Document:

<PAGE>
Exhibit 10.16

                                    AMENDMENT

                                     TO THE

                          LIMITED PARTNERSHIP AGREEMENT

                                       OF

                            CSR - WAHA PARTNERS, L.P.

                               DATED JUNE 27, 2002

                                JANUARY 15, 2003

<PAGE>

                 AMENDMENT TO THE LIMITED PARTNERSHIP AGREEMENT

                                       OF

                            CSR - WAHA PARTNERS, L.P.

         THIS AMENDMENT TO THE LIMITED PARTNERSHIP AGREEMENT is entered into
effective January 15, 2003, by and among CSR, LLC (the "General Partner") and
those persons listed as Limited Partners on Exhibit A attached hereto.

         This Amendment is made in accordance with ARTICLE VIII. "TRANSFER OF
INTERESTS IN THE PARTNERSHIP" Section 8.3 "Limited Partners".

         1.   The Limited Partner  admitted to the Partnership on June 27, 2002
              has  sold  its  ninety-nine  (99%)  percent  limited  partnership
              interest and has deliver a duly  executed  purchase  agreement to
              the General Partner (the "Substitute Limited Partner");

         2.   The General Partner has consented to the sale and transfer of the
              ninety-nine  (99%) percent  limited  partnership  interest to the
              Substituted Limited Partner as listed on Amended Exhibit A.

         The Admission of the Substituted Limited Partner and the effective date
of this Amendment shall be the day and y ear first above written.

GENERAL PARTNER:

CSR, LLC

By:
    -----------------------------------
    Mark A. Bush, Managing Member

LIMITED PARTNER:

BPK RESOURCES, INC.

By:
    -----------------------------------
    John B. Connally, III

<PAGE>

                                AMENDED EXHIBIT A

                         PARTNERS AS OF JANUARY 15, 2003

<TABLE>
<CAPTION>
LIMITED                                   CAPITAL                      PERCENTAGE
PARTNERS                                CONTRIBUTION                    INTEREST
--------                                ------------                    --------
<S>                                     <C>                            <C>
BPK Resources, Inc.                      $2,000,000                      99.0%
5858 Westheimer Street
Suite 709
Houston, Texas  77057

GENERAL PARTNER
---------------

CSR, LLC                                  $4,000                          1.0%
5858 Westheimer Street
Suite 708
Houston, Texas  77057
</TABLE>

<PAGE><PAGE>

Exhibit 10.17

                          LIMITED PARTNERSHIP AGREEMENT

                                       OF

                         LOUISIANA SHELF PARTNERS, L.P.

                                DECEMBER 31, 2002

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                PAGE
                                                                                                                ----
<S>                                                                                                             <C>
ARTICLE I.  DEFINITIONS...........................................................................................1

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

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

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

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

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

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

         5.1  Interests...........................................................................................7
         5.2  Capital Contributions...............................................................................7
         5.3  Additional Limited Partners.........................................................................9

ARTICLE VI.  DISTRIBUTIONS; ALLOCATION OF PROFITS AND LOSSES; CAPITAL ACCOUNTS...................................10

         6.1  Cash Available for Distribution....................................................................10
         6.2  Allocation of Profits..............................................................................10
         6.3  Allocation of Losses...............................................................................11
         6.4  Special Tax Allocations; Other Allocation Rules; Tax Allocations: Code Section 704(c)..............12
         6.5  Allocations in the Event of Transfer...............................................................12
         6.6  Capital Accounts...................................................................................12
         6.7  Tax Distributions..................................................................................13

ARTICLE VII.  MANAGEMENT; RIGHTS, POWERS, AND OBLIGATIONS OF THE PARTNERS........................................13

         7.1  Management of the Partnership......................................................................13
         7.2  Certain Limitations of the General Partner.........................................................13
         7.3  Meetings of the Partners...........................................................................14
         7.4  Voting by the Partners.............................................................................14
         7.5  Independent Activities.............................................................................14
         7.6  Execution of Agreements and Instruments............................................................14
         7.7  Holding of Assets..................................................................................15
         7.8  Fees and Expenses..................................................................................15

ARTICLE VIII.  TRANSFER OF INTERESTS IN THE PARTNERSHIP..........................................................15

         8.1  Prohibited Transfers...............................................................................15
         8.2  Limited Partners...................................................................................15
</TABLE>

                                      (i)

<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                            <C>
ARTICLE IX.  DISSOLUTION AND WINDING UP OF THE PARTNERSHIP.......................................................18

         9.1  Dissolution of the Partnership.....................................................................18
         9.2  Winding Up of the Partnership......................................................................18
         9.3  Distribution In Kind...............................................................................18

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

         10.1  Accounting, Books and Records.....................................................................19
         10.2  Other Records.....................................................................................19
         10.3  Reports...........................................................................................20
         10.4  Fiscal Year.......................................................................................20
         10.5  Partnership Funds.................................................................................20
         10.6  Tax Matters Partner...............................................................................20

ARTICLE XI.  INDEMNIFICATION.....................................................................................21

         11.1  Indemnification...................................................................................21

ARTICLE XII.  MISCELLANEOUS......................................................................................22

         12.1  Agreement for Further Execution...................................................................22
         12.2  Amendments........................................................................................22
         12.3  Notices...........................................................................................23
         12.4  Governing Law and Jurisdiction....................................................................23
         12.5  Binding Nature of Agreement.......................................................................23
         12.6  Additional Partners...............................................................................23
         12.7  Validity..........................................................................................24
         12.8  Entire Agreement..................................................................................24
         12.9  Indulgences, Etc..................................................................................24
         12.10  Execution in Counterparts........................................................................24
         12.11  Paragraph........................................................................................24
         12.12  Number of Days...................................................................................24
         12.13  Interpretation...................................................................................24
         12.14  Corporate Authority..............................................................................24
         12.15  Third Party Beneficiaries........................................................................24
         12.16  Appointment of Attorney-in-fact..................................................................25
</TABLE>

Exhibit A         -        Partners
Exhibit B         -        Special Allocations

                                      (ii)

<PAGE>

                          LIMITED PARTNERSHIP AGREEMENT
                                       OF
                         LOUISIANA SHELF PARTNERS, L.P.

         THIS LIMITED  PARTNERSHIP  AGREEMENT  is entered  into  effective as of
December 31, 2002,  by and among LS GAS, LLC (the  "General  Partner") and those
persons listed as Limited Partners on Exhibit A attached hereto, as amended from
time to time after the date hereof.

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

                             ARTICLE I. DEFINITIONS

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

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

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

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

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

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

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

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

         "Appraiser" has the meaning set forth in Section 9.3 of this Agreement.

<PAGE>

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

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

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

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

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

         "Class A  Interests"  has the  meaning set forth in Section 5.1 of this
Agreement.

         "Class A Limited  Partner"  has the meaning set forth in Section 5.1 of
this Agreement.

         "Class A  Preferred  Return"  means an  amount  equal to a  twenty-five
percent  (25%)  annual  return,  compounded  annually,  on each  Class A Limited
Partner's Unreturned Capital. The Class A Preferred Return shall begin to accrue
on the date a Capital  Contribution  is made and  shall  end

                                       2
<PAGE>

when such Class A Limited  Partner's  Unreturned  Capital  has been  permanently
reduced to zero.  The Class A Preferred  Return shall be calculated  whenever an
allocation or distribution  is to be made under this Agreement,  or as otherwise
necessary;  and the  calculation  of any such  accrued  amount  shall be done by
taking   into   account  all  Capital   Contributions,   as  inflows,   and  all
distributions,  as  outflows,  with  respect  to the  Class A  Interests  and by
applying  internal  rate of return  principles to such amounts and the timing of
such payments.

         "Class B  Interests"  has the  meaning set forth in Section 5.1 of this
Agreement.

         "Class B Limited  Partner"  has the meaning set forth in Section 5.1 of
this Agreement.

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

         "Depreciation"  means, for each fiscal year or other period,  an amount
equal  to the  depreciation,  amortization  or  other  cost  recovery  deduction
allowable with respect to an asset for such year or other period, except that if
the Gross Asset Value of an asset  differs from its  adjusted  basis for federal
income tax purposes at the beginning of such year or other period,  Depreciation
shall be an amount  which  bears the same ratio to such  beginning  Gross  Asset
Value as the  federal  income  tax  depreciation,  amortization  or  other  cost
recovery  deduction  for such  year or  other  period  bears  to such  beginning
adjusted  tax  basis;  provided,   however,  that  if  the  federal  income  tax
depreciation,  amortization  or other cost  recovery  deduction for such year or
other period is zero,  Depreciation  shall be determined  with reference to such
beginning Gross Asset Value using any reasonable  method selected by the General
Partner.

         "General Partner" means LS Gas, LLC

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

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

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

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

                                       3
<PAGE>

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

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

         "Indemnitee"  has the  meaning  set forth in  Section  11.1(a)  of this
Agreement.

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

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

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

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

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

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

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

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

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

                                       4
<PAGE>

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

         "Partnership" means Louisiana Shelf Partners,  L.P., a Delaware limited
partnership.

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

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

         "Percentage  Interest"  means the Interest of a Partner  expressed as a
percentage.  The Percentage Interest of each Partner as of the date hereof is as
set forth on Exhibit A, including as it may be amended from time to time.

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

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

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

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

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

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

             (v) In  lieu  of the  depreciation,  amortization  and  other  cost
recovery deductions taken into account in computing such taxable income or loss,
there  shall be taken into  account  Depreciation  for such fiscal year or other
period, computed in accordance with this Agreement.

                                       5
<PAGE>

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

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

         "Service" has the meaning set forth in Section 10.6 of this Agreement.

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

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

         "Unreturned  Capital"  with respect to any Partner  means all cash paid
toward such Partner's  Capital  Contribution,  reduced by distributions  made to
such Partner pursuant to Section 6.1(a)(ii) and 6.1(a)(iii).

         "Valuation  Date" has the meaning  set forth in Section  9.3(a) of this
Agreement.

                            ARTICLE II. ORGANIZATION

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

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

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

                              ARTICLE III. PURPOSE

         3.1  Purpose.  The  purpose for which the  Partnership  is formed is to
engage in oil and gas exploration  activities on various  properties  located in
Cameron Parish, Louisiana. In addition, the Partnership may engage in any lawful
activity for which limited  partnerships  may be organized under the laws of the
State of Delaware and otherwise in accordance with the terms of this Agreement.

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

                                       6
<PAGE>

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

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

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

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

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

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

                                ARTICLE IV. TERM

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

           ARTICLE V. CONTRIBUTIONS TO CAPITAL AND STATUS OF PARTNERS

         5.1  Interests.  The  Partnership  shall  have two  classes  of Limited
Partnership  Interests,  Class A  interests  ("Class A  Interests")  and Class B
Interests  ("Class B  Interests").  Each  Person  owning a Class A  Interest  is
hereafter  referred to as a "Class A Limited  Partner" and each Person  owning a
Class B Interest is hereinafter referred to as a "Class B Limited Partner."

         5.2 Capital Contributions.

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

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

             (c) Additional Capital Contributions.

                 (i) The  Partners  shall be  obligated  to make all  additional
contributions to the capital of the Partnership,  for whatever  purpose,  in any
amounts requested by the General Partner,  provided that, solely with respect to
any Capital Calls made for the purpose of paying administrative  expenses of the
Partnership,  the  General  Partner  shall  only be  permitted  to  request

                                       7
<PAGE>

two additional contributions to the capital of the Partnership per calendar year
in the aggregate  amount of $300,000.  The General Partner shall deliver written
notice  requesting any additional  Capital  Contribution  to the  Partnership (a
"Capital Call") to each Limited Partner. Each Limited Partner shall be obligated
to satisfy its pro rata portion of any Capital Call within fifteen (15) business
days of receiving such written request.

                 (ii) In the event any  Class A Limited  Partner  fails to honor
all or any  portion  of a Capital  Call made in  accordance  with the  preceding
Subsection,  the General  Partner may take action to enforce such the obligation
of such Class A Limited Partner (the  "Delinquent  Limited  Partner") to satisfy
the Capital Call, including but not limited to converting the Delinquent Limited
Partner's  Class A Interests into Class B Interests and permitting the remaining
Class A Limited Partners to fund the unfunded portion of the Delinquent  Limited
Partner's aggregate Capital Call as follows:

                      (A) The General Partner shall notify the remaining Class A
Limited Partners in writing of the amount of the unfunded Capital Call and offer
them the opportunity to fund the unfunded Capital Call;

                      (B) The remaining  Class A Limited  Partners  shall have a
period  of  fifteen  (15)  days  within  which to  accept  the offer to fund the
unfunded  Capital Call. Such acceptance shall be made by written notice given to
the  Partnership,  which  notice  shall set forth the  portion  of the  unfunded
Capital Call that each remaining Class A Limited Partner is willing to purchase.
Each  remaining  Class A Limited  Partner  shall be entitled to purchase its pro
rata share (based on the total Percentage  Interest held by such Class A Limited
Partner and by all remaining Class A Limited  Partners) of the unfunded  Capital
Call.  Should any of the  remaining  Class A Limited  Partners  desire to fund a
portion of the unfunded Capital Call in excess of its pro rata share, and should
any  portion of the  Capital  Call  remain  unfunded  after  allocation  to each
electing Class A Limited Partner of the lesser of (i) the unfunded  Capital Call
that it has elected to fund or (ii) its pro rata share of the  unfunded  Capital
Call, then, unless electing  remaining Class A Limited Partners desiring to fund
such unfunded Capital Call shall agree upon some other basis for allocation, any
such  unfunded  Capital Call shall be  allocated  to  remaining  Class A Limited
Partners  desiring to fund it, pro rata based on the  unfunded  Capital  Call in
excess of their  respective  pro rata shares  thereof which each such  Remaining
Class A Limited  Partner  indicated in writing a desire to  purchase,  until the
entire  unfunded  Capital Call has been funded or all remaining  Class A Limited
Partners  have funded all of the  unfunded  Capital  Call which they  elected to
fund.

                      (C) In the  event  that  the  remaining  Class  A  Limited
Partners  shall  fail to accept the offer  pursuant  to the  previous  paragraph
within the time period set forth above as to the entire  unfunded  Capital Call,
then the General  Partner  shall be required to fund up to $300,000  towards the
satisfaction  of such  unfunded  Capital  Call and shall have the option to fund
such additional amounts as it elects.

                      (D) The remaining Class A Limited Partners and the General
Partner,  if necessary,  shall fund the unfunded Capital Call within thirty (30)
days of the date on which the written  notice of the  unfunded  Capital  Call is
first sent to the remaining Class A Limited Partners.

                                       8
<PAGE>

                      (E) Any Interests  converted into Class B Interests  shall
continue  to be treated as Class A Interests  for  purposes of Article VI to the
extent  necessary  to give such  Interests  the benefit of the Class A Preferred
Return and allocated  Profits up to the date of such conversion.  Thus,  accrued
Class A Preferred Return and Profits allocable  pursuant to Section 6.2(d) which
have been earned as Profits,  and have been allocated,  but not yet distributed,
at the time of conversion  shall be distributed at the appropriate time as if no
conversion took place; and Class A Preferred  Return which has accrued,  but has
not been earned and  allocated,  at the time of  conversion,  shall be allocated
when earned,  and shall be distributed,  as if no conversion  took place.  Other
allocations, including those of Losses, shall be adjusted in accordance with the
principles of this Section  5.2(c).  If the Unreturned  Capital of the converted
interest  is a positive  number at the time of  conversion,  such  amount  shall
become the  Unreturned  Capital  attributable  to the Class B Interests.  If the
Capital  Account  balance of the converted  interest is less than its Unreturned
Capital at the time of conversion as a result of allocations of Losses  pursuant
to Section  6.3(d) which have not been  restored by  subsequent  allocations  of
Profits (but not if such  reduction is due to  distributions),  then the Class B
Interests shall be entitled to allocations of Profits pursuant to Section 6.2(b)
on the same  terms as if such  Losses  had been  allocated  pursuant  to Section
6.3(c).  Except as necessary to give the converted Interest the benefit of being
a Class A Interest  prior to  conversion  as  described  above,  the  Percentage
Interest of any Class B Interest shall be zero.  The Percentage  Interest of the
converted  Interest  shall be allocated  among the Class A Partners (and General
Partner, as applicable) making additional Capital  Contributions,  in proportion
thereto, which fulfill part or all of the unfunded Capital Call of the converted
Interest. The General Partner shall amend Schedule A to reflect such changes.

                 (iii) The  General  Partner  may in its sole  discretion  elect
instead to avail the  Partnership  of any other  remedies  provided to it by the
Act.  Notwithstanding the foregoing, no Capital Call or other obligation to make
an additional  contribution  may be enforced by a creditor of the Partnership or
other Person other than the  Partnership  unless the General  Partner  expressly
consents to such  enforcement  or to the  assignment  of the  obligation to such
creditor.

             (d) Withdrawal of Capital Contributions.  No Partner shall have the
right to  withdraw  or  reduce  its  Capital  Contribution,  or to  receive  any
distributions  from the Partnership,  except as otherwise  provided  herein.  No
Partner shall have the right to demand or receive any Partnership Property other
than cash from the  Partnership.  No interest or royalties  shall be paid to any
Partner on its Capital  Contribution.  No Partner  shall have  priority over any
other  Partner,  either as to the return of its  Capital  Contribution  or as to
Profits,  Losses or  distributions,  except as may be specifically  set forth in
this Agreement.

         5.3 Additional  Limited  Partners.  Additional  Limited Partners may be
admitted  to the  Partnership  with the  consent of the  General  Partner  and a
Majority  in  Interest  of the Class A Limited  Partners.  Any  dilution  of the
Percentage  Interest resulting from the admission of additional Limited Partners
shall be borne by all  Partners  pro rata in  accordance  with their  Percentage
Interests.

                                       9
<PAGE>

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

         6.1 Cash Available for Distribution.

             (a)  Distributions  Prior  to  Liquidation.   Except  as  otherwise
provided  in  Section  6.7  or  in  Article  IX  hereof,   Cash   Available  for
Distribution,  if any, shall be distributed among the Partners annually (or more
frequently as determined by the General  Partner),  in arrears no later than the
end of the  first  calendar  quarter  following  the  year in  question  in such
aggregate  amounts as the General  Partner may  determine.  Cash  Available  for
Distribution,  if any, shall be distributed  among the Partners in the following
order of priority:

                 (i) First, to the Class A Limited Partners,  an amount equal to
the  accrued  but  unpaid  Class  A  Preferred  Return  as of  the  date  of the
distribution, distributed to each Class A Limited Partner pro rata in proportion
to the amount of each Class A Limited  Partner's Unpaid Class A Preferred Return
as of that date;

                 (ii)  Second,  to the  General  Partner and the Class A Limited
Partners in proportion to their respective  Unreturned Capital as of the date of
the distribution,  until the General Partner's Unreturned Capital and each Class
A Limited Partner's Unreturned Capital has been reduced to zero;

                 (iii) Third,  to the Class B Limited  Partners in proportion to
their  respective  Unreturned  Capital,  until  each  Class B Limited  Partner's
Unreturned Capital has been reduced to zero; and

                 (iv)  Thereafter,  40% to the General  Partner,  and 60% to the
Class A  Limited  Partners  pro  rata in  proportion  to  each  Class A  Limited
Partner's Percentage Interest.

Notwithstanding the foregoing,  the General Partner may in its sole and absolute
discretion and at any time make a distribution  to the Class A Limited  Partners
and/or Class B Limited  Partners in  proportion to their  respective  Unreturned
Capital  balances.  Section  6.1(a)  shall be applied  taking  into  account the
provisions of Section 5.2(c) with respect to converted Interests.

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

         6.2  Allocation  of  Profits.  After  giving  effect to the  Regulatory
Allocations  set  forth  in  Exhibit  B of this  Agreement  and  subject  to the
provisions of Section 5.2(c), Profits for any fiscal year or other period of the
Partnership  will be  credited to the  Capital  Accounts of the  Partners in the
following order of priority:

             (a) First, to the Partners,  in an amount sufficient to reverse the
cumulative amount of any Losses allocated to the Partners in the current and all
prior fiscal years,  first  pursuant to the proviso after Section

                                       10
<PAGE>

6.3(d)  of this  Agreement,  and  second  pursuant  to  Section  6.3(d)  of this
Agreement,  allocated  to each  Partner  in the order and in  proportion  to the
allocation of such Losses to such Partner;

             (b) Second, to the Class B Limited  Partners,  until the cumulative
amount  allocated  pursuant to this Section 6.2(b) for the current and all prior
fiscal years is equal to the cumulative amount of any Losses allocated  pursuant
to Section 6.3(c) of this Agreement in the current and all prior fiscal years to
each Class B Limited Partner,  pro rata in proportion to the Losses allocated to
each such Class B Limited Partner;

             (c) Third,  to the Class A Limited  Partners,  until the cumulative
amount  allocated  pursuant to this Section 6.2(c) for the current and all prior
fiscal years is equal to the cumulative Class A Preferred Return for all Class A
Limited  Partners in the current and all prior fiscal years plus the  cumulative
amount of any Losses  allocated  pursuant to Section 6.3(b) of this Agreement in
the current and all prior fiscal years (which Losses reverse  Profits  allocated
under this Section 6.2(c)) allocated to each Class A Limited Partner pro rata in
proportion to each Class A Limited Partner's Class A Preferred Return; and

             (d)  Thereafter,  40% to the General Partner and 60% to the Class A
Limited  Partners  pro rata in  proportion  to each  Class A  Limited  Partner's
Percentage Interest.

         6.3  Allocation  of  Losses.  After  giving  effect  to the  Regulatory
Allocations  set  forth  in  Exhibit  B of this  Agreement  and  subject  to the
provisions of Section 5.2(c), Losses for any fiscal year or other period will be
charged to the  Capital  Accounts  of the  Partners  in the  following  order of
priority:

             (a)  First,  40% to the  General  Partner  and  60% to the  Class A
Limited  Partners  pro rata in  proportion  to each  Class A  Limited  Partner's
Percentage  Interest in an amount sufficient to reverse,  on a cumulative basis,
the amount of Profits  allocated  under Section  6.2(d) of this Agreement in the
current and all prior fiscal years;

             (b) Second, to the Class A Limited Partners in an amount sufficient
to reverse, on a cumulative basis, the amount of Profits allocated under Section
6.2(c) of this Agreement in the current and all prior fiscal years;

             (c) Third,  to the Class B Limited  Partners in proportion to their
respective  Unreturned Capital,  until each Class B Limited Partner's Unreturned
Capital is reduced to zero; and

             (d)  Fourth,  among  the  General  Partner  and the Class A Limited
Partners pro rata in proportion to each Partner's Percentage Interest;

provided, however, that Losses that otherwise would be allocated to the Partners
in accordance with their respective Percentage Interest will not be allocated to
any Partner if such  Losses  would  result in or  increase  an Adjusted  Capital
Account  Deficit  with  respect to such  Partner  and any Losses  that cannot be
allocated to any Partner as a result of this proviso shall be allocated first to
the  Capital  Accounts  of the other  Partners  in  proportion  to the  positive
balances in their  respective  Capital  Accounts until all such Capital Accounts
are reduced to zero, and then one hundred percent (100%) to the General Partner.

                                       11
<PAGE>

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

         6.5 Allocations in the Event of Transfer.

             (a)  If all  or  any  portion  of an  Interest  is  transferred  in
accordance  with Article VIII hereof  during any fiscal year,  Profits,  Losses,
each item  thereof and all other items  attributable  to such  Interest for such
period shall be divided and allocated  between the transferor and transferee pro
rata in proportion to the number of days each Person owned such Interest  during
the period,  unless the General Partner elects to provide for an interim closing
of the Partnership's books.

             (b) Solely for purposes of allocating Profits, Losses and each item
thereof  as set  forth in  Sections  6.2  through  6.4,  the  Partnership  shall
recognize  the Transfer of such  Interest not later than the end of the calendar
month during  which it receives  written  notice of such  Transfer and the other
requirements  of  Article  VIII  hereof  are  satisfied,  provided  that  if the
Partnership does not receive a written notice stating the date such Interest was
transferred  and such other  information  as the General  Partner may reasonably
require  within thirty (30) days after the end of the calendar year during which
the  Transfer  occurs,  then  all of such  items  shall  be  allocated,  and all
distributions  shall be made,  to the  Person  who,  according  to the books and
records of the  Partnership,  on the last day of the  accounting  period  during
which the Transfer  occurs,  was the owner of the Interest.  The General Partner
and the  Partnership  shall  incur  no  liability  for  making  allocations  and
distributions  in accordance with the provisions of this Section 6.5, whether or
not the General  Partner or the  Partnership  has  knowledge  of any Transfer of
ownership of any Interest.

         6.6 Capital Accounts.

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

                                       12
<PAGE>

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

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

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

         6.7 Tax Distributions.  Prior to any distributions  pursuant to Section
6.1 hereof (or otherwise),  the Partnership  shall distribute Cash Available for
Distribution  to the  Partners in such amounts as the General  Partner,  in good
faith, estimates (the "Estimated Tax Liability") to be sufficient to permit each
Partner to pay all  federal,  state,  and local  income taxes which each Partner
will incur as a result of the required inclusion of each Partner's proportionate
share of the Profits of the Partnership in determining  each Partner's  federal,
state, and local tax liability, provided that such distribution shall be made no
later than 10 days  before a  quarterly  estimated  tax  payment is due and such
amount  shall be  confirmed  by the  General  Partner as soon  thereafter  as is
reasonably  practicable  provided,  however, that the highest rate applicable to
any Partner shall be applied to all Partners, including tax exempt Partners. Any
distribution  made under this Section 6.7 shall be applied  against such amounts
such Partner is entitled to receive pursuant to Section 6.1 hereof.  The General
Partner  shall  not be  required  to make the  distributions  described  in this
Section 6.7 (in respect of such taxes at such times or in such  amounts) if such
distributions  will cause a default under the  obligations to the Senior Secured
Lender.

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

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

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

             (i) Act in contravention of this Agreement;

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

                                       13
<PAGE>

             (iii) Confess a judgment against the Partnership; or

             (iv) Sell or dispose of all or  substantially  all of the assets of
the Partnership Property in a transaction outside of the Partnership's  ordinary
course of business.

         7.3 Meetings of the Partners.

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

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

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

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

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

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

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

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

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

                                       14
<PAGE>

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

         7.8 Fees and  Expenses.  To the extent  expenses  have been incurred in
connection  with  the  Partnership  prior  to the  date of this  Agreement,  the
Partnership  shall pay such expenses or shall  reimburse the General  Partner or
any other Person as appropriate  for such expenses if already paid. In addition,
to the  extent  that  the  General  Partner  incurs  any fees  and  expenses  in
connection  with the  performance  of its powers and duties as General  Partner,
through the provision of administrative services to the Partnership or otherwise
on behalf of the  Partnership,  the  Partnership  shall  reimburse  the  General
Partner in accordance with its normal expense reimbursement procedures.

             ARTICLE VIII. TRANSFER OF INTERESTS IN THE PARTNERSHIP

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

         8.2 Limited Partners.

             (a) The General Partner may (1) pursuant to this Section 8.2, admit
as a substituted  Limited Partner any successor in interest to a Limited Partner
either deceased or under legal disability,  and (2) pursuant to this Section 8.2
admit as substituted Limited Partners assignees of Limited Partners:

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

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

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

                 (i)  The  written  consent  of  the  General  Partner  to  such
substitution  shall  be  obtained,  which  consent  shall  not  be  unreasonably
withheld;

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

                                       15
<PAGE>

                 (iii) The assignor and assignee  execute and  acknowledge  such
other  instruments  as the General  Partner may deem  necessary  or desirable to
effect such admission,  including,  without  limitation,  an opinion of counsel,
acceptable  to the General  Partner,  to the effect that the  assignment  of the
interest will not violate the applicable provision of the Securities Act of 1933
and any applicable state securities laws, the written acceptance and adoption by
the  assignee  of  the   provisions  of  this   Agreement  and  his   execution,
acknowledgment,  and delivery to the General Partner of a Power of Attorney, the
form and content of which are more fully described in Section 13.16 hereof; and

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

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

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

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

                                       16
<PAGE>

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

             (f) No consent of any of the Limited  Partners is required to elect
the substitution of a Limited Partner, except that a Limited Partner who assigns
his Interest  shall,  in order for the assignee to be admitted as a  substituted
Limited  Partner,  evidence  his  intention  that the  assignee be admitted as a
substituted  Limited  Partner in his place and must execute such  instruments as
the General Partner shall, in its sole and absolute discretion,  determine to be
necessary or desirable in connection therewith.

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

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

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

             (j) No assignment or transfer of an interest in the Partnership may
be made which would result in the termination of the  Partnership  under Section
708 of the Code,  unless the General Partner  determines  that such  termination
will not have a material adverse effect on the Partnership or the Partners, or a
Majority  in  Interest  of  the  Class  A  Limited  Partners  consents  to  such
transaction.

                                       17
<PAGE>

           ARTICLE IX. DISSOLUTION AND WINDING UP OF THE PARTNERSHIP

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

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

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

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

             (d) The dissolution of the last General Partner, provided that, the
Partnership  shall not be dissolved  if, within ninety (90) days of such date, a
Majority  in  Interest  of the Class A Limited  Partners  appoints a new General
Partner.

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

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

             (b) To the Class A Limited Partners, an amount equal to the amounts
owed on any loans which they may have made to the Partnership;

             (c) To the Class B Limited  Partners,  an amount equal to any loans
which they may have made to the Partnership; and

             (d) To the Partners in accordance with Section 6.1(b).

         9.3 Distribution In Kind. Any Partnership  Property distributed in kind
in the liquidation shall be valued as follows:

             (a) The General  Partner shall select an  independent,  third-party
appraiser,  experienced in appraising limited  partnership  interests similar to
the Interests (the  "Appraiser").  The Appraiser will determine the value of the
Limited  Partner's  Interest  as of the end of the  calendar  month  immediately
preceding  the  distribution  in kind based upon the value of the  Partnership's
assets net of  liabilities  assuming  all assets were sold at such value and all
liabilities  were  satisfied  by cash  payments at their  present  value and any
resulting  deem Profit or Loss was  allocated  to the  Partners  pursuant to the
terms of this Agreement.  The  determination of the value of a Limited Partner's
Capital  Account shall assume the going concern of the Partnership and

                                       18
<PAGE>

shall not take into account  minority  discounts  for the Capital  Account being
valued.  The date on which the Capital  Account is to be valued pursuant to this
Section shall be referred to herein as a "Valuation  Date." The Appraiser  shall
within  sixty (60) days of the  distribution  in kind  prepare a  statement  and
report  of the  amount  of  the  Limited  Partner's  Capital  Account  as of the
Valuation  Date. A copy of such  statement  and report will be forwarded to each
Partner.  The difference  between the value of any item of Partnership  Property
distributed in kind and its book value shall be treated as a gain or loss on the
disposition of Partnership Property and shall be allocated among the Partners as
provided in Article VI.

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

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

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

         10.2 Other Records.

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

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

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

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

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

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

                                       19
<PAGE>

             (b) Except as otherwise set forth  herein,  each Partner shall have
the right,  exercisable  upon written demand,  to examine the items described in
Section  10.2(a) during ordinary  business hours and for any purpose  reasonably
related to the  Partner's  Interest in the  Partnership  (which  purpose must be
stated in the written demand),  and shall have the right, at its own expense, to
make copies of all such items.

         10.3 Reports.

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

             (b)  Within  seventy-five  (75) days  after the end of each  fiscal
year, the General  Partner shall transmit to each Partner  financial  statements
based  upon  the  annual  audit  of  the  books  and  financial  records  of the
Partnership,   prepared  in  accordance  with  generally   accepted   accounting
principles,  and, to the extent inconsistent  therewith, in accordance with this
Agreement, including the following:

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

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

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

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

             (c)  Within  seventy-five  (75) days  after the end of each  fiscal
year,  the General  Partner shall  transmit to each Partner a report  indicating
such  Partner's  share of all items of income  or gain,  expense,  loss or other
deduction  and tax credit of the  Partnership  for such  fiscal  year,  and such
additional  information to enable the Partners to complete their  respective tax
returns.

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

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

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

         10.6 Tax  Matters  Partner.  The  General  Partner  shall  serve as the
Partnership's  "tax matters  partner" (as such term is defined in the Code).  In
such capacity, the Tax Matters Partner is hereby authorized and empowered to act
for and  represent  the  Partnership  and each of the  Partners  before  (i) the
Internal  Revenue  Service  ("Service")  in  any  audit  or  examination  of any

                                       20
<PAGE>

Partnership tax return, and (ii) any court selected by the Partners for judicial
review of any adjustment  assessed by the Service.  All  out-of-pocket  expenses
incurred by the Tax Matters  Partner in his capacity as the Tax Matters  Partner
shall be  considered  expenses  of the  Partnership  for which  the Tax  Matters
Partner shall be entitled to full reimbursement.

                          ARTICLE XI. INDEMNIFICATION

         11.1 Indemnification.

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

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

                                       21
<PAGE>

             (c) Insurance.  The Partnership may purchase and maintain insurance
with  such  limits  or  coverages  as  the  General  Partner   reasonably  deems
appropriate,  at the expense of the Partnership and to the extent available, for
the  protection  of any  Indemnitee  against  any  liability  incurred  by  such
Indemnitee in any such capacity or arising out of his status as such, whether or
not the  Partnership  has the power to indemnify  such  Indemnitee  against such
liability.   The  Partnership  may  purchase  and  maintain  insurance  for  the
protection of any officer, director, employee,  consultant or other agent of any
other  organization  in which the  Partnership  owns an interest or of which the
Partnership  is a  creditor  against  similar  liabilities,  whether  or not the
Partnership has the power to indemnify him or it against such  liabilities.  Any
amounts payable by the  Partnership to an Indemnitee  pursuant to the provisions
of Section  11.1(a)  above  shall be  payable  first  from the  proceeds  of any
insurance  recovery  pursuant to policies  purchased by the Partnership and then
from the other assets of the Partnership; provided, that the foregoing shall not
affect the  Partnership's  obligation  to advance  expenses  pursuant to Section
11.1(b)  hereof in  circumstances  in which the  insurance  Partnership  who has
issued such policy will not advance such expenses.

                           ARTICLE XII. MISCELLANEOUS

         12.1 Agreement for Further Execution. The Partners agree to sign, swear
or acknowledge any  certificates or filings required by the laws of the State of
Delaware or any other state,  to sign,  swear or  acknowledge  any  amendment or
cancellation  of such  certificate  or filings  whether or not such amendment or
cancellation  is  required  by law;  to sign,  swear or  acknowledge  such other
certificates,  filings,  documents or affidavits of assumed name,  trade name or
the like (and any amendments or  cancellations  thereof that may be required for
conduct  of the  Partnership's  business)  and to cause the filing of any of the
same for record wherever such filing shall be required by law. This Section 12.1
shall not  prejudice  or affect the rights of the  Partners  to approve  certain
amendments to this Agreement as herein provided.

         12.2 Amendments.

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

             (b) Any provision to the contrary contained herein notwithstanding,
the General Partner may,  without the consent or approval of any Partners,  make
such  amendments to this  Agreement  binding on the  Partners,  (i) to correct a
typographical  error,  cure any  ambiguity,  correct or supplement any provision
herein which may be inconsistent with any other provisions herein,  (ii) to make
any other  amendment if such  amendment  is not adverse to the  interests of the
Limited  Partners  as a whole or as a class or if such  amendment  benefits  the
Limited  Partners as a whole or as a class; and (iii) to reflect the addition of
Limited Partners pursuant to Section 5.2;

                                       22
<PAGE>

provided,  however,  that no amendment shall be adopted pursuant to this Section
12.2(b)  unless  the  adoption  thereof  does  not  affect  the  status  of  the
Partnership as a partnership for federal income tax purposes.

         12.3 Notices.

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

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

                     5858 Westheimer Street
                     Suite 708
                     Houston, TX  77057

                     with a copy to:

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

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

             (b) Any  Partner  may change the  address to which  notice is to be
sent by giving notice of such change to the  Partnership in conformity with this
Section 12.3.

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

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

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

         12.6  Additional  Partners.  Each  substitute,  additional or successor
Partner shall become a signatory  hereof by signing such number of  counterparts
of this Agreement and such other

                                       23
<PAGE>

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

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

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

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

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

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

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

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

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

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

                                       24
<PAGE>

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

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       25
<PAGE>

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

GENERAL PARTNER:

LS GAS, LLC

By:
    -----------------------------------
    Mark Bush
    Managing Member

LIMITED PARTNERS:

Attached  Powers of Attorneys.

<PAGE>

                                    EXHIBIT B

                               SPECIAL ALLOCATIONS

1.       Special Tax Allocations.

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

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

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

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

                                       26
<PAGE>

determined in accordance with  Regulations  Section  1.704-2(i)(4).  Allocations
pursuant to the previous  sentence shall be made in proportion to the respective
amounts required to be allocated to each Partner pursuant thereto.  The items to
be so allocated shall be determined in accordance with Section 1.704-2(i)(4) and
1.704-2(j)(2) of the  Regulations.  This Section 1(d) is intended to comply with
the  minimum  gain  chargeback  requirement  in  Section  1.704-2(i)(4)  of  the
Regulations and shall be interpreted consistently therewith.

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

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

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

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

2.       Other Allocation Rules.

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

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

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

<PAGE>

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

<PAGE>

                                    EXHIBIT A

                        PARTNERS AS OF DECEMBER 31, 2002

<TABLE>
<CAPTION>

                                                           INITIAL CAPITAL                      PERCENTAGE
                                                            CONTRIBUTION                         INTEREST
                                                            ------------                         --------

LIMITED PARTNERS:
-----------------
<S>                                                        <C>                                  <C>
Continental Southern Resources Inc.                           $661,500                            24.225%
111 Presidential Blvd. Suite 158A
Bala Cynwyd, PA  19004

BPK Resources, Inc.                                           $256,500                            9.405%
5858 Westheimer Street, Suite 709
Houston, TX  77057

Michael Marcus                                                $135,000                             4.95%
1505 Rockcliff Road
Austin, TX  78746

CBG Compagnie Bancaire Geneve                                  $27,000                             .99%
Avenue De Rumine 20
1005 Lausanne
Switzerland
                                                                                                   6.93%
Fenmore Consultants, Ltd.                                     $189,000
PO Box 599, Suite 3
Caribbean Place, Providenciales
Turks & Caicos Islands                                                                             1.98%

Rhodes Ventures, S.A.                                          $54,000
P.H. Plaza 200 Building
16th Floor - 50th Street
Panama R.P.                                                                                        5.94%

Michael J. Garnick                                            $162,000
1590 Stocton Road
Meadowbrook, PA  19406                                                                             9.9%

John Paul DeJoria                                             $270,000
PO Box 34540
Las Vegas, NV  89133                                                                              1.485%

William F. Miller III                                          $40,500
2216 Sunset
Houston, TX  77005

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                           INITIAL CAPITAL                      PERCENTAGE
                                                            CONTRIBUTION                         INTEREST
                                                            ------------                         --------
<S>                                                <C>                                          <C>
Richard Genovese                                               $27,000                             .99%
Le Montagne
7 Avenue De Grand Bretagne
Monte Carlo 98000
Monaco

Louisiana X Investors, LLC                                    $877,500                            29.175%
One Belmont Avenue, Suite 417
Bala Cynwyd, PA  19004

International Travel CD's Inc.                      Carried through completion of                  3.0%
5858 Westheimer Street, Suite 708                            first well
Houston, Texas  77057

GENERAL PARTNER:

LS Gas, LLC                                                    $27,000                              1%
5858 Westheimer Street, Suite 708
Houston, TX  77057
</TABLE>

<PAGE>

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