Document:

<PAGE>
                                                                    EXHIBIT 10.1

                                                                     [Execution]

                 AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT

         AMENDMENT, dated as of September ___, 2002, by and among ICO Worldwide,
Inc., a Texas corporation ("Worldwide"), Wedco, Inc., a New Jersey corporation
("Wedco"), and Bayshore Industrial Inc., a Texas corporation ("Bayshore", and
together with Worldwide and Wedco, each individually a "Borrower" and
collectively, "Borrowers"), ICO, Inc., a Texas corporation ("Parent"), ICO
Polymers, Inc., a Delaware corporation ("Polymers"), Wedco Technology, Inc., a
New Jersey corporation ("Wedco Tech"), Wedco Petrochemical, Inc., a Delaware
corporation ("Wedco Petro") and ICO Technology, Inc., a Delaware corporation
("ICO Tech", and together with Parent, Polymers, Wedco Tech and Wedco Petro each
individually a "Guarantor" and collectively, "Guarantors"), and ICO P&O, Inc., a
Delaware corporation ("P&O"), and ICO Global Services, Inc., a Delaware
corporation ("Global"), and Congress Financial Corporation (Southwest), a Texas
corporation ("Lender").

                                   WITNESSETH:

         WHEREAS, Lender and Borrowers have entered into financing arrangements
pursuant to which Lender may make loans and advances and provide other financial
accommodations to Borrowers as set forth in the Loan and Security Agreement,
dated as of April 9, 2002, among Lender, Borrowers, Guarantors, P&O and Global
(as amended hereby and as the same may hereafter be further amended, modified,
supplemented, extended, renewed, restated or replaced, the "Loan Agreement", and
together with all agreements, documents and instruments at any time executed
and/or delivered in connection therewith or related thereto, as from time to
time amended and supplemented, collectively, the "Financing Agreements").

         WHEREAS, Parent, Global, Worldwide, ICO Worldwide Tubular Services Pte
Ltd, a corporation organized under the laws of Singapore ("Tubular"), The
Innovation Company, S.A. de C.V., a corporation organized under the laws of
Mexico ("Innovation", together with Parent, Global, Worldwide and Tubular,
"Sellers" and each individually, a "Seller") and Varco International, Inc., a
Delaware corporation ("Varco"), Varco, L.P., a Delaware limited partnership ("US
Buyer"), Varco Coating Ltd., a corporation organized under the laws of Canada
("Canadian Buyer" and together with Varco and US Buyer, collectively "Buyers"
and each individually, a "Buyer") have agreed that Buyers will purchase the
Oilfield Assets (as hereinafter defined) under the terms and conditions of the
Oilfield Sale Agreements (as hereinafter defined); and

         WHEREAS, Worldwide will be converted to a Texas limited partnership
named ICO Worldwide LP ("Worldwide LP") and Worldwide LP will assume all of the
obligations and liabilities of Worldwide; and

         WHEREAS, Borrowers and Guarantors have requested that Lender consent to
the sale of the Oilfield Assets to Buyer and consent to the conversion and
assumption by Worldwide LP as aforesaid and agree to certain amendments to the
Loan Agreement in connection therewith; and

                                       1
<PAGE>
         WHEREAS, Lender is willing to provide such consents and agree to such
amendments, subject to the terms and conditions herein; and

         WHEREAS, by this Amendment No. 1, Lender, Borrowers and Guarantors
desire and intend to evidence such consents and amendments.

         NOW THEREFORE, in consideration of the foregoing and the mutual
agreements and covenants contained herein, the parties hereto agree as follows:

          1.  Definitions.

              a.  Amendments to Definitions.

                  i.   Sections 1.4(a), (b), and (c) of the Loan Agreement are
                       hereby deleted in their entirety and replaced with the
                       following:

<Table>
<Caption>
                                                                          Applicable      Applicable
                                                                          Prime Rate    Eurodollar Rate
          Excess Availability                    Leverage Ratio             Margin          Margin
-------------------------------------    -----------------------------    ----------    ---------------
<S>         <C>                          <C>                                  <C>           <C>
(a)         Greater than or equal to     2.00 to 1.00 or less                 1/4%          2 1/4%
            $10,000,000

(b)         Greater than or equal to     Greater than 2.00 to 1.00 but        1/2%          2 1/2%
            $5,000,000 and less than     equal to or less than 3.00 to
            $9,999,999                   1.00

(c)         Less than $4,999,999         Greater than 3.00 to 1.00            3/4%          2 3/4%
</Table>

              ii. Section 1.51 of the Loan Agreement is hereby amended by
deleting the reference to "$10,000,000" contained therein and replacing it with
the following: "$6,000,000".

              iii. All references to the term "Maximum Credit" in the Loan
Agreement and any of the other Financing Agreements and each such reference is
hereby amended to mean $15,000,000.

              b. Additional Definitions. As used herein, the following terms
shall have the meanings given to them below, and the Loan Agreement and the
other Financing Agreements are hereby amended to include, in addition to and not
in limitation of, the following definitions:

              i. "Amendment No. 1" shall mean this Amendment No. 1 to Loan and
Security Agreement by and among Lender, Borrowers, Guarantors, P&O and Global,
as the same now exists or may hereafter be amended, modified, supplemented,
extended, renewed, restated or replaced.

              ii. "ICO Canada Shares" shall mean the outstanding shares of
capital stock of ICO Shearer Inc., a corporation organized under the laws of
Canada.

                                       2
<PAGE>

              iii. "Interest Coverage Ratio" shall mean, at the end of any
fiscal quarter, the ratio computed for the period consisting of such fiscal
quarter of (A) EBITDA for such fiscal quarter (excluding non-cash charges for
fixed asset and goodwill write downs) to (B) the sum of the Interest Expense for
such fiscal quarter plus preferred dividends paid during such fiscal quarter.

              iv. "Oilfield Assets" shall mean, collectively, (A) all of the
assets and properties of Sellers relating to the oilfield services business of
Sellers and acquired by US Buyer pursuant to the Oilfield Sale Agreements
described on Exhibit A hereto and (B) the ICO Canada Shares.

              v. "Oilfield Asset Sale Proceeds" shall mean all of the proceeds
payable to Buyers from Sellers under the Oilfield Sale Agreements.

              vi. "Oilfield Sale Agreements" shall mean, collectively, the
Purchase Agreement, dated as of July 2, 2002, by and among Buyers and Sellers
and all related agreements, documents and instruments, as the same now exist or
may hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced.

              vii. "Oilfield Sale Closing Date" shall mean the date of the
closing of the sale of the Oilfield Assets by Sellers to Buyers pursuant to the
Oilfield Sale Agreements.

              viii. "P&O Account" shall mean account no. 020011181000 in the
name of P&O maintained at Wells Fargo Bank Texas, N.A., 1000 Louisiana, Suite
630, Houston, Texas 77002.

              ix. "P&O Permitted Investments" shall mean any of the following:
(1) an investment by P&O (by loan, capital contribution, dividend or otherwise)
in any person or any purchase of the Capital Stock or Indebtedness or all or a
substantial part of the assets or property of any person, or the formation or
acquisition of any Subsidiary, to the same extent and subject to the same terms
and conditions as a Borrower may make such investments or such purchases or form
or acquire any Subsidiary, with such terms and conditions applicable to P&O in
all respects instead, as set forth in Sections 9.10(a), 9.10(b), 9.10(c) and
9.10(d) of the Loan Agreement, except that in no event shall the amount of the
Oilfield Asset Sale Proceeds used in any one such transaction exceed $5,000,000
or for all of such transactions in the aggregate exceed $20,000,000, except as
Lender may otherwise agree; (2) any investment in cash and Cash Equivalents
maintained in the P&O Account; (3) the repurchase of Senior Notes in accordance
with the terms of Section 9.9(c)(vi) of the Loan Agreement with the Oilfield
Asset Sale Proceeds; (4) payments by P&O for the working capital of Borrowers or
Guarantors, including the payment of federal and state income taxes, in the
ordinary course of the business of Borrowers or Guarantors as conducted on the
date hereof (but after giving effect to the sale of the Oilfield Assets) and (5)
such other investments as may be acceptable to Lender.

                                       3
<PAGE>

          c. Interpretation. For purposes of this Amendment No. 1, unless
otherwise defined herein, all terms used herein, including, but not limited to,
those terms used and/or defined in the recitals above, shall have the respective
meanings assigned to such terms in the Loan Agreement.

      2. Consent to Asset Sale and Conversion of Worldwide. Subject to the terms
and conditions contained herein, Lender hereby consents to:

          a. the sale by Sellers to Buyers of the Oilfield Assets pursuant to
the terms of the Oilfield Sale Agreements as in effect on the date hereof,
provided, that the cash proceeds received by Sellers in respect thereof (net of
expenses in connection with such sale) shall be not less than $117,000,000; and

          b. the conversion of Worldwide from a Texas corporation to Worldwide
LP pursuant to Article 5.17 of the Texas Business Corporation Act (the
"Conversion") with Worldwide OP, L.L.C., a Delaware limited liability company
(the sole member of which is Global), as its General Partner and Worldwide LP,
L.L.C., a Delaware limited liability company (the sole member of which is
Global), as its limited partner, such conversion to be effective on or prior to
the Oilfield Sale Closing Date.

      3.  Assumption and Adoption.

          a. Effective upon the Conversion, Worldwide LP hereby ratifies,
assumes, adopts and agrees to be bound by the Financing Agreements to which
Worldwide is party. Worldwide LP hereby assumes the payment, discharge,
satisfaction and performance of all Obligations of Worldwide to Lender, and
Worldwide LP hereby acknowledges, confirms and agrees that, contemporaneously
with the Conversion, Lender's security interests in and the liens upon the
assets and properties to which Worldwide LP shall succeed pursuant to the
Conversion, and such security interests and liens and their perfection and
priority, shall continue in all respects in full force and effect. Worldwide LP
ratifies, restates, affirms and confirms all of the terms and conditions of the
Financing Agreements to which Worldwide is a party, as amended pursuant hereto,
and Worldwide LP agrees to be fully bound by the terms of the Financing
Agreements to which Worldwide is a party as if it were the original signatory
thereto.

          b. Without limiting the generality of the foregoing, the Conversion
shall in no way limit, impair or adversely affect the Obligations of Worldwide
LP or any other Borrower or Guarantor to Lender, howsoever arising, or any
security interests or liens with respect to the assets of Worldwide LP acquired
pursuant to the Conversion or any security interests or liens with respect to
the assets of any other Borrower or Guarantor in favor of Lender.

      4. Release Documents. Upon the satisfaction of each of the conditions set
forth in Section 17 and solely to the extent such items to be released
constitute Oilfield Assets sold by Sellers to Buyers pursuant to the Oilfield
Sale Agreements as in effect on the date hereof, Lender shall, at Borrower's
expense, (a) arrange for the delivery of Uniform Commercial Code partial
releases in respect of the Oilfield Assets covered by the UCC financing
statements previously filed by

                                       4
<PAGE>
Lender, as secured party, against Worldwide, as debtor, in the appropriate
jurisdiction, (b) execute and deliver a partial release, in form and substance
satisfactory to Lender, with respect to the security interest of Lender in (i)
the trademarks pursuant to the Trademark Collateral Assignment and Security
Agreement, dated as of April 9, 2002, by Worldwide in favor of Lender and (ii)
the patents pursuant to the Patent Collateral Assignment and Security Agreement,
dated as of April 9, 2002, by Worldwide in favor of Lender for filing with the
US Patent and Trademark Office and (c) execute and deliver a release of the
Mortgage.

      5.  Loans.  Section 2.l(c)(iii) of the Loan Agreement is hereby amended by
deleting the reference to "$10,000,000" contained therein and replacing it with
the following: "$6,000,000".

      6.  Unused Line Fee.  Sections 3.2(c)(i), (ii) and (iii) of the Loan
Agreement are hereby deleted in their entirety and replaced with the following:

<Table>
<Caption>
                                                                            Unused Line Fee
         Excess Availability                       Leverage Ratio              Percentage
---------------------------------   -----------------------------------     ---------------
<S>      <C>                        <C>                                           <C>
(i)      Greater than or equal to   2.00 to 1.00 or less                          3/8%
         $10,000,000

(ii)     Greater than or equal to   Greater than 2.00 to 1.00 but equal           3/8%
         $5,000,000 and less than   to or less than 3.00 to 1.00
         $9,999,999

(iii)    Less than $4,999,999       Greater than 3.00 to 1.00                     1/2%
</Table>

      7. Additional Conditions Precedent. In addition to, and not in limitation
of, the conditions precedent to Lender making any Loans and/or providing any
Letter of Credit Accommodations to Borrowers set forth in Section 4.2 of the
Loan Agreement, each of the following is an additional condition precedent to
Lender making the Loans and/or providing the Letter of Credit Accommodations:

          a. the amount of the value of the assets held in the P&O Account shall
be less than $1,000,000; and

          b. P&O shall not have used any of the proceeds from the sale of the
Oilfield Assets held in the P&O Account other than to make a P&O Permitted
Investment.

       8.  Collection of Accounts.  Section 6.3(b)(i) of the Loan Agreement is
hereby amended by deleting the reference to "$15,000,000" contained therein and
replacing it with the following: "$5,000,000".

       9.  Excess Availability for Collateral Reporting, Etc.  Sections 7.1,
9.9, 9.10 and 9.11 of the Loan Agreement are hereby amended by deleting each
reference to "$7,500,000" contained therein and replacing each of them with the
following: "$3,000,000".

                                       5
<PAGE>

       10. Indebtedness.  Section 9.9(b) of the Loan Agreement is hereby amended
by deleting the reference to "$5,000,000" contained therein and replacing it
with the following: "$7,500,000".

       11. Dividends and Redemptions.  Section 9.11 of the Loan Agreement is
hereby amended by adding the following new Section 9.11(e) at the end thereof:

               "(e) Borrowers and Guarantors may repurchase or redeem any shares
           of any class of Capital Stock; provided, that,

                    (i) as of the date of such repurchase or redemption and
                after giving effect thereto, no Default or Event of Default
                shall exist or have occurred and be continuing,

                    (ii) as of the date of such repurchase or redemption and
                after giving effect thereto, the aggregate amount of the Excess
                Availability of Borrowers shall have been not less than
                $3,000,000 for each of the immediately preceding ten (10)
                consecutive days and the aggregate amount of the Excess
                Availability of Borrowers shall be not less than $3,000,000,

                    (iii) in no event shall the proceeds of the Loans or the
                loans under any Intercompany Credit Facility be used to make any
                payment in respect of such repurchase or redemption, unless as
                of the date thereof the P&O Unrestricted Cash shall be less than
                $10,000,000,

                    (iv) such repurchase or redemption shall not violate any law
                or regulation or the terms of any indenture, agreement or
                undertaking to which any Borrower or Obligor or its or their
                property are bound,

                    (v) such repurchase or redemption shall be paid out of
                legally available funds therefor,"

      12. Financial Covenants. Section 9.17 of the Loan Agreement is hereby
deleted in its entirety and replaced with the following:

          "9.17 Interest Coverage Ratio. At any time that the aggregate amount
          of the Excess Availability of Borrowers is less than $3,000,000, the
          Interest Coverage Ratio for Borrowers (on a combined basis) as of the
          end of any fiscal quarter shall have been not less than 1.5 to 1."

      13. Events of Default. For purposes of Section 10.1 of the Loan Agreement,
all references to the term "Obligor" contained therein shall include, in
addition and not in limitation, P&O.

      14. Change in Business. P&O does not have, and shall not acquire, any
assets or property and does not have, and shall not have or engage in, any
operations or the conduct of any

                                       6
<PAGE>
business, except for the assets held in the P&O Account and Indebtedness owing
to it pursuant to the Intercompany Credit Facilities provided by P&O to Global
and the Indebtedness of P&O arising under the Senior Notes.

      15. Transfer of Oilfield Asset Sale Proceeds to P&O. Subject to the terms
and conditions contained herein, Lender hereby consents to the transfer of the
Oilfield Asset Sale Proceeds by Worldwide to P&O so long as a. such funds are
transferred to the P&O Account, b. such funds are transferred other than as a
payment under the Intercompany Credit Facilities and c. P&O shall not transfer,
assign or otherwise dispose of any of its right, title or interest in or to the
P&O Account.

      16. Additional Representations, Warranties and Covenants. Each Borrower
and Guarantor, and each of P&O and Global, represents, warrants and covenants
with and to Lender as follows, which representations, warranties and covenants
are continuing and shall survive the execution and delivery hereof, and the
truth and accuracy of, or compliance with each, together with the
representations, warranties and covenants in the other Financing Agreements,
being a continuing condition of the making of Loans by Lender to Borrowers:

          a. The security interests in and liens of Lender in and upon all of
the assets of Borrowers and Guarantors (other than the Oilfield Assets) are and
shall continue to be in full force and effect, including, but not limited to,
all amounts at any time payable to Parent or any of its subsidiaries pursuant to
and in connection with the sale of the Oilfield Assets and the Oilfield Sale
Agreements, and all rights, benefits and remedies of Parent and its Subsidiaries
thereunder.

          b. The Oilfield Asset Sale Proceeds, net of all costs, expenses, fees
and commissions in connection therewith shall be deposited only in the P&O
Account.

          c. Lender has received a true, correct and complete copy of the
Oilfield Sale Agreements as executed by the parties thereto, together with all
schedules and exhibits thereto.

          d. Worldwide GP, L.L.C., a Delaware limited liability company (the
sole member of which is Global), is and shall be the sole general partner of
Worldwide LP and Worldwide LP, L.L.C., a Delaware limited liability company (the
sole member of which is Global), is and shall be the sole limited partner of
Worldwide LP and the sole member of each of Worldwide, GP L.L.C. and Worldwide
LP, L.L.C. is and shall be Global. Such membership interests of Global shall be
held by Global free and clear of any security interests, pledges, liens, charges
or other encumbrances of any nature whatsoever.

          e. No Event of Default exists or has occurred as of the date of this
Amendment No. 1.

          f. This Amendment No. 1 has been duly executed and delivered by each
Borrower and Guarantor and is in full force and effect as of the date hereof and
the agreements and obligations of each Borrower and Guarantor contained herein
constitute legal, valid and binding

                                       7
<PAGE>
obligations of each Borrower and Guarantor enforceable against each of them in
accordance with their respective terms.

          g. No action of, or filing with, or consent or any governmental or
public body or authority, and no approval or consent of any other party, is or
will be required to authorize, or is or will be otherwise required in connection
with, the execution, delivery and performance of this Amendment No. 1.

          h. None of the transactions contemplated by this Amendment No. 1
violate or will violate any applicable law or regulation, or do or will give
rise to a default or breach under any agreement to which any Borrower or
Guarantor is a party or by which any property of any Borrower or Guarantor is
bound.

      17. Conditions Precedent. Except for the provisions of Section 2 relating
to the Conversion, which are operative as of the date first written above, the
effectiveness of the amendments and consents contained herein shall be subject
to the satisfaction of each of the following, in a manner satisfactory to Lender
and its counsel:

          a. Lender shall have received this Amendment No. 1 duly authorized,
executed and delivered by the parties hereto;

          b. on or before the date hereof, Lender shall have received a copy of
the Oilfield Sale Agreements (including all schedules and exhibits), which shall
be satisfactory in form and substance to Lender, duly authorized, executed and
delivered by the parties thereto (provided, that, Lender hereby confirms that
all of the Oilfield Sale Agreements delivered to Lender or its counsel prior to
the September 3, 2002 are in form and substance satisfactory to Lender);

          c. no Event of Default, or event, act or condition which with notice
or passage of time or both would constitute an Event of Default, shall exist or
have occurred, and

          d. the Oilfield Sale Closing Date shall have occurred and shall have
occurred on or before September 30, 2002, or such later date as Lender may agree
to in writing.

      18. Effect of this Amendment.  Except as expressly set forth herein, no
other amendments, consents, changes or modifications to the Financing Agreements
are intended or implied, and in all other respects the Financing Agreements are
hereby specifically ratified, restated and confirmed by all parties hereto as of
the effective date hereof and Borrowers and Guarantors shall not be entitled to
any other or further amendment or consent by virtue of the provisions of this
Amendment No. 1 or with respect to the subject matter of this Amendment No. 1.
To the extent of conflict between the terms of this Amendment No. 1 and the
other Financing Agreements, the terms of this Amendment No. 1 shall control. The
Loan Agreement and this Amendment No. 1 shall be read and construed as one
agreement.

                                       8
<PAGE>
      19. Further Assurances. The parties hereto shall execute and deliver such
additional documents and take such additional action as may be necessary or
desirable to effectuate the provisions and purposes of this Amendment No. 1.

      20. Governing Law. The validity, interpretation and enforcement of this
Amendment No. 1 and the other Financing Agreements and any dispute arising out
of the relationship between the parties hereto whether in contract, tort, equity
or otherwise, shall be governed by the internal laws of the State of Texas but
excluding any principles of conflicts of law or other rule of law that would
cause the application of the law of any jurisdiction other than the laws of the
State of Texas.

      21. Binding Effect This Amendment No. 1 shall be binding upon and inure to
the benefit of each of the parties hereto and their respective successors and
assigns.

      22. Headings. The headings listed herein are for convenience only and do
not constitute matters to be construed in interpreting this Amendment No. 1.

      23. Counterparts. This Amendment No. 1 may be executed in any number of
counterparts, but all of such counterparts shall together constitute but one and
the same agreement. In making proof of this Amendment No. 1, it shall not be
necessary to produce or account for more than one counterpart thereof signed by
each of the parties hereto. Delivery of an executed counterpart of this
Amendment No. 1 by telefacsimile shall have the same force and effect as
delivery of an original executed counterpart of this Amendment No. 1. Any party
delivering an executed counterpart of this Amendment No. 1 by telefacsimile also
shall deliver an original executed counterpart of this Amendment No. 1, but the
failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Amendment No. 1 as to such
party or any other party.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       9
<PAGE>

       IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1
to be duly executed and delivered by their authorized officers as of the day and
year first above written.

                                            CONGRESS FINANCIAL CORPORATION
                                            (SOUTHWEST)

                                            By:    /s/ Mark Galovic
                                               ---------------------------------
                                            Title: Vice President
                                                  ------------------------------

                                            ICO WORLDWIDE LP, successor to
                                            ICO WORLDWIDE, INC.
                                            By: Worldwide GP, L.L.C.,
                                                  its General Partner

                                            By:    /s/ Jon C. Biro
                                               ---------------------------------
                                            Title: Manager
                                                  ------------------------------

                                            WEDCO, INC.

                                            By:    /s/ Jon C. Biro
                                               ---------------------------------
                                            Title: Treasurer & CFO
                                                  ------------------------------

                                            BAYSHORE INDUSTRIAL, INC.

                                            By:    /s/ Jon C. Biro
                                               ---------------------------------
                                            Title: Treasurer & CFO
                                                  ------------------------------

                                            WEDCO TECHNOLOGY, INC.

                                            By:    /s/ Jon C. Biro
                                               ---------------------------------
                                            Title: Treasurer & CFO
                                                  ------------------------------

                       [SIGNATURES CONTINUED ON NEXT PAGE]

                                       10
<PAGE>

                    [SIGNATURES CONTINUED FROM PREVIOUS PAGE]

                                            WEDCO PETROCHEMICAL, INC.

                                            By:    /s/ Jon C. Biro
                                               ---------------------------------
                                            Title: Treasurer & CFO
                                                  ------------------------------

                                            ICO POLYMERS, INC.

                                            By:    /s/ Jon C. Biro
                                               ---------------------------------
                                            Title: Treasurer & CFO
                                                  ------------------------------

                                            ICO, INC.

                                            By:    /s/ Jon C. Biro
                                                --------------------------------
                                            Title: CFO & Treasurer
                                                  ------------------------------

                                            ICO TECHNOLOGY, INC.

                                            By:    /s/ Jon C. Biro
                                               ---------------------------------
                                            Title: President, CFO & Treasurer
                                                  ------------------------------

AGREED:

ICO & P&O, INC.

By:    /s/ Jon C. Biro
   --------------------------------
Title: Controller, Secretary,
       Treasurer
      -----------------------------

ICO GLOBAL SERVICES, INC.

By:    /s/ Kenneth Miller
   --------------------------------
Title: President
     ------------------------------

                                       11<PAGE>
                                                                   EXHIBIT 4.05

                              AMENDED AND RESTATED
                          REGISTRATION RIGHTS AGREEMENT

         This AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT, dated June 5,
2002 (the "Agreement"), is entered into by and among Crescent Real Estate
Equities Limited Partnership, a Delaware limited partnership (the "Company"),
and Crescent Finance Company ("Crescent Finance" and, together with the Company,
the "Issuers") and Richard E. Rainwater, Darla D. Moore, Courtney E. Rainwater,
Matthew J. Rainwater, R. Todd Rainwater, Rainwater, Inc. and The Richard E.
Rainwater Charitable Remainder Unitrust No. 2 (together with their successors or
assigns, the "Initial Purchasers").

                                    RECITALS

         WHEREAS, the Issuers and the Initial Purchasers entered into a
Registration Rights Agreement, dated April 10, 2002 (the "Initial Agreement"),
providing the Initial Purchasers with certain registration rights in connection
with their purchase of $50,000,000 aggregate principal amount of the Issuers'
9.25% Senior Notes due 2009 (the "Securities"). Capitalized terms used herein
without definition shall have the meanings given to such terms in the Initial
Agreement.

         WHEREAS, the Initial Agreement incorrectly references a Purchase
Agreement, dated April 10, 2002, by and among the Issuers and the Initial
Purchasers (the "Purchase Agreement"), which does not exist.

         WHEREAS, the Issuers and the Initial Purchasers desire to amend and
restate the Initial Agreement as provided herein solely in order to remove all
references to the Purchase Agreement.

                                   AGREEMENTS

         NOW, THEREFORE, for and in consideration of the mutual promises and
covenants set forth herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties to this
Agreement hereby agree as follows:

         1. Definitions. As used in this Agreement, the following terms shall
have the following meanings:

         "Business Day" shall mean any day that is not a Saturday, Sunday or
other day on which commercial banks in Texas are authorized or required by law
to remain closed.

         "Closing Date" shall mean April 15, 2002.

         "Company" shall have the meaning set forth in the preamble and shall
also include the Company's successors.

         "Crescent Finance" shall have the meaning set forth in the preamble and
shall also include Crescent Finance's successors.

         "Effectiveness Period" shall have the meaning set forth in Section 2(a)
hereof.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time.

<PAGE>
                                      -2-

         "Holders" shall mean the Initial Purchasers, for so long as they own
any Registrable Securities, and each of their successors, assigns and direct and
indirect transferees who become registered owners of Registrable Securities
under the Indenture.

         "Indenture" shall mean the Indenture relating to the Securities dated
as of April 15, 2002 among the Issuers and UMB Bank, N.A., as trustee, and as
the same may be amended from time to time in accordance with the terms thereof.

         "Initial Purchasers" shall have the meaning set forth in the preamble.

         "Majority Holders" shall mean the holders of a majority of the
aggregate principal amount of outstanding Registrable Securities then-held by
Holders.

         "Person" shall mean an individual, partnership, limited liability
company, corporation, trust or unincorporated organization, or a government or
agency or political subdivision thereof.

         "Prospectus" shall mean the prospectus included in a Shelf Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including a prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to such prospectus, including post-effective
amendments, and in each case including any document incorporated by reference
therein.

         "Purchase Agreement" shall have the meaning set forth in the preamble.

         "Registrable Securities" shall mean the Securities; provided that the
Securities shall cease to be Registrable Securities (i) when a Shelf
Registration Statement with respect to such Securities has been declared
effective under the Securities Act and such Securities have been disposed of
pursuant to such Shelf Registration Statement, (ii) when such Securities are
eligible to be sold pursuant to Rule 144(k) (or any similar provision then in
force, but not Rule 144A) under the Securities Act or (iii) when such Securities
cease to be outstanding.

         "Registration Expenses" shall mean any and all expenses incident to
performance of or compliance by the Company with this Agreement, including
without limitation: (i) all SEC, stock exchange or National Association of
Securities Dealers, Inc. registration and filing fees, (ii) all fees and
expenses incurred in connection with compliance with state securities or blue
sky laws (including reasonable fees and disbursements of counsel for any
underwriters or Holders in connection with blue sky qualification of any
Registrable Securities), (iii) all expenses of any Persons in preparing or
assisting in preparing, word processing, printing and distributing any Shelf
Registration Statement, any Prospectus and any amendments or supplements
thereto, any underwriting agreements, securities sales agreements or other
similar agreements and any other documents relating to the performance of and
compliance with this Agreement, (iv) all rating agency fees, (v) all fees and
disbursements relating to the qualification of the Indenture under applicable
securities laws, (vi) the fees and disbursements of the Trustee and its counsel,
(vii) the fees and disbursements of counsel for the Issuers and, in the case of
a Shelf Registration Statement, the reasonable fees and disbursements of one
counsel for the Holders (which counsel shall be selected by the Majority Holders
and which counsel may also be counsel for the Initial Purchasers) and (viii) the
fees and disbursements of the independent public accountants of the Company,
including the expenses of any special audits or "comfort" letters required by or
incident to the performance of and compliance with this Agreement, but

<PAGE>
                                      -3-

excluding fees and expenses of counsel to the underwriters (other than
reasonable fees and expenses set forth in clause (ii) above) or the Holders and
underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of Registrable Securities by a Holder.

         "SEC" shall mean the Securities and Exchange Commission.

         "Securities Act" shall mean the Securities Act of 1933, as amended from
time to time.

         "Shelf Registration Statement" shall mean a "shelf" registration
statement of the Company pursuant to the provisions of Section 2(a) hereof that
covers all the Registrable Securities (but no other securities unless approved
by the Holders whose Registrable Securities are to be covered by such Shelf
Registration Statement) on an appropriate form under Rule 415 under the
Securities Act, or any similar rule that may be adopted by the SEC, and all
amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and any document incorporated by reference
therein.

         "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, as
amended from time to time.

         "Trustee" shall mean the trustee with respect to the Securities under
the Indenture.

         "Underwritten Offering" shall mean an offering in which Registrable
Securities are sold to one or more underwriters for reoffering to the public.

         2. Registration Under the Securities Act. (a) The Issuers shall use
their reasonable best efforts to cause to be filed, as soon as practicable
following the sixtieth (60th) day after the Closing Date, but in no event prior
to filing of the Exchange Offer (as that term is defined in the Offering
Memorandum), a Shelf Registration Statement providing for the sale of all the
Registrable Securities by the Holders thereof and to have such Shelf
Registration Statement declared effective by the SEC, provided that, the Shelf
Registration Statement shall not be declared effective prior to the completion
of the Exchange Offer.

         The Issuers agree to use their reasonable best efforts to keep the
Shelf Registration Statement continuously effective until the earliest of (i)
the expiration of the period referred to in Rule 144(k) under the Securities Act
with respect to the Registrable Securities, (ii) the date on which all the
Registrable Securities covered by the Shelf Registration Statement have been
sold pursuant to the Shelf Registration Statement, or (iii) the date on which no
Registrable Securities are outstanding (the "Effectiveness Period"). The Issuers
further agree to supplement or amend the Shelf Registration Statement and the
related Prospectus if required by the rules, regulations or instructions
applicable to the registration form used by the Issuers for such Shelf
Registration Statement or by the Securities Act or by any other rules and
regulations thereunder for shelf registration or if reasonably requested by any
Holder to include information with respect to such Holder to facilitate sales of
such Holder's Registrable Securities, and to use their reasonable best efforts
to cause any such amendment to become effective and such Shelf Registration
Statement and Prospectus to become usable as soon as thereafter practicable. The
Issuers agree to furnish to the Holders of Registrable Securities copies of any
such supplement or amendment promptly after its being used or filed with the
SEC.

<PAGE>
                                      -4-

                  (b) The Issuers shall pay all Registration Expenses in
         connection with the registration pursuant to Section 2(a) hereof. Each
         Holder shall pay all underwriting discounts and commissions and
         transfer taxes, if any, relating to the sale or disposition of such
         Holder's Registrable Securities pursuant to the Shelf Registration
         Statement.

                  (c) A Shelf Registration Statement pursuant to Section 2(a)
         hereof will not be deemed to have become effective unless it has been
         declared effective by the SEC.

         In the event that the Shelf Registration Statement is not declared
effective on or prior to October 15, 2002 (the "Target Registration Date"), the
interest rate on the Registrable Securities will be increased by (i) 0.50% per
annum with respect to the first 90-day period immediately following the Target
Registration Date or (ii) if the Shelf Registration Statement is not declared
effective at the end of such 90-day period, by an additional 0.50% per annum, in
each case until the Shelf Registration Statement is declared effective by the
SEC or the Securities become freely tradable under the Securities Act, up to a
maximum of 1.00% per annum of additional interest.

         If the Shelf Registration Statement has been declared effective and
thereafter either ceases to be effective or the Prospectus contained therein
ceases to be usable at any time during the Effectiveness Period, and such
failure to remain effective or usable exists for more than 30 days (whether or
not consecutive) in any 12-month period, then the interest rate on the
Registrable Securities will be increased by 1.00% per annum commencing on the
31st day in such 12-month period and ending on such date that the Shelf
Registration Statement has again been declared effective or the Prospectus again
becomes usable.

         Notwithstanding the foregoing, if the Issuers shall request Holders of
Securities to provide information called for by this Agreement for inclusion in
the Shelf Registration Statement, the Securities owned by Holders who do not
deliver such information to the Issuers will not be entitled to an increase in
the interest rate on such Holder's Securities for so long as such Holder's
failure to provide such information continues.

                  (d) Without limiting the remedies available to the Initial
         Purchasers and the Holders, the Issuers acknowledge that any failure by
         the Issuers to comply with their obligations under Section 2(a) hereof
         may result in material irreparable injury to the Initial Purchasers or
         the Holders for which there is no adequate remedy at law, that it will
         not be possible to measure damages for such injuries precisely and
         that, in the event of any such failure, the Initial Purchasers or any
         Holder may obtain such relief as may be required to specifically
         enforce the Issuers' obligations under Section 2(a) hereof.

         3. Registration Procedures. In connection with their obligations
pursuant to Section 2(a) hereof, the Issuers shall as expeditiously as possible:

                  (a) prepare and file with the SEC a Shelf Registration
         Statement on the appropriate form under the Securities Act, which form
         (x) shall be selected by the Company, (y) shall be available for the
         sale of the Registrable Securities by the selling Holders thereof (z)
         shall comply as to form in all material respects with the requirements
         of the applicable form and include all financial statements required by
         the SEC to be filed therewith; and use their reasonable best efforts to
         cause such Shelf Registration Statement to become effective and remain
         effective for the applicable period in accordance with Section 2
         hereof;

<PAGE>
                                      -5-

                  (b) prepare and file with the SEC such amendments and
         post-effective amendments to such Shelf Registration Statement as may
         be necessary to keep such Shelf Registration Statement effective for
         the applicable period in accordance with Section 2 hereof and cause
         each Prospectus to be supplemented by any required prospectus
         supplement and, as so supplemented, to be filed pursuant to Rule 424
         under the Securities Act; and keep each Prospectus current during the
         period described in Section 4(3) of and Rule 174 under the Securities
         Act that is applicable to transactions by brokers or dealers with
         respect to the Registrable Securities;

                  (c) furnish to each Holder of Registrable Securities, to
         counsel for the Initial Purchasers, to counsel for such Holders and to
         each underwriter of an Underwritten Offering of Registrable Securities,
         if any, without charge, as many copies of each Prospectus, including
         each preliminary Prospectus, and any amendment or supplement thereto,
         in order to facilitate the public sale or other disposition of the
         Registrable Securities thereunder; and the Company consents to the use
         of such Prospectus and any amendment or supplement thereto in
         accordance with applicable law by each of the selling Holders of
         Registrable Securities and any such underwriters in connection with the
         offering and sale of the Registrable Securities covered by and in the
         manner described in such Prospectus or any amendment or supplement
         thereto in accordance with applicable law;

                  (d) use their reasonable best efforts to register or qualify
         the Registrable Securities under all applicable state securities or
         blue sky laws of such jurisdictions as any Holder of Registrable
         Securities covered by a Shelf Registration Statement shall reasonably
         request in writing by the time the applicable Shelf Registration
         Statement is declared effective by the SEC; cooperate with the Holders
         in connection with any filings required to be made with the National
         Association of Securities Dealers, Inc.; and do any and all other acts
         and things that may be reasonably necessary or advisable to enable each
         Holder to complete the disposition in each such jurisdiction of the
         Registrable Securities owned by such Holder; provided that the Company
         shall not be required to (i) qualify as a foreign corporation or other
         entity or as a broker or dealer in securities in any such jurisdiction
         where it would not otherwise be required to so qualify, (ii) file any
         general consent to service of process in any such jurisdiction or (iii)
         subject itself to taxation in any such jurisdiction if it is already
         not so subject;

                  (e) notify each Holder of Registrable Securities, counsel for
         such Holders and counsel for the Initial Purchasers promptly and, if
         requested by any such Holder or counsel, confirm such advice in writing
         (i) when a Shelf Registration Statement has become effective and when
         any post-effective amendment thereto has been filed and becomes
         effective, (ii) (A) of any request by the SEC or any state securities
         authority for amendments or (B) supplements to a Shelf Registration
         Statement and Prospectus or for additional information after the Shelf
         Registration Statement has become effective, (iii) of the issuance by
         the SEC or any state securities authority of any stop order suspending
         the effectiveness of a Shelf Registration Statement or the initiation
         of any proceedings for that purpose, (iv) if, between the effective
         date of a Shelf Registration Statement and the closing of any sale of
         Registrable Securities covered thereby, (A) the representations and
         warranties of the Issuers contained in any underwriting agreement,
         securities sales agreement or other similar agreement, if any, relating
         to an offering of such Registrable Securities cease to be true and
         correct in all material respects or (B) if the Issuers receive any
         notification with respect to the suspension of the qualification of the
         Registrable Securities for sale in any jurisdiction or the initiation
         of any proceeding

<PAGE>
                                      -6-

         for such purpose, (v) of the happening of any event during the period
         of the Shelf Registration Statement is effective that makes any
         statement made in such Shelf Registration Statement or the related
         Prospectus untrue in any material respect or that requires the making
         of any changes in such Shelf Registration Statement or Prospectus in
         order to make the statements therein not misleading and (vi) of any
         determination by the Issuers that a post-effective amendment to a Shelf
         Registration Statement would be appropriate;

                  (f) use its reasonable best efforts to obtain the withdrawal
         of any order suspending the effectiveness of a Shelf Registration
         Statement at the earliest possible moment and provide immediate notice
         to each Holder of the withdrawal of any such order;

                  (g) furnish to each Holder of Registrable Securities, without
         charge, at least one conformed copy of such Shelf Registration
         Statement and any post-effective amendment thereto (without any
         documents incorporated therein by reference or exhibits thereto, unless
         requested);

                  (h) cooperate with the selling Holders of Registrable
         Securities to facilitate the timely preparation and delivery of
         certificates representing Registrable Securities to be sold and not
         bearing any restrictive legends and enable such Registrable Securities
         to be issued in such denominations and registered in such names
         (consistent with the provisions of the Indenture) as the selling
         Holders may reasonably request at least one Business Day prior to the
         closing of any sale of Registrable Securities;

                  (i) upon the occurrence of any event contemplated by Section
         3(e)(v) and 3(e)(vi) hereof, use their reasonable best efforts to
         prepare and file with the SEC any required supplement or post-effective
         amendment to the Shelf Registration Statement or the related Prospectus
         or any document incorporated therein by reference or file any other
         required document so that, as thereafter delivered to purchasers of the
         Registrable Securities, such Prospectus will not contain any untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements therein, in the light of the circumstances under
         which they were made, not misleading; and the Issuers shall notify the
         Holders of Registrable Securities to suspend use of the Prospectus as
         promptly as practicable after the occurrence of such an event, and such
         Holders hereby agree to suspend use of the Prospectus until the Issuers
         have amended or supplemented the Prospectus to correct such
         misstatement or omission;

                  (j) a reasonable time prior to the filing of any Shelf
         Registration Statement, any Prospectus, any amendment to a Shelf
         Registration Statement or amendment or supplement to a Prospectus,
         provide copies of such document to the Initial Purchasers or Holders
         and their counsel and make such of the representatives of the Issuers
         as shall be reasonably requested by the Initial Purchasers or Holders
         or their counsel reasonably available for discussion of such document;
         and the Issuers shall not, at any time after initial filing of a Shelf
         Registration Statement, file any Prospectus, any amendment of or
         supplement to a Shelf Registration Statement or a Prospectus, of which
         the Initial Purchasers or Holders and their counsel shall not have
         previously been advised and furnished a copy and of which the Initial
         Purchasers or Holders or their counsel shall not have objected to
         within 10 Business Days of the date of receipt;

<PAGE>
                                      -7-

                  (k) obtain a CUSIP number for all Registrable Securities, as
         the case may be, not later than the effective date of a Shelf
         Registration Statement;

                  (l) cause the Indenture to be qualified under the Trust
         Indenture Act in connection with the registration of the Registrable
         Securities; cooperate with the Trustee and the Holders to effect such
         changes to the Indenture as may be required for the Indenture to be so
         qualified in accordance with the terms of the Trust Indenture Act; and
         execute, and use its reasonable best efforts to cause the Trustee to
         execute, all documents as may be required to effect such changes and
         all other forms and documents required to be filed with the SEC to
         enable the Indenture to be so qualified in a timely manner;

                  (m) make available for inspection by a representative of the
         Holders of the Registrable Securities (an "Inspector"), any underwriter
         participating in any disposition pursuant to such Shelf Registration
         Statement, and attorneys and accountants designated by the Holders, at
         reasonable times and in a reasonable manner, all pertinent financial
         and other records, documents and properties of the Issuers, and cause
         the respective officers, directors and employees of the Issuers to
         supply all information reasonably requested by any such Inspector,
         managing underwriter, attorney or accountant in connection with a Shelf
         Registration Statement; provided that if any such information is
         identified by the Issuers as being confidential or proprietary, each
         Person receiving such information shall take such actions as are
         reasonably necessary to protect the confidentiality of such information
         to the extent such action is otherwise not inconsistent with, an
         impairment of or in derogation of the rights and interests of any
         Inspector, Holder or underwriter);

                  (n) if reasonably requested by any Holder of Registrable
         Securities covered by a Shelf Registration Statement, promptly include
         in a Prospectus supplement or post-effective amendment such information
         with respect to such Holder to facilitate sales of Registrable
         Securities by such Holder and make all required filings of such
         Prospectus supplement or such post-effective amendment as soon as the
         Company has received notification of the matters to be incorporated in
         such filing; and

                  (o) use its reasonable best efforts to enter into such
         customary agreements and take all such other actions as are reasonably
         requested in connection therewith (including those requested by the
         Majority Holders of the Registrable Securities being sold) in order to
         expedite or facilitate the disposition of such Registrable Securities
         including, but not limited to, an Underwritten Offering, and in such
         connection, (i) to the extent possible, make such representations and
         warranties to the Holders and any underwriters of such Registrable
         Securities with respect to the business of the Issuers and the
         Company's subsidiaries, the Shelf Registration Statement, Prospectus
         and documents incorporated by reference or deemed incorporated by
         reference, if any, in each case, in form, substance and scope as are
         customarily made by issuers to underwriters in underwritten offerings
         and confirm the same if and when requested, (ii) obtain opinions of
         counsel to the Issuers (which opinions, in form, scope and substance,
         shall be reasonably satisfactory to the Majority Holders and the
         managing underwriters and their respective counsel) addressed to each
         selling Holder and underwriter of Registrable Securities, covering the
         matters customarily covered in opinions requested in underwritten
         offerings, (iii) obtain "comfort" letters from the independent
         certified public accountants of the Issuers (and, if necessary, any
         other certified public accountant of any subsidiary of the Issuers, or
         of any business acquired by the Issuers for which

<PAGE>
                                      -8-

         financial statements and financial data are or are required to be
         included in the Shelf Registration Statement) addressed to each selling
         Holder and underwriter of Registrable Securities, such letters to be in
         customary form and covering matters of the type customarily covered in
         "comfort" letters in connection with underwritten offerings and (iv)
         deliver such documents and certificates as may be reasonably requested
         by the Majority Holders of the Registrable Securities being sold or the
         underwriters, and which are customarily delivered in underwritten
         offerings, to evidence the continued validity of the representations
         and warranties of the Issuers made pursuant to clause (i) above and to
         evidence compliance with any customary conditions contained in an
         underwriting agreement.

         The Issuers may require each Holder of Registrable Securities to
furnish to the Issuers such information regarding such Holder and the proposed
disposition by such Holder of such Registrable Securities as the Issuers may
from time to time reasonably request in writing. The Issuers may exclude from
any Shelf Registration Statement the Registrable Securities of any Holder who
unreasonably fails to furnish such information within a reasonable time after
receiving such request. Each Holder as to which any Shelf Registration Statement
is effected is deemed to agree to furnish promptly (and in any event within 10
Business Days) to the Issuers all information required to be disclosed in order
to make the information previously furnished to the Issuers by the Holder not
materially misleading.

         Each Holder of Registrable Securities agrees that, upon receipt of any
notice from the Company of the happening of any event of the kind described in
Section 3(e)(ii)(A), 3(e)(iii), 3(e)(iv)(B) or 3(e)(v) hereof, such Holder will
forthwith discontinue disposition of Registrable Securities pursuant to a Shelf
Registration Statement until such Holder's receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 3(i) hereof or until
it is advised in writing (the "Advice") by the Company that the use of the
applicable Prospectus may be resumed, and, if so directed by the Company, such
Holder will deliver to the Company all copies in its possession, other than
permanent file copies then in such Holder's possession, of the Prospectus
covering such Registrable Securities that is current at the time of receipt of
such notice.

         If the Issuers shall give any such notice to suspend the disposition of
Registrable Securities pursuant to a Shelf Registration Statement, the Issuers
shall extend the Effectiveness Period by the number of days during the period
from and including the date of the giving of such notice to and including the
date when the Holders shall have received (i) copies of the supplemented or
amended Prospectus necessary to resume such dispositions or (ii) the Advice.

         Subject to Section 3(o), the Holders of at least $25 million in
aggregate principal amount of Registrable Securities covered by a Shelf
Registration Statement who desire to do so may sell such Registrable Securities
in an Underwritten Offering. In any such Underwritten Offering, underwriters
that will administer the offering will be selected by the Majority Holders of
the Registrable Securities included in such offering and shall be approved by
the Company, which approval shall not be unreasonably withheld. No Holder of
Registrable Securities may participate in any Underwritten Offering hereunder
unless such Holder (i) agrees to sell such Holder's Registrable Shares on the
basis provided in any underwriting arrangements approved by the Persons entitled
hereunder to approve such arrangements, and (ii) completes and executed all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents required in connection with such Underwritten Offering.

<PAGE>
                                      -9-

         4. Indemnification and Contribution. (a) The Issuers jointly and
severally agree to indemnify and hold harmless each Initial Purchaser, each
Holder, the officers and directors of each Initial Purchaser and each Holder and
each Person, if any, who controls any Initial Purchaser or any Holder within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act,
from and against any and all losses, claims, damages and liabilities (including,
without limitation, reasonable legal fees and other expenses incurred in
connection with any suit, action or proceeding or any claim asserted), arising
out of any untrue statement or alleged untrue statement of a material fact
contained in the Shelf Registration Statement or any Prospectus, or arising out
of any omission or alleged omission to state therein a material fact required to
be stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading, except
insofar as such losses, claims, damages or liabilities (i) arise out of any
untrue statement or omission or alleged untrue statement or omission made in
reliance upon and in conformity with any information relating to any Initial
Purchaser or any Holder furnished to the Issuers in writing by such Initial
Purchaser or Holder expressly for use therein or (ii) would not have arisen if
such Initial Purchaser or Holder had not failed to deliver a prospectus, or
amended or supplemental prospectus.

                  (b) Each Holder agrees, severally and not jointly, to
         indemnify and hold harmless the Issuers and the other selling Holders,
         their respective affiliates, the officers and directors of the Issuers
         and each Person, if any, who controls the Issuers or any other selling
         Holder within the meaning of Section 15 of the Securities Act or
         Section 20 of the Exchange Act to the same extent as the indemnity set
         forth in paragraph (a) above, but only with respect to any losses,
         claims, damages or liabilities arising out of any untrue statement or
         omission or alleged untrue statement or omission made in reliance upon
         and in conformity with any information relating to such Holder
         furnished to the Issuers in writing by such Holder expressly for use in
         the Shelf Registration Statement and any Prospectus.

                  (c) If any suit, action, proceeding (including any
         governmental or regulatory investigation), claim or demand shall be
         brought or asserted against any Person in respect of which
         indemnification may be sought pursuant to either paragraph (a) or (b)
         above, such Person (the "Indemnified Person") shall promptly notify the
         Person against whom such indemnification may be sought (the
         "Indemnifying Person") in writing; provided that the failure to notify
         the Indemnifying Person shall not relieve it from any liability that it
         may have under this Section 4 except to the extent that it has been
         materially prejudiced (through the forfeiture of substantive rights or
         defenses) by such failure; and provided, further, that the failure to
         notify the Indemnifying Person shall not relieve it from any liability
         that it may have to an Indemnified Person otherwise than under this
         Section 4. If any such proceeding shall be brought or asserted against
         an Indemnified Person and it shall have notified the Indemnifying
         Person thereof, (i) in case the Indemnified Persons are Holders, their
         officers or directors and any control Persons, counsel to the
         Indemnified Persons shall be selected by the Majority Holders and (ii)
         in the case the Indemnified Persons are the Issuers, their officers and
         directors and any control Persons, counsel to the Indemnified Persons
         shall be selected by the Issuers. In any such proceeding, any
         Indemnifying Person shall have the right to participate in the defense
         by retaining its own counsel, but the fees and expenses of such counsel
         shall be at the expense of such Indemnifying Person; provided however
         that counsel to the Indemnifying Person shall not (except with the
         consent of the Indemnified Person) also be counsel to the Indemnified
         Person. It is understood and agreed that the Indemnifying Person shall
         not, in connection with any proceeding or related proceeding in the
         same jurisdiction, be liable for the fees and expenses of more than one
         separate firm (in

<PAGE>
                                      -10-

         addition to any local counsel) separate from their own counsel for all
         Indemnified Persons, and that all such fees and expenses shall be
         reimbursed as they are incurred. The Indemnifying Person shall not be
         liable for any settlement of any proceeding effected without its
         written consent, but if settled with such consent or if there be a
         final judgment for the plaintiff, the Indemnifying Person agrees to
         indemnify each Indemnified Person from and against any loss or
         liability by reason of such settlement or judgment. No Indemnifying
         Person shall, without the written consent of the Indemnified Person,
         effect any settlement of any pending or threatened proceeding in
         respect of which any Indemnified Person is or could have been a party
         and indemnification could have been sought hereunder by such
         Indemnified Person, unless such settlement (A) includes an
         unconditional release of such Indemnified Person in form and substance
         reasonably satisfactory to such Indemnified Person from all liability
         on claims that are the subject matter of such proceeding and (B) does
         not include any statement as to or any admission of fault, culpability
         or a failure to act by or on behalf of any Indemnified Person.

                  (d) If the indemnification provided for in paragraphs (a) and
         (b) above is unavailable to an Indemnified Person or insufficient in
         respect of any losses, claims, damages or liabilities referred to
         therein, then each Indemnifying Person under such paragraph, in lieu of
         indemnifying such Indemnified Person thereunder, shall contribute to
         the amount paid or payable by such Indemnified Person as a result of
         such losses, claims, damages or liabilities (i) in such proportion as
         is appropriate to reflect the relative benefits received by the Issuers
         from the offering of the Securities, on the one hand, and by the
         Holders from receiving Securities registered under the Securities Act,
         on the other hand, or (ii) if the allocation provided by clause (i) is
         not permitted by applicable law, in such proportion as is appropriate
         to reflect not only the relative benefits referred to in clause (i) but
         also the relative fault of the Issuers on the one hand and the Holders
         on the other in connection with the statements or omissions that
         resulted in such losses, claims, damages or liabilities, as well as any
         other relevant equitable considerations. The relative fault of the
         Issuers on the one hand and the Holders on the other shall be
         determined by reference to, among other things, whether the untrue or
         alleged untrue statement of a material fact or the omission or alleged
         omission to state a material fact relates to information supplied by
         the Issuers or by the Holders and the parties' relative intent,
         knowledge, access to information and opportunity to correct or prevent
         such statement or omission.

                  (e) The Issuers and the Holders agree that it would not be
         just and equitable if contributions pursuant to this Section 4 were
         determined by pro rata allocation (even if the Holders were treated as
         one entity for such purpose) or by any other method of allocation that
         does not take account of the equitable considerations referred to in
         paragraph (d) above. The amount paid or payable by an Indemnified
         Person as a result of the losses, claims, damages and liabilities
         referred to in paragraph (d) above shall be deemed to include, subject
         to the limitations set forth above, any reasonable legal or other
         expenses incurred by such Indemnified Person in connection with any
         such action or claim. Notwithstanding the provisions of this Section 4,
         in no event shall a Holder be required to contribute any amount in
         excess of the amount by which the total price at which the Securities
         sold by such Holder exceeds the amount of any damages that such Holder
         has otherwise been required to pay by reason of such untrue or alleged
         untrue statement or omission or alleged omission. No Person guilty of
         fraudulent misrepresentation (within the meaning of Section 11(f) of
         the Securities Act) shall be entitled to contribution from any Person
         who was not guilty of such fraudulent

<PAGE>
                                      -11-

         misrepresentation. The Holders' respective obligations to contribute
         pursuant to Sections 4(d) and 4(e) are several in proportion to the
         respective number of Registrable Securities of such Holder that were
         registered pursuant to a Shelf Registration Statement.

                  (f) The remedies provided for in this Section 4 are not
         exclusive and shall not limit any rights or remedies that may otherwise
         be available to any Indemnified Person at law or in equity.

                  (g) The indemnity and contribution provisions contained in
         this Section 4 shall remain operative and in full force and effect
         regardless of (i) any termination of this Agreement, (ii) any
         investigation made by or on behalf of the Initial Purchasers or any
         Holder or any Person controlling any Initial Purchaser or any Holder,
         or by or on behalf of the Issuers or the officers or directors of or
         any Person controlling the Issuers, (iii) acceptance of any of the
         Securities and (iv) any sale of Registrable Securities pursuant to a
         Shelf Registration Statement.

         5. General.

                  (a) No Inconsistent Agreements. The Issuers represent, warrant
         and agree that (i) the rights granted to the Holders hereunder do not
         in any way conflict with and are not inconsistent with the rights
         granted to the holders of any other outstanding securities issued or
         guaranteed by the Issuers under any other agreement and (ii) neither of
         the Issuers has not entered into, or on or after the date of this
         Agreement will enter into, any agreement that is inconsistent with the
         rights granted to the Holders of Registrable Securities in this
         Agreement or otherwise conflicts with the provisions hereof.

                  (b) Amendments and Waivers. The provisions of this Agreement,
         including the provisions of this sentence, may not be amended, modified
         or supplemented, and waivers or consents to departures from the
         provisions hereof may not be given unless the Issuers have obtained the
         written consent of at least the Majority Holders of the outstanding
         Registrable Securities affected by such amendment, modification,
         supplement, waiver or consent; provided that no amendment,
         modification, supplement, waiver or consent to any departure from the
         provisions of Section 5 hereof shall be effective as against any Holder
         of Registrable Securities unless consented to in writing by such
         Holder. Any amendments, modifications, supplements, waivers or consents
         pursuant to this Section 5(b) shall be by written consent by each of
         the parties hereto.

<PAGE>
                                      -12-

                  (c) Notices. All notices and other communications provided for
         or permitted hereunder shall be made in writing by hand-delivery,
         registered first-class mail, telex, telecopier, or any courier
         guaranteeing overnight delivery (i) if to a Holder, at the most current
         address given by such Holder to the Issuers by means of a notice given
         in accordance with the provisions of this Section 5(c), which address
         initially is, with respect to each of the Initial Purchasers, c/o J.
         Randall Chappel, Attorney-in-Fact, 777 Main Street, Suite 2250, Fort
         Worth, Texas 76102 (fax: 817-820-6650, telephone: 817-820-6660), with a
         copy to Thompson & Knight L.L.P., 1700 Pacific Avenue, Suite 3300,
         Dallas, Texas 75201 (fax: 214-969-1751, telephone: 214-969-1392),
         Attention: Christopher D. Ray, Esq.; and (ii) if to the Issuers,
         initially to 777 Main Street, Suite 2100, Fort Worth, Texas 76102,
         Attention: Corporate Secretary, (fax: 817-321-2000, telephone:
         817-321-2100), with a copy to Shaw Pittman LLP, 2300 N Street, NW,
         Washington, DC 20037, Attention: Robert B. Robbins, Esq., (fax:
         202-663-8007, telephone: 202-663-8136) and thereafter at such other
         address, notice of which is given in accordance with the provisions of
         this Section 5(c). All such notices and communications shall be deemed
         to have been duly given: at the time delivered by hand, if personally
         delivered; five Business Days after being deposited in the mail,
         postage prepaid, if mailed; when answered back, if telexed; when
         receipt is acknowledged, if telecopied; and on the next Business Day if
         timely delivered to an air courier guaranteeing overnight delivery.
         Copies of all such notices, demands or other communications shall be
         concurrently delivered by the Person giving the same to the Trustee, at
         the address specified in the Indenture.

                  (d) Successors and Assigns. This Agreement shall inure to the
         benefit of and be binding upon the successors, assigns and transferees
         of each of the parties, including, without limitation and without the
         need for an express assignment, subsequent Holders; provided that
         nothing herein shall be deemed to permit any assignment, transfer or
         other disposition of Registrable Securities in violation of the terms
         of the Indenture. If any transferee of any Holder shall acquire
         Registrable Securities in any manner, whether by operation of law or
         otherwise, such Registrable Securities shall be held subject to all the
         terms of this Agreement, and by taking and holding such Registrable
         Securities such Person shall be conclusively deemed to have agreed to
         be bound by and to perform all of the terms and provisions of this
         Agreement and such Person shall be entitled to receive the benefits
         hereof. The Initial Purchasers (in their capacity as Initial
         Purchasers) shall have no liability or obligation to the Company with
         respect to any failure by a Holder to comply with, or any breach by any
         Holder of, any of the obligations of such Holder under this Agreement.

                  (e) Purchases and Sales of Securities. The Issuers shall not,
         and shall use their reasonable best efforts to cause their non-Holder
         affiliates (as defined in Rule 405 under the Securities Act) not to,
         purchase and then resell or otherwise transfer any Registrable
         Securities.

                  (f) Third Party Beneficiaries. Each Holder shall be a third
         party beneficiary to the agreements made hereunder between the Issuers,
         on the one hand, and the Initial Purchasers, on the other hand, and
         shall have the right to enforce such agreements directly to the extent
         it deems such enforcement necessary or advisable to protect its rights
         or the rights of other Holders hereunder.

                  (g) Counterparts. This Agreement may be executed in any number
         of counterparts and by the parties hereto in separate counterparts,
         each of which when so

<PAGE>
                                      -13-

         executed shall be deemed to be an original and all of which taken
         together shall constitute one and the same agreement.

                  (h) Headings. The headings in this Agreement are for
         convenience of reference only, are not a part of this Agreement and
         shall not limit or otherwise affect the meaning hereof.

                  (i) Governing Law. This Agreement shall be governed by and
         construed in accordance with the laws of the State of Texas and all
         applicable federal laws.

                  (j) Miscellaneous. This Agreement contains the entire
         agreement between the parties relating to the subject matter hereof and
         supersedes all oral statements and prior writings with respect thereto.
         If any term, provision, covenant or restriction contained in this
         Agreement is held by a court of competent jurisdiction to be invalid,
         void or unenforceable or against public policy, the remainder of the
         terms, provisions, covenants and restrictions contained herein shall
         remain in full force and effect and shall in no way be affected,
         impaired or invalidated. The Issuers and the Initial Purchasers shall
         endeavor in good faith negotiations to replace the invalid, void or
         unenforceable provisions with valid provisions the economic effect of
         which comes as close as possible to that of the invalid, void or
         unenforceable provisions.

         6. Effectiveness. This Amendment shall become effective immediately
upon execution by the Issuers and the Initial Purchasers.

<PAGE>
                                      -14-

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

                                          CRESCENT REAL ESTATE EQUITIES LIMITED
                                          PARTNERSHIP

                                          By: CRESCENT REAL ESTATE EQUITIES,
                                              LTD., its general partner

                                               By: /s/Jane E. Mody
                                                  -----------------------------
                                               Name:  Jane E. Mody
                                               Title:  Executive Vice President,
                                                         Capital Markets

                                          CRESCENT FINANCE COMPANY

                                              By: /s/Jane E. Mody
                                                 ------------------------------
                                              Name:  Jane E. Mody
                                              Title:  Executive Vice President,
                                                         Capital Markets

Confirmed and accepted as of the
date first above written:

/s/ J. Randall Chappel
------------------------------------------
J. Randall Chappel, Attorney-in-Fact for
(i) Richard E. Rainwater, Darla D. Moore,
Courtney E. Rainwater, Matthew J.
Rainwater, and R. Todd Rainwater,
individually, (ii) Richard E. Rainwater,
Trustee of The Richard E. Rainwater
Charitable Remainder Unitrust No. 2, and
(iii) Richard E. Rainwater as President of
Rainwater, Inc.

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