Document:

UCV, L.P.,
                        a California limited partnership

               FIRST AMENDMENT TO AGREEMENT OF LIMITED PARTNERSHIP

      This FIRST AMENDMENT TO AGREEMENT OF LIMITED PARTNERSHIP (the "First
Amendment") is entered into to be effective as of February 27, 2001 (the "First
Amendment Date"), by and between:

(a)  UCVGP,  INC.,  a  California  corporation  ("UCVGP"),  as  the  withdrawing
     Managing General Partner;

(b)  UCVNV, INC., a Nevada  corporation  ("UCVNV"),  as the substitute  Managing
     General Partner admitted to replace UCVGP;

(c)  BRANDY PROPERTIES, INC., a Missouri corporation ("BPI"), as the withdrawing
     General Partner;

(d)  PAS MANAGEMENT, INC., a Nevada corporation ("PAS"), as a substitute General
     Partner admitted to replace BPI;

(e)  SPORTS ARENAS PROPERTIES,  INC., a California  corporation  ("SAPI"), as an
     original Limited Partner holding Units; and

(f)  PATRICIA A.  SHENKER,  a married  woman as her sole and  separate  property
     ("Shenker"), as an original Limited Partner holding Units

all of whom desire to amend the existing  AGREEMENT OF LIMITED  PARTNERSHIP (the
"Original  Instrument")  of UCV,  L.P., a California  limited  partnership  (the
"Partnership") dated to be effective as of June 9, 1994 as follows:

1.    Rules of Construction

     1.1 Certain  words and phrases in this First  Amendment  have their initial
letters  capitalized  (each  a  "Capitalized  Term").  If  the  definition  of a
Capitalized Term appears in the Original Instrument, such definition shall apply
to the Capitalized  Term in this First Amendment  unless a different  definition
for such Capitalized Term is provided in this First Amendment, in which case the
definition  provided  in this First  Amendment  shall  control.  As set forth in
Exhibit  A to the  Original  Instrument,  the  terms  "Agreement",  "Partnership
Agreement"  and  "Limited  Partnership  Agreement"  shall  include the  Original
Instrument as amended by this First Amendment.

     1.2 If any term or provision  of this First  Amendment  conflicts  with any
term or  provision  of the  Original  Instrument,  this  First  Amendment  shall
control.

     1.3 Except as  otherwise  modified by this First  Amendment,  each term and
provision of the Original  Instrument  shall remain in full force and effect and
is hereby ratified and confirmed by the Partners.

2.    Recitals

  2.1   As of the First Amendment Date:

          (a) the  Partnership  is  intending  to borrow money from CDC MORTGAGE
     CAPITAL INC., a New York corporation ("CDC");

          (b) to secure such borrowing,  the  Partnership  intends to grant real
     and personal property security interests to CDC; and

          (c) the Partnership and CDC were  negotiating the terms and provisions
     of a certain draft LOAN AGREEMENT  dated February 14, 2001, a copy of which
     is attached hereto as Exhibit 2.2 (the "Draft Loan  Agreement"),  and other
     documents  to  evidence  the   Partnership's   rights  and  obligations  in
     connection with such borrowing.

                                       1
<PAGE>

  2.2 This First Amendment is intended to evidence, among other things:

          (a) UCVGP's  assignment of its interest in the  Partnership  to UCVNV,
     UCVNV's  admission as a  substitute  Managing  General  Partner and UCVGP's
     withdrawal as a Managing General Partner;

          (b) BPI's  assignment of its interest in the Partnership to PAS, PAS's
     admission as a substitute General Partner and BPI's withdrawal as a General
     Partner; and

          (c) the  adoption  of  various  rights,  privileges,  preferences  and
     limitations  required by CDC to facilitate its proposed extension of credit
     to the Partnership.

3.    Substitution of UCVNV for UCVGP
      -------------------------------
     3.1 Immediately  prior to the First  Amendment Date,  UCVGP assigned all of
its Partnership  Interest and all of its interest in Partnership  Allocations to
UCVNV in accordance with this Partnership  Agreement and with the consent of all
Partners.

     3.2 Effective as of the First Amendment Date, UCVGP shall be deemed to have
withdrawn from the  Partnership  and UCVNV shall be deemed to have been admitted
as a substitute  Managing  General Partner in the place and stead of UCVGP,  all
with the consent of all Partners.

4.    Substitution of PAS for BPI
      ---------------------------
     4.1 Immediately  prior to the First Amendment Date, BPI assigned all of its
Partnership  Interest and all of its interest in Partnership  Allocations to PAS
in  accordance  with this  Partnership  Agreement  and with the  consent  of all
Partners.

     4.2 Effective as of the First  Amendment  Date, BPI shall be deemed to have
withdrawn from the  Partnership and PAS shall be deemed to have been admitted as
a substitute General Partner in the place and stead of BPI, all with the consent
of all Partners.

5.    Special Purpose Bankruptcy Remote Entity Provisions

     5.1 For  purposes  of this  Article  4 of this  First  Amendment  only,  in
addition  to other  Capitalized  Terms set forth in the  Partnership  Agreement,
Capitalized  Terms that are defined in the Draft Loan  Agreement  shall have the
same respective  meanings herein as set forth in the Draft Loan Agreement.  If a
Capitalized  Term is defined in both this  Partnership  Agreement  and the Draft
Loan  Agreement,  the  definition  set forth in the Draft Loan  Agreement  shall
control.

     5.2 This Article 4 of this First Amendment shall be automatically  void and
without  force or effect  unless the  Partnership  consummates  the  transaction
contemplated under the Draft Loan Agreement on or before March 15, 2001.

     5.3 Notwithstanding any other provisions of this Partnership Agreement, the
General Partners and the Partnership  shall take all actions  necessary to cause
the  Partnership  and General  Partners to comply  with,  and will  refrain from
taking any actions in violation of, the defined term "Special Purpose Bankruptcy
Remote Entity." Any substitute  General  Partner  permitted under this Agreement
shall be required to comply with this Article 4 of this First Amendment. As used
in  this  Agreement,  a  "Special  Purpose  Bankruptcy  Remote  Entity"  means a
corporation, limited partnership or limited liability company which at all times
since the First Amendment Date and at all times thereafter:

     (a)  was and will be  organized  solely for the  purpose of: (1) owning the
          Property  which is subject to any lien or security  interest  securing
          the  Debt;  or  (2)  acting  as  a  general  partner  of  the  limited
          partnership that owns the Property or member of the limited  liability
          company that owns the Property;

     (b)  has not engaged and will not engage in any business  unrelated to: (1)
          the  ownership of the Property;  (2) acting as general  partner of the
          limited partnership that owns the Property;  or (3) acting as a member
          of  the  limited  liability   company  that  owns  the  Property,   as
          applicable;

                                       2
<PAGE>

     (c)  has not had and will not have any assets  other than those  related to
          the  Property  or its  partnership  or member  interest in the limited
          partnership or limited  liability  company that owns the Property,  as
          applicable;

     (d)  has not  engaged,  sought or consented to and will not engage in, seek
          or consent to any dissolution, winding up, liquidation, consolidation,
          merger,  asset  sale  (except  as  expressly  permitted  by  the  Loan
          Agreement),  transfer of  partnership  or membership  interests or the
          like, or amendment of its limited partnership  agreement,  articles of
          incorporation,  articles of organization,  certificate of formation or
          operating  agreement,  as  applicable  (except  with  respect  to  the
          admission  of PAS  as a  substitute  General  Partner  for  BPI in the
          Partnership);

     (e)  if such  entity is a limited  partnership,  has and will have,  as its
          only general partners, Special Purpose Bankruptcy Remote Entities that
          are corporations;

     (f)  if such  entity  is a  corporation,  has and will  have at  least  one
          Independent Director (as hereinafter  defined),  and has not caused or
          allowed  and will not cause or allow the  board of  directors  of such
          entity to take any action requiring the unanimous  affirmative vote of
          100% of the  members  of its  board  of  directors  unless  all of the
          directors and all  Independent  Directors  shall have  participated in
          such vote (the Capitalized Term "Independent  Director" shall mean for
          purposes  of  this  Article  4  only  an  individual  selected  by the
          Corporation  and reasonably  satisfactory to Lender who shall not have
          been at the time of such individual's  appointment as a director, does
          not  thereafter  become and shall not have been at any time during the
          preceding  five  years:  (1) a  shareholder/partner/member  of,  or an
          officer or employee  of the  Corporation  or any of its  shareholders,
          subsidiaries  or  Affiliates;  (2)  a  director  of  any  shareholder,
          subsidiary  or  Affiliate  of the  Corporation  other than the General
          Partner;  (3) a customer of, or supplier to, the Corporation or any of
          its  shareholders,  subsidiaries  or  Affiliates;  (4)  a  Person  who
          Controls any such shareholder,  supplier or customer;  or (e) a member
          of      the       immediate       family       of       any       such
          shareholder/director/partner/member,  officer,  employee,  supplier or
          customer or of any other director of the General Partner);

     (g)  if such entity is a limited  liability  company,  has and will have as
          its  least  one  member  that has been and will be a  Special  Purpose
          Bankruptcy  Remote Entity that has been and will be a corporation  and
          such  corporation  is the managing  member of such  limited  liability
          company;

     (h)  if such  entity  is a  limited  liability  company,  has and will have
          articles  of  organization,  a  certificate  of  formation  and/or  an
          operating  agreement,  as applicable,  providing that: (1) such entity
          will dissolve only upon the bankruptcy of the managing member; (2) the
          vote of a majority-in-interest  of the remaining members is sufficient
          to continue the life of the limited  liability company in the event of
          such  bankruptcy  of the  managing  member;  and (3) if the  vote of a
          majority-in-interest  of the remaining members to continue the life of
          the limited liability company following the bankruptcy of the managing
          member  is  not  obtained,  the  limited  liability  company  may  not
          liquidate the Property  without the consent of the  applicable  Rating
          Agencies for as long as the Loan is outstanding;

     (i)  has not,  and without the  unanimous  consent of all of its  partners,
          directors  or  members  (including  all  Independent  Directors),   as
          applicable, will not, with respect to itself or to any other entity in
          which it has a  direct  or  indirect  legal  or  beneficial  ownership
          interest: (1) file a bankruptcy, insolvency or reorganization petition
          or otherwise  institute  insolvency  proceedings or otherwise seek any
          relief  under  any  laws  relating  to the  relief  from  debts or the
          protection  of  debtors   generally;   (2)  seek  or  consent  to  the
          appointment   of   a   receiver,   liquidator,    assignee,   trustee,
          sequestrator, custodian or any similar official for such entity or for
          all  or  any  portion  of  such  entity's  properties;  (3)  make  any
          assignment for the benefit of such entity's creditors; or (4) take any
          action that might cause such entity to become insolvent;

     (j)  has  remained  and will  remain  solvent and has  maintained  and will
          maintain  adequate  capital  in  light  of its  contemplated  business
          operations;

                                       3
<PAGE>

     (k)  has not failed and will not fail to correct any known misunderstanding
          regarding the separate identity of such entity;

     (l)  has  maintained  and will  maintain  its  accounts,  books and records
          separate from any other Person and will file its own tax returns;

     (m)  has maintained and will maintain its books,  records,  resolutions and
          agreements as official records;

     (n)  has not  commingled  and will not  commingle  its funds or assets with
          those of any other Person;

     (o)  has held and will hold its assets in its own name;

     (p)  has conducted and will conduct its business in its name;

     (q)  has maintained and will maintain its financial statements,  accounting
          records and other entity documents separate from any other Person;

     (r)  has paid and will pay its own  liabilities,  including the salaries of
          its own employees, out of its own funds and assets;

     (s)  has observed and will  observe all  partnership,  corporate or limited
          liability company formalities, as applicable;

     (t)  has maintained and will maintain an arm's-length relationship with its
          Affiliates;

     (u)  if such entity owns the  Property,  has and will have no  indebtedness
          other  than the Loan and  unsecured  trade  payables  in the  ordinary
          course of business relating to the ownership and operation of Property
          which:

          (1)  do not exceed,  at any time, a maximum amount of one percent (1%)
               of the  original  amount  of the  Principal  and are paid  within
               thirty (30) days of the date incurred;

          (2)  if  such  entity  acts  as  the  general  partner  of  a  limited
               partnership  which  owns  the  Property,  has  and  will  have no
               indebtedness  other than unsecured trade payables in the ordinary
               course of business  relating to acting as general  partner of the
               limited  partnership which owns the Property which do not exceed,
               at any time,  $10,000.00  and are paid within thirty (30) days of
               the date incurred; or

          (3)  if such entity acts as a managing  member of a limited  liability
               company   which  owns  the   Property,   has  and  will  have  no
               indebtedness  other than unsecured trade payables in the ordinary
               course of business  relating to acting as a member of the limited
               liability company which owns the Property which do not exceed, at
               any time,  $10,000.00 and are paid within thirty (30) days of the
               date incurred;

     (v)  has not and will not assume or guarantee or become  obligated  for the
          debts of any other Person or hold out its credit as being available to
          satisfy the obligations of any other Person except for the Loan;

     (w)  has  not  and  will  not  acquire  obligations  or  securities  of its
          partners, members or shareholders;

     (x)  has allocated and will allocate fairly and reasonably shared expenses,
          including shared office space, and uses separate stationery,  invoices
          and checks;

     (y)  except in  connection  with the  Loan,  has not  pledged  and will not
          pledge its assets for the benefit of any other Person;

     (z)  has held itself out and identified itself and will hold itself out and
          identify  itself as a separate and distinct  entity under its own name
          and not as a division or part of any other Person;

                                       4
<PAGE>

     (aa) has  maintained  and will maintain its assets in such a manner that it
          will not be costly or  difficult to  segregate,  ascertain or identify
          its individual assets from those of any other Person;

     (bb) has not made and will not make loans to any Person;

     (cc) has not  identified  and will not  identify its  partners,  members or
          shareholders,  or any  Affiliate of any of them, as a division or part
          of it;

     (dd) has not entered into or been a party to, and will not enter into or be
          a party to, any transaction with its partners,  members,  shareholders
          or  Affiliates  except in the  ordinary  course of its business and on
          terms which are  intrinsically  fair and are no less  favorable  to it
          than would be obtained in a comparable  arm's-length  transaction with
          an unrelated third party;

     (ee) has and will have no obligation  to indemnify its partners,  officers,
          directors  or members,  as the case may be, or has such an  obligation
          that is fully subordinated to the Debt and will not constitute a claim
          against  it in the  event  that  cash  flow in  excess  of the  amount
          required to pay the Debt is insufficient to pay such obligation; and

     (ff) will consider the  interests of its  creditors in connection  with all
          corporate, partnership or limited liability actions, as applicable.

     5.4 Notwithstanding any other provisions of this Agreement,  so long as the
Loan is  outstanding,  neither the  Partnership  nor the General  Partners shall
permit any Transfer other than a Permitted Transfer.

6.    Consent to Counsel Representation

     In negotiating and preparing this First  Amendment,  DION-KINDEM & CROCKETT
("D-K&C")  represented  Shenker,  BPI and PAS and CRAMER & EGAN, A  Professional
Corporation ("C&E") represented SAPI, UCVGP and UCVNV. Currently and in the past
both  D-K&C  and  C&E  have  served  as  special  and  limited  counsel  to  the
Partnership, the Partners or their Affiliates and may represent the Partnership,
any of the Partners or any Affiliate thereof in the future. Some or all of these
clients have interests which actually or potentially conflict with the interests
of the others.  By executing and delivering this First Amendment,  each Partner:
(a)  acknowledges  D-K&C  and C&E have  advised  such  Partner  of the  relevant
circumstances  and  the  reasonably  foreseeable  adverse  consequences  of such
current and prior multiple client representation;  and (b) grants such Partner's
informed written consent after disclosure to D-K&C's and C&E's representation of
their respective  Partner clients in connection with this First  Amendment,  the
Partnership and its business.

                                       5
<PAGE>

     This FIRST AMENDMENT TO AGREEMENT OF LIMITED  PARTNERSHIP is executed to be
effective as of the First Amendment Date set forth above.

SUBSTITUTED GENERAL PARTNERS:
----------------------------

UCVNV:                         UCVNV, INC., a Nevada corporation

                               BY: /s/HAROLD S ELKAN
                                   -------------------------
                                    Harold S. Elkan, President

PAS:                           PAS MANAGEMENT, INC., a Nevada corporation

                               BY:  /S/ PATRICIA A. SHENKER
                                   -----------------------------
                                    Patricia A. Shenker, President

WITHDRAWING GENERAL PARTNERS

UCVGP:                         UCVGP, INC., a California corporation

                               BY:  /S/ HAROLD S. ELKAN
                                   ------------------------------
                                    Harold S. Elkan, President

BPI:                           BRANDY PROPERTIES, INC., a Missouri corporation

                               BY:  /S/ PATRICIA A. SHENKER
                                   ----------------------------
                                    Patricia A. Shenker, President

LIMITED PARTNERS:

SAPI:                          SPORTS ARENAS PROPERTIES, INC., a California
                                         corporation

                               BY:  /S/ HAROLD S. ELKAN
                                   ------------------------------
                                    Harold S. Elkan, President

Shenker:                       /S/ PATRICIA A. SHENKER
                                   -------------------------
                               PATRICIA A. SHENKER, a married woman
                                    as her sole and separate
                                    property

                                       6LIMITED PARTNERSHIP AGREEMENT
                                       OF
                         VAIL RANCH LIMITED PARTNERSHIP
                        A CALIFORNIA LIMITED PARTNERSHIP

This Limited Partnership Agreement is made and entered into as of April 1, 1994,
by and between LANDGRANT CORPORATION,  a California corporation,  as the General
Partner, and OLD VAIL PARTNERS, a California General Partnership, as the Limited
Partner,  for the  purpose of forming a Limited  Partnership  under the  Revised
Limited Partnership Act of the State of California.

                                    ARTICLE 1
                          FORMATION OF THE PARTNERSHIP

        1.1 Formation. The parties hereby form a Partnership under the Revised
Limited Partnership Act of the State of California. The rights and liabilities
of the Partners shall be as provided in the Act, except as otherwise expressly
provided herein.

        1.2 Name,. The name of the Partnership shall be VAIL RANCH LIMITED
PARTNERSHIP, a California Limited Partnership, or such other name as the General
Partner may hereafter designate by Notice in writing to the Limited Partner.

        1.3 Business Purpose. The business of the Partnership shall be to
acquire, develop, improve, operate, maintain, lease, hold, sell, or dispose of
the Property (described on Exhibit "A" hereto) of the Partnership for long-term
investment or for use in its trade or business, and to engage in any other
activities related or incidental thereto, as more particularly set forth in
Paragraph 6.2. Without limiting the generality of the foregoing, the Partnership
intends to develop a shopping center on the Property and related parking and
appurtenances, as generally depicted on Exhibit "A-1" hereto.

        1.4 Place of Business. The principal place of business of the
Partnership shall be 12625 High Bluff Drive, Suite 212, San Diego, California
92130, or such other places as the General Partner may designate from
time-to-time upon giving written notice of any such change to the Limited
Partners.

        1.5 Certificate of Limited Partnership. The General Partner shall
execute and acknowledge a Certificate of Limited Partnership pursuant to the
provisions of the Act. The General Partner shall thereafter cause the
Certificate of Limited Partnership to be filed in the office of, and on a form
prescribed by, the Secretary of State of the State of California. In addition,
the General Partner shall record a copy of such Certificate of Limited
Partnership in the Office of the County Recorder of each county in which the
Partnership owns or intends to own real property or any interest in real
property. The Certificate of Limited Partnership shall be amended by the General
Partner as required by the Act.

     1.6 Accent for Service of Process.  The Partnership's  agent for service of
process shall be Christopher Smith.

        1.7 Term. The Partnership shall become a California Limited Partnership
on the date the Certificate of Limited Partnership is filed in the office of the
Secretary of State of the State of California, and shall continue until fifty
(50) years from the date hereof, unless terminated or dissolved earlier in
accordance with this Agreement or by law.

        1.8 Ownership of Property. All Partnership Property shall be held and
conveyed in the name of the Partnership, and no Partner individually shall have
any right to own any Partnership Property. No right of partition with respect to
the Property shall exist in any Partner or in any Partner's heirs, successors or
assigns, and any such right that might be effected by action of law is hereby
waived for and on behalf of themselves, their respective heirs, executors,
administrators, legal representatives, successors and assigns.

        In connection with any transfer of the Real Property or any portion
thereof to the Partnership, (i) the Partnership shall obtain title to such Real
Property, subject to such liens, encumbrances, and exceptions to title of record
as are disclosed in Exhibit "B" hereto as well as all real property taxes,
current and delinquent, and all unpaid general and special bonds and assessments
(including delinquent installments), the printed exceptions contained in a
standard coverage CLTA Owner's Policy of Title Insurance and such other matters
as expressly approved in writing by the General Partner, (ii) all closing costs
in connection with the contribution of such Property the Partnership shall be
paid for by the Partnership, (iii) the General Partner shall obtain title
insurance showing title vested in the Partnership; and (iv) the Partners shall
cause to be executed and recorded such easements and similar agreements as the
General Partner and any governmental authority having jurisdiction may
reasonably determine regarding the construction, maintenance, use and
governmental approval of such shared facilities as parking lots, roads, walkways
and the like located or to be located on the Real Property.

        1.9 Property Transfer. Immediately subsequent to the execution hereof,
the Limited Partner shall execute and deliver to Union Land Title Insurance
Company of California or other mutually satisfactory escrow company ("Union") a
fully executed Grant Deed (the "Deed") conveying to the Partnership that portion
of the Real Property required for the development of the property (the
"Property"), together with escrow instructions in a form mutually satisfactory
to both the General Partner and the Limited Partner providing, in part, that the
transfer of the Property shall be effective only upon, and Union shall do all
acts necessary for, recordation of such deed by Union.

                                    ARTICLE 2

                                  DEFINED TERMS

        The following defined terms shall, unless the context otherwise
requires, have the meanings specified in this Article 2. The singular shall be
deemed to refer to the plural, the masculine gender shall be deemed to refer to
the feminine and neuter, and vice versa, as the context may require.

        2.1 "Accountants" means Harlan & Boettger or such other firm of
independent accountants as may be engaged from time to time by the General
Partner for the Partnership.

         2.2 "Act" means the  Revised  Limited  Partnership  Act of the State of
      California.

        2.3 "Additional Partners" means any Person or Persons admitted to the
Partnership as a General or Limited Partner pursuant to Paragraph 3.3 below.

        2.4 "Affiliate" means, when used with reference to a specified Person:
(a) any Person who directly or indirectly controls, is controlled by or is under
common control with the specified Person, (b) any Person who is an officer,
General Partner or trustee of, or serves in a similar capacity with respect to,
the specified Person, or for which such Person is an officer, partner or trustee
or serves in a similar capacity, and (c) any Person who, directly or indirectly,
is the beneficial owner of thirty percent (30%) or more of any class of equity
securities of the specified Person, or of which such Person, directly or
indirectly, is the owner of thirty percent (30%) or more of any class of equity
securities.

        2.5 "Agreement" means this Limited Partnership Agreement, as amended
from time to time.

        2.6 "Capital Account" as to any Partner, means an account maintained on
the Partnership's books reflecting the excess (or deficit) of:

               (a) the sum of: (i) such Partner's  Capital  Contributions,  (ii)
            such  Partner's  share of Taxable  Income,  and (iii) such Partner's
            share of tax-exempt income of the Partnership, less

               (b) the sum of: (i) such Partner's share of Tax Loss, (ii) such
        Partner's share of other Partnership expenditures [including "Section
        705 (a) (2)(B), Expenditures" within the meaning of Treasury Regulation
        Section 1.704-1(b)(2)(iv)(i)] that are not deductible for federal income
        tax purposes (but excepting payments on indebtedness or expenditures to
        the extend included in the basis of any Partnership asset), and (iii)
        any distributions to such Partner of Distributable Cash of sale or
        Financing Proceeds.

               2.6.1 Capital Account Adjustments Under Code. Notwithstanding any
other provision in this Agreement, each Partner's Capital Account shall be
maintained and adjusted in accordance with the Code and the Treasury Regulations
thereunder, including Treasury Regulation 1.704-1(b)(2)(iv) and appropriate
adjustments to Capital Accounts permitted in the case of a Partner who receives
the benefit or detriment of any special basis adjustment under Sections 734, 743
and 754 of the Code. it is intended that such adjustments shall be made to
Capital Accounts to give effect to any income, gain, loss or deduction (or items
thereof) that is specially allocated pursuant to this Agreement. Subject to
Paragraph 2.6.5, each Partner's Capital Account shall include that of any
predecessor holder of the Interest of such Partner. A Partner who has more than
one Interest in the Partnership shall have a single Capital Account that
reflects all such interests regardless of the class of Interests owned by such
Partner and regardless of the time or manner in which such Interests were
acquired.

               2.6.2 Basic Allocation of Contributed Property. In the event that
property is contributed to the Partnership with a basis to the Partnership
different from such property's fair market value at the time of its
contribution, Capital Accounts shall be adjusted, in accordance with Treasury
Regulation Sections 1.7041 (b) (2) (iv) (d) (3) and 1. 704-1 (b) (2) (iv) (g) ,
for allocations to the Partners of depreciation, depletion, amortization, and
gain and loss, as computed for book purposes, with respect to such contributed
property. Consistent with the provisions of Treasury Regulation Section 1. 704-1
(b) (2) (iv) (g) (3), "Book Depreciation" (as defined herein) for each item of
Partnership property shall equal the amount that bears the same relationship to
the "Adjusted Book Basis" (as defined herein) of such item of Partnership
property as the "Tax Depreciation" (as defined herein) with respect to such item
of Partnership property for such year bears to the "adjusted basis" (within the
meaning of Section 1011 (a) of the Code) of such item of Partnership property.
Notwithstanding the foregoing, if an item of Partnership property shall have an
"adjusted basis" (as defined herein) equal to zero, Book Depreciation shall be
determined under a reasonable method which shall be selected by the General
Partner. As used herein: "Book Depreciation" means the deduction or allowance
for depreciation, depletion or amortization (as the case my be) that shall be
allowable to the Partnership with respect to an item of Partnership property,
the Book Basis of such item as the same may be adjusted from time to time by
Book Depreciation allowable with respect to such item of Partnership property;
and "Tax Depreciation" means the deduction or allowance for depreciation,
depletion or amortization (as the case may be) that shall be allowable for
federal income tax purposes to the Partnership with respect to an item of
Partnership property.

               2.6.3 Reduction for Distributions. A Partner's Capital Account
shall be reduced by the fair market value (determined without regard to Section
7701(g) of the Code) of any property distributed by the Partnership to such
Partner, whether in connection with a liquidation of the Partnership or of such
Partner's Interest or otherwise. Accordingly, Capital Accounts shall first be
adjusted to reflect the manner in which the unrealized income, gain, loss, and
deduction inherent in such property (that has not been previously reflected in
Capital Accounts) would be allocated, pursuant to Article 5 of this Agreement,
among the Partners if there were a taxable disposition of such property for its
fair market value (taking into account Section 7701(g) of the Code) on the date
of distribution.

               2.6.4 Carryover Upon Transfer. Upon the transfer of all or any
part of an Interest, the transferor's Capital Account that is attributable to
the transferred interest shall carry over to the transferee Partner. If the
transfer of any interest in the Partnership causes a termination of the
Partnership under Section 708(b)(1)(B) of the Code, the Capital Account that
carries over to the transferee Partner shall be adjusted in accordance with
Paragraph 2.7.4 of this Agreement and Treasury Regulation Section
1.704-1(b)(2)(iv)(e) in connection with the constructive liquidation of the
Partnership under Treasury regulation Section 1.708-1(b) (1) (iv) . The
constructive reformation of the Partnership shall be treated as the formation of
a new partnership, and the capital accounts of the partners of such new
partnership shall be determined and maintained accordingly.

               2.6.5 Adjustments at Partnership Level. Adjustments to Capital
Accounts in respect to Partnership income, gain, loss, deduction and
non-deductible expenditures (or item thereof) shall be made with reference to
the federal tax treatment of such items (and in the case of book items, with
reference to the federal tax treatment of the corresponding tax items) at the
partnership level, without regard to any requisite or elective tax treatment of
such items at the Partner level.

               2.6.6 Other Adjustment Requirements. If the foregoing rules fail
to provide guidance on how adjustments to Capital Accounts should be made to
reflect particular adjustments to Partnership capital on the books of the
Partnership, adjustments to Capital Accounts shall be made in a manner that (i)
maintains equality between the aggregate Capital Accounts of the Partners and
the amount of Partnership capital reflected on the Partnership's balance sheet,
as computed for book purposes, (ii) is consistent with the underlying economic
arrangement of the Partners, and (iii) is based, wherever practicable, on
federal tax accounting principles.

        2.7 "Capital Contribution" means the total amount of money and the fair
market value (determined consistent with Section 752(c) of the Code and without
regard to Section 7701(g) of the Code) of any property contributed to the
Partnership by any Partner (or the predecessor holders of the Interest of any
Partner). The Capital Contributions of the Partners shall be as follows:

               2.7.1 The value of the initial Capital Contribution of the
Limited Partner was calculated on the basis of Four and 00/100ths Dollars
($4.00) per square foot of the net usable land contributed to the Partnership
(approximately 1,170,892 square feet). Should the actual (ALTA Survey) square
feet be more or less, the Limited Partner contribution will be adjusted up or
down based on the Four and 00/100ths Dollars ($4.00) per square foot. Net usable
land is defined as gross acreage minus street dedications for road improvements.

        2.8 "Code" means the Internal Revenue Code of 1986, as amended (or any
succeeding law).

        2.9 "Distributable Cash" means, with respect to any fiscal period, all
cash receipts from operations in the ordinary course of business, without
deduction for depreciation, but after deducting payments for Operating Cash
Expenses, payments required to be made in connection with any loan to the
Partnership or any other loan secured by a lien on any Property of the
Partnership, capital expenditures with respect to any such Property, and any
amounts set aside for the restoration, increase or creation of reserves if and
to the extent not paid for from financing or from a Letter of Credit or proceeds
of a loan made to the Partnership by the General Partner.

        2.10 "Financing" means any mortgage financing, refinancing, or borrowing
secured by any Property but excluding any loan made by the Partnership or any
secured loan made to the Partnership.

         2.11  "General  Partner"  means  LANDGRANT  CORPORATION,  a  California
      corporation.

        2.12 "Incapacity" means the entry of any order for relief in bankruptcy,
of incompetence or of insanity, or the death, dissolution or termination (other
than by merger or consolidation), of any Person.

        2.13 "Interest" means the general profit and loss allocation to the
partners (without special allocation), which percentage is as follows:
                             General Partner                     50%
                             Limited Partner                     50%

        2.14 "Limited Partner" means OLD VAIL PARTNERS, a California General
Partnership, as well as any Person admitted to the Partnership as a Limited
Partner, or Substituted Limited Partner; and any decision or vote to be made by
the Limited Partner shall be made by the holder or holders of more than fifty
percent (50%) of the outstanding Interests held by all Limited Partners.

        2.15 "Notice" means a writing, containing the information required by
this Agreement to be communicated to any Person, effective either upon personal
delivery or three (3) business days after being duly sent by registered or
certified mail, return receipt requested, to such Person, if a Partner, at the
address set forth below or such other address as such Partner may hereafter
designate by giving Notice as provided herein, and to any other Person at the
last known mailing address of such Person; provided, however, that any
communication containing such information sent to a Person (including a Partner)
and actually received by such Person shall constitute Notice for all purposes
under this Agreement, and provided further, that any Partner may change its
address by giving Notice to the other Partner as provided herein.

 To the General Partner:      To the Limited Partner:

 LANDGRANT                    OLD VAIL PARTNERS
 Attn: Christopher Smith      Attn: Harold Elkan
 12625 High Bluff Drive       5230 Carroll Canyon Road
 Suite 212                    Suite 310
 San Diego, CA 92130          San Diego, CA 92121

 With a copy to:              With a copy to:

                               EUROWEST PROPERTIES, INC. Attn: Peter W.
                               Edelmann P.O. Box 881691 San Diego, CA 92108

        2.16 "Operation Cash Expenses" means, with respect to any fiscal period,
 the amount of cash disbursed in the ordinary course of business during such
 period, including, without limitation, all cash expenses, such as advertising,
 promotion, property management, insurance premiums, taxes, utilities, repair,
 maintenance, legal, accounting, bookkeeping, equipment use and telephone
 expenses. Operating Cash Expenses shall include fees paid by the Partnership to
 any partner or any Affiliate thereof permitted by this Agreement, and the
 actual cost of goods, materials and administrative services used for or by the
 partnership, whether incurred by any Partner, any Affiliate thereof or any
 non-Affiliate in performing functions set forth in this Agreement reasonably
 requiring the use of such goods, materials or administrative services.
 Operating Cash Expenses shall not include expenditures paid from Reserves or
 expenditures attributable to obtaining Sale or Financing Proceeds and shall not
 include any expenditures paid for from Financing proceeds or from a Letter of
 Credit or the proceeds of any loan made to the Partnership.

        2.17 "Partners" means the General and Limited Partners, collectively.

         2.18  "Partnership"  means the Limited  Partnership  formed  under this
      Agreement.

        2.19 "Partnership Minimum Gain" with respect to any taxable year of the
Partnership means the "partnership minimum gain" computed strictly in accordance
with the principles of Section 1.704-1T(b)(4)(iv)(c) of the Temporary Treasury
Regulations. Subject to the previous sentence, "Partnership Minimum Gain" means
the amount determined as follows: (i) first, compute, with respect to each
Nonrecourse Liability of the Partnership, the amount of taxable income or gain
that would be realized by the Partnership if the Partnership disposed of (in a
taxable transaction) the Partnership property subject to the Nonrecourse
Liability in full satisfaction of that Nonrecourse Liability (and for no other
consideration), and (ii) then, add together the amounts so computed for all
Nonrecourse Liabilities of the Partnership. This sum is the "Partnership Minimum
Gain".

        2.20 "Person" means any individual, partnership, corporation, trust,
estate or other entity.

        2.21 "Property" means the Real Property, all improvements now or
hereafter constructed thereon, and all personal property used in connection
therewith, including any interest of the Partnership therein or any part
thereof, and any other real or personal property owned by the Partnership from
time to time.

        2.22 "Property Development Fee" means any fee or compensation payable to
the General Partner, any Affiliate thereof, or any non-Affiliate for property
development services, subject to the limitations set forth in Paragraph
6.4.1(a).

        2.23 "Property Management Fee" means any fee payable to the General
Partner, any Affiliate thereof, or any non-Affiliate for property management
services subject to the limitations on fees payable to the General Partner or
its Affiliates set forth in
 Paragraph 6.4.1(c).

        2.24 "Real Property" means all of the Real Property located at the
 southwest intersection of Redhawk Parkway and Highway 79 South, in the City of
 Temecula, County of Riverside, State of California, more particularly described
 on Exhibit "A" attached hereto, that is presently owned and to be contributed
 to the Partnership pursuant to Paragraph 3.4 hereof, by OLD VAIL PARTNERS on
 behalf of the Limited Partner.

        2.25 "Reserves" means, with respect to any fiscal period, funds set
 aside or amounts allocated during such period to reserves which shall be
 maintained in amounts deemed sufficient by the General Partner for working
 capital, to pay taxes, insurance, debt service, repairs, replacements,
 renewals, and for other costs or expenses incident to the ownership or
 operation of the Property.

       2.26 "Sale" means any Partnership transaction (other than the receipt of
Capital Contributions) not in the ordinary course of its business, including
without limitation sales, exchanges or other dispositions of real or personal
property, condemnations, recoveries of damage awards and insurance proceeds
(other than business or rental interruption insurance proceeds), and principal
payments with respect to loans made by the Partnership pursuant to this
Agreement, but excluding any Financing.

        2.27 "Sale or Financing Proceeds" means all cash receipts arising from a
sale or Financing, less the following:

               (a)  The  amount  necessary  for the  payment  of all  debts  and
            obligations related to the particular Sale or Financing;

               (b) The amount of cash paid or to be paid in connection with such
        Sale or Financing (which shall include, with regard to damage recoveries
        or insurance or condemnation proceeds, cash paid or to be paid in
        connection with repairs, replacements or renewals, in the discretion of
        the General Partner, relating to damage to or partial condemnation of
        the affected Property); and

                (c) The amount considered appropriate by the General Partner to
        pay taxes, insurance, debt service, repairs, replacements or renewals,
        or other costs or expenses of the Partnership (including costs of
        improvements or additions in connection with any Property) or to provide
        for the purchase of an interest in real property in connection with any
        Property, or to provide Reserves therefore.

        2.28 "Substituted Limited Partner" means any Person admitted to the
Partnership as a Limited Partner pursuant to Paragraph 7.3.

        2.29 "Taxable Income" or "Tax Loss" means the income or loss of the
Partnership for each fiscal year as determined for Federal income tax purposes,
including but not limited to related federal tax items such as capital gain or
loss, tax preferences, credits, depreciation and investment credit recapture.

      2.30  Other  Internal  Definitions.  The  following  terms  shall have the
   meanings defined in the paragraphs shown beside each of the following terms:

        Term
        Actual Cost 6.5.3
        Appraised Value 9.4.4
        Buy-Out Notice 7.5.1
        Controlling Person 6.5.4
        Effective Date of Buy-Out Notice 7.5.1
        Encumbrances 7.5.3
        Event of Default 9.1
        First Appraiser 9.4.1
        First Refusal Notice 7.2
        Guaranteed Payment 5.4.2
        Initial Notice 7.5.1
        Insolvency Laws 9.1(b)
        Liability Notice 7.5.1
        Minimum Gain Charge-Back 5.4.7
        Net Usable Land 2.7.1
        Offering Partner 7.5.1
        Offering Partner Value 7.5.1 Phase I
        Property 3.4.(b)2
        Phase II Property 3.4.(b)2
        Receiving Partner Value 7.5.1
        Receiving Partner 7.2
        Second Appraiser 9.4.2
        Selling Partner 7.2
        Single Appraiser 9.4.1
        Stated Value 7.5.1
        Tax Matters Partner 10.6
        Third Appraiser 9.4.2
        Transfer 7.1
        Undisclosed Liability 7.2, 7.5.2
        Union 1.9

                                    ARTICLE 3
                              PARTNERS AND CAPITAL

         3.1  General   Partner.   The  General   Partner   shall  be  LANDGRANT
      CORPORATION,  which  shall  own a  fifty  percent  (50%)  interest  in the
      Partnership.

         3.2 Limited  Partner.  The Limited  Partner  shall be OLD VAIL PARTNERS
      which shall own a fifty percent (50%) interest in the Partnership.

         3.3 Additional or  Substituted  Partners.  The General  Partner may not
      admit  additional  general or Limited  Partners to the Partnership  except
      upon  approval  of the  Limited  Partners,  and on  terms  and  conditions
      established  herein  or  from  time to time  by the  General  Partner  and
      approved by the Limited Partner. Each additional Partner shall comply with
      all  conditions  to being  admitted  to the  Partnership,  as set forth in
      Paragraphs 7.1 and 7.3.2.

         3.4.  Partnership Capital. The contributions of the General Partner and
      the Limited Partner to the  capitalization  of the Partnership shall be as
      follows:

               (a) The Limited Partner shall contribute to Vail Ranch Limited
        Partnership all of the land currently owned by OLD VAIL PARTNERS on
        behalf of the Limited Partner and identified in Exhibit "A" attached
        hereto. The General Partner shall procure and contribute to the
        Partnership contract rights with retail operators listed on Exhibit "C"
        attached.

                (b) The Partners' Capital Accounts shall be established based on
        the following allocation of value to assets contributed to the
        Partnership by the Partners:
                       1. The Limited Partner shall be allocated a capital
               account of Four Million Six Hundred Eighty-Three Thousand Five
               Hundred Seventy-One and 00/100ths Dollars ($4,683,571.00) based
               on valuation of the net usable land contributed to the
               Partnership. Said amount of land is estimated to be approximately
               1,170,892 square feet and to have a value of Four and 00/100ths
               Dollars ($4.00) per square foot. Should the actual (ALTA Survey)
               square feet be more or less, the Limited Partner contribution
               will be adjusted up or down based on the net usable land. The
               Limited Partners' capital account will accrue interest
               (non-compounded) at the rate of Wall Street's prime rate +1,
               beginning at the execution of the Limited Partnership. Interest
               will only accrue on 10.0 acres (10.0 acre value - $1,742,400),
               which is Phase I of the project. Thereafter, interest will accrue
               on the additional acreage as development occurs. For purposes of
               calculating accrued interest on future development, development
               begins the earlier of: (i) construction loan funding; or (ii)
               when concrete pad is poured for additional phase. The dirt
               calculation will be on a 5:1 ratio. For example, if 20,000 square
               feet of building is being constructed, the corresponding dirt
               contribution for accruing interest would be 20,000 x 5, or
               100,000 square feet.

                      2. The General Partner shall be allocated a capital
               account of Three Hundred Thousand and 00/100ths Dollars
               ($300,000.00) as recognition of the value to be contributed from
               the contract rights that they have secured from retailers listed
               on Exhibit "C". The General Partners' capital account will be
               allocated one-third ($100,000) to "PHASE I" (approximately 10
               acres located on the eastern portion of the property) and
               two-thirds ($200,000) to "PHASE II". The General Partners'
               capital account will accrue interest under the same terms as the
               Limited Partners' capital account.

                      3. The Capital Account for the Limited Partner (Phase I)
               shall be adjusted downward upon the discharge of encumbrances
               against the Property contributed to the Partnership by the
               Limited Partner if the Partnership pays off the encumbrances with
               the exception of improvement cost for Country Glen and Presley
               dirt, which will be a Partnership expense. This property is
               presently subject to various liens and assessments for the
               periods ending April 1993, December 1993, and April 1994,
               including general real estate taxes and assessments, State of
               California delinquent taxes for fiscal year 1989-1990, Assessment
               Lien and Reimbursement Agreement executed June 22, 1992, with
               Presley of San Diego. The Partnership acknowledges that Riverside
               County has started a foreclosure proceeding because of the
               delinquent tax assessment. The Limited Partner hereby agrees,
               within thirty (30) days after the Partnership Agreement is
               executed, to cure the County foreclosure proceeding by either
               paying in full the delinquent taxes or negotiating a partial
               settlement with installment payments. If the Partnership pays off
               any encumbrance, the Limited Partner shall be deemed to have
               received a distribution of capital equal to the total amount of
               such payment upon the discharge of such encumbrances and the
               Limited Partner capital account shall be reduced by the amount of
               such deemed distributions of capital within thirty (30) days
               after the payment of such taxes and assessments. No Partner shall
               be paid interest on any Capital Contribution or Capital Account,
               except as specifically provided herein. The Partnership shall not
               redeem or repurchase any Interest, and no Partner shall have the
               right to withdraw, or receive any return of, its Capital
               Contribution or Capital Account, except as specifically provided
               herein.

        3.5. Partnership Funds.

         3.5.1 Bank Account. The Partnership shall establish an interest-bearing
      bank  account  administered  by the  General  Partner  for the  deposit of
      Partnership  funds. Cash contributed to or borrowed by the Partnership and
      cash  proceeds  from the sale of land  owned by the  Partnership  shall be
      deposited in such account. Interest earned thereon shall be distributed to
      the Partners not less than four times per calendar year.

         3.5.2 Sources of Funds

            3.5.2.1 Initial  Pre-Development Funds. The initial funds to be used
         for the benefit of  pre-development  expenses are proposed and outlined
         on Exhibit "D" which will be revised  after  development  proposals are
         reviewed.  These pre-development expenses will be funded by the General
         Partner and from Partnership  funds.  Said funds will be deposited into
         the Partnership's bank account.

            3.5.2.2 Additional Funds. The General Partner  contemplates  success
         in procuring the necessary predevelopment approvals and contracts. Once
         pre-development  work  is  completed,  it  will  be  necessary  for the
         Partnership  to  procure  additional  capital.  This  capital  will  be
         obtained as follows:

            (a) Pad Sale  Proceeds:  The  Partnership  will  undertake to sell a
         portion of the Partnership  Property to certain specified retailers who
         are a party to the contracts contributed by the General Partner.  These
         sale  proceeds  will  remain  within  the  Partnership  to be used  for
         Partnership purposes in creating the shopping center as contemplated by
         the parties.

            (b)  Construction   Loan  Proceeds:The  Partnership  will  obtain  a
      construction  loan to  provide  the  capital  necessary  to  complete  the
      improvements  contemplated by the parties.  The Partnership Property shall
      be used as security for the construction  loan. The construction loan will
      be  secured  by a  deed  of  trust  encumbering  all or a  portion  of the
      Partnership Property.

            (c) Capital Costs Shortfall: In the event that the construction loan
         and proceeds from the sale of portions of the  Partnership  Property to
         retailers are not adequate to cover all of the capital costs  necessary
         to construct  the  improvements  to be made a part of the  contemplated
         shopping   center   (including   without   limitation   all   interest,
         governmental  impositions,  and all other costs related to construction
         of the shopping center),  the General Partner and Limited Partner shall
         each have the opportunity, but shall not be required, to contribute the
         necessary  capital  either as equity  or debt to the  Partnership.  The
         Partners shall not make unequal equity contributions to the Partnership
         without the  approval of the General  Partner.  If all  partners do not
         contribute  an equal  additional  amount  to the  Partnership  as their
         equity   contribution,   each  of  the  Partners  will  "squeeze  down"
         proportionately  to accommodate all of the additional  equity interests
         in the  Partnership  in the same  manner as if such  additional  equity
         financing  was provided by new  investors.  If the General  Partner and
         Limited Partner do not contribute  sufficient additional capital to the
         Partnership to meet capital  expenditures  for the  construction of the
         project and  eliminate  any  shortfall,  then the General  Partner will
         solicit from the marketplace additional equity investors to provide the
         additional  capital  necessary to complete  all of the shopping  center
         improvements.  Such  capitalization  may occur in phases or in one lump
         sum  depending  on market  conditions.  To the  extent  of such  equity
         financing, each of the Partners of the Partnership shall "squeeze down"
         proportionately  to accommodate  the additional  equity interest of the
         Persons  providing  such  capital.  Such  reductions,  however,  in the
         aggregate,  shall not exceed  twenty-five  percent  (25%) of the entire
         ownership without the Limited Partner and General Partner approval.

            (d)  Operating  Revenues  Shortfall  Phase  I:  To  the  extent  the
         operating  revenues  are  not  adequate  to pay  all  of the  operating
         expenses and the costs of the  third-party  debt,  the General  Partner
         shall be  responsible  for the costs of the  operating  shortfall.  The
         General  Partner shall be obligated to fund the operating  shortfall so
         long as it can be  demonstrated  that  the  value  of the  property  is
         greater than the amount of additional  capital being  invested.  In the
         alternative,   the  General  Partner  may  solicit   additional  equity
         investors.  Before the General Partner may solicit  outside  investors,
         the Limited Partner shall first have the opportunity,  but shall not be
         required,  to contribute the necessary capital to the Partnership.  Any
         such additional capital contribution by the Limited Partner may be made
         either as equity or debt as the Limited  Partner may determine.  If the
         Limited  Partner  elects  to  contribute   additional  capital  to  the
         Partnership as equity, the Limited Partner shall realize an increase in
         percentage of ownership  interest in the Partnership in the same manner
         if it was a third  party  equity  investor.  To the  extent  capital is
         raised and ownership interest are to be transferred,  the parties shall
         "squeeze down" proportionately.

            (e) Operating Revenue Shortfall Phase II. Should Operating  Revenues
         not be available to carry Phase II prior to its Development  Completion
         (defined  as 75% of  gross  leaseable  square  footage  completed  with
         certificates  of completion  received),  the Limited Partner shall have
         the obligation to provide necessary funds. Should the G Limited Partner
         be unable to provide the necessary  funds,  the General Partner will be
         obligated to make "best  efforts,"-is  to provide the necessary  funds.
         Funds will be attained either through  third-party  debt or equity.  To
         the  extent  of such  equity  financing,  each of the  partners  of the
         Partnership  shall "squeeze down"  proportionately  to accommodate  the
         additional equity interest of the persons providing such capital.  Such
         reductions,  however,  in the aggregate,  shall not exceed  twenty-five
         percent (25%) of the entire  ownership  without the Limited Partner and
         General Partner approval.

Both General Partner and Limited Partner will have reciprocal Buy/Sell Options
on the Phase II property during the Development Completion stage if there are
Operating Shortfalls. The Buy/Sell Option shall be in accordance with Section
7.5.

Upon Phase II Development Completion, the General Partners will have the same
responsibility to handle Operating Revenue Shortfall as 3.5.2.2.(d) above.

              3.5.3. Partner Loans. Cash proceeds realized from the sale of
Partnership Property shall be deposited into an interest-bearing account and
shall be deemed "Partnership Cash". As Partnership Cash is withdrawn from the
Partnership's bank account and used for any purpose other than distribution to
Partners, the amount of cash so used shall accrue interest at the rate of Prime
plus one percent (1%) from the date withdrawn. The accrued interest shall be
cumulative but shall not be compounded.

               The Partners will accrue interest proportionately from the
Partnership cash used for development and construction costs. The proportionate
share attributed to the Limited Partner will be hereinafter referred to as
"Limited Partner Loan" and the interest that accrues thereon shall be "Preferred
Interest". The proportionate share attributed to the General Partner will be
hereinafter referred to as "General Partner Loan" and the interest that accrues
thereon shall be referred to as "Preferred Interest".

               Any cash contributed to the Partnership by the General Partner,
other than proceeds realized from the sale of land, will be referred to as a
"General Partner Cash Loan" and shall be treated as debt of the Partnership on
which interest shall accrue at the annual rate of Prime plus one percent (1%)
payable as set forth in Paragraph 4.1 hereof.

        3.6. Liability of Partners

               3.6.1 Limited Partners. No Limited Partner shall be liable for
the debts, liabilities, contracts or any other obligations of the Partnership. A
Limited Partner shall be liable only to make its initial Capital Contribution,
and no Limited Partner shall be required to lend any funds to the Partnership
or, after its Capital Contribution has been paid, to make any further Capital
Contribution to the Partnership, except as provided in Paragraph 9.7 of this
Agreement.

               3.6.2 Return of Distributions. In accordance with the
requirements of California law, a Limited Partner may, under certain
circumstances, be required to return to the Partnership, for the benefit of
Partnership creditors, amounts previously distributed to it as a return of
capital. It is the intent of the Partners that no distribution to any Limited
Partner of Distributable Cash or of Sale or Financing Proceeds shall be deemed a
return or withdrawal of capital for purposes of this Agreement, even if such
distribution represents, for federal income tax purposes or otherwise (in whole
or in part), a return of capital, and that no Limited Partner shall be obligated
to pay any such amount to or for the account of the Partnership or any creditor
of the Partnerships. However, if any court of competent jurisdiction holds that,
notwithstanding the provisions of this Agreement, any Limited Partner is
obligated to make any such payment, that obligation shall be the obligation of
such Limited Partner and not of the General Partner.

               3.6.3 No Personal Liability. The General Partner shall have no
personal liability for repayment to the Limited Partners of their Capital
Contributions, or for repayment to the Partnership of the negative amounts of
such Limited Partners' Capital Accounts, if any.

                                    ARTICLE 4
                           REVENUES AND DISTRIBUTIONS

       4.1 Operating Revenues. Operating revenues shall be derived from rents
and other charges paid by tenants of the shopping center and interest income
from moneys held on deposit. Operating revenues shall be used pursuant to the
following priorities:

               (a)  Operating  Expenses  of the  Partnership;

               (b) Interest on third-party debt, if any;

               (c) Preferred Interest on General Partner Cash Loan principal
       pursuant to 3.5.3, if operating revenues are available, otherwise,
       interest will accrue;

               (d) Repayment of General Partner Cash Loan principal  pursuant to
            3.5.3, if operating revenues are available;

               (e) Preferred Interest on General Partner and Limited Partner
       Loan prorata (per ownership interest) pursuant to 3.5.3, if operating
       revenues are available, otherwise, interest will accrue;

               (f) Pay carry cost of Phase II property (Assessment District and
       real property taxes). Limited Partners' capital account in Phase I will
       be reduced by General Partner proportionate contribution to Phase II.

               (g) Repayment of General Partner Loan principal and Limited
       Partner Loan principal prorata (per ownership interest), if operating
       revenues are available;

               (h) Repayment of  construction  loan/permanent  loan if operating
            revenues are available;

               (i) Return of the Capital Accounts of the Partners prorata (per
       ownership interest) until all capital accounts are reduced to zero.

       Any distribution of Distributable Cash to the Partners shall be made not
less frequently than annually.

      4.2  Distributions of Sale or Financing  Proceeds.  All cash proceeds from
   permanent loan,  refinancing,  or sale of the Project shall be distributed in
   the following priorities:

               (a) Cost of Transaction;

               (b)  Operating  Expenses,  if not  otherwise  paid  by  operating
            revenues;

               (c) Repayment of third party principal and interest, if any;

               (d) Preferred Interest on General Partner Cash Loan Principal;

               (e) Repayment of General Partner Cash Loan Principal;

               (f) Preferred  Interest on any Limited  Partner Loans and General
            Partner Loans prorata (per ownership interest);

               (g)  Repayment  of Limited  Partner  Loan  principal  and General
            Partner Loan Principal prorata (per ownership interest);

               (h) Return of the Capital  Accounts of the Partners  prorata (per
            ownership interest) until all capital accounts are retired; and

               (i) Distribution to the Partners in proportion to their Ownership
            Interest in the Partnership.

              Such distributions to the Partners shall be made not less
       frequently than annually (or, in the case of a Sale of all of the
       Partnership Property within thirty (30) days after the closing of such
       Sale). Noncash proceeds (i.e. Note, deed of trust) shall continue to be
       held as assets of the Partnership with the cash proceeds distributed in
       accordance with the above.

                                    ARTICLE 5
                   ALLOCATIONS OF TAXABLE INCOME AND TAX LOSS

       5.1 In General. Taxable Income and Tax Loss of the Partnership shall be
determined and allocated with respect to each fiscal year of the Partnership as
of the end of such year. Subject to the other provisions of this Article 5, an
allocation to a Partner of a share of Taxable Income or Tax Loss shall be
treated as an allocation of the same share of each item of income, gain, credit,
loss and deduction that is taken into account in computing Taxable Income or Tax
Loss.

       5.2 Allocation of Operating Income and Loss. Except as provided in
Paragraphs 5.3 and 5.4 of this Agreement, (a) to the extent cash is distributed
during the then current fiscal year, net income for tax purposes shall be
allocated in accordance with actual cash distributions and thereafter net income
shall be allocated in proportion to the Partners' respective ownership interest
in the Partnership; and (b) net losses shall be allocated in proportion to each
Partner's positive capital account balance until all capital accounts reach
zero, and thereafter net losses shall be allocated in proportion to the
Partner's respective ownership Interest in the Partnership.

        5.3 Gain and Loss from Sale or Financing.

            5.3.1  Gain.   Subject  to  Paragraphs  5.3.2  and  5.3.3,  and  all
         subparagraphs  of Paragraph  5.4 of this  Agreement,  any gain realized
         from a Sale  or  Financing  shall  be  allocated  to  the  Partners  in
         proportion to their Interests in the Partnership.

            5.3.2 Loss.  Subject to all  subparagraphs of 5.4 of this Agreement,
         any loss  realized  from a sale or Financing  shall be allocated to the
         Partners in proportion to their Interests in the Partnership.

            5.3.3 Recaptured  Depreciation.  Subject to all subparagraphs of 5.4
         (other than Paragraph 5.4.1) of this Agreement,  any gain realized from
         a Sale or Financing and treated as ordinary  income for federal  income
         tax purposes because  attributable to the recapture of any depreciation
         ("Recaptured  Depreciation")  shall be allocated to the Partners in the
         same  ratio as prior  allocations  to such  Partners  of Tax  Losses or
         Taxable Income attributable to Recaptured Depreciation (but only to the
         extent of gain  otherwise  allocable to each  partner  pursuant to this
         Paragraph 5.3).

         5.4 Additional  Allocation  Provisions.  Notwithstanding  the foregoing
      provisions of this Article 5:

            5.4.1  Ordinary  Income from Sale.  Subject to Paragraph 5.3 of this
         Agreement,  in the  event  that  any  Taxable  Income  to be  allocated
         hereunder  includes  income  resulting  from the sale or disposition of
         property  that is treated as  ordinary  income for  federal  income tax
         purposes,  then the Taxable Income so treated as ordinary  income shall
         be allocated to and  reported by the  Partners in  proportion  to their
         accumulated  depreciation  or  cost  recovery  allocations.   For  that
         purpose, the Partnership shall keep records of such allocations.

            5.4.2 Partner  Distribution v. Guaranteed Payment. In the event that
         any amount  claimed  by the  Partnership  to  constitute  a  deductible
         expense in any fiscal year is treated for federal  income tax  purposes
         as a distribution  made to a Partner in its capacity as a member of the
         Partnership and not a "guaranteed payment" as defined in Section 707(c)
         of the Code or a payment to a Partner  not acting in his  capacity as a
         partner  under  Section  707 (a) of the Code,  then the  Partner who is
         deemed to have received such  distribution  shall first be allocated an
         amount of Partnership  gross income equal to such payment,  its Capital
         Account shall be reduced to reflect the distribution  and, for purposes
         of this  Article 5,  Taxable  Income  and Tax Loss shall be  determined
         after making the allocation required by this Paragraph 5.4.2.

            5.4.3 Income or Loss  Allocation  to  Assignee.  For any fiscal year
         during which an Interest is assigned by a Partner (or by an assignee or
         successor in interest to a Partner),  the portion of the Taxable Income
         and Tax Loss of the  Partnership  that is  allocable in respect of such
         Interest shall be apportioned  between the assignor and the assignee of
         the Interest on the basis of the number of days during such fiscal year
         that each is the owner  thereof,  without  regard to (a) the results of
         Partnership  operations  before or after  such  assignment,  or (b) any
         payments or  distributions  made to the  Partners  before or after such
         assignment,  except as  otherwise  provided in and  required by Section
         706(d) (2) of the Code.

            5.4.4 Cost Recovery  Deductions.  In the event that the admission of
         any Partner causes a reduction in cost recovery deductions allowed with
         respect to any Property under Section 168(h) (6) of the Code,  then the
         General Partner may, in its sole discretion,  separately  allocate cost
         recovery  deductions  so  that  (a)  the  reduction  in  cost  recovery
         deductions resulting from the application of Section 168(h) (6) will be
         allocated to the Partner whose  ownership of Interests  caused  Section
         168(h)  (6) to  apply,  and (b) the  cost  recovery  deductions  of the
         remaining Partners will, to the extent possible, not be diminished.

            5.4.5  Minimum  One  Percent  (1%)  Interest.   Notwithstanding  the
         foregoing  provisions of this Article 5, the General Partner's interest
         in each item of Partnership  income,  gain,  loss,  deduction or credit
         shall  equal at least one  percent  (1%) of each of those  items at all
         times  during the  existence of the  Partnership.  In  determining  the
         General  Partner's  interest  in  those  items,  no  Limited  Partner's
         interest owned by the General Partner shall be taken into account.

            5.4.6 Contributed Property. Notwithstanding the foregoing provisions
         of this Article 5, any income, gain, loss and deduction with respect to
         property  contributed  to the  Partnership by a Partner shall be shared
         among the Partners,  pursuant to Treasury Regulations promulgated under
         Section 704(c) of the Code, so as to take account of the variation,  if
         any,  between the basis of the property to the Partnership and its fair
         market value at the time of contribution.

            5.4.7  Minimum  Gain  Charge-back.  In the event that there is a net
         decrease in the Partnership  Minimum Gain during a Partnership  taxable
         year,  each  Partner  shall be  allocated  items of income  and gain in
         accordance  with  Section  1.704-1T(b)  (4) (iv)  (e) of the  Temporary
         Treasury   Regulations  and  its   requirements  for  a  "minimum  gain
         charge-back."

            5.4.8 Code Reallocation Requirements.  In the event that the Code or
         any Treasury Regulations  promulgated thereunder require allocations of
         items of income,  gain, loss,  deduction or credit different from those
         set  forth in this  Agreement,  upon the  advice  of the  Partnership's
         Accountants,  the  General  Partner  is hereby  authorized  to make new
         allocations  in reliance upon the Code,  the Treasury  Regulations  and
         such  advice of the  Partnership's  Accountants.  Such new  allocations
         shall be deemed to be made pursuant to the fiduciary  obligation of the
         General  Partner to the Partnership  and the Limited  Partners,  and no
         such new allocation  shall give rise to any claim or cause of action by
         any Limited Partner. ARTICLE 6

                             RIGHTS, POWERS AND DUTIES OF THE GENERAL PARTNER

      6.1 Management of the Partnership.

                6.1.1 General Authority. Subject to the consent of the Limited
Partner where required by this Agreement, the General Partner, within the
authority granted to it under this Agreement, shall have the exclusive right and
authority to manage the business of the Partnership and is hereby authorized to
take any action of any kind and to do anything and everything it deems necessary
or appropriate for and on behalf of the Partnership in accordance with the
provisions of this Agreement and applicable law.

               6.1.2 Fiduciary Responsibilities. The General Partner shall be
under a fiduciary duty to conduct the affairs of the Partnership in the best
interests of the Partnership and the Limited Partners, including the safekeeping
and use of all partnership funds and assets and the use thereof for the
exclusive benefit of the Partnership. Neither the General Partner nor any
Affiliate of the General Partner shall enter into any transaction with the
Partnership unless the transaction is expressly permitted hereunder or consent
of the Limited Partner thereto is obtained. The General Partner shall not in its
capacity as General Partner receive any salary, fees, commissions, profits,
distributions or allocations, except fees, commissions, profits, distributions
and allocations to which it is entitled under this Agreement or the agreements
entered into pursuant to Paragraph 6.4.1 below.

               6.1.3 Reliance Upon General Partner. Except in the case of any
transaction or action prohibited by Paragraph 6.3, any Person dealing with the
Partnership or the General Partner may rely upon a certificate signed by the
General Partner as to its authority to make any undertaking on behalf of the
Partnership, and shall not be required to determine any facts or circumstances
bearing upon the existence of such authority.

               6.1.4 Limited Partner Scope. No Limited Partner shall participate
in or have any control over the Partnership business or any authority or right
to act for or bind the Partnership. The Limited Partner hereby consents to the
exercise by the General Partner of the powers conferred on it by this Agreement.

        6.2 Authority of the General Partner. Subject to the Limited Partner's
right to consent pursuant to Paragraphs 6.3 and 6.4.3 below and except to the
extent otherwise provided herein, the General Partner, in the name of and on
behalf of the Partnership, is hereby authorized to:

               (a) Acquire, through purchase, lease, easement, exchange or
       otherwise, any personal property or acquire, through easement, any real
       property which may be necessary, convenient or incidental to the
       accomplishment of the purposes of the Partnership;

               (b) Operate, maintain, develop, improve or cause to have
       constructed any real or personal property necessary, convenient or
       incidental to the accomplishment of the purposes of the Partnership and
       to lease retail space to third parties;

            (c) Sell,  assign,  exchange,  grant  options to sell,  exchange  or
         otherwise  encumber  or  dispose  of  all or  substantially  all of the
         Property;

               (d) Prepay in whole or in part, refinance, recast, increase,
       modify or extend any mortgages affecting any Property or in connection
       therewith execute any extensions, modifications or renewals of mortgages
       on any Property if the terms, rates and conditions of the proposed
       transaction are competitive or customary as then prevailing in the
       industry for similar loans and purposes in the same general vicinity as
       the Property and the proposed transaction is in the best interests of the
       Partnership;

               (e) Execute any and all agreements, contracts, documents,
       certifications and instruments necessary or convenient in connection with
       the acquisition, financing, management, leasing, maintenance, operation,
       sale or other disposition of the Property;

              (f) Borrow money and issue evidences of indebtedness necessary,
      convenient or incidental to the accomplishment of the purposes of the
      Partnership, and secure the same by mortgage, pledge or other lien on any
      Property or other assets of the Partnership;

              (g) Execute, in furtherance of any or all of the purposes of the
      Partnership, any deed, option, lease, mortgage, mortgage note, bill of
      sale, contract or other instrument purporting to convey, exchange or
      encumber the real or personal property of the Partnership;

              (h) Deal with, or otherwise engage in business with, or provide
      services to and receive compensation therefore from, any Person who has
      provided or may in the future provide services, lend money, sell property
      to or purchase property from the General Partner or any Affiliate of the
      General Partner. No such dealing, engaging in business or providing of
      services may involve any direct or indirect payment by the Partnership of
      any rebate or any reciprocal arrangement which would have the effect of
      circumventing any restriction set forth herein upon dealings with the
      General Partner or any Affiliate of the General Partner;

        (i) Employ agents, employees, managers, brokers, accountants, attorneys,
consultants and other Persons necessary or appropriate to accomplish the
purposes of the Partnership, and pay fees, expenses, salaries, wages and other
compensation to such Persons;

        (j) Pay, extend, renew, modify, adjust, submit to arbitration,
prosecute, defend, or compromise, upon such terms as it may determine and upon
such evidence as it may deem sufficient, any debt, obligation, suit, liability,
cause of action, or claim to which an Affiliate of the General Partner is not a
party or is not otherwise involved (unless the Limited Partner's consent thereto
is obtained as contemplated in Paragraph 6.4.3 below), including taxes, either
in favor of or against the Partnership;

          (k) Determine the appropriate  accounting method or methods to be used
by the Partnership;

        (1) Cause the Partnership to make or revoke any of the elections
referred to in Sections 48, 168, 195, 709, 732, 754 or 1017 of the Code, or any
similar provisions enacted in lieu thereof;

         (m)  Establish  and  maintain  Reserves  for such  purposes and in such
      amounts as it deems appropriate from time to time;

        (n) Pay full recourse debts or obligations prior to nonrecourse debts or
obligations so long as such payment is consistent with the General Partner's
fiduciary duties to the Limited Partners;

        (o) Amend this Agreement to reflect any change in address, reduction of
Capital Accounts upon the return of capital to partners, or other matters
permitted under the terms of this Agreement;

        (p) Procure and maintain such insurance as the General Partner deems
necessary or appropriate for the business in which the Partnership is engaged,
which may include without limitation fire and extended coverage, worker's
compensation, public liability, and General Partners' errors and omissions
insurance; and

        (q) Engage in any kind of activity and perform and carry out contracts
of any kind necessary in connection with or incidental to the accomplishment of
the purposes of the Partnership, as may be lawfully carried on or performed by a
partnership under the laws of the State of California and consistent with the
General Partner's fiduciary duties.

        6.3 Restrictions on Authority of General Partner. Without the consent of
the Limited Partner, which consent shall not be unreasonably withheld and which
shall be given or denied within five (5) business days after receipt of the
General Partner's request therefore, and, if not so given or denied within such
period, shall be deemed given, the General Partner shall not have the authority
to:

               (a) Do any act in contravention of this Agreement;

               (b) Do any act which  would  make it  impossible  to carry on the
            ordinary business of the Partnership;

               (c) Confess a judgment against the Partnership;

               (d)  Possess  Partnership  property,  or  assign  its  rights  in
            specific Partnership property, for other than a Partnership purpose;

               (e)  Knowingly  perform  any act that would  subject  any Limited
            Partner to liability as a General Partner in any jurisdiction;

               (f)  Sell  or  otherwise  dispose  of any of  the  assets  of the
            Partnership;

               (g) Finance, refinance,  mortgage, assign, or otherwise encumber,
            modify, or extend any mortgage affecting any of the Property;

               (h) Elect to dissolve the Partnership.

        6.4 Authority of the Partners to Deal with the Partnership.

               6.4.1 Permitted Fees and Agreements. Without limitation upon the
other powers set forth herein, and in addition to the duties or obligations of
the General Partner as General Partner of the Partnership (and, in the case of
the agreements described in subparagraphs (a), (b) and (c) below, subject to
obtaining the consent of the Limited Partner thereto prior to the execution
thereof and to any material amendment thereof), the General Partner is expressly
authorized for, in the name of, and on behalf of the Partnership to:

               (a) Receive a Property Development Fee of Two Hundred Forty
       Thousand and 00/100ths Dollars ($240,000.00) as consideration for
       property development services with respect to the Real Property in
       accordance with the separate Development Management Services Agreement in
       the form attached hereto as Exhibit "E" subject to the conditions of this
       Agreement. The Property Development Fee shall be payable in monthly
       installments of Ten Thousand and 00/100ths Dollars ($10,000.00)
       commencing upon the execution of this Agreement and continuing thereafter
       until paid to One Hundred Twenty Thousand and 00/100ths Dollars
       ($120,000.00), which is the agreed-upon Property Development Fee for
       Phase I (approximately ten [10] acres). The Partners anticipate that the
       Partnership's cash flow may from time to time be insufficient to allow
       such installments to be paid as scheduled, and to the extent that such
       installments are not paid to the General Partner, they shall accrue as an
       obligation of the Partnership and be paid once Partnership funds are
       available. The General Partner will be paid an additional One Hundred
       Twenty Thousand and 00/100ths Dollars ($120,000) for development services
       of Phase II, commencing at the beginning of Phase II. Beginning of Phase
       II is defined as at least 30,000 square feet of leases executed -or a
       combination of leases executed and signed purchase and sale agreements
       totaling at least 30,000 square feet. The fee would be paid under the
       same structure as Phase I.

               (b) Enter into a separate Construction Services Agreement
       contract in the form attached as Exhibit "F," with HBD CONSTRUCTION,
       INC., an affiliate of the General Partner, as the general contractor and
       pay contractor's fees at the rate of six percent (6%) of all hard [direct
       and indirect] construction costs [and expenses], and also pay customary
       general condition expenses specific to each job for on-site supervision
       of construction work, all as provided thereunder, and subject further to
       the Limited Partner's right to consent, which consent shall not be
       unreasonably delayed or withheld, to any and all change orders in such
       contract in excess of Twenty Thousand and 00/100ths Dollars ($20,000.00)
       individually and One Hundred Thousand and 00/100ths Dollars ($100,000.00)
       in the aggregate, and subject finally to the terms of this Agreement;

               (c) Enter into a separate Property Management Agreement in the
       form attached hereto as Exhibit "G" with LGD Asset Management as the
       initial property manager and pay Property Management Fees as provided
       therein. Such Property Management fees shall be a specified monthly fee
       or a percentage of the charges billed to anchors, pads, and shops, with
       respect to the Property, plus a sum to cover basic management costs
       directly attributable to the shopping center;

               (d) Reimbursement to the General Partner of administrative
       expenses incurred by the General Partner in connection with its
       management of the Partnership and its business affairs pursuant to the
       provisions of Paragraph 6.5.2; and

               (e) Borrow money from the General Partner or any Limited Partner
       or any Affiliate under the terms and conditions of Paragraphs 6.4.3(b)
       and 6.4.4.

              6.4.2 Marketing and Leasing Services. The General Partner shall be
responsible for leasing the project to anchor tenants, pad tenants, and
satellite shop tenants. Atwater Realty is an affiliate company of the General
Partner which has a California brokers license and shall be appointed the
Exclusive Listing Agent for the Partnership. The brokerage agreement shall
provide for the payment of brokerage commissions according to the brokerage
commission schedule set forth in the Marketing Service Agreement attached as
Exhibit "H." No brokerage commission shall be paid by the Partnership, and the
General Partner shall not be entitled to reimbursement from the Partnership nor
any Limited Partner, on any transaction described in paragraph 6.4.1(b) hereof.
The Parties will execute a mutually-agreeable Marketing Services Agreement. The
Marketing Services Agreement shall also give the General Partner the exclusive
right to sell the project after its completion, when and if the Partnership
determines that a sale is in its best interest. The fee is specified in Exhibit
"H," the Marketing Services Agreement.

      6.4.3  Prohibitions.   Other  than  as  specifically  authorized  in  this
   Paragraph  6.4,  without  the  consent of the  Limited  Partner,  the General
   Partner shall not enter into any  agreements,  contracts or  arrangements  on
   behalf of the Partnership with itself or any of its Affiliates, including the
   following:

               (a) A loan of money to the General  Partner or any Affiliate of a
            General Partner.

      6.4.4  Limitations.  Any agreement,  contract or  arrangement  between the
   Partnership  and the General  Partner or any or its  Affiliates  permitted by
   this Paragraph 6.4 shall be subject to the following conditions:

               (a) Any such agreement, contract or arrangement shall be embodied
       in a written contract which precisely describes the subject matter
       thereof and all compensation to be paid therefore. Any fees payable to
       the General Partner or any of its Affiliates shall be competitive in
       price and terms with those of non-Affiliated Persons rendering comparable
       services in the same general locality as the Real Property and which
       could reasonably be made available to the Partnership;

               (b) No rebates or "give-ups" may be received by the General
       Partner or any such Affiliate, nor may the General Partner or any such
       Affiliate participate in any reciprocal business arrangement which would
       have the effect of circumventing any of the provisions of this Agreement;
       and

               (c) Such agreements, contracts or arrangements shall be fully and
       properly disclosed to all Partners, if not previously disclosed, in one
       of the reports provided for in Article 10.

        6.5 Payment of Certain Fees and Expenses.

               6.5.1 Reimbursement of Limited Partner Expenses. The Limited
Partner shall, upon submission to the General Partner of all evidence reasonably
necessary to document the expenditure, be reimbursed for all out-of-pocket costs
reasonably incurred by the Limited Partner in relocating any signs existing on
the Real Property as of the date hereof which are required to be relocated on
account of development of Real Property by the Partnership. In addition, the
Partners hereby acknowledge that any lighting fixtures located on the Real
Property as of the date hereof which are required to be removed on account of
such development shall become the personal property of the Limited Partner and
shall be delivered to the Limited Partner immediately after the removal thereof.

               6.5.2 Reimbursement of Pre-Development and Partnership
Administration Expenses. To the extent practicable, Partnership expenses shall
be billed directly to and paid by the Partnership. Reimbursements to the General
Partner or any of its Affiliates by the Partnership shall be allowed, however,
for (a) the Actual costs paid or incurred prior to the date of this Agreement as
specified in Exhibit "I" attached hereto, and (b) the Actual Cost of Operating
Cash Expenses of the Partnership, including without limitation the Actual Cost
of all expenses, fees and other charges, including without limitation goods,
materials, salary and overhead expenses (only in connection with time spent on
Partnership accounting) and administrative services related to (i) Partnership
operations, (ii) Partnership accounting, including without limitation financial,
accounting and other services such as preparation of financial statements and
tax returns for the Partnership, bookkeeping, and preparation of loan
applications, (iii) communications with Partners, (iv) legal services for both
the General Partner and the Limited Partner, (v) tax services, (vi) computer
services, (vii) risk management, (viii) Partnership organization expenses, and
(ix) such other related operational and administrative expenses as are necessary
for the prudent organization and operation of the Partnership.

               6.5.3 Definition of "Actual Cost". As used in Paragraph 6.5.2(b),
the "Actual Cost" of goods and materials means the actual cost or expense to the
General Partner or any of its Affiliates of goods and materials used for or by
the Partnership obtained from entities not affiliated with the General Partner,
and "Actual Cost" of administrative services means the prorata cost of personnel
(as if such persons were employees of the Partnership) providing administrative
services to the Partnership. The amount for such services to be reimbursed to
the General Partner or any Affiliate thereof shall be the lesser of the General
Partner's or Affiliate's Actual Cost, or the amount the Partnership would be
required to pay to independent parties for comparable administrative services in
the same general vicinity as the Real Property. Notwithstanding the foregoing,
the Partnership shall not reimburse the General Partner or any Affiliate for:

               (a)  Services  for which the General  Partner or an  Affiliate is
            entitled  to  compensation  by  way of a  separate  fee  under  this
            Agreement or any exhibit hereto;

               (b) Any rent,  depreciation,  utilities  or other  administrative
            items generally  constituting  the General  Partner's or Affiliate's
            overhead; or

               (c) Any of the salaries or fringe benefits  incurred or allocated
            to any  Controlling  Person of any General  Partner or any Affiliate
            thereof.

                6.5.4 Definition of "Controlling Person". The term "Controlling
Person" shall mean any Person, whatever his or her title, who performs executive
or senior-management functions for the General Partner or its Affiliates similar
to those of directors, executive management and senior management, or any Person
who either holds a five percent (5%) or more equity interest in the General
Partner or its Affiliate, or has the power to direct or cause the direction of
the General Partner or its Affiliates, whether through the ownership of voting
securities, by contract or otherwise, or, in the absence of a specific role or
title, any Person having the power to direct or cause the direction of the
management level employees and policies of the General Partner or its
Affiliates. It is not intended that every Person who carries a title such as
vice president, senior vice president, secretary or treasurer be included in the
definition of Controlling Person.

        6.6 Duties and Obligations of General Partner.

                6.6.1 In General. The General Partner shall take all actions
which may be necessary or appropriate (a) for the continuation of the
Partnership's existence as a Limited Partnership under the laws of the State of
California (and under the laws of each other jurisdiction in which such
existence is necessary to protect the limited liability of the Limited Partners
or to enable the Partnership to conduct the business in which it is engaged),
and (b) for the acquisition, development, maintenance, preservation and
operation of the Property in accordance with the provisions of this Agreement
and applicable laws and regulations. the ultimate responsibility for property
development, construction, leasing, and management services as well as the
day-to-day services in connection with such responsibilities are obligations of
the General Partner.

               6.6.2 Development of Partnership Property. The General Partner
shall be responsible for the construction of the shopping center including all
on-site and off-site improvements, buildings, and tenant improvements. The
General Partner will immediately assume the development responsibilities as will
be defined in the Development Services Agreement between the Partnership and the
General Partner. It shall be the responsibility of the General Partner to manage
the coordination and supervision of the design, development, construction
permitting, financing, marketing, leasing and operations of the contemplated
shopping center. The responsibility will include the production of financial
statements and operational reports. This work shall be more precisely described
in separate written agreements between the Partnership and affiliated operating
entities of the General Partner. Upon completion of the shopping center, the
General Partner shall be responsible for managing the shopping center.

               6.6.3 Time Devoted to Partnership. The General Partner shall
devote to the Partnership only such time as may be reasonably necessary for the
proper performance of its duties hereunder, but the officers and directors of
the General Partner shall not be required to devote their full time to the
performance of such duties.

               6.6.4 Federal Net Worth Requirements. To the extent applicable,
the General Partner shall use its best efforts to maintain its net worth at all
times at a level sufficient to meet all requirements of the Code and currently
applicable regulations, rulings, and revenue procedures of the Internal Revenue
Service, and to meet any future requirements set by the United States Congress,
the Internal Revenue Service, any agency of the federal government or the
courts, in order to assure that the Partnership will be classified for federal
income tax purposes as a partnership and not as an association taxable as a
corporation.

               6.6.5 Doing Business Requirements. The General Partner shall take
such action as may be reasonably necessary or appropriate in order to form or
qualify the Partnership under the laws of any jurisdiction in which the
Partnership does business or in which such formation or qualification is
reasonably necessary in order to protect the limited liability of the Limited
Partners or in order to continue in effect such formation or qualification. The
General Partner shall file or cause to be filed for recordation in the office of
the appropriate authorities of the State of California, or any of its political
subdivisions, and in each other jurisdiction in which the Partnership is formed
or qualified, such certificates (including Limited Partnership and fictitious
name certificates) and other documents as are required by the statutes rules or
regulations of such jurisdictions.

               6.6.6 Non-Recourse Permanent Financing. To the maximum extent
practicable and except for the Limited Partner's existing financing on the
Property, the General Partner shall at all times conduct its affairs and the
affairs of the Partnership and its Affiliates in such a manner that neither the
Partnership nor any Partner nor any Affiliate of any Partner will have any
personal liability under any mortgage on any Property, unless in the opinion of
the General Partner it would be in the best interests of the Limited Partner,
the Partnership and/or the General Partner to incur such personal liability.
Notwithstanding the foregoing, the Partnership, the General Partner and/or any
Affiliate of the General Partner may incur personal liability under any mortgage
securing a construction loan or loans for the purpose of constructing
improvements on the Real Property.

               6.6.7 Tax Returns. The General Partner shall prepare or cause to
be prepared and shall file on or before the due date (or any extension thereof)
any federal, state, and local tax returns required to be filed by the
Partnership. The General Partner shall cause the Partnership to pay any taxes
payable by the Partnership.

               6.6.8 Insurance. The General Partner shall obtain and keep in
force, or cause to be obtained and kept in force, if necessary or appropriate,
during the term hereof, fire and extended coverage, worker's compensation and
public liability insurance in favor of the Partnership, with such insurers and
in such amounts as the General Partner shall deem advisable, but in amounts not
less than (and with deductible amounts not greater than) those customarily
maintained with respect to properties comparable to the Property.

        6.7 Other Business Activities and Competition. Any Partner may engage
independently or with others in other business ventures of every nature and
description, including without limitation the ownership of other properties and
the making or management of other investments. Nothing in this Agreement shall
be deemed to prohibit the General Partner or any Affiliate of the General
Partner from dealing, or otherwise engaging in business with, Persons
transacting business with the Partnership, or from providing services related to
the purchase, sale, financing, management, development, or operation of real or
personal property and receiving compensation therefor, not involving any rebate
or reciprocal arrangement which would have the effect of circumventing any
restriction set forth herein upon dealings with the General Partner or any
Affiliate of the General Partner. Neither the Partnership nor any Partner shall
have any right by virtue of this Agreement or the Partnership relationship
created hereby in or to such other ventures or activities or to the income or
proceeds derived therefrom, and the pursuit of such ventures, even if
competitive with the business of the Partnership, shall not be deemed wrongful
or improper.

        6.8 Limitation on Liability of General Partner: Indemnification. The
General Partner shall not be liable, responsible, or accountable in damages or
otherwise to any Limited Partner for any act or omission performed or omitted by
it in good faith pursuant to the authority granted to it by this Agreement in a
manner reasonably believed by it to be within the scope of the authority granted
to it by this Agreement and not opposed to the best interests of the Partnership
or the Limited Partner; provided, however, that the General Partner shall not be
relieved of liability with respect to any claim, issue, or matter as to which it
or any Affiliate shall have been adjudged to be liable for gross negligence,
fraud, or bad faith in the performance of its fiduciary duty to the Limited
Partners. Except in the case of any such judgment of liability, the Partnership
shall indemnify the General Partner against any loss or damage incurred by it in
connection with any such act or omission performed by it in good faith pursuant
to the authority granted to it in this Agreement in a manner reasonably believed
by it to be within the scope of such authority and not opposed to the best
interests of the Partnership or the Limited Partner, and against expenses
(including attorneys' fees) actually and reasonably incurred by it in connection
with the defense or settlement of any threatened, pending or completed action or
suit by any Person in connection with any such act or omission. The satisfaction
of any obligation to indemnify and hold the General Partner harmless shall be
from and limited to Partnership assets, and no Partner shall have any personal
liability on account thereof.

                                    ARTICLE 7

                         TRANSFERS OF PARTNERS' INTEREST
                 ADMISSION OF SUBSTITUTED OR ADDITIONAL PARTNERS

        7.1 Restrictions on Transfer. Each Partner shall be able to transfer its
interest in Partnership profits and losses on the terms and subject to the
conditions specifically authorized herein. Otherwise, no Partner may sell,
transfer, pledge, hypothecate, encumber, or otherwise assign or dispose of
("Transfer") all or any portion of its Interest in the Partnership without the
prior written consent of the other Partner, which consent may be withheld for
any reason, including but not limited to the reasons or failure of any
conditions set forth in Paragraph 7.3.2. Any attempted Transfer in contravention
of the provisions of this Article 7 shall be void and without any force or
effect, and shall constitute a material breach of this Agreement. In addition to
all other rights and remedies at law and in equity, in the event of any such
attempted Transfer, the other Partner shall be entitled to an order or decree
restraining and enjoining such action, and the violating Partner shall not plead
in defense thereto that there would be an adequate remedy at law, it being
expressly hereby acknowledged and agreed that damages at law would be an
inadequate remedy for any such breach. Without limiting the generality of the
foregoing restriction, no Partner shall make any commitment to Transfer any
portion of its Interest to any Person not then a Partner or an Affiliate of a
Partner at any time (i) prior to Ralph's completing the construction of its
building on the Property, or (ii) after the delivery of a Buy-Out Notice (as
defined in Paragraph 7.5.1) pursuant to which buy-out procedures under that
Paragraph 7.5 are then pending. Notwithstanding the foregoing restrictions or
anything to the contrary in this Agreement, the Limited Partner may, without the
prior written consent of the General Partner, assign its partnership interest in
distribution of proceeds (and not its Interest) in the Partnership in accordance
with the provisions of California Corporations Code Section 15672; and the
General Partner may transfer no more than fifty percent (50%) of its Interest to
an Affiliate or any non-Affiliate without prior consent of the Limited Partner.

        It is understood and agreed that it is the desire of RCSA Holdings,
Inc., General Partner of Old Vail Partners, to be bought out of its interest at
the earliest time possible. It is estimated and targeted that this would occur
between 12 and 18 months after the start of each phase of the development.
Further, all parties will give their best effort to accomplish this buy-out
within the time frames estimated, or as soon thereafter as possible. RCSA
Holdings, Inc. would be agreeable, subject to approval of terms, conditions and
price, to being bought out of the entire development at one time rather than
over the phased development.

        7.2 Right of First Refusal.

                (a) Provided that the Property has been improved with a building
for use by Ralph's, if a Partner (the "Selling Partner") receives a bona fide
arms-length, irrevocable written offer satisfactory to the Selling Partner from
a Person not then a Partner or Affiliate offering to purchase all of the Selling
Partner's Interest, the Selling Partner shall, prior to the acceptance of that
offer, give written notice (the "First Refusal Notice") to the other Partner
(the "Receiving Partner") setting forth the identity of the proposed transferee,
the amount and terms of the offer, and the Selling Partner's willingness to
accept such offer, together with true and correct copies of the offer and all
other documents pertaining thereto. The Selling Partner shall disclose in the
First Refusal Notice to its best knowledge all liabilities and potential
liabilities of the Partnership of which the Selling Partner has actual
knowledge. Within five (5) days after receipt of the First Refusal Notice, the
Receiving Partner shall disclose in writing to the Selling Partner any
additional liabilities or potential liabilities of the Partnership of which the
Receiving Partner has actual knowledge which are not set forth in the First
Refusal Notice. Each Partner shall represent in such written disclosure that the
disclosures therein are true, correct and complete. Such representations shall
survive both the closing described in this Paragraph 7.2 and the termination or
dissolution of the Partnership. The Receiving Partner may, by written notice
given within fifteen (15) business days after receipt of the First Refusal
Notice, exercise its right to purchase the Selling Partner's Interest on the
same terms contained in the First Refusal Notice; provided, however, that the
closing of such sale (i) shall occur no earlier than ninety (90) days after the
Receiving Partner's exercise of the right to purchase or such later date as is
specified in the First Refusal Notice, and (ii) shall take place at the offices
of the Receiving Partner's legal counsel. If, at or prior to the closing, either
Partner discovers a liability or potential liability (other than third party
tort claims) which is not disclosed or required to be disclosed pursuant to this
Paragraph 7.2 ("Undisclosed Liability"), then (A) if the Receiving Partner so
elects, the Partners shall proceed with the closing of the purchase and sale at
the price established in the First Refusal Notice, or (B) if the Receiving
Partner does not elect to proceed under (A) above, upon agreement of the
Partners the closing of the purchase and sale shall proceed at a purchase price
adjusted to reflect the Undisclosed Liability. If the Receiving Partner does not
elect to purchase the Selling Partner's Interest, then, subject to any consent
required by Paragraph 7.1 or 7.3.2, such Interest may be sold to the outside
third party on terms no more favorable to the transferee than previously offered
to the Receiving Partner as set out in the First Refusal Notice. After any such
sale, or after ninety (90) days from the expiration of said fifteen (15)
business day exercise period without the Receiving Partner having exercised its
rights to purchase under this Paragraph 7.2, the Selling Partner's Interest
shall again become subject to the foregoing right of first refusal. This right
of first refusal is in addition to, and is not a limitation upon, any other
right to consent or withhold consent to a proposed Transfer pursuant to this
Agreement, and shall remain in full force and effect with respect to successive
assignees of Interests hereunder to the same extent and in the same manner as
such right was applicable to any predecessor Partner.

               (b) At any closing held pursuant to subparagraph 7.2(a) above
       where the Selling Partner's interest is transferred to the Receiving
       Partner, the Selling Partner shall deliver to the Receiving Partner a
       legally enforceable assignment of Partnership Interest in form approved
       by the Receiving Partner prior to the closing, including provisions by
       which (i) the Selling Partner agrees to indemnify and hold the Receiving
       Partner harmless from and against any and all liability or a loss of
       value arising or accruing, with respect to the Partnership Interest sold,
       as a result of any liability or potential liability of the Partnership
       which was materially understated or should have been but was not
       disclosed by the Selling Partner in accordance with subparagraph 7.2(a)
       above; (ii) the Receiving Partner agrees to indemnify the Selling Partner
       for any and all liability or loss of value arising or accruing, with
       resect to the Partnership Interest sold, as a result of liabilities or
       potential liabilities which were materially overstated by the Receiving
       Partner in its disclosure pursuant to subparagraph 7.2(a) above; and
       (iii) the General Partner agrees to indemnify and hold the Limited
       Partner harmless from and against any and all liability or loss of value
       arising or accruing as a result of actions taken by the General Partner
       without the consent of the Limited Partner after the date of delivery of
       the First Refusal Notice where such consent was required to be otherwise
       obtained pursuant to this Agreement. Except for this indemnity, from and
       after the closing, the Selling Partner shall have no further interest in
       the assets or Profits of the Partnership.

        7.3 Assignees and Substituted Partners.

               7.3.1 Transfer to Affiliates. Without the consent of any other
Partner, and notwithstanding the provisions of Paragraph 7.1, a General Partner
or Limited Partner after thirty (30) days' prior written notice to the
Partnership and each other Partner, may Transfer all (but not a portion) of its
Interest in the Partnership to an Affiliate. The General Partner is hereby
permitted to assign its General Partner interest to a partnership which Chris
Smith and C. Samuel Marasco are the managing General Partners.

            7.3.2 Transfer Requirements.  The Partnership need not recognize for
         any  purpose any  Transfer  of all or any portion of the  Interest of a
         Partner, and the assignee shall not become an Additional or Substituted
         Partner, unless:

               (a) There shall have been filed with the Partnership a duly
       executed counterpart of the instrument making such Transfer, together
       with all appropriate consents thereto from the General Partner or
       otherwise required under this Agreement or other agreements to which the
       Partnership is a party or by which any Partnership Property is bound;

               (b) Such  Transfer  would  not  constitute  a breach  or  default
            thereunder or under any agreement  between the  Partnership  and any
            third party;

               (c) Such Transfer, when considered with all other Transfers of
       Interests in the Partnership within the previous 12 months, would not
       result in the Partnership's being considered to have been terminated
       within the meaning of Section 708 of the Code; unless the transferring
       Partner indemnifies the other Partner to its reasonable satisfaction from
       and against all incremental tax liabilities resulting from such Transfer;

               (d) Such  Transfer  shall not violate any  applicable  federal or
            state   securities   laws   (including   any  investor   suitability
            standards);

               (e) The transferee shall assume and agree to be bound by and to
       perform all applicable obligations under this Agreement; provided, that
       no such assignment and assumption shall relieve any transferring Partner
       of its obligations or liabilities under such agreements and instruments
       existing prior to the Transfer except with written consent of the other
       Partner not a party to the Transfer;

               (f) The parties to any such Transfer shall have executed and
       acknowledged an amendment to this Agreement and other applicable
       documents as the Partnership may deem necessary or appropriate to
       recognize such Transfer and substitution and to set forth the name,
       address, Capital Contribution, and Interest of the Partner to be
       admitted; and

               (g) The transferring Partner or any additional Partner shall have
        paid a transfer fee sufficient to cover all reasonable legal or
        accounting fees, filing costs, and other expenses incurred by the
        Partnership or any other Partner in connection with documenting any such
        Transfer or accommodating the transferring Partner or additional
        Partner's extraordinary requests in connection with such Transfer.

               7.3.3 Incapacity of Limited Partner. Subject to all provisions
contained in Article 9 below, in the event of any Incapacity of a Limited
Partner, then its executor, administrator, trustee, committee, guardian,
conservator, or receiver, as the case may be, shall have all rights of a Limited
Partner for the purpose of settling or managing its estate, and such power as
the decedent, bankrupt, or incompetent possessed to assign or otherwise deal
with all or any part of its Interest.

               7.3.4 Status of Assignor. Any Limited Partner who assigns all of
its Interest in the Partnership shall cease to be a Limited Partner of the
Partnership, except that unless and until a Substituted Limited Partner is
admitted in its stead, such assigning Limited Partner shall retain the statutory
rights and obligations of an assignor of a Limited Partnership interest under
the Act.

               7.3.5 Status of Assignee. Subject to all provisions contained in
this Agreement, the rights of an assignee of an Interest who does not become a
Substituted Limited Partner shall be limited to the receipt of its share of
Distributable Cash, Sale or Financing Proceeds, Taxable Income, and Tax Loss as
determined under this Agreement. Such assignee who desires to make a further
Transfer shall be subject to all of the provisions of this Article 7 to the same
extent and in the same manner as any predecessor Limited Partner desiring to
make a Transfer of its Interest.

        7.4 Joint Ownership of Interests. Subject to the other provisions of
this Agreement, an Interest may be acquired by two or more individuals, who
shall, at the time they acquire such Interest, indicate to the Partnership
whether the Interest is being held by them as joint tenants with the right of
survivorship or as tenants-in-common. In the absence of any such designation,
they shall be presumed to hold such Interest as tenants-in-common. Any action or
vote with respect to a jointly held Interest shall require the action or vote of
all of the owners of such Interest. Upon the death of the owner of an Interest
held in joint tenancy with the right of survivorship, the Interest shall become
owned solely by the survivor or jointly by the survivors as a Limited Partner
and not as an assignee. The Partnership need not recognize the death of one of
the owners of a jointly-held Interest until it shall have received Notice of
such death. Upon written notice to the General Partner from both owners of a
jointly-held Interest and the submission of such documentation as may be
required, the General Partner shall cause the Interest to be divided into two or
more Interests, which shall thereafter be owned separately by each of the former
owners.

        7.5 Reciprocal Buy-Sell Option.

               7.5.1 Buy-Sell Offer. Provided that Phase I and Phase II are
substantially (75%) improved with buildings, either Partner (the "Offering
Partner") at any time, so long as such Partner is not in default on any
obligation to be performed hereunder, may implement the buy-sell procedures set
forth in this Paragraph 7.5 by such Partner giving a written notice (the
"Initial Notice") to the other Partner (the "Receiving Partner") of the Offering
Partner's election to implement these buy-sell procedures. The Offering Partner
shall give a copy of the Initial Notice to the Partnership's accountants and
shall include therein the Offering Partner's opinion of the gross value of the
Partnership Property ("Stated Value"), with a request that such accountants make
a written determination with twenty (20) days of the total amount that would be
distributed to the offering Partner (the "Offering Partner Value") and the total
amount that would be distributed to the Receiving Partner (the "Receiving
Partner Value"), both in accordance with this Agreement, if the Property were
sold for the Stated Value as of the date of the Initial Notice to the
accountants and all of the liabilities of the Property and the Partnership were
paid prior to distribution of any Distributable Cash. Each respective Partner
shall disclose in writing to the accountants and the other Partner, to its best
knowledge, all liabilities and potential liabilities of the Partnership of which
that Partner has actual knowledge (the "Liability Notice"), either (i) with the
Initial Notice if that Partner is the offering Partner, or (ii) within five (5)
days after receipt of the Initial Notice if that Partner is the Receiving
Partner, as the case may be.

        Each Partner shall represent that such disclosures therein are true,
correct and complete. Such representations shall survive both the closing as
described in Paragraph 7.5.3 and any termination or dissolution of the
Partnership. Within fifteen (15) days following receipt by the Offering Partner
of the accountants' determination, the Offering Partner shall deliver to the
Receiving Partner (the date of such delivery being the "Effective Date of
Buy-Out Notice") a written irrevocable offer ("Buy-Out Notice") to do either of
the following, at the Receiving Partner's election: (i) purchase the entire
Interest of the Receiving Partner at the Receiving Partner Value, or (ii) sell
the entire Interest of the Offering Partner to the Receiving Partner at the
Offering Partner Value. Such Buy-Out Notice shall set forth the Stated Value and
shall contain the accountants' determination of the offering Partner Value and
the Receiving Partner Value.

        7.5.2 Buy/Sell Acceptance. From the date the Buy-Out Notice is given,
the Receiving Partner shall have thirty (30) days in which to notify the
Offering Partner in writing of the Receiving Partner's election to either
purchase the Offering Partner's Interest at the offering Partner Value, or to
sell its own Partnership Interest at the Receiving Partner Value. Failure of the
Receiving Partner to give such a Notice of acceptance to the Offering Partner
within such thirty (30) day period shall be deemed to be an acceptance of the
Offering Partner's offer to purchase the Receiving Partner's Interest. Following
the date of delivery of the Buy-Out Notice, the General Partner shall not enter
into any contracts or other agreements or take or fail to take any other action
which could materially and adversely affect the value of the Partnership's
assets or materially increase or decrease the liabilities of the Partnership
without the express written consent of the Limited Partner (unless the General
Partner becomes the buying Partner under this Article). If the Receiving Partner
determines to purchase the Offering Partner's Interest, the Receiving Partner
shall have up to but not more than sixty (60) days from its receipt of the
Buy-Out Notice (including any escrow period) within which Receiving Partner must
purchase the Interest of the Offering Partner. If the Receiving Partner
determines to sell its Partnership Interest, the Offering Partner may designate
a closing of such sale at any time up to sixty (60) days after delivery of the
Buy-Out Notice, at which time the offering Partner shall purchase the Receiving
Partner's Interest at the Receiving Partner Value. If at or prior to the
closing, either Partner discovers a liability or potential liability (other than
third party tort claims) which was not disclosed or required to be disclosed
pursuant to Paragraph 7.5.1 above ("Undisclosed Liability"), then

               (i) if the buying Partner so elects, the Partners shall proceed
       with the closing of the purchase and sale at the price established in the
       Buy-Out Notice;

               (ii) if the buying Partner does not elect to proceed under (i)
       above, upon agreement of the Partners, the closing of the purchase and
       sale shall proceed at a purchase price adjusted to reflect the
       Undisclosed Liability; or

               (iii) all actions previously taken and notices previously given
       pursuant to this Article shall be void and the buy-sell options set forth
       herein may only be exercised by either Partner again implementing the
       buy-sell procedures set forth in Paragraph 7.5.1 above.

         7.5.3  Closing  Procedures.  The purchase and sale shall be for cash at
      the closing, to be held at the offices of the Partnership or the attorneys
      for the purchasing Partner or at another mutually  acceptable place. Costs
      of the transaction,

including recording fees, escrow and title costs, if any, and other fees (but
not attorneys' fees for the parties), shall be divided equally between the
Partners. At the closing, the selling Partner shall transfer to the buying
Partner the entire Partnership Interest of the selling Partner, free and clear
of all liens, security interests, and other competing claims (the "Encumbrances"
which may then encumber the Interest being transferred and which are not
approved by the buying Partner. The selling Partner shall indemnify and hold the
buying Partner harmless from and against any such encumbrances against the
Interest being sold. Subject to Paragraph 7.5.4 below, from and after the
closing, the selling Partner shall have no further interest in the assets or
profits of the Partnership and shall not be responsible for any of its losses
(except uninsured third party tort claims arising out of incidents which
occurred prior to the closing), and all obligations of the Partnership to the
selling Partner (including but not limited to all capital accounts, loans,
advances and obligations of the selling Partner under any project financing, and
all obligations of the selling Partner to the buying Partner) shall be deemed
satisfied and discharged in full. The foregoing obligation to remove
Encumbrances against a Partnership Interest shall not extend to Encumbrances
against any Property owned by the Partnership, except that the Partners shall
cooperate in seeking to obtain a release of the selling Partner by all project
lenders.

               7.5.4 Indemnity Regarding Undisclosed Liabilities and
Indebtedness. At the closing held pursuant to Paragraph 7.5.3 above, the selling
Partner shall deliver to the buying Partner a legally enforceable assignment of
Partnership Interest in form approved by the buying Partner prior to the
closing, including provisions by which (i) the selling Partner agrees to
indemnify and hold the buying Partner harmless from and against any and all
liability of loss of value arising or accruing, with respect to the Partnership
Interest sold, as a result of any liability or potential liability of the
Partnership which was materially understated or should have been but was not
disclosed by the selling Partner in accordance with this Paragraph 7.5; (ii) the
buying Partner agrees to indemnify the selling Partner for any and all liability
or loss of value arising or accruing, with respect to the Partnership Interest
sold, as a result of liability or potential liabilities which were materially
overstated by the buying Partner in its disclosure pursuant to this Paragraph
7.5; and (iii) the General Partner agrees to indemnify and hold the Limited
Partner harmless from and against any and all liability or loss of value arising
or accruing as a result of actions taken by the General Partner, without the
consent of the Limited Partner, after the date of delivery of the Buy-Out Notice
where such consent was required to be obtained pursuant to that Paragraph 7.5.
Except for such indemnity, from and after the Closing, the selling Partner shall
have no further interest in the assets of profits of the Partnership.

       7.6 Distribution of Proceeds on Sale. In the event of a sale or other
Transfer (whether voluntary or involuntary) by the Partnership of all or part of
the Property (whether held in the name of the Partnership or any partner), the
proceeds therefrom shall be distributed in accordance with the order of priority
set forth in subparagraph 9.8.1(a) below, with the balance thereon being
distributed to the Partners within thirty (30) day after the closing of such
Sale.

       7.7 Section 754 Elections. In the event of a Transfer of all or any part
of the Interest of a Limited Partner, the General Partner, in its sole
discretion, may make an election to adjust the basis of the Partnership's assets
pursuant to Section 754 of the Code.

                                         ARTICLE 8

                             CHANGE IN GENERAL PARTNERS

       8.1 Admission of Successor or Additional General Partners.

               8.1.1 Succession. With such consent of the Limited Partner as may
be then required under Paragraph 7.1 or under the Act for the admission of a
General Partner, the General Partner may at any time designate one or more
Persons to be its successor or to be an additional General Partner, in each case
with such participation in the General Partner's Interest as it and such
successor(s) or additional General Partner(s) may determine; provided, that the
Interest of any other Partner shall not be affected thereby. Each such designee
shall become a successor or additional General Partner upon satisfying the
conditions of Paragraph 7.3 of this Agreement.

               8.1.2 Voluntary Withdrawal. Except in connection with a Transfer
to a successor or additional General Partner pursuant to Paragraph 8.1.1 of this
Agreement (other than an assignment to an Affiliate pursuant to Paragraph 7.1),
the General Partner shall have no right to retire or withdraw voluntarily from
the Partnership, or to Transfer its Interest, without the written consent of the
Limited Partner, except that it may cause to be admitted to the Partnership as
an additional General Partner or Partners, or substitute in its stead as the
General Partner, any entity which has, by merger, consolidation, or otherwise,
acquired substantially all of its assets or stock and continued its business;
provided, that the Interest of any other Partner shall not be affected thereby.
Each such successor or additional General Partner shall be admitted as such to
the Partnership upon satisfying the conditions of Paragraph 7.3.2 of this
Agreement.

        8.1.3 Replacement. Any voluntary withdrawal by the General Partner from
the Partnership, or any Transfer by the General Partner of its Interest, shall
be effective only upon the admission in accordance with Paragraph 8.1.1 or 8.1.2
of this Agreement of a successor or additional General Partner, as the case may
be.

       8.2 Incapacity of General Partner.

               8.2.1 Termination of Interest. Upon the Incapacity of a General
Partner, such Partner shall immediately cease to be a General Partner and its
Interest in the Partnership shall terminate; provided, however, that such
termination shall not affect any rights or liabilities of such General Partner
which accrued prior to such Incapacity (or accrued thereafter but were caused by
actions taken by the General Partner prior to such Incapacity), or the value, if
any, at the time of such Incapacity of the Interest of such General Partner.

               8.2.2 Continuation of Business. In the event of the retirement
(including the withdrawal of a General Partner in accordance with Paragraph 8.1
of this Agreement) or Incapacity of the General Partner, the business of the
Partnership shall be continued (a) by any remaining General Partner or Partners
if the retiring General Partner or the General Partner to which the Incapacity
relates is not then the sole General Partner, or (b) upon the vote of the
Limited Partner within sixty (60) days, after the date of such retirement or
Incapacity, to continue the business of the Partnership and to admit one or more
successor General Partners.

               8.2.3 Acts of Continuation. At the time of any Incapacity of a
General Partner or as soon thereafter as feasible, the remaining or newly
elected General Partner or Partners shall continue the business of the
Partnership and shall (a) give Notice to the Limited Partner of such event, and
(b) make such amendments to this Agreement and execute and file for recordation
such amendments and other documents as are necessary to reflect the termination
of the Interest and ceasing to function of the General Partner having such
Incapacity.

        8.3 Liability of a Withdrawn General Partner. Any General Partner who
voluntarily or involuntarily for any reason (including Incapacity) withdraws
from the Partnership or Transfers its Interest, shall be and remain liable for
all obligations and liabilities incurred by it or resulting from its actions as
a General Partner prior to the time that such withdrawal or transfer becomes
effective as provided in Paragraph 8.1 above, but it shall be free of any
obligation or liability as a General Partner incurred on account of the
activities of the Partnership from and after the time that such withdrawal or
Transfer becomes effective.

                                    ARTICLE 9
                             DEFAULT AND DISSOLUTION

         9.1 Events of Default.  The  occurrence of any of the  following  shall
      constitute an event of default ("Event of Default") hereunder:

            (a) Any Transfer or attempted Transfer by a Partner of its Interest,
         except as may be permitted under this Agreement;

            (b)  A  general  assignment  by  any  Partner  for  the  benefit  of
         creditors,  or the calling of a general meeting of all or substantially
         all of the creditors of that Partner;

            (c) Default in performance  of any other  agreement or obligation of
         any Partner herein contained if said default  continues for a period of
         thirty (30) days after Notice of such  default from the  non-defaulting
         Partner or the  Partnership,  except that an Event of Default shall not
         be deemed to have  occurred if any such  default is of a nature that it
         reasonably  requires  more than thirty (30) days to cure, is capable of
         being fully cured within a reasonable time, and the defaulting  Partner
         is diligently proceeding to cure the default.

       9.2 Election of Non-Defaulting Partner. Upon the occurrence of an Event
of Default, the non-defaulting Partner may give Notice to the Partnership and
the defaulting Partner within thirty (30) days after acquiring knowledge of such
Event that it elects to do either of the following:

            (a) Terminate and liquidate the Partnership as set forth below; or

            (b) Acquire the defaulting Partner's Interest as set forth below.

       9.3 Purchase of Interest Upon Default. Upon such election of a Partner to
acquire a defaulting Partner's Interest following an Event of Default, the
non-defaulting Partner may acquire the defaulting Partner's Interest at a price
determined pursuant to Paragraph 9.4.4 and 9.4.5 below.

       9.4 Appraisal and Buy-Out Procedures.

               9.4.1 First Appraiser. If the non-defaulting Partner elects to
purchase the defaulting Partner's Interest, it shall designate in its Notice of
election a Person to serve as its appraiser, duly qualified as provided in
Paragraph 9.4.3 below (the "First Appraiser"). The Partners may mutually agree
in writing to use only the First Appraiser or another appraiser mutually
appointed by them (a "Single Appraiser").

               9.4.2 Additional Appraisers. If within ten (10) days after the
service of the Notice of election and designation referred to above the Partners
have not mutually agreed on a Single Appraiser, the defaulting Partner may give
written Notice to the non-defaulting Partner designating a second Person as its
appraiser (the "Second Appraiser"). If the Second Appraiser is not so designated
within or by the time above specified, then the appointment of the Single
Appraiser shall be binding upon all parties. Either the Single Appraiser or the
First and Second Appraisers so designated or appointed shall, within thirty (30)
days after the Single Appraiser or the Second Appraiser is appointed, as the
case may be, determine the Appraised Value. If, as applicable, within 20 days
after the Second Appraiser is appointed, the First Appraiser and Second
Appraiser do not agree upon the Appraised Value, they shall themselves appoint a
third appraiser (the "Third Appraiser"). In the event that such Appraisers or
such Partners are unable to agree upon such an appointment within said 20-day
period, then either Partner, on behalf of both, may request such appointment by
a California State Superior Court Judge of competent jurisdiction in the
district in which the Property is located. In the event of the failure, refusal
or inability of any appraiser to act, a new appraiser shall be appointed in his
stead, which appointment shall be made in the same manner as hereinbefore
provided for the appointment of such appraiser. Each Partner will pay the fees
and expenses of the appraiser appointed by such Partner, or in whose stead, as
above provided, such appraiser was appointed. The fees and expenses of the Third
Appraiser, and any other expenses (including the expenses of the Single
Appraiser, if applicable) shall be borne equally by both parties.

               9.4.3 Appraiser Qualifications. Any appraiser designated to serve
in accordance with the provisions of this Agreement (i) shall be disinterested
and impartial; (ii) shall be a duly licensed MAI appraiser and a member in good
standing of the American Institute of Real Estate Appraisers (or any successors
association or body of comparable standing if such Institute is not then in
existence), qualified to appraise real estate and other assets of the type
covered by this Agreement; and (iii) shall have been actively engaged in the
appraisal of real estate in the general vicinity of the Real Property for a
period of not less than five (5) years immediately preceding his appointment.

               9.4.4 Determination of Appraised Value. The appraiser(s) shall
determine fair market value, as of the applicable Event of Default, of the
Partnership Property as follows: (i) the appraised value shall be determined by
a Single Appraiser, if applicable, or (ii) shall be agreed upon by both
appraisers in the event that two appraisers serve; or (iii) shall be the average
of the appraised values of the two appraisers who are closest together in the
event that three appraisers serve. After reaching a decision, the appraisers
shall give written notice to each Partner and the Accountants of the final value
as determined by them (the "Appraised Value") within fifteen (15) days after
appointment of the Third Appraiser or the mutually agreed upon Single Appraiser,
as the case may be. The Accountants shall, within thirty (30) days after such
notice from the appraiser(s), and based upon a value equal to ninety percent
(90%) of the Appraised Value, determine the value of the defaulting Partner's
Interest after adjusting the value of Partnership assets as follows:

               (a) Subtracting the product of liabilities of the Partnership
       (including but not limited to any Partnership obligations or indebtedness
       attributable to or secured by the Property), multiplied by the defaulting
       Partner's Interest;

               (b) Subtracting the amount of any third party claims against or
       liabilities of the defaulting Partner which are secured by or charged
       against the defaulting Partner's Interest;

            (c) Subtracting any other amounts owed by the defaulting  Partner to
         the Partnership or the non-defaulting Partner; and

            (d) Adding any amounts owed by the Partnership or the non-defaulting
         Partner to the defaulting Partner.

               9.4.5 Closing Procedures. After such appraisal, the
non-defaulting Partner shall purchase the defaulting Partner's Interest for a
price equal to the value of the defaulting Partner's Interest as determined by
the appraiser(s) and the Accountants pursuant to Paragraph 9.4.4 above at a
mutually acceptable time, but not later than sixty (60) days after Notice of the
final Appraised Value has been delivered to the Partners. The sale shall be
conducted in accordance with the procedures set forth in Paragraph 7.5.3, with
the non-defaulting Partner being the purchasing party and the defaulting Partner
being the selling party.

               9.4.6 Alternate Remedies. If the appraiser(s) fail to reach a
decision within thirty (30) days after the appointment of the Third Appraiser or
the mutually agreed upon Single Appraiser, as the case may be, the
non-defaulting Partner shall have the right to withdraw its election to purchase
the defaulting Partner's Interest pursuant to this Paragraph 9.4 and to dissolve
and liquidate the Partnership by giving the defaulting Partner written notice
thereof within ten (10) days after the end of such thirty (30) day period.

        9.4.7 Interim Management. During the period beginning with the Event of
Default and ending with the closing of sale pursuant to this Paragraph 9.4 or
the final liquidation and termination of the Partnership, the business affairs
of the Partnership shall be conducted by the non defaulting Partner so as to
preserve the assets of the Partnership and maintain the status thereof which
existed immediately prior to such dissolution, consistent with reasonably
prudent business practice. If the Limited Partner is the non-defaulting Partner,
it shall not be liable as a General Partner for actions of the General Partner
prior to the commencement of the Limited Partner's management of the affairs of
the Partnership pursuant to this subparagraph, and, if it does not desire to
manage the business of the Partnership as a General Partner, it shall be
entitled to appoint a receiver, at the expense of the Partnership, to manage
such affairs.

            9.5 Events of Dissolution.  The Partnership  shall dissolve upon the
         happening of any of the following events:

               (a) An Event of Default has  occurred  as provided  above and the
            non-defaulting  Partner  has  elected to  dissolve  as  provided  in
            Paragraph 9.2(a);

               (b) The  retirement  or  Incapacity  of a sole  General  Partner,
            unless the business of the  Partnership  is continued as provided in
            Paragraph 8.2.2;

               (c) The sale or other  disposition of all of the interests in and
            loans  secured  by  the  real  Property  (including  purchase  money
            security interests) of the Partnership;

               (d) The  mutual  determination  by the  General  Partner  and the
            Limited Partner to dissolve the Partnership;

               (e) The expiration of the term of the Partnership;

               (f) The happening of any other event causing the  dissolution  of
            the Partnership under the laws of the State of California.

        9.6 Effect of Dissolution. The dissolution of the Partnership shall be
effective on the day on which the event occurs giving rise to the dissolution,
but the Partnership shall not terminate until this Agreement has been canceled
and the assets of the Partnership shall have been distributed as provided in
Paragraph 9.8. Notwithstanding the dissolution of the Partnership, the business
of the Partnership and the affairs of the Partners prior to the termination of
the Partnership shall continue to be governed by this Agreement.

        9.7 Capital Contribution upon Dissolution. Each Partner shall look
solely to the assets of the Partnership for all distributions with respect to
the Partnership, any return of its Capital Contribution thereto, its Capital
Account and its share of Taxable Income or Tax Loss, and shall have no recourse
therefor (upon dissolution or otherwise) against any other Partner; provided,
however, that upon the dissolution and termination of the Partnership, each
Partner shall contribute to the Partnership an amount equal to the deficit
balance in its Capital Account. Such contribution shall be made within ten (10)
days of Notice by the General Partner but in no event later than the end of the
Partnership's taxable year (determined without regard to Section 706(c)(2)(A) of
the Code) during which the liquidation of such Partner's Interest occurs (or, if
later, then ninety (90) days after the date of such liquidation). Any amount so
contributed by any Partner shall be distributed first to any creditors of the
Partnership entitled thereto, and the balance to the other Partners in
proportion to their then positive Capital Account balances.

        9.8 Liquidation.

               9.8.1 Distribution of Proceeds. Upon dissolution of the
Partnership, the General Partner shall liquidate the assets of the Partnership,
and after allocating (pursuant to Article 5 of this Agreement) all income, gain,
credits, losses, and deductions resulting therefrom, shall apply and distribute
the proceeds thereof (a) first, as contemplated by the definition herein of the
term "Sale or Financing Proceeds," one by one, to the payment of the obligations
of the Partnership to third parties (including any obligation of the Partnership
to the General Partner or any Affiliate thereof on account of a loan from such
General Partner or Affiliate to the Partnership), to the expenses of
liquidation, and to the setting up of any Reserves for contingencies which the
General Partner may consider necessary; and (b) then, to the Partners in
proportion to the positive balances in the Partners' respective Capital
Accounts. Any such Reserves shall be released and distributed to the Partners in
proportion to the positive balances in their respective Capital Accounts as soon
as all contingencies have been satisfied or otherwise released.

               9.8.2 Deferral of Sale. Notwithstanding Paragraph 9.8.1 of this
Agreement, in the event that the General Partner determines that an immediate
sale of all or any portion of the Partnership's assets would cause undue loss to
the Partners, the General Partner, in order to avoid such loss, may, after
giving Notice to the Limited Partner, to the extent not then prohibited by the
act, either defer liquidation of and withhold from distribution for a reasonable
time any assets of the Partnership except those necessary to satisfy the
Partnership's debts and obligations, or distribute the assets to the Partners in
kind.

                9.8.3 Distribution in Kind. If any assets of the Partnership are
to be distributed in kind, such assets shall be distributed on the basis of the
fair market value thereof, and any Partner entitled to any interest in such
assets shall receive an interest therein as a tenant-in common with all other
Partners so entitled. The fair market value of such assets shall be determined
by an independent MAI appraiser to be selected pursuant to Paragraph 9.4. The
Capital Accounts of all Partners shall be adjusted as of the date of
distribution in kind as if the assets were sold on such date for their fair
market value (taking into account Section 7701(g) of the code) and Taxable
income or Tax Loss arising from the sale were allocated in accordance with this
Agreement.

               9.8.4 Final Termination. The General Partner shall cause the
cancellation of this Agreement and shall file all applicable notices of
termination following the final liquidation and distribution of all of the
Partnership's assets.
                                   ARTICLE 10

                               BOOKS AND RECORDS,
                    ACCOUNTING, REPORTS, TAX ELECTIONS, ETC.

        10.1 Books and Records. The books and records of the Partnership shall
be maintained at the principal office of the Partnership and shall be available
for examination there by any Partner or its duly authorized representatives at
any reasonable time. To the extent permitted by law, the General Partner will
permit the Limited Partner and its duly authorized representatives to inspect
and copy such books and records. The Partnership shall maintain such books and
records and provide such financial or other statements as the General Partner in
its sole discretion deems advisable, subject to the requirements of this
Agreement.

        10.2 Accounting and Fiscal Year. The Accountants shall prepare or review
all annual financial statements of the Partnership, which statements will be
prepared in accordance with generally accepted accounting principles, and shall
review or prepare for execution by the General Partner all tax returns of the
Partnership. Subject to Section 448 of the Code, the books of the Partnership
shall be kept on such method of accounting for tax and financial reporting
purposes as may be determined by the General Partner. The fiscal year of the
Partnership shall end on December 31 of each year, or on such other date
permitted under the Code as the General Partner may determine.

        10.3 Bank Accounts and Deposits. The bank accounts of the Partnership
shall be maintained at such banking institutions as the General Partner shall
determine, and withdrawals shall be made only in the regular course of
Partnership business on such signature or signatures as the General Partner
shall determine. All deposits and other funds not needed in the operation of the
business or not yet invested may be invested in United States government
securities, securities issued or guaranteed by United States government
agencies, securities issued or guaranteed by states or municipalities, savings
and loan association deposits, deposits in members of the Federal Home Loan Bank
System, deposits at a commercial bank or government securities dealer secured by
any of the above, commercial paper, or funds or unit investment trusts investing
in the above. The funds of the Partnership shall not be commingled with the
funds of any other Person.

       10.4 Reports. The General Partner shall provide to the Limited Partner a
copy of each financial report prepared for or on behalf of the Partnership
received by the General Partner from the Partnership's independent certified
public accountant, which shall contain a detailed accounting of any expenses
incurred by the Partnership in connection with any arrangement required to be
disclosed pursuant to Paragraph 6.4.4(c) above and shall be prepared and
delivered to the Limited Partner in any event not less frequently than
quarterly. Without limiting the generality of the foregoing, within 120 days
after the end of each fiscal year, the General Partner shall send to each Person
who was a Limited Partner or assignee at any time during the fiscal year then
ended (a) a balance sheet as of the end of such fiscal year, and statements of
income, Partners' equity and changes in financial position for such fiscal year,
all of which shall be prepared in accordance with generally accepted accounting
principles and accompanied by an auditor's report containing an opinion of the
Accountants, (b) a cash flow statement, (c) a report summarizing the fees and
other remuneration and reimbursed expenses for such fiscal year from the
Partnership to the General Partner and each Affiliate of the General Partner,
and (d) a statement with respect to such year showing the Distributable Cash and
Sale or Financing Proceeds distributed to Persons who were Limited Partners or
assignees at any time during such year. In addition, within 75 days after the
end of each calendar year, the General Partner shall send to each Person who was
a Limited Partner or assignee at any time during the fiscal year ending during
such calendar year such tax information as shall be necessary for the
preparation by such Limited Partner or assignee of its federal income tax
return, and required state income and other tax returns with regard to
jurisdictions in which the Partnership is formed or qualified or owns Property.

        10.5 Depreciation and Elections. With respect to any depreciable assets
of the Partnership, the Partnership may elect to use, so far as permitted by the
provisions of the Code, any depreciation method which is appropriate in the
opinion of the General Partner. The Partnership may, in the discretion of the
General Partner, make or elect not to make, and may revoke or elect not to
revoke, any election permitted or required to be made by the Partnership for
federal income or state tax purposes.

        10.6 Designation of Tax Matters Partner. The General Partner is hereby
designated as the "Tax Matters Partner" of the Partnership under Section
6231(a)(7) of the Code, to manage administrative tax proceedings conducted at
the Partnership level by the Internal Revenue Service with respect to
Partnership matters. Any Partner or assignee may participate in such
administrative proceedings relating to the determination of Partnership items at
the Partnership level, to the extent permitted by the Code. Expenses of such
administrative proceedings undertaken by the Tax Matters Partner shall be paid
from Partnership assets. Each Limited Partner or assignee who elects to
participate in such proceedings shall be responsible for its own expenses
incurred in connection with such participation. The cost of any adjustments to a
Limited Partner or assignee, and the cost of any resulting audits or adjustments
of a Limited Partner's or assignee's tax return, will be borne solely by the
affected Limited Partner or assignee.
                                   ARTICLE 11

          MEETINGS AND VOTING RIGHTS OF LIMITED PARTNERS 11.1 Meetings.

               11.1.1 In General. Meetings of the Partners for any purpose, to
be held at the principal office of the Partnership, may be called by the General
Partner on its own initiative, and shall be called by the General Partner on
written request from the Limited Partner. Any such call or request shall state
the purpose of the proposed meeting and the matters proposed to be acted upon
there. In addition, the General Partner may submit any matter (upon which the
Limited Partner is entitled to act) to the Limited Partner for a vote by written
consent without a meeting.

               11.1.2 Notice and Procedures. Notice of any meeting shall be
given to each Partner not less than ten (10) days nor more than sixty (60) days
before the date of the meeting. Such Notice shall state the place, date, hour
and purpose of the meeting, and shall indicate that it is being issued at the
direction of the Partner or Partners calling the meeting. If a meeting is
adjourned to another time or place, and if any announcement of the adjournment
of time and place is made at the meeting, it shall not be necessary to give
Notice of the adjourned meeting. The presence in person or by proxy of the
holders of a majority of the outstanding Interests of the Limited Partners shall
constitute a quorum at all such meetings; provided, however, that if there be no
such quorum, the holders of a majority in Interest of the Partners who are
present or represented by proxy may adjourn the meeting from time to time
without further Notice, until a quorum shall have been obtained. No Notice of
the time, place or purpose of any such meeting need be given to any Partner who
attends in person or is represented by proxy (except for a Partner who attends a
meeting for the express purpose of objecting at the beginning of the meeting to
the transaction of any business on the ground that the meeting is not lawfully
called or convened), or to any Partner entitled to such Notice who, in a writing
executed and filed with the records of the meeting, either before or after the
time thereof, waives such Notice.

               11.1.3 Vote Determination Date. For the purpose of determining
the Partners entitled to vote at any meeting of the Partnership or any
adjournment thereof, the General Partner may fix, in advance, a date as the
record date for any such determination. The determination date shall be not more
than 50 days nor less than 7 days before any such meeting.

               11.1.4 Proxy. Each Partner other than the General Partner may
authorize any Person to act for it by proxy, whether by waiving Notice of any
meeting, or voting or participating at a meeting. Every proxy must be signed by
the applicable Partner or its attorney-in-fact. No proxy shall be valid after
the expiration of 12 months from the date thereof unless otherwise provided in
the proxy. Every proxy shall be revocable at the pleasure of the Partner
executing it.

               11.1.5 Rules and Officers. At each meeting, the General Partner
shall appoint such officers and adopt such rules for the conduct of such meeting
as the General Partner shall deem appropriate.

        11.2 Voting Rights. The Limited Partner shall have the right to vote on:

               (a) Those matters specified in Paragraphs 6.3, 6.4.3 and 6.4.4 or
            elsewhere in this Agreement; and

               (b)  Amendments  to this  Agreement,  subject  to the  provisions
            hereof,  provided  that  such  amendments  (a)  shall  not allow any
            Limited Partner to take part in the management of the  Partnership's
            business,  and (b) shall not,  without  the  consent of the  General
            Partner,  alter the rights,  powers or duties of the General Partner
            as set forth herein. ARTICLE 12

                                    OTHER PROVISIONS

        12.1 Appointment of General Partner as Attorney-in-Fact.

               12.1.1 In General. Each Limited Partner, including each
Additional and Substituted Limited Partner, by its execution of this Agreement,
irrevocably constitutes and appoints the General Partner as its true and lawful
attorney-in-fact with full power and authority in its name, place and stead to
execute, acknowledge, deliver, swear to, file and record at the appropriate
public offices such documents as may be necessary or appropriate to carry out
the provisions of this Agreement, including but not limited to:

                (a) All certificates and other instruments (including
        counterparts of this Agreement), and all amendments thereto, which the
        General Partner deems appropriate to form, qualify or continue the
        Partnership as a Limited Partnership (or a partnership in which the
        Limited Partner will have limited liability comparable to that provided
        in the Act), in the jurisdictions in which the Partnership may conduct
        business or in which such formation, qualification or continuation is,
        in the opinion of the General Partner, necessary or desirable to protect
        the limited liability of the Limited Partners;

               (b) All amendments to this Agreement adopted in accordance with
       the terms hereof, and all instruments which the General Partner deems
       appropriate to reflect a change or modification of the Partnership in
       accordance with the terms of this Agreement; and

               (c) All conveyances of Property with a value of Twenty Thousand
       and 00/100ths Dollars ($20,000.00) or less in the aggregate.

       Nothing in this Section shall, however, authorize the General Partner to
execute amendments to this Agreement as attorney-in-fact for the Limited Partner
other than those amendments which the General Partner is authorized to make
pursuant to Paragraph 6.2 of this Agreement.

        12.1.2 Irrevocable. The foregoing appointment 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 it on behalf of the Partnership,
shall survive the bankruptcy, death, adjudication of incompetence or insanity,
other Incapacity, or dissolution of any Person hereby giving such power, and the
transfer or assignment of all or any portion of the Interests of such Person,
and shall not be affected by the subsequent incapacity of the principal,
provided, however, that in the event of the assignment by a Limited Partner of
all of its Interest, the foregoing power of attorney of an assignor Limited
Partner shall survive such assignment only until such time as the assignee shall
have been admitted to the Partnership as a Substituted Limited Partner and all
required documents and instruments shall have been duly executed, filed and
recorded to effect such substitution.

        12.2 Representative of Limited Partner. Except as otherwise provided
herein, RCSA Holdings, Inc., General Partner of Old Vail Partners, Harold Elkan,
President, or such other individuals as the Limited Partner may designate by
notifying the General Partner in writing from time to time, shall have the
authority to represent the Limited Partner in its dealings with the General
Partner on all matters relating to the Partnership.

    12.3 Amendments.

              12.3.1 Admission Transfer or Continuation. Each additional and
Substituted Limited Partner, additional General Partner and successor General
Partner shall become a signatory hereto by signing such number of counterpart
signature pages to this Agreement, a power of attorney to the General Partner,
and such other instruments, in such manner, as the General Partner shall
determine. By so signing, each Additional and Substituted Limited Partner,
additional General Partner or successor General Partner, as the case may be,
shall be deemed to have adopted and to have agreed to be bound by all of the
provisions of this Agreement. If this Agreement is amended as a result of adding
or substituting a Limited Partner or increasing the investment of a Limited
Partner, the amendment to this Agreement shall be sufficient when it is signed
by the General Partner and by the Person to be substituted or added or who is
increasing its investment in the Partnership, and, if a Limited Partner is to be
substituted, by the assigning Limited Partner. If this Agreement is amended to
reflect the designation of an additional General Partner, the amendment to this
Agreement shall be sufficient when it is signed by the other General Partner or
General Partners and by the additional General Partner. If this Agreement is
amended to reflect the withdrawal of a General Partner and if the business of
the Partnership is to be continued, the amendment to this Agreement shall be
sufficient when it is signed by the withdrawing General Partner (and such
General Partner hereby so agrees) and by the remaining or successor General
Partner or General Partners.

          12.3.2  Right  With  Consent:   Prohibition.   In  addition  to  other
amendments authorized herein, amendments may be made to this Agreement from time
to  time by the  General  Partner  with  the  consent  of the  Limited  Partner;
provided,  however,  that  without the consent of the  Partners to be  adversely
affected by an amendment, this Agreement may not be amended so as to (a) convert
a Limited Partner's Interest into a General Partner's  interest,  (b) modify the
limited  liability of a Limited Partner,  or (c) alter the interest of a Partner
in Taxable Income, Tax Loss, Distributable Cash or Sale or Financing Proceeds.

               12.3.3 Rights Without Consent. In addition to other amendments
authorized herein, amendments may be made to this Agreement from time to time by
the General Partner, without the consent of any Limited Partner: (a) to cure any
ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to make any other provisions
with respect to matters or questions arising under this Agreement that are not
inconsistent with the provisions of this Agreement; (b) to delete or add any
provision of this Agreement required to be so deleted or added by any federal or
state official, which addition or deletion is deemed by such official to be for
the benefit or protection of the Limited Partner; and (c) to take such actions
as may be necessary (if any) to insure that the Partnership will be treated as a
partnership, and that each Limited Partner will be treated as a Limited Partner,
for federal income tax purposes. Notwithstanding the foregoing, no amendment
shall be adopted pursuant to this Paragraph 12.2.3 unless the adoption thereof
(i) is for the benefit of or is not adverse to the interests of the Limited
Partner, (ii) does not affect the distribution of Distributable Cash or Sale or
Financing Proceeds or the allocation of Taxable Income or Tax Loss among the
Partners or between the Limited Partners as a class and the General Partner as a
class, and (iii) does not affect the limited liability of the Limited Partner or
the status of the Partnership as a partnership for federal income tax purposes.

               12.3.4 Filings. In making any amendments, there shall be prepared
and filed by the General Partner such documents and certificates as may be
required under the Act and under the laws of any other jurisdiction applicable
to the Partnership.

        12.4 Security Interest and Right of Set-Off. As security for any
withholding tax or other liability or obligation, to which the Partnership may
be subject as a result of any act or status of any Limited Partner, or to which
the Partnership may become subject with respect to the Interest of any Limited
Partner, the Partnership shall have (and each Limited Partner hereby grants to
the Partnership) a security interest in all Distributable Cash and Sale or
Financing Proceeds distributable to such Limited Partner to the extent of the
amount of such withholding tax or other liability or obligation. The Partnership
shall have a right of set-off against such distributions of Distributable Cash
or Sale or Financing Proceeds, in the amount of such withholding tax or other
liability or obligation.

        12.5 Commissions. Each Partner acknowledges, represents, and warrants to
the Partnership and the other Partners that, as of the effective date of this
Agreement, no finder's fee, broker's commission, or similar fee has or will
become payable by such Partner, any Affiliate of such Partner, or the
Partnership as a result of the formation of the Partnership, the contribution of
assets to the Partnership, the operation of the Partnership business, or the
sale or encumbrance of any portion of the Partnership Property. Such
representation and warranty shall survive the termination or dissolution of the
Partnership; and in the event of any such claim, the Partner through whom such
claim is made shall be liable for the cost of any defense, dispute, or payment
and shall indemnify and hold the other Partner harmless therefor.

        12.6 Binding Provisions. The covenants and agreements contained herein
 shall be binding upon, and inure to the benefit of, the heirs, executors,
 administrators, personal representatives, successors and assigns of the
 respective parties hereto.

          12.7 Applicable Law. This Agreement shall be construed and enforced in
accordance with the laws of the State of California.

        12.8 Counterparts. This Agreement may be executed in several
counterparts, all of which together shall constitute one agreement binding on
all parties hereto, notwithstanding that all of the parties have not signed the
same counterpart.

        12.9 Severability of Provisions. Each provision of this Agreement shall
be considered severable, and if for any reason any provision or provisions
hereof are determined to be invalid and contrary to any existing or future law,
such invalidity shall not impair the operation of or effect those portions of
this Agreement which are valid.

          12.10 Article and Paragraph  Titles.  Article and Paragraph titles are
for descriptive purposes only and shall not control or alter the meaning of this
Agreement as set forth in the text.

        12.11 Entire Agreement. This Agreement constitutes the entire
understanding and agreement between the parties hereto respecting the matters
generally addressed herein including all matters regarding the Partnership;
there are no representations, agreements, arrangements, or understandings,
verbal or written, between the parties hereto relating to the subject matter of
this Agreement which are not fully expressed herein.

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

"General Partner"                   "Limited Partner"

LANDGRANT CORPORATION, a            OLD VAIL PARTNERS, a
        California corporation          California General Partnership

By: /S/ C. Samuel Marasco                By: RCSA HOLDINGS, INC.,
     C. Samuel Marasco, President                  A California corporation
                                             General Partner
By: /S/ Chris Smith                            By: /S/ Harold S. Elkan
    Chris Smith, Vice President                 Harold S. Elkan, President

                                               By: /S/ Steven R. Whitman
                                                  Steven R. Whitman, Asst.
                                             Secretary

                                        By: /S/ Peter Werner Edelmann
                                            Peter Werner Edelmann, a married
                                           Man , holding title as his sole and
                                          Separate property

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