Document:

EXHIBIT 4.4

                       RECKSON OPERATING PARTNERSHIP, L.P.

                                       and

                     AMERICAN STOCK TRANSFER & TRUST COMPANY

                                RIGHTS AGREEMENT

                          Dated as of October 13, 2000

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                                TABLE OF CONTENTS

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                                                                                                                Page
                                                                                                                ----

<S>          <C>                                                                                                 <C>
Section 1.   Certain Definitions..................................................................................1

Section 2.   Appointment of Rights Agent..........................................................................5

Section 3.   Issuance of Right Certificates.......................................................................5

Section 4.   Form of Right Certificate............................................................................6

Section 5.   Countersignature and Registration....................................................................7

Section 6.   Transfer, Split-Up, Combination and Exchange of Right Certificates;
             Mutilated, Destroyed, Lost or Stolen Right Certificate...............................................8

Section 7.   Exercise of Rights; Purchase Price; Expiration Date of Rights........................................9

Section 8.   Cancellation and Destruction of Right Certificates..................................................11

Section 9.   Reservation and Availability of Preferred Units.....................................................11

Section 10.  Preferred Units Record Date.........................................................................12

Section 11.  Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights.........................13

Section 12.  Certificate of Adjusted Purchase Price or Number of Securities......................................20

Section 13.  Consolidation, Merger or Sale or Transfer of Assets or Earning Power................................20

Section 14.  Fractional Rights and Fractional Units..............................................................25

Section 15.  Rights of Action....................................................................................26

Section 16.  Agreement of Right Holders..........................................................................27

Section 17.  Right Certificate Holder Not Deemed a Unitholder....................................................27

Section 18.  Concerning the Rights Agent.........................................................................28

Section 19.  Merger or Consolidation or Change of Name of Rights Agent...........................................29

Section 20.  Duties of Rights Agent..............................................................................29
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<TABLE>
<CAPTION>
<S>          <C>                                                                                                 <C>
Section 21.  Change of Rights Agent..............................................................................32

Section 22.  Issuance of New Right Certificates..................................................................33

Section 23.  Redemption and Termination..........................................................................33

Section 24.  Exchange............................................................................................34

Section 25.  Notice of Certain Events............................................................................35

Section 26.  Notices.............................................................................................36

Section 27.  Supplements and Amendments..........................................................................37

Section 28.  Determination and Actions by the General Partner....................................................38

Section 29.  Successors..........................................................................................38

Section 30.  Benefits of this Agreement..........................................................................38

Section 31.  Severability........................................................................................39

Section 32.  Governing Law.......................................................................................39

Section 33.  Counterparts........................................................................................39

Section 34.  Descriptive Headings................................................................................39

Exhibit A - Form of Supplement to the Amended and Restated Agreement of
             Limited Partnership

Exhibit B - Form of Right Certificate
</TABLE>

                                       ii

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Defined Term Cross Reference Sheet

Term                                                            Location
---------------------------------                       ------------------------
Acquiring Person                                        Section 1(a)
Act                                                     Section 1(b)
Adjustment Units                                        Section 11(a)(ii)
Adjusted Number of Units                                Section 11(a)(iii)
Adjusted Purchase Price                                 Section 11(a)(iii)
Affiliate                                               Section 1(c)
Agreement                                               Preface
Associate                                               Section 1(c)
Beneficial Owner                                        Section 1(d)
Beneficially Own                                        Section 1(d)
Business Day                                            Section 1(e)
Close of Business                                       Section 1(f)
Common Shares                                           Section 1(g)
Corporation                                             Section 1(h)
current per unit market price                           Section 11(d)(i)
Distribution Date                                       Section 3(a)
Documents                                               Section 18
equivalent preferred units                              Section 11(b)
Excess Shares                                           Section 1(j)
Exchange Act                                            Section 1(c)
Exchange Ratio                                          Section 24(a)
Final Expiration Date                                   Section 7(a)
First Issuance                                          Exhibit A, Page A5
General Partner                                         Section 1(l)
Interested Stockholder                                  Section 1(m)
Liquidation                                             Exhibit A, Page A6
Nasdaq                                                  Section 11(d)(i)
Ownership                                               Section 1(n)
Partnership                                             Preface
Partnership Agreement                                   Section 1(o)
Partnership Principal Party                             Section 13(c)
Partnership Rights Agreement                            Exhibit A Recitals
Partnership Section 13 Event                            Section 13(a)(2)
Partnership Unit                                        Section 1(p)
Permitted Offer                                         Section 1(q)
Person                                                  Section 1(r)
Preferred Units                                         Section 1(s)
Principal Party                                         Section 13(b)
Proration Factor                                        Section 11(a)(iii)
Purchase Price                                          Section 4(a)

                                       i

<PAGE>

Quarterly Distribution Payment Date                     Exhibit A, Page A5
Record Date                                             Preface
Redemption Date                                         Section 7(a)
Redemption Price                                        Section 23(a)(i)
Right                                                   Preface
Right Certificate                                       Section 3(a)
Rights Agent                                            Preface
Section 11(a)(ii) Event                                 Section 11(a)(ii)
Section 13 Event                                        Section 13(a)
Security                                                Section 11(d)(i)
Series F Preferred Units                                Exhibit A, Page A2
Shares Acquisition Date                                 Section 1(w)
Subsidiary                                              Section 1(x)
then outstanding                                        Section 1(d)(iii)
Trading Day                                             Section 11(d)(i)
Triggering Event                                        Section 11(a)(ii), 13(a)
unit equivalent                                         Section 11(a)(iii)
voting securities                                       Section 13(a)

                                       ii

<PAGE>

                                RIGHTS AGREEMENT

         RIGHTS  AGREEMENT,  dated as of October  13,  2000 (this  "Agreement"),
between Reckson Operating  Partnership,  L.P., a limited  partnership  organized
under the laws of Delaware (the  "Partnership"),  and American  Stock Transfer &
Trust Company (the "Rights Agent").

         The General  Partner (as  hereinafter  defined) of the  Partnership has
authorized and declared a  distribution  of one preferred unit purchase right (a
"Right") for each Partnership  Unit (as hereinafter  defined) of the Partnership
outstanding  at the Close of Business on October 27, 2000 (the  "Record  Date"),
each Right  representing the right to purchase one one-thousandth of a Preferred
Unit (as  hereinafter  defined),  upon the terms and  subject to the  conditions
herein set forth,  and has further  authorized  and directed the issuance of one
Right  with  respect to each  Partnership  Unit that  shall  become  outstanding
between  the  Record  Date  and  the  earliest  of the  Distribution  Date,  the
Redemption  Date or the Final  Expiration  Date (as such  terms are  hereinafter
defined);  provided,  however,  that  Rights  may  be  issued  with  respect  to
Partnership Units that shall become  outstanding after the Distribution Date and
prior to the earlier of the  Redemption  Date and the Final  Expiration  Date in
accordance with the provisions of Section 22 of this Agreement.

         Accordingly, in consideration of the promises and the mutual agreements
herein set forth, the parties hereby agree as follows:

         Section 1. Certain Definitions.

         For purposes of this  Agreement,  the following terms have the meanings
indicated:

         (a)  "Acquiring  Person"  shall mean any Person who or which,  together
with all Affiliates and Associates of such Person, shall be the Beneficial Owner
of 15% or more of the then outstanding  Common Shares (other than as a result of
a Permitted  Offer (as hereinafter  defined)) or was such a Beneficial  Owner at
any time after the date hereof,  whether or not such person  continues to be the
Beneficial  Owner  of 15%  or  more  of  the  then  outstanding  Common  Shares.
Notwithstanding the foregoing, (A) the term "Acquiring Person" shall not include
(i) the Corporation, (ii) any Subsidiary of the Corporation,  (iii) any employee
benefit plan of the  Corporation or of any Subsidiary of the  Corporation,  (iv)
any Person or entity organized,  appointed or established by the Corporation for
or  pursuant  to the terms of any such  plan,  or (v) any  Person,  who or which
together  with  all  Affiliates  and  Associates  of  such  Person  becomes  the
Beneficial  Owner  of 15% or more of the then  outstanding  Common  Shares  as a
result of the acquisition of Common Shares directly from the Corporation and (B)
no Person shall be deemed to be an "Acquiring  Person" either (X) as a result of
the  acquisition  of Common  Shares by the  Corporation  which,  by reducing the
number of Common Shares outstanding, increases the proportional number of shares
beneficially owned by such Person together with all Affiliates and Associates of
such Person; except that if (i) a Person would become an

                                       1
<PAGE>

Acquiring  Person (but for the operation of this subclause X) as a result of the
acquisition  of Common  Shares by the  Corporation,  and (ii)  after  such share
acquisition  by the  Corporation,  such Person,  or an Affiliate or Associate of
such Person,  becomes the Beneficial Owner of any additional Common Shares, then
such Person shall be deemed an Acquiring Person, or (Y) if such Person became an
Acquiring  Person  inadvertently,  (i) promptly after such Person discovers that
such  Person  would  otherwise  have  become an  Acquiring  Person  (but for the
operation of this  subclause Y), such Person  notifies the Board of Directors of
the  Corporation  that such Person did so  inadvertently  and (ii) within 2 days
after such notification, such Person is the Beneficial Owner of less than 15% of
the outstanding Common Shares.

         (b) "Act" shall mean the  Securities  Act of 1933, as amended and as in
effect on the date of this Agreement.

         (c)  "Affiliate"  and  "Associate"  shall have the respective  meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations  under
the  Securities  Exchange  Act of 1934,  as amended and in effect on the date of
this Agreement (the "Exchange Act").

         (d) A Person  shall be deemed  the  "Beneficial  Owner" of and shall be
deemed to "Beneficially Own" any securities:

             (i)  which  such  Person  or any of  such  Person's  Affiliates  or
Associates beneficially owns, directly or indirectly;

             (ii)  which  such  Person  or any of such  Person's  Affiliates  or
Associates  has (A) the right to  acquire  (whether  such  right is  exercisable
immediately  or only  after the  passage  of time)  pursuant  to any  agreement,
arrangement  or  understanding,  or upon  the  exercise  of  conversion  rights,
exchange  rights,  rights  (other than the  Rights),  warrants  or  options,  or
otherwise;  provided,  however, that a Person shall not be deemed the Beneficial
Owner of, or to Beneficially  Own,  securities  tendered pursuant to a tender or
exchange  offer  made by or on  behalf of such  Person  or any of such  Person's
Affiliates  or  Associates  until such  tendered  securities  are  accepted  for
purchase  or  exchange;  or (B) the  right to vote  pursuant  to any  agreement,
arrangement  or  understanding;  provided,  however,  that a Person shall not be
deemed the  Beneficial  Owner of, or to  Beneficially  Own,  any security if the
agreement,  arrangement or understanding to vote such security (1) arises solely
from a revocable  proxy or consent  given to such Person in response to a public
proxy or consent  solicitation  made  pursuant to, and in accordance  with,  the
applicable rules and regulations  promulgated  under the Exchange Act and (2) is
not also  then  reportable  on  Schedule  13D  under  the  Exchange  Act (or any
comparable or successor report); or

             (iii) which are beneficially owned, directly or indirectly,  by any
other Person (or any Affiliate or Associate  thereof) with which such Person (or
any of such

                                       2
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Person's   Affiliates  or  Associates)   has  any   agreement,   arrangement  or
understanding (other than customary agreements with and between underwriters and
selling group members with respect to a bona fide public offering of securities)
relating to the acquisition,  holding, voting (except to the extent contemplated
by the proviso to Section  1(d)(ii)(B))  or disposing of any  securities  of the
Corporation.

         Notwithstanding  anything in this definition of Beneficial Ownership to
the  contrary,  the phrase  "then  outstanding,"  when used with  reference to a
Person's Beneficial  Ownership of securities of the Corporation,  shall mean the
number of such securities  then issued and outstanding  together with the number
of such securities not then actually  issued and  outstanding  which such Person
would be deemed to own beneficially hereunder.

         (e) "Business Day" shall mean any day other than a Saturday,  Sunday or
U.S. federal holiday.

         (f) "Close of  Business"  on any given  date shall mean 5:00 P.M.,  New
York City, New York time, on such date; provided,  however, that if such date is
not a Business Day it shall mean 5:00 P.M., New York City, New York time, on the
next succeeding Business Day.

         (g) "Common Shares" when used with reference to the  Corporation  shall
mean the  shares of class A common  stock,  par  value  $.01 per  share,  of the
Corporation or, in the event of a subdivision, combination or consolidation with
respect to such shares of common  stock,  the shares of common  stock  resulting
from such subdivision,  combination or consolidation.  "Common Shares" when used
with reference to any Person other than the  Corporation  shall mean the capital
stock (or equity  interest) with the greatest  voting power of such other Person
or, if such  other  Person is a  Subsidiary  of  another  Person,  the Person or
Persons which ultimately control such first-mentioned Person.

         (h)  "Corporation"  means Reckson  Associates  Realty Corp., a Maryland
corporation.

         (i)  "Distribution  Date" shall have the meaning set forth in Section 3
hereof.

         (j) "Excess  Shares"  means shares of "Excess  Stock" as defined in the
Corporation's Articles of Incorporation or "Class B Excess Common" as defined in
the  articles  supplementary  establishing  the  rights and  preferences  of the
Corporation's class B common stock, par value $.01 per share.

         (k) "Final Expiration Date" shall have the meaning set forth in Section
7 hereof.

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<PAGE>

         (l) "General Partner" means Reckson Associates Realty Corp., a Maryland
corporation,  in its capacity as the general partner of the Partnership,  or any
person  who  becomes  an  additional  or  successor   general   partner  of  the
Partnership.

         (m)  "Interested  Stockholder"  shall mean any Acquiring  Person or any
Affiliate or  Associate of an Acquiring  Person or any other Person in which any
such  Acquiring  Person,  Affiliate or Associate  has an interest,  or any other
Person  acting  directly or  indirectly on behalf of or in concert with any such
Acquiring Person, Affiliate or Associate.

         (n)  "Ownership"  means  ownership  of rights or  capital  stock of the
Corporation by a Person who is or would be treated as an owner of such rights or
capital stock directly or constructively  through the application of (a) section
544 of the Internal  Revenue Code as modified by section  856(h) of the Internal
Revenue  Code or (b) section  318 of the  Internal  Revenue  Code as modified by
section 856(d)(5) of the Internal Revenue Code. "Owner", "Own" and "Owned" shall
have correlative meanings.

         (o) "Partnership  Agreement" means the Agreement of Limited Partnership
of Reckson  Operating  Partnership,  L.P.,  dated June 2, 1995,  as amended  and
restated and all supplements thereto.

         (p) "Partnership  Unit" means a Class A Common  Partnership Unit of the
Partnership.

         (q)  "Permitted  Offer" shall mean a tender or exchange  offer which is
for all outstanding  Common Shares at a price and on terms determined,  prior to
the  purchase  of shares  under such  tender or  exchange  offer,  by at least a
majority of the members of the Board of Directors of the Corporation who are not
officers of the  Corporation  and who are not  Acquiring  Persons or Persons who
would  become  Acquiring  Persons  as a  result  of the  offer  in  question  or
Affiliates,  Associates,  nominees or  representatives of any such Person, to be
adequate  (taking  into account all factors that such  Directors  deem  relevant
including,  without limitation,  prices that could reasonably be achieved if the
Corporation  or its assets  were sold on an orderly  basis  designed  to realize
maximum  value) and otherwise in the best interests of the  Corporation  and its
stockholders  (other than the Person or any  Affiliate or  Associate  thereof on
whose  behalf the offer is being made) taking into account all factors that such
directors may deem relevant.

         (r) "Person" shall mean any individual, firm, partnership, corporation,
limited liability company,  trust,  association,  joint venture or other entity,
and shall include any successor (by merger or otherwise) of such entity.

         (s)  "Preferred  Units"  shall  mean  Series F  Preferred  Units of the
Partnership.

         (t)  "Redemption  Date"  shall have the  meaning set forth in Section 7
hereof.

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<PAGE>

         (u) "Section 11(a)(ii) Event" shall mean any event described in Section
11(a)(ii) hereof.

         (v)  "Section 13 Event"  shall mean any event  described in clause (x),
(y) or (z) of Section 13(a) hereof.

         (w)  "Shares  Acquisition  Date"  shall  mean the first  date of public
announcement  (which,  for purposes of this definition,  shall include,  without
limitation,  a report filed pursuant to the Exchange Act) by the  Corporation or
an Acquiring Person that an Acquiring Person has become such; provided, that, if
such Person is  determined  not to have become an Acquiring  Person  pursuant to
Section  1(a)(B)(Y)  hereof,  then no Shares Acquisition Date shall be deemed to
have occurred.

         (x)  "Subsidiary"  of any Person  shall mean any  corporation  or other
Person of which a majority of the voting power of the voting  equity  securities
or equity interest is owned, directly or indirectly, by such Person.

         (y)  "Triggering  Event" shall mean any Section  11(a)(ii) Event or any
Section 13 Event.

         Section 2. Appointment of Rights Agent.

         The  Partnership  hereby  appoints the Rights Agent to act as agent for
the  Partnership  in accordance  with the terms and conditions  hereof,  and the
Rights Agent hereby accepts such  appointment.  The Partnership may from time to
time appoint such  co-Rights  Agents as it may deem  necessary or desirable upon
ten (10) days' prior written notice to the Rights Agent.  The Rights Agent shall
have no duty to  supervise,  and shall in no event be liable  for,  the acts and
omissions of any such co-Rights Agent.

         Section 3. Issuance of Right Certificates.

         (a) Until the  earlier of (i) the Shares  Acquisition  Date or (ii) the
Close of Business on the tenth day (or such later date as may be  determined  by
the General  Partner)  after the date of the  commencement  by any Person (other
than the Corporation,  any Subsidiary of the  Corporation,  any employee benefit
plan of the Corporation or of any Subsidiary of the Corporation or any Person or
entity organized, appointed or established by the Corporation for or pursuant to
the  terms of any such  plan) of, or of the  first  public  announcement  of the
intention  of any Person  (other than the  Corporation,  any  Subsidiary  of the
Corporation,  any employee  benefit plan of the Corporation or of any Subsidiary
of the Corporation or any Person or entity  organized,  appointed or established
by the  Corporation  for or  pursuant to the terms of any such plan) to commence
(which intention to commence remains in effect for five Business Days after such
announcement), a tender or exchange offer the consummation of which would result
in any Person becoming an Acquiring Person  (including,  in the case of both (i)
and (ii), any

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<PAGE>

such date which is after the date of this Agreement and prior to the issuance of
the  Rights),  the  earlier  of  such  dates  being  herein  referred  to as the
"Distribution  Date," (x) the Rights will be attached to the  Partnership  Units
registered  in the  names  of the  holders  thereof  and not by  separate  Right
Certificates,   and  (y)  the  right  to  receive  Right  Certificates  will  be
transferable only in connection with the transfer of the underlying  Partnership
Units (including a transfer to the Partnership);  provided,  however,  that if a
tender or exchange offer is terminated prior to the occurrence of a Distribution
Date,  then no  Distribution  Date  shall  occur as a result  of such  tender or
exchange  offer.  As  soon as  practicable  after  the  Distribution  Date,  the
Partnership will prepare and execute, the Rights Agent will countersign, and the
Partnership will send or cause to be sent by first- class, postage-prepaid mail,
to each record  holder of  Partnership  Units as of the Close of Business on the
Distribution  Date,  at the address of such  holder  shown on the records of the
Partnership, a Right Certificate,  substantially in the form of Exhibit B hereto
(a "Right Certificate"), evidencing one Right for each Partnership Unit so held.
As of and after the  Distribution  Date, the Rights will be evidenced  solely by
such Right Certificates.

         (b) With  respect to  Partnership  Units  outstanding  as of the Record
Date,  until  the  Distribution  Date,  the  Rights  will  be  attached  to such
Partnership  Units and the  surrender  for  transfer  of any  Partnership  Units
outstanding on the Record Date, shall also constitute the transfer of the Rights
associated  with such  Partnership  Units.  As a result of the execution of this
Agreement,  on October 13, 2000, each  Partnership Unit outstanding on such date
shall, subject to the terms and conditions of this Agreement, also represent one
Right  and  shall,  subject  to the  terms  and  conditions  of this  Agreement,
represent the right to purchase one one-thousandth of a Preferred Unit.

         (c) In the  event  that  the  Partnership  purchases  or  acquires  any
Partnership Units after the Record Date but prior to the Distribution  Date, any
Rights  associated  with such  Partnership  Units shall be deemed  canceled  and
retired so that the  Partnership  shall not be entitled  to exercise  any Rights
associated with the Partnership Units which are no longer outstanding.

         Section 4. Form of Right Certificate.

         (a) The Right  Certificates  (and the forms of election to purchase and
of assignment to be printed on the reverse  thereof) shall be  substantially  in
the form set forth in Exhibit B hereto and may have such marks of identification
or designation and such legends,  summaries or  endorsements  printed thereon as
the  Partnership  may deem  appropriate  (which  do not  affect  the  duties  or
responsibilities  of the  Rights  Agent)  and as are not  inconsistent  with the
provisions  of  this  Agreement,  or as may  be  required  to  comply  with  any
applicable law or with any rule or regulation made pursuant  thereto or with any
rule or  regulation  of any stock  exchange on which the Rights may from time to
time be listed, or to conform to usage.  Subject to the provisions of Section 7,
Section 11 and  Section 22 hereof,  the Right  Certificates  shall  entitle  the
holders  thereof to purchase such number of one  one-thousandths  of a Preferred
Unit as shall be set forth  therein  at the

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<PAGE>

price  per one  one-thousandth  of a  Preferred  Unit  set  forth  therein  (the
"Purchase  Price"),  but the amount and type of securities  purchasable upon the
exercise  of each  Right and the  Purchase  Price  thereof  shall be  subject to
adjustment as provided herein.

         (b) Any Right Certificate issued pursuant to Section 3(a) or Section 22
hereof that  represents  Rights which are null and void pursuant to Section 7(e)
of this  Agreement  and any Right  Certificate  issued  pursuant to Section 6 or
Section 11 hereof upon  transfer,  exchange,  replacement  or  adjustment of any
other Right  Certificate  referred to in this  sentence,  shall  contain (to the
extent feasible) the following legend:

                  "The Rights  represented by this Right Certificate are or were
         Beneficially Owned by a Person who was or became an Acquiring Person or
         an Affiliate  or  Associate  of an Acquiring  Person (as such terms are
         defined in the Rights Agreement).  Accordingly,  this Right Certificate
         and the Rights represented hereby are null and void."

         Provisions of Section 7(e) of this Agreement shall be operative whether
or not the  foregoing  legend is  contained on any such Right  Certificate.  The
Partnership  shall  notify the Rights Agent to the extent that this Section 4(b)
applies.

         Section 5. Countersignature and Registration.

         The Right  Certificates  shall be executed on behalf of the Partnership
by the General  Partner,  either manually or by facsimile  signature.  The Right
Certificates  shall be  countersigned by the Rights Agent and shall not be valid
for any  purpose  unless so  countersigned.  In case any  officer of the General
Partner who shall have signed any of the Right Certificates shall cease to be an
officer of the General Partner before  countersignature  by the Rights Agent and
issuance  and  delivery by the General  Partner,  such Rights  Certificates  may
nevertheless  be  countersigned  by the Rights Agent and issued and delivered by
the  General  Partner  with the same  force and  effect as though the person who
signed such Right  Certificates had not ceased to be such officer of the General
Partner;  and any Right  Certificate  may be  signed  on  behalf of the  General
Partner by any Person  who, at the actual  date of the  execution  of such Right
Certificate, shall be a proper officer of the General Partner to sign such Right
Certificate,  although at the date of the  execution of this  Agreement any such
Person was not such an officer.

         Following  the  Distribution  Date and receipt by the Rights Agent of a
list of record  holders  of Rights,  the  Rights  Agent will keep or cause to be
kept, at its office set forth in Section 26 hereof or offices  designated as the
appropriate place for surrender of such Right Certificate or transfer, books for
registration and transfer of the Right Certificates issued hereunder. Such books
shall  show the names  and  addresses  of the  respective  holders  of the Right
Certificates,  the number of Rights  evidenced  on its face by each of the Right
Certificates  and  the  certificate  number  and the  date of each of the  Right
Certificates.

                                       7
<PAGE>

          Section 6. Transfer,  Split-Up,  Combination  and  Exchange  of  Right
                     Certificates;  Mutilated,  Destroyed,  Lost or Stolen Right
                     Certificate.

         Subject to the provisions of Section 4(b),  Section 7(e) and Section 14
hereof, at any time after the Close of Business on the Distribution Date, and at
or prior to the Close of Business on the earlier of the  Redemption  Date or the
Final  Expiration  Date,  any Right  Certificate  or Right  Certificates  may be
transferred,  split up,  combined or exchanged for another Right  Certificate or
Right Certificates, entitling the registered holder to purchase a like number of
one one-thousandths of a Preferred Unit (or, following a Triggering Event, other
securities,  as the case may be) as the Right Certificate or Right  Certificates
surrendered  then  entitle  such  holder  (or  former  holder  in the  case of a
transfer) to purchase.  Any registered  holder  desiring to transfer,  split up,
combine or exchange any Right Certificate or Right  Certificates shall make such
request in writing  delivered to the Rights Agent, and shall surrender the Right
Certificate  or Right  Certificates  to be  transferred,  split up,  combined or
exchanged  at the  office or offices of the  Rights  Agent  designated  for such
purpose. Neither the Rights Agent nor the Partnership shall be obligated to take
any action whatsoever with respect to the transfer of any such surrendered Right
Certificate  until the  registered  holder shall have  completed  and signed the
certificate  contained  in the form of  assignment  on the reverse  side of such
Right  Certificate  and shall have  provided  such  additional  evidence  of the
identity of the Beneficial Owner (or former  Beneficial  Owner) or Affiliates or
Associates  thereof as the  Partnership  or the Rights  Agent  shall  reasonably
request. Thereupon the Rights Agent shall, subject to Section 4(b), Section 7(e)
and Section 14 hereof,  countersign and deliver to the Person entitled thereto a
Right  Certificate or Right  Certificates,  as the case may be, as so requested.
The  Partnership  may require  payment of a sum  sufficient  to cover any tax or
governmental  charge that may be imposed in connection with any transfer,  split
up, combination or exchange of Right Certificates.  If the Partnership  requires
the payment referred to in the immediately  preceding sentence,  then the Rights
Agent shall not be required to process any transaction  until it receives notice
from the Partnership that the Partnership has received such payment.

         Upon  receipt  by the  Partnership  and the  Rights  Agent of  evidence
satisfactory  to them of the loss,  theft,  destruction or mutilation of a Right
Certificate,  and,  in case of  loss,  theft or  destruction,  of  indemnity  or
security  reasonably  satisfactory to them, and, at the  Partnership's  request,
reimbursement to the Partnership and the Rights Agent of all reasonable expenses
incidental  thereto,  and upon surrender to the Rights Agent and cancellation of
the Right Certificate if mutilated,  the Partnership will make and deliver a new
Right  Certificate  of like tenor to the Rights Agent for  countersignature  and
delivery  to the  registered  holder in lieu of the Right  Certificate  so lost,
stolen, destroyed or mutilated.

                                       8
<PAGE>

         Section  7. Exercise  of  Rights;  Purchase  Price;  Expiration Date of
                     Rights.

         (a) Subject to Section 7(e) hereof,  the registered holder of any Right
Certificate  may  exercise  the Rights  evidenced  thereby  (except as otherwise
provided  herein)  in whole or in part at any time after the  Distribution  Date
upon surrender of the Right  Certificate,  with the form of election to purchase
and the  certificate  on the reverse side thereof duly  executed,  to the Rights
Agent at the office or offices of the Rights Agent  designated for such purpose,
together  with payment of the aggregate  Purchase  Price for the total number of
one  one-thousandths  of a Preferred Unit (or other securities,  as the case may
be) as to  which  such  surrendered  Rights  are  exercised,  at or prior to the
earliest of (i) the Close of Business on October 13, 2010 (the "Final Expiration
Date"), (ii) the time at which the Rights are redeemed as provided in Section 23
hereof (the "Redemption Date"); (iii) the time at which the Rights are exchanged
as  provided in Section 24 hereof,  or (iv) the  consummation  of a  transaction
contemplated by Section 13(d) hereof.

         (b) The Purchase Price for each one  one-thousandth of a Preferred Unit
pursuant to the exercise of a Right shall initially be $84.44,  shall be subject
to adjustment from time to time as provided in the next sentence and in Sections
11 and 13(a) hereof and shall be payable in accordance with paragraph (c) below.
Anything in this Agreement to the contrary notwithstanding, in the event that at
any time after the date of this  Agreement and prior to the  Distribution  Date,
the  Partnership  shall (i) declare or pay any  distribution  on the Partnership
Units payable in Partnership Units or (ii) effect a subdivision,  combination or
consolidation of the Partnership Units (by reclassification or otherwise than by
payment of distribution in Partnership Units) into a greater or lesser number of
Partnership  Units,  then in any such case, each  Partnership  Unit  outstanding
following such subdivision,  combination or consolidation shall continue to have
one Right  associated  therewith and the Purchase Price following any such event
shall be  proportionately  adjusted to equal the result  obtained by multiplying
the Purchase Price  immediately  prior to such event by a fraction the numerator
of which shall be the total number of Partnership Units outstanding  immediately
prior to the  occurrence of the event and the  denominator of which shall be the
total  number  of  Partnership  Units  outstanding   immediately  following  the
occurrence of such event. The adjustment  provided for in the preceding sentence
shall be made successively  whenever such a distribution is made or paid or such
a subdivision, combination or consolidation is effected.

         (c)  Upon  receipt  of a  Right  Certificate  representing  exercisable
Rights, with the form of election to purchase and the certificate duly executed,
accompanied by payment of the Purchase  Price for the Preferred  Units (or other
securities,  as the  case may be) to be  purchased  and an  amount  equal to any
applicable tax or governmental  charge required to be paid by the holder of such
Right  Certificate  in  accordance  with  Section 6 hereof by  certified  check,
cashier's  check or money  order  payable to the order of the  Partnership,  the
Rights Agent shall thereupon  promptly (i) (A) if the  Partnership,  in its sole
discretion,  shall have elected to deposit the  Preferred  Units  issuable  upon
exercise  of

                                       9
<PAGE>

the Rights  hereunder into a depositary,  requisition  from the depositary agent
depositary  receipts  representing  such  number  of  one  one-thousandths  of a
Preferred  Unit as are to be  purchased  and the  Partnership  will  direct  the
depositary  agent  to  comply  with  such  requests,   (ii)  when   appropriate,
requisition  from  the  Partnership  the  amount  of  cash to be paid in lieu of
issuance of fractional  Units in accordance with Section 14 hereof,  (iii) after
receipt of such depositary  receipts,  cause the same to be delivered to or upon
the order of the registered holder of such Right Certificate, registered in such
name or names as may be  designated by such holder,  and (iv) when  appropriate,
after receipt thereof,  deliver such cash to or upon the order of the registered
holder of such Right Certificate. In the event that the Partnership is obligated
to issue  other  securities  (including  Partnership  Units) of the  Partnership
pursuant to Section 11(a) hereof,  the  Partnership  will make all  arrangements
necessary so that such other  securities are available for  distribution  by the
Rights Agent, if and when necessary to comply with this Agreement.

         In  addition,  in the case of an  exercise  of the  Rights  by a holder
pursuant  to  Section  11(a)(ii),  the  Rights  Agent  shall  return  such Right
Certificate  to the  registered  holder  thereof after  imprinting,  stamping or
otherwise   indicating  thereon  that  the  rights  represented  by  such  Right
Certificate no longer include the rights  provided by Section  11(a)(ii) of this
Agreement and if less than all the Rights  represented by such Right Certificate
were so exercised,  the Rights Agent shall indicate on the Right Certificate the
number of Rights  represented  thereby  which  continue  to  include  the rights
provided by Section 11(a)(ii).

         (d) In case  the  registered  holder  of any  Right  Certificate  shall
exercise less than all the Rights  evidenced  thereby,  a new Right  Certificate
evidencing Rights equivalent to the Rights remaining unexercised shall be issued
by the Rights Agent to the registered holder of such Right Certificate or to his
duly authorized  assigns,  subject to the provisions of Section 6 and Section 14
hereof,  or the Rights  Agent shall place an  appropriate  notation on the Right
Certificate with respect to those Rights exercised.

         (e)  Notwithstanding  anything in this Agreement to the contrary,  from
and  after  the  first  occurrence  of a Section  11(a)(ii)  Event,  any  Rights
Beneficially Owned by (i) an Acquiring Person or an Affiliate or Associate of an
Acquiring Person,  (ii) a transferee of an Acquiring Person (or of any Affiliate
or  Associate  thereof)  who becomes a  transferee  after the  Acquiring  Person
becomes such, or (iii) a transferee of an Acquiring  Person (or of any Affiliate
or Associate thereof) who becomes a transferee prior to or concurrently with the
Acquiring Person becoming such and receives such Rights pursuant to either (A) a
transfer (whether or not for consideration) from the Acquiring Person to holders
of equity  interests  in such  Acquiring  Person or to any Person  with whom the
Acquiring  Person  has a  continuing  agreement,  arrangement  or  understanding
regarding the transferred Rights or (B) a transfer which the General Partner has
determined is part of an agreement,  arrangement or understanding which has as a
primary purpose or effect the avoidance of this Section 7(e),  shall become null
and void without any further action and

                                       10
<PAGE>

no holder of such Rights shall have any rights  whatsoever  with respect to such
Rights,  whether  under  any  provision  of this  Agreement  or  otherwise.  The
Partnership  shall  notify the Rights  Agent when this  Section 7(e) applies and
shall use all  reasonable  efforts to insure that the provisions of this Section
7(e) and Section 4(b) hereof are complied with, but neither the  Partnership nor
the Rights Agent shall have any liability to any holder of Right Certificates or
other Person as a result of the Partnership's failure to make any determinations
with respect to an Acquiring Person or its Affiliates, Associates or transferees
hereunder.

         (f) Notwithstanding anything in this Agreement to the contrary, neither
the Rights Agent nor the Partnership  shall be obligated to undertake any action
with  respect  to a  registered  holder  upon the  occurrence  of any  purported
exercise as set forth in this Section 7 unless such registered holder shall have
(i)  properly  completed  and signed the  certificate  contained  in the form of
election to  purchase  set forth on the  reverse  side of the Right  Certificate
surrendered for such exercise, and (ii) provided such additional evidence of the
identity of the Beneficial Owner (or former  Beneficial  Owner) or Affiliates or
Associates  thereof as the  Partnership  or the Rights  Agent  shall  reasonably
request.

         Section 8. Cancellation and Destruction of Right Certificates.

         All  Right  Certificates  surrendered  for  the  purpose  of  exercise,
transfer,  split up,  combination  or  exchange  shall,  if  surrendered  to the
Partnership  or to any of its  agents,  be  delivered  to the  Rights  Agent for
cancellation or in canceled form, or, if surrendered to the Rights Agent,  shall
be canceled  by it, and no Right  Certificates  shall be issued in lieu  thereof
except as expressly  permitted by any of the provisions of this  Agreement.  The
Partnership  shall deliver to the Rights Agent for  cancellation and retirement,
and the Rights  Agent  shall so cancel and retire,  any other Right  Certificate
purchased  or  acquired  by the  Partnership  otherwise  than upon the  exercise
thereof.  The Rights Agent shall deliver all canceled Right  Certificates to the
Partnership,  or shall, at the written request of the Partnership,  destroy such
canceled  Right  Certificates,  and in such case shall deliver a certificate  of
destruction thereof to the Partnership.

         Section 9. Reservation and Availability of Preferred Units.

         At all times prior to the occurrence of a Section  11(a)(ii) Event, the
Partnership  will  cause  to be  reserved  and kept  available,  the  number  of
Preferred  Units that will be  sufficient  to permit the exercise in full of all
outstanding  Rights and,  after the  occurrence  of a Section  11(a)(ii)  Event,
shall,  to the extent  reasonably  practicable,  so reserve and keep available a
sufficient  number  of  Common  Units  (and/or  other  securities)  which may be
required  to  permit  the  exercise  in  full  of the  Rights  pursuant  to this
Agreement.

         The Partnership  covenants and agrees that it will take all such action
as may be necessary to ensure that all  Preferred  Units (or  Partnership  Units
and/or other securities,

                                       11
<PAGE>

as the case may be)  delivered  upon  exercise of Rights  shall,  at the time of
delivery of such units or other  securities  (subject to payment of the Purchase
Price),  be  duly  and  validly  authorized  and  issued  (and,  to  the  extent
applicable, fully paid and non-assessable) units or securities.

         The Partnership  further covenants and agrees that it will pay when due
and  payable any and all U.S.  federal  and state taxes and charges  (other than
taxes and  charges  based on  income)  which may be  payable  in  respect of the
issuance or delivery of the Right  Certificates  or of any  Preferred  Units (or
Partnership Units and/or other securities, as the case may be) upon the exercise
of Rights.  The Partnership  shall not,  however,  be required to pay any tax or
other  charge  which may be payable in respect of any  transfer  or  delivery of
Right  Certificates  to a Person  other  than,  or the  issuance  or delivery of
certificates  or  depositary  receipts for the Preferred  Units (or  Partnership
Units and/or other securities, as the case may be) in a name other than that of,
the registered holder of the Right Certificate evidencing Rights surrendered for
exercise,  or to issue or to deliver any certificates or depositary receipts for
Preferred Units (or Partnership Units and/or other  securities,  as the case may
be) upon the  exercise of any Rights,  until any such tax or other  charge shall
have been paid (any such tax or other charge being payable by the holder of such
Right  Certificate at the time of surrender) or until it has been established to
the  Partnership's  reasonable  satisfaction that no such tax or other charge is
due.

         Section 10. Preferred Units Record Date.

         Each Person in whose name any  Preferred  Units (or  Partnership  Units
and/or  other  securities,  as the case may be) are issued upon the  exercise of
Rights  shall for all  purposes be deemed to have become the holder of record of
the Preferred Units (or Partnership Units and/or other  securities,  as the case
may be)  represented  thereby  on the date  upon  which  the  Right  Certificate
evidencing  such Rights was duly  surrendered  and payment of the Purchase Price
(and any applicable taxes and other  governmental  charges) was made;  provided,
however,  that,  if the date of such  surrender and payment is a date upon which
the Preferred Units (or Partnership Units and/or other  securities,  as the case
may be)  transfer  books of the  Partnership  are closed,  such person  shall be
deemed to have  become  the record  holder of such units on the next  succeeding
Business Day on which the  Preferred  Units (or  Partnership  Units and/or other
securities, as the case may be) transfer books of the Partnership are open.

         Section 11. Adjustment of Purchase Price,  Number and Kind of Shares or
                     Number of Rights.

         The Purchase Price,  the number and kind of Units covered by each Right
and the number of Rights outstanding are subject to adjustment from time to time
as provided in this Section 11.

                                       12

<PAGE>

         (a)      (i) In the event the  Partnership  shall at any time after the
date of this Agreement (A) declare a distribution on the Preferred Units payable
in Preferred Units,  (B) subdivide the outstanding  Preferred Units, (C) combine
the outstanding  Preferred Units into a smaller number of Preferred Units or (D)
issue any units in a reclassification of the Preferred Units (including any such
reclassification  in  connection  with a  consolidation  or  merger in which the
Partnership is the continuing or surviving entity), except as otherwise provided
in this Section 11(a) and Section 7(e) hereof,  the Purchase  Price in effect at
the time of the record date for such  distribution  or of the effective  date of
such subdivision,  combination or  reclassification,  and the number and kind of
units  issuable  on such date,  shall be  proportionately  adjusted  so that the
holder of any Right  exercised  after such time shall be entitled to receive the
aggregate  number  and kind of units  which,  if such  Right had been  exercised
immediately  prior to such date and at a time when the Preferred  Units transfer
books of the  Partnership  were  open,  such  holder  would have owned upon such
exercise and been entitled to receive by virtue of such subdivision, combination
or reclassification.  If an event occurs which would require an adjustment under
both Section 11(a)(i) and Section 11(a)(ii), the adjustment provided for in this
Section  11(a)(i)  shall be in  addition  to,  and shall be made  prior to,  any
adjustment required pursuant to Section 11(a)(ii).

                  (ii) In the  event  any  Person,  alone or  together  with its
Affiliates  and  Associates,  shall  become an  Acquiring  Person,  then  proper
provision shall be made so that each holder of a Right (except as provided below
and in Section  7(e) hereof)  shall,  for a period of 60 days after the later of
the  occurrence  of any  such  event  or the  effective  date of an  appropriate
registration  statement under the Act pursuant to Section 9 hereof, have a right
to receive,  upon exercise thereof at a price equal to the then current Purchase
Price,  in  accordance  with  the  terms  of  this  Agreement,  such  number  of
Partnership   Units  (or,  in  the  discretion  of  the  General  Partner,   one
one-thousandths  of a Preferred  Unit) as shall equal the result obtained by (x)
multiplying  the  then  current  Purchase  Price  by  the  then  number  of  one
one-thousandths   of  a  Preferred  Unit  for  which  a  Right  was  exercisable
immediately  prior to the first  occurrence of a Section  11(a)(ii)  Event,  and
dividing  that  product by (y) 50% of the then  current per unit market price of
the  Partnership's  Partnership  Units  (determined  pursuant  to Section  11(d)
hereof)  on the date of such  first  occurrence  (such  number  of  units  being
referred  to  as  the  "Adjustment  Units");  provided,  however,  that  if  the
transaction  that would otherwise give rise to the foregoing  adjustment is also
subject to the  provisions  of Section 13 hereof,  then only the  provisions  of
Section 13 hereof shall apply and no  adjustment  shall be made pursuant to this
Section 11(a)(ii);

                  (iii)  In  the  event  that  there  shall  not  be  sufficient
securities to permit the exercise in full of the Rights in  accordance  with the
foregoing  subparagraph  (ii) and the  Rights  become  so  exercisable  (and the
General Partner has determined to make the Rights  exercisable into fractions of
a Preferred Unit), notwithstanding any other provision of this Agreement, to the
extent necessary and permitted by applicable law, each Right

                                       13
<PAGE>

shall  thereafter  represent the right to receive,  upon exercise thereof at the
then current Purchase Price in accordance with the terms of this Agreement,  (x)
a number of (or fractions  of)  Partnership  Units (up to the maximum  number of
Partnership  Units  which may  permissibly  be  issued)  and (y) a number of (or
fractions  of)  one  one-thousandths  of a  Preferred  Unit or a  number  of (or
fractions of) other equity  securities of the Partnership (or, in the discretion
of the General  Partner,  debt) which the General Partner has determined to have
the same aggregate current market value (determined pursuant to Section 11(d)(i)
and (ii) hereof, to the extent  applicable) as one Partnership Unit (such number
of, or fractions of, Preferred Units,  debt, or other equity  securities or debt
of the  Partnership  being  referred  to as a "unit  equivalent")  equal  in the
aggregate to the number of Adjustment Units;  provided,  however,  if sufficient
Partnership Units and/or unit equivalents are unavailable,  then the Partnership
shall, to the extent permitted by applicable law, take all such action as may be
necessary to authorize  additional  Partnership  Units or unit  equivalents  for
issuance upon  exercise of the Rights,  including the calling of a meeting of or
seeking the consent of unitholders,  if applicable; and provided,  further, that
if the Partnership is unable to cause sufficient  Partnership  Units and/or unit
equivalents  to be available  for issuance  upon exercise in full of the Rights,
then each Right shall  thereafter  represent  the right to receive the  Adjusted
Number of Units upon exercise at the Adjusted  Purchase Price (as such terms are
hereinafter  defined). As used herein, the term "Adjusted Number of Units" shall
be equal to that number of (or  fractions  of)  Partnership  Units  (and/or unit
equivalents)  equal to the product of (x) the number of Adjustment Units and (y)
a fraction,  the numerator of which is the number of  Partnership  Units (and/or
equivalents)  available  for  issuance  upon  exercise  of the  Rights  and  the
denominator  of which is the  aggregate  number of  Adjustment  Units  otherwise
issuable upon exercise in full of all Rights  (assuming  there were a sufficient
number of Partnership  Units  available) (such fraction being referred to as the
"Proration Factor"). The "Adjusted Purchase Price" shall mean the product of the
Purchase Price and the Proration Factor.  The General Partner may, but shall not
be  required  to,  establish   procedures  to  allocate  the  right  to  receive
Partnership Units and unit equivalents upon exercise of the Rights among holders
of Rights.

         (b) In case the Partnership shall fix a record date for the issuance of
rights (other than the Rights),  options or warrants to all holders of Preferred
Units  entitling them (for a period  expiring within 45 calendar days after such
record date) to subscribe for or purchase  Preferred Units (or securities having
the same rights,  privileges and preferences as the Preferred Units ("equivalent
preferred units")) or securities  convertible into Preferred Units or equivalent
preferred  units at a price per Preferred Unit or equivalent  preferred unit (or
having a conversion  price per unit, if a security  convertible  into  Preferred
Units or equivalent  preferred units) less than the then current per unit market
price of the Preferred Units (as determined pursuant to Section 11(d) hereof) on
such record  date,  the  Purchase  Price to be in effect  after such record date
shall be  determined by  multiplying  the Purchase  Price in effect  immediately
prior to such  record date by a fraction,  the  numerator  of which shall be the
number of Preferred Units

                                       14
<PAGE>

outstanding  on such  record date plus the number of  Preferred  Units which the
aggregate  offering  price  of  the  total  number  of  Preferred  Units  and/or
equivalent  preferred  units so to be  offered  (and/or  the  aggregate  initial
conversion price of the convertible  securities so to be offered) would purchase
at such current per unit market price, and the denominator of which shall be the
number of  Preferred  Units  outstanding  on such record date plus the number of
additional  Preferred Units and/or equivalent  preferred units to be offered for
subscription  or purchase  (or into which the  convertible  securities  so to be
offered are initially convertible).  In case such subscription price may be paid
in a consideration  part or all of which shall be in a form other than cash, the
value of such  consideration  shall be  determined  in good faith by the General
Partner,  whose  determination  shall be described in a statement filed with the
Rights  Agent and shall be binding on the  Rights  Agent and the  holders of the
Rights.  Preferred  Units  owned by or held for the  account of the  Partnership
shall not be deemed  outstanding for the purpose of any such  computation.  Such
adjustment shall be made successively  whenever such a record date is fixed; and
in the event that such  rights,  options  or  warrants  are not so  issued,  the
Purchase Price shall be adjusted to be the Purchase Price which would then be in
effect if such record date had not been fixed.

         (c) In case the Partnership shall fix a record date for the making of a
distribution  to  all  holders  of  the  Preferred  Units  (including  any  such
distribution  made in  connection  with a  consolidation  or merger in which the
Partnership is the continuing or surviving  entity) of evidences of indebtedness
or assets (other than a regular  quarterly cash  distribution  or a distribution
payable in Preferred Units) or subscription  rights or warrants (excluding those
referred to in Section 11(b)  hereof),  the Purchase Price to be in effect after
such record date shall  determined by  multiplying  the Purchase Price in effect
immediately  prior to such  record date by a fraction,  the  numerator  of which
shall be the then  current  per unit  market  price (as  determined  pursuant to
Section 11(d) hereof) of the Preferred  Units on such record date, less the fair
market  value  (as  determined  in good  faith  by the  General  Partner,  whose
determination  shall be described in a statement filed with the Rights Agent and
shall be  binding  on the Rights  Agent and the  holders  of the  Rights) of the
portion of the assets or evidences of  indebtedness  so to be  distributed or of
such  subscription  rights or warrants  applicable to one Preferred Unit and the
denominator  of  which  shall  be such  current  per  unit  market  price of the
Preferred Units.  Such adjustments  shall be made  successively  whenever such a
record date is fixed;  and in the event that such  distribution  is not so made,
the Purchase  Price shall again be adjusted to be the Purchase Price which would
then be in effect if such record date had not been fixed.

         (d)      (i) For the purpose of any computation hereunder, the "current
per unit market price" of any security (a  "Security")  that is publicly  traded
for the purpose of this  Section  11(d)(i) on any date shall be deemed to be the
average of the daily  closing  prices per unit of such  Security  for the thirty
(30) consecutive Trading Days (as such term is hereinafter  defined) immediately
prior to and not including such date; provided,  however,

                                       15
<PAGE>

that in the event that the  current  per unit  market  price of the  Security is
determined  during a period  following  the  announcement  by the issuer of such
Security of (A) a dividend or distribution on such Security  payable in units of
such Security or securities convertible into such units, or (B) any subdivision,
combination or  reclassification of such Security and prior to the expiration of
thirty (30) Trading Days after and not including the  ex-dividend  date for such
dividend or distribution,  or the record date for such subdivision,  combination
or  reclassification,  then,  and in each such case, the current per unit market
price shall be  appropriately  adjusted to reflect the current  market price per
unit  equivalent of such  Security.  The closing price for each day shall be the
last sale price,  regular way, or, in case no such sale takes place on such day,
the average of the closing bid and asked prices,  regular way, in either case as
reported in the principal consolidated transaction reporting system with respect
to securities  listed or admitted to trading on the New York Stock  Exchange or,
if the  Security  is not  listed or  admitted  to  trading on the New York Stock
Exchange, as reported in the principal consolidated transaction reporting system
with respect to securities listed on the principal national  securities exchange
on which the  Security is listed or  admitted to trading or, if the  Security is
not listed or admitted to trading on any national securities exchange,  the last
quoted  price or, if not so  quoted,  the  average of the high bid and low asked
prices as reported on the Nasdaq Stock Market ("Nasdaq") or such other market or
system  then in use,  or, if on any such date the  Security is not quoted by any
such organization,  the average of the closing bid and asked prices as furnished
by a professional  market maker making a market in the Security  selected by the
General Partner.  If on any such date no such market maker is making a market in
the Security,  the fair value of the Security on such date as determined in good
faith by the General  Partner shall be used. The term "Trading Day" shall mean a
day on which the principal national securities exchange on which the Security is
listed or admitted to trading is open for the transaction of business or, if the
Security  is not  listed or  admitted  to  trading  on any  national  securities
exchange,  a Business Day. Subject to Section 11(d)(ii),  if any Security is not
publicly traded, "current per unit market price" of such Security shall mean the
fair market value per unit as determined  in good faith by the General  Partner,
whose  determination  shall be  described  in a statement  filed with the Rights
Agent and shall be binding on the Rights Agent and the holders of the Rights.

                  (ii)  For  the  purpose  of  any  computation  hereunder,  the
"current  per unit market  price" of the  Preferred  Units if they are  publicly
traded shall be determined  in  accordance  with the method set forth in Section
11(d)(i).  If the Preferred Units are not publicly traded, the "current per unit
market  price" of the  Preferred  Units shall be  conclusively  deemed to be the
current per unit market price of the Partnership Units as determined pursuant to
Section 11(d)(i) (appropriately  adjusted to reflect any split,  distribution or
similar transaction occurring after the date hereof), multiplied by one thousand
(1,000).  If neither the Partnership  Units nor the Preferred Units are publicly
listed or traded,  "current  per unit market  price"  shall mean the fair market
value  per unit as  determined  in good  faith  by the  General  Partner,  whose
determination shall be

                                       16
<PAGE>

described in a statement filed with the Rights Agent and shall be binding on the
Rights Agent and the holders of the Rights.

         (e) Anything herein to the contrary  notwithstanding,  no adjustment in
the Purchase  Price shall be required  unless such  adjustment  would require an
increase or decrease of at least 1% in the Purchase  Price;  provided,  however,
that any  adjustments  which by reason of this Section 11(e) are not required to
be made  shall be carried  forward  and taken  into  account  in any  subsequent
adjustment.  All calculations under this Section 11 shall be made to the nearest
cent  or  to  the  nearest  one  one-thousandth  of  a  Preferred  Unit  or  one
one-thousandth of any other unit or security as the case may be. Notwithstanding
the first  sentence  of this  Section  11(e),  any  adjustment  required by this
Section 11 shall be made no later  than the  earlier of (i) three (3) years from
the date of the  transaction  which  mandates such  adjustment or (ii) the Final
Expiration Date.

         (f) If as a result of an adjustment made pursuant to Section  11(a)(ii)
or Section  13(a) hereof,  the holder of any Right  thereafter  exercised  shall
become  entitled to receive any units of the  Partnership  other than  Preferred
Units,  thereafter the number of other units so receivable  upon exercise of any
Right shall be subject to adjustment  from time to time in a manner and on terms
as nearly  equivalent  as  practicable  to the  provisions  with  respect to the
Preferred  Units  contained in Section  11(a)  through (c),  inclusive,  and the
provisions of Sections 7, 9, 10, 13 and 14 with respect to the  Preferred  Units
shall apply on like terms to any such other units.

         (g) All Rights originally  issued by the Partnership  subsequent to any
adjustment  made to the Purchase  Price  hereunder  shall  evidence the right to
purchase, at the Adjusted Purchase Price, the number of one one-thousandths of a
Preferred  Unit  purchasable  from time to time  hereunder  upon exercise of the
Rights, all subject to further adjustment as provided herein.

         (h) Unless  the  Partnership  shall  have  exercised  its  election  so
provided in Section 11(i)  hereof,  upon  adjustment of the Purchase  Price as a
result of the calculations  made in Sections 11(b) and 11(c) hereof,  each Right
outstanding  immediately prior to the making of such adjustment shall thereafter
evidence the right to purchase,  at the Adjusted  Purchase Price, that number of
one   one-thousandths  of  a  Preferred  Unit  calculated  to  the  nearest  one
one-thousandth  of a Preferred  Unit) obtained by (i) multiplying (A) the number
of Preferred  Units covered by a Right  immediately  prior to this adjustment of
the Purchase Price by (B) the Purchase Price in effect immediately prior to such
adjustment  of the Purchase  Price and (ii)  dividing the product so obtained by
the Purchase Price in effect  immediately  after such adjustment of the Purchase
Price.

         (i) The Partnership may elect on or after the date of any adjustment of
the Purchase Price to adjust the number of Rights,  in lieu of any adjustment in
the number of one  one-thousandths  of a  Preferred  Unit  purchasable  upon the
exercise of a Right. Each of the Rights outstanding after such adjustment of the
number of Rights shall be

                                       17
<PAGE>

exercisable for the number of one  one-thousandths of a Preferred Unit for which
a Right was exercisable immediately prior to such adjustment. Each Right held of
record prior to such adjustment of the number of Rights shall become that number
of Rights  (calculated to the nearest one  one-thousandth)  obtained by dividing
the Purchase  Price in effect  immediately  prior to  adjustment of the Purchase
Price by the  Purchase  Price in  effect  immediately  after  adjustment  of the
Purchase Price. The Partnership shall make a public announcement of its election
to adjust the number of Rights,  indicating the record date for the  adjustment,
and, if known at the time,  the amount of the  adjustment  to be made, a copy of
which public  announcement shall promptly be delivered to the Rights Agent. This
record date may be the date on which the  Purchase  Price is adjusted or any day
thereafter,  but, if the Right Certificates have been issued,  shall be at least
ten  (10)  days  later  than  the  date of the  public  announcement.  If  Right
Certificates  have been  issued,  upon each  adjustment  of the number of Rights
pursuant  to  this  Section  11(i),  the  Partnership   shall,  as  promptly  as
practicable,  cause to be distributed to holders of record of Right Certificates
on such record date Right Certificates evidencing, subject to Section 14 hereof,
the  additional  Rights to which such  holders  shall be entitled as a result of
such  adjustment,  or,  at the  option  of the  Partnership,  shall  cause to be
distributed to such holders of record in  substitution  and  replacement for the
Right  Certificates  held by such holders prior to the date of  adjustment,  and
upon surrender thereof,  if required by the Partnership,  new Right Certificates
evidencing  all the Rights to which such  holders  shall be entitled  after such
adjustment.  Right  Certificates so to be distributed shall be issued,  executed
and  countersigned  in the manner provided for herein and shall be registered in
the names of the  holders of record of Right  Certificates  on the  record  date
specified in the public announcement.

         (j)  Irrespective  of any adjustment or change in the Purchase Price or
the number of one one-thousandths of a Preferred Unit issuable upon the exercise
of the Rights,  the Right  Certificates  theretofore  and thereafter  issued may
continue to express the Purchase Price and the number of one  one-thousandths of
a Preferred Unit which were expressed in the initial Right  Certificates  issued
hereunder.

         (k) Before  taking any action that would cause an  adjustment  reducing
the  Purchase  Price  below the then par  value,  if any,  of the  number of one
one-thousandths  of a Preferred Unit, Common Units or other securities  issuable
upon exercise of the Rights, the Partnership shall take any action which may, in
the opinion of its  counsel,  be  necessary  in order that the  Partnership  may
validly  and  legally  issue such  number of fully paid and  non-assessable  one
one-thousandths  of a Preferred Unit,  Common Units or other  securities at such
adjusted Purchase Price.

         (l) In any  case  in  which  this  Section  11  shall  require  that an
adjustment  in the  Purchase  Price be made  effective as of a record date for a
specified event, the Partnership may elect to defer until the occurrence of such
event the issuance to the holder of any Right  exercised  after such record date
the Preferred Units, Partnership Units or other

                                       18
<PAGE>

securities  of the  Partnership,  if any,  issuable  upon such exercise over and
above  the  Preferred  Units,  Partnership  Units  or  other  securities  of the
Partnership,  if any,  issuable upon exercise on the basis of the Purchase Price
in effect prior to such  adjustment;  provided,  however,  that the  Partnership
shall  deliver  to such  holder  a due  bill  or  other  appropriate  instrument
evidencing  such  holder's  right  to  receive  such  additional  units or other
securities,  as the case may be, upon the occurrence of the event requiring such
adjustment.

         (m) Anything in this Section 11 to the  contrary  notwithstanding,  the
Partnership  shall be entitled to make such reductions in the Purchase Price, in
addition to those adjustments  expressly  required by this Section 11, as and to
the extent that it in its sole  discretion  shall  determine  to be advisable in
order that (1) (i) any consolidation or subdivision of the Preferred Units, (ii)
issuance  wholly for cash of  Preferred  Units at less than the  current  market
price,  (iii) issuance wholly for cash of Preferred Units or securities which by
their terms are convertible into or exchangeable for Preferred Units,  (iv) unit
distributions or (v) issuance of rights, options or warrants referred to in this
Section 11,  hereafter made by the Partnership to holders of its Preferred Units
shall not be taxable to holders of Preferred  Units or (2) the Purchase Price is
reduced to correspond to any similar  reduction that may be effected pursuant to
Section 11 (m) of Rights  Agreements,  dated as of October 13, 2000, between the
Corporation and American Stock Transfer & Trust Company.

         (n) The Partnership covenants and agrees that it shall not, at any time
after the Distribution Date, (i) consolidate with any other Person (other than a
Subsidiary of the  Partnership in a transaction  which does not violate  Section
11(o) hereof), (ii) merge with or into any other Person (other than a Subsidiary
of the  Partnership  in a  transaction  which  does not  violate  Section  11(o)
hereof),  or  (iii)  sell or  transfer  (or  permit  any  Subsidiary  to sell or
transfer),  in one transaction,  or a series of related transactions,  assets or
earning  power  aggregating  more than 50% of the assets or earning power of the
Partnership  and its  Subsidiaries  (taken as a whole)  to any  other  Person or
Persons (other than the  Partnership  and/or any of its  Subsidiaries  in one or
more transactions  each of which does not violate Section 11(o) hereof),  if (x)
at the time of or immediately after such consolidation, merger, sale or transfer
there are any  charter or bylaw  provisions  or any  rights,  warrants  or other
instruments  or securities  outstanding or agreements in effect or other actions
taken,  which would  materially  diminish or  otherwise  eliminate  the benefits
intended to be afforded  by the Rights or (y) prior to,  simultaneously  with or
immediately  after such  consolidation,  merger or sale, the security holders of
the  Person  who  constitutes,  or would  constitute,  the  Principal  Party for
purposes of Section  13(a) hereof shall have received a  distribution  of Rights
previously  owned by such Person or any of its  Affiliates and  Associates.  The
Partnership  shall  not  consummate  any  such  consolidation,  merger,  sale or
transfer  unless prior thereto the  Partnership and such other Person shall have
executed and delivered to the Rights Agent a supplemental  agreement  evidencing
compliance with this Section 11(n).

                                       19
<PAGE>

         (o) The Partnership  covenants and agrees that,  after the Distribution
Date, it will not,  except as permitted by Section 23,  Section 24 or Section 27
hereof,  take (or permit any Subsidiary to take) any action the purpose of which
is to, or if at the time such action is taken it is reasonably  foreseeable that
the effect of such action is to, materially  diminish or otherwise eliminate the
benefits intended to be afforded by the Rights.

         (p) The exercise of Rights under Section 11(a)(ii) shall only result in
the loss of rights under Section  11(a)(ii) to the extent so exercised and shall
not otherwise affect the rights  represented by the Rights under this Agreement,
including the rights represented by Section 13.

         Section 12. Certificate  of  Adjusted  Purchase   Price  or  Number  of
                     Securities.

         Whenever an  adjustment is made as provided in Section 11 or 13 hereof,
the  Partnership  shall  promptly (a) prepare a  certificate  setting forth such
adjustment,  and  a  brief  reasonably  detailed  statement  of  the  facts  and
computations accounting for such adjustment,  (b) file with the Rights Agent and
with each transfer  agent for the  Partnership  Units and the Preferred  Units a
copy of such  certificate and (c) mail a brief summary thereof to each holder of
a Right Certificate in accordance with Section 25 hereof. The Rights Agent shall
be fully  protected  in relying on any such  certificate  and on any  adjustment
therein contained and shall have no duty with respect to and shall not be deemed
to have  knowledge of such  adjustment  unless and until it shall have  received
such certificate.

         Section 13. Consolidation,  Merger  or  Sale or  Transfer  of Assets or
                     Earning Power.

         (a) In the event that,  on or following  the Shares  Acquisition  Date,
directly or indirectly,  (x) the Corporation  shall  consolidate  with, or merge
with and into, any Interested Stockholder or, if in such merger or consolidation
all holders of Common Shares are not treated  alike,  any other Person,  (y) the
Corporation shall  consolidate  with, or merge with, any Interested  Stockholder
or, if in such  merger or  consolidation  all  holders of Common  Shares are not
treated alike, any other Person,  and the Corporation shall be the continuing or
surviving  corporation of such consolidation or merger (other than, in a case of
any transaction  described in (x) or (y), a merger or consolidation  which would
result in all of the  securities  generally  entitled to vote in the election of
directors ("voting securities") of the Corporation outstanding immediately prior
thereto  continuing to represent  (either by remaining  outstanding  or by being
converted into securities of the surviving  entity) all of the voting securities
of the Corporation or such surviving entity  outstanding  immediately after such
merger or consolidation and the holders of such securities not having changed as
a result of such merger or consolidation),  or (z) the Corporation shall sell or
otherwise  transfer (or one or more of its Subsidiaries  shall sell or otherwise
transfer),  in one  transaction or a series of related  transactions,  assets or
earning  power  aggregating  more than 50% of the assets or earning power of the
Corporation and

                                       20
<PAGE>

its  Subsidiaries   (taken  as  a  whole)  to  any  Interested   Stockholder  or
Stockholders  or, if in such  transaction  all holders of Common  Shares are not
treated alike, any other Person (other than the Corporation or any Subsidiary of
the  Corporation  in one or more  transactions  each of which  does not  violate
Section  11(o)  hereof),  then,  and in each such case  (except as  provided  in
Section 13(d) hereof), proper provision shall be made so that

         (1)      if in  connection  with such  Section 13 Event  there does not
                  also occur substantially concurrently a Partnership Section 13
                  Event (as  defined  below) or to the extent that a holder of a
                  Right does not elect to be  governed  by  subparagraph  (2) of
                  this  Section  13(a),  (i) each  holder of a Right,  except as
                  provided in Section 7(e)  hereof,  shall  thereafter  have the
                  right to receive,  upon the exercise  thereof at a price equal
                  to the then current  Purchase  Price,  in accordance  with the
                  terms of this Agreement and in lieu of Preferred  Units,  such
                  number of Common Shares of the Principal Party (as hereinafter
                  defined),  not subject to any liens,  encumbrances,  rights of
                  first  refusal or other  adverse  claims,  as shall  equal the
                  result obtained by (A)  multiplying the then current  Purchase
                  Price by the number of one one-thousandths of a Preferred Unit
                  for which a Right is then  exercisable  (without  taking  into
                  account any  adjustment  previously  made  pursuant to Section
                  11(a)(ii))  and  dividing  that product by (B) 50% of the then
                  current per share  market  price of the Common  Shares of such
                  Principal Party (determined  pursuant to Section 11(d) hereof)
                  on the date of  consummation  of such  Section 13 Event;  (ii)
                  such Principal Party shall thereafter be liable for, and shall
                  assume,   by  virtue  of  such  Section  13  Event,   all  the
                  obligations  and duties of the  Partnership  pursuant  to this
                  Agreement;  (iii) the term  "Partnership"  shall thereafter be
                  deemed to refer to such Principal Party, it being specifically
                  intended that the  provisions of Section 11 hereof shall apply
                  only to such Principal Party following the first occurrence of
                  a Section 13 Event;  and (iv) such Principal  Party shall take
                  such steps (including,  but not limited to, the reservation of
                  a sufficient  number of its Common Shares) in connection  with
                  the  consummation of any such  transaction as may be necessary
                  to assure  that the  provisions  hereof  shall  thereafter  be
                  applicable,  as nearly as  reasonably  may be, in  relation to
                  such  number  of  freely  tradable  shares  of  Common  Shares
                  thereafter deliverable upon the exercise of the Rights; or

         (2)      if in connection  with such Section 13 Event there also occurs
                  substantially  concurrently  with respect to the Partnership a
                  merger, consolidation,  sale or transfer of the type described
                  in  clauses  (x),  (y)  or  (z)  of  this  Section   13(a)  (a
                  "Partnership  Section 13 Event")  and the holder of a Right at
                  the time of  exercise  of such Right  elects to be governed by
                  this  subparagraph  (2), (i) each electing  holder of a Right,
                  except as provided in Section  7(e) hereof,  shall  thereafter
                  have the right to  receive,  upon the  exercise  thereof  at a
                  price equal to the then current  Purchase Price, in accordance
                  with the terms of this

                                       21
<PAGE>

                  Agreement  and in lieu of  Preferred  Units,  such  number  of
                  common  securities  of the  Partnership  Principal  Party  (as
                  defined below) not subject to any liens, encumbrances,  rights
                  of first  refusal  or other  adverse  claims as shall have the
                  right (x) to convert  into,  (y) be  exchanged  for, or (z) be
                  redeemed for cash in an amount equal the current  market value
                  at the time of redemption of, in each case, a number of Common
                  Shares of the Principal Party equal the result obtained by (A)
                  multiplying  the then current  Purchase Price by the number of
                  one  one-thousandths  of a Preferred Unit for which a Right is
                  then  exercisable  (without taking into account any adjustment
                  previously  made pursuant to Section  11(a)(ii))  and dividing
                  that  product by (B) 50% of the then  current  per unit market
                  price of the Common Shares of such Principal Party (determined
                  pursuant to Section 11(d) hereof) on the date of  consummation
                  of such  Partnership  Section 13 Event  (ii) such  Partnership
                  Principal  Party shall  thereafter  be liable  for,  and shall
                  assume,   by  virtue  of  such  Section  13  Event,   all  the
                  obligations  and duties of the  Partnership  pursuant  to this
                  Agreement;  (iii) the term  "Partnership"  shall thereafter be
                  deemed to refer to such Partnership  Principal Party, it being
                  specifically intended that the provisions of Section 11 hereof
                  shall apply only to such Partnership Principal Party following
                  the first  occurrence of a Partnership  Section 13 Event;  and
                  (iv) such Partnership Principal Party and such Principal Party
                  shall  take such steps  (including,  but not  limited  to, the
                  reservation   of  a  sufficient   number  of  their   relevant
                  securities) in connection  with the  consummation  of any such
                  transaction  as may be necessary to assure that the provisions
                  hereof shall thereafter be applicable, as nearly as reasonably
                  may be, in  relation to such  number of common  units,  common
                  shares or other  such  common  securities  of the  Partnership
                  Principal  Party  and  Common  Shares of the  Principal  Party
                  thereafter deliverable upon the exercise of the Rights.

         (b) "Principal Party" shall mean

                  (i) in the case of any transaction  described in clause (x) or
(y) of the first sentence of Section 13(a), the Person that is the issuer of any
securities  into which Common  Shares of the  Corporation  are converted in such
merger or consolidation,  and if no securities are so issued, the Person that is
the other party to such merger or consolidation (including,  if applicable,  the
Corporation  or the  Partnership,  as the  case may be,  if it is the  surviving
entity); and (ii) in the case of any transaction  described in clause (z) of the
first  sentence of Section  13(a),  the Person that is the party  receiving  the
greatest  portion of the assets or earning  power  transferred  pursuant to such
transaction or  transactions;  provided,  however,  that in any of the foregoing
cases, (1) if the Common Shares of such Person are not at such time and have not
been  continuously  over the preceding twelve (12) month period registered under
Section  12 of the  Exchange  Act,  and  such  Person  is a direct  or  indirect
Subsidiary of another Person the Common Shares of

                                       22
<PAGE>

which are and have been so  registered,  "Principal  Party"  shall refer to such
other Person;  (2) in case such Person is a Subsidiary,  directly or indirectly,
of more than one Person,  the Common Shares of two or more of which are and have
been so registered,  "Principal  Party" shall refer to whichever of such Persons
is the issuer of the Common Shares having the greatest  aggregate  market value;
and (3) in case such Person is owned, directly or indirectly, by a joint venture
formed by two or more Persons that are not owned, directly or indirectly, by the
same Person, the rules set forth in (1) and (2) above shall apply to each of the
chains of  ownership  having an interest in such joint  venture as if such party
were a  Subsidiary  of both or all of such  joint  venturers  and the  Principal
Parties in each such chain shall bear the  obligations set forth in this Section
13 in the same ratio as their  direct or indirect  interests in such Person bear
to the total of such interests.

         (c)  "Partnership  Principal  Party"  shall  mean,  in  the  case  of a
Partnership  Section  13 Event,  the Person  into or with which the  Partnership
merges or consolidates,  or to whom the Partnership transfers 50% or more of its
assets or  earning  power and that is the  issuer  of any  securities  which are
convertible  (directly or indirectly) into,  exchangeable for, or redeemable for
Common Shares of the Principal Party or cash based on the value of Common Shares
of the Principal Party.

         (d) The  Partnership  shall not consummate any  Partnership  Section 13
Event unless the Principal Party and/or Partnership Principal Party shall have a
sufficient  number of its  authorized  shares of common  stock,  or other common
securities,  as the case may be which  have not  been  issued  or  reserved  for
issuance to permit the  exercise in full of the Rights in  accordance  with this
Section 13 and unless prior thereto the Partnership and such Principal Party, or
Partnership  Principal  Party,  shall have  executed and delivered to the Rights
Agent a supplemental  agreement  providing for the terms set forth in paragraphs
(a)  and  (b) of  this  Section  13 and  further  providing  that,  as  soon  as
practicable  after  the  date of any  consolidation,  merger,  sale or  transfer
mentioned  in  paragraph  (a) of  this  Section  13,  the  Principal  Party,  or
Partnership Principal Party, at its own expense shall:

                  (i) prepare and file a  registration  statement  under the Act
with respect to the Rights and the securities  purchasable  upon exercise of the
Rights on an  appropriate  form,  and will use its best  efforts  to cause  such
registration statement to (A) become effective as soon as practicable after such
filing and (B) remain  effective  (with a  prospectus  at all times  meeting the
requirements of the Act) until the Final Expiration Date;

                  (ii) use its best  efforts to qualify or  register  the Rights
and the  securities  purchasable  upon exercise of the Rights under the blue sky
laws of such jurisdictions as may be necessary or appropriate; and

                                       23
<PAGE>

                  (iii)  deliver to holders of the Rights  historical  financial
statements for the Principal Party or Partnership  Principal  Party, as the case
may be which comply in all respects with the  requirements  for  registration on
Form 10 under the Exchange Act;  provided,  however,  that the  Principal  Party
and/or the Partnership  Principal Party may be relieved of its obligations under
the forgoing  clauses (i) and (ii) if it receives the written  waiver of holders
of a  majority  of the  Rights  (excluding  any  Rights  that  are null and void
pursuant to Section 7(e)).

         The provisions of this Section 13 shall  similarly  apply to successive
mergers or  consolidations  or sales or other  transfers.  The rights under this
Section 13 shall be in addition to the rights to exercise Rights and adjustments
under Section 11(a)(ii) and shall survive any exercise thereof.

         (e) The  Partnership  shall not consummate any  Partnership  Section 13
Event unless the Principal Party or Partnership Principal Party, as the case may
be, shall  provide to the holders of, or holders of Rights to  purchase,  common
securities  of the  Partnership  Principal  Party that may be converted  into or
exchanged  for Common Shares of the Principal  Party,  registration  rights with
respect to such Principal Party Common Shares that are substantially the same as
any  registration  rights such holders  have with  respect to their  Partnership
Units or any securities  into which such  Partnership  Units are  convertible or
exchangeable  and to which such  holders are entitled  immediately  prior to the
relevant Section 13 Event.

         (f) Notwithstanding anything in this Agreement to the contrary, Section
13 shall not be applicable to a transaction  described in subparagraphs  (x) and
(y) of  Section  13(a)  or in a  Partnership  Section  13  Event  if:  (i)  such
transaction is consummated  with a Person or Persons who acquired  Common Shares
pursuant to a Permitted  Offer (or a wholly owned  Subsidiary of any such Person
or Persons);  (ii) the price per Common Share offered in such transaction is not
less than the price per Common Share paid to all holders of Common  Shares whose
shares were purchased  pursuant to such Permitted  Offer;  and (iii) the form of
consideration   offered  in  such  transaction  is  the  same  as  the  form  of
consideration  paid pursuant to such Permitted Offer.  Upon  consummation of any
such transaction  contemplated by this Section 13(f), all Rights hereunder shall
expire.

         Section 14. Fractional Rights and Fractional Units.

         (a) The Partnership  shall not be required to issue fractions of Rights
or to distribute Right Certificates which evidence fractional Rights. In lieu of
such  fractional  Rights,  there shall be paid to the registered  holders of the
Right  Certificates  with regard to which such fractional Rights would otherwise
be issuable,  an amount in cash equal to the same fraction of the current market
value of a whole  Right.  For the purposes of this  Section  14(a),  the current
market  value of a whole Right shall be the closing  price of the Rights for the
Trading Day immediately  prior to the date on which such fractional Rights would
have been  otherwise  issuable.  The closing price for any day shall be the last
sale

                                       24
<PAGE>

price,  regular  way,  or, in case no such  sale  takes  place on such day,  the
average of the  closing  bid and asked  prices,  regular  way, in either case as
reported in the principal consolidated transaction reporting system with respect
to securities  listed or admitted to trading on the New York Stock  Exchange or,
if the  Rights  are not  listed or  admitted  to  trading  on the New York Stock
Exchange, as reported in the principal consolidated transaction reporting system
with respect to securities listed on the principal national  securities exchange
on which the Rights are listed or  admitted to trading or, if the Rights are not
listed or  admitted to trading on any  national  securities  exchange,  the last
quoted  price or, if not so  quoted,  the  average of the high bid and low asked
prices as reported  on Nasdaq or such other  market or system then in use or, if
on any such date the Rights are not quoted by any such organization, the average
of the closing bid and asked prices as furnished by a professional  market maker
making a market in the Rights  selected by the General  Partner.  If on any such
date no such market  maker is making a market in the  Rights,  the fair value of
the Rights on such date as fair  value of the Rights on such date as  determined
in good faith by the General Partner.

         (b) The  Partnership  shall  not be  required  to  issue  fractions  of
Preferred Units (other than fractions which are one  one-thousandth  or integral
multiples of one one-thousandth of a Preferred Unit) upon exercise of the Rights
or to distribute  certificates which evidence fractional  Preferred Units (other
than  fractions  which  are one  one-thousandth  or  integral  multiples  of one
one-thousandth  of a Preferred  Unit).  Fractions of Preferred Units in integral
multiples of one  one-thousandth of a Preferred Unit may, at the election of the
Partnership,  be evidenced by depositary  receipts,  pursuant to an  appropriate
agreement between the Partnership and a depositary selected by it; provided that
such agreement shall provide that the holders of such depositary  receipts shall
have the  rights,  privileges  and  preferences  to which they are  entitled  as
beneficial  owners  of  the  Preferred  Units  represented  by  such  depositary
receipts.  In lieu of fractional Preferred Units that are not one one-thousandth
or integral multiples of one one-thousandth of a Preferred Unit, the Partnership
shall  pay to the  registered  holders  of Right  Certificates  at the time such
Rights  are  exercised  as herein  provided  an amount in cash equal to the same
fraction of the current market value of one Preferred  Unit. For the purposes of
this Section  14(b),  the current  market value of a Preferred Unit shall be the
closing price of a Preferred Unit (as determined  pursuant to Section  11(d)(ii)
hereof) for the Trading Day immediately prior to the date of such exercise.

         (c)  Following  the  occurrence  of one of the  transactions  or events
specified in Section 11 giving rise to the right to receive  Partnership  Units,
unit  equivalents  (other than  Preferred  Units) or other  securities  upon the
exercise of a Right, the Partnership shall not be required to issue fractions of
such  Partnership  Units,  unit equivalents or other securities upon exercise of
the  Rights or to  distribute  certificates  which  evidence  fractions  of such
Partnership  Units, unit equivalents or other securities.  In lieu of fractional
units of such  Partnership  Units,  unit  equivalents or other  securities,  the
Partnership may pay to the registered  holders of Right Certificates at the time
such Rights are exercised as herein

                                       25
<PAGE>

provided  an amount in cash equal to the same  fraction  of the  current  market
value of a unit of such Partnership Units, unit equivalents or other securities.
For purposes of this Section 14(c), the current market value shall be determined
in the manner set forth in Section 11(d) hereof for the Trading Day  immediately
prior to the date of such exercise  and, if such unit  equivalent is not traded,
each such equivalent shall have the value of one  one-thousandth  of a Preferred
Unit.

         (d) The  holder of a Right by the  acceptance  of the  Right  expressly
waives his right to receive any fractional  Rights or any  fractional  unit upon
exercise of a Right  (except as provided  above).  The Rights Agent shall not be
deemed to have  knowledge of, and shall have no duty in respect of, the issuance
of  fractional   Rights  or  fractional  units  until  it  shall  have  received
instructions  from the  Partnership  concerning  the issuance of the  fractional
Rights  or  fractional  units  upon  which  instructions  the  Rights  Agent may
conclusively rely.

         Section 15. Rights of Action.

                  All rights of action in respect of this  Agreement,  excepting
the rights of action  given to the Rights  Agent  under  Section 18 hereof,  are
vested in the  respective  registered  holders of the Right  Certificates  (and,
prior to the  Distribution  Date,  the  registered  holders  of the  Partnership
Units);  and any registered  holder of any Right  Certificate  (or, prior to the
Distribution Date, of the Partnership Units),  without the consent of the Rights
Agent  or of the  holder  of any  other  Right  Certificate  (or,  prior  to the
Distribution Date, of the Partnership Units), may, in his own behalf and for his
own  benefit,  enforce,  and may  institute  and  maintain  any suit,  action or
proceeding  against the Partnership to enforce,  or otherwise act in respect of,
his right to exercise the Rights evidenced by such Right  Certificate (or, prior
to the  Distribution  Date, of the Partnership  Units) in the manner provided in
such Right Certificate and in this Agreement.  Without limiting the foregoing or
any remedies available to the holders of Rights, it is specifically acknowledged
that the  holders  of Rights  would not have an  adequate  remedy at law for any
breach of this  Agreement  and will be entitled to specific  performance  of the
obligations under, and injunctive relief against actual or threatened violations
of the obligations of any Person subject to, this Agreement.

         Section 16. Agreement of Right Holders.

         Every  holder of a Right,  by accepting  the same,  consents and agrees
with the Partnership and the Rights Agent and with every other holder of a Right
that:

         (a) prior to the  Distribution  Date,  the Rights will be  transferable
only in connection with the transfer of the Partnership Units;

         (b)  after  the   Distribution   Date,  the  Right   Certificates   are
transferable  only on the registry  books of the Rights

                                       26
<PAGE>

Agent if surrendered at the office or offices of the Rights Agent designated for
such purpose,  duly endorsed or accompanied  by a proper  instrument of transfer
and with the appropriate form fully executed;

         (c) subject to Section  7(f)  hereof,  the  Partnership  and the Rights
Agent may deem and treat the  Person in whose  name the Right  Certificate  (or,
prior to the Distribution Date, the associated  Partnership Units) is registered
as  the   absolute   owner   thereof  and  of  the  Rights   evidenced   thereby
(notwithstanding  any notations of ownership or writing on the Right Certificate
or the associated Partnership Units made by anyone other than the Partnership or
the Rights Agent) for all purposes  whatsoever,  and neither the Partnership nor
the Rights Agent,  subject to the last sentence of Section 7(e) hereof, shall be
required to be affected by any notice to the contrary; and

         (d) notwithstanding anything in this Agreement to the contrary, neither
the Partnership nor the Rights Agent shall have any liability to any holder of a
Right or a  beneficial  interest  in a Right or other  Person as a result of its
inability to perform any of its  obligations  under this  Agreement by reason of
any  preliminary  or permanent  injunction or other order,  judgment,  decree or
ruling  (whether  interlocutory  or  final)  issued  by  a  court  of  competent
jurisdiction  or by a  governmental,  regulatory  or  administrative  agency  or
commission,  or any statute,  rule, regulation or executive order promulgated or
enacted by any  governmental  authority,  prohibiting  or otherwise  restraining
performance of such obligation;  provided, however, the Partnership must use its
best  efforts  to have any such  order,  judgment,  decree or  ruling  lifted or
otherwise overturned as soon as possible.

         Section 17. Right Certificate Holder Not Deemed a Unitholder.

         No holder, as such, of any Right Certificate shall be entitled to vote,
receive  distributions  or be deemed for any purpose the holder of the Preferred
Units  or any  other  securities  of the  Partnership  which  may at any time be
issuable on the exercise of the Rights represented  thereby,  nor shall anything
contained  herein or in any Right  Certificate  be  construed to confer upon the
holder of any Right  Certificate,  as such, any of the rights of a unitholder of
the  Partnership  or a  stockholder  of any other  Person whose  securities  are
purchasable  pursuant  to the  Rights or any right to vote for the  election  of
directors or upon any matter  submitted to stockholders at any meeting  thereof,
or to give or withhold  consent to any  partnership (if applicable) or corporate
action, or to receive notice of meetings or other actions affecting  unitholders
or  stockholders  (except  as  provided  in Section  25  hereof),  or to receive
distributions  or  to  exercise  any  preemptive  or  subscription   rights,  or
otherwise,  until the Right or Rights evidenced by such Right  Certificate shall
have been exercised in accordance with the provisions hereof.

         Section 18. Concerning the Rights Agent.

         The  Partnership   agrees  to  pay  to  the  Rights  Agent   reasonable
compensation  for all services  rendered by it hereunder and, from time to time,
on demand of the Rights Agent,

                                       27
<PAGE>

its reasonable expenses and counsel fees and other disbursements incurred in the
preparation,  execution,  delivery,  amendment,  administration and execution of
this  Agreement and the exercise and  performance of its duties  hereunder.  The
Partnership  also  agrees to  indemnify  the Rights  Agent  for,  and to hold it
harmless against, any loss, liability,  damage,  judgment, fine, penalty, claim,
demand,  settlement,  cost or expense,  incurred without gross  negligence,  bad
faith or  willful  misconduct  on the part of the Rights  Agent,  for any action
taken, suffered or omitted by the Rights Agent in connection with the acceptance
and administration of this Agreement, including without limitation the costs and
expenses  of  defending  against any claim of  liability  in the  premises.  The
indemnity provided for herein shall survive the expiration of the Rights and the
termination of this Agreement.

         The Rights Agent shall be  authorized  and protected and shall incur no
liability for, or in respect of, any action taken,  suffered or omitted by it in
connection with, its acceptance and administration of this Agreement in reliance
upon any Right  Certificate,  instrument  of  assignment  or transfer,  power of
attorney,   endorsement,   affidavit,   letter,  notice,   direction,   consent,
certificate,  statement, or other paper or document (collectively,  "Documents")
believed by it to be genuine and to be signed,  executed and,  where  necessary,
verified or  acknowledged,  by the proper  Person or Persons.  The Rights  Agent
shall not be deemed to have  knowledge of, and shall have no duty in respect of,
any such Documents, until it receives notice or instructions in respect thereof.
In no case will the Rights  Agent be liable  for  special,  indirect,  punitive,
incidental or consequential  loss or damage of any kind whatsoever,  even if the
Rights Agent has been advised of the likelihood of such loss or damage.

         Section 19. Merger or Consolidation or Change of Name of Rights Agent.

         Any Person into which the Rights  Agent or any  successor  Rights Agent
may be merged or with which it may be consolidated, or any Person resulting from
any merger or  consolidation  to which the Rights Agent or any successor  Rights
Agent shall be a party, or any Person succeeding to the stock transfer or all or
substantially  all of the stockholder  services  business of the Rights Agent or
any  successor  Rights  Agent,  shall be the successor to the Rights Agent under
this  Agreement  without the execution or filing of any paper or any further act
on the part of any of the parties  hereto,  provided  that such Person  would be
eligible for  appointment  as a successor  Rights Agent under the  provisions of
Section 21 hereof. In case at the time such successor Rights Agent shall succeed
to the agency created by this  Agreement,  any of the Right  Certificates  shall
have been  countersigned but not delivered,  any such successor Rights Agent may
adopt the  countersignature of a predecessor Rights Agent and deliver such Right
Certificates  so  countersigned;  and in  case  at that  time  any of the  Right
Certificates shall not have been  countersigned,  any successor Rights Agent may
countersign such Right Certificates  either in the name of the predecessor or in
the name of the  successor  Rights  Agent;  and in all  such  cases  such  Right
Certificates shall have the full force provided in the Right

                                       28
<PAGE>

Certificates  and in this Agreement.  In case at any time the name of the Rights
Agent shall be changed and at such time any of the Right Certificates shall have
been   countersigned  but  not  delivered,   the  Rights  Agent  may  adopt  the
countersignature  under  its  prior  name  and  deliver  Right  Certificates  so
countersigned;  and in case at that time any of the Right Certificates shall not
have  been   countersigned,   the  Rights  Agent  may  countersign   such  Right
Certificates  either in its prior name or in its changed  name;  and in all such
cases such Right  Certificates  shall have the full force  provided in the Right
Certificates and in this Agreement.

         Section 20. Duties of Rights Agent.

         The Rights Agent undertakes only those duties and obligations expressly
imposed  by this  Agreement  (and no  implied  duties or  obligations)  upon the
following terms and conditions,  by all of which the Partnership and the holders
of Right Certificates, by their acceptance thereof, shall be bound:

         (a) The Rights Agent may consult  with legal  counsel (who may be legal
counsel for the Partnership), and the advice or opinion of such counsel shall be
full and  complete  authorization  and  protection  to the Rights  Agent and the
Rights  Agent shall incur no liability  for or in respect of, any action  taken,
suffered or omitted by it in good faith and in accordance with such opinion.

         (b) Whenever in the  performance of its duties under this Agreement the
Rights  Agent  shall  deem it  necessary  or  desirable  that any fact or matter
(including,  without  limitation,  the identity of an  Acquiring  Person and the
determination  of the  current  market  price  of any  Security)  be  proved  or
established by the Partnership prior to taking, suffering or omitting any action
hereunder,  such fact or matter  (unless  other  evidence in respect  thereof be
herein  specifically  prescribed)  may be deemed to be  conclusively  proved and
established by a certificate signed by any one of the Chairman of the Board, the
Chief Executive Officer (or any co-Chief Executive Officer), the President,  any
Vice  President,  the Treasurer or the  Secretary of the General  Partner of the
Partnership  and delivered to the Rights Agent;  and such  certificate  shall be
full authorization and protection to the Rights Agent and the Rights Agent shall
incur no liability in respect of any action  taken,  suffered or omitted in good
faith by it under  the  provisions  of this  Agreement  in  reliance  upon  such
certificate.

         (c) The Rights Agent shall be liable  hereunder  only for its own gross
negligence, bad faith or willful misconduct.

         (d) The  Rights  Agent  shall  not be liable  for,  or by reason of any
liability in respect of, the  statements  of fact or recitals  contained in this
Agreement  or in the Right  Certificates  (except its  countersignature  on such
Right  Certificates)  or be required to verify the same, but all such statements
and recitals are and shall be deemed to have been made by the Partnership only.

                                       29
<PAGE>

         (e) The Rights Agent shall not be under any liability or responsibility
in respect of the  validity of this  Agreement  or the  execution  and  delivery
hereof  (except the due  execution  hereof by the Rights Agent) or in respect of
the validity or execution of any Right Certificate (except its  countersignature
thereof);  nor shall it be responsible  for any breach by the Partnership of any
covenant or condition  contained in this Agreement or in any Rights Certificate;
nor shall it be responsible for any change in the  exercisability  of the Rights
(including the Rights becoming null and void pursuant to Section 7(e) hereof) or
any adjustment  required under the provisions of Section 11 or Section 13 hereof
or responsible  for the manner,  method or amount of any such  adjustment or the
ascertaining  of the existence of facts that would  require any such  adjustment
(except with respect to the exercise of Rights  evidenced by Right  Certificates
after receipt of the certificate  described in Section 12 hereof);  nor shall it
by any act hereunder be deemed to make any  representation or warranty as to the
authorization of any Preferred Units or Partnership  Units to be issued pursuant
to this Agreement or any Right  Certificate or as to whether any Preferred Units
or Partnership Units will, when issued, be validly authorized and issued,  fully
paid and non-assessable.

         (f) The Partnership agrees that it will perform,  execute,  acknowledge
and deliver or cause to be performed,  executed,  acknowledged and delivered all
such further and other acts,  instruments  and  assurances as may  reasonably be
required by the Rights Agent for the carrying  out or  performing  by the Rights
Agent of the provisions of this Agreement.

         (g) The Rights Agent is hereby  authorized  and directed to only accept
instructions  with respect to the  performance of its duties  hereunder from any
one of the Chairman of the Board,  the Chief Executive  Officer (or any co-Chief
Executive  Officer),  the President,  any Vice  President,  the Treasurer or the
Secretary  of the General  Partner and to apply to such  officers  for advice or
instructions in connection with its duties,  and such instructions shall be full
authorization  and  protection  to the Rights  Agent and the Rights  Agent shall
incur no liability for or in respect of any action taken, suffered or omitted by
it in good faith or lack of action in accordance  with  instructions of any such
officer or for any delay in acting  while  waiting for those  instructions.  Any
application by the Rights Agent for written  instructions  from the  Partnership
may, at the option of the Rights Agent, set forth in writing any action proposed
to be taken or omitted by the Rights Agent under this  Agreement and the date on
or after which such action shall be taken or suffered or such omission  shall be
effective.  The Rights Agent shall not be liable or  responsible  for any action
taken or suffered  by, or omission  of, the Rights  Agent in  accordance  with a
proposal included in any such application on or after the date specified in such
application (which date shall not be less than five Business Days after the date
the General Partner actually receives such application,  unless any such officer
shall have consented in writing to an earlier date) unless,  prior to taking any
such action (or the effective date in the case of an omission), the Rights Agent
shall have  received  written  instruction  from any one of the  Chairman of the
Board, the Chief Executive Officer (or

                                       30
<PAGE>

any  co-Chief  Executive  Officer),  the  President,  any  Vice  President,  the
Treasurer  or  the  Secretary  of  the  General  Partner  in  response  to  such
application specifying the action to be taken, suffered or omitted.

         (h) The Rights Agent and any stockholder,  affiliate, director, officer
or  employee of the Rights  Agent may buy,  sell or deal in any of the Rights or
other  securities of the  Partnership  or become  pecuniarily  interested in any
transaction in which the Partnership may be interested, or contract with or lend
money to the  Partnership or otherwise act as fully and freely as though it were
not Rights Agent under this Agreement.  Nothing herein shall preclude the Rights
Agent from acting in any other  capacity  for the  Partnership  or for any other
Person or legal entity.

         (i) The Rights  Agent may  execute  and  exercise  any of the rights or
powers hereby vested in it or perform any duty hereunder  either itself or by or
through its attorneys or agents, and the Rights Agent shall not be answerable or
accountable for any act, default, neglect or misconduct of any such attorneys or
agents or for any loss to the Partnership or any other Person resulting from any
such act, default, neglect or misconduct,  absent gross negligence, bad faith or
willful misconduct in the selection and continued employment thereof.

         (j) No provision of this  Agreement  shall  require the Rights Agent to
expend or risk its own funds or otherwise  incur any financial  liability in the
performance  of any of its duties  hereunder or in the exercise of its rights if
it believes  that  repayment of such funds or adequate  indemnification  against
such risk or liability is not reasonably assured to it.

         (k) If,  with  respect to any  Rights  Certificate  surrendered  to the
Rights Agent for exercise or transfer,  the certificate  attached to the form of
assignment  or form of  election to  purchase,  as the case may be, has not been
completed,  the Rights  Agent shall not take any further  action with respect to
such  requested   exercise  of  transfer   without  first  consulting  with  the
Partnership.

         Section 21. Change of Rights Agent.

         The  Rights  Agent or any  successor  Rights  Agent may  resign  and be
discharged from its duties under this Agreement upon thirty (30) days' notice in
writing mailed to the  Partnership and to each transfer agent of the Partnership
Units or Preferred  Units by registered or certified mail, and to the holders of
the Right  Certificates  by  first-class  mail. The  Partnership  may remove the
Rights  Agent or any  successor  Rights  Agent upon  sixty (60) days'  notice in
writing,  mailed to the Rights Agent or successor  Rights Agent, as the case may
be, and to each transfer agent of the  Partnership  Units or Preferred  Units by
registered  or  certified  mail,  and to  holders of the Right  Certificates  by
first-class  mail.  If the  Rights  Agent  shall  resign or be  removed or shall
otherwise become incapable of acting,  the Partnership shall appoint a successor
to the Rights Agent. If the Partnership

                                       31
<PAGE>

shall  fail to make such  appointment  within a period of sixty  (60) days after
giving  notice of such removal or after it has been  notified in writing of such
resignation or incapacity by the resigning or  incapacitated  Rights Agent or by
the holder of a Right Certificate (who shall, with such notice, submit his Right
Certificate for inspection by the  Partnership),  then the registered  holder of
any Right  Certificate may apply to any court of competent  jurisdiction for the
appointment of a new Rights Agent. Any successor Rights Agent, whether appointed
by the  Partnership  or by such a court,  shall be a Person  organized and doing
business  under the laws of the United States or of the State of New York (or of
any other state of the United  States so long as such Person is authorized to do
business in the State of New York),  in good  standing,  having an office in the
State of New York, and which is subject to supervision or examination by federal
or state  authority.  After  appointment,  the  successor  Rights Agent shall be
vested with the same powers,  rights,  duties and  responsibilities as if it had
been  originally  named as Rights  Agent  without  further act or deed;  but the
predecessor  Rights  Agent shall  deliver and transfer to the  successor  Rights
Agent any property at the time held by it hereunder, and execute and deliver any
further assurance,  conveyance, act or deed necessary for the purpose. Not later
than the  effective  date of any such  appointment  the  Partnership  shall file
notice  thereof in writing with the  predecessor  Rights Agent and each transfer
agent of the Partnership  Units or Preferred Units, and mail a notice thereof in
writing to the registered holders of the Right Certificates. Failure to give any
notice  provided for in this Section 21, however,  or any defect therein,  shall
not affect the legality or validity of the  resignation or removal of the Rights
Agent or the appointment of the successor Rights Agent, as the case may be.

         Section 22. Issuance of New Right Certificates.

         Notwithstanding  any of the  provisions  of  this  Agreement  or of the
Rights to the  contrary,  the  Partnership  may, at its option,  issue new Right
Certificates  evidencing  Rights in such form as may be  approved by the General
Partner to reflect any adjustment or change in the Purchase Price and the number
or kind or class of units or other securities or property  purchasable under the
Right Certificates made in accordance with the provisions of this Agreement.

         In addition,  in  connection  with the issuance or sale of  Partnership
Units following the Distribution Date and prior to the earlier of the Redemption
Date and the Final  Expiration  Date, the  Partnership (a) shall with respect to
Partnership Units so issued or sold pursuant to the exercise of options or under
any employee plan or arrangement,  or upon the exercise,  conversion or exchange
of securities,  notes or debentures  issued by the Partnership,  and (b) may, in
any other case, if deemed necessary or appropriate by the General Partner, issue
Right  Certificates  representing the appropriate number of Rights in connection
with such issuance or sale;  provided,  however,  that (i) the Partnership shall
not be  obligated  to issue any such  Right  Certificates  if, and to the extent
that,  the  Partnership  shall be advised by counsel  that such  issuance  would
create a significant risk

                                       32
<PAGE>

of material  adverse tax  consequences  to the Partnership or the Person to whom
such Right Certificate  would be issued,  and (ii) no Right Certificate shall be
issued if, and to the extent that,  appropriate  adjustment shall otherwise have
been made in lieu of the issuance thereof.

         Section 23. Redemption and Termination.

         (a) (i) The General Partner may, at its option, redeem all but not less
than all of the then outstanding Rights at a redemption price of $.01 per Right,
as such amount may be  appropriately  adjusted  to reflect any unit split,  unit
distribution  or  similar  transaction  occurring  after the date  hereof  (such
redemption price being hereinafter  referred to as the "Redemption  Price"),  at
any time prior to the earlier of (x) the occurrence of a Section 11(a)(ii) Event
or (y) the Final Expiration Date.

         (ii) In addition,  the General Partner may, at its option,  at any time
following the occurrence of a Section  11(a)(ii) Event and the expiration of any
period  during which the holder of Rights may exercise the rights under  Section
11(a)(ii)  but prior to any Section 13 Event redeem all but not less than all of
the then  outstanding  Rights at the Redemption Price (x) in connection with any
merger,  consolidation  or sale or other  transfer (in one  transaction  or in a
series of related  transactions)  of assets or earning power  aggregating 50% or
more of the earning power of the  Corporation and its  subsidiaries  (taken as a
whole) in which all  holders  of  Partnership  Units are  treated  alike and not
involving  (other than as a holder of  Partnership  Units being treated like all
other such holders) an Interested  Stockholder  or (y)(aa) if and for so long as
the Acquiring Person is not thereafter the Beneficial Owner of 15% of the Common
Shares,  and  (bb) at the time of  redemption  no other  Persons  are  Acquiring
Persons.

         (b) In the  case of a  redemption  permitted  under  Section  23(a)(i),
immediately  upon the date for  redemption  determined  by the  General  Partner
ordering  the  redemption  of the Rights,  and  without  any further  action and
without any notice, the right to exercise the Rights will terminate and the only
right  thereafter  of the holders of Rights  shall be to receive the  Redemption
Price for each Right so held. In the case of a redemption  permitted  only under
Section 23(a)(ii), the right to exercise the Rights will terminate and represent
only the  right to  receive  the  Redemption  Price  upon the  later of ten (10)
Business  Days  following  the giving of such  notice or the  expiration  of any
period  during which the rights under Section  11(a)(ii)  may be exercised.  The
Partnership shall promptly give public notice and notify the Rights Agent of any
such redemption;  provided, however, that the failure to give, or any defect in,
any such notice  shall not affect the  validity of such  redemption.  Within ten
(10) days after such date for  redemption  of the  Rights as  determined  by the
General  Partner,  the Partnership  shall mail a notice of redemption to all the
holders of the then  outstanding  Rights at their last  addresses as they appear
upon the registry books of the Rights Agent or, prior to the Distribution  Date,
on the  registry  books of the transfer  agent for the  Partnership  Units.  Any
notice  which is mailed in the manner  herein  provided  shall be deemed  given,

                                       33
<PAGE>

whether or not the holder  receives the notice.  Each such notice of  redemption
will state the method by which the payment of the Redemption Price will be made.
Neither the  Partnership  nor any of its  Affiliates or  Associates  may redeem,
acquire or  purchase  for value any Rights at any time in any manner  other than
that specifically set forth in this Section 23 and other than in connection with
the purchase of Partnership Units prior to the Distribution Date.

         (c)  The  Partnership  may,  at  its  option,   discharge  all  of  its
obligations with respect to the Rights by (i) issuing a press release announcing
the manner of  redemption of the Rights in  accordance  with this  Agreement and
(ii) mailing  payment of the Redemption  Price to the registered  holders of the
Rights at their  last  addresses  as they  appear on the  registry  books of the
Rights Agent or, prior to the  Distribution  Date, on the registry  books of the
transfer agent of the Partnership  Units, and upon such action,  all outstanding
Rights and Right  Certificates shall be null and void without any further action
by the Partnership.

         Section 24. Exchange.

         (a) The General Partner may, at its option,  at any time after the time
that any Person  becomes an Acquiring  Person,  exchange all or part of the then
outstanding  and  exercisable  Rights (which shall not include  Rights that have
become null and void pursuant to the provisions of Section 7(e)) for Partnership
Units of the Partnership at an exchange ratio of one Partnership Unit per Right,
appropriately  adjusted to reflect any unit split,  unit distribution or similar
transaction   occurring  after  the  date  hereof  (such  exchange  ratio  being
hereinafter referred to as the "Exchange Ratio"). Notwithstanding the foregoing,
the General  Partner  shall not be empowered to effect such exchange at any time
after any Person (other than the Partnership, any Subsidiary of the Partnership,
any employee benefit plan of the Partnership or any such Subsidiary,  any Person
organized,  appointed or established by the  Partnership  for or pursuant to the
terms of any such plan or any  trustee,  administrator  or  fiduciary  of such a
plan),  together with all Affiliates and Associates of such Person,  becomes the
Beneficial Owner of 50% or more of the Partnership Units then outstanding.

         (b)  Immediately  upon the action of the General  Partner  ordering the
exchange of any Rights pursuant to subsection (a) of this Section 24 and without
any further  action and without  any notice,  the right to exercise  such Rights
shall  terminate  and the only right  thereafter  of the  holders of such Rights
shall be to receive that number of Partnership Units equal to the number of such
Rights held by such holder  multiplied by the Exchange  Ratio.  The  Partnership
shall  promptly  give  public  notice and  notify  the Rights  Agent of any such
exchange;  provided,  however,  that the failure to give, or any defect in, such
notice shall not affect the validity of such exchange.  The Partnership promptly
shall mail a notice of any such exchange to all of the holders of such Rights at
their last addresses as they appear upon the registry books of the Rights Agent.
Any notice which is mailed in the manner herein  provided shall be deemed given,
whether or not the holder receives the

                                       34
<PAGE>

notice. Each such notice of exchange will state the method by which the exchange
of the  Partnership  Units for Rights will be effected  and, in the event of any
partial exchange,  the number of Rights will be exchanged.  Any partial exchange
shall be  effected  pro rata based on the number of Rights  (other  than  Rights
which have become null and void pursuant to the provisions of Section 7(e)) held
by each holder of Rights.

         (c) In any exchange  pursuant to this Section 24, the  Partnership,  at
its option,  may substitute  Preferred Units (or equivalent  preferred units, as
such term is defined in Section 11(b) hereof) for some or all of the Partnership
Units  exchangeable for Rights,  at the initial rate of one  one-thousandth of a
preferred  unit (or equivalent  preferred  unit) for each  Partnership  Unit, as
appropriately  adjusted  to  reflect  adjustments  in the  voting  rights of the
Preferred  Units  pursuant  to the  terms  thereof,  so that the  fraction  of a
Preferred  Unit delivered in lieu of each  Partnership  Unit shall have the same
voting rights as one Partnership Unit.

         Section 25. Notice of Certain Events.

         (a) In case the Partnership  shall propose (i) to pay any  distribution
payable in units of any class to the holders of its  Preferred  Units or to make
any other  distribution  to the  holders of its  Preferred  Units  (other than a
regularly  quarterly  cash  distribution),  (ii) to offer to the  holders of its
Preferred  Units  rights  or  warrants  to  subscribe  for  or to  purchase  any
additional Preferred Units or units of any class or any other securities, rights
or options,  (iii) to effect any  reclassification of its Preferred Units (other
than a reclassification  involving only the subdivision of outstanding Preferred
Units), (iv) to effect any consolidation or merger into or with any other Person
(other than a Subsidiary  of the  Partnership  in a  transaction  which does not
violate  Section 11(n)  hereof),  or to effect any sale or other transfer (or to
permit one or more of its  Subsidiaries to effect any sale or other transfer) in
one or more  transactions,  of 50% or more of the assets or earning power of the
Partnership  and its  Subsidiaries  (taken as a whole)  to any  other  Person or
Persons (other than the  Partnership  and/or any of its  Subsidiaries  in one or
more transactions  each of which does not violate Section 11(n) hereof),  or (v)
to effect the liquidation,  dissolution or winding up of the Partnership,  then,
in each such case,  the  Partnership  shall give to the Rights Agent and to each
holder of a Right Certificate, in accordance with Section 26 hereof, a notice of
such  proposed  action  and file a  certificate  with the  Rights  Agent to that
effect,   which  shall  specify  the  record  date  for  the  purposes  of  such
distribution,  or distribution of rights or warrants,  or the date on which such
reclassification,    consolidation,   merger,   sale,   transfer,   liquidation,
dissolution,  or  winding  up is to take  place  and the  date of  participation
therein by the holders of the Preferred  Units, if any such date is to be fixed,
and such  notice  shall be so given in the case of any action  covered by clause
(i) or (ii)  above at least  twenty  (20)  days  prior  to the  record  date for
determining  holders of the Preferred Units for purposes of such action,  and in
the case of any such other  action,  at least twenty (20) days prior to the date
of the taking of such

                                       35
<PAGE>

proposed  action or the date of  participation  therein  by the  holders  of the
Preferred Units, whichever shall be the earlier.

         (b) In case of a  Section  11(a)(ii)  Event,  then (i) the  Partnership
shall  as  soon  as  practicable  thereafter  give  to  each  holder  of a Right
Certificate, in accordance with Section 26 hereof, a notice of the occurrence of
such event,  which notice shall describe such event and the consequences of such
event  to  holders  of  Rights  under  Section  11(a)(ii)  hereof,  and (ii) all
references  in the preceding  paragraph  (a) to Preferred  Units shall be deemed
thereafter to refer also to  Partnership  Units and/or,  if  appropriate,  other
securities of the Partnership.

         Section 26. Notices.

         Notices or demands  authorized by this Agreement to be given or made by
the  Rights  Agent  or by the  holder  of  any  Right  Certificate  to or on the
Partnership  shall be  sufficiently  given or made if sent by first-class  mail,
postage  prepaid,  addressed (until another address is filed in writing with the
Rights Agent) as follows:

                  Reckson Operating Partnership, L.P.
                  225 Broadhollow Road
                  Melville, New York  11747
                  Attention:  Jason Barnett

          Subject to the  provisions of Section 21 hereof,  any notice or demand
authorized by this  Agreement to be given or made by the  Partnership  or by the
holder of any Right  Certificate to or on the Rights Agent shall be sufficiently
given or made if sent by first-class  mail,  postage  prepaid,  addressed (until
another address is filed in writing with the Partnership) as follows:

                  American Stock Transfer & Trust Company
                  59 Maiden Lane
                  New York, New York  10038
                  Attention:  Paula Caroppoli

         Notices or demands  authorized by this Agreement to be given or made by
the  Partnership or the Rights Agent to the holder of any Right  Certificate or,
if prior to the Distribution  Date, to the holders of Partnership Units shall be
sufficiently  given  or  made  if sent by  first-class  mail,  postage  prepaid,
addressed  to such holder at the address of such holder as shown on the registry
books of the Partnership.

         Section 27. Supplements and Amendments.

Except as set forth in the penultimate sentence of this Section 27, prior to the
Distribution  Date,  the  Partnership  may and the Rights  Agent  shall,  if the
Partnership  so directs,  supplement  or amend any  provision of this  Agreement
without the approval of an

                                       36
<PAGE>

holders  of  Partnership  Units.  From and  after  the  Distribution  Date,  the
Partnership  may and the Rights  Agent  shall,  if the  Partnership  so directs,
supplement or amend this Agreement  without the approval of any holders of Right
Certificates  in order (i) to cure any ambiguity,  (ii) to correct or supplement
any provision  contained herein which may be defective or inconsistent  with any
other provisions herein,  (iii) to shorten or lengthen any time period hereunder
or (iv) to change or supplement the provisions hereunder in any manner which the
Partnership may deem necessary or desirable and which shall not adversely affect
the  interests  of the holders of Right  Certificates  (other than an  Acquiring
Person or an Affiliate or Associate of an Acquiring Person); provided,  however,
that this Agreement may not be supplemented or amended to lengthen,  pursuant to
clause (iii) of this sentence, (A) a time period relating to when the Rights may
be redeemed at such time as the Rights are not then redeemable, or (B) any other
time  period  unless any such  lengthening  is for the  purpose  of  protecting,
enhancing or  clarifying  the rights of,  and/or the benefits to, the holders of
Rights. Upon the delivery of a certificate from the General Partner which states
that the proposed  supplement  or amendment is in  compliance  with the terms of
this Section 27, and if requested by the Rights Agent an opinion of counsel, the
Rights Agent shall  execute such  supplement  or  amendment,  provided that such
supplement or amendment  does not adversely  affect the rights or obligations of
the Rights Agent under Section 18 or Section 20 of this Agreement.  Prior to the
Distribution  Date,  the  interests  of the  holders  of Rights  shall be deemed
coincident with the interests of the holders of Partnership Units.

         Section 28. Determination and Actions by the General Partner.

The General  Partner shall have the exclusive  power and authority to administer
this Agreement and to exercise all rights and powers specifically granted to the
General Partner or the  Partnership,  or as may be necessary or advisable in the
administration of this Agreement,  including,  without limitation, the right and
power to (i)  interpret  the  provisions  of this  Agreement,  and (ii) make all
determinations  deemed  necessary or advisable  for the  administration  of this
Agreement  (including,  without  limitation,  a  determination  to redeem or not
redeem the Rights or to amend the Agreement  and whether any proposed  amendment
adversely affects the interests of the holders of Right  Certificates).  For all
purposes of this  Agreement,  any  calculation of the number of Common Shares or
other securities  outstanding at any particular time,  including for purposes of
determining  the  particular  percentage  of such  outstanding  Common Shares or
Partnership  Units or any other securities of which any Person is the Beneficial
Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i)
of the General Rules and Regulations  under the Exchange Act as in effect on the
date of this  Agreement.  All such actions,  calculations,  interpretations  and
determinations  (including, for purposes of clause (y) below, all omissions with
respect to the foregoing)  which are done or made by the General Partner in good
faith (and the Rights  Agent shall be able to assume  that the  General  Partner
acted in such good  faith),  shall (x) be final,  conclusive  and binding on the
Partnership,  the Rights Agent,  the holders of the Right  Certificates  and all
other

                                       37
<PAGE>

Persons, and (y) not subject the General Partner to any liability to the holders
of the Right Certificates.

         Section 29. Successors.

All the covenants and  provisions of this Agreement by or for the benefit of the
Partnership  or the Rights  Agent  shall bind and inure to the  benefit of their
respective successors and assigns hereunder.

         Section 30. Benefits of this Agreement.

Nothing  in this  Agreement  shall be  construed  to give to any person or other
entity other than the Partnership,  the Rights Agent and the registered  holders
of the Right  Certificates (and, prior to the Distribution Date, the Partnership
Units) any legal or equitable right,  remedy or claim under this Agreement;  but
this Agreement shall be for the sole and exclusive  benefit of the  Partnership,
the Rights  Agent and the  registered  holders of the Right  Certificates  (and,
prior to the Distribution Date, the Partnership Units).

         Section 31. Severability.

        If any term,  provision,  covenant or  restriction  of this Agreement is
held by a court of competent jurisdiction or other authority to be invalid, void
or  unenforceable,  the  remainder  of  the  terms,  provisions,  covenants  and
restrictions  of this Agreement  shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

         Section 32. Governing Law.

        This Agreement,  each Right and each Right Certificate  issued hereunder
shall be deemed to be a contract  made  under the laws of the State of  Delaware
and for all purposes  shall be governed by and construed in accordance  with the
laws of such State  applicable  to contracts to be made and  performed  entirely
within such State; except that all provisions  regarding the rights,  duties and
obligations of the Rights Agent shall be governed by and construed in accordance
with the laws of the State of New York  applicable  to contracts  made and to be
performed entirely within such State.

         Section 33. Counterparts.

         This Agreement may be executed in any number of  counterparts  and each
of such counterparts shall for all purposes be deemed to be an original, and all
such counterparts shall together constitute but one and the same instrument.

                                       38
<PAGE>

         Section 34. Descriptive Headings.

         Descriptive  headings of the several  Sections  of this  Agreement  are
inserted  for  convenience  only and shall not  control or affect the meaning or
construction of any of the provisions hereof.

                                       39
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and attested, all as of the date and year first above written.

                                        RECKSON OPERATING
                                        PARTNERSHIP, L.P.

         Attest:

                                        By: Reckson Associates Realty Corp., its
                                            general partner
                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                         AMERICAN STOCK
                                         TRANSFER & TRUST
                                         COMPANY

Attest:

By:_____________________________              By:_______________________________
Name: __________________________              Name: ____________________________
Title: ___________________________            Title: ___________________________

                                       40
<PAGE>

                                                                       Exhibit A

                     SUPPLEMENT TO THE AMENDED AND RESTATED
                        AGREEMENT OF LIMITED PARTNERSHIP
                                       OF

                       RECKSON OPERATING PARTNERSHIP, L.P.

                                  ESTABLISHING

            SERIES F JUNIOR PARTICIPATING PREFERRED PARTNERSHIP UNITS

                                       OF

                          LIMITED PARTNERSHIP INTEREST

         In  accordance  with  Sections  4.2 and 14.1  B(3) of the  Amended  and
Restated Agreement of Limited Partnership,  dated as of June 2, 1995, as amended
on  December  6,  1995,  April 13,  1998,  June 30,  1998 and May 24,  1999 (the
"Partnership  Agreement"),  the Partnership  Agreement is hereby supplemented to
establish  a series of up to  100,000  preferred  units of  limited  partnership
interest of Reckson Operating Partnership,  L.P. (the "Partnership") which shall
be designated "Series F Junior Participating Preferred Units" having the rights,
preferences, powers, privileges and restrictions, qualifications and limitations
substantially  similar to those  granted to or imposed  upon the Series C Junior
Participating  Preferred  Stock,  par value $.01 per share  ("Series C Preferred
Stock") of Reckson  Associates  Realty Corp. (the "Company") as set forth in the
Articles Supplementary adopted the Company and filed with the Secretary of State
of the State of Maryland which shall be issued to the Company.

         Capitalized  terms used and not otherwise defined herein shall have the
meanings set forth in the Partnership Agreement.

         WHEREAS,  the  Partnership  and American Stock Transfer & Trust Company
("Rights  Agent") have entered  into a Rights  Agreement  dated as of January 3,
2000 ("Partnership Rights Agreement");

         WHEREAS,  concurrently  with the entering  into of  Partnership  Rights
Agreement the  Partnership  shall declare and make a distribution to the holders
of  Class A  Common  Partnership  Units of one  Right  for  each  Class A Common
Partnership Unit held; and

                                      A-1

<PAGE>

         WHEREAS,  pursuant to Section  4.2 of the  Partnership  Agreement,  the
Partnership  desires to designate  the Series F Junior  Participating  Preferred
Units with substantially  similar  designation,  preferences and other rights to
the Series C Preferred Stock;

         NOW  THEREFORE,  in  consideration  of the mutual  covenants  contained
herein, and other good and valuable  consideration,  the receipt and sufficiency
of which is hereby acknowledged, the parties hereto agree as follows:

         Section 1. Designation   of  Series F  Junior  Participating  Preferred
                    Units.

         Pursuant to Section 4.2 of the Partnership  Agreement,  the Partnership
hereby designates 100,000 additional partnership units which shall be the Series
F Junior  Participating  Preferred  Units.  The  Series  F Junior  Participating
Preferred Units will have  substantially the same  designation,  preferences and
other rights of the Series C Preferred Stock, as specified in this amendment and
in Exhibit I hereto.

         Section 2. Amendment to Partnership Agreement.

         Pursuant to Section 14.1.B(3) of the Partnership Agreement, the General
Partner, as general partner of the Partnership and as  attorney-in-fact  for its
Limited Partners, hereby amends the Partnership Agreement as follows:

         (a) Article 1 of the Partnership  Agreement is hereby amended by adding
         the following definition of "Series F Preferred Units":

         "Series F  Preferred  Units"  means the  units of  limited  partnership
         interest  designated  by the  Partnership  as of October 13,  2000,  in
         connection  with the designation of the Series C Preferred Stock by the
         Company.

         Section 3. Continuation of Partnership Agreement.

         The Partnership Agreement and this Amendment shall be read together and
shall  have the same force and effect as if the  provisions  of the  Partnership
Agreement and this Amendment  were contained in one document.  Any provisions of
the  Partnership  Agreement not amended by this  Amendment  shall remain in full
force and effect as provided in the Partnership  Agreement  immediately prior to
the date hereof.

                                      A-2

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Supplement to
the Partnership Agreement as of the 13th day of October, 2000.

                                       GENERAL PARTNER
                                       RECKSON ASSOCIATES REALTY CORP.

                                       By:  ____________________________________
                                             Name:
                                             Title:

                                       EXISTING LIMITED PARTNERS

                                       By:  Reckson Associates Realty Corp.,
                                             as Attorney-in-Fact for the Limited
                                             Partners

                                       By:  ____________________________________
                                             Name:
                                             Title:

                                       SERIES F JUNIOR PARTICIPATING
                                       PREFERRED UNIT HOLDER

                                       RECKSON ASSOCIATES REALTY CORP.

                                       By:  ____________________________________
                                              Name:
                                              Title:

                                      A-3

<PAGE>

                                    Exhibit I

         RECKSON OPERATING  PARTNERSHIP,  L.P. DESIGNATION OF THE VOTING POWERS,
DESIGNATIONS,  PREFERENCES AND RELATIVE,  PARTICIPATING AND OTHER SPECIAL RIGHTS
AND  QUALIFICATIONS,  LIMITATIONS,  OR  RESTRICTIONS  OF  THE  SERIES  F  Junior
Participating PREFERRED PARTNERSHIP UNITS.

         The following are the terms of the Series F Junior Participating Junior
Participating   Preferred   Partnership  Units  established   pursuant  to  this
Amendment:

                                      A-4

<PAGE>

            SERIES F JUNIOR PARTICIPATING PREFERRED PARTNERSHIP UNITS

         1. Designation and Number.

         A series of preferred units of the Partnership,  designated the "Series
F Junior  Participating  Preferred  Units" (the  "Series F Preferred  Units") is
hereby  established.  The number the Series F Preferred  Units shall be 100,000.
Such number of units may be  increased or  decreased  at the  discretion  of the
General Partner; provided,  however, that no decrease shall reduce the number of
Series C  Preferred  Units to a number  less than that of the Series F Preferred
Units then outstanding plus the number of Series C Preferred Units issuable upon
exercise  of  outstanding  rights,  options or warrants  or upon  conversion  of
outstanding securities issued by the Partnership.

         2. Distributions.

            (a) The  holders of Series F  Preferred  Units  shall be entitled to
receive,  when,  as and if declared by the General  Partner out of funds legally
available for the purpose,  quarterly  distributions payable in cash January 31,
April 30, July 31 and October 31 in each year (each such date being  referred to
herein as a "Quarterly  Distribution  Payment  Date"),  commencing  on the first
Quarterly  Distribution  Payment  Date  after the  first  issuance  (the  "First
Issuance")  of a unit or fraction of a unit of Series F Preferred  Units,  in an
amount per unit (rounded to the nearest cent) equal to the greater of (i) $10.00
and (ii) 1,000 times the aggregate per unit amount of all cash distributions and
1,000  times the  aggregate  per unit amount  (payable in kind) of all  non-cash
distributions,  other than a distribution  payable in Class A Common Partnership
Units or by way of a subdivision of the outstanding  Class A Common  Partnership
Units,  declared on the Class A Common  Partnership Units, since the immediately
preceding  Quarterly  Distribution  Payment Date,  or, with respect to the first
Quarterly  Distribution  Payment Date,  since the first  issuance of any unit or
fraction of a unit of Series F  Preferred  Units.  In the event the  Partnership
shall at any time after the First Issuance  declare or pay any  distribution  on
the  Class A Common  Partnership  Units  payable  in Class A Common  Partnership
Units,  or  effect  a  subdivision  or  combination  or   consolidation  of  the
outstanding Class A Common Partnership Units (by  reclassification  or otherwise
than by payment of a distribution  of Class A Common  Partnership  Units) into a
greater or lesser number of Class A Common  Partnership Units, then in each such
case the amount to which  holders  of Series F  Preferred  Units  were  entitled
immediately  prior to such event under the preceding  sentence shall be adjusted
by multiplying  such amount by a fraction,  the numerator of which is the number
of Class A Common Partnership Units outstanding immediately after such event and
the denominator of which is the number of Class A Common  Partnership Units that
were outstanding immediately prior to such event.

            (b) On or after  the  First  Issuance,  no  distribution  on Class A
Common  Partnership  Units shall be  declared  unless  concurrently  therewith a
distribution  is  declared  on the  Series  F  Preferred  Units as  provided  in
paragraph (a) above; and the

                                      A-5

<PAGE>

declaration of any such  distribution  on the Class A Common  Partnership  Units
shall be expressly  conditioned upon payment or declaration of and provision for
a distribution on the Series F Preferred  Units as above provided.  In the event
no distribution shall have been declared on the Class A Common Partnership Units
during the period between any Quarterly  Distribution  Payment Date and the next
subsequent  Quarterly  Distribution  Payment Date, a distribution  of $10.00 per
unit on the  Series F  Preferred  Units  shall  nevertheless  be payable on such
subsequent Quarterly Distribution Payment Date.

                  (c) Whenever  quarterly  distributions or other  distributions
payable on the Series F Preferred  Units as provided in paragraph  (a) above are
in arrears,  thereafter and until all accrued and unpaid distributions,  whether
or not declared, on Series F Preferred Units outstanding shall have been paid in
full,  the  Partnership  shall not redeem or purchase or  otherwise  acquire for
consideration  units of any ranking  junior (either as to  distribution  or upon
liquidation,  dissolution  or  winding  up) to the  Series  F  Preferred  Units,
provided  that the  Partnership  may at any time  redeem,  purchase or otherwise
acquire  units  of any  such  junior  units  in  exchange  for any  units of the
Partnership   ranking  junior  (as  to  distributions   and  upon   dissolution,
liquidation or winding up) to the Series F Preferred Units.

                  (d)  Distributions  shall begin to accrue and be cumulative on
outstanding  Series F Preferred  Units from the Quarterly  Distribution  Payment
Date next preceding the date of issue of such Series F Preferred  Units,  unless
the date of issue of such  units  is  prior  to the  record  date for the  first
Quarterly  Distribution  Payment Date, in which case distributions on such units
shall begin to accrue  from the date of issue of such units,  or unless the date
of issue is a Quarterly  Distribution Payment Date or is a date after the record
date for the  determination  of holders of Series F Preferred  Units entitled to
receive a quarterly  distribution and before such Quarterly Distribution Payment
Date, in either of which events such distributions  shall begin to accrue and be
cumulative  from such Quarterly  Distribution  Payment Date.  Accrued but unpaid
distributions shall not bear interest. The General Partner may fix a record date
for the determination of holders of Series F Preferred Units entitled to receive
payment of a distribution  declared thereon,  which record date shall be no more
than 30 days prior to the date fixed for the payment thereof.

         3. Dissolution, Liquidation and Winding Up.

         In the event of any voluntary or involuntary  dissolution,  liquidation
or winding up of the affairs of the  Partnership  (hereinafter  referred to as a
"Liquidation"),  the  holders of Series F  Preferred  Units shall be entitled to
receive the greater of (a) $10.00 per unit,  plus an amount equal to accrued and
unpaid  distributions  thereon,  whether  or not  declared,  to the date of such
payment and (b) the aggregate amount per unit equal to 1,000 times the aggregate
amount  to be  distributed  per unit to  holders  of Class A Common  Partnership
Units. In the event the  Partnership  shall at any time after the First Issuance
declare or pay any distribution on the Class A Common  Partnership Units payable
in Class A Common

                                      A-6

<PAGE>

Partnership  Units, or effect a subdivision or combination or  consolidation  of
the  outstanding  Class A  Common  Partnership  Units  (by  reclassification  or
otherwise than by way of distribution in Class A Common  Partnership Units) into
a greater or lesser  number of Class A Common  Partnership  Units,  then in each
such case the aggregate amount to which holders of Series F Preferred Units were
entitled  immediately prior to such event under the preceding  sentence shall be
adjusted by multiplying  such amount by a fraction the numerator of which is the
number of Class A Common  Partnership Units  outstanding  immediately after such
event and the  denominator of which is the number of Class A Common  Partnership
Units that were outstanding immediately prior to such event.

         4. Voting Rights.

         The holders of Series F Preferred Units shall have the following voting
rights:

            (a) Each Series F Preferred Unit shall entitle the holder thereof to
one thousand (1,000) votes on all matters submitted to a vote of the unitholders
of the  Partnership.  In the event the  Partnership  shall at any time after the
First Issuance declare or pay any distribution on the Class A Common Partnership
Units payable in Class A Common  Partnership  Units,  or effect a subdivision or
combination  or  consolidation  of the  outstanding  units  of  Class  A  Common
Partnership  Units  (by  reclassification  or  otherwise  than by  payment  of a
distribution  in Class A Common  Partnership  Units)  into a  greater  or lesser
number of units of Class A Common  Partnership Units, then in each such case the
aggregate  number of votes to which  holders  of Series F  Preferred  Units were
entitled  immediately prior to such event under the preceding  sentence shall be
adjusted by multiplying  such number by a fraction the numerator of which is the
number of Class A Common  Partnership Units  outstanding  immediately after such
event and the  denominator of which is the number of Class A Common  Partnership
Units that were outstanding immediately prior to such event.

            (b)  Except  as  otherwise   provided  herein,  or  by  law  or  the
Partnership  Agreement,  the holders of Series F Preferred Units and the holders
of Class A Common  Partnership  Units  shall vote  together  as one class on all
matters submitted to a vote of unitholders of the Partnership.

            (c) Except as  otherwise  set forth herein or required by law or the
Partnership Agreement, holders of Series F Preferred Units shall have no special
voting rights and their consent shall not be required (except to the extent they
are  entitled to vote with  holders of Class A Common  Partnership  Units as set
forth  herein)  for the  taking of any  partnership  action.  No  consent of the
holders of outstanding Series F Preferred Units at any time outstanding shall be
required in order to permit the General  Partner to: (i)  increase the number of
authorized  Series F Preferred  Units or to decrease such number to a number not
below the sum of the number of Series F Preferred Units then outstanding and the
number of units with respect to which there are outstanding  rights to purchase;
or

                                      A-7

<PAGE>

(ii)  issue  preferred  partnership  units  which  are  senior  to the  Series F
Preferred Units,  junior to the Series F Preferred Units or on a parity with the
Series F Preferred Units.

         5. Consolidation, Merger, etc.

         In case the  Partnership  shall enter into any  consolidation,  merger,
combination or other  transaction in which the Class A Common  Partnership Units
are  exchanged  for or changed  into  other  securities,  cash  and/or any other
property,  then in any such case each Series F Preferred  Unit shall at the same
time be similarly  exchanged or changed into an amount per unit,  subject to the
provision  for  adjustment  hereinafter  set  forth,  equal to 1,000  times  the
aggregate  amount of  securities,  cash  and/or any other  property  (payable in
kind),  as the  case  may be,  into  which  or for  which  each  Class A  Common
Partnership Unit is changed or exchanged.  In the event the Partnership shall at
any time after the First Issuance declare or pay any distribution on the Class A
Common  Partnership Units payable in Class A Common Partnership Units, or effect
a subdivision or combination or consolidation of the outstanding  Class A Common
Partnership  Units  (by  reclassification  or  otherwise  than by  payment  of a
distribution in Class A Common Partnership Unit) into a greater or lesser number
of Class A Common Partnership Units, then in each such case the amount set forth
in the  preceding  sentence  with  respect to the exchange or change of Series F
Preferred Units shall be adjusted by multiplying such amount by a fraction,  the
numerator of which is the number of Class A Common Partnership Units outstanding
immediately after such event and the denominator of which is the number of Class
A Common  Partnership  Units  that were  outstanding  immediately  prior to such
event.

         6. Redemption.

         The Series F Preferred Units shall not be redeemable.

         7. Conversion Rights.

         The Series F Preferred  Units are not  convertible  into Class A Common
Partnership Units or any other security of the Partnership.

         8. Ranking.

         The Series F Preferred Units shall rank junior to all other classes and
series  of the  Partnership's  Preferred  Partnership  Units  as to  payment  of
distributions  and the  distribution  of  assets,  unless  the terms of any such
series shall provide otherwise.

                                      A-8

<PAGE>

                                                                       Exhibit B

                           (Form of Right Certificate)

Certificate No. R-_______                                         _______ Rights

NOT  EXERCISABLE  AFTER OCTOBER 13, 2010,  UNLESS  EXTENDED PRIOR THERETO BY THE
GENERAL  PARTNER OR  EARLIER  IF  REDEEMED  BY THE  PARTNERSHIP.  THE RIGHTS ARE
SUBJECT TO REDEMPTION,  AT THE OPTION OF THE PARTNERSHIP,  AT $0.01 PER RIGHT ON
THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.

UNDER CERTAIN  CIRCUMSTANCES,  RIGHTS  BENEFICIALLY OWNED BY AN ACQUIRING PERSON
(AS SUCH TERM IS DEFINED IN THE RIGHTS  AGREEMENT) AND ANY SUBSEQUENT  HOLDER OF
SUCH RIGHTS MAY BECOME NULL AND VOID.

[THE RIGHTS  REPRESENTED  BY THIS RIGHTS  CERTIFICATE  ARE OR WERE  BENEFICIALLY
OWNED BY A PERSON  WHO WAS OR BECAME AN  ACQUIRING  PERSON  OR AN  AFFILIATE  OR
ASSOCIATE  OF AN  ACQUIRING  PERSON  (AS SUCH  TERMS ARE  DEFINED  IN THE RIGHTS
AGREEMENT).  ACCORDINGLY,  THIS RIGHTS  CERTIFICATE  AND THE RIGHTS  REPRESENTED
HEREBY ARE NULL AND VOID.]*

                                Right Certificate

                       Reckson Operating Partnership, L.P.

         This certifies that ________________________, or registered assigns, is
the  registered  owner of the  number of Rights set forth  above,  each of which
entitles the owner thereof,  subject to the terms,  provisions and conditions of
the Rights  Agreement,  dated as of October 13, 2000 (the  "Rights  Agreement"),
between Reckson Operating Partnership, L.P., a Delaware limited partnership (the
"Partnership"),  and  American  Stock  Transfer  & Trust  Company  (the  "Rights
Agent"),  to purchase from the  Partnership  at any time after the  Distribution
Date (as such term is defined in the Rights  Agreement)  and prior to 5:00 P.M.,
New York City,  New York time, on October 13, 2010 (unless the Rights  evidenced
hereby shall have been previously  redeemed by the Partnership) at the office or
offices of the Rights Agent designated for such purpose, or at the office of its
successor as Rights Agent,  one  one-thousandth  of a unit of Series F Preferred
Unit (the "Preferred Units"), of the Partnership,  at a purchase price of $84.44
per  one  one-

--------

*        The  portion  of the  legend  in  brackets  shall be  inserted  only if
         applicable and shall replace the preceding sentence.

                                      B-1

<PAGE>

thousandth of Preferred  Unit (the  "Purchase  Price"),  upon  presentation  and
surrender of this Right  Certificate  with the Form of Election to Purchase duly
executed.  The number of Rights  evidenced  by this Right  Certificate  (and the
number of one  one-thousandths  of a Preferred  Unit which may be purchased upon
exercise  hereof) set forth above,  and the Purchase Price set forth above,  are
the number and  Purchase  Price as of October  13,  2000 based on the  Preferred
Units as constituted at such date.

         Upon the  occurrence  of a  Section  11(a)(ii)  Event  (as such term is
defined  in the  Rights  Agreement),  if the  Rights  evidenced  by  this  Right
Certificate are Beneficially Owned by (i) an Acquiring Person or an Affiliate or
Associate of any such Acquiring  Person (as such terms are defined in the Rights
Agreement),  (ii) a  transferee  of any  such  Acquiring  Person,  Associate  or
Affiliate who becomes a transferee  after the Acquiring  Person becomes such, or
(iii)  under  certain  circumstances   specified  in  the  Rights  Agreement,  a
transferee of any such  Acquiring  Person,  Associate or Affiliate who becomes a
transferee  prior to or  concurrently  with the Acquiring  Person becoming such,
such Rights shall become null and void and no holder hereof shall have any right
with  respect  to such  Rights  from and after the  occurrence  of such  Section
11(a)(ii) Event.

         As provided in the Rights Agreement,  the Purchase Price and the number
of one  one-thousandths  of a Preferred  Unit or other  securities  which may be
purchased  upon the exercise of the Rights  evidenced by this Right  Certificate
are subject to modification and adjustment upon the happening of certain events,
including Triggering Events (as such term is defined in the Rights Agreement).

         This Right  Certificate  is subject to all of the terms,  covenants and
restrictions of the Rights  Agreement,  which terms,  covenants and restrictions
are hereby  incorporated herein by reference and made a part hereof and to which
Rights Agreement  reference is hereby made for a full description of the rights,
limitations  of rights,  obligations,  duties and  immunities  hereunder  of the
Rights Agent, the Partnership and the holders of the Right  Certificates,  which
limitations of rights include the temporary  suspension of the exercisability of
such Rights under the specific  circumstances set forth in the Rights Agreement.
Copies of the Rights Agreement are on file at the principal executive offices of
the Partnership and the office or offices of the Rights Agent.

         This Right Certificate, with or without other Right Certificates,  upon
surrender at the  principal  office of the Rights  Agent,  may be exchanged  for
another  Right  Certificate  or  Right  Certificates  of  like  tenor  and  date
evidencing  Rights  entitling the holder to purchase a like aggregate  number of
Preferred  Units  or other  securities  as the  Rights  evidenced  by the  Right
Certificate or Right Certificates surrendered shall have entitled such holder to
purchase. If this Right Certificate shall be exercised in part, the holder shall
be entitled to receive upon surrender hereof another Right  Certificate or Right
Certificates for the number of whole Rights not exercised.

                                      B-2

<PAGE>

         Subject to the provisions of the Rights Agreement, the Rights evidenced
by this  Certificate may be redeemed by the Partnership at a redemption price of
$0.01 per Right  (subject to  adjustment  as  provided in the Rights  Agreement)
payable in cash.

         No fractional  Preferred  Units will be issued upon the exercise of any
Right  or  Rights   evidenced   hereby  (other  than  fractions  which  are  one
one-thousandth or integral  multiples of one one-thousandth of a Preferred Unit,
which may, at the  election  of the  Partnership,  be  evidenced  by  depositary
receipts),  but in lieu thereof a cash payment will be made,  as provided in the
Rights Agreement.

         No  holder  of this  Right  Certificate  shall be  entitled  to vote or
receive  distributions  or be deemed for any purpose the holder of the Preferred
Units or of any other  securities  of the  Partnership  which may at any time be
issuable on the  exercise  hereof,  nor shall  anything  contained in the Rights
Agreement or herein be construed to confer upon the holder hereof,  as such, any
of the rights of a unitholder of the  Partnership  or any right to vote upon any
matter submitted to unitholders at any meeting  thereof,  or to give or withhold
consent to any  partnership  action,  or to receive  notice of meetings or other
actions affecting  unitholders (except as provided in the Rights Agreement),  or
to receive  distributions or to exercise any preemptive or subscription  rights,
or  otherwise,  until the Right or Rights  evidenced  by this Right  Certificate
shall have been exercised as provided in the Rights Agreement.

         This Right Certificate shall not be valid or obligatory for any purpose
until it shall have been countersigned by the Rights Agent.

                                      B-3

<PAGE>

         WITNESS  the  facsimile   signature  of  the  proper  officers  of  the
Partnership and its corporate seal.

[SEAL]

ATTEST:                                RECKSON OPERATING PARTNERSHIP,
                                       L.P.
                                       By:  Reckson Associates Realty Corp., its
                                            general partner

                                       By:______________________________________
                                           Name:
                                           Title:
Countersigned:

AMERICAN STOCK TRANSFER & TRUST COMPANY,
as Rights Agent

By:_____________________________
    Authorized Officer

                                      B-4

<PAGE>

                    Form of Reverse Side of Right Certificate

                               FORM OF ASSIGNMENT

                (To be executed by the registered holder if such
               holder desires to transfer the Right Certificate.)

         FOR VALUE RECEIVED_________________ hereby sells, assigns and transfers

unto

________________________________________________________________________________

________________________________________________________________________________
                 (Please print name and address of transferee)

________________________________________________________________________________
this Right Certificate, together with all right, title and interest therein, and
does hereby  irrevocably  constitute and appoint  _______________  Attorney,  to
transfer  the  within  Right  Certificate  on  the  books  of  the  within-named
Partnership, with full power of substitution.

Dated:  ____________, ____

                                    ____________________________________________
                                    Signature

Signature Guaranteed:

------------------------------------------------------

         The undersigned  hereby certifies that (1) the Rights evidenced by this
Right Certificate are not being sold, assigned or transferred by or on behalf of
a Person who is or was an Acquiring Person or an Affiliate or Associate  thereof
(as such terms are  defined in the Rights  Agreement)  and (2) after due inquiry
and to the best knowledge of the  undersigned,  the  undersigned did not acquire
the Rights evidenced by this Right  Certificate from any Person who is or was an
Acquiring Person or an Affiliate or Associate thereof (as such terms are defined
in the Rights Agreement).

                                    ____________________________________________
                                    Signature

                                      B-5

<PAGE>

             Form of Reverse Side of Right Certificate -- continued
--------------------------------------------------------------------------------

                          FORM OF ELECTION TO PURCHASE

             (To be executed by the registered holder if such holder
                           desires to exercise Rights
                     represented by the Right Certificate.)

To the Rights Agent:

         The undersigned hereby irrevocably elects to exercise _________________
Rights  represented by this Right  Certificate to purchase the Preferred  Units,
Partnership Units or other securities  issuable upon the exercise of such Rights
and requests that  certificates for such Preferred Units,  Partnership  Units or
other securities be issued in the name of:

Please insert social security
or other identifying number  ___________________________________________________
________________________________________________________________________________
                         (Please print name and address)

________________________________________________________________________________
If such  number of Rights  shall not be all the Rights  evidenced  by this Right
Certificate,  a new Right  Certificate for the balance  remaining of such Rights
shall be registered in the name of and delivered to:

Please insert social security
or other identifying number  ________________________________________________
________________________________________________________________________________
                         (Please print name and address)

________________________________________________________________________________

                                      B-6

<PAGE>

             Form of Reverse Side of Right Certificate -- continued
--------------------------------------------------------------------------------

Dated:  _______________, ____

                                                 -------------------------------

                                                  Signature

Signature Guaranteed:

                                      B-7

<PAGE>

             Form of Reverse Side of Right Certificate -- continued.
--------------------------------------------------------------------------------

         The undersigned  hereby certifies that (1) the Rights evidenced by this
Right  Certificate are not being exercised by or on behalf of a Person who is or
was an Acquiring Person or an Affiliate or Associate  thereof (as such terms are
defined  in the  Rights  Agreement)  and (2) after due  inquiry  and to the best
knowledge  of the  undersigned,  the  undersigned  did not  acquire  the  Rights
evidenced by this Rights  Certificate from any Person who is or was an Acquiring
Person or an Affiliate  or  Associate  thereof (as such terms are defined in the
Rights Agreement).

                                                 -------------------------------
                                                 Signature

--------------------------------------------------------------------------------
                                     NOTICE

         The  signature on the foregoing  Forms of  Assignment  and Election and
certificates  must  conform to the name as  written  upon the face of this Right
Certificate in every particular, without alteration or enlargement or any change
whatsoever.

         In  the  event  the  certification  set  forth  above  in the  Form  of
Assignment  or the Form of  Election  to  Purchase,  as the case may be,  is not
completed,  the Partnership and the Rights Agent will deem the Beneficial  Owner
of the Rights  evidenced by this Right  Certificate to be an Acquiring Person or
an  Affiliate  or  Associate  thereof  (as such terms are  defined in the Rights
Agreement) and such Assignment or Election to Purchase will not be honored.

                                      B-8Exhibit 10.1

                                ANTS SOFTWARE.COM
                             2000 STOCK OPTION PLAN

      1. Purpose of the Plan. The purpose of this Stock Option Plan is to offer
certain Employees and Consultants of the Company and its Affiliates the
opportunity to acquire a proprietary interest in the Company by the grant of
options to purchase shares of Common Stock of the Company. Through the Plan, the
Company seeks to attract, motivate, and retain those highly competent persons
upon whose efforts the success of the Company depends. Options granted under the
Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined
by the Administrator at the time of grant of an option and subject to the
applicable provisions of Section 422 of the Code and the regulations promulgated
thereunder. Options granted under the Plan may be immediately exercisable, or
may be exercisable in installments, as determined by the Administrator at the
time of grant.

      2. Definitions. As used herein, the following definitions shall apply.

            "Administrator" means the Board or any of its Committees appointed
pursuant to Section 4 of the Plan.

            "Affiliate" means any parent or subsidiary (as defined in Section
424(e) and (f) of the Code) of the Company.

            "Board" means the Board of Directors of the Company.

            "Code" means the Internal Revenue Code of 1986, as amended.

            "Committee" means a committee appointed by the Board in accordance
with Section 4 of the Plan.

            "Common Stock" means the common stock of the Company.

            "Company" means ANTs software.com.

            "Consultant" means any person other than an Employee who is engaged
by the Company or any Affiliate to render consulting or advisory services and is
compensated for such services, including a non-Employee director.

            "Continuous Status as an Employee or Consultant" means that the
employment or consulting relationship with the Company or any Affiliate is not
interrupted or terminated. For purposes of Incentive Stock Options, the term
"Continuous Status as an Employee or Consultant" means that the employment
relationship with the Company or any Affiliate is not interrupted or terminated.
Continuous Status as an Employee or Consultant shall not be considered
interrupted in the case of (i) any leave of absence approved by the Company or
an Affiliate or (ii) transfers between locations of the Company and its
Affiliates or between the Company and any Affiliate, or between Affiliates or
(iii) transfer between Employee and Consultant Status. If reemployment upon

<PAGE>

expiration of a leave of absence approved by the Company or an Affiliate is not
guaranteed by statute or contract, on the 181st day after such leave commences
any Incentive Stock Option held by the Optionee shall cease to be treated as an
Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory
Stock Option. In the event of an Optionee's change in status from Consultant to
Employee or Employee to Consultant, an Optionee's Continuous Status as an
Employee or Consultant shall not automatically terminate solely as a result of
such change in status. However, in such event, an Incentive Stock Option held by
the Optionee shall cease to be treated as an Incentive Stock Option and shall be
treated for tax purposes as a Nonstatutory Stock Option three months and one day
following such change of status.

            "Corporate Transaction" means (i) a merger or acquisition in which
the Company is not the surviving entity, except for a transaction the principal
purpose of which is to change the state of the Company's incorporation, (ii) the
sale, transfer, or other disposition of all or substantially all of the assets
of the Company, or (iii) any reverse merger in which the Company remains the
surviving entity following its acquisition by another enterprise.

            "Disability" means total and permanent mental or physical disability
as defined in Section 22(e)(3) of the Code.

            "Employee" means any person, including officers and directors,
employed by the Company or any Affiliate. The payment of a director's fee by the
Company shall not be sufficient to constitute "employment" by the Company.

            "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            "Fair Market Value" means, as of any date, the value of Common Stock
determined as follows:

                  (i) If the Common Stock is listed on any established stock
exchange or a national market system including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid price, if no sales were reported) as quoted on such exchange or
system for the last market trading day prior to the time of determination, as
reported in The Wall Street Journal or such other source as the Administrator
deems reliable;

                  (ii) If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, Fair Market Value shall
be the mean between the high bid and low asked prices for the Common Stock on
the last market trading day prior to the day of determination; or

                  (iii) In the absence of an established market for the Common
Stock, the Fair Market Value shall be determined in good faith by the
Administrator.

                                     - 2 -
<PAGE>

            "Incentive Stock Option" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code.

            "Nonstatutory Stock Option" means an Option not intended to qualify
as an Incentive Stock Option.

            "Option" means a stock option granted pursuant to the Plan.

            "Optioned Shares" means the shares of Common Stock subject to an
Option.

            "Optionee" means an Employee or Consultant who receives an Option.

            "Plan" means the ANTs software.com 2000 Stock Option Plan.

            "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any successor
to Rule 16b-3.

            "Service Provider" means an Employee or Consultant.

            "Share" means a share of the Common Stock, as adjusted in accordance
with Section 11 below.

      3. Stock Subject to the Plan. The maximum aggregate number of Shares which
may be optioned and sold under the Plan is 2,000,000, subject to adjustment in
accordance with Section 11 below. If an Option expires or becomes unexercisable
without having been exercised in full, or is surrendered pursuant to an option
exchange program authorized by the Administrator, the unpurchased Shares which
were subject thereto shall become available for future grant or sale under the
Plan (unless the Plan has terminated); unvested Shares repurchased by the
Company at their original purchase price shall become available for future grant
under the Plan.

      4. Administration of the Plan.

            (a) Initial Plan Procedure. Prior to the date, if any, upon which
the Company becomes subject to the Exchange Act, the Plan shall be administered
by the Board or a Committee appointed by the Board.

            (b) Plan Procedure after the Date, if any, upon which the Company
becomes Subject to the Exchange Act.

                  (i) Multiple Administrative Bodies. The Plan may be
administered by different Committees with respect to different groups of Service
Providers.

                  (ii) Section 162(m). To the extent that the Administrator
determines it to be desirable to qualify Options granted hereunder as
"performance-based compensation" within the

                                     - 3 -
<PAGE>

meaning of Section 162(m) of the Code, the Plan shall be administered by a
Committee of two or more "outside directors" within the meaning of Section
162(m) of the Code.

                  (iii) Rule 16b-3. To the extent desirable to qualify
transactions hereunder as exempt under Rule 16b-3, the transactions contemplated
hereunder shall be structured to satisfy the requirements for exemption under
Rule 16b-3.

                  (iv) Other Administration. Other than as provided for above,
the Plan shall be administered by (A) the Board or (B) a Committee, which
Committee shall be constituted to satisfy applicable laws.

            (c) Powers of the Administrator. Subject to the provisions of the
Plan and in the case of specific duties delegated by the Board to such
Committee, and subject to the approval of relevant authorities, including the
approval, if required, of any stock exchange or national market system upon
which the Common Stock is then listed, the Administrator shall have the
authority, in its discretion:

                  (i) to determine the Fair Market Value of the Common Stock:

                  (ii) to select the Consultants and Employees to whom Options
may from time to time be granted hereunder;

                  (iii) to determine whether and to what extent Options are
granted hereunder;

                  (iv) to determine the number of Shares to be covered by each
such Option granted hereunder;

                  (v) to approve the terms of Agreements used under the Plan;

                  (vi) to determine the terms and conditions not inconsistent
with the terms of the Plan, of any Option granted hereunder. Such terms and
conditions may include, but are not limited to, the exercise price, the time or
times when Options may be exercised, the vesting schedule, any vesting
acceleration or waiver of forfeiture restrictions, and any restriction or
limitation regarding any Option or the Shares relating thereto, based in each
case on such factors as the Administrator, in its sole discretion, shall
determine;

                  (vii) to determine whether and under what circumstances an
Option may be settled in cash or Shares under Section 9(e) below;

                  (viii) to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stack covered
by such Option has declined since the date the Option was granted; and

                                     - 4 -
<PAGE>

                  (ix) to construe and interpret the terms of the Plan and
awards granted pursuant to the Plan.

            (d) Effect of Administrator's Decision. All decisions,
determinations, and interpretations of the Administrator shall be final and
binding on all Optionees and any other holders of any Options.

      5. Eligibility.

            (a) Incentive Stock Options may be granted only to Employees.
Nonstatutory Stock Options may be granted to Employees and Consultants. An
Employee or Consultant who has been granted an Option may, if otherwise
eligible, be granted additional Options.

            (b) Each Option shall be designated in the written Option Agreement
either as an Incentive Stock Option or as a Nonstatutory Stock Option.

            (c) The Plan shall not confer upon any Optionee any right with
respect to the continuation of the Optionee's employment or consulting
relationship with the Company, nor shall it interfere in any way with the
Optionee's right or the Company's right to terminate the Optionee's employment
or consulting relationship at any time, with or without cause.

      6. Term of the Plan. The Plan shall become effective upon its adoption by
the Board. It shall continue in effect for a term of ten (10) years unless
sooner terminated under Section 13 below.

      7. Term of Option. The term of each Option shall be the term stated in the
Option Agreement; provided, however, that the term shall be no more than ten
(10) years from the date of grant thereof. However, in the case of an Incentive
Stock Option granted to an Optionee who, at the time the Option is granted, owns
stock representing more than ten percent (10%) of the voting power of all
classes of stock of the Company or any Affiliate, the term of the Option shall
not exceed five years from the date of grant thereof.

      8. Option Exercise Price and Consideration.

            (a) The per Share exercise price for the Shares to be issued
pursuant to exercise of an Option shall be such price as is determined by the
Board, but in the case of:

                  (i) an Option granted to an Employee who, at the time of the
grant of such Option, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Affiliate, the per
Share exercise price shall be no less than 110% of the Fair Market Value per
Share on the date of grant.

                                     - 5 -
<PAGE>

                  (ii) an Incentive Stock Option granted to any Employee other
than an Employee described in the preceding paragraph, the per Share exercise
price shall be no less than 100% of the Fair Market Value per Share on the date
of grant.

                  (iii) a Nonstatutory Stock Option granted to any Consultant or
Employee, the per Share exercise price shall be no less than 85% of the Fair
Market Value per Share on the date of grant.

            (b) The consideration to be paid for the Shares to be issued upon
exercise of an Option, including the method of payment, shall be determined by
the Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant) and may consist entirely of (i) cash, (ii)
check, (iii) other Shares which (A) in the case of Shares acquired upon exercise
of an Option have been owned by the Optionee for more than six months on the
date of surrender and (B) have a Fair Market Value on the date of surrender
equal to the aggregate exercise price of the Shares as to which such Option
shall be exercised, (iv) delivery of a properly executed exercise notice
together with such other documentation as the Administrator and the broker, if
applicable, shall require to effect an exercise of the Option and delivery to
the Company of the sale proceeds required to pay the exercise price, or (v) any
combination of the foregoing methods of payment. In making its determination as
to type the of consideration to accept, the Administrator shall consider if
acceptance of such consideration may be reasonably expected to benefit the
Company.

      9. Exercise of Option.

            (a) Procedure for Exercise; Rights as a Shareholder. Any Option
granted hereunder shall be exercisable and shall vest at such times and under
such conditions as determined by the Administrator, including performance
criteria with respect to the Company and/or the Optionee, and shall be
permissible under the terms of the Plan, but in no case shall an Option or the
Shares purchased thereunder vest at a rate of less than 20% per year. An Option
may not be exercised for a fraction of a Share.

            An Option shall be deemed to be exercised when written notice of
such exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company. Full payment may, as authorized by the Administrator, consist of any
consideration and method of payment allowable under Section 8(b) above. Until
the issuance (as evidenced by the appropriate entry on the books of the Company
or of a duly authorized transfer agent of the Company) of the stock certificate
evidencing such Shares, no right to vote or receive dividends or any other
rights as a shareholder shall exist with respect to the Optioned Shares,
notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such certificate promptly upon exercise of the Option. No adjustment
will be made for a dividend or other right for which the record date is prior to
the date the stock certificate is issued, except as provided in Section 11
below.

                                     - 6 -
<PAGE>

            Exercise of an Option in any manner shall result in a decrease in
the number of Shares which thereafter may be available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

            (b) Termination of Employment or Consulting Relationship. Except as
provided in Section 9(e) below, upon termination of an Optionee's Continuous
Status as an Employee or Consultant, other than upon the Optionee's death or
Disability, the Optionee may exercise his or her Option, but only within three
(3) months following the Optionee's termination, and only to the extent that the
Option was vested at the date of termination (but in no event later than the
expiration of the term of such Option as set forth in the Notice of Grant). To
the extent that Optionee is not vested in the Option at the date of termination,
or if the Option is not exercised within the time specified herein, the Option
shall terminate, and the Shares covered by such Option shall revert to the Plan.

            (c) Disability of Optionee. In the event of termination of an
Optionee's Continuous Status as an Employee or Consultant as a result of his or
her Disability, the Optionee may, but only within twelve (12) months from the
date of such termination (and in no event later than the expiration date of the
term of his or her Option as set forth in the Notice of Grant), exercise the
Option to the extent the Option was vested on the date of such termination. To
the extent the Optionee is not entitled to exercise the Option on the date of
termination, or if the Optionee does not exercise the Option to the extent so
entitled within the time specified herein, the Option shall terminate, and the
Shares covered by the Option shall revert to the Plan.

            (d) Death of Optionee. In the event of the death of an Optionee
while an Employee or Consultant, the Option may be exercised at any time within
twelve (12) months following the date of death (but in no event later than the
expiration date of the term of his or her Option as set forth in the Notice of
Grant), by the Optionee's estate or by a person who has acquired the right to
exercise the Option by bequest or inheritance, but only to the extent that the
Option was vested at the date of death. To the extent that Optionee is not
vested in the Option at the date of death, or if the Option is not exercised
within the time specified herein, the Option shall terminate, and the Shares
covered by such Option shall revert to the Plan.

            (e) In the event of termination of an Optionee's Continuous Status
as an Employee or Consultant as a result of misconduct (including, but not
limited to, any act of dishonesty, willful misconduct, fraud or embezzlement) or
should the Optionee make or attempt to make any unauthorized use or disclosure
of material confidential information or trade secrets of the Company or any
Affiliate, then in any such event his or her option shall terminate and cease to
be exercisable immediately upon such termination of such Service Provider Status
or such unauthorized disclosure or use of confidential or secret information or
attempt thereat.

            (f) Buyout Provision. The Administrator may at any time offer to buy
out for a payment in cash or Shares, an Option previously granted, based on such
terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made.

                                     - 7 -
<PAGE>

      10. Non-Transferability of Options. Options may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.

      11. Adjustments Upon Changes in Capitalization, Dissolution, Liquidation,
or Corporate Transactions.

            (a) Changes in Capitalization. The number of Shares covered by each
outstanding Option, and the number of Shares which have been authorized for
which no Options have yet been granted or which have been returned to the Plan
upon cancellation or expiration of an Option, as well as the exercise price per
share of Common Stock covered by each such outstanding Option, shall be
proportionately adjusted for any increase or decrease in the number of issued
and outstanding Shares resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock or any other
increase or decrease in the number of issued and outstanding Shares effected
without receipt of consideration by the Company; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to
have been "effected without receipt of consideration". Such adjustment shall be
made by the Administrator, whose determination in that respect shall be final,
binding and conclusive.

            (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
dissolution or liquidation. In such event, the Administrator, in its discretion,
may provide for an Optionee to fully vest in his or her Option and may provide
that any Company repurchase option applicable to any Shares purchased upon
exercise of an Option shall lapse as to any or all such Shares. To the extent it
has not been previously exercised, an Option will terminate immediately or the
consummation of such proposed dissolution or liquidation.

            (c) Corporate Transaction. In the event of a Corporate Transaction,
each outstanding Option shall confer the right to purchase or receive, for each
Optioned Share subject to the Option immediately prior to such Corporate
Transaction, the consideration (whether stock, cash, or other securities or
property) received or receivable by holders of Common Stock in connection with
such Corporate Transaction. In the event that the successor corporation refuses
to confer such right, the Optionee shall fully vest in the Option. If an Option
becomes fully vested pursuant to the preceding sentence, the Administrator shall
notify the Optionee that the Option shall be fully vested for a period of time
not less than fifteen (15) days from the date of such notice, and the Option
shall terminate upon the expiration of such period.

            (d) Deferred Distributions. To the extent permitted by the
Administrator, an Optionee may elect to defer distributions with respect to an
Option that is terminating due to a Corporate Transaction. To do so, the
Optionee must file a deferral election with the Administrator directing that his
or her Shares (or cash or other property in lieu of Shares if the shares are
unavailable due to such corporate Transaction) be distributed to the Optionee in
installments over a period of time not to exceed ten (10) years, commencing
within two (2) years following the closing of such Corporate Transaction. In the
event of such election, then the successor to the Company

                                     - 8 -
<PAGE>

shall make distributions in accordance with the Optionee's election. In the
event that such election is made less than 1 year before the closing of such
Corporate Transaction, a late election penalty may be imposed.

            (e) Parachute Payment Limitation. Except as may be otherwise
provided in a Stock Option Agreement, the grant of a stock option shall be
subject to certain so-called parachute payment limitations. Any tax
determinations required under this section shall be made in writing by the
Company's independent accountants, whose determination shall be conclusive and
binding for all purposes on the Company and on any and all affected optionees.
If an optionee's stock option grant is impacted, the Company shall provide such
optionee with a detailed accounting of the underlying assumptions and
calculations.

      12. Time of Granting Options. The date of grant of an Option shall, for
all purposes, be the date on which the Administrator makes the determination
granting such Option, or such other date as determined by the Administrator.
Notice of the determination shall be given to each Employee or Consultant to
whom an Option is so granted within a reasonable time after the date of such
grant.

      13. Amendment and Termination of the Plan.

            (a) Amendment and Termination. The Board may at any time amend,
alter, suspend, or discontinue the Plan, but no amendment, alteration,
suspension, or discontinuation shall be made which would materially impair the
rights of any Optionee under any grant theretofore made without his or her
consent. In addition, to the extent necessary and desirable to comply with
Section 422 of the Code (or any other applicable law or regulation, including
the requirements of any stock exchange or national market system upon which the
Common Stock is then listed), the Company shall obtain shareholder approval of
any Plan amendment in such a manner and to such a degree as required.

            (b) Effect of Amendment and Termination. Any such amendment or
termination of the Plan shall not affect Options already granted, and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Optionee and
the Board, which agreement must be in writing and signed by the Optionee and the
Company.

      14. Conditions Upon Issuance of Shares. Shares shall not be issued
pursuant to the exercise of Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, and requirements of any stock exchange or national market system
upon which the Common Stock is listed or traded, and shall be further subject to
the approval of counsel for the Company with respect to such compliance.

                                     - 9 -
<PAGE>

            As a condition to the exercise of an Option, the Company may require
the person exercising such Option so represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in opinion
of counsel for the Company, such a representation is required by any of the
aforementioned relevant provisions of law.

      15. Inability to Obtain Authority. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company's counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall have been obtained.

      16. Agreements. Options shall be evidenced by written agreements in such
form as the Administrator shall approve from time to time.

      17. Shareholder Approval. The Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months before or after the date
the Plan is adopted. Such shareholder approval shall be obtained in the degree
and manner required under applicable state and federal law and the rules of any
stock exchange or national market system upon which the Common Stock is then
listed or traded.

      18. Information to Optionees and Purchasers. The Company shall provide
each Optionee, not less frequently than annually, copies of the Company's annual
financial statements. The Company shall also provide such statements to each
individual who acquires Shares pursuant to the Plan while such individual owns
such Shares.

            IN WITNESS WHEREOF, the Company has adopted this Plan effective as
of April 10, 2000.

                                            ANTS SOFTWARE.COM

                                        By: _____________________________
                                            John L. Crary, Secretary

                                     - 10 -

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