Document:

<PAGE>
                                                                   EXHIBIT 10.12

                            [FIRST UNITED BANK LOGO]

                                PROMISSORY NOTE

<Table>
-----------------------------------------------------------------------------------------------------------------
<S>              <C>             <C>             <C>          <C>              <C>          <C>          <C>
 PRINCIPAL       LOAN DATE        MATURITY       LOAN NO      CALL / COLL      ACCOUNT      OFFICER      INITIALS
$250,050.00      07-30-2002      10-01-2002       656387        4A / 20                       RCB
-----------------------------------------------------------------------------------------------------------------
</Table>

  References in the shaded area are for Lender's use only and do not limit the
 applicability of this document to any particular loan or item. Any item above
        containing "***" has been omitted due to text length limitations.
--------------------------------------------------------------------------------
<Table>
<S>                                                      <C>
BORROWER: WESTECH CAPITAL CORP. (TIN: 13-3577716)        LENDER: FIRST UNITED BANK
          2700 VIA FORTUNA, SUITE 400                            LUBBOCK SOUTHWEST BRANCH
          AUSTIN, TX 78746                                       6604 FRANKFORD
                                                                 LUBBOCK, TX 79424

=================================================================================================================
PRINCIPAL AMOUNT: $250,050.00      INTEREST RATE: 7.000%      DATE OF NOTE: JULY 30, 2002
</TABLE>

PROMISE TO PAY. WESTECH CAPITAL CORP. ("BORROWER") PROMISES TO PAY TO FIRST
UNITED BANK ("LENDER"), OR ORDER, IN LAWFUL MONEY OF THE UNITED STATES OF
AMERICA, THE PRINCIPAL AMOUNT OF TWO HUNDRED FIFTY THOUSAND FIFTY & 00/100
DOLLARS ($250,050.00), TOGETHER WITH INTEREST AT THE RATE OF 7.000% PER ANNUM ON
THE UNPAID PRINCIPAL BALANCE FROM JULY 30, 2002, UNTIL MATURITY.

PAYMENT. BORROWER WILL PAY THIS LOAN ON DEMAND. PAYMENT IN FULL IS DUE
IMMEDIATELY UPON LENDER'S DEMAND. IF NOT DEMAND IS MADE, BORROWER WILL PAY THIS
LOAN IN ONE PRINCIPAL PAYMENT OF $250,050.00 PLUS INTEREST ON OCTOBER 1, 2002.
THIS PAYMENT DUE ON OCTOBER 1, 2002, WILL BE FOR ALL PRINCIPAL AND ALL ACCRUED
INTEREST NOT YET PAID. UNLESS OTHERWISE AGREED OR REQUIRED BY APPLICABLE LAW,
PAYMENTS WILL BE APPLIED FIRST TO ACCRUED UNPAID INTEREST, THEN TO PRINCIPAL,
AND ANY REMAINING AMOUNT TO ANY UNPAID COLLECTION COSTS. THE ANNUAL INTEREST
RATE FOR THIS NOTE IS COMPUTED ON A 365/360 BASIS; THAT IS, BY APPLYING THE
RATIO OF THE ANNUAL INTEREST RATE OVER A YEAR OF 360 DAYS, MULTIPLIED BY THE
OUTSTANDING PRINCIPAL BALANCE, MULTIPLIED BY THE ACTUAL NUMBER OF DAYS THE
PRINCIPAL BALANCE IS OUTSTANDING, UNLESS SUCH CALCULATION WOULD RESULT IN A
USURIOUS RATE, IN WHICH CASE INTEREST SHALL BE CALCULATED ON A PER DIEM BASIS OF
A YEAR OF 365 OR 366 DAYS, AS THE CASE MAY BE. BORROWER WILL PAY LENDER AT
LENDER'S ADDRESS SHOWN ABOVE OR AT SUCH OTHER PLACE AS LENDER MAY DESIGNATE IN
WRITING.

PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges
are earned fully as of the date of the loan and will not be subject to refund
upon early payment (whether voluntary or as a result of default), except as
otherwise required by law. Except for the foregoing, Borrower may pay without
penalty all or a portion of the amount owed earlier than it is due. Prepayment
in full shall consist of payment of the remaining unpaid principal balance
together with all accrued and unpaid interest and all other amounts, costs and
expenses for which Borrower is responsible under this Note or any other
agreement with Lender pertaining to this loan, and in no event will Borrower
ever be required to pay any unearned interest. Early payments will not, unless
agreed to by Lender in writing, relieve Borrower of Borrower's obligation to
continue to make payments under the payment schedule. Rather, early payments
will reduce the principal balance due. Borrower agrees not to send Lender
payments marked "paid in full", "without recourse", or similar language. If
Borrower sends such a payment, Lender may accept it without losing any of
Lender's rights under this Note, and Borrower will remain obligated to pay any
further amount owed to Lender. All written communications concerning disputed
amounts, including any check or other payment instrument that indicates that the
payment constitutes "payment in full" of the amount owed or that is tendered
with other conditions or limitations or as full satisfaction of a disputed
amount must be mailed or delivered to: First United Bank, Lubbock Southwest
Branch, 6604 Frankford, Lubbock, TX 79424.

POST MATURITY RATE. The Post Maturity Rate on this Note is 18.000% per annum.
Borrower will pay interest on all sums due after final maturity, whether by
acceleration or otherwise, at that rate.

     DEFAULT. Each of the following shall constitute an event of default ("Event
     of Default") under this Note:

     PAYMENT DEFAULT. Borrower fails to make any payment when due under this
     Note.

     OTHER DEFAULTS. Borrower fails to comply with or to perform any other term,
     obligation, covenant or condition contained in this Note or in any of the
     related documents or to comply with or to perform any term, obligation,
     covenant or condition contained in any other agreement between Lender and
     Borrower.

     FALSE STATEMENTS. Any warranty, representation or statement made or
     furnished to Lender by Borrower or on Borrower's behalf under this Note or
     the related documents is false or misleading in any material respect,
     either now or at the time made or furnished or becomes false or misleading
     at any time thereafter.

     INSOLVENCY. The dissolution or termination of borrower's existence as a
     going business, the insolvency of Borrower, the appointment of a receiver
     for any part of Borrower's property, any assignment for the benefit of
     creditors, any type of creditor workout, or the commencement of any
     proceeding under any bankruptcy or insolvency laws by or against Borrower.

     CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or
     forfeiture proceedings, whether by judicial proceeding, self-help,
     repossession or any other method, by any creditor of borrower or by any
     governmental agency against any collateral securing the loan. This includes
     a garnishment of any of Borrower's accounts, including deposit accounts,
     with Lender. However, this Event of Default shall not apply if there is a
     good faith dispute by Borrower as to the validity or reasonableness of the
     claim which is the basis of the creditor or forfeiture proceeding and if
     Borrower gives Lender written notice of the creditor or forfeiture
     proceeding and deposits with Lender monies or a surety bond for the
     creditor or forfeiture proceeding, in an amount determined by Lender, in
     its sole discretion, as being an adequate reserve or bond for the dispute.

     EVENTS AFFECTING GUARANTOR. Any of the preceding events occurs with respect
     to any Guarantor of any of the indebtedness or any Guarantor dies or
     becomes incompetent, or revokes or disputes the validity of, or liability
     under, any guaranty of the indebtedness evidenced by this Note. In the
     event of a death, Lender, at its option, may, but shall not be required to,
     permit the Guarantor's estate to assume unconditionally the obligations
     arising under the guaranty in a manner satisfactory to Lender, and, in
     doing so, cure any Event of Default.

     CHANGE IN OWNERSHIP. Any change in ownership of twenty-five percent (25%)
     or more of the common stock of Borrower.

     ADVERSE CHANGE. A material adverse change occurs in Borrower's financial
     condition, or Lender believes the prospect of payment or performance of
     this Note is impaired.

     INSECURITY. Lender in good faith believes itself insecure.

     CURE PROVISIONS. If any default, other than a default in payment or failure
     to satisfy Lender's requirement in the Insufficient Market Value of
     Securities section is curable, it may be cured (and no event of default
     will have occurred) if Borrower, after receiving written notice from Lender
     demanding cure of such default: (1) cures the default within twenty (20)
     days; or (2) if the cure requires more than twenty (20) days, immediately
     initiates steps which Lender deems in Lender's sole discretion to be
     sufficient to cure the default and thereafter continues and completes all
     reasonable and necessary steps sufficient to produce compliance as soon as
     reasonably practical.

LENDER'S RIGHTS. Upon default, Lender may declare the entire indebtedness,
including the unpaid principal balance on this Note, all accrued unpaid
interest, and all other amounts, costs and expenses for which Borrower is
responsible under this Note or any other agreement with Lender pertaining to
this loan, immediately due, without notice, and then Borrower will pay that
amount.

ATTORNEYS' FEES; EXPENSES. Lender may hire an attorney to help collect this Note
if Borrower does not pay, and Borrower will pay Lender's reasonable attorneys'
fees. Borrower also will pay Lender all other amounts Lender actually incurs as
court costs, lawful fees for filing, recording, releasing to any public office
any instrument securing this Note; the reasonable cost actually expanded for
repossessing, storing, preparing for sale, and selling any security; and fees
for noting a lien on or transferring a certificate of title to any motor vehicle
offered as security for this Note, or premiums or identifiable charges received
in connection with the sale of authorized insurance.

GOVERNING LAW. THIS NOTE WILL BE GOVERNED BY, CONSTRUED AND ENFORCED IN
ACCORDANCE WITH FEDERAL LAW AND THE LAWS OF THE STATE OF TEXAS. THIS NOTE HAS
BEEN ACCEPTED BY LENDER IN THE STATE OF TEXAS.

CHOICE OF VENUE. If there is a lawsuit, and if the transaction evidenced by
this Note occurred in Lubbock County, Borrower agrees upon Lender's request to
submit to the jurisdiction of the courts of Lubbock County, State of Texas.

RIGHT OF SETOFF. To the extent permitted by applicable laws, Lender reserves a
right of setoff in all Borrower's accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Borrower holds
jointly with someone else and all accounts Borrower may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower authorizes Lender, to the
extent permitted by applicable law, to charge or setoff all sums owing on the
indebtedness against any and all such accounts.

COLLATERAL. Borrower acknowledges this Note is secured by A SECURITY AGREEMENT
FROM WESTECH CAPITAL CORP., A NEW YORK

<PAGE>
                                 PROMISSORY NOTE
LOAN NO: 656387                    (CONTINUED)                            PAGE 2
================================================================================
CORPORATION AND TEJAS SECURITIES GROUP, INC., A TEXAS CORPORATION TO FIRST
UNITED BANK DATED 06/07/00 AND A PLEDGE AND SECURITY AGREEMENT FROM TEJAS
SECURITIES GROUP HOLDING COMPANY TO FIRST UNITED BANK DATED 06/07/00.

PURPOSE OF LOAN. Working Capital.

SUCCESSOR INTEREST. The terms of this Note shall be binding upon Borrower, and
upon Borrower's heirs, personal representatives, successors and assigns, and
shall inure to the benefit of the Lender and its successors and assigns.

NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES.
Please notify us if we report any inaccurate information about your account(s)
to a consumer reporting agency. Your written notice describing the specific
inaccuracy(ies) should be sent to us at the following address: FIRST UNITED
BANK P.O. BOX 16500 Lubbock, TX 79490

GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific
default provisions or rights of Lender shall not preclude Lender's right to
declare payment of this Note on its demand. NOTICE: Under no circumstances (and
notwithstanding any other provisions of this Note) shall the interest charged,
collected, or contracted for on this Note exceed the maximum rate permitted by
law. The term "maximum rate permitted by law" as used in this Note means the
greater of (a) the maximum rate of interest permitted under federal or other law
applicable to the indebtedness evidenced by this Note, or (b) the higher, as of
the date of this Note, of the "Weekly Ceiling" or the "Quarterly Ceiling" as
referred to in Sections 303.002, 303.003 and 303.006 of the Texas Finance Code.
If any part of this Note cannot be enforced, this fact will not affect the rest
of the Note. Borrower does not agree or intend to pay, and Lender does not agree
or intend to contract for, charge, collect, take, reserve or receive
(collectively referred to herein as "charge or collect"), any amount in the
nature of interest or in the nature of a fee for this loan, which would in any
way or event (including demand, prepayment, or acceleration) cause Lender to
charge or collect more for this loan than the maximum Lender would be permitted
to charge or collect by federal law or the law of the State of Texas (as
applicable). Any such excess interest or unauthorized fee shall, instead of
anything stated to the contrary, be applied first to reduce the principal
balance of this loan, and when the principal has been paid in full, be refunded
to Borrower. The right to accelerate maturity of sums due under this Note does
not include the right to accelerate any interest which has not otherwise accrued
on the date of such acceleration, and Lender does not intend to charge or
collect any unearned interest in the event of acceleration. All sums paid or
agreed to be paid to Lender for the use, forbearance or detention of sums due
hereunder shall, to the extent permitted by applicable law, be amortized,
prorated, allocated and spread throughout the full term of the loan evidenced by
this Note until payment in full so that the rate or amount of interest on
account of the loan evidenced hereby does not exceed the applicable usury
ceiling. Lender may delay or forgo enforcing any of its rights or remedies under
this Note without losing them. Borrower and any other person who signs,
guarantees or endorses this Note, to the extent allowed by law, waive
presentment, demand for payment, notice of dishonor, notice of intent to
accelerate the maturity of this Note, and notice of acceleration of the maturity
of this Note. Upon any change in the terms of this Note, and unless otherwise
expressly stated in writing, no party who signs the Note, whether as maker,
guarantor, accommodation maker or endorser, shall be released from liability.
All such parties agree that Lender may renew of extend (repeatedly and for any
length of time) this loan or release any party of guarantor or collateral; or
impair, fail to realize upon or perfect Lender's security interest in the
collateral without the consent of or notice to anyone. All such parties also
agree that Lender may modify this loan without the consent of or notice to
anyone other than the party with whom the modification is made. The obligations
under this Note are joint and several.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE, BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

WESTECH CAPITAL CORP.

By:______________________________________
   John Gorman, Chairman & CEO of WESTECH
   CAPITAL CORP.

================================================================================
                                  [ILLEGIBLE]
<PAGE>

                           NOTICE OF FINAL AGREEMENT

<Table>
-----------------------------------------------------------------------------------------------------------------
<S>              <C>             <C>             <C>          <C>              <C>          <C>          <C>
 PRINCIPAL       LOAN DATE        MATURITY       LOAN NO      CALL / COLL      ACCOUNT      OFFICER      INITIALS
$250,050.00      07-30-2002      10-01-2002       656387        4A / 20                       RCB
-----------------------------------------------------------------------------------------------------------------
</Table>

  References in the shaded area are for Lender's use only and do not limit the
 applicability of this document to any particular loan or item. Any item above
        containing "***" has been omitted due to text length limitations.
--------------------------------------------------------------------------------
<Table>
<S>                                                      <C>
BORROWER: WESTECH CAPITAL CORP. (TIN: 13-3577716)        LENDER: FIRST UNITED BANK
          2700 VIA FORTUNA, SUITE 400                            LUBBOCK SOUTHWEST BRANCH
          AUSTIN, TX 78746                                       6604 FRANKFORD
                                                                 LUBBOCK, TX 79424

=================================================================================================================
</TABLE>

THE WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.

As used in this Notice, the following terms have the following meanings:

  LOAN. The term "Loan" means the following described loan: a non-precomputed
  Fixed Rate (7.000%) Nondisclosable Single Principal Payment (with periodic
  interest payments) Loan to a Corporation for $250,050.00 due on October 1,
  2002.

   LOAN AGREEMENT. The term "Loan Agreement" means one or more promises,
   promissory notes, agreements, undertakings, security agreements, deeds of
   trust or other documents, or commitments, or any combination of these
   actions or documents, relating to the Loan, including without limitation
   the following:

                                 LOAN DOCUMENTS

    Business Loan Agreement
    TX Commercial Guaranty: John Gorman
    TX Commercial Pledge Agreement: 4,808,555 Shares of Tejas Securities Group,
      Inc. Stock; owned by WESTECH CAPITAL CORP.

    IRREVOCABLE STOCK OR BOND POWER: 4,808,555 Shares of Tejas Securities Group,
      Inc. Stock

    Disbursement Request and Authorization

    Promissory Note

    TX Commercial Security Agreement: All accounts, together with the following
    specifically described property; 4,808,555 shares of Tejas Securities Group,
    Inc. Certificate Number 76; owned by WESTECH CAPITAL CORP.

    Collateral Receipt; 4,808,555 Shares of Tejas Securities Group, Inc. Stock

    Notice of Final Agreement

   PARTIES. The term "Parties" means First United Bank and any and all
   [ILLEGIBLE] or individuals who are obligated to repay the loan or have
   pledged property as security for the Loan, including without limitation the
   following:

       Borrower:       WESTECH CAPITAL CORP.
       Grantor(s):     WESTECH CAPITAL CORP.
       Guarantor 1:    John Gorman

THIS NOTICE OF FINAL AGREEMENT IS GIVEN BY FIRST UNITED BANK PURSUANT TO
SECTION 26.02 OF THE TEXAS BUSINESS AND COMMERCE CODE. Each Party who signs
below, other than First United Bank, acknowledges, represents, and warrants to
First United Bank that it has received, read and understood this Notice of
Final Agreement. This notice is dated July 30, 2002.

BORROWER:

WESTECH CAPITAL CORP.

By: /s/ JOHN GORMAN
    --------------------------------------
    John Gorman, Chairman & CEO of WESTECH
    CAPITAL GROUP.

GUARANTOR:

By: /s/ JOHN GORMAN
    --------------------------------------
    John Gorman, individually

LENDER:

FIRST UNITED BANK

X /s/ [ILLEGIBLE]
  ----------------------------------------
  Authorized Signer
<PAGE>

                            [FIRST UNITED BANK LOGO]

                     DISBURSEMENT REQUEST AND AUTHORIZATION

<Table>
-----------------------------------------------------------------------------------------------------------------
<S>              <C>             <C>             <C>          <C>              <C>          <C>          <C>
 PRINCIPAL       LOAN DATE        MATURITY       LOAN NO      CALL / COLL      ACCOUNT      OFFICER      INITIALS
$250,050.00      07-30-2002      10-01-2002       656387        4A / 20                       RCB
-----------------------------------------------------------------------------------------------------------------
</Table>

  References in the shaded area are for Lender's use only and do not limit the
 applicability of this document to any particular loan or item. Any item above
        containing "***" has been omitted due to text length limitations.
--------------------------------------------------------------------------------
<Table>
<S>                                                      <C>
BORROWER: WESTECH CAPITAL CORP. (TIN: 13-3577716)        LENDER: FIRST UNITED BANK
          2700 VIA FORTUNA, SUITE 400                            LUBBOCK SOUTHWEST BRANCH
          AUSTIN, TX 78746                                       6604 FRANKFORD
                                                                 LUBBOCK, TX 79424

=================================================================================================================
</TABLE>

LOAN TYPE. This is a non-precomputed Feed Rate (7.00%) Nondisclosure Single
Principal Payment (with [ILLEGIBLE] interest payments) Loan to a Corporation for
$250,050.00 due on October 1, 2002.

PRIMARY PURPOSE OF LOAN. The primary purpose of this loan is for:

     [ ] Personal, Family or Household Purposes.

     [ ] Personal Investment.

     [ ] Motor Vehicle Purchase for Other Than Personal, Family or Household
         Purposes.

     [X] Business, Agriculture and All Other.

SPECIFIC PURPOSE. The specific purpose of the loan is Working Capital.

DISBURSEMENT INSTRUCTIONS. Borrower understands that no loan proceeds will be
disbursed until all of Lender's conditions for making this loan have been
satisfied. Please disburse the loan proceeds of $250,050.00 as follows:

<Table>
<S>                                                         <C>
Other Disbursements:                                        $250,000.00
  $250,000.00 Wire to Austin

Total Financed Prepaid Finance Charges:                          $50.00
  $50.00 ADMINISTRATIVE FEE
                                                            -----------

Note Principal:                                             $250,050.00
</Table>

FINANCIAL CONDITION: BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND
WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND
THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER'S FINANCIAL
CONDITION AS DISCLOSED IN BORROWER'S MOST RECENT FINANCIAL STATEMENT TO LENDER.
THIS AUTHORIZATION IS DATED JULY 30, 2002.

BORROWER:

WESTECH CAPITAL CORP.

By: /s/ JOHN GORMAN
    ---------------------------------------------
    JOHN GORMAN, Chairman & CEO of WESTECH
    CAPITAL CORP.

--------------------------------------------------------------------------------
                                  [ILLEGIBLE]
<PAGE>
                            COLLATERAL [ILLEGIBLE]
<Table>
-----------------------------------------------------------------------------------------------------------------
<S>              <C>             <C>             <C>          <C>              <C>          <C>          <C>
 PRINCIPAL       LOAN DATE        MATURITY       LOAN NO      CALL / COLL      ACCOUNT      OFFICER      INITIALS
$250,050.00      07-30-2002      10-01-2002       656387        4A / 20                       RCB
-----------------------------------------------------------------------------------------------------------------
</Table>

  References in the shaded area are for Lender's use only and do not limit the
 applicability of this document to any particular loan or item. Any item above
        containing "***" has been omitted due to text length limitations.
--------------------------------------------------------------------------------
<Table>
<S>                                                      <C>
GRANTOR: WESTECH CAPITAL CORP. (TIN: 13-3577716)         LENDER: FIRST UNITED BANK
          2700 VIA FORTUNA, SUITE 400                            LUBBOCK SOUTHWEST BRANCH
          AUSTIN, TX 78746                                       6604 FRANKFORD
                                                                 LUBBOCK, TX 79424

=================================================================================================================
</TABLE>

--------------------------------------------------------------------------------
    DESCRIPTION OF COLLATERAL         CUSTODY CONTROL        DATE RELEASED
                                        SIGNATURES
--------------------------------------------------------------------------------
 4,806,555 Shares of Tejas
 Securities Group, Inc. Stock
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Initial Delivery           Return Receipt          Instructions for Returning
Acknowledgements:          Acknowledgement:        Collateral and Disposition
                                                   of Coupons:
                                                               -----------------
Grantor: [ILLEGIBLE]       Grantor acknowledges
         --------------    the receipt of all      -----------------------------
  Grantors Signature       collateral, including
                           all unmatured coupons,  -----------------------------
FIRST UNITED BANK          if any.
By:                        X                       -----------------------------
   --------------------     ---------------------
   (Authorized Officer)     (Grantor's Signature)  -----------------------------
--------------------------------------------------------------------------------

================================================================================
                                  [ILLEGIBLE]

<PAGE>
                          COMMERCIAL PLEDGE AGREEMENT

<Table>
-----------------------------------------------------------------------------------------------------------------
<S>              <C>             <C>             <C>          <C>              <C>          <C>          <C>
 PRINCIPAL       LOAN DATE        MATURITY       LOAN NO      CALL / COLL      ACCOUNT      OFFICER      INITIALS
$250,050.00      07-30-2002      10-01-2002       656387        4A / 20                       RCB
-----------------------------------------------------------------------------------------------------------------
</Table>

  References in the shaded area are for Lender's use only and do not limit the
 applicability of this document to any particular loan or item. Any item above
        containing "***" has been omitted due to text length limitations.
--------------------------------------------------------------------------------
<Table>
<S>                                                      <C>
GRANTOR: WESTECH CAPITAL CORP. (TIN: 13-3577716)        LENDER: FIRST UNITED BANK
         2700 VIA FORTUNA, SUITE 400                            LUBBOCK SOUTHWEST BRANCH
         AUSTIN, TX 78746                                       6604 FRANKFORD
                                                                LUBBOCK, TX 79424

=================================================================================================================
</TABLE>

THIS COMMERCIAL PLEDGE AGREEMENT dated July 20, 2002, is made and executed
between WESTECH CAPITAL CORP. ("Grantor") and First United Bank ("Lender").

GRANT OF SECURITY INTEREST. For valuable consideration, Grantor grants to
Lender a security interest in the Collateral to secure the indebtedness and
agrees that Lender shall have the rights stated in this Agreement with respect
to the Collateral, in addition to the other rights which Lender may have by law.

COLLATERAL DESCRIPTION. The word "Collateral" as used in this Agreement means
Grantor's present and future rights, title and interest in and to, together
with any and all present and future additions thereto, substitutions therefore,
and replacements thereof, together with any and all present and future
certificates and/or instruments evidencing any Stock and further together with
all Income and Proceeds as described herein:

    4,301,555 Shares of Tejas Securities Group, Inc. Stock

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a
right of setoff in all Grantor's accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Grantor holds
jointly with someone else and all accounts Grantor may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Grantor authorizes Lender, to the
extent permitted by applicable law, to charge or setoff all sums owing on the
indebtedness against any and all such accounts.

REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. Grantor
represents and warrants to Lender that:

     OWNERSHIP. Grantor is the lawful owner of the Collateral free and clear of
     all security interests, liens, encumbrances and claims of others except as
     disclosed to and accepted by Lender in writing prior to execution of this
     Agreement.

     RIGHT TO PLEDGE. Grantor has the full right, power and authority to enter
     into the Agreement and to pledge the Collateral.

     AUTHORITY; BINDING EFFECT. Grantor has the full right, power and authority
     to enter into this Agreement and to grant a security interest in the
     Collateral to Lender. This Agreement is binding upon Grantor as well as
     Grantor's successors and assigns, and is legally enforceable in accordance
     with its terms. The foregoing representations and warranties, and all other
     representations and warranties contained in this Agreement are and shall be
     continuing in nature and shall remain in full force and effect until such
     time as this Agreement is terminated or canceled as provided herein.

     NO FURTHER ASSIGNMENT. Grantor has not, and shall not, sell, assign,
     transfer, encumber or otherwise dispose of any of Grantor's rights in the
     Collateral except as provided in this Agreement.

     NO DEFAULTS. There are no defaults existing under the Collateral, and
     there are no offsets or counterclaims to the same. Grantor will singly and
     promptly perform each of the terms, conditions, covenants and agreements,
     if any, contained in the Collateral which are to be performed by Grantor.

     NO VIOLATION. The execution and delivery of this Agreement will not
     violate any law or agreement governing Grantor or to which Grantor is a
     party, and its certificate or articles of incorporation and bylaws do not
     prohibit any term or condition of this Agreement.

     FINANCING STATEMENTS. Grantor authorizes Lender to use a UCC-1 financing
     statement, or alternatively, a copy of this Agreement to perfect Lender's
     security interest. At Lender's request, Grantor additionally agrees to
     sign all other documents that are necessary to perfect, protect, and
     continue Lender's security interest in the Property. Grantor will pay all
     [ILLEGIBLE] fees, [ILLEGIBLE] transfer fees, and other fees and costs
     involved unless prohibited by law or unless Lender is required by law to
     pay such fees and costs. Grantor irrevocably appoints Lender to execute
     financing statements and documents [ILLEGIBLE] this in Grantor's name and
     to [ILLEGIBLE] all documents necessary to [ILLEGIBLE]. Lender may keep a
     copy of this Agreement as a financing statement. If Grantor changes
     Grantor's name or address, or the name or address of any person granting a
     security interest under this Agreement changes, Grantor will promptly
     notify the Lender of such change.

LENDER'S RIGHTS AND OBLIGATIONS WITH RESPECT TO THE COLLATERAL. Lender may hold
the Collateral until all indebtedness has been paid and [ILLEGIBLE]. Thereafter
Lender may deliver the Collateral to Grantor or to any other owner of the
Collateral. Lender shall have the following rights in addition to all other
rights Lender may have by law:

     MAINTENANCE AND PROTECTION OF COLLATERAL. Lender may, but shall not be
     obligated to, take such steps as it deems necessary or desirable to
     protect, maintain, [ILLEGIBLE], [ILLEGIBLE], or care for the Collateral,
     including paying of any liens or claims against the Collateral. This may
     include such things as hiring other people, such as attorneys, appraisers
     or other experts. Lender may charge Grantor for any cost incurred in so
     doing. While applicable law provides more than one method of protection of
     Lender's security interest, Lender may choose the method(s) to be used. If
     the Collateral consists of stock, bonds or other investment property for
     which no contracts have been issued, Grantor agrees, at Lender's request,
     either to request issuance of an appropriate certificate or to give
     instructions on Lender's forms to the issuer, transfer agent, mutual fund
     company, or Lender, as the case may be, to record [ILLEGIBLE] or records
     Lender's security interest in the Collateral.

     INCOME AND PROCEEDS FROM THE COLLATERAL. Lender may receive all Income and
     Proceeds and add it to the Collateral. Grantor agrees to deliver to Lender
     immediately upon receipt, in the exact form received and without
     commingling with other property, all Income and Proceeds from the
     Collateral which may be received by, paid, or delivered to Grantor or for
     Grantor's account, whether as an addition to, in discharge of, in
     substitution of, or [ILLEGIBLE] any of the Collateral.

     APPLICATION OF CASH. At Lender's option, Lender may apply any cash, whether
     included in the Collateral or received as Income and Proceeds or through
     liquidation, sale, or retirement, of the Collateral, to the satisfaction of
     the Indebtedness or such portion thereof as Lender shall choose, whether or
     not matured.

     TRANSACTIONS WITH OTHERS. Lender may (1) extend time for payment or other
     performance, (2) grant a renewal or change in terms or conditions, or (3)
     compromise, compound or release any obligation, with any one or more
     Obligors, endorsers, or Guarantors of the Indebtedness as Lender deems
     advisable, without obtaining the prior written consent of Grantor, and no
     [ILLEGIBLE] act or failure to act shall effect Lender's rights against
     Grantor of the Collateral.

     ALL COLLATERAL SECURES INDEBTEDNESS. All Collateral shall be security for
     the indebtedness. Whether the Collateral is located at one or more offices
     or branches of Lender. This will be the case whether or not the office or
     branch where Grantor obtained Grantor's loan knows about the Collateral or
     called upon this Collateral as security.

     COLLECTION OF COLLATERAL. Lender at Lender's option may, but need not,
     collect the Income and Proceeds directly from the Obligor. Grantor
     authorizes and directs the Obligors, if Lender ceases to collect the Income
     and Proceeds, to pay and deliver to Lender all Income and Proceeds from the
     Collateral and to accept Lender's receipts for the payments.

     POWER OF ATTORNEY. Grantor irrevocably appoints Lender as Grantor's
     attorney-in-fact, with full power of substitution, (a) to demand, collect,
     receive, receipt for, sue and recover all income and [ILLEGIBLE] and other
     sums of money and other property which may now or hereafter become due,
     owing or payable from the Obligors in accordance with the terms of the
     Collateral; (b) to execute, sign and endorse any and all instruments,
     [ILLEGIBLE], [ILLEGIBLE], [ILLEGIBLE] and warrants issued in payment for
     the Collateral; (c) to settle or compromise any and all claims arising
     under the Collateral, and in the place and stead of Grantor, execute and
     deliver Grantor's release and acquittance for Grantor; (d) to [ILLEGIBLE]
     any claim or claims or to take any action or institute or take part in any
     proceedings, either in Lender's own name or in the name of Grantor, or
     otherwise, which in the discretion of Lender may seem to be necessary or
     advisable; and (e) to execute in Grantor's name and to [ILLEGIBLE] to the
     Obligors on Grantor's behalf, at the time and in the manner specified by
     the Collateral, any necessary instruments or documents.

     PERFECTION OF SECURITY INTEREST. Upon Lender's request, Grantor will
     deliver to Lender any and all of the documents evidencing or constituting
     the Collateral. When applicable law provides more than one method of
     [ILLEGIBLE] of Lender's security interest. Lender may choose the method(s)
     to be used. Upon Lender's request, Grantor will sign and deliver any
     writings necessary to perfect Lender's security interest. If any of the
     Collateral consists of securities for which no [ILLEGIBLE] has been issued,
     Grantor agrees, at Lender's option, either to request issuance of an
     appropriate certificate or to execute appropriate instructions on Lender's
     terms instructing the issuer, transfer agent, mutual fund company, or
     [ILLEGIBLE], as the case may be, to record on the books or records, by
     book-entry or otherwise, Lender's security interest in the Collateral.
     Grantor hereby appoints Lender as Grantor's irrevocable attorney-in-fact
     for the purpose of executing any documents necessary to perfect, amend, or
     to continue the security interest granted in this Agreement or to demand
     termination of filings of other secured parties.
<PAGE>

                          COMMERCIAL PLEDGE AGREEMENT
LOAN NO: 656387                   (CONTINUED)                          PAGE 2

================================================================================

LENDER'S EXPENDITURES. If any action or processing is commenced that would
materially affect Lender's interest in the Collateral or if Granter fails to
comply with any provision of this Agreement or any Related Documents, including
but not limited to Grantor's failure to discharge or pay when due any amounts
Grantor is required to discharge or pay under this Agreement or any Related
Documents. Lender on Grantor's behalf may (but shall not be obligated to) take
any action that Lender deems appropriate, including but not limited to
discharging or paying off taxes, liens, security interests, encumbrances and
other claims, at any time levied or placed on the Collateral and paying all
costs for insuring, maintaining and preserving the Collateral. All such
expenditures paid by Lender for such purposes will then bear interest at the
Note rate from the date paid by Lender to the date of repayment by Grantor. To
the extent permitted by applicable law, all such expenses will become a part of
the indebtedness and, at Lender's option, will (A) be payable on demand; (B) be
added to the balance of the Note and be apportioned among and be payable with
any installment payments to become due during either (1) the form of any
applicable insurance policy; or (2) the remaining term of the Note; or (C) be
treated as a balloon payment which will be due and payable at the Note's
maturity. The Agreement also will secure payment of these amounts. Such rights
shall be in addition to all other rights and remedies to which Lender may be
entitled upon Default.

LIMITATIONS ON OBLIGATIONS OF LENDER. Lender shall use ordinary reasonable care
in the physical preservation and custody of the Collateral in Lender's
possession, but shall have no other obligation to protect the Collateral or its
value. In particular, and without limitation, Lender shall have no
responsibility for (A) any depreciation in value of the Collateral or for the
collection or protection of any income and proceeds from the Collateral, (B)
preservation of rights against parties to the Collateral or against third
persons, (C) ascertaining any maturities, laws, conversions, [ILLEGIBLE],
lenders, or similar matters relating to any of the Collateral, or (D) informing
Grantor about any of the above, whether or not Lender has or is deemed to have
knowledge of such matters. Except as provided above, Lender shall have no
liability for depreciation or deterioration of the Collateral.

DEFAULT. Each of the following shall constitute an Event of Default under this
Agreement:

         PAYMENT DEFAULT. Grantor fails to make any payment when due under the
         indebtedness.

         OTHER DEFAULTS. Grantor fails to comply with or to perform any other
         term, obligation, covenant or condition contained in this Agreement or
         in any of the Related Documents as to comply with or to perform any
         term, obligation, covenant or condition contained in any other
         agreement between Lender and Grantor.

         FALSE STATEMENTS. Any warranty, representation or statement made or
         furnished to Lender by Grantor or on Grantor's behalf under this
         Agreement or the Related Documents is false or misleading in any
         material respect, either now or at the time made or furnished or
         becomes false or misleading at any time thereafter.

         DEFECTIVE COLLATERALIZATION. The Agreement or any of the Related
         Documents ceases to be in full force and effect (including failure of
         any collateral document to create a valid and permitted security
         interest or [ILLEGIBLE]) at any time and for any reason.

         INSOLVENCY. The dissolution or termination of Grantor's existence as a
         going business, the insolvency of Grantor, the appointment of a
         receiver for any part of Grantor's property, any assignment for the
         benefit of creditors, any type of creditor workout, or the commencement
         of any proceeding under any bankruptcy or insolvency laws by or against
         Grantor.

         CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or
         forfeiture proceedings, whether by judicial proceeding, self-help,
         repossession or any other method, by any creditor of Grantor or by any
         governmental agency against any collateral securing the indebtedness.
         This includes a garnishment of any of Grantor's accounts, including
         deposit accounts, with Lender. However, this Event of Default shall not
         apply if there is a good faith dispute by Grantor as to the validity or
         reasonableness of the claim which is the basis of the creditor or
         forfeiture proceeding and if Grantor gives Lender written notice of the
         creditor or forfeiture proceeding and deposits with Lender monies or a
         surety bond for the creditor or forfeiture proceeding, in an amount
         determined by Lender, in its sole discretion, as being an adequate
         reserve or bond for the dispute.

         EVENTS AFFECTING GUARANTOR. Any of the preceding events occurs with
         respect to Grantor of any of the indebtedness or Guarantor dies or
         becomes incompetent or [ILLEGIBLE] or disputes the validity of, or
         liability under, any Guaranty of this indebtedness.

         ADVERSE CHANGE. A material adverse change occurs in Grantor's financial
         condition, or Lender believes the prospect of payment or performance of
         the indebtedness is impaired.

         INSECURITY. Lender in good faith believes that [ILLEGIBLE].

         CURE PROVISIONS. If any default, other than a default in payment or
         failure to satisfy Lender's requirement in the Insufficient Market
         Value of Securities section is curable, it may be cured (and no event
         of default will have occurred) if Grantor, after receiving written
         notice from Lender [ILLEGIBLE] of such default (1) cures the default
         within twenty (20) days, or (2) if the other requires more than twenty
         (20) days, immediately initiates [ILLEGIBLE] which Lender deems in
         Lender's sole discretion to be sufficient to cure the default and
         thereafter continues and completes all reasonable and necessary steps
         sufficient to produce compliance as soon as reasonably practical.

RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this
Agreement, at any time thereafter, Lender may exercise any one or more of the
following rights and remedies:

         ACCELERATE INDEBTEDNESS. Declare all indebtedness immediately due and
         payable, without notice at any kind to Grantor.

         COLLECT THE COLLATERAL. Collect any of the Collateral and, at Lender's
         option and to the extent permitted by applicable law, retain possession
         of the Collateral while suing on the indebtedness.

         SELL THE COLLATERAL. Sell the Collateral, at Lender's discretion, as a
         unit or in parcels, at one or more public or private sales. Unless the
         Collateral is [ILLEGIBLE] or threatens to decline speedily in value or
         is of a type customarily sold on a recognized market, Lender shall give
         or mail to Grantor, and other persons as required by law, notice at
         least ten (10) days in advance of the time and place of any public
         sale, or at the time after which any private sale may be made. However,
         no notice need be provided to any person who, after an Event of Default
         occurs, enters into and authenticates an [ILLEGIBLE] that person's
         right to [ILLEGIBLE]. Grantor agrees that any requirement of reasonable
         notice as to Grantor is satisfied if Lender mails notice by ordinary
         mail addressed to Grantor at the last address Grantor has given Lender
         in writing. If a public sale is held, there shall be sufficient
         compliance with all requirements of notice to the public by a single
         publication in any newspaper of general circulation in the county where
         the Collateral is located, setting forth the time and place of sale and
         a brief description of the property to be sold. Lender may be a
         purchaser at any public sale.

         SELL SECURITIES. Sell any securities included in the Collateral in a
         manner consistent with applicable federal and state securities laws.
         If, because of restrictions under such laws, Lender is unable, or
         believes Lender is unable, to sell the securities in open market
         transaction, Grantor agrees that Lender will have no obligation to
         delay sale until the securities can be registered. Then Lender may make
         a private sale to one or more persons or to a restricted group of
         persons, even though such sale may result in a price that is less
         favorable than might be [ILLEGIBLE] in an open market transaction. Such
         a sale will be considered commercially reasonable. If any securities
         held as Collateral are "restricted securities" as defined in the Rules
         of the Securities and Exchange Commission (such as Regulation D or Rule
         144) or the [ILLEGIBLE] under state "Blue
         Sky" laws, or if Grantor or any other owner of the Collateral is an
         affiliate of the issuer of the securities, Grantor agrees that neither
         Grantor, nor any member of Grantor's family, nor any other person
         signing this Agreement will sell or dispose of any securities of such
         issuer without obtaining Lender's prior written consent.

         RIGHTS AND REMEDIES WITH RESPECT TO INVESTMENT PROPERTY, FINANCIAL
         ASSETS AND RELATED COLLATERAL. In addition to other rights and remedies
         granted under this Agreement and under applicable law, Lender may
         exercise any or all of the following rights and remedies: (1) register
         with any issuer or broker or other securities intermediary any of the
         Collateral consisting of investment property or financial assets
         (collectively herein, "investment property") in Lender's sole name or
         in the name of Lender's broker, agent or nominee; (2) cause any issuer,
         broker or other securities intermediary to deliver to Lender any of the
         Collateral consisting of securities, or investment property capable of
         being delivered; (3) enter into a control agreement of power of
         attorney with any issuer or securities intermediary with respect to any
         Collateral consisting of investment property, on such terms as Lender
         may deem appropriate, in its sole discretion, including without
         limitation, an agreement granting to Lender any of the rights provided
         hereunder without further notice to or consent by Grantor; (4) herewith
         any such control agreement on Grantor's behalf and in Grantor's name,
         and hereby irrevocably appoints Lender as agent and attorney-in-fact,
         coupled with an interest, for the purpose of executing such control
         agreement on Grantor's behalf; (5) exercise any and all rights of
         Lender under any such control agreement or power of attorney; (6)
         exercise any voting, conversion, registration, purchase, option, or
         other rights with respect to any Collateral; (7) collect, with or
         without legal action, and issue receipts concerning any [ILLEGIBLE],
         remittances or [ILLEGIBLE] that are paid or payable with respect to any
         Collateral consisting of investment property. Any control agreement
         entered with respect to any investment property shall contain the
         following provisions, at Lender's discretion. Lender shall be
         authorized to instruct the issuer, broker or other securities
         intermediary to take or refrain from taking such actions with respect
         to the investment property as Lender may instruct, without further
         notice or consent by Grantor. Such section may include without
         limitation the issuance of entitlement orders, account instructions,
         general trading or buy or sell orders, transfer or redemption orders,
         and stop loss orders. Lender shall be [ILLEGIBLE] to instruct the
         issuer, broker or securities intermediary to sell or to liquidate any
         investment property, or to pay the cash surrender or actual account
         termination value with respect to any and all investment property, and
         to deliver all such payments and liquidation proceeds to Lender. Any
         such control agreement shall contain such authorizations as are
         necessary to place Lender in "control" of such investment collateral,
         as contemplated under the provisions of the Uniform Commercial Code,
         and shall fully authorize Lender to issue "entitlement orders"
         concerning the transfer, redemption, liquidation or disposition of
         investment collateral, in conformance with the
<PAGE>

                          COMMERCIAL PLEDGE AGREEMENT
LOAN NO:656387                   (CONTINUED)                              PAGE 3
================================================================================

  provisions of the Uniform Commercial Code.

  FORECLOSURE. Maintain a judicial suit for foreclosure and sale of the
  Collateral.

  TRANSFER TITLE. Effect transfer of title upon sale of all or part of the
  Collateral. For this purpose, Grantor irrevocably appoints Lender as Grantor's
  attorney-in-fact to execute endorsements, assignments and instruments in the
  name of Grantor and each of them (if more than one) as shall be necessary or
  reasonable.

  OTHER RIGHTS AND REMEDIES. Have and exercise any or all of the rights and
  remedies of a secured creditor under the provisions of the Uniform Commercial
  Code, at law, in equity, or otherwise.

  APPLICATION OF PROCEEDS. Apply any cash which is part of the Collateral, or
  which is received from the collection of sale of the Collateral, to
  reimbursement of any expenses, including any costs for registration of
  securities, commissions incurred in connection with a sale, Lender's
  reasonable attorneys' fees and court costs, whether or not there is a lawsuit
  and including any fees on appeal, incurred by Lender in connection with the
  collection and sale of such Collateral and to the payment of the indebtedness
  of Grantor to Lender, with any excess funds to be paid to Grantor as the
  interests of Grantor may appear. Grantor agrees, to the extent permitted by
  law, to pay any deficiency after application of the proceeds of the Collateral
  to the indebtedness.

  ELECTION OF REMEDIES. Except as may be prohibited by applicable law, all of
  Lender's rights and remedies, whether evidenced by this Agreement, the Related
  Documents, or by any other writing, shall be cumulative and may be exercised
  singularly or concurrently. Election by Lender to pursue any remedy shall not
  execute pursuant of any minor remedy, and as election to make
  expenditures as to take action to perform an obligation of Grantor
  under this Agreement, after Grantor's failure to perform, shall not affect
  Lender's right to declare a default and exercise its remedies.

MISCELLANEOUS PROVISIONS. The foregoing miscellaneous provisions are a part of
this Agreement.

  AMENDMENTS. This Agreement, together with any Related Documents, constitutes
  the entire understanding and agreement of the parties as to the matters set
  forth in this Agreement. No alteration of or amendment to this Agreement shall
  be effective unless given in writing and signed by the party or parties sought
  to be charged or bound by the alteration or amendment.

  ATTORNEYS' FEES; EXPENSES. Grantor agrees to pay upon demand all of Lender's
  costs and expenses, including Lender's reasonable attorneys' fees and Lender's
  legal expenses, incurred in connection with the enforcement of this Agreement.
  Lender may hire or pay someone else to help enforce this Agreement,and Grantor
  shall pay the costs and expenses of such enforcement. Costs and expenses
  include Lender's reasonable attorneys' fees and legal expenses whether or not
  there is a lawsuit, including Lender's reasonable attorneys' fees and legal
  expenses for bankruptcy proceedings (including efforts to modify or waive any
  automatic stay or injunction), appeals, and any anticipated post-judgment
  collection services. Grantor also shall pay all court costs and such
  additional fees as may be directed by the court.

  CAPTION HEADINGS. Caption headings in this Agreement are for convenience
  purposes only and are not to be used to interpret or define the provisions of
  this Agreement.

  GOVERNING LAW. This Agreement will be governed by, construed and enforced in
  accordance with federal law and the laws of the State of Texas. This Agreement
  has been accepted by Lender in the State of Texas.

  CHOICE OF VENUE. If there is a lawsuit, and if the transaction evidenced by
  this Agreement occurred in Lubbock County, Grantor agrees upon Lender's
  request to submit to the jurisdiction of the courts of Lubbock County, State
  of Texas.

  NO WAIVER BY LENDER. Lender shall not be deemed to have waived any rights
  under this Agreement unless such waiver is given in writing and signed by
  Lender. No delay or omission on the part of Lender in exercising any right
  shall operate as a waiver of such right or any other right. A waiver by
  Lender of a provision of this Agreement shall not prejudice or constitute a
  waiver of Lender's right otherwise to enforce such compliance with that
  provision or any other provision of this Agreement. No prior waiver by Lender,
  nor any course of dealing between Lender and Grantor, shall constitute a
  waiver of any of Lender's rights or of any of Grantor's obligations as to any
  future transactions. Whenever the consent to Lender is required under this
  Agreement, the granting of such consent by Lender in any instance shall not
  constitute continuing consent to subsequent instances where such consent is
  required and in all cases such consent may be granted to withheld in the sole
  discretion of Lender.

  NOTICES. Any notice required to be given under this Agreement shall be given
  in writing, and shall be effective when actually delivered, when actually
  received by telefacsimile (unless otherwise required by law), when deposited
  with a nationally recognized overnight courier, or, if mailed, when deposited
  in the United States mail, as first class, certified or registered mail
  postage prepaid, directed to the addresses shown near the beginning of this
  Agreement. Any party may change its address for notices under this Agreement
  by giving formal written notice to the other parties, specifying that the
  purpose of the notice is to change the party's address. For notice purposes,
  Grantor agrees to keep Lender informed at all times of Grantor's current
  address. Unless otherwise provided or required by law, if there is more than
  one Grantor, any notice given by Lender to any Grantor is deemed to be notice
  given to all Grantors.

  SEVERABILITY. If a court of competent jurisdiction finds any provision of this
  Agreement to be illegal, invalid, or unenforceable as to any circumstance,
  that finding shall not make the offending provision illegal, invalid, or
  unenforceable as to any other circumstance. If feasible, the offending
  provision shall be considered modified so that it becomes legal, valid and
  enforceable. If the offending provision cannot be so modified, it shall be
  considered deleted from this Agreement. Unless otherwise required by law, the
  illegality, invalidity, or unenforceability of any provision of this Agreement
  shall not affect the legality, validity or enforceability of any other
  provision of this Agreement.

  SUCCESSORS AND ASSIGNS. Subject to any limitations stated in this Agreement on
  transfer of Grantor's interest, this Agreement shall be binding upon and
  insure to the benefit of the parties, their successors and assigns. If
  ownership of the Collateral becomes vested in a person other than Grantor,
  Lender, without notice to Grantor, may deal with Grantor's successors with
  reference to this Agreement and the indebtedness by way of forbearance of
  extension without releasing Grantor from the obligations of this Agreement or
  liability under the Indebtedness.

  TIME IS OF THE ESSENCE. Time is of the essence in the performance of this
  Agreement.

DEFINITIONS. The following capitalized words and terms shall have the following
meanings when used in this Agreement. Unless specifically stated to the
company, all references to dollar amounts shall mean amounts in lawful money of
the United States of America. Words and terms used in the singular shall
include the plural, and the plural shall include the singular, as the context
may require. Words and terms not otherwise defined in this Agreement shall have
the meanings attributed to such terms in the Uniform Commercial Code.

  AGREEMENT. The word "Agreement" means the Commercial Pledge Agreement, as this
  Commercial Pledge Agreement may be amended or modified from time to time,
  together with all exhibits and schedules attached to this Commercial Pledge
  Agreement from time to time.

  BORROWER. The word "Borrower" means WESTECH CAPITAL CORP., and all other
  persons and entities signing the Note in whatever capacity.

  COLLATERAL. The word "Collateral" means all of Grantor's right, title and
  interest in and to all the Collateral as described in the Collateral
  Description section of this Agreement.

  DEFAULT. The word "Default" means the Default set forth in this Agreement in
  the section titled "Default".

  EVENT OF DEFAULT. The words "Event of Default" mean any of the events of
  default set forth in this Agreement in the default section of this Agreement.

  GRANTOR. The word "Grantor" means WESTECH CAPITAL CORP.

  GUARANTOR. The word "Guarantor" means any guarantor, surety or accommodated
  party of any or all of the indebtedness.

  GUARANTY. The word "Guaranty" means the guaranty from Guarantor to Lender,
  including without limitation a guaranty of all or a part of the Note.

  INCOME AND PROCEEDS. The words "Income and Proceeds" mean all present and
  future income, proceeds, earnings, increases, and substitutions from or for
  the Collateral of every kind and nature, including without limitation all
  payments, interest, profits, distributions, benefits, rights, options,
  warrants, dividends, stock dividends, stock options, stock rights, regulatory
  dividends, subscriptions, monies, claims for money due and to become due,
  proceeds of any insurance on the Collateral, shares of stock of different par
  value or no par value issued in substitution or exchange for shares included
  in the Collateral, and all other property Grantor is entitled to receive on
  account of such Collateral, including accounts, documents, instruments,
  chattel paper, and general intangibles.

  INDEBTEDNESS. The word "indebtedness" means the indebtedness evidenced by the
  Note or Related Documents, including all principal and interest together with
  all other indebtedness and costs and expenses for which Grantor is responsible
  under this Agreement or under any of the Related Documents.

  LENDER. The word "Lender" means First Union Bank, its successors and assigns.

<PAGE>
                          COMMERCIAL PLEDGE AGREEMENT
LOAN NO. 656387                   (CONTINUED)                             PAGE 4
================================================================================

     NOTE. The word "Note" means the Note executed by WESTECH CAPITAL CORP. in
     the principal amount of $250,000.00 dated July 30, 2002, together with all
     renewals of, extensions of, modifications of, refinancings of,
     consolidations of, and substitutions for the note or credit agreement.

     OBLIGOR. The word "Obligor" means without limitation any and all persons
     obligated to pay money or to perform some other act under the Collateral.

     PROPERTY. The word "Property" means all of Grantor's right, title and
     interest in and to all the Property as described in the "Collateral
     Description" section of this Agreement.

     RELATED DOCUMENTS. The words "Related Documents" means all promissory
     notes, credit agreements, loan agreements, [ILLEGIBLE] agreements,
     guarantors, security agreements, mortgages, deeds of trust, security deeds,
     collateral mortgages, and all other instruments, agreements and documents,
     whether now or hereafter existing, executed in connection with the
     indebtedness.

GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL PLEDGE
AGREEMENT AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED JULY 30, 2002.

GRANTOR:

WESTECH CAPITAL CORP.

By: /s/ JOHN GORMAN
    --------------------------------------
    JOHN GORMAN, Chairman & CEO of WESTECH
    CAPITAL CORP.

===============================================================================
                                  [ILLEGIBLE]
<PAGE>
                            [FIRST UNITED BANK LOGO]
                         COMMERCIAL SECURITY AGREEMENT

<Table>
-----------------------------------------------------------------------------------------------------------------
<S>              <C>             <C>             <C>          <C>              <C>          <C>          <C>
 PRINCIPAL       LOAN DATE        MATURITY       LOAN NO      CALL / COLL      ACCOUNT      OFFICER      INITIALS
$250,050.00      07-30-2002      10-01-2002       656387        4A / 20                       RCB
-----------------------------------------------------------------------------------------------------------------
</Table>

  References in the shaded area are for Lender's use only and do not limit the
 applicability of this document to any particular loan or item. Any item above
        containing "***" has been omitted due to text length limitations.
--------------------------------------------------------------------------------
<Table>
<S>                                                     <C>
GRANTOR: WESTECH CAPITAL CORP. (TIN: 13-3577716)        LENDER: FIRST UNITED BANK
         2700 VIA FORTUNA, SUITE 400                            LUBBOCK SOUTHWEST BRANCH
         AUSTIN, TX 78746                                       6604 FRANKFORD
                                                                LUBBOCK, TX 79424

=================================================================================================================
</TABLE>

THIS COMMERCIAL SECURITY AGREEMENT dated July 30, 2002 is made and executed
between WESTECH CAPITAL CORP. ("GRANTOR") and FIRST UNITED BANK ("LENDER").

GRANT OF SECURITY INTEREST. For valuable consideration, Grantor grants to
Lender a security interest in the Collateral to secure the indebtedness and
agrees that Lender [ILLEGIBLE] have the rights stated in this Agreement with
respect to the Collateral. In addition to [ILLEGIBLE] rights which Lender may
have by law.

COLLATERAL DESCRIPTION. The word "Collateral" as used in this agreement means
the following described property, whether now owned or hereafter acquired,
whether now existing or thereafter arising, and wherever located, in which
Grantor is giving to Lender a security interest for the payment of the
indebtedness and performance of all other obligations under the Note and this
Agreement:

     All accounts, together with the following specifically described property:
     4,808,555 shares of Tejas Securities Group, Inc. Certificate Number
     [ILLEGIBLE]

In addition, the word "Collateral" also includes all the following, whether now
owned hereafter acquired, whether now existing or hereafter existing and
whereever located:

     (A) All accessions, attachments, accessories, replacements of and additions
     to any of the collateral described herein, whether added now or later.

     (B) All products and [ILLEGIBLE] of any of the property described in this
     Collateral section.

     (C) All accounts, [ILLEGIBLE], instruments, [ILLEGIBLE], payments and all
     other rights [ILLEGIBLE] any of the property described in this Collateral
     section.

     (D) All proceeds (including insurance proceeds) from the safe, destruction,
     loss or other disposition of any of the property described in this
     Collateral section, and sums due from a third party who has damaged or
     destroyed the Collateral or from the [ILLEGIBLE] insurer, whether due to
     judgement, settlement or other process.

     (E) All records and data relating to any of the property described in this
     Collateral section, whether in the form of a writing, photograph,
     microfilm, microfishe, or electronic media, together with all of Grantor's
     right, title, and interest in and in all computer software required to
     [ILLEGIBLE] maintain, and process any such records or data on electronic
     media.

Despite any other provision of this Agreement, Lender is not granted, and will
not have, a nonpurchase money security interest in household goods, to the
[ILLEGIBLE] such a security interest would be prohibited by applicable law. In
addition, [ILLEGIBLE] because of the type of any Property, Lender is required to
give a notice of the right to cancel under Truth in Lending for the
indebtedness, then Lender will not have a security interest in such Collateral
unless and until [ILLEGIBLE] a notice is given.

RIGHT OF SETOFF. To the extent permitted by applicable law. [ILLEGIBLE] in all
Grantor's accounts [ILLEGIBLE] Lender (whether checking, savings, or some other
account). This includes all accounts Grantor holds jointly with someone else and
all accounts Grantor may open in the [illegible]. However, this does not include
any IRA or Koegh accounts, or any trust accounts for which setoff would be
protected by law. Grantor authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on the indebtedness against
any and all such accounts.

GRANTOR'S REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. With
respect to the Collateral, Grantor represents and promises to Lender that:

     [ILLEGIBLE] of Security Interest. Grantor agrees to execute financing
     statements and to [ILLEGIBLE] whatever [ILLEGIBLE] actions are requested by
     Lender to perfect and continue Lender's security interest in the
     Collateral. Upon request of Lender, Grantor will deliver any and all of the
     documents evidencing or [ILLEGIBLE] Collateral, and Grantor will note
     Lender's interest upon any and all [ILLEGIBLE] paper if not delivered to
     Lender for possession by Lender.

     NOTICES TO LENDER. Grantor will promptly notify Lender in writing at
     Lender's address shown above (or such other addresses as Lender may
     designate from time to time) prior to any (1) change in Grantor's
     name; (2) change in Grantor's assumed [ILLEGIBLE] name(s); (3) change in
     the management of the Corporation Grantor; (4) change in the authorized
     signer(s); (5) change in Grantor's principal office address; (6) change in
     Grantor's state of organization; (7) conversion of Grantor to a new or
     different type of business [ILLEGIBLE]; or (8) change in any other aspect
     of Grantor that directly or indirectly relates to any agreements between
     Grantor and Lender. No change in Grantor's [ILLEGIBLE] of organization will
     take effect until after Lender has received notice.

     NO VIOLATION. The execution and delivery of this Agreement will not violate
     any law or agreement governing Grantor as to which Grantor is a party, and
     its certificate or articles of incorporation and bylaws do not prohibit any
     form or condition of this Agreement.

     ENFORCEABILITY OF COLLATERAL. To the extent the Collateral consists of
     accounts, chattel paper, or general intangibles, as defined by the
     Uniform Commercial Code, the Collateral is enforceable in accordance with
     its terms, is genuine and fully compliant with all applicable laws and
     regulations concerning form, content and manner of preparation and
     execution, and all persons appearing to be obligated on the Collateral have
     authority and capacity to contract and are in fact obligated as they appear
     to be on the Collateral. At the time any Account becomes subject to a
     security interest in favor of Lender, the Account shall be a good and valid
     account representing an undisputed bona fide indebtedness [ILLEGIBLE] by
     the account debtor, for [ILLEGIBLE] subject to [ILLEGIBLE] instructions or
     previously shipped or delivered pursuant to contract of sale, or for
     services previously performed by Grantor with or for the account debtor. So
     long as the Agreement remains in effect, Grantor shall not, without
     Lender's prior written consent, compromise, settle, adjust, or extend
     payment under or with regard to any such Accounts. There shall be no
     [ILLEGIBLE] or [ILLEGIBLE] against any or the Collateral except those
     disclosed in Lender writing.

     LOCATION OF THE COLLATERAL. Except in the ordinary course of Grantor's
     business, Grantor agrees to keep the Collateral (or to the extent the
     Collateral consists of intangible property such as [ILLEGIBLE] or general
     [ILLEGIBLE], the records concerning the Collateral) at Grantor's address
     shown above or at such other locations as are acceptable to Lender. Upon
     Lender's request, Grantor will deliver to Lender in form satisfactory to
     Lender's schedule of real properties and Collateral locations relating to
     Collateral operations, including without limitation the following: (1) all
     real property Grantor owns or is purchasing; (2) all real property Grantor
     is [ILLEGIBLE] or leasing; (3) all storage facilities Grantor owns, rents,
     leases, or uses; and (4) all other properties where Collateral may be
     located.

     REMOVAL OF THE COLLATERAL. Except in the ordinary course of Grantor's
     business, Grantor shall not remove the Collateral from its existing
     location without Lender's prior written consent. Grantor shall, whenever
     requested, advise Lender of the exact location of the Collateral.

     TRANSACTIONS INVOLVING COLLATERAL. Except for inventory sold or accounts
     collected in the ordinary course of Grantor's business, or as otherwise
     provided for in this Agreement, Grantor shall not sell, offer to sell, or
     otherwise [ILLEGIBLE] of the Collateral. Grantor shall not pledge,
     mortgage, encumber or otherwise permit the Collateral to be subject to any
     lien, security interest, encumbrance, or charge, other than the security
     interest provided for in this Agreement, without the prior written consent
     of Lender. This includes security [ILLEGIBLE] even if [ILLEGIBLE] in right
     to the security interests granted under this Agreement. Unless waived by
     Lender, all proceeds from any deposition of the Collateral (for whatever
     reason) shall be [ILLEGIBLE] for Lender and shall not be commingled with
     any other funds; provided however, this requirement shall not constitute
     [ILLEGIBLE] by Lender to any sale or other disposition. Upon receipt,
     Grantor shall immediately [ILLEGIBLE] any such process to Leder.

     TITLE. Grantor represents and warrants to Lender [ILLEGIBLE] Grantor holds
     good and [ILLEGIBLE] to the Collateral, free and clear of all [ILLEGIBLE]
     encumbrances except for the lien of this Agreement. No financing statement
     covering any of the Collateral is on file in any public office other than
     those which reflect the security interest created by this Agreement or to
     which Lender has specifically consented. Grantor shall [ILLEGIBLE] Lender's
<PAGE>

                         COMMERCIAL SECURITY AGREEMENT
LOAN NO: 656387                    (CONTINUED)                            PAGE 2
================================================================================

   rights in the Collateral against the claims and demands of all other persons.

   REPAIRS AND MAINTENANCE. Grantor agrees to keep and maintain, and to cause
   others to keep and maintain, the Collateral in good order, repair and
   condition at all times while this Agreement remains in effect. Grantor
   further agrees to pay when [illegible] for work done on, or services
   rendered or material furnished in connection with the Collateral so that no
   [illegible] or encumbrance may ever attach to or be [illegible] against the
   Collateral.

   Inspection of Collateral. Lender and Lender's designated representatives and
   agents shall have the right of an reasonable place to examine and inspect the
   Collateral whereever located.

   TAXES, ASSESSMENTS AND LIENS. Grantor will pay when due all taxes,
   assessments and liens upon the Collateral, its use or operation, upon this
   Agreement. Upon any promissory note or notes evidencing the indebtedness, or
   upon any of the other Related Documents. Grantor may withhold any such
   payment or may elect to contest any lien if Grantor is in good faith
   conducting an appropriate proceeding to contest the obligation to pay and as
   long as Lender's interest in the Collateral is not jeopardized in Lender's
   [illegible]. In any contest, Grantor shall defend itself and [illegible] and
   shall [illegible] any final adverse judgement before enforcement against the
   Collateral. Grantor shall name Lender as an additional obliger under any
   surety bond furnished in the contest proceedings. Grantor further agrees to
   furnish Lender with evidence that such taxes, assessments, and governmental
   and other charges have been paid in full and in a timely manner. Grantor may
   withhold any such payment or may [illegible] to contest any lien if Grantor
   is in good faith conducting an appropriate proceeding to contest the
   obligation to pay and so long as Lender's interest in the Collateral is not
   jeopardized.

   Compliance with Governmental Requirements. Grantor shall comply promptly with
   all laws, ordinances, rules and regulations of all governmental authorities,
   now or hereafter in effect, applicable to the ownership, production,
   disposition, or use of the Collateral. Including all laws or regulations
   relating to the undue erosion of highly-credible land or relating to the
   [illegible] of [illegible] of [illegible] product or commodity. Grantor may
   contest in good faith any such law, ordinance or regulation and withhold
   compliance during any proceeding, including appropriate appeals, so long as
   Lender's interest in the Collateral, in Lender's opinion, is not jeopardized.

   Hazardous Substances. Grantor represents and warrants that the Collateral
   never has been, and never will be so long as this Agreement remains a lien on
   the Collateral, used in violation of any Environmental Laws or for the
   generation, manufacture, storage, transportation, treatment, disposal,
   release or threatened release of any Hazardous Substances. The
   representations and warranties contained herein are based on Grantor's due
   diligence in investigating the Collateral for Hazardous Substances. Grantor
   hereby (1) releases and waives any future claims against Lender for
   [illegible] or [illegible] in the event Grantor becomes [illegible] for
   cleanup or other costs under any Environmental Laws, and (2) agrees to
   indemnify and hold harmless Lender against any and all claims and losses
   resulting from a breach of this provision of this Agreement. This obligation
   to indemnify shall survive the payment of the indebtedness and the
   satisfaction of this Agreement.

   Maintenance of Casualty Insurance. Grantor shall procure and maintain
   [illegible] insurance, including without limitation fire, theft and
   liability coverage together with such other insurance as Lender may require
   with respect to the Collateral, in form, amounts, coverage and basis
   reasonably acceptable to Lender. Grantor, upon request of Lender, will
   deliver to Lender from time to time the policies or [illegible] or insurance
   in form satisfactory to Lender. Including stipulations that coverage will not
   be cancelled or diminished without at least ten (10) days prior written
   notice to Lender and not including any disclaimer of the Insurer's ability
   for failure to give such a notice. Each insurance policy also shall include
   an endorsement providing that coverage in favor of Lender will not be
   impaired in any way by any act, omission or default of Grantor or any other
   person. In connection with all policies covering assets in which Lender holds
   or is offered a security interest, Grantor will provide Lender with such
   [illegible] payable or other endorsements as Lender may require. If Grantor
   at any time fails to obtain or maintain any insurance as required under this
   Agreement, Lender may (but shall not be obligated to) obtain such insurance
   as Lender deems appropriate, including if Lender so chooses "single interest
   insurance," which will cover only Lender's interest in [illegible]
   Collateral.

   Application of Insurance Proceeds. Grantor shall promptly notify Lender of
   any loss or damage to the Collateral. Lender may make proof of loss if
   Grantor fails to do so within fifteen (15) days of the casualty. All proceeds
   of any insurance on the Collateral, including accrued proceeds thereon, shall
   be paid by Lender as part of the Collateral. If Lender contests [illegible]
   replacement of the damaged or destroyed Collateral, Lender shall, upon
   satisfactory proof of expenditure, pay or reimburse Grantor from the proceeds
   for the reasonable cost of repair or restoration. If Lender does not consent
   to repair or replacement of the Collateral, Lender shall retain a sufficient
   amount of the proceeds to pay all of the indebtedness, and [illegible] pay
   the balance to Grantor. Any proceeds have not been disbursed within six (6)
   months after their [illegible] and which Grantor has not committed to the
   repair or restoration of the Collateral shall be used to prepay the
   indebtedness.

   INSURANCE RESERVES. Lender may require Grantor to maintain with Lender
   reserves for payment of insurance premiums, which reserves shall be
   [illegible] by [illegible] Grantor of a sum estimated by Lender to be
   sufficient to produce, at least fifteen (15) days [illegible] due date,
   amounts at least equal to the insurance premiums to be paid. If fifteen (15)
   days before payment is due, the reserve funds are insufficient, Grantor shall
   upon demand pay any deficiency to Lender. The reserve funds shall be
   [illegible] by Lender as a general [illegible] and shall constitute a
   non-interest-bearing account which Lender may satisfy by payment of the
   insurance premiums required to be paid by Grantor as they become due. Lender
   [illegible] shall not hold [illegible] in [illegible] for Grantor, and Lender
   is [illegible] the [illegible] of Grantor for payment of the insurance
   premiums required to be paid by Grantor. The responsibility for the payment
   of premiums shall remain Grantor's sole responsibility.

   INSURANCE REPORTS. Grantor, upon request of Lender, shall furnish to Lender
   reports on each existing policy of insurance showing such information as
   Lender may reasonably request including the following: (1) the name of the
   insurance; (2) the [illegible] insured; (3) the [illegible] of the policy;
   (4) the properly insured; (5) the then current value on the basis of which
   insurance has been obtained  and the manner of determining that value; and
   (6) the expiration date of the policy. In addition, Grantor shall upon
   request by Lender (however not more often than annually) have an independent
   [illegible] satisfactory to Lender [illegible], as applicable, the cash value
   of replacement cost of the Collateral.

   FINANCING STATEMENTS. Grantor authorizes Lender to file a UCC-1 financing
   statement, or alternatively, a copy of this Agreement to perfect Lender's
   security interest. At Lender's request, Grantor additionally agrees to sign
   as other documents that are necessary to perfect, protect, and [illegible]
   Lender's security interest in the Property. Grantor will pay all [illegible]
   fees, title transfer fees, and other fees and costs involved unless
   prohibited by law or unless Lender is required by law to pay such fees and
   costs. Grantor irrevocably appoints Lender to execute financing [illegible]
   and documents of title in Grantor's name and to execute all documents
   necessary to transfer like of there is a default. Lender may [illegible] a
   copy of this Agreement as a financing statement. If Grantor changes Grantor's
   name or address, or the name of the address of any person granting a security
   interest under this Agreement changes, Grantor will promptly notify the
   Lender of such changes.

GRANTOR'S RIGHT TO POSSESSION AND TO COLLECT ACCOUNTS. Until default and except
as otherwise provided below with respect to accounts, Grantor may have
possession of the tangible personal property and beneficial use of all the
Collateral and may use it in any lawful manner not inconsistent with this
Agreement or the [illegible] Documents, provided that Grantor's right to
possession and [illegible] use shall not apply to any Collateral where
possession of the Collateral by Lender is required by law to perfect Lender's
security interest in such Collateral. Until otherwise notified by Lender,
Grantor may collect any of the Collateral consisting of accounts. At any time
and even [illegible] Event of Default [illegible] may exercise its rights to
collect the accounts and to notify account debtors to make payments directly to
Lender for application to the indebtedness. If Lender at any time has possession
of any Collateral, whether before or after an Event of Default, Lender shall be
deemed to have exercised reasonable case in the [illegible] and preservation of
the Collateral if Lender takes such action for that purpose as Grantor shall
[illegible] sole discretion, shall deem appropriate under the circumstances,
but failure to honor any request by Grantor shall not of itself be deemed to be
a failure to [illegible]. Lender shall not be required to take any [illegible]
necessary to preserve any rights in the Collateral against prior [illegible],
nor to protect, preserve or maintain any security interest given to secure the
indebtedness.

LENDER'S EXPENDITURES. If any action or proceeding is commenced that would
materially affect Lender's interest in the Collateral or if Grantor fails to
comply with any provisions of this Agreement or any Related Documents,
including but not limited to Grantor's failure to discharge or pay when due any
amounts Grantor is required to discharge or pay under this Agreement or any
Related Documents, Lender on Grantor's behalf may (but shall not be obligated
to) take any action [illegible] appropriate, including but not limited to
discharging or paying all taxes, [illegible], security interests, [illegible]
and other claims, at any time [illegible] or placed on the Collateral and
paying all costs for insuring, maintaining and preserving the Collateral. All
such expenditures paid by Lender for such purposes will then bear interest at
the Note rate from the date paid by Lender to the date of repayment by Grantor.
To the extent permitted by applicable law, all such expenses will become a part
of [illegible] at Lender's option will (A) be payable on demand; (B) be added
to the balance of the Note and be apportioned among and be payable with any
installment payments to become due during either (1) the term of any applicable
insurance policy; or (2) the remaining term of the Note; or (C) be treated as a
balloon payment which will be due and payable at the Note's maturity. The
agreement also will secure payment of those amounts. Such right shall be in
addition to [illegible] rights and remedies to which Lender may be [illegible]
upon Default.

DEFAULT. Each of the following shall constitute an Event of Default under this
Agreement.

   PAYMENT DEFICIT. Grantor fails to make any payment when due under the
   indebtedness.

   OTHER DEFAULTS. Grantor fails to comply with or to perform any other term,
   obligation, covenant or condition contained in this Agreement or in any of
   the Related Documents or to comply with or to perform any term, obligation,
   covenant, or condition [illegible] in any other agreement between Lender and
   Grantor.

   FALSE STATEMENTS. Any warranty, representation or statement made or furnished
   to Lender by Grantor or on Grantor's behalf under this Agreement or the
   Related Documents is false or misleading in any material respect, either now
   or at any time made or furnished or becomes false or misleading at any time
   thereafter.
<PAGE>
                         COMMERCIAL SECURITY AGREEMENT
LOAN NO: 656387                   (CONTINUED)                             PAGE 3
--------------------------------------------------------------------------------

     COLLECTIVE COLLATERALIZATION. This Agreement or any of the Related
     Documents ceases to be in full force and effect (including failure of any
     collateral document to create a valid and [ILLEGIBLE] security interest or
     lien) at any time and for any reason.

     INSOLVENCY. The [ILLEGIBLE]of Grantor's [ILLEGIBLE] as a going business,
     the insolvency of Grantor, the appointment of a [ILLEGIBLE] for any part of
     Grantor's property, any assignment for the benefit of creditors, any type
     of creditor workout, or the commencement of any proceeding under any
     bankruptcy or insolvency laws by or against Grantor.

     CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or
     forfeiture proceedings, whether by judicial proceeding, self-help,
     repossession or any other method, by any creditor of Grantor or by any
     governmental agency against any collateral securing the indebtedness. This
     includes a garnishment of any of Grantor's accounts, including deposit
     accounts, with Lender. However, this [ILLEGIBLE] shall not apply if there
     is a good faith dispute by Grantor as to the validity of reasonableness of
     the claim which is the basis of the creditor or forfeiture proceeding and
     if Grantor gives Lender written notice of the creditor or forfeiture
     proceeding and deposits with Lender monies or a surety bond for the
     creditor or forfeiture proceeding an amount determined by Lender, in its
     sole discretion, as being an adequate reserve or bond for the dispute.

     EVENTS AFFECTING GUARANTOR. any of the preceding events occurs with respect
     to Guarantor or any of the indebtedness or Guarantor dies or becomes
     incompetent or revokes or disputes the validity of, or liability under, any
     Guaranty of the indebtedness.

     ADVERSE CHANGE. A material adverse change occurs in Grantor's financial
     [ILLEGIBLE], or Lender believes the prospect of payment or performance of
     the indebtedness is [ILLEGIBLE].

     INSECURITY. Lender in good faith believes itself insecure.

     CURE PROVISIONS. If any default, other than a default in payment is
     curable, it may be cured (and no event of default will have occurred) if
     Grantor, after receiving written notice from Lender demanding cure of such
     default: (1) cures the default within twenty (20) days; or (2) if the cure
     requires more than twenty (20) days, immediately initiates steps which
     Lender deems in Lender's sole discretion to be sufficient to cure the
     default and thereafter continues and completes all reasonable and necessary
     steps sufficient to produce compliance as soon as reasonably practical.

RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this
Agreement, at any time thereafter, Lender shall have as the rights of a
[ILLEGIBLE] party under the Texas Uniform Commercial Code. In addition and
without limitation, Lender may exercise any one or more of the following rights
and remedies:

     ACCELERATE INDEBTEDNESS. Lender may declare the entire indebtedness
     immediately due and payable without notice of any kind to Grantor.

     ASSEMBLE COLLATERAL. Lender may require Grantor to deliver to Lender all or
     any portion of the Collateral and any and all certificates of title and
     other documents relating to the Collateral. Lender may require Grantor to
     assemble the Collateral and make it available to Lender at a place to be
     designated by Lender. Lender also shall have full power to enter, provided
     Lender does so without breach of the peace or a trespass, upon the property
     of Grantor to take possession of and remove the Collateral. If the
     Collateral contains [ILLEGIBLE] goods not governed by this Agreement at the
     time of repossession, Grantor agrees Lender may have such other goods,
     provided that [ILLEGIBLE] Grantor after repossession.

     SELL THE COLLATERAL. Lender shall have full power to sell, lease, transfer,
     or otherwise deal with the Collateral or proceeds thereof in Lender's own
     name or that of Grantor. Lender may sell the Collateral at public auction
     or private sale. Unless the Collateral threatens to decrease [ILLEGIBLE] in
     value or is of a type customarily sold on a recognized market, Lender shall
     give Grantor, and other persons as required by law, reasonable notice of
     the time and place of any public sale, or the time after which any public
     sale or any other disposition of the Collateral is to be made. However, no
     notice need be provided to any person who, after Event of Default occurs,
     enters into and authenticates an agreement waiving that person's right in
     notification of sale. The requirements of reasonable notice shall be made
     if such notice is given at least ten (10) days before the time of the sale
     or disposition. All expenses relating to the disposition of the Collateral,
     including without limitation, the expenses of [ILLEGIBLE], holding,
     insuring, preparing for sale and selling the Collateral, shall become a
     part of the indebtedness secured by this Agreement and shall be payable on
     demand, with interest at the [ILLEGIBLE].

     APPOINT RECEIVER. Lender shall have the right to have a receiver appointed
     to take possession of all or any part of the Collateral, with the power to
     protect and preserve the Collateral, to operate the Collateral preceding
     foreclosure or sale, and to collect the Rents from the Collateral and apply
     the [ILLEGIBLE], over and above the sell of the receivership, against the
     [ILLEGIBLE]. The receiver may serve without bond if permitted by law.
     Lender's right to the appointment of a receiver shall exist whether or not
     the apparent value of the Collateral exceeds the indebtedness by a
     substantial amount. Employment by Lender shall not disqualify a person from
     serving as a receiver.

     COLLECT REVENUES, APPLY ACCOUNTS.  Lender, either itself or through a
     receiver, may collect the payments, rents, income and revenues from the
     Collateral. Lender may at any time in Lender's discretion transfer any
     Collateral into Lender's own name or that of Lender's nominee and receive
     the payments, rents, income and revenues therein and hold the same as
     security for the indebtedness or apply it to payment of the indebtedness in
     such order of performance as Lender may determine. Insofar as the
     Collateral consists of accounts, general intangibles, insurance policies,
     instruments, chattle paper, [ILLEGIBLE] in action, or similar property,
     Lender may demand, collect, receipt for, settle, compromise, adjust, sue
     for, foreclosed, or rushes on the Collateral as Lender may declare, whether
     or not indebtedness or Collateral is than due. For [ILLEGIBLE] purposes,
     Lender may, on behalf of and in the name of Grantor, receive, open and
     dispose of mail addressed to Grantor; changes any address to which made and
     payments are to be sent; and endorse notes, checks, drafts, money orders,
     documents of title, instruments and [ILLEGIBLE] pertaining to payment,
     shipment, or [ILLEGIBLE] of any Collateral. To [ILLEGIBLE] collection,
     Lender may [ILLEGIBLE] account [ILLEGIBLE] and obligors on any Collateral
     to make payments directly to Lender.

     OBTAIN DEFICIENCY. If Lender chooses to sell any or all the Collateral,
     Lender may obtain a judgment against Grantor for any deficiency remaining
     in the indebtedness due to Lender after application of all amounts
     received from the [ILLEGIBLE] of the rights provided in this Agreement.
     Grantor shall be liable for a deficiency even if the transaction described
     in this subsection is a [ILLEGIBLE] of accounts or chattle paper.

     OTHER RIGHTS AND REMEDIES. Lender shall have all the rights and remedies of
     a secured creditor under the provisions of the Uniform Commercial Code, as
     may be amended from time to time. In addition, Lender shall have and may
     exercise any or all other rights and remedies it may have available at law,
     in equity, or otherwise.

     ELECTION OF REMEDIES. Except as may be prohibited by applicable law, all of
     Lender's rights and remedies, whether evidenced by this Agreement, the
     [ILLEGIBLE] Occurrence, or by any other [ILLEGIBLE] shall be cumulative and
     may be [ILLEGIBLE] concurrently. Election by Lender to pursue any remedy
     shall not exclude pursuit of any other remedy, and an election to make
     expenditures or to take action to perform an [ILLEGIBLE] of Grantor under
     this Agreement, [ILLEGIBLE] Grantor's [ILLEGIBLE] to perform, shall not
     [ILLEGIBLE] Lender's right to declare a [ILLEGIBLE] and exercise its
     remedies.

PURPOSE OF LOAN. Working Capital.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of
this Agreement:

     AMENDMENTS. This Agreement, together with any Related Documents,
     constitutes the entire understanding and agreement of the parties as to the
     matters set forth in this Agreement. No alteration of or Amendment to this
     Agreement shall be effective unless given in writing [ILLEGIBLE] party or
     parties sought to be charged or bound by the alteration of amendment.

     ATTORNEYS' FEES; EXPENSES. Grantor agrees to pay upon demand all of
     Lender's costs and expenses, including the Lender's reasonable attorneys'
     fees and Lender's legal expenses incurred in connection with the
     enforcement of this Agreement. Lender may hire or pay someone else to help
     enforce this Agreement, and Grantor shall pay the costs and expenses of
     such enforcement. Costs and expenses include Lender's reasonable attorneys'
     fees and legal expense whether or not there is a lawsuit, including
     Lender's reasonable attorneys' fees and legal expenses for bankruptcy
     proceedings (including efforts to modify or vacate, any automatic stay or
     injunction), appeals and any anticipated post-judgment connection services.
     Grantor also shall pay all court costs and such [ILLEGIBLE] fees as may be
     directed by the court.

     CAPTION HEADINGS. Caption headings in this Agreement are for convenience
     purposes only and are not to be used to interpret or define the provisions
     of this Agreement.

     GOVERNING LAW. This Agreement will be governed by, construed and enforced
     in accordance with federal law and the laws of the State of Texas. This
     Agreement has been accepted by lender in the State of Texas.

     CHOICE OF VENUE. If there is a lawsuit, and the transaction evidenced by
     this Agreement continued in Lubbock County, Grantor agrees upon Lender's
     request to submit in the jurisdiction of the courts of Lubbock County,
     State of Texas.

     NO WAIVER BY LENDER. Lender shall not be deemed to have waived any rights
     under this Agreement unless such waiver is given in writing and signed by
     Lender. No delay or omission on the part of Lender in exercising any right
     shall [ILLEGIBLE] as a waiver of such right or any other right. A waiver by
     Lender of a provision of this Agreement shall not prejudice or constitute a
     waiver of Lender's right otherwise to demand strict compliance with that
     provision or any other provision of this Agreement. No prior waiver by
     Lender, nor any course of dealing between Lender and Grantor, shall
     constitute a waiver of any of the Lender's rights or of any of Grantor's
     obligations as to any future transactions. Whenever the consent of Lender
     is required under this Agreement, the granting of such consent by Lender in
     any instance shall not constitute continuing consent in subsequent
     instances where such consent is required and in all [ILLEGIBLE] such
     consent may be granted or withheld in the sole discretion of Lender.

<PAGE>
                         COMMERCIAL SECURITY AGREEMENT
 LOAN NO:656387                    (CONTINUED)                           PAGE 4
--------------------------------------------------------------------------------

     NOTICES. Any notice required to be given under this Agreement shall be
     given in writing, and shall be effective when actually delivered, when
     actually received by telefacsimile (unless otherwise required by law), when
     deposited with a nationally recognized overnight courier, or, if mailed,
     when deposited in the United States mail, as first class, certified or
     registered mail postage prepaid, directed to the addresses shown near the
     under this Agreement by giving formal written notice to the other parties,
     specifying that the purpose of the notice is to change the party's address.
     For notice purposes, Grantor agrees to keep Lender informed at all times of
     Grantor's current address. Unless otherwise provided or required by law, if
     there is more than one Grantor, any notice given by Lender to any Grantor
     is deemed to be notice given to all Grantors.

     POWER OF ATTORNEY. Grantor hereby appoints Lender as Grantor's irrevocable
     attorney-in-fact for the purpose of executing any documents necessary to
     perfect, amend, or to continue the security interest granted in this
     Agreement or to demand termination of things of other secured parties.
     Lender may at any time, and without further authorization from Grantor,
     file a carbon, photographic or other reproduction of any financing
     statement or of this Agreement for use as a financing statement. Grantor
     will reimburse Lender for all expenses for the [ILLEGIBLE] and the
     continuation of the [ILLEGIBLE] of Lender's security interest in the
     Collateral.

     SEVERABILITY. If a court of competent jurisdiction finds any provision of
     this Agreement to be illegal, invalid, or unenforceable as to any
     circumstance, that finding shall not make the offending provision illegal,
     invalid, or unenforceable as to any other circumstance. If feasible, the
     offending provision shall be considered modified so that it becomes legal,
     valid and enforceable. If the offending provision cannot be so modified, it
     shall be considered deleted from this Agreement. Unless otherwise required
     by law, the illegality, invalidity, of any provision of this Agreement
     shall not affect the legality, validity, or enforceability of any other
     provision of this Agreement.

     SUCCESSORS AND ASSIGNS. Subject to any limitations stated in this Agreement
     on transfer of Grantor's interest, this Agreement shall be binding upon and
     inure to the benefit of the parties, their successors and assigns. If
     ownership of the Collateral becomes vested in a person other than Grantor,
     Lender, without notice to Grantor, may deal with Grantor's successors with
     reference to this Agreement and the indebtedness by way of forebearance or
     extension without releasing Grantor from the obligations of this Agreement
     or liability under the indebtedness.

     SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations,
     warranties, and agreements made by Grantor in this Agreement shall survive
     the execution and delivery of this Agreement, shall be continuing in
     nature, and shall remain in full force and effect until such time as
     Grantor's indebtedness shall be paid in full.

     TIME IS OF THE ESSENCE. Time is of the essence in the performance of this
     Agreement.

DEFINITIONS. The following capitalized words and terms shall have the following
meanings when used in this Agreement. Unless specifically stated to the
contrary, all references to dollar amounts shall mean amounts in lawful money of
the United States of America. Words and terms used in the singular shall include
the plural, and the plural shall include the singular, as the context may
require. Words and terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code:

     ACCOUNT. The word "Account" means a trade account, account receivable,
     other receivable, or other right to payment for goods sold or services
     rendered owing to Grantor (or to a third party grantor acceptable to
     Lender).

     AGREEMENT. The word "Agreement" means this Commercial Security Agreement,
     as this Commercial Security Agreement may be amended or modified from time
     to time, together with all exhibits and schedules attached to this
     Commercial Security Agreement from time to time.

     BORROWER. The word "Borrower" means WESTECH CAPITAL CORP., and all other
     persons and entities signing the Note in whatever capacity.

     COLLATERAL. The word "Collateral" means all of Grantor's right, title and
     interest in and to all the Collateral as described in the Collateral
     Description section of this Agreement.

     DEFAULT. The word "Default" means the Default set forth in this Agreement
     in the section titled "Default".

     ENVIRONMENTAL LAWS. The words "Environmental Laws" mean any and all states,
     federal and local statutes, regulations and ordinances relating to the
     protection of human health or the environment, including without limitation
     the Comprehensive Environmental Response, Compensation, and Liability Act
     of 1980, as amended, 42 U.S.C. Section 8601, at seq ("CERLA"), The
     Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499
     ("SRARA"), the Hazardous [ELIGIBLE] Transportation Act, 49 U.S.C Section
     1801, at seq., the Resource [ILLEGIBLE] and Recovery Act, 42 U.S.C Section
     6801, at seq., or other applicable state or federal laws, rules, or
     regulations adopted pursuant thereto.

     EVENT OF DEFAULT. The words "Event of Default" mean any of the events of
     default set forth in this Agreement in the default section of this
     Agreement.

     GRANTOR. The word "Grantor" means WESTECH CAPITAL CORP.

     GUARANTOR. The word "GUARANTOR" means any guarantor, surety, or
     accommodation party of any or all of the indebtedness.

     GUARANTY. The word "GUARANTY" means the [ILLEGIBLE] from [ILLEGIBLE]
     to lender, including without limitation a [ILLEGIBLE] of all of part of the
     [ILLEGIBLE].

     HAZARDOUS SUBSTANCES. The words "Hazardous Substances" mean materials that,
     because of their quantity, concentration or physical, chemical or
     infectious characteristics, may cause or pose a present or potential hazard
     to human health or the environment when improperly used, treated, stored,
     disposed of, generated, manufactured, transported or otherwise handled. The
     words "Hazardous Substances" are used in their very broadcast sense and
     include without limitation any and all hazardous or [ILLEGIBLE] substances
     materials or waste as defined by or listed under the Environmental Laws.
     The term "Hazardous Substances" also includes, without limitation,
     petroleum and petroleum by products or any inaction thereof and
     [ILLEGIBLE].

     INDEBTEDNESS. The word "Indebtedness" means the indebtedness evidenced by
     the Note or Related Documents, including all principal and interest
     together with all other indebtedness and costs and expenses for which
     Grantor is responsible under this Agreement or under any of the Related
     Documents.

     LENDER. The word "Lender" means First United Bank, its successors and
     assigns.

     NOTE. The word "Note" means the Note executed by WESTECH CAPITAL CORP. in
     the principal amount of $250,050.00 dated July 30, 2002, together with all
     renewals of, extensions of, modifications of, refinancings of,
     consolidations of, and [ILLEGIBLE] for the note or credit agreement.

     PROPERTY. The word "Property" means all of Grantor's right, title and
     interest in and to all the Property as described in the "Collateral
     Description" section of this Agreement.

     RELATED DOCUMENTS. The words "Related Documents" mean all promissory notes,
     credit agreements, loan agreements, environmental agreements, guaranties,
     security agreements, mortgages, deeds of trust, security deeds, collateral
     mortgages, and as other instruments, agreements and documents, whether now
     or hereafter existing, executed in connection with the indebtedness.

GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL SECURITY
AGREEMENT AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED JULY 30, 2002.

GRANTOR:

WESTECH CAPITAL CORP.

By: /s/ JOHN GORMAN
--------------------------------------
    John Gorman, Chairman & CEO
    of WESTECH CAPITAL CORP.

--------------------------------------------------------------------------------
                                 [ILLEGIBLE]<PAGE>
                                                                   EXHIBIT 10.13

                                 PROMISSORY NOTE

$1,000,000.00                                                     August 8, 2002

                  FOR VALUE RECEIVED, the undersigned, WESTECH CAPITAL CORP., a
Delaware corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
JOHN J. GORMAN, an individual (together with his successors and assigns and any
subsequent holders of this Promissory Note, the "Lender"), the principal sum of
ONE MILLION and No/100 Dollars ($1,000,000), together with interest at a fixed
rate per annum equal to eleven and one-half percent (11.50%), payable in 20
principal payments of $50,000, with the final payment due on April 8, 2004.
Borrower's first principal payment is due September 8, 2002 and all subsequent
principal payments are due on the same day of each month after that. In
addition, Borrower will pay regular monthly payments of all accrued unpaid
interest due as of each payment date, beginning September 8, 2002, with all
subsequent interest payments to be due on the same day of each month after that.
Borrower's final payment due April 8, 2004 will be for all principal and all
accrued interest not yet paid.

                  Payments of principal and interest, and all amounts due with
respect to costs and expenses, shall be made in lawful money of the United
States of America in immediately available funds, without deduction, set-off or
counterclaim to the Lender at the location he specifies not later than 11:00
a.m. (Austin, Texas time) on the date(s) on which such payments shall become
due.

                  All agreements between the Borrower and the Lender, whether
now existing or hereafter arising and whether written or oral, are hereby
expressly limited so that in no contingency or event whatsoever, shall the
amount contracted for, charged, reserved or received by Lender for the use,
forbearance, or detention of the money to be loaned under this Note or otherwise
or for the payment or performance of any covenant or obligation contained in
this Note or in any other document exceed the Maximum Rate (as hereinafter
defined). If, as a result of any circumstances whatsoever, fulfillment of any
provision hereof or of any of such documents, at the time performance of such
provision shall be due, shall involve transcending the limit of validity
prescribed by applicable usury law or result in the Lender having or being
deemed to have contracted for, charged, reserved or received interest (or
amounts deemed to be interest) in excess of the maximum, lawful rate or amount
of interest allowed by applicable law to be so contracted for, charged, reserved
or received by the Lender, then, ipso facto, the obligation to be fulfilled by
the Borrower shall be reduced to the limit of such validity, and if, from any
such circumstance, the Lender shall ever receive interest or anything which
might be deemed interest under applicable law which would exceed the Maximum
Rate, such amount which would be excessive interest shall be refunded to the
Borrower, or to the extent (i) permitted by applicable law and (ii) such
excessive interest does not exceed the unpaid principal balance of this Note,
applied to the reduction of the principal amount owing on account of this Note
and not to the payment of interest. In determining whether or not the interest
paid or payable under any specific contingencies exceeds the Maximum Rate, the
Borrower and the Lender shall, to the maximum extent permitted under applicable
law, (a) characterize any nonprincipal payment as an expense, fee or premium
rather than as interest; (b) exclude voluntary prepayments and the effects
thereof; and (c) amortize, prorate, allocate and spread in equal parts during
the period of the full stated term of this Note until payment in full of the
principal thereof (including the period of any renewal or extension thereof),
all interest at any time contracted for, charged, received or reserved in
connection with the indebtedness evidenced by this Note.

         As used in this Note, the term "Maximum Rate" means the maximum rate of
nonusurious interest permitted from day to day by applicable law, including as
to Chapter 303 of the Texas Finance Code, as amended or codified (and as the
same may be incorporated by reference in other Texas statutes), but otherwise
without

                                      -1-
<PAGE>

limitation, that rate based upon the weekly ceiling and calculated after taking
into account any and all relevant fees, payments and other charges in respect of
this Note which are deemed to be interest under applicable law.

                  The Borrower may at any time pay the full amount or any part
of this Note without payment of any premium or fee.

                  The Borrower and any and all endorsers, guarantors and
sureties severally waive grace, demand, presentment for payment, notice of
dishonor or default, protest, notice of protest, notice of intent to accelerate,
notice of acceleration and diligence in collecting and bringing of suit against
any party hereto, and agree to all renewals, extensions or partial payments
hereon and to any release or substitution of security hereof, in whole or in
part, with or without notice, before or after maturity.

                  In the event of a default by the Borrower under this Note, in
addition to any principal and interest owing on this Note, the Borrower shall
reimburse the Lender for any and all legal fees and expenses Lender incurs in
collecting on this Note.

                  THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF TEXAS AND APPLICABLE FEDERAL LAW.

                  IN WITNESS WHEREOF, the Borrower has caused this Note to be
executed and delivered by its officer thereunto duly authorized effective as of
the date first above written.

                                       WESTECH CAPITAL CORP.

                                       By:   /s/ JOHN F. GARBER
                                             -----------------------------------
                                             Name:  John F. Garber
                                                  ------------------------------
                                             Its:
                                                 -------------------------------

                                      -2-

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