Document:

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                                                                   EXHIBIT 10.39

                 AMENDMENT NO. 5 AND CONSENT TO CREDIT AGREEMENT

                  AMENDMENT NO. 5 AND CONSENT TO CREDIT AGREEMENT (this
"Amendment"), dated as of July 7, 2003 among BRIGHTPOINT NORTH AMERICA L.P., a
Delaware limited partnership ("Brightpoint"), and WIRELESS FULFILLMENT SERVICES
LLC, a California limited liability company ("Wireless", together with
Brightpoint, the "Borrowers"), the other Credit Parties signatory to the
hereinafter defined Credit Agreement; GENERAL ELECTRIC CAPITAL CORPORATION, a
Delaware corporation (in its individual capacity, "GE Capital"), for itself, as
Lender, and as Agent for Lenders ("Agent"), and the other Lenders signatory to
the hereinafter defined Credit Agreement.

                              W I T N E S S E T H :

                  WHEREAS, the Borrowers, the other Credit Parties, Agent and
Lenders are party to that certain Credit Agreement, dated as of October 31, 2001
(as amended, restated, supplemented or otherwise modified from time to time, the
"Credit Agreement");

                  WHEREAS, on and subject to the terms and conditions hereof,
the Borrower and the other Credit Parties have requested that Agent and Lender,
and Agent and Lender are willing to, consent to (i) the acquisition by
Brightpoint of Brightpoint Activation Services LLC, an Indiana limited liability
company ("BAS") and (ii) the joinder of BAS as a "Credit Party" to the Credit
Agreement and the other Loan Documents, and to amend certain provisions of the
Credit Agreement to reflect such actions, all as set forth herein; and

                  WHEREAS, this Amendment shall constitute a Loan Document and
these Recitals shall be construed as part of this Amendment; capitalized terms
used herein without definition are so used as defined in Annex A to the Credit
Agreement.

                  NOW, THEREFORE, in consideration of the premises and the
mutual covenants contained herein, the parties hereto hereby agree as follows:

                  1.       Amendments to Credit Agreement.

                  (a)      Section 1.3(b) to the Credit Agreement is amended by
inserting the language ", BAS" immediately prior to the phrase "or any Borrower"
located in the third line of clause (ii) therein.

                  (b)      Section 3.1 to the Credit Agreement is amended by
inserting the language "and BAS" immediately following the phrase "Each
Borrower" in the first line therein.

                  (c)      Section 6.3 to the Credit Agreement is amended as
follows:

                           (i)      By renumbering clause (vi) to subsection (a)
                                    therein to read as new clause "(vii)"; and

                           (ii)     By adding a new clause (vi) immediately
                                    following the conclusion of clause (v)
                                    therein to read as follows:

                                    "; (vi) Indebtedness consisting of
                                    intercompany loans and advances made by
                                    Brightpoint to BAS; provided that, (A) BAS
                                    shall have executed and delivered to
                                    Brightpoint, prior to any such intercompany
                                    loan or advance, an Intercompany Note to
                                    evidence any such intercompany Indebtedness,
                                    which Intercompany Note shall

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                                    be pledged and delivered to Agent pursuant
                                    to the Brightpoint Pledge Agreement as
                                    additional collateral security for the
                                    Obligations; (B) each of Brightpoint and BAS
                                    shall record all intercompany transactions
                                    on its books and records in a manner
                                    satisfactory to Agent; (C) the obligations
                                    under any such Intercompany Notes shall be
                                    subordinated to the Obligations in a manner
                                    satisfactory to Agent; (D) at the time any
                                    such intercompany loan or advance is made
                                    and after giving effect thereto, each of
                                    Brightpoint and BAS shall be Solvent; (E) no
                                    Event of Default would occur and be
                                    continuing after giving effect to any such
                                    proposed intercompany loan or repayment; and
                                    (F) the aggregate amount of such
                                    intercompany loans owing by BAS to
                                    Brightpoint shall at no time exceed
                                    $1,000,000."

                  (d)      Section 6.6 to the Credit Agreement is amended by
inserting the following proviso immediately prior to the conclusion thereof:

                           "provided, that with respect to BAS, such Guaranteed
                           Indebtedness shall be (i) provided by Brightpoint
                           pursuant to a limited guaranty substantially in the
                           form of Exhibit 6.6 and (ii) in an amount not
                           exceeding, in the aggregate, $6,000,000; provided
                           further, that no payment by Brightpoint on such
                           Guaranteed Indebtedness relating to BAS shall be made
                           after the occurrence of an Event of Default pursuant
                           to Section 8.1(e)."

                  (e)      Section 6.7 to the Credit Agreement is amended
removing the word "and" immediately preceding subsection (c) thereof and
inserting a new subsection (d) immediately following section (c) thereof to read
as follows:

                           "; and (d) Liens with respect to the assets of BAS
                           created after the date hereof by conditional sale or
                           other title retention agreements or by the granting
                           of security interests to third parties who sell to
                           BAS (whether outright, conditionally or through
                           consignment or bailment) wireless devices or other
                           property with respect to which BAS provides
                           services."

                  (f)      Section 6.14 to the Credit Agreement is amended by
deleting subsection (a) thereof in its entirety and replacing such subsection
with the following:

                           "(a) intercompany loans and advances between
                           Borrowers or between Brightpoint and BAS to the
                           extent permitted by Section 6.3".

                  (g)      Annex A to the Credit Agreement is amended as
follows:

                                    (i)     The definition of "Change Control"
                           is amended as follows:

                                            (A)      By deleting the word "or"
                                    immediately preceding subsection (f)
                                    thereof; and

                                            (B)      By adding a new subsection
                                    (g) thereto immediately following subsection
                                    (f) thereof to read as follows:

                                                           "; or (g) Brightpoint
                                            ceases to directly own and control
                                            all of the economic and voting
                                            rights associated with all of the
                                            outstanding Stock of BAS"

                                    (ii)    The definition of "Collateral" is
                           amended by deleting the words

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                           "Security Agreement" located on the first line
                           therein and replacing it with the phrase "Security
                           Agreements".

                                    (iii)   The definition of "Collateral
                           Documents" is amended by deleting the words "Security
                           Agreement" on the first line therein and replacing it
                           with the phrase "Security Agreements".

                                    (iv)     The definition of "Credit Parties"
                           is amended by inserting the following language
                           immediately prior to the conclusion thereof:
                           "including, without limitation, BAS."

                                    (v)      The definition of "Guaranties" is
                           amended by inserting the phrase ", the Subsidiary
                           Guaranty" immediately following the phrase "the
                           Holding Company Guaranty" located in the first line
                           therein.

                                    (vi)     The definition of "Guarantors" is
                           amended by inserting the phrase "including, without
                           limitation, BAS" immediately prior to the conclusion
                           thereof.

                                    (vii)    The definition of "Security
                           Agreement" is amended by deleting such definition in
                           its entirety and replacing it as follows:

                                                     "Security Agreements" means
                                             (i) the Security Agreement of even
                                             date herewith entered into by and
                                             among Agent, on behalf of itself
                                             and Lenders and Borrowers and (ii)
                                             the Security Agreement dated as of
                                             July 7, 2003 entered into by and
                                             among Agent, on behalf of itself
                                             and Lenders and each Subsidiary
                                             that is a signatory thereto.

                                    (viii)   The following definitions are added
                           to Annex A to the Credit Agreement in alphabetical
                           order among the definitions appearing therein:

                                                     "BAS" means Brightpoint
                                             Activation Services LLC, an Indiana
                                             limited liability company.

                                                     "Holding Company Guaranty"
                                             means that certain guaranty of even
                                             date herewith by the Holding
                                             Companies of Borrower in favor of
                                             Agent, on behalf of Lenders.

                                                     "Subsidiary Guaranty" means
                                             that certain guaranty dated as of
                                             July 7, 2003 by BAS in favor of
                                             Agent, on behalf of Lenders.

                  (h)      New Exhibit 6.6 (Form of Brightpoint limited
guaranty) is attached hereto as Exhibit A.

                           2.       Consent and Limited Waiver to Acquisition
and Joinder of BAS. Agent and Lenders hereby expressly consent to (i) the
acquisition by Brightpoint of BAS as its wholly-owned Subsidiary, (ii) the
assignment and transfer of the National Wholesale Distribution Agreement between
Sprint Spectrum L.P. and Brightpoint from Brightpoint to BAS; and (iii) the
joinder of BAS to the Credit Agreement as a "Credit Party" therein. Such
consents are only applicable and shall only be effective in the specific
instances and for the specific purposes for which made or given.

                           3.       Joinder to Credit Agreement. BAS hereby
acknowledges, agrees and confirms that, by its execution of this Amendment, it
will be deemed to be party to the Credit Agreement

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and a "Credit Party" for all purposes of the Credit Agreement and the other Loan
Documents, and shall have all of the obligations of a Credit Party thereunder as
if it has executed the Credit Agreement and the other Loan Documents. BAS hereby
ratifies, as of the date hereof, and agrees to be bound by, all of the terms,
provisions and conditions contained in the Credit Agreement and in the Loan
Documents which are binding upon the Credit Parties, including, without
limitation (a) all of the representations and warranties of the Credit Parties
set forth in the Credit Agreement and the other Loan Documents, as supplemented
from time to time in accordance with the terms thereof and (b) all of the
covenants set forth in the Credit Agreement and the other Loan Documents.

                           4.       Representations and Warranties of Credit
Parties. In order to induce Agent and Lenders to enter into this Amendment, each
Credit Party hereby jointly and severally represents and warrants to Agent and
Lenders that:

                           (a)      Representations and Warranties. After giving
effect to this Amendment, no representation or warranty of any Credit Party
contained in the Credit Agreement or any of the other Loan Documents, including
this Amendment, shall be untrue or incorrect in any material respect as of the
date hereof, except to the extent that such representation or warranty expressly
relates to an earlier date.

                           (b)      Authorization, etc. Each Credit Party has
the power and authority to execute, deliver and perform this Amendment. Each
Credit Party has taken all necessary action (including, without limitation,
obtaining approval of its stockholders, if necessary) to authorize its
execution, delivery and performance of this Amendment. No consent, approval or
authorization of, or declaration or filing with, any Governmental Authority, and
no consent of any other Person, is required in connection with any Credit
Party's execution, delivery and performance of this Amendment, except for those
already duly obtained. This Amendment has been duly executed and delivered by
each Credit Party and constitutes the legal, valid and binding obligation of
each Credit Party, enforceable against it in accordance with its terms. No
Credit Party's execution, delivery or performance of this Amendment conflicts
with, or constitutes a violation or breach of, or constitutes a default under,
or results in the creation or imposition of any Lien upon the property of any
Credit Party by reason of the terms of (i) any contract, mortgage, lease,
agreement, indenture or instrument to which any Credit Party is a party or which
is binding upon it, (ii) any law or regulation or order or decree of any court
applicable to any Credit Party, or (iii) the certificate or articles of
incorporation or by-laws of any Credit Party.

                           (c)      No Default. No Default or Event of Default
has occurred or is continuing, or would result after giving effect hereto.

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                           5.       Conditions to Effectiveness. The
effectiveness of this Amendment is expressly conditioned upon the satisfaction,
and delivery to Agent (on behalf of itself and Lenders), of each condition set
forth in this Section 5 on or prior to the date hereof:

                           (a)      Documentation. Duly executed originals of
         this Amendment from each Credit Party and from Requisite Lenders.

                           (b)      Schedules to Credit Agreement. Copies of all
         schedules to the Credit Agreement revised pursuant to the terms of this
         Amendment.

                           (c)      Security Agreement. Duly executed originals
         of the Security Agreement, dated the date hereof by and between BAS and
         Agent, on behalf of itself and Lenders, and all instruments, documents
         and agreements executed pursuant thereto.

                           (d)      Insurance. Satisfactory evidence that the
         insurance policies required by Section 5.4 of the Credit Agreement are
         in full force and effect, together with appropriate evidence showing
         loss payable and/or additional insured clauses or endorsements and
         showing BAS as a named insured therein, as requested by Agent, in favor
         of Agent, on behalf of Lenders.

                           (e)      Security Interests and Code Filings.

                                    (i)      Evidence satisfactory to Agent that
                  Agent (for the benefit of itself and Lenders) has a valid and
                  perfected first priority security interest in the Collateral
                  of BAS (excluding those Liens permitted pursuant to Section
                  6.7 of the Credit Agreement), including (x) such documents
                  duly executed by BAS (including financing statements under the
                  Code (both pre-revision and post-revision) and other
                  applicable documents under the laws of any jurisdiction with
                  respect to the perfection of Liens) as Agent may request in
                  order to perfect its security interests in the Collateral and
                  (y) copies of Code search reports listing all effective
                  financing statements that name BAS as debtor, together with
                  copies of such financing statements, none of which shall cover
                  the Collateral (except those permitted pursuant to Section 6.7
                  of the Credit Agreement).

                                    (ii)     Control Letters from all issuers of
                  uncertificated securities and financial assets held by
                  Brightpoint with respect to BAS.

                           (f)      Intellectual Property Security Agreements.
         Duly executed originals of a Trademark Security Agreement, Copyright
         Security Agreement and Patent Security Agreement, each dated the date
         hereof and signed by BAS, all in form and substance reasonably
         satisfactory to Agent, together with all instruments, documents and
         agreements executed pursuant thereto.

                           (g)      Subsidiary Guaranty. Duly executed originals
         of the Subsidiary Guaranty, dated the date hereof, and all documents,
         instruments and agreements executed pursuant thereto.

                           (h)      Cash Management System; Deposit Account
         Agreements. Evidence satisfactory to Agent that, as of the date hereof,
         Cash Management Systems complying with Annex C to the Credit Agreement
         with respect to BAS have been established and are currently being
         maintained in the manner set forth in such Annex C, together with
         copies of duly executed tri-party account agreements, reasonably
         satisfactory to Agent, with the banks as required by Annex C to the
         Credit Agreement.

                           (i)      Articles of Organization and Good Standing.
         BAS's (i) articles of

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         organization and all amendments thereto, (ii) certificates of existence
         in its state of organization and (iii) good standing certificates
         (including verification of tax status) and certificates of
         qualification to conduct business in each jurisdiction where its
         ownership or lease of property or the conduct of its business requires
         such qualification, each dated a recent date prior to the date hereof
         and certified by the applicable Secretary of State or other authorized
         Governmental Authority.

                           (j)      Operating Agreement and Resolutions. BAS's
         (i) operating agreement, together with all amendments thereto and (ii)
         resolutions of Brightpoint Holdings and Brightpoint, approving and
         authorizing the execution, delivery and performance of the Loan
         Documents to which it is a party and the transactions to be consummated
         in connection therewith, each certified as of the date hereof by the
         corporate secretary or an assistant secretary of Brightpoint Holdings
         (in its capacity as general partner of Brightpoint, the sole member and
         sole manager of BAS) as being in full force and effect without any
         modification or amendment.

                           (k)      Incumbency Certificates. Signature and
         incumbency certificates of the officer(s) of Brightpoint Holdings (the
         general partner of Brightpoint, which is the sole member and sole
         manager of BAS) executing any of the Loan Documents on behalf of BAS,
         certified as of the date hereof by the corporate secretary of
         Brightpoint Holdings as being true, accurate, correct and complete.

                           (l)      Opinion of Counsel. Duly executed originals
         of opinion of Baker & Daniels, counsel for BAS, together with any local
         counsel opinions reasonably requested by Agent, each in form and
         substance reasonably satisfactory to Agent and its counsel, dated the
         date hereof, and each accompanied by a letter addressed to such counsel
         from BAS, authorizing and directing such counsel to address its opinion
         to Agent, on behalf of Lenders, and to include in such opinion an
         express statement to the effect that Agent and Lenders are authorized
         to rely on such opinion.

                           (m)      Pledge Amendment. Duly executed originals of
         the pledge amendment to the Brightpoint Pledge Agreement accompanied by
         the original Intercompany Notes and other instruments evidencing
         Indebtedness being pledged pursuant to such pledge amendment, duly
         endorsed in blank.

                           (n)      Other Documents. All other agreements,
         certificates and other documents as Agent any reasonably request to
         accomplish the purposes of this Amendment.

                           6.       Reference to and Effect on Loan Documents.

                           (a)      Ratification. Except as specifically
         provided in this Amendment, the Credit Agreement and the other Loan
         Documents shall remain in full force and effect and each Credit Party
         hereby ratifies and confirms each such Loan Document.

                           (b)      No Waiver. Except as specifically provided
         in this Amendment, the execution, delivery and effectiveness of this
         Amendment shall not operate as a waiver or forbearance of any right,
         power or remedy of Agent or any Lender under the Credit Agreement or
         any of the other Loan Documents, or constitute a consent, waiver or
         modification with respect to any provision of the Credit Agreement or
         any of the other Loan Documents. Upon the effectiveness of this
         Amendment each reference in (a) the Credit Agreement to "this
         Agreement," "hereunder," "hereof," or words of similar import and (b)
         any other Loan Document to "the Agreement" shall, in each case and
         except as otherwise specifically stated therein, mean and be a
         reference to the Credit Agreement as amended hereby.

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                           7.       Affirmation of Guarantors. By its signature
         set forth below, each Guarantor hereby confirms to Agent and Lenders
         that, after giving effect to the foregoing Amendment and the
         transactions contemplated thereby, the Guaranty of such Guarantor and
         each other Loan Document to which such Guarantor is a party continues
         in full force and effect and is the legal, valid and binding obligation
         of such Guarantor, enforceable against such Guarantor in accordance
         with its terms, except as enforceability may be limited by applicable
         bankruptcy, insolvency, or similar laws affecting the enforcement of
         creditors' rights generally or by equitable principles relating to
         enforceability.

                           8.       Miscellaneous.

                           (a)      Successors and Assigns. This Amendment shall
         be binding on and shall inure to the benefit of the Credit Parties,
         Agent and Lenders and their respective successors and assigns, except
         as otherwise provided herein. No Credit Party may assign, transfer,
         hypothecate or otherwise convey its rights, benefits, obligations or
         duties hereunder without the prior express written consent of Agent and
         Lenders. The terms and provisions of this Amendment are for the purpose
         of defining the relative rights and obligations of the Credit Parties,
         Agent and Lenders with respect to the transactions contemplated hereby
         and there shall be no third party beneficiaries of any of the terms and
         provisions of this Amendment.

                           (b)      Entire Agreement. This Amendment, including
         all schedules and other documents attached hereto or incorporated by
         reference herein or delivered in connection herewith, constitutes the
         entire agreement of the parties with respect to the subject matter
         hereof and supersedes all other understandings, oral or written, with
         respect to the subject matter hereof.

                           (c)      Fees and Expenses. As provided in Section
         11.3 of the Credit Agreement, the Borrowers agree to pay on demand all
         fees, costs and expenses incurred by Agent in connection with the
         preparation, execution and delivery of this Amendment.

                           (d)      Headings. Section headings in this Amendment
         are included herein for convenience of reference only and shall not
         constitute a part of this Amendment for any other purpose.

                           (e)      Severability. Wherever possible, each
         provision of this Amendment shall be interpreted in such a manner as to
         be effective and valid under applicable law, but if any provision of
         this Amendment shall be prohibited by or invalid under applicable law,
         such provision shall be ineffective to the extent of such prohibition
         or invalidity, without invalidating the remainder of such provision or
         the remaining provisions of this Amendment.

                           (f)      Conflict of Terms. Except as otherwise
         provided in this Amendment, if any provision contained in this
         Amendment is in conflict with, or inconsistent with, any provision in
         any of the other Loan Documents, the provision contained in this
         Amendment shall govern and control.

                           (g)      Counterparts. This Amendment may be executed
         in any number of separate counterparts, each of which shall
         collectively and separately constitute one agreement. Delivery of an
         executed signature page to this Amendment by telecopy shall be
         effective as delivery of a manually executed signature page to this
         Amendment.

                           (h)      Incorporation of Credit Agreement. The
         provisions contained in Sections 11.9 and 11.13 of the Credit Agreement
         are incorporated herein by reference to the same extent as

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         if reproduced herein in their entirety, except with reference to this
         Amendment rather than the Credit Agreement.

                           (i)      Acknowledgment. Each Credit Party hereby
         acknowledges its status as a Credit Party and affirms its obligations
         under the Credit Agreement and represents and warrants that there are
         no liabilities, claims, suits, debts, liens, losses, causes of action,
         demands, rights, damages or costs, or expenses of any kind, character
         or nature whatsoever, known or unknown, fixed or contingent
         (collectively, the "Claims"), which any Credit Party may have or claim
         to have against Agent or any Lender, or any of their respective
         affiliates, agents, employees, officers, directors, representatives,
         attorneys, successors and assigns (collectively, the "Lender Released
         Parties"), which might arise out of or be connected with any act of
         commission or omission of the Lender Released Parties existing or
         occurring on or prior to the date of this Amendment, including, without
         limitation, any Claims arising with respect to the Obligations or any
         Loan Documents. In furtherance of the foregoing, each Credit Party
         hereby releases, acquits and forever discharges the Lender Released
         Parties from any and all Claims that any Credit Party may have or claim
         to have, relating to or arising out of or in connection with the
         Obligations or any Loan Documents or any other agreement or transaction
         contemplated thereby or any action taken in connection therewith from
         the beginning of time up to and including the date of the execution and
         delivery of this Amendment. Each Credit Party further agrees forever to
         refrain from commencing, instituting or prosecuting any lawsuit, action
         or other proceeding against any Lender Released Parties with respect to
         any and all Claims which might arise out of or be connected with any
         act of commission or omission of the Lender Released Parties existing
         or occurring on or prior to the date of this Amendment, including,
         without limitation, any Claims arising with respect to the Obligations
         or any Loan Documents.

[signature pages follow]

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IN WITNESS WHEREOF, this Amendment has been duly executed and delivered as of
the day and year first above written.

                                    BRIGHTPOINT NORTH AMERICA L.P.

                                        By: BRIGHTPOINT NORTH AMERICA, INC.,
                                            its general partner

                                    By: /s/ Steven E. Fivel
                                        ----------------------------------------
                                    Name: Steven E. Fivel
                                    Title: Executive Vice President & Secretary

                                    WIRELESS FULFILLMENT SERVICES LLC

                                        By: Brightpoint, Inc., its manager

                                    By: /s/ Steven E. Fivel
                                        ----------------------------------------
                                    Name: Steven E. Fivel
                                    Title: Executive Vice President, General
                                           Counsel & Secretary

                                    GENERAL ELECTRIC CAPITAL CORPORATION,
                                    as Agent and Lender

                                    By: /s/ Dwayne L. Coker
                                        ----------------------------------------
                                    Title: Duly Authorized Signatory

                                    LASALLE BUSINESS CREDIT, LLC,
                                    as Lender

                                    By: /s/ Bruce A. Sprenger
                                        ----------------------------------------
                                    Name: Bruce A. Sprenger
                                    Title: Senior Vice President

                                       47

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                                    NATIONAL CITY BANK OF INDIANA, as Lender

                                    By: /s/ David McNeely
                                        ----------------------------------------
                                    Name: David McNeely
                                    Title: Assistant Vice President

                                    CONGRESS FINANCIAL CORPORATION (CENTRAL),
                                    as Lender

                                    By: /s/ Anthony Vizgirda
                                        ----------------------------------------
                                    Name: Anthony Vizgirda
                                    Title: First Vice President

                                       48

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                  The following Persons are signatories to this Amendment in
their capacity as Credit Parties or Loan Parties and not as Borrowers.

                                    BRIGHTPOINT, INC.

                                    By:/s/ Steven E. Fivel
                                       -----------------------------------------
                                    Name: Steven E. Fivel
                                    Title: Executive Vice President, General
                                           Counsel & Secretary

                                    BRIGHTPOINT NORTH AMERICA, INC.

                                    By: /s/ Steven E. Fivel
                                        ----------------------------------------
                                    Name: Steven E. Fivel
                                    Title: Executive Vice President & Secretary

                                    WIRELESS FULFILLMENT SERVICES HOLDINGS, INC.

                                    By: /s/ Steven E. Fivel
                                        ----------------------------------------
                                    Name: Steven E. Fivel
                                    Title: Executive Vice President & Secretary

                                    BRIGHTPOINT INTERNATIONAL LTD.

                                    By: /s/ Steven E. Fivel
                                        ----------------------------------------
                                    Name: Steven E. Fivel
                                    Title: Executive Vice President & Secretary

                                    BRIGHTPOINT ACTIVATION SERVICES LLC

                                        By: BRIGHTPOINT NORTH AMERICA L.P., its
                                            sole member and sole manager

                                        By: Brightpoint North America, Inc., its
                                            general partner

                                    By: /s/ Steven E. Fivel
                                        ----------------------------------------
                                    Name: Steven E. Fivel
                                    Title: Executive Vice President & Secretary

                                       49<PAGE>
                                                                    EXHIBIT 10.1

                                                               EXECUTION VERSION

                                 THIRD AMENDMENT
                         TO LOAN AND SECURITY AGREEMENT

         Third Amendment, dated as of February 6, 2003 (this "Amendment"), to
the Loan and Security Agreement, dated as of July 23, 2001 (as previously
amended, the "Loan Agreement"), by and among (i) the lenders identified on the
signature pages hereof (such lenders, together with their respective successors
and assigns, are hereinafter referred to individually as a "Lender" and
collectively as the "Lenders"), (ii) FOOTHILL CAPITAL CORPORATION, a California
corporation, as the arranger and administrative agent for the Lenders ("Agent"),
and (iii) SCB COMPUTER TECHNOLOGY, INC., a Tennessee corporation ("Parent"), and
each of Parent's Subsidiaries identified on the signature pages hereof (such
Subsidiaries, together with Parent, are hereinafter referred to individually as
a "Borrower", and individually and collectively, jointly and severally, as the
"Borrowers").

         WHEREAS, Douglas J. Lising and Michael Lebofsky (each a "Remtech
Seller" and collectively, the "Remtech Sellers"), Parent and Remtech Services,
Inc., a Virginia corporation ("Remtech"), have entered into a Stock Purchase
Agreement dated as of February 4, 2003 (the "Remtech Purchase Agreement"),
pursuant to which the Remtech Sellers have agreed to sell to Parent, and Parent
has agreed to purchase, all of the issued and outstanding stock of Remtech (the
"Remtech Stock");

         WHEREAS, the Borrowers have requested the Lenders (i) to make an
additional term loan to the Borrowers in the principal amount of $7,700,000 (the
"Term Loan B"), the proceeds of which will be used to pay a portion of the
purchase price of the Remtech Stock pursuant to the Remtech Purchase Agreement,
and (ii) to make loans to Remtech from time to time for working capital and
other lawful and permitted purposes; and

         WHEREAS, the Agent and the Lenders are willing to enter into this
Amendment in order to (i) join Remtech as a Borrower to the Loan Agreement and
join Remtech as a party to certain other Loan Documents, (ii) change references
to the outstanding principal amount of the existing "Term Loan" in the Loan
Agreement to "Term Loan A" (it being understood that such principal shall remain
outstanding and that the interest rate thereon shall not be affected by the
Third Amendment Effective Date), (iii) provide for the Term Loan B, (iv) consent
to the purchase by Parent of the Remtech Stock pursuant to the Remtech Purchase
Agreement and (v) amend certain other terms and conditions of the Loan
Agreement, in each case subject to the terms and conditions set forth in this
Amendment;

         NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the parties hereto hereby agree as follows:

<PAGE>

               1. Definitions in Amendment. Any capitalized term used herein
and not defined shall have the meaning assigned to it in the Loan Agreement.

               2. Definitions in the Loan Agreement. Section 1.1 of the Loan
Agreement is hereby amended as follows:

                  (a) The definition of the term "Change of Control" is hereby
amended by deleting subsection (c) thereof and by substituting therefor the
following:

         "(c) any Borrower ceases to directly own and control 100% of the
         outstanding capital Stock of each of its Subsidiaries, except by virtue
         of a merger, consolidation, reorganization, recapitalization or
         reclassification of Stock permitted under Section 7.3."

                  (b) The definition of the term "Commitment" is hereby amended
in its entirety to read as follows:

                  "Commitment" means, with respect to each Lender, its Revolver
         Commitment, its Term Loan A Commitment, its Term Loan B Commitment, or
         its Total Commitment, as the context requires, and, with respect to all
         Lenders, their Revolver Commitments, their Term Loan A Commitments,
         their Term Loan B Commitments, or their Total Commitments, as the
         context requires, in each case as such Dollar amounts are set forth
         beside such Lender's name under the applicable heading on Schedule C-1
         or on the signature page of the Assignment and Acceptance pursuant to
         which such Lender became a Lender hereunder in accordance with the
         provisions of Section 14.1."

                  (c) The definition of "Disbursement Letter" is hereby amended
in its entirety to read as follows:

                  "Disbursement Letter" means an instructional letter executed
         and delivered by the Administrative Borrower to Agent regarding the
         extensions of credit to be made on the Closing Date and the Third
         Amendment Effective Date, the form and substance of which is
         satisfactory to Agent."

                  (d) Paragraph (i) of the definition of the term "Eligible
Accounts" is hereby amended to read in its entirety as follows:

                  "(i) Accounts with respect to an Account Debtor whose total
         obligations owing to Borrowers exceed 10% of all Eligible Accounts, to
         the extent of the obligations owing by such Account Debtor in excess of
         such percentage, provided, however, that for (i) Accounts with respect
         to which the Account Debtor is Federal Express Corporation or IBM
         Corporation, Accounts of such Person shall not be included to the
         extent that the total obligations owing by such Person to a Borrower
         exceed 20% of all Eligible Accounts; (ii) Accounts of a Borrower (other
         than Remtech) with respect to which the Account Debtor is the State of
         Tennessee or the State of Kentucky, Accounts of such Governmental
         Authority shall not be included to the extent that the total
         obligations owing by such Governmental Authority to a Borrower exceed
         15% of all Eligible Accounts; and (iii) Accounts of Remtech with
         respect to which the Account Debtor is a state of the United States or
         the United States or any department, agency, or instrumentality of the

                                       2
<PAGE>

         United States (to the extent payment thereof is backed by the full
         faith and credit of the United States); provided further, that, with
         respect to all Accounts of an Account Debtor referred to in clauses
         (i), (ii) and (iii) of this subparagraph, Agent, in its Permitted
         Discretion, remains satisfied with the credit quality of such Account
         Debtor,"

                  (e) Paragraph (i) of the definition of the term "Eligible
Unbilled Accounts" is hereby amended to read in its entirety as follows:

                  "(i) Unbilled Accounts with respect to an Account Debtor whose
         total obligations owing to Borrowers exceed 10% of all Eligible
         Unbilled Accounts, to the extent of the obligations owing by such
         Account Debtor in excess of such percentage, provided, however, that
         for (i) Unbilled Accounts with respect to which the Account Debtor is
         Federal Express Corporation or IBM Corporation, Unbilled Accounts of
         such Person shall not be included to the extent that the total
         obligations owing by such Person to a Borrower exceed 20% of all
         Eligible Unbilled Accounts; (ii) Unbilled Accounts of a Borrower (other
         than Remtech) with respect to which the Account Debtor is the State of
         Tennessee or the State of Kentucky, Unbilled Accounts of such
         Governmental Authority shall not be included to the extent that the
         total obligations owing by such Governmental Authority to a Borrower
         exceed 15% of all Eligible Unbilled Accounts; and (iii) Unbilled
         Accounts of Remtech with respect to which the Account Debtor is a state
         of the United States or the United States or any department, agency, or
         instrumentality of the United States; provided further, that, with
         respect to all Unbilled Accounts of an Account Debtor referred to in
         clauses (i), (ii) and (iii) of this subparagraph, Agent, in its
         Permitted Discretion, remains satisfied with the credit quality of such
         Account Debtor,"

                  (f) The definition of the term "Loan Documents" is hereby
amended to read in its entirety as follows:

                  "Loan Documents" means this Agreement, the Cash Management
         Agreements, the Control Agreements, the Disbursement Letters, the Due
         Diligence Letters, the Fee Letter, the Guaranty, the Letters of Credit,
         the Letter of Credit Applications, L/C Undertakings, the Remtech
         Post-Closing Agreement, the Contribution Agreement, the Officers'
         Certificates, the Stock Pledge Agreement, the Trademark Security
         Agreement, the Guarantor Security Agreement, the Intercompany
         Subordination Agreement, the Remtech Subordination Agreement, the UCC
         Filing Authorization Letters, the Warrants, the Registration Rights
         Agreement, the Intercreditor Agreement, any note or notes executed by a
         Borrower in connection with this Agreement and payable to a member of
         the Lender Group, and any other agreement entered into, now or in the
         future, by any Borrower and the Lender Group in connection with this
         Agreement."

                  (g) The definition of the term "Material Contract" is hereby
amended to read in its entirety as follows:

                  "Material Contract" means each of (a) the Honeywell Contract,
         (b) the State of Tennessee Contract, (c) the State of Kentucky
         Contract, (d) the Federal Express Contract, and (e) the Remtech
         Purchase Agreement."

                                       3
<PAGE>

                  (h) The definition of the term "Maximum Term Loan Amount" is
hereby deleted its entirety.

                  (i) The definition of the term "Pro Rata Share" is hereby
amended to read in its entirety as follows:

                  "Pro Rata Share" means:

                  (a) with respect to a Lender's obligation to make Advances and
         receive payments of principal, interest, fees, costs, and expenses with
         respect thereto, (i) prior to the Revolver Commitment being reduced to
         zero, the percentage obtained by dividing (y) such Lender's Revolver
         Commitment, by (z) the aggregate Revolver Commitments of all Lenders,
         and (ii) from and after the time that the Revolver Commitment has been
         terminated or reduced to zero, the percentage obtained by dividing (y)
         the aggregate principal amount of such Lender's Advances by (z) the
         aggregate principal amount of all Advances,

                  (b) with respect to a Lender's obligation to participate in
         Letters of Credit, to reimburse the Issuing Lender, and to receive
         payments of fees with respect thereto, the percentage obtained by
         dividing (i) such Lender's Revolver Commitment, by (ii) the aggregate
         Revolver Commitments of all Lenders,

                  (c) with respect to a Lender's obligation to make the Term
         Loan A and receive payments of interest, fees, and principal with
         respect thereto, (i) prior to the making of the Term Loan A, the
         percentage obtained by dividing (y) such Lender's Term Loan A
         Commitment, by (z) the aggregate amount of all Lenders' Term Loan A
         Commitments, and (ii) from and after the making of the Term Loan A, the
         percentage obtained by dividing (y) the principal amount of such
         Lender's portion of the Term Loan A Amount by (z) the Term Loan A
         Amount,

                  (d) with respect to a Lender's obligation to make the Term
         Loan B and receive payments of interest, fees, and principal with
         respect thereto, (i) prior to the making of the Term Loan B, the
         percentage obtained by dividing (y) such Lender's Term Loan B
         Commitment, by (z) the aggregate amount of all Lenders' Term Loan B
         Commitments, and (ii) from and after the making of the Term Loan B, the
         percentage obtained by dividing (y) the principal amount of such
         Lender's portion of the Term Loan B Amount by (z) the Term Loan B
         Amount, and

                  (e) with respect to all other matters as to a particular
         Lender (including the indemnification obligations arising under Section
         16.7), the percentage obtained by dividing (i) such Lender's Revolver
         Commitment plus the unpaid principal amount of such Lender's portion of
         the Term Loan A Amount plus the unpaid principal amount of such
         Lender's portion of the Term Loan B Amount, by (ii) the aggregate
         amount of the Revolver Commitments of all Lenders plus the Term Loan A
         Amount plus the Term Loan B Amount; provided, however, that in the
         event the Revolver Commitments have been terminated or reduced to zero,
         Pro Rata Share shall be the percentage obtained by dividing (y) the
         principal amount of such Lender's Advances plus the unpaid principal

                                       4
<PAGE>

         amount of such Lender's portion of the Term Loan A Amount plus the
         unpaid principal amount of such Lender's portion of the Term Loan B
         Amount by (z) the principal amount of all outstanding Advances plus the
         Term Loan A Amount plus the Term Loan B Amount."

                  (j) The definition of the term "Term Loan" is hereby amended
in its entirety to read as follows:

                  "Term Loan" means, collectively, the Term Loan A and the Term
         Loan B."

                  (k) The definition of the term "Term Loan Amount" is hereby
deleted its entirety.

                  (l) The definition of the term "Term Loan Margin" is hereby
deleted its entirety.

                  (m) The definition of "Term Loan Commitment" is hereby deleted
in its entirety.

                  (n) The following definitions are hereby inserted, in
appropriate alphabetical order:

                  "Consolidated Net Interest Expense" means, with respect to any
         Person for any period, gross interest expense of such Person and its
         Subsidiaries for such period determined on a consolidated basis and in
         accordance with GAAP (including, without limitation, interest expense
         paid to Affiliates of such Person), less the sum of interest income for
         such period, in each case, determined on a consolidated basis and in
         accordance with GAAP.

                  "Fixed Charge Coverage Ratio" means, for any period with
         respect to the Parent and its Subsidiaries, the ratio of (a) EBITDA for
         such period, to (b) Fixed Charges.

                  "Fixed Charges" means, for any period, the sum of (a) all
         principal of Indebtedness of the Parent and its Subsidiaries scheduled
         to be paid or prepaid during such period (including, without
         limitation, payments of Indebtedness owing to State Bank and to the
         Remtech Sellers, but not including prepayments or prepayments of
         Advances unless such prepayments are accompanied by a reduction of the
         Revolver Commitment), plus (b) Consolidated Net Interest Expense of
         such Person and its Subsidiaries for such period, plus (c) income taxes
         paid or payable by such Person and its Subsidiaries during such period,
         plus (d) cash dividends or distributions paid by the Parent and its
         Subsidiaries (other than, in the case of any Loan Party, dividends or
         distributions paid by a Loan Party to any other Loan Party) during such
         period, plus (e) capital expenditures made by the Parent and its
         Subsidiaries during such period.

                                       5
<PAGE>

                  "Maximum Term Loan A Amount" means $10,000,000.

                  "Maximum Term Loan B Amount" means $7,700,000.

                  "Remtech" means Remtech Services, Inc., a Virginia
         corporation.

                  "Remtech Post-Closing Agreement" means the letter agreement
         dated as of the Third Amendment Effective Date, by and among the Loan
         Parties, the Lenders and the Agent, with respect to certain
         post-closing obligations of the Loan Parties, as the same may be
         amended or otherwise modified from time to time.

                  "Remtech Purchase Agreement" means the Stock Purchase
         Agreement dated as of February 4, 2003, by and among the Remtech
         Sellers, Parent and Remtech, pursuant to which the Remtech Sellers have
         agreed to sell to Parent, and Parent has agreed to purchase, all of the
         issued and outstanding stock of Remtech.

                  "Remtech Purchase Documents" means the Remtech Purchase
         Agreement and all other agreements, instruments and other documents
         executed or delivered in connection with the Remtech Purchase
         Agreement.

                  "Remtech Sellers" means Douglas J. Lising and Michael
         Lebofsky.

                  "Remtech Subordination Agreement" means the Subordination
         Agreement dated February 6, 2003, made by Douglas J. Lising, Michael
         Lebofsky and the Parent, in favor of the Agent.

                  "Term Loan A" has the meaning set forth in Section 2.2(a).

                  "Term Loan A Amount" means, as of any date of determination,
         the outstanding principal amount of the Term Loan A.

                  "Term Loan A Commitment" means, with respect to each Lender,
         its Term Loan A Commitment, and, with respect to all Lenders, their
         Term Loan A Commitments, in each case as such Dollar amounts are set
         forth beside such Lender's name under the applicable heading on
         Schedule C-1 or in the Assignment and Acceptance pursuant to which such
         Lender became a Lender hereunder in accordance with the provisions of
         Section 14.1.

                  "Term Loan A Margin" means, for any day, 2.25%.

                  "Term Loan B" has the meaning set forth in Section 2.2(b).

                                       6
<PAGE>

                  "Term Loan B Amount" means, as of any date of determination,
         the outstanding principal amount of the Term Loan B.

                  "Term Loan B Commitment" means, with respect to each Lender,
         its Term Loan B Commitment, and, with respect to all Lenders, their
         Term Loan B Commitments, in each case as such Dollar amounts are set
         forth beside such Lender's name under the applicable heading on
         Schedule C-1 or in the Assignment and Acceptance pursuant to which such
         Lender became a Lender hereunder in accordance with the provisions of
         Section 14.1.

                  "Term Loan B Margin" means, as of the Third Amendment
         Effective Date, 2.75%; provided, however, that:

                           (i) if the Honeywell Contract is renewed for at least
         36 months after the Third Amendment Effective Date and prior to May 1,
         2003, on substantially the same substantive terms as the Honeywell
         Contract as in effect on the Closing Date, on and after the effective
         date of such renewal the Term Loan B Margin shall be 2.25%, and

                           (ii) if the Honeywell Contract is not renewed after
         the Third Amendment Effective Date and prior to May 1, 2003 for at
         least 36 months, on substantially the same substantive terms as the
         Honeywell Contract as in effect on the Closing Date, (A) on and after
         May 1, 2003, the Term Loan B Margin shall be 4%, and (B) if not more
         than five Business Days after the end of the fiscal year of Parent
         ending April 30, 2004, the Agent receives a certificate from the chief
         financial officer of the Parent, certifying that no Default or Event of
         Default has occurred and is continuing, and Excess Availability was at
         all times during such fiscal year greater than or equal to $4,000,000,
         the Term Loan B Margin shall be 3.25%.

                  "Third Amendment" means the Third Amendment to the Loan and
         Security Agreement dated as of February 6, 2003, among Borrowers,
         Lenders and Agent.

                  "Third Amendment Effective Date" means the date on which all
         of the conditions precedent to the effectiveness of the Third Amendment
         have been fulfilled or waived.

                  "UCC Authorization Letter" means a letter duly executed by any
         Loan Party authorizing Agent to file appropriate UCC financing
         statements in such office or offices as may be necessary or, in the
         opinion of Agent, desirable to perfect the security interests purported
         to be created hereby or any other Loan Document."

                                       7
<PAGE>

               3. Revolver Advances. Section 2.1(e) of the Loan Agreement is
hereby deleted in its entirety.

               4. Term Loans. Section 2.2 of the Loan Agreement is hereby
amended in its entirety to read as follows:

                  (a) Subject to the terms and conditions of this Agreement, on
         the Closing Date each Lender with a Term Loan A Commitment agrees
         (severally, not jointly or jointly and severally) to make term loans
         (collectively, the "Term Loan A") to Borrowers in an amount equal to
         such Lender's Pro Rata Share of the Maximum Term Loan A Amount. It is
         understood and agreed that the principal of Term Loan A outstanding on
         the Third Amendment Effective Date shall remain outstanding and shall
         not be deemed to be repaid or refinanced on the Third Amendment
         Effective Date.

                  (b) Subject to the terms and conditions of this Agreement, on
         the Third Amendment Effective Date each Lender with a Term Loan B
         Commitment agrees (severally, not jointly or jointly and severally) to
         make term loans (collectively, the "Term Loan B") to Borrowers in an
         amount equal to such Lender's Pro Rata Share of the Maximum Term Loan B
         Amount.

                  (c) The Term Loan A shall be repaid in equal monthly
         installments of $350,000 of principal, payable on the first day of each
         month, commencing on August 1, 2001, until the Term Loan A is repaid in
         full; provided, however, that the last such installment shall be in the
         amount necessary to repay in full the unpaid principal amount of the
         Term Loan A.

                  (d) The Term Loan B shall be repaid in equal monthly
         installments of $192,500.00 of principal, payable on the first day of
         each month, commencing on May 1, 2003, until the Term Loan B is repaid
         in full; provided, however, that the last such installment shall be in
         the amount necessary to repay in full the unpaid principal amount of
         the Term Loan B.

                  (e) Within ten (10) days of delivery to the Agent of each set
         of unaudited quarterly financial statements pursuant to Section 6.3(a),
         commencing with the delivery to the Agent of the financial statements
         for the fiscal quarter of the Parent ended July 31, 2001 or, if such
         financial statements are not delivered to the Agent on the date such
         statements are required to be delivered pursuant to Section 6.3(a), ten
         (10) days after the date such statements are required to be delivered
         to the Agent pursuant to Section 6.3(a), the Borrowers shall prepay the
         outstanding principal of the Term Loan in an amount equal to 50% of the
         Excess Cash Flow of the Borrowers for such fiscal quarter, such
         prepayments to be applied, first, against the remaining installments of
         principal of the Term Loan A in the inverse order of maturity until
         paid in full and, second, against the remaining installments of
         principal of the Term Loan B in the inverse order of maturity until
         paid in full. Each such prepayment of the Term Loan shall be
         accompanied by the payment of accrued interest to the date of such
         prepayment on the amount prepaid.

                                       8
<PAGE>

                  (f) If any audit by the Parent's independent accountants or
         any other subsequent event or events shall demonstrate that the Excess
         Cash Flow set forth in any quarterly financial statements was
         inaccurate and that as a result the Borrowers did not prepay the Term
         Loan by the appropriate amount, the Borrowers will pay to the Agent
         immediately on demand the excess of (i) the amount of principal that
         should have been prepaid with respect to such fiscal quarter, over (ii)
         the amount of principal that was prepaid with respect to such fiscal
         quarter.

                  (g) Within three Business Days after the Parent's receipt of a
         tax refund of approximately $1,500,000 from the United States Treasury,
         the Borrowers shall prepay the outstanding principal of the Term Loan
         in an amount equal to $1,000,000, such prepayment to be applied, first,
         against the remaining installments of principal of the Term Loan A in
         the inverse order of maturity until paid in full and, second, against
         the remaining installments of principal of the Term Loan B in the
         inverse order of maturity until paid in full. Each such prepayment of
         the Term Loan shall be accompanied by the payment of accrued interest
         to the date of such prepayment on the amount prepaid.

                  (h) No amount paid or prepaid with respect to the Term Loan
         may be reborrowed."

               5. Interest Rates and Letter of Credit Fee: Rates, Payments, and
Calculations. Section 2.6 of the Loan Agreement is hereby amended by amending
clauses (a) and (c) in their entirety to read as follows:

                  "(a) INTEREST RATES. Except as provided in clause (c) below,
         all Obligations (except for undrawn Letters of Credit) that have been
         charged to the Loan Account pursuant to the terms hereof shall bear
         interest on the Daily Balance thereof as follows: (i) if the relevant
         Obligation is the Term Loan A, at a per annum rate equal to the Base
         Rate plus the Term Loan A Margin, (ii) if the relevant Obligation is
         the Term Loan B, at a per annum rate equal to the Base Rate plus the
         Term Loan B Margin and (iii) otherwise, at a per annum rate equal to
         the Base Rate plus the Revolver Margin."

                  "(c) DEFAULT RATE. Upon the occurrence and during the
         continuation of an Event of Default (and at the election of Agent or
         the Required Lenders),

                           (i) all Obligations (except for undrawn Letters of
         Credit) that have been charged to the Loan Account pursuant to the
         terms hereof shall bear interest on the Daily Balance thereof at a per
         annum rate equal to 4 percentage points above the sum of the Base Rate
         plus the Term Loan A Margin, and

                           (ii) the Letter of Credit fee provided for above
         shall be increased to 4 percentage points above the per annum rate
         otherwise applicable hereunder."

               6. Fees. (a) Clause (i) of Section 2.11(c) of the Loan Agreement
is hereby amended in its entirety to read as follows:

                                       9
<PAGE>

         "(i) a fee of $850 per day, per auditor, plus out-of-pocket expenses,
         for each financial audit of a Borrower performed by personnel employed
         by Agent,"

                  (b) A new subsection (d) is hereby added to Section 2.11 of
the Loan Agreement, to read as follows:

                  "(d) TERM LOAN B FEE. On the Third Amendment Effective Date,
         the Borrowers shall pay to Agent a nonrefundable fee in the amount of
         3% of the Term Loan B Amount as of such date."

               7. Term. The first sentence of Section 3.4 of the Loan Agreement
is hereby amended in its entirety to read as follows:

                  "This Agreement shall become effective upon the execution and
         delivery hereof by Borrowers, Agent, and the Lenders and shall continue
         in full force and effect for a term ending on July 23, 2007 (the
         "Maturity Date")."

               8. Remtech Cash Management. Article 6 of the Loan Agreement is
hereby amended by adding new Sections 6.16 and 6.17 to the end of Article 6 to
read as follows:

                  "6.16 REMTECH CASH MANAGEMENT. Within twenty-one (21) days of
         the Third Amendment Effective Date, cause Remtech to comply in all
         respects with all cash management provisions of this Agreement. Until
         such time as Remtech is in full compliance with all cash management
         provisions of this Agreement, Parent shall (i) cause all checks and
         other remittances collected by or on behalf of Remtech to be deposited
         on a daily basis into account number 4112946090 maintained by Remtech
         at Bank of America, N.A. (the "Remtech DDA") and (ii) report on a daily
         basis to Agent the amount of each such deposit into the Remtech DDA.

                  6.17 HONEYWELL CONTRACT. On or before April 30, 2003, (i)
         renew the Honeywell Contract on substantially the same substantive
         terms as the Honeywell Contract as in effect on the Closing Date, and
         (ii) provide the Agent with evidence reasonably satisfactory to the
         Agent of such renewal."

               9. Indebtedness. Section 7.1 of the Loan Agreement is hereby
amended by (a) deleting the word "and" at the end of clause (e) thereof, (b)
deleting the period at the end of clause (f) thereof and substituting "; and"
therefor, and (c) inserting a new clause (g) therein, to read as follows:

                  "(g) subordinated Indebtedness owing to the Remtech Sellers in
         an aggregate principal amount not to exceed $1,800,000, which
         Indebtedness shall be subject to the Remtech Subordination Agreement."

              10. Use of Proceeds. Section 7.17 of the Loan Agreement is hereby
amended in its entirety to read as follows:

                                       10
<PAGE>

                  "7.17 USE OF PROCEEDS. Use the proceeds of the Advances and
         the Term Loan for any purpose other than (a) on the Closing Date, (i)
         to repay in full the outstanding principal, accrued interest, and
         accrued fees and expenses owing to Existing Lender, (ii) to repay the
         Indebtedness owing to State Bank in an amount not in excess of
         $1,000,000 and (iii) to pay transactional fees, costs, and expenses
         incurred in connection with this Agreement, the other Loan Documents,
         and the transactions contemplated hereby and thereby, (b) on the Third
         Amendment Effective Date, (i) to pay a portion of the purchase price
         for the Remtech Stock pursuant to the Remtech Purchase Agreement, and
         (ii) to pay transactional fees, costs, and expenses incurred in
         connection with the Remtech Purchase Documents, and the transactions
         contemplated hereby and thereby, and (c) thereafter, consistent with
         the terms and conditions hereof, for its lawful and permitted
         purposes."

              11. Fixed Charge Coverage Ratio. Section 7.20 of the Loan
Agreement is hereby amended by adding a new subsection (c), to read in its
entirety as follows:

                  "(c) Fixed Charge Coverage Ratio. (i) Permit the Fixed Charge
         Coverage Ratio for any fiscal quarter of the Parent and its
         Subsidiaries set forth below to be less than the amount set forth
         opposite such fiscal quarter:

<TABLE>
<CAPTION>
                    --------------------------------------------------
                                                        FIXED CHARGE
                    FISCAL QUARTER END                  COVERAGE RATIO
                    --------------------------------------------------
<S>                                                     <C>
                    April 30, 2003                      1.00 to 1
                    --------------------------------------------------
                    July 31, 2003                       1.25 to 1
                    --------------------------------------------------
                    October 31, 2003                    1.25 to 1
                    --------------------------------------------------
                    January 31, 2003                    1.25 to 1
                    --------------------------------------------------
                    April 30, 2004                      1.25 to 1
                    --------------------------------------------------
</TABLE>

                  (ii) Permit the Fixed Charge Coverage Ratio for any fiscal
         quarter of the Parent and its Subsidiaries ending after April 30, 2004,
         to be less than 1.5 to 1 (it being understood and agreed that the
         Parent and the Agent intend to negotiate for a revised Fixed Charge
         Coverage Ratio promptly after receipt by the Agent pursuant to Section
         6.3(c) of the Projections of Parent and its Subsidiaries for the fiscal
         year beginning on May 1, 2004, but that until the Parent and the Agent
         have entered into a written amendment to this provision, the
         requirement set forth in this clause (ii) will remain in full force and
         effect)."

              12. Additional Negative Covenants. Article 7 of the Loan Agreement
is hereby amended by adding new Sections 7.23 and 7.24 to the end of Article 7,
to read as follows:

                  "7.23 AMENDMENT TO REMTECH PURCHASE DOCUMENTS. Amend, change,
         agree to any amendment or other change to, or waive any of its rights
         under, any Remtech Purchase Document.

                                       11
<PAGE>

                  7.24 EXCESS AVAILABILITY. Not permit Excess Availability to be
         less than $1,500,000 at any time."

              13. Events of Default. Article 8 of the Loan Agreement is hereby
amended by (a) deleting the period at the end of Section 8.14, (b) adding a
semicolon at the end thereof and (c) adding new Sections 8.15 and 8.16 to the
end thereof, to read as follows:

                  "8.15 (i) any representation or warranty made or deemed made
         by or on behalf of any Loan Party or any of its Subsidiaries or by any
         officer, employee, agent or director of any Loan Party or any of its
         Subsidiaries, under or in connection with any Loan Document or any
         Remtech Purchase Document or under or in connection with any report,
         certificate, or other document delivered to Agent, any Lender, the
         Issuing Lender or any Remtech Seller pursuant to any Loan Document or
         any Remtech Purchase Document shall have been incorrect in any material
         respect when made or deemed made, or (ii) any representation or
         warranty made or deemed made by or on behalf of any Remtech Seller
         under or in connection with any Remtech Purchase Document or under or
         in connection with any report, certificate, or other document delivered
         to a Loan Party pursuant to any Remtech Purchase Document shall have
         been incorrect in any material respect when made or deemed made; or

                  8.16 any breach, default, event of default or termination
         shall occur under any Remtech Purchase Document or other Material
         Contract (after giving effect to any applicable grace period, if any,
         contained in any such Remtech Purchase Document or other Material
         Contract) that gives any third party the right to terminate any such
         Remtech Purchase Document or other Material Contract or that otherwise
         could reasonably be expected to result in a Material Adverse Change."

              14. Amendments and Waivers. Clause (j) of Section 15.1 of the Loan
Agreement is hereby amended in its entirety to read as follows:

         "(j) change the definition of Borrowing Base or the definitions of
         Eligible Accounts, Maximum Revolver Amount, Maximum Term Loan A Amount,
         Maximum Term Loan B Amount, Term Loan A Amount, Term Loan B Amount, or
         change Section 2.1(b); or"

              15. Issuance of Equity Interests to Foothill. Section 18.1 of the
Loan Agreement is hereby amended in its entirety to read as follows:

                  "18.1 AUTHORIZATION AND ISSUANCE OF WARRANTS. Parent has
         authorized (a) the issuance of a common stock purchase warrant in the
         form of Exhibit W-1 hereto (such warrant, together with the rights to
         purchase Common Stock provided thereby and all warrants covering such
         stock issued upon transfer, division or combination of, or in
         substitution for, any thereof, being herein called the "Warrants") for
         issuance to Foothill pursuant to this Agreement, and (b) the issuance
         of such number of shares of Common Stock as shall be necessary to

                                       12
<PAGE>

         permit Parent to comply with its obligations to issue the shares of
         Common Stock issuable pursuant to the Warrants, which shall initially
         be an amount equal to 160,000 shares of the issued and outstanding
         shares of Common Stock. It is understood and agreed that the Warrants
         contain provisions affecting the number of shares of Common Stock that
         may be acquired, which provisions are set forth in the Warrants. Such
         Warrants will have an initial exercise price equal to the arithmetic
         average of the closing bid prices of the Common Stock on the ten
         trading days immediately preceding but not including the Third
         Amendment Effective Date, rounded downward to the penny. Parent has the
         requisite corporate power and authority to enter into and perform its
         obligations under the Warrants and the Registration Rights Agreement
         and to issue the Warrant Shares, in accordance with their terms. The
         Warrant Shares have been duly authorized and reserved for issuance upon
         exercise of the Warrants, and upon such exercise, will be validly
         issued, fully paid and non-assessable, free from all taxes, liens and
         charges with respect to the issue thereof, and will not be subject to
         preemptive rights or other similar rights of stockholders of Parent."

              16. Schedules. Schedule C-1 to the Loan Agreement is hereby
amended in its entirety to read as set forth in Annex I to this Amendment.
Schedule 2.7(a) to the Loan Agreement is hereby amended in its entirety to read
as set forth in Annex II to this Amendment. Schedule 5.4 to the Loan Agreement
is hereby amended in its entirety as set forth on Annex III to this Amendment.
Schedule 5.6 to the Loan Agreement is hereby amended in its entirety as set
forth on Annex IV to this Amendment. Schedule 5.7(b) to the Loan Agreement is
hereby amended in its entirety as set forth on Annex V to this Amendment.
Schedule 5.7(c) to the Loan Agreement is hereby amended in its entirety as set
forth on Annex VI to this Amendment. Schedule 5.17 to the Loan Agreement is
hereby amended in its entirety as set forth on Annex VII to this Amendment.

              17. Conditions Precedent. The effectiveness of this Amendment and
any obligation of any Lender to make the Term Loan B are subject to the
fulfillment, in a manner satisfactory to the Agent, of each of the following
conditions precedent (the first date upon which all such conditions shall have
been fulfilled or waived being herein called the "Third Amendment Effective
Date"):

                (a) Representations and Warranties; No Event of Default. The
representations and warranties contained herein, in Section 5 of the Loan
Agreement and in each other Loan Document and certificate or other writing
delivered to the Agent or any Lender pursuant hereto on or prior to the Third
Amendment Effective Date shall be correct in all material respects on and as of
the Third Amendment Effective Date as though made on and as of such date, except
to the extent that such representations and warranties (or any schedules related
thereto) expressly relate solely to an earlier date (in which case such
representations and warranties shall be true and correct in all material
respects on and as of such date); and no Default or Event of Default shall have
occurred and be continuing on the Third Amendment Effective Date or would result
from this Amendment becoming effective in accordance with its terms.

                                       13
<PAGE>

                (b) Delivery of Documents. The Agent shall have received on or
before the Third Amendment Effective Date the following, each in form and
substance satisfactory to the Agent and, unless indicated otherwise, dated the
Third Amendment Effective Date:

                        (i) counterparts of this Amendment which bear the
signatures of each Borrower (including Remtech), the Agent and each Lender;

                        (ii) evidence of the filing of UCC financing statements
naming Remtech as debtor and Remtech as secured party, reflecting the security
interests granted by Remtech to Agent, for the benefit of the Lender Group, in
all the assets and properties of Remtech;

                        (iii) results of UCC, judgment and UCC searches with
respect to each Borrower (including, without limitation, Remtech), in such
jurisdictions as Agent may reasonably require;

                        (iv) a Pledge Amendment (as defined in the Stock Pledge
Agreement), duly executed by each party to the Stock Pledge Agreement, together
with all Stock certificates (together with undated stock powers with respect
thereto endorsed in blank) representing the Remtech Stock and any Pledged Debt
pledged thereunder (duly endorsed in blank);

                        (v) (A) a certificate of the chief executive officer or
the chief financial officer of Remtech, certifying that attached thereto are
true, complete and correct copies of the Remtech Purchase Documents and (B) a
copy of the opinion of counsel to the Remtech Sellers, which shall permit Agent
and Lenders to rely thereon;

                        (vi) a copy of the resolutions of each Borrower
(including Remtech) and each Guarantor, certified as of the Third Amendment
Effective Date by an authorized officer thereof, authorizing (A) the borrowings
contemplated by this Amendment by each Borrower (including Remtech) and the
transactions contemplated by the Loan Documents to which such Person is or will
be a party, and (B) the execution, delivery and performance by each such Person
of this Amendment and the other Loan Documents to be executed and delivered
pursuant hereto to which such Person is a party, and the performance of the Loan
Agreement, as amended;

                        (vii) a certificate of an authorized officer of each
Borrower (including Remtech) and each Guarantor, certifying the names and true
signatures of the representatives of such Person authorized to sign this
Amendment and the other documents to be executed and delivered by such Person in
connection herewith, together with evidence of the incumbency of such authorized
officers;

                        (viii) a certificate of the appropriate official(s) of
the state of organization of Remtech, dated within 10 days of the Third
Amendment Effective Date, certifying as to the subsistence and good standing of
Remtech in such state;

                        (ix) the Remtech Post-Closing Agreement, duly executed
by the Borrowers;

                                       14
<PAGE>

                        (x) certificates of an authorized officer of each
Borrower (including Remtech) and each Guarantor (A) with respect to Remtech,
certifying that attached thereto is a true, complete and correct copy of the
charter of Remtech and (B) with respect to each other Borrower and each
Guarantor, confirming that the charter of each such Person has not been amended
or otherwise modified since the Closing Date and that the copy thereof
previously delivered to Agent is true, correct and complete;

                        (xi) certificates of an authorized officer of each
Borrower (including Remtech) and each Guarantor (A) with respect to Remtech,
certifying that attached thereto is a true, complete and correct copy of the
by-laws of Remtech and (B) with respect to each other Borrower and each
Guarantor, confirming that the by-laws of each such Person have not been amended
or otherwise modified since the Closing Date and that the copy thereof
previously delivered to Agent is true, correct and complete;

                        (xii) an opinion of Burch, Porter & Johnson PLLC,
counsel to the Loan Parties, as to such matters as Agent may reasonably request;

                        (xiii) [intentionally omitted];

                        (xiv) a certificate of an authorized officer of the
Parent certifying as to the matters set forth in subsection (a) of Section 17
hereto;

                        (xv) each joinder, in the form attached as Exhibit A and
Exhibit B to this Amendment, duly executed by Remtech;

                        (xvi) a pay-off letter, duly executed by Bank of
America, N.A., as successor to NationsBank, N.A., together with UCC termination
statements and other documentation evidencing the termination by Bank of
America, N.A. of its Liens on the assets of Remtech;

                        (xvii) a collateral assignment of the Remtech Purchase
Agreement, duly executed by Parent, in favor of Agent;

                        (xviii) a Consent and Agreement, duly executed by the
Remtech Sellers with respect to Parent's collateral assignment of the Remtech
Purchase Agreement;

                        (xix) the Remtech Subordination Agreement, duly executed
by the Parent and the Remtech Sellers;

                        (xx) the Amendment No. 1 to Warrants;

                        (xxi) Amendment No. 1 to the Registration Rights
Agreement;

                        (xxii) a Disbursement Letter executed and delivered by
Administrative Borrower regarding the extensions of credit to be made on the
Third Amendment Effective Date;

                                       15
<PAGE>

                        (xxiii) certificates of insurance with respect to
Remtech, together with endorsements thereto, as required by Section 6.8 of the
Loan Agreement, the form and substance of which shall be satisfactory to Agent;

                        (xxiv) a certificate of an authorized officer of Remtech
and Parent certifying that all conditions to the effectiveness of the purchase
of the Remtech Stock, other than the payment of the purchase price, have been
satisfied;

                        (xxv) such other agreements, instruments, approvals,
opinions and other documents as Agent may reasonably request from the Borrowers.

                (c) UCC Searches. The Agent shall have received results of the
UCC, tax and judgment lien searches with respect to Remtech and each Remtech
Seller.

                (d) Proceedings. All proceedings in connection with the
transactions contemplated by this Amendment, and all documents incidental
thereto, shall be satisfactory to the Agent and its counsel, and the Agent and
such counsel shall have received from the Borrowers all such information and
such counterpart originals or certified copies of documents, and such other
agreements, instruments, approvals, opinions and other documents, as the Agent
or such counsel may reasonably request.

                (e) Consummation of Acquisition. Concurrently with the making of
the Term Loan B, (i) Parent shall have purchased pursuant to the Remtech
Purchase Agreement (no provision of which shall have been amended or otherwise
modified or waived without the prior written consent of Agent) all of the
Remtech Stock, free and clear of all Liens, other than Permitted Liens, (ii) the
proceeds of the Term Loan B shall have been applied by Parent to pay a portion
of the purchase price for the Remtech Stock and to pay other costs relating to
the acquisition of the Remtech Stock, and (iii) each of the Remtech Sellers, the
Parent and Remtech shall have fully performed all of the obligations to be
performed by such Person on or prior to the Third Amendment Effective Date under
the Remtech Purchase Agreement and the other Remtech Purchase Documents.

                (f) Lender Group Expenses. Borrowers shall have paid to Agent
and each Lender, in immediately available funds, an amount equal to all Lender
Group Expenses which were incurred by such Person in connection with the
preparation, execution and delivery of this Amendment and the other related
agreements, instruments and documents.

                (g) Required Availability. Borrowers shall have Excess
Availability of not less than $4,000,000 after giving effect to the Term Loan B,
the payment of all consideration which is due and payable by Parent under the
Remtech Purchase Agreement and the payment of all fees, costs and expenses in
connection with the Remtech Purchase Agreement and this Amendment.

                (h) Term Loan B Fee. The Borrowers shall have paid to the Agent,
for the benefit of the Lender Group, in immediately available funds, a fully
earned fee equal to $231,000.

                                       16
<PAGE>

              18. Representations and Warranties. Each Borrower (including
Remtech) hereby represents and warrants to the Agent and the Lenders as follows:

                (a) Each Borrower (including Remtech) (i) is a corporation duly
organized, validly existing and in good standing under the laws of the state of
its incorporation and (ii) has all requisite corporate power, authority and
legal right to execute, deliver and perform this Amendment and the other
agreements instruments and documents required to be delivered by it pursuant to
Section 17 hereof (together with this Amendment, collectively the "Third
Amendment Documents") and the Remtech Purchase Documents to which it is a party,
and to perform the Loan Agreement, as amended hereby.

                (b) The execution, delivery and performance by the Borrowers
(including Remtech) of this Amendment and the other Third Amendment Documents
and Purchase Documents to which it is a party and the performance by the
Borrowers of the Loan Agreement as amended hereby (i) have been duly authorized
by all necessary corporate action, (ii) do not and will not violate or create a
default under any Borrower's charter or by-laws, any applicable law or any
contractual restriction binding on or otherwise affecting any Borrower or any
Borrower's properties, and (iii) except as provided in the Loan Documents, do
not and will not result in or require the creation of any lien, security
interest or other charge or encumbrance upon or with respect to any Borrower's
property.

                (c) No authorization or approval or other action by, and no
notice to or filing with, any Governmental Authority or other regulatory body is
required in connection with the due execution, delivery and performance by any
Borrower (including Remtech) of this Amendment, any other Third Amendment
Document or any Purchase Document or the performance by any Borrower of the Loan
Agreement, as amended hereby.

                (d) Each of this Amendment, the other Third Amendment Documents,
the Purchase Documents and the Loan Agreement, as amended hereby, constitutes
the legal, valid and binding obligations of each Borrower (including Remtech)
that is a party thereto, enforceable against each Borrower in accordance with
their terms.

                (e) The representations and warranties contained in Section 5 of
the Loan Agreement are true and correct on and as of the Third Amendment
Effective Date as though made on and as of the Third Amendment Effective Date
(except to the extent such representations and warranties expressly relate to an
earlier date), and no Event of Default has occurred and is continuing on and as
of the Third Amendment Effective Date.

                (f) Each of this Amendment, the Loan Agreement, as amended
hereby, and each other Loan Document to which each Borrower is a party is a
legal, valid and binding obligation of such Person, enforceable against such
Person in accordance with its terms, except as such enforceability may be
limited by or subject to any bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting creditors' rights generally.

                (g) The Parent has delivered to Agent a true, complete and
correct copy of the Remtech Purchase Agreement, including all schedules and
exhibits thereto, and all other Remtech Purchase Documents. The Remtech Purchase
Documents set forth the entire

                                       17

<PAGE>

agreement and understanding of the parties thereto relating to the subject
matter thereof, and there are no other agreements, arrangements or
understandings, written or oral, relating to the matters covered thereby. The
Remtech Purchase Documents are the legal, valid and binding obligations of
Parent and Remtech, and to the best knowledge of Parent and Remtech, each of the
Remtech Sellers party thereto, enforceable against Parent and Remtech, and to
the best knowledge of Parent and Remtech, each of the Remtech Sellers party
thereto, in accordance with their terms.

                (h) All conditions precedent to the purchase of the Remtech
Stock by Parent have been fulfilled or (with the written consent of Agent)
waived, the Remtech Purchase Documents have not been amended or otherwise
modified, and there has been no breach of any term or condition of the Remtech
Purchase Documents. No authorization or approval or other action by, and no
notice to or filing with, any Governmental Authority or any other Person is
required for such acquisition, other than such as have been or will be obtained
on or prior to the Third Amendment Effective Date. As of the Third Amendment
Effective Date, Parent has acquired pursuant to the Remtech Purchase Documents,
and has become the owner of all of the Remtech Stock, free and clear of any Lien
other than Permitted Liens.

                (i) Remtech DDAs. Other than the Remtech DDA, Remtech does not
maintain any checking or other demand deposit accounts or any other bank
accounts.

              19. Joinder of Remtech. (a) Loan Agreement. Remtech hereby agrees
to become a Borrower under the Loan Agreement as if it were a signatory thereto
on the Closing Date, and Remtech shall comply with and be subject to all of the
terms, conditions, covenants, agreements and obligations set forth in the Loan
Agreement. Remtech agrees that each reference to a "Borrower" or the "Borrowers"
in the Loan Agreement shall include Remtech. Remtech acknowledges that is has
received a copy of the Loan Agreement and the other Loan Documents. In
furtherance of the terms and provisions of Section 4 of the Loan Agreement,
Remtech hereby grants to Agent, for the benefit of the Lender Group, a
continuing lien on and security interest in all of its right, title, and
interest in all currently existing and hereafter acquired or arising Personal
Property Collateral in order to secure prompt repayment of any and all of the
Obligations in accordance with the terms and conditions of the Loan Documents
and in order to secure prompt performance by Remtech and the other Borrowers of
each of their covenants and duties under the Loan Documents. The Agent's Liens
in and to the Personal Property Collateral of Remtech shall attach to all of its
Personal Property Collateral without further act on the part of Agent or
Remtech. Anything contained in this Agreement or any other Loan Document to the
contrary notwithstanding, except for Permitted Dispositions, neither Remtech nor
any other Borrower has any authority, express or implied, to dispose of any item
or portion of the Collateral.

                (b) Contribution Agreement. By its execution of this Amendment,
Remtech hereby (i) confirms that the representations and warranties contained in
Section 4 of the Contribution Agreement are true and correct as to it as of the
Third Amendment Effective Date, (ii) agrees that from and after the Third
Amendment Effective Date it shall be an Obligor under the Contribution Agreement
as if it were a signatory thereto and shall be bound by all of the provisions
thereof, and (iii) agrees that it shall comply with and be subject to all the
terms, conditions, covenants, agreements and obligations set forth therein.
Remtech hereby agrees that each

                                       18
<PAGE>

reference to an "Obligor" or the "Obligors" in the Contribution Agreement shall
include Remtech. Remtech acknowledges that it has received a copy of the
Contribution Agreement and that it has read and understands the terms thereof.
To evidence the foregoing provisions of this paragraph (b), Remtech shall
execute the joinder amendment attached hereto as Exhibit A and deliver the same
to Agent on the Third Amendment Effective Date.

                (c) Intercompany Subordination Agreement. By its execution of
this Amendment, Remtech hereby (i) agrees that from and after the Third
Amendment Effective Date it shall be an Obligor under the Intercompany
Subordination Agreement as if it were a signatory thereto and shall be bound by
all of the provisions thereof, and (ii) agrees that it shall comply with and be
subject to all the terms, conditions, covenants, agreements and obligations set
forth therein. Remtech hereby agrees that each reference to an "Obligor" or the
"Obligors" in the Intercompany Subordination Agreement shall include Remtech.
Remtech acknowledges that it has received a copy of the Intercompany
Subordination Agreement and that it has read and understands the terms thereof.
To evidence the foregoing provisions of this paragraph (c), Remtech shall
execute the joinder amendment attached hereto as Exhibit B and deliver the same
to Agent on the Third Amendment Effective Date.

             20. Consent to Remtech Acquisition.

                (a) Pursuant to the request of Parent and in accordance with
Section 15.1 of the Loan Agreement, the Lenders hereby consent to, and waive any
Event of Default that would otherwise arise under Section 7.13 of the Loan
Agreement by reason of, the acquisition by the Parent of the issued and
outstanding Stock of Remtech pursuant to the Remtech Purchase Agreement,
effective as of the Third Amendment Effective Date.

                (b) The consents and waivers set forth herein are limited to the
transactions expressly described herein. The consent and waiver set forth herein
shall be effective only in the specific instances and for the specific purposes
set forth herein and do not allow any other or further departure from the terms
and conditions of the Loan Agreement and other Loan Documents, which terms shall
continue in full force and effect. Without limiting the generality of the
foregoing, it is understood and agreed that nothing in this Amendment shall be
deemed a waiver of any other Event of Default or Default, whether known or
unknown by any Lender or any Agent and whether now existing or hereafter
arising.

             21. Miscellaneous.

                (a) Continued Effectiveness of the Loan Agreement. Except as
otherwise expressly provided herein, the Loan Agreement and the other Loan
Documents are, and shall continue to be, in full force and effect and are hereby
ratified and confirmed in all respects, except that on and after the Third
Amendment Effective Date (i) all references in the Loan Agreement to "this
Agreement", "hereto", "hereof", "hereunder" or words of like import referring to
the Loan Agreement shall mean the Loan Agreement as amended by this Amendment,
and (ii) all references in the other Loan Documents to which any Borrower is a
party to the "Loan Agreement", "thereto", "thereof", "thereunder" or words of
like import referring to the Loan Agreement shall mean the Loan Agreement as
amended by this Amendment. Except as expressly provided herein, the execution,
delivery and effectiveness of

                                       19
<PAGE>

this Amendment shall not operate as an amendment of any right, power or remedy
of Agent or any Lender under the Loan Agreement or any other Loan Document, nor
constitute an amendment of any provision of the Loan Agreement or any other Loan
Document.

                (b) Counterparts. This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which shall be deemed to be an original, but all of which taken together
shall constitute one and the same agreement.

                (c) Headings. Section headings herein are included for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

                (d) Governing Law. This Amendment shall be governed by, and
construed in accordance with, the law of the State of New York.

                (e) Costs and Expenses. The Borrowers jointly and severally
agree to pay on demand all reasonable fees, costs and expenses of Agent and each
Lender in connection with the preparation, execution and delivery of this
Amendment and the other related agreements, instruments and documents.

                (f) Amendment as Loan Document. Each Borrower hereby
acknowledges and agrees that this Amendment constitutes a "Loan Document" under
the Loan Agreement. Accordingly, it shall be an Event of Default under the Loan
Agreement (i) if any representation or warranty made by a Borrower under or in
connection with this Amendment shall have been untrue, false or misleading in
any material respect when made or (ii) if Borrowers fail to perform, keep, or
observe any term, provision, condition, covenant, or agreement contained in this
Amendment.

                (g) Collateral. It is understood and agreed that all Collateral
(as such term is amended pursuant to this Amendment) shall secure the
Obligations under the Loan Documents. In addition, each Borrower confirms and
agrees that to the extent that any Loan Document purports to assign or pledge to
the Agent (on behalf of the Lenders), or to grant to the Agent (on behalf of the
Lenders) a Lien on any Collateral as security for the Obligations of such
Borrower from time to time existing in respect of the Loan Agreement and the
Loan Documents, such pledge, assignment and/or grant of a Lien is hereby
ratified and confirmed in all respects.

                (h) Waiver of Jury Trial. EACH BORROWER, THE AGENT AND THE
LENDERS HEREBY IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AMENDMENT OR ANY OF
THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.

                                       20
<PAGE>
                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed and delivered as of the date first above written.

                             BORROWERS:

                             SCB COMPUTER TECHNOLOGY, INC.,
                              a Tennessee corporation

                             By:      /s/ Michael J. Boling
                                ------------------------------------------------

                             Title: Executive Vice President - Finance &
                                    Administration

                             SCB COMPUTER TECHNOLOGY OF ALABAMA, INC.,
                              an Alabama corporation

                             By:      /s/ Michael J. Boling
                                ------------------------------------------------

                              Title:  Executive Vice President - Finance &
                                      Administration

                             PARTNERS RESOURCES INC.,
                              an Arizona corporation

                             By:      /s/ Michael Boling
                                ------------------------------------------------

                             Title:   Executive Vice President - Finance &
                                      Administration

                             REMTECH SERVICES, INC.,
                              a Virginia corporation

                             By:      /s/ Michael Boling
                                ------------------------------------------------

                             Title:   Executive Vice President - Finance &
                                      Administration

                             AGENT AND LENDER:

                             FOOTHILL CAPITAL CORPORATION,
                              a California corporation, as Agent and as a Lender

                             By:      /s/ David J. Sanchez, Sr.
                                ------------------------------------------------

                             Title:  Vice President

<PAGE>

                                     ANNEX I

                                  SCHEDULE C-1
                                   COMMITMENTS

                                 ON CLOSING DATE

<TABLE>
<CAPTION>
                                       REVOLVER      TERM LOAN A    TERM LOAN B     TOTAL
             LENDER                   COMMITMENT     COMMITMENT     COMMITMENT    COMMITMENT
             ------                   -----------    ------------   -----------   -----------
<S>                                   <C>            <C>            <C>           <C>
  Foothill Capital Corporation        $17,500,000    $10,000,000         NA       $27,500,000
                                      -----------    -----------         --       -----------

           All Lenders                $17,500,000    $10,000,000         NA       $27,500,000
                                      ===========    ===========         ==       ===========
</TABLE>

                  ON AND AFTER THIRD AMENDMENT EFFECTIVE DATE
<TABLE>
<CAPTION>
                                       REVOLVER      TERM LOAN A    TERM LOAN B     TOTAL
             LENDER                   COMMITMENT     COMMITMENT     COMMITMENT    COMMITMENT
             ------                   -----------    ------------   -----------   -----------
<S>                                   <C>            <C>            <C>           <C>
  Foothill Capital Corporation        $17,500,000    $ 1,485,000     $7,700,000   $26,685,000
                                      -----------    -----------     ----------   -----------

           All Lenders                $17,500,000    $ 1,485,000     $7,700,000   $26,685,000
                                      ===========    ===========     ==========   ===========
</TABLE>

<PAGE>

                                    EXHIBIT A

                        JOINDER TO CONTRIBUTION AGREEMENT

        Reference is hereby made to the Contribution Agreement, dated as of July
23, 2001 (as amended or otherwise modified from time to time, the "Agreement"),
among SCB Computer Technology, Inc., a Tennessee corporation (the "Parent"), and
each of Parent's subsidiaries party thereto, to which this Joinder is attached.
All capitalized terms not otherwise defined herein shall have the meanings
assigned to such terms in the Agreement when used herein. The undersigned hereby
(i) confirms that the representations and warranties contained in Section 4 of
the Agreement are true and correct as to it as of the date set forth below (the
"Third Amendment Effective Date"), (ii) agrees that from and after the Third
Amendment Effective Date it shall be an Obligor under the Agreement as if it
were a signatory thereto and shall be bound by all of the provisions thereof,
and (iii) agrees that it shall comply with and be subject to all the terms,
conditions, covenants, agreements and obligations set forth therein. The
undersigned hereby agrees that each reference to an "Obligor" or the "Obligors"
in the Agreement shall include the undersigned.

Date:  February 6, 2003
       ----------------

                                     REMTECH SERVICES, INC.,
                                      a Virginia corporation

                                     By:      /s/ Michael J. Boling
                                        ----------------------------------------

                                     Title: Executive Vice President - Finance &
                                              Administration

<PAGE>

                                    EXHIBIT B

                 JOINDER TO INTERCOMPANY SUBORDINATION AGREEMENT

        Reference is hereby made to the Intercompany Subordination Agreement
dated as of July 23, 2001 (as amended or otherwise modified from time to time,
the "Agreement"), among SCB Computer Technology, Inc., a Tennessee corporation
(the "Parent"), each of Parent's subsidiaries party thereto, and Foothill
Capital Corporation, as agent for the lenders referred to therein, to which this
Joinder is attached. All capitalized terms not otherwise defined herein shall
have the meanings assigned to such terms in the Agreement when used herein. The
undersigned hereby (i) agrees that from and after the date set forth below it
shall be an Obligor under the Agreement as if it were a signatory thereto and
shall be bound by all of the provisions thereof, and (ii) agrees that it shall
comply with and be subject to all the terms, conditions, covenants, agreements
and obligations set forth therein. The undersigned hereby agrees that each
reference to an "Obligor" or the "Obligors" in the Agreement shall include the
undersigned.

Date:  February 6, 2003
       ----------------

                                     REMTECH SERVICES, INC.,
                                      a Virginia corporation

                                     By:      /s/ Michael J. Boling
                                        --------------------------------

                                     Title: Executive Vice President - Finance &
                                              Administration

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