Document:

[CONFORMED COPY]

                 AMENDMENT NO. 2 AND WAIVER TO CREDIT AGREEMENT

         AMENDMENT  AND WAIVER  dated as of January  27, 2000 to the Amended and
Restated Credit  Agreement dated as of June 8, 1999, as amended by Amendment No.
1 dated as of October 15, 1999 (as so amended,  the "Credit  Agreement"),  among
HALLWOOD  ENERGY  CORPORATION,  HALLWOOD  ENERGY  PARTNERS,  L.P.  and  HALLWOOD
CONSOLIDATED RESOURCES CORPORATION  (collectively,  the "Borrowers"),  the BANKS
party thereto (the "Banks"),  FIRST UNION NATIONAL BANK, as Collateral Agent and
MORGAN GUARANTY TRUST COMPANY OF NEW YORK, as Agent (the "Agent").

                              W I T N E S S E T H :

         WHEREAS, the parties hereto desire to amend the Credit Agreement as set
forth  herein and the Banks have agreed to grant a waiver of certain  provisions
thereof as set forth herein;

         NOW, THEREFORE, the parties hereto agree as follows:

         SECTION 1. Defined Terms;  References.  Unless  otherwise  specifically
defined herein,  each term used herein which is defined in the Credit  Agreement
has the meaning assigned to such term in the Credit Agreement. Each reference to
"hereof",  "hereunder",  "herein" and "hereby" and each other similar  reference
and  each  reference  to  "this  Agreement"  and each  other  similar  reference
contained in the Credit Agreement shall, after this Amendment and Waiver becomes
effective, refer to the Credit Agreement as amended hereby.

         SECTION 2.  Resetting of the Availability Limit and the Debt Limit.
(a) The definition of "Availability Limit" set forth in Section 1.01 of the
Credit Agreement is amended by to read in its entirety as follows:

         "Availability  Limit" means, on any date, an amount equal to the lesser
of  (i)  the  aggregate  amount  of  the  Commitments  at  such  date  and  (ii)
$85,000,000.  The  Availability  Limit may be increased  only by an amendment in
accordance  with Section  8.05,  which the Banks may agree to or not agree to in
their sole discretion.

(NY) 27008/757/AMEND/amend00.2.conf

<PAGE>

         (b)  Effective  on and as of the date  hereof,  the  "Debt  Limit",  as
determined  in  accordance  with  subsection  (b) of Section  4.17 of the Credit
Agreement, shall be $85,000,000.

         SECTION 3. Amendment to Section 4.17(c)(ii). Section 4.17(c)(ii) of the
Credit Agreement is hereby amended in its entirety as set forth below:

                  "(ii)  Upon any sale by the  Borrowers  or the  Property  Base
         Subsidiaries of Petroleum  Property having,  together with all previous
         such  sales  not  taken  into  account  in  previous   adjustments   or
         redeterminations of the Debt Limit pursuant to this Section 4.17(c), an
         aggregate fair market value of $1,000,000 or more, under  circumstances
         when subparagraph  (iv) is not applicable,  or, if subparagraph (iv) is
         applicable,   until  the  Debt  Limit  is   redetermined   pursuant  to
         subparagraph  (iv),  the Debt Limit shall be reduced,  effective on the
         date of  consummation  of such sale,  by an amount  equal to 50% of the
         aggregate   net  proceeds  to  the  Borrowers  and  the  Property  Base
         Subsidiaries of (x) such sale and (y) all previous such sales not taken
         into  account in previous  adjustments  or  rederminations  of the Debt
         Limit pursuant to this Section 4.17(c)."

         SECTION 4. Waiver of the Asset Sale  Covenant.  The Banks  hereby waive
compliance by the Borrowers  with the  requirement  in subsection (b) of Section
4.27 of the Credit  Agreement  that the net proceeds of all sales of Property by
HEC  and its  Subsidiaries  not  exceed  $5,000,000  during  any  period  of six
consecutive  calendar months,  such waiver being granted for the limited purpose
of  permitting  HEC and its  Subsidiaries  to sell the  Properties  described in
Schedules A-1 and A- 2 hereto for an aggregate  purchase price of  approximately
$3,950,000 and $2,000,000, respectively, in each case substantially on the terms
described by HEC to the Banks prior to the date hereof.

         SECTION  5. No  Other  Waivers.  Other  than as  specifically  provided
herein,  this  Amendment  and Waiver shall not operate as a waiver of any right,
remedy, power or privilege of the Agent, the Collateral Agent or the Banks under
the Credit  Agreement  or any other  Financing  Document or of any other term or
condition thereof.

         SECTION 6.  Representations of Borrowers.  The Borrowers  represent and
warrant that (i) the  representations  and warranties of the Borrowers set forth
in Article 3 of the Credit  Agreement  are true on and as of the date hereof and
(ii) no Default has occurred and is continuing.

         SECTION 7.  Governing Law.  This Amendment and Waiver shall be
governed by and construed in accordance with the laws of the State of New York.

(NY) 27008/757/AMEND/amend00.2.conf

<PAGE>

         SECTION 8. Counterparts. This Amendment and Waiver may be signed in any
number of counterparts, each of which shall be an original, with the same effect
as if the signatures thereto and hereto were upon the same instrument.

         SECTION  9.  Effectiveness.  This  Amendment  and Waiver  shall  become
effective  as of the date  hereof  on the date on which  the  Agent  shall  have
received from the  Borrowers  and the Banks a counterpart  hereof signed by such
party or facsimile or other written  confirmation  (in form  satisfactory to the
Agent) that such party has signed a counterpart hereof.

(NY) 27008/757/AMEND/amend00.2.conf

<PAGE>

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

                           HALLWOOD ENERGY CORPORATION

                         By: /s/ William J. Baumgartner
                                                  Title:   Vice President

                                            HALLWOOD CONSOLIDATED
                              RESOURCES CORPORATION

                         By: /s/ William J. Baumgartner
                                                  Title:   Vice President

                                            HALLWOOD ENERGY PARTNERS, L.P.

                         By: HEC Acquisition Corp., its
                                 General Partner

                                                  By/s/ William J. Baumgartner
                                                        Title: Vice President

(NY) 27008/757/AMEND/amend00.2.conf

<PAGE>

                               MORGAN GUARANTY TRUST
                               COMPANY OF NEW YORK

                             By: /s/ John Kowalczuk
                            Title:   Vice President

                            FIRST UNION NATIONAL BANK

                            By: /s/ Robert Wetteroff
                            Title:   Senior Vice President

                         BANK OF AMERICA, N.A., formerly
                         NATIONSBANK, N.A.

                            By: /s/ Tracey S. Barclay
                                Title: Principal

(NY) 27008/757/AMEND/amend00.2.conf

<PAGE>

Acknowledged by:

                                    HALLWOOD LA PLATA, LLC
                                    LA PLATA ASSOCIATES, LLC

                                    By: HALLWOOD PETROLEUM, INC.

                                    By:/s/ Cathleen M. Osborn
                                         Title: Vice President

                   The Manager of Hallwood La Plata LLC and La
                                            Plata Associates LLC

                                    CONCISE OIL AND GAS PARTNERSHIP
                                    EM NOMINEE PARTNERSHIP COMPANY
                                    MAY ENERGY PARTNERS OPERATING
                                                 PARTNERSHIP LTD.

                                    By: HEC ACQUISITION CORP.

                                    By:/s/ Cathleen M. Osborn
                                         Title: Vice President

                   The General Partner of Concise Oil and Gas
                  Partnership, EM Nominee Partnership Company,
                    May Energy Partners Operating Partnership
                                    LTD.

                                    HALLWOOD CONSOLIDATED PARTNERS,
                                    L.P.

                                    By: HALLWOOD CONSOLIDATED
                                    RESOURCES CORPORATION

                                    By:/s/ Cathleen M. Osborn
                                         Title: Vice President

                                    The General Partner of Hallwood Consolidated
                                            Partners, L.P.

(NY) 27008/757/AMEND/amend00.2.conf

<PAGE>

                                          SCHEDULE A-1

         The  Properties  marked by an  asterisk  in this  Schedule  A-1 are the
Properties  referred to in Section 4 of the  Amendment  and Waiver to which this
Schedule A-1 is attached.

(NY) 27008/757/AMEND/amend00.2.conf

<PAGE>

                                          SCHEDULE A-2

         The  Properties  marked by an  asterisk  in this  Schedule  A-2 are the
Properties  referred to in Section 4 of the  Amendment  and Waiver to which this
Schedule A-2 is attached.

(NY) 27008/757/AMEND/amend00.2.conf

<PAGE>Exhibit 10.3
        FIFTH AMENDMENT TO
        LOAN AND SECURITY AGREEMENT

THIS FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this "Fifth
Amendment") is dated as of June 30, 1999 and is entered into between
SCIENTIFIC TECHNOLOGIES INCORPORATED WHICH WILL DO BUSINESS IN CALIFORNIA AS
OREGON SCIENTIFIC TECHNOLOGIES, an Oregon corporation (the "Borrower"), and
BANK OF THE WEST, a California banking corporation (the "Bank").

        RECITALS:

A.       Borrower and Bank have entered into that certain Loan and
Security Agreement dated November 29, 1994, that certain First Amendment
to Loan and Security Agreement dated as of May 31, 1995,  that certain
Second Amendment to Loan and Security Agreement dated as of May 31, 1996,
and that certain third Amendment to Loan and Security Agreement dated as
of May 31, 1997 and that certain third Amendment to Loan and Security
Agreement dated as of June 9, 1998 (collectively, the "Loan Agreement")
and that certain Equipment Purchase Line Note dated December 6, 1994 (the
"Equipment Purchase Line Note");

B.       Borrower and Bank intend to further amend the Loan Agreement
and/or the Equipment Purchase Line Note as provided by this Fifth
Amendment.

        AMENDMENT:

NOW, THEREFORE, Borrower and Bank hereby agree as follows:

1.      This Fifth Amendment shall modify and, to the extent
inconsistent with, amend the Loan Agreement and/or the Equipment Purchase
Line Note.  Any capitalized term not specifically defined herein shall
have the meaning assigned to it in the Loan Agreement.

2.      The last sentence of Section 3.1(a) of the Loan Agreement is
hereby deleted in its entirety and is replaced with the following:

For the purpose of this Agreement, "Draw Period" shall mean
the period between the date of this Loan and Security
Agreement and the earlier of: (i) June 30, 2000 or (ii) the
date on which the aggregate of all advances made pursuant to
this Section 3.1 equals One Million and 00/100 Dollars
($1,000,000.00).

3.      The second sentence of the first paragraph of Section 4.1 of
the Loan Agreement is hereby deleted in its entirety and is replaced with
the following:

Borrower's right to obtain advances under Section 2.1 and to
enter into foreign

1
exchange contracts under the FX Facility provided by Section
14.1 shall remain in full force and effect until June 30,
2000, and shall continue on a month-to-month basis thereafter
until terminated by either party on thirty (30) days prior
written notice to the other.

4.      Bank shall have the right, but not the obligation, to charge
any amounts owing by Borrower to Bank under the Loan Agreement, the
Equipment Purchase Line Note, or this Fifth Amendment against any accounts
maintained by Borrower with Bank and Borrower consents thereto.

5.      Concurrently with the execution of this Fifth Amendment,
Borrower shall pay to Bank a fee in an amount equal to Seven Thousand Five
Hundred Dollars ($7,500.00), which fee shall represent an unconditional
and non-refundable payment to Bank in consideration of Bank's agreement to
enter into this Fifth Amendment.

6.      Bank's duties to extend and renew the Obligations and to make
advances in accordance with this Fifth Amendment shall be subject to (i)
there being no outstanding and uncured defaults under the Loan Agreement,
the Equipment Purchase Line Note or any other obligation owing by Borrower
to Bank and (ii) the satisfaction of each of the conditions precedent set
forth in Article 6 of the Loan Agreement, each of which is incorporated
herein by this reference; (iii) the executions and delivery of this fifth
amendment and such other documents as Bank may request (including, without
limitation, a Corporate Resolution to Borrow and Pledge, an Insurance
Information Questionnaire, a Warranties and Representations of Officers,
an Automatic Transfer Authorization, and a declaration of Purpose
Statement).

7.      Except as amended by this Fifth Amendment, all of the terms
and conditions of the Loan Agreement (and each and every document or
instrument executed and delivered in connection therewith) is and shall
remain in full force and effect.

8.      Except as amended by this Fifth Amendment, Borrower hereby
ratifies, reaffirms, and remakes as of the date hereof each and every
representation and warranty contained in the Loan Agreement, the Equipment
Purchase Line Note, or in any document executed and delivered in
connection therewith.

IN WITNESS WHEREOF, Borrower has executed and delivered this Fifth
Amendment to Bank on the date first above written at Walnut Creek,
California.

"BORROWER"

SCIENTIFIC TECHNOLOGIES INCORPORATED WHICH
WILL DO BUSINESS IN CALIFORNIA AS OREGON
SCIENTIFIC TECHNOLOGIES, an Oregon
corporation

By:  /s/Joseph J. Lazzara

Its:   President and Chief Executive
Officer

IN WITNESS WHEREOF, Bank hereby accepts this Fifth Amendment to be
effective as of the date first above written in Walnut Creek,
California.

"BANK"

BANK OF THE WEST,
a California banking corporation

By:  /s/Barry E. Anderson

Its:  Vice President

EXHIBIT "A"
EQUIPMENT PURCHASE LINE NOTE

$1,000,000.00
        Walnut Creek, California

In consideration of all loans and advances ("Advances") from time to
time made by BANK OF THE WEST (the "Bank") to or for the benefit of the
undersigned (the "Borrower") pursuant to that certain Loan and Security
Agreement between Borrower and Bank dated November 29, 1994, as amended,
extended or renewed (collectively the "Loan Agreement"), during the Draw
Period (as defined in the Loan Agreement), Borrower promises to pay Bank,
or order, at 2000 Franklin Street, Suite 420, East Bay Business Banking
Group (Group 054), Oakland, California 94612, on the dates and in the
manner hereinafter set forth, all outstanding Advances, plus any interest
thereon then unpaid, at a rate (the "Rate") of interest equal to the
Bank's Prime Rate (as hereinafter defined), which Rate shall vary
concurrently with any change in the Prime Rate.  For the purpose of this
Note, the "Prime Rate" shall mean the variable rate of interest, per
annum, most recently announced by Bank at its headquarters office in San
Francisco, California, as its "prime rate." The undersigned understands
that Bank's "prime rate" is one of its base rates with respect to loans
making reference thereto and may not be the lowest of Bank's base rates.
 Interest shall be computed on the outstanding principal balance on the
basis of three hundred sixty (360) days per year and actual days elapsed.

Commencing on the last day of the calendar month after the date of
this Note, and continuing on the last day of each month thereafter until
the Principal Repayment Commencement Date (as hereinafter defined),
Borrower shall make (i) monthly interest payments on the outstanding
amount of the Advances at the Rate and (ii) payments of all Bank Expenses
(as defined in the Loan Agreement) incurred by Bank in connection with or
attributable to this Note.  If not so paid, such unpaid interest and/or
Bank Expenses shall become part of the principal, at the option of Bank.

Commencing on the last day of the month after the end of the Draw
Period (the "Principal Repayment Commencement Date") and continuing on
the last day of each month thereafter until the Equipment Line Maturity
Date (as hereinafter defined), Borrower shall make (i) equal and
consecutive monthly principal payments with each payment being in an
amount sufficient to repay the aggregate principal amount of advances
under the Equipment Purchase Line outstanding as of the Principal
Repayment Commencement Date over sixty (60) months on a straight-line
basis, (ii) monthly interest payments at the Rate on the outstanding
amount of advances under the Equipment Purchase Line, and (iii) all Bank
Expenses incurred by Bank in connection with Equipment Purchase Line.  For
the purpose of this Agreement, the "Equipment Line Maturity Date" shall
be sixty (60) months after the Principal Repayment Commencement Date.
The aggregate unpaid balance of all Advances made hereon at any time
shall not exceed One Million Dollars ($1,000,000.00).  In the event that
the amount of all Advances hereunder shall exceed One Million Dollars
($1,000,000.00), Borrower shall immediately, and without demand, make
payment to Bank in an amount sufficient to reduce the balance hereof to an
amount that is less than said limitation.  All Advances shall be
conclusively presumed to have been made to, for the benefit of, and at the
request of Borrower when deposited or credited to the account of Borrower
with Bank or made in accordance with the terms of the Loan Agreement or
the oral or written instructions of Borrower, or any one signing below for
or on behalf of the undersigned.

Bank may, at its option, elect to treat any due but unpaid interest
and Bank Expenses as advances under the Credit, and all such advances
shall bear interest on the Daily Balance thereof, at a per annum rate
applicable to the Credit under the terms of this Agreement.  The receipt
of any check or other item of payment by Bank shall not be considered a
payment until such check or other item of payment is honored when
presented for payment, in which event, said check or other item of payment
shall be deemed to have been paid to Bank in accordance with Bank's rules
and regulations relating to credits to deposit accounts or, in Bank's
discretion, two (2) calendar days after the date Bank actually receives
possession of such check or other item of payment.

Upon the occurrence of an Event of Default under the Loan Agreement
which has not been cured as therein provided or waived by Bank in writing,
the whole sum of principal, interest and Bank Expenses relating to such
Advances shall become due immediately at the option of Bank.

Upon the occurrence of an Event of Default under the Loan Agreement
(which has not been cured as therein provided or waived by Bank in
writing) and at the option of Bank, interest may be charged on the
Advances outstanding on the date of such Event of Default at the rate of
five (5) percentage points greater than the Rate (the "Default Rate"). The
Default Rate shall commence on the day following any Event of Default and
shall continue until such Event of Default has been cured to the
satisfaction of Bank.

If this Note is not paid when due, Borrower promises to pay all
costs and expenses of collection and all attorneys' fees and costs
incurred by Bank on account of such collection, whether or not suit is
filed, which said costs, expenses and fees shall become part of principal.
 The indebtedness evidenced hereby shall be payable in lawful money of the
United States of America.

This Note is subject to the terms and conditions of the Loan
Agreement.  The obligations arising under this Note constitute Obligations
under and pursuant to the terms of the Loan Agreement and are secured
under and pursuant to the terms thereof.

IN WITNESS WHEREOF, the undersigned has caused this Note to be
executed by its officers thereunto duly authorized and directed by a
Resolution of its Board of Directors.

SCIENTIFIC TECHNOLOGIES INCORPORATED WHICH
WILL DO BUSINESS IN CALIFORNIA AS OREGON
SCIENTIFIC TECHNOLOGIES, an Oregon
corporation

        By: /s/Joseph J. Lazzara

Its:   President and Chief Executive

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]