Document:

<PAGE>    38

                                                                    EXHIBIT 4.13
                                    FORM OF
                  SECOND AMENDMENT TO STATEMENT OF DESIGNATION
                                       OF
                    SERIES C CUMULATIVE REDEEMABLE PERPETUAL
                                PREFERRED SHARES
                                       OF
                               BENEFICIAL INTEREST
                                       OF
                              CAMDEN PROPERTY TRUST

                                   ARTICLE ONE

     CAMDEN  PROPERTY  TRUST (the  "COMPANY"),  pursuant  to the  provisions  of
Section 3.30 of the Texas Real Estate  Investment  Trust Act (the "TREITA"),  on
August 13, 1999, adopted a Statement of Designation of 8.25% Series C Cumulative
Redeemable Perpetual Preferred Shares of Beneficial Interest of the Company (the
"INITIAL  STATEMENT")  prior  to the  issuance  of  shares  of  8.25%  Series  C
Cumulative  Redeemable Perpetual Preferred Shares of Beneficial  Interest,  such
series of unissued  shares having been  established by a resolution duly adopted
by all  necessary  action  on the  part of the  Company  and the  Board of Trust
Managers,  as provided for in the Amended and Restated Declaration of Trust (the
"DECLARATION  OF TRUST").  Pursuant to that certain First Amendment to Statement
of Designation of Series C Cumulative  Redeemable  Perpetual Preferred Shares of
Beneficial Interest of Camden Property Trust, dated as of September 7, 1999 (the
"FIRST  AMENDMENT"),  the Company amended the Initial  Statement to increase the
number of shares of 8.25% Series C  Cumulative  Redeemable  Perpetual  Preferred
Shares of Beneficial Interest designated pursuant to the Initial Statement.  The
Company hereby amends the Initial Statement,  as amended by the First Amendment,
to  increase  the  number  of  shares of 8.25%  Series C  Cumulative  Redeemable
Perpetual  Preferred Shares of Beneficial  Interest  designated  pursuant to the
Initial Statement.

                                   ARTICLE TWO

     The name of the Company is Camden Property Trust.

                                  ARTICLE THREE

     Pursuant to the authority conferred upon the Board of Trust Managers by the
Declaration  of  Trust  and  Section  3.30 of the  TREITA,  the  Board  of Trust
Managers,  pursuant  to  Section  10.20  of the  TREITA,  adopted  a  resolution
increasing  the  authorized  number  of  8.25%  Series C  Cumulative  Redeemable
Perpetual  Preferred Shares of Beneficial  Interest of the Company, as set forth
in the true and correct copy of the resolution attached hereto AS EXHIBIT A (the
"DESIGNATING RESOLUTION").

                                  ARTICLE FOUR

     The Designating Resolution was adopted effective as of January 7, 2000.

                                  ARTICLE FIVE

     The Designating  Resolution was duly adopted by all necessary action on the
part of the Company.

<PAGE>    39

     IN WITNESS  WHEREOF,  the  undersigned  officer  has  executed  this Second
Amendment to Statement of Designation effective as of January 7, 2000.

                                        CAMDEN PROPERTY TRUST

                                        By:_____________________________________
                                             Name:
                                             Title:

                                        Notary Public, State of Texas

                                        Printed Name of Notary

                                        My Commission Expires:

<PAGE>    40

                                    EXHIBIT A

                             DESIGNATING RESOLUTION
                             BOARD OF TRUST MANAGERS
                              CAMDEN PROPERTY TRUST
                                 JANUARY 7, 2000

                 AUTHORIZATION OF ADDITIONAL SERIES C CUMULATIVE
               CONVERTIBLE PREFERRED SHARES OF BENEFICIAL INTEREST

     WHEREAS,  the  Board  of Trust  Managers  of  Camden  Property  Trust  (the
"COMPANY")  has  established a series of preferred  shares  designated as "8.25%
Series  C  Cumulative   Redeemable  Perpetual  Preferred  Shares  of  Beneficial
Interest" (the "SERIES C PREFERRED SHARES") pursuant to that certain Designating
Resolution adopted effective as of August 13, 1999;

     WHEREAS, the Board of Trust Managers has previously increased the number of
authorized  Series C  Preferred  Shares  pursuant  to that  certain  Designating
Resolution adopted effective as of September 7, 1999;

     WHEREAS,  the  Board  of Trust  Managers  has  deemed  it to be in the best
interests  of the  Company  and its  shareholders  for the  Company  to  further
increase  the number of  authorized  Series C Preferred  Shares  pursuant to the
authority  granted to the Board of Trust  Managers in the  Amended and  Restated
Declaration of Trust (the "DECLARATION OF TRUST") of the Company.

     NOW, THEREFORE,  BE IT RESOLVED,  that, pursuant to the authority vested in
the Board of Trust Managers by the Declaration of Trust, the aggregate number of
shares of Beneficial Interest of Series C Preferred Shares shall be 2,120,000.

     FURTHER  RESOLVED,  that any and all acts and deeds of any officer or Trust
Manager of the  Company  taken prior to the date hereof on behalf of the Company
with regard to the  foregoing  resolutions  are hereby  approved,  ratified  and
confirmed in all respects as and for the acts and deeds of the Company.

     FURTHER  RESOLVED,  that the  officers  of the Company be, and each of them
hereby is,  severally and without the necessity for joinder of any other person,
authorized,  empowered  and  directed  to execute  and  deliver any and all such
further documents and instruments and to do and perform any and all such further
acts and deeds that may be necessary or  advisable to  effectuate  and carry out
the  purposes  and  intents of the  foregoing  resolutions,  including,  but not
limited to, the filing of a statement  with the County  Clerk of Harris  County,
Texas,  amending the designation of Series C Preferred Shares  established as of
August 13,  1999,  pursuant to Section  3.30 of TREITA,  all such  actions to be
performed in such manner,  and all such documents and instruments to be executed
and  delivered in such form,  as the officer  performing  or executing  the same
shall  approve,  the  performance  or  execution  thereof by such  officer to be
conclusive  evidence of the approval thereof by such officer and by the Board of
Trust Managers.<PAGE>    41

                                                                   EXHIBIT 10.15
                                    FORM OF
                 SECOND AMENDMENT TO THIRD AMENDED AND RESTATED
           AGREEMENT OF LIMITED PARTNERSHIP OF CAMDEN OPERATING, L.P.

     THIS SECOND  AMENDMENT TO THIRD  AMENDED AND RESTATED  AGREEMENT OF LIMITED
PARTNERSHIP OF CAMDEN OPERATING,  L.P. (this  "AMENDMENT") is entered into as of
August 13, 1999, by and between CPT-GP,  Inc.  ("GENERAL  PARTNER"),  a Delaware
corporation and a wholly owned subsidiary of Camden USA, Inc.  ("CAMDEN USA"), a
Delaware  corporation,  a wholly owned subsidiary of Camden Property Trust ("CPT
"or the "GENERAL PARTNER ENTITY"),  a Texas real estate investment trust, as the
general partner of Camden Operating,  L.P., a Delaware limited  partnership (the
"PARTNERSHIP") and Edgewater Equity, Inc., a Delaware  corporation  ("EDGEWATER,
INC.") and  Edgewater  Equity  Partners,  L.P., a Delaware  limited  partnership
("EDGEWATER,  L.P.";  each of Edgewater,  Inc. and  Edgewater,  L.P. a "SERIES C
PREFERRED PARTNER" and collectively "SERIES C PREFERRED PARTNERS").

                                    RECITALS

         WHEREAS,  the  signatories  hereto  desire to amend that certain  Third
Amended and Restated Agreement of Limited Partnership of Camden Operating, L.P.,
dated as of April 15, 1997, as amended by that certain First  Amendment to Third
Amended and Restated Agreement of Limited Partnership of Camden Operating, L.P.,
dated as of February 23, 1999 (collectively, as amended, the "AGREEMENT") as set
forth herein;  any terms  capitalized  herein but not defined  herein having the
definitions therefor set forth in the Agreement.

         NOW,  THEREFORE,  in  consideration  of the  foregoing,  of the  mutual
promises set forth  herein,  and of other good and valuable  consideration,  the
receipt and  sufficiency of which are hereby  acknowledged,  the parties hereto,
intending to be legally bound,  agree to continue the  Partnership and amend the
Agreement as follows:

         1. As of the date hereof (a) Edgewater, Inc. has contributed $5,000,000
to the  Partnership  in exchange for the issuance to Edgewater,  Inc. of 200,000
Series C Preferred Units (as defined in the Agreement,  as amended hereby),  and
(b) Edgewater,  L.P. has  contributed  $8,000,000 to the Partnership in exchange
for the  issuance of 320,000  Series C Preferred  Units.  The Series C Preferred
Units issued to the Series C Preferred  Partners have been duly issued and fully
paid. The Series C Preferred  Partners are hereby  admitted to the  Partnership,
effective  as of August 13, 1999,  each as an  Additional  Limited  Partner (the
information  set forth on EXHIBIT A attached  hereto relating to the interest of
the Series C Preferred Partners in the Partnership is hereby included in Exhibit
A to the  Agreement),  and by execution of this Amendment the Series C Preferred
Partners  have  agreed  to be bound by all of the terms  and  conditions  of the
Agreement, as amended hereby.

         2.       DEFINITIONS.

                  A. The words "Series C Preferred Units" are inserted after the
         word "Series B Preferred Units" in the first sentence of the definition
         of "Partnership Unit" in Article I of the Agreement.

                  B. The following new  definitions are inserted in Article I of
         the Agreement so as to preserve alphabetical order:

                     "EXCESS  SERIES C UNITS"  shall have the  meaning set forth
         therefor in Section 17.9.A hereof.

<PAGE>    42
                     "PARTNERSHIP NET  ASSET VALUE"  means, with  respect to any
         fiscal quarter  of  the  Partnership, (A)  the product  of  (1) the Net
         Operating  Income for  such  quarter  (as  determined  based  upon  the
         financial information of  the  Partnership  provided by the Partnership
         pursuant  to  Section  4(f) of  the  Series  C  Preferred  Contribution
         Agreement) multiplied by four and (2) eleven, less (B) all Indebtedness
         of the Partnership.

                     "NET  OPERATING  INCOME"  means, with respect to any fiscal
         quarter of the  Partnership,  all cash received by the Partnership from
         whatever  source  (excluding the proceeds of any Capital  Contributions
         and  any capital  transactions  (e.g.,  refinancings,  sales of assets,
         casualty or condemnation)) less the aggregate of the following: (i) all
         interest  payments in respect of Partnership  Indebtedness  made during
         such quarter by the  Partnership;  and (ii) all operating expenses made
         by the Partnership during such quarter.

                     "PARITY  PREFERRED  UNITS" shall have the meaning set forth
         therefor in Section 17.1 hereof.

                     "SERIES C EXCHANGE NOTICE" shall have the meaning set forth
         therefor in Section 17.9.B hereof.

                     "SERIES C EXCHANGE  PRICE" shall have the meaning set forth
         therefor in Section 17.9.A hereof.

                     "SERIES  C   PREFERRED   CONTRIBUTION   AGREEMENT"   means,
         collectively,  that  certain (i) Contribution  Agreement,  dated  as of
         August 13, 1999,  by   and  among,  Edgewater  Equity,  Inc.,  CPT  and
         Partnership, and (ii)  Contribution  Agreement, dated  as of August 13,
         1999,  by   and   among,  Edgewater   Equity   Partners,  L.P., CPT and
         Partnership.

                     "SERIES C  PREFERRED PARTNERS"  means  Edgewater,  Inc. and
         Edgewater,  L.P., and their respective successors and assigns.

                     "SERIES  C  PREFERRED  SHARES"  shall  have the meaning set
         forth therefor in Section 17.9.A hereof.

                     "SERIES C PREFERRED UNIT  DISTRIBUTION  PAYMENT DATE" shall
         have the  meaning set forth  therefor in Section  17.3.A hereof.

                     "SERIES C PREFERRED  UNIT  PARTNERSHIP  RECORD  DATE" shall
         have the  meaning set forth  therefor in Section  17.3.A hereof.

                     "SERIES C PREFERRED UNITS" shall have the meaning set forth
         therefor in Section 17.2 hereof.

                     "SERIES C PRIORITY RETURN" shall have the meaning set forth
         therefor in Section 17.1 hereof.

                     "SERIES C  REDEMPTION  PRICE"  shall  have the  meaning set
         forth therefor in Section 17.6 hereof.

                     "UNITS JUNIOR TO SERIES C" shall have the meaning set forth
         therefor in Section 17.3.C hereof.

<PAGE>    43

         3.  ARTICLE I. The definition of "PARITY  PREFERRED UNITS" set forth in
Article I is hereby  deleted  and replaced with the following:

             ""PARITY PREFERRED UNITS"  shall have the meaning set forth therein
in Section 17.1 hereof."

         4.  SECTION  4.2.D.  Section  4.2.D  of the  Agreement  is  amended  by
inserting  the  word  "four " in lieu of the word  "three"  in the  second  line
thereof,  and by  inserting  the words "and Series C Preferred  Units" after the
words "Series B Preferred Units" at the end of the first sentence thereof.

         5.  SECTION 8.4.   Nothing  contained  in Section 8.4 of the  Agreement
shall modify  or limit in any way any  of the provisions of  Article XVII of the
Agreement.

         6.  SECTION 8.6.   The provisions of Section 8.6 of the Agreement shall
not be applicable to the Series C Preferred Units.

         7.  TRANSFERS.  Section 11.1.A of the Agreement is amended by inserting
the words "or an exchange  pursuant to Sections  16.9 or 17.9 hereof"  after the
words "Section 8.6" in the last line thereof. Section 11.3.A of the Agreement is
amended by inserting the words "or an exchange pursuant to Sections 16.9 or 17.9
hereof" after the words "Section 8.6" in the second line thereof. Section 11.3.A
is further  modified to include the following  sentence  after the last sentence
thereof:  "Notwithstanding  anything  in this  Section  11.3 (but not  including
11.3.C) to the contrary, the General Partner shall not unreasonably withhold its
consent to any Transfer of any Series C Preferred Units, provided the provisions
of  Sections  11.3.B,  11.3.D.  11.3.E,  11.3.F,  11.4.B  and  11.6  hereof  are
satisfied."  Section  11.3.C of the Agreement is amended by adding the following
new clause (x) after clause (ix) thereof: "and (x) notwithstanding any clause of
this  Section  11.3.C to the  contrary,  in the case of any  Series C  Preferred
Partner,  to an  Affiliate  of such Series C Preferred  Partner,  provided  such
transfer is made in accordance with Sections 11.3.D,  11.3.E,  11.3.F and 11.4.B
of the  Agreement  (for the sake of this  clause (x) and  Section  11.6.C (as it
relates to the Series C Preferred Units) only, the word "Affiliate"  shall mean,
in  respect  to any person or entity,  any other  person or entity  directly  or
indirectly controlling,  controlled by or under common control of such person or
entity  whether  or not such  control  shall  include  a  controlling  ownership
interest  and shall  include with respect to any such person or entity the power
to direct the  management  and  policies of such  person or entity,  directly or
indirectly,  whether through the ownership of voting securities,  by contract or
otherwise)."  The  following  sentence  is inserted  after the last  sentence of
Section  11.4.A of the  Agreement:  "Notwithstanding  anything  in Section  11.4
hereof to the contrary,  the General Partner shall not unreasonably withhold its
consent  to the  admission  of a  transferee  of Series C  Preferred  Units as a
Limited  Partner,  in respect of an exchange  of Series C  Preferred  Units to a
permitted  transferee  under Section 11.3.C hereof,  provided that the effect of
such  admission  would  not be to cause  the  Partnership  to have more than 500
Partners or to be a publicly  traded  partnership  within the meaning of Section
7704 of the Code, and any such transferee shall, upon satisfaction of all of the
conditions set forth in Sections 11.3.B, 11.3.D. 11.3.E, 11.3.F, 11.4.B and 11.6
hereof  be  admitted  to  the  Partnership  as  a  Substituted  Limited  Partner
hereunder."  Sections  11.6.A and 11.6.B of the  Agreement  each are  amended by
inserting  the words "or an exchange  pursuant to Sections 16.9 or 17.9 hereof "
after the words "Section 8.6" therein. The following language is inserted at the
end of Section 11.6.C of the Agreement:  "; PROVIDED,  HOWEVER,  that a Series C
Preferred Partner may make a Transfer to an Affiliate of such Series C Preferred
Partner in  accordance  with the  provisions of Section  11.3.C  hereof  without
regard  to such  limitation."  The last  sentence  of  Section  11.6.D is hereby
modified by inserting the words "or Series C Preferred Unit Partnership Date, as
the case may be" after the words "Partnership Record Date ".

         8.  SECTION  12.2.B.  The last sentence of Section  12.2.B shall not be
deemed applicable to  distributions in respect of the Series C Preferred Shares.

<PAGE>    44

         9.  SECTION 16.1.  The first sentence of Section 16.1 is hereby deleted
in its entirety.

         10. ARTICLE XVII.  The following  new Article  XVII is  inserted in the
Agreement after Article XVI thereof:

                                  ARTICLE XVII
                               SERIES C CUMULATIVE
                      REDEEMABLE PERPETUAL PREFERRED UNITS

         SECTION 17.1      DEFINITIONS

                  The term  "PARITY  PREFERRED  UNITS" shall be used to refer to
         any  class  or  series  of  Partnership   Interests  now  or  hereafter
         authorized,   issued  or  outstanding   expressly   designated  by  the
         Partnership  to rank on a parity  with  Series C  Preferred  Units with
         respect to  distributions  and rights  upon  voluntary  or  involuntary
         liquidation,  winding-up or dissolution of the Partnership  (including,
         without  limitation,  the Series B Preferred Units). The term "SERIES C
         PRIORITY  RETURN"  shall  mean,  an amount  equal to 8.25%  per  annum,
         determined  on the basis of a 360 day year of twelve 30 day  months (or
         actual days for any month which is shorter than a full monthly period),
         cumulative  to the extent not  distributed  for any given  distribution
         period  pursuant to Section 5.1 hereof,  of the stated value of $25 per
         Series C  Preferred  Unit,  commencing  on the date of issuance of such
         Series C Preferred Unit.

         SECTION 17.2      DESIGNATION AND NUMBER

                  A series of Partnership Units in the Partnership designated as
         the "8.25% Series C Cumulative  Redeemable  Perpetual  Preferred Units"
         (the "SERIES C PREFERRED UNITS") is hereby  established.  The number of
         Series C Preferred Units shall be 520,000.

         SECTION 17.3      DISTRIBUTIONS

                  A. PAYMENT OF DISTRIBUTIONS.  Subject to the rights of holders
         of Parity Preferred Units as to the payment of distributions,  pursuant
         to Sections  5.1,  5.3 and 13.2  hereof,  holders of Series C Preferred
         Units shall be entitled  to  receive,  when,  as and if declared by the
         Partnership acting through the General Partner,  out of Available Cash,
         cumulative  preferential  cash  distributions  at the rate per annum of
         8.25% of the original Capital Contribution per Series C Preferred Unit.
         With  respect  to the  Holders  of the Series C  Preferred  Units,  the
         original Capital  Contribution per Series C Preferred Unit is $25. Such
         distributions shall be cumulative,  shall accrue from the original date
         of issuance and will be payable (i) quarterly (such  quarterly  periods
         for  purposes  of payment  and accrual  will be the  quarterly  periods
         ending on the dates  specified in this  sentence and not calendar  year
         quarters) in arrears, not later than the third calendar day after March
         31, June 30,  September 30 and December 31 of each year  commencing  on
         September  30, 1999 and, (ii) in the event of (a) an exchange of Series
         C Preferred Units into Series C Preferred  Shares,  or (b) a redemption
         of Series C Preferred  Units, on the exchange date or redemption  date,
         as applicable  (each a "SERIES C PREFERRED  UNIT  DISTRIBUTION  PAYMENT
         DATE").  The amount of the distribution  payable for any period will be
         computed on the basis of a 360-day year of twelve 30-day months and for
         any period shorter than a full quarterly period for which distributions
         are computed,  the amount of the distribution  payable will be computed
         on the  basis of the  actual  number of days  elapsed  in such a 30-day
         month. If any date on which  distributions are to be made on the Series
         C  Preferred  Units  is  not  a  Business  Day,  then  payment  of  the
         distribution  to be  made  on  such  date  will  be  made  on the  next
         succeeding  day that is a Business  Day (and  without  any  interest or
         other  payment in  respect  of any such  delay)  except  that,  if such

<PAGE>    45

         Business  Day is in the next  succeeding  calendar  year,  such payment
         shall be made on the immediately  preceding  Business Day, in each case
         with the same force and  effect as if made on such date.  Distributions
         on the Series C  Preferred  Units will be made to the holders of record
         of the Series C  Preferred  Units on the  relevant  record  dates to be
         fixed by the  Partnership  acting  through the General  Partner,  which
         record dates shall in no event exceed  fifteen (15) Business Days prior
         to the relevant Series C Preferred Unit Distribution  Payment Date (the
         "SERIES C PREFERRED UNIT PARTNERSHIP RECORD DATE").

                  B.  DISTRIBUTIONS  CUMULATIVE.  Distributions  on the Series C
         Preferred  Units will accrue whether or not the terms and provisions of
         any agreement of the Partnership,  including any agreement  relating to
         its   Indebtedness   at  any  time  prohibit  the  current  payment  of
         distributions,  whether or not the Partnership has earnings, whether or
         not there are funds  legally  available for the payment of such of such
         distributions  and whether or not such  distributions  are  authorized.
         Accrued but unpaid  distributions  on the Series C Preferred Units will
         accumulate as of the Series C Preferred Unit Distribution  Payment Date
         on which they first become payable. Distributions on account of arrears
         for any past distribution periods may be declared and paid at any time,
         without  reference to a regular  Series C Preferred  Unit  Distribution
         Payment  Date to holders of record of the Series C  Preferred  Units on
         the record  date fixed by the  Partnership  acting  through the General
         Partner which date shall not exceed fifteen (15) Business Days prior to
         the payment date.  Accumulated and unpaid  distributions  will not bear
         interest.

                  C.  PRIORITY AS TO DISTRIBUTIONS.

                      (i)  So  long  as  any  Series  C   Preferred   Units  are
                  outstanding,  no  distribution of cash or other property shall
                  be authorized,  declared,  paid or set apart for payment on or
                  with  respect to any class or series of  Partnership  Interest
                  ranking  junior as to the payment of  distributions  or rights
                  upon a voluntary or  involuntary  liquidation,  dissolution or
                  winding-up of the  Partnership to the Series C Preferred Units
                  (collectively, "UNITS JUNIOR TO SERIES C"), nor shall any cash
                  or other property be set aside for or applied to the purchase,
                  redemption  or  other  acquisition  for  consideration  of any
                  Series C Preferred  Units,  any Parity  Preferred Units or any
                  Units  Junior  to  Series  C,  unless,   in  each  case,   all
                  distributions  accumulated on all Series C Preferred Units and
                  all classes and series of outstanding  Parity  Preferred Units
                  have  been  paid in  full.  The  foregoing  sentence  will not
                  prohibit (a)  distributions  payable solely in Units Junior to
                  Series C or, in  accordance  with  Section 8.6 hereof,  common
                  shares of beneficial interest (or any similar equity security)
                  of the General  Partner  Entity,  (b) the  conversion of Units
                  Junior to Series C or Parity Preferred Units into Units Junior
                  to Series C or common  shares of  beneficial  interest (or any
                  similar equity  security) of the General Partner  Entity,  and
                  (c) the redemption of Partnership  Interests  corresponding to
                  any Series C  Preferred  Shares,  Parity  Preferred  Shares or
                  Junior  Shares (as those  terms are  defined  in that  certain
                  Statement of  Designation  of Series C  Cumulative  Redeemable
                  Perpetual  Preferred  Shares  of  Beneficial  Interest  of the
                  General   Partner   Entity   (the   "SERIES  C   DESIGNATION")
                  establishing  the Series C  Preferred  Shares (as  hereinafter
                  defined)  to  be  purchased  by  the  General  Partner  Entity
                  pursuant to Article Nineteen of the Declaration of Trust.

                      (ii)  So long as distributions have not been paid  in full
                  (or a sum sufficient for such full payment is not  irrevocably
                  deposited in trust for payment) upon  the  Series  C Preferred
                  Units, all distributions authorized and declared on the Series
                  C Preferred  Units  and all classes  or series  of outstanding
                  Parity Preferred  Units shall be  authorized and  declared  so
                  that the  amount of distributions  authorized and declared per
                  Series C Preferred  Unit and such  other classes or  series of
                  Parity  Preferred  Units shall in all cases bear to each other
                  the  same  ratio  that  accrued  distributions  per  Series  C
                  Preferred  Unit and  such other  classes or  series  of Parity
                  Preferred Units (which shall not include  any  accumulation in

<PAGE>    46

                  respect  of   unpaid   distributions   for  prior distribution
                  periods if such class or series of Parity  Preferred  Units do
                  not have cumulative distribution rights) bear to each other.

                  D.  NO FURTHER RIGHTS.  Holders of  Series C  Preferred  Units
         shall not be  entitled  to any distributions,  whether payable in cash,
         other  property  or   otherwise,  in  excess  of  the  full  cumulative
         distributions described herein.

         SECTION 17.4      ALLOCATIONS

                  Sections  6.1.A and 6.1.B of the Agreement are hereby  deleted
         and replaced by the following:

                  NET INCOME.  After giving  effect to  the special  allocations
         set forth in Section 1 of EXHIBIT C and  Section  6.2 below, Net Income
         shall be allocated:

               (i) first,  to the General  Partner to the extent that Net Losses
               previously  allocated to the General Partner  pursuant to Section
               6.1.B(iii)  below for all prior  taxable  years exceed Net Income
               previously  allocated  to the  General  Partner  pursuant to this
               Section 6.1.A(i) for all prior taxable years,

               (ii)  second,  to  holders  of  Partnership  Interests  that  are
               entitled to any preference in distribution to the extent that Net
               Losses  previously  allocated to such holders pursuant to Section
               6.1.B(ii)  below for all prior  taxable  years  exceed Net Income
               previously  allocated  to such  holders  pursuant to this Section
               6.1.A(ii) for all prior taxable years,

               (iii) third,  to holders of Partnership  Interests of a class not
               entitled to  preference  in  distribution  to the extent that Net
               Losses  previously  allocated to such holders pursuant to Section
               6.1.B(i)  below for all prior  taxable  years  exceed  Net Income
               previously  allocated  to such  holders  pursuant to this Section
               6.1.A(iii) for all prior taxable years,

               (iv) fourth, to the holders of any Partnership Interests that are
               entitled to any preference in distribution in accordance with the
               rights  of any such  class of  Partnership  Interests  (including
               Series B Preferred Units and Series C Preferred Units) until each
               such Partnership  Interest has been allocated Net Income equal to
               the   EXCESS  OF  (x)  the   cumulative   amount   of   preferred
               distributions  the  holder  of  such  Partnership   Interests  is
               entitled  to receive  (Series B Priority  Return,  in the case of
               Series B  Preferred  Units and Series C Priority  Return,  in the
               case of Series C  Preferred  Units and, as between the holders of
               Series B Preferred  Units and the Series C Preferred  Units,  pro
               rata  in  proportion  to  the  respective  amount  of  cumulative
               preferred  distributions  that each such  holder is  entitled  to
               receive)  to the last day of the current  taxable  year or to the
               date of redemption,  to the extent such Partnership Interests are
               redeemed  during such taxable year,  OVER (y) the  cumulative Net
               Income  allocated  to  such  holder,  pursuant  to  this  Section
               6.1.A(iv) for all prior taxable years, and

               (v) fifth,  with respect to  Partnership  Interests  that are not
               entitled to any preference in the  allocation of Net Income,  pro
               rata to each  such  class in  accordance  with the  terms of such

<PAGE>    47

               class  (and,  within such class,  pro rata in  proportion  to the
               respective  Percentage Interests as of the last day of the period
               for which such allocation is being made).

               NET  LOSSES.  After  giving  effect to  the  special  allocations
         set forth in Section  1 of EXHIBIT C and Section 6.2,  Net Losses shall
         be allocated:

               (i) first, with respect to classe s of Partnership Interests that
               are not entitled to any preference in distribution (including the
               General  Partner  Interest),  pro  rata to  each  such  class  in
               accordance with the terms of such class (and,  within such class,
               pro rata in proportion to the respective  Percentage Interests as
               of the last day of the period for which such  allocation is being
               made)  until the  Adjusted  Capital  Account  (ignoring  for this
               purpose any amounts a Partner is obligated to  contribute  to the
               capital of the  Partnership or is deemed  obligated to contribute
               pursuant to Regulations Section  1.704-1(b)(2)(ii)(c)(2)) of each
               Partner in such classes is reduced to zero,

               (ii) second, to the holders of any Partnership Interests that are
               entitled to any preference in  distribution  (including  Series B
               Preferred Units and Series C Preferred  Units) in accordance with
               the rights of any such class of  Partnership  Interests  (and, if
               there is more than one class of such Partnership Interests,  then
               in the reverse order of their  preference in distribution  and if
               there is no preference,  then among the holders  thereof pro rata
               among  them in  proportion  to  their  Adjusted  Capital  Account
               balances),  until the Adjusted  Capital Account  (modified in the
               same  manner as in clause  (i)) of each such holder is reduced to
               zero, and

               (iii) third, to the General Partner.

               To  the extent  permitted  under Section 704 of the Code,  solely
         for purposes of allocating Net Income or Net Losses in any taxable year
         (or a portion  thereof) to the holders of Series B Preferred  Units and
         Series C Preferred  Units pursuant to Section 6.1 hereof,  items of Net
         Income  or  Net  Losses,   as  the  case  may  be,  shall  not  include
         Depreciation  with respect to properties that are "ceiling  limited" in
         respect of holders of Series B  Preferred  Units or Series C  Preferred
         Units.  For purposes of the preceding  sentence,  Partnership  property
         shall be considered  "ceiling limited" in respect of a holder of Series
         B  Preferred   Units  or  Series  C  Preferred  Units  if  Depreciation
         attributable  to such  Partnership  property  which would  otherwise be
         allocable to such holder,  without  regard to this  paragraph,  exceeds
         depreciation determined for federal income tax purposes attributable to
         such  Partnership  property which would  otherwise be allocable to such
         holder by more than 5%.

         SECTION 17.5     LIQUIDATION PROCEEDS

                  A. DISTRIBUTIONS  UPON  CERTAIN   EVENTS.  Upon  voluntary  or
         involuntary liquidation, dissolution or winding-up of the  Partnership,
         distributions  on  the  Series  C  Preferred  Units  shall  be  made in
         accordance with Section 13.2  hereof; PROVIDED, HOWEVER,  that upon any
         such  liquidation,  dissolution  or  winding-up of the Partnership, the
         Liquidator may elect, in its sole  discretion, to cause the Partnership
         or the General  Partner Entity to issue to the  holders of the Series C
         Preferred Units such number of Series C Preferred Shares as such holder
         would  have  received  had  they  exercised  their  Exchange  Rights in
         accordance  with  Section  17.9  hereof (it  being assumed for purposes
         hereof  that  such  holders  would  then be entitled  to  exercise such
         Exchange  Rights) in lieu  of the cash  otherwise  distributable to the
         Series C Preferred Partners pursuant to Section 13.2 hereof.

<PAGE>    48

                  B. NOTICE.   Written   notice  of  any   such   voluntary   or
         involuntary liquidation, dissolution or winding-up  of the Partnership,
         stating the payment date or dates when, and  the place or places where,
         the amounts distributable in such circumstances shall be payable, shall
         be given by (i)fax and (ii) by first class mail, postage  pre-paid, not
         less than  thirty (30) and  not more  than sixty (60) days prior to the
         payment date  stated  therein, to  each record  holder of  the Series C
         Preferred  Units at the  respective addresses of such  holders  as  the
         same shall appear on the transfer records of the Partnership.

                  C. NO  FURTHER  RIGHTS.  After  payment  of  the  full  amount
         of the liquidating distributions to which they  are  entitled  (whether
         in  accordance  with  Section  13.2 hereof, or by delivery  of Series C
         Preferred Shares in  accordance  with Section  17.5.A  hereof or both),
         the holders of Series C Preferred  Units will have no right or claim to
         any of the remaining assets of the Partnership.

                  D. CONSOLIDATION,  MERGER OR CERTAIN  OTHER TRANSACTIONS.  The
         voluntary  sale,  conveyance,  lease,  exchange or transfer  (for cash,
         shares  of  stock,   securities  or  other  consideration)  of  all  or
         substantially  all of the property or assets of the General Partner to,
         or the  consolidation  or merger or other  business  combination of the
         Partnership with or into, any corporation, trust, partnership,  limited
         liability  company  or  other  entity  (or of any  corporation,  trust,
         partnership, limited liability company or other entity with or into the
         Partnership)   shall  not  be  deemed  to  constitute  a   liquidation,
         dissolution or winding-up of the Partnership.

         SECTION 17.6      OPTIONAL REDEMPTION

                  A. RIGHT OF OPTIONAL REDEMPTION.  The Series C Preferred Units
         may  not be  redeemed  prior  to the  fifth  (5th)  anniversary  of the
         issuance  date. On or after such date, the  Partnership  shall have the
         right to redeem the Series C Preferred  Units,  in whole or in part, at
         any time or from  time to time,  upon not less than 30 nor more than 60
         days written notice, at a redemption  price,  payable in cash, equal to
         the Capital  Account  balance of the holder of Series C Preferred Units
         (the "SERIES C REDEMPTION PRICE") or, if greater,  the original Capital
         Contribution of such holder plus the current Series C Priority  Return,
         whether  or not  declared  to the  relevant  date,  to the  extent  not
         previously distributed;  PROVIDED, HOWEVER, that no redemption pursuant
         to this Section 17.6 will be permitted if the Series C Redemption Price
         does not equal or exceed  the  original  Capital  Contribution  of such
         holder plus the  cumulative  Series C Priority  Return,  whether or not
         declared,   to  the  redemption  date  to  the  extent  not  previously
         distributed.  If fewer than all of the  outstanding  Series C Preferred
         Units are to be redeemed,  the Series C Preferred  Units to be redeemed
         shall be selected pro rata (as nearly as practicable  without  creating
         fractional units).

                  B. LIMITATION ON  REDEMPTION.  The Partnership  may not redeem
         fewer than all of the outstanding Series C Preferred  Units  unless all
         accumulated  and  unpaid  distributions have been paid on all  Series C
         Preferred Units for all  quarterly distribution periods  terminating on
         or prior to the date of redemption.

                  C. PROCEDURES FOR REDEMPTION.

                           (i) Notice of redemption  will be (a) faxed,  and (b)
                  mailed by the Partnership, by certified mail, postage prepaid,
                  not less than 30 nor more than 60 days prior to the redemption
                  date,  addressed  to the  respective  holders of record of the
                  Series C Preferred Units at their respective addresses as they
                  appear on the records of the  Partnership.  No failure to give
                  or defect in such  notice  shall  affect the  validity  of the
                  proceedings for the redemption of any Series C Preferred Units
                  except as to the holder to whom such notice was  defective  or
                  not given.  In  addition to any  information  required by law,
                  each such notice shall state: (m) the redemption date, (n) the

<PAGE>    49

                  Series C Redemption  Price, (o) the aggregate number of Series
                  C Preferred  Units to be redeemed and if fewer than all of the
                  outstanding  Series C Preferred Units are to be redeemed,  the
                  number of Series C Preferred Units to be redeemed held by such
                  holder,  which number shall equal such holder's pro rata share
                  (based  on  the   percentage  of  the   aggregate   number  of
                  outstanding  Series C  Preferred  Units  the  total  number of
                  Series C Preferred  Units held by such holder  represents)  of
                  the  aggregate  number  of  Series  C  Preferred  Units  to be
                  redeemed,  (p)  the  place  or  places  where  such  Series  C
                  Preferred  Units  are to be  surrendered  for  payment  of the
                  Series  C  Redemption  Price,  (q) that  distributions  on the
                  Series  C  Preferred  Units  to  be  redeemed  will  cease  to
                  accumulate on such redemption date and (r) that payment of the
                  Series C Redemption  Price will be made upon  presentation and
                  surrender of such Series C Preferred  Units and  execution and
                  delivery  by the  holder  of  Series C  Preferred  Units of an
                  assignment  of  Partnership  Interest  pursuant  to which such
                  holder  shall  assign  the  Series  C  Preferred  Units to the
                  Partnership,  shall  represent  and warrant that such Series C
                  Preferred Units are  unencumbered  and not subject to any lien
                  and that such holder has good title to such Series C Preferred
                  Units and that such holder has  requisite  authority to assign
                  the Series C Preferred  Units to the  Partnership  pursuant to
                  such assignment of Partnership Interest and shall provide such
                  additional   representations  and  warranties  and  assurances
                  (including   opinions  of  counsel)  as  shall  be  reasonably
                  requested  by the  Partnership;  provided  that  no  Series  C
                  Preferred  Units shall be redeemed by the  Partnership  unless
                  and until the holder  thereof shall have  satisfied all of the
                  conditions to such redemption (including,  without limitation,
                  the  delivery  of  the   foregoing   assignment   and  further
                  assurances).

                           (ii) If the Partnership  gives a notice of redemption
                  in respect of Series C Preferred  Units (which  notice will be
                  irrevocable)  then, by 12:00 noon,  New York City time, on the
                  redemption date, the Partnership  will deposit  irrevocably in
                  trust for the  benefit of the Series C  Preferred  Units being
                  redeemed  funds  sufficient  to pay the  applicable  Series  C
                  Redemption  Price and will give  irrevocable  instructions and
                  authority to pay such Series C Redemption Price to the holders
                  of the Series C Preferred Units upon surrender of the Series C
                  Preferred Units by such holders at the place designated in the
                  notice of  redemption,  the  delivery  by such  holders of the
                  opinions of counsel and future assurances further described in
                  Section  17.6.C(i)  hereof,  and the execution and delivery by
                  such holders of an assignment as further  described in Section
                  17.6.C(i)   hereof.  If  the  Series  C  Preferred  Units  are
                  evidenced  by a  certificate  and if fewer  than all  Series C
                  Preferred   Units  evidenced  by  any  certificate  are  being
                  redeemed,  a new certificate shall be issued upon surrender of
                  the  certificate  evidencing  all  Series C  Preferred  Units,
                  evidencing  the  unredeemed  Series C Preferred  Units without
                  cost  to  the  holder  thereof.  On  and  after  the  date  of
                  redemption,  distributions  will  cease to  accumulate  on the
                  Series  C  Preferred  Units or  portions  thereof  called  for
                  redemption,  unless the  Partnership  defaults  in the payment
                  thereof.  If  any  date  fixed  for  redemption  of  Series  C
                  Preferred  Units is not a Business  Day,  then  payment of the
                  Series C Redemption Price payable on such date will be made on
                  the next  succeeding  day that is a Business  Day (and without
                  any  interest  or other  payment in respect of any such delay)
                  except that,  if such  Business Day falls in the next calendar
                  year, such payment will be made on the  immediately  preceding
                  Business  Day,  in each case with the same force and effect as
                  if made on such date fixed for  redemption.  If payment of the
                  Series C Redemption  Price is  improperly  withheld or refused
                  and not paid by the Partnership,  distributions on such Series
                  C  Preferred  Units  will  continue  to  accumulate  from  the
                  original redemption date to the date of payment, in which case
                  the actual  payment date will be considered the date fixed for
                  redemption for purposes of calculating the applicable Series C
                  Redemption Price.

<PAGE>    50

                  D.  The provisions  of  Section  8.6 of this  Agreement do not
         apply to  redemptions  undertaken pursuant to this Article XVII.

         SECTION 17.7 VOTING RIGHTS

                  A.  GENERAL.  Holders of the Series C Preferred Units will not
         have any voting rights or right to consent to any matter  requiring the
         consent or  approval  of the  Limited  Partners,  except as provided in
         Sections  7.3 and 14.1.C  and this  Section  17.7.  In the event of any
         inconsistency  between any other  provision of this  Agreement  and the
         provisions  of this Section 17.7,  the  provisions of this Section 17.7
         shall control.

                  B.  CERTAIN  VOTING RIGHTS.  So long as any Series C Preferred
         Units  remain  outstanding,  the  Partnership  shall not,  without  the
         affirmative  vote of the holders of at least two-thirds of the Series C
         Preferred  Units  outstanding at the time: (i) authorize or create,  or
         increase  the  authorized  or issued  amount of, any class or series of
         Partnership  Interests  ranking senior to the Series C Preferred  Units
         with respect to payment of  distributions  or rights upon  liquidation,
         dissolution or winding-up or reclassify any Partnership  Interests into
         any such senior Partnership Interest, or create, authorize or issue any
         obligations  or security  convertible  into or evidencing  the right to
         purchase  any such senior  Partnership  Interests;  (ii)  authorize  or
         create,  or  increase  the  authorized  or issued  amount of any Parity
         Preferred  Units or reclassify any  Partnership  Interest into any such
         Partnership  Interest or create,  authorize or issue any obligations or
         security  convertible into or evidencing the right to purchase any such
         Partnership  Interests  but only to the extent  such  Parity  Preferred
         Units are issued to an  Affiliate  of the  Partnership,  other than the
         General Partner Entity to the extent the issuance of such interests was
         to allow the General  Partner Entity to issue  corresponding  preferred
         shares to persons who are not Affiliates of the  Partnership;  or (iii)
         either (A) consolidate,  merge into or with, or (other than in a manner
         which results in a liquidation of the Partnership and the distributions
         provided for in Section 17.5 hereof (which distributions must be in the
         form of Series C Preferred  Shares at any time prior to the fifth (5th)
         anniversary of the date hereof))  convey,  transfer or lease its assets
         substantially as an entirety to, any corporation or other entity or (B)
         amend,  alter or repeal the  provisions  of the  Agreement,  whether by
         merger, consolidation or otherwise, that would materially and adversely
         affect the powers,  special rights,  preferences,  privileges or voting
         power of the Series C Preferred Units or the holders thereof; PROVIDED,
         HOWEVER, that with respect to the occurrence of a merger, consolidation
         or a sale or lease of all of the  Partnership's  assets as an entirety,
         so long as (l) the Partnership is the surviving entity and the Series C
         Preferred Units remain outstanding with the terms thereof unchanged, or
         (2) the  resulting,  surviving or transferee  entity is a  partnership,
         limited liability company or other pass-through  entity organized under
         the laws of any state and  substitutes for the Series C Preferred Units
         other interests in such entity having  substantially the same terms and
         rights as the  Series C  Preferred  Units,  including  with  respect to
         distributions,  voting rights and rights upon liquidation,  dissolution
         or  winding-up,  then the  occurrence  of any such  event  shall not be
         deemed to materially  and adversely  affect such rights,  privileges or
         voting powers of the holders of the Series C Preferred Units (and shall
         not  require  the vote or consent of any of the holders of the Series C
         Preferred Units);  and PROVIDED FURTHER that any increase in the amount
         of Partnership Interests or the creation or issuance of any other class
         or series of Partnership Interests,  in each case ranking (y) junior to
         the Series C Preferred  Units with respect to payment of  distributions
         and  the  distribution  of  assets  upon  liquidation,  dissolution  or
         winding-up,  or (z) on a parity to the  Series C  Preferred  Units with
         respect to payment of distributions and the distribution of assets upon
         liquidation,  dissolution or winding-up to the extent such  Partnership
         Interests are not issued to an affiliate of the Partnership, other than
         the General Partner Entity to the extent the issuance of such interests
         was  to  allow  the  General  Partner  Entity  to  issue  corresponding

<PAGE>    51

         preferred  shares to persons who are not affiliates of the Partnership,
         shall not be deemed to  materially  and  adversely  affect such rights,
         preferences,  privileges  or voting  powers  (and shall not require the
         vote or consent of any of the holders of the Series C Preferred Units).

         SECTION 17.8 TRANSFER RESTRICTIONS

                  The  Series  C  Preferred   Units  shall  be  subject  to  the
         provisions  of  Article  XI  of  the  Agreement,  as  amended  by  this
         Amendment.

         SECTION 17.9 EXCHANGE RIGHTS

                  A.  RIGHT TO EXCHANGE.

                      (i)  Series  C  Preferred  Units  will be  exchangeable in
                  whole or in part at  anytime  on or  after  the  tenth  (10th)
                  anniversary  of the date of  issuance,  at the  option  of the
                  holders thereof, for authorized but previously unissued shares
                  of 8.25% Series C Cumulative  Redeemable  Preferred  Shares of
                  Beneficial Interest of the General Partner Entity (the "SERIES
                  C  PREFERRED  SHARES")  at an  exchange  rate of one  share of
                  Series C  Preferred  Shares for one Series C  Preferred  Unit,
                  subject  to  adjustment  as  described  below  (the  "SERIES C
                  EXCHANGE  PRICE"),  provided that the Series C Preferred Units
                  will become  exchangeable at any time, in whole or in part, at
                  the  option of the  holders  of Series C  Preferred  Units for
                  Series  C   Preferred   Shares   if  (x)  at  any  time   full
                  distributions  shall not have been timely made on any Series C
                  Preferred  Unit  with  respect  to  six  (6)  prior  quarterly
                  distribution  periods,  whether or not consecutive,  provided,
                  however,  that a distribution in respect of Series C Preferred
                  Units shall be  considered  timely made if made within two (2)
                  Business  Days after the  applicable  Series C Preferred  Unit
                  Distribution  Payment Date if at the time of such late payment
                  there shall not be any prior quarterly distribution periods in
                  respect of which full  distributions were not timely made, (y)
                  upon  receipt  by a holder or  holders  of Series C  Preferred
                  Units of (1) notice from the General  Partner that the General
                  Partner or the General  Partner  Entity has taken the position
                  that the  Partnership  is, or upon the occurrence of a defined
                  event  in the  immediate  future  will  be,  a PTP  and (2) an
                  opinion   rendered   by  an  outside   nationally   recognized
                  independent legal counsel reasonably acceptable to the General
                  Partner  familiar  with such matters  addressed to a holder or
                  holders of Series C Preferred  Units,  that the Partnership is
                  or likely is, or upon the  occurrence  of a defined event that
                  shall occur in the immediate future will be or likely will be,
                  a  PTP,  or  (z)  the  Partnership  Net  Asset  Value  of  the
                  Partnership in any fiscal  quarter of the  Partnership is less
                  than $200,000,000.  In addition,  the Series C Preferred Units
                  may be exchanged for Series C Preferred Shares, in whole or in
                  part,  at the  option  any  holder  prior to the tenth  (10th)
                  anniversary  of the  issuance  date and after the third  (3rd)
                  anniversary  thereof  if such  holder of a Series C  Preferred
                  Units  shall  deliver  to the  General  Partner  either  (i) a
                  private letter ruling issued by the Internal  Revenue  Service
                  and  addressed  to such holder of Series C Preferred  Units or
                  (ii)  an  opinion  of  independent  legal  counsel  reasonably
                  acceptable  to the General  Partner  based on the enactment of
                  temporary or final Treasury  Regulations or the publication of
                  a  Revenue  Ruling,  in  either  case  to the  effect  that an
                  exchange of the Series C Preferred  Units at such earlier time
                  would not cause the Series C Preferred  Units to be considered
                  "stock and securities" within the meaning of section 351(e) of
                  the Code for  purposes  of  determining  whether the holder of
                  such Series C Preferred Units is an "investment company" under
                  section 721(b) of the Code if an exchange is permitted at such
                  earlier date. Furthermore, the Series C Preferred Units may be
                  exchanged in whole but not in part by any holder thereof which
                  is a real  estate  investment  trust  within  the  meaning  of
                  Sections  856  through  859 of the Code for Series C Preferred

<PAGE>    52

                  Shares (but only if the exchange in whole may be  accomplished
                  consistently  with the ownership  limitations  set forth under
                  Article  Nineteen of the  Declaration  of Trust of the General
                  Partner Entity (taking into account exceptions thereto)) if at
                  any time, (i) the Partnership  reasonably  determines that the
                  assets and income of the  Partnership for a taxable year after
                  1999 would not satisfy the income and assets  tests of Section
                  856 of the Code for such taxable year if the Partnership  were
                  a real estate  investment trust within the meaning of the Code
                  or (ii) any such  holder of  Series C  Preferred  Units  shall
                  deliver to the  Partnership  and the General Partner Entity an
                  opinion of independent  counsel  reasonably  acceptable to the
                  General Partner Entity to the effect that, based on the assets
                  and income of the  Partnership  for a taxable year after 1999,
                  the Partnership  would not satisfy the income and assets tests
                  of  Section  856 of the  Code  for  such  taxable  year if the
                  Partnership  were a real estate  investment  trust  within the
                  meaning  of the Code  and that  such  failure  would  create a
                  meaningful  risk that a holder of the Series C Preferred Units
                  would  fail  to  maintain   qualification  as  a  real  estate
                  investment  trust. In addition,  if the holder of the Series C
                  Preferred  Units  is  an  entity  other  than  a  real  estate
                  investment  trust  within the meaning of Sections  856 through
                  859 of the Code, the Series C Preferred Units may be exchanged
                  in whole but not in part by such holder for Series C Preferred
                  Shares (but only if the exchange in whole may be  accomplished
                  consistently  with the ownership  limitations  set forth under
                  Article  Nineteen of the  Declaration  of Trust of the General
                  Partner  Entity) if at any time,  both (I) the holder  thereof
                  concludes  based on results or  projected  results  that there
                  exists (in the reasonable  judgment of the holder) an imminent
                  and  substantial  risk  that  the  holder's  interest  in  the
                  Partnership  does or will  represent  more  than  19.5% of the
                  total  profits  or  capital   interests  in  the   Partnership
                  (determined in accordance  with Treasury  Regulations  Section
                  1.731-2(e)(4))  for  a  taxable  year,  and  (II)  the  holder
                  delivers  to the  General  Partner an  opinion  of  nationally
                  recognized  independent counsel to the effect that there is an
                  imminent and  substantial  risk that the holder's  interest in
                  the Partnership  does or will represent more than 19.5% of the
                  total  profits  or  capital   interests  in  the   Partnership
                  (determined in accordance  with Treasury  Regulations  Section
                  1.731-2(e)(4)) for a taxable year.

                      (ii)  Notwithstanding  anything to the contrary  set forth
                  in  Section  17.9.A(i),  if  a Series  C Exchange  Notice  (as
                  hereinafter   defined)  has  been  delivered  to  the  General
                  Partner, then the General Partner may, at its option, elect to
                  redeem or cause the  Partnership to redeem all or a portion of
                  the Series C Preferred  Units which are subject to such Series
                  C Exchange  Notice for cash in an amount equal to the original
                  Capital  Contribution  per  Series  C  Preferred  Unit and all
                  accrued  and  unpaid  distributions  thereon  to the  date  of
                  redemption.  The General  Partner may  exercise  its option to
                  redeem the Series C Preferred  Units for cash pursuant to this
                  Section  17.9.A(ii)  by giving each holder which  tendered its
                  Series C  Preferred  Units  pursuant to such Series C Exchange
                  Notice, notice of its election to redeem for cash, within five
                  (5)  Business  Days  after  receipt  of the  Series C Exchange
                  Notice, by (m) fax, and (n) registered mail,  postage paid, at
                  the  address  of each  such  holder  as it may  appear  on the
                  records of the  Partnership  stating (A) the redemption  date,
                  which  shall be no later than sixty  (60) days  following  the
                  receipt  of the  Series C  Exchange  Notice,  (B) the Series C
                  Redemption  Price,  (C) the place or places where the Series C
                  Preferred  Units  are to be  surrendered  for  payment  of the
                  Series  C  Redemption  Price,  (D) that  distributions  on the
                  Series  C  Preferred  Units  will  cease  to  accrue  on  such
                  redemption  date;  (E) that payment of the Series C Redemption
                  Price  will be made upon  presentation  and  surrender  of the
                  Series C  Preferred  Units  and (F) the  aggregate  number  of
                  Series C Preferred Units to be redeemed, and if fewer than all
                  of  the  outstanding  Series  C  Preferred  Units  are  to  be
                  redeemed,  the  number  of  Series  C  Preferred  Units  to be
                  redeemed  held by such  holder,  which number shall equal such

<PAGE>    53
                  holder's  pro-rata  share  (based  on  the  percentage  of the
                  aggregate  number of outstanding  Series C Preferred Units the
                  total  number of Series C Preferred  Units held by such holder
                  represents)  of the  aggregate  number of  Series C  Preferred
                  Units being redeemed.

                      (iii) In  the event  an  exchange  of all  or a portion of
                  Series C Preferred  Units pursuant to SECTION  17.9.A(I) would
                  violate  the  provisions  on  ownership  limitation  of  the C
                  Preferred   Shares  set  forth  in  Article  Nineteen  of  the
                  Declaration  of Trust with  respect to the Series C  Preferred
                  Shares,  the General Partner shall give written notice thereof
                  to each holder of record of Series C Preferred  Units,  within
                  fifteen (15) Business Days  following  receipt of the Series C
                  Exchange Notice, by (m) fax, and (n) registered mail,  postage
                  prepaid,  at the  address of each such holder set forth in the
                  records of the  Partnership.  In such  event,  each  holder of
                  Series C  Preferred  Units  shall  be  entitled  to  exchange,
                  pursuant  to the  provision  of  Section  17.9.B,  a number of
                  Series  C  Preferred   Units  which  would   comply  with  the
                  provisions  on the  ownership  limitation  of the C  Preferred
                  Shares  set forth in such  Article  Nineteen  and any Series C
                  Preferred Units not so exchanged (the "EXCESS SERIES C UNITS")
                  shall be  redeemed  by the  Partnership  for cash in an amount
                  equal to the original  Capital  Contribution  per Excess Unit,
                  plus any accrued and unpaid distributions thereon,  whether or
                  not declared, to the date of redemption. The written notice of
                  the C  Preferred  Shares  shall state (A) the number of Excess
                  Series  C  Units  held  by  such  holder,  (B)  the  Series  C
                  Redemption Price of the Excess Series C Units, (C) the date on
                  which such Excess Series C Units shall be redeemed, which date
                  shall be no later than sixty (60) days  following  the receipt
                  of the Series C Exchange Notice, (D) the place or places where
                  such Excess Series C Units are to be  surrendered  for payment
                  of the Series C Redemption  Price,  (E) that  distributions on
                  the  Excess  Series  C Units  will  cease  to  accrue  on such
                  redemption  date,  and  (F)  that  payment  of  the  Series  C
                  Redemption Price will be made upon  presentation and surrender
                  of such Excess  Series C Units.  In the event an exchange may,
                  in the reasonable  judgment of the General Partner,  result in
                  Excess Series C Units,  as a condition to such exchange,  each
                  holder of such  units  agrees to provide  representations  and
                  covenants reasonably requested by the General Partner relating
                  to (1) the widely held nature of the interests in such holder,
                  sufficient  to assure the General  Partner  that the  holder's
                  ownership of the Series C Preferred  Shares (without regard to
                  the limits  described  above) will not cause any individual to
                  own in  excess of 9.8% in value of all  shares  of  beneficial
                  interest of the General Partner Entity;  and (2) to the extent
                  such holder can so represent  and covenant  without  obtaining
                  information from its owners, the holder's ownership of tenants
                  of the  Partnership  and its  affiliates.  Each  holder  shall
                  provide  the General  Partner  with any  reasonably  requested
                  information  which the General  Partner shall require in order
                  to determine  whether an exchange of all or any portion of the
                  Series C Preferred Units pursuant to Section  17.9.A(i) hereof
                  would  violate the  limitations  on ownership set forth in the
                  Declaration of Trust; provided that General Partner only shall
                  be entitled to such information from such holder to the extent
                  that such holder has such information reasonably available. To
                  the  extent  that  the  General  Partner   requests  any  such
                  information  during  the  fifteen  (15)  Business  Day  period
                  referenced in the first  sentence of this Section  17.9.A(iii)
                  and the holder shall fail to provide such  information  during
                  such  fifteen (15)  Business Day period,  such period shall be
                  extended to the date that is three (3) Business Days following
                  the delivery by the holder of such  information to the General
                  Partner.

                      (iv)  The   redemption   of   Series  C   Preferred  Units
                  described in Section  17.9.A(ii) and (iii) shall be subject to
                  the  provisions of Section  17.6.B(i) and Section  17.6.C(ii);
                  PROVIDED,  HOWEVER,  that the term "Series C Redemption Price"
                  in such  Sections  shall be read to mean the original  Capital
                  Contribution  per Series C Preferred  Unit being redeemed plus
                  all accrued and unpaid distributions to the redemption date.

<PAGE>    54

                  B.  PROCEDURE FOR EXCHANGE.

                      (i) Any  exchange shall be  exercised pursuant to a notice
                  of  exchange  (the  "SERIES  C  EXCHANGE  NOTICE")   delivered
                  to the General  Partner by the holder who is  exercising  such
                  exchange  right,  by (a) fax and (b) by certified mail postage
                  prepaid.  The  exchange  of  Series C  Preferred  Units,  or a
                  specified  portion  thereof,  may be effected  after the fifth
                  (5th)  Business Day  following  the  expiration of the fifteen
                  (15) day period  further  described  in the first  sentence of
                  Section  17.9.A(iii),  by  delivering  certificates,  if  any,
                  representing  such  Series C Preferred  Units to be  exchanged
                  together with written  notice of exchange and an assignment of
                  such Series C Preferred Units and such opinions of counsel and
                  further  assurances  further  described  in Section  17.6.C(i)
                  hereof to the office of the  General  Partner  maintained  for
                  such purpose.  Currently, such office is Three Greenway Plaza,
                  Suite 1300, Houston, Texas 77046. Each exchange will be deemed
                  to have  been  effected  immediately  prior  to the  close  of
                  business on the date on which such Series C Preferred Units to
                  be exchanged (together with all required  documentation) shall
                  have been  surrendered  and notice shall have been received by
                  the  General  Partner as  aforesaid  and the Series C Exchange
                  Price  shall have been paid.  Any  Series C  Preferred  Shares
                  issued  pursuant to this  Section  17.9 shall be  delivered as
                  shares which are duly authorized,  validly issued,  fully paid
                  and  nonassessable,  free  of  pledge,  lien,  encumbrance  or
                  restriction  other than those  provided in the  Declaration of
                  Trust,   the  Bylaws  of  the  General  Partner  Entity,   the
                  Securities Act and relevant state securities or blue sky laws.

                      (ii)  In   the   event  of   an  exchange   of   Series  C
                  Preferred Units for Series C Preferred Shares, an amount equal
                  to  the  accrued  and  unpaid  distributions,  whether  or not
                  declared,  to the date of  exchange  on any Series C Preferred
                  Units  tendered for exchange shall (a) accrue on the shares of
                  the  Series  C  Preferred  Shares  into  which  such  Series C
                  Preferred  Units are exchanged,  and (b) continue to accrue on
                  such Series C Preferred Units,  which shall remain outstanding
                  following  such  exchange,  with the  General  Partner  as the
                  holder  of such  Series  C  Preferred  Units.  Notwithstanding
                  anything to the contrary set forth herein, in no event shall a
                  holder of a Series C Preferred Unit that was validly exchanged
                  into Series C Preferred Shares pursuant to this section (other
                  than the General  Partner now holding  such Series C Preferred
                  Unit), receive any cash distribution from the Partnership,  if
                  such  holder,  after  exchange,  is entitled to receive a cash
                  distribution with respect to the Series C Preferred Shares for
                  which such Series C Preferred Unit was exchanged or redeemed.

                      (iii)  Fractional  shares  of  Series  C  Preferred Shares
                  are not to be issued upon exchange  but, in lieu thereof,  the
                  General Partner will pay a cash adjustment based upon the fair
                  market value of the Series C Preferred Shares on the day prior
                  to the exchange  date as determined in good faith by the Board
                  of Directors of the General Partner.

                  C.  ADJUSTMENT OF SERIES C EXCHANGE PRICE.

                      (i)   The  Series   C  Exchange   Price   is   subject  to
                  adjustment  upon certain events,  including (a)  subdivisions,
                  combinations  and  reclassification  of the Series C Preferred
                  Shares,  and (b)  distributions  to all  holders  of  Series C
                  Preferred  Shares of evidence of  indebtedness  of the General
                  Partner Entity or assets (including securities,  but excluding
                  dividends  and  distributions  paid  in  cash  out  of  equity
                  applicable to Series C Preferred Shares).

<PAGE>    55

                      (ii) In  case  the  General  Partner  Entity  shall  be  a
                  party to any transaction  (including,  without  limitation,  a
                  merger, consolidation,  statutory share exchange, tender offer
                  for all or  substantially  all of the General Partner Entity's
                  capital  shares  or  sale of all or  substantially  all of the
                  General Partner Entity's assets),  in each case as a result of
                  which the Series C Preferred Shares will be converted into the
                  right to receive shares of capital shares, other securities or
                  other property  (including cash or any  combination  thereof),
                  each Series C Preferred Unit will  thereafter be  exchangeable
                  into the kind and amount of shares of capital shares and other
                  securities  and  property  receivable  (including  cash or any
                  combination thereof) upon the consummation of such transaction
                  by a holder of that  number  of  shares of Series C  Preferred
                  Shares or fraction  thereof  into which one Series C Preferred
                  Unit was exchangeable  immediately  prior to such transaction.
                  The General  Partner Entity may not become a party to any such
                  transaction  unless the terms thereof are consistent  with the
                  foregoing.  In addition,  so long as either Series C Preferred
                  Partner, or any of their permitted successors or assigns, hold
                  any Series C Preferred Units, the General Partner Entity shall
                  not,  without the affirmative  vote of the holders of at least
                  two-thirds of the Series C Preferred Units  outstanding at the
                  time:  (a) designate or create,  or increase the authorized or
                  issued amount of, any class or series of shares  ranking prior
                  to the Series C Preferred  Shares with  respect to the payment
                  of  distributions or rights upon  liquidation,  dissolution or
                  winding-up or reclassify any authorized  shares of the General
                  Partner Entity into any such shares,  or create,  authorize or
                  issue  any  obligations  or  security   convertible   into  or
                  evidencing  the  right  to  purchase  any  such  shares;   (b)
                  designate  or create,  or increase  the  authorized  or issued
                  amount of,  any  Parity  Preferred  Shares or  reclassify  any
                  authorized  shares of the General Partner Entity into any such
                  shares,  or  create,  authorize  or issue any  obligations  or
                  security  convertible into or evidencing the right to purchase
                  any such  shares,  but only to the  extent  that  such  Parity
                  Preferred  Shares are issued to an  Affiliate  of the  General
                  Partner Entity;  (c) amend,  alter or repeal the provisions of
                  the Declaration of Trust  (including the Series C Designation)
                  or bylaws of the General  Partner  Entity,  whether by merger,
                  consolidation   or  otherwise,   that  would   materially  and
                  adversely  affect the  powers,  special  rights,  preferences,
                  privileges or voting power of the Series C Preferred Shares or
                  the holders of the Series C  Preferred  Shares or the Series C
                  Preferred Units;  PROVIDED,  HOWEVER, that any increase in the
                  amount of authorized  preferred shares of beneficial  interest
                  of the General  Partner  Entity  ("PREFERRED  SHARES")  or the
                  creation or issuance of any other series or class of Preferred
                  Shares, or  any increase in the amount of authorized shares of
                  each class or  series, in each case  ranking either (1) junior
                  to the Series C Preferred Shares with respect  to  the payment
                  of  distributions   and   the  distribution   of  assets  upon
                  liquidation,  dissolution  or  winding-up, or (2) on a  parity
                  with  the  Series C  Preferred  Shares   with  respect  to the
                  payment of distributions  or  the  distribution of assets upon
                  liquidation,   dissolution  or  winding-up  to the extent such
                  Preferred Shares are not issued to an Affiliate of the General
                  Partner  Entity,  shall  not  be  deemed  to   materially  and
                  adversely  affect  such  rights,  preferences,  privileges  or
                  voting powers.

         SECTION 17.10 NO CONVERSION RIGHTS

                  The holders of the Series C Preferred Units shall not have any
         rights to convert  such shares into shares of any other class or series
         of  shares  or into any  other  securities  of,  or  interest  in,  the
         Partnership.

         SECTION 17.11 NO SINKING FUND

                  No sinking fund shall be  established  for the  retirement  or
         redemption of Series C Preferred  Units."

<PAGE>    56
                  11.  EXHIBIT B,  PARAGRAPH 3.
         The words "and XVII" are  inserted  after the word "XVI" in Paragraph 3
         of Exhibit B of the Agreement.

                  12.  EXHIBIT A. The  Agreement is hereby  amended by adding to
         Exhibit  A of said  Agreement  the  addendum  to  Exhibit  A  presently
         attached  hereto  and made a part  hereof,  so that all  references  to
         "Exhibit  A" in the  Agreement  shall be  deemed  to be  references  to
         Exhibit A which  shall  include  the  addendum  to  Exhibit A  attached
         hereto.

                  13.  FULL  FORCE  AND  EFFECT.  Except  as   amended   by  the
         provisions hereof, the Agreement, as previously  amended,  shall remain
         in full  force and  effect in  accordance  with its terms and is hereby
         ratified, confirmed and  reaffirmed by the undersigned for all purposes
         and in all respects.

                  14.  SUCCESSORS/ASSIGNS.  This Amendment shall be binding upon
         and shall  inure to the benefit of the parties hereto, their respective
         legal representatives, successors and assigns.

                  15.  COUNTERPARTS.    This   Amendment  may   be  executed  in
         counterparts,  all of which  together  shall constitute  one  agreement
         binding  on  all  the  parties  hereto,  notwithstanding  that all such
         parties are not signatories to the original or the same counterpart.

                        (SPACE LEFT INTENTIONALLY BLANK)

<PAGE>    57

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

                                GENERAL PARTNER:

                                CPT-GP, INC.

                                By:_____________________________________________
                                      Name:
                                      Title:

                                CAMDEN PROPERTY TRUST, for purposes  of Sections
                                8.5.C, 17.5.A and 17.9

                                By:_____________________________________________
                                      Name:
                                      Title:

                     ***SIGNATURES CONTINUED ON NEXT PAGE***

<PAGE>    58
                                ADDITIONAL LIMITED PARTNERS:

                                EDGEWATER EQUITY, INC.

                                By:_____________________________________________
                                Name:___________________________________________
                                Title:__________________________________________

                                 EDGEWATER EQUITY PARTNERS, L.P.

                                 By:      WSW Capital, Inc., its general partner

                                      By:_______________________________________
                                      Name:_____________________________________
                                      Title:____________________________________

<PAGE>    59

                                    EXHIBIT A

                                                                  Series C
                                                                  Preferred
NAME AND ADDRESS OF PARTNERS:                                       UNITS
-----------------------------                                   ------------
LIMITED PARTNERS:
Edgewater Equity, Inc.                                             200,000
c/o DLJ Asset Management Group
277 Park Avenue
New York, New York  10172
Attention: Peter Gaudet
Edgewater Equity Partners, L.P.                                    320,000
c/o DLJ Asset Management Group
277 Park Avenue
New York, New York  10172
Attention: Peter Gaudet

TOTAL                                                              520,000
                                                                ============

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