FIRST AMENDMENT TO
                        MANAGEMENT AND SERVICES AGREEMENT
    

     THIS FIRST AMENDMENT (this "First Amendment") to that certain Management
and Services Agreement by and between HLM DESIGN, INC., a Delaware corporation
("Design") and HLM OF NORTH CAROLINA, P.C., a North Carolina corporation ("HLM")
as dated effective May 29, 1997 (the "Agreement") is hereby executed and agreed
to by the undersigned. In recognition of the fact that the purpose of this First
Amendment is to revise the section of the Agreement subject hereto to reflect
the original intent of the parties, this First Amendment shall be effective
retroactively as of May 29, 1997.

     Section 13.e. of the Agreement is hereby amended and restated to read in
its entirety as follows:

     ASSIGNABILITY. Design may assign this Agreement, and/or transfer, assign or
     delegate any or all of its rights, obligations and responsibilities under
     this Agreement, without the consent of HLM. This Agreement is not
     transferrable or assignable by HLM without the prior written consent of
     Design.

     Amendment of the Agreement is subject to the approval of certain lenders of
Design, which approval has been or shall be sought. Should such approval not be
obtained by Design, then this First Amendment shall be void.

     All other provisions of the Agreement shall remain unmodified and in full
force and effect.



     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to
be executed by their duly authorized representatives, effective as of the date
set forth above.

                                        HLM DESIGN, INC.


                                        By: /s/ Vernon B. Brannon
                                            ---------------------
                                            Vernon B. Brannon



                                        HLM OF NORTH CAROLINA, P.C.


   
                                        By: /s/
                                            -----------------------