Document:

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                                                                    EXHIBIT 10.3

                               FIRST SUPPLEMENTAL
                          MORTGAGE, SECURITY AGREEMENT,
                       ASSIGNMENT AND FINANCING STATEMENT
                                      FROM

                         UNITED STATES EXPLORATION, INC.

                                       TO

                             BANK OF OKLAHOMA, N.A.

                           Dated effective May 1, 2002

--------------------------------------------------------------------------------

THIS FIRST SUPPLEMENTAL MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT AND FINANCING
STATEMENT IS TO BE FILED FOR RECORD, AMONG OTHER PLACES, IN THE REAL ESTATE
RECORDS.

A CARBON, PHOTOGRAPHIC, FACSIMILE, OR OTHER REPRODUCTION OF THIS INSTRUMENT IS
SUFFICIENT AS A FINANCING STATEMENT.

This instrument was prepared by and the recorded counterparts should be returned
to:

                                       McAfee & Taft
                                       A Professional Corporation
                                       c/o T. Michael Blake, Esq.
                                       10th Floor, Two Leadership Square
                                       211 North Robinson
                                       Oklahoma City, OK 73102-7103

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                          FIRST SUPPLEMENTAL MORTGAGE,
             SECURITY AGREEMENT, ASSIGNMENT AND FINANCING STATEMENT

         This First Supplemental Mortgage, Security Agreement, Assignment and
Financing Statement ("First Supplement") is made effective the 1st day of May,
2002 by and between UNITED STATES EXPLORATION, INC., a Colorado corporation,
whose mailing address is 1560 Broadway, Suite 1900, Denver, Colorado 80202
(hereinafter referred to as "Mortgagor") in favor of BANK OF OKLAHOMA, N.A.,
whose mailing address is 201 Robert S. Kerr, P.O. Box 24128, Oklahoma City,
Oklahoma County, Oklahoma 73124 (hereinafter referred to as the "Bank").

                                   WITNESSETH:

         WHEREAS, Mortgagor has heretofore executed and delivered to Bank that
certain Mortgage, Security Agreement, Assignment and Financing Statement dated
August 25, 2000 (hereinafter referred to as the "Mortgage") to secure payment of
all indebtedness owed or to be owing to Bank including, without limitation, the
indebtedness evidenced by that certain Revolving Note dated August 25, 2000, in
the principal amount of $10,000,000 (the "Original Note").

         WHEREAS, the Mortgage encumbers the Wells (as defined in the Mortgage
and used hereinafter with the same meaning) and interests of Mortgagor described
in Exhibit A attached hereto and other properties, rights, titles, interests and
estates of Mortgagor more specifically described in the Mortgage (defined in the
Mortgage collectively as the "Mortgaged Properties" and used hereinafter with
the same meaning); and

         WHEREAS, the Mortgage has been filed and recorded in Weld County,
Colorado; and

         WHEREAS, Mortgagor has executed and delivered to Bank an Amended and
Restated Revolving Note effective as of May 1, 2002 in the stated principal
amount of $15,000,000 (the "Amended and Restated Note"), which renews and
replaces the Original Note to increase the stated principal amount; and

         WHEREAS, Mortgagor desires to amend the Mortgage so as to include in
the Secured Indebtedness (as defined in the Mortgage and used hereinafter with
the same meaning) all indebtedness evidenced by the Amended and Restated Note.

         NOW, THEREFORE, in consideration of the premises and of the debts
mentioned above and the agreements herein contained and for other good and
valuable consideration, the parties agree as follows:

                  1. REAFFIRMANCE OF THE MORTGAGE. To secure the complete and
punctual payment of the Secured Indebtedness and a prompt performance and
observance of all covenants, agreements and obligations of Mortgagor contained
in the Mortgage or in any other documents or instruments executed by Mortgagor
in favor of Bank, Mortgagor has granted, bargained, sold, conveyed, transferred,
assigned, set over, confirmed, delivered, mortgaged and pledged unto and granted
a security interest in favor of, and by these presents does hereby grant,
bargain, sell, convey, transfer, assign, set over, confirm, deliver, mortgage
and pledge unto and

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grant a security interest in favor of Bank, its successors and assigns, all of
Mortgagor's right, title and interest, whether now owned or hereafter acquired,
in and to the Mortgaged Properties.

                  TO HAVE AND TO HOLD the Mortgaged Properties, together with
the rights, privileges and appurtenances now or hereafter at any time before the
release hereof in anywise belonging or appertaining thereto, unto Bank forever
to secure the payment of the Secured Indebtedness and the performance and
observance of the covenants, agreements and obligations of Mortgagor referred to
herein.

                  2. INCLUSION IN THE SECURED INDEBTEDNESS OF THE AMENDED AND
RESTATED NOTE. The Amended and Restated Note and all indebtedness evidenced
thereby are hereby made a part of the Secured Indebtedness, and the term Secured
Indebtedness shall, when used herein or in the Mortgage, be deemed to include
the Amended and Restated Note and all indebtedness evidenced thereby. Each
reference in the Mortgage to the Note shall be deemed to include a reference to
the Amended and Restated Note.

                  3. WARRANTIES, COVENANTS AND AGREEMENTS. All warranties,
covenants and agreements contained in the Mortgage are hereby remade as of the
date hereof by Mortgagor and incorporated herein by reference and (together with
the remedies contained in the Mortgage) shall continue in full force and effect.

                  4. MISCELLANEOUS.

                           (a) CONTINUATION OF THE MORTGAGE. This First
Supplement shall be considered as an amendment and supplement to the Mortgage
and, except as herein expressly amended and supplemented, the Mortgage is hereby
ratified, approved and confirmed in every respect. All references to the
Mortgage and any other document shall hereafter be deemed to refer to the
Mortgage as amended and supplemented thereby.

                           (b) CONTINUATION OF THE SECURED INDEBTEDNESS. The
indebtedness evidenced by the Original Note is a continuing indebtedness and
nothing contained herein or in any other document shall be construed as
constituting payment or satisfaction of the Original Note or a novation of the
indebtedness thereby evidenced or as a release or termination of any lien or
security interest which secures payment of the Original Note.

                                       2
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                  IN WITNESS WHEREOF, this First Supplement has been executed
and delivered as of the date first above written.

MORTGAGOR:                             UNITED STATES EXPLORATION, INC., a
                                       Colorado corporation

                                       /s/ Bruce D. Benson
                                       -----------------------------------------
                                       Name: Bruce D. Benson
                                       Title: President

BANK:                                  BANK OF OKLAHOMA, N.A.

                                       /s/ Steve P. Ramsey
                                       -----------------------------------------
                                       Name: Steve P. Ramsey
                                       Title: Vice President
                                       Address: 201 Robert S. Kerr
                                                P.O. Box 24128
                                                Oklahoma City, OK 73124

                                       3
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                                 ACKNOWLEDGMENTS

STATE OF OKLAHOMA                   )
                                    ) ss:
COUNTY OF OKLAHOMA                  )

                  The foregoing instrument was acknowledged before me this 8th
day of May, 2002 by Bruce D. Benson, as President of United States Exploration,
Inc., a Colorado corporation.

                  Given under my hand and seal of office the day and year last
above written.

My commission expires:                 /s/ Andrea C. Clugston
                                       ------------------------------
8/23/2004            .                 Notary Public
---------------------                  Commission #
(Seal)                                             ------------------

STATE OF OKLAHOMA                   )
                                    ) ss:
COUNTY OF OKLAHOMA                  )

                  The foregoing instrument was acknowledged before me this ____
day of May, 2002 by Steve P. Ramsey, as Vice President of Bank of Oklahoma,
N.A., an Oklahoma corporation.

                  Given under my hand and seal of office the day and year last
above written.

My commission expires:
                                       ------------------------------
                     .                 Notary Public
---------------------                  Commission #
(Seal)                                             ------------------

                                       4<PAGE>
                                                                   EXHIBIT 10.15

                      WAIVER, CONSENT AND FOURTH AMENDMENT

         THIS WAIVER, CONSENT AND FOURTH AMENDMENT (the "Agreement") dated as of
April 19, 2002, is to that Credit Agreement dated as of August 29, 1998, as
amended by a First Amendment to Credit Agreement dated as of December 18, 1998,
as amended by a Second Amendment to Credit Agreement dated as of July 10, 2000
and as further amended by a Waiver and Third Amendment to Credit Agreement dated
as of May 15, 2001 (as may be subsequently amended and modified from time to
time, the "Credit Agreement"; terms used but not otherwise defined herein shall
have the meanings provided in the Credit Agreement), by and among TUFCO, L.P., a
Delaware limited partnership (the "Borrower"), TUFCO TECHNOLOGIES, INC., a
Delaware corporation (the "Parent"), the other guarantors defined therein, the
several banks and other financial institutions identified therein (the
"Lenders") and WACHOVIA BANK, NATIONAL ASSOCIATION, formerly known as First
Union National Bank, as agent for the Lenders thereunder (in such capacity, the
"Agent").

                                   WITNESSETH:

         WHEREAS, the Lenders have established a secured credit facility for the
benefit of the Borrower pursuant to the terms of the Credit Agreement;

         WHEREAS, (i) the Borrower has advised the Agent that it intends to sell
a Jagenberg paper sheeter and other minor assets, with a net book value of
approximately $498,000, for approximately $581,000 in total cash consideration
("Equipment Sale") and (ii) the Borrower has suggested to the Agent that the
definition of "Capital Expenditures" is subject to interpretation and that an
amendment thereto is necessary to clarify the meaning thereof;

         WHEREAS, (i) the Equipment Sale is prohibited under Section 11.8 of the
Credit Agreement and the Borrower has requested that the Required Lenders
consent to the Equipment Sale and grant a limited one-time waiver of the
Borrower's obligations under Section 11.8 of the Credit Agreement and (ii) the
Borrower and the Required Lenders have determined that it is advisable to amend
the definition of "Capital Expenditures" in the Credit Agreement to clarify the
interpretation thereof in the manner set forth herein and have concluded that no
previous violations have occurred as result of interpretation;

         NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

          A. Waiver and Consent. The Lenders hereby consent to the Equipment
Sale and grant a limited one-time waiver of the Borrower's obligations under
Section 11.8 of the Credit Agreement and waive any Default or Event of Default
that would otherwise result from the Equipment Sale so long as the Borrower
immediately applies 100% of the Net Proceeds from the Equipment Sale to prepay
the Term Loan in accordance with the provisions of Section 6.4(a)(i) of the
Credit Agreement.

         B. Amendment. The definition of "Capital Expenditures" in Section 1.1
of the Credit Agreement is hereby amended in its entirety to read as follows:

                  "Capital Expenditures" means, for any period, all expenditures
         (calculated on a gross basis, without reduction for proceeds from asset
         dispositions or any other amount) of Parent and the Subsidiaries which
         are classified as capital expenditures in accordance with GAAP
         including all such expenditures associated with Capital Lease
         Obligations but excluding capital

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         expenditures made in connection with the expansion of the Borrower's
         Green Bay, Wisconsin production facility in an aggregate amount not to
         exceed $3,000,000.

         C. Except as modified hereby, all of the terms and provisions of the
Credit Agreement (and Exhibits) remain in full force and effect.

         D. This Agreement shall become effective upon the receipt by the Agent
of counterparts of this Agreement, executed by a duly authorized officer of each
party hereto.

         E. The Borrower agrees to pay all reasonable costs and expenses in
connection with the preparation, execution and delivery of this Agreement,
including without limitation, the reasonable fees and expenses of Agent's legal
counsel.

         F. This Agreement may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an original and it shall
not be necessary in making proof of this Agreement to produce or account for
more than one such counterpart.

         G. This Agreement and the Credit Agreement, as amended hereby, shall be
deemed to be contracts made under, and for all purposes shall be construed in
accordance with the laws of the State of North Carolina.

                                       2

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         IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart
of this Agreement to be duly executed and delivered as of the date and year
first above written.

BORROWER:                           TUFCO, L.P.,

                                    By:  Tufco Tech, Inc.
                                         its Managing General Partner

                                         By:
                                            -----------------------------------
                                            Name:
                                            Title:

PARENT:                             TUFCO TECHNOLOGIES, INC.,

                                    By:
                                       ---------------------------------------
                                       Name:
                                       Title:

OTHER
GUARANTORS:                         TECHNOLOGIES I, INC.

                                    By:
                                       ---------------------------------------
                                       Name:
                                       Title:

                                    TUFCO, INC.

                                    By:
                                       ---------------------------------------
                                       Name:
                                       Title:

                                    TFCO, INC.

                                    By:
                                       ---------------------------------------
                                       Name:
                                       Title:

                                    FOREMOST MANUFACTURING COMPANY INC.

                                    By:
                                       ---------------------------------------
                                       Name:
                                       Title:

                                       3

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                                    TUFCO TECH, INC.

                                    By:
                                       ---------------------------------------
                                       Name:
                                       Title:

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AGENTS AND LENDERS:                 WACHOVIA BANK, NATIONAL ASSOCIATION,
                                    formerly known as FIRST UNION NATIONAL BANK,
                                    as Administrative Agent and as a Lender

                                    By:
                                       ---------------------------------------
                                       Name:
                                       Title:

                                       5

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                                    JP MORGAN CHASE BANK

                                    By:
                                       ---------------------------------------
                                       Name:
                                       Title:

                                       6

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