Document:

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                                                                   EXHIBIT 10.31

                               AMENDMENT AGREEMENT

THIS AMENDMENT AGREEMENT (this "Agreement") is made as of the 3rd day of May,
2000 (the "Effective Date") by and among OAKHURST COMPANY, INC. (hereinafter
referred to as "OCI") and its wholly-owned subsidiary, OAKHURST TECHNOLOGY,
INC. ("OTI"), on the one hand; and KTI, INC. (hereinafter referred to as "KTI"),
on the other hand.

1.   BACKGROUND.

     1.1   The parties entered into that certain Letter Loan Agreement dated
           December 29, 1998 (the "Loan Agreement") pursuant to which KTI agreed
           to make loans to OCI so that OCI could make equity investments using
           the loaned funds in OTI, so that OTI, in turn, could fulfill its
           obligations as KTI's "Affiliate" under that certain Investment
           Agreement dated as of December 29, 1998 between KTI and New Heights
           Recovery & Power, LLC ("New Heights") and that certain Amended Plan
           of Reorganization for New Heights confirmed and modified by an order
           dated December 15, 1998 of the United Stares Bankruptcy Court for the
           District of Delaware (the "Amended Plan.")

     1.2   Certain of the funds loaned to OCI under the Loan Agreement to date
           have been used to fund transaction costs and overhead expenses of OTI
           (including salaries and related costs pursuant to employment
           agreements of the Chief Executive Officer and the President of OTI,
           respectively), and certain of the funds have been used to purchase
           investments in another company, all as permitted under the Loan
           Agreement.

     1.3   The parties now wish to confirm certain actions taken pursuant to the
           Loan Agreement; to amend the Loan Agreement; and to provide for
           certain other agreements amongst the parties, all as set forth
           herein.

     1.4   Capitalized terms not defined in this Agreement shall have the
           meanings given to them in the Loan Agreement.

     1.5   OTI and KTI Recycling, Inc. ("KTIR"), a subsidiary of KTI, entered
           into that certain Nonexclusive License to Use Technology in December
           1998 (the "License Agreement") and the parties also wish to provide
           for an amendment of that agreement, as well.

2.   CONSIDERATION. The parties are entering into this Agreement for and in
     consideration of the foregoing recitals, the mutual covenants contained
     herein and other good and valuable consideration, the receipt and
     sufficiency of which are hereby acknowledged.

3.   STERLING CONSTRUCTION INVESTMENT.

     3.1   The parties hereby acknowledge that pursuant to Paragraph 1(b) of the
           Loan Agreement and with the consent of the other parties hereto, OTI
           used $2,525,000 of the Facility Limit together with certain funds
           resulting from the sale of common stock by OCI (the "OCI Equity
           Funds") to purchase certain equity and subordinated debt securities
           (the "First Tranche") of Sterling Construction Company of Houston,
           Texas. The loan proceeds used to pay the purchase price of the First
           Tranche shall be subject to all of the terms and conditions of the
           Loan Agreement as if the funds had been used to fund the New Heights
           "Business Plan" as that term is defined in the Amended Plan.

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     3.2   The identification of the amounts used to fund the First Tranche is
           set forth in Exhibit C.

     3.3   Interest income received by OTI from the subordinated debt portion
           of the First Tranche shall be used to pay interest due from OTI to
           James Manning pursuant to that certain Amendment to Stock Purchase
           and Investment Agreement dated as of October 18, 1999, but only so
           long as no payment default exists under the Loan Agreement.

     3.4   In order to secure to KTI the repayment of the loan proceeds used to
           pay the purchase price of the First Tranche, OTI shall grant to KTI a
           first security interest in the First Tranche pursuant to the Pledge
           Agreement attached hereto as Exhibit A.

4    OTI OVERHEAD EXPENSES AND TRANSACTION COSTS.

     4.1   The parties hereby acknowledge that with the consent of KTI and in
           recognition of the terms of that certain Intercreditor Agreement
           dated as of December 29, 1998 between OCI, KTI and Finova Capital
           Corporation, OCI has heretofore borrowed $340,000 of the Facility
           Limit that, together with certain of the OCI Equity Funds, has been
           used to fund (a) expenses of completing the Loan Agreement and
           related agreements in December 1998 (including the costs of the sale
           of common stock by OCI and of the formation of OTI); and (b) overhead
           expenses of OTI. These overhead expenses and transactions costs are
           set forth in Exhibit C.

     4.2   Upon the request from time to time of OCI accompanied by appropriate
           documentation, KTI shall advance to OCI through a draw down under the
           Loan Agreement up to $135,000 for the payment or reimbursement (as
           the case may be) of OTI's overhead expenses.

     4.3   As previously approved by the New Heights Board of Directors, all
           travel and lodging expenses incurred by directors of New Heights in
           traveling to, or on behalf of, New Heights shall be reimbursed by New
           Heights.

5    NEW HEIGHTS INVESTMENT.

     5.1   Business Plan Phases

           5.1.1   Based on the latest forecasts by KTI, the funding of Phases I
                   and II of the New Heights Business Plan, together with
                   certain expenditures identified as Phase III of such plan
                   (including principally Waste Recovery Inc. ("WRI"), Sea Glass
                   and Elk) is expected to total $14,176,000, net of anticipated
                   grants receivable and funding contributions by the New
                   Heights former bondholders, as detailed in the attached
                   Exhibit B prepared by KTI. The parties agree that future
                   capital expenditures for Phase III identified in Exhibit B,
                   viz $935,000 for Sea Glass, have not yet been approved and
                   that such expenditures will be governed by the terms of
                   Section 5.2 hereof.

           5.1.2   When required, KTI will directly fund to New Heights (i.e.
                   not through advances under the Loan Agreement) $3 million of
                   the first $12 million (net of grants receivable, but before
                   any funding contributions by the New Heights former
                   bondholders, and excluding operating losses as described in
                   Section 5.3 hereof) required for the completion of the
                   expenditures shown in

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                   Exhibit B. The $3 million is agreed to be the amount of loans
                   under the Loan Agreement that, with KTI's consent, have not
                   been used to fund the New Heights Business Plan, as described
                   in Section 3.1, Section 4.1 and Section 4.2, above. Neither
                   OCI nor OTI shall be required to reimburse or repay to KTI
                   the $3 million that is directly funded by KTI, either under
                   the Loan Agreement or otherwise.

           5.1.3   In consideration for KTI making the $3 million direct
                   investment in New Heights described in Section 5.1.2, above,
                   OTI shall transfer 25% of its equity interest in New Heights
                   to KTI.

           5.1.4   In addition to the advances aggregating $2,865,000 that are
                   described in Section 3.1 and Section 4.1, above, at
                   May 31, 2000, KTI had advanced to OCI $7,746,872 under the
                   Loan Agreement all of which had been used by OCI through
                   investments in OTI to satisfy OTI's obligations to fund the
                   Business Plan. When required, KTI shall advance OCI an
                   additional $753,128 for the same purposes, so that the total
                   of such advances used for such purposes shall equal $8.5
                   million, it being the intention of the parties that, taken
                   together with $500,000 funded from the proceeds of KTI's
                   equity investment in OCI, OTI shall fund $9 million of the
                   first $12 million (net of grants receivable, but before any
                   funding contributions by the New Heights former bondholders,
                   and excluding operating losses as described in Section 5.3
                   hereof) required for the completion of the expenditures shown
                   in Exhibit B.

           5.1.5   The amounts funded and to be funded for the first $12 million
                   of New Heights expenditures shown in Exhibit B are set forth
                   in Exhibit C.

           5.1.6   Exhibit B hereto currently shows an aggregate funding
                   requirement (net of grants receivable, but before any funding
                   contributions by the New Heights former bondholders, and
                   excluding operating losses as described in Section 5.3
                   hereof) of $14,176,000, of which $935,000 relates to "Phase
                   III" Sea Glass expenditures described in Section 5.1.4.

                   Any future Phase I or II expenditures shown in Exhibit B
                   hereto shall be financed through New Heights' internally
                   generated cash and/or through financing raised by New Heights
                   from one or more non-affiliated lending institutions. To the
                   extent that the funds raised by the foregoing methods are
                   insufficient, the parties will negotiate in good faith any
                   funding by them on terms that are agreeable to all of them.
                   Nothing herein shall affect OTI's existing assignable right
                   to fund at least 37.5% of any amounts to be funded to New
                   Heights for Phases I or II of the Business Plan. In
                   particular, it is agreed that if any such additional funding
                   required from OTI is funded in OTI's place by KTI, OTI's
                   future equity interest in New Heights will be calculated by
                   the following formula:

                         37.5% multiplied by the fair market value of the New
                         Heights facility, before such new investment (after
                         deducting any existing debt incurred directly by New
                         Heights) (the "Pre-investment Value"), divided by the

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                        sum of (i) the Pre-investment Value and (ii) the amount
                        of the new investment.

     5.2   Phase III

           5.2.1   For purposes of this agreement, Phase III of the New Heights
                   Business Plan will include any expenditures identified as
                   Phase III in such Plan, together with the additional ("Phase
                   III") expenditures for Sea Glass identified in Exhibit B
                   hereto.

           5.2.2   Subject to any approval processes of the Business Plan and/or
                   the Amended Plan, OTI and KTI agree to vote their shares in
                   New Heights and to instruct their nominees to the Board of
                   Directors of New Heights to vote for the funding of Phase III
                   of the Business Plan through New Heights' internally
                   generated cash and/or through financing raised by New Heights
                   from one or more non-affiliated lending institutions.

           5.2.3   To the extent that the funds raised by the foregoing methods
                   are insufficient, the parties will negotiate in good faith
                   any funding by them on terms that are agreeable to all of
                   them. Nothing herein shall affect OTI's existing assignable
                   right to fund at least 37.5% (or such lower percentage
                   determined in accordance with the provisions of Section
                   5.1.6, above) of any amounts to be funded to New Heights for
                   Phase III of the Business Plan and/or the proposed
                   installation of one or more gas turbine generating
                   facilities. In particular, it is agreed that if any such
                   additional funding required from OTI is funded in OTI's place
                   by KTI, OTI's future equity interest in New Heights will be
                   calculated by reference to the following formula:

                        37.5% (or such lower percentage determined in accordance
                        with the provisions of Section 5.1.6, above) multiplied
                        by the fair market value of the New Heights facility
                        before such new investment (after deducting any existing
                        debt incurred directly by New Heights) (the
                        "Pre-investment Value"), divided by the sum of (i) the
                        Pre-investment Value and (ii) the amount of the new
                        investment.

     5.3   New Heights Operating Losses. Any cash operating losses of New
           Heights (as that term is used in the Business Plan) that are required
           to be funded by KTI and/or OTI shall be funded 75% by KTI through
           advances to OCI under the Loan Agreement and 25% directly by KTI to
           New Heights (i.e. not through advances under the Loan Agreement.) The
           75% to be funded by KTI through advances under the Loan Agreement
           shall be in addition to the $8.5 million referred to in Section
           5.1.4, above. As shown on Exhibit C hereto, through May 31, 2000 OTI
           had funded $991,500 of such losses, representing 75% of the operating
           losses through such date, all of which funding was financed through
           drawdowns under the Loan Agreement.

     5.4   Refinancing. KTI and OTI shall use commercially reasonable efforts to
           refinance the cost of all of the equity investments in New Heights by
           OTI, KTI and the other investors in New Heights and to make
           distribution thereof, to the extent permitted by

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           the refinancing lender or lenders, to all investors in proportion to
           their ownership interests in New Heights.

     5.5   Business Plan Phases. Attached hereto as Exhibit B is a schedule of
           New Heights' funding requirements showing as to each of Phases I, II
           and III of the Business Plan (a) the amounts funded through May 31,
           2000; (b) the amounts forecast to be required after May 31, 2000 to
           complete Phases I and II and certain unapproved Sea Glass
           expenditures designated as Phase III, and (c) cash operating losses,
           all in sufficient detail to identify the major aspects of each phase,
           and in particular, identifying the allocation between Phases I, II
           and III of the Business Plan of the Sea Glass, Inc. and WRI
           expenditures.

6    AMENDMENT OF THE LICENSE AGREEMENT. KTIR agrees with OTI to amend the
     License Agreement effective as of December 29, 1998, as follows:

     6.1   Section 2(a) shall be further amended to the extent necessary to
           provide that royalties shall only be due and payable to KTIR to the
           extent of cash distributions actually received by OTI from its
           investment in New Heights; and

     6.2   Of the amount of royalties due from time to time arising from use of
           the KTIR technology licensed to OTI, OTI shall only be liable during
           any period for only the portion thereof that is equal to OTI's
           ownership percentage (during such period) of the one-half interest in
           New Heights originally owned by OTI. Any change in OTI's ownership
           percentage shall not affect OTI's royalty liability for any periods
           prior to such change. It is the intent of the parties that OTI's
           liability for the payment of royalties for any period subsequent to a
           change in such ownership percentage be reduced proportionally to the
           extent of, and at the same time of, any such change.

     6.3   As the number of pounds of waste tires entering the cryogenic system
           cannot be accurately determined, the parties hereby agree to amend
           the royalty calculation from $0.007 per lb of rubber entering the
           system to $0.01 per lb of crumb rubber produced by the system.

7    NO DEFAULTS. By the execution hereof, each party hereto acknowledges and
     agrees that on the Effective Date there are no defaults or events of
     default existing under the Loan Agreement or any other agreement between or
     among any of the parties.

8    NO OTHER CHANGES. Except to the extent modified by the foregoing terms and
     conditions, the Loan Agreement and the License Agreement shall remain as
     originally written.

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Oakhurst Technology, Inc.                    KTI Recycling, Inc.

By: /s/ ROBERT M. DAVIES                     By: /s/ [ILLEGIBLE]
   --------------------------------------       --------------------------------
    Robert M. Davies                            Name: [ILLEGIBLE]
    Chairman and Chief Executive Officer        Title: President

Robert M. Davies & Maarten D. Hemsley each as both an individual and as a
principal of Menai Capital, LLC, for and in consideration of the execution of
the foregoing Amendment Agreement by KTI, Inc., Oakhurst Company, Inc. and
Oakhurst Technology, Inc., agrees to extend the maturity of his loan to Oakhurst
Company, Inc. in the aggregate amount of $559, 204 to and including April 30,
2001, and further agrees that the interest on each such loan shall be added to
principal on the same terms and conditions as apply to loans made under the Loan
Agreement referred to in the foregoing Amendment Agreement.

/s/  ROBERT M. DAVIES                        /s/  MAARTEN D. HEMSLEY
------------------------------------         -----------------------------------
     Robert M. Davies                             Maarten D. Hemsley

                                   * * * * *

KTI Recycling, Inc. and Oakhurst Technology, Inc., by the execution hereof below
agree to execute an amendment of the December 1998 Nonexclusive License to Use
Technology Agreement between them to conform such agreement to Section 6 of the
foregoing agreement.

KTI Recycling, Inc.                          Oakhurst Technology, Inc.

By: /s/ [ILLEGIBLE]                          By: /s/ MAARTEN D. HEMSLEY
   --------------------------------------       --------------------------------
    Name: [ILLEGIBLE]                            Name: Maarten D. Hemsley
    Title: President                             Title: President

                                                                          Page 6<PAGE>   1
                                                                   EXHIBIT 10.32

                               SIXTH AMENDMENT TO
                           LOAN AND SECURITY AGREEMENT

         THIS SIXTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this "Amendment"),
dated as of June 30, 2000, is entered into among FINOVA CAPITAL CORPORATION, a
Delaware corporation ("FINOVA"), and Oakhurst Company, Inc., a Delaware
corporation ("Oakhurst"), Steel City Products, Inc., a Delaware corporation
("SCPI"), Dowling's Fleet Service Co., Inc., a New York corporation ("DFS"),
Oakhurst Management Corporation, a Texas corporation ("OMC"), Oakhurst Holdings,
Inc., a Delaware corporation ("OH"), and G & 0 Sales Company, a Pennsylvania
corporation ("G&O"), jointly and severally (individually, a "Borrower" and
collectively "Borrowers").

                                    RECITALS

         A. Borrowers and FINOVA have previously entered into that certain Loan
and Security Agreement dated as of March 28, 1996, as amended by that certain
First Amendment to Loan and Security Agreement dated as of June, 1996, that
certain Second Amendment to Loan and Security Agreement effective as of June 1,
1997, that certain Third Amendment to Loan and Security Agreement effective as
of October 31, 1997, that certain Fourth Amendment to Loan and Security
Agreement effective as of December 29, 1998, and that certain Fifth Amendment to
Loan and Security Agreement effective as of March 29, 1999 (collectively, the
"Loan Agreement"), pursuant to which FINOVA has made certain loans and financial
accommodations available to Borrowers. Capitalized terms used herein without
definition shall have the meanings ascribed to them in the Loan Agreement.

         B. Oakhurst, DFS, A.C.F. Imports, Inc., a New York corporation ("ACF")
and A.C.F. Acquisition, Inc., a New York corporation, have entered into that
certain Merger Agreement dated as of June 30, 2000 (the "Acquisition Agreement")
pursuant to which ACF has agreed (subject to the terms and conditions set forth
therein) to acquire all of the outstanding capital stock of DFS in consideration
of (among other things) payment of all sums owing to FINOVA on account of its
Revolving Loans to DFS.

         C. Pending the closing of the Acquisition Agreement, ACF desires to
convert approximately $250,000 of its accounts receivable from DFS into
subordinated debt and to advance up to $500,000 to DFS as subordinated debt for
additional working capital, and to obtain a security interest in the personal
property of DFS (as collateral security for all sums owing by DFS to ACF)
subject and subordinate to the security interest of FINOVA therein.

         D. The following Event of Default has occurred and is continuing under
the Loan Agreement: DFS has failed to maintain Tangible Net Worth as required in
Section 13.14 of the Loan Agreement and the corresponding Section of the
Schedule thereto during periods on or after February 29, 2000 (the "Existing
Default").

         E. Borrowers are now requesting FINOVA (i) to consent to the
Acquisition Agreement, (ii) to consent to the Indebtedness of DFS to ACF and the
security interest in favor of ACF as set forth in Recital C above, (iii) to
forbear from exercising its default rights and

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remedies arising from the Existing Default, (iv) to extend the term of the Loan
Agreement, and (v) to amend and modify the Loan Agreement and other Loan
Documents in certain respects.

         F. FINOVA is willing to accommodate the foregoing requests upon the
terms and conditions set forth below. Each Borrower is entering into this
Amendment with the understanding and agreement that, except as specifically
provided herein, none of FINOVA's rights or remedies as set forth in the Loan
Agreement is being waived or modified by the terms of this Amendment.

                                   AGREEMENTS

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

         1. Consent to the Acquisition Agreement. FINOVA hereby consents to the
Acquisition Agreement and agrees to release DFS and G & O from their Obligations
to FINOVA and to terminate its security interests in the property of DFS and G &
O; provided that the Acquisition Agreement shall have closed, and all
Obligations owing to FINOVA on account of its Revolving Loans to DFS, including
the outstanding principal balance thereof and all accrued but unpaid interest,
fees and other charges thereon (collectively, the "DFS Obligations"), shall have
been fully and finally paid and satisfied, all on or before October 28, 2000.

         2. Consent to Secured Indebtedness. FINOVA hereby consents to the
Indebtedness of DFS to ACF and to the security interest of ACF in the personal
property of DFS, all as set forth in Recital C above; provided that ACF shall
have duly executed and delivered an Intercreditor and Subordination Agreement in
form and substance satisfactory to FINOVA with respect thereto (the "ACF
Subordination Agreement").

         3. Forbearance. So long as no Event of Default other than the Existing
Default has occurred or hereafter occurs under the Loan Agreement or other Loan
Documents, and provided that Borrowers fully and strictly perform and comply
with all of the terms and provisions thereof, FINOVA shall forbear from
exercising its default rights and remedies arising on account of the Existing
Default until the earlier of (a) the date on which the Acquisition Agreement
closes, (b) the date on which the Acquisition Agreement is terminated, or (c)
October 28, 2000 (the earlier of such dates shall be referred to herein as the
"DFS Maturity Date"). Except as expressly set forth in this Amendment, nothing
contained herein shall be deemed a suspension or waiver of the Existing Default
or any other Event of Default.

         4. Termination of the DFS Revolving Loans. Subject to FINOVA's rights
of acceleration as provided in the Loan Agreement and other Loan Documents, the
Revolving Loans to DFS shall terminate and all DFS Obligations shall become
immediately due and payable in full in cash on the DFS Maturity Date, without
notice or demand of any kind, and without any provisions for renewal.

         5. Termination of the Loan Agreement. Subject to FINOVA's rights of
acceleration as provided in the Loan Agreement and other Loan Documents, the
Loan Agreement shall terminate and all remaining Obligations shall become
immediately due and payable in full in

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cash on May 28, 2003, without notice or demand of any kind, and without any
provisions for renewal.

         6. Total Facility. With respect to Section 1.1 of the Loan Agreement
and the corresponding Section of the Schedule thereto, the Total Facility for
all Loans shall be Six Million Seven Hundred Fifty Thousand Dollars ($6,750,000)
until the DFS Maturity Date and Four Million Dollars ($4,000,000) thereafter.

         7. Maximum SCPI Revolving Loans. With respect to Section 1.2 of the
Loan Agreement and clause (A)(b)(ii)(y) of the corresponding Section of the
Schedule thereto, the Revolving Loans to SCPI shall not exceed Four Million
Dollars ($4,000,000) in the aggregate outstanding at any time.

         8. Annual Renewal Fee. With respect to Section 3.1 of the Loan
Agreement and the corresponding Section of the Schedule thereto regarding the
Renewal Fee (and in addition to the renewal fee in the amount of $20,000 charged
on or about May 28, 2000), on May 28, 2001 and each anniversary thereof so long
as any Obligations remain outstanding, Borrowers shall pay FINOVA an annual
renewal fee for SCPI equal to one-half of one percent (0.5%) of the amount of
the Total Facility, which annual renewal fees shall be deemed fully earned when
they become due and payable.

         9. Tangible Net Worth. With respect to Section 13.14 of the Loan
Agreement and the corresponding Section of the Schedule thereto regarding
Tangible Net Worth, SCPI shall maintain Tangible Net Worth of not less than
$6,000,000 at all times.

         10. EBITDA. With respect to Section 13.14 of the Loan Agreement, the
corresponding Section of the Schedule thereto regarding minimum EBITDA is hereby
deleted in its entirely.

         11. Interest Coverage Ratio. With respect to Section 13.14 of the Loan
Agreement, and in addition to the financial covenants contained in the remaining
corresponding Sections of the Schedule thereto, SCPI shall maintain an Interest
Coverage Ratio of not less than (a) 1.0 to 1 for each of the three (3) months
ended May 31, 2000, the six (6) months ending August 31, 2000, the nine (9)
months ending November 30, 2000 and the twelve (12) months ending February 28,
2001, and (b) 1.2 to 1 for each twelve (12) month period ending on the last day
of any fiscal quarter after February 28, 2001. "Interest Coverage Ratio" for any
period means the ratio of (y) SCPI's net income or loss during such period
(excluding the effect of any extraordinary gains or losses), determined in
accordance with GAAP, plus or minus each of the following items, to the extent
deducted from or added to the revenues of SCPI in the calculation of such net
income or loss: (i) depreciation; (ii) amortization and other non-cash charges;
and (iii) interest expense paid or accrued; and after deduction for each of the
following of SCPI during such period: (A) non cash credits on account of the RAC
note payable by SCPI; (B) inter-company interest income; (C) upstream advances
to Oakhurst, whether in the form of loans or dividends or other distributions on
SCPI's capital stock; and (D) Capital Expenditures; to (z) interest expense paid
or accrued during such period.

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         12. Permitted Intercompany Transactions. With respect to Section 14 of
the Loan Agreement and Paragraph (b) of the corresponding Section of the
Schedule thereto regarding Permitted Intercompany Transactions, and subject to
the conditions set forth in such Paragraph (b), the upstream advances to
Oakhurst (as described therein) shall not exceed $550,000 in the aggregate
during any fiscal year.

         13. Termination Fee. With respect to Section 16.4 of the Loan Agreement
and the corresponding Section of the Schedule thereto, the Termination Fee for
SCPI shall be one percent (1%) of the amount of the Total Facility if early
termination occurs prior to May 28, 2001. No Termination Fee will be charged if
early termination occurs on or after May 28, 2001.

         14. Support Agreement. Mark Auerbach shall be released from his
obligations and liabilities to FINOVA under that certain Support Agreement dated
as of March 28, 1996; provided that Maarten Hemsley shall have duly executed and
delivered a Support Agreement in form and substance satisfactory to FINOVA (the
"Hemsley Support Agreement").

         15. Effectiveness of this Amendment. The effectiveness of this
Amendment, the consents and agreements provided herein and any extension of
credit by FINOVA to Borrowers as provided by this Amendment, is subject to the
fulfillment of each of the following conditions:

                  (a) Amendment. FINOVA shall have received this Amendment,
         fully executed in a sufficient number of counterparts for distribution
         to FINOVA and Borrowers.

                  (b) Authorizations. FINOVA shall have received evidence that
         the execution, delivery and performance by each Borrower of this
         Amendment and any instrument or agreement required under this Amendment
         have been duly authorized.

                  (c) Representations and Warranties. The Representations and
         Warranties set forth in the Loan Agreement must be true and correct.

                  (d) Payment of Extension Fee. Borrowers shall have paid to
         FINOVA an extension fee equal to Five Thousand Dollars ($5,000) in
         consideration of the extensions and amendments provided herein, which
         fee shall be deemed fully earned as of the date hereof.

                  (e) Other Required Documentation. The ACF Subordination
         Agreement, the Hemsley Support Agreement and all other documents and
         legal matters in connection with the transactions contemplated by this
         Amendment shall have been delivered or executed or recorded and shall
         be in form and substance satisfactory to FINOVA.

         16. Fees and Expenses. Each Borrower hereby confirms that pursuant to
Section 13.1 of the Loan Agreement, Borrowers shall reimburse FINOVA for all
costs, fees and expenses incurred by FINOVA in connection with the negotiation,
preparation, execution, delivery, administration and enforcement of this
Amendment, including, but not limited to, attorneys' fees.

         17. Representations and Warranties. The Borrowers, jointly and
severally, represent and warrant as follows:

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                  (a) Authority. Each Borrower has the requisite corporate power
         and authority to execute and deliver this Amendment, and to perform its
         obligations hereunder and under the Loan Documents (as amended or
         modified hereby) to which it is a party. The execution, delivery and
         performance by each Borrower of this Amendment, and the performance by
         each Borrower of each Loan Document (as amended or modified hereby) to
         which it is a party have been duly approved by all necessary corporate
         action of such Borrower and no other corporate proceedings on the part
         of such Borrower are necessary to consummate such transactions.

                  (b) Enforceability. This Amendment has been duly executed and
         delivered by each Borrower. This Amendment and each Loan Document (as
         amended or modified hereby) is the legal, valid and binding obligation
         of each Borrower hereto or thereto, enforceable against such Borrower
         in accordance with its terms, and is in full force and effect.

                  (c) Representations and Warranties. The representations and
         warranties contained in each Loan Document (other than any such
         representations or warranties that, by their terms, are specifically
         made as of a date other than the date hereof) are correct on and as of
         the date hereof as though made on and as of the date hereof.

                  (d) No Default. No event has occurred and is continuing that
         constitutes an Event of Default, other than the Existing Default.

         18. CHOICE OF LAW. THIS AMENDMENT SHALL BE INTERPRETED IN ACCORDANCE
WITH THE INTERNAL LAWS (AND NOT THE CONFLICT OF LAWS RULES) OF THE STATE OF
ARIZONA GOVERNING CONTRACTS TO BE PERFORMED ENTIRELY WITHIN SUCH STATE. EACH
BORROWER HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL
COURT LOCATED WITHIN THE COUNTY OF MARICOPA, THE STATE OF ARIZONA OR, AT THE
SOLE OPTION OF FINOVA, IN ANY OTHER COURT IN WHICH FINOVA SHALL INITIATE LEGAL
OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER JURISDICTION OVER THE
MATTER IN CONTROVERSY. EACH BORROWER WAIVES ANY OBJECTION OF FORUM NON
CONVENIENS AND VENUE. EACH BORROWER WAIVES PERSONAL SERVICE OF ANY AND ALL
PROCESS UPON THEM, AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE IN THE
MANNER SET FORTH IN SECTION 19.13 OF THE LOAN AGREEMENT FOR THE GIVING OF
NOTICE. EACH BORROWERS FURTHER WAIVES ANY RIGHT THEY MAY OTHERWISE HAVE TO
COLLATERALLY ATTACK ANY JUDGMENT ENTERED AGAINST THEM.

         19. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties and separate counterparts, each of which
when so executed and delivered, shall be deemed an original, and all of which,
when taken together, shall constitute one and the same instrument. Delivery of
an executed counterpart of a signature page to this Amendment or by
telefacsimile shall be effective as delivery of a manually executed counterpart
of this Amendment.

                                       5
<PAGE>   6

         20. Reference to and Effect on the Loan Documents.

                  (a) Upon and after the effectiveness of this Amendment, each
         reference in the Loan Agreement to "this Agreement", "hereunder",
         "hereof" or words of like import referring to the Loan Agreement, and
         each reference in the other Loan Documents to "the Loan Agreement",
         "thereof" or words of like import referring to the Loan Agreement,
         shall mean and be a reference to the Loan Agreement as modified and
         amended hereby.

                  (b) Except as specifically amended above, the Loan Agreement
         and all other Loan Documents, are and shall continue to be in full
         force and effect and are hereby in all respects ratified and confirmed
         and shall constitute the legal, valid, binding and enforceable
         obligations of each Borrower to FINOVA.

                  (c) The execution, delivery and effectiveness of this
         Amendment shall not, except as expressly provided herein, operate as a
         waiver of any right, power or remedy of any FINOVA or the Agent under
         any of the Loan Documents, nor constitute a waiver of any provision of
         any of the Loan Documents.

                  (d) To the extent that any terms and conditions in any of the
         Loan Documents shall contradict or be in conflict with any terms or
         conditions of the Loan Agreement, after giving effect to this
         Amendment, such terms and conditions in the Loan Documents are hereby
         deemed modified or amended accordingly to reflect the terms and
         conditions of the Loan Agreement as modified or amended hereby.

         21. Ratification. Each Borrower hereby restates, ratifies and reaffirms
each and every term and condition set forth in the Loan Agreement, as amended
hereby, and the Loan Documents effective as of the date hereof.

         22. Estoppel. To induce FINOVA to enter into this Amendment and to
continue to make advances to Borrowers under the Loan Agreement, each Borrower
hereby acknowledges and agrees that, after giving effect to this Amendment, as
of the date hereof, there exists no Event of Default other than the Existing
Default, and no right of offset, defense, counterclaim or objection in favor of
any Borrower as against FINOVA with respect to the Obligations.

                     [THIS SPACE INTENTIONALLY LEFT BLANK.]

                                       6
<PAGE>   7

          IN WITNESS WHEREOF, the parties have entered into this Amendment as of
the date first above written.

                                        FINOVA CAPITAL CORPORATION

                                        By: /s/ FRANK MONZO
                                           -------------------------------------
                                        Name: FRANK MONZO
                                             -----------------------------------
                                        Title: VICE PRESIDENT
                                              ----------------------------------

                                        OAKHURST COMPANY, INC.

                                        By: /s/ MAARTEN HEMSLEY
                                           -------------------------------------
                                        Name: MAARTEN HEMSLEY
                                             -----------------------------------
                                        Title: PRESIDENT
                                              ----------------------------------

                                        STEEL CITY PRODUCTS, INC.

                                        By: /s/ MAARTEN HEMSLEY
                                           -------------------------------------
                                        Name: MAARTEN HEMSLEY
                                             -----------------------------------
                                        Title: CFO
                                              ----------------------------------

                                        DOWLING'S FLEET SERVICE CO.

                                        By: /s/ MAARTEN HEMSLEY
                                           -------------------------------------
                                        Name: MAARTEN HEMSLEY
                                             -----------------------------------
                                        Title: DIRECTOR
                                              ----------------------------------

                                       7
<PAGE>   8

                                        OAKHURST MANAGEMENT CORPORATION

                                        By: /s/ MAARTEN HEMSLEY
                                           -------------------------------------
                                        Name: MAARTEN HEMSLEY
                                             -----------------------------------
                                        Title: PRESIDENT
                                              ----------------------------------

                                        OAKHURST HOLDINGS, INC.

                                        By: /s/ MAARTEN HEMSLEY
                                           -------------------------------------
                                        Name: MAARTEN HEMSLEY
                                             -----------------------------------
                                        Title: PRESIDENT
                                              ----------------------------------

                                        G & O SALES COMPANY

                                        By: /s/ MAARTEN HEMSLEY
                                           -------------------------------------
                                        Name: MAARTEN HEMSLEY
                                             -----------------------------------
                                        Title: PRESIDENT
                                              ----------------------------------

                                       8

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