Document:

Exhibit 10.1

                        PURCHASE AND SETTLEMENT AGREEMENT

THIS PURCHASE AND SETTLEMENT AGREEMENT (this "Agreement"), is made and entered
into as of the 29th day of April, 2004 to be effective as of May 4, 2004 (the
"Effective Date"), by and among JL Acquisitions Co., LLC, a Delaware limited
liability company ("Buyer"), ARB Investment Enterprises, Ltd., a Florida limited
partnership ("ARB"), Hermann Burckhardt ("H. Burckhardt"), Alberto Burckhardt
("A. Burckhardt" and together with ARB and H. Burckhardt collectively referred
to herein as the "Burckhardts") and NexGen Vision, Inc., a Delaware corporation
(the "Company") (Buyer, the Burckhardts, and the Company are hereinafter
referred to collectively as the "Parties" and individually as a "Party".)

                              W I T N E S S E T H:

WHEREAS, ARB is the record owner of 1,956,250 shares of the Company's Class B
common stock, H. Burckhardt is the record and beneficial owner of 12,383 shares
of the Company's Class A common stock, and A. Burckhardt is the record and
beneficial owner of 55,000 shares of the Company's Class A common stock and
1,948,750 shares of the Company's Class B common stock (the Company shares owned
by ARB, H. Burckhardt and A. Burckhardt are referred to herein, collectively, as
the "Shares"); and

WHEREAS, the Burckhardts and the Company have mutually agreed to terminate their
relationship, the Burckhardts have agreed to sell to Buyer the Shares and Buyer
has agreed to purchase such Shares from the Burckhardts; and

WHEREAS, for good and valuable additional consideration, H. Burckhardt and A.
Burckhardt on the one hand and the Company on the other, desire to execute and
deliver to each other certain releases as more fully described herein.

NOW THEREFORE, in consideration of the mutual covenants and agreements contained
herein, the receipt and sufficiency of which is hereby acknowledged, the Parties
do mutually agree as follows:

      1. Correctness of Recitals. The foregoing recitals are incorporated herein
by reference.

      2. Sale and Purchase of Shares. Subject to the terms hereof, effective as
of the Effective Date, the Burckhardts shall sell, assign and transfer to Buyer
and Buyer shall purchase the Shares for an aggregate purchase price of Four
Hundred Thousand Dollars ($400,000) (the "Purchase Price") payable on the
Effective Date, by cash, wire transfer or certified check in accordance with
instructions as provided by the Burckhardts.

      3. Warrants. For and in consideration of the releases to be given to the
Company by each of H. Burckhardt and A. Burckhardt pursuant to Section 12
herein, and subject to the terms thereof, on the Effective Date, the Company
shall issue to each of H. Burckhardt and A. Burckhardt a warrant to purchase up
to 100,000 shares of the Company's Class A common stock, at an exercise price of
$1.50 per share, and otherwise substantially in the form attached hereto as
Exhibit A (the "Warrants").

      4. Shares in Escrow. Notwithstanding any provision herein to the contrary,
the Parties acknowledge and agree that 40,000 shares of the Company's Class B
common stock owned by ARB are subject to an Escrow Agreement dated February 10,
2003, between E. Douglas Cifers and Harris & Gilbert, LLP ("H&G") (a copy of
which is attached hereto as Exhibit B) pursuant to which H&G is holding such
shares, and such Escrow Agreement has been provided to Buyer. On the Effective
Date, H. Burckhardt shall advise and instruct H&G of the sale of such 40,000
shares to Buyer and direct H&G or

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                                                                    Exhibit 10.1

any successor escrow agent, to deliver such 40,000 shares to Buyer or Buyer's
assigns, instead of ARB, upon their release from escrow.

      5. Date of Separation. Subject to the terms and conditions hereinafter set
forth, the Burckhardts shall be deemed to have separated from, and terminated
their relationship with, the Company, effective immediately upon receipt by
Buyer of cleared funds pursuant to Section 9.3 (which receipt shall be promptly
confirmed to Buyer), with the exception of the mutual undertakings pursuant to
this Agreement. As of the Effective Date, (i) the Burckhardts shall no longer be
shareholders, officers, directors or employees of, or have any interest in or
rights relating to, the Company (other than rights set forth in the Warrants
issued pursuant to Section 3); (ii) any employment agreement entered into by and
between the Company or any of its affiliates on the one hand and H. Burckhardt
or A. Burckhardt on the other shall be deemed terminated; and (iii) the
Burckhardts waive any claim and/or right they may have to unpaid salary,
director's compensation, severance, bonus or payment of any kind from or by the
Company.

      6. Representations of H Burckhardt and A. Burckhardt.

      6.1 Representations of H. Burckhardt. Subject to, and with the exception
of, any acts or omissions of Gary Lafferty or Jan Lafferty, his wife, at any
time, in each of their corporate, allegedly corporate, or individual capacities
(provided that H. Burckhardt has no knowledge of such act or omission), H.
Burckhardt hereby represents and warrants to Buyer as follows:

      (a) ARB is the record owner of 1,956,250 shares of the issued and
outstanding Class B common stock of the Company, free and clear of any and all
liens, encumbrances, claims, charges or third party rights thereon of every kind
and nature whatsoever and there are no restrictions on ARB's power to sell the
Shares, nor are there any other outstanding options, warrants or other rights to
purchase the Shares, other than the 40,000 Shares described in Section 4.

      (b) H. Burckhardt is the President of ARB Management Services, Inc. which
is the general partner of ARB and in such capacity has the power and authority
to vote the Shares on behalf of ARB and to cause the transfer of such Shares to
Buyer as contemplated by this Agreement.

      (c) H. Burckhardt is the record and beneficial owner of 12,383 shares of
the issued and outstanding Class A common stock of the Company, free and clear
of any and all liens, encumbrances, claims, charges or third party rights
thereon of every kind and nature whatsoever and there are no restrictions on his
power to sell the Shares, nor are there any other outstanding options, warrants
or other rights to purchase the Shares.

      (d) H. Burckhardt and ARB have the right, power, and authority to enter
into this Agreement and all documents and instruments to be executed by each of
them hereunder, and to perform his or its obligations hereunder and thereunder.
This Agreement constitutes a valid and legally binding obligation of each of H.
Burckhardt and ARB, enforceable against each of them in accordance with its
terms.

      (e) Other than the Shares described in subsections 6.1(a) and 6.1(c) and,
with respect to H. Burckhardt only, other than the Warrant described in Section
3, neither ARB nor H. Burckhardt owns, beneficially or of record, any interest
in any equity securities of the Company (or in any debt convertible into equity
securities of the Company) nor is either a party to any contract or agreement
pursuant to which either of them has the right to purchase equity securities (or
debt securities convertible into equity securities) of the Company. The Shares
to be transferred by ARB and H. Burckhardt pursuant to this Agreement have been
validly issued by the Company, are fully paid and non-assessable.

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                                                                    Exhibit 10.1

      6.2 Representations of A. Burckhardt. Subject to, and with the exception
of, any acts or omissions of Gary Lafferty or Jan Lafferty, his wife, at any
time, in each of their corporate, allegedly corporate, or individual capacity
(provided that A. Burckhardt has no knowledge of such act or omission), A.
Burckhardt hereby represents and warrants to Buyer as follows:

      (a) A. Burckhardt is the record and beneficial owner of 1,948,750 shares
of the issued and outstanding Class B common stock of the Company and 55,000
shares of the issued and outstanding Class A common stock of the Company, free
and clear of any and all liens, encumbrances, claims, charges or third party
rights thereon of every kind and nature whatsoever and there are no restrictions
on his power to sell the Shares, nor are there any other outstanding options,
warrants or other rights to purchase the Shares.

      (b) A. Burckhardt has the right, power, and authority to enter into this
Agreement and all documents and instruments to be executed by him hereunder, and
to perform his obligations hereunder and thereunder. This Agreement constitutes
a valid and legally binding obligation of A. Burckhardt, enforceable against him
in accordance with its terms.

      (c) Other than the Shares set forth in subsection 6.2(a) and the Warrant
described in Section 3, A. Burckhardt does not own, beneficially or of record,
any interest in any equity securities of the Company (or in any debt convertible
into equity securities of the Company) nor is he a party to any contract or
agreement pursuant to which he has the right to purchase equity securities (or
debt securities convertible into equity securities) of the Company. The Shares
to be transferred by A. Burckhardt pursuant to this Agreement have been validly
issued by the Company, are fully paid and non-assessable.

      (d) A. Burckhardt currently serves as the duly authorized and appointed
President of the Company and as a duly elected Director of the Company, and has
the power and authority to execute this Agreement on behalf of the Company.

      6.3 Representations of H. Burckhardt and A. Burckhardt. In addition to the
representations given above, and subject to, and with the exception of, any acts
or omissions of Gary Lafferty or Jan Lafferty, his wife, at any time, in each of
their corporate, allegedly corporate, or individual capacities (provided that
neither H. Burckhardt nor A. Burckhardt has knowledge of such act or omission),
H. Burckhardt and A. Burckhardt hereby jointly and severally represent and
warrant to Buyer as follows:

      (a) The Company is a corporation duly authorized, validly existing and in
good standing under the laws of the State of Delaware. True, correct and
complete copies of the Company's Certificate of Incorporation and Bylaws, each
as in effect on the date hereof, are attached hereto as Exhibit 6.3(a)(i) and
Exhibit 6.3(a)(ii), respectively (the "Certificate" and the "Bylaws",
respectively). The Company has two wholly-owned subsidiaries: (i) Cobra Vision,
Inc., a Georgia corporation and (ii) FB Optical Manufacturing, Inc., a Florida
corporation (collectively, the "Subsidiaries"). Each of the Subsidiaries is duly
authorized, validly existing and in good standing under the laws of the state of
its incorporation. Other than the Subsidiaries, the Company has no subsidiaries
or affiliated companies and does not otherwise own or control, directly or
indirectly, any equity interest in any corporation, association, partnership,
joint venture or other business entity.

      (b) Immediately prior to the Effective Date, the authorized capitalization
of the Company consists of (i) 50,000,000 shares of Class A Common Stock, par
value $0.001 per share, 7,051,785 of which are issued and outstanding; (ii)
7,700,000 shares of Class B Common Stock, par value $0.001 per share, 7,455,000
of which are issued and outstanding; and (iii) 10,000,000 shares of preferred
stock, par value $0.001 per share, 487,500 of which are issued and outstanding.
Other than as disclosed in public filings with the Securities and Exchange
Commission and in this Agreement, the Company has not: (A)

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                                                                    Exhibit 10.1

issued any options, warrants or other rights to acquire shares of capital stock
of the Company; (B) executed any restrictive stock transfer, voting trust, or
other agreement or commitment relating to the transfer or voting of any equity
security of the Company (including the Shares); and (C) granted any preemptive
rights with respect to any of the Company's equity securities. Notwithstanding
the foregoing, neither H. Burckhardt nor A. Burckhardt express an opinion or
give a representation as to the shares referenced in Item 12 of the attached
Disclosure Schedule (the "Disclosure Schedule") and such shares are not included
in the numbers set forth above.

      (c) Other than as disclosed on the Disclosure Schedule attached hereto,
the Company has not:

            (A) incurred any debt, obligations and/or liabilities outside the
      ordinary course of business in excess of $2,500 (each of the Burckhardts
      acknowledges that any salary owing to him (and any interest and penalties
      thereon) from the Company as of the Effective Date will not be paid and is
      subject to the releases described in Section 12 below);

            (B) authorized or issued any capital stock or other equity security
      of any kind or debt security convertible into equity or granted any right
      to purchase any equity security or convertible debt security;

            (C) waived or compromised any material right or material debt owed
      to it;

            (D) entered into any employment, deferred compensation, severance,
      retirement or other similar agreement with any employee, officer or
      director of the Company or made any amendment to any such existing
      agreement, or change in any compensation or other benefits payable to any
      employee, officer or director of the Company pursuant to any severance or
      retirement plan or policy;

            (E) sold, transferred, assigned or permitted the imposition of any
      encumbrance on any material assets of the Company other than the sale of
      inventory in the ordinary course of business;

            (F) made any change in any method of accounting or accounting
      practice with respect to the business of the Company as disclosed in all
      public documents filed with the SEC;

            (G) made any loans or guarantees to or for the benefit of any
      employee, officer or director of the Company or any members of their
      immediate families;

            (H) declared, set aside, paid or distributed any amounts in respect
      of any of the Company's capital stock or directly or indirectly redeemed,
      purchased or otherwise acquired any of its capital stock;

            (I) been named as a party to any suit, action or proceeding or the
      object of any investigation; or

            (J) entered into any material contract or agreement.

      (d) Neither the Company nor either of the Burckhardts (in their capacity
as current or former directors and/or officers of the Company) has made any
payment of Company funds prohibited by law and no Company funds have been set
aside for any payment prohibited by law.

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                                                                    Exhibit 10.1

      (e) Neither of the Burckhardts nor any member of either of their immediate
family is indebted, directly or indirectly, to the Company nor is the Company or
either of the Subsidiaries indebted, directly or indirectly, (or committed to
make loans or extend or guarantee credit) to any of them (other than the payment
of salary by the Company to each of the Burckhardts for services rendered in the
ordinary course of business, which payments each of the Burckhardts will waive
pursuant to the releases described below). Except for this Agreement, there are
no agreements between the Company or either of the Subsidiaries on one hand and
either of the Burckhardts or any affiliated person or entity on the other, the
rights under which will not be waived by the Burckhardts upon delivery of the
releases described below.

      7. Representations of Buyer. Buyer hereby represents and warrants to the
Burckhardts as follows:

      7.1 Authorization. Buyer has full power and authority to enter into this
Agreement, and such agreement constitutes its valid and legally binding
obligation, enforceable in accordance with its terms, except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors' rights generally, (ii)
as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies, and (iii) to the extent the
indemnification provisions contained herein may be limited by applicable federal
or state securities laws.

      7.2 Purchase Entirely for Own Accord. Buyer understands that this
Agreement is made with Buyer in reliance upon Buyer's representation that the
Shares to be received by Buyer will be acquired for investment for Buyer's own
account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that Buyer has no present intention of
selling, granting any participation in or otherwise distributing the same.

      7.3 Investment Experience. Buyer is an investor in securities of companies
in the development state and acknowledges that it is able to fend for itself,
can bear the economic risk of its investment, and has such knowledge and
experience in financial or business matters that it is capable of evaluating the
merits and risks of the investment in the Shares. Buyer has not been organized
for the purpose of acquiring the Shares.

      7.4 Advice of Counsel. Buyer acknowledges that Buyer has had the
opportunity to review this Agreement, the Exhibits and Schedules attached hereto
and the transaction contemplated by this Agreement with Buyer's legal counsel.

      7.5 Restricted Securities. Buyer acknowledges that the Shares being
purchased by Buyer hereunder may be "restricted securities" as contemplated by
the United States securities laws and Buyer understands that the Shares may be
resold under the Securities Act of 1933, as amended, only in certain limited
circumstances.

      8. Representation and Covenant of the Company. The Company hereby
represents and warrants to the Burckhardts as follows:

      8.1 Authorization. The Company has full power and authority to enter into
this Agreement, and such agreement constitutes its valid and legally binding
obligation, enforceable in accordance with its terms, except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors' rights generally, (ii)
as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies, and (iii) to the extent the
indemnification provisions contained herein may be limited by applicable federal
or state securities laws.

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                                                                    Exhibit 10.1

      8.2 Covenant Regarding Indemnification. The Company hereby covenants that,
from and after the Effective Date, each of H. Burckhardt and A. Burckhardt will
be entitled to rely on the indemnification provisions in the Certificate and
Bylaws, as in effect on the Effective Date (to the extent such provisions
purport to indemnify directors and/or officers of the Company and to the extent
each of H. Burckhardt and A. Burckhardt would otherwise be entitled to the
benefit of such provisions), and to the extent the Company amends the
Certificate or Bylaws in the future to reduce or limit the indemnification
benefits enjoyed by the Company's directors or officers, such amendment shall
not affect the Company's indemnification obligations to either of H. Burckhardt
or A Burckhardt. For the avoidance of doubt, this covenant does not purport to
expand or limit the scope of indemnity currently available to either H.
Burckhardt or A. Burckhardt by the Company.

      9. Closing; Procedure.

      9.1 Closing. The closing of the transactions contemplated by this
Agreement (the "Closing") shall take place immediately upon execution of this
Agreement by the Parties hereto.

      9.2 Deliveries by the Burckhardts. At the Closing, the Burkhardts shall
deliver or cause to be delivered, to Buyer each of the following, duly executed
as appropriate:

            (a) Receipt of the Purchase Price (to be delivered upon confirmation
      of receipt of funds as contemplated by Section 2 herein);

            (b) Original stock certificates representing the Shares being
      purchased hereunder duly executed for transfer to Buyer or delivered with
      appropriate stock powers executed in blank;

            (c) Good Standing Certificates, dated no more than thirty (30) days
      prior to the Closing, for each of the Company and each Subsidiary from
      each such entity's respective State of incorporation;

            (d) Releases in favor of the Company as contemplated by Section 12
      herein;

            (e) Counterparts of the Warrants to be delivered pursuant to Section
      3 herein; and

            (f) A copy of the instruction letter delivered to H&G as
      contemplated by Section 4 herein and evidence of delivery.

      9.3 Deliveries by Buyer. At the Closing, Buyer shall deliver, or cause to
be delivered, to the Burckhardts the Purchase Price as contemplated by Section 2
herein.

      9.4 Deliveries by the Company. At the Closing, the Company shall deliver,
or cause to be delivered, to the Burckhardts each of the following, duly
executed:

            (a) Releases in favor of H. Burckhardt and A. Burckhardt as
      contemplated by Section 12; and

            (b) The Warrant contemplated by Section 3 herein.

      10. Advice of Counsel; Neutral Affect as to Draftsmanship. The Parties
represent that they have been represented by counsel of their own choosing,
which counsel have explained in detail all of their rights, obligations and
liabilities hereunder and with respect hereto; that none of them have entered

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                                                                    Exhibit 10.1

into this Agreement under duress or threat of any sort or kind; but to the
contrary their entry into this Agreement has been and is voluntary in all
respects. The Parties agree that in the interpretation of this Agreement, no
court or other tribunal shall construe this Agreement other than neutrally among
the Parties as a result of one or the other of the Parties or their counsel
having been the draftor hereof.

      11. Conduct of the Parties Post-Closing. The Parties agree to cooperate
with each other and work together following the date hereof with respect to all
matters relating to the periods prior to the purchase of the Shares by Buyer,
including the execution of any and all documents which may be reasonably
required to accomplish the purposes of this Agreement.

      12. Releases. (a) H. Burckhardt and A. Burckhardt on the one hand and the
Company on the other hand shall execute mutual general releases in favor of each
other at closing in the form attached hereto as Exhibit C, which releases shall
specifically exclude obligations under this Agreement.

      (b) Each of H. Burckhardt and A. Burckhardt hereby acknowledges and agrees
that the Company may rely on the representations and warranties of each of H.
Burckhardt and A. Burckhardt as set forth in Sections 6.1, 6.2 and 6.3 above and
that the matters covered by such representations (as modified by any disclosure
made on the Disclosure Schedule) shall not be covered by the releases to be
given by the Company pursuant to this Section 12. The Company acknowledges and
agrees that its only claim against either of H. Burckhardt and/or A. Burckhardt
in connection with their acts or omission on behalf of the Company, in any
capacity, shall be limited to actions or claims brought for fraud, for a breach
of any representation in Section 6.1, 6.2 or 6.3, or for a failure by H.
Burckhardt and/or A. Burckhardt to perform any of his agreements as set forth
herein.

      13. Restrictive Covenants.

      13.1 Future Ownership / Control. Other than the Warrants granted pursuant
to Section 3 above, from and after the Effective Date, each of the Burckhardts
agrees that he or it shall not, and shall not cause any third party to, purchase
any debt or equity securities issued by the Company or otherwise attempt to
control or influence the management of the Company or the conduct of the
Company's business either directly or through a third party.

      13.2 Non-competition / Non-solicitation. Commencing on the Effective Date
and continuing for a period of five (5) years thereafter, the Burckhardts shall
not, without the prior written consent of the Company, (i) solicit business (in
competition with the Company) from or compete with the Company for the business
of any customer of the Company as reflected on the books of the Company, (ii)
either directly or indirectly operate or perform any advisory or consulting
services for, invest in (other than stock in a publicly-held corporation which
is traded on a recognized securities exchange or over-the-counter, provided that
the ownership of such equity interest does not give the Burckhardts the right to
control or substantially influence the policy or operational decisions of such
corporation), or otherwise become associated with in any capacity (including as
an employee), any company, partnership, organization, proprietorship or other
entity anywhere in the world which develops, manufactures, sells or distributes
eyewear lenses using a process similar to or competitive with the process
utilized by the Company, or (iii) solicit any officer, employee, representative,
agent, or independent contractor of the Company, or any other person or entity
that has a business relationship with the Company, to alter or terminate his,
her or its employment or business relationship with the Company.

      13.3 Confidentiality/Non-Disclosure. Each Party hereby agrees that he or
it shall hold all Confidential Information of each other Party in strict
confidence and solely for the benefit of such other Party, and that, he or it
shall not, directly or indirectly, disclose or use or otherwise authorize or
permit any third party to disclose or use any Confidential Information except as
required by law. As used herein,

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                                                                    Exhibit 10.1

"Confidential Information" means any and all confidential, proprietary or other
information in any form or media whatsoever, regardless of how originated or by
whom, which is in any way related to the past, present or future business of the
Company or any Party hereto and that is not generally known by or available to
the public.

      13.4 Mutual Non-Disparagement. The Parties mutually agree not to disparage
each other, not to say anything to any third party which may injure each other
in their business dealings with customers, guests, patrons, employees, agents,
vendors, suppliers, or in any way disparage or injure each other's name and
reputation within the business community or to the public at large.

      13.5 Remedies for Breach. In the event of a breach of the restrictive
covenants set out in Sections 13.1, 13.2, 13.3 or 13.4 (the "Restrictive
Covenants") it is agreed that the Parties, in addition to the other remedies
available, shall be entitled, as a matter of right, to injunctive relief in any
court of competent jurisdiction, along with reasonable attorneys' fees for
securing such relief. The Parties acknowledge that the restrictions set forth in
the above Restrictive Covenants have been carefully considered, negotiated and
agreed between the Parties hereto. Accordingly, the Parties agree that the
Restrictive Covenants set forth above are no greater than are reasonably
necessary to protect the legitimate interests of the respective Parties. The
Parties further agree that if the Restrictive Covenants are held in a final
judgment or determination of any court of law or administrative agency of
competent jurisdiction to be over-broad or otherwise unenforceable in any
respect, such provision shall be deemed to be amended and shall be binding upon
the Parties to the maximum extent deemed reasonable and enforceable by such
court or administrative agency. Without limitation of the foregoing, the Parties
agree that in the event any portion of the Restrictive Covenants is deemed to be
unreasonable, the remaining portion of the Restrictive Covenants shall be
enforced.

      14. Indemnification. Each of the Burckhardts, the Company and Buyer shall
indemnify the others as set forth in this Section 14. The party entitled to such
indemnity is referred to herein as the "Indemnified Party" and the party
obligated to provide such indemnity is referred to herein as the "Indemnifying
Party". The Indemnifying Party shall indemnify and hold harmless the Indemnified
Party from and against any and all liabilities, losses, damages, claims, costs
or expenses (including reasonable attorneys' fees and disbursements)
(collectively, "Losses") that are incurred or suffered by such Indemnified Party
by reason of (i) the breach by the Indemnifying Party of any of his or its
representations and warranties contained herein or (ii) the failure of the
Indemnifying Party to perform or comply with any covenant or agreement contained
herein to be performed or complied with by him or it, provided that (i) no party
shall be entitled to indemnity pursuant to this Section unless and until the
aggregate amount of Losses incurred by such party as a result of the breach
and/or failure of the Indemnifying Party exceeds $10,000 and (ii) to the extent
the relevant breach or failure by the Indemnifying Party directly results in tax
or insurance proceeds actually received by the Indemnified Party, such proceeds
shall be netted against the amount payable by the Indemnifying Party hereunder.

      15. No Advantage to Third Parties. The Parties mutually agree that this
Agreement is an agreement which, among other things, contains agreements of
compromise of matters that each Party deems private matters between and among
themselves. As such, the Parties agree that nothing herein shall serve as an
admission or concession of any sort or kind, in particular, with respect to any
third party, who may claim or seek to claim an advantage against any of the
Parties as a result of a reading or construction of any term or condition of
this Agreement. This Agreement is solely for the benefit of the parties hereto
and their respective successors, assigns and personal representatives and no
third party shall be a third party beneficiary hereof.

      16. Return of Company Property. The Burckhardts agree to return to the
Company as soon as possible (and in no event, more than three (3) days from the
date hereof) all Company property in their

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                                                                    Exhibit 10.1

possession, including but not limited to documents, data, records, notebooks,
customer lists, prospect lists, working lists, proposals, quotes, price lists,
checks, invoices, bills, bank account information, competitive information and
comparisons, and computer data and similar repositories of information
containing any information about the Company, whether prepared by them or
others.

      17. Miscellaneous. This Agreement shall be binding on and inure to the
benefit of the respective Parties hereto and their successors and assigns. This
Agreement may be executed in multiple counterparts, each of which shall
constitute an original Agreement, but all of which shall be deemed to constitute
one instrument. Each Party shall bear their own fees and costs incurred in
connection with any matter described herein and in the preparation and
negotiation of this Agreement. The terms and provisions of this Agreement cannot
be terminated or modified or amended orally or by course of conduct or dealing
or in any manner except in a writing that is signed by the Party against whom
enforcement is sought. This Agreement shall be construed in accordance with the
laws of the State of Delaware and any suit, action or proceeding arising out of
or relating to this Agreement may be commenced and maintained in any court of
competent subject matter jurisdiction in the County of New York, New York City,
New York or in Miami, Florida at the option of the Party initiating such suit,
action or proceeding and each Party waives objection to such jurisdiction and
venue. The provisions of this Agreement are severable, and any invalidity,
unenforceability or illegality in any provision or provisions hereof shall not
affect the remaining provisions of this Agreement. In any suit, action or
proceeding arising out of or in connection with this Agreement, the prevailing
Party shall be entitled to an award of the reasonable attorneys' fees and
disbursements incurred by such Party in connection therewith, including fees and
disbursements in administrative, regulatory, insolvency, bankruptcy and
appellate proceedings. All notices required or allowed hereunder shall be in
writing and shall be deemed given upon (i) hand delivery or (ii) delivery by
reputable overnight courier service, or (iii) delivery by facsimile with
confirmation of receipt, or (iv) deposit of same in the United States Certified
Mail, Return Receipt Requested, first class postage and registration fees
prepaid and correctly addressed to the Party for whom intended at their address
set forth in Exhibit D attached hereto, or such other address as is most
recently noticed for such Party as aforesaid. All references to gender or number
in this Agreement shall be deemed interchangeably to have a masculine, feminine,
neuter, singular or plural meaning, as the sense of the context requires. Any
failure by any Party to insist upon strict performance by any other Party of the
terms and provisions of this Agreement shall not be deemed a waiver of any of
the other terms or provisions of this Agreement. The Parties shall execute and
deliver any other instruments or documents and take any further actions after
the execution of this Agreement, which may be reasonably required for the
implementation of this Agreement and the transactions contemplated hereby.

      18. Survival of Obligations. The Parties mutually agree and acknowledge
that the obligations contained in Sections 13 and 14 of this Agreement shall
survive any termination, cancellation, or expiration of this Agreement.

IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the date
first set forth above.

                                        ARB INVESTMENT ENTERPRISES, LTD
                                        a Florida limited partnership

                                        By: ARB Management Services, Inc.,
                                            general partner

                                            By: ________________________________
                                                Hermann Burckhardt, President

                                       9
<PAGE>

                                                                    Exhibit 10.1

                                        ________________________________________
                                        Hermann Burckhardt, Individually

                                        ________________________________________
                                        Alberto Burckhardt, Individually

                                        JL ACQUISITIONS CO., LLC

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________

                                        NEXGEN VISION, INC., a Delaware
                                        corporation

                                        By: ____________________________________
                                        Its:____________________________________

Attachments:

Disclosure Schedule
Exhibit A - Form of Warrant
Exhibit B - Copy of Escrow Agreement
Exhibit C - Form of Releases
Exhibit D - Notice Addresses
Exhibit 6.3(a)(i) - Company Certificate of Incorporation
Exhibit 6.3(a)(ii) - Company Bylaws

<PAGE>

                                                                    Exhibit 10.1

                               Disclosure Schedule

      1. as disclosed or reflected in filings made with the United States
Securities and Exchange Commission ("SEC")

      2. the payment of attorney's fees to Adorno & Yoss, P.A of no more than
$85,000

      3. the accrual of the Burckhardts' salaries

      4. the accrual of other employees' salaries owing to: Lew Morrison, Lewis
Tankersley, Scott Peterson, Mary Larson, Rosemary Russell, Brad Beatty, Drew
Eichelburger, Tom McCarthy, Denise Goins, Gary and Jan Lafferty and no more than
three additional individuals

      5. the termination of the purchase option under the F. B. Optical lease of
property in St. Stephen, Minnesota

      6. the termination of the TRI license agreement

      7. the circumstances surrounding the arbitration claim by Bluefin
Partners, an investor in the Company's PPM, against Jessup & Lamont, the
Company, and Linda Schwartz, a stockbroker

      8. the bulk sale of Cobra Vision inventory

      9. threat of shareholder litigation for nonregistration of securities sold
by Jessup & Lamont under a private placement memorandum pursuant to JL Collazo
letter

      10. Crossbow claim as vendor of eyeglass molds demand for approximately
$250,000 due and owing for period prior to October, 2003, as evidenced by that
certain letter from Stevens & Lee to Hermann Burckhardt, dated November 4, 2003,
and that certain letter from Stevens & Lee to Gary T. Lafferty, dated October 6,
2003.

      11. the proposed investment rescission referred to in that certain letter
from Blank Rome, LLP to Hermann Burckhardt, dated February 10, 2004

      12. the issuance of 25,000 Class A shares to Sunrise Securities
Corporation

      13. the issuance of any shares or rights to shares in connection with the
2003 loan to NexGen by Jessup & Lamont

<PAGE>

                                                                    Exhibit 10.1

                                    EXHIBIT D

                                     Notices

      If to the Burckhardts:            Hermann Burckhardt or ARB Investment
                                        Enterprises, Ltd.
                                        __________________________
                                        __________________________
                                        __________________________
                                        Facsimile: _______________

                                        Alberto Burckhardt
                                        __________________________
                                        __________________________
                                        __________________________
                                        Facsimile: _______________

                        Copy to:        Geoffrey S. Aaronson, Esq.
                                        Adorno & Yoss, P.A.
                                        2601 South Bayshore Drive
                                        Suite 1600
                                        Miami, Florida 33133

      if to the Company                 NexGen Vision, Inc.
                                        __________________________
                                        __________________________
                                        __________________________
                                        Facsimile: _______________

      If to Buyer                       JL Acquisitions Co., LLC
                                        650 Fifth Avenue
                                        New York, New York 10019
                                        Attention:_____________________
                                        Facsimile: _______________
<PAGE>

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

                               NEXGEN VISION, INC.
                        WARRANT TO PURCHASE COMMON STOCK
                                   May 4, 2004
                             Void After May 4, 2009

      THIS CERTIFIES THAT, for value received, Hermann Burckhardt, or his
permitted assigns (the "Holder"), is entitled to subscribe for and purchase at
the Exercise Price (defined below) from NexGen Vision, Inc., a Delaware
corporation (the "Company") 100,000 shares of Class A Common Stock of the
Company, par value $0.001 per share (the "Common Stock").

      1. Definitions. As used herein, the following terms shall have the
following respective meanings:

      "Exercise Period" shall mean the period commencing on the date of this
Warrant and extending until 12:00 midnight on May 4, 2009.

      "Exercise Price" shall mean $1.50 per share.

      "Exercise Shares" shall mean the shares of the Company's Common Stock
issuable upon exercise of this Warrant.

      2. Exercise of Warrant; Number of Shares.

      (a) The right to purchase the Exercise Shares represented by this Warrant
may be exercised in whole or in part at any time during the Exercise Period, by
delivery of the following to the Company at its address set forth in Section 10
herein (or at such other address as it may designate by notice in writing to the
Holder): (i) an executed Notice of Exercise substantially in the form attached
hereto as Exhibit A (the "Notice of Exercise"); (ii) payment of the aggregate
Exercise Price for the Exercise Shares as to which the Warrant is then being
exercised; and (iii) this Warrant.

      (b) Payment of the Exercise Price with respect to the Exercise Shares to
be purchased upon the exercise of all or any portion of the Warrant may, at the
election of the Holder, be made as follows: (i) by payment to the Company, in
cash, by check or wire transfer, of an amount equal to the Exercise Price
multiplied by the number of Exercise Shares being purchased; or (ii) by
surrender of the Warrant (together with a Notice of Exercise) to the Company in
exchange for a number of Exercise Shares equal to the product of (x) the number
of Exercise Shares as to which the Warrant is being exercised (as specified in
the Notice of Exercise) multiplied by (y) a fraction, the numerator of which is
the Current Market Price (as defined below) of the Common Stock less the
Exercise Price and the denominator of which is the Current Market Price.

      (c) As used herein, "Current Market Price" on any day shall mean the
average daily closing price for the ten trading days immediately preceding such
day. The closing price for any day shall be the last reported sales price
regular way or, in case no such reported sale takes place on such day, the mean
between the closing bid and ask price regular way, in either case on the
principal national securities

                                       1
<PAGE>

exchange (including, for this purpose, Nasdaq) on which the Company's Common
Stock is listed or admitted to trading or, if the Common Stock is not listed or
admitted to trading on any national securities exchange or Nasdaq, the highest
reported bid price as furnished by the National Association of Securities
Dealers, Inc. (the "NASD") through the OTC Bulletin Board or a similar
organization if the NASD is no longer reporting such information. If on any such
date the Common Stock is not quoted by any such organization, the fair value of
a share of Common Stock on such date, as determined in good faith by the Board
of Directors of the Company, whose determination shall be conclusive absent
manifest error, shall be used.

      (d) Upon the exercise of the rights represented by this Warrant, a
certificate or certificates for the Exercise Shares so purchased, registered in
the name of the Holder, shall be issued and delivered to the Holder within a
reasonable time (but no later than ten (10) days) after the rights represented
by this Warrant shall have been so exercised. The Holder shall be deemed to have
become the holder of record of the applicable Exercise Shares on the date on
which this Warrant was surrendered and payment of the Exercise Price was made,
irrespective of the date of delivery of such certificate or certificates, except
that, if the date of such surrender and payment is a date when the stock
transfer books of the Company are closed, the Holder shall be deemed to have
become the holder of such Exercise Shares at the close of business on the next
succeeding date on which the stock transfer books are open.

      (e) This Warrant may be exercised in part, and promptly (but no later than
ten (10) days) after the delivery hereof to the Company the Holder shall be
entitled to receive a new warrant, which shall be dated as of the date of this
Warrant and shall be in substantially the form hereof, covering the number of
shares in respect of which this Warrant shall not have been exercised.

      3. Covenants of the Company.

      (a) The Company covenants and agrees that all Exercise Shares that may be
issued upon the exercise of the rights represented by this Warrant will, upon
issuance, be validly issued and outstanding, fully paid and non-assessable, and
free from all taxes, liens, claims and encumbrances with respect to the issuance
thereof. The Company further covenants and agrees that the Company will, at all
times during the Exercise Period, have authorized and reserved, free from
preemptive rights, a sufficient number of shares of its Common Stock to provide
for the exercise of the rights represented by this Warrant. If at any time
during the Exercise Period the number of authorized but unissued shares of
Common Stock shall not be sufficient to permit exercise of this Warrant, the
Company will take such corporate action as may, in the opinion of its counsel,
be necessary to increase its authorized but unissued shares of Common Stock to
such number of shares as shall be sufficient for such purposes.

      (b) Except and to the extent waived or consented to by the Holder, the
Company will not, by amendment of its Certificate of Incorporation or through
any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms to be observed or
performed hereunder by the Company, but will at all times in good faith assist
in the carrying out of all the provisions of this Warrant.

      4. Representation and Covenant of Holder. (a) Holder hereby represents and
warrants to, and agrees with, the Company that the Warrant is, and any Exercise
Shares issued upon its exercise will be, purchased by Holder for his own account
and not with a view to the public distribution thereof and will not be
transferred except in a transaction registered or exempt from registration under
the Securities Act of 1933, as amended (the "Securities Act") and a legend to
such effect as set forth in Section 9 shall be noted on the certificates
representing such Exercise Shares.

                                       2
<PAGE>

      5. Adjustments. (a) In the event of changes in the outstanding Common
Stock of the Company by reason of stock dividends, distributions, split-ups,
recapitalizations, reclassifications, combinations, reverse splits or exchanges
of shares, separations, reorganizations, liquidations or the like, the number
and class of shares available under the Warrant in the aggregate and the
Exercise Price shall be correspondingly adjusted to give the Holder on exercise,
for the same aggregate Exercise Price, the total number, class and kind of
shares as the Holder would have owned had the Warrant been exercised prior to
the event and had the Holder continued to hold such shares until after the event
requiring adjustment.

      (b) Whenever there shall be an adjustment as provided in Section 5(a), the
Company shall promptly cause written notice thereof to be sent to the Holder,
which notice shall be accompanied by an officer's certificate setting forth the
number of Exercise Shares purchasable upon the exercise of this Warrant and the
Exercise Price after such adjustment and setting forth a brief statement of the
facts requiring such adjustment and the computation thereof, which officer's
certificate shall be conclusive evidence of the correctness of any such
adjustment absent manifest error.

      (c) The form of this Warrant need not be changed because of any adjustment
in the number of Exercise Shares subject to this Warrant.

      6. Business Combinations.

      (a) In the event of, at any time during the Exercise Period, (i) a sale,
lease or other disposition of all or substantially all of the Company's assets,
or (ii) the Company's merger into or consolidation with any other corporation or
other entity, or any other corporate reorganization, in which the holders of the
Company's outstanding voting stock immediately prior to such transaction own,
immediately after such transaction, securities representing less than fifty
percent (50%) of the voting power of the Company or other entity surviving such
transaction, then and in the case of each such transaction, proper provision
shall be made so that, upon the basis and the terms and in the manner provided
in this Warrant, the Holder of this Warrant, upon the exercise hereof at any
time after the consummation of such transaction, shall be entitled to receive
(at the aggregate Exercise Price then in effect), in lieu of the Common Stock or
other securities issuable upon such exercise prior to such consummation, the
highest amount of securities, cash or other property to which the Holder would
actually have been entitled as a shareholder of the Company upon such
consummation if the Holder had exercised the rights represented by this Warrant
immediately prior thereto (subject to any applicable further adjustments
subsequent to such consummation as nearly equivalent as possible to the
adjustments provided in Section 5(a)).

      (b) In the event of any transaction described in Section 6(a), each person
(other than the Company) which may be required to deliver any stock, securities,
cash or property upon the exercise of this Warrant as provided herein, shall
assume in writing (i) the obligations of the Company under this Warrant (and, if
the Company shall survive the consummation of such transaction, such assumption
shall be in addition to, and shall not release the Company from, any continuing
obligations of the Company under this Warrant) and (ii) the obligation to
deliver to the Holder such shares of stock, securities, cash or property as, in
accordance with the foregoing provisions of this Section 6, the Holder may be
entitled to receive.

      7. Transfer.

      (a) Neither the Warrant nor the Exercise Shares have been registered under
the Securities Act. The Holder will not transfer this Warrant or the Exercise
Shares unless (i) there is an effective registration statement covering such
Warrant or Exercise Shares, as the case may be, under the Securities

                                       3
<PAGE>

Act and applicable state securities laws; or (ii) the proposed transfer is
exempt from registration under the Securities Act and under all applicable state
securities laws.

      (b) Prior to any proposed transfer that satisfies the requirements of
Section 7(a)(ii) other than a transaction effected pursuant to Rule 144 under
the Securities Act, and as a condition thereto, the Holder will deliver to the
Company (i) an agreement by the proposed transferee that the restrictive
investment legend substantially similar to that set forth in Section 9 be placed
on the certificate or certificates representing the securities acquired by such
transferee; and (ii) an agreement by such transferee that the Company may place
a "stop transfer order" with its transfer agent or registrar with respect to the
Warrant and the Exercise Shares.

      (c) This Warrant may only be assigned or transferred in accordance with
the provisions of this Section 7. Upon surrender of this Warrant to the Company
together with a duly executed copy of an Assignment Form substantially in the
form attached hereto as Exhibit B, and upon compliance with the foregoing
provisions, the Company shall without charge, execute and deliver a new warrant
in the name of the assignee named on such instrument of assignment, and this
Warrant shall promptly be cancelled. An assignment, transfer, pledge,
hypothecation or other disposition of this Warrant attempted contrary to the
provision of this Warrant, or any levy of execution, attachment or other process
attempted upon this Warrant, shall be null and void and without effect.

      8. Notice of Certain Proposed Events. In case at any time the Company
shall publicly propose:

            (a) to pay any dividend or make any distribution on shares of Common
Stock in shares of Common Stock or make any other distribution to all holders of
Common Stock; or

            (b) to issue any rights, warrants, or other securities to all
holders of Common Stock entitling them to purchase any additional shares of
Common Stock or any other rights, warrants, or other securities; or

            (c) to effect any consolidation, merger, sale, reorganization or
reclassification described in Section 6; or

            (d) to effect any liquidation, dissolution, or winding-up of the
Company; or

            (e) to subdivide the outstanding Common Stock or combine the
outstanding Common Stock into a smaller number of shares;

then, and in any one or more of such cases, the Company shall give written
notice thereof to the Holder, mailed at least (i) 10 business days prior to the
date as of which the holders of record of shares of Common Stock entitled to
receive any such dividend, distribution, rights, warrants, or other securities
are to be determined, or (ii) 20 business days prior to the date on which any
such combination, subdivision, consolidation, merger, sale, reorganization or
reclassification, liquidation, dissolution, or winding-up is expected to become
effective, and the date as of which it is expected that holders of record of
shares of Common Stock shall be entitled to exchange their shares or warrants
for securities or other property, if any, deliverable in connection with any
such event.

      9. Legend. The certificate or certificates evidencing any securities
issued upon exercise of the Warrant shall bear the following legend:

                                       4
<PAGE>

      THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND MAY NOT BE TRANSFERRED
      EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
      AND SUCH REGISTRATION OR QUALIFICATION AS MAY BE REQUIRED UNDER THE
      SECURITIES LAWS OF ANY STATE OR (ii) AN EXEMPTION FROM REGISTRATION UNDER
      THE ACT OR SUCH SECURITIES LAWS.

      10. Notices. All notices, demands and other communications which may or
are required to be given or made by either party to the other in connection with
this Warrant shall be in writing (including telex, fax or other similar writing)
and shall be deemed to have been duly given or made: (a) if sent by registered
or certified mail, five (5) days after the posting thereof with first class
postage attached; (b) if sent by hand or overnight delivery, upon the delivery
thereof (with confirmation of delivery received); and (c) if sent by telex or
fax, upon confirmation of receipt of such telex or fax, in each case addressed
to the respective parties as follows:

                  if to the Company:

                             NexGen Vision, Inc.

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

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

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

                             Attention:_______________
                             Fax No.:________________

                  if to the Holder:

                             Hermann Burckhardt
                             9796 NW 51 Terrace
                             Doral, Florida 33178

                    with a copy to:

                             Geoffrey S. Aaronson, Esq.
                             Adorno & Yoss, P.A.
                             2601 South Bayshore Drive
                             Suite 1600
                             Miami, Florida 33133
                             Fax: 305.675.3880

      11. Taxes. The issuance of any shares or warrants or other securities upon
the exercise of this Warrant, and the delivery of certificates or other
instruments representing such shares, warrants or other securities, shall be
made without charge to the Holder for any tax or other charge solely in respect
of such issuance. The Company shall not, however, be required to pay any tax
which may be payable in respect of any transfer involved in the issue and
delivery of any certificate in a name other than that of the Holder, and the
Company shall not be required to issue or deliver any such certificate unless
and until the person or persons requesting the issue thereof shall have paid to
the Company the amount of such tax or shall have established to the satisfaction
of the Company that such tax has been paid.

                                       5
<PAGE>

      12. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost,
stolen, mutilated or destroyed, the Company may, on such terms as to indemnity
or otherwise as it may reasonably impose (which shall, in the case of a
mutilated Warrant, include the surrender thereof), issue a new Warrant of like
denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed.
Any such new Warrant shall constitute an original contractual obligation of the
Company, whether or not the allegedly lost, stolen, mutilated or destroyed
Warrant shall be at any time enforceable by anyone.

      13. Governing Law. This Warrant and all rights, obligations and
liabilities hereunder shall be governed by and construed in accordance with the
laws of the State of Delaware. IN WITNESS WHEREOF, the parties have caused this
Warrant to be executed as of the date first written above.

                                       NEXGEN VISION, INC.

                                       By:_________________________________
                                       Name:_______________________________
                                       Title:______________________________

                                       HOLDER

                                       ____________________________________
                                       Hermann Burckhardt

                                       6
<PAGE>

                                    EXHIBIT A

                               NOTICE OF EXERCISE

                             TO NEXGEN VISION, INC.

The undersigned hereby exercises his rights to purchase Exercise Shares covered
by the within Warrant and hereby (i) tenders payment herewith in the amount of
$______________ or (ii) surrenders this Warrant in such number of Exercise
Shares as shall equal $______________, in payment of the Exercise Price in
accordance with the terms thereof, and requests that certificates for such
securities be issued in the name of, and delivered to:

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

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

--------------------------------------------------------------------------------
(Print Name, Address and Social Security or Tax Identification Number)

and, if such number of Exercise Shares shall not be all the Exercise Shares
covered by the within Warrant, that a new Warrant for the balance of the
Exercise Shares covered by the within Warrant be registered in the name of, and
delivered to, the undersigned at the address stated below.

By:________________________                  Address:  ________________________
Name:______________________                            ________________________
Date:______________________                            ________________________

<PAGE>

                                    EXHIBIT B

                             WARRANT ASSIGNMENT FORM

            FOR VALUE RECEIVED, ____________________________ hereby sells,
assigns, and transfers unto _________________________________ his right to
purchase up to _________ shares of Common Stock represented by this Warrant and
does hereby irrevocably constitute and appoint _______________________________
as attorney to transfer the same on the books and records of the Company, with
full power of substitution.

Dated:_____________________

                                           _______________________________Exhibit 10.1

                          EASY GARDENER PRODUCTS, LTD.

                          (A Texas Limited Partnership)

                              AMENDED AND RESTATED
                          LIMITED PARTNERSHIP AGREEMENT

              THESE PARTNERSHIP INTERESTS HAVE NOT BEEN REGISTERED
                UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR
             PURSUANT TO THE PROVISIONS OF ANY STATE SECURITIES ACT

                 CERTAIN RESTRICTIONS ON TRANSFERS OF INTERESTS
                              ARE SET FORTH HEREIN

                                      -1-
<PAGE>

                          EASY GARDENER PRODUCTS, LTD.

                              AMENDED AND RESTATED
                          LIMITED PARTNERSHIP AGREEMENT

      This Amended and Restated Limited Partnership Agreement of EASY GARDENER
PRODUCTS, LTD. dated effective as of the 29th day of October, 2003, is made and
entered into by and among EG Product Management, L.L.C., a Texas limited
liability company, as General Partner and EG, L.L.C., a Nevada limited liability
company, as Limited Partner.

      WHEREAS, the parties entered into a partnership agreement dated February
27, 2003, and now desire to enter into this Agreement in order to amend and
restate such agreement.

      NOW, THEREFORE, in consideration of the mutual promises made herein, the
parties, intending to be legally bound, hereby agree as follows:

            ARTICLE 1 Definitions

      The definitions used in this Agreement shall, unless the context otherwise
requires, have the meanings specified in this Article 1.

      1. "Act" means the Texas Revised Limited Partnership Act, as amended from
time to time.

      2. "Additional Capital Contribution" means, as to any Partner, any amount
contributed, required to be contributed or deemed to be contributed to the
capital of the Partnership by the Partner pursuant to Section 3.2.

      3. "Adjusted Capital Account Deficit" means, with respect to any Partner,
the deficit balance, if any, in such Partner's Capital Account as of the end of
the relevant Fiscal Year, after giving effect to the following adjustments:

            (a) Credit to such Capital Account any amounts which such Partner is
      deemed to be obligated to restore pursuant to Treasury Regulations Section
      1.704-1(b)(2)(ii)(c), 1.704-2(g)(1) and 1.704-2(i)(5); and

                                      -0-
<PAGE>

            (b) Debit to such Capital Account the items described in Treasury
      Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6).

      The foregoing definition of "Adjusted Capital Account Deficit" is intended
to comply with the provisions of Treasury Regulations Section
1.704-1(b)(2)(ii)(d) and 1.704-2, and shall be interpreted consistently
therewith.

      4. "Agreement" means this Amended and Restated Limited Partnership
Agreement of EASY GARDENER PRODUCTS, LTD.

      5. "Available Funds" means Partnership cash on hand, as of the date of the
computation, including (without limitation) cash derived from Capital
Contributions of the Partners made pursuant to the terms of this Agreement and
all Partnership operating income.

      6. "Book Value" means, with respect to any asset, the asset's adjusted
basis for federal income tax purposes, except (a) the initial Book Value of any
asset contributed by a Partner to the Partnership shall be the fair market value
of such asset, as determined by the General Partner; (b) the Book Value of all
Partnership assets shall be adjusted in the event of a revaluation as provided
in Section 3.6(d); (c) the Book Value of any Partnership asset distributed to
any Partner shall be the fair market value of such asset on the date of
distribution as determined by the General Partner; and (d) such Book Value shall
be adjusted by the Depreciation taken into account with respect to such asset
for purposes of computing Profits and Losses.

      7. "Capital Account" means with respect to any Partner, the account
maintained for such Partner in a manner which the General Partner determines is
in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv).

      8. "Capital Contributions" means the total of all capital contributions of
the Partners pursuant to Sections 3.1 and 3.2, including, but not limited to,
the Initial Capital Contribution and the Additional Capital Contributions.

      9. "Code" means the Internal Revenue Code of 1986, as amended from time to
time.

      10. "Depreciation" means, for each Fiscal Year or other period, an amount
equal to the depreciation, amortization or other cost recovery deduction
allowable with respect to an asset for such year or other period, except that if
the Book Value of an asset differs from its adjusted basis for federal income
tax purposes at the beginning of such year or other period (as a result of
property

                                      -1-
<PAGE>

contributions or adjustments to such values), Depreciation shall be adjusted as
necessary so as to be an amount which bears the same ratio to such beginning
Book Value as the federal income tax depreciation, amortization, or other cost
recovery deduction for such year or other period bears to such beginning
adjusted tax basis; provided, however, that if the federal income tax
depreciation, amortization, or other cost recovery deduction for such year or
other period is zero, Depreciation for such year or other period shall be
determined with reference to such beginning Book Value using any reasonable
method selected by the General Partner.

      11. "Distributable Cash Flow" means cash available to the Partnership from
any source (other than proceeds of liquidation) after (i) paying the ordinary
and necessary expenses of the Partnership, (ii) paying any debts or liabilities
of the Partnership to the extent required under any agreement with any lender or
creditor (other than a Partner) and (iii) establishing reserves to meet current
or reasonably expected obligations of the Partnership to the extent that the
General Partner shall determine such reserves to be necessary or advisable.

      12. "Fiscal Year" means the fiscal year of the Partnership as established
in Section 8.2 hereof.

      13. "General Partner" means EG Product Management, L.L.C., a Texas limited
liability company, or any successor in such capacity.

      14. "Initial Capital Contribution" means, as to any Partner, any amount
contributed or required to be contributed to the capital of the Partnership by a
Partner pursuant to Section 3.1.

      15. "Limited Partner" or "Limited Partners" means EG, L.L.C., a Nevada
limited liability company, or any successor or successors to all or part of any
such interest, or any additional limited partner of the Partnership, each in the
capacity as a limited partner of the Partnership.

      16. "Majority in Interest" means with respect to any referenced group of
Partners, a combination of any such Partners who, in the aggregate, own more
than fifty percent (50%) of the aggregate of the Sharing Ratios of such
Partners.

      17. "Minimum Gain" means, with respect to all nonrecourse liabilities of
the Partnership, the minimum amount of gain that would be realized by the
Partnership if the Partnership disposed of the Partnership property subject to
such liability in full satisfaction thereof computed in accordance with Treasury
Regulations Section 1.704-2(d).

                                      -2-
<PAGE>

      18. "Minimum Gain Share" means, for each Partner, such Partner's share of
Minimum Gain for the Fiscal Year (after taking into account any decrease in
Minimum Gain for such year), such share to be determined under Treasury
Regulations Section 1.704-2(g).

      19. "Nonrecourse Deductions" means, for each Fiscal Year or other period,
an amount of Partnership deductions that are characterized as "nonrecourse
deductions" under Treasury Regulations Section 1.704-2(c).

      20. "Officer" means any person appointed by the General Partner to serve
as an officer of the Partnership in accordance with Article 7.

      21. "Partner" means the General Partner or one of the Limited Partners,
and "Partners" means such partners collectively.

      22. "Partner Nonrecourse Debt" means any nonrecourse debt (as defined in
Treasury Regulations Section 1.704-2(b)(4)) of the Partnership for which any
Partner bears the economic risk of loss, in accordance with Treasury Regulations
Sections 1.704-2(b)(4) and 1.752-2.

      23. "Partner Nonrecourse Debt Minimum Gain" means, for each Partner, the
amount of Minimum Gain for the Fiscal Year or other period attributable to such
Partner's Partner Nonrecourse Debt, determined in accordance with Treasury
Regulations Section 1.704-2(i)(3).

      24. "Partner Nonrecourse Deductions" means any Losses or other losses or
deductions of the Partnership that must be allocated to a Partner who bears the
economic risk of loss for the partner nonrecourse liability to which the Losses
or other losses or other deductions relate, determined in accordance with
Treasury Regulations Section 1.704-2(i)(1).

      25. "Partnership" means the Texas limited partnership formed pursuant to
this Agreement.

      26. "Partnership Interest" means, with respect to any Partner, all of such
Partner's ownership interest as a limited partner or general partner in the
Partnership.

                                      -3-
<PAGE>

      27. "Profits" and "Losses" means, for each Fiscal Year or other period, an
amount equal to the Partnership's taxable income or loss for such year or
period, determined in accordance with Code Section 703(a) (for this purpose, all
items of income, gain, loss or deduction required to be stated separately
pursuant to Code Section 703(a)(1) shall be included in taxable income or loss),
with the following adjustments:

            (a) Any income of the Partnership that is exempt from federal income
      tax and not otherwise taken into account in computing Profits or Losses
      pursuant to this definition shall be added to such taxable income or loss;

            (b) Any expenditures of the Partnership described in Code Section
      705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant
      to Treasury Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise
      taken into account in computing Profits or Losses pursuant to this
      definition, shall be subtracted from such taxable income or loss;

            (c) Gain or loss resulting from any disposition of Partnership
      property with respect to which gain or loss is recognized for federal
      income tax purposes shall be computed by reference to the Book Value of
      the property disposed of, notwithstanding that the adjusted tax basis of
      such property differs from such Book Value;

            (d) In lieu of the depreciation, amortization and other cost
      recovery deductions taken into account in computing such taxable income or
      loss, there shall be taken into account Depreciation for such Fiscal Year
      or other period, computed in accordance with the definition of
      "Depreciation" herein; and

            (e) Notwithstanding any other provision of this definition, any
      items which are specifically allocated pursuant to Section 5.2(c) shall
      not be taken into account in computing Profits and Losses.

      28. "Sharing Ratio" means the percentage of ownership interest of a
Partner in the Partnership at any particular time.

      29. "Treasury Regulations" means the Income Tax Regulations promulgated
under the Code, as such regulations may be amended from time to time (including
corresponding provisions of succeeding regulations).

                                      -4-
<PAGE>

            ARTICLE 2 Organization

      Section 2.1. Formation

      The parties hereto hereby form a Texas limited partnership under and
pursuant to the provisions of the Act.

      Section 2.2. Name, Place of Business and Office

      (a) The Partnership shall be conducted under the name and style of EASY
GARDENER PRODUCTS, LTD., although such business may be conducted under any other
name to the extent required by local law. The Partnership shall maintain its
principal office at the following address: 3022 Franklin Avenue, Waco, Texas
76710. The General Partner may at any time change the location of the
Partnership's office and may establish additional offices, if it deems it
advisable. The General Partner shall promptly give the Partners written notice
of any change in location of the principal office of the Partnership.

      (b) Shelia Jones shall serve as agent for service of process on the
Partnership. The General Partner shall timely record an appropriate certificate
of limited partnership in the proper records in the State of Texas and shall
take such steps as are necessary to qualify the Partnership to conduct business
in other states, as required by local law.

      Section 2.3. Purposes and Character of Business; Powers

      (a) The purposes and character of the business of the Partnership are to
transact any or all lawful business for which a partnership may be organized
under the Act, including but not limited to:

            (1) to acquire, own, maintain, develop, operate, sell, or dispose of
      lawn and garden products manufacturing and distribution business;

            (2) to own and operate any kind of business;

            (3) to obtain financing for the operations of the Partnership's
      business or for the acquisition of real or personal property in accordance
      with the terms of this Agreement;

                                      -5-
<PAGE>

            (4) to sell, exchange, lease, sublease, exchange, transfer or
      otherwise dispose of all or any portion of any real personal property;

            (5) to hold, manage and operate all or any portion of the business
      assets;

            (6) to form subsidiary corporations, partnerships, joint ventures or
      limited liability companies in connection with any of the foregoing
      activities; and

            (7) to do any and all things necessary or desirable to carry out the
      foregoing activities and any other activity contemplated by this
      Agreement.

      (b) The Partnership shall have any and all powers which are necessary or
desirable to carry out the purposes and business of the Partnership. The
Partnership shall carry out the foregoing activities pursuant to the
arrangements set forth in this Agreement. The Partnership shall not engage in
any other business or activity.

      Section 2.4. Term

      The Partnership term shall commence on the effective date of this
Agreement and shall continue in full force and effect until December 31, 2052,
unless dissolved earlier pursuant to the provisions hereof.

            ARTICLE 3 Partnership Capital

      Section 3.1. Initial Capital Contributions of the Partners

      Each of the Partners shall contribute cash or other property to the
Partnership in the amount set forth as the Initial Capital Contribution of such
Partner on Schedule 1 attached hereto and hereby made a part hereof. Such cash
and property shall be the Initial Capital Contributions of the Partners to the
Partnership.

                                      -6-
<PAGE>

      Section 3.2. Additional Capital Contributions of the Partners

      (a) If the General Partner reasonably determines that Available Funds are
insufficient to satisfy projected needs of the Partnership, then in addition to
the Initial Capital Contribution of the Partners required to be made pursuant to
Section 3.1, the General Partner may require that the Partners make one or more
additional capital contributions to the Partnership. Each Partner shall make an
Additional Capital Contribution to the Partnership within ten (10) days
following receipt of the demand therefor by the General Partner, pro rata in
accordance with their respective Sharing Ratios.

      (b) If any Partner makes a payment directly to a creditor or another
Partner in satisfaction of any indebtedness of the Partnership or any indemnity,
guaranty or contribution obligation of such partner in respect of Partnership
indebtedness, or if any collateral interest granted by such Partner to such
creditor or other Partner to secure any such indebtedness shall be foreclosed
and the proceeds of such foreclosure shall be applied to reduce or satisfy such
indebtedness and any foreclosure-related expenses, such Partner shall be deemed
to have made a permitted Additional Capital Contribution equal to such amount
and shall receive a credit to its Capital Account in the amount thereof.

      Section 3.3. Partnership Capital

      (a) Except as may be otherwise specifically provided in this Agreement, no
Partner shall be paid interest on any Capital Contribution to the Partnership.

      (b) No Partner shall have the right to withdraw all or any part of its
Capital Contribution or to receive any return on any portion of its Capital
Contribution, except as may be otherwise specifically provided in this
Agreement.

      (c) Under circumstances involving a return of any Capital Contribution, no
Partner shall have the right to receive property other than cash.

      Section 3.4. Liability of Partners

      (a) No Limited Partner shall be liable for the debts, liabilities,
contracts or any other obligation of the Partnership, except to the extent
expressly provided herein or in the Act. No Partner shall be liable for the
debts or liabilities of any other Partner.

                                      -7-
<PAGE>

      (b) No Partner shall be required to contribute to the capital of, or loan,
the Partnership any funds other than as expressly required in this Agreement.

      (c) The General Partner shall not be liable for the return of all or any
portion of the Capital Contributions of any Partner.

      Section 3.5. Loans by Partners

      Subject to obtaining any approvals required under this Agreement for the
Partnership to borrow funds, any Partner may (but shall not be obligated to) at
any time, upon obtaining the consent of the General Partner and a Majority in
Interest of the Limited Partners, loan money to the Partnership to finance
Partnership operations, to pay the debts and obligations of the Partnership, or
for any other Partnership purpose. If any Partner lends funds to the
Partnership, such Partner shall be entitled to receive interest on such loan at
an interest rate to be agreed upon by such Partner and each of the Partners.

      Section 3.6. Capital Accounts

      (a) A Capital Account shall be established and maintained for each
Partner.

      (b) A Partner's Capital Account shall be credited with (i) the amount of
cash and the initial Book Value of any property contributed by such Partner to
the Partnership, (ii) such Partner's allocable share of Profits, income and gain
and (iii) the amount of any Partnership liabilities that are expressly assumed
by such Partner or that are secured by any Partnership property distributed to
such Partner.

      (c) A Partner's Capital Account shall be debited with (i) the amount of
cash and the Book Value of any Partnership property distributed to such Partner
pursuant to any provision of this Agreement, (ii) such Partner's allocable share
of Losses, deductions and other losses and (iii) the amount of any liabilities
of such Partner that are expressly assumed by the Partnership or that are
secured by any property contributed by such Partner to the Partnership.

      (d) Upon the occurrence of certain events (as described in Treasury
Regulations Sections 1.704-1(b)(2)(iv)(f), 1.704-1(b)(4) and 1.704-2), the
Partners may agree to increase or decrease the Capital Accounts of the Partners
to reflect a revaluation of Partnership property on the Partnership's books.

                                      -8-
<PAGE>

      (e) The Capital Account of each Partner shall be determined after giving
effect to all transactions which have been effected prior to the time when such
determination is made giving rise to the allocation of Profits and Losses and to
all contributions and distributions theretofore made. Any person who acquires a
Partnership Interest directly from a Partner, or whose Partnership Interest
shall be increased by means of a transfer to it of all or part of the interest
of another Partner, shall have a Capital Account which includes the Capital
Account balance of the Partnership Interest so acquired or transferred.

      (f) In the event that any Partner makes a loan to the Partnership, such
loan shall not be considered a contribution to the capital of the Partnership
and shall not increase the Capital Account of the lending Partner. Repayment of
such loans shall not be deemed withdrawals from the capital of the Partnership.

      (g) Any fees, salary or similar compensation payable to a Partner pursuant
to this Agreement shall be deemed a guaranteed payment for federal income tax
purposes and not a distribution to such Partner for such purposes. Such payments
to a Partner shall not reduce the Capital Account of such Partner, except to the
extent of its distributive share of any Partnership Losses or other downward
capital adjustment resulting from such payment.

      (h) From time to time the General Partner may make such modifications to
the manner in which the Capital Accounts are computed to comply with Treasury
Regulations Sections 1.704-1(b) and 1.704-2 provided that such modification is
not likely to have a material effect on the amounts distributable to any Partner
pursuant to this Agreement.

      (i) The foregoing provisions and the other provisions of this Agreement
relating to the maintenance of Capital Accounts are intended to comply with
Treasury Regulations Sections 1.704-1(b) and 1.704-2, and shall be interpreted
and applied in a manner consistent with such Treasury Regulations.

      (j) The General Partner shall be obligated to restore a deficit balance in
its Capital Account upon dissolution of the Partnership or upon liquidation of
its interest in the Partnership, whichever is earlier. No Limited Partner shall
be obligated to restore a deficit balance in its Capital Account.

                                      -9-
<PAGE>

      Section 3.7. Sharing Ratios

      The initial Sharing Ratio of each Partner is set forth opposite its
respective name on Schedule 1, attached hereto and hereby made a part hereof.

      Section 3.8. No Right to Priority of Return of Capital

      Except as otherwise expressly provided herein, no Partner shall have any
priority over any other Partner as to the return of its contributions to capital
or as to compensation by way of income.

            ARTICLE 4 Rights, Powers and Duties of the General Partner

      Section 4.1. Management and Control of the Partnership

      The General Partner shall have all the rights, powers and obligations of a
general partner of a limited partnership under the Act. Except as otherwise
provided in Section 4.3, the General Partner shall have the right and obligation
to manage and control the business and affairs of the Partnership and to make
the following decisions on behalf of the Partnership:

      (a) to own, manage, operate, sell, exchange, lease or otherwise transfer
the assets of the Partnership, whether or not in the ordinary course of
business;

      (b) to borrow money on behalf of the Partnership and to renew, extend,
modify, rearrange, increase or refinance Partnership borrowings from time to
time;

      (c) to mortgage, pledge, assign, encumber or grant security interests in
Partnership assets, revenues and/or income;

      (d) to institute, prosecute, defend and settle any legal, arbitration or
administrative actions or proceedings on behalf of or against the Partnership;

      (e) to acquire, lease, develop, hold, sell or improve any real or personal
property or any interest therein;

                                      -10-
<PAGE>

      (f) to hire and terminate employees of the Partnership and engage the
services of attorneys, consultants, accountants and other independent
contractors;

      (g) to appoint, elect, remove and supervise the activities of the Officers
of the Partnership and to designate appropriate compensation to be paid to each
such Officer during his or her term, of office;

      (h) to collect all payments due and owing to the Partnership;

      (i) to pay all expenses, debts and obligations of the Partnership, at such
time or times and from any source of funds of the Partnership as the General
Partner deems necessary or desirable;

      (j) to execute and deliver such documents on behalf of the Partnership as
the General Partner may deem necessary or desirable for the Partnership's
purposes and business;

      (k) to perform, or cause to be performed, all the Partnership's
obligations under any agreement (including without limitation any loan
documents) to which the Partnership or any nominee of the Partnership is a
party, except to the extent such obligations may be inconsistent with other
obligations of the General Partner under this Agreement;

      (l) to obtain and maintain any and all types of insurance coverage on the
assets and business of the Partnership and to protect the General Partner
against liability from third parties in such amounts as the General Partner may
deem necessary or desirable;

      (m) to pay all taxes, assessments, and other impositions applicable to
Partnership assets and undertake when appropriate any action or proceeding
seeking to reduce such taxes, assessments or other impositions;

      (n) to determine the timing and amount of any distributions to the
Partners, except as otherwise provided for in this Agreement;

      (o) to open and maintain bank accounts for the deposit of Partnership
funds, with withdrawals to be made upon such signature or signatures as the
General Partner may designate;

                                      -11-
<PAGE>

      (p) to make such elections as are necessary or desirable pursuant to the
Code;

      (q) to act as "tax matters partner" for the Partnership in accordance with
the applicable provisions of the Code;

      (r) to cause the management, operation and sale of the assets of the
Partnership, and all other Partnership activities, to be performed in accordance
with applicable laws; and

      (s) to perform any and all acts, except as otherwise set forth in Section
4.3, reasonably deemed by the General Partner as necessary or desirable to
conduct the business and affairs of the Partnership.

      Section 4.2. Authority of the General Partner

      Any person dealing with the Partnership or the General Partner may rely
upon a certificate signed by the General Partner, thereunto duly authorized,
concerning:

      (a) the identity of the General Partner or any other Partner;

      (b) the existence or nonexistence of any fact or facts that constitute
conditions precedent to acts by the General Partner or in any other manner
germane to the affairs of the Partnership;

      (c) the person or persons who are authorized to execute and deliver any
instrument or document of the Partnership; or

      (d) any act or failure to act by the Partnership or concerning any other
matter whatsoever involving the Partnership, or any Partner as it regards
Partnership business.

      Section 4.3. Restrictions on the Authority of the General Partner

      Notwithstanding anything to the contrary contained in Section 4.1, without
the consent of a Majority in Interest of the Limited Partners, the General
Partner shall not have the power or authority:

                                      -12-
<PAGE>

      (a) to dissolve and wind up the Partnership;

      (b) to admit one or more additional or substituted Partners;

      (c) to do any act in contravention of this Agreement; or

      (d) to do any act that would make it impossible to carry out the purposes
and business of the Partnership, as set forth in Section 2.3.

      Notwithstanding anything to the contrary contained herein, the General
Partner shall be prohibited from taking any action which would cause a third
party reasonably to believe that any Limited Partner is a general partner of the
Partnership.

      Section 4.4. Reimbursement of Expenses and Compensation of the General
Partner

      (a) The General Partner may be paid compensation for its services rendered
in managing the business and affairs of the Partnership in an amount agreed upon
by the General Partner and a Majority in Interest of the Limited Partners.

      (b) Each Partner shall be entitled to reimbursement by the Partnership
from time to time for all reasonable out-of-pocket expenses which are incurred
by such Partner in connection with the business and affairs of the Partnership.

      Section 4.5. Devotion of Time

      The General Partner shall devote such time, services and efforts as may be
reasonably necessary for the proper furtherance, management, operation,
maintenance and care of the Partnership business and properties. The General
Partner shall not be required to devote its entire time to the business of the
Partnership.

      Section 4.6. Indemnification of the General Partner and Officers

      (a) (b) To the fullest extent allowed by the Act and other applicable law,
as amended from time to time, the Partnership shall advance expenses to and
indemnify the General Partner and Officers.

                                      -13-
<PAGE>

      (c) The scope of the indemnification provided in this Section shall not be
greater than that permitted pursuant to the provisions of Article 11 of the Act,
and such provisions of the Act are incorporated herein in their entirety. The
satisfaction of any indemnification under this Section shall be from and limited
to Partnership assets, including insurance proceeds, if any, and no Limited
Partner shall have any personal liability on account thereof.

      Section 4.7. Management by Limited Partners

      The Limited Partners shall not participate in the management or business
of the Partnership, use its name in the Partnership's business or perform any
actions prohibited to limited partners under the laws of the State of Texas or
the laws of any other jurisdiction where the Partnership is qualified to conduct
business. The Limited Partners shall not have the power to represent, act for,
sign for or bind the General Partner or the Partnership. Each Limited Partner
hereby consents to the exercise by the General Partner of the powers and
authority conferred on the General Partner by this Agreement.

      Section 4.8. Rights of Competition

      Each Partner, in its individual capacity or otherwise, and their
respective principals and affiliates, shall be free to engage in conduct or
participate in any business or activity whatsoever without any accountability,
liability, or obligation whatsoever to the Partnership or to any other Partner.
Any competing business or activity of a Partner may be undertaken with or
without notice to or participation therein by any other Partner. Each Partner
and the Partnership hereby waive any right or claim it may have against each
other Partner with respect to any competing business or activity or the income
or profits therefrom.

      Section 4.9. Transactions with Related Parties

      The General Partner may agree, contract or arrange with itself or any of
its Affiliates in the name and on behalf of the Partnership, for the performance
of services for the Partnership, and the payment of compensation therefor, in
carrying out the business of the Partnership as if such parties were independent
contractors, provided that the compensation for such services shall be (a) at
rates comparable to the charges made to third parties for rendering comparable
services in the geographical area where such services are performed and (b) paid
only for actual services rendered to the Partnership.

                                      -14-
<PAGE>

            ARTICLE 5 Distributions and Allocations

      Section 5.1. Distributions

      Distributions shall be made to the Partners, pro rata, at such times as
the General Partner shall determine, in accordance with such Partners'
respective Sharing Ratios, determined as of the date of distribution.

      Section 5.2. Allocations of Profits and Losses

      (a) Profits. Except as provided in Sections 5.2(c) and 5.2(d), Profits for
any Fiscal Year will be allocated in the following order:

            (1) First, to each Partner until the cumulative Profits allocated to
      such Partner under this Section 5.2(a)(1) equals the cumulative Losses
      allocated to such Partner under Section 5.2(b)(2) for all prior periods;
      and

            (2) The balance, if any, to the Partners in proportion to their
      respective Sharing Ratios.

      (b) Losses. Except as provided in Section 5.2(c) and 5.2(d), Losses for
any Fiscal Year will be allocated in the following order:

            (1) First, to each Partner until the cumulative Losses allocated to
      such Partner under this Section 5.2(b)(1) equals the cumulative Profits
      allocated to such Partner under Section 5.2(a)(2) for all prior periods;
      and

            (2) The balance, if any, to the Partners in proportion to their
      respective Sharing Ratios.

      (c) Special Allocations. Except as otherwise provided in this Agreement,
the following special allocations will be made in the following order and
priority:

            (1) Partnership Minimum Gain Chargeback. Notwithstanding any other
      provision of this Section, if there is a net decrease in Partnership
      Minimum Gain during any taxable year or other period for which allocations
      are made, the Partners will be specially

                                      -15-
<PAGE>

      allocated items of Partnership income and gain for that period (and, if
      necessary, subsequent periods). The amount allocated to each Partner under
      this Section 5.2(c)(1) shall be an amount equal to such Partner's share of
      the net decrease in Partnership Minimum Gain during such year or other
      period determined in accordance with Treasury Regulations Section
      1.704-2(g)(2). This Section 5.2(c)(1) is intended to comply with the
      partnership minimum gain chargeback requirements of the Treasury
      Regulations and the exceptions thereto and will be interpreted
      consistently therewith.

            (2) Partner Nonrecourse Debt Minimum Gain Chargeback.
      Notwithstanding any other provision of this Section (other than Section
      5.2(c)(1) which shall be applied first), if there is a net decrease in
      Partner Nonrecourse Debt Minimum Gain during any taxable year or other
      period for which allocations are made, any Partner with a share of such
      Partner Nonrecourse Debt Minimum Gain attributable to such Partner
      Nonrecourse Debt (determined under Treasury Regulations Section
      1.704-(2)(i)(5)) as of the beginning of the year shall be specially
      allocated items of Partnership income and gain for that period (and, if
      necessary, subsequent periods) in proportion to the portion of such
      Partner's share of the net decrease in the Partner Nonrecourse Debt
      Minimum Gain with respect to such Partner Nonrecourse Debt that is
      allocable to the disposition of Partnership property subject to such
      Partner Nonrecourse Debt. The items to be so allocated shall be determined
      in accordance with Regulations Section 1.704-2(g). This Section is
      intended to comply with the partner nonrecourse debt minimum gain
      chargeback requirements of the Treasury Regulations and the exceptions
      thereto and shall be interpreted consistently therewith.

            (3) Qualified Income Offset. A Partner who unexpectedly receives any
      adjustment, allocation or distribution described in Treasury Regulations
      Sections 1.704-1(b)(2)(ii)(d)(4), (5) or (6) will be specially allocated
      items of Partnership income and gain in an amount and manner sufficient to
      eliminate, to the extent required by the Treasury Regulations, the
      Adjusted Capital Account Deficit of the Partner as quickly as possible.

            (4) Nonrecourse Deductions. Nonrecourse Deductions for any taxable
      year or other period for which allocations are made will be allocated
      among the Partners in proportion to their respective Sharing Ratios in the
      Partnership.

            (5) Partner Nonrecourse Deductions. Notwithstanding anything to the
      contrary in this Agreement, any Partner Nonrecourse Deductions for any
      taxable year or other period for which allocations are made will be
      allocated to the Partner who bears the economic risk of loss with respect
      to the Partner Nonrecourse Debt to which the Partner Nonrecourse
      Deductions are attributable in accordance with Treasury Regulations
      Section 1.704-2(i).

                                      -16-
<PAGE>

            (6) Code Section 754 Adjustments. To the extent an adjustment to the
      adjusted tax basis of any Partnership asset under Code Sections 734(b) or
      743(b) is required to be taken into account in determining Capital
      Accounts under Treasury Regulations Section 1.704-1(b)(2)(iv)(m), the
      amount of the adjustment to the Capital Accounts will be treated as an
      item of gain (if the adjustment increases the basis of the asset) or loss
      (if the adjustment decreases the basis), and the gain or loss will be
      specially allocated to the Partners in a manner consistent with the manner
      in which their Capital Accounts are required to be adjusted under Treasury
      Regulations Section 1.704-1(b)(2)(iv)(m).

            (7) Depreciation Recapture. In the event there is any recapture of
      Depreciation or investment tax credit, the allocation of gain or income
      attributable to such recapture shall be shared by the Partners in the same
      proportion as the deduction for such Depreciation or investment tax credit
      was shared.

            (8) Reallocation. To the extent Losses allocated to a Partner would
      cause the Partner to have an Adjusted Capital Account Deficit at the end
      of any Fiscal Year, the Losses will be reallocated to the General Partner.
      If the General Partner receives an allocation of Losses otherwise
      allocable to a Limited Partner in accordance with this Section, the
      General Partner shall be allocated Profits in subsequent Fiscal Years
      necessary to reverse the effect of such allocation of Losses. Such
      allocation of Profits (if any) shall be made before any allocations under
      Section 5.2(a) but after any other allocations under Section 5.2(c).

            (9) Interest in Partnership. Notwithstanding any other provision of
      this Agreement, no allocation of Profit or Loss or item of Profit or Loss
      will be made to a Partner if the allocation would not have "economic
      effect" under Treasury Regulations Section 1.704-1(b)(2)(ii) or otherwise
      would not be in accordance with the Partner's interest in the Partnership
      within the meaning of Treasury Regulations Section 1.704-1(b)(3) or
      1.704-1(b)(4)(iv). The General Partner will have the authority to
      reallocate any item in accordance with this Section 5.2(c)(9).

      (d) Curative Allocations. The allocations set forth in Sections 5.2(c)(1)
through (9) (the "Regulatory Allocations") are intended to comply with certain
requirements of Treasury Regulations Section 1.704-1(b) and 1.704-2. The
Regulatory Allocations may not be consistent with the manner in which the
Partners intend to divide Partnership distributions. Accordingly, the General
Partner is authorized to further allocate Profits, Losses, and other items among
the Partners so as to prevent the Regulatory Allocations from distorting the
manner in which Partnership distributions would be divided among the Partners
under Sections 5.1 and 8.2 but for application of the Regulatory Allocations. In
general, the reallocation will be accomplished by specially allocating other
Profits, Losses and items of income, gain, loss and deduction, to the extent
they exist, among the Partners so that the net amount of the Regulatory
Allocations and the special allocations to each Partner is zero.

                                      -17-
<PAGE>

The General Partner will have discretion to accomplish this result in any
reasonable manner that is consistent with Code Section 704 and the related
Treasury Regulations.

      (e) Tax Allocations--Code Section 704(c). In accordance with Code Section
704(c) and the related Treasury Regulations, income, gain, loss and deduction
with respect to any property contributed to the capital of the Partnership,
solely for tax purposes, will be allocated among the Partners so as to take
account of any variation between the adjusted basis to the Partnership of the
property for federal income tax purposes and the initial Book Value. If the Book
Value of any Partnership asset is adjusted, subsequent allocations of income,
gain, loss and deduction with respect to that asset will take account of any
variation between the adjusted basis of the asset for federal income tax
purposes and its Book Value in the same manner as under Code Section 704(c) and
the related Treasury Regulations. Any elections or other decisions relating to
allocations under this Section 5.2(e) will be made in any manner that the
General Partner determines reasonably reflects the purpose and intention of this
Agreement. Allocations under this Section are solely for purposes of federal,
state and local taxes and will not affect, or in any way be taken into account
in computing, any Partner's Capital Account or share of Profits, Losses or other
items or distributions under any provision of this Agreement.

      (f) Other Allocation Rules. The following rules will apply to the
calculation and allocation of Profits, Losses and other items:

            (1) Except as otherwise provided in the Agreement, all Profits,
      Losses and other items allocated to the Partners will be allocated among
      them in proportion to their Sharing Ratios.

            (2) For purposes of determining the Profits, Losses or any other
      item allocable to any period, Profits, Losses and other items will be
      determined on a daily, monthly or other basis, as determined by the
      General Partner using any permissible method under Code Section 706 and
      the related Treasury Regulations.

            (3) Except as otherwise provided in this Agreement, all items of
      Partnership income, gain, loss, deduction, credit and other allocations
      not provided for in this Agreement will be divided among the Partners in
      the same proportions as they share Profits and Losses.

      (g) Partner Acknowledgment. The Partners agree to be bound by the
provisions of this Section in reporting their shares of Partnership income and
loss for income tax purposes.

                                      -18-
<PAGE>

      Section 5.3. Compliance with Code

      The foregoing provisions of this Article relating to the allocation of
Profits, Losses and other items for federal income tax purposes are intended to
comply with Treasury Regulations Sections 1.704-1(b) and 1.704-2, and shall be
interpreted and applied in a manner consistent with such Treasury Regulations.
Notwithstanding anything to the contrary, nothing in this Article shall apply if
it lacks "economic effect."

      Section 5.4. Allocations upon Transfer of Partnership Interest

      Profits or Losses attributable to any Partnership Interest which has been
transferred during any Partnership Fiscal Year shall be allocated between the
transferor and the transferee as follows:

      (a) For the days in such Fiscal Year prior to and including the date of
the transfer, to the transferor.

      (b) For the days in such Fiscal Year subsequent to the date of the
transfer, to the transferee.

            ARTICLE 6 Transferability of Partner's Interest

      Section 6.1. Restrictions on Transfer of Interest of a Partner

      (a) Except as permitted by this Article 6, no Partner shall withdraw or
retire from the Partnership, substitute any person in its stead or sell,
exchange, transfer, give, assign, pledge, hypothecate, mortgage or dispose of
all or any portion of its Partnership Interest. Any such prohibited withdrawal,
sale, exchange, transfer, gift, assignment, pledge, hypothecation, mortgage or
disposition shall be void.

      (b) Notwithstanding anything to the contrary contained herein, unless all
of the Partners shall consent, no Partner may sell, transfer or assign all or
any portion of its Partnership Interest if such sale, transfer or assignment:

            (1) when added to the total of all other sales, transfers or
      assignments of Partnership Interests within the preceding twelve (12)
      months, would result in the Partnership being considered to have
      terminated within the meaning of Code Section 708;

                                      -19-
<PAGE>

            (2) would otherwise cause the Partnership to lose its status as a
      partnership for federal income tax purposes; or

            (3) would violate any federal securities laws or any applicable
      state securities laws (including suitability standards).

      (c) For purposes of Chapter 8 of the Texas Business and Commerce Code, the
Partnership Interests shall be considered "uncertificated securities" as defined
in Section 8.102. Thus, the Partnership Interests shall be media for investment
and they shall be securities governed by Chapter 8. The designation of the
Partnership Interests as "securities" under this provision shall be solely for
the purposes of the Texas Business and Commerce Code, and shall not indicate
that they are "securities" for any other provision of law. Each Partnership
Interest as described more fully in this Agreement shall be considered to be a
part of a class consisting of all Partnership Interests but shall constitute its
own series with the rights and duties assigned it by this Agreement. The
Partnership shall maintain books for the purpose of registering the ownership of
Partnership Interests. No transfer of a Partnership Interest shall be effective
until the transfer of the Partnership Interest is registered upon books
maintained by the Partnership for that purpose. In addition, each of the persons
signing this Agreement or acquiring a Partnership Interest acknowledges that
there are limitations on the ability to transfer certain aspects of a
Partnership Interest.

      Section 6.2. Assignees

      (a) The Partnership shall not recognize for any purpose any purported
sale, assignment or transfer of all or any fraction of the interest of a Partner
unless the provisions of this Article 6 have been satisfied, all costs of such
assignment have been paid by the assigning Partner, such sale, assignment or
transfer is exempt from registration under the Securities Act of 1933, as
amended, applicable Texas securities laws, and the securities act of any other
state and there is delivered to the General Partner, if requested by the General
Partner, an opinion of counsel reasonably satisfactory to the General Partner
with respect thereto, and there is filed with the Partnership a written and
dated notification of such sale, assignment or transfer, in form satisfactory to
the General Partner, executed by both the seller, assignor or transferor and the
purchaser, assignee or transferee and such notification (1) contains the
acceptance by the purchaser, assignee or transferee of and agreement to be bound
by all the terms and provisions of this Agreement and (2) represents that such
sale, assignment or transfer was made in accordance with all applicable
securities laws and regulations (including suitability standards). Any sale,
assignment or transfer shall be recognized by the Partnership as effective on
the date of such notification if the date of such notification is within fifteen
(15) days of the date on which such notification is filed with the Partnership,
and otherwise shall be recognized as effective on the date such notification is
filed with the Partnership.

                                      -20-
<PAGE>

      (b) Any Partner who assigns all its interest in the Partnership shall
cease to be a Partner, except that, unless and until a substituted Partner has
been admitted into the Partnership, such assigning Partner shall retain the
statutory rights of the assignor of a partner's interest under the Act.

      (c) A person who is the assignee of all or any fraction of the interest of
a Partner, but does not become a substituted Partner, and desires to make a
further assignment of such interest, shall be subject to all the provisions of
this Article to the same extent and in the same manner as any Partner desiring
to make an assignment of its interest.

      Section 6.3. Substituted Partners

      (a) No Partner shall have the right to substitute in its place a
purchaser, assignee, transferee, donee, heir, legatee or other recipient of all
or any portion of the Partnership Interest of such Partner. Any such purchaser,
assignee, transferee, donee, legatee, distributee or other recipient of an
interest shall be admitted to the Partnership as a substituted Partner only with
the consent of each of the Partners, which consent may be granted or withheld by
any Partner in it sole discretion.

      (b) No person shall become a substituted Partner until such person has
satisfied the requirements of this Article 6; provided, however, that for the
purpose of allocating Profits, Losses and other items and distributing cash
available for distribution, a person shall be treated as having become, and as
appearing in the records of the Partnership as, a Partner, as the case may be,
on such date as the sale, assignment or transfer to such person was recognized
by the Partnership pursuant to Section 6.3.

            ARTICLE 7 Officers

      Section 7.1. Number

      The principal Officers of the Partnership shall consist of any or all of
the following: the President and Chief Executive Officer, Treasurer, one or more
Vice Presidents and the Secretary, and such other Officers and agents as may be
deemed necessary and elected or appointed by the General Partner, at such time
and in such manner and for such terms as the General Partner may prescribe. Any
two or more offices may be held by the same person.

                                      -21-
<PAGE>

      Section 7.2. General Duties

      All Officers and agents of the Partnership, as between themselves and the
Partnership, shall have such authority, perform such duties and manage the
Partnership as may be provided in this Agreement or as may be determined by the
General Partner not inconsistent with this Agreement.

      Section 7.3. Election, Term of Office and Qualifications

      The Officers shall be chosen by the General Partner. Each Officer shall
hold office until a successor is chosen and qualified or until the death,
resignation, or removal of such Officer.

      Section 7.4. Removal

      Any Officer or agent appointed by the General Partner may be removed (with
or without cause) by the General Partner whenever in its sole judgment the best
interests of the Partnership will be served by such removal.

      Section 7.5. Resignation

      Any Officer may resign at any time by giving written notice to the General
Partner, the President and Chief Executive Officer, the President or the
Secretary. Such resignation shall take effect at the time specified in the
notice, and, unless otherwise specified in the notice, the acceptance of such
resignation shall not be necessary to make it effective. Such resignation shall
be without prejudice to the contract rights, if any, of the Partnership.

      Section 7.6. Vacancies

      Any vacancy in any office because of death, resignation, removal or any
other cause shall be filled for the unexpired portion of the term in the manner
prescribed in this Agreement for election or appointment to such office.

      Section 7.7. The President and Chief Executive Officer

      The President and Chief Executive Officer shall have active, executive
management of the business and operations of the Partnership, subject, however,
to the control of the General Partner. The President and Chief Executive Officer
shall, in general, perform all duties incident to the offices of President and
Chief Executive Officer and such other duties as from time to time may be
assigned by the General Partner.

                                      -22-
<PAGE>

      Section 7.8. The Vice Presidents

      Each Vice President shall have such powers and perform such duties as the
General Partner may from time to time prescribe or as the President and Chief
Executive Officer may from time to time delegate to such officer. At the request
of the President and Chief Executive Officer, any Vice President may temporarily
act in place of the President. In the case of the death, absence, or inability
to act of the President, the General Partner may designate any Vice President to
perform the duties of the President. The General Partner may appoint different
types of vice presidents with different day-to-day management responsibility
over the operations of the Partnership, including but not limited to the power
to employ persons to accomplish the purposes of the Partnership.

      Section 7.9. The Secretary

      The Secretary shall keep or cause to be kept in books provided for that
purpose, minutes of the meetings of the Partners; shall see that all notices are
duly given in accordance with the provisions of this Agreement and as required
by law; shall be custodian of the records and, in general, shall perform all
duties incident to the office of the secretary and such other duties as may from
time to time be assigned by the General Partner or the President and Chief
Executive Officer.

      Section 7.10. The Treasurer

      The Treasurer shall be the principal financial officer of the Partnership;
shall have charge and custody of and be responsible for all funds of the
Partnership and deposit all such funds in the name of the Partnership in such
banks, trust companies or other depositories as shall be selected by the General
Partner; shall receive and give receipts for moneys due and payable to the
Partnership from any source; and, in general, shall perform all the duties
incident to the office of treasurer and such other duties as from time to time
may be assigned by the General Partner, the President and Chief Executive
officer. The Treasurer shall render to the President and Chief Executive Officer
and the General Partner, whenever the same shall be required, an account of all
transactions accomplished as Treasurer and of the financial condition of the
Company. The Treasurer shall, if required to do so by the General Partner, give
the Partnership a bond in such amount and with such surety or sureties as may be
ordered by the General Partner, for the faithful performance of the duties of
office and for the restoration to the Partnership, in the case of death,
resignation, retirement or removal from office, of all books, papers, vouchers,
money and other property of whatever kind belonging to the Partnership which are
held or controlled by the Treasurer.

      Section 7.11. Indemnification

      The Officers shall be indemnified by the Partnership to the extent and in
the manner described in Section 4.6.

                                      -23-
<PAGE>

            ARTICLE 8 Books and Records; Accounting; Reporting; Tax Elections;
                      Etc.

      Section 8.1. Books and Records

      The books and records of the Partnership shall be maintained by the
General Partner or the Secretary at the principal office of the Partnership and
shall be available for examination at such office by any Partner or its duly
authorized representatives during regular business hours. Any Partner, at its
own expense, may cause an audit of the books and records of the Partnership
during regular business hours and shall furnish a written report thereof to the
other Partners.

      Section 8.2. Accounting Basis for Tax Reporting Purposes; Fiscal Year

      The books and records of the Partnership shall be kept on such method of
reporting for tax and financial reporting purposes as the General Partner shall
select. The Fiscal Year of the Partnership shall be the calendar year.

      Section 8.3. Reports

      Within seventy-five (75) days after the end of each Fiscal Year, the
General Partner shall cause the Partnership to send to each Partner a copy of
each federal income tax return of the Partnership for the Fiscal Year that
ended, together with such other tax information as shall be necessary for the
preparation by each Partner of its federal and state income tax return.

            ARTICLE 9 Dissolution, Liquidation and Termination of the
                      Partnership

      Section 9.1. Events Causing Dissolution

      (a) The Partnership shall be dissolved upon the happening of any of the
following events:

            (1) the expiration of its term;

                                      -24-
<PAGE>

            (2) the entry of a final judgment, order or decree of a court of
      competent jurisdiction adjudicating the Partnership or the General Partner
      to be bankrupt, and the expiration without appeal of the period, if any,
      allowed by applicable law in which to appeal therefrom;

            (3) the sale, condemnation or other disposition of all or
      substantially all of the Property;

            (4) the election to dissolve the Partnership by all of the Partners;
      or

            (5) the entry of a decree of judicial dissolution under the Act.

      (b) Dissolution of the Partnership shall be effective as of the day on
which the event occurs giving rise to the dissolution, but the Partnership shall
not terminate until there has been a winding up of the Partnership's business
and affairs, and the assets of the Partnership have been distributed as provided
in Section 9.2.

      (c) Notwithstanding anything in Section 9.1(a), if a dissolution of the
Partnership would otherwise occur due to the occurrence of an event of
dissolution under Section 9.1(a)(2), the Partnership may be reconstituted if
either (i) there remains at least one General Partner and such remaining General
Partner or General Partners elect to continue the business of the Partnership or
(ii) within ninety (90) days of such event of dissolution all remaining Partners
agree in writing to continue the business of the Partnership and, to the extent
they desire, or if there is no remaining General Partner, the Limited Partners
agree to the appointment, effective as of the date of such event of dissolution
of one or more new General Partners.

      Section 9.2. Liquidation; Sale of Substantially all of the Assets

      (a) Upon dissolution of the Partnership, the General Partner may cause any
part or all of the Partnership assets to be sold in such manner as the General
Partner shall reasonably determine in an effort to obtain the best prices for
such assets (provided, however, that the General Partner may distribute
Partnership assets in kind to the Partners to the extent practicable). During
the liquidation period, the General Partner shall have the right to continue to
operate and otherwise to deal with Partnership property to the same extent the
General Partner has such right prior to dissolution of the Partnership. In the
event that the sole remaining General Partner has dissolved, withdrawn or
becomes bankrupt or legally incapacitated, the Limited Partner may, within 30
days after any such

                                      -25-
<PAGE>

occurrence, appoint a person to perform the functions of the General Partner in
liquidating the assets of the Partnership and winding up its affairs.

      (b) In settling accounts after dissolution, the assets of the Partnership
shall be paid or distributed in the following order:

            (1) to third party creditors, in the order of priority as provided
      by law;

            (2) then, to the Partners for any unreimbursed costs and expenses
      owing to the Partners pursuant to this Agreement;

            (3) then, to the repayment of any loans, with interest, made by any
      Partner to the Partnership, and if more than one Partner has any
      outstanding loans owing from the Partnership, such repayment shall be
      made, pro rata, in accordance with the total amount outstanding to each
      Partner;

            (4) then, an amount equal to the then remaining positive balances in
      the Capital Accounts of the Partners shall be distributed to the Partners
      in proportion to the amount of such balances; and

            (5) then, any remainder shall be distributed to the Partners, pro
      rata, in accordance with their respective Sharing Ratios.

      Section 9.3. Distributions in Kind

      If any assets of the Partnership are distributed in kind pursuant to this
Agreement, such assets shall be distributed to the Partners entitled thereto as
tenants-in-common in the same proportions as the Partners would have been
entitled to cash distributions if such property had been sold for cash at its
fair market value and the net proceeds thereof distributed to the Partners. In
the event that distributions in kind are made to the Partners upon dissolution
and liquidation of the Partnership, the Capital Account balances of such
Partners shall be adjusted to reflect the Partners' allocable share of gain or
loss which would have resulted if the distributed property had been sold at its
fair market value.

                                      -26-
<PAGE>

            ARTICLE 10 Power of Attorney

      Section 10.1. Appointment of the General Partner as Attorney-in-Fact

      (a) Each Limited Partner, by its execution of this Agreement, irrevocably
constitutes and appoints the General Partner, its true and lawful agent and
attorney-in-fact with full power and authority in its name, place and stead to
execute, acknowledge, deliver, swear to, file and record at the appropriate
public offices such documents, instruments and conveyances that may be necessary
or appropriate to carry out the provisions or purposes of this Agreement,
including without limitation:

            (1) all certificates and other instruments, including, but not
      limited to, counterparts of this Agreement, and any amendment thereof that
      the General Partner deems appropriate to qualify or continue the
      Partnership as a partnership or a partnership in which the Limited Partner
      will have limited liability comparable to that provided by the Act, in the
      jurisdictions in which the Partnership may conduct business;

            (2) any amendment, supplement or restatement of this Agreement
      approved by the Partners in accordance with Section 11.12;

            (3) any amendment to this Agreement to reflect the withdrawal,
      addition or substitution of a Partner other than the General Partner
      pursuant to this Agreement;

            (4) all instruments that the General Partner deems appropriate to
      reflect a change or modification of the Partnership in accordance with the
      terms of this Agreement; and

            (5) all conveyances and other instruments that the General Partner
      deems appropriate to reflect the dissolution and termination of the
      Partnership.

      (b) The appointment of the General Partner by the Limited Partners as
agent and attorney-in-fact shall be deemed irrevocable and to be a power coupled
with an interest and shall survive the legal incapacity of any person hereby
giving such power and the transfer or assignment of all or any part of the
Partnership Interest of such person; provided, however, that in the event of the
transfer by a Limited Partner of all its interest, the foregoing power of
attorney shall survive such transfer only until such time as the transferee
shall have been admitted to the Partnership as a limited partner, and

                                      -27-
<PAGE>

all required documents and instruments shall have been duly executed, filed and
recorded to effect such substitution.

            ARTICLE 11 Miscellaneous Provisions

      Section 11.1. Address for Notices

      All notices, demands, consents and reports provided for in this Agreement
shall be in writing and shall be given to the parties at the addresses set forth
herein or at such other addresses as the Partner may hereafter specify in
writing. Such notices may be delivered by hand or by telex, telegram or
telecopy, or may be mailed, postage prepaid, by certified or registered mail, by
a deposit in a depository for the receipt of mail regularly maintained by the
United States Postal Service. All notices which are hand delivered or delivered
by telex, telegram or telecopy shall be deemed given on the date of delivery.
All notices which are mailed in the manner provided above shall be deemed given
three (3) days after being mailed.

      Section 11.2. Additional Documents and Acts

      In connection with this Agreement, as well as all transactions
contemplated by this Agreement, the Partners agree to execute such additional
documents and papers, and to perform and do such additional acts as may be
necessary and proper to effectuate and carry out all of the provisions of this
Agreement.

      Section 11.3. Assumed Name

      The Partners shall execute and file all assumed name certificates required
by applicable law.

      Section 11.4. Qualification in Foreign Jurisdictions

      The Partners shall take such steps as are necessary or desirable to allow
the Partnership to conduct business in any jurisdiction where the Partnership
desires to conduct business.

                                      -28-
<PAGE>

      Section 11.5. Applicable Law

      This Agreement and the rights of the Partners shall be governed by and
construed in accordance with the laws of the State of Texas, without giving
effect to conflict of law principles. With respect to all matters not expressly
provided for in this Agreement, the Act and other applicable partnership laws of
the State of Texas shall apply and control. In the event that any provision in
this Agreement conflicts with the Act, such provision in this Agreement shall
control and govern to the extent permitted by applicable law.

      Section 11.6. Waiver of Action for Partition by Partners

      Each Partner irrevocably waives during the term of the Partnership any
right which it may have to maintain any action for partition with respect to any
asset of the Partnership.

      Section 11.7. Creditors Not Benefitted

      Nothing in this Agreement is intended to nor shall it benefit any creditor
of the Partnership. No creditor of the Partnership will be entitled to require
the General Partner to solicit or accept any loan or Additional Capital
Contribution for the Partnership or to enforce any right which the Partnership
or any Partner may have against a Partner, whether arising under this Agreement
or otherwise.

      Section 11.8. Numbers and Gender

      Where the context so indicates, the masculine shall include feminine and
neuter, and the neuter shall include the masculine and feminine, the singular
shall include the plural and any reference to a "person" shall mean a natural
person or a corporation, association, partnership, joint venture, estate, trust
or any other entity.

      Section 11.9. Binding Effect

      Except as herein otherwise provided to the contrary, this Agreement shall
be binding upon and inure to the benefit of the Partners, their distributees,
heirs, legal representatives, executors, administrators, successors and assigns.

                                      -29-
<PAGE>

      Section 11.10. Entire Agreement

      This Agreement constitutes all of the understandings and agreements of
whatsoever kind and nature existing between the Partners with respect to the
subject matter contained herein and supersedes all prior agreements and
undertakings with respect thereto.

      Section 11.11. Place of Performance

      The obligations of the parties hereto are performable in McLennan County,
Texas.

      Section 11.12. Amendment

      Except as otherwise expressly set forth in this Agreement, this Agreement
may be amended, supplemented or restated only by a written agreement executed by
each of the Partners; provided, however, that the General Partner may amend the
Agreement to reflect the admission of new Limited Partners pursuant to Section
6.3 without the consent of any other Partner.

      Section 11.13. Severability

      If any term or provision of this Agreement or the application thereof to
any person or circumstances shall, to any extent, be deemed invalid or
unenforceable, the remainder of this Agreement, or the application of such term
or provision to persons or circumstances other than those as to which it is held
invalid or unenforceable, shall not be affected thereby and shall be valid and
enforced to the fullest extent permitted by applicable law.

      Section 11.14. Sections

      Unless the context requires otherwise, all references in this Agreement to
Sections or Articles shall be deemed to mean and refer to Sections or Articles
of this Agreement.

      Section 11.15. Captions

      The titles and captions contained herein are for convenience only and
shall not be deemed part of the context of this Agreement.

                                      -30-
<PAGE>

      Section 11.16. No Waiver

      No waiver, express or implied, by any Partner of any breach or default by
any other Partner in the performance by the other Partner of its obligations
hereunder shall be deemed or construed to be a waiver of any other breach or
default under this Agreement. Failure on the part of any Partner to complain of
any act or omission of any other Partner, or to declare such other Partner in
default irrespective of how long such failure continues, shall not constitute a
waiver hereunder. No notice to or demand on a defaulting Partner shall entitle
such defaulting Partner to any other or further notice or demand in similar or
other circumstances.

      Section 11.17. Additional Remedies

      Unless the context requires otherwise, the rights and remedies of the
Partners hereunder shall not be mutually exclusive so that the exercise of one
or more of the provisions hereof shall not preclude the exercise of any other
provision hereof.

      Section 11.18. U.S. Dollars

      All references in this Agreement to dollar amounts shall refer to United
States currency.

      Section 11.19. Approvals

      Except where otherwise indicated, all approval, consent and other similar
rights of the General Partner or of the Limited Partners pursuant to this
Agreement may be exercised by such parties, and such approvals and consents may
be granted or denied by such parties, in their sole and absolute discretion.

      Section 11.20. Counterparts

      This Agreement may be executed in counterparts, each of which shall be
deemed to be an original and shall be binding upon the Partner who executed the
same, but all of such counterparts shall constitute one and the same agreement.

                                      -31-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

                                        GENERAL PARTNER:

                                        EG Product Management, L.L.C.,
                                        a Texas limited liability company

                                        By: /s/ Richard M. Grandy
                                            ------------------------------------
                                                Richard M. Grandy, Manager

                                        By: /s/ Dick Kurz
                                            ------------------------------------
                                                Dick Kurz, Manager

                                        LIMITED PARTNER:

                                        EG, L.L.C.,
                                        a Nevada limited liability company

                                        By: /s/ Richard M. Grandy
                                            ------------------------------------
                                                Richard M. Grandy, Manager

                                      -32-
<PAGE>

                          EASY GARDENER PRODUCTS, LTD.

                                   SCHEDULE 1

   Names, Addresses, Capital Contributions and Sharing Ratios of the Partners

Name and Address                                     Initial Capital     Sharing
of General Partner                                    Contributions      Ratios
------------------                                   ---------------     -------

EG Product Management, L.L.C                              $  5                1%
3022 Franklin Avenue
Waco, Texas 76710

Name and Address
of Limited Partner

EG, L.L.C                                                 $495               99%
3022 Franklin Avenue
Waco, Texas 76710

TOTAL                                                     $500           100.00%
                                                          ====           ======

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