Document:

10.2 Amendment to Investment Agreement

                                  AMENDMENT TO
                          THE HARTCOURT COMPANIES, INC.
 INVESTMENT AGREEMENT DATED ON OR ABOUT NOVEMBER 3, 1999 AND RELATED AGREEMENTS

This Amendment (the "Amendment") to (i) the Investment Agreement (the
"Investment Agreement") the Registration Rights Agreement (the "Registration
Rights Agreement"), and Transfer Agent Instructions (the "Transfer Agent
Instructions"), each by and between The Hartcourt Companies, Inc., a corporation
duly organized and existing under the laws of the State of Utah (the "Company"),
and Swartz Private Equity, LLC (the "Investor") is entered into by and between
the Company and the Investor.

                                    RECITALS

WHEREAS, the Company and the Investor entered into to the Investment Agreement,
the Registration Rights Agreement and the Transfer Agent Instructions
(collectively, the "Equity Line Agreements") on or about November 3, 1999; and

WHEREAS, the Company and the Investor believe that it is in the best interest of
the Company and the Holder to amend the terms of the Equity Line Agreements on
the terms and conditions described in this Amendment.

                                      TERMS

NOW THEREFORE, in consideration of their mutual promises, and other good and
valuable consideration, the parties hereby agree as follows:

I.   AMENDMENTS.

     A.  AMENDMENTS TO INVESTMENT AGREEMENT.

         (a) MAXIMUM OFFERING AMOUNT. The definition of "Maximum Offering
Amount" is hereby amended to mean Thirty Five Million Dollars ($35,000,000).

         (b) MAXIMUM PUT DOLLAR AMOUNT. The definition of "Maximum Put Dollar
Amount" is hereby deleted in its entirety and the following is hereby inserted
in its place:

         "Maximum Put Dollar Amount" shall mean the lesser of (i) the Company
         Designated Maximum Put Dollar Amount, if any, specified by the Company
         in a Put Notice, and (ii) $X, where "X" shall equal $2 million if the
         Closing Bid Price of the Company's Common Stock on the Business Day
         immediately preceding the date of the applicable Advance Put Notice is
         less than $10, and "X" shall equal $5 million if the Closing Bid Price
         of the Company's Common Stock on the Business Day immediately preceding
         the date of the applicable Advance Put Notice is greater than or equal
         to $10.

         (c) SECTION 2.3.1. In the Second Paragraph of Section 2.3.1, the phrase
"not to exceed $2,000,000" is hereby deleted in its entirety and the following
is hereby inserted in its place:

         "not to exceed the applicable Maximum Put Dollar Amount."
<PAGE>

     B.  AMENDMENTS TO REGISTRATION RIGHTS AGREEMENT.

         (a) MAXIMUM OFFERING AMOUNT. . In the first Recital paragraph, the
phrase "up to Twenty Five Million Dollars ($25,000,000)" is hereby deleted in
its entirety and the following is hereby inserted in its place:

         "up to Thirty Five Million Dollars ($35,000,000)"

         (b) SECTION 2.2. In Section 2.2, the phrase "at least Twenty Five
Million (25,000,000) shares" is hereby deleted in its entirety and the following
is hereby inserted in its place:

         "at least Fifteen Million (15,000,000) shares"

     C. TRANSFER AGENT INSTRUCTIONS. In the first paragraph, the phrase "up to
Twenty Five Million Dollars ($25,000,000)" is hereby deleted in its entirety and
the following is hereby inserted in its place:

         "up to Thirty Five Million Dollars ($35,000,000)"

II.  MISCELLANEOUS.

     A. SUCCESSORS AND ASSIGNS. The terms and conditions of this Amendment shall
inure to the benefit of and be binding upon the respective successors and
assigns of the parties. Nothing in this Amendment, express or implied, is
intended to confer upon any party other than the parties hereto or their
respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Amendment, except as expressly provided
in this Amendment.

     B. GOVERNING LAW. This Amendment shall be governed by and construed in
accordance with the laws of the State of Georgia without giving effect to the
principles of conflicts of laws, except for matters arising under the U.S.
Securities Act of 1933 or the Securities Exchange Act of 1934, as amended, which
matters shall be governed by and construed in accordance with such laws.

     C. COUNTERPARTS. This Amendment may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     D. TITLES AND SUBTITLES. The titles and subtitles used in this Amendment
are used for convenience only and are not to be considered in construing or
interpreting this Amendment.

     E. AMENDMENT AND WAIVERS. Any term of this Amendment may be amended and the
observance of any term of this Amendment may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with the
written consent of the Company and the Holder.

     F. SEVERABILITY. If one or more provisions of this Amendment are held to be
unenforceable in accordance with applicable law, such provision shall be
excluded from this Amendment and the balance of the Amendment shall be
interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms.

III. REMAINDER OF AGREEMENTS. Other than as amended hereby or by any other
amendments to the Equity Line Agreements, the terms and provisions of the Equity
Line Agreements shall remain the same.

<PAGE>

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

                                                THE HARTCOURT COMPANIES

                                                By: /S/ Alan Phan
                                                    ----------------------------
                                                Name: Alan Phan
                                                     ---------------------------
                                                Title: CEO
                                                       -------------------------

                                                SWARTZ PRIVATE EQUITY, LLC

                                                By: /S/ Eric S. Swartz
                                                    ----------------------------
                                                Eric S. Swartz, ManagerExhibit 10.7

                        FIRST AMENDMENT OF LOAN AGREEMENT

PARTIES:

         OBIE MEDIA CORPORATION, an Oregon corporation

         OBIE MEDIA LTD., a British Columbia corporation

         PHILBIN & COINE, INC., a New York corporation

         U. S. BANK NATIONAL ASSOCIATION, a national banking association

RECITALS:

         A. On September 1, 1998,  the parties  entered into a certain  Restated
and Amended Loan Agreement (the Original Loan Agreement). Except as specifically
set forth in this amendment, all capitalized terms have the meanings assigned in
the Original Loan Agreement.

         B. No Advances  were ever made under the 1998/1999  Construction  Loan,
and Borrower's right to request Advances under that Loan have expired.  Borrower
has repaid the Bridge Loan in full with the proceeds of the Secondary  Offering.
Because the  Secondary  Offering was  successful,  Term Loan B was never made by
Bank to Borrower.

         C. Borrower  desires to borrow from Bank,  and Bank is prepared to lend
to Borrower, a new Loan in the amount of $4,000,000, on the terms and conditions
of this amendment.

AGREEMENTS:

         1. DEFINITIONS.

            0.1. DELETED DEFINITIONS. The following definitions are deleted from
the Original Loan Agreement: 1998/1999 Construction Loan, 1998/1999 Construction
Note, Bridge Loan, Bridge Note, Term Loan B and Term Note B.

            0.2. REVISED DEFINITIONS.  The following definitions in Paragraph 1.
of the Original Loan Agreement are revised to read as follows:

                 a. "Advance" means any one or more of the loans made by Bank to
Borrower  pursuant to the Revolving  Loan,  Term Loan A, the MO Partners Loan or
Bridge Loan 2.

                 b. "Loan" means one or more of the Revolving Loan, Term Loan A,
the MO Partners Loan and Bridge Loan 2.

Page 1-FIRST AMENDMENT OF LOAN AGREEMENT
<PAGE>

                 c. "Note" means one or more of the Revolving Note, Term Note A,
the MO Partners Note and Bridge Note 2.

            0.3. NEW DEFINITIONS.  As used in the Agreement, the following terms
have the following meanings:

            a. "Bridge Loan 2" means the Loan  described in Paragraph 3. of this
amendment.

            b. "Bridge Note 2" means any promissory note evidencing  Bridge Loan
2, any  promissory  note  substituted  for one or more of them, and any document
evidencing a renewal, extension or modification of one or more of them.

         1.  TERMINATED  LOANS.  The  following  paragraphs of the Original Loan
Agreement are deleted in their entirety:  Paragraph 4.,  1998/1999  Construction
Loan;  Paragraph  5.,  Conversion to Term Loan;  Paragraph 7., Bridge Loan;  and
Paragraph 8., Term Loan B. Borrower  acknowledges  that the termination of those
loans does not affect  Bank's right to retain fees  previously  paid by Borrower
for those loans.

         2. BRIDGE LOAN 2.

            2.1.  MAXIMUM  AMOUNT.  Subject to the terms and  conditions of this
Agreement,  Bank, at its option, may make Advances to Borrower from time to time
through  January 15, 2000, in an aggregate  principal  amount not to exceed Four
Million Dollars ($4,000,000).

            2.2. REQUESTS FOR ADVANCES.  Whenever Borrower desires to request an
Advance,  Borrower shall give Bank notice thereof in accordance  with the Bridge
Note 2.

            2.3.  PURPOSE  OF  ADVANCES.  Borrower  shall  use the  proceeds  of
Advances for the following purposes:

                  a. To purchase of  approximately  200  billboards  in Montana,
Wyoming,  Nebraska, South Dakota and Idaho from JCW Corporation,  for a purchase
price of  approximately  Two Million Four Hundred  Twenty-Five  Thousand Dollars
($2,425,000),  of which One Hundred Thousand Dollars ($100,000) has already been
paid.

                  b. As a payment  upon the  Revolving  Loan to repay an Advance
previously  made to purchase  approximately  117 billboards in Montana from Sign
Products,  Inc., for a purchase price of approximately  One Million Four Hundred
Fifty-Six Thousand Dollars ($1,456,000).

Page 2-FIRST AMENDMENT OF LOAN AGREEMENT
<PAGE>

                  c. The remaining balance of approximately One Hundred Nineteen
Thousand Dollars ($119,000) may be used by Borrower for working capital.

            2.4.  REPRESENTATION  AND WARRANTY.  Each request by Borrower for an
Advance  shall be deemed to be  Borrower's  representation  and warranty that no
Event of Default,  or event which,  with notice or lapse of time, or both, would
be an Event of  Default,  has  occurred  or will occur as a result of making the
Advance.

            2.5.  BRIDGE  NOTE 2.  Bridge  Loan 2 shall be subject to all of the
terms and conditions of Bridge Note 2 and the Agreement.

            2.6. PRIME AND/OR LIBOR BORROWING RATES.

                  a. LIBOR BORROWING RATE.  Borrower may elect from time to time
to have portions of the Principal  Balance of Bridge Loan 2 accrue interest at a
LIBOR  Borrowing Rate on the terms and conditions of Paragraph 9 of the Original
Loan Agreement.

                  b. PRIME BORROWING RATE.  Except for portions of the Principal
Balance of Bridge Loan 2 that are accruing  interest at a LIBOR  Borrowing Rate,
Borrower  shall pay  interest  on the  Principal  Balance of Bridge  Loan 2 at a
variable  interest  rate equal to the Prime Rate plus  one-half  of one  percent
(0.5%). The interest rate shall be adjusted without notice effective on each day
the Prime Rate changes.

                  c.  DEFAULT  INTEREST  RATE.  Notwithstanding  anything in the
Agreement to the contrary, upon the occurrence of an Event of Default, the Prime
Borrowing  Rate Amount of Bridge Loan 2 shall  thereafter  accrue  interest at a
variable  interest  rate equal to the Prime Rate plus five and one-half  percent
(5.5%),  and each outstanding  LIBOR Borrowing Rate Amount shall accrue interest
at a LIBOR Borrowing Rate equal to the LIBOR Rate previously  determined by Bank
for the LIBOR Borrowing Rate Amount plus seven percent (7%).

                  d. PAYMENT OF INTEREST. Borrower shall pay accrued interest on
the fifteenth (15th) day of the first calendar month following the first Advance
under  Bridge Loan 2 and on the  fifteenth  (15th) day of every  calendar  month
thereafter prior to Maturity, and at Maturity. In addition,  with respect to all
LIBOR Borrowing Rate Amounts,  accrued interest shall be paid on the last day of
the applicable LIBOR Interest Period.

                  e.  COMPUTATION OF INTEREST.  All interest will be computed at
the applicable rate based on a three hundred sixty (360) day year and applied to
the actual number of days lapsed.

            2.7.  PAYMENT OF PRINCIPAL.  The Principal  Balance of Bridge Loan 2
shall be due and payable on July 3, 2000.

Page 3-FIRST AMENDMENT OF LOAN AGREEMENT
<PAGE>

            2.8.  PREPAYMENT.  Subject  to  Paragraph  3.9  of  this  amendment,
prepayment may be made in whole or in part at any time. All prepayments shall be
applied first to the Prime Borrowing Rate Amount and then to any LIBOR Borrowing
Rate  Amounts  (in  such  order  as  Bank  may  determine  in  Bank's   absolute
discretion), and then to accrued interest.

            2.9.  PREPAYMENT  PREMIUM.  Upon  payment  of all or any  portion of
Bridge Loan 2 on a date other than the regularly scheduled due date for payment,
including,   without   limitation,   voluntary   prepayment  or  repayment  upon
acceleration  following  an  Event of  Default,  Borrower  shall  pay to Bank on
demand,  with respect to all LIBOR Borrowing Rate Amounts,  a yield  maintenance
charge calculated in accordance with Exhibit A of the Original Loan Agreement.

            2.10. FEE.  Contemporaneously  with the execution of this amendment,
Borrower shall pay to Bank a fee for Bridge Loan 2 in the amount of Ten Thousand
Dollars ($10,000).

         3. CASH FLOW COVERAGE  RATIO.  For purposes of calculating the ratio of
Cash Flow to Cash Requirements  pursuant to Paragraph 13.11 of the Original Loan
Agreement,  it shall be assumed that the  Principal  Balance of Bridge Loan 2 is
payable in eighty-four  (84) equal monthly  installments of Forty Seven Thousand
Six  Hundred  Nineteen  Dollars  Five Cents  ($47,619.05)  each,  with the first
monthly installment due and payable on February 15, 2000, and with an additional
monthly installment due on the 15th day of each month thereafter.

         4. ADDITIONAL DOCUMENTS.  Contemporaneously  with the execution of this
amendment, Borrower shall deliver to Bank, in form and substance satisfactory to
Bank, the following:

            4.1. Bridge Note 2.

            4.2.  Amendments  of the  Commercial  Security  Agreement  and Stock
Pledge Agreement executed by Borrower  contemporaneously  with the Original Loan
Agreement.

            4.3. A written opinion of Gleaves, Swearingen, Larsen, Potter,
Scott & Smith, LLP, counsel for Borrower, dated as of the date of this amendment
and addressed to Bank.

            4.4. Any other documents that Bank may reasonably request.

         5.  REPRESENTATIONS  AND WARRANTIES.  To induce Bank to enter into this
amendment, Borrower and Guarantor represent and warrant to Bank that:

            5.1. All representations and warranties of Borrower contained in the
Original Loan Agreement  continue to be true and complete as of the date of this
amendment.

Page 4-FIRST AMENDMENT OF LOAN AGREEMENT
<PAGE>

            5.2. No Event of Default has occurred or is continuing, and no event
has occurred and is continuing that, with the giving of notice or the passage of
time, or both, would be an Event of Default under the Agreement.

            5.3.  No  material  adverse  change has  occurred  in the  financial
condition or business of Borrower since the date of the Original Loan Agreement.

            5.4.  Borrower's   execution,   delivery  and  performance  of  this
amendment and all documents  executed  pursuant to this amendment have been duly
authorized by all necessary  action,  do not contravene any Law binding on it or
its  organizational  documents,  and  do not  contravene  the  provisions  of or
constitute a default under any agreement or instrument to which it is a party or
by which it may be bound or affected.

            5.5.  This  amendment and all  documents  executed  pursuant to this
amendment  are, and when delivered  will be, valid,  binding and  enforceable in
accordance with their respective terms.

         6. COUNTERPARTS; EXECUTION BY FACSIMILE. This amendment may be executed
in several counterparts,  each of which will be deemed to be an original and all
of  which  together  constitute  one and the  same  instrument.  Delivery  of an
executed copy of this amendment by telecopy,  telex or other means of electronic
communication  producing a printed  copy will be deemed to be an  execution  and
delivery of this amendment on the date of such  communication  by the parties so
delivering  such a copy.  The  party so  delivering  such a copy via  electronic
communication  shall deliver an executed original of this amendment to the other
party  within one week of the date of delivery  of the copy sent via  electronic
communication.

         7. EFFECT.  Except as specifically  modified by this amendment,  or any
document executed pursuant to this amendment,  the Loan Documents remain in full
force and effect.

Page 5-FIRST AMENDMENT OF LOAN AGREEMENT
<PAGE>

         8.  DISCLOSURE.  UNDER  OREGON  LAW,  MOST  AGREEMENTS,   PROMISES  AND
COMMITMENTS  MADE BY BANK  AFTER  OCTOBER 3,  1989,  CONCERNING  LOANS AND OTHER
CREDIT  EXTENSIONS WHICH ARE NOT FOR PERSONAL,  FAMILY OR HOUSEHOLD  PURPOSES OR
SECURED  SOLELY  BY  THE  BORROWER'S  RESIDENCE  MUST  BE  IN  WRITING,  EXPRESS
CONSIDERATION AND BE SIGNED BY THE BANK TO BE ENFORCEABLE.

   DATED as of January 3, 2000.

OBIE MEDIA CORPORATION                      PHILBIN & COINE, INC.

By:                                         By:
   -------------------------------             -------------------------------
   Brian Obie, President                       Wayne P. Schur, President

OBIE MEDIA LTD.                             U. S. BANK NATIONAL ASSOCIATION

By:                                         By:
   -------------------------------             -------------------------------
   Brian Obie, President                       Larry Johnson, Vice President

Page 6-FIRST AMENDMENT OF LOAN AGREEMENT
<PAGE>

                FIRST AMENDMENT OF COMMERCIAL SECURITY AGREEMENT

PARTIES:

         OBIE MEDIA CORPORATION, an Oregon corporation

         OBIE MEDIA LTD., a British Columbia corporation

         PHILBIN & COINE, INC., a New York corporation

         U. S. BANK NATIONAL ASSOCIATION, a national banking association

RECITALS:

         A. On September 1, 1998, the parties entered into a certain  Commercial
Security Agreement (the Original Security Agreement). Except as specifically set
forth in this amendment, all capitalized terms have the meanings assigned in the
Original Security Agreement.

         B. Contemporaneously with the execution of this amendment,  the parties
are executing a first amendment of the Loan Agreement.

AGREEMENTS:

         1. DEFINITIONS. The following definition in Paragraph 1 of the Original
Security Agreement is revised to read as follows:

                           "Note" means one or more of (a) the  Revolving  Note,
                  Term Note A, the MO Partners  Note and Bridge Note 2 (as those
                  terms  are  defined  in the  Loan  Agreement),  (b) any  other
                  promissory  note  now or  hereafter  delivered  to  Lender  in
                  connection with the Loan Agreement,  (c) any other  promissory
                  note now or hereafter  delivered to Lender in connection  with
                  any other  Indebtedness,  (d) any promissory note  substituted
                  for one or more of them,  and (e) any  document  evidencing  a
                  renewal, extension or modification of one or more of them.

         2. COUNTERPARTS; EXECUTION BY FACSIMILE. This amendment may be executed
in several counterparts,  each of which will be deemed to be an original and all
of  which  together  constitute  one and the  same  instrument.  Delivery  of an
executed copy of this amendment by telecopy,  telex or other means of electronic
communication  producing a printed  copy will be deemed to be an  execution  and
delivery of this amendment on the date of such  communication  by the

Page 1-FIRST AMENDMENT OF COMMERCIAL SECURITY AGREEMENT
<PAGE>

parties  so  delivering  such a copy.  The party so  delivering  such a copy via
electronic communication shall deliver an executed original of this amendment to
the other  party  within one week of the date of  delivery  of the copy sent via
electronic communication.

         3.  EFFECT.  Except as  specifically  modified by this  amendment,  the
Original Security Agreement remains in full force and effect.

         DATED as of January 3, 2000.

OBIE MEDIA CORPORATION                      PHILBIN & COINE, INC.

By:                                         By:
   -------------------------------             -------------------------------
   Brian Obie, President                       Wayne P. Schur, President

OBIE MEDIA LTD.                             U. S. BANK NATIONAL ASSOCIATION

By:                                         By:
   -------------------------------             -------------------------------
   Brian Obie, President                       Larry Johnson, Vice President

Page 2-FIRST AMENDMENT OF COMMERCIAL SECURITY AGREEMENT

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