Document:

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                                                                    Exhibit 10.1

                FIFTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT

      This Amendment, dated as of March 29, 2004, is made by and between
SOUTHERN FLOW COMPANIES, INC., a Delaware corporation (the "Borrower"), and
WELLS FARGO BUSINESS CREDIT, INC., a Minnesota corporation (the "Lender").

                                    RECITALS

      The Borrower and the Lender are parties to a Credit and Security Agreement
dated as of September 24, 2001, as amended by (i) the First Amendment to Credit
and Security Agreement dated as of November 19, 2002; (ii) the Second Amendment
to Credit and Security Agreement and Waiver of Defaults dated as of March 26,
2003; (iii) the Third Amendment to Credit and Security Agreement dated as of
April 4, 2003; and (iv) the Fourth Amendment to Credit and Security Agreement
dated as of September 24, 2003 (as so amended, the "Credit Agreement").
Capitalized terms used in these recitals have the meanings given to them in the
Credit Agreement unless otherwise specified.

      The Borrower has requested that certain amendments be made to the Credit
Agreement, which the Lender is willing to make pursuant to the terms and
conditions set forth herein.

      NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements herein contained, it is agreed as follows:

      1.    Defined Terms. Capitalized terms used in this Amendment which are
      defined in the Credit Agreement shall have the same meanings as defined
      therein, unless otherwise defined herein.

      2.    Section 6.2(a). Section 6.2(a) of the Credit Agreement is amended
      and restated in its entirety to read as follows:

                  "(a)  MINIMUM TANGIBLE BOOK NET WORTH. The Borrower will
      maintain, during each period described below, its Tangible Book Net Worth,
      determined as at the end of each month, at an amount not less than the
      amount set forth opposite such period below. "Tangible Book Net Worth"
      means the aggregate of the common and preferred stockholders' equity in
      the Borrower less intangibles and less total intercompany indebtedness
      owing from Corporate Guarantors to Borrower, all determined in accordance
      with GAAP.

<PAGE>

<TABLE>
<CAPTION>
                Period                         Minimum Tangible Book Net Worth
<S>                                            <C>
        1/1/04 through 3/31/04                           $1,600,000
        4/1/04 through 6/30/04                           $1,600,000
        7/1/04 through 9/30/04                           $1,600,000
10/1/04 through 12/31/04 and thereafter                  $1,600,000"
</TABLE>

      3.    Section 6.2(b). Section 6.2(b) of the Credit Agreement is amended
      and restated in its entirety to read as follows:

            "(b)  MINIMUM PROFITABILITY. The Borrower will achieve, during each
      period described below, Net Income, determined at the end of the quarter,
      greater than the amount set forth opposite such period:

<TABLE>
<CAPTION>
           Period                                Minimum Net Income
<S>                                              <C>
 Three months ended 3/31/04                          $  192,000
  Six months ended 6/30/04                           $  440,000
 Nine months ended 9/30/04                           $  685,000
Twelve months ended 12/31/04                         $1,100,000"
</TABLE>

      4.    Section 6.2(c). Section 6.2(c) of the Credit Agreement is amended
      and restated in its entirety to read as follows:

            "(c)  CAPITAL EXPENDITURES. The Borrower will not incur or contract
      to incur Capital Expenditures of more than $300,000 in the aggregate
      during the fiscal year ending December 31, 2004."

      5.    Section 6.26. Section 6.26 of the Credit Agreement is amended and
      restated in its entirety to read as follows:

            "Section 6.26 Advances to Corporate Guarantors. Total intercompany
            indebtedness owing from all Corporate Guarantors to Borrower
            determined at the end of each month may not (a) exceed the
            cumulative Net Income from January 1, 2001 until such date or (b)
            reduce Tangible Book Net Worth below $1,600,000."

      6.    Exhibit B. Exhibit B of the Credit Agreement is amended and restated
      in its entirety and replaced with Exhibit B attached hereto.

      7.    No Other Changes. Except as explicitly amended by this Amendment,
      all of the terms and conditions of the Credit Agreement shall remain in
      full force and effect and shall apply to any advance or letter of credit
      thereunder.

      8.    Conditions Precedent. This Amendment shall be effective when the
      Lender shall

                                                                             -2-
<PAGE>

      have received an executed original hereof, together with each of the
      following, each in substance and form acceptable to the Lender in its sole
      discretion:

            (a)   The Acknowledgment and Agreement of Guarantors set forth at
            the end of this Amendment, duly executed by each Guarantor.

            (b)   Such other matters as the Lender may require.

      9.    Representations and Warranties. The Borrower hereby represents and
      warrants to the Lender as follows:

            (a)   The Borrower has all requisite power and authority to execute
            this Amendment and to perform all of its obligations hereunder, and
            this Amendment has been duly executed and delivered by the Borrower
            and constitutes the legal, valid and binding obligation of the
            Borrower, enforceable in accordance with its terms.

            (b)   The execution, delivery and performance by the Borrower of
            this Amendment has been duly authorized by all necessary corporate
            action and does not (i) require any authorization, consent or
            approval by any governmental department, commission, board, bureau,
            agency or instrumentality, domestic or foreign, (ii) violate any
            provision of any law, rule or regulation or of any order, writ,
            injunction or decree presently in effect, having applicability to
            the Borrower, or the articles of incorporation or by-laws of the
            Borrower, or (iii) result in a breach of or constitute a default
            under any indenture or loan or credit agreement or any other
            agreement, lease or instrument to which the Borrower is a party or
            by which it or its properties may be bound or affected.

            (c)   All of the representations and warranties contained in Article
            V of the Credit Agreement are correct on and as of the date hereof
            as though made on and as of such date, except to the extent that
            such representations and warranties relate solely to an earlier
            date.

      10.   References. All references in the Credit Agreement to "this
      Agreement" shall be deemed to refer to the Credit Agreement as amended
      hereby; and any and all references in the Security Documents to the Credit
      Agreement shall be deemed to refer to the Credit Agreement as amended
      hereby.

      11.   No Other Waiver. The execution of this Amendment and acceptance of
      any documents related hereto shall not be deemed to be a waiver of any
      Default or Event of Default under the Credit Agreement or breach, default
      or event of default under any Security Document or other document held by
      the Lender, whether or not known to the Lender and whether or not existing
      on the date of this Amendment.

      12.   Release. The Borrower and each Guarantor by signing the
      Acknowledgment and Agreement of Guarantors set forth below, each hereby
      absolutely and unconditionally

                                                                             -3-
<PAGE>

      releases and forever discharges the Lender, and any and all participants,
      parent corporations, subsidiary corporations, affiliated corporations,
      insurers, indemnitors, successors and assigns thereof, together with all
      of the present and former directors, officers, agents and employees of any
      of the foregoing, from any and all claims, demands or causes of action of
      any kind, nature or description, whether arising in law or equity or upon
      contract or tort or under any state or federal law or otherwise, which the
      Borrower or such Guarantor has had, now has or has made claim to have
      against any such person for or by reason of any act, omission, matter,
      cause or thing whatsoever arising from the beginning of time to and
      including the date of this Amendment, whether such claims, demands and
      causes of action are matured or unmatured or known or unknown.

      13.   Costs and Expenses. The Borrower hereby reaffirms its agreement
      under the Credit Agreement to pay or reimburse the Lender on demand for
      all costs and expenses incurred by the Lender in connection with the Loan
      Documents, including without limitation all reasonable fees and
      disbursements of legal counsel. Without limiting the generality of the
      foregoing, the Borrower specifically agrees to pay all fees and
      disbursements of counsel to the Lender for the services performed by such
      counsel in connection with the preparation of this Amendment and the
      documents and instruments incidental hereto. The Borrower hereby agrees
      that the Lender may, at any time or from time to time in its sole
      discretion and without further authorization by the Borrower, make a loan
      to the Borrower under the Credit Agreement, or apply the proceeds of any
      loan, for the purpose of paying any such fees, disbursements, costs and
      expenses.

      14.   Miscellaneous. This Amendment and the Acknowledgment and Agreement
      of Guarantors may be executed in any number of counterparts, each of which
      when so executed and delivered shall be deemed an original and all of
      which counterparts, taken together, shall constitute one and the same
      instrument.

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

WELLS FARGO BUSINESS CREDIT, INC.              SOUTHERN FLOW COMPANIES, INC.

By:   /s/ Patti Scudder                        By:   /s/ A. Bradley Gabbard
      -----------------                              ----------------------
Name: Patti Scudder                            Name: A. Bradley Gabbard
Its:  Commercial Banking Officer               Its:  Chief Financial Officer

                                                                             -4-
<PAGE>

                   ACKNOWLEDGMENT AND AGREEMENT OF GUARANTORS

      The undersigned, each a guarantor of the indebtedness of Southern Flow
Companies, Inc. (the "Borrower") to Wells Fargo Business Credit, Inc. (the
"Lender") pursuant to a separate Guaranty dated as of September 24, 2001, and
for the Guaranty of Metretek Contract Manufacturing Company, Inc., as of
September 24, 2003, (the "Guaranty"), each hereby (i) acknowledges receipt of
the foregoing Amendment; (ii) consents to the terms (including without
limitation the release set forth in Paragraph 12 of the Amendment) and execution
thereof; (iii) reaffirms its obligations to the Lender pursuant to the terms of
its Guaranty; and (iv) acknowledges that the Lender may amend, restate, extend,
renew or otherwise modify the Credit Agreement and any indebtedness or agreement
of the Borrower, or enter into any agreement or extend additional or other
credit accommodations, without notifying or obtaining the consent of the
undersigned and without impairing the liability of the undersigned under its
Guaranty for all of the Borrower's present and future indebtedness to the
Lender.

METRETEK CONTRACT MANUFACTURING                METRETEK TECHNOLOGIES, INC.
COMPANY, INC.

By: /s/ A. Bradley Gabbard                     By:   /s/ A. Bradley Gabbard
    -------------------------------                  ---------------------------
Name: A. Bradley Gabbard                       Name: A. Bradley Gabbard
Its:  Chief Financial Officer                  Its:  Executive Vice President

POWERSECURE, INC.                              METRETEK, INCORPORATED

By: /s/ A. Bradley Gabbard                     By:   /s/ A. Bradley Gabbard
    -------------------------------                  ---------------------------
Name: A. Bradley Gabbard                       Name: A. Bradley Gabbard
Its:  Chief Financial Officer                  Its:  Chief Financial Officer<PAGE>

                                                                    EXHIBIT 10.3

                            DAUGHERTY RESOURCES, INC.

                   2003 INCENTIVE STOCK AND STOCK OPTION PLAN

      1. THE PLAN. The 2003 Incentive Plan (the "Plan") of Daugherty Resources,
Inc. (the "Company") has been adopted by the board of directors of the Company
(the "Board") to provide for the award of shares ("Share Awards") of the
Company's common stock ("Common Stock") and for the grant of options to acquire
Common Stock ("Options"). Options granted under the Plan are intended to be
treated as incentive stock options ("ISOs") within the meaning of section 422 of
the Internal Revenue Code of 1986 (the "Code") or, if so specified at the time
of grant, as nonqualified stock options ("NSOs") not intended to be treated as
ISOs under the Code. Except as otherwise indicated herein, all references in
this Plan to the Company shall include Daugherty Resources, Inc. and its
subsidiaries, together with their respective successors and assigns, and all
references to Sections refer to sections of this Plan.

      2 PURPOSES. The purposes of the Plan are to provide for the grant of Share
Awards as compensation to selected consultants, directors, officers and
employees of the Company and to provide for the grant of Options to selected
officers, directors and key employees of the Company as an incentive to acquire
or increase their proprietary interest in the Company, to continue their
services to the Company and to increase their efforts on its behalf.

      3. THE COMMON STOCK. The aggregate number of shares of Common Stock
issuable under the Plan shall be 4,000,000 or the number and kinds of shares of
capital stock or other securities substituted for the Common Stock as provided
in Section 7. The aggregate number of shares of Common Stock issuable under the
Plan may be set aside out of the authorized but unissued shares of Common Stock
not reserved for any other purpose or out of shares of Common Stock held in or
acquired for the treasury of the Company. All shares of Common Stock subject to
a Share Award that terminates unvested or an Option that terminates unexercised
for any reason may thereafter be subjected to a new Share Award or Option under
the Plan.

      4. ADMINISTRATION. The Plan shall be administered by the Compensation
Committee of the Board (the "Committee"). The Committee shall have plenary
authority in its discretion to (a) select the recipients of Share Awards and
Options ("Grantees"), (b) determine the number of shares of Common Stock subject
to each Share Award or Option and terms of the Share Award or Option issued to
each Grantee, including any conditions to the vesting thereof, and (c) adopt,
amend and rescind rules and regulations for the administration of the Plan and
for its own acts and proceedings, (d) decide all questions and settle all
controversies and disputes of general applicability that may arise in connection
with the Plan and (e) amend certain terms of the Plan as provided in Section 8.
In granting Share Awards under the Plan, the Committee shall consider the nature
and value of the services provided by the Grantee, the market value of the
Common Stock at the time of the grant and any other factors that the Committee
may deem relevant. In granting Options under the Plan, the Committee shall
consider the position held by the Grantee with the Company, the nature and value
of his or her services and accomplishments, the present and potential
contribution of the Grantee to the success of the Company and any other factors
that the Committee may deem relevant. All decisions of the Committee on the
foregoing matters shall be final and binding upon all persons.

      5. EFFECTIVENESS AND TERMINATION OF PLAN. The Plan shall become effective
upon its approval by the shareholders of the Company (the "Effective Date") and
shall terminate on the earliest of (a) the tenth fifth anniversary of the
Effective Date, (b) the date when all shares of Common Stock reserved for
issuance under the Plan shall have been acquired through the vesting of Share
Awards and the exercise of Options granted under the Plan or (c) such earlier
date as the Board may determine. Any Share Award or Option outstanding at the
time the Plan terminates shall remain in effect in accordance with its terms and
conditions and those of the Plan.

      6. GRANT, TERMS AND CONDITIONS. Share Awards and Options may be granted by
the Committee at any time after the Effective Date and prior to the termination
of the Plan. Each Share Award shall be subject to any vesting conditions and
trading restrictions the Committee may specify at the time of grant, any of
which shall be set forth in a written agreement with the Grantee. Each Option
shall be subject to terms and conditions, within the following framework,
specified by the Committee at the time of grant, all of which shall be set forth
in a written

<PAGE>

agreement with the Grantee.

            (a) Option Grantees. Grantees of Options shall be those officers,
directors and key employees of the Company selected by the Committee, provided
that only NSOs may be granted under the Plan to (i) any person owning Common
Stock or other capital stock of the Company possessing more than 10% of the
total combined voting power of all classes of capital stock of the Company (ii)
any director who is not an officer of the Company.

            (b) Option Exercise Price. The exercise price of an Option shall be
no less than the fair market value of the Common Stock, without regard to any
restriction, at the time the Option is granted. The fair market value of the
Common Stock at the time of the grant shall be: (i) the closing price of the
Common Stock on the trading day immediately preceding the date of the grant (the
"Valuation Date") if the Common Stock is listed on a national securities
exchange or the Nasdaq National Market or SmallCap Market ("Nasdaq"); (ii) the
average of the closing bid and asked prices for the Common Stock on the
Valuation Date if the Common Stock is not listed on a national securities
exchange or Nasdaq but is traded over-the-counter; or (iii) the value determined
by the Committee if the Common Stock is neither listed on a national securities
exchange or the Nasdaq nor traded in the over-the-counter market. If the Common
Stock is listed on a national exchange or the Nasdaq or is traded
over-the-counter but is not traded on the Valuation Date, then the price shall
be determined by the Committee by applying the principles contained in
applicable Treasury Regulations under the Code.

            (c) Payment for Common Stock. The exercise price of an Option shall
be paid in full at the time of exercise in cash by check or, if so provided by
the Committee at the time of grant, with securities of the Company owned for at
least six months by the Grantee, valued at their fair market value determined in
accordance with Section 6b). The exercise price shall not be subject to
adjustment, except as provided in Section 7.

            (d) ISO Limitation. Notwithstanding any provision of the Plan to the
contrary, an Option shall not be treated as an ISO under Code section 422 to the
extent to which the aggregate market value (determined as of the time an Option
is granted) of Common Stock for which Options (together with options granted
under all other plans of the Company) are exercisable for the first time by a
Grantee during any calendar year exceeds $100,000.

            (e) Duration and Exercise of Options. Options may be exercisable for
terms of up to but not exceeding ten years from the date of grant. Options shall
be exercisable at the times and in the amounts (up to the full amount thereof)
determined by the Committee at the time of grant. If an Option granted under the
Plan is exercisable in subsequent installments, the Committee shall determine
what events, if any, will make it subject to acceleration. Notwithstanding the
foregoing, an unvested Option shall automatically become 100% vested upon any
Change of Control (as defined below) or any action by the Board in contemplation
of a transaction that would result in a Change of Control. Change of Control
shall mean an event or series of events by which (i) any person (as used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934) is or becomes
the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Securities
Exchange Act of 1934), directly or indirectly, of 30% or more of the total
voting power of the outstanding voting securities of the Company, (ii) the
Company conveys, transfers, sells or leases all or substantially all of its
assets to any person other than to a wholly owned subsidiary of the Company,
(iii) the shareholders of the Company approve any plan of liquidation or
dissolution of the Company or (iv) during any period of 12 consecutive months,
individuals who, at the beginning of that period, constituted the Board
(together with any new directors whose election by the Board or whose nomination
for election by the Common Stockholders of the Company, as applicable, was
approved by a vote of not less than a majority of the directors then still in
office who were either directors at the beginning of that period or whose
election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the Board then in office.

            (f) Termination of Employment. Except as otherwise determined by the
Committee at the time of an Option grant, (i) upon the termination of a
Grantee's employment or directorship for any reason other than Cause (as defined
below), the Grantee may, within twelve months following termination (three
months for an ISO), exercise the Option for all or any part of the shares
subject thereto in which the right to purchase Common Stock had accrued or
vested at the time of termination of employment, and (ii) if the employment or
directorship of a Grantee is terminated for Cause, the Grantee's rights under
any then outstanding Option shall terminate at the time of termination. "Cause"
shall mean the Grantee's material malfeasance or nonfeasance in the performances
of his duties as a director, officer or employee of the Company.

                                       2
<PAGE>

            (g) Transferability of Option. No Option shall be transferable
except by will or the laws of descent and distribution. An Option shall be
exercisable during the Grantee's lifetime only by the Grantee.

      7. ADJUSTMENT FOR CHANGES IN THE COMMON STOCK.

            (a) Changes in Common Stock. In the event the shares of Common
Stock, as presently constituted, shall be changed into or exchanged for a
different number or kind of shares of capital stock or other securities of the
Company, whether by reason of merger, consolidation, recapitalization,
reclassification, split, reverse split, combination of shares or otherwise, then
there shall be substituted for or added to each share of Common Stock
theretofore or thereafter subject to an unvested Share Award or an unexercised
Option the number and kind of shares of capital stock or other securities into
which each outstanding share of Common Stock shall be so changed, or for which
each such share shall be exchanged, or to which the holder of each such share
shall be entitled, as the case may be. The price and other terms of outstanding
Options shall also be appropriately amended to reflect the foregoing events. In
the event there shall be any other change in the number or kind of outstanding
shares of the Common Stock, or of any capital stock or other securities into
which the Common Stock shall have been changed or for which it shall have been
exchanged, if the Committee shall, in its sole discretion, determine that the
change equitably requires an adjustment in any Option theretofore granted or
which may be granted under the Plan, then adjustments shall be made in
accordance with its determination.

            (b) Fractional Shares and Notices. Fractional shares resulting from
any adjustment pursuant to this Section 7 may be settled in cash or otherwise as
the Committee shall determine. Notice of any adjustment shall be given by the
Company to each holder of an unvested Share Award or an Option that shall have
been so adjusted.

            (c) Extraordinary Transactions. In the event of the disposition of
all or substantially all of the assets of the Company, or the dissolution of the
Company, or the merger or consolidation of the Company with or into any other
Company, or the merger or consolidation of any other entity into the Company, or
the making of a tender offer to purchase all or a substantial portion of
outstanding Common Stock, the Committee shall have the power to amend all
outstanding Options (upon such conditions as it shall deem appropriate) to (i)
permit the exercise of Options prior to the effective date of the transaction
and to terminate all unexercised Options as of that date, or (ii) require the
forfeiture of all Options, provided the Company pays to each Grantee the excess
of the fair market value of the Common Stock subject to the Option, determined
in accordance with Section 6(b), over the exercise price of the Option, or (iii)
make any other provisions that the Committee deems equitable.

      8. AMENDMENT OF THE PLAN. The Committee may amend the Plan, may correct
any defect or supply any omission or reconcile any inconsistency in the Plan or
in any Share Award or Option in the manner and to the extent deemed desirable to
carry out the Plan without action on the part of the Company's shareholders;
provided that, except as provided in Section 7 and this Section 8, unless the
Company's shareholders shall have first approved thereof, (a) the total number
of shares of Common Stock subject to the Plan shall not be increased, (b) the
expiration date of the Plan shall not be extended and (c) no amendment shall (i)
permit the exercise price of any Option to be less than the fair market value of
the Common Stock at the time of grant, (ii) increase the number of shares of
Common Stock to be received on exercise of an Option, (iii) materially increase
the benefits accruing to a Grantee under an Option or (iv) modify the
eligibility requirements for participation in the Plan.

      9. INTERPRETATION AND CONSTRUCTION. The interpretation and construction of
any provision of the Plan by the Committee shall be final, binding and
conclusive for all purposes.

      10. NO OBLIGATION TO EXERCISE OPTION. The granting of an Option shall
impose no obligation upon the Grantee to exercise an Option.

      11. PLAN NOT A CONTRACT OF EMPLOYMENT. The Plan is not a contract of
employment, and the terms of employment of any Grantee shall not be affected in
any way by the Plan or related instruments except as specifically provided
therein. The establishment of the Plan shall not be construed as conferring any
legal rights upon any Grantee for a continuance of employment, nor shall it
interfere with the right of the Company or any subsidiary to discharge any
Grantee.

      12. EXPENSES OF THE PLAN. All of the expenses of administering the Plan
shall be paid by the Company.

                                       3
<PAGE>

      13. COMPLIANCE WITH APPLICABLE LAW. The Committee may require, as a
condition of the issuance and delivery of certificates and in order to ensure
compliance with applicable securities laws, regulations and requirements, that
the Grantee make such covenants, agreements and representations as the
Committee, in its sole discretion, deems necessary or desirable.

                                       4

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