the foregoing
Second Amendment to Credit Agreement (the "Second Amendment"); (ii) that the
Second Amendment shall not in any way adversely affect or impair the
obligations of the undersigned to Lenders under that certain Second Amended
and Restated Guaranty Agreement from the Guarantors to First Union National
Bank dated as of March 30, 2000, as amended (the "Guaranty"), or under any
documents in connection therewith or collateral thereto; (iii) all sums
advanced under the Notes referenced in the Credit Agreement and all accrued
and unpaid interest thereon constitute "Guaranteed Obligations" under the
Guaranty; and (iv) the Guaranty and all such other Loan Documents are hereby
ratified, confirmed and continued, all as of this 19th day of April, 2001.

Attest:                                 MARKETING SPECIALISTS SALES COMPANY

By:_________________________            By:_________________________
Name:                                   Name:
Title:                                  Title:

Attest:                                 PAUL INMAN ASSOCIATES, INC.

By:_________________________            By: _________________________
Name:                                   Name:
Title:                                  Title:

Attest:                                 THE SALES FORCE COMPANIES, INC.

By:_________________________            By:_________________________
Name:                                   Name:
Title:                                  Title:

                                        -8-<PAGE>

April 20, 2000

REMEC, INC.
9404 Chesapeake Drive
San Diego, California  92123

Attention:        Mike McDonald
                  Chief Financial Officer

                  Re: REMEC Inc. Trust 1998 A - Waiver and Fourth Amendment
                  ("Amendment") to the Participation Agreement, dated as of
                  August 25, 1998, (the "Participation Agreement").

Dear Mike:

         This Waiver and Fourth Amendment to Participation Agreement (this
"Fourth Amendment"), dated as of April 20, 2000, is entered into among REMEC
Inc., a California corporation, as Lessee; Union Bank of California, N.A. not in
its individual capacity except as expressly stated herein but solely as
Certificate Trustee; the Persons named on Schedule 1-A of the Participation
Agreement (together with their respective permitted successors, assigns and
transferees), as Certificate Purchasers; the Persons listed on Schedule 1-B of
the Participation Agreement (together with their respective permitted
successors, assigns and transferees), as Lenders; and Union Bank of California,
N.A. as Agent.
                                   WITNESSETH:

         WHEREAS, Lessee, Lessor, Agent, the Certificate Purchasers and the
Lenders have entered into that certain Participation Agreement, dated as of
August 25, 1998 (as amended by those certain First, Second and Third Amendments
to Participation Agreement, dated as of September 29, 1998, September 21, 1999
and February 24, 2000, respectively, the ("Participation Agreement")
(capitalized terms used herein without definition shall have the same meanings
ascribed to them in Appendix 1 to the Participation Agreement, except as
modified pursuant to Section 2 below); and

         WHEREAS, the parties hereto desire to enter into this Amendment in
order to amend the Participation Agreement with respect to the matters provided
in this Amendment.

         NOW, THEREFORE, in consideration of the foregoing premises, the mutual
terms and conditions herein contained, and for other good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

         Section 1. WAIVER. Lessor, Agent and each of the Participants hereby
    waive for the fiscal quarter of Lessee ending January 31, 2000, and only for
    such fiscal quarter, compliance with the Funded Debt to EBITDA ration
    requirement set forth in Section 5.11 of the Participation Agreement, and
    agree that such noncompliance shall not constitute a

<PAGE>

    Lease Default or a Lease Event of Default. The waiver here given is specific
    to the covenant, and for the fiscal quarter of Lessee, referred to above and
    shall not operate as a waiver of compliance by Lessee with any other
    covenants set forth in the Participation Agreement, or with the covenant set
    forth above for any other fiscal quarter of Lessee.

         Section 2. MODIFICATION TO PARTICIPATION AGREEMENT. The parties hereto
    amend the Participation Agreement as follows and all references to the words
    "Participation Agreement" shall hereinafter refer to the Participation
    Agreement as amended by this Section 2.

         2.1      Section 5.23 of the Participation Agreement is amended and
restated in is entirety to read as follows:

         Section 5.23 PROFITABILITY. Lessee will not incur a net loss for any
         fiscal year (commencing with the fiscal year of Lessee ending January
         31, 2001).

         Section 3. REPRESENTATION AND WARRANTIES. Lessee represents and
    warrants to each of the other parties hereto that each of the
    representations and warranties of Lessee contained the Participation
    Agreement and in each other Operative Document is true and correct in all
    material respects on the date hereof, with the same effect as though made on
    and as of such date and, for purposes of this paragraph, all references in
    such representations and warranties to the "Operative Documents" shall be
    deemed to include this Amendment.

         Section 4. EFFECTIVENESS. Subject to the execution and delivery of this
    Amendment by all parties hereto, this Amendment is entered into as of the
    date set forth in the preamble to this Amendment, but effective, however, as
    of April 20, 2000 (the "EFFECTIVE DATE").

         Section 5. APPLICABLE LAW. THIS AMENDMENT HAS BEEN DELIVERED IN, AND
    SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
    LAWS OF, THE STATE OF CALIFORNIA, WITHOUT REGARD TO CONFLICTS OF LAW
    PRINCIPLES OF SUCH STATE.

         Section 6. COUNTERPARTS. This Amendment may be executed in any number
    of counterparts and by different parties hereto on separate counterparts,
    each executed counterpart constituting an original but all together one
    agreement.

         Section 7. DIRECTION TO TRUSTEE. By signing this Amendment, the
    Participants authorize and direct Union Bank of California, N.A., as
    Certificate Trustee, and Union Bank of California, N.A., as Agent, to sign
    this Amendment.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed and delivered as of the date first above written.

<PAGE>

Lessee:                                 REMEC, INC., a California corporation,
                                        as Lessee

                                        By: /s/ Michael McDonald
                                           -------------------------------------
                                        Name Printed:  Michael McDonald
                                        Title: Chief Financial Officer

Certificate Trustee:                    UNION BANK OF CALIFORNIA, N.A.,
                                        not in its capacity except as expressly
                                        stated herein, but solely as Certificate
                                        Trustee

                                        By: /s/ Andrew R. Ball
                                           -------------------------------------
                                        Name Printed:  Andrew R. Ball
                                        Title: Vice President

Agent:                                  UNION BANK OF CALIFORNIA, N.A.,
                                        not in its individual capacity except as
                                        expressly stated herein, but solely as
                                        Certificate Trustee

                                        By: /s/ Rick Young
                                           -------------------------------------
                                        Name Printed:  Rick Young
                                        Title: Vice President

Certificate Purchaser:                  BANKERS COMMERCIAL CORPORATION, as
                                        Certificate Purchaser

                                        By: /s/ Lance B. Markowitz
                                           -------------------------------------
                                        Name Printed:  Lance B. Markowitz
                                        Title: President

Lender:                                 UNION BANK OF CALIFORNIA, N.A.,
                                        not in its individual capacity except as
                                        expressly stated herein, but solely as
                                        Lender

                                        By: /s/ Rick Young
                                           -------------------------------------
                                        Name Printed:  Rick Young
                                        Title: Vice President

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