Document:

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Exhibit 10.13

                          LIMITED PARTNERSHIP AGREEMENT

                                       OF

                               PHT PARTNERS, L.P.

                                 August 14, 2002

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                                Table of Contents
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                                                                                                               Page

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ARTICLE I.  DEFINITIONS...........................................................................................1

ARTICLE II.  ORGANIZATION.........................................................................................6

         2.1  Name................................................................................................6
         2.2  Place of Business...................................................................................6
         2.3  Registered Office...................................................................................6

ARTICLE III.  PURPOSE.............................................................................................6

         3.1  Purpose.............................................................................................6
         3.2  Powers of Partnership...............................................................................6

ARTICLE IV.  TERM.................................................................................................7

ARTICLE V.  CONTRIBUTIONS TO CAPITAL AND STATUS OF PARTNERS.......................................................7

         5.1  Capital Contributions and Loan Amounts..............................................................7
         5.2  Additional Limited Partners.........................................................................8

ARTICLE VI.  DISTRIBUTIONS; ALLOCATION OF PROFITS AND LOSSES; CAPITAL ACCOUNTS....................................8

         6.1  Cash Available for Distribution.....................................................................8
         6.2  Allocation of Profits and Losses....................................................................8
         6.3  Special Tax Allocations; Other Allocation Rules; Tax Allocations: Code Section 704(c)...............9
         6.4  Allocations in the Event of Transfer................................................................9
         6.5  Capital Accounts...................................................................................10
         6.6  Tax Distributions..................................................................................11

ARTICLE VII.  MANAGEMENT; RIGHTS, POWERS, AND OBLIGATIONS OF THE PARTNERS........................................11

         7.1  Management of the Partnership......................................................................11
         7.2  Certain Limitations of the General Partner.........................................................11
         7.3  Meetings of the Partners...........................................................................12
         7.4  Voting by the Partners.............................................................................12
         7.5  Independent Activities.............................................................................13
         7.6  Execution of Agreements and Instruments............................................................13
         7.7  Holding of Assets..................................................................................13
         7.8  Prior Expenses.....................................................................................13

ARTICLE VIII.  TRANSFER OF INTERESTS IN THE PARTNERSHIP..........................................................13

         8.1  Prohibited Transfers...............................................................................13
         8.2  General Partner....................................................................................13
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                                      (i)

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         8.3  Limited Partners...................................................................................14

ARTICLE IX.  WITHDRAWAL AND REMOVAL OF A PARTNER.................................................................16

         9.1  Withdrawal.........................................................................................16
         9.2  Removal of a Limited Partner.......................................................................16
         9.3  Death or Disability of a Limited Partner...........................................................17
         9.4  Effect of Removal..................................................................................17
         9.5  Valuation of the Interest of a Partner.............................................................17
         9.6  Payments to a Removed Limited Partner..............................................................18

ARTICLE X.  DISSOLUTION AND WINDING UP OF THE PARTNERSHIP........................................................18

         10.1  Dissolution of the Partnership....................................................................18
         10.2  Winding Up of the Partnership.....................................................................18
         10.3  Distribution In Kind..............................................................................19

ARTICLE XI.  BOOKS OF ACCOUNTS, ACCOUNTING, REPORTS, FISCAL YEAR, BANKING AND TAX MATTERS PARTNER................19

         11.1  Accounting, Books and Records.....................................................................19
         11.2  Other Records.....................................................................................19
         11.3  Reports...........................................................................................20
         11.4  Fiscal Year.......................................................................................20
         11.5  Partnership Funds.................................................................................21
         11.6  Tax Matters Partner...............................................................................21

ARTICLE XII.  INDEMNIFICATION....................................................................................21

         12.1  Indemnification...................................................................................21

ARTICLE XIII.  MISCELLANEOUS.....................................................................................22

         13.1  Agreement for Further Execution...................................................................22
         13.2  Amendments........................................................................................22
         13.3  Notices...........................................................................................23
         13.4  Governing Law and Jurisdiction....................................................................23
         13.5  Binding Nature of Agreement.......................................................................24
         13.6  Additional Partners...............................................................................24
         13.7  Validity..........................................................................................24
         13.8  Entire Agreement..................................................................................24
         13.9  Indulgences, Etc..................................................................................24
         13.10  Execution in Counterparts........................................................................24
         13.11  Paragraph........................................................................................24
         13.12  Number of Days...................................................................................24
         13.13  Interpretation...................................................................................25
         13.14  Corporate Authority..............................................................................25
         13.15  Third Party Beneficiaries........................................................................25
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                                      (ii)

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         13.16  Appointment of Attorney-in-fact..................................................................25
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Exhibit A         -        Partners
Exhibit B         -        Special Allocations

                                     (iii)

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                          LIMITED PARTNERSHIP AGREEMENT

                                       OF

                                PHT PARTNERS, L.P.

         THIS LIMITED  PARTNERSHIP  AGREEMENT  is entered  into  effective as of
August 14, 2002,  by and among PHT GAS, LLC (the  "General  Partner")  and those
persons listed as Limited Partners on Exhibit A attached hereto, as amended from
time to time after the date hereof.

         Intending to be legally bound, the parties hereto agree as follows:

                            ARTICLE I. DEFINITIONS.

         Capitalized  terms used in this  Agreement  and not  defined  elsewhere
herein shall have the following meanings:

         "Act" means the Delaware  Revised Uniform Limited  Partnership  Act, as
amended from time to time.

         "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:

                  (i)  credit to such  Capital  Account any  amounts  which such
Partner is obligated to restore or is deemed to be obligated to restore pursuant
to the  next to last  sentences  of  Regulations  Sections  1.704-(2)(g)(1)  and
1.704-2(i)(5); and

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

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

         An  "Affiliate"   (whether  or  not   capitalized)  of,  or  a  Person,
association,  partnership or corporation  "affiliated" with, a specified Person,
association,  partnership or corporation, is a Person, association,  partnership
or corporation that directly,  or indirectly through one or more intermediaries,
controls,  is  controlled  by, or is under common  control  with,  the specified
Person, association, partnership or corporation.

         "Agreement" means this limited partnership  agreement,  as the same may
be amended from time to time.

         "Appraiser"  has the  meaning  set  forth  in  Section  9.5(a)  of this
Agreement.

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         "Bankruptcy"   means,   with  respect  to  any  Person,   a  "Voluntary
Bankruptcy" or an "Involuntary Bankruptcy." A "Voluntary Bankruptcy" means, with
respect to any Person,  the inability of such Person  generally to pay its debts
as such debts  become  due,  or an  admission  in writing by such  Person of its
inability to pay its debts generally or a general  assignment by such Person for
the benefit of  creditors;  the filing of any  petition or answer by such Person
seeking to  adjudicate  it a bankrupt  or  insolvent,  or seeking for itself any
liquidation, winding up, reorganization,  arrangement,  adjustment,  protection,
relief,  or  composition  of such Person or its debts under any law  relating to
bankruptcy,  insolvency  or  reorganization  or relief of  debtors,  or seeking,
consenting  to,  or  acquiescing  in the  entry of an order  for  relief  or the
appointment of a receiver,  trustee,  custodian,  or other similar  official for
such Person or for any  substantial  part of its property,  or corporate  action
taken by such  Person  to  authorize  any of the  actions  set forth  above.  An
"Involuntary  Bankruptcy" means, with respect to any Person, without the consent
or acquiescence of such Person, the entering of an order for relief or approving
a petition  for  relief or  reorganization  or any other  petition  seeking  any
reorganization,    arrangement,    composition,    readjustment,    liquidation,
dissolution,  or other  similar  relief under any present or future  bankruptcy,
insolvency or similar  statute,  law, or  regulation,  or the filing of any such
petition against such Person which petition shall not be dismissed within ninety
(90) days, or, without the consent or acquiescence of such Person,  the entering
of an order  appointing a trustee,  custodian,  receiver,  or liquidator of such
Person or of all or any  substantial  part of the  property of such Person which
order shall not be dismissed within sixty (60) days.

         "Capital  Account" means,  with respect to any Partner,  such Partner's
Capital Account determined in accordance with Section 6.6.

         "Capital  Contribution"  means, with respect to any Partner, the amount
of money contributed to the Partnership by such Partner pursuant to Section 5.2.

         "Cash Available for  Distribution"  for any fiscal year or other period
means the excess of (a) the amount of gross cash  receipts of any kind  received
by the Partnership (including from any reserves previously established which the
General Partner  determines are no longer required by the Partnership)  less (b)
(i)  Operating  Expenses,  (ii) any  reserves  established  or  increased by the
General  Partner  which it deems  reasonably  necessary for the operation of the
Partnership   including,   reserves  for  working   capital  and  maturing  debt
obligations and other cash  requirements of the  Partnership,  and (iii) amounts
received by the Partnership as Capital Contributions.

         "Certificate   of   Limited   Partnership"   means  the   Partnership's
Certificate  of Limited  Partnership  filed with the  Secretary  of State of the
State of Delaware, as the same may be amended from time to time.

         "Code"  means  the  Internal  Revenue  Code of 1986,  as  amended.  All
references  herein to Code sections  shall include  corresponding  provisions of
future federal tax statutes.

         "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

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such year or other  period,  except  that if the Gross  Asset  Value of an asset
differs from its adjusted basis for federal income tax purposes at the beginning
of such year or other  period,  Depreciation  shall be an amount which bears the
same  ratio to such  beginning  Gross  Asset  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  shall  be
determined  with  reference  to such  beginning  Gross  Asset  Value  using  any
reasonable method selected by the General Partner.

         "General Partner" means PHT GAS, LLC.

         "Gross  Asset  Value"  means,  with  respect to any asset,  the asset's
adjusted basis for federal income tax purposes, except as follows:

                  (i)  The initial Gross Asset Value of any asset contributed by
a Partner to the Partnership shall be the gross fair market value of such asset,
as agreed by the contributing Partner and the General Partner;

                  (ii) The Gross Asset Values of all Partnership assets shall be
adjusted to equal their  respective  gross fair market values,  as determined by
the General  Partner,  as of the  following  times:  (a) the  acquisition  of an
additional  Interest in the  Partnership  (other than  pursuant to the  original
purchase at the time of  formation  of the  Partnership)  by any new or existing
Partner in exchange  for more than a de minimis  Capital  Contribution,  (b) the
distribution by the Partnership to a Partner of more than a de minimis amount of
Partnership  Property (other than cash) as consideration  for an Interest in the
Partnership;  and (c) the liquidation of the  Partnership  within the meaning of
Regulations   Section   1.704-1(b)(2)(ii)(g):   provided,   however,   that  the
adjustments  pursuant  to  clauses  (a) and (b) above  shall be made only if the
General Partner  reasonably  determines  that such  adjustments are necessary or
appropriate  to reflect the relative  economic  interests of the Partners in the
Partnership;

                  (iii)   The  Gross  Asset  Value  of  any  Partnership   asset
distributed to any Partner shall be the gross fair market value of such asset on
the date of distribution;

                  (iv)  The Gross Asset  Values of  Partnership  assets shall be
increased (or  decreased) to reflect any  adjustments  to the adjusted  basis of
such assets pursuant to Code Section 734(b) or Code Section 743(b),  but only to
the extent that such  adjustments are taken into account in determining  Capital
Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m) and Section 6.3(h)
hereof,  provided,  however,  that  Gross  Asset  Values  shall not be  adjusted
pursuant hereto to the extent the General Partner  determines that an adjustment
pursuant  hereto is necessary or  appropriate  in connection  with a transaction
that would otherwise result in an adjustment pursuant hereto; and

                  (v)  If the Gross Asset Value of an asset has been  determined
or adjusted pursuant hereto, such Gross Asset Value shall thereafter be adjusted
by the  Depreciation  taken into account with respect to such asset for purposes
of computing Profits and Losses.

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         "Indemnitee"  has the  meaning  set forth in  Section  12.1(a)  of this
Agreement.

         "Interest" means a Partner's  economic rights and other interest in the
Partnership as a Partner as provided in this Agreement.

         "Limited  Partner"  means  any  person  named as a Limited  Partner  on
Exhibit A in his,  her or its capacity as a Limited  Partner of the  Partnership
and any other person admitted to the Partnership as a Limited Partner.

         "Majority in Interest"  means with respect to any  particular  group of
Partners, those Partners whose Percentage Interests in the aggregate are greater
than  fifty  percent  (50%)  of the  Percentage  Interests  owned  by all of the
Partners within the group.

         "Nonrecourse   Deductions"   has  the  meaning  set  forth  in  Section
1.704-2(b)(1) of the Regulations.

         "Nonrecourse   Liability"   has  the   meaning  set  forth  in  Section
1.704-2(b)(3) of the Regulations.

         "Operating  Expenses" means cash  disbursements for operating  expenses
of, and proper payments by, the Partnership,  including,  but not limited to (i)
legal  representation  relating  to the  Partnership,  (ii)  accounting  and tax
preparation and (iii) amounts paid to satisfy the Partnership's obligations with
respect to working interests in oil and gas wells held by the Partnership.

         "Partner" means the General Partner or any Limited Partner.

         "Partner  Nonrecourse  Debt"  has the  meaning  set  forth  in  Section
1.704-2(b)(4) of the Regulations.

         "Partner  Minimum  Gain" means an amount,  with respect to each Partner
Nonrecourse  Debt,  equal to the  Partnership  Minimum Gain that would result if
such  Partner  Nonrecourse  Debt  were  treated  as  a  Nonrecourse   Liability,
determined in accordance with Section 1.704-2(i)(3) of the Regulations.

         "Partner Nonrecourse  Deductions" has the meaning set forth in Sections
1.704-2(i)(1) and 1.704-2(i)(2) of the Regulations.

         "Partnership" means PHT PARTNERS, L.P., a Delaware limited partnership.

         "Partnership  Minimum  Gain"  has the  meaning  set  forth in  Sections
1.704-2(b)(2) and 1.704-2(d) of the Regulations.

         "Partnership  Property"  means  all  properties  and  assets  which the
Partnership may own or have an interest in from time to time.

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         "Percentage  Interest"  means the Interest of a Partner  expressed as a
percentage.  The Percentage Interest of each Partner as of the date hereof is as
set forth on Exhibit A.

         "Person"  means  any  individual,  corporation,   partnership,  limited
liability  company,  joint venture,  association,  joint-stock  company,  trust,
non-incorporated   organization   or  government  or  any  agency  or  political
subdivision thereof.

         "Prime Rate" means the interest rate published from time to time by the
Wall Street  Journal as the prime lending rate  (regardless  of how such rate is
specifically described).

         "Profit or Profits" and "Loss or 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,  as  determined  by the  Partnership's  accountants,  in
accordance  with Code  ss.703(a) (for this purpose,  all items of income,  gain,
loss or deduction  required to be stated separately  pursuant to ss.703(a)(1) of
the Code shall be included in Profits or Losses),  with the adjustments required
to comply with the capital  account  maintenance  rules of Treasury  Regulations
ss.1.704-1(b)(2)(iv) and the following adjustments:

                  (i)  Any income of the Partnership that is exempt from federal
income tax and not otherwise taken into account in computing  Profits and Losses
shall be added back;

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

                  (iii)  If the Gross  Asset Value of any  Partnership  asset is
adjusted  pursuant to this  Agreement,  the amount of such  adjustment  shall be
taken into account in the taxable year as gain or loss from the  disposition  of
such asset for purposes of computing Profits or Losses;

                  (iv)   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 Gross Asset
Value of the Partnership Property disposed of, notwithstanding that the adjusted
tax basis of such Property differs from its Gross Asset Value; and

                  (v)  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 this Agreement.

         "Purchase  Price"  has the  meaning  set forth in  Section  9.4 of this
Agreement.

         "Regulations" means the regulations  promulgated under the Code, as the
same may be amended or supplemented from time to time.

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         "Regulatory  Allocations"  has the meaning set forth in Section 1(h) of
Exhibit B of this Agreement.

         "Removal  Event"  has the  meaning  set  forth in  Section  9.2 of this
Agreement.

         "Service" has the meaning set forth in Section 11.6 of this Agreement.

         "Term" has the meaning set forth in Article IV of this Agreement.

         "Transfer," with respect to any Interest in the Partnership,  means any
sale, bequest,  assignment,  pledge,  encumbrance or gift thereof, or attempt to
deliver a security interest therein, but shall not include a voluntary pledge or
assignment  pursuant to a written  agreement  by a Partner of only the rights to
recover  proceeds as distributed by the Partnership with respect to any Interest
nor shall include a collateral  assignment of one Partner's  Interest to another
Partner.

         "Unreturned Capital Balance" with respect to any Partner means all cash
paid toward such Partner's Capital  Contribution,  reduced by distributions made
to such Partner.

         "Valuation  Date" has the meaning  set forth in Section  9.5(a) of this
Agreement.

                            ARTICLE II. ORGANIZATION

         2.1 Name. The name of the Partnership is "PHT Partners, L.P."

         2.2  Place  of  Business.  The  principal  place  of  business  of  the
Partnership  shall be at such place as  determined by the General  Partner.  The
Partnership  may establish  additional  places of business within or without the
State of Delaware as and when required by the business of the Partnership.

         2.3 Registered  Office. The registered office for the Partnership shall
be located at such place as may be designated by the General Partner.

                             ARTICLE III. PURPOSE.

         3.1  Purpose.  The  purpose for which the  Partnership  is formed is to
purchase leasehold  interests in the in certain oil and gas prospects located in
the Phu Horm Gas Field  Project  located in Khorat and Udon  Concessions  in the
Kingdom of  Thailand.  In  addition,  the  Partnership  may engage in any lawful
activity for which limited  partnerships  may be organized under the laws of the
State of Delaware and otherwise in accordance with the terms of this Agreement.

         3.2 Powers of Partnership.  The  Partnership  shall have all the powers
permitted  by law which are  necessary or desirable in carrying out the purposes
and business of the Partnership, including, but not limited to, the following:

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            (a)  Transact   business  in  any  state  or  nation  in  which  the
Partnership   may  lawfully   act,  for  itself  or  as   principal,   agent  or
representative for any Person, respecting the business of the Partnership;

            (b) Enter into, make,  perform and carry out, or cancel and rescind,
contracts  and  other  obligations  for any  lawful  purpose  pertaining  to the
business of the Partnership;

            (c) Apply for,  register,  obtain,  purchase  or  otherwise  acquire
trademarks,  trade names, labels and designs relating to or useful in connection
with any business of the Partnership,  and to use, exercise, develop and license
the use of the same;

            (d) Employ on behalf of the Partnership  legal counsel,  accountants
and other professional advisors with respect to any business of the Partnership;

            (e) Compromise,  submit to arbitration, sue on, and defend claims in
favor of or against the Partnership; and

            (f)  Exercise  all of the  general  rights,  privileges  and  powers
permitted  by the  provisions  of the Act,  as adopted or  hereafter  amended or
supplemented.

                                ARTICLE IV. TERM

         The  Partnership  shall  continue  in  perpetuity  from the date hereof
unless dissolved sooner pursuant to Article X of this Agreement (the "Term").

           ARTICLE V. CONTRIBUTIONS TO CAPITAL AND STATUS OF PARTNERS

         5.1 Capital Contributions and Loan Amounts.

            (a)  General  Partner.  The  General  Partner  has  made  a  capital
contribution  to the  Partnership  in the  amount set forth on Exhibit A to this
Agreement.

            (b) Limited  Partners.  Each Limited  Partner  shall make an initial
Capital  Contribution,  as described in Exhibit A to this  Agreement.  The name,
mailing  address,   taxpayer   identification   number,   Capital  Contribution,
Percentage Interest of each Partner is set forth in Exhibit A.

            (c) Additional Capital Contributions.

                  (i) The Partners shall not be obligated to make any additional
contributions to the capital of the Partnership.

            (d) Withdrawal of Capital  Contributions.  No Partner shall have the
right to  withdraw  or  reduce  its  Capital  Contribution,  or to  receive  any
distributions  from the Partnership,  except as otherwise  provided  herein.  No
Partner shall have the right to demand or receive any Partnership Property other
than cash from the  Partnership.  No interest or royalties  shall be paid

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to any Partner on its Capital Contribution.  No Partner shall have priority over
any other Partner,  either as to the return of its Capital Contribution or as to
Profits,  Losses or  distributions,  except as may be specifically  set forth in
this Agreement.

         5.2 Additional  Limited  Partners.  Additional  Limited Partners may be
admitted to the Partnership  with the consent of the General Partner and without
the consent of the Limited  Partners.  Any dilution of the  Percentage  Interest
resulting  from the admission of additional  Limited  Partners shall be borne by
all Partners pro rata in accordance with their Percentage Interests.

 ARTICLE VI. DISTRIBUTIONS; ALLOCATION OF PROFITS AND LOSSES; CAPITAL ACCOUNTS.

         6.1 Cash Available for Distribution.

            (a)   Distributions   Prior  to  Liquidation.   Cash  Available  for
Distribution,  if any,  shall be  distributed  at times and in amounts which the
General  Partner  may,  in its  reasonable  discretion,  determine.  Amounts not
distributed in liquidation of the Partnership shall be distributed as follows:

                  (i)      First,   99  percent  to  the  Limited   Partners  in
                           proportion  to and to the extent of their  Unreturned
                           Capital  Balances  and  one  percent  to the  General
                           Partner until all  Unreturned  Capital  Balances have
                           been reduced to zero;

                  (ii)     Then, 80 and 20 percent to the General Partner.

Notwithstanding the foregoing,  the General Partner may in its sole and absolute
discretion  and at any time  make a  distribution  to the  Limited  Partners  in
proportion to their respective Unreturned Capital Account balances.

            (b) Liquidating  Distributions.  Distributions in liquidation of the
Partnership and redemption of Interests shall be made in accordance with Capital
Accounts,  determined  after  taking  into  account all  allocations  under this
Article VI, including Profits or Losses with respect to property  distributed in
kind.

         6.2 Allocation of Profits and Losses.

            (a)  Allocation of Profits.  After giving  effect to the  Regulatory
Allocations  set forth in Exhibit B of this  Agreement,  Profits  for any fiscal
year or other period of the Partnership will be credited to the Capital Accounts
of the Partners in the following order of priority:

                  (i)      First,  to each Partner in  proportion  to and to the
                           extent of the excess, if any, of (A) cumulative prior
                           allocations  to the Partner under  subsection  (b) of
                           this   Section   6.2   over  (B)   cumulative   prior
                           allocations to the Partner

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                           under this clause (i);

                  (ii)     Then,  to each  Partner in  proportion  to and to the
                           extent  of the  excess,  if  any,  of (A)  cumulative
                           distributions to the Partner under Section 6.1 (a) as
                           of the date of allocation  over (B) cumulative  prior
                           allocations under this clause (ii);

                  (iii)    Then, 80 percent to Limited  Partner A and 20 percent
                           to  Limited  Partner B and 1 percent  to the  General
                           Partner.

            (b)  Allocation  of Losses.  After giving  effect to the  Regulatory
Allocations set forth in Exhibit B of this Agreement, Losses for any fiscal year
or other period will be allocated as follows:

                  (i)      First,  to each Partner in  proportion  to and to the
                           extent  of the  excess,  if  any,  of (A)  cumulative
                           Profits  allocated to the Partner for all prior years
                           under  subsection  (a) of this  Section  6.2 over (B)
                           cumulative  prior  Losses  allocated  during the same
                           period under this clause

                  (ii)     Then,  to Partners,  if any,  with  positive  Capital
                           Account balances,  in proportion to and to the extent
                           of such balances;

                  (iii)    Then entirely to the General Partner.

Notwithstanding the foregoing, Losses shall not be allocated to a Partner if the
allocation would cause or increase a deficit in the Partner's Capital Account at
a time when any other  Partner  has a  positive  Capital  Account  balance,  and
otherwise shall be allocated entirely to the General Partner.

         6.3 Special Tax Allocations;  Other Allocation  Rules; Tax Allocations:
Code Section 704(c).  Special tax  allocations,  other  allocation rules and tax
allocations  relating  to Code  Section  704(c)  are as set  forth on  Exhibit B
attached hereto and made a part hereof.

         6.4 Allocations in the Event of Transfer.

            (a)  If  all  or  any  portion  of an  Interest  is  transferred  in
accordance  with Article VIII hereof  (other than a  hypothecation  or any other
encumbrance  which secures an  indebtedness  but is not accompanied by immediate
rights to distributions), Profits, Losses, each item thereof and all other items
attributable  to such  Interest for the period from the beginning of the year in
which the transfer is effected  through the date of transfer  shall be allocated
to the transferor,  and all items attributable for the balance of the year shall
be allocated to the transferee. The General Partner may, in its sole discretion,
determine the apportionment  between pre- and  post-transfer  allocations on the
basis of the number of days of the year in each period or by an interim  closing

                                       9
<PAGE>

of  books  as of the  end  of the  date  of  transfer,  except  that  any  items
attributable  to a  transaction  giving rise to capital gain or loss  (including
gain on the disposition of "Section 1231 property" within the meaning of Section
1231 of the  Code)  shall be  allocated  entirely  to the  period  in which  the
transaction giving rise to the gain or loss occurred.  The Partnership shall not
make any  adjustments  for items of income,  gain,  loss,  credit,  or deduction
realized  or  incurred  prior to  transfer  but  deferred  in whole or part to a
subsequent period.

            (b) Solely for purposes of allocating Profits,  Losses and each item
thereof  as set  forth in  Sections  6.2  through  6.4,  the  Partnership  shall
recognize  the Transfer of such  Interest not later than the end of the calendar
month during  which it receives  written  notice of such  Transfer and the other
requirements  of  Article  VIII  hereof  are  satisfied,  provided  that  if the
Partnership does not receive a written notice stating the date such Interest was
transferred  and such other  information  as the General  Partner may reasonably
require  within thirty (30) days after the end of the calendar year during which
the  Transfer  occurs,  then  all of such  items  shall  be  allocated,  and all
distributions  shall be made,  to the  Person  who,  according  to the books and
records of the  Partnership,  on the last day of the  accounting  period  during
which the Transfer  occurs,  was the owner of the Interest.  The General Partner
and the  Partnership  shall  incur  no  liability  for  making  allocations  and
distributions  in accordance with the provisions of this Section 6.4, whether or
not the General  Partner or the  Partnership  has  knowledge  of any Transfer of
ownership of any Interest.

         6.5 Capital Accounts.

            (a) A Capital  Account  shall be maintained  for each  Partner.  The
provisions of this Agreement relating to the maintenance of Capital Accounts are
intended to comply with the Regulations  promulgated under Section 704(b) of the
Code.  The Capital  Account of each  Partner  shall be increased by (a) the cash
amounts of such Partner's Capital Contribution, (b) the Gross Asset Value of any
property or services  contributed to the Partnership by the Partner as agreed to
by the contributing Partner and the Partnership,  less any indebtedness to which
such  property is subject or which is assumed by the  Partnership  in connection
with the contribution (except that any amount by which such indebtedness exceeds
such  Gross  Asset  Value of the  property  shall be  treated  as a debit to the
Partner's  Capital  Account),  and (c) such  Partner's  share of Profits and any
items in the nature of income and gain  specially  allocated to it, and shall be
decreased by (y) the amount of cash and the Gross Asset Value of other  property
actually distributed to such Partner by the Partnership less any indebtedness to
which such  property is subject or which is assumed by the Partner in connection
with the distribution (except that any amount by which such indebtedness exceeds
such  Gross  Asset  Value of the  property  shall be  treated as a credit to the
Partner's Capital Account), and (z) such Partner's share of Losses.

            (b) In the  event a  Partner  Transfers  all or any  portion  of its
Interest in accordance  with the  provisions of this  Agreement,  the transferee
shall succeed to the individual  Capital Account of the transferor to the extent
such Capital Account relates to the transferred Interest.

                                       10
<PAGE>

            (c)  It  is  the  intent  of  this  Agreement  that  each  Partner's
allocations and distributions shall be made in accordance with Section 704(b) of
the Code.  If the  Partnership  is advised by legal  counsel  that any matter or
matters  contained in this  Agreement  are unlikely to be effective  for federal
income tax purposes,  the General  Partner is hereby  granted the power to amend
the allocation and/or distribution  provisions of this Agreement,  on the advice
of legal counsel to the  Partnership,  to the minimum extent necessary to effect
the allocation of Profits and Losses herein.

            (d) No  Partner  shall  be  required  at any  time to make  any cash
contribution  to the Partnership by reason of any deficit balance in its Capital
Account,  and no such deficit  balance  shall  increase or otherwise  affect the
liability of a Partner to third parties

         6.6 Tax Distributions.  Prior to any distributions  pursuant to Section
6.1 hereof (or otherwise),  the Partnership  shall distribute Cash Available for
Distribution  to the  Partners in such amounts as the General  Partner,  in good
faith, estimates (the "Estimated Tax Liability") to be sufficient to permit each
Partner to pay all federal and state  income taxes which each Partner will incur
as a result of the required inclusion of each Partner's  proportionate  share of
the Profits of the Partnership in determining  each Partner's  federal and state
tax liability,  provided that such distribution  shall be made no later than the
10th day of January of the year  following  the year in question and such amount
shall be confirmed by the General  Partner as soon  thereafter  as is reasonably
practicable.  Any  distribution  made  under this  Section  6.6 shall be applied
against such amounts such Partner is entitled to receive pursuant to Section 6.1
hereof.  In the event such Partner  receives an amount  pursuant to this Section
6.6 which the  General  Partner  in good faith  determines  is (i) less than the
Estimated Tax Liability,  then the  Partnership  shall  promptly  distribute any
shortfall,  or (ii) greater than the amount such Partner was entitled to receive
pursuant to Section 6.1 hereof,  such Partner  shall  immediately  return to the
Partnership  the  difference  between the amount  received  and the amount which
should have been distributed.

    ARTICLE VII. MANAGEMENT; RIGHTS, POWERS, AND OBLIGATIONS OF THE PARTNERS

         7.1 Management of the Partnership.  Subject to Section 7.2 hereof,  the
management and control of the Partnership and its business and affairs,  and the
exercise of the powers of the Partnership described in Section 3.2 hereof, shall
be vested in the General Partner.

         7.2 Certain  Limitations of the General Partner.  Without obtaining the
affirmative  vote of a Majority  in  Interest  of the Class A Limited  Partners,
voting as a separate  class,  the General  Partner shall not do or permit any of
the following acts on behalf of the Partnership  unless  otherwise  specifically
stated herein:

                  (i) Act in contravention of this Agreement;

                  (ii)  Except as  provided in Article X, do any act which would
make it impossible to carry on the ordinary business of the Partnership;

                                       11
<PAGE>

                  (iii) Confess a judgment against the Partnership;

                  (iv) Execute or deliver any  assignment for the benefit of the
creditors of the Partnership;

                  (v)  Impose  a  lien,  lease,  security  interest,   easement,
liability  or otherwise  encumber  Partnership  Property,  other than the Senior
Security Interest and the Class A Security Interest; or

                  (vi) sell or dispose of all or substantially all of the assets
of the  Partnership  Property  in a  transaction  outside  of the  Partnership's
ordinary course of business, provided that the Partnership shall not be required
to obtain  such  affirmative  vote in the event  that  Mercantile  is selling or
disposing of all or  substantially  all of its assets  pursuant to the same or a
related transaction.

         7.3 Meetings of the Partners.

            (a) Meetings of Partners.  Except as otherwise specifically provided
in this Agreement, special meetings of the Partners may be called by the General
Partner, by written notice to the Partners given not less than ten (10) nor more
than sixty (60) days prior to the date of such meeting.  Meetings  shall be held
at such place  within or without the State of Delaware as is  designated  in the
notice of the meeting.

            (b) Quorum.  Except as provided in other  sections of this Agreement
where less than all of the Partners are entitled to vote, the Partners necessary
to  approve  any  action to be taken at such  meeting  must be  present  for the
conduct of business at any meeting of the Partners.

            (c) Written Consent. Any action of the Partners may be taken without
a meeting if the  Partners  required to approve such action  consent  thereto in
writing.

            (d) Meeting by Telephone. The meeting of the Partners may be held by
telephone conference or similar communications equipment.

            (e) Proxies.  A Partner may authorize one or more Persons to act for
such  Partner by proxy,  provided the proxy is signed by such  Partner.  A proxy
shall not be valid after the expiration of one (1) year from its date.

            (f) Waiver of Notice.  Any notice  required under this Agreement for
the  holding of  meetings  of the  Partners  may be waived by any  Partner by an
instrument in writing  signed by such Partner either before or after the meeting
to which such waiver relates.

         7.4 Voting by the Partners.  Unless otherwise stated in this Agreement,
an affirmative vote of a Majority in Interest of the Limited Partners, voting as
a class,  shall be required to adopt any matter subject to a vote of the Limited
Partners.

                                       12
<PAGE>

         7.5  Independent  Activities.  Subject to any other agreement among the
parties,  Partners and Affiliates of Partners may, notwithstanding the existence
of this Agreement,  engage in whatever  activities they choose without having or
incurring  any  obligation  to offer  any  interest  in such  activities  to the
Partnership  or any  Partner,  and  neither  this  Agreement  nor  any  activity
undertaken  pursuant  hereto shall  prevent the  Partners or any  Affiliate of a
Partner from engaging in any activity,  or require the Partners or any Affiliate
of a Partner to permit the Partnership or any Partner to participate therein.

         7.6  Execution  of  Agreements  and   Instruments.   Any  agreement  or
instrument may be executed on behalf of the  Partnership by the General  Partner
or as otherwise authorized by the General Partner.

         7.7 Holding of Assets. All Partnership Property, whether real, personal
or mixed, owned by the Partnership shall be held in the name of the Partnership.

         7.8 Prior  Expenses.  To the  extent  expenses  have been  incurred  in
connection  with  the  Partnership  prior  to the  date of this  Agreement,  the
Partnership  shall pay such expenses or shall  reimburse the General  Partner or
any other Person as appropriate for such expenses if already paid.

             ARTICLE VIII. TRANSFER OF INTERESTS IN THE PARTNERSHIP

         8.1 Prohibited  Transfers.  Neither the General  Partner nor any of the
Limited Partners may sell, assign,  transfer or otherwise dispose of, or pledge,
hypothecate  or  transfer  or in any  manner  encumber,  his or its  Partnership
Interest or any part thereof  except as permitted in this Article VIII,  and any
act in violation of this Article VIII shall not be binding upon or recognized b,
the  Partnership  regardless of whether the General Partner shall have knowledge
thereof.

         8.2 General Partner.

            (a) Upon the withdrawal,  retirement,  resignation,  removal, death,
insanity,  dissolution  or  bankruptcy  of a General  Partner (the  "Terminating
General Partner") and the continuation of the business of the Partnership by the
remaining  General  Partner[] (or if there is no remaining  General  Partner,  a
newly  appointed  General  Partner,  appointed upon the consent of a Majority in
Interest of the Limited Partners),  the Partnership Interest of such Terminating
General Partner shall be converted to a Limited Partnership Interest;  provided,
however,  that the  distributions,  Profits and Losses to which the  Terminating
General  Partner shall be entitled  shall not be changed from those to which the
Terminating General Partner was entitled while a General Partner.

            (b) Until the  dissolution and  liquidation of the  Partnership,  no
General  Partner  shall  voluntarily   withdraw,   retire  or  resign  from  the
Partnership  without the consent of the then-remaining  General Partners,  or if
there is no other  General  Partner,  of a Majority  in  Interest of the Limited
Partners. Although such withdrawal,  retirement or resignation in breach of this
Subsection  8.2(b) may not be enjoined,  such General Partner shall be liable in
damages to the

                                       13
<PAGE>

Partnership  for such breach.  A sole remaining  General Partner
seeking to withdraw, may do so only upon obtaining the prior written approval of
a Majority-in-Interest of the Limited Partners.

         8.3 Limited Partners.

            (a) The General  Partner may (1) pursuant to this Section 8.3, admit
as a substituted  Limited Partner any successor in interest to a Limited Partner
either deceased or under legal disability,  and (2) pursuant to this Section 8.3
admit as substituted Limited Partners assignees of Limited Partners:

                  (i) A substituted  Limited Partner is a person admitted to all
the rights of a Limited Partner;

                  (ii) An  assignee  is a person to whom a Limited  Partner  has
assigned his Interest in the  Partnership  but who has not become a  substituted
Limited  Partner.  An assignee shall have no right to require any information or
accounting of the  Partnership's  transactions  or to inspect the  Partnership's
books but shall only be entitled to receive the share of the  distributions  and
allocations  to which his assignor  would  otherwise be entitled as set forth in
Article VI.

            (b) No assignee  of the whole or any portion of a Limited  Partner's
Interest shall have the right to become a substituted  Limited  Partner in place
of his assignor or have any other rights of a Limited Partner  hereunder  unless
all of the following conditions are satisfied:

                  (i)  The  written  consent  of the  General  Partner  to  such
substitution shall be obtained,  the granting or denial of which shall be within
the sole and absolute discretion of the General Partner;

                  (ii) A duly executed and  acknowledged  written  instrument of
assignment has been filed with the Partnership which sets forth the intention of
the  assignor  that the assignee  become a  substituted  Limited  Partner in his
place;

                  (iii) The assignor and assignee  execute and acknowledge  such
other  instruments  as the General  Partner may deem  necessary  or desirable to
effect such admission,  including,  without  limitation,  an opinion of counsel,
acceptable  to the General  Partner,  to the effect that the  assignment  of the
interest will not violate the applicable provision of the Securities Act of 1933
and any applicable state securities laws, the written acceptance and adoption by
the  assignee  of  the   provisions  of  this   Agreement  and  his   execution,
acknowledgment,  and delivery to the General Partner of a Power of Attorney, the
form and content of which are more fully described in Paragraph 12 hereof; and

                  (iv) A transfer fee not to exceed $300.00 per  transaction has
been paid to the Partnership.

                                       14
<PAGE>

            (c) Any person admitted to the Partnership as a Substituted  Limited
Partner  shall be  subject  to all of the  provisions  of this  Agreement  as if
originally a party to it.

            (d)  Subject  to  the  provisions  of  subparagraph  8.3(j)  hereof,
compliance with the suitability standards imposed by the Partnership, applicable
"blue  sky" laws,  if any,  and the rules of any other  applicable  governmental
authority and subject to the written consent of the General Partner (except that
assignments to heirs and personal  representatives  may be made without  consent
upon the death of a Limited Partner),  a Limited Partner shall have the right to
assign all or a portion of his  Interest by a written  assignment,  the terms of
which are not in contravention of any of the provisions of this Agreement, which
assignment  has  been  duly  executed  by  the  assignor  and  received  by  the
Partnership and recorded on the books thereof.  Any assignment in  contravention
of any of the  provisions  of this  Subsection  8.3(d)  shall be of no force and
effect and shall not be  binding  upon or  recognized  by the  Partnership.  THE
INTERESTS  EVIDENCED  BY THIS  AGREEMENT  HAVE NOT  BEEN  REGISTERED  UNDER  THE
SECURITIES  ACT OF 1933, AS AMENDED,  OR THE SECURITIES  LAWS OF ANY STATE.  THE
INTERESTS  ACQUIRED BY LIMITED  PARTNERS  MAY NOT BE SOLD OR OFFERED FOR SALE IN
THE ABSENCE OF AN EFFECTIVE  REGISTRATION  STATEMENT FOR THE INTERESTS UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND SUCH STATE LAWS AS MAY BE APPLICABLE, OR
AN OPINION OF COUNSEL  SATISFACTORY TO THE PARTNERSHIP THAT SUCH REGISTRATION IS
NOT REQUIRED.

                  (i)  Except as  provided  in  Subsections  8.3(h),  8.3(i) and
8.3(j), an assignee of an Interest shall be entitled to receive distributions of
cash or  other  property  from  the  Partnership  attributable  to the  Interest
acquired by reasons of such  assignment from and after the effective date of the
assignment  of an Interest to him. The  "effective  date" of an assignment of an
Interest  shall be the  last day of the  calendar  month  in which  the  written
instrument  of  assignment,  in form and substance  satisfactory  to the General
Partner, is received and approved by the General Partner.

                  (ii)    Anything    contained    herein   to   the    contrary
notwithstanding,  both the Partnership and the General Partner shall be entitled
to treat the assignor of a Partnership Interest as the absolute owner thereof in
all respects,  and shall incur no liability for  distributions  of cash or other
property  made in good faith to him until such times as the  written  assignment
has  been  received  by,  and  recorded  on the  books  of the  Partnership,  in
accordance with the provisions of Subsection 8.3(d)(i).

            (e) The General  Partner may elect to treat an assignee  who has not
become a substituted  Limited  Partner as a substituted  Limited  Partner in the
place of his assignor, should it deem, in its sole and absolute discretion, that
such  treatment  be in the  best  interest  of the  Partnership  for  any of its
purposes or for any of the purposes of this Agreement.

            (f) No consent of any of the  Limited  Partners is required to elect
the substitution of a Limited Partner, except that a Limited Partner who assigns
his Interest  shall,  in

                                       15
<PAGE>

order for the assignee to be admitted as a substituted Limited Partner, evidence
his intention that the assignee be admitted as a substituted  Limited Partner in
his place and must execute such instruments as the General Partner shall, in its
sole  and  absolute  discretion,  determine  to be  necessary  or  desirable  in
connection therewith.

            (g) The General  Partner  shall be required to amend this  Agreement
only quarterly but may, in its sole and absolute discretion, within a reasonable
time after the date of their written consent to the  substitution of an assignee
as a substituted  Limited Partner,  amend this Agreement to reflect the addition
of said assignee as a Limited Partner.  Neither copies of this Agreement nor any
amendment  thereto  need be  delivered  to any of the Limited  Partners and such
requirement in any statute is hereby waived.  However, upon request, the General
Partner will promptly  thereafter  furnish the requesting Limited Partner with a
copy of this Agreement and any amendments thereto as of the date of request.

            (h) Upon the death or legal  incompetency  of an individual  Limited
Partner,  his personal  representative shall have all of the rights of a Limited
Partner for the purpose of settling or the managing  his estate,  and such power
as the  decedent or  incompetent  possessed  to  constitute  a  successor  as an
assignee of his Interest in the  Partnership  and to join with such  assignee in
making  application to substitute such assignee as a Limited  Partner.  However,
such  personal  representative  shall not have the right to become a substituted
Limited  Partner  in the  place  of  his  predecessor  in  interest  unless  the
conditions of this Article VIII are first satisfied  (except with respect to the
requirement that the assignor execute and acknowledge instruments).

            (i) Upon the bankruptcy,  dissolution or other cessation to exist as
a  legal  entity  of a  General  or  Limited  Partner,  not an  individual,  the
authorized  representative  of such  entity  shall  have all of the  rights of a
Limited  Partner for the  purpose of  effecting  the orderly  winding up and the
disposition  of the  business  of such  entity  and such  power  as such  entity
possessed  to  constitute  a successor  as an  assignee  of its  interest in the
Partnership  and to join with such assignee in making  application to substitute
such assignee as a Limited Partner.  However, such personal representative shall
not have the right to become a substituted  Limited  Partner in the place of his
predecessor  in  interest  unless the  conditions  of this  paragraph  are first
satisfied  (except with respect to the requirement that the assignor execute and
acknowledge instruments).

            (j) No assignment or transfer of an interest in the  Partnership may
be made which would result in the termination of the  Partnership  under Section
708 of the Code.

                ARTICLE IX. WITHDRAWAL AND REMOVAL OF A PARTNER

         9.1 Withdrawal.  No Partner may withdraw or resign voluntarily from the
Partnership.

         9.2 Removal of a Limited  Partner.  Upon the  occurrence  of any of the
following  events (each,  a "Removal  Event"),  the  Partnership  shall have the
option (but not the obligation) to remove a Limited  Partner.  A Limited Partner
may only be removed pursuant to this Section 9.2 in the event of:

                                       16
<PAGE>

            (a) The  dissolution,  termination,  or  Bankruptcy  of the  Limited
Partner;

            (b) Any  assignment  or  attempted  assignment  of the Interest of a
Limited Partner or attempted  withdrawal of the Limited Partner contrary to this
Agreement; or

            (c) The material  breach of this  Agreement  by the Limited  Partner
that is not cured (if such  material  breach is capable of being  cured)  within
thirty  (30) days of the  receipt  of notice  form the  General  Partner  of the
occurrence of such material breach.

         9.3 Death or Disability of a Limited Partner. In the event of the death
or Disability of an individual  Limited Partner,  the Partnership shall have the
assignable option (but not the obligation) to acquire all or any portion of such
Limited  Partner's  Interest  by  notifying  the  Limited  Partner,  the Limited
Partner's estate or the Limited  Partner's  representative,  as the case may be,
within ninety (90) days of the date of death or  determination  of Disability of
such Limited Partner of the  Partnership's  intention to acquire the Interest of
such  Limited  Partner  in the  Partnership.  The price  and  terms of  purchase
pursuant to which the  Partnership  shall be  entitled  to  exercise  the option
granted in this Section 9.3 shall be those set forth in Section 9.4 hereof.

         9.4  Effect  of  Removal.  If the  Partnership  exercises  the  options
described in Sections 9.2 or 9.3, then the Partnership  shall redeem the removed
Partner's  Interest for the purchase  price (the  "Purchase  Price")  determined
under Section 9.5 to be paid on the terms described in Section 9.6.

         9.5  Valuation  of the  Interest  of a Partner.  For  purposes  of this
Article IX, the  Purchase  Price for a removed,  deceased  or  Disabled  Limited
Partner's  Interest  shall  be the  value  of such  Limited  Partner's  Interest
determined as follows:

            (a) The General  Partner  shall select an  independent,  third-party
appraiser,  experienced in appraising limited  partnership  interests similar to
the Interests (the  "Appraiser").  The Appraiser will determine the value of the
Limited  Partner's  Interest  as of the end of the  calendar  month  immediately
preceding the Removal Event based upon the value of the Partnership's assets net
of liabilities  assuming all assets were sold at such value and all  liabilities
were  satisfied by cash payments at their  present value and any resulting  deem
Profit  or Loss was  allocated  to the  Partners  pursuant  to the terms of this
Agreement. The determination of the value of a Limited Partner's Capital Account
shall  assume  the  going  concern  of the  Partnership  and shall not take into
account  minority  discounts for the Capital  Account being valued.  The date on
which the  Capital  Account is to be valued  pursuant to this  Section  shall be
referred to herein as a "Valuation  Date." The Appraiser shall within sixty (60)
days of the Removal  Event  prepare a statement  and report of the amount of the
Limited  Partner's  Capital  Account as of the  Valuation  Date.  A copy of such
statement and report will be forwarded to each Partner.

            (b)  The  Partnership's  name  and  goodwill  shall,  as  among  the
Partners, be deemed to have no value and shall belong to the Partnership, and no
Partner shall have any right or claim individually to the use thereof.

                                       17
<PAGE>

         9.6  Payments to a Removed  Limited  Partner.  The Purchase  Price,  as
determined under Section 9.5, shall be paid to the removed, deceased or Disabled
Limited Partner, or its successor in interest as follows:

            (a) Ten percent (10%) in cash or immediately  available funds by the
ninetieth  (90th)  day  following  the  date  of the  Removal  Event,  death  or
Disability (the "Closing Date"), and

            (b) The balance of principal  together  with  interest on the unpaid
principal balance at a rate of interest equal to the Prime Rate in effect on the
business  day prior to the  Closing  Date in  twelve  (12)  equal  installments,
payable each March 31, June 30, September 30 and December 31,  commencing on the
first March 31, June 30, September 30 or December 31 following the Closing Date;
provided,  however,  that (i) the Partnership  may, at any time and from time to
time at its sole option and  election,  without  penalty or  premium,  repay the
balance,  in whole or in part, and (ii) the balance shall become immediately due
and payable (A) if any  installment of the balance shall not have been paid when
due and the  Partnership  shall have failed to cure such default within ten (10)
days after the Partnership's  receipt of a written notice of such default or (B)
if the Partnership is dissolved.

            ARTICLE X. DISSOLUTION AND WINDING UP OF THE PARTNERSHIP

         10.1 Dissolution of the Partnership. The Partnership shall be dissolved
upon the first to occur of any of the following events:

            (a) An order by a court of competent  jurisdiction  decrees that the
Partnership be dissolved;

            (b) The  determination  of the  General  Partners  and a Majority in
Interest of the Limited Partners to dissolve; or

            (c) The sale or other disposition of all or substantially all of the
assets of the Partnership.

         The  occurrence of any Removal  Event of any Limited  Partner shall not
cause the dissolution of the Partnership.

         10.2  Winding  Up  of  the  Partnership.  Upon  a  dissolution  of  the
Partnership,  the  General  Partner or other  Person  appointed  by the  General
Partner, shall take full account of the Partnership's assets and liabilities and
the assets shall be liquidated as promptly as is consistent  with  obtaining the
fair value  thereof and as shall be necessary  to timely make the  distributions
below described,  and the proceeds therefrom, to the extent sufficient therefor,
shall be applied and distributed in the following order:

                                       18
<PAGE>

            (a) First, to the payment and discharge of all of the  Partnership's
debts and liabilities  other than liabilities  owing to the Partners,  including
establishment of any necessary contingency reserves;

            (b) Then, in accordance with Section 6.1 (b).

            (b) Unreturned Capital Balance Unreturned Capital Balance

         10.3 Distribution In Kind. Any Partnership Property distributed in kind
in the  liquidation  shall be valued and treated  pursuant to Section  9.5.  The
difference between the value of any item of Partnership  Property distributed in
kind and its book value shall be treated as a gain or loss on the disposition of
Partnership  Property and shall be  allocated  among the Partners as provided in
Article VI.

        ARTICLE XI. BOOKS OF ACCOUNTS, ACCOUNTING, REPORTS, FISCAL YEAR,
                        BANKING AND TAX MATTERS PARTNER

         11.1 Accounting,  Books and Records.  The Partnership shall maintain at
its  principal  place of  business or such other  places as the General  Partner
shall determine books of account for the Partnership which shall show a true and
accurate  record of all costs and  expenses  incurred,  all  charges  made,  all
credits made and received, and all income derived in connection with the conduct
of the  Partnership  and  the  operation  of its  business  in  accordance  with
generally accepted accounting principles consistently applied and, to the extent
inconsistent therewith in accordance with this Agreement.  The Partnership shall
use the accrual  method of accounting in  preparation  of its annual reports and
for tax purposes and shall keep its books and records accordingly.  Each Partner
or its designated  representative shall have the right, during ordinary business
hours, to have access to, inspect and copy, at its sole expense, the contents of
such books or records.

         11.2 Other Records.

            (a)  The  Partnership  shall  maintain  at its  principal  place  of
business the following:

                  (i) A   current   list  of  the  full   names  and  last known
business address of each Partner;

                  (ii)  A  copy of the Certificate of Limited  Partnership,  all
amendments  thereto,  and executed copies of any powers of attorney  pursuant to
which the same have been executed;

                  (iii) A copy of this Agreement,  all amendments  thereto,  and
executed  copies of any written  powers of  attorney  pursuant to which the same
have been executed;

                                       19
<PAGE>

                  (iv)  Copies  of any  federal,  state,  and local  income  tax
returns and reports of the Partnership for the three most recent years; and

                  (v) Copies of any financial  statements of the Partnership for
the three most recent years.

            (b) Except as otherwise  set forth  herein,  each Partner shall have
the right,  exercisable  upon written demand,  to examine the items described in
Section  11.2(a) during ordinary  business hours and for any purpose  reasonably
related to the  Partner's  Interest in the  Partnership  (which  purpose must be
stated in the written demand),  and shall have the right, at its own expense, to
make copies of all such items.

         11.3 Reports.

            (a) The General  Partner shall be responsible for the preparation of
financial  reports of the Partnership and the coordination of financial  matters
of the Partnership with the Accountant.

            (b) Within 90 days after the end of each  fiscal  year,  the General
Partner  shall  transmit to each  Partner  financial  statements  based upon the
annual audit of the books and financial records of the Partnership,  prepared in
accordance with generally  accepted  accounting  principles,  and, to the extent
inconsistent  therewith,  in  accordance  with  this  Agreement,  including  the
following:

                  (i) A copy of the balance sheet of the  Partnership  as of the
last day of such fiscal year;

                  (ii) A  statement  of income or loss for the  Partnership  for
such fiscal year;

                  (iii)  A  statement  of the  Partners'  Capital  Accounts  and
changes therein for such fiscal year; and

                  (iv) A  statement  of  Partnership  cash flow for such  fiscal
year.

            (c) Within  ninety (90) days after the end of each fiscal year,  the
General  Partner  shall  transmit  to each  Partner  a  report  indicating  such
Partner's share of all items of income or gain, expense, loss or other deduction
and tax credit of the  Partnership  for such fiscal  year,  and such  additional
information to enable the Partners to complete their respective tax returns.

            (d) The General Partner shall transmit to the Limited  Partners such
other reports and information as the Limited Partners may reasonably request.

         11.4 Fiscal Year. The fiscal year of Partnership  shall be the calendar
year.

                                       20
<PAGE>

         11.5 Partnership Funds. All funds of the Partnership shall be deposited
in its name in a separate  bank account or accounts or in an account or accounts
of a savings and loan  association  or brokerage  firm as shall be determined by
the General Partner.

         11.6 Tax  Matters  Partner.  The  General  Partner  shall  serve as the
Partnership's  "tax matters  partner" (as such term is defined in the Code).  In
such capacity, the Tax Matters Partner is hereby authorized and empowered to act
for and  represent  the  Partnership  and each of the  Partners  before  (i) the
Internal  Revenue  Service  ("Service")  in  any  audit  or  examination  of any
Partnership tax return, and (ii) any court selected by the Partners for judicial
review of any  adjustment  assessed by the Service.  The  Partners  specifically
acknowledge,  without limiting the general  applicability of this Section,  that
the Tax Matters  Partner  shall not be liable,  responsible  or  accountable  in
damages or  otherwise  to the  Partnership  or any Partner  with  respect to any
action taken by him in his capacity as the Tax Matters Partner, provided he used
reasonable business judgment with respect to the action taken. All out-of-pocket
expenses  incurred by the Tax Matters Partner in his capacity as the Tax Matters
Partner  shall be  considered  expenses  of the  Partnership  for  which the Tax
Matters Partner shall be entitled to full reimbursement.

                          ARTICLE XII. INDEMNIFICATION

         12.1 Indemnification.

            (a) General  Provisions.  Except as otherwise set forth herein,  the
Partner and their members, partners, Affiliates, directors, officers, agents and
employees and the members of the Governance  Committee (herein referred to as an
"Indemnitee"),   shall  be  indemnified,  held  harmless  and  defended  by  the
Partnership  (out of  Partnership  assets,  including  the proceeds of liability
insurance) against any claim, demand, controversy,  dispute, cost, loss, damage,
expense  (including  reasonable  attorneys'  fees),  judgment  and/or  liability
incurred by or imposed upon the Indemnitee in connection  with any action,  suit
or proceeding (including any proceeding before any administrative or legislative
body or agency) to which the Indemnitee may be a party or otherwise involved, or
with which the Indemnitee may be threatened, by reason of any action or omission
of the Indemnitee (or the Indemnitee's  employee) in connection with the conduct
of Partnership affairs.  Such  indemnification  extends to the Indemnitee in its
capacity,  at the time the  cause of  action  arose or  thereafter,  as  general
partner, member of any committee or as a member, Affiliate,  director,  officer,
partner,  employee  or  other  agent of any  other  organization  in  which  the
Partnership  owns an interest or of which the  Partnership is a creditor,  which
other  organization  the Indemnitee (or its employee) serves in such capacity at
the request of the  Partnership  (whether or not the  Indemnitee or its employee
continues to serve in such capacity at the time such action,  suit or proceeding
is brought or threatened). The indemnification set forth herein shall not extend
with respect to actions or omissions of the Indemnitee  (or its employee)  which
shall have been finally  adjudicated  (by  settlement  or otherwise) in any such
action, suit or proceeding to have constituted actual fraud,  willful misconduct
or  gross  negligence.  In the  event  of  settlement  of any  action,  suit  or
proceeding  brought  or  threatened,  such  indemnification  shall  apply to all
matters covered by the settlement.  The foregoing right of indemnification shall
be in addition to any rights to which any  Indemnitee  may otherwise be entitled
and  shall  inure to the

                                       21
<PAGE>

benefit of the executors, administrators,  personal representatives,  successors
or assigns of each such Indemnitee.

            (b)  Advance  Payment of  Expenses.  The  Partnership  shall pay the
expenses incurred by an Indemnitee in defending a civil or criminal action, suit
or proceeding, or in opposing any claim arising in connection with any potential
or threatened  civil or criminal action,  suit or proceeding,  in advance of the
final  disposition  of such  action,  suit or  proceeding,  upon  receipt  of an
undertaking  by such  Indemnitee to repay such payment if he shall be determined
to be not entitled to  indemnification  therefore as provided herein;  provided,
however, that in such instance the Indemnitee is not commencing an action, suit,
or  proceeding  against  the  Partnership,  or  defending  an  action,  suit  or
proceeding  commenced  against him by the  Partnership or any Partner thereof or
opposing a claim by the Partnership or any Partner thereof arising in connection
with any such potential or threatened action, suit or proceeding.

            (c) Insurance.  The Partnership may purchase and maintain  insurance
with  such  limits  or  coverages  as  the  General  Partner   reasonably  deems
appropriate,  at the expense of the Partnership and to the extent available, for
the  protection  of any  Indemnitee  against  any  liability  incurred  by  such
Indemnitee in any such capacity or arising out of his status as such, whether or
not the  Partnership  has the power to indemnify  such  Indemnitee  against such
liability.   The  Partnership  may  purchase  and  maintain  insurance  for  the
protection of any officer, director, employee,  consultant or other agent of any
other  organization  in which the  Partnership  owns an interest or of which the
Partnership  is a  creditor  against  similar  liabilities,  whether  or not the
Partnership has the power to indemnify him or it against such  liabilities.  Any
amounts payable by the  Partnership to an Indemnitee  pursuant to the provisions
of Section  12.1(a)  above  shall be  payable  first  from the  proceeds  of any
insurance  recovery  pursuant to policies  purchased by the Partnership and then
from the other assets of the Partnership; provided, that the foregoing shall not
affect the  Partnership's  obligation  to advance  expenses  pursuant to Section
12.1(b)  hereof in  circumstances  in which the  insurance  Partnership  who has
issued such policy will not advance such expenses.

                          ARTICLE XIII. MISCELLANEOUS

         13.1 Agreement for Further Execution. The Partners agree to sign, swear
or acknowledge any  certificates or filings required by the laws of the State of
Delaware or any other state,  to sign,  swear or  acknowledge  any  amendment or
cancellation  of such  certificate  or filings  whether or not such amendment or
cancellation  is  required  by law;  to sign,  swear or  acknowledge  such other
certificates,  filings,  documents or affidavits of assumed name,  trade name or
the like (and any amendments or  cancellations  thereof that may be required for
conduct  of the  Partnership's  business)  and to cause the filing of any of the
same for record wherever such filing shall be required by law. This Section 13.1
shall not  prejudice  or affect the rights of the  Partners  to approve  certain
amendments to this Agreement as herein provided.

         13.2 Amendments.

                                       22
<PAGE>

            (a) Except as otherwise  provided in this Agreement,  no alteration,
modification  or amendment of this Agreement shall be made unless in writing and
signed (in  counterpart  or otherwise) by the General  Partner and a Majority in
Interest of the Limited  Partners,  except that no alteration,  modification  or
amendment of any Section hereof which would  materially and adversely affect the
economic  interests of one or more (but not all) of the Limited  Partners may be
made (except as provided  below)  without the  unanimous  consent of all Limited
Partners so adversely affected.  Notwithstanding  the foregoing,  no increase in
the amount required to be contributed to the Partnership by the Partners,  other
than as required herein or under applicable law, may be made without the consent
of all the Partners.

            (b) Any provision to the contrary contained herein  notwithstanding,
the General Partner may,  without the consent or approval of any Partners,  make
such  amendments to this  Agreement  binding on the  Partners,  (i) to correct a
typographical  error,  cure any  ambiguity,  correct or supplement any provision
herein which may be inconsistent with any other provisions herein,  (ii) to make
any other  amendment if such  amendment  is not adverse to the  interests of the
Limited  Partners  as a whole or as a class or if such  amendment  benefits  the
Limited  Partners as a whole or as a class; and (iii) to reflect the addition of
Limited Partners pursuant to Section 5.2; provided,  however,  that no amendment
shall be adopted  pursuant to this Section  13.2(b) unless the adoption  thereof
does not affect the  status of the  Partnership  as a  partnership  for  federal
income tax purposes.

         13.3 Notices.

            (a) Any  notice to be given  under this  Agreement  shall be made in
writing  and sent by express,  registered  or  certified  mail,  return  receipt
requested,  postage prepaid,  fax, or commercial delivery service,  addressed as
set forth below:

                  (i) If to the General Partner or the Partnership:

                      5858 Westheimer Street, Suite 708
                      Houston, TX  77057

                  (ii) If to any  Partner,  such  notice  shall be mailed to the
address of the Partner appearing on the records of the Partnership.

            (b) Any Partner may change the address to which notice is to be sent
by giving  notice of such  change to the  Partnership  in  conformity  with this
Section 13.3.

            (c) Any such  notice  shall be  deemed  to be  delivered,  given and
received for all purposes as of the date  delivered if delivered by a commercial
delivery  service or by  confirmed  fax, or as of the date on which the same was
deposited in a regularly maintained  receptacle for the deposit of United States
mail, if sent by express, registered or certified mail.

         13.4 Governing Law and  Jurisdiction.  This Agreement shall be governed
by, and  construed  in  accordance  with,  the laws of the State of  Delaware as
interpreted  by the  courts  of

                                       23
<PAGE>

said  Commonwealth,  notwithstanding  any rules  regarding  choice of law to the
contrary.  The parties to this Agreement agree to the exclusive  jurisdiction of
the courts of New Castle County, Delaware and the Federal courts of the District
of Delaware for resolution of  controversies  arising out of or relating to this
Agreement and any related instruments, agreements or documents.

         13.5 Binding Nature of Agreement.  Except as otherwise  provided,  this
Agreement  shall be binding  upon and inure to the benefit of the  Partners  and
their personal representatives, successors and assigns.

         13.6  Additional  Partners.  Each  substitute,  additional or successor
Partner shall become a signatory  hereof by signing such number of  counterparts
of this Agreement and such other  instrument or instruments  and in such manner,
as  the  General  Partner  shall  determine.  By so  signing,  each  substitute,
additional  or  successor  Partner,  as the case may be, shall be deemed to have
adopted and to have agreed to be bound by all the provisions of this  Agreement;
provided, however, that no such counterpart shall be binding until it shall have
been signed by the Partnership.

         13.7 Validity. In the event that all or any portion of any provision of
this  Agreement  shall be held to be  invalid,  the same shall not affect in any
respect whatsoever the validity of the remainder of this Agreement.

         13.8 Entire  Agreement.  This  Agreement  and the  agreements  attached
hereto as Exhibits  constitute the entire  understanding and agreement among the
parties  hereto with respect to the subject  matter  hereof,  and supersedes all
prior  and  contemporaneous   agreements  and  understandings,   inducements  or
conditions, express or implied, oral or written, except as contained herein.

         13.9 Indulgences, Etc. Neither the failure nor any delay on the part of
any party hereto to exercise any right,  remedy,  power or privilege  under this
Agreement  shall  operate as a waiver  thereof;  nor shall any single or partial
exercise of any right,  remedy, power or privilege preclude any other or further
exercise of the same or any waiver of any right, remedy, power or privilege with
respect to any occurrence be construed as a waiver of such right,  remedy, power
or privilege with respect to any other occurrence.  No waiver shall be effective
unless it is in writing and signed by the party  asserted to have  granted  such
waiver.

         13.10 Execution in Counterparts.  This Agreement may be executed in any
number of  counterparts,  each of which  shall be deemed  to be an  original  as
against  any  party  whose  signature  appears  thereon,  and all of such  shall
together constitute one and the same instrument.

         13.11  Paragraph.  The  paragraph  headings in this  Agreement  are for
convenience  only,  form no part of this  Agreement,  and shall not  affect  its
interpretation.

         13.12 Number of Days.  In computing  the number of days for the purpose
of this Agreement, all days shall be counted,  including Saturdays,  Sundays and
holidays; provided,

                                       24
<PAGE>

however, that if the final day of any time period falls on a Saturday, Sunday or
holiday,  then such  final day shall be deemed to be the next day which is not a
Saturday, Sunday or holiday.

         13.13  Interpretation.   No  provision  of  this  Agreement  is  to  be
interpreted  for or against any party  because that party or that party's  legal
representative drafted such provision.

         13.14  Corporate  Authority.  Any  corporation  or trust  signing  this
Agreement  represents and warrants that the execution,  delivery and performance
of this Agreement by such  corporation or trust has been duly  authorized by all
necessary corporate or trustee action.

         13.15 Third Party Beneficiaries. Notwithstanding anything herein to the
contrary,  no provision of this Agreement is intended to benefit any party other
than the Partners hereto and their successors and assigns in the Partnership and
shall not be enforceable by any other party.

         13.16 Appointment of Attorney-in-fact.  Each Partner hereby irrevocably
constitutes   and   appoints   the   General   Partner   its  true  and   lawful
attorney-in-fact,  with full power of substitution, and with the General Partner
having  full  power  and  authority  in its name,  place  and stead to  execute,
acknowledge,  deliver,  swear to,  file and record with the  appropriate  public
offices  such  certificates,  instruments  and  documents as may be necessary or
appropriate  to carry out the  provisions of this  Agreement or  effectuate  any
action taken by or on behalf of the Partnership,  including, but not limited to,
any  amendments  to this  Agreement or the  Certificate  of Limited  Partnership
approved by the Partners as provided herein.  The appointment by the Partners of
the General  Partner as  attorney-in-fact  shall be deemed to be a power coupled
with an interest,  in  recognition  of the fact that each of the Partners  under
this Agreement  will be relying upon the power of the General  Partner to act as
contemplated  by this  Agreement  in any filing and other  action by the General
Partner on behalf of the Partnership  and, shall to the fullest extent permitted
by applicable law, survive the Bankruptcy,  death or incompetency of any Partner
hereby giving such power.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       25
<PAGE>

         IN WITNESS  WHEREOF,  the undersigned have set their hands and seals as
of the day and year first above written.

GENERAL PARTNER:

PHT GAS, LLC

By:      ___________________________
         Mark A. Bush, Managing Member

LIMITED PARTNERS:

Bepariko BioCom

By:      ___________________________
         Cecile T. Coady

Continental Southern Resources, Inc.

By:      ___________________________
         Stephen P. Harrington

<PAGE>

                         PARTNERS AS OF August 14, 2002

                                                 Capital           Percentage
                                               Contribution         Interest
-----------------------------------------------------------------------------
Limited Partners:

Bepariko BioCom                                     $50,000          4.1%
5858 Westheimer Street, Suite 708
Houston, Texas  77057

Continental Southern Resources, Inc.             $1,150,000          94.9%
111 Presidential Boulevard, Suite 158-A
Bala Cynwyd, Pennsylvania  19004
-----------------------------------------------------------------------------
General Partner:
-----------------------------------------------------------------------------
PHT Gas LLC                                                          1.0.%
5858 Westheimer Street, Suite 708
Houston, Texas  77057
-----------------------------------------------------------------------------

<PAGE>

                                    EXHIBIT B

                               SPECIAL ALLOCATIONS

1. Special Tax Allocations.

         (a)  Qualified  Income  Offset.  In the event any Partner  unexpectedly
receives any adjustments, allocations, or distributions described in Regulations
Section 1.704-1  (b)(2)(ii)(d)(4),(5),  or (6), items of Partnership  income and
gain shall be  specially  allocated to each such Partner in an amount and manner
sufficient to eliminate, to the extent required by the Regulations, the Adjusted
Capital Account Deficit of such Partner as quickly as possible, provided that an
allocation pursuant to this Section 1(a) shall be made if and only to the extent
that such Partner would have an Adjusted Capital Account Deficit after all other
allocations  provided for in Article VI hereof have been  tentatively made as if
this Section 1(a) were not in the Agreement.

         (b) Gross  Income  Allocation.  In the event any  Partner has a deficit
Capital Account at the end of any  Partnership  fiscal year that is in excess of
the sum of (i) the amount such  Partner is  obligated  to restore,  and (ii) the
amount such Partner is deemed to be obligated to restore pursuant to the next to
last sentences of Regulation Sections 1.704-2(g)(1) and 1.704-2(i)(5), each such
Partner shall be specially allocated items of Partnership income and gain in the
amount of such  excess as  quickly  as  possible,  provided  that an  allocation
pursuant to this  Section 1(b) shall be made if and only to the extent that such
Partner  would  have a deficit  Capital  Account in excess of such sum after all
other  allocations  provided for in this Article 6 have been tentatively made as
if Section 1(a) hereof and this Section 1(b) were not in the Agreement.

         (c) Partnership  Minimum Gain Chargeback.  Except as otherwise provided
in Section 1.704-2(f) of the Regulations, notwithstanding any other provision of
Article VI hereof if there is a net decrease in Partnership  Minimum Gain during
any fiscal year, each Partner shall be specially  allocated items of Partnership
income and gain for such  fiscal  year (and,  if  necessary,  subsequent  fiscal
years)  in an  amount  equal  to such  Partner's  share of the net  decrease  in
Partnership  Minimum Gain,  determined in accordance  with  Regulations  Section
1.704-2(g).  Allocations  pursuant  to the  previous  sentence  shall be made in
proportion to the  respective  amounts  required to be allocated to each Partner
pursuant thereto. The items to be so allocated shall be determined in accordance
with Section  1.704-2(f)(6) and  1.704-2(j)(2) of the Regulations.  This Section
1(c) is  intended  to comply with the minimum  gain  chargeback  requirement  in
Section  1.704-2(f) of the  Regulations  and shall be  interpreted  consistently
therewith.

         (d) Partner Minimum Gain  Chargeback.  Except as otherwise  provided in
Section 1.704-2(i)(4) of the Regulations, notwithstanding any other provision of
Article  VI  hereof,  if  there  is a  net  decrease  in  Partner  Minimum  Gain
attributable to a Partner  Nonrecourse Debt during any fiscal year, each Partner
who has a  share  of the  Partner  Minimum  Gain  attributable  to such  Partner
Nonrecourse  Debt,  determined in accordance with Section  1.704-2(i)(5)  of the
Regulations,  shall be specially  allocated items of Partnership income and gain
for such fiscal

<PAGE>

year (and,  if  necessary,  subsequent  fiscal years) in an amount equal to such
Partner's share of the net decrease in Partner Minimum Gain attributable to such
Partner  Nonrecourse  Debt,  determined in accordance with  Regulations  Section
1.704-2(i)(4).  Allocations  pursuant to the previous  sentence shall be made in
proportion to the  respective  amounts  required to be allocated to each Partner
pursuant thereto. The items to be so allocated shall be determined in accordance
with Section  1.704-2(i)(4) and  1.704-2(j)(2) of the Regulations.  This Section
1(d) is  intended  to comply with the minimum  gain  chargeback  requirement  in
Section  1.704-2(i)(4) of the Regulations and shall be interpreted  consistently
therewith.

         (e) Nonrecourse Deductions.  Nonrecourse Deductions for any Fiscal year
shall be specially  allocated  among the Partners in proportion to their Limited
Partnership Interests.

         (f) Partner Nonrecourse Deductions.  Any Partner Nonrecourse Deductions
for any Fiscal year shall be  specially  allocated  to the Partner who bears the
economic risk of loss with respect to the Partner Nonrecourse Debt to which such
Partner  Nonrecourse  Deductions are attributable in accordance with Regulations
Section 1.704-2(i)(1).

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

         (h) Curative  Allocations.  The Regulatory  Allocations  consist of the
allocations  pursuant to Sections 1(a) through 1(g) hereof.  Notwithstanding any
other provision of this  Agreement,  the Regulatory  Allocations  shall be taken
into account in allocating  items of income,  gain, loss and deduction among the
Partners so that, to the extent possible,  the net amount of such allocations of
other items and the Regulatory Allocations to each Partner shall be equal to the
net amount  that would have been  allocated  to each  Partner if the  Regulatory
Allocations had not occurred.

2. Other Allocations Rules.

         (a) For purposes of determining the Profits, Losses, or any other items
allocable  to any  period,  Profits,  Losses,  and any such other items shall 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 Regulations
thereunder.

         (b)  Except  as  otherwise  provided  in this  Agreement,  all items of
Partnership  income,  gain,  loss,  deductions,  and any other  allocations  not
otherwise  provided  for  shall  be  divided  among  the  Partners  in the  same
proportions as they share Profits or Losses, as the case may be, for the year.

<PAGE>

         (c) The  Partners  are  aware of the  income  tax  consequences  of the
allocations  made  by  this  Exhibit  B and  hereby  agree  to be  bound  by the
provisions of this Exhibit B in reporting their shares of Partnership income and
loss for income tax purposes.

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

<PAGE><PAGE>

Exhibit 10.14

                          LIMITED PARTNERSHIP AGREEMENT

                                       OF

                            KNOX MISS. PARTNERS, L.P.

                                 March 23, 2002

<PAGE>

                                Table of Contents
<TABLE>
<CAPTION>
                                                                                                               Page

<S>                                                                                                            <C>
ARTICLE I.  DEFINITIONS...........................................................................................1

ARTICLE II.  ORGANIZATION.........................................................................................6

         2.1  Name................................................................................................6
         2.2  Place of Business...................................................................................6
         2.3  Registered Office...................................................................................6

ARTICLE III.  PURPOSE.............................................................................................6

         3.1  Purpose.............................................................................................6
         3.2  Powers of Partnership...............................................................................6

ARTICLE IV.  TERM.................................................................................................7

ARTICLE V.  CONTRIBUTIONS TO CAPITAL AND STATUS OF PARTNERS.......................................................7

         5.1  Capital Contributions and Loan Amounts..............................................................7
         5.2  Additional Limited Partners.........................................................................8

ARTICLE VI.  DISTRIBUTIONS; ALLOCATION OF PROFITS AND LOSSES; CAPITAL ACCOUNTS....................................8

         6.1  Cash Available for Distribution.....................................................................8
         6.2  Allocation of Profits and Losses....................................................................8
         6.3  Special Tax Allocations; Other Allocation Rules; Tax Allocations: Code Section 704(c)...............9
         6.4  Allocations in the Event of Transfer................................................................9
         6.5  Capital Accounts...................................................................................10
         6.6  Tax Distributions..................................................................................11

ARTICLE VII.  MANAGEMENT; RIGHTS, POWERS, AND OBLIGATIONS OF THE PARTNERS........................................11

         7.1  Management of the Partnership......................................................................11
         7.2  Certain Limitations of the General Partner.........................................................11
         7.3  Meetings of the Partners...........................................................................12
         7.4  Voting by the Partners.............................................................................12
         7.5  Independent Activities.............................................................................13
         7.6  Execution of Agreements and Instruments............................................................13
         7.7  Holding of Assets..................................................................................13
         7.8  Prior Expenses.....................................................................................13

ARTICLE VIII.  TRANSFER OF INTERESTS IN THE PARTNERSHIP..........................................................13

         8.1  Prohibited Transfers...............................................................................13
         8.2  General Partner....................................................................................13
</TABLE>

                                      (i)

<PAGE>

<TABLE>
<CAPTION>

<S>                                                                                                              <C>
         8.3  Limited Partners...................................................................................14

ARTICLE IX.  WITHDRAWAL AND REMOVAL OF A PARTNER.................................................................16

         9.1  Withdrawal.........................................................................................16
         9.2  Removal of a Limited Partner.......................................................................16
         9.3  Death or Disability of a Limited Partner...........................................................17
         9.4  Effect of Removal..................................................................................17
         9.5  Valuation of the Interest of a Partner.............................................................17
         9.6  Payments to a Removed Limited Partner..............................................................18

ARTICLE X.  DISSOLUTION AND WINDING UP OF THE PARTNERSHIP........................................................18

         10.1  Dissolution of the Partnership....................................................................18
         10.2  Winding Up of the Partnership.....................................................................18
         10.3  Distribution In Kind..............................................................................19

ARTICLE XI.  BOOKS OF ACCOUNTS, ACCOUNTING, REPORTS, FISCAL YEAR, BANKING AND TAX MATTERS PARTNER................19

         11.1  Accounting, Books and Records.....................................................................19
         11.2  Other Records.....................................................................................19
         11.3  Reports...........................................................................................20
         11.4  Fiscal Year.......................................................................................20
         11.5  Partnership Funds.................................................................................21
         11.6  Tax Matters Partner...............................................................................21

ARTICLE XII.  INDEMNIFICATION....................................................................................21

         12.1  Indemnification...................................................................................21

ARTICLE XIII.  MISCELLANEOUS.....................................................................................22

         13.1  Agreement for Further Execution...................................................................22
         13.2  Amendments........................................................................................22
         13.3  Notices...........................................................................................23
         13.4  Governing Law and Jurisdiction....................................................................24
         13.5  Binding Nature of Agreement.......................................................................24
         13.6  Additional Partners...............................................................................24
         13.7  Validity..........................................................................................24
         13.8  Entire Agreement..................................................................................24
         13.9  Indulgences, Etc..................................................................................24
         13.10  Execution in Counterparts........................................................................25
         13.11  Paragraph........................................................................................25
         13.12  Number of Days...................................................................................25
         13.13  Interpretation...................................................................................25
         13.14  Corporate Authority..............................................................................25
         13.15  Third Party Beneficiaries........................................................................25
</TABLE>

                                      (ii)

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                              <C>
         13.16  Appointment of Attorney-in-fact..................................................................25
</TABLE>

Exhibit A         -        Partners
Exhibit B         -        Special Allocations

                                     (iii)

<PAGE>

                          LIMITED PARTNERSHIP AGREEMENT

                                       OF

                            KNOX MISS. PARTNERS, L.P.

         THIS LIMITED  PARTNERSHIP  AGREEMENT  is entered  into  effective as of
March 23, 2002, by and among KNOX MISS.,  LLC (the "General  Partner") and those
persons listed as Limited Partners on Exhibit A attached hereto, as amended from
time to time after the date hereof.

         Intending to be legally bound, the parties hereto agree as follows:

                            ARTICLE I. DEFINITIONS.

         Capitalized  terms used in this  Agreement  and not  defined  elsewhere
herein shall have the following meanings:

         "Act" means the Delaware  Revised Uniform Limited  Partnership  Act, as
amended from time to time.

         "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:

                (i)  credit to such  Capital  Account  any  amounts  which  such
Partner is obligated to restore or is deemed to be obligated to restore pursuant
to the  next to last  sentences  of  Regulations  Sections  1.704-(2)(g)(1)  and
1.704-2(i)(5); and

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

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

         An  "Affiliate"   (whether  or  not   capitalized)  of,  or  a  Person,
association,  partnership or corporation  "affiliated" with, a specified Person,
association,  partnership or corporation, is a Person, association,  partnership
or corporation that directly,  or indirectly through one or more intermediaries,
controls,  is  controlled  by, or is under common  control  with,  the specified
Person, association, partnership or corporation. For purposes of this Agreement,
Lubert (and Family Members of Lubert) and RG shall not be considered  Affiliates
of each other.

         "Agreement" means this limited partnership  agreement,  as the same may
be amended from time to time.

<PAGE>

         "Appraiser"  has the  meaning  set  forth  in  Section  9.5(a)  of this
Agreement.

         "Bankruptcy"   means,   with  respect  to  any  Person,   a  "Voluntary
Bankruptcy" or an "Involuntary Bankruptcy." A "Voluntary Bankruptcy" means, with
respect to any Person,  the inability of such Person  generally to pay its debts
as such debts  become  due,  or an  admission  in writing by such  Person of its
inability to pay its debts generally or a general  assignment by such Person for
the benefit of  creditors;  the filing of any  petition or answer by such Person
seeking to  adjudicate  it a bankrupt  or  insolvent,  or seeking for itself any
liquidation, winding up, reorganization,  arrangement,  adjustment,  protection,
relief,  or  composition  of such Person or its debts under any law  relating to
bankruptcy,  insolvency  or  reorganization  or relief of  debtors,  or seeking,
consenting  to,  or  acquiescing  in the  entry of an order  for  relief  or the
appointment of a receiver,  trustee,  custodian,  or other similar  official for
such Person or for any  substantial  part of its property,  or corporate  action
taken by such  Person  to  authorize  any of the  actions  set forth  above.  An
"Involuntary  Bankruptcy" means, with respect to any Person, without the consent
or acquiescence of such Person, the entering of an order for relief or approving
a petition  for  relief or  reorganization  or any other  petition  seeking  any
reorganization,    arrangement,    composition,    readjustment,    liquidation,
dissolution,  or other  similar  relief under any present or future  bankruptcy,
insolvency or similar  statute,  law, or  regulation,  or the filing of any such
petition against such Person which petition shall not be dismissed within ninety
(90) days, or, without the consent or acquiescence of such Person,  the entering
of an order  appointing a trustee,  custodian,  receiver,  or liquidator of such
Person or of all or any  substantial  part of the  property of such Person which
order shall not be dismissed within sixty (60) days.

         "Capital  Account" means,  with respect to any Partner,  such Partner's
Capital Account determined in accordance with Section 6.6.

         "Capital  Contribution"  means, with respect to any Partner, the amount
of money contributed to the Partnership by such Partner pursuant to Section 5.2.

         "Cash Available for  Distribution"  for any fiscal year or other period
means the excess of (a) the amount of gross cash  receipts of any kind  received
by the Partnership (including from any reserves previously established which the
General Partner  determines are no longer required by the Partnership)  less (b)
(i)  Operating  Expenses,  (ii) any  reserves  established  or  increased by the
General  Partner  which it deems  reasonably  necessary for the operation of the
Partnership   including,   reserves  for  working   capital  and  maturing  debt
obligations and other cash  requirements of the  Partnership,  and (iii) amounts
received by the Partnership as Capital Contributions.

         "Certificate   of   Limited   Partnership"   means  the   Partnership's
Certificate  of Limited  Partnership  filed with the  Secretary  of State of the
State of Delaware, as the same may be amended from time to time.

         "Code"  means  the  Internal  Revenue  Code of 1986,  as  amended.  All
references  herein to Code sections  shall include  corresponding  provisions of
future federal tax statutes.

                                       2
<PAGE>

         "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 Gross Asset Value of an asset  differs from its  adjusted  basis for federal
income tax purposes at the beginning of such year or other period,  Depreciation
shall be an amount  which  bears the same ratio to such  beginning  Gross  Asset
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  shall be determined  with reference to such
beginning Gross Asset Value using any reasonable  method selected by the General
Partner.

         "General Partner" means Knox Miss., LLC

         "Gross  Asset  Value"  means,  with  respect to any asset,  the asset's
adjusted basis for federal income tax purposes, except as follows:

                (i) The initial Gross Asset Value of any asset  contributed by a
Partner to the  Partnership  shall be the gross fair market value of such asset,
as agreed by the contributing Partner and the General Partner;

                (ii) The Gross Asset Values of all  Partnership  assets shall be
adjusted to equal their  respective  gross fair market values,  as determined by
the General  Partner,  as of the  following  times:  (a) the  acquisition  of an
additional  Interest in the  Partnership  (other than  pursuant to the  original
purchase at the time of  formation  of the  Partnership)  by any new or existing
Partner in exchange  for more than a de minimis  Capital  Contribution,  (b) the
distribution by the Partnership to a Partner of more than a de minimis amount of
Partnership  Property (other than cash) as consideration  for an Interest in the
Partnership;  and (c) the liquidation of the  Partnership  within the meaning of
Regulations   Section   1.704-1(b)(2)(ii)(g):   provided,   however,   that  the
adjustments  pursuant  to  clauses  (a) and (b) above  shall be made only if the
General Partner  reasonably  determines  that such  adjustments are necessary or
appropriate  to reflect the relative  economic  interests of the Partners in the
Partnership;

                (iii) The Gross Asset Value of any Partnership asset distributed
to any Partner shall be the gross fair market value of such asset on the date of
distribution;

                (iv) The Gross  Asset  Values  of  Partnership  assets  shall be
increased (or  decreased) to reflect any  adjustments  to the adjusted  basis of
such assets pursuant to Code Section 734(b) or Code Section 743(b),  but only to
the extent that such  adjustments are taken into account in determining  Capital
Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m) and Section 6.3(h)
hereof,  provided,  however,  that  Gross  Asset  Values  shall not be  adjusted
pursuant hereto to the extent the General Partner  determines that an adjustment
pursuant  hereto is necessary or  appropriate  in connection  with a transaction
that would otherwise result in an adjustment pursuant hereto; and

                                       3
<PAGE>

                (v) If the Gross Asset Value of an asset has been  determined or
adjusted pursuant hereto, such Gross Asset Value shall thereafter be adjusted by
the  Depreciation  taken into account with respect to such asset for purposes of
computing Profits and Losses.

         "Indemnitee"  has the  meaning  set forth in  Section  12.1(a)  of this
Agreement.

         "Interest" means a Partner's  economic rights and other interest in the
Partnership as a Partner as provided in this Agreement.

         "Limited  Partner"  means  any  person  named as a Limited  Partner  on
Exhibit A in his,  her or its capacity as a Limited  Partner of the  Partnership
and any other person admitted to the Partnership as a Limited Partner.

         "Majority in Interest"  means with respect to any  particular  group of
Partners, those Partners whose Percentage Interests in the aggregate are greater
than  fifty  percent  (50%)  of the  Percentage  Interests  owned  by all of the
Partners within the group.

         "Nonrecourse   Deductions"   has  the  meaning  set  forth  in  Section
1.704-2(b)(1) of the Regulations.

         "Nonrecourse   Liability"   has  the   meaning  set  forth  in  Section
1.704-2(b)(3) of the Regulations.

         "Operating  Expenses" means cash  disbursements for operating  expenses
of, and proper payments by, the Partnership,  including,  but not limited to (i)
legal  representation  relating  to the  Partnership,  (ii)  accounting  and tax
preparation and (iii) amounts paid to satisfy the Partnership's obligations with
respect to working interests in oil and gas wells held by the Partnership.

         "Partner" means the General Partner or any Limited Partner.

         "Partner  Nonrecourse  Debt"  has the  meaning  set  forth  in  Section
1.704-2(b)(4) of the Regulations.

         "Partner  Minimum  Gain" means an amount,  with respect to each Partner
Nonrecourse  Debt,  equal to the  Partnership  Minimum Gain that would result if
such  Partner  Nonrecourse  Debt  were  treated  as  a  Nonrecourse   Liability,
determined in accordance with Section 1.704-2(i)(3) of the Regulations.

         "Partner Nonrecourse  Deductions" has the meaning set forth in Sections
1.704-2(i)(1) and 1.704-2(i)(2) of the Regulations.

         "Partnership"  means  Knox  Miss.  Partners,  L.P.,  a  Delaware
limited partnership.

         "Partnership  Minimum  Gain"  has the  meaning  set  forth in  Sections
1.704-2(b)(2) and 1.704-2(d) of the Regulations.

         "Partnership  Property"  means  all  properties  and  assets  which the
Partnership may own or have an interest in from time to time.

         "Percentage  Interest"  means the Interest of a Partner  expressed as a
percentage.  The Percentage Interest of each Partner as of the date hereof is as
set forth on Exhibit A.

         "Person"  means  any  individual,  corporation,   partnership,  limited
liability  company,  joint venture,  association,  joint-stock  company,  trust,
non-incorporated   organization   or  government  or  any  agency  or  political
subdivision thereof.

         "Prime Rate" means the interest rate published from time to time by the
Wall Street  Journal as the prime lending rate  (regardless  of how such rate is
specifically described).

         "Profit or Profits" and "Loss or 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,  as  determined  by the  Partnership's  accountants,  in
accordance  with Code  ss.703(a) (for this purpose,  all items of income,  gain,
loss or deduction  required to be stated separately  pursuant to ss.703(a)(1) of
the Code shall be included in Profits or Losses),  with the adjustments required
to comply with the capital  account  maintenance  rules of Treasury  Regulations
ss.1.704-1(b)(2)(iv) and the following adjustments:

                (i) Any income of the  Partnership  that is exempt from  federal
income tax and not otherwise taken into account in computing  Profits and Losses
shall be added back;

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

                (iii)  If the  Gross  Asset  Value of any  Partnership  asset is
adjusted  pursuant to this  Agreement,  the amount of such  adjustment  shall be
taken into account in the taxable year as gain or loss from the  disposition  of
such asset for purposes of computing Profits or Losses;

                (iv) 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  Gross  Asset  Value of the
Partnership Property disposed of, notwithstanding that the adjusted tax basis of
such Property differs from its Gross Asset Value; and

                (v) 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 this Agreement.

         "Purchase  Price"  has the  meaning  set forth in  Section  9.4 of this
Agreement.

                                       5
<PAGE>

         "Regulations" means the regulations  promulgated under the Code, as the
same may be amended or supplemented from time to time.

         "Regulatory  Allocations"  has the meaning set forth in Section 1(h) of
Exhibit B of this Agreement.

         "Removal  Event"  has the  meaning  set  forth in  Section  9.2 of this
Agreement.

         "Service" has the meaning set forth in Section 11.6 of this Agreement.

         "Term" has the meaning set forth in Article IV of this Agreement.

         "Transfer," with respect to any Interest in the Partnership,  means any
sale, bequest,  assignment,  pledge,  encumbrance or gift thereof, or attempt to
deliver a security interest therein, but shall not include a voluntary pledge or
assignment  pursuant to a written  agreement  by a Partner of only the rights to
recover  proceeds as distributed by the Partnership with respect to any Interest
nor shall include a collateral  assignment of one Partner's  Interest to another
Partner.

         "Unreturned Capital Balance" with respect to any Partner means all cash
paid toward such Partner's Capital  Contribution,  reduced by distributions made
to such Partner.

         "Valuation  Date" has the meaning  set forth in Section  9.5(a) of this
Agreement.

                            ARTICLE II. ORGANIZATION

      2.1 Name. The name of the Partnership is "Knox Miss. Partners, L.P."

      2.2 Place of Business.  The principal place of business of the Partnership
shall be at such place as determined by the General Partner. The Partnership may
establish  additional places of business within or without the State of Delaware
as and when required by the business of the Partnership.

      2.3 Registered  Office. The registered office for the Partnership shall be
located at such place as may be designated by the General Partner.

                             ARTICLE III. PURPOSE.

      3.1  Purpose.  The  purpose  for  which  the  Partnership  is formed is to
purchase leasehold interests in certain oil and gas prospects in Webster,  Clay,
Chickesaw,   Calhoun  and  Grenada  Counties,   Mississippi.  In  addition,  the
Partnership may engage in any lawful activity for which limited partnerships may
be organized under the laws of the State of Delaware and otherwise in accordance
with the terms of this Agreement.

      3.2  Powers of  Partnership.  The  Partnership  shall  have all the powers
permitted  by law which are  necessary or desirable in carrying out the purposes
and business of the Partnership, including, but not limited to, the following:

                                       6
<PAGE>

            (a)  Transact   business  in  any  state  or  nation  in  which  the
Partnership   may  lawfully   act,  for  itself  or  as   principal,   agent  or
representative for any Person, respecting the business of the Partnership;

            (b) Enter into, make,  perform and carry out, or cancel and rescind,
contracts  and  other  obligations  for any  lawful  purpose  pertaining  to the
business of the Partnership;

            (c) Apply for,  register,  obtain,  purchase  or  otherwise  acquire
trademarks,  trade names, labels and designs relating to or useful in connection
with any business of the Partnership,  and to use, exercise, develop and license
the use of the same;

            (d) Employ on behalf of the Partnership  legal counsel,  accountants
and other professional advisors with respect to any business of the Partnership;

            (e) Compromise,  submit to arbitration, sue on, and defend claims in
favor of or against the Partnership; and

            (f)  Exercise  all of the  general  rights,  privileges  and  powers
permitted  by the  provisions  of the Act,  as adopted or  hereafter  amended or
supplemented.

                                ARTICLE IV. TERM

         The  Partnership  shall  continue  in  perpetuity  from the date hereof
unless dissolved sooner pursuant to Article X of this Agreement (the "Term").

           ARTICLE V. CONTRIBUTIONS TO CAPITAL AND STATUS OF PARTNERS

      5.1 Capital Contributions and Loan Amounts.

            (a)  General  Partner.  The  General  Partner  has  made  a  capital
contribution  to the  Partnership  in the  amount set forth on Exhibit A to this
Agreement.

            (b) Limited  Partners.  Each Limited  Partner  shall make an initial
Capital  Contribution,  as described in Exhibit A to this  Agreement.  The name,
mailing  address,   taxpayer   identification   number,   Capital  Contribution,
Percentage Interest of each Partner is set forth in Exhibit A.

            (c)  Additional  Capital  Contributions.  The Partners  shall not be
obligated to make any additional contributions to the capital of the Partnership
or to loan the Partnership any additional funds.

            (d) Withdrawal of Capital  Contributions.  No Partner shall have the
right to  withdraw  or  reduce  its  Capital  Contribution,  or to  receive  any
distributions  from the Partnership,  except as otherwise  provided  herein.  No
Partner shall have the right to demand or receive any Partnership Property other
than cash from the  Partnership.  No interest or royalties  shall be paid

                                       7
<PAGE>

to any Partner on its Capital Contribution.  No Partner shall have priority over
any other Partner,  either as to the return of its Capital Contribution or as to
Profits,  Losses or  distributions,  except as may be specifically  set forth in
this Agreement.

      5.2  Additional  Limited  Partners.  Additional  Limited  Partners  may be
admitted to the Partnership  with the consent of the General Partner and without
the consent of the Limited  Partners.  Any dilution of the  Percentage  Interest
resulting  from the admission of additional  Limited  Partners shall be borne by
all Partners pro rata in accordance with their Percentage Interests.

          ARTICLE VI. DISTRIBUTIONS; ALLOCATION OF PROFITS AND LOSSES;
                              CAPITAL ACCOUNTS.

      6.1 Cash Available for Distribution.

            (a)   Distributions   Prior  to  Liquidation.   Cash  Available  for
Distribution,  if any,  shall be  distributed  at times and in amounts which the
General  Partner  may,  in its  reasonable  discretion,  determine.  Amounts not
distributed in liquidation of the Partnership shall be distributed as follows:

                  (i)   First, 99 percent to the Limited  Partners in proportion
                        to  and  to  the  extent  of  their  Unreturned  Capital
                        Balances  and one percent to the General  Partner  until
                        all  Unreturned  Capital  Balances  have been reduced to
                        zero;

                  (ii)  Then,  75 percent to the Limited  Partners in proportion
                        to their  Percentage  Interests  and 25  percent  to the
                        General Partner.

Notwithstanding the foregoing,  the General Partner may in its sole and absolute
discretion  and at any time  make a  distribution  to the  Limited  Partners  in
proportion to their respective Unreturned Capital Account balances.

            (b) Liquidating  Distributions.  Distributions in liquidation of the
Partnership and redemption of Interests shall be made in accordance with Capital
Accounts,  determined  after  taking  into  account all  allocations  under this
Article VI, including Profits or Losses with respect to property  distributed in
kind.

      6.2   Allocation of Profits and Losses.

            (a)  Allocation of Profits.  After giving  effect to the  Regulatory
Allocations  set forth in Exhibit B of this  Agreement,  Profits  for any fiscal
year or other period of the Partnership will be credited to the Capital Accounts
of the Partners in the following order of priority:

                  (i)   First,  to  each  Partner  in  proportion  to and to the
                        extent of the excess,  if any, of (A)  cumulative  prior
                        allocations to the Partner

                                       8
<PAGE>

                        under  subsection  (b) of  this  Section  6.2  over  (B)
                        cumulative  prior  allocations to the Partner under this
                        clause (i);

                  (ii)  Then, to each Partner in proportion to and to the extent
                        of the excess,  if any, of (A) cumulative  distributions
                        to the Partner  under  Section 6.1 (a) as of the date of
                        allocation over (B) cumulative prior  allocations  under
                        this clause (ii);

                  (iii) Then,  75 percent to the Limited  Partners in proportion
                        to their  Percentage  Interests  and 25  percent  to the
                        General Partner..

            (b)  Allocation  of Losses.  After giving  effect to the  Regulatory
Allocations set forth in Exhibit B of this Agreement, Losses for any fiscal year
or other period will be allocated as follows:

                  (i)   First,  to  each  Partner  in  proportion  to and to the
                        extent of the excess, if any, of (A) cumulative  Profits
                        allocated  to the  Partner  for all  prior  years  under
                        subsection  (a) of this Section 6.2 over (B)  cumulative
                        prior Losses allocated during the same period under this
                        clause

                  (ii)  Then, to Partners, if any, with positive Capital Account
                        balances,  in  proportion  to and to the  extent of such
                        balances;

                  (iii) Then entirely to the General Partner.

Notwithstanding the foregoing, Losses shall not be allocated to a Partner if the
allocation would cause or increase a deficit in the Partner's Capital Account at
a time when any other  Partner  has a  positive  Capital  Account  balance,  and
otherwise shall be allocated entirely to the General Partner.

      6.3 Special Tax Allocations; Other Allocation Rules; Tax Allocations: Code
Section  704(c).  Special  tax  allocations,  other  allocation  rules  and  tax
allocations  relating  to Code  Section  704(c)  are as set  forth on  Exhibit B
attached hereto and made a part hereof.

      6.4 Allocations in the Event of Transfer.

            (a)  If  all  or  any  portion  of an  Interest  is  transferred  in
accordance  with Article VIII hereof  (other than a  hypothecation  or any other
encumbrance  which secures an  indebtedness  but is not accompanied by immediate
rights to distributions), Profits, Losses, each item thereof and all other items
attributable  to such  Interest for the period from the beginning of the year in
which the transfer is effected  through the date of transfer  shall be allocated
to the transferor,  and all items attributable for the balance of the year shall
be allocated to the transferee. The General Partner may, in its sole discretion,
determine the apportionment  between pre- and  post-transfer  allocations on the
basis of the number of days of the year in each period or by an interim closing

                                       9
<PAGE>

of  books  as of the  end  of the  date  of  transfer,  except  that  any  items
attributable  to a  transaction  giving rise to capital gain or loss  (including
gain on the disposition of "Section 1231 property" within the meaning of Section
1231 of the  Cod)  shall be  allocated  entirely  to the  period  in  which  the
transaction giving rise to the gain or loss occurred.  The Partnership shall not
make any  adjustments  for items of income,  gain,  loss,  credit,  or deduction
realized  or  incurred  prior to  transfer  but  deferred  in whole or part to a
subsequent period.

            (b) Solely for purposes of allocating Profits,  Losses and each item
thereof  as set  forth in  Sections  6.2  through  6.4,  the  Partnership  shall
recognize  the Transfer of such  Interest not later than the end of the calendar
month during  which it receives  written  notice of such  Transfer and the other
requirements  of  Article  VIII  hereof  are  satisfied,  provided  that  if the
Partnership does not receive a written notice stating the date such Interest was
transferred  and such other  information  as the General  Partner may reasonably
require  within thirty (30) days after the end of the calendar year during which
the  Transfer  occurs,  then  all of such  items  shall  be  allocated,  and all
distributions  shall be made,  to the  Person  who,  according  to the books and
records of the  Partnership,  on the last day of the  accounting  period  during
which the Transfer  occurs,  was the owner of the Interest.  The General Partner
and the  Partnership  shall  incur  no  liability  for  making  allocations  and
distributions  in accordance with the provisions of this Section 6.4, whether or
not the General  Partner or the  Partnership  has  knowledge  of any Transfer of
ownership of any Interest.

      6.5 Capital Accounts.

            (a) A Capital  Account  shall be maintained  for each  Partner.  The
provisions of this Agreement relating to the maintenance of Capital Accounts are
intended to comply with the Regulations  promulgated under Section 704(b) of the
Code.  The Capital  Account of each  Partner  shall be increased by (a) the cash
amounts of such Partner's Capital Contribution, (b) the Gross Asset Value of any
property or services  contributed to the Partnership by the Partner as agreed to
by the contributing Partner and the Partnership,  less any indebtedness to which
such  property is subject or which is assumed by the  Partnership  in connection
with the contribution (except that any amount by which such indebtedness exceeds
such  Gross  Asset  Value of the  property  shall be  treated  as a debit to the
Partner's  Capital  Account),  and (c) such  Partner's  share of Profits and any
items in the nature of income and gain  specially  allocated to it, and shall be
decreased by (y) the amount of cash and the Gross Asset Value of other  property
actually distributed to such Partner by the Partnership less any indebtedness to
which such  property is subject or which is assumed by the Partner in connection
with the distribution (except that any amount by which such indebtedness exceeds
such  Gross  Asset  Value of the  property  shall be  treated as a credit to the
Partner's Capital Account), and (z) such Partner's share of Losses.

            (b) In the  event a  Partner  Transfers  all or any  portion  of its
Interest in accordance  with the  provisions of this  Agreement,  the transferee
shall succeed to the individual  Capital Account of the transferor to the extent
such Capital Account relates to the transferred Interest.

                                       10
<PAGE>

            (c)  It  is  the  intent  of  this  Agreement  that  each  Partner's
allocations and distributions shall be made in accordance with Section 704(b) of
the Code.  If the  Partnership  is advised by legal  counsel  that any matter or
matters  contained in this  Agreement  are unlikely to be effective  for federal
income tax purposes,  the General  Partner is hereby  granted the power to amend
the allocation and/or distribution  provisions of this Agreement,  on the advice
of legal counsel to the  Partnership,  to the minimum extent necessary to effect
the allocation of Profits and Losses herein.

            (d) No  Partner  shall  be  required  at any  time to make  any cash
contribution  to the Partnership by reason of any deficit balance in its Capital
Account,  and no such deficit  balance  shall  increase or otherwise  affect the
liability of a Partner to third parties

      6.6 Tax Distributions.  Prior to any distributions pursuant to Section 6.1
hereof (or  otherwise),  the  Partnership  shall  distribute  Cash Available for
Distribution  to the  Partners in such amounts as the General  Partner,  in good
faith, estimates (the "Estimated Tax Liability") to be sufficient to permit each
Partner to pay all federal and state  income taxes which each Partner will incur
as a result of the required inclusion of each Partner's  proportionate  share of
the Profits of the Partnership in determining  each Partner's  federal and state
tax liability,  provided that such distribution  shall be made no later than the
10th day of January of the year  following  the year in question and such amount
shall be confirmed by the General  Partner as soon  thereafter  as is reasonably
practicable.  Any  distribution  made  under this  Section  6.6 shall be applied
against such amounts such Partner is entitled to receive pursuant to Section 6.1
hereof.  In the event such Partner  receives an amount  pursuant to this Section
6.6 which the  General  Partner  in good faith  determines  is (i) less than the
Estimated Tax Liability,  then the  Partnership  shall  promptly  distribute any
shortfall,  or (ii) greater than the amount such Partner was entitled to receive
pursuant to Section 6.1 hereof,  such Partner  shall  immediately  return to the
Partnership  the  difference  between the amount  received  and the amount which
should have been distributed.

    ARTICLE VII. MANAGEMENT; RIGHTS, POWERS, AND OBLIGATIONS OF THE PARTNERS

      7.1  Management  of the  Partnership.  Subject to Section 7.2 hereof,  the
management and control of the Partnership and its business and affairs,  and the
exercise of the powers of the Partnership described in Section 3.2 hereof, shall
be vested in the General Partner.

      7.2 Certain  Limitations  of the General  Partner.  Without  obtaining the
affirmative  vote of a Majority  in  Interest  of the Class A Limited  Partners,
voting as a separate  class,  the General  Partner shall not do or permit any of
the following acts on behalf of the Partnership  unless  otherwise  specifically
stated herein:

                  (i)   Act in contravention of this Agreement;

                  (ii)  Except as  provided in Article X, do any act which would
make it  impossible  to  carry  on  the  ordinary  business  of the Partnership;

                                       11
<PAGE>

                  (iii) Confess a judgment against the Partnership;

                  (iv) Execute or deliver any  assignment for the benefit of the
creditors of the Partnership;

                  (v)  Impose  a  lien,  lease,  security  interest,   easement,
liability  or otherwise  encumber  Partnership  Property,  other than the Senior
Security Interest and the Class A Security Interest; or

                  (vi) sell or dispose of all or substantially all of the assets
of the  Partnership  Property  in a  transaction  outside  of the  Partnership's
ordinary course of business, provided that the Partnership shall not be required
to obtain  such  affirmative  vote in the event  that  Mercantile  is selling or
disposing of all or  substantially  all of its assets  pursuant to the same or a
related transaction.

      7.3   Meetings of the Partners.

            (a) Meetings of Partners.  Except as otherwise specifically provided
in this Agreement, special meetings of the Partners may be called by the General
Partner, by written notice to the Partners given not less than ten (10) nor more
than sixty (60) days prior to the date of such meeting.  Meetings  shall be held
at such place  within or without the State of Delaware as is  designated  in the
notice of the meeting.

            (b) Quorum.  Except as provided in other  sections of this Agreement
where less than all of the Partners are entitled to vote, the Partners necessary
to  approve  any  action to be taken at such  meeting  must be  present  for the
conduct of business at any meeting of the Partners.

            (c) Written Consent. Any action of the Partners may be taken without
a meeting if the  Partners  required to approve such action  consent  thereto in
writing.

            (d) Meeting by Telephone. The meeting of the Partners may be held by
telephone conference or similar communications equipment.

            (e) Proxies.  A Partner may authorize one or more Persons to act for
such  Partner by proxy,  provided the proxy is signed by such  Partner.  A proxy
shall not be valid after the expiration of one (1) year from its date.

            (f) Waiver of Notice.  Any notice  required under this Agreement for
the  holding of  meetings  of the  Partners  may be waived by any  Partner by an
instrument in writing  signed by such Partner either before or after the meeting
to which such waiver relates.

      7.4 Voting by the Partners.  Unless otherwise stated in this Agreement, an
affirmative vote of a Majority in Interest of the Limited Partners,  voting as a
class,  shall be required  to adopt any matter  subject to a vote of the Limited
Partners.

                                       12
<PAGE>

      7.5  Independent  Activities.  Subject  to any other  agreement  among the
parties,  Partners and Affiliates of Partners may, notwithstanding the existence
of this Agreement,  engage in whatever  activities they choose without having or
incurring  any  obligation  to offer  any  interest  in such  activities  to the
Partnership  or any  Partner,  and  neither  this  Agreement  nor  any  activity
undertaken  pursuant  hereto shall  prevent the  Partners or any  Affiliate of a
Partner from engaging in any activity,  or require the Partners or any Affiliate
of a Partner to permit the Partnership or any Partner to participate therein.

      7.6 Execution of Agreements and  Instruments.  Any agreement or instrument
may be  executed  on behalf of the  Partnership  by the  General  Partner  or as
otherwise authorized by the General Partner.

      7.7 Holding of Assets. All Partnership Property, whether real, personal or
mixed, owned by the Partnership shall be held in the name of the Partnership.

      7.8  Prior  Expenses.  To  the  extent  expenses  have  been  incurred  in
connection  with  the  Partnership  prior  to the  date of this  Agreement,  the
Partnership  shall pay such expenses or shall  reimburse the General  Partner or
any other Person as appropriate for such expenses if already paid.

             ARTICLE VIII. TRANSFER OF INTERESTS IN THE PARTNERSHIP

      8.1  Prohibited  Transfers.  Neither  the  General  Partner nor any of the
Limited Partners may sell, assign,  transfer or otherwise dispose of, or pledge,
hypothecate  or  transfer  or in any  manner  encumber,  his or its  Partnership
Interest or any part thereof  except as permitted in this Article VIII,  and any
act in violation of this Article VIII shall not be binding upon or recognized b,
the  Partnership  regardless of whether the General Partner shall have knowledge
thereof.

      8.2 General Partner.

            (a) Upon the withdrawal,  retirement,  resignation,  removal, death,
insanity,  dissolution  or  bankruptcy  of a General  Partner (the  "Terminating
General Partner") and the continuation of the business of the Partnership by the
remaining  General  Partner[] (or if there is no remaining  General  Partner,  a
newly  appointed  General  Partner,  appointed upon the consent of a Majority in
Interest of the Limited Partners),  the Partnership Interest of such Terminating
General Partner shall be converted to a Limited Partnership Interest;  provided,
however,  that the  distributions,  Profits and Losses to which the  Terminating
General  Partner shall be entitled  shall not be changed from those to which the
Terminating General Partner was entitled while a General Partner.

            (b) Until the  dissolution and  liquidation of the  Partnership,  no
General  Partner  shall  voluntarily   withdraw,   retire  or  resign  from  the
Partnership  without the consent of the then-remaining  General Partners,  or if
there is no other  General  Partner,  of a Majority  in  Interest of the Limited
Partners. Although such withdrawal,  retirement or resignation in breach of this
Subsection  8.2(b) may not be enjoined,  such General Partner shall be liable in
damages to the

                                       13
<PAGE>

Partnership  for such  breach.  A sole  remaining  General  Partner  seeking  to
withdraw,  may do so  only  upon  obtaining  the  prior  written  approval  of a
Majority-in-Interest of the Limited Partners.

      8.3 Limited Partners.

            (a) The General  Partner may (1) pursuant to this Section 8.3, admit
as a substituted  Limited Partner any successor in interest to a Limited Partner
either deceased or under legal disability,  and (2) pursuant to this Section 8.3
admit as substituted Limited Partners assignees of Limited Partners:

                  (i) A substituted  Limited Partner is a person admitted to all
the rights of a Limited Partner;

                  (ii) An  assignee  is a person to whom a Limited  Partner  has
assigned his Interest in the  Partnership  but who has not become a  substituted
Limited  Partner.  An assignee shall have no right to require any information or
accounting of the  Partnership's  transactions  or to inspect the  Partnership's
books but shall only be entitled to receive the share of the  distributions  and
allocations  to which his assignor  would  otherwise be entitled as set forth in
Article VI.

            (b) No assignee  of the whole or any portion of a Limited  Partner's
Interest shall have the right to become a substituted  Limited  Partner in place
of his assignor or have any other rights of a Limited Partner  hereunder  unless
all of the following conditions are satisfied:

                  (i)  The  written  consent  of the  General  Partner  to  such
substitution shall be obtained,  the granting or denial of which shall be within
the sole and absolute discretion of the General Partner;

                  (ii) A duly executed and  acknowledged  written  instrument of
assignment has been filed with the Partnership which sets forth the intention of
the  assignor  that the assignee  become a  substituted  Limited  Partner in his
place;

                  (iii) The assignor and assignee  execute and acknowledge  such
other  instruments  as the General  Partner may deem  necessary  or desirable to
effect such admission,  including,  without  limitation,  an opinion of counsel,
acceptable  to the General  Partner,  to the effect that the  assignment  of the
interest will not violate the applicable provision of the Securities Act of 1933
and any applicable state securities laws, the written acceptance and adoption by
the  assignee  of  the   provisions  of  this   Agreement  and  his   execution,
acknowledgment,  and delivery to the General Partner of a Power of Attorney, the
form and content of which are more fully described in Paragraph 12 hereof; and

                  (iv) A transfer fee not to exceed $300.00 per  transaction has
been paid to the Partnership.

                                       14
<PAGE>

            (c) Any person admitted to the Partnership as a Substituted  Limited
Partner  shall be  subject  to all of the  provisions  of this  Agreement  as if
originally a party to it.

            (d)  Subject  to  the  provisions  of  subparagraph  8.3(j)  hereof,
compliance with the suitability standards imposed by the Partnership, applicable
"blue  sky" laws,  if any,  and the rules of any other  applicable  governmental
authority and subject to the written consent of the General Partner (except that
assignments to heirs and personal  representatives  may be made without  consent
upon the death of a Limited Partner),  a Limited Partner shall have the right to
assign all or a portion of his  Interest by a written  assignment,  the terms of
which are not in contravention of any of the provisions of this Agreement, which
assignment  has  been  duly  executed  by  the  assignor  and  received  by  the
Partnership and recorded on the books thereof.  Any assignment in  contravention
of any of the  provisions  of this  Subsection  8.3(d)  shall be of no force and
effect and shall not be  binding  upon or  recognized  by the  Partnership.  THE
INTERESTS  EVIDENCED  BY THIS  AGREEMENT  HAVE NOT  BEEN  REGISTERED  UNDER  THE
SECURITIES  ACT OF 1933, AS AMENDED,  OR THE SECURITIES  LAWS OF ANY STATE.  THE
INTERESTS  ACQUIRED BY LIMITED  PARTNERS  MAY NOT BE SOLD OR OFFERED FOR SALE IN
THE ABSENCE OF AN EFFECTIVE  REGISTRATION  STATEMENT FOR THE INTERESTS UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND SUCH STATE LAWS AS MAY BE APPLICABLE, OR
AN OPINION OF COUNSEL  SATISFACTORY TO THE PARTNERSHIP THAT SUCH REGISTRATION IS
NOT REQUIRED.

                  (i)  Except as  provided  in  Subsections  8.3(h),  8.3(i) and
8.3(j), an assignee of an Interest shall be entitled to receive distributions of
cash or  other  property  from  the  Partnership  attributable  to the  Interest
acquired by reasons of such  assignment from and after the effective date of the
assignment  of an Interest to him. The  "effective  date" of an assignment of an
Interest  shall be the  last day of the  calendar  month  in which  the  written
instrument  of  assignment,  in form and substance  satisfactory  to the General
Partner, is received and approved by the General Partner.

                  (ii)    Anything    contained    herein   to   the    contrary
notwithstanding,  both the Partnership and the General Partner shall be entitled
to treat the assignor of a Partnership Interest as the absolute owner thereof in
all respects,  and shall incur no liability for  distributions  of cash or other
property  made in good faith to him until such times as the  written  assignment
has  been  received  by,  and  recorded  on the  books  of the  Partnership,  in
accordance with the provisions of Subsection 8.3(d)(i).

            (e) The General  Partner may elect to treat an assignee  who has not
become a substituted  Limited  Partner as a substituted  Limited  Partner in the
place of his assignor, should it deem, in its sole and absolute discretion, that
such  treatment  be in the  best  interest  of the  Partnership  for  any of its
purposes or for any of the purposes of this Agreement.

            (f) No consent of any of the  Limited  Partners is required to elect
the substitution of a Limited Partner, except that a Limited Partner who assigns
his Interest  shall,  in

                                       15
<PAGE>

order for the assignee to be admitted as a substituted Limited Partner, evidence
his intention that the assignee be admitted as a substituted  Limited Partner in
his place and must execute such instruments as the General Partner shall, in its
sole  and  absolute  discretion,  determine  to be  necessary  or  desirable  in
connection therewith.

            (g) The General  Partner  shall be required to amend this  Agreement
only quarterly but may, in its sole and absolute discretion, within a reasonable
time after the date of their written consent to the  substitution of an assignee
as a substituted  Limited Partner,  amend this Agreement to reflect the addition
of said assignee as a Limited Partner.  Neither copies of this Agreement nor any
amendment  thereto  need be  delivered  to any of the Limited  Partners and such
requirement in any statute is hereby waived.  However, upon request, the General
Partner will promptly  thereafter  furnish the requesting Limited Partner with a
copy of this Agreement and any amendments thereto as of the date of request.

            (h) Upon the death or legal  incompetency  of an individual  Limited
Partner,  his personal  representative shall have all of the rights of a Limited
Partner for the purpose of settling or the managing  his estate,  and such power
as the  decedent or  incompetent  possessed  to  constitute  a  successor  as an
assignee of his Interest in the  Partnership  and to join with such  assignee in
making  application to substitute such assignee as a Limited  Partner.  However,
such  personal  representative  shall not have the right to become a substituted
Limited  Partner  in the  place  of  his  predecessor  in  interest  unless  the
conditions of this Article VIII are first satisfied  (except with respect to the
requirement that the assignor execute and acknowledge instruments).

            (i) Upon the bankruptcy,  dissolution or other cessation to exist as
a  legal  entity  of a  General  or  Limited  Partner,  not an  individual,  the
authorized  representative  of such  entity  shall  have all of the  rights of a
Limited  Partner for the  purpose of  effecting  the orderly  winding up and the
disposition  of the  business  of such  entity  and such  power  as such  entity
possessed  to  constitute  a successor  as an  assignee  of its  interest in the
Partnership  and to join with such assignee in making  application to substitute
such assignee as a Limited Partner.  However, such personal representative shall
not have the right to become a substituted  Limited  Partner in the place of his
predecessor  in  interest  unless the  conditions  of this  paragraph  are first
satisfied  (except with respect to the requirement that the assignor execute and
acknowledge instruments).

            (j) No assignment or transfer of an interest in the  Partnership may
be made which would result in the termination of the  Partnership  under Section
708 of the Code.

                ARTICLE IX. WITHDRAWAL AND REMOVAL OF A PARTNER

      9.1  Withdrawal.  No Partner may withdraw or resign  voluntarily  from the
Partnership.

      9.2  Removal  of a  Limited  Partner.  Upon the  occurrence  of any of the
following  events (each,  a "Removal  Event"),  the  Partnership  shall have the
option (but not the obligation) to remove a Limited  Partner.  A Limited Partner
may only be removed pursuant to this Section 9.2 in the event of:

                                       16
<PAGE>

            (a) The  dissolution,  termination,  or  Bankruptcy  of the  Limited
Partner;

            (b) Any  assignment  or  attempted  assignment  of the Interest of a
Limited Partner or attempted  withdrawal of the Limited Partner contrary to this
Agreement; or

            (c) The material  breach of this  Agreement  by the Limited  Partner
that is not cured (if such  material  breach is capable of being  cured)  within
thirty  (30) days of the  receipt  of notice  form the  General  Partner  of the
occurrence of such material breach.

      9.3 Death or Disability of a Limited Partner. In the event of the death or
Disability of an individual  Limited  Partner,  the  Partnership  shall have the
assignable option (but not the obligation) to acquire all or any portion of such
Limited  Partner's  Interest  by  notifying  the  Limited  Partner,  the Limited
Partner's estate or the Limited  Partner's  representative,  as the case may be,
within ninety (90) days of the date of death or  determination  of Disability of
such Limited Partner of the  Partnership's  intention to acquire the Interest of
such  Limited  Partner  in the  Partnership.  The price  and  terms of  purchase
pursuant to which the  Partnership  shall be  entitled  to  exercise  the option
granted in this Section 9.3 shall be those set forth in Section 9.4 hereof.

      9.4 Effect of Removal. If the Partnership  exercises the options described
in Sections 9.2 or 9.3, then the Partnership  shall redeem the removed Partner's
Interest for the purchase price (the "Purchase Price")  determined under Section
9.5 to be paid on the terms described in Section 9.6.

      9.5  Valuation of the Interest of a Partner.  For purposes of this Article
IX, the Purchase  Price for a removed,  deceased or Disabled  Limited  Partner's
Interest  shall be the value of such Limited  Partner's  Interest  determined as
follows:

            (a) The General  Partner  shall select an  independent,  third-party
appraiser,  experienced in appraising limited  partnership  interests similar to
the Interests (the  "Appraiser").  The Appraiser will determine the value of the
Limited  Partner's  Interest  as of the end of the  calendar  month  immediately
preceding the Removal Event based upon the value of the Partnership's assets net
of liabilities  assuming all assets were sold at such value and all  liabilities
were  satisfied by cash payments at their  present value and any resulting  deem
Profit  or Loss was  allocated  to the  Partners  pursuant  to the terms of this
Agreement. The determination of the value of a Limited Partner's Capital Account
shall  assume  the  going  concern  of the  Partnership  and shall not take into
account  minority  discounts for the Capital  Account being valued.  The date on
which the  Capital  Account is to be valued  pursuant to this  Section  shall be
referred to herein as a "Valuation  Date." The Appraiser shall within sixty (60)
days of the Removal  Event  prepare a statement  and report of the amount of the
Limited  Partner's  Capital  Account as of the  Valuation  Date.  A copy of such
statement and report will be forwarded to each Partner.

            (b)  The  Partnership's  name  and  goodwill  shall,  as  among  the
Partners, be deemed to have no value and shall belong to the Partnership, and no
Partner shall have any right or claim individually to the use thereof.

                                       17
<PAGE>

      9.6  Payments  to a  Removed  Limited  Partner.  The  Purchase  Price,  as
determined under Section 9.5, shall be paid to the removed, deceased or Disabled
Limited Partner, or its successor in interest as follows:

            (a) Ten percent (10%) in cash or immediately  available funds by the
ninetieth  (90th)  day  following  the  date  of the  Removal  Event,  death  or
Disability (the "Closing Date"), and

            (b) The balance of principal  together  with  interest on the unpaid
principal balance at a rate of interest equal to the Prime Rate in effect on the
business  day prior to the  Closing  Date in  twelve  (12)  equal  installments,
payable each March 31, June 30, September 30 and December 31,  commencing on the
first March 31, June 30, September 30 or December 31 following the Closing Date;
provided,  however,  that (i) the Partnership  may, at any time and from time to
time at its sole option and  election,  without  penalty or  premium,  repay the
balance,  in whole or in part, and (ii) the balance shall become immediately due
and payable (A) if any  installment of the balance shall not have been paid when
due and the  Partnership  shall have failed to cure such default within ten (10)
days after the Partnership's  receipt of a written notice of such default or (B)
if the Partnership is dissolved.

            ARTICLE X. DISSOLUTION AND WINDING UP OF THE PARTNERSHIP

      10.1  Dissolution of the Partnership.  The Partnership  shall be dissolved
upon the first to occur of any of the following events:

            (a) An order by a court of competent  jurisdiction  decrees that the
Partnership be dissolved;

            (b) The  determination  of the  General  Partners  and a Majority in
Interest of the Limited Partners to dissolve; or

            (c) The sale or other disposition of all or substantially all of the
assets of the Partnership.

      The occurrence of any Removal Event of any Limited Partner shall not cause
the dissolution of the Partnership.

      10.2 Winding Up of the Partnership. Upon a dissolution of the Partnership,
the General Partner or other Person appointed by the General Partner, shall take
full account of the Partnership's assets and liabilities and the assets shall be
liquidated  as promptly as is consistent  with  obtaining the fair value thereof
and as shall be necessary to timely make the distributions below described,  and
the proceeds therefrom, to the extent sufficient therefor,  shall be applied and
distributed in the following order:

                                       18
<PAGE>

            (a) First, to the payment and discharge of all of the  Partnership's
debts and liabilities  other than liabilities  owing to the Partners,  including
establishment of any necessary contingency reserves;

            (b) Then, in accordance with Section 6.1 (b).

            (b) Unreturned Capital Balance Unreturned Capital Balance

      10.3 Distribution In Kind. Any Partnership Property distributed in kind in
the  liquidation  shall be valued  and  treated  pursuant  to Section  9.5.  The
difference between the value of any item of Partnership  Property distributed in
kind and its book value shall be treated as a gain or loss on the disposition of
Partnership  Property and shall be  allocated  among the Partners as provided in
Article VI.

           ARTICLE XI. BOOKS OF ACCOUNTS, ACCOUNTING, REPORTS, FISCAL
                     YEAR, BANKING AND TAX MATTERS PARTNER

      11.1 Accounting,  Books and Records. The Partnership shall maintain at its
principal  place of business or such other places as the General  Partner  shall
determine  books of  account  for the  Partnership  which  shall show a true and
accurate  record of all costs and  expenses  incurred,  all  charges  made,  all
credits made and received, and all income derived in connection with the conduct
of the  Partnership  and  the  operation  of its  business  in  accordance  with
generally accepted accounting principles consistently applied and, to the extent
inconsistent therewith in accordance with this Agreement.  The Partnership shall
use the accrual  method of accounting in  preparation  of its annual reports and
for tax purposes and shall keep its books and records accordingly.  Each Partner
or its designated  representative shall have the right, during ordinary business
hours, to have access to, inspect and copy, at its sole expense, the contents of
such books or records.

      11.2 Other Records.

            (a)  The  Partnership  shall  maintain  at its  principal  place  of
business the following:

                  (i) A current  list of the full names and last known  business
address of each Partner;

                  (ii) A copy of the  Certificate  of Limited  Partnership,  all
amendments  thereto,  and executed copies of any powers of attorney  pursuant to
which the same have been executed;

                  (iii) A copy of this Agreement,  all amendments  thereto,  and
executed  copies of any written  powers of  attorney  pursuant to which the same
have been executed;

                                       19
<PAGE>

                  (iv)  Copies  of any  federal,  state,  and local  income  tax
returns and reports of the Partnership for the three most recent years; and

                  (v) Copies of any financial  statements of the Partnership for
the three most recent years.

            (b) Except as otherwise  set forth  herein,  each Partner shall have
the right,  exercisable  upon written demand,  to examine the items described in
Section  11.2(a) during ordinary  business hours and for any purpose  reasonably
related to the  Partner's  Interest in the  Partnership  (which  purpose must be
stated in the written demand),  and shall have the right, at its own expense, to
make copies of all such items.

      11.3 Reports.

            (a) The General  Partner shall be responsible for the preparation of
financial  reports of the Partnership and the coordination of financial  matters
of the Partnership with the Accountant.

            (b) Within 90 days after the end of each  fiscal  year,  the General
Partner  shall  transmit to each  Partner  financial  statements  based upon the
annual audit of the books and financial records of the Partnership,  prepared in
accordance with generally  accepted  accounting  principles,  and, to the extent
inconsistent  therewith,  in  accordance  with  this  Agreement,  including  the
following:

                  (i) A copy of the balance sheet of the  Partnership  as of the
last day of such fiscal year;

                  (ii) A  statement  of income or loss for the  Partnership  for
such fiscal year;

                  (iii)  A  statement  of the  Partners'  Capital  Accounts  and
changes therein for such fiscal year; and

                  (iv) A  statement  of  Partnership  cash flow for such  fiscal
year.

            (c) Within  ninety (90) days after the end of each fiscal year,  the
General  Partner  shall  transmit  to each  Partner  a  report  indicating  such
Partner's share of all items of income or gain, expense, loss or other deduction
and tax credit of the  Partnership  for such fiscal  year,  and such  additional
information to enable the Partners to complete their respective tax returns.

            (d) The General Partner shall transmit to the Limited  Partners such
other reports and information as the Limited Partners may reasonably request.

      11.4 Fiscal  Year.  The fiscal year of  Partnership  shall be the calendar
year.

                                       20
<PAGE>

      11.5 Partnership Funds. All funds of the Partnership shall be deposited in
its name in a separate  bank account or accounts or in an account or accounts of
a savings and loan  association  or brokerage firm as shall be determined by the
General Partner.

      11.6  Tax  Matters  Partner.  The  General  Partner  shall  serve  as  the
Partnership's  "tax matters  partner" (as such term is defined in the Code).  In
such capacity, the Tax Matters Partner is hereby authorized and empowered to act
for and  represent  the  Partnership  and each of the  Partners  before  (i) the
Internal  Revenue  Service  ("Service")  in  any  audit  or  examination  of any
Partnership tax return, and (ii) any court selected by the Partners for judicial
review of any  adjustment  assessed by the Service.  The  Partners  specifically
acknowledge,  without limiting the general  applicability of this Section,  that
the Tax Matters  Partner  shall not be liable,  responsible  or  accountable  in
damages or  otherwise  to the  Partnership  or any Partner  with  respect to any
action taken by him in his capacity as the Tax Matters Partner, provided he used
reasonable business judgment with respect to the action taken. All out-of-pocket
expenses  incurred by the Tax Matters Partner in his capacity as the Tax Matters
Partner  shall be  considered  expenses  of the  Partnership  for  which the Tax
Matters Partner shall be entitled to full reimbursement.

                          ARTICLE XII. INDEMNIFICATION

      12.1 Indemnification.

            (a) General  Provisions.  Except as otherwise set forth herein,  the
Partner and their members, partners, Affiliates, directors, officers, agents and
employees and the members of the Governance  Committee (herein referred to as an
"Indemnitee"),   shall  be  indemnified,  held  harmless  and  defended  by  the
Partnership  (out of  Partnership  assets,  including  the proceeds of liability
insurance) against any claim, demand, controversy,  dispute, cost, loss, damage,
expense  (including  reasonable  attorneys'  fees),  judgment  and/or  liability
incurred by or imposed upon the Indemnitee in connection  with any action,  suit
or proceeding (including any proceeding before any administrative or legislative
body or agency) to which the Indemnitee may be a party or otherwise involved, or
with which the Indemnitee may be threatened, by reason of any action or omission
of the Indemnitee (or the Indemnitee's  employee) in connection with the conduct
of Partnership affairs.  Such  indemnification  extends to the Indemnitee in its
capacity,  at the time the  cause of  action  arose or  thereafter,  as  general
partner, member of any committee or as a member, Affiliate,  director,  officer,
partner,  employee  or  other  agent of any  other  organization  in  which  the
Partnership  owns an interest or of which the  Partnership is a creditor,  which
other  organization  the Indemnitee (or its employee) serves in such capacity at
the request of the  Partnership  (whether or not the  Indemnitee or its employee
continues to serve in such capacity at the time such action,  suit or proceeding
is brought or threatened). The indemnification set forth herein shall not extend
with respect to actions or omissions of the Indemnitee  (or its employee)  which
shall have been finally  adjudicated  (by  settlement  or otherwise) in any such
action, suit or proceeding to have constituted actual fraud,  willful misconduct
or  gross  negligence.  In the  event  of  settlement  of any  action,  suit  or
proceeding  brought  or  threatened,  such  indemnification  shall  apply to all
matters covered by the settlement.  The foregoing right of indemnification shall
be in addition to any rights to which any  Indemnitee  may otherwise be entitled
and  shall  inure to the

                                       21
<PAGE>

benefit of the executors, administrators,  personal representatives,  successors
or assigns of each such Indemnitee.

            (b)  Advance  Payment of  Expenses.  The  Partnership  shall pay the
expenses incurred by an Indemnitee in defending a civil or criminal action, suit
or proceeding, or in opposing any claim arising in connection with any potential
or threatened  civil or criminal action,  suit or proceeding,  in advance of the
final  disposition  of such  action,  suit or  proceeding,  upon  receipt  of an
undertaking  by such  Indemnitee to repay such payment if he shall be determined
to be not entitled to  indemnification  therefore as provided herein;  provided,
however, that in such instance the Indemnitee is not commencing an action, suit,
or  proceeding  against  the  Partnership,  or  defending  an  action,  suit  or
proceeding  commenced  against him by the  Partnership or any Partner thereof or
opposing a claim by the Partnership or any Partner thereof arising in connection
with any such potential or threatened action, suit or proceeding.

            (c) Insurance.  The Partnership may purchase and maintain  insurance
with  such  limits  or  coverages  as  the  General  Partner   reasonably  deems
appropriate,  at the expense of the Partnership and to the extent available, for
the  protection  of any  Indemnitee  against  any  liability  incurred  by  such
Indemnitee in any such capacity or arising out of his status as such, whether or
not the  Partnership  has the power to indemnify  such  Indemnitee  against such
liability.   The  Partnership  may  purchase  and  maintain  insurance  for  the
protection of any officer, director, employee,  consultant or other agent of any
other  organization  in which the  Partnership  owns an interest or of which the
Partnership  is a  creditor  against  similar  liabilities,  whether  or not the
Partnership has the power to indemnify him or it against such  liabilities.  Any
amounts payable by the  Partnership to an Indemnitee  pursuant to the provisions
of Section  12.1(a)  above  shall be  payable  first  from the  proceeds  of any
insurance  recovery  pursuant to policies  purchased by the Partnership and then
from the other assets of the Partnership; provided, that the foregoing shall not
affect the  Partnership's  obligation  to advance  expenses  pursuant to Section
12.1(b)  hereof in  circumstances  in which the  insurance  Partnership  who has
issued such policy will not advance such expenses.

                          ARTICLE XIII. MISCELLANEOUS

      13.1 Agreement for Further Execution. The Partners agree to sign, swear or
acknowledge  any  certificates  or filings  required by the laws of the State of
Delaware or any other state,  to sign,  swear or  acknowledge  any  amendment or
cancellation  of such  certificate  or filings  whether or not such amendment or
cancellation  is  required  by law;  to sign,  swear or  acknowledge  such other
certificates,  filings,  documents or affidavits of assumed name,  trade name or
the like (and any amendments or  cancellations  thereof that may be required for
conduct  of the  Partnership's  business)  and to cause the filing of any of the
same for record wherever such filing shall be required by law. This Section 13.1
shall not  prejudice  or affect the rights of the  Partners  to approve  certain
amendments to this Agreement as herein provided.

      13.2 Amendments.

                                       22
<PAGE>

            (a) Except as otherwise  provided in this Agreement,  no alteration,
modification  or amendment of this Agreement shall be made unless in writing and
signed (in  counterpart  or otherwise) by the General  Partner and a Majority in
Interest of the Limited  Partners,  except that no alteration,  modification  or
amendment of any Section hereof which would  materially and adversely affect the
economic  interests of one or more (but not all) of the Limited  Partners may be
made (except as provided  below)  without the  unanimous  consent of all Limited
Partners so adversely affected.  Notwithstanding  the foregoing,  no increase in
the amount required to be contributed to the Partnership by the Partners,  other
than as required herein or under applicable law, may be made without the consent
of all the Partners.

            (b) Any provision to the contrary contained herein  notwithstanding,
the General Partner may,  without the consent or approval of any Partners,  make
such  amendments to this  Agreement  binding on the  Partners,  (i) to correct a
typographical  error,  cure any  ambiguity,  correct or supplement any provision
herein which may be inconsistent with any other provisions herein,  (ii) to make
any other  amendment if such  amendment  is not adverse to the  interests of the
Limited  Partners  as a whole or as a class or if such  amendment  benefits  the
Limited  Partners as a whole or as a class; and (iii) to reflect the addition of
Limited Partners pursuant to Section 5.2; provided,  however,  that no amendment
shall be adopted  pursuant to this Section  13.2(b) unless the adoption  thereof
does not affect the  status of the  Partnership  as a  partnership  for  federal
income tax purposes.

      13.3 Notices.

            (a) Any  notice to be given  under this  Agreement  shall be made in
writing  and sent by express,  registered  or  certified  mail,  return  receipt
requested,  postage prepaid,  fax, or commercial delivery service,  addressed as
set forth below:

                  (i) If to the General Partner or the Partnership:

                      One Belmont Avenue
                      Suite 417
                      Bala Cynwyd, PA  19004

                      with a copy to:

                      Klehr, Harrison, Harvey, Branzburg & Ellers LLP
                      260 S. Broad Street
                      Philadelphia, PA  19102
                      Attn.:  Lawrence D. Rovin

                  (ii) If to any  Partner,  such  notice  shall be mailed to the
address of the Partner appearing on the records of the Partnership.

            (b) Any Partner may change the address to which notice is to be sent
by giving  notice of such  change to the  Partnership  in  conformity  with this
Section 13.3.

                                       23
<PAGE>

            (c) Any such  notice  shall be  deemed  to be  delivered,  given and
received for all purposes as of the date  delivered if delivered by a commercial
delivery  service or by  confirmed  fax, or as of the date on which the same was
deposited in a regularly maintained  receptacle for the deposit of United States
mail, if sent by express, registered or certified mail.

      13.4 Governing Law and Jurisdiction.  This Agreement shall be governed by,
and  construed  in  accordance  with,  the  laws of the  State  of  Delaware  as
interpreted  by the  courts  of said  Commonwealth,  notwithstanding  any  rules
regarding choice of law to the contrary.  The parties to this Agreement agree to
the exclusive jurisdiction of the courts of New Castle County,  Delaware and the
Federal  courts of the  District of Delaware  for  resolution  of  controversies
arising  out of or  relating  to this  Agreement  and any  related  instruments,
agreements or documents.

      13.5  Binding  Nature of  Agreement.  Except as otherwise  provided,  this
Agreement  shall be binding  upon and inure to the benefit of the  Partners  and
their personal representatives, successors and assigns.

      13.6 Additional Partners. Each substitute, additional or successor Partner
shall become a signatory  hereof by signing such number of  counterparts of this
Agreement and such other  instrument or instruments  and in such manner,  as the
General Partner shall determine.  By so signing, each substitute,  additional or
successor  Partner,  as the case may be,  shall be deemed to have adopted and to
have  agreed  to be bound by all the  provisions  of this  Agreement;  provided,
however,  that no such  counterpart  shall be  binding  until it shall have been
signed by the Partnership.

      13.7  Validity.  In the event that all or any portion of any  provision of
this  Agreement  shall be held to be  invalid,  the same shall not affect in any
respect whatsoever the validity of the remainder of this Agreement.

      13.8 Entire Agreement.  This Agreement and the agreements  attached hereto
as Exhibits constitute the entire  understanding and agreement among the parties
hereto with respect to the subject matter  hereof,  and supersedes all prior and
contemporaneous  agreements  and  understandings,   inducements  or  conditions,
express or implied, oral or written, except as contained herein.

      13.9  Indulgences,  Etc.  Neither the failure nor any delay on the part of
any party hereto to exercise any right,  remedy,  power or privilege  under this
Agreement  shall  operate as a waiver  thereof;  nor shall any single or partial
exercise of any right,  remedy, power or privilege preclude any other or further
exercise of the same or any waiver of any right, remedy, power or privilege with
respect to any occurrence be construed as a waiver of such right,  remedy, power
or privilege with respect to any other occurrence.  No waiver shall be effective
unless it is in writing and signed by the party  asserted to have  granted  such
waiver.

                                       24
<PAGE>

      13.10  Execution in  Counterparts.  This  Agreement may be executed in any
number of  counterparts,  each of which  shall be deemed  to be an  original  as
against  any  party  whose  signature  appears  thereon,  and all of such  shall
together constitute one and the same instrument.

      13.11  Paragraph.  The  paragraph  headings  in  this  Agreement  are  for
convenience  only,  form no part of this  Agreement,  and shall not  affect  its
interpretation.

      13.12 Number of Days.  In computing  the number of days for the purpose of
this  Agreement,  all days shall be counted,  including  Saturdays,  Sundays and
holidays; provided, however, that if the final day of any time period falls on a
Saturday,  Sunday or holiday, then such final day shall be deemed to be the next
day which is not a Saturday, Sunday or holiday.

      13.13 Interpretation.  No provision of this Agreement is to be interpreted
for or against any party because that party or that party's legal representative
drafted such provision.

      13.14 Corporate Authority. Any corporation or trust signing this Agreement
represents  and warrants that the  execution,  delivery and  performance of this
Agreement by such corporation or trust has been duly authorized by all necessary
corporate or trustee action.

      13.15 Third Party  Beneficiaries.  Notwithstanding  anything herein to the
contrary,  no provision of this Agreement is intended to benefit any party other
than the Partners hereto and their successors and assigns in the Partnership and
shall not be enforceable by any other party.

      13.16  Appointment of  Attorney-in-fact.  Each Partner hereby  irrevocably
constitutes   and   appoints   the   General   Partner   its  true  and   lawful
attorney-in-fact,  with full power of substitution, and with the General Partner
having  full  power  and  authority  in its name,  place  and stead to  execute,
acknowledge,  deliver,  swear to,  file and record with the  appropriate  public
offices  such  certificates,  instruments  and  documents as may be necessary or
appropriate  to carry out the  provisions of this  Agreement or  effectuate  any
action taken by or on behalf of the Partnership,  including, but not limited to,
any  amendments  to this  Agreement or the  Certificate  of Limited  Partnership
approved by the Partners as provided herein.  The appointment by the Partners of
the General  Partner as  attorney-in-fact  shall be deemed to be a power coupled
with an interest,  in  recognition  of the fact that each of the Partners  under
this Agreement  will be relying upon the power of the General  Partner to act as
contemplated  by this  Agreement  in any filing and other  action by the General
Partner on behalf of the Partnership  and, shall to the fullest extent permitted
by applicable law, survive the Bankruptcy,  death or incompetency of any Partner
hereby giving such power.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       25
<PAGE>

         IN WITNESS  WHEREOF,  the undersigned have set their hands and seals as
of the day and year first above written.

GENERAL PARTNER:

KNOX MISS., LLC

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

LIMITED PARTNER:

EXPRESSION GRAPHICS, INC.

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

<PAGE>

                                    EXHIBIT A

                       PARTNERS AS OF _____________, 2002

<TABLE>
<CAPTION>
------------------------------ -------------------------------------- --------------------------------------
                                              Capital                              Percentage
                                           Contribution                             Interest
------------------------------ -------------------------------------- --------------------------------------
Limited Partners:
------------------------------ -------------------------------------- --------------------------------------
<S>                                                       <C>                         <C>
Expressions Graphics, Inc.                                $2,712,675                  99.0%
One Belmont Avenue
Suite 417
Bala Cynwyd, PA  19004
------------------------------ -------------------------------------- --------------------------------------
General Partner:
------------------------------ -------------------------------------- --------------------------------------
Knox Miss., LLC                                              $27,325                  1.0%
One Belmont Avenue
Suite 417
Bala Cynwyd, PA  19004
------------------------------ -------------------------------------- --------------------------------------
</TABLE>

<PAGE>

                                    EXHIBIT B

                               SPECIAL ALLOCATIONS

1. Special Tax Allocations.

         (a)  Qualified  Income  Offset.  In the event any Partner  unexpectedly
receives any adjustments, allocations, or distributions described in Regulations
Section 1.704-1  (b)(2)(ii)(d)(4),(5),  or (6), items of Partnership  income and
gain shall be  specially  allocated to each such Partner in an amount and manner
sufficient to eliminate, to the extent required by the Regulations, the Adjusted
Capital Account Deficit of such Partner as quickly as possible, provided that an
allocation pursuant to this Section 1(a) shall be made if and only to the extent
that such Partner would have an Adjusted Capital Account Deficit after all other
allocations  provided for in Article VI hereof have been  tentatively made as if
this Section 1(a) were not in the Agreement.

         (b) Gross  Income  Allocation.  In the event any  Partner has a deficit
Capital Account at the end of any  Partnership  fiscal year that is in excess of
the sum of (i) the amount such  Partner is  obligated  to restore,  and (ii) the
amount such Partner is deemed to be obligated to restore pursuant to the next to
last sentences of Regulation Sections 1.704-2(g)(1) and 1.704-2(i)(5), each such
Partner shall be specially allocated items of Partnership income and gain in the
amount of such  excess as  quickly  as  possible,  provided  that an  allocation
pursuant to this  Section 1(b) shall be made if and only to the extent that such
Partner  would  have a deficit  Capital  Account in excess of such sum after all
other  allocations  provided for in this Article 6 have been tentatively made as
if Section 1(a) hereof and this Section 1(b) were not in the Agreement.

         (c) Partnership  Minimum Gain Chargeback.  Except as otherwise provided
in Section 1.704-2(f) of the Regulations, notwithstanding any other provision of
Article VI hereof if there is a net decrease in Partnership  Minimum Gain during
any fiscal year, each Partner shall be specially  allocated items of Partnership
income and gain for such  fiscal  year (and,  if  necessary,  subsequent  fiscal
years)  in an  amount  equal  to such  Partner's  share of the net  decrease  in
Partnership  Minimum Gain,  determined in accordance  with  Regulations  Section
1.704-2(g).  Allocations  pursuant  to the  previous  sentence  shall be made in
proportion to the  respective  amounts  required to be allocated to each Partner
pursuant thereto. The items to be so allocated shall be determined in accordance
with Section  1.704-2(f)(6) and  1.704-2(j)(2) of the Regulations.  This Section
1(c) is  intended  to comply with the minimum  gain  chargeback  requirement  in
Section  1.704-2(f) of the  Regulations  and shall be  interpreted  consistently
therewith.

         (d) Partner Minimum Gain  Chargeback.  Except as otherwise  provided in
Section 1.704-2(i)(4) of the Regulations, notwithstanding any other provision of
Article  VI  hereof,  if  there  is a  net  decrease  in  Partner  Minimum  Gain
attributable to a Partner  Nonrecourse Debt during any fiscal year, each Partner
who has a  share  of the  Partner  Minimum  Gain  attributable  to such  Partner
Nonrecourse  Debt,  determined in accordance with Section  1.704-2(i)(5)  of the
Regulations,  shall be specially  allocated items of Partnership income and gain
for such fiscal

<PAGE>

year (and,  if  necessary,  subsequent  fiscal years) in an amount equal to such
Partner's share of the net decrease in Partner Minimum Gain attributable to such
Partner  Nonrecourse  Debt,  determined in accordance with  Regulations  Section
1.704-2(i)(4).  Allocations  pursuant to the previous  sentence shall be made in
proportion to the  respective  amounts  required to be allocated to each Partner
pursuant thereto. The items to be so allocated shall be determined in accordance
with Section  1.704-2(i)(4) and  1.704-2(j)(2) of the Regulations.  This Section
1(d) is  intended  to comply with the minimum  gain  chargeback  requirement  in
Section  1.704-2(i)(4) of the Regulations and shall be interpreted  consistently
therewith.

         (e) Nonrecourse Deductions.  Nonrecourse Deductions for any Fiscal year
shall be specially  allocated  among the Partners in proportion to their Limited
Partnership Interests.

         (f) Partner Nonrecourse Deductions.  Any Partner Nonrecourse Deductions
for any Fiscal year shall be  specially  allocated  to the Partner who bears the
economic risk of loss with respect to the Partner Nonrecourse Debt to which such
Partner  Nonrecourse  Deductions are attributable in accordance with Regulations
Section 1.704-2(i)(1).

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

         (h) Curative  Allocations.  The Regulatory  Allocations  consist of the
allocations  pursuant to Sections 1(a) through 1(g) hereof.  Notwithstanding any
other provision of this  Agreement,  the Regulatory  Allocations  shall be taken
into account in allocating  items of income,  gain, loss and deduction among the
Partners so that, to the extent possible,  the net amount of such allocations of
other items and the Regulatory Allocations to each Partner shall be equal to the
net amount  that would have been  allocated  to each  Partner if the  Regulatory
Allocations had not occurred.

2. Other Allocations Rules.

         (a) For purposes of determining the Profits, Losses, or any other items
allocable  to any  period,  Profits,  Losses,  and any such other items shall 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 Regulations
thereunder.

         (b)  Except  as  otherwise  provided  in this  Agreement,  all items of
Partnership  income,  gain,  loss,  deductions,  and any other  allocations  not
otherwise  provided  for  shall  be  divided  among  the  Partners  in the  same
proportions as they share Profits or Losses, as the case may be, for the year.

<PAGE>

         (c) The  Partners  are  aware of the  income  tax  consequences  of the
allocations  made  by  this  Exhibit  B and  hereby  agree  to be  bound  by the
provisions of this Exhibit B in reporting their shares of Partnership income and
loss for income tax purposes.

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

<PAGE>

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