Document:

Amended and Restated Executive Agreement

Exhibit 10.2 
 
AMENDED AND RESTATED EXECUTIVE AGREEMENT 
 
This Amended and Restated Executive Agreement (this “Agreement”) is made and entered on
April     , 2003, effective as of November 25, 2002, by and between Steve Bacich (“Employee”) and Conceptus, Inc., a Delaware corporation (the “Company”). 
 
R E C I T A L S 
 
A. Employee has been the President and Chief Executive Officer
of the Company since January 2000. 
 
B. The
Company intends to hire a new Chief Executiver Officer and wishes to retain the continued services of Employee in a new capacity. 
 
C. The Company believes that it is in the best interests of the Company and its shareholders to provide Employee with certain incentives
to continue his employment with the Company, and to provide him with a severance package commensurate with his contributions to the Company. 
 
A G R E E M E N T 
 
In consideration of the mutual covenants contained in this Agreement, the parties agree as follows: 
 
1. At-Will Employment. The Company and Employee
acknowledge that Employee’s employment is and shall continue to be at-will, as defined under applicable law. If Employee’s employment terminates for any reason, the Employee shall not be entitled to any payments or benefits, other than as
provided by this Agreement or if applicable, that certain Change of Control Agreement dated as of January 3, 2000 between the Company and Employee (the “Change of Control Agreement”), as may otherwise be available in accordance with
the terms of the Company’s established employee plans and written policies at the time of termination or as may be determined by the Board of Directors in its sole and absolute discretion. 
 
2. Continuing CEO; Chief Technology Officer; Scientific
Advisory Board Services. 
 
(a)
CEO/CTO. Employee shall continue as CEO until such time as a new CEO shall commence employment with the Company or such earlier time as the Board of Directors of the Company shall so determine. Immediately thereafter, Employee shall become
the Company’s Chief Technology Officer (“CTO”) with responsibility for the Company’s business development, technology surveillance, research & development, clinical affairs and medical affairs functions, reporting to
the Company’s CEO. As the continuing CEO, and then as the CTO, Employee’s annual base salary shall continue to be $240,000. As the Company’s continuing CEO, Employee’s target bonus shall be 40% of his base salary and upon
Employee’s assumption of the CTO function, his target bonus shall continue to be 40% of his base salary for calendar year 2003 and 30% of his base salary for calendar year 2004, in all cases as shall be determined based upon Company and
Employee performance 
 

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and in accordance with the Company’s bonus policies and practices. As an incentive to Employee to
assume the CTO function, 12,500 of the shares subject to that certain option granted to Employee on or about March 21, 2001 shall vest immediately upon Employee’s assumption of the CTO function, with the remaining shares subject to said option
vesting in accordance with their original terms such that the entire option will vest by December 31, 2003 assuming continued employment. 
 
(b) Director Resignation. At such time as Employee is no longer the Company’s President and CEO, he shall resign from the
Company’s Board of Directors. 
 
(c)
Scientific Advisory Board. If Employee should terminate as an employee of the Company for any reason, Employee shall serve as a member of the Company’s Scientific Advisory Board for a term of one year and for such extended time as may be
agreed. The Company shall pay Employee for such services at the rate of $195.00 per hour and reimburse Employee for his out-of-pocket expenses incurred in connection therewith, provided that if Employee provides any services in a given calendar
month, he shall receive a minimum fee of $1,560 for services rendered in such month. The foregoing hourly fee (and reimbursement of out-pocket expenses) and continued rights as provided in the stock option agreements between Employee and the Company
shall be Employee’s sole and exclusive payment and benefit from the Company in consideration of providing his services, and he shall be deemed an independent contractor for all purposes. 
 
3. Severance Benefits. Employee shall be entitled to
receive severance benefits upon termination of employment only as set forth in this Section 3, subject to the other terms of this Agreement, including without limitation Section 5 and 11(c): 
 
(a) Voluntary Termination; Termination for Cause. If
Employee’s employment terminates by Voluntary Termination (as defined below) or is terminated by the Company for Cause (as defined below), then Employee shall not be entitled to receive any option acceleration benefits or payment of any
severance benefits. Employee will receive payment(s) for all salary and unpaid vacation accrued as of the date of Employee’s termination of employment and Employee’s benefits will be continued under the Company’s then existing benefit
plans and policies in accordance with such plans and policies in effect on the date of termination and in accordance with applicable law. 
 
(b) Involuntary Termination. If Employee’s employment is terminated as a result of an Involuntary Termination prior to the
one-year anniversary of his commencement as the CTO, in addition to receiving all salary and unpaid vacation accrued as of the date of Employee’s termination of employment, Employee will be entitled to receive the following benefits:

 
(i) Employee’s regular monthly base salary
for 12 months (the “Severance Period”)(i.e., an aggregate of $240,000) paid ratably over the Severance Period according to the Company’s standard payroll schedule; 
 

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(ii) a 30%
target bonus paid at such time as the Company distributes annual bonuses to employees; 
 
(iii) health insurance benefits with the same coverage provided to Employee prior to the termination (e.g. medical, dental, optical, mental health) and in all other respects significantly
comparable to those in place immediately prior to the termination will be provided by the Company over the Severance Period pursuant to the coverage continuation provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985
(“COBRA”). Employee shall be responsible for the timely and effective election of his COBRA continuation benefits, and the Company shall pay the cost of that continued coverage for 12 months; 
 
(iv) effective immediately upon termination, Employee shall
be deemed to have provided services to the Company for an additional 18 months for purposes of determining vesting with respect to all option grants to the Employee then outstanding; 
 
(iv) Employee shall have a period of 180 days from and after his termination date to exercise his
outstanding stock options; and 
 
(vi)
outplacement services up to a maximum value of $15,000. 
 
(c) Special Provision for certain Change of Control Events. If Employee’s employment is terminated as a result of an Involuntary Termination prior to the one-year anniversary of his commencement as the CTO and
there is a Change of Control (as defined in the Change of Control Agreement) within the 180-day period from and after the termination date, then the Severance Period referenced in Section 3(b)(i) and 3(b)(iii) above shall be 18 months. 
 
(d) Voluntary Termination during first three months as
CTO. If Employee’s employment with the Company is terminated as a result of a Voluntary Termination anytime during the the three-month period starting on the earlier of (i) May 1, 2003 and (ii) such date as Employee commences his role as
CTO, then in addition to receiving all salary and unpaid vacation accrued as of the date of Employee’s termination of employment, Employee will be entitled to receive the benefits set forth in Section 3(b) above; provided, however that
(1) the bonus referenced in Section 3(b)(ii) above shall be 40% rather than 30% and (2) Section 3(b)(v) regarding an extended exercise period shall not apply. For purposes of clarity, the parties agree that Section 3(c) above shall not apply to such
a Voluntary Termination. As a condition of receiving the benefits under this Section 3(d), Employee shall not have spent any time prior to May 1, 2003 actively searching for alternative employment. 
 

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4.
Definition of Terms. The following terms referred to in this Agreement shall have the following meanings: 
 
(a) “Cause” shall mean (i) gross negligence or willful misconduct in the performance of the Employee’s duties to
the Company where such gross negligence or willful misconduct has resulted or is likely to result in substantial and material damage to the Company or its subsidiaries, (ii) repeated unexplained or unjustified absence from the Company, (iii) a
material and willful violation of any federal or state law; (iv) commission of any act of fraud with respect to the Company; or (v) conviction of a felony or a crime involving moral turpitude causing material harm to the standing and reputation of
the Company, in each case as determined in good faith by the Board of Directors of the Company. 
 
(b) “Involuntary Termination” shall mean (i) any termination of Employee’s employment by the Company (other than for Cause) or (ii) the Employee’s voluntary termination as an
employee, upon 30 days prior written notice to the Company, following (A) a diminution in the Employee’s duties or reporting responsibilities as CTO (and excluding the changes relating to the Employee’s transition from CEO to CTO), (B) any
reduction in the Employee’s base salary unless in connection with similar decreases of other similarly situated employees of the Company; (C) any material diminution in Employee’s title (other than the change from CEO to CTO), perquisites,
benefits or terms and conditions of employment; or (D) Employee’s refusal to relocate to a location more than 50 miles from the Company’s current location. 
 
(c) “Voluntary Termination” shall mean any voluntary resignation from the Company as an
employee (other than any that qualifies as an Involuntary Termination). 
 
5. Limitation on Payments. 
 
(a) In the event that the severance and other benefits provided for in this Agreement to the Employee constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the
“Code”) and, but for this Section 5, would be subject to the excise tax imposed by Section 4999 of the Code, the Company shall reduce the aggregate amount of such payments and benefits such that the present value thereof (as
determined under the Code and the applicable regulations) is equal to 2.99 times the Employee’s “base amount” as defined in Section 280G(b)(3) of the Code. 
 
(b) The payment of severance and other benefits provided for in this Agreement shall be subject to all
applicable income and employment tax rules and regulations. 
 
(c) The payment of severance and other benefits provided for in this Agreement shall be subject to the contemporaneous execution by Employee of a release of the Company and its officers, directors and stockholders substantially
similar to the release set forth in Section 6 hereof and the expiration of the revocation period referenced therein. 
 

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(d) If the
Company changes or modifies any provisions of Section 5(a) or any term of similar import in the employment agreements or Change of Control agreements for any other employees of the Company while Employee is eligible for the severance benefits
described in this Agreement or in the Change of Control Agreement, the Company shall, if the Employee so chooses, make similar changes or modifications in the terms of Section 5(a) hereof and the Employee’s Change of Control Agreement.

 
6. Release. 
 
(a) General Release. Employee, on behalf of himself
and his successors, hereby releases and forever discharges the Company, its successors and their associates, owners, stockholders, assigns, employees, agents, directors, officers, partners and representatives and all persons acting by, through,
under, or in concert with them, or any of them, (collectively the “Releasees”) of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements,
promises, liabilities, claims, demands, damages, losses, costs or expenses, of any nature whatsoever, known or unknown, fixed or contingent (each referred to as a “Claim” and, collectively, the “Claims”), which he
now has or may hereafter have against the Releasees by reason of any and all acts, omissions, events or facts occurring or existing prior to the date hereof, except as may be expressly provided herein. The Claims released hereunder include, without
limitation, any alleged breach of any employment agreement; any alleged breach of any covenant of good faith and fair dealing, express or implied; any alleged torts or other alleged legal restrictions relating to the Employee’s employment and
the termination thereof; and any alleged violation of any federal, state or local statute or ordinance including, without limitation, Title VII of the Civil Rights Act of 1964, as amended, the Federal Age Discrimination in Employment Act, the
Americans With Disabilities Act, and the California Fair Employment and Housing Act. 
 
(b) Release of Unknown Claims. EMPLOYEE ACKNOWLEDGES THAT HE IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS: 
 
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.” 
 
EMPLOYEE BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY
RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT. 
 
(c) Release of Age Discrimination Claims. Employee agrees and expressly acknowledges that this Section 6 includes a waiver and
release of all claims that Employee has or may have under the Age Discrimination in Employment Act of 1967, as 
 

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amended, 29 U.S.C. § 621, et seq. (“ADEA”). The following terms and conditions apply
to and are part of the waiver and release of the ADEA claims under this Agreement: 
 
(1) That this Section 6 is written in a manner calculated to be understood by Employee. 
 
(2) The waiver and release of claims under
the ADEA contained in this Section 6 do not cover rights or claims that may arise after the date set forth in the preamble above. 
 
(3) This Agreement provides for consideration in addition to anything of value to which Employee is already entitled.

 
(4) Employee is advised to
consult an attorney before signing this Agreement. 
 
(5) Employee is granted 21 days after Employee is presented with this Agreement to decide whether or not to sign this Agreement. If Employee executes this Agreement prior to the expiration of such period, Employee does so
voluntarily and after having had the opportunity to consult with an attorney. 
 
(6) Employee will have the right to revoke this Agreement under the ADEA within 7 days of the date set forth in the preamble above. If Employee elects to revoke this Agreement, he shall deliver within
the time period prescribed above to the Company a writing stating that he is revoking this Agreement. If Employee elects to revoke this Agreement as described in the foregoing sentence, this Agreement shall be null and void in its entirety.

 
7. Litigation Matters. During and after
his term of employment: (i) Employee agrees not to aid in, assist in, or encourage the pursuit of, litigation against the Company by any other person or entity, unless compelled to do so by legal process and (ii) should the Company request Employee
to assist it or testify in any litigations, hearings, or proceedings, it will reimburse Employee for his time and expenses incurred in doing so in accordance with the fee schedule provided in Section 2(c), subject to the provisions of the
Company’s indemnification agreement with Employee. Notwithstanding the generality of the foregoing, if Employee should terminate as an employee of the Company for any reason, Employee shall provide consulting services to the Company at the
Company’s request with regard to issues concerning the dispute between the Company and Ovion, Inc., including any litigation, arbitration, mediation or other proceedings relating thereto and all appeals therefrom (the “Ovion
Matter”). 
 
8. Successors. Any
successor to the Company (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the obligations under this
Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. The terms of this Agreement and all
of the Employee’s rights hereunder shall inure to the benefit of, and be enforceable by, the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
 

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9.
Notice. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt
requested and postage prepaid. Mailed notices to the Employee shall be addressed to the Employee at the home address which the Employee most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be
addressed to its corporate headquarters. 
 
10.
Term. The terms of this Agreement shall terminate upon the earliest of (i) the 12-month anniversary of Employee’s assumption of the CTO function, (ii) the date on which Employee ceases to be employed by the Company, other than as a
result of an Involuntary Termination by the Company, or (iii) the date that all obligations of the parties hereunder have been satisfied; provided that in any case Employee’s obligations under Section 7 concerning the Ovion Matter shall
continue until the non-appealable conclusion of the Ovion Matter. A termination of the terms of this Agreement pursuant to the preceding sentence shall be effective for all purposes, except that such termination shall not affect the payment or
provision of compensation or benefits on account of a termination of employment occurring prior to the termination of the terms of this Agreement. 
 
11. Miscellaneous Provisions. 
 
(a) No Duty to Mitigate. The Employee shall not be required to mitigate the amount of any payment contemplated by this Agreement
(whether by seeking new employment or in any other manner), nor shall any such payment be reduced by any earnings that the Employee may receive from any other source. 
 
(b) Waiver. No provision of this Agreement shall be modified, waived or discharged unless the
modification, waiver or discharge is agreed to in writing and signed by the Employee and by an authorized officer of the Company (other than the Employee). No waiver by either party of any breach of, or of compliance with, any condition or provision
of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
 
(c) Whole Agreement; Conflict with Change of Control Agreement. No agreements, representations or understandings (whether oral or
written and whether express or implied) which are not expressly set forth or referenced in this Agreement have been made or entered into by either party with respect to the subject matter hereof. This Agreement (together with the Change of Control
Agreement) supersedes any agreement of the same title or concerning similar subject matter dated prior to the date of this Agreement, and by execution of this Agreement both parties agree that any such predecessor agreement shall be deemed null and
void. Employee is eligible to receive benefits either under this Agreement or the Change of Control Agreement; in the event both agreements provide for benefits in a particular instance, the provisions of the Change of Control Agreement shall apply
and this Agreement shall immediately terminate and be of no further force or effect. 
 
(d) Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California without reference to conflict of laws
provisions. 
 

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(e)
Severability. If any term or provision of this Agreement or the application thereof to any circumstance shall, in any jurisdiction and to any extent, be invalid or unenforceable, such term or provision shall be ineffective as to such
jurisdiction to the extent of such invalidity or unenforceability without invalidating or rendering unenforceable the remaining terms and provisions of this Agreement or the application of such terms and provisions to circumstances other than those
as to which it is held invalid or unenforceable, and a suitable and equitable term or provision shall be substituted therefor to carry out, insofar as may be valid and enforceable, the intent and purpose of the invalid or unenforceable term or
provision. 
 
(f) Arbitration. Any dispute
or controversy arising under or in connection with this Agreement may be settled at the option of either party by binding arbitration in San Francisco, California, in accordance with the rules of the American Arbitration Association then in effect.
Judgment may be entered on the arbitrator’s award in any court having jurisdiction. Punitive damages shall not be awarded. 
 
(g) Legal Fees and Expenses. The parties shall each bear their own expenses, legal fees and other fees incurred in connection with
this Agreement, provided that the Company shall reimburse Employee for his reasonable legal fees and expenses up to a maximum of $7,500. 
 
(h) No Assignment of Benefits. The rights of any person to payments or benefits under this Agreement shall not be made subject to
option or assignment, either by voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process, and any action in violation of this subsection (h) shall
be void. 
 
(i) Counterparts. This
Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument. 
 
(j) Advice of Counsel. Employee represents and warrants that he has read this Agreement, that he has had adequate time to consider
it, that he had been advised by the Company to consult with an attorney and has been given an opportunity to consult with an attorney prior to executing this Agreement, that he understands the meaning and application of this Agreement and that he
has signed this Agreement knowingly, voluntarily and of his own free will with the intent of being bound by it. 
 

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IN WITNESS
WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized representative, as of the day and year first above written. 
 

	 CONCEPTUS, INC.
	 	 	 	 EMPLOYEE

	
	 By:
	 	 /s/    Kathryn Tunstall

	 	 	 	 /s/    Steve Bacich

 Steve Bacich

	
	 Title:
	 	 Chairman, Board of Directors

	 	 	 	 Date:
	 	 4/21/2003

	
	 Date:
	 	 4/30/2003

	 	 	 	 	 	 

 

Signature Page to Executive AgreementExhibit 10.1

March 28, 2003

Rampart Services Corporation, L.L.C., et al.
16401 Country Club Dr.
Crosby, Texas 77532

RE:  Fourteenth  Amendment  to Loan Agreement (Fourteenth Amendment) dated as of
     March  28,  2003,  by  and between Southwest Bank of Texas N.A. and Rampart
     Services  Corporation,  L.L.C.  et  al.

Dear Gentlemen:

     This  Fourteenth  Amendment  is  made and entered into as of the date above
between Southwest Bank of Texas N.A. ("Bank") and Borrower (hereinafter defined)
to  evidence  the  parties'  agreement  to  modify  and  amend the existing Loan
Agreement,  as  last amended by the Thirteenth Amendment to Loan Agreement dated
effective  as  of March 31, 2002 (all capitalized terms which are defined in the
Loan Agreement, as amended, shall have the same meaning herein, unless expressly
modified  hereby).

     Borrower has requested that the Loan Agreement be modified and the Bank has
agreed  to  such  modifications upon the terms set forth herein.  For sufficient
consideration,  the  parties hereby agree that the Loan Agreement is modified to
the  extent  required  to accomplish the intent of the specific modifications of
this  Tenth  Amendment.

     The  term  "Borrower"  is hereby defined to include the following entities,
jointly  and  severally,  RAMPART SERVICES CORPORATION, L.L.C., a Texas  limited
liability  company  ("RSC");  RAMPART  CAPITAL CORPORATION, a Texas corporation;
RAMPART VENTURES CORPORATION, L.L.C., a Texas limited liability company; RAMPART
ACQUISITION  CORPORATION,  L.L.C.,  a  Texas  limited liability company; RAMPART
PROPERTIES,  L.L.C.,  a Nevada limited liability company; IGBAF, L.L.C., a Texas
limited  liability  company;  NEWPORT  FUND,  ,  L.L.C.,  an  Oklahoma  limited
liability  company;  RAMPART  NEWPORT  CORPORATION,  L.L.C.,  a  Texas  limited
liability  company;  SOURCEONE CAPITAL GROUP, L.L.C., a Nevada limited liability
company;  and  RAMPART  ALLIANCE  CORPORATION,  a  Texas  corporation; provided,
however,  as  to  filings  with  the  Bank  and compliance issues under the Loan
Agreement,  RSC  shall be the entity primarily responsible for confirming to the
Bank  all compliance matters under the Loan Agreement unless otherwise agreed to
in  writing  by  the  Bank.

     This  Fourteenth  Amendment  modifies  the Loan Agreement to accomplish the
following:

     1.     Borrower  and  Bank  agree  the  Borrower  will  pay no fee for this
extension;  and

<PAGE>
     2.     The  term  "Note" shall be that certain promissory note of even date
herewith  from  Borrower to the Bank in the face amount of $3,000,000.00 due and
payable  on  or before June 26, 2003, which Note amount represents a renewal and
extension  of  the  line  of  credit  facility.

     To  the extent that the terms and provisions of the  Loan Agreement require
modification to accomplish the specific terms set forth above, the parties agree
that  they  shall  cooperate  to permit advances upon the terms set forth above.

     The  representations  and  warranties  of  Borrower  contained  in the Loan
Agreement and the other Security Instruments and otherwise made in writing by or
on  behalf of the Borrower pursuant to the Loan Agreement and the other Security
Instruments  were  true  and  correct when made, and are true and correct in all
material  respects  at  and  as  of  the  time  of  delivery  of this Fourteenth
Amendment.

     Borrower has performed and complied with all Loan Agreements and conditions
contained  in  the  Loan  Agreement  and the Security Instruments required to be
performed  or  complied  with by Borrower prior to or at the time of delivery of
this  Fourteenth  Amendment.

     There  exists,  and  after  giving effect to this Fourteenth Amendment will
exist,  no  default  or  Event  of  Default,  or  any  condition,  or  act which
constitutes, or with notice or lapse of time (or both) would constitute an Event
of Default under any loan agreement, note agreement, or trust indenture to which
the  Borrower  is a party, including without limitation, the Loan Agreement, the
Note  and  the  Security  Instruments,  to  the knowledge of the parties hereto.

     Nothing  in  this  Fourteenth  Amendment  is  intended  to amend any of the
representations  or  warranties  contained  in  the  Loan  Agreement.

     Borrower  represents  that this is a commercial, business and/or investment
transaction  and that the proceeds of the Note have not and will not be used for
personal,  family,  household  or residential purposes; that all disclosures, if
any,  required  by  law  have  been  received by Borrower prior to the execution
hereof;  and  requests that Bank rely upon this representation, and the Bank has
relied  upon  the  representations  and  warranties contained in this Fourteenth
Amendment  in  agreeing  to the amendments and supplements to the Loan Agreement
set  forth  herein.

     Except  as  otherwise  expressly  provided  herein, the Loan Agreement, the
Security Instruments, the Note and the other instruments and agreements referred
to  therein  are not amended, modified or affected by this Fourteenth Amendment.
Except  as  expressly set forth herein, all of the terms, conditions, covenants,
representations,  warranties  and all other provisions of the Loan Agreement are
herein  ratified  and  confirmed  and  shall  remain  in  full force and effect.

     On and after the date on which this Fourteenth Amendment becomes effective,
the  terms,  "this Loan Agreement," "hereof," "herein," "hereunder" and terms of
like  import,  when used herein or in the Loan Agreement shall, except where the
context  otherwise  requires,  refer  to  the Loan Agreement, as amended by this
Fourteenth  Amendment.

     This  Fourteenth Amendment may be executed in two or more counterparts, and
it shall not be necessary that the signatures of all parties hereto be contained
on any one counterpart hereof; each counterpart

<PAGE>
shall  be deemed an original, but all of which together shall constitute one and
the  same  instrument.

     It  is  understood  between  the parties hereto that Borrower shall provide
Bank,  at  Borrower's  expense,  all  other  reports,  further  agreements  and
instruments,  title  policies,  surveys,  and  other documentation as reasonably
requested  during  the term of the Note, so as to preserve, protect and perfect,
or  maintain  the  perfection,  of all liens created by the instruments securing
payment  of the Note or other required documentation so that Bank shall have all
documentation necessary to comply with Bank's internal lending policies and that
documentation  required  by  any  applicable  regulatory  agency/authority.

     All  notices  to  Borrower  shall  be  sent to the address set forth above.

     NOTICE TO OBLIGORS:  THIS DOCUMENT AND ALL OTHER DOCUMENTS RELATING TO THIS
LOAN  CONSTITUTE  A  WRITTEN LOAN AGREEMENT WHICH REPRESENTS THE FINAL AGREEMENT
BETWEEN  THE  PARTIES  AND  MAY  NOT  BE  CONTRADICTED  BY  EVIDENCE  OF  PRIOR,
CONTEMPORANEOUS,  OR  SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.  THERE ARE
NO  UNWRITTEN  ORAL  AGREEMENTS  BETWEEN  THE  PARTIES  TO  THIS LOAN.  THE TERM
"PARTIES"  INCLUDES  THE  UNDERSIGNED  PERSONS  AND  ENTITIES.  THE  TERM "LOAN"
INCLUDES  THIS  AGREEMENT  AND  THE  DOCUMENTS  REFERENCED  HEREIN.

IN  WITNESS WHEREOF, the parties hereto have caused this Fourteenth Amendment to
be  executed  as  of  the  date  first  set  forth  above.

BORROWER:                     RAMPART SERVICES CORPORATION, L.L.C.,
                              a Texas limited liability company

                              By:  /s/ J. H. Carpenter
                                   J. H. Carpenter, President

                              RAMPART CAPITAL CORPORATION,
                              a Texas corporation

                              By:  /s/ J. H. Carpenter
                                   J. H. Carpenter, President

<PAGE>
                              RAMPART VENTURES CORPORATION, L.L.C.,
                              a Texas limited liability company

                              By:  /s/ J. H. Carpenter
                                   J. H. Carpenter, President

                              RAMPART ACQUISITION CORPORATION, L.L.C.,
                              a Texas limited liability company

                              By:  /s/ J. H. Carpenter
                                   J. H. Carpenter, President

                              RAMPART PROPERTIES, L.L.C.,
                              a Nevada limited liability company

                              By:  /s/ J. H. Carpenter
                                   J. H. Carpenter, President

                              IGBAF, L.L.C.,
                              a  Texas  limited  liability  company

                              By:  /s/ J. H. Carpenter
                                   J. H. Carpenter, President

                              NEWPORT FUND, L.L.C.
                              an Oklahoma limited liability company

                              By:  /s/ J. H. Carpenter
                                   J. H. Carpenter, President

<PAGE>
                              RAMPART NEWPORT CORPORATION, L.L.C.,
                              a Texas limited liability company

                              By:  /s/ J. H. Carpenter
                                   J. H. Carpenter, President

                              SOURCEONE CAPITAL GROUP, L.L.C.,
                              a Nevada limited liability company

                              By:
                                 -------------------------------------
                                   Rampart Properties, L.L.C.,
                                   its Manager

                              By:  /s/ J. H. Carpenter
                                   J. H. Carpenter, President

                              RAMPART ALLIANCE CORPORATION,
                              a Texas corporation

                              By:  /s/ J. H. Carpenter
                                   J. H. Carpenter, President

BANK:                         SOUTHWEST BANK OF TEXAS N.A.

                              By:  /s/ Michael R. Adams
                                   Michael R. Adams, Vice President

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