Document:

exv4w3

 

Exhibit 4.3

FORM OF SUBORDINATED INDENTURE

 

DAWSON GEOPHYSICAL COMPANY

as Issuer

and

[____________________________________]

as Trustee

 

Indenture

Dated as of ________ ___, 200_

 

Subordinated Debt Securities

 

 

 

DAWSON GEOPHYSICAL COMPANY

Reconciliation and tie between Trust Indenture Act of 1939

and Indenture, dated as of _______ ___, 200_

___________________________

	 	 	 	 	 	 	 
	Section of	 	 	 	 
	Trust Indenture	 	 	 	Section(s) of
	Act of 1939	 	 	 	Indenture
	§ 310
	 	(a)(1)	 	 	 	7.10
	 
	 	(a)(2)	 	 	 	7.10
	 
	 	(a)(3)	 	 	 	Not Applicable
	 
	 	(a)(4)	 	 	 	Not Applicable
	 
	 	(a)(5)	 	 	 	7.10
	 
	 	(b)	 	 	 	7.08, 7.10
	§ 311
	 	(a)	 	 	 	7.11
	 
	 	(b)	 	 	 	7.11
	 
	 	(c)	 	 	 	Not Applicable
	§ 312
	 	(a)	 	 	 	2.07
	 
	 	(b)	 	 	 	11.03
	 
	 	(c)	 	 	 	11.03
	§ 313
	 	(a)	 	 	 	7.06
	 
	 	(b)	 	 	 	7.06
	 
	 	(c)	 	 	 	7.06
	 
	 	(d)	 	 	 	7.06
	§ 314
	 	(a)	 	 	 	4.03, 4.04
	 
	 	(b)	 	 	 	Not Applicable
	 
	 	(c)(1)	 	 	 	11.04
	 
	 	(c)(2)	 	 	 	11.04
	 
	 	(c)(3)	 	 	 	Not Applicable
	 
	 	(d)	 	 	 	Not Applicable
	 
	 	(e)	 	 	 	11.05
	§ 315
	 	(a)	 	 	 	7.01(b)
	 
	 	(b)	 	 	 	7.05
	 
	 	(c)	 	 	 	7.01(a)
	 
	 	(d)	 	 	 	7.01(c)
	 
	 	(d)(1)	 	 	 	7.01(c)(1)
	 
	 	(d)(2)	 	 	 	7.01(c)(2)
	 
	 	(d)(3)	 	 	 	7.01(c)(3)
	 
	 	(e)	 	 	 	6.11
	§ 316
	 	(a)(1)(A)	 	 	 	6.05
	 
	 	(a)(1)(B)	 	 	 	6.04
	 
	 	(a)(2)	 	 	 	Not Applicable
	 
	 	(a)(last sentence)	 	 	 	2.11
	 
	 	(b)	 	 	 	6.07
	§ 317
	 	(a)(1)	 	 	 	6.08
	 
	 	(a)(2)	 	 	 	6.09
	 
	 	(b)	 	 	 	2.06
	§ 318
	 	(a)	 	 	 	11.01

 

			
	Note:	 	 This reconciliation and tie shall not, for any purpose, be deemed to be a part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I
	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01 Definitions
	 	 	1	 
	SECTION 1.02 Other Definitions
	 	 	6	 
	SECTION 1.03 Incorporation by Reference of Trust Indenture Act
	 	 	7	 
	SECTION 1.04 Rules of Construction
	 	 	7	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	THE SECURITIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01 Amount Unlimited; Issuable in Series
	 	 	8	 
	SECTION 2.02 Denominations
	 	 	11	 
	SECTION 2.03 Forms Generally
	 	 	11	 
	SECTION 2.04 Execution, Authentication, Delivery and Dating
	 	 	11	 
	SECTION 2.05 Registrar and Paying Agent
	 	 	13	 
	SECTION 2.06 Paying Agent to Hold Money in Trust
	 	 	14	 
	SECTION 2.07 Holder Lists
	 	 	14	 
	SECTION 2.08 Transfer and Exchange
	 	 	14	 
	SECTION 2.09 Replacement Securities
	 	 	15	 
	SECTION 2.10 Outstanding Securities
	 	 	15	 
	SECTION 2.11 Original Issue Discount, Foreign-Currency Denominated
and Treasury Securities
	 	 	16	 
	SECTION 2.12 Temporary Securities
	 	 	16	 
	SECTION 2.13 Cancellation
	 	 	16	 
	SECTION 2.14 Payments; Defaulted Interest
	 	 	17	 
	SECTION 2.15 Persons Deemed Owners
	 	 	17	 
	SECTION 2.16 Computation of Interest
	 	 	17	 
	SECTION 2.17 Global Securities; Book-Entry Provisions
	 	 	17	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	REDEMPTION
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01 Applicability of Article
	 	 	20	 
	SECTION 3.02 Notice to the Trustee
	 	 	20	 
	SECTION 3.03 Selection of Securities To Be Redeemed
	 	 	20	 
	SECTION 3.04 Notice of Redemption
	 	 	21	 
	SECTION 3.05 Effect of Notice of Redemption
	 	 	22	 
	SECTION 3.06 Deposit of Redemption Price
	 	 	22	 
	SECTION 3.07 Securities Redeemed or Purchased in Part
	 	 	22	 
	SECTION 3.08 Purchase of Securities
	 	 	23	 
	SECTION 3.09 Mandatory and Optional Sinking Funds
	 	 	23	 
	SECTION 3.10 Satisfaction of Sinking Fund Payments with Securities
	 	 	23	 

i

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 3.11 Redemption of Securities for Sinking Fund
	 	 	23	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	COVENANTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01 Payment of Securities
	 	 	24	 
	SECTION 4.02 Maintenance of Office or Agency
	 	 	25	 
	SECTION 4.03 SEC Reports; Financial Statements
	 	 	25	 
	SECTION 4.04 Compliance Certificate
	 	 	26	 
	SECTION 4.05 Existence
	 	 	26	 
	SECTION 4.06 Waiver of Stay, Extension or Usury Laws
	 	 	26	 
	SECTION 4.07 Additional Amounts
	 	 	27	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	SUCCESSORS
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01 Limitations on Mergers, Consolidations and Other Transactions
	 	 	27	 
	SECTION 5.02 Successor Person Substituted
	 	 	28	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	DEFAULTS AND REMEDIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01 Events of Default
	 	 	28	 
	SECTION 6.02 Acceleration
	 	 	30	 
	SECTION 6.03 Other Remedies
	 	 	31	 
	SECTION 6.04 Waiver of Defaults
	 	 	31	 
	SECTION 6.05 Control by Majority
	 	 	31	 
	SECTION 6.06 Limitations on Suits
	 	 	32	 
	SECTION 6.07 Rights of Holders to Receive Payment
	 	 	32	 
	SECTION 6.08 Collection Suit by Trustee
	 	 	32	 
	SECTION 6.09 Trustee May File Proofs of Claim
	 	 	33	 
	SECTION 6.10 Priorities
	 	 	33	 
	SECTION 6.11 Undertaking for Costs
	 	 	34	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01 Duties of Trustee
	 	 	34	 
	SECTION 7.02 Rights of Trustee
	 	 	35	 
	SECTION 7.03 May Hold Securities
	 	 	36	 
	SECTION 7.04 Trustee’s Disclaimer
	 	 	36	 
	SECTION 7.05 Notice of Defaults
	 	 	37	 
	SECTION 7.06 Reports by Trustee to Holders
	 	 	37	 
	SECTION 7.07 Compensation and Indemnity
	 	 	37	 
	SECTION 7.08 Replacement of Trustee
	 	 	38	 
	SECTION 7.09 Successor Trustee by Merger, etc.
	 	 	40	 
	SECTION 7.10 Eligibility; Disqualification
	 	 	40	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 7.11 Preferential Collection of Claims Against Company
	 	 	40	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	DISCHARGE OF INDENTURE
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01 Termination of Company’s Obligations
	 	 	40	 
	SECTION 8.02 Application of Trust Money
	 	 	44	 
	SECTION 8.03 Repayment to Company
	 	 	45	 
	SECTION 8.04 Reinstatement
	 	 	45	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	SUPPLEMENTAL INDENTURES AND AMENDMENTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01 Without Consent of Holders
	 	 	45	 
	SECTION 9.02 With Consent of Holders
	 	 	47	 
	SECTION 9.03 Compliance with Trust Indenture Act
	 	 	49	 
	SECTION 9.04 Revocation and Effect of Consents
	 	 	49	 
	SECTION 9.05 Notation on or Exchange of Securities
	 	 	49	 
	SECTION 9.06 Trustee to Sign Amendments, etc.
	 	 	50	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	SUBORDINATION
	 	 	 	 
	 
	 	 	 	 
	SECTION 10.01 Securities Subordinated to Senior Debt
	 	 	50	 
	SECTION 10.02 No Payment on Securities in Certain Circumstances
	 	 	50	 
	SECTION 10.03 Securities Subordinated to Prior Payment of All Senior
Debt on Dissolution, Liquidation or Reorganization
	 	 	52	 
	SECTION 10.04 Subrogation to Rights of Holders of Senior Debt
	 	 	52	 
	SECTION 10.05 Obligations of the Company Unconditional
	 	 	53	 
	SECTION 10.06 Trustee Entitled to Assume Payments Not
Prohibited in Absence of Notice
	 	 	54	 
	SECTION 10.07 Application by Trustee of Amounts Deposited with It
	 	 	54	 
	SECTION 10.08 Subordination Rights Not Impaired by Acts or Omissions
of the Company or Holders of Senior Debt
	 	 	54	 
	SECTION 10.09 Trustee to Effectuate Subordination of Securities
	 	 	55	 
	SECTION 10.10 Right of Trustee to Hold Senior Debt
	 	 	55	 
	SECTION 10.11 Article X Not to Prevent Events of Default
	 	 	55	 
	SECTION 10.12 No Fiduciary Duty of Trustee to Holders of Senior Debt
	 	 	55	 
	SECTION 10.13 Article Applicable to Paying Agent
	 	 	56	 
	 
	 	 	 	 
	ARTICLE XI
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	SECTION 11.01 Trust Indenture Act Controls
	 	 	56	 
	SECTION 11.02 Notices
	 	 	56	 
	SECTION 11.03 Communication by Holders with Other Holders
	 	 	57	 
	SECTION 11.04 Certificate and Opinion as to Conditions Precedent
	 	 	57	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 11.05 Statements Required in Certificate or Opinion
	 	 	58	 
	SECTION 11.06 Rules by Trustee and Agents
	 	 	58	 
	SECTION 11.07 Legal Holidays
	 	 	58	 
	SECTION 11.08 No Recourse Against Others
	 	 	58	 
	SECTION 11.09 Governing Law
	 	 	59	 
	SECTION 11.10 No Adverse Interpretation of Other Agreements
	 	 	59	 
	SECTION 11.11 Successors
	 	 	59	 
	SECTION 11.12 Severability
	 	 	59	 
	SECTION 11.13 Counterpart Originals
	 	 	59	 
	SECTION 11.14 Table of Contents, Headings, etc.
	 	 	59	 

iv

 

          INDENTURE
dated as of ________ ___, 200___between Dawson Geophysical Company, a Texas
corporation (the “Company”), and [__________________], as trustee (the “Trustee”).

          Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Company’s unsecured subordinated debentures, notes or other evidences
of indebtedness (the “Securities”) to be issued from time to time in one or more series as provided
in this Indenture:

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01 Definitions.

          “Additional Amounts” means any additional amounts required by the express terms of a Security
or by or pursuant to a Board Resolution, under circumstances specified therein or pursuant thereto,
to be paid by the Company with respect to certain taxes, assessments or other governmental charges
imposed on certain Holders and that are owing to those Holders.

          “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by, or under direct or indirect common control with, that specified Person. For
purposes of this definition, “control” of a Person shall mean the power to direct the management
and policies of that Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms “controlling” and “controlled” shall have
meanings correlative to the foregoing.

          “Agent” means any Registrar or Paying Agent.

          “Bankruptcy Law” means Title 11 of the United States Code or any similar federal, state or
foreign law for the relief of debtors.

          “Board of Directors” means the Board of Directors of the Company or any committee thereof duly
authorized, with respect to any particular matter, to act by or on behalf of the Board of Directors
of the Company.

          “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of that certification, and delivered to the Trustee.

          “Business Day” means any day that is not a Legal Holiday.

          “Capital Stock” means, with respect to any corporation, any and all shares, interests, rights
to purchase (other than convertible or exchangeable Debt), warrants, options, participations or
other equivalents of or interests (however designated) in stock issued by that corporation.

1

 

          “Capitalized Lease Obligation” of any Person means any obligation of that Person to pay rent
or other amounts under a lease of property, real or personal, that is required to be capitalized
for financial reporting purposes in accordance with GAAP; and the amount of that obligation shall
be the capitalized amount thereof determined in accordance with GAAP.

          “Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor corporation shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean that successor corporation; provided, however, that
for purposes of any provision contained herein which is required by the TIA, “Company” shall also
mean each other obligor (if any) on the Securities of a series.

          “Company Order” and “Company Request” mean, respectively, a written order or request signed in
the name of the Company by two Officers of the Company, and delivered to the Trustee.

          “Corporate Trust Office” of the Trustee means the office of the Trustee located at
[____________________________________], and as may be located at such other address as the Trustee
may give notice to the Company.

          “Debt” of any Person means, without duplication, (i) all indebtedness of that Person for
borrowed money (whether or not the recourse of the lender is to the whole of the assets of that
Person or only to a portion thereof), (ii) all obligations of that Person evidenced by bonds,
debentures, notes or other similar instruments, (iii) all obligations of that Person in respect of
letters of credit or other similar instruments (or reimbursement obligations with respect
thereto), other than standby letters of credit, bid or performance bonds and other similar
obligations issued by or for the account of that Person in the ordinary course of business, to the
extent not drawn or, to the extent drawn, if that drawing is reimbursed not later than 30 Business
Days following demand for reimbursement, (iv) all obligations of that Person to pay the deferred
and unpaid purchase price of property or services, except trade payables, advances on contracts and
accrued expenses arising in the ordinary course of business, (v) all Capitalized Lease Obligations
of that Person, (vi) all Debt of others secured by a lien (as defined in the indenture supplement
relating to a series of Securities) on any asset of that Person, whether or not that Debt is
assumed by that Person (provided that if the obligations so secured have not been assumed in full
by that Person or are not otherwise that Person’s legal liability in full, then those obligations
shall be deemed to be in an amount equal to the greater of (a) the lesser of (1) the full amount of
those obligations and (2) the fair market value of those assets, as determined in good faith by the
board of directors or other managing body of that Person and (b) the amount of obligations as have
been assumed by that Person or which are otherwise that Person’s legal liability), and (vii) all
guarantees by that Person of or with respect to Debt of others (other than endorsements in the
ordinary course of business), in each case to the extent of the Debt guaranteed.

          “Default” means any event, act or condition that is, or after notice or the passage of time or
both would be, an Event of Default.

          “Depositary” means, with respect to the Securities of any series issuable or issued in whole
or in part in global form, the Person specified pursuant to Section 2.01 hereof as the

2

 

initial Depositary with respect to the Securities of that series, until a successor shall have been
appointed and become such pursuant to the applicable provision of this Indenture, and thereafter
“Depositary” shall mean or include that successor.

          “Designated Senior Debt,” unless otherwise provided with respect to the Securities of a series
as contemplated by Section 2.01, means any Senior Debt of the Company that (i) in the instrument
evidencing the same or the assumption or guarantee thereof (or related documents to which the
Company is a party) is expressly designated as “Designated Senior Debt” for purposes of this
Indenture and (ii) satisfies such other conditions as may be provided with respect to the
Securities of that series; provided that those instruments or documents may place limitations and
conditions on the right of that Senior Debt to exercise the rights of Designated Senior Debt.

          “Disqualified Capital Stock” means, when used with respect to the Securities of any series,
(i) except as set forth in (ii), with respect to any Person, Capital Stock of that Person that, by
its terms or by the terms of any security into which it is convertible, exercisable or
exchangeable, is, or on the happening of an event or the passage of time would be, required to be
redeemed or repurchased (including at the option of the holder thereof) by that Person or any
subsidiary of that Person, in whole or in part, on or prior to the last Stated Maturity of the
Securities of that series, and (ii) with respect to any subsidiary of that Person (including with
respect to any subsidiary of the Company), any Capital Stock other than any common stock with no
preference, privileges, or redemption or repayment provisions.

          “Dollar” or “$” means a dollar or other equivalent unit in such coin or currency of the United
States as at the time shall be legal tender for the payment of public and private debt.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor
statute.

          “GAAP” means generally accepted accounting principles in the United States as in effect from
time to time set forth in the opinions and pronouncements of the Accounting Principles Board and
the American Institute of Certified Public Accountants and the statements and pronouncements of the
Financial Accounting Standards Board or in such other statements by such other entity as may be
approved by a significant segment of the accounting profession of the United States, which are
applicable to the circumstances as of the date of determination.

          “Global Security” of any series means a Security of that Series that is issued in global form
in the name of the Depositary with respect thereto or its nominee.

          “Government Obligations” means, with respect to a series of Securities, direct obligations of
the government that issues the currency in which the Securities of the series are payable for the
payment of which the full faith and credit of that government is pledged, or obligations of a
Person controlled or supervised by and acting as an agency or instrumentality of that government, the payment of which is unconditionally guaranteed as a full faith and credit
obligation by that government.

3

 

          “Holder” means a Person in whose name a Security is registered.

          “Indenture” means this Indenture as amended or supplemented from time to time pursuant to the
provisions hereof, and includes the terms of a particular series of Securities established as
contemplated by Section 2.01.

          “interest” means, with respect to an Original Issue Discount Security that by its terms bears
interest only after Maturity, interest payable after Maturity.

          “Interest Payment Date,” when used with respect to any Security, shall have the meaning
assigned to that term in the Security as contemplated by Section 2.01.

          “Issue Date” means, with respect to Securities of a series, the date on which the Securities
of that series are originally issued under this Indenture.

          “Junior security” of a Person means, when used with respect to the Securities of any series,
any Qualified Capital Stock of that Person or any Debt of that Person that is subordinated in right
of payment to Senior Debt of the Company to substantially the same extent as, or to a greater
extent than, the Securities of that series and has no scheduled installment of principal due, by
redemption, sinking fund payment or otherwise, on or prior to the last Stated Maturity of the
Securities of that series.

          “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in any of
The City of New York, New York, Midland, Texas or a Place of Payment are authorized or obligated by
law, regulation or executive order to remain closed.

          “Maturity” means, with respect to any Security, the date on which the principal of that
Security or an installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity thereof, or by declaration of acceleration, call for redemption or
otherwise.

          “Officer” means the Chairman of the Board, the President, any Vice Chairman of the Board, any
Vice President, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the
Controller, the Secretary or any Assistant Secretary of a Person.

          “Officers’ Certificate” means a certificate signed by two Officers of a Person.

          “Opinion of Counsel” means a written opinion from legal counsel who is reasonably acceptable
to the Trustee. That counsel may be an employee of or counsel to the Company or the Trustee.

          “Original Issue Discount Security” means any Security that provides for an amount less than
the principal amount thereof to be due and payable on a declaration of acceleration of the Maturity
thereof pursuant to Section 6.02.

4

 

          “Person” means any individual, corporation, partnership, limited liability company, joint
venture, incorporated or unincorporated association, joint stock company, trust, unincorporated
organization or government or other agency or political subdivision thereof or other entity of any
kind.

          “Place of Payment” means, with respect to the Securities of any series, the place or places
where, subject to the provisions of Section 4.02, the principal of, premium (if any) on and
interest on the Securities of that series are payable as specified in accordance with Section 2.01.

          “principal” of a Security means the principal of the Security plus, when appropriate, the
premium, if any, on the Security.

          “Qualified Capital Stock” means any Capital Stock of the Company that is not Disqualified
Capital Stock.

          “Redemption Date” means, with respect to any Security to be redeemed, the date fixed for that
redemption by or pursuant to this Indenture.

          “Redemption Price” means, with respect to any Security to be redeemed, the price at which it
is to be redeemed pursuant to this Indenture.

          “Rule 144A Securities” means Securities of a series designated pursuant to Section 2.01 as
entitled to the benefits of Section 4.03(b).

          “SEC” means the Securities and Exchange Commission.

          “Securities” has the meaning stated in the preamble of this Indenture and more particularly
means any Securities authenticated and delivered under this Indenture.

          “Security Custodian” means, with respect to Securities of a series issued in global form, the
Trustee for Securities of that series, as custodian with respect to the Securities of that series,
or any successor entity thereto.

          “Senior Debt” of the Company, unless otherwise provided with respect to the Securities of a
series as contemplated by Section 2.01, means (i) the principal of and premium, if any, and
interest on (including interest accruing or becoming owing prior to or subsequent to the
commencement of any proceeding against or with respect to the Company under any bankruptcy law) and
other amounts due on or in connection with any Debt of the Company, whether currently outstanding
or hereafter incurred, issued or assumed, unless, by the terms of the instrument creating or
evidencing that Debt, it is provided that such Debt is not superior in right of payment to the
Securities or to other Debt which is pari passu with or subordinated to the
Securities, and (ii) any modifications, refunding, deferrals, renewals or extensions of any such
Debt or securities, notes or other evidences of Debt issued in exchange for that Debt; provided
that in no event shall “Senior Debt” of the Company include Debt of the Company for borrowed

5

 

money owed or owing to any subsidiary of the Company or any executive officer or director of the Company.

          “Stated Maturity” means, when used with respect to any Security or any installment of
principal thereof or interest thereon, the date specified in that Security as the fixed date on
which the principal of that Security or that installment of principal or interest is due and
payable.

          “TIA” means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb), as in
effect on the date hereof.

          “Trust Officer” means any officer or assistant officer of the Trustee assigned by the Trustee
to administer its corporate trust matters.

          “Trustee” means the Person named as such above until a successor replaces it in accordance
with the applicable provisions of this Indenture, and thereafter “Trustee” means each Person who is
then a Trustee hereunder, and if at any time there is more than one such Person, “Trustee” as used
with respect to the Securities of any series means the Trustee with respect to Securities of that
series.

          “United States” means the United States of America (including the States and the District of
Columbia) and its territories and possessions (including Puerto Rico, the U.S. Virgin Islands,
Guam, American Samoa, Wake Island and the Northern Mariana Islands).

          “United States Alien” means any Person who, for United States federal income tax purposes, is
a foreign corporation, a nonresident alien individual, a nonresident alien or foreign fiduciary of
an estate or trust, or a foreign partnership.

          “U.S. Government Obligations” means Government Obligations with respect to Securities payable
in Dollars.

SECTION 1.02 Other Definitions.

	 	 	 	 	 
	 	 	Defined	 
	Term	 	in Section	 
	“Agent Members”
	 	 	2.17	 
	“Bankruptcy Custodian”
	 	 	6.01	 
	“Conversion Event”
	 	 	6.01	 
	“covenant defeasance”
	 	 	8.01	 
	“Event of Default”
	 	 	6.01	 
	“Exchange Rate”
	 	 	2.11	 
	“Judgment Currency”
	 	 	6.10	 
	“legal defeasance”
	 	 	8.01	 
	“mandatory sinking fund payment”
	 	 	3.09	 
	“optional sinking fund payment”
	 	 	3.09	 
	“Paying Agent”
	 	 	2.05	 

6

 

	 	 	 	 	 
	 	 	Defined	 
	Term	 	in Section	 
	“Payment Blocking Notice”
	 	 	10.02	 
	“Payment Default”
	 	 	10.02	 
	“Registrar”
	 	 	2.05	 
	“Required Currency”
	 	 	6.10	 
	“Successor”
	 	 	5.01	 

SECTION 1.03 Incorporation by Reference of Trust Indenture Act.

          Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture. The following TIA terms used in this Indenture
have the following meanings:

          “Commission” means the SEC.

          “indenture securities” means the Securities.

          “indenture security holder” means a Holder.

          “indenture to be qualified” means this Indenture.

          “indenture trustee” or “institutional trustee” means the Trustee.

          “obligor” on the indenture securities means the Company or any other obligor on the
Securities.

          All terms used in this Indenture that are defined by the TIA, defined by a TIA reference to
another statute or defined by an SEC rule under the TIA have the meanings so assigned to them.

SECTION
1.04 Rules of Construction.

          Unless the context otherwise requires:

     (1) a term has the meaning assigned to it;

     (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     (3) “or” is not exclusive;

     (4) words in the singular include the plural, and in the plural include the singular;

     (5) provisions apply to successive events and transactions; and

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     (6) all references in this instrument to Articles and Sections are references to the
corresponding Articles and Sections in and of this instrument.

ARTICLE II

THE SECURITIES

SECTION 2.01 Amount Unlimited; Issuable in Series.

          The aggregate principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited.

          The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution, and set forth, or determined in a manner provided, in an Officers’
Certificate or in a Company Order, or established in one or more indentures supplemental hereto,
prior to the issuance of Securities of any series:

     (1) the title of the Securities of the series (which shall distinguish the Securities
of the series from the Securities of all other series);

     (2) if there is to be a limit, the limit on the aggregate principal amount of the
Securities of the series that may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered on registration of transfer of, or in
exchange for, or in lieu of, other Securities of the series pursuant to Section 2.08, 2.09,
2.12, 2.17, 3.07 or 9.05 and except for any Securities that, pursuant to Section 2.04 or
2.17, are deemed never to have been authenticated and delivered hereunder); provided,
however, that unless otherwise provided in the terms of the series, the authorized aggregate
principal amount of that series may be increased before or after the issuance of any
Securities of the series by a Board Resolution (or action pursuant to a Board Resolution) to
that effect;

     (3) whether any Securities of the series are to be issuable initially in temporary
global form and whether any Securities of the series are to be issuable in permanent global
form, as Global Securities or otherwise, and, if so, whether beneficial owners of interests
in any such Global Security may exchange those interests for Securities of that series and
of like tenor of any authorized form and denomination and the circumstances under which
those exchanges may occur, if other than in the manner provided in Section 2.17, and the
initial Depositary and Security Custodian, if any, for any Global Security or Securities of
that series;

     (4) (i) if other than provided herein, the Person to whom any interest on Securities
of the series shall be payable, and (ii) the manner in which any interest payable on a
temporary Global Security on any Interest Payment Date will be paid if other than in the
manner provided in Section 2.14;

     (5) the date or dates on which the principal of (and premium, if any, on) the
Securities of the series is payable or the method of determination thereof;

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     (6) the rate or rates, or the method of determination thereof, at which the Securities
of the series shall bear interest, if any, whether and under what circumstances Additional
Amounts with respect to those Securities shall be payable, the date or dates from which that
interest shall accrue, the Interest Payment Dates on which that interest shall be payable
and the record date for the interest payable on any Securities on any Interest Payment Date;

     (7) the place or places where, subject to the provisions of Section 4.02, the principal
of, premium (if any) and interest on and any Additional Amounts with respect to the
Securities of the series shall be payable;

     (8) the period or periods within which, the price or prices (whether denominated in
cash, securities or otherwise) at which and the terms and conditions on which Securities of
the series may be redeemed, in whole or in part, at the option of the Company, if the
Company is to have that option, and the manner in which the Company may exercise any such
option, if different from those set forth herein;

     (9) the obligation, if any, of the Company to redeem, purchase or repay Securities of
the series pursuant to any sinking fund or analogous provisions or at the option of a Holder
thereof and the period or periods within which, the price or prices (whether denominated in
cash, securities or otherwise) at which and the terms and conditions on which Securities of
the series shall be redeemed, purchased or repaid in whole or in part pursuant to that
obligation;

     (10) if other than denominations of $1,000 and any integral multiple thereof, the
denomination in which any Securities of that series shall be issuable;

     (11) if other than Dollars, the currency or currencies (including composite currencies)
or the form, including equity securities, other debt securities (including Securities),
warrants or any other securities or property of the Company or any other Person, in which
payment of the principal of, premium (if any) and interest on and any Additional Amounts
with respect to the Securities of the series shall be payable;

     (12) if the principal of, premium (if any) or interest on or any Additional Amounts
with respect to the Securities of the series are to be payable, at the election of the
Company or a Holder thereof, in a currency or currencies (including composite currencies)
other than that in which the Securities are stated to be payable, the currency or currencies
(including composite currencies) in which payment of the principal, premium (if any), interest and any Additional Amounts with respect to Securities of that
series as to which that election is made shall be payable, and the periods within which and
the terms and conditions on which that election is to be made;

     (13) if the amount of payments of principal, premium (if any), interest and any
Additional Amounts with respect to the Securities of the series may be determined with

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reference to any commodities, currencies or indices, values, rates or prices or any other
index or formula, the manner in which those amounts shall be determined;

     (14) if other than the entire principal amount thereof, the portion of the principal
amount of Securities of the series that shall be payable on declaration of acceleration of
the Maturity thereof pursuant to Section 6.02;

     (15) any additional means of satisfaction and discharge of this Indenture and any
additional conditions or limitations to discharge with respect to Securities of the series
pursuant to Article VIII or any modifications of or deletions from those conditions or
limitations;

     (16) any deletions or modifications of or additions to the Events of Default set forth
in Section 6.01 or covenants of the Company set forth in Article IV pertaining to the
Securities of the series;

     (17) any restrictions or other provisions with respect to the transfer or exchange of
Securities of the series, which may amend, supplement, modify or supersede those contained
in this Article II;

     (18) if the Securities of the series are to be convertible into or exchangeable for
Capital Stock, other debt securities (including Securities), warrants, other equity
securities or any other securities or property of the Company or any other Person, at the
option of the Company or the Holder or on the occurrence of any condition or event, the
terms and conditions for that conversion or exchange;

     (19) if the Securities of the series are to be entitled to the benefit of Section
4.03(b) (and accordingly constitute Rule 144A Securities);

     (20) any modifications to, or qualifications contemplated by, the definition of
“Designated Senior Debt,” any modifications to the definition of “Senior Debt” of the
Company or any modifications to Article X or the other provisions regarding subordination
with respect to the Securities of that series; and

     (21) any other terms of the series (which terms shall not be prohibited by the
provisions of this Indenture).

          All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to above
and (subject to Section 2.03) set forth, or determined in the manner provided, in the Officers’ Certificate or Company Order referred to above or in any such indenture
supplemental hereto.

          If any of the terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of that action together with that Board Resolution
shall be set forth in an Officers’ Certificate or certified by the Secretary or an

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Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers’
Certificate or Company Order setting forth the terms of the series.

          The Securities shall be subordinated in right of payment to Senior Debt of the Company as
provided in Article X.

SECTION 2.02 Denominations.

          The Securities of each series shall be issuable in such denominations as shall be specified as
contemplated by Section 2.01. In the absence of any such provisions with respect to the Securities
of any series, the Securities of that series denominated in Dollars shall be issuable in
denominations of $1,000 and any integral multiples thereof.

SECTION 2.03 Forms Generally.

          The Securities of each series shall be in fully registered form and in substantially the form
or forms (including temporary or permanent global form) established by or pursuant to a Board
Resolution or in one or more indentures supplemental hereto. The Securities may have notations,
legends or endorsements required by law, securities exchange rule, the Company’s certificate of
incorporation, bylaws or other similar governing documents, agreements to which the Company is
subject, if any, or usage (provided that any such notation, legend or endorsement is in a form
acceptable to the Company). A copy of the Board Resolution establishing the form or forms of
Securities of any series shall be delivered to the Trustee at or prior to the delivery of the
Company Order contemplated by Section 2.04 for the authentication and delivery of those Securities.

          The definitive Securities of each series shall be printed, lithographed or engraved on steel
engraved borders or may be produced in any other manner, all as determined by the Officers
executing those Securities, as evidenced by their execution thereof.

          The Trustee’s certificate of authentication shall be in substantially the following form:

          “This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	 	[________________________], as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 

	 	 	Authorized Officer”.

SECTION 2.04 Execution, Authentication, Delivery and Dating.

          Two Officers of the Company shall sign the Securities of each series on behalf of the Company
by manual or facsimile signature. If an Officer of the Company whose signature is

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on a Security no longer holds that office at the time the Security is authenticated, the Security shall be valid
nevertheless.

          A Security shall not be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose until authenticated by the manual signature of an authorized signatory of the
Trustee, which signature shall be conclusive evidence that the Security has been authenticated
under this Indenture. Notwithstanding the foregoing, if any Security has been authenticated and
delivered hereunder but never issued and sold by the Company, and the Company delivers that
Security to the Trustee for cancellation as provided in Section 2.13 together with a written
statement (which need not comply with Section 11.05 and need not be accompanied by an Opinion of
Counsel) stating that such Security has never been issued and sold by the Company, for all purposes
of this Indenture that Security shall be deemed never to have been authenticated and delivered
hereunder and shall never be entitled to the benefits of this Indenture.

          At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, and the Trustee shall authenticate and deliver those Securities for original issue
on a Company Order for the authentication and delivery of those Securities or pursuant to such
procedures reasonably acceptable to the Trustee as may be specified from time to time by Company
Order. That order shall specify the amount of the Securities to be authenticated, the date on
which the original issue of Securities is to be authenticated, the name or names of the initial
Holder or Holders and any other terms of the Securities of that series not otherwise determined.
If provided for in those procedures, that Company Order may authorize (1) authentication and
delivery of Securities of that series for original issue from time to time, with certain terms
(including, without limitation, the Maturity date or dates, original issue date or dates and
interest rate or rates) that differ from Security to Security and (2) may authorize authentication
and delivery pursuant to oral or electronic instructions from the Company or its duly authorized
agent, which instructions shall be promptly confirmed in writing.

          If the form or terms of the Securities of the series have been established in or pursuant to
one or more Board Resolutions as permitted by Section 2.01, in authenticating those Securities, and
accepting the additional responsibilities under this Indenture in relation to those Securities, the
Trustee shall be entitled to receive (in addition to the Company Order referred to above and the
other documents required by Section 11.04), and (subject to Section 7.01) shall be fully protected
in relying on,

          (a) an Officers’ Certificate setting forth the Board Resolution and, if applicable, an
appropriate record of any action taken pursuant thereto, as contemplated by the last paragraph of
Section 2.01; and

          (b) an Opinion of Counsel to the effect that:

     (i) if the form of those Securities has been established by or pursuant to
Board Resolution, as is permitted by Section 2.01, that such form has been
established in conformity with the provisions of this Indenture;

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     (ii) if the terms of those Securities have been established by or pursuant to
Board Resolution, as is permitted by Section 2.01, that such terms have been
established in conformity with the provisions of this Indenture; and

     (iii) those Securities, when authenticated and delivered by the Trustee and
issued by the Company in the manner and subject to any conditions specified in that
Opinion of Counsel, will constitute valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms, except as the
enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or other similar laws in effect
from time to time affecting the rights of creditors generally, and the application
of general principles of equity (regardless of whether that enforceability is
considered in a proceeding in equity or at law).

          If all the Securities of any series are not to be issued at one time, it shall not be
necessary to deliver an Officers’ Certificate and Opinion of Counsel at the time of issuance of
each such Security, but that Officers’ Certificate and Opinion of Counsel shall be delivered at or
before the time of issuance of the first Security of the series to be issued.

          The Trustee shall not be required to authenticate those Securities if the issuance of those
Securities pursuant to this Indenture would affect the Trustee’s own rights, duties or immunities
under the Securities and this Indenture or otherwise in a manner not reasonably acceptable to the
Trustee.

          The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Securities. Unless limited by the terms of that appointment, an authenticating agent may
authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by that agent. An authenticating agent has
the same rights as an Agent to deal with the Company or an Affiliate of the Company.

          Each Security shall be dated the date of its authentication.

SECTION 2.05 Registrar and Paying Agent.

          The Company shall maintain an office or agency for each series of Securities where Securities
of that series may be presented for registration of transfer or exchange (“Registrar”) and an
office or agency where Securities of that series may be presented for payment (“Paying Agent”).
The Registrar shall keep a register of the Securities of that series and of their transfer and
exchange. The Company may appoint one or more co-registrars and one or more additional paying
agents. The term “Registrar” includes any co-registrar, and the term “Paying Agent” includes any
additional paying agent.

          The Company shall enter into an appropriate agency agreement with any Registrar or Paying
Agent not a party to this Indenture. The agreement shall implement the provisions of this
Indenture that relate to that Agent. The Company shall notify the Trustee of

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the name and address of any Agent not a party to this Indenture. The Company may change any Paying Agent or Registrar
without notice to any Holder. If the Company fails to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such. The Company or any of its Subsidiaries
may act as Paying Agent or Registrar.

          The Company initially appoints the Trustee as Registrar and Paying Agent.

SECTION 2.06 Paying Agent to Hold Money in Trust.

          With respect to each series of Securities, the Company shall require each Paying Agent other
than the Trustee to agree in writing that the Paying Agent will hold in trust for the benefit of
Holders of Securities of that series or the Trustee all money held by the Paying Agent for the
payment of principal of, premium, if any, or interest on or any Additional Amounts with respect to
Securities of that series and will notify the Trustee of any default by the Company in making any
such payment. While any such default continues, the Trustee may require a Paying Agent to pay all
money held by it to the Trustee and to account for any funds disbursed. The Company at any time
may require a Paying Agent to pay all money held by it to the Trustee and to account for any funds
disbursed. Upon payment over to the Trustee and upon accounting for any funds disbursed, the
Paying Agent (if other than the Company) shall have no further liability for the money. If the
Company acts as Paying Agent with respect to a series of Securities, it shall segregate and hold in
a separate trust fund for the benefit of the Holders of Securities of that series all money held by
it as Paying Agent. Each Paying Agent shall otherwise comply with TIA § 317(b).

SECTION 2.07 Holder Lists.

          The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Holders of each series of Securities and shall
otherwise comply with TIA § 312(a). If the Trustee is not the Registrar with respect to a series
of Securities, the Company shall furnish to the Trustee at least five Business Days before each
Interest Payment Date with respect to that series of Securities, and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Holders of the Securities of that series, and the
Company shall otherwise comply with TIA § 312(a).

SECTION 2.08 Transfer and Exchange.

          Except as set forth in Section 2.17 or as may be provided pursuant to Section 2.01, when
Securities of any series are presented to the Registrar with the request to register the transfer
of those Securities or to exchange those Securities for an equal principal amount of Securities of
the same series of like tenor and of other authorized denominations, the Registrar shall register
the transfer or make the exchange as requested if its requirements and the requirements of this
Indenture for those transactions are met; provided, however, that the Securities presented or
surrendered for registration of transfer or exchange shall be duly endorsed or accompanied by a
written instruction of transfer in form reasonably satisfactory to

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the Registrar duly executed by
the Holder thereof or by his attorney, duly authorized in writing, on which instruction the
Registrar can rely.

          To permit registrations of transfers and exchanges, the Company shall execute and the Trustee
shall authenticate Securities at the Registrar’s written request and submission of the Securities
(other than Global Securities). No service charge shall be made to a Holder for any registration
of transfer or exchange (except as otherwise expressly permitted herein), but the Company may
require payment of a sum sufficient to cover any transfer tax or similar governmental charge
payable in connection therewith (other than such transfer tax or similar governmental charge
payable on exchanges pursuant to Section 2.12, 3.07 or 9.05). The Trustee shall authenticate
Securities in accordance with the provisions of Section 2.04. Notwithstanding any other provisions
of this Indenture to the contrary, the Company shall not be required to register the transfer or
exchange of (a) any Security selected for redemption in whole or in part pursuant to Article III,
except the unredeemed portion of any Security being redeemed in part or (b) any Security during the
period beginning 15 Business Days before the mailing of notice of any offer to repurchase
Securities of the series required pursuant to the terms thereof or of redemption of Securities of a
series to be redeemed and ending at the close of business on the date of mailing.

SECTION 2.09 Replacement Securities.

          If any mutilated Security is surrendered to the Trustee, or if the Holder of a Security claims
that the Security has been destroyed, lost or stolen and the Company and the Trustee receive
evidence to their satisfaction of the destruction, loss or theft of that Security, the Company
shall issue and the Trustee shall authenticate a replacement Security of the same series if the
Trustee’s requirements are met. If any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may, instead of issuing
a new Security, pay that Security. If required by the Trustee or the Company, the Holder must
furnish an indemnity bond that is sufficient in the judgment of the Trustee and the Company to
protect the Company, the Trustee, any Agent or any authenticating agent from any loss that any of
them may suffer if a Security is replaced. The Company and the Trustee may charge the Holder for
their expenses in replacing a Security.

          Every replacement Security is an additional obligation of the Company.

SECTION 2.10 Outstanding Securities.

          The Securities outstanding at any time are all the Securities authenticated by the Trustee
except for those canceled by it, those delivered to it for cancellation, those reductions in the
interest in a Global Security effected by the Trustee hereunder and those described in this Section
2.10 as not outstanding.

          If a Security is replaced pursuant to Section 2.09, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide
purchaser.

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          If the principal amount of any Security is considered paid under Section 4.01, it ceases to be
outstanding and interest on it ceases to accrue.

          A Security does not cease to be outstanding because the Company or an Affiliate of the Company
holds the Security.

SECTION 2.11 Original Issue Discount, Foreign-Currency Denominated and Treasury Securities.

          In determining whether the Holders of the required principal amount of Securities have
concurred in any direction, amendment, supplement, waiver or consent, (a) the principal amount of
an Original Issue Discount Security shall be the principal amount thereof that would be due and
payable as of the date of that determination upon acceleration of the Maturity thereof pursuant to
Section 6.02, (b) the principal amount of a Security denominated in a foreign currency shall be the
Dollar equivalent, as determined by the Company by reference to the noon buying rate in The City of
New York for cable transfers for that currency, as that rate is certified for customs purposes by
the Federal Reserve Bank of New York (the “Exchange Rate”) on the date of original issuance of that
Security, of the principal amount (or, in the case of an Original Issue Discount Security, the
Dollar equivalent, as determined by the Company by reference to the Exchange Rate on the date of
original issuance of that Security, of the amount determined as provided in (a) above), of that
Security and (c) Securities owned by the Company or any other obligor on the Securities or any
Affiliate of the Company or of that other obligor shall be disregarded, except that, for the
purpose of determining whether the Trustee shall be protected in relying on any such direction,
amendment, supplement, waiver or consent, only Securities that the Trustee actually knows are so
owned shall be so disregarded.

SECTION 2.12 Temporary Securities.

          Until definitive Securities of any series are ready for delivery, the Company may prepare and
the Trustee shall authenticate temporary Securities. Temporary Securities shall be substantially in the form of definitive Securities, but may have variations that the Company
considers appropriate for temporary Securities. Without unreasonable delay, the Company shall
prepare and the Trustee shall authenticate definitive Securities in exchange for temporary
Securities. Until so exchanged, the temporary Securities shall in all respects be entitled to the
same benefits under this Indenture as definitive Securities.

SECTION 2.13 Cancellation.

          The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar
and the Paying Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange, payment or redemption or for credit against any sinking fund
payment. The Trustee shall cancel all Securities surrendered for registration of transfer,
exchange, payment, redemption, replacement or cancellation or for credit against any sinking fund.
Unless the Company shall direct in writing that canceled Securities be returned to it, after
written notice to the Company all canceled Securities held by the Trustee shall be disposed of in
accordance with the usual disposal procedures of the Trustee, and the Trustee

16

 

shall maintain a record of their disposal. The Company may not issue new Securities to replace Securities that have
been paid or that have been delivered to the Trustee for cancellation.

SECTION 2.14 Payments; Defaulted Interest.

          Unless otherwise provided as contemplated by Section 2.01 with respect to the Securities of
any series, interest (except defaulted interest) on any Security that is payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall be paid to the Persons who are
registered Holders of that Security at the close of business on the record date next preceding that
Interest Payment Date, even if those Securities are canceled after that record date and on or
before that Interest Payment Date. The Holder must surrender a Security to a Paying Agent to
collect principal payments. Unless otherwise provided with respect to the Securities of any
series, the Company will pay the principal of, premium (if any) and interest on and any Additional
Amounts with respect to the Securities in Dollars. Those amounts shall be payable at the offices
of the Trustee, provided that at the option of the Company, the Company may pay those amounts (1)
by wire transfer with respect to Global Securities or (2) by check payable in that money mailed to
a Holder’s registered address with respect to any Securities.

          If the Company defaults in a payment of interest on the Securities of any series, it shall pay
the defaulted interest in any lawful manner plus, to the extent lawful, interest on the defaulted
interest, in each case at the rate provided in the Securities of that series and in Section 4.01.
The Company may pay the defaulted interest to the Persons who are Holders on a subsequent special
record date. At least 15 days before any special record date selected by the Company, the Company
(or the Trustee, in the name of and at the expense of the Company upon 20 days’ prior written
notice from the Company setting forth that record date and the interest amount to be paid) shall
mail to Holders of any such series of Securities a notice that states the special record date, the
related payment date and the amount of that interest to be paid.

SECTION 2.15 Persons Deemed Owners.

          The Company, the Trustee, any Agent and any authenticating agent may treat the Person in whose
name any Security is registered as the owner of that Security for the purpose of receiving payments
of principal of, premium (if any) or interest on, or any Additional Amounts with respect to that
Security and for all other purposes. None of the Company, the Trustee, any Agent or any
authenticating agent shall be affected by any notice to the contrary.

SECTION 2.16 Computation of Interest.

          Except as otherwise specified as contemplated by Section 2.01 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a year comprising
twelve 30-day months.

SECTION 2.17 Global Securities; Book-Entry Provisions.

          If Securities of a series are issuable in global form as a Global Security, as contemplated by
Section 2.01, then, notwithstanding clause (10) of Section 2.01 and the

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provisions of Section 2.02, any such Global Security shall represent those of the outstanding Securities of that series as
shall be specified therein and may provide that it shall represent the aggregate amount of
outstanding Securities from time to time endorsed thereon and that the aggregate amount of
outstanding Securities represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges or redemptions. Any endorsement of a Global Security to reflect
the amount, or any increase or decrease in the amount, of outstanding Securities represented
thereby shall be made by the Trustee (i) in such manner and upon instructions given by such Person
or Persons as shall be specified in that Security or in a Company Order to be delivered to the
Trustee pursuant to Section 2.04 or (ii) otherwise in accordance with written instructions or such
other written form of instructions as is customary for the Depositary for that Security, from that
Depositary or its nominee on behalf of any Person having a beneficial interest in that Global
Security. Subject to the provisions of Section 2.04 and, if applicable, Section 2.12, the Trustee
shall deliver and redeliver any Security in permanent global form in the manner and upon
instructions given by the Person or Persons specified in that Security or in the applicable Company
Order. With respect to the Securities of any series that are represented by a Global Security, the
Company authorizes the execution and delivery by the Trustee of a letter of representations or
other similar agreement or instrument in the form customarily provided for by the Depositary
appointed with respect to that Global Security. Any Global Security may be deposited with the
Depositary or its nominee, or may remain in the custody of the Trustee or the Security Custodian
therefor pursuant to a FAST Balance Certificate Agreement or similar agreement between the Trustee
and the Depositary. If a Company Order has been, or simultaneously is, delivered, any instructions
by the Company with respect to endorsement or delivery or redelivery of a Security in global form
shall be in writing but need not comply with Section 11.05 and need not be accompanied by an
Opinion of Counsel.

          Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the Depositary, or the
Trustee or the Security Custodian as its custodian, or under that Global Security, and the
Depositary may be treated by the Company, the Trustee or the Security Custodian and any agent of
the Company, the Trustee or the Security Custodian as the absolute owner of that Global Security
for all purposes whatsoever. Notwithstanding the foregoing, (i) the registered holder of a Global
Security of any series may grant proxies and otherwise authorize any Person, including Agent
Members and Persons that may hold interests through Agent Members, to take any action that a Holder
of Securities of that series is entitled to take under this Indenture or the Securities of that
series and (ii) nothing herein shall prevent the Company, the Trustee or the Security Custodian or
any agent of the Company, the Trustee, or the Security Custodian from giving effect to any written
certification, proxy or other authorization furnished by the Depositary or shall impair, as between
the Depositary and its Agent Members, the operation of customary practices governing the exercise
of the rights of a beneficial owner of any Security.

          Notwithstanding Section 2.08, and except as otherwise provided pursuant to Section 2.01,
transfers of a Global Security shall be limited to transfers of that Global Security in whole, but
not in part, to the Depositary, its successors or their respective nominees. Interests of
beneficial owners in a Global Security may be transferred in accordance with the rules and
procedures of the Depositary. Securities of any series shall be transferred to all beneficial

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owners of a Global Security of that series in exchange for their beneficial interests in that
Global Security if, and only if, either (1) the Depositary notifies the Company that it is
unwilling or unable to continue as Depositary for that Global Security and a successor Depositary
is not appointed by the Company within 90 days of that notice, (2) an Event of Default has occurred
with respect to that series and is continuing and the Registrar has received a request from the
Depositary to issue Securities of that series in lieu of all or a portion of that Global Security
(in which case the Company shall deliver Securities of that series within 30 days of that request)
or (3) the Company determines not to have the Securities of that series represented by a Global
Security.

          In connection with any transfer of a portion of the beneficial interests in a Global Security
to beneficial owners pursuant to this Section 2.17, the Registrar shall reflect on its books and
records the date and a decrease in the principal amount of the Global Security in an amount equal
to the principal amount of the beneficial interest in the Global Security to be transferred, and
the Company shall execute, and the Trustee on receipt of a Company Order for the authentication and
delivery of Securities shall authenticate and deliver, one or more Securities of the same series of
like tenor and amount.

          In connection with the transfer of all the beneficial interests in a Global Security of any
series to beneficial owners pursuant to this Section 2.17, the Global Security shall be deemed to
be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee
shall authenticate and deliver, to each beneficial owner identified by the Depositary in exchange
for its beneficial interest in the Global Security, an equal aggregate principal amount of
Securities of that series of authorized denominations.

          Neither the Company nor the Trustee will have any responsibility or liability for any aspect
of the records relating to, or payments made on account of, Securities by the Depositary, or for
maintaining, supervising or reviewing any records of the Depositary relating to those Securities.
Neither the Company nor the Trustee shall be liable for any delay by the related Global Security
Holder or the Depositary in identifying the beneficial owners, and each such Person may
conclusively rely on, and shall be protected in relying on, instructions from that Global Security
Holder or the Depositary for all purposes (including with respect to the registration and delivery,
and the respective principal amounts, of the Securities to be issued).

          The provisions of the last sentence of the third paragraph of Section 2.04 shall apply to any
Global Security if that Global Security was never issued and sold by the Company and the Company
delivers to the Trustee the Global Security together with written instructions (which need not
comply with Section 11.05 and need not be accompanied by an Opinion of Counsel) with regard to the
cancellation or reduction in the principal amount of Securities represented thereby, together with
the written statement contemplated by the last sentence of the third paragraph of Section 2.04.

          Notwithstanding the provisions of Sections 2.03 and 2.14, unless otherwise specified as
contemplated by Section 2.01 with respect to Securities of any series, payment of principal of and
premium (if any) and interest on and any Additional Amounts with respect to any Global Security
shall be made to the Person or Persons specified therein.

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          The Company in issuing Securities of any series may use CUSIP numbers (if then generally in
use), and, if so, the Trustee shall use CUSIP numbers in notices of redemption as a convenience to
Holders of Securities of such series; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Securities of
such series or as contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities of such series, and any such redemption
shall not be affected by any defect in or omission of such numbers. The Company will promptly
notify the Trustee in writing of any change in the CUSIP numbers.

          Notwithstanding anything herein to the contrary, delivery or surrender of a Security shall not
be required in the case of Global Securities in order to obtain the rights and benefits provided
hereunder upon the delivery or surrender of a Security.

ARTICLE III

REDEMPTION

SECTION 3.01 Applicability of Article.

          Securities of any series that are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 2.01
for Securities of any series) in accordance with this Article III.

SECTION 3.02 Notice to the Trustee.

          If the Company elects to redeem Securities of any series pursuant to this Indenture, it shall
notify the Trustee of the Redemption Date and principal amount of Securities of that series to be
redeemed. The Company shall so notify the Trustee at least 45 days before the Redemption Date
(unless a shorter notice shall be satisfactory to the Trustee) by delivering to the Trustee an
Officers’ Certificate stating that the redemption will comply with the provisions of this Indenture
and of the Securities of that series. Any such notice may be canceled at any time prior to the
mailing of that notice of redemption to any Holder of the Securities of that series and shall
thereupon be void and of no effect.

SECTION 3.03 Selection of Securities To Be Redeemed.

          If less than all the Securities of any series are to be redeemed (unless all of the Securities
of that series of a specified tenor are to be redeemed), the particular Securities to be redeemed
shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the
outstanding Securities of that series (and tenor) not previously called for redemption, either pro
rata, by lot or by such other method as the Trustee shall deem fair and appropriate. That
redemption may provide for the selection for redemption of portions (equal to the minimum
authorized denomination for Securities of that series or any integral multiple thereof) of the
principal amount of Securities of that series of a denomination larger than the minimum

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authorized denomination for Securities of that series or of the principal amount of Global Securities of that
series.

          The Trustee shall promptly notify the Company and the Registrar in writing of the Securities
selected for redemption and, in the case of any Securities selected for partial redemption, the
principal amount thereof to be redeemed.

          For purposes of this Indenture, unless the context otherwise requires, all provisions relating
to redemption of Securities of any series shall relate, in the case of any of the Securities
redeemed or to be redeemed only in part, to the portion of the principal amount thereof which has
been or is to be redeemed.

SECTION 3.04 Notice of Redemption.

          Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than
30 (or not less than 15 days in the case of convertible Securities) nor more than 60 days prior to
the Redemption Date, to each Holder of Securities of a series to be redeemed, at the address of
that Holder appearing in the register of Securities for that series maintained by the Registrar.

          All notices of redemption shall identify the Securities to be redeemed and shall state:

     (1) the Redemption Date;

     (2) the Redemption Price (or the method of calculating or determining the Redemption
Price);

     (3) that, unless the Company defaults in making the redemption payment, interest on
Securities called for redemption ceases to accrue on and after the Redemption Date, and the
only remaining right of the Holders of those Securities is to receive payment of the
Redemption Price on surrender to the Paying Agent of the Securities redeemed;

     (4) if any Security is to be redeemed in part, the portion of the principal amount
thereof to be redeemed and that on and after the Redemption Date, on surrender for
cancellation of that Security to the Paying Agent, a new Security or Securities in the
aggregate principal amount equal to the unredeemed portion thereof will be issued without
charge to the Holder;

     (5) that Securities called for redemption must be surrendered to the Paying Agent to
collect the Redemption Price and the name and address of the Paying Agent;

     (6) that the redemption is for a sinking or analogous fund, if that is the case;

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     (7) if such Securities are convertible into or exchangeable for capital stock, other
debt securities (including Securities), warrants, other equity securities or any securities
or property of the Company or any other Person, the name and address of the conversion or
exchange agent, the date on which the right to convert or exchange is terminated and the
conversion or exchange rate; and

     (8) the CUSIP number, if any, relating to those Securities.

          Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s written request, by the Trustee in the name and at the
expense of the Company.

SECTION 3.05 Effect of Notice of Redemption.

          Once notice of redemption is mailed, Securities called for redemption become due and payable
on the Redemption Date and at the Redemption Price. Upon surrender to the Paying Agent, those
Securities called for redemption shall be paid at the Redemption Price, but interest installments
whose maturity is on or prior to that Redemption Date will be payable on the relevant Interest
Payment Dates to the Holders of record at the close of business on the relevant record dates specified pursuant to Section 2.01.

SECTION 3.06 Deposit of Redemption Price.

          On or prior to any Redemption Date, the Company shall deposit with the Trustee or the Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 2.06) an amount of money in same day funds sufficient to pay the Redemption
Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest on
and any Additional Amounts with respect to, the Securities or portions thereof which are to be
redeemed on that date, other than Securities or portions thereof called for redemption on that date
which have been delivered by the Company to the Trustee for cancellation.

          If the Company complies with the preceding paragraph, then, unless the Company defaults in the
payment of that Redemption Price, interest on the Securities to be redeemed will cease to accrue on
and after the applicable Redemption Date, whether or not those Securities are presented for
payment, and the Holders of those Securities shall have no further rights with respect to those
Securities except for the right to receive the Redemption Price on surrender of those Securities.
If any Security called for redemption shall not be so paid on surrender thereof for redemption, the
principal of and premium, if any, any Additional Amounts, and, to the extent lawful, accrued
interest thereon shall, until paid, bear interest from the Redemption Date at the rate specified
pursuant to Section 2.01 or provided in the Securities or, in the case of Original Issue Discount
Securities, their initial yield to maturity.

SECTION 3.07 Securities Redeemed or Purchased in Part.

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          Upon surrender to the Paying Agent of a Security to be redeemed in part, the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of that Security without
service charge a new Security or Securities, of the same series and of any authorized denomination
as requested by that Holder in aggregate principal amount equal to, and in exchange for, the
unredeemed portion of the principal of the Security so surrendered that is not redeemed.

SECTION 3.08 Purchase of Securities.

          Unless otherwise specified as contemplated by Section 2.01, the Company and any Affiliate of
the Company may at any time purchase or otherwise acquire Securities in the open market or by
private agreement. Any such acquisition shall not operate as or be deemed for any purpose to be a
redemption of the indebtedness represented by those Securities. Any Securities purchased or
acquired by the Company may be delivered to the Trustee for cancellation and, upon that
cancellation, the indebtedness represented thereby shall be deemed to be satisfied. Section 2.13
shall apply to all Securities so delivered.

SECTION 3.09 Mandatory and Optional Sinking Funds.

          The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of
the minimum amount provided for by the terms of Securities of any series is herein referred to as
an “optional sinking fund payment.” Unless otherwise provided by the terms of Securities of any
series, the cash amount of any sinking fund payment may be subject to reduction as provided in
Section 3.10. Each sinking fund payment shall be applied to the redemption of Securities of any
series as provided for by the terms of Securities of that series and by this Article III.

SECTION 3.10 Satisfaction of Sinking Fund Payments with Securities.

          The Company may deliver outstanding Securities of a series (other than any previously called
for redemption) and may apply as a credit Securities of a series that have been redeemed either at
the election of the Company pursuant to the terms of those Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of those Securities, in each case in
satisfaction of all or any part of any sinking fund payment with respect to the Securities of that
series required to be made pursuant to the terms of that series of Securities; provided that those
Securities have not been previously so credited. Those Securities shall be received and credited
for that purpose by the Trustee at the Redemption Price specified in those Securities for
redemption through operation of the sinking fund, and the amount of that sinking fund payment shall
be reduced accordingly.

SECTION 3.11 Redemption of Securities for Sinking Fund.

          Not less than 45 days prior (unless a shorter period shall be satisfactory to the Trustee) to
each sinking fund payment date for any series of Securities, the Company will deliver to the
Trustee an Officers’ Certificate of the Company specifying the amount of the next ensuing

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sinking fund payment for that series pursuant to the terms of that series, the portion thereof, if any,
that is to be satisfied by payment of cash and the portion thereof, if any, that is to be satisfied
by delivery of or by crediting Securities of that series pursuant to Section 3.10 and will also
deliver to the Trustee any Securities to be so delivered. Failure of the Company to timely deliver
that Officers’ Certificate and Securities specified in this paragraph, if any, shall not constitute
a default but shall constitute the election of the Company (i) that the mandatory sinking fund
payment for that series due on the next succeeding sinking fund payment date shall be paid entirely
in cash without the option to deliver or credit Securities of that series in respect thereof and
(ii) that the Company will make no optional sinking fund payment with respect to that series as
provided in this Section.

          If the sinking fund payment or payments (mandatory or optional or both) to be made in cash on
the next succeeding sinking fund payment date plus any unused balance of any preceding sinking fund
payments made in cash shall exceed $100,000 (or the Dollar equivalent thereof based on the applicable Exchange Rate on the date of original issue of the applicable
Securities) or a lesser sum if the Company shall so request with respect to the Securities of any
particular series, that cash shall be applied on the next succeeding sinking fund payment date to
the redemption of Securities of that series at the sinking fund redemption price together with
accrued interest to the date fixed for redemption. If that amount shall be $100,000 (or the Dollar
equivalent thereof as aforesaid) or less and the Company makes no such request, then it shall be
carried over until a sum in excess of $100,000 (or the Dollar equivalent thereof as aforesaid) is
available. Not less than 30 days before each such sinking fund payment date, the Trustee shall
select the Securities to be redeemed on that sinking fund payment date in the manner specified in
Section 3.03 and cause notice of the redemption thereof to be given in the name of and at the
expense of the Company in the manner provided in Section 3.04. That notice having been duly given,
the redemption of those Securities shall be made on the terms and in the manner stated in Sections
3.05, 3.06 and 3.07.

ARTICLE IV

COVENANTS

SECTION 4.01 Payment of Securities.

          The Company shall pay the principal of, premium (if any) and interest on and any Additional
Amounts with respect to the Securities of each series on the dates and in the manner provided in
the Securities of that series and in this Indenture. Principal, premium, interest and any
Additional Amounts shall be considered paid on the date due if the Paying Agent, other than the
Company, holds on that date money deposited by the Company designated for and sufficient to pay all
principal, premium (if any), interest and any Additional Amounts then due.

          The Company shall pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal of and premium (if any) on Securities of any series, at a rate
equal to the then applicable interest rate on the Securities of that series to the extent lawful;
and it shall pay interest (including post-petition interest in any proceeding under any Bankruptcy
Law) on overdue installments of interest on and any overdue payments of

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Additional Amounts with respect to Securities of that series (without regard to any applicable grace period) at the same
rate to the extent lawful.

SECTION 4.02 Maintenance of Office or Agency.

          The Company will maintain in each Place of Payment for any series of Securities an office or
agency (which may be an office of the Trustee, the Registrar or the Paying Agent) where Securities
of that series may be presented for registration of transfer or exchange, where Securities of that
series may be presented for payment and where notices and demands to or on the Company in respect
of the Securities of that series and this Indenture may be served. Unless otherwise designated by
the Company by written notice to the Trustee, that office or agency shall be the office of the Trustee in the City of New York, which on the date hereof is located at
[_________________], New York, New York [__________________]. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of that office or agency. If at any time
the Company shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, those presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office of the Trustee.

          The Company may also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all those purposes
and may from time to time rescind those designations; provided, however, that no such designation
or rescission shall in any manner relieve the Company of its obligation to maintain an office or
agency in each Place of Payment for Securities of any series for those purposes. The Company will
give prompt written notice to the Trustee of any such designation or rescission and of any change
in the location of any such other office or agency.

SECTION 4.03 SEC Reports; Financial Statements.

          (a) The Company shall file with the Trustee, within 15 days after it files the same with the
SEC, copies of the annual reports and the information, documents and other reports (or copies of
those portions of any of the foregoing as the SEC may by rules and regulations prescribe) that the
Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. If
this Indenture is qualified under the TIA, but not otherwise, the Company shall also comply with
the provisions of TIA § 314(a).

          (b) If the Company is not subject to the requirements of Section 13 or 15(d) of the Exchange
Act, the Company shall furnish to all Holders of Rule 144A Securities and prospective purchasers of
Rule 144A Securities designated by the Holders of Rule 144A Securities, promptly on their request,
the information required to be delivered pursuant to Rule 144A(d)(4) promulgated under the
Securities Act of 1933, as amended.

          (c) The Company intends to file the reports, information and documents referred to in Section
4.03(a) hereof with the SEC in electronic form pursuant to Regulation S-T promulgated by the SEC
using the SEC’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) system. The Company
shall notify the Trustee in the manner prescribed herein of each such filing. The Trustee is
hereby authorized and directed to access the EDGAR system for

25

 

purposes of retrieving the reports so filed. Compliance with the foregoing shall constitute delivery by the Company of such reports to
the Trustee in compliance with the provisions of TIA Section 314(a). The Trustee shall have no
duty to search for or obtain any electronic or other filings that the Company makes with the SEC,
regardless of whether such filings are periodic, supplemental or otherwise. Delivery of the
reports, information and documents to the Trustee pursuant to this Section 4.03 shall be solely for
the purposes of compliance with this Section 4.03 and with TIA Section 314(a). The Trustee’s
receipt of such reports, information and documents shall not constitute notice to it of the content
thereof or of any matter determinable from the content thereof, including the Company’s compliance
with any of its covenants hereunder, as to which the Trustee is entitled to rely upon Officers’
Certificates.

SECTION 4.04 Compliance Certificate.

          (a) The Company shall deliver to the Trustee, within 120 days after the end of each fiscal
year of the Company, a statement signed by an Officer of the Company, which need not constitute an
Officers’ Certificate, complying with TIA § 314(a)(4) and stating that, in the course of
performance by the signing Officer of the Company of his or her duties as such Officer of the
Company, he or she would normally obtain knowledge of the keeping, observing, performing and
fulfilling by the Company of its obligations under this Indenture, and further stating that, to the
best of his or her knowledge, the Company has kept, observed, performed and fulfilled each and
every covenant contained in this Indenture and is not in default in the performance or observance
of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall
have occurred, describing all such Defaults or Events of Default of which that Officer may have
knowledge and what action the Company is taking or proposes to take with respect thereto).

          (b) The Company shall, so long as Securities of any series are outstanding, deliver to the
Trustee, promptly on any Officer of the Company becoming aware of any Default or Event of Default
under this Indenture, an Officers’ Certificate specifying that Default or Event of Default and what
action the Company is taking or proposes to take with respect thereto.

SECTION 4.05 Existence.

          Subject to Article V hereof, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its existence.

SECTION 4.06 Waiver of Stay, Extension or Usury Laws.

          The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist on, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay or extension law or any usury law or other law that would prohibit or forgive the Company from
paying all or any portion of the principal of or interest on the Securities as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the
performance of this Indenture; and (to the extent that it may lawfully do so) the Company hereby
expressly waives all benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein

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granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.

SECTION 4.07 Additional Amounts.

          If the Securities of a series expressly provide for the payment of Additional Amounts, the
Company will pay to the Holder of any Security of that series Additional Amounts as expressly provided therein. Whenever in this Indenture there is mentioned, in any context, the
payment of the principal of or any premium or interest on, or in respect of, any Security of any
series or the net proceeds received from the sale or exchange of any Security of any series, that
mention shall be deemed to include mention of the payment of Additional Amounts provided for in
this Section 4.07 to the extent that, in that context, Additional Amounts are, were or would be
payable in respect thereof pursuant to the provisions of this Section 4.07, and express mention of
the payment of Additional Amounts (if applicable) in any provisions hereof shall not be construed
as excluding Additional Amounts in those provisions hereof where that express mention is not made.

          Unless otherwise provided pursuant to Section 2.01 with respect to Securities of any series,
if the Securities of a series provide for the payment of Additional Amounts, at least ten days
prior to the first Interest Payment Date with respect to that series of Securities (or if the
Securities of that series will not bear interest prior to Maturity, the first day on which a
payment of principal and any premium is made), and at least ten days prior to each date of payment
of principal and any premium or interest if there has been any change with respect to the matters
set forth in the below-mentioned Officers’ Certificate, the Company shall furnish the Trustee and
the Company’s principal Paying Agent or Paying Agents, if other than the Trustee, with an Officers’
Certificate instructing the Trustee and such Paying Agent or Paying Agents whether that payment of
principal of and any premium or interest on the Securities of that series shall be made to Holders
of Securities of that series who are United States Aliens without withholding for or on account of
any tax, assessment or other governmental charge described in the Securities of that series. If
any such withholding shall be required, then that Officers’ Certificate shall specify by country
the amount, if any, required to be withheld on those payments to those Holders of Securities, and
the Company will pay to that Paying Agent the Additional Amounts required by this Section. The
Company covenants to indemnify the Trustee and any Paying Agent for and to hold them harmless
against any loss, liability or expense reasonably incurred without negligence or bad faith on their
part arising out of or in connection with actions taken or omitted by any of them in reliance on
any Officers’ Certificate furnished pursuant to this Section 4.07.

ARTICLE V

SUCCESSORS

SECTION 5.01 Limitations on Mergers, Consolidations and Other Transactions.

          The Company shall not, in any transaction or series of related transactions, consolidate with
any other Person into, or merge into, any other Person, or sell, lease, convey, transfer or
otherwise dispose of its assets substantially as an entirety to any Person, unless:

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     (1) either (a) the Company shall be the continuing Person or (b) the Person formed by
that consolidation or into which the Company is merged, or to which that sale, lease,
conveyance, transfer or other disposition shall be made (collectively, the “Successor”),
expressly assumes by supplemental indenture the due and punctual payment of the principal of (and premium, if any) and interest on and Additional Amounts
with respect to all the Securities and the performance of the Company’s covenants and
obligations under this Indenture and the Securities;

     (2) immediately after giving effect to that transaction or series of related
transactions, no Default or Event of Default shall have occurred and be continuing; and

     (3) the Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that the transaction and that supplemental indenture comply with this
Indenture.

SECTION 5.02 Successor Person Substituted.

          Upon any consolidation or merger of the Company or any sale, lease, conveyance, transfer or
other disposition of the assets of the Company substantially as an entirety in accordance with
Section 5.01, any Successor formed by that consolidation or into or with which the Company is
merged or to which that sale, lease, conveyance, transfer or other disposition is made shall
succeed to, and be substituted for, and may exercise every right and power of the Company under
this Indenture and the Securities with the same effect as if that Successor had been named as the
Company herein and the predecessor Company, in the case of a sale, conveyance, transfer or other
disposition, shall be released from all obligations under this Indenture and the Securities.

ARTICLE VI

DEFAULTS AND REMEDIES

SECTION 6.01 Events of Default.

          Unless either inapplicable to a particular series or specifically deleted or modified in or
pursuant to the supplemental indenture or Board Resolution establishing that series of Securities
or in the form of Security for that series, an “Event of Default,” wherever used herein with
respect to Securities of any series, occurs if:

     (1) the Company defaults in the payment of interest on or any Additional Amounts with
respect to any Security of that series when the same becomes due and payable and that
default continues for a period of 30 days;

     (2) the Company defaults in the payment of (A) the principal of any Security of that
series at its Maturity or (B) premium (if any) on any Security of that series when the same
becomes due and payable, regardless of whether such payment became due because of maturity,
redemption, acceleration or otherwise, or is required by any sinking fund established with
respect to such series;

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     (3) the Company fails to comply with any of its other covenants or agreements in, or
provisions of, the Securities of that series or this Indenture (other than an agreement,
covenant or provision that has expressly been included in this Indenture solely for the
benefit of one or more series of Securities other than that series) which shall not have
been remedied within the specified period after written notice, as specified in the last
paragraph of this Section 6.01;

     (4) the Company pursuant to or within the meaning of any Bankruptcy Law:

     (A) commences a voluntary case,

     (B) consents to the entry of an order for relief against it in an involuntary
case,

     (C) consents to the appointment of a Bankruptcy Custodian of it or for all or
substantially all of its property, or

     (D) makes a general assignment for the benefit of its creditors;

     (5) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that remains unstayed and in effect for 90 days and that:

     (A) is for relief against the Company as debtor in an involuntary case,

     (B) appoints a Bankruptcy Custodian of the Company or a Bankruptcy Custodian
for all or substantially all of the property of the Company, or

     (C) orders the liquidation of the Company;

     (6) the Company defaults with respect to its Debt (other than the Securities for that
series) in an aggregate principal amount in excess of that dollar amount specified in the
supplemental indenture for the Securities, which

     (A) consists of the failure to make any payment at maturity, or

     (B) results in acceleration of the maturity of such Debt; or

     (7) any other Event of Default provided with respect to Securities of that series
occurs.

          The term “Bankruptcy Custodian” means any receiver, trustee, assignee, liquidator or similar
official under any Bankruptcy Law.

          When a Default is cured, it ceases.

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          Notwithstanding the foregoing provisions of this Section 6.01, if the principal of, premium
(if any) or interest on or Additional Amounts with respect to any Security is payable in a currency
or currencies (including a composite currency) other than Dollars and such currency or currencies
are not available to the Company for making payment thereof due to the imposition of exchange
controls or other circumstances beyond the control of the Company (a “Conversion Event”), the
Company will be entitled to satisfy its obligations to Holders of the Securities by making that
payment in Dollars in an amount equal to the Dollar equivalent of the amount payable in such other
currency, as determined by the Company by reference to the Exchange Rate on the date of that
payment, or, if that rate is not then available, on the basis of the most recently available
Exchange Rate. Notwithstanding the foregoing provisions of this Section 6.01, any payment made
under such circumstances in Dollars where the required payment is in a currency other than Dollars
will not constitute an Event of Default under this Indenture.

          Promptly after the occurrence of a Conversion Event, the Company shall give written notice
thereof to the Trustee; and the Trustee, promptly after receipt of that notice, shall give notice
thereof in the manner provided in Section 11.02 to the Holders. Promptly after the making of any
payment in Dollars as a result of a Conversion Event, the Company shall give notice in the manner
provided in Section 11.02 to the Holders, setting forth the applicable Exchange Rate and describing
the calculation of those payments.

          A Default under clause (3) of this Section 6.01 is not an Event of Default until the Trustee
notifies the Company, or the Holders of at least 25% in principal amount of the then outstanding
Securities of the series affected by that Default, or, if outstanding Securities of other series
are affected by that Default, then at least 25% in principal amount of the then outstanding
Securities so affected, notify the Company and the Trustee, of the Default, and the Company fails
to cure the Default within 90 days after receipt of the notice. The notice must specify the
Default, demand that it be remedied and state that the notice is a “Notice of Default.”

SECTION 6.02 Acceleration.

          If an Event of Default with respect to any Securities of any series at the time outstanding
(other than an Event of Default specified in clause (4) or (5) of Section 6.01 hereof) occurs and
is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in principal
amount of the then outstanding Securities of the series affected by that default (or, in the case
of an Event of Default described in clause (3) of Section 6.01, if outstanding Securities of other
series are affected by that Default, then at least 25% in principal amount of the then outstanding
Securities so affected) by notice to the Company and the Trustee, may declare the principal of (or,
if any of those Securities are Original Issue Discount Securities, that portion of the principal
amount as may be specified in the terms of that series) and all accrued and unpaid interest on all
then outstanding Securities of that series or of all series, as the case may be, to be due and
payable. Upon any such declaration, the amounts due and payable on those Securities shall be due
and payable immediately. If an Event of Default specified in clause (4) or (5) of Section 6.01
hereof occurs, those amounts shall ipso facto become and be immediately due and payable without any
declaration, notice or other act on the part of the Trustee or any Holder. The Holders of a
majority in principal amount of the then outstanding Securities of the series affected by that
default or all series, as the case may be, by written notice to the Trustee may rescind an

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acceleration and its consequences (other than nonpayment of principal of or premium or
interest on or any Additional Amounts with respect to the Securities) if the rescission would not
conflict with any judgment or decree and if all existing Events of Default with respect to
Securities of that series (or of all series, as the case may be) have been cured or waived, except
nonpayment of principal, premium, interest or any Additional Amounts that has become due solely
because of the acceleration.

SECTION 6.03 Other Remedies.

          If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal of, or premium, if any,
or interest on the Securities of that series or to enforce the performance of any provision of the
Securities of that series or this Indenture.

          The Trustee may maintain a proceeding with respect to Securities of any series even if it does
not possess any of the Securities of that series or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing on an
Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in
the Event of Default. All remedies are cumulative to the extent permitted by law.

SECTION 6.04 Waiver of Defaults.

          Subject to Sections 6.07 and 9.02, the Holders of a majority in principal amount of the then
outstanding Securities of any series or of all series (acting as one class) by notice to the
Trustee may waive an existing or past Default or Event of Default with respect to that series or
all series, as the case may be, and its consequences (including waivers obtained in connection with
a tender offer or exchange offer for Securities of that series or all series or a solicitation of
consents in respect of Securities of that series or all series, provided that in each case that
offer or solicitation is made to all Holders of then outstanding Securities of that series or all
series (but the terms of that offer or solicitation may vary from series to series)), except (1) a
continuing Default or Event of Default in the payment of the principal of, or premium, if any, or
interest on or any Additional Amounts with respect to any Security or (2) a continued Default in
respect of a provision that under Section 9.02 cannot be amended or supplemented without the
consent of each Holder affected. Upon any such waiver, that Default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

SECTION 6.05 Control by Majority.

          With respect to Securities of any series, the Holders of a majority in principal amount of the
then outstanding Securities of that series may direct in writing the time, method
and place of conducting any proceeding for any remedy available to the Trustee or exercising any
trust or power conferred on it relating to or arising under an Event of Default described in

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clause
(1), (2) or (7) of Section 6.01, and with respect to all Securities, the Holders of a majority in
principal amount of all the then outstanding Securities affected may direct in writing the time,
method and place of conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on it not relating to or arising under such an Event of Default.
However, the Trustee may refuse to follow any direction that conflicts with applicable law or this
Indenture, that the Trustee determines may be unduly prejudicial to the rights of other Holders, or
that may involve the Trustee in personal liability; provided, however, that the Trustee may take
any other action deemed proper by the Trustee that is not inconsistent with that direction. Prior
to taking any action hereunder, the Trustee shall be entitled to indemnification satisfactory to it
in its sole discretion from Holders directing the Trustee against all losses and expenses caused by
taking or not taking that action.

SECTION 6.06 Limitations on Suits.

          Subject to Section 6.07 hereof, a Holder of a Security of any series may pursue a remedy with
respect to this Indenture or the Securities of that series only if:

     (1) the Holder gives to the Trustee written notice of a continuing Event of Default
with respect to that series;

     (2) the Holders of at least 25% in principal amount of the then outstanding Securities
of that series make a written request to the Trustee to pursue the remedy;

     (3) such Holder or Holders offer to the Trustee indemnity reasonably satisfactory to
the Trustee against any loss, liability or expense;

     (4) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer of indemnity; and

     (5) during that 60-day period, the Holders of a majority in principal amount of the
Securities of that series do not give the Trustee a direction inconsistent with the request.

          A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over another Holder.

SECTION 6.07 Rights of Holders to Receive Payment.

          Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
to receive payment of principal of and premium, if any, and interest on and any Additional Amounts
with respect to that Security, on or after the respective due dates expressed in that Security, or
to bring suit for the enforcement of any such payment on or after those
respective dates, is absolute and unconditional and shall not be impaired or affected without the
consent of the Holder.

SECTION 6.08 Collection Suit by Trustee.

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          If an Event of Default specified in clause (1) or (2) of Section 6.01 hereof occurs and is
continuing with respect to Securities of any series, the Trustee is authorized to recover judgment
in its own name and as trustee of an express trust against the Company for the amount of principal,
premium (if any), interest and any Additional Amounts remaining unpaid on the Securities of that
series, and interest on overdue principal and premium, if any, and, to the extent lawful, interest
on overdue interest, and such further amount as shall be sufficient to cover the costs and expenses
of collection, including the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.

SECTION 6.09 Trustee May File Proofs of Claim.

          The Trustee is authorized to file such proofs of claim and other papers or documents and to
take such actions, including participating as a member, voting or otherwise, of any committee of
creditors, as may be necessary or advisable to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and the Holders allowed in any judicial proceeding relative to the Company or its
creditors or properties and shall be entitled and empowered to collect, receive and distribute any
money or other property payable or deliverable on any such claims and any Bankruptcy Custodian in
any such judicial proceeding is hereby authorized by each Holder to make those payments to the
Trustee, and in the event that the Trustee shall consent to the making of those payments directly
to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts
due the Trustee under Section 7.07. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts
due the Trustee under Section 7.07 out of the estate in any such proceeding, shall be denied for
any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and
all distributions, dividends, money, securities and other properties which the Holders of the
Securities may be entitled to receive in that proceeding whether in liquidation or under any plan
of reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any
plan of reorganization, arrangement, adjustment or composition affecting the Securities or the
rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

SECTION 6.10 Priorities.

          If the Trustee collects any money pursuant to this Article VI, subject to Article X, it shall
pay out the money in the following order:

          First: to the Trustee for amounts due under Section 7.07;

          Second: to Holders for amounts due and unpaid on the Securities in respect of which or for
the benefit of which that money has been collected, for principal, premium (if any), interest and
any Additional Amounts ratably, without preference or priority of any kind,

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according to the
amounts due and payable on those Securities for principal, premium (if any), interest and any
Additional Amounts, respectively; and

          Third: to the Company.

          The Trustee, on prior written notice to the Company, may fix record dates and payment dates
for any payment to Holders pursuant to this Article VI.

          To the fullest extent allowed under applicable law, if for the purpose of obtaining a judgment
against the Company in any court it is necessary to convert the sum due in respect of the principal
of, premium (if any) or interest on or Additional Amounts with respect to the Securities of any
series (the “Required Currency”) into a currency in which a judgment will be rendered (the
“Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with
normal banking procedures the Trustee could purchase in The City of New York the Required Currency
with the Judgment Currency on the New York Business Day next preceding that on which final judgment
is given. Neither the Company nor the Trustee shall be liable for any shortfall nor shall it
benefit from any windfall in payments to Holders of Securities under this Section 6.10 caused by a
change in exchange rates between the time the amount of a judgment against it is calculated as
above and the time the Trustee converts the Judgment Currency into the Required Currency to make
payments under this Section to Holders of Securities, but payment of that judgment shall discharge
all amounts owed by the Company on the claim or claims underlying that judgment.

SECTION 6.11 Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the
Trustee, a suit by a Holder pursuant to Section 6.07, or a suit by a Holder or Holders of more than
10% in principal amount of the then outstanding Securities of any series.

ARTICLE VII

TRUSTEE

SECTION 7.01 Duties of Trustee.

          (a) If an Event of Default with respect to the Securities of any series has occurred and is
continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture
with respect to the Securities of that series, and use the same degree of care and skill in that
exercise, as a prudent person would exercise or use under the circumstances in the conduct of his
own affairs.

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          (b) Except during the continuance of an Event of Default with respect to the Securities of any
series:

     (1) the Trustee need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and

     (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, on
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. However, the Trustee shall examine those certificates and opinions to determine
whether, on their face, they appear to conform to the requirements of this Indenture.

          (c) The Trustee may not be relieved from liabilities for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:

     (1) this paragraph does not limit the effect of Section 7.01(b);

     (2) the Trustee shall not be liable for any error of judgment made in good faith by a
Trust Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts; and

     (3) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.05
hereof.

          (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to the provisions of this Section 7.01.

          (e) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or incur any liability. The Trustee may refuse to perform any duty or exercise any right or power
unless it receives indemnity reasonably satisfactory to it against any loss, liability or expense.

          (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law. All money received by the
Trustee with respect to Securities of any series shall, until applied as herein
provided, be held in trust for the payment of the principal of, premium (if any) and interest on
and Additional Amounts with respect to the Securities of that series.

SECTION 7.02 Rights of Trustee.

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          (a) The Trustee may rely on any document believed by it to be genuine and to have been signed
or presented by the proper Person. The Trustee need not investigate any fact or matter stated in
the document.

          (b) Before the Trustee acts or refrains from acting, it may require instruction, an Officers’
Certificate or an Opinion of Counsel or both to be provided. The Trustee shall not be liable for
any action it takes or omits to take in good faith in reliance on that instruction, Officers’
Certificate or Opinion of Counsel. The Trustee may consult with counsel, and the written advice of
that counsel or any Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.

          (c) The Trustee may act through agents and shall not be responsible for the misconduct or
negligence of any agent appointed with due care.

          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers conferred on it by this
Indenture.

          (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company shall be sufficient if signed by an Officer of the Company.

          (f) The Trustee shall not be charged with knowledge of any Default or Event of Default with
respect to the Securities, unless either (1) a Trust Officer shall have actual knowledge of such
Default or Event of Default or (2) written notice of such Default or Event of Default shall have
been given to the Trustee by the Company or by any Holder of the Securities, and such notice
references the Securities and this Indenture.

          (g) The permissive rights of the Trustee enumerated herein shall not be construed as duties.

SECTION 7.03 May Hold Securities.

          The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or any of its Affiliates with the same rights it
would have if it were not Trustee. Any Agent may do the same with like rights and duties. However,
the Trustee is subject to Sections 7.10 and 7.11.

SECTION 7.04 Trustee’s Disclaimer.

          The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities; it shall not be accountable for the Company’s use of the proceeds from the Securities
or any money paid to the Company or upon the Company’s direction under any provision hereof; it
shall not be responsible for the use or application of any money received

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by any Paying Agent other
than the Trustee; and it shall not be responsible for any statement or recital herein or any
statement in the Securities other than its certificate of authentication.

SECTION 7.05 Notice of Defaults.

          If a Default or Event of Default with respect to the Securities of any series occurs and is
continuing and it is known to the Trustee, the Trustee shall mail to Holders of Securities of that
series a notice of the Default or Event of Default within 90 days after it occurs. Except in the
case of a Default or Event of Default in payment of principal of, premium (if any) and interest on
and Additional Amounts or any sinking fund installment with respect to the Securities of that
series, the Trustee may withhold the notice if and so long as a committee of its Trust Officers in
good faith determines that withholding the notice is in the interests of Holders of Securities of
that series.

SECTION 7.06 Reports by Trustee to Holders.

          Within 60 days after each May 15 of each year after the execution of this Indenture, the
Trustee shall mail to Holders of a series and the Company a brief report dated as of that reporting
date that complies with TIA § 313(a); provided, however, that if no event described in TIA § 313(a)
has occurred within the twelve months preceding the reporting date with respect to a series, no
report need be transmitted to Holders of that series. The Trustee also shall comply with TIA §
313(b). The Trustee shall also transmit by mail all reports if and as required by TIA §§ 313(c)
and 313(d).

          A copy of each report at the time of its mailing to Holders of a series of Securities shall be
filed by the Company with the SEC and each securities exchange, if any, on which the Securities of
that series are listed. The Company shall notify the Trustee if and when any series of Securities
is listed on any stock exchange.

SECTION 7.07 Compensation and Indemnity.

          The Company agrees to pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services hereunder. The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Company agrees to
reimburse the Trustee on request for all reasonable disbursements,
advances and expenses incurred by it. Those expenses shall include the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel.

          The Company hereby indemnifies the Trustee against any loss, liability or expense incurred by
it arising out of or in connection with the acceptance or administration of its duties under this
Indenture, except as set forth in the next paragraph. The Trustee shall notify the Company
promptly of any claim for which it may seek indemnity. The Company shall defend the claim and the
Trustee shall cooperate in the defense. The Trustee may have separate counsel, and the Company
shall pay the reasonable fees and expenses of that counsel. The Company need not pay for any
settlement made without its consent.

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          The Company shall not be obligated to reimburse any expense or indemnify against any loss or
liability incurred by the Trustee through negligence or bad faith.

          To secure the payment obligations of the Company in this Section 7.07, the Trustee shall have
a lien prior to the Securities on all money or property held or collected by the Trustee, except
that held in trust to pay principal of, premium (if any) and interest on and any Additional Amounts
with respect to the Securities of any series. That lien shall survive the satisfaction and
discharge of this Indenture.

          When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 6.01(4) or (5) occurs, the expenses and the compensation for the services are intended to
constitute expenses of administration under any Bankruptcy Law.

SECTION 7.08 Replacement of Trustee.

          A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only on the successor Trustee’s acceptance of appointment as provided in this Section
7.08.

          The Trustee may resign and be discharged at any time with respect to the Securities of one or
more series by so notifying the Company. The Holders of a majority in principal amount of the then
outstanding Securities of any series may remove the Trustee with respect to the Securities of that
series by so notifying the Trustee and the Company. The Company may remove the Trustee if:

     (1) the Trustee fails to comply with Section 7.10;

     (2) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

     (3) a Bankruptcy Custodian or public officer takes charge of the Trustee or its
property; or

     (4) the Trustee otherwise becomes incapable of acting.

          If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, with respect to the Securities of one or more series, the Company shall promptly appoint a
successor Trustee or Trustees with respect to the Securities of that or those series (it being
understood that any such successor Trustee may be appointed with respect to the Securities of one
or more or all of those series and that at any time there shall be only one Trustee with respect to
the Securities of any particular series). Within one year after the successor Trustee with respect
to the Securities of any series takes office, the Holders of a majority in principal amount of the
Securities of that series may appoint a successor Trustee to replace the successor Trustee
appointed by the Company.

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          If a successor Trustee with respect to the Securities of any series does not take office
within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company
or the Holders of at least 10% in principal amount of the then outstanding Securities of that
series may petition any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of that series.

          If the Trustee with respect to the Securities of a series fails to comply with Section 7.10,
any Holder of Securities of that series may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee with respect to the Securities of
that series.

          In case of the appointment of a successor Trustee with respect to all Securities, each such
successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and
to the Company. Thereupon, the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee shall have all the rights, powers and duties of the retiring
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 7.07.

          In case of the appointment of a successor Trustee with respect to the Securities of one or
more (but not all) series, the Company, the retiring Trustee and each successor Trustee with
respect to the Securities of one or more (but not all) series shall execute and deliver an
indenture supplemental hereto in which each successor Trustee shall accept that appointment and
that (1) shall confer to each successor Trustee all the rights, powers and duties of the retiring
Trustee with respect to the Securities of that or those series to which the appointment of that
successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall confirm that all the rights, powers and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring Trustee is not retiring
shall continue to be vested in the retiring Trustee and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee. Nothing herein or in that supplemental indenture
shall constitute those Trustees co-trustees of the same trust, and each such Trustee shall be
trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee. Upon the execution and delivery of that supplemental
indenture, the resignation or removal of the retiring Trustee shall become effective to the extent
provided
therein, and each such successor Trustee shall have all the rights, powers and duties of the
retiring Trustee with respect to the Securities of that or those series to which the appointment of
that successor Trustee relates. On the request of the Company or any successor Trustee, that
retiring Trustee shall transfer to that successor Trustee all property held by that retiring
Trustee as Trustee with respect to the Securities of that or those series to which the appointment
of that successor Trustee relates. Such retiring Trustee shall, however, have the right to deduct
its unpaid fees and expenses.

          Notwithstanding replacement of the Trustee or Trustees pursuant to this Section 7.08, the
obligations of the Company under Section 7.07 shall continue for the benefit of the retiring
Trustee or Trustees.

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SECTION 7.09 Successor Trustee by Merger, etc.

          Subject to Section 7.10, if the Trustee consolidates, merges or converts into, or transfers
all or substantially all of its corporate trust business to, another corporation, the successor
corporation without any further act shall be the successor Trustee; provided, however, that in the
case of a transfer of all or substantially all of its corporate trust business to another
corporation, the transferee corporation expressly assumes all of the Trustee’s liabilities
hereunder.

          In case any Securities shall have been authenticated, but not delivered, by the Trustee then
in office, any successor by merger, conversion or consolidation to that authenticating Trustee may
adopt that authentication and deliver the Securities so authenticated; and in case at that time any
of the Securities shall not have been authenticated, any successor to the Trustee may authenticate
those Securities either in the name of any predecessor hereunder or in the name of the successor to
the Trustee; and in all those cases those certificates shall have the full force which it is
anywhere in the Securities or in this Indenture provided that the certificate of the Trustee shall
have.

SECTION 7.10 Eligibility; Disqualification.

          There shall at all times be a Trustee hereunder which shall be a corporation organized and
doing business under the laws of the United States, any State thereof or the District of Columbia
and authorized under those laws to exercise corporate trust power, shall be subject to supervision
or examination by Federal or State (or the District of Columbia) authority and shall have, or be a
subsidiary of a bank or bank holding company having, a combined capital and surplus of at least $50
million as set forth in its most recent published annual report of condition.

          The Indenture shall always have a Trustee who satisfies the requirements of TIA §§ 310(a)(1),
310(a)(2) and 310(a)(5). The Trustee is subject to and shall comply with the provisions of TIA §
310(b) during the period of time required by this Indenture. Nothing in this
Indenture shall prevent the Trustee from filing with the SEC the application referred to in the
penultimate paragraph of TIA § 310(b).

SECTION 7.11 Preferential Collection of Claims Against Company.

          The Trustee is subject to and shall comply with the provisions of TIA § 311(a), excluding any
creditor relationship listed in TIA § 311(b). A Trustee who has resigned or been removed shall be
subject to TIA § 311(a) to the extent indicated therein.

ARTICLE VIII

DISCHARGE OF INDENTURE

SECTION 8.01 Termination of Company’s Obligations.

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          (a) This Indenture shall cease to be of further effect with respect to the Securities of a
series (except as to any surviving rights of conversion or of registration of transfer or exchange
of Securities expressly provided for herein and except that the Company’s obligations under Section
7.07, the Trustee’s and Paying Agent’s obligations under Section 8.03 and the rights, powers,
protections and privileges accorded the Trustee under Article VII shall survive), and the Trustee,
on demand of the Company, shall execute proper instruments acknowledging the satisfaction and
discharge of this Indenture with respect to the Securities of that series, when:

     (1) either

     (A) all outstanding Securities of that series theretofore authenticated and issued
(other than destroyed, lost or stolen Securities that have been replaced or paid) have been
delivered to the Trustee for cancellation; or

     (B) all outstanding Securities of that series not theretofore delivered to the Trustee
for cancellation:

     (i) have become due and payable, or

     (ii) will become due and payable at their Stated Maturity within one year, or

     (iii) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the Trustee in
the name, and at the expense, of the Company,

and, in the case of clause (i), (ii) or (iii) above, the Company has irrevocably
deposited or caused to be deposited with the Trustee as funds (immediately
available to the Holders in the case of clause (i)) in trust for that purpose (x)
cash in an amount, or (y) Government Obligations, maturing as to principal and
interest at such times and in such amounts as will ensure the availability of cash
in an amount or (z) a combination thereof, which will be sufficient, in the opinion
(in the case of clauses (y) and (z)) of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the
Trustee, to pay and discharge the entire indebtedness on the Securities of that
series for principal and any interest and any Additional Amounts to the date of that
deposit (in the case of Securities which have become due and payable) or for
principal, premium, if any, interest and any Additional Amounts to the Stated
Maturity or Redemption Date, as the case may be; or

     (C) the Company has properly fulfilled such other means of satisfaction and
discharge as is specified, as contemplated by Section 2.01, to be applicable to the
Securities of that series;

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     (2) the Company has paid or caused to be paid all other sums payable by it hereunder
with respect to the Securities of that series; and

     (3) the Company has delivered to the Trustee an Officers’ Certificate stating that all
conditions precedent to satisfaction and discharge of this Indenture with respect to the
Securities of that series have been complied with, together with an Opinion of Counsel to
the same effect.

          (b) Unless this Section 8.01(b) is specified as not being applicable to Securities of a series
as contemplated by Section 2.01, the Company may terminate certain of its obligations under this
Indenture (“covenant defeasance”) with respect to the Securities of a series if:

     (1) the Company has irrevocably deposited or caused to be irrevocably deposited with
the Trustee as trust funds in trust for the purpose of making the following payments,
specifically pledged as security for and dedicated solely to the benefit of the Holders of
Securities of that series, (i) money in the currency in which payment of the Securities of
that series is to be made in an amount, or (ii) Government Obligations with respect to that
series, maturing as to principal and interest at such times and in such amounts as will
ensure the availability of money in the currency in which payment of the Securities of that
series is to be made in an amount or (iii) a combination thereof, that is sufficient, in the
opinion (in the case of clauses (ii) and (iii)) of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the
Trustee, to pay, without consideration of the reinvestment of any such amounts and after
payment of all taxes or other charges or assessments in respect thereof payable by the
Trustee, the principal of and premium (if any) and interest on and any Additional Amounts
with respect to all Securities of that series on each date that such principal, premium (if
any), interest or Additional Amounts are due and payable and (at the Stated Maturity thereof
or on redemption as provided in Section 8.01(e)) to pay all other sums payable by it
hereunder; provided that the Trustee shall have been irrevocably
instructed to apply that money and/or the proceeds of those Government Obligations to the
payment of said principal, premium (if any), interest and Additional Amounts with respect to
the Securities of that series as the same shall become due;

     (2) the Company has delivered to the Trustee an Officers’ Certificate stating that all
conditions precedent to satisfaction and discharge of this Indenture with respect to the
Securities of that series have been complied with, and an Opinion of Counsel to the same
effect;

     (3) no Default or Event of Default with respect to the Securities of that series shall
have occurred and be continuing on the date of that deposit;

     (4) the Company shall have delivered to the Trustee an Opinion of Counsel from counsel
reasonably acceptable to the Trustee or a private letter ruling issued by the United States
Internal Revenue Service to the effect that the Holders of Securities of that series will
not recognize income, gain or loss for Federal income tax purposes as a result

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of the
Company’s exercise of its option under this Section 8.01(b) and will be subject to Federal
income tax on the same amount and in the same manner and at the same times as would have
been the case if that option had not been exercised;

     (5) the Company has complied with any additional conditions specified pursuant to
Section 2.01 to be applicable to the discharge of Securities of that series pursuant to this
Section 8.01; and

     (6) that deposit and discharge shall not cause the Trustee to have a conflicting
interest as defined in TIA § 310(b).

          In that event, this Indenture shall cease to be of further effect (except as set forth in this
paragraph), and the Trustee, on demand of the Company, shall execute proper instruments
acknowledging satisfaction and discharge under this Indenture. However, the Company’s obligations
in Sections 2.05, 2.06, 2.07, 2.08, 2.09, 4.01, 4.02, 5.01, 7.07, 7.08 and 8.04, the Trustee’s and
Paying Agent’s obligations in Section 8.03 and the rights, powers, protections and privileges
accorded the Trustee under Article VII shall survive until all Securities of that series are no
longer outstanding. Thereafter, only the Company’s obligations in Section 7.07 and the Trustee’s
and Paying Agent’s obligations in Section 8.03 shall survive with respect to Securities of that
series.

          After making the irrevocable deposit pursuant to this Section 8.01(b) and following
satisfaction of the other conditions set forth herein, the Trustee on request shall acknowledge in
writing the discharge of the Company’s obligations under this Indenture with respect to the
Securities of that series, except for those surviving obligations specified above.

          In order to have money available on a payment date to pay principal of or premium (if any) or
interest on or any Additional Amounts with respect to the Securities, the Government Obligations
shall be payable as to principal or interest on or before that payment
date in such amounts as will provide the necessary money. Any such Government Obligations shall
not be callable at the issuer’s option.

          (c) If the Company has previously complied or is concurrently complying with Section 8.01(b)
(other than any additional conditions specified pursuant to Section 2.01 that are expressly
applicable only to covenant defeasance) with respect to Securities of a series, then, unless this
Section 8.01(c) is specified as not being applicable to Securities of that series as contemplated
by Section 2.01, the Company may elect to be discharged (“legal defeasance”) from its obligations
to make payments with respect to Securities of that series, if:

     (1) no Default or Event of Default under clauses (4) and (5) of Section 6.01 hereof
shall have occurred at any time during the period ending on the 91st day after the date of
deposit contemplated by Section 8.01(b) (it being understood that this condition shall not
be deemed satisfied until the expiration of that period);

     (2) unless otherwise specified with respect to Securities of that series as
contemplated by Section 2.01, the Company has delivered to the Trustee an Opinion of

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Counsel from counsel reasonably acceptable to the Trustee to the effect referred to in
Section 8.01(b)(4) with respect to that legal defeasance, which opinion is based on (i) a
private ruling of the Internal Revenue Service addressed to the Company, (ii) a published
ruling of the United States Internal Revenue Service pertaining to a comparable form of
transaction or (iii) a change in the applicable federal income tax law (including
regulations) after the date of this Indenture;

     (3) the Company has complied with any other conditions specified pursuant to Section
2.01 to be applicable to the legal defeasance of Securities of that series pursuant to this
Section 8.01(c); and

     (4) the Company has delivered to the Trustee a Company Request requesting legal
defeasance of the Securities of that series and an Officers’ Certificate stating that all
conditions precedent with respect to legal defeasance of the Securities of that series have
been complied with, together with an Opinion of Counsel to the same effect.

          In that event, the Company will be discharged from its obligations under this Indenture and
the Securities of that series to pay principal of, premium (if any) and interest on, and any
Additional Amounts with respect to, Securities of that series, the Company’s obligations under
Sections 4.01, 4.02 and 5.01 shall terminate with respect to those Securities, and the entire
indebtedness of the Company evidenced by those Securities shall be deemed paid and discharged.

          (d) If and to the extent additional or alternative means of satisfaction, discharge or
defeasance of Securities of a series are specified to be applicable to that series as contemplated
by Section 2.01, the Company may terminate any or all of its obligations under this Indenture with
respect to Securities of a series and any or all of its obligations under the Securities of that
series if it fulfills such other means of satisfaction and discharge as may be so specified, as
contemplated by Section 2.01, to be applicable to the Securities of that series.

          (e) If Securities of any series subject to subsections (a), (b), (c) or (d) of this Section
8.01 are to be redeemed prior to their Stated Maturity, whether pursuant to any optional redemption
provisions or in accordance with any mandatory or optional sinking fund provisions, the terms of
the applicable trust arrangement shall provide for that redemption, and the Company shall make such
arrangements as are reasonably satisfactory to the Trustee for the giving of notice of redemption
by the Trustee in the name, and at the expense, of the Company.

SECTION 8.02 Application of Trust Money.

          The Trustee or a trustee reasonably satisfactory to the Trustee and the Company shall hold in
trust money or Government Obligations deposited with it pursuant to Section 8.01 hereof. It shall
apply the deposited money and the money from Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of, premium (if any) and interest on and
any Additional Amounts with respect to the Securities of the series with respect to which the
deposit was made. Money and securities held in trust are not subject to Article X.

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SECTION 8.03 Repayment to Company.

          The Trustee and the Paying Agent shall promptly pay to the Company at any time on the written
request of the Company any excess money or Government Obligations (or proceeds therefrom) held by
them.

          Subject to the requirements of any applicable abandoned property laws, the Trustee and the
Paying Agent shall pay to the Company on written request any money held by them for the payment of
principal, premium (if any), interest or any Additional Amounts that remain unclaimed for two years
after the date on which that payment shall have become due. After payment to the Company, Holders
entitled to the money must look to the Company for payment as general creditors unless an
applicable abandoned property law designates another Person, and all liability of the Trustee and
the Paying Agent with respect to that money shall cease.

SECTION 8.04 Reinstatement.

          If the Trustee or the Paying Agent is unable to apply any money or Government Obligations
deposited with respect to Securities of any series in accordance with Section 8.01 by reason of any
legal proceeding or by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting that application, the obligations of the Company
under this Indenture with respect to the Securities of that series and under the Securities of that
series shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01
until such time as the Trustee or the Paying Agent is permitted to apply all such money or
Government Obligations in accordance with Section 8.01; provided, however, that if the Company has
made any payment of principal of, premium (if any) or
interest on or any Additional Amounts with respect to any Securities because of the reinstatement
of its obligations, the Company shall be subrogated to the rights of the Holders of those
Securities to receive such payment from the money or Government Obligations held by the Trustee or
the Paying Agent.

ARTICLE IX

SUPPLEMENTAL INDENTURES AND AMENDMENTS

SECTION 9.01 Without Consent of Holders.

          The Company and the Trustee may amend or supplement this Indenture or the Securities or waive
any provision hereof or thereof without the consent of any Holder:

     (1) to cure any ambiguity, omission, defect or inconsistency;

     (2) to comply with Section 5.01;

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     (3) to provide for uncertificated Securities in addition to or in place of certificated
Securities, or to provide for the issuance of bearer Securities (with or without coupons);

     (4) to provide any security for any series of Securities or to add guarantees of any
series of Securities;

     (5) to comply with any requirement in order to effect or maintain the qualification of
this Indenture under the TIA;

     (6) to add to the covenants of the Company for the benefit of the Holders of all or any
series of Securities (and if those covenants are to be for the benefit of less than all
series of Securities, stating that those covenants are expressly being included solely for
the benefit of that series), or to surrender any right or power herein conferred on the
Company;

     (7) to add any additional Events of Default with respect to all or any series of the
Securities (and, if any such Event of Default is applicable to less than all series of
Securities, specifying the series to which that Event of Default is applicable);

     (8) to change or eliminate any of the provisions of this Indenture; provided that any
such change or elimination shall become effective only when there is no outstanding Security
of any series created prior to the execution of that amendment or supplemental indenture
that is adversely affected in any material respect by that change in or elimination of that
provision;

     (9) to establish the form or terms of Securities of any series as permitted by Section
2.01;

     (10) to supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance and discharge of any series of Securities
pursuant to Section 8.01; provided, however, that any such action shall not adversely affect
the interest of the Holders of Securities of that series or any other series of Securities
in any material respect; or

     (11) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to the
requirements of Section 7.08.

          Upon the request of the Company, accompanied by a Board Resolution, and upon receipt by the
Trustee of the documents described in Section 9.06, the Trustee shall, subject to Section 9.06,
join with the Company in the execution of any supplemental indenture authorized or permitted by the
terms of this Indenture and make any further appropriate agreements and stipulations that may be
therein contained.

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SECTION 9.02 With Consent of Holders.

          Except as provided below in this Section 9.02, the Company and the Trustee may amend or
supplement this Indenture with the written consent (including consents obtained in connection with
a tender offer or exchange offer for Securities of any one or more series or all series or a
solicitation of consents in respect of Securities of any one or more series or all series, provided
that in each case that offer or solicitation is made to all Holders of then outstanding Securities
of each such series (but the terms of that offer or solicitation may vary from series to series))
of the Holders of at least a majority in principal amount of the then outstanding Securities of all
series affected by that amendment or supplement (acting as one class).

          Upon the request of the Company, accompanied by a Board Resolution, and upon the filing with
the Trustee of evidence of the consent of the Holders as aforesaid, and upon receipt by the Trustee
of the documents described in Section 9.06, the Trustee shall, subject to Section 9.06, join with
the Company in the execution of that amendment or supplemental indenture.

          It shall not be necessary for the consent of the Holders under this Section 9.02 to approve
the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if
that consent approves the substance thereof.

          The Holders of a majority in principal amount of the then outstanding Securities of one or
more series or of all series may waive compliance in a particular instance by the Company with any
provision of this Indenture with respect to Securities of that series (including
waivers obtained in connection with a tender offer or exchange offer for Securities of that series
or a solicitation of consents in respect of Securities of that series, provided that in each case
that offer or solicitation is made to all Holders of then outstanding Securities of that series
(but the terms of that offer or solicitation may vary from series to series)).

          However, without the consent of each Holder affected, an amendment, supplement or waiver
under this Section 9.02 may not:

     (1) reduce the amount of Securities whose Holders must consent to an amendment,
supplement or waiver;

     (2) reduce the rate of or change the time for payment of interest, including default
interest, on any Security;

     (3) reduce the principal of, premium on or any mandatory sinking fund payment with
respect to, or change the Stated Maturity of, any Security or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable on a
declaration of acceleration of the Maturity thereof pursuant to Section 6.02;

     (4) reduce the premium, if any, payable on the redemption of any Security or change the
time at which any Security may or shall be redeemed;

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     (5) change any obligation of the Company to pay Additional Amounts with respect to any
Security;

     (6) change the coin or currency or currencies (including composite currencies) in which
any Security or any premium, interest or Additional Amounts with respect thereto are
payable;

     (7) impair the right to institute suit for the enforcement of any payment of principal
of, premium (if any) or interest on or any Additional Amounts with respect to any Security
pursuant to Sections 6.07 and 6.08, except as limited by Section 6.06;

     (8) make any change in the percentage of principal amount of Securities necessary to
waive compliance with certain provisions of this Indenture pursuant to Section 6.04 or 6.07
or make any change in this sentence of Section 9.02;

     (9) modify the provisions of this Indenture with respect to the subordination of any
Security in a manner adverse to the Holder thereof;

     (10) waive a continuing Default or Event of Default in the payment of principal of,
premium (if any) or interest on or Additional Amounts with respect to the Securities; or

     (11) if applicable, make any change that materially and adversely affects the right to
convert any Security.

          An amendment under this Section may not make any change that adversely affects the rights
under Article X of any holder of an issue of Senior Debt of the Company unless the holders of the
issue pursuant to its terms consent to the change.

          A supplemental indenture that changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of the Holders of Securities of that series with
respect to that covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

          The right of any Holder to participate in any consent required or sought pursuant to any
provision of this Indenture (and the obligation of the Company to obtain any such consent otherwise
required from that Holder) may be subject to the requirement that such Holder shall have been the
Holder of record of any Securities with respect to which that consent is required or sought as of a
date identified by the Company in a notice furnished to Holders in accordance with the terms of
this Indenture.

          After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company shall mail to the Holders of each Security affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail

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that notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such amendment,
supplement or waiver.

SECTION 9.03 Compliance with Trust Indenture Act.

          Every amendment or supplement to this Indenture or the Securities shall comply in form and
substance with the TIA as then in effect.

SECTION 9.04 Revocation and Effect of Consents.

          Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder is a
continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security
that evidences the same debt as the consenting Holder’s Security, even if notation of the consent
is not made on any Security. However, any such Holder or subsequent Holder may revoke the consent
as to his or her Security or portion of a Security if the Trustee receives written notice of
revocation before the date the amendment, supplement or waiver becomes effective. An amendment,
supplement or waiver becomes effective in accordance with its terms and thereafter binds every
Holder.

          The Company may, but shall not be obligated to, fix a record date (which need not comply with
Section 316(c) of the TIA) for the purpose of determining the Holders entitled to consent to any
amendment, supplement or waiver or to take any other action under this Indenture. If a record date
is fixed, then notwithstanding the provisions of the immediately
preceding paragraph, those Persons who were Holders at that record date (or their duly designated
proxies), and only those Persons, shall be entitled to consent to that amendment, supplement or
waiver or to revoke any consent previously given, whether or not those Persons continue to be
Holders after that record date. No consent shall be valid or effective for more than 90 days after
that record date unless consents from Holders of the principal amount of Securities required
hereunder for that amendment or waiver to be effective shall have also been given and not revoked
within that 90-day period.

          After an amendment, supplement or waiver becomes effective, it shall bind every Holder, unless
it is of the type described in any of clauses (1) through (9) of Section 9.02 hereof. In that
case, the amendment, supplement or waiver shall bind each Holder who has consented to it and every
subsequent Holder that evidences the same debt as the consenting Holder’s Security.

SECTION 9.05 Notation on or Exchange of Securities.

          If an amendment or supplement changes the terms of an outstanding Security, the Company may
require the Holder of the Security to deliver it to the Trustee. The Trustee may place an
appropriate notation on the Security at the request of the Company regarding the changed terms and
return it to the Holder. Alternatively, if the Company so determines, the Company in exchange for
the Security shall issue and the Trustee shall authenticate a new Security that reflects the
changed terms. Failure to make the appropriate notation or to issue a new Security shall not
affect the validity of that amendment or supplement.

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          Securities of any series authenticated and delivered after the execution of any amendment or
supplement may, and shall if required by the Company, bear a notation in form approved by the
Company as to any matter provided for in that amendment or supplement.

SECTION 9.06 Trustee to Sign Amendments, etc.

          The Trustee shall sign any amendment or supplement authorized pursuant to this Article if the
amendment or supplement does not adversely affect the rights, duties, liabilities or immunities of
the Trustee. If it does, the Trustee may, but need not, sign it. In signing or refusing to sign
that amendment or supplement, the Trustee shall be entitled to receive, and, subject to Section
7.01 hereof, shall be fully protected in relying on, an Opinion of Counsel provided at the expense
of the Company as conclusive evidence that such amendment or supplement is authorized or permitted
by this Indenture, that it is not inconsistent herewith, and that it will be valid and binding on
the Company in accordance with its terms.

ARTICLE X

SUBORDINATION

SECTION 10.01 Securities Subordinated to Senior Debt.

          The Company and each Holder of a Security, by his or her acceptance thereof, agree that (a)
the payment of the principal of, premium (if any) and interest on and any Additional Amounts with
respect to each and all the Securities and (b) any other payment in respect of the Securities,
including on account of the acquisition or redemption of Securities by the Company, is
subordinated, to the extent and in the manner provided in this Article X, to the prior payment in
full of all Senior Debt of the Company, whether outstanding at the date of this Indenture or
thereafter created, incurred, assumed or guaranteed, and that these subordination provisions are
for the benefit of the holders of Senior Debt of the Company.

          Each Holder of a Security, by his or her acceptance thereof, acknowledges and agrees that the
provisions of this Article X are, and are intended to be, an inducement and a consideration to all
Persons who, in reliance on such provisions, become holders of, or continue to hold, Senior Debt of
the Company, and such provisions are made for the benefit of the holders of Senior Debt of the
Company, and those holders are made obligees hereunder, and any one or more of them may enforce
such provisions.

SECTION 10.02 No Payment on Securities in Certain Circumstances.

          (a) Unless otherwise specified with respect to Securities of a series as contemplated by
Section 2.01, no payment shall be made by or on behalf of the Company on account of the principal
of, premium (if any) or interest on or any Additional Amounts with respect to the Securities of any
series or to acquire any of those Securities (including any repurchases of those Securities
pursuant to the provisions thereof at the option of the Holder of those Securities) for cash or
property (other than Junior securities of the Company), or on account of any redemption provisions
of those Securities, in the event of default in payment of any principal of, premium (if any) or
interest on any Senior Debt of the Company when the same

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becomes due and payable, whether at
maturity or at a date fixed for prepayment or by declaration of acceleration or otherwise (a
“Payment Default”), unless and until that Payment Default has been cured or waived or otherwise has
ceased to exist or such Senior Debt has been discharged or paid in full.

          (b) Unless otherwise specified with respect to Securities of a series as contemplated by
Section 2.01, no payment shall be made by or on behalf of the Company on account of the principal
of, premium (if any) or interest on or any Additional Amounts with respect to the Securities of any
series or to acquire any of those Securities (including any repurchases of those Securities
pursuant to the provisions thereof at the option of the Holder of those Securities) for cash or
property (other than Junior securities of the Company), or on account of the redemption provisions
of those Securities, in the event of any event of default (other than a Payment Default) with
respect to any Designated Senior Debt permitting the holders of that Designated Senior Debt (or a
trustee or other representative on behalf of the holders thereof) to declare that Designated Senior
Debt due and payable prior to the date on which it would otherwise have become due and payable, on
written notice thereof to the Company and the Trustee by any holders of Designated Senior Debt (or
a trustee or other representative on behalf of the holders thereof) (the “Payment Blocking
Notice”), unless and
until that event of default shall have been cured or waived or otherwise has ceased to exist;
provided, that such payments may not be prevented pursuant to this Section 10.02(b) for more than
179 days after an applicable Payment Blocking Notice has been received by the Trustee unless the
Designated Senior Debt in respect of which that event of default exists has been declared due and
payable in its entirety, in which case no such payment may be made until that acceleration has been
rescinded or annulled or that Designated Senior Debt has been paid in full. Unless otherwise
specified with respect to Securities of a series as contemplated by Section 2.01, no event of
default that existed or was continuing on the date of any Payment Blocking Notice (whether or not
that event of default is on the same issue of Designated Senior Debt) may be made the basis for the
giving of a second Payment Blocking Notice, and only one such Payment Blocking Notice may be given
in any period of 365 consecutive days.

          (c) In furtherance of the provisions of Section 10.01, in the event that, notwithstanding the
foregoing provisions of this Section 10.02, any payment or distribution of assets of the Company
(other than Junior securities of the Company) shall be received by the Trustee or the Holders of
the Securities of any series or any Paying Agent with respect thereto at a time when that payment
or distribution was prohibited by the provisions of this Section 10.02, then, unless that payment
or distribution is no longer prohibited by this Section 10.02, that payment or distribution
(subject to the provisions of Section 10.07) shall be received and held in trust by the Trustee or
such Holders or Paying Agent for the benefit of the holders of Senior Debt of the Company, and
shall be paid or delivered by the Trustee or such Holders or Paying Agent, as the case may be, to
the holders of Senior Debt of the Company remaining unpaid or unprovided for or their
representative or representatives, or to the trustee or trustees under any indenture pursuant to
which any instruments evidencing that Senior Debt of the Company may have been issued, ratably,
according to the aggregate amounts remaining unpaid on account of that Senior Debt of the Company
held or represented by each, for application to the payment of all Senior Debt of the Company in
full after giving effect to all concurrent payments and distributions to or for the holders of that
Senior Debt.

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SECTION 10.03 Securities Subordinated to Prior Payment of All Senior Debt on Dissolution,
Liquidation or Reorganization.

          Upon any distribution of assets of the Company or upon any dissolution, winding up, total or
partial liquidation or reorganization of the Company, whether voluntary or involuntary, in
bankruptcy, insolvency, receivership or similar proceeding or upon assignment for the benefit of
creditors:

          (a) the holders of all Senior Debt of the Company shall first be entitled to receive payments
in full before the Holders of Securities of any series are entitled to receive any payment (other
than in the form of Junior securities of the Company) on account of the principal of, premium (if
any) or interest on or any Additional Amounts with respect to those Securities;

          (b) any payment or distribution of assets of the Company of any kind or character, whether in
cash, property or securities (other than Junior securities of the Company),
to which the Holders of Securities of any series or the Trustee on behalf of those Holders would be
entitled, except for the provisions of this Article X, shall be paid by the liquidating trustee or
agent or other Person making such a payment or distribution directly to the holders of that Senior
Debt or their representative, ratably according to the respective amounts of Senior Debt held or
represented by each, to the extent necessary to make payment in full of all that Senior Debt
remaining unpaid after giving effect to all concurrent payments and distributions to the holders of
that Senior Debt; and

          (c) in the event that, notwithstanding the foregoing, any payment or distribution of assets of
the Company of any kind or character, whether in cash, property or securities (other than Junior
securities of the Company), shall be received by the Trustee or the Holders of Securities of any
series or any Paying Agent with respect thereto (or, if the Company or any Affiliate of the Company
is acting as its own Paying Agent, money for any such payment or distribution shall be segregated
or held in trust) on account of the principal of, premium (if any) or interest on or any Additional
Amounts with respect to the Securities of that series before all Senior Debt of the Company is paid
in full, that payment or distribution (subject to the provisions of Section 10.07) shall be
received and held in trust by the Trustee or such Holder or Paying Agent for the benefit of the
holders of that Senior Debt, or their respective representatives, ratably according to the
respective amounts of that Senior Debt held or represented by each, to the extent necessary to make
payment as provided herein of all that Senior Debt remaining unpaid after giving effect to all
concurrent payments and distributions and all provisions therefor to or for the holders of that
Senior Debt, but only to the extent that as to any holder of that Senior Debt, as promptly as
practical following notice from the Trustee to the holders of that Senior Debt that such prohibited
payment has been received by the Trustee, Holder(s) or Paying Agent (or has been segregated as
provided above), that holder (or a representative therefor) notifies the Trustee of the amounts
then due and owing on that Senior Debt, if any, held by that holder, and only the amounts specified
in those notices to the Trustee shall be paid to the holders of that Senior Debt.

SECTION 10.04 Subrogation to Rights of Holders of Senior Debt.

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          Subject to the payment in full of all Senior Debt of the Company as provided herein, the
Holders of the Securities shall be subrogated (to the extent of the payments or distributions made
to the holders of that Senior Debt pursuant to the provisions of this Article X) to the rights of
the holders of that Senior Debt to receive payments or distributions of assets of the Company
applicable to that Senior Debt until all amounts owing on the Securities shall be paid in full.
For the purpose of that subrogation, no such payments or distributions to the holders of that
Senior Debt by the Company, or by or on behalf of the Holders of the Securities by virtue of this
Article X, which otherwise would have been made to those Holders shall, as among the Company, its
creditors other than the holders of Senior Debt of the Company and those Holders, be deemed to be
payment by the Company or on account of that Senior Debt, it being understood that the provisions
of this Article X are and are intended solely for the purpose of defining the relative rights of
the Holders of the Securities, on the one hand, and the holders of that Senior Debt, on the other
hand.

          If any payment or distribution to which the Holders of the Securities would otherwise have
been entitled but for the provisions of this Article X shall have been applied, pursuant to the
provisions of this Article X, to the payment of amounts payable under Senior Debt of the Company,
then those Holders shall be entitled to receive from the holders of that Senior Debt any payments
or distributions received by those holders of Senior Debt of the Company in excess of the amount
sufficient to pay all amounts payable under or in respect of that Senior Debt in full.

SECTION 10.05 Obligations of the Company Unconditional.

          Nothing contained in this Article X or elsewhere in this Indenture or in the Securities is
intended to or shall impair, as between the Company and the Holders of the Securities of any
series, the obligation of the Company, which is absolute and unconditional, to pay to those Holders
the principal of, premium (if any) and interest on and any Additional Amounts with respect to the
Securities of that series as and when the same shall become due and payable in accordance with
their terms, or is intended to or shall affect the relative rights of those Holders and creditors
of the Company other than the holders of Senior Debt of the Company, nor shall anything herein or
therein prevent the Trustee or any Holder from exercising all remedies otherwise permitted by
applicable law on default under this Indenture, subject to the rights, if any, under this Article
X, of the holders of Senior Debt of the Company in respect of cash, property or securities of the
Company received on the exercise of any such remedy. Notwithstanding anything to the contrary in
this Article X or elsewhere in this Indenture or in the Securities, on any distribution of assets
of the Company referred to in this Article X, the Trustee, subject to the provisions of Sections
7.01 and 7.02, and the Holders of the Securities shall be entitled to rely on any order or decree
made by any court of competent jurisdiction in which such dissolution, winding up, liquidation or
reorganization proceedings are pending, or a certificate of the liquidating trustee or agent or
other Person making any distribution to the Trustee or to those Holders for the purpose of
ascertaining the Persons entitled to participate in that distribution, the holders of Senior Debt
of the Company and other Debt of the Company, the amount thereof or payable thereon, the amount or
amounts paid or distributed thereon and all other facts pertinent thereto or to this Article X so
long as that court has been apprised of the

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provisions of, or the order, decree or certificate
makes reference to, the provisions of this Article X.

SECTION 10.06 Trustee Entitled to Assume Payments Not Prohibited in Absence of Notice.

     The Trustee shall not at any time be charged with knowledge of the existence of any facts that
would prohibit the making of any payment to or by the Trustee unless and until a Responsible
Officer of the Trustee or any Paying Agent shall have received, no later than two Business Days
prior to that payment, written notice thereof from the Company or from one or more holders of
Senior Debt of the Company or from any representative therefor and, prior to the receipt of any
such written notice, the Trustee, subject to the provisions of Sections 7.01 and 7.02, shall be
entitled in all respects conclusively to assume that no such fact exists.

SECTION 10.07 Application by Trustee of Amounts Deposited with It.

          Amounts deposited in trust with the Trustee pursuant to and in accordance with Article VIII
shall be for the sole benefit of Holders of the Securities of the series for the benefit of which
those amounts were deposited, and, to the extent allocated for the payment of Securities of that
series, shall not be subject to the subordination provisions of this Article X. Otherwise, any
deposit of assets with the Trustee or the Paying Agent (whether or not in trust) for the payment of
principal of, premium (if any) or interest on or any Additional Amounts with respect to any
Securities shall be subject to the provisions of Sections 10.01, 10.02, 10.03 and 10.04; provided
that if prior to two Business Days preceding the date on which by the terms of this Indenture any
such assets may become distributable for any purpose (including, without limitation, the payment of
either principal of, premium (if any) or interest on or any Additional Amounts with respect to any
Security), the Trustee or such Paying Agent shall not have received with respect to those assets
the written notice provided for in Section 10.06, then the Trustee or such Paying Agent shall have
full power and authority to receive those assets and to apply the same to the purpose for which
they were received, and shall not be affected by any notice to the contrary that may be received by
it on or after that date; and provided further that nothing contained in this Article X shall
prevent the Company from making, or the Trustee from receiving or applying, any payment in
connection with the redemption of Securities if the first publication of notice of that redemption
(whether by mail or otherwise in accordance with this Indenture) has been made, and the Trustee has
received that payment from the Company, prior to the occurrence of any of the contingencies
specified in Section 10.02 or 10.03.

SECTION 10.08 Subordination Rights Not Impaired by Acts or Omissions of the Company or Holders of
Senior Debt.

          No right of any present or future holders of any Senior Debt of the Company to enforce the
subordination provisions contained in this Article X shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any act or failure to act,
in good faith, by any such holder, or by any noncompliance by the Company with the terms of this
Indenture, regardless of any knowledge thereof that any such holder may have or be otherwise
charged with. The holders of Senior Debt of the Company may extend, renew, modify or amend the
terms of the Senior Debt or any security therefor and release, sell or

54

 

exchange that security and
otherwise deal freely with the Company, all without affecting the liabilities and obligations of
the parties to this Indenture or the Holders of the Securities.

SECTION 10.09 Trustee to Effectuate Subordination of Securities.

          Each Holder of a Security by his acceptance thereof authorizes and expressly directs the
Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the
subordination provisions contained in this Article X and to protect the rights of the
Holders of the Securities pursuant to this Indenture, and appoints the Trustee his attorney-in-fact
for that purpose, including, in the event of any dissolution, winding up, liquidation or
reorganization of the Company (whether in bankruptcy, insolvency or receivership proceedings or
upon an assignment for the benefit of creditors of the Company), the filing of a claim for the
unpaid balance of his Securities in the form required in said proceedings and cause said claim to
be approved. If the Trustee does not file a proper claim or proof of debt in the form required in
that proceeding prior to 30 days before the expiration of the time to file such claim or claims,
then the holders of Senior Debt of the Company or their representative is hereby authorized to have
the right to file and is hereby authorized to file an appropriate claim for and on behalf of the
Holders of said Securities. Nothing herein contained shall be deemed to authorize the Trustee or
the holders of Senior Debt of the Company or their representative to authorize or consent to or
accept or adopt on behalf of any Holder of Securities any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof, or to
authorize the Trustee or the holders of Senior Debt of the Company or their representative to vote
in respect of the claim of any Holder of the Securities in any such proceeding.

SECTION 10.10 Right of Trustee to Hold Senior Debt.

          The Trustee in its individual capacity shall be entitled to all of the rights set forth in
this Article X in respect of any Senior Debt of the Company at any time held by it to the same
extent as any other holder of Senior Debt of the Company, and nothing in this Indenture shall be
construed to deprive the Trustee of any of its rights as such holder.

SECTION 10.11 Article X Not to Prevent Events of Default.

          The failure to make a payment on account of principal of or premium (if any) or interest on or
any Additional Amounts with respect to the Securities by reason of any provision of this Article X
shall not be construed as preventing the occurrence of a Default or an Event of Default under
Section 6.01 or in any way prevent the Holders of the Securities from exercising any right
hereunder other than the right to receive payment on the Securities.

SECTION 10.12 No Fiduciary Duty of Trustee to Holders of Senior Debt.

          The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Debt of the
Company, and shall not be liable to any of those holders (other than for its willful misconduct or
gross negligence) if it shall in good faith mistakenly pay over or distribute to the Holders of the
Securities or the Company or any other Person, cash, property or securities to which any holders of
Senior Debt of the Company shall be entitled by virtue of this Article X

55

 

or otherwise. Nothing in
this Section 10.12 shall affect the obligation of any other such Person to hold that payment for
the benefit of, and to pay that payment over to, the holders of Senior Debt of the Company or their
representative.

SECTION 10.13 Article Applicable to Paying Agent.

          In case at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article X shall in that
case (unless the context shall otherwise require) be construed as extending to and including that
Paying Agent within its meaning as fully for all intents and purposes as if that Paying Agent were
named in this Article in addition to or in place of the Trustee; provided, however, that this
Section 10.13 shall not apply to the Company or any Affiliate of the Company if it or that
Affiliate acts as Paying Agent.

ARTICLE XI

MISCELLANEOUS

SECTION 11.01 Trust Indenture Act Controls.

          If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by
operation of TIA § 318(c), the imposed duties shall control.

SECTION 11.02 Notices.

          Any notice or communication by the Company or the Trustee to the other is duly given if in
writing and delivered in person or mailed by first-class mail (registered or certified, return
receipt requested), telex, facsimile or overnight air courier guaranteeing next day delivery, to
the other’s address:

	 	 	 
	 

	 	If to the Company:
	 
	 

	 	Dawson Geophysical Company
	 

	 	508 West Wall, Suite 800
	 

	 	Midland, Texas 79701
	 

	 	Attention: Christina W. Hagan
	 

	 	Telephone: (432) 684-3000
	 

	 	Facsimile: (432) 684-___
	 
	 

	 	If to the Trustee:

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Attention: Corporate Trust Administration
	 

	 	Telephone:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Facsimile:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

56

 

          The Company or the Trustee by notice to the other may designate additional or different
addresses for subsequent notices or communications.

          All notices and communications shall be deemed to have been duly given: at the time delivered
by hand, if personally delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if by facsimile; and
the next Business Day after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery.

          Any notice or communication to a Holder shall be mailed by first-class mail, postage prepaid,
to the Holder’s address shown on the register kept by the Registrar. Failure to mail a notice or
communication to a Holder or any defect in it shall not affect its sufficiency with respect to
other Holders.

          If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it, except in the case of
notice to the Trustee, it is duly given only when received.

          If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Agent at the same time.

          All notices or communications, including without limitation notices to the Trustee or the
Company by Holders, shall be in writing, except as otherwise set forth herein.

          In case by reason of the suspension of regular mail service, or by reason of any other cause,
it shall be impossible to mail any notice required by this Indenture, then such method of
notification as shall be made with the approval of the Trustee shall constitute a sufficient
mailing of that notice.

SECTION 11.03 Communication by Holders with Other Holders.

          Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their
rights under this Indenture or the Securities. The Company, the Trustee, the Registrar and anyone
else shall have the protection of TIA § 312(c).

SECTION 11.04 Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company shall, if requested by the Trustee, furnish to the Trustee at the expense of
the Company:

      (1) an Officers’ Certificate (which shall include the statements set forth in Section
11.05) stating that, in the opinion of the signers, all conditions precedent and
covenants, if any, provided for in this Indenture relating to the proposed action have been
complied with; and

57

 

      (2) an Opinion of Counsel (which shall include the statements set forth in Section
11.05 hereof) stating that, in the opinion of that counsel, all those conditions precedent
and covenants have been complied with.

SECTION 11.05 Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4)) shall comply
with the provisions of TIA § 314(e) and shall include:

      (1) a statement that the Person making that certificate or opinion has read that
covenant or condition;

      (2) a brief statement as to the nature and scope of the examination or investigation on
which the statements or opinions contained in that certificate or opinion are based;

      (3) a statement that, in the opinion of that Person, he or she has made such
examination or investigation as is necessary to enable him or her to express an informed
opinion as to whether or not that covenant or condition has been complied with; and

      (4) a statement as to whether or not, in the opinion of that Person, that condition or
covenant has been complied with.

SECTION 11.06 Rules by Trustee and Agents.

          The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or the Paying Agent may make reasonable rules and set reasonable requirements for its functions.

SECTION 11.07 Legal Holidays.

          If a payment date is a Legal Holiday at a Place of Payment, payment may be made at that place
on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the
intervening period.

SECTION 11.08 No Recourse Against Others.

          A director, officer, employee, stockholder, partner or other owner of the Company or the
Trustee, as such, shall not have any liability for any obligations of the Company under the
Securities or for any obligations of the Company or the Trustee under this Indenture or for any
claim based on, in respect of or by reason of those obligations or their creation. Each Holder by
accepting a Security waives and releases all that liability. The waiver and release shall be part
of the consideration for the issue of Securities.

58

 

SECTION 11.09 Governing Law.

          THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY PRINCIPLES OF CONFLICTS OF LAWS
THEREUNDER TO THE EXTENT THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

SECTION 11.10 No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret another indenture, loan or debt agreement of the
Company. Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

SECTION 11.11 Successors.

          All agreements of the Company in this Indenture and the Securities shall bind its successors.
All agreements of the Trustee in this Indenture shall bind its successors.

SECTION 11.12 Severability.

          In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall, to the
fullest extent permitted by applicable law, not in any way be affected or impaired thereby.

SECTION 11.13 Counterpart Originals.

          The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.

SECTION 11.14 Table of Contents, Headings, etc.

          The table of contents, cross-reference table and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part
hereof and shall in no way modify or restrict any of the terms or provisions hereof.

59

 

          IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	DAWSON GEOPHYSICAL COMPANY  
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	[
	 	]	 	 
	 	 	 	 	 
	 

	 	 	 	as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

60<PAGE>

                                                                   EXHIBIT 10.01

                     THIRD AMENDED AND RESTATED AGREEMENT OF
                               LIMITED PARTNERSHIP

                                       OF

                      CRESCENT REAL ESTATE EQUITIES LIMITED
                                   PARTNERSHIP

                           Dated as of January 2, 2003

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                   <C>
ARTICLE I DEFINED TERMS..........................................................................................      3

ARTICLE II ORGANIZATIONAL MATTERS................................................................................     15

         Section 2.1       Continuation of Partnership...........................................................     15

         Section 2.2       Name..................................................................................     15

         Section 2.3       Principal Office and Registered Agent.................................................     16

         Section 2.4       Power of Attorney.....................................................................     16

         Section 2.5       Term..................................................................................     17

ARTICLE III PURPOSE..............................................................................................     17

         Section 3.1       Purpose and Business..................................................................     17

         Section 3.2       Powers................................................................................     18

ARTICLE IV CAPITAL CONTRIBUTIONS.................................................................................     18

         Section 4.1       Capital Contributions of the Partners.................................................     18

         Section 4.2       Additional Funding....................................................................     19

         Section 4.3       Issuance of Additional Partnership Interests..........................................     21

         Section 4.4       No Preemptive Rights..................................................................     23

         Section 4.5       No Interest on Capital................................................................     23

         Section 4.6       Stock Incentive Plans.................................................................     23

         Section 4.7       Other Equity Compensation Plans.......................................................     24

         Section 4.8       Series A Preferred Partnership Units and Series B Redeemable Preferred
                           Partnership Units.....................................................................     26

ARTICLE V DISTRIBUTIONS..........................................................................................     28

         Section 5.1       Initial Partnership Distributions.....................................................     28

         Section 5.2       Requirement and Characterization of Distributions.....................................     28

         Section 5.3       Amounts Withheld......................................................................     28
</TABLE>

                                      (i)
<PAGE>

<TABLE>
<S>                                                                                                                   <C>
         Section 5.4       Distributions In Kind.................................................................     28

         Section 5.5       Distributions Upon Liquidation........................................................     29

         Section 5.6       Distribution Rights of Series A Preferred Shares and Series B Redeemable Preferred
                           Shares................................................................................     29

ARTICLE VI ALLOCATIONS...........................................................................................     29

         Section 6.1       Allocations For Capital Account Purposes..............................................     29

         Section 6.2       Allocation of Nonrecourse Debt........................................................     30

         Section 6.3       Allocations for Series A Preferred Partnership Units and Series B Redeemable
                           Preferred Partnership Units...........................................................     30

ARTICLE VII MANAGEMENT AND OPERATIONS OF BUSINESS................................................................     31

         Section 7.1       Management............................................................................     31

         Section 7.2       Certificate of Limited Partnership....................................................     35

         Section 7.3       Restrictions on General Partner's Authority...........................................     35

         Section 7.4       Reimbursement of the Crescent Group...................................................     35

         Section 7.5       Outside Activities of the Crescent Group..............................................     36

         Section 7.6       Contracts with Affiliates.............................................................     37

         Section 7.7       Indemnification.......................................................................     37

         Section 7.8       Liability of the General Partner......................................................     39

         Section 7.9       Other Matters Concerning the General Partner..........................................     40

         Section 7.10      Title to Partnership Assets...........................................................     41

         Section 7.11      Reliance by Third Parties.............................................................     41

         Section 7.12      Limited Partner Representatives.......................................................     41

ARTICLE VIII RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS..........................................................     42

         Section 8.1       Limitation of Liability...............................................................     42

         Section 8.2       Management of Business................................................................     42

         Section 8.3       Outside Activities of Limited Partners................................................     42
</TABLE>

                                      (ii)

<PAGE>

<TABLE>
<S>                                                                                                                   <C>
         Section 8.4       Return of Capital.....................................................................     42

         Section 8.5       Rights of Limited Partners Relating to the Partnership................................     43

         Section 8.6       Exchange Rights.......................................................................     44

         Section 8.7       Covenants Relating to the Exchange Rights.............................................     44

         Section 8.8       Other Matters Relating to the Exchange Rights.........................................     45

ARTICLE IX BOOKS, RECORDS, ACCOUNTING AND REPORTS................................................................     46

         Section 9.1       Records and Accounting................................................................     46

         Section 9.2       Fiscal Year...........................................................................     46

         Section 9.3       Reports...............................................................................     46

ARTICLE X TAX MATTERS............................................................................................     46

         Section 10.1      Preparation of Tax Returns............................................................     46

         Section 10.2      Tax Elections.........................................................................     47

         Section 10.3      Tax Matters Partner...................................................................     47

         Section 10.4      Organizational Expenses...............................................................     48

         Section 10.5      Withholding...........................................................................     48

ARTICLE XI TRANSFERS AND WITHDRAWALS.............................................................................     49

         Section 11.1      Transfer..............................................................................     49

         Section 11.2      Transfer of Partnership Interests of the General Partner..............................     49

         Section 11.3      Transfer of Partnership Interests of Limited Partners Other Than Crescent Equities....     50

         Section 11.4      Substituted Limited Partners..........................................................     51

         Section 11.5      Assignees.............................................................................     52

         Section 11.6      General Provisions....................................................................     52

         Section 11.7      Acquisition of Partnership Interest by Partnership....................................     53

ARTICLE XII ADMISSION OF PARTNERS................................................................................     53

         Section 12.1      Admission of Substituted General Partner..............................................     53
</TABLE>

                                     (iii)
<PAGE>

<TABLE>
<S>                                                                                                                   <C>
         Section 12.2      Admission of Additional or Employee Limited Partners..................................     53

         Section 12.3      Amendment of Agreement and Certificate of Limited Partnership.........................     55

ARTICLE XIII DISSOLUTION AND LIQUIDATION.........................................................................     55

         Section 13.1      Dissolution...........................................................................     55

         Section 13.2      Winding Up............................................................................     56

         Section 13.3      Compliance with Timing Requirements of Regulations....................................     57

         Section 13.4      Deemed Contribution and Distribution..................................................     58

         Section 13.5      Rights of Limited Partners............................................................     58

         Section 13.6      Documentation of Liquidation..........................................................     58

         Section 13.7      Reasonable Time for Winding-Up........................................................     58

         Section 13.8      Liability of the Liquidator...........................................................     58

         Section 13.9      Waiver of Partition...................................................................     59

ARTICLE XIV AMENDMENT OF AGREEMENT...............................................................................     59

         Section 14.1      Amendments............................................................................     59

ARTICLE XV PARTNER REPRESENTATIONS AND WARRANTIES................................................................     60

         Section 15.1      Representations and Warranties........................................................     60

ARTICLE XVI ARBITRATION OF DISPUTES..............................................................................     61

         Section 16.1      Arbitration...........................................................................     61

         Section 16.2      Procedures............................................................................     61

         Section 16.3      Binding Character.....................................................................     62

         Section 16.4      Exclusivity...........................................................................     63

         Section 16.5      No Alteration of Agreement............................................................     63

ARTICLE XVII GENERAL PROVISIONS..................................................................................     63

         Section 17.1      Addresses and Notice..................................................................     63

         Section 17.2      Titles and Captions...................................................................     63
</TABLE>

                                      (iv)
<PAGE>

<TABLE>
<S>                                                                                                                   <C>
         Section 17.3      Pronouns and Plurals..................................................................     63

         Section 17.4      Further Action........................................................................     64

         Section 17.5      Binding Effect........................................................................     64

         Section 17.6      Creditors.............................................................................     64

         Section 17.7      Waiver................................................................................     64

         Section 17.8      No Agency.............................................................................     64

         Section 17.9      Entire Understanding..................................................................     64

         Section 17.10     Counterparts..........................................................................     64

         Section 17.11     Applicable Law........................................................................     64

         Section 17.12     Invalidity of Provisions..............................................................     65

         Section 17.13     Guaranty by Crescent Equities.........................................................     65

         Section 17.14     Restriction on Sale of Sonoma Property................................................     65
</TABLE>

Exhibit A -- Partners, Partnership Units and Partnership Interests

Exhibit B -- Capital Account Maintenance

Exhibit C -- Special Tax Allocation Rules

Exhibit D -- Notice of Exchange

Exhibit E -- Listing of Approved Substituted Limited Partners

                                      (v)
<PAGE>

           THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP

                                       OF

                CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP

         THIS THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP, dated
as of January 2, 2003, is entered into by and among Crescent Real Estate
Equities, Ltd., a Delaware corporation, as general partner (the "General
Partner"), and those parties who are Limited Partners as listed on Exhibit A
hereto or who are admitted from time to time as Limited Partners as herein
provided.

                              W I T N E S S E T H:

         WHEREAS, Crescent Real Estate Equities Limited Partnership, a Delaware
limited partnership (the "Partnership"), was formed pursuant to that certain
Certificate of Limited Partnership dated February 9, 1994 and filed on February
9, 1994 in the office of the Secretary of State of Delaware, and that certain
Agreement of Limited Partnership dated as of February 9, 1994 (the "Initial
Agreement");

         WHEREAS, the Initial Agreement was amended and restated in its entirety
by that certain First Amended and Restated Agreement of Limited Partnership of
Crescent Real Estate Equities Limited Partnership, dated as of May 5, 1994, as
amended by the First Amendment to the First Amended and Restated Agreement of
Limited Partnership of Crescent Real Estate Equities Limited Partnership, dated
as of May 16, 1994, the Second Amendment to the First Amended and Restated
Agreement of Limited Partnership of Crescent Real Estate Equities Limited
Partnership, dated as of April 11, 1995, the Third Amendment to the First
Amended and Restated Agreement of Limited Partnership of Crescent Real Estate
Equities Limited Partnership, dated as of April 11, 1995, the Fourth Amendment
to the First Amended and Restated Agreement of Limited Partnership of Crescent
Real Estate Equities Limited Partnership, dated as of May 3, 1995, the Fifth
Amendment to the First Amended and Restated Agreement of Limited Partnership of
Crescent Real Estate Equities Limited Partnership, dated as of May 31, 1995, the
Sixth Amendment to the First Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
June 1, 1995, the Seventh Amendment to the First Amended and Restated Agreement
of Limited Partnership of Crescent Real Estate Equities Limited Partnership,
dated as of August 23, 1995, the Eighth Amendment to the First Amended and
Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of December 31, 1995, the Restatement of Ninth
Amendment to the First Amended and Restated Agreement of Limited Partnership of
Crescent Real Estate Equities Limited Partnership, dated as of February 16,
1996, the Supplemental Amendment to the Restatement of Ninth Amendment to the
First Amended and Restated Agreement of Limited Partnership of Crescent Real
Estate Equities Limited Partnership, dated as of June 30, 1996, the Tenth
Amendment to the First Amended and Restated Agreement of Limited Partnership of
Crescent Real Estate Equities Limited Partnership, dated as of July 26, 1996,
the Eleventh Amendment to the First Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
November 4, 1996, the Twelfth Amendment to the First Amended and Restated
Agreement of

<PAGE>

Limited Partnership, dated as of December 31, 1996, the Thirteenth Amendment to
the First Amended and Restated Agreement of Limited Partnership, dated as of
April 29, 1997 and the Fourteenth Amendment to the First Amended and Restated
Agreement of Limited Partnership, dated as of April 30, 1997 (hereinafter
referred to collectively as the "First Amended Agreement");

         WHEREAS, the First Amended Agreement was amended and restated in its
entirety by that certain Second Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
November 1, 1997, as amended by the First Amendment to the Second Amended and
Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of February 19, 1998, the Second Amendment to the
Second Amended and Restated Agreement of Limited Partnership of Crescent Real
Estate Equities Limited Partnership, dated as of March 2, 1998, the Third
Amendment to the Second Amended and Restated Agreement of Limited Partnership of
Crescent Real Estate Equities Limited Partnership, dated as of April 27, 1998,
the Fourth Amendment to the Second Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
June 1, 1998, the Fifth Amendment to the Second Amended and Restated Agreement
of Limited Partnership of Crescent Real Estate Equities Limited Partnership,
dated as of June 30, 1998, the Sixth Amendment to the Second Amended and
Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of July 15, 1998, the Seventh Amendment to the
Second Amended and Restated Agreement of Limited Partnership of Crescent Real
Estate Equities Limited Partnership, dated as of September 30, 1998, the Eighth
Amendment to the Second Amended and Restated Agreement of Limited Partnership of
Crescent Real Estate Equities Limited Partnership, dated as of January 31, 1999,
the Ninth Amendment to the Second Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
April 15, 1999, the Tenth Amendment to the Second Amended and Restated Agreement
of Limited Partnership of Crescent Real Estate Equities Limited Partnership,
dated as of May 3, 1999, the Eleventh Amendment to the Second Amended and
Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of June 1, 1999, the Twelfth Amendment to the
Second Amended and Restated Agreement of Limited Partnership, dated as of June
3, 1999, the Thirteenth Amendment to the Second Amended and Restated Agreement
of Limited Partnership, dated as of December 31, 1999, the Fourteenth Amendment
to the Second Amended and Restated Agreement of Limited Partnership, dated as of
January 31, 2000, the Fifteenth Amendment to the Second Amended and Restated
Agreement of Limited Partnership, dated as of March 1, 2000, the Sixteenth
Amendment to the Second Amended and Restated Agreement of Limited Partnership,
dated as of July 31, 2001, the Seventeenth Amendment to the Second Amended and
Restated Agreement of Limited Partnership, dated as of December 31, 2001, the
Eighteenth Amendment to the Second Amended and Restated Agreement of Limited
Partnership, dated as of April 26, 2002, the Nineteenth Amendment to the Second
Amended and Restated Agreement of Limited Partnership, dated as of May 17, 2002,
and the Twentieth Amendment to the Second Amended and Restated Agreement of
Limited Partnership, dated as of January 1, 2003 (hereinafter referred to
collectively as the "Second Amended Agreement");

         WHEREAS, the General Partner desires to amend and restate in its
entirety the Second Amended Agreement pursuant to its authority under Sections
2.4 and 14.1.B of the Second

                                      - 2 -

<PAGE>

Amended Agreement and the powers of attorney granted to the General Partner by
the Limited Partners in order to (i) combine all of the provisions of the Second
Amended Agreement into one document, and (ii) make changes to provisions of the
Second Amended Agreement in accordance with Section 14.1.B(3) of the Second
Amended Agreement;

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt,
adequacy and sufficiency of which are hereby acknowledged, the parties hereto,
intending legally to be bound, hereby agree as follows:

                                   ARTICLE I
                                  DEFINED TERMS

         Except as otherwise herein expressly provided, the following terms and
phrases shall have the meanings set forth below:

         "Act" means the Delaware Revised Uniform Limited Partnership Act, as it
may be amended from time to time, and any successor to such statute.

         "Additional Funds" has the meaning set forth in Section 4.2.A hereof.

         "Additional Limited Partner" has the meaning set forth in Section 4.3
hereof.

         "Adjusted Capital Account" means the Capital Account maintained for
each Partner as of the end of each fiscal year (i) increased by any amounts
which such Partner is obligated to restore pursuant to any provision of this
Agreement or is treated as being obligated to restore pursuant to Regulations
Section 1.704-1(b)(2)(ii)(c) or is deemed to be obligated to restore pursuant to
the penultimate sentences of Regulations Sections 1.704-2(g)(1) and
1.704-2(i)(5) and (ii) decreased by the items described in Regulations Sections
1.704-1 (b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), and 1.704-1(b)(2)(ii)(d)(6).
The foregoing definition of Adjusted Capital Account is intended to comply with
the provisions of Regulations Section 1.704-l(b)(2)(ii)(d) and shall be
interpreted consistently therewith.

         "Adjusted Capital Account Deficit" means, with respect to any Partner,
the deficit balance, if any, in such Partner's Adjusted Capital Account as of
the end of the relevant fiscal year.

         "Adjusted Property" means any property the Carrying Value of which has
been adjusted pursuant to Section 1.D of Exhibit B hereof.

         "Adjustment Date" has the meaning set forth in Section 4.2.A(2) hereof.

         "Affiliate" means, with respect to any Person, any Person directly or
indirectly controlling, controlled by or under common control with such Person.

         "Agreement" means this Third Amended and Restated Agreement of Limited
Partnership, as it may be amended, supplemented or restated from time to time.

                                     - 3 -

<PAGE>

         "Amstar" means Amstar Continental Plaza Limited Partnership, a Colorado
limited partnership.

         "Amstar Required Cash Payment" means the "Required Cash Payment" as
defined in Article III of that certain Contribution Agreement dated February 8,
1994 between Amstar and the Partnership.

         "Assignee" means a Person to whom a Limited Partnership Interest has
been transferred in a manner permitted under this Agreement, but who has not
become a Substituted Limited Partner, and who has the rights set forth in
Sections 8.6, 11.3.A and 11.5.

         "Available Cash" means, with respect to any period for which such
calculation is being made, (i) the sum of:

                  A.       the Partnership's Net Income or Net Loss, as the case
         may be, for such period (without regard to adjustments resulting from
         allocations described in Section 1.A-E of Exhibit C),

                  B.       Depreciation and all other noncash charges deducted
         in determining Net Income or Net Loss for such period,

                  C.       the amount of any reduction in reserves of the
         Partnership referred to in clause (ii)(f) below (including, without
         limitation, reductions resulting because the General Partner determines
         such amounts are no longer necessary),

                  D.       the excess of proceeds from the sale, exchange,
         disposition, or refinancing of Partnership property during such period
         over the gain (or loss, as the case may be) recognized from such sale,
         exchange, disposition, or refinancing during such period (excluding
         Terminating Capital Transactions) as such items of gain or loss are
         determined in accordance with Section 1.B of Exhibit B, and

                  E.       all other cash received by the Partnership for such
         period, including cash contributions and loan proceeds (other than
         refinancing proceeds described in (d) above), that was not included in
         determining Net Income or Net Loss for such period;

         (ii)     less the sum of:

                  (a)      all principal debt payments made during such period
         by the Partnership,

                  (b)      capital expenditures made by the Partnership during
         such period,

                  (c)      investments in any entity (including loans made
         thereto) to the extent that such investments are not otherwise
         described in clauses (ii)(a) or (b),

                  (d)      all other expenditures and payments not deducted in
         determining Net Income or Net Loss for such period,

                                     - 4 -

<PAGE>

                  (e)      any amount included in determining Net Income or Net
         Loss for such period that was not received by the Partnership during
         such period, and

                  (f)      the amount of any increase in reserves (including,
         without limitation, working capital accounts or other cash or similar
         balances) established during such period which the General Partner
         determines are necessary or appropriate in its sole and absolute
         discretion.

         Notwithstanding the foregoing, Available Cash shall not include any
cash received or reductions in reserves, or take into account any disbursements
made or reserves established, after commencement of the dissolution and
liquidation of the Partnership.

         "Bankruptcy" of a Person shall be deemed to have occurred when (a) the
Person commences a voluntary proceeding seeking liquidation, reorganization or
other relief under any bankruptcy, insolvency or other similar law now or
hereafter in effect, (b) the Person is adjudged as bankrupt or insolvent, or a
final and nonappealable order for relief under any bankruptcy, insolvency or
similar law now or hereafter in effect has been entered against the Person, (c)
the Person executes and delivers a general assignment for the benefit of the
Person's creditors, (d) the Person files an answer or other pleading admitting
or failing to contest the material allegations of a petition filed against the
Person in any proceeding of the nature described in clause (b) above, (e) the
Person seeks, consents to or acquiesces in the appointment of a trustee,
receiver or liquidator for the Person or for all or any substantial part of the
Person's properties, (f) any proceeding seeking liquidation, reorganization or
other relief under any bankruptcy, insolvency or other similar law now or
hereafter in effect has not been dismissed within one hundred twenty (120) days
after the commencement thereof, (g) the appointment without the Person's consent
or acquiescence of a trustee, receiver or liquidator has not been vacated or
stayed within ninety (90) days of such appointment, or (h) an appointment
referred to in clause (g) is not vacated within ninety (90) days after the
expiration of any such stay.

         "Book-Tax Disparities" means, with respect to any item of Contributed
Property or Adjusted Property, as of the date of any determination, the
difference between the Carrying Value of such Contributed Property or Adjusted
Property and the adjusted basis thereof for federal income tax purposes as of
such date. A Partner's share of the Partnership's Book-Tax Disparities in all of
its Contributed Property and Adjusted Property will be reflected by the
difference between such Partner's Capital Account balance as maintained pursuant
to Exhibit B and the hypothetical balance of such Partner's Capital Account
computed as if it had been maintained strictly in accordance with federal income
tax accounting principles.

         "Business Day" means any day except a Saturday, Sunday or other day on
which banking institutions in the State of New York are authorized or obligated
by law or executive order to close.

         "Canyon Contribution Agreement" means that certain Contribution
Agreement, dated July 26, 1996, by and between the Partnership and Canyon Ranch.

         "Canyon Ranch" means Canyon Ranch, Inc. an Arizona corporation.

                                     - 5 -

<PAGE>

         "Canyon Ranch Property" means the property and assets specified in the
Canyon Contribution Agreement.

         "Capital Account" means the capital account maintained for a Partner
pursuant to Exhibit B hereof.

         "Capital Contribution" means, with respect to any Partner, any cash,
cash equivalents or the Net Asset Value of Contributed Property which such
Partner contributes to the Partnership.

         "Carrying Value" means (i) with respect to a Contributed Property or
Adjusted Property, the Gross Asset Value of such property reduced (but not below
zero) by all Depreciation with respect to such property charged to the Partners'
Capital Accounts and (ii) with respect to any other Partnership property, the
adjusted basis of such property for federal income tax purposes, all as of the
time of determination. The Carrying Value of any property shall be adjusted from
time to time in accordance with Exhibit B hereof, and to reflect changes,
additions or other adjustments to the Carrying Value for improvements and
dispositions and acquisitions of Partnership properties, as deemed appropriate
by the General Partner.

         "Cash Amount" means an amount of cash equal to the Value, as of the
date of receipt by Crescent Equities of a Notice of Exchange, of the REIT Shares
Amount. Notwithstanding the foregoing, if the Crescent Group raises the Cash
Amount through an offering of securities, borrowings or otherwise, the Cash
Amount shall be reduced by an amount equal to the expenses incurred by the
Crescent Group in connection with raising such funds (to the extent that such
expenses are allocable to funds used to pay the Cash Amount); provided, however,
that the total reduction of the Cash Amount for such expenses shall not exceed
five percent (5%) of the total Cash Amount as determined prior to reduction for
such expenses.

         "Certificate" means the Certificate of Limited Partnership of the
Partnership filed in the office of the Secretary of State of Delaware, as
amended from time to time in accordance with the terms hereof and the Act.

         "Code" means the Internal Revenue Code of 1986, as amended and in
effect from time to time, as interpreted by the applicable regulations
thereunder. Any reference herein to a specific section or sections of the Code
shall be deemed to include a reference to any corresponding provision of future
law.

         "Consultant Unit Agreement" means that certain Consultant Unit
Agreement, dated August 15, 1995, by and between Greenbrier and the Partnership.

         "Contributed Funds" has the meaning set forth in Section 4.2.A(2)
hereof

         "Contributed Property" means each property or other asset (but
excluding cash), in such form as may be permitted by the Act, contributed to the
Partnership. Once the Carrying Value of a Contributed Property is adjusted
pursuant to Section 1.D of Exhibit B hereof, such property shall no longer
constitute a Contributed Property for purposes of Exhibit B hereof, but shall be
deemed an Adjusted Property for such purposes.

         "Contribution Date" has the meaning set forth in Section 4.3 hereof.

                                     - 6 -

<PAGE>

         "Crescent Equities" means Crescent Real Estate Equities Company, a
Texas real estate investment trust.

         "Crescent Group" means Crescent Equities, the General Partner, and any
wholly owned subsidiaries of Crescent Equities or the General Partner.

         "Crescent Loan" has the meaning set forth in Section 4.2.A(1) hereof.

         "Declaration of Trust" means the Declaration of Trust of Crescent
Equities, as it may be amended, supplemented or restated from time to time.

         "Deemed Partnership Interest Value" as of any date shall mean, with
respect to a Partner, the product of (i) the Deemed Value of the Partnership as
of such date, multiplied by (ii) such Partner's Partnership Interest as of such
date.

         "Deemed Value of the Partnership" as of any date shall mean the
quotient of the following amounts:

         (i)      the product of (a) the Value of a REIT Share as of such date,
multiplied by (b) the total number of REIT Shares issued and outstanding as of
the close of business on such date (excluding treasury shares and, for purposes
of Section 4.2 hereof, excluding any REIT Shares issued in exchange for
Contributed Funds to be contributed to the Partnership by Crescent Equities on
the Adjustment Date for which the calculation is being made), divided by

         (ii)     the aggregate Partnership Interest of Crescent Equities and
the General Partner as of such date.

         "Demand Notice" has the meaning set forth in Section 16.2 hereof.

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

         "Employee Limited Partner" has the meaning set forth in Section 4.7.C
hereof.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
or any successor statute.

         "Exchange Factor" means, effective as of March 20, 1997 (the record
date on which the two-for-one stock split of Crescent Equities common shares was
effected in the form of a 100% share dividend), 2.0, provided that in the event
that Crescent Equities (i) pays a dividend on its

                                     - 7 -

<PAGE>

outstanding REIT Shares in REIT Shares or makes a distribution to all holders of
its outstanding REIT Shares in REIT Shares, (ii) subdivides its outstanding REIT
Shares, or (iii) combines its outstanding REIT Shares into a smaller number of
REIT Shares, the Exchange Factor shall be adjusted by multiplying the Exchange
Factor by a fraction, the numerator of which shall be the number of REIT Shares
that would be issued and outstanding on the record date for such event if such
dividend, distribution, subdivision or combination had occurred as of such date,
and the denominator of which shall be the actual number of REIT Shares issued
and outstanding on the record date for such dividend, distribution, subdivision
or combination. Any adjustment of the Exchange Factor shall become effective
immediately after the effective date of such event retroactive to the record
date for such event; provided, however, that if Crescent Equities receives a
Notice of Exchange after the record date, but prior to the effective date, of
any such event, the Exchange Factor shall be determined as if Crescent Equities
had received the Notice of Exchange immediately prior to the record date for
such event. From the date of inception of the Partnership, until March 26, 1997,
the Exchange Factor was 1.0.

         "Exchange Right" has the meaning set forth in Section 8.6 hereof.

         "Exchanging Person" has the meaning set forth in Section 8.6.A hereof.

         "Falcon Point Property" means the Falcon Point single family
residential development located in Houston, Texas.

         "First Amended Agreement" has the meaning set forth in the Recitals to
this Agreement.

         "Funding Loan Proceeds" means the net cash proceeds received by the
Crescent Group in Connection with any Funding Loan, after deduction of all costs
and expenses incurred by the Crescent Group in connection with such Funding
Loan.

         "Funding Loan(s)" means any borrowing or refinancing of borrowings by
or on behalf of the Crescent Group from any lender for the purpose of causing
Crescent Equities to advance the proceeds thereof to the Partnership as a loan
pursuant to Section 4.2.A(1) hereof.

         "General Partner" means Crescent Real Estate Equities, Ltd. (formerly
known as CRE General Partner, Inc.), a Delaware corporation which is a wholly
owned subsidiary of Crescent Equities, its duly admitted successors and assigns
and any other Person who is a General Partner at the time of reference thereto.

         "General Partnership Interest" means the Partnership Interest held by
the General Partner.

         "Greenbrier" means Texas Greenbrier Associates, Inc., a Texas
corporation.

         "Greenbrier Agreement" means that certain Agreement of Acceptance of
the Partnership Agreement executed by Greenbrier and delivered to the General
Partner.

         "Gross Asset Value" of any Contributed Property or Properties
contributed by a Partner to the Partnership in connection with the execution of
the First Amended Agreement means the Net Asset Value of such Contributed
Property or Properties as set forth in Exhibit A thereof, increased by any
liabilities either treated as assumed by the Partnership upon the contribution
of

                                     - 8 -
<PAGE>

such property or properties or to which such property or properties are treated
as subject when contributed pursuant to the provisions of Section 752 of the
Code. The Gross Asset Value of any other Contributed Property or Properties
means the fair market value of such property or properties at the time of
contribution as determined by the General Partner using such reasonable method
of valuation as it may adopt. The General Partner shall, in its sole and
absolute discretion, use such method as it deems reasonable and appropriate to
allocate the aggregate of the Gross Asset Value of Contributed Properties
contributed in a single or integrated transaction among the separate properties
on a basis proportional to their respective fair market values.

         "HA Development Corporation" means Houston Area Development Corp., a
Texas corporation that will own the Falcon Point Property and the Huntington
Woods Property.

         "Huntington Woods Property" means the Huntington Woods single family
residential development located in Houston, Texas.

         "Incapacity" or "Incapacitated" means, (i) as to any individual
Partner, death, total physical disability or entry of an order by a court of
competent jurisdiction adjudicating him incompetent to manage his Person or his
estate; (ii) as to any corporation which is a Partner, the filing of a
certificate of dissolution, or its equivalent, for the corporation or the
revocation of its charter; (iii) as to any partnership which is a Partner, the
dissolution and commencement of winding up of the partnership; (iv) as to any
estate which is a Partner, the distribution by the fiduciary of the estate's
entire interest in the Partnership; (v) as to any trustee of a trust which is a
Partner, the termination of the trust (but not the substitution of a new
trustee); or (vi) as to any Partner, the Bankruptcy of such Partner.

         "Indemnitee" means (i) any Person made a party to a proceeding by
reason of his status as (A) a member of the Crescent Group, (B) a director or
officer of the Partnership or of a member of the Crescent Group, or (C) an
attorney-in-fact of the General Partner acting pursuant to Section 7.9.C, and
(ii) such other Persons (including Affiliates of the General Partner or the
Partnership) as the General Partner may designate from time to time, in its sole
and absolute discretion.

         "Initial Agreement" has the meaning set forth in the Recitals to this
Agreement.

         "IRS" means the Internal Revenue Service, which administers the
internal revenue laws of the United States.

         "Lien" means any liens, security interests, mortgages, deeds of trust,
charges, claims, encumbrances, pledges, options, rights of first offer or first
refusal and any other rights or interests of any kind or nature, actual or
contingent, or other similar encumbrances of any nature whatsoever.

         "Limited Partner" means any Person named as a Limited Partner in
Exhibit A attached hereto, as such Exhibit may be amended from time to time, or
any Substituted Limited Partner, Additional Limited Partner, or Employee Limited
Partner, in such Person's capacity as a Limited Partner in the Partnership.

                                     - 9 -
<PAGE>

         "Limited Partnership Interest" means a Partnership Interest of a
Limited Partner in the Partnership and includes any and all benefits to which
the holder of such a Partnership Interest may be entitled as provided in this
Agreement, together with all obligations of such Person to comply with the terms
and provisions of this Agreement.

         "Liquidating Event(s)" has the meaning set forth in Section 13.1
hereof.

         "Liquidation Preferences" has the meaning set forth in Section 6.3.B
hereof.

         "Liquidator" has the meaning set forth in Section 13.2 hereof.

         "Management Company" means Crescent Development Management Corp., a
Texas corporation that will provide management services to the Mira Vista
Property, the Falcon Point Property, the Huntington Woods Property, and certain
other properties that may be acquired by the Partnership in the future. The
Partnership will own one (1) share of voting common stock and nine thousand
eight hundred and ninety-nine (9,899) shares of nonvoting common stock of the
Management Company.

         "Mira Vista Property" means the single family residential development
located in Fort Worth, Texas, and a ninety-eight percent (98%) interest in the
limited liability company that owns the adjacent Mira Visa Golf Club.

         "MV Development Corporation" means Mira Vista Development Corp., a
Texas corporation that will own the Mira Vista Property.

         "Net Asset Value" in the case of any Contributed Property contributed
by a Partner to the Partnership in connection with the execution of this
Agreement shall be determined on an aggregate basis with respect to all of the
properties contributed by such Partner to the Partnership, and means the
aggregate Gross Asset Values of such properties, reduced by any liabilities
either treated as assumed by the Partnership upon the contribution of such
properties or to which such properties are treated as subject when contributed
pursuant to the provisions of Section 752 of the Code. The aggregate Net Asset
Values of the properties contributed by each Partner to the Partnership in
connection with the execution of the First Amended Agreement are set forth in
Exhibit A thereof. In the case of any other Contributed Property and as of the
time of its contribution to the Partnership, Net Asset Value means the Gross
Asset Value of such property, reduced by any liabilities either treated as
assumed by the Partnership upon such contribution or to which such property is
treated as subject when contributed pursuant to Section 752 of the Code.

         "Net Income" means, for any taxable period, the excess, if any, of the
Partnership's items of income and gain for such taxable period over the
Partnership's items of loss and deduction for such taxable period. The items
included in the calculation of Net Income shall be determined in accordance with
Section 1.B of Exhibit B. Once an item of income, gain, loss or deduction that
has been included in the initial computation of Net Income is subjected to the
special allocation rules in Exhibit C, Net Income or the resulting Net Loss,
whichever the case may be, shall be recomputed without regard to such item.

                                     - 10 -
<PAGE>

         "Net Loss" means, for any taxable period, the excess, if any, of the
Partnership's items of loss and deduction for such taxable period over the
Partnership's items of income and gain for such taxable period. The items
included in the calculation of Net Loss shall be determined in accordance with
Section 1.B of Exhibit B. Once an item of income, gain, loss or deduction that
has been included in the initial computation of Net Loss is subjected to the
special allocation rules in Exhibit C, Net Loss or the resulting Net Income,
whichever the case may be, shall be recomputed without regard to such items.

         "New Interests" has the meaning set forth in Section 8.7.C hereof.

         "New Securities" has the meaning set forth in Section 8.7.C hereof.

         "Nonrecourse Built-in Gain" means, with respect to any Contributed
Properties or Adjusted Properties that are subject to a mortgage or negative
pledge securing a Nonrecourse Liability, the amount of any taxable gain that
would be allocated to the Partners pursuant to Section 2.B of Exhibit C if such
properties were disposed of in a taxable transaction in full satisfaction of
such liabilities and for no other consideration.

          "Nonrecourse Deductions" has the meaning set forth in Regulations
Section 1.704-2(b)(1), and the amount of Nonrecourse Deductions for a fiscal
year shall be determined in accordance with the rules of Regulations Section
1.704-2(c).

         "Nonrecourse Liability" has the meaning set forth in Regulations
Section 1.752-1(a)(2).

         "Non-Unitholder Partnership Interest" means a Limited Partnership
Interest that does not have Partnership Units associated therewith.

         "Notice of Exchange" means the Notice of Exchange substantially in the
form of Exhibit D to this Agreement.

         "Partner" means a General Partner or a Limited Partner, and "Partners"
means the General Partner and the Limited Partners.

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

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

         "Partner Nonrecourse Deductions" has the meaning set forth in
Regulations Section 1.704-2(i)(2), and the amount of Partner Nonrecourse
Deductions with respect to a Partner Nonrecourse Debt for a Partnership year
shall be determined in accordance with the rules of Regulations Section
1.704-2(i)(2).

         "Partnership" means the limited partnership formed under the Act and
pursuant to this Agreement.

                                     - 11 -
<PAGE>

         "Partnership Interest" means an ownership interest in the Partnership
representing a Capital Contribution by either a Limited Partner or the General
Partner and includes any and all benefits to which the holder of such a
Partnership Interest may be entitled as provided in this Agreement, together
with all obligations of such Person to comply with the terms and provisions of
this Agreement. The Partnership Interest of each Partner shall be expressed as a
percentage of the total Partnership Interests owned by all of the Partners, as
specified in Exhibit A attached hereto, as such Exhibit may be amended from time
to time. All Partnership Interests shall be calculated to the nearest one
millionth of one percent (0.000000%), with amounts equal to or greater than
0.0000005% being rounded up to the next one millionth of one percent, and with
amounts less than 0.0000005% being rounded down to the next one millionth of one
percent.

         "Partnership Minimum Gain" has the meaning set forth in Regulations
Section 1.704-2(b)(2), and the amount of Partnership Minimum Gain, as well as
any net increase or decrease in Partnership Minimum Gain, for a fiscal year
shall be determined in accordance with the rules of Regulations Section
1.704-2(d).

         "Partnership Record Date" means the record date established by the
General Partner for the distribution of Available Cash pursuant to Section 5.2
hereof, which record date shall be the same as the record date established by
Crescent Equities or otherwise pursuant to the Texas Act for a distribution to
its shareholders of some or all of its portion of such distribution.

         "Partnership Unit" means a unit representing the Exchange Rights
associated with the Partnership Interests issued to certain of the Limited
Partners pursuant to the terms of this Agreement, which unit may be exchanged
for REIT Shares or cash through the exercise of the Exchange Rights set forth in
Sections 8.6. The number of Partnership Units of each Limited Partner shall be
as specified in Exhibit A attached hereto, as such Exhibit may be amended from
time to time. The Partnership Units may be evidenced by certificates as set
forth in Section 4.1.C hereof.

         "Person" means an individual or a corporation, partnership, trust,
unincorporated organization, association or other entity.

         "Qualified Individual" has the meaning set forth in Section 16.2
hereof.

         "RainAm Investors" means RainAm Investment Properties Ltd., a Texas
limited partnership.

         "Recapture Income" means any gain recognized by the Partnership
(computed without regard to any adjustment required by Section 734 or Section
743 of the Code) upon the disposition of any property or asset of the
Partnership, which gain is characterized as ordinary income because it
represents the recapture of deductions previously taken with respect to such
property or asset.

         "Regulations" means the income tax regulations promulgated under the
Code, as such regulations may be amended from time to time (including
corresponding provisions of succeeding regulations).

         "Regulatory Allocations" has the meaning set forth in Section 1.H of
Exhibit C hereof.

                                     - 12 -
<PAGE>

         "REIT" means a real estate investment trust under Sections 856 through
860 of the Code.

         "REIT Share" means a common share of beneficial interest of Crescent
Equities.

         "REIT Shares Amount" means a number of REIT Shares equal to the product
of (i) the number of Partnership Units to be exchanged by an Exchanging Person
pursuant to Section 8.6, multiplied by (ii) the Exchange Factor; provided that
in the event Crescent Equities issues to all holders of REIT Shares rights,
options, warrants or convertible or exchangeable securities entitling the
shareholders to subscribe for or purchase REIT Shares, or any other securities
or property (collectively, the "rights"), then the REIT Shares Amount shall also
include such rights that a holder of that number of REIT Shares would be
entitled to receive.

         "Representative" has the meaning set forth in Section 7.12 hereof.

         "Requesting Party" has the meaning set forth in Section 16.2 hereof.

         "Residual Gain" or "Residual Loss" means any item of gain or loss, as
the case may be, of the Partnership recognized for federal income tax purposes
resulting from a sale, exchange or other disposition of Contributed Property or
Adjusted Property, to the extent such item of gain or loss is not allocable
pursuant to Section 2.B.1(a) or 2.B.2(a) of Exhibit C to eliminate Book-Tax
Disparities.

         "SEC" means the United States Securities and Exchange Commission.

         "Second Amended Agreement" has the meaning set forth in the Recitals to
this Agreement.

         "Securities Act" means the Securities Act of 1933, as amended, or any
successor statute.

         "Series A Preferred Partnership Units" means the preferred equity
ownership interests in the Partnership issued to Crescent Equities by the
Partnership in connection with the issuance by Crescent Equities of the Series A
Preferred Shares.

         "Series A Preferred Shares" means the 6-3/4% Series A Convertible
Cumulative Preferred Shares issued by Crescent Equities.

         "Series B Redeemable Preferred Partnership Units" means the preferred
equity ownership interests in the Partnership issued to Crescent Equities by the
Partnership in connection with the issuance by Crescent Equities of the Series B
Redeemable Preferred Shares.

         "Series B Redeemable Preferred Shares" means the Series B Cumulative
Redeemable Preferred Shares issued by Crescent Equities.

         "Sonoma" means Rahn Sonoma, Ltd., a Florida limited partnership.

         "Sonoma Contribution Agreement" means that certain Contribution
Agreement, dated September 13, 1996, by and among Crescent Real Estate Equities,
Inc., the Partnership, Sonoma, Peter H. Roberts and John H. Anderson.

                                     - 13 -
<PAGE>

         "Sonoma Property" means the property and assets specified in the Sonoma
Contribution Agreement.

         "Specified Exchange Date" means the tenth Business Day after receipt by
Crescent Equities of a Notice of Exchange, unless applicable law requires a
later date. Notwithstanding the foregoing, if Crescent Equities elects to pay
all or any portion of the consideration to an Exchanging Person in cash, the
Specified Exchange Date may be extended for an additional period to the extent
required for the Crescent Group to raise the funds required to pay the cash
consideration to the Exchanging Person.

         "Stock Incentive Plan" means The 1994 Crescent Real Estate Equities,
Inc. Stock Incentive Plan, as amended from time to time, or any other stock
incentive plan adopted by Crescent Equities.

         "Subsidiary Development Corporation(s)" means MV Development
Corporation and HA Development Corporation, and either of them.

         "Substituted Limited Partner" means a Person who is admitted as a
Limited Partner to the Partnership pursuant to Section 11.4.

         "Terminating Capital Transaction" means any sale or other disposition
of all or substantially all of the assets of the Partnership or a related series
of transactions that, taken together, result in the sale or other disposition of
all or substantially all of the assets of the Partnership.

         "Texas Act" means the Texas Real Estate Investment Trust Act, as the
same may be amended from time to time, or any successor statute thereto.

         "Trading Day" means a day on which the principal national securities
exchange on which the REIT Shares are listed or admitted to trading is open for
the transaction of business or, if the REIT Shares are not listed or admitted to
trading, means a Business Day.

         "Transaction" has the meaning set forth in Section 11.2.B hereof.

         "Unrealized Gain" attributable to any item of Partnership property
means, as of any date of determination, the excess, if any, of (i) the fair
market value of such property (as determined under Exhibit B hereof) as of such
date, over (ii) the Carrying Value of such property (prior to any adjustment to
be made on such date pursuant to Exhibit B hereof) as of such date.

         "Unrealized Loss" attributable to any item of Partnership property
means, as of any date of determination, the excess, if any, of (i) the Carrying
Value of such property (prior to any adjustment to be made on such date pursuant
to Exhibit B hereof) as of such date, over (ii) the fair market value of such
property (as determined under Exhibit B hereof) as of such date.

         "Value" means, with respect to a REIT Share as of any date, the average
of the "closing price" for the ten (10) consecutive Trading Days immediately
preceding such date (except as provided to the contrary in Sections 4.2, 4.3 and
4.6 hereof). The "closing price" for each such Trading Day means the last sale
price, regular way on such day, or, if no such sale takes place on

                                     - 14 -
<PAGE>

that day, the average of the closing bid and asked prices on that day, regular
way, in either case as reported on the principal consolidated transaction
reporting system with respect to securities listed or admitted to trading on the
New York Stock Exchange, or if the REIT Shares are not so listed or admitted to
trading, as reported in the principal consolidated transaction reporting system
with respect to securities listed on the principal national securities exchange
(including the National Market System of the National Association of Securities
Dealers, Inc. Automated Quotation System) on which the REIT Shares are listed or
admitted to trading or, if the REIT Shares are not so listed or admitted to
trading, the last quoted price or, if not quoted, the average of the high bid
and low asked prices in the over-the-counter market, as reported by the National
Association of Securities Dealers, Inc. Automated Quotation System or, if such
system is no longer in use, the principal automated quotation system then in use
or, if the REIT Shares are not so quoted by any such system, the average of the
closing bid and asked prices as furnished by a professional market maker
selected by the board of directors of the General Partner making a market in the
REIT Shares, or, if there is no such market maker or such closing prices
otherwise are not available, the fair market value of the REIT Shares as of such
day, as determined by the board of directors of the General Partner in its sole
discretion. In the event Crescent Equities issues to all holders of REIT Shares
rights, options, warrants or convertible or exchangeable securities entitling
the shareholders to subscribe for or purchase REIT Shares or any other property,
then the Value of a REIT Share shall include the value of such rights, as
determined by the board of directors of the General Partner acting in good faith
on the basis of such quotations and other information as it considers, in its
reasonable judgment, appropriate.

                                   ARTICLE II
                             ORGANIZATIONAL MATTERS

         Section 2.1       Continuation of Partnership

         The Partners hereby continue the Partnership as a limited partnership
pursuant to the provisions of the Act and upon the terms and conditions set
forth in this Agreement. Except as expressly provided herein to the contrary,
the rights and obligations of the Partners and the administration and
termination of the Partnership shall be governed by the Act. The Partnership
Interest of each Partner shall be personal property for all purposes.

         Section 2.2       Name

         The name of the Partnership is Crescent Real Estate Equities Limited
Partnership. The Partnership's business may be conducted under any other name or
names deemed advisable by the General Partner, including the name of the General
Partner or any Affiliate thereof. The words "Limited Partnership," "L.P." "Ltd."
or similar words or letters shall be included in the Partnership's name where
necessary for purposes of complying with the laws of any jurisdiction that so
requires. The General Partner in its sole and absolute discretion may change the
name of the Partnership at any time and from time to time and shall notify the
Limited Partners of such change in the regular communication to the Limited
Partners next succeeding the effectiveness of the change of name.

                                     - 15 -
<PAGE>

         Section 2.3       Principal Office and Registered Agent

         The principal office of the Partnership is 777 Main Street, Suite 2100,
Fort Worth, Texas 76102, or such other place as the General Partner may from
time to time designate. The registered agent of the Partnership is The
Prentice-Hall Corporation System, Inc., located at 1013 Centre Road, in the city
of Wilmington, County of New Castle, Delaware 19805, or such other Person as the
General Partner may from time to time designate. The Partnership may maintain
offices at such other place or places within or outside the State of Delaware as
the General Partner deems advisable.

         Section 2.4       Power of Attorney

                  A.       Each Limited Partner constitutes and appoints the
General Partner, any Liquidator, and authorized officers and attorneys-in-fact
of each, and each of those acting singly, in each case with full power of
substitution, as its true and lawful agent and attorney-in-fact, with full power
and authority in its name, place and stead to:

                  (1)      execute, swear to, acknowledge, deliver, file and
                           record in the appropriate public offices (a) all
                           certificates, documents and other instruments
                           (including, without limitation, the Certificate and
                           all amendments or restatements of this Agreement or
                           the Certificate) that the General Partner or the
                           Liquidator deems appropriate or necessary to qualify
                           or continue the existence or qualification of the
                           Partnership as a limited partnership (or a
                           partnership in which the limited partners have
                           limited liability) in the State of Delaware and in
                           all other jurisdictions in which the Partnership may
                           conduct business or own property; (b) all instruments
                           that the General Partner deems appropriate or
                           necessary to reflect any amendment, change,
                           modification or restatement of this Agreement made in
                           accordance with its terms; (c) all conveyances and
                           other instruments or documents that the General
                           Partner or Liquidator, as the case may be, deems
                           appropriate or necessary to reflect the dissolution
                           and liquidation of the Partnership pursuant to the
                           terms of this Agreement, including, without
                           limitation, a certificate of cancellation; and (d)
                           all instruments relating to the Capital Contribution
                           of any Partner or the admission, withdrawal, removal
                           or substitution of any Partner made pursuant to the
                           terms of this Agreement; and

                  (2)      execute, swear to, acknowledge and file all ballots,
                           consents, approvals, waivers, certificates and other
                           instruments appropriate or necessary, in the sole and
                           absolute discretion of the General Partner, to make,
                           evidence, give, confirm or ratify any vote, consent,
                           approval, agreement or other action which is made or
                           given by the Partners hereunder or is consistent with
                           the terms of this Agreement or appropriate or
                           necessary, in the sole discretion of the General
                           Partner, to effectuate the terms or intent of this
                           Agreement.

                                     - 16 -
<PAGE>

Nothing contained herein shall be construed as authorizing the General Partner
to amend this Agreement except in accordance with Article 14 hereof or as may be
otherwise expressly provided for in this Agreement.

                  B.       The foregoing power of attorney is hereby declared to
be irrevocable and a power coupled with an interest, in recognition of the fact
that each of the Partners will be relying upon the power of the General Partner
to act as contemplated by this Agreement in any filing or other action by it on
behalf of the Partnership, and it shall survive and not be affected by the
subsequent Incapacity of any Limited Partner or the transfer of all or any
portion of such Limited Partner's Partnership Interest and shall extend to such
Limited Partner's heirs, successors, assigns and personal representatives. Each
such Limited Partner hereby agrees to be bound by any representation made by the
General Partner, acting in good faith pursuant to such power of attorney; and
each such Limited Partner hereby waives any and all defenses which may be
available to contest, negate or disaffirm the action of the General Partner,
taken in good faith under such power of attorney. Each Limited Partner shall
execute and deliver to the General Partner or the Liquidator, within fifteen
(15) days after receipt of the General Partner's or Liquidator's request
therefor, such further designation, powers of attorney and other instruments as
the General Partner or the Liquidator, as the case may be, deems necessary to
effectuate this Agreement and the purposes of the Partnership.

         Section 2.5       Term

         The term of the Partnership commenced on February 9, 1994, and shall
continue until December 3 1, 2093, unless it is dissolved sooner pursuant to the
provisions of Article 13 or as otherwise provided by law.

                                   ARTICLE III
                                     PURPOSE

         Section 3.1       Purpose and Business

         The purpose and nature of the business to be conducted by the
Partnership is (i) to conduct any business that may be lawfully conducted by a
limited partnership organized pursuant to the Act, including, without
limitation, to acquire, hold, own, develop, construct, improve, maintain,
operate, sell, lease, transfer, encumber, convey, exchange, and otherwise
dispose of or deal with real and personal property of all kinds; to acquire
stock ownership interests in and to exercise all of the powers of a stockholder
in the Subsidiary Development Corporations and the Management Company; (ii) to
enter into any partnership, joint venture or other similar arrangement to engage
in any of the foregoing or the ownership of interests in any entity engaged in
any of the foregoing; and to exercise all of the powers of an owner in any such
entity; and (iii) to do anything necessary, appropriate, proper, advisable,
desirable, convenient or incidental to the foregoing; provided, however, that
such business shall be limited to and conducted in such a manner as to permit
Crescent Equities at all times to qualify as a REIT, unless Crescent Equities
voluntarily terminates its REIT status pursuant to its Declaration of Trust. In
connection with the foregoing, and without limiting Crescent Equities' right in
its sole discretion to cease qualifying as a REIT, the Partners acknowledge that
Crescent Equities'

                                     - 17 -
<PAGE>

current status as a REIT inures to the benefit of all the Partners and not
solely the Crescent Group.

         Section 3.2       Powers

         Subject to all of the terms, covenants, conditions and limitations
contained in this Agreement and any other agreement entered into by the
Partnership, the Partnership shall have full power and authority to do any and
all acts and things necessary, appropriate, proper, advisable, desirable,
incidental to or convenient for the furtherance and accomplishment of the
purposes and business described herein and for the protection and benefit of the
Partnership, including, without limitation, full power and authority, directly
or through its ownership interest in other entities, to enter into, perform and
carry out contracts of any kind, borrow money and issue evidences of
indebtedness, whether or not secured by mortgage, deed of trust, pledge or other
lien, acquire and develop real property, and lease, sell, transfer or otherwise
dispose of real property; provided, however, that the Partnership shall not
take, or refrain from taking, any action which, in the judgment of General
Partner, in its sole and absolute discretion, (i) could adversely affect the
ability of Crescent Equities to achieve or maintain qualification as a REIT,
(ii) could subject Crescent Equities to any additional taxes under Section 857
or Section 4981 of the Code, or (iii) could violate any law or regulation of any
governmental body or agency having jurisdiction over Crescent Equities or its
securities, unless such action (or inaction) shall have been specifically
consented to by the General Partner in writing.

                                   ARTICLE IV
                              CAPITAL CONTRIBUTIONS

         Section 4.1       Capital Contributions of the Partners

                  A.       Each Partner listed in Exhibit A has previously made
a Capital Contribution to the Partnership as specified in the First Amended
Agreement or in the Second Amended Agreement, as the case may be, in exchange
for its Partnership Units and Partnership Interest set forth in Exhibit A.

                  B.       The Partners shall own Partnership Units in the
amounts set forth in Exhibit A and shall have Partnership Interests in the
Partnership as set forth in Exhibit A, which Partnership Units and Partnership
Interests shall be adjusted in Exhibit A from time to time by the General
Partner to the extent necessary to reflect accurately the exercise of Exchange
Rights, Capital Contributions, transfers of Partnership Interests, admissions of
Additional Limited Partners or Employee Limited Partners, or similar events.
Except as provided in Section 10.5, or as a result of directly paying any
Partnership debt, the Partners shall have no obligation to make any additional
Capital Contributions or loans to the Partnership.

                  C.       The interest of each Limited Partner in Partnership
Units may be evidenced by one or more certificates in such form as the General
Partner may from time to time prescribe. Upon surrender to the General Partner
of a certificate evidencing the ownership of Partnership Units accompanied by
proper evidence of authority to transfer, the General Partner shall cancel the
old certificate, issue a new certificate to the Person entitled thereto and
record the transaction upon its books. The transfer of Partnership Units may be
effectuated only in

                                     - 18 -
<PAGE>

connection with a transfer of a Limited Partnership Interest pursuant to the
terms of Section 8.6 or Article 11 hereof. The General Partner may issue a new
certificate or certificates in place of any certificate or certificates
previously issued, which previously-issued certificate or certificates are
alleged to have been lost, stolen or destroyed, upon the making of an affidavit
of that fact by the owner claiming the certificate or certificates to be lost,
stolen or destroyed. When issuing such new certificate or certificates, the
General Partner may, in its discretion and as a condition precedent to the
issuance thereof, require the owner of such lost, stolen or destroyed
certificate or certificates, or its legal representative, to give the
Partnership a bond in such sum as the General Partner may direct as indemnity
against any claim that may be made against the Partnership with respect to the
certificate or certificates alleged to have been lost, stolen or destroyed.

         Section 4.2       Additional Funding

                  A.       If the General Partner determines that it is in the
best interests of the Partnership to provide for additional Partnership funds
("Additional Funds") for any Partnership purpose in excess of any other funds
determined by the General Partner to be available to the Partnership, the
General Partner (i) may cause the Partnership to obtain such funds from outside
borrowings, (ii) may cause the Partnership to obtain such funds by the admission
of Additional Limited Partners pursuant to Section 4.3 hereof, or (iii) may
elect to have Crescent Equities provide such Additional Funds to the
Partnership. On any date that Crescent Equities provides Additional Funds to the
Partnership (the "Funding Date"):

                  (1)      to the extent the General Partner elects to borrow
                           all or any portion of the Additional Funds through a
                           Funding Loan, the General Partner shall cause
                           Crescent Equities to lend (the "Crescent Loan") to
                           the Partnership the Funding Loan Proceeds on
                           comparable terms and conditions, including interest
                           rate, repayment schedule and costs and expenses, as
                           shall be applicable with respect to or incurred in
                           connection with the Funding Loan; or

                  (2)      to the extent the General Partner does not elect to
                           borrow all or any portion of the Additional Funds by
                           entering into a Funding Loan, the General Partner
                           shall cause Crescent Equities to contribute to the
                           Partnership as an additional Capital Contribution the
                           amount of the Additional Funds not loaned to the
                           Partnership as a Crescent Loan (the "Contributed
                           Funds") (hereinafter, each Funding Date on which
                           Crescent Equities so contributes Contributed Funds
                           pursuant to this subparagraph (2) is referred to as
                           an "Adjustment Date"). The Crescent Group may raise
                           such Contributed Funds through a private placement or
                           public offering of REIT Shares or otherwise. The
                           Partnership shall assume or pay the expenses,
                           including any applicable underwriting discounts
                           incurred by the Crescent Group in connection with
                           raising such Contributed Funds through a private
                           placement or public offering of its securities or
                           otherwise (i.e., Crescent Equities shall be treated
                           as contributing to the Partnership as Contributed
                           Funds the gross amount of funds raised, and the
                           Partnership shall be charged with the cost of raising
                           such funds, with

                                     - 19 -
<PAGE>

                           such cost allocated to all of the Partners in
                           accordance with Article VI of the Agreement).

                  B.       Effective on each Adjustment Date, Crescent Equities
shall receive an additional Partnership Interest (and the Partnership Interest
of each Limited Partner other than Crescent Equities shall be reduced) such
that:

                           (1)      the Partnership Interest of each Limited
Partner not owning Partnership Units (other than Crescent Equities) shall be
equal to a fraction, the numerator of which is equal to the Deemed Partnership
Interest Value of such Limited Partner (computed as of the Business Day
immediately preceding the Adjustment Date) and the denominator of which is equal
to the sum of (i) the Deemed Value of the Partnership (computed as of the
Business Day immediately preceding the Adjustment Date) and (ii) the amount of
Contributed Funds contributed by Crescent Equities on such Adjustment Date;

                           (2)      the combined Partnership Interest of
Crescent Equities and the General Partner shall be equal to a fraction, the
numerator of which is equal to the sum of (i) the combined Deemed Partnership
Interest Value of Crescent Equities and the General Partner (computed as of the
Business Day immediately preceding the Adjustment Date) and (ii) the amount of
the Contributed Funds contributed by Crescent Equities on such Adjustment Date
and the denominator of which is equal to the sum of (x) the Deemed Value of the
Partnership (computed as of the Business Day immediately preceding the
Adjustment Date) and (y) the amount of the Contributed Funds contributed by
Crescent Equities on such Adjustment Date. The Partnership Interest of the
General Partner shall remain one percent (1%), and the Partnership Interest of
Crescent Equities shall be equal to the combined Partnership Interest determined
in clause (2) of the preceding sentence, reduced by one percentage point (1%);
and

                           (3)      the Partnership Interest of each Limited
Partner owning Partnership Units shall be equal to the product of the following:
(i) the difference obtained from subtracting (x) the sum of the combined
Partnership Interest of Crescent Equities and the General Partner as calculated
in Section 4.2.B(2) hereof, plus the aggregate Non-Unitholder Partnership
Interests as calculated in Section 4.2.B(1) hereof, from (y) one hundred percent
(100%), and (ii) a fraction, the numerator of which is equal to the number of
Partnership Units held by such Limited Partner on such Adjustment Date, and the
denominator of which is equal to the total number of Partnership Units held by
all Limited Partners on such Adjustment Date.

         The General Partner shall be authorized on behalf of each of the
Partners to amend this Agreement to reflect the increase in the Partnership
Interest of Crescent Equities and the corresponding reduction of the Partnership
Interests of the other Limited Partners in accordance with the provisions of
this Section 4.2. The number of Partnership Units owned by the Limited Partners
and Assignees shall not be decreased in connection with any additional
contribution of funds to the Partnership by Crescent Equities pursuant to this
Section 4.2. Notwithstanding anything to the contrary contained in this
Agreement, for purposes of calculating the "Deemed Value of the Partnership" and
the "Deemed Partnership Interest Value" under this Section 4.2.B with respect to
cash amounts raised by Crescent in a private placement or public offering of
REIT Shares and contributed to the Partnership as Contributed Funds, the Value"
of a REIT Share shall be the gross offering price (prior to deduction of any
expenses, including without

                                     - 20 -
<PAGE>

limitation selling commissions or underwriting discounts) per REIT Share sold in
the private placement or public offering.

                  C.       The Partners hereby acknowledge and agree that any
Additional Funds provided by the Crescent Group (through Crescent Equities) to
the Partnership pursuant to this Section 4.2 may be in the form of real property
or an interest therein rather than cash. In the event that real property or an
interest therein is contributed by Crescent Equities to the Partnership pursuant
to this Section 4.2:

                           (1)      to the extent that the consideration given
in exchange for such real property or interest therein is in the form of
indebtedness, Crescent Equities shall be deemed to have made a Crescent Loan to
the Partnership pursuant to Section 4.2.A(1) hereof in an amount equal to the
amount of such indebtedness; and

                           (2)      to the extent that the consideration given
in exchange for such real property or interest therein is in the form of cash or
REIT Shares, (i) Crescent Equities shall be deemed to have contributed
Contributed Funds to the Partnership pursuant to Section 4.2.A(2) hereof in an
amount equal to the amount of cash or the Value (computed as of the Business Day
immediately preceding the date on which such real property or interest therein
is contributed to the Partnership) of the REIT Shares given as consideration,
and (ii) the Partnership Interests of the Limited Partners shall be adjusted as
set forth in Section 4.2.B hereof.

To the extent that the consideration given for such real property or interest
therein is New Securities, the provisions of Section 8.7.C hereof shall apply to
the contribution of the real property or interest therein by Crescent Equities
to the Partnership.

         Section 4.3       Issuance of Additional Partnership Interests

         At any time after the date hereof, without the consent of any Partner,
but subject to the provisions of Section 12.2 hereof, the General Partner may,
upon its determination that the issuance of additional Partnership Interests is
in the best interests of the Partnership, cause the Partnership to issue
Partnership Interests to and admit as a limited partner in the Partnership, any
Person (the "Additional Limited Partner") in exchange for the contribution by
such Person of cash and/or property in such amounts as is determined appropriate
by the General Partner to further the purposes of the Partnership under Section
3.1 hereof. In the event that an Additional Limited Partner is admitted to the
Partnership pursuant to this Section 4.3:

                  (1)      if the Additional Limited Partner does not receive
                           any Partnership Units in connection with the receipt
                           of his or its Partnership Interest, the Partnership
                           Interest of such Additional Limited Partner shall be
                           equal to a fraction, the numerator of which is equal
                           to the total dollar amount of the cash contributed
                           and/or the Net Asset Value of the property
                           contributed by the Additional Limited Partner as of
                           the date of contribution to the Partnership (the
                           "Contribution Date") and the denominator of which is
                           equal to the sum of (i) the Deemed Value of the
                           Partnership (computed as of the Business Day
                           immediately preceding the Contribution Date) and (ii)
                           the total dollar amount of the cash contributed
                           and/or the Net Asset Value

                                     - 21 -
<PAGE>

                           of the property contributed by the Additional Partner
                           as of the Contribution Date;

                  (2)      the Partnership Interest of Crescent Equities shall
                           be reduced, as of the Contribution Date, such that
                           the combined Partnership Interest of Crescent
                           Equities and the General Partner shall be equal to a
                           fraction, the numerator of which is equal to the
                           combined Deemed Partnership Interest Value of
                           Crescent Equities and the General Partner (computed
                           as of the Business Day immediately preceding the
                           Contribution Date) and the denominator of which is
                           equal to the sum of (i) the Deemed Value of the
                           Partnership (computed as of the Business Day
                           immediately preceding the Contribution Date) and (ii)
                           the total dollar amount of the cash contributed
                           and/or the Net Asset Value of the property
                           contributed by the Additional Limited Partner as of
                           the Contribution Date (with the Partnership Interest
                           of the General Partner remaining at one percent (1%),
                           and the Partnership Interest of Crescent Equities
                           equal to the combined Partnership Interest determined
                           above in this Section 4.3(2), reduced by one
                           percentage point (1%));

                  (3)      the Partnership Interest of each existing Limited
                           Partner not owning Partnership Units (other than
                           Crescent Equities) shall be reduced, as of the
                           Contribution Date, such that the Partnership Interest
                           of each such Limited Partner shall be equal to a
                           fraction, the numerator of which is equal to the
                           Deemed Partnership Interest Value of such Limited
                           Partner (computed as of the Business Day immediately
                           preceding the Contribution Date) and the denominator
                           of which is equal to the sum of (i) the Deemed Value
                           of the Partnership (computed as of the Business Day
                           immediately preceding the Contribution Date) and (ii)
                           the total dollar amount of the cash contributed
                           and/or the Net Asset Value of the property
                           contributed by the Additional Limited Partner as of
                           the Contribution Date; and

                  (4)      The Partnership Interest of each existing Limited
                           Partner owning Partnership Units and of the
                           Additional Limited Partner, if such Additional
                           Partner receives Partnership Units in connection with
                           the receipt of his or its Partnership Interest, shall
                           be equal to the product of the following: (i) the
                           difference obtained from subtracting (x) the sum of
                           the combined Partnership Interest of Crescent
                           Equities and the General Partner as calculated in
                           Section 4.3(2) hereof, plus the aggregate
                           Non-Unitholder Partnership Interests as calculated in
                           Sections 4.2(1) and (3) hereof, from (y) one hundred
                           percent (100%), and (ii) a fraction, the numerator of
                           which is equal to the number of Partnership Units
                           held by such Limited Partner on such Contribution
                           Date, and the denominator of which is equal to the
                           total number of Partnership Units held by all Limited
                           Partners (including the Additional Limited Partner)
                           on such Contribution Date.

                                     - 22 -
<PAGE>

         The General Partner shall be authorized on behalf of each of the
Partners to amend this Agreement to reflect the admission of any Additional
Limited Partner and any reduction of the Partnership Interests of the other
Limited Partners in accordance with the provisions of this Section 4.3.

         The number of Partnership Units owned by the Limited Partners and
Assignees shall not be decreased in connection with any admission of an
Additional Limited Partner pursuant to this Section 4.3. The General Partner may
(but is not required to) grant to an Additional Limited Partner Partnership
Units, which Partnership Units shall enable the Additional Limited Partner to
participate in the Exchange Rights, upon such terms and conditions as are deemed
appropriate by the General Partner. Notwithstanding anything to the contrary
contained in this Agreement, if the value of the Partnership Units granted to an
Additional Limited Partner is determined based on the average of the "closing
price" of a REIT Share for a period of time other than the ten (10)-day period
specified in the Article I definition of "Value" (including, without limitation,
a determination based on the "closing price" of a REIT Share for the Trading Day
immediately preceding the admission of such Additional Limited Partner), then
such other time period shall be used in calculating the "Value" of a REIT Share
for purposes of calculating the "Deemed Value of the Partnership" and the
"Deemed Partnership Interest Value" under this Section 4.3 with respect to the
admission of such Additional Limited Partner.

         Section 4.4       No Preemptive Rights

         Except as otherwise set forth in Section 4.2.A, no Person shall have
any preemptive, preferential or other similar right with respect to the making
of additional Capital Contributions or loans to the Partnership.

         Section 4.5       No Interest on Capital

         No Partner shall be entitled to interest on its Capital Contribution or
its Capital Account.

         Section 4.6       Stock Incentive Plans

                  A.       Grants of REIT Shares. If grants of REIT Shares are
made in connection with a Stock Incentive Plan,

                           (1)      Crescent Equities shall, as soon as
practicable after such grant, contribute to the capital of the Partnership an
amount equal to the price (if any) paid to Crescent Equities by the party
receiving the grant of REIT Shares;

                           (2)      Crescent Equities shall, as of the date on
which the grant of REIT Shares is made, be deemed to have contributed to the
Partnership as Contributed Funds pursuant to Section 4.2.A(2) hereof an amount
equal to the fair market value (computed using the "closing price" (as such term
is defined in the definition of the term "Value" in Article I hereof) as of the
date on which the grant of REIT Shares is made) of the REIT Shares delivered by
Crescent Equities to such party; and

                           (3)      the General Partner's Partnership Interest
shall remain unchanged, and the Partnership Interests of Crescent Equities and
the other Limited Partners shall be

                                     - 23 -
<PAGE>

adjusted as set forth in Section 4.2, based on the amount deemed to be
contributed, determined pursuant to Section 4.6.A(2); provided that, for
purposes of calculating the "Deemed Value of the Partnership" and the "Deemed
Partnership Interest Value" under Section 4.2, the "Value" of a REIT Share shall
be the "closing price" (as such term is defined in the definition of the term
Value" in Article I hereof) of a REIT Share as of the date on which the grant of
REIT Shares is made.

                  B.       Exercise of Stock Options. If stock options granted
in connection with a Stock Incentive Plan are exercised:

                           (1)      Crescent Equities shall, as soon as
practicable after such exercise, contribute to the capital of the Partnership an
amount equal to the exercise price paid to Crescent Equities by the exercising
party;

                           (2)      Crescent Equities shall, as of the date on
which the purchase of the REIT Shares is consummated by such exercising party,
be deemed to have contributed to the Partnership as Contributed Funds pursuant
to Section 4.2.A(2) hereof an amount equal to the fair market value (computed
using the "closing price" (as such term is defined in the definition of "Value"
in Article I hereof) as of the date on which such purchase of REIT Shares is
consummated by such exercising party) of the REIT Shares delivered by Crescent
Equities to such exercising party; and

                           (3)      the General Partner's Partnership Interest
shall remain unchanged, and the Partnership Interests of Crescent Equities and
the other Limited Partners shall be adjusted as set forth in Section 4.2, based
on the amount deemed to be contributed, determined pursuant to Section 4.6.B(2);
provided that, for purposes of calculating the "Deemed Value of the Partnership"
and the "Deemed Partnership Interest Value" under Section 4.2, the "Value" of a
REIT Share shall be the "closing price" (as such term is defined in the
definition of the term "Value" in Article I hereof) of a REIT Share as of the
date on which the purchase of REIT Shares is consummated by the exercising
party.

         Section 4.7       Other Equity Compensation Plans

                  A.       The Partnership may adopt a compensation plan for its
employees, agents or consultants pursuant to which the Partnership may grant
Limited Partnership Interests (including Partnership Units, which Partnership
Units shall enable the Limited Partner to participate in the Exchange Rights),
or options to acquire Limited Partnership Interests (including Partnership
Units, which Partnership Units shall enable the Limited Partner to participate
in the Exchange Rights), to one or more of its employees, agents or consultants
upon such terns and conditions as may be deemed necessary or appropriate by the
General Partner.

                  B.       The Management Company may adopt a compensation plan
for its employees, agents or consultants pursuant to which the Management
Company may grant Limited Partnership Interests (including Partnership Units,
which Partnership Units shall enable the Limited Partner to participate in the
Exchange Rights), or options to acquire Limited Partnership Interests (including
Partnership Units, which Partnership Units shall enable the Limited Partner to
participate in the Exchange Rights), to one or more of its employees, agents or

                                     - 24 -
<PAGE>

consultants. The Partnership may sell Limited Partnership Interests (including
Partnership Units, which Partnership Units shall enable the Limited Partner to
participate in the Exchange Rights) to the Management Company for delivery to
its employees, agents or consultants. The price at which the Partnership shall
sell such Partnership Interests to the Management Company shall be the fair
market value of such Partnership Interests, as determined by the General Partner
in its reasonable discretion.

                  C.       Upon any admission of an employee, agent or
consultant of the Partnership or the Management Company as an additional Limited
Partner (an "Employee Limited Partner") pursuant to Section 4.7.A or 4.7.B
above, the Partnership Interests of the other Partners shall be diluted, on a
pro rata basis, in proportion to their respective Partnership Interests, to
reflect the admission of the Employee Limited Partner. Notwithstanding the
foregoing, the Partnership Interest of the General Partner shall not be diluted
upon the admission of the Employee Limited Partner; any dilution that would
otherwise occur with respect to the Partnership Interest of the General Partner
in accordance with the terms of the preceding sentence shall be allocated
instead to Crescent Equities. The number of Partnership Units owned by the
Limited Partners and Assignees shall not be decreased in connection with any
admission of an Employee Limited Partner.

                  D.       In addition to the compensation plans described in
Sections 4.6, 4.7.A and 4.7.B hereof, the General Partner, in its sole and
absolute discretion and without the approval of the Limited Partners, may
propose and adopt on behalf of the Partnership employee benefit plans or other
incentive compensation plans (including, without limitation, plans granting REIT
Shares or options to purchase REIT Shares, plans granting Partnership Interests
(including Partnership Units) or options to purchase Partnership Interests
(including Partnership Units), "phantom" equity plans or other plans in which
compensation is tied to revenue or income amounts, or based on increases in the
market value of equity ownership interests) for the benefit of employees, agents
or consultants of any member of the Crescent Group, the Partnership, the
Management Company, the Subsidiary Development Corporation(s) or any Affiliate
of the foregoing in respect of services performed, directly or indirectly, for
the benefit of the Crescent Group, the Partnership, the Management Company or
the Subsidiary Development Corporation(s).

                  E.       Notwithstanding anything to the contrary contained
above in this Section 4.7, upon any admission of an Employee Limited Partner
pursuant to Section 4.7.A or 4.7.B above:

                  (1)      If the admission is made in connection with a grant
                           of Partnership Units to an Employee Limited Partner,
                           (a) the Employee Limited Partner shall, as of the
                           date on which the grant of the Partnership Units is
                           made, be deemed to have contributed to the
                           Partnership pursuant to Section 4.3 hereof an amount
                           equal to the fair market value of the Partnership
                           Units delivered to such Employee Limited Partner
                           (computed by calculating the product of the following
                           three items: (i) the number of Partnership Units
                           delivered to such Employee Limited Partner,
                           multiplied by (ii) the Exchange Factor, multiplied by
                           (iii) the "closing price," as such term is defined in
                           the definition of the term "Value" in Article I
                           hereof, of a REIT Share on the

                                     - 25 -
<PAGE>

                           date on which the grant of Partnership Units is made)
                           and (b) the General Partner's Partnership Interest
                           shall remain unchanged, and the Partnership Interests
                           of Crescent Equities and the other Limited Partners
                           shall be adjusted as set forth in Section 4.3, based
                           on the amount deemed to be contributed by the
                           Employee Limited Partner as determined pursuant to
                           clause (a) above; provided that, for purposes of
                           calculating the "Deemed Value of the Partnership" and
                           the "Deemed Partnership Interest Value" under Section
                           4.3, the "Value" of a REIT Share shall be the
                           "closing price" (as such term is defined in the
                           definition of the term "Value" in Article I hereof)
                           of a REIT Share as of the date on which the grant of
                           Partnership Units is made.

                  (2)      If the admission is made in connection with the
                           exercise of an option to purchase Partnership Units
                           by an Employee Limited Partner, (a) the Employee
                           Limited Partner shall, as of the date on which the
                           option to purchase Partnership Units is exercised, be
                           deemed to have contributed to the Partnership
                           pursuant to Section 4.3 hereof an amount equal to the
                           fair market value of the Partnership Units delivered
                           to such Employee Limited Partner (computed by
                           calculating the product of the following three items:
                           (i) the number of Partnership Units delivered to such
                           Employee Limited Partner, multiplied by (ii) the
                           Exchange Factor, multiplied by (iii) the "closing
                           price," as such term is defined in the definition of
                           the term "Value" in Article I hereof, of a REIT Share
                           on the date on which the option to purchase
                           Partnership Units is exercised) and (b) the General
                           Partner's Partnership Interest shall remain
                           unchanged, and the Partnership Interests of Crescent
                           Equities and the other Limited Partners shall be
                           adjusted as set forth in Section 4.3, based on the
                           amount deemed to be contributed by the Employee
                           Limited Partner as determined pursuant to clause (a)
                           above; provided that, for purposes of calculating the
                           "Deemed Value of the Partnership" and the "Deemed
                           Partnership Interest Value" under Section 4.3, the
                           "Value" of a REIT Share shall be the "closing price"
                           (as such term is defined in the definition of the
                           term "Value" in Article I hereof) of a REIT Share as
                           of the date on which the option to purchase
                           Partnership Units is exercised.

         Section 4.8       Series A Preferred Partnership Units and Series B
                           Redeemable Preferred Partnership Units

                  A.       Series A Preferred Partnership Units. Pursuant to
Section 8.7.C of the Agreement, effective on February 19, 1998, the issuance
date of the Series A Preferred Shares by Crescent Equities, the Partnership
issued 8,000,000 Series A Preferred Partnership Units to Crescent Equities. On
April 26, 2002, Crescent Equities issued an additional 2,800,000 Series A
Preferred Shares, and the Partnership issued an additional 2,800,000 Series A
Preferred Partnership Units to Crescent Equities. Crescent Equities shall have a
zero percentage Partnership Interest with respect to such Series A Preferred
Partnership Units and shall have no voting rights other than the right to vote
on any amendment to this Agreement if such amendment would (i) convert the
Series A Preferred Partnership Units into a general partner's

                                     - 26 -
<PAGE>

interest, (ii) modify the limited liability of Crescent Equities with respect to
the Series A Preferred Partnership Units, or (iii) alter the distribution,
redemption, conversion or liquidation rights of the Series A Preferred
Partnership Units. The distribution rights of the Series A Preferred Partnership
Units are set forth in Section 5.6 below, the tax allocations with respect to
the Series A Preferred Partnership Units are set forth in Section 6.3 below, and
the redemption and conversion rights of the Series A Preferred Partnership Units
are set forth in Sections 4.8.C and D below.

                  B.       Series B Redeemable Preferred Partnership Units.
Pursuant to Section 8.7.C of the Second Amended Agreement, effective on May 17,
2002, the issuance date of the Series B Redeemable Preferred Shares by Crescent
Equities, the Partnership issued 3,000,000 Series B Redeemable Preferred
Partnership Units to Crescent Equities. Crescent Equities shall have a zero
percentage Partnership Interest with respect to such Series B Redeemable
Preferred Partnership Units and shall have no voting rights other than the right
to vote on any amendment to this Agreement if such amendment would (i) convert
the Series B Redeemable Preferred Partnership Units into a general partner's
interest, (ii) modify the limited liability of Crescent Equities with respect to
the Series B Redeemable Preferred Partnership Units, or (iii) alter the
distribution, redemption, conversion or liquidation rights of the Series B
Redeemable Preferred Partnership Units. The distribution rights of the Series B
Redeemable Preferred Partnership Units are set forth in Section 5.6 below, the
tax allocations with respect to the Series B Redeemable Preferred Partnership
Units are set forth in Section 6.3 below, and the redemption rights of the
Series B Redeemable Preferred Partnership Units are set forth in Section 4.8.C
below.

                  C.       Redemption Rights. In the event that Crescent
Equities exercises its redemption right with respect to the Series A Preferred
Shares, the Partnership shall concurrently redeem a corresponding amount of
Series A Preferred Partnership Units at the same redemption price paid by
Crescent Equities for the Series A Preferred Shares (i.e., a redemption price of
$25 per Series A Preferred Share, plus any accrued, unpaid quarterly
distribution thereon). In the event that Crescent Equities exercises its
redemption right with respect to the Series B Redeemable Preferred Shares, the
Partnership shall concurrently redeem a corresponding amount of Series B
Redeemable Preferred Partnership Units at the same redemption price paid by
Crescent Equities for the Series B Redeemable Preferred Shares (i.e., a
redemption price of $25 per Series B Redeemable Preferred Share, plus any
accrued, unpaid quarterly distribution thereon).

                  D.       Conversion Rights. Upon exercise of any conversion
right with respect to the Series A Preferred Shares, (i) Crescent Equities
shall, as of the date on which the conversion is consummated, be deemed to have
contributed to the Partnership as Contributed Funds pursuant to Section 4.2.A(2)
of the Agreement an amount equal to the Value (computed as of the Business Day
immediately preceding the date on which such conversion is consummated) of the
REIT Shares delivered by Crescent Equities to such holder of Series A Preferred
Shares, (ii) the Partnership Interests of Crescent Equities and the other
Limited Partners shall be adjusted as set forth in Section 4.2 of the Agreement,
and (iii) a corresponding portion of Series A Preferred Partnership Units shall
be retired. Notwithstanding the foregoing, to the extent that Crescent Equities
pays cash to the holder of Series A Preferred Shares in lieu of fractional
shares upon conversion of such Series A Preferred Shares to REIT Shares, such
cash payment shall be treated

                                     - 27 -
<PAGE>

as a redemption of the corresponding portion of the Series A Preferred Shares
and the Partnership shall concurrently redeem a corresponding amount of Series A
Preferred Partnership Units at the same redemption price paid by Crescent
Equities for the Series A Preferred Shares.

                                    ARTICLE V
                                  DISTRIBUTIONS

         Section 5.1       Initial Partnership Distributions

         Upon execution of the First Amended and Restated Agreement, the
Partnership made (i) a distribution of one million five hundred thousand dollars
($1,500,000) to RainAm Investors, and (ii) a distribution in an amount equal to
the Amstar Required Cash Payment to Amstar. In addition, the Partnership
returned to the General Partner, CRE Limited Partner, Inc. and Gerald W. Haddock
the initial capital contributions of one dollar ($l), seventy-four dollars ($74)
and twenty-five dollars ($25),respectively, previously made by such Persons to
the Partnership.

         Section 5.2       Requirement and Characterization of Distributions

         Subject to Section 5.6 below, the General Partner shall cause the
Partnership to distribute quarterly all, or such portion deemed appropriate by
the General Partner, of Available Cash generated by the Partnership during such
quarter to the Partners who are Partners on the Partnership Record Date with
respect to such quarter in accordance with their respective Partnership
Interests on such Partnership Record Date. The General Partner shall take such
reasonable efforts, as determined by it in its sole and absolute discretion and
consistent with the qualification of Crescent Equities as a REIT, to distribute
Available Cash to the Limited Partners so as to preclude any such distribution
or portion thereof from being treated as part of a sale of property to the
Partnership by a Limited Partner under Section 707 of the Code or the
Regulations thereunder; provided that the General Partner and the Partnership
shall not have any liability to a Limited Partner under any circumstances as a
result of any distribution to a Limited Partner being so treated.
Notwithstanding the foregoing, the General Partner shall use its best efforts to
cause the Partnership to distribute sufficient amounts to enable Crescent
Equities to pay shareholder dividends that will (i) allow Crescent Equities to
achieve and maintain qualification as a REIT, and (ii) avoid the imposition of
any additional taxes under Section 857 or Section 4981 of the Code.

         Section 5.3       Amounts Withheld

         All amounts withheld pursuant to the Code or any provisions of any
state or local tax law and Section 10.5 hereof with respect to any allocation,
payment or distribution to a Partner shall be treated as amounts distributed to
such Partner pursuant to Section 5.2 for all purposes under this Agreement.

         Section 5.4       Distributions In Kind

         Pursuant to Section 17-605 of the Act, the General Partner has the
authority to make in-kind distributions of assets to the Partners. Any such
distributions in kind shall be distributed among the Partners in the same manner
as set forth in Section 5.2 with respect to Available Cash (provided that
distributions in kind made after commencement of the liquidation of the

                                     - 28 -
<PAGE>

Partnership shall be distributed to the Partners in accordance with Section
13.2). The General Partner shall determine the fair market value of any assets
distributed in kind using such reasonable method of valuation as it may adopt.

         Section 5.5       Distributions Upon Liquidation

         Proceeds from a Terminating Capital Transaction and any other cash
received or reductions in reserves made after commencement of the liquidation of
the Partnership shall be distributed to the Partners in accordance with Section
13.2.

         Section 5.6       Distribution Rights of Series A Preferred Shares and
                           Series B Redeemable Preferred Shares

         Notwithstanding anything to the contrary contained in Section 5.2
above, and prior to any distributions of Available Cash under such provision, on
any date on which Crescent Equities is required to make a distribution of
accrued, unpaid quarterly distributions to the holders of Series A Preferred
Shares or the holders of Series B Redeemable Preferred Shares, the General
Partner shall cause distributions of Available Cash to be made in cash to
Crescent Equities (i) with respect to the Series A Preferred Partnership Units,
in an amount equal to the amount that is required to be distributed by Crescent
Equities on that date to the holders of Series A Preferred Shares, and (ii) with
respect to the Series B Redeemable Preferred Partnership Units, in an amount
equal to the amount that is required to be distributed by Crescent Equities on
that date to the holders of Series B Redeemable Preferred Shares.

                                   ARTICLE VI
                                   ALLOCATIONS

         Section 6.1       Allocations For Capital Account Purposes

         For purposes of maintaining the Capital Accounts and in determining the
rights of the Partners among themselves, the Partnership's items of income,
gain, loss and deduction (computed in accordance with Exhibit B hereof) shall be
allocated among the Partners in each taxable year (or portion thereof) as
provided herein below.

                  A.       Net Income. After giving effect to the special
allocations set forth in Section 1 of Exhibit C and the allocations set forth in
Section 6.3 below, Net Income shall be allocated (i) first, to the General
Partner to the extent that Net Losses previously allocated to the General
Partner pursuant to the last sentence of Section 6.1.B exceed Net Income
previously allocated to the General Partner pursuant to this clause (i) of
Section 6.1.A, and (ii) thereafter, Net Income shall be allocated to the
Partners in accordance with their respective Partnership Interests.

                  B.       Net Losses. After giving effect to the special
allocations set forth in Section 1 of Exhibit C and the allocations set forth in
Section 6.3 below, Net Losses shall be allocated to the Partners in accordance
with their respective Partnership Interests, provided that Net Losses shall not
be allocated to any Limited Partner pursuant to this Section 6.1.B to the extent
that such allocation would cause such Limited Partner to have an Adjusted
Capital Account Deficit at the end of such taxable year (or increase any
existing Adjusted Capital

                                     - 29 -
<PAGE>

Account Deficit). All Net Losses in excess of the limitations set forth in this
Section 6.1.B shall be allocated to the General Partner.

                  C.       Allocations to Reflect Issuance of New Interests. In
the event that the Partnership issues New Interests to Crescent Equities
pursuant to Section 8.7.C, the General Partner shall make such revisions to
Sections 6.1.A and B above as it determines are necessary to reflect the
issuance of such New Interests.

         Section 6.2       Allocation of Nonrecourse Debt

         For purposes of Regulations Section 1.752-3(a), the Partners agree that
Nonrecourse Liabilities of the Partnership in excess of the sum of (i) the
amount of Partnership Minimum Gain and (ii) the total amount of Nonrecourse
Built-in Gain shall be allocated among the Partners in accordance with their
respective Partnership Interests.

         Section 6.3       Allocations for Series A Preferred Partnership Units
                           and Series B Redeemable Preferred Partnership Units

         Notwithstanding Sections 6.1.A and B above, after giving effect to the
special allocations set forth in Section 1 of Exhibit C to this Agreement:

                  A.       Each year, gross income of the Partnership shall be
allocated first to Crescent Equities until the cumulative amount allocated under
this Section 6.3.A to Crescent Equities for the current year and all prior years
is equal to the cumulative amount for the current year and all prior years of
the sum of (A) the distributions made to Crescent Equities under Section 5.6 of
this Agreement, (B) the portion of the distributions made to Crescent Equities
under Section 4.8.C of this Agreement (if any) that exceeds $25 per Series A
Preferred Partnership Unit and (C) the portion of the distributions made to
Crescent Equities under paragraph Section 4.8.C of this Agreement (if any) that
exceeds $25 per Series B Redeemable Preferred Partnership Unit. Any remaining
Net Profits or Net Losses (other than gain or loss from a sale or other
disposition of all or substantially all of the assets of the Partnership, which
shall be allocated as set forth in Sections 6.3.B and C below) shall be
allocated as set forth in Sections 6.1.A and B above.

                  B.       The gain of the Partnership from a sale or other
disposition of all or substantially all of the assets of the Partnership shall
be allocated among the Partners as follows: (A) first, to Crescent Equities in
the amount necessary to cause its Capital Account balance to be equal to the
liquidation preferences payable by Crescent Equities on the outstanding Series A
Preferred Shares and Series B Redeemable Preferred Shares (the "Liquidation
Preferences") (i.e., a liquidation payment of $25 per Series A Preferred Share,
plus any accrued, unpaid quarterly distribution thereon, and a liquidation
payment of $25 per Series B Redeemable Preferred Share, plus any accrued, unpaid
quarterly distribution thereon, subject to reduction on a pro rata basis (as
more fully set forth in the respective Statements of Designation for the Series
A Preferred Shares and the Series B Redeemable Preferred Shares) to the extent
that there are insufficient funds to pay the aforementioned liquidation
preferences in full), (B) second, to the Partners in the amounts necessary, and
in the ratio of such amounts, to cause the Capital Account balance of Crescent
Equities in excess of the Liquidation Preferences and the Capital Account of
each other

                                     - 30 -
<PAGE>

Partner to be in the same ratio as their respective Partnership Interests, and
(iii) thereafter, to all of the Partners in proportion to their respective
Partnership Interests.

                  C.       The loss of the Partnership from a sale or other
disposition of all or substantially all of the assets of the Partnership shall
be allocated among the Partners as follows: (A) first, to the Partners, if any,
having positive Capital Account balances, in the amounts necessary, and in the
ratio of such amounts, so as to cause the positive Capital Account Balance of
Crescent Equities to equal the Liquidation Preferences and the positive Capital
Account balance of each other Partner to equal zero (or, if there is
insufficient loss to accomplish this result, loss shall be allocated in a manner
so as to cause the positive Capital Account balance of Crescent Equities in
excess of the Liquidation Preference and the positive Capital Account balance of
each other Partner to be in the same ratio as their respective Partnership
Interests), (B) second, to Crescent Equities, until its positive Capital Account
balance equals zero, and (C) thereafter, to the Partners in proportion to their
respective Partnership Interests.

                                  ARTICLE VII
                      MANAGEMENT AND OPERATIONS OF BUSINESS

         Section 7.1       Management

                  A.       Except as otherwise expressly provided in this
Agreement, all management powers over the business and affairs of the
Partnership are exclusively vested in the General Partner, and no Limited
Partner shall have any right to participate in or exercise control or management
power over the business and affairs of the Partnership. The General Partner may
not be removed by the Limited Partners with or without cause. In addition to the
powers now or hereafter granted a general partner of a limited partnership under
applicable law or which are granted to the General Partner under any other
provision of this Agreement, the General Partner, subject to Section 7.3 hereof,
shall have full power and authority to do all things and perform all acts
specified in this Agreement or otherwise deemed necessary or desirable by it to
conduct the business of the Partnership, to exercise all Partnership powers set
forth in Section 3.2 hereof and to effectuate the Partnership purposes set forth
in Section 3.1 hereof (to the extent consistent with allowing Crescent Equities
at all times to qualify as a REIT, unless Crescent Equities voluntarily
terminates its REIT status pursuant to the Declaration of Trust), including,
without limitation, to:

                  (1)      acquire interests in real or personal property of any
                           kind and type, and any and all kinds of interests
                           therein, and determine the manner in which title
                           thereto is to be held; manage, insure against loss,
                           protect and subdivide any such property; improve,
                           develop or redevelop any such property; dedicate for
                           public use, vacate any such property subdivisions or
                           parts thereof, or resubdivide such property or any
                           part thereof; lease, renew or extend leases, amend,
                           change or modify the terms and provisions of leases,
                           and grant options to lease and options to renew
                           leases and options to purchase; partition, sell or
                           otherwise dispose of all or any portion of such
                           property; exchange all or any portion of such
                           property for other real or personal property; grant
                           easements or charges of any kind; release, convey or
                           assign any right, title or interest in or about or
                           easement appurtenant to such property or any part
                           thereof; construct and reconstruct,

                                     - 31 -
<PAGE>

                           remodel, alter, repair, add to or take from buildings
                           on such property; insure any Person having an
                           interest in or responsibility for the care,
                           management or repair of such property; direct the
                           trustee of any land trust to mortgage, lease, convey
                           or contract to convey the real estate held in such
                           land trust or to execute and deliver deeds,
                           mortgages, notes, and any and all documents
                           pertaining to the property subject to such land trust
                           or in any matter regarding such trust; and execute
                           assignments of all or any part of the beneficial
                           interest in such land trust;

                  (2)      employ, engage or contract with or dismiss from
                           employment or engagement Persons to the extent deemed
                           necessary by the General Partner for the operation
                           and management of the Partnership business,
                           including, but not limited to, employees, including
                           employees having such titles as the General Partner
                           may from time to time specify, such as "chairman of
                           the board," "chief executive officer," chief
                           operating officer," "president," "vice president,"
                           "secretary," "treasurer"; contractors;
                           subcontractors; engineers; architects; surveyors;
                           mechanics; consultants; accountants; attorneys;
                           insurance brokers; real estate brokers; and others;

                  (3)      make expenditures, borrow money, procure loans and
                           advances from any Person for Partnership purposes
                           (including, without limitation, borrow money to
                           permit the Partnership to make distributions in such
                           amounts as will permit Crescent Equities (so long as
                           Crescent Equities elects to qualify as a REIT) to
                           avoid the payment of any federal income tax
                           (including, for this purpose, any excise tax pursuant
                           to Section 4981 of the Code) and to make
                           distributions to its shareholders sufficient to
                           permit Crescent Equities to maintain REIT status) and
                           apply for and secure, from any Person, credit or
                           accommodations; contract, assume or guarantee
                           liabilities and obligations, direct or contingent and
                           of every kind and nature with or without security;
                           and repay, prepay, discharge, settle, adjust,
                           compromise, or liquidate any such loan, advance,
                           credit, obligation or liability;

                  (4)      pledge, hypothecate, mortgage, assign, deposit,
                           deliver, enter into sale and leaseback arrangements
                           or otherwise give as security or as additional or
                           substitute security, any and all Partnership
                           property, tangible or intangible, including, but not
                           limited to, real estate and beneficial interests in
                           land trusts, and make substitutions thereof, and
                           receive any proceeds thereof upon the release or
                           surrender thereof; sign, execute and deliver any and
                           all assignments, deeds and other contracts and
                           instruments in writing; authorize, give, make,
                           procure, accept and receive moneys, payments,
                           property, notices, demands, vouchers, receipts,
                           releases, compromises and adjustments; waive notices,
                           demands, protests and authorize and execute waivers
                           of every kind and nature; negotiate, execute, deliver
                           and receive written agreements, undertakings and
                           instruments of every kind and

                                     - 32 -
<PAGE>

                           nature; give oral instructions and make oral
                           agreements; and generally to do any and all other
                           acts and things incidental to any of the foregoing;

                  (5)      acquire and enter into any contract of insurance
                           which the General Partner deems necessary or
                           appropriate for the protection of the Partnership and
                           the Partners, for the conservation of the
                           Partnership's assets or for any purpose convenient or
                           beneficial to the Partnership;

                  (6)      conduct any and all banking transactions on behalf of
                           the Partnership; adjust and settle checking, savings,
                           and other accounts with such institutions as the
                           General Partner shall deem appropriate; draw, sign,
                           execute, accept, endorse, guarantee, deliver, receive
                           and pay any checks, drafts, bills of exchange,
                           acceptances, notes, obligations, undertakings and
                           other instruments for or relating to the payment of
                           money in, into, or from any account in the
                           Partnership's name; execute, procure, consent to and
                           authorize extensions and renewals of the same; and
                           make deposits and withdraw the same and negotiate or
                           discount commercial paper, acceptances, negotiable
                           instruments, bills of exchange and dollar drafts;

                  (7)      demand, sue for, receive, and otherwise take steps to
                           collect or recover all debts, rents, proceeds,
                           interests, dividends, goods, chattels, income from
                           property, damages and all other property, to which
                           the Partnership may be entitled or which are or may
                           become due the Partnership from any Person; commence,
                           prosecute or enforce, or defend, answer or oppose,
                           contest and abandon all legal proceedings in which
                           the Partnership is or may hereafter be interested;
                           settle, compromise or submit to arbitration any
                           accounts, debts, claims, disputes and matters which
                           may arise between the Partnership and any other
                           Person and grant an extension of time for the payment
                           or satisfaction thereof on any terms, with or without
                           security; and indemnify any Indemnitees against
                           liabilities and contingencies in accordance with the
                           provisions of Section 7.7 of this Agreement or
                           otherwise;

                  (8)      take all reasonable measures necessary to insure
                           compliance by the Partnership with applicable laws,
                           and other contractual obligations and arrangements
                           entered into by the Partnership from time to time in
                           accordance with the provisions of this Agreement,
                           including periodic reports as required to lenders;
                           and use all due diligence to insure that the
                           Partnership is in compliance with its contractual
                           obligations;

                  (9)      form, acquire a debt or equity ownership interest in,
                           and contribute or loan property to, any further
                           corporations, limited or general partnerships, joint
                           ventures, real estate investment trusts, or other
                           entities upon such terms and conditions as General
                           Partner deems appropriate;

                  (10)     invest assets of the Partnership on a temporary basis
                           in commercial paper, government securities, checking
                           or savings accounts, money market funds,

                                     - 33 -
<PAGE>

                           or any other highly liquid investments deemed
                           appropriate by the General Partner; make loans,
                           including participating or convertible loans, to
                           other Persons (including, without limitation, the
                           Subsidiary Development Corporation(s) and the
                           Management Company) upon such terms and conditions,
                           and for such security, as deemed appropriate by the
                           General Partner; repay obligations of any Person in
                           which the Partnership has an equity investment
                           (including, without limitation, the Subsidiary
                           Development Corporation(s) and the Management
                           Company); and purchase existing debt obligations held
                           by other Persons, including participating or
                           convertible debt obligations, upon such terms and
                           conditions, and for such security, as deemed
                           appropriate by the General Partner;

                  (11)     negotiate, execute and perform any contracts,
                           conveyance or other instruments that the General
                           Partner considers useful or necessary to the conduct
                           of the Partnership's operations or the implementation
                           of the General Partner's powers under this Agreement;

                  (12)     distribute Partnership cash or other assets in
                           accordance with this Agreement;

                  (13)     maintain the Partnership's books and records;

                  (14)     prepare and deliver all financial, regulatory, tax
                           and other filings or reports to governmental or other
                           agencies having jurisdiction over the Partnership;
                           and

                  (15)     take any action in connection with the Partnership's
                           direct or indirect investment in any other Person.

                  B.       Each of the Limited Partners agrees that the General
Partner is authorized to execute, deliver and perform the above-mentioned
agreements and transactions on behalf of the Partnership without any further
act, approval or vote of the Partners, notwithstanding any other provisions of
this Agreement (except as provided in Section 7.3), the Act or any applicable
law, rule or regulation. The execution, delivery or performance by the General
Partner or the Partnership of any agreement authorized or permitted under this
Agreement shall not constitute a breach by the General Partner of any duty that
the General Partner may owe the Partnership or the Limited Partners or any other
Persons under this Agreement or of any duty stated or implied by law or equity.

                  C.       At all times from and after the date hereof, the
General Partner may cause the Partnership to obtain and maintain (i) casualty,
liability and other insurance on the properties of the Partnership and (ii)
liability insurance for the Indemnitees hereunder.

                  D.       At all times from and after the date hereof, the
General Partner may cause the Partnership to establish and maintain working
capital reserves in such amounts as the General Partner, in its sole and
absolute discretion, deems appropriate and reasonable from time to time.

                                     - 34 -
<PAGE>

                  E.       In exercising its authority under this Agreement, the
General Partner may, but shall be under no obligation to, take into account the
tax consequences to any Partner of any action taken by it. The General Partner
and the Partnership shall not have liability to a Limited Partner under any
circumstances as a result of an income tax liability incurred by such Limited
Partner as a result of an action (or inaction) by the General Partner pursuant
to its authority under this Agreement.

         Section 7.2       Certificate of Limited Partnership

         To the extent that such action is determined by the General Partner to
be necessary or appropriate, the General Partner shall file amendments to and
restatements of the Certificate and do all things necessary or appropriate to
maintain the Partnership as a limited partnership (or a partnership in which the
limited partners have limited liability) under the laws of the State of Delaware
and each other jurisdiction in which the Partnership may elect to do business or
own property. Subject to the terms of Section 8.5.A(3) hereof, the General
Partner shall not be required, before or after filing, to deliver or mail a copy
of the Certificate or any amendment thereto to any Limited Partner. The General
Partner shall use all reasonable efforts to cause to be filed such other
certificates or documents as may be reasonable and necessary or appropriate for
the continuation, qualification and operation of a limited partnership (or a
partnership in which the limited partners have limited liability) in the State
of Delaware and any other jurisdiction in which the Partnership may elect to do
business or own property.

         Section 7.3       Restrictions on General Partner's Authority

         The General Partner shall not have the authority to:

                  A.       take any action in contravention of this Agreement or
which would make it impossible to carry on the ordinary business of the
Partnership;

                  B.       possess Partnership property, or assign any rights in
specific Partnership property, for other than a Partnership purpose;

                  C.       do any act in contravention of applicable law; or

                  D.       perform any act that would subject a Limited Partner
to liability as a general partner in any jurisdiction or any other liability
except as provided herein or under the Act.

         Section 7.4       Reimbursement of the Crescent Group

                  A.       Except as provided in this Section 7.4 and elsewhere
in this Agreement (including the provisions of Articles 5 and 6 regarding
distributions, payments, and allocations to which it may be entitled), the
General Partner shall not be compensated for its services as general partner of
the Partnership.

                  B.       The Crescent Group shall be reimbursed on a monthly
basis, or such other basis as the General Partner may determine in its sole and
absolute discretion, for all expenses the Crescent Group incurs relating to the
ownership and operation of, or for the benefit of, the

                                     - 35 -
<PAGE>

Partnership, provided that the amount of any such reimbursement shall be reduced
by any income received by the Crescent Group with respect to bank accounts or
other assets held by it as permitted in Section 7.5. The Limited Partners
acknowledge that the Crescent Group's sole business is the ownership of
interests in and operation of the Partnership, and that all of the Crescent
Group's operating expenses (including, without limitation, costs and expenses
relating to the formation and continuity of existence of the Crescent Group,
costs and expenses associated with compliance with the periodic reporting
requirements and all other rules and regulations of the SEC or any other
federal, state or local regulatory body, salaries payable to officers and
employees of the Crescent Group, fees and expenses payable to directors of the
Crescent Group, costs and expenses relating to the bank accounts or other assets
held by the Crescent Group as permitted in Section 7.5 and all other operating,
debt service or administrative costs of the Crescent Group) are incurred for the
benefit of the Partnership and shall be reimbursed by the Partnership. Such
reimbursements shall be in addition to any reimbursement to the Crescent Group
as a result of indemnification pursuant to Section 7.7 hereof. If and to the
extent any reimbursements to the Crescent Group are determined for federal
income tax purposes not to constitute payment of expenses of the Partnership,
the amounts so determined shall constitute guaranteed payments within the
meaning of Section 707(c) of the Code, shall be treated consistently therewith
by the Partnership and all Partners, and shall not be treated as distributions
for purposes of computing the Partners' Capital Accounts.

         Section 7.5       Outside Activities of the Crescent Group

         The Crescent Group shall not directly or indirectly enter into or
conduct any business, other than in connection with the ownership, acquisition
and disposition of Partnership Interests and the management of the business of
the Partnership, and such activities as are incidental thereto. The Crescent
Group shall not own any assets other than Partnership Interests in the
Partnership, and such bank accounts or similar instruments as it deems necessary
to carry out its responsibilities contemplated under this Agreement and the
Declaration of Trust. The Crescent Group shall not borrow funds for the purpose
of making distributions to the shareholders of any member of the Crescent Group
unless such borrowing is effectuated through the Partnership. Notwithstanding
anything to the contrary contained above in this Section 7.5, (1) Crescent
Equities may form additional direct or indirect wholly owned subsidiary entities
to serve as general partners of partnerships or managing members of limited
liability companies in which the Partnership also owns a direct or indirect
ownership interest, provided that (i) the General Partner determines that the
formation of the subsidiary entities is necessary or appropriate to further the
business objectives of the Partnership and (ii) the subsidiary entities (a) make
capital contributions in exchange for their ownership interests in the
partnerships and limited liability companies on a pro rata basis with the
Partnership and (b) do not own more than one percent (1%) of the total ownership
interests in any such partnership or limited liability company, and (2) the
Crescent Group may own such other assets as the General Partner determines are
necessary and appropriate to further the business interests of the Partnership,
upon such terms and conditions as the General Partner determines are necessary
and appropriate to protect the interests of the Partnership.

                                     - 36 -
<PAGE>

         Section 7.6       Contracts with Affiliates

                  A.       The Partnership may contribute assets and loan funds
to joint ventures, other partnerships, corporations or other business entities
in which it is or thereby becomes a participant upon such terms and subject to
such conditions consistent with this Agreement and applicable law as the General
Partner, in its sole and absolute discretion, deems advisable. The foregoing
authority shall not create any right or benefit in favor of any such other
business entities.

                  B.       Except as expressly permitted by this Agreement, no
Partner or Affiliate of a Partner shall sell, transfer or convey any property
to, purchase any property from, lend or borrow funds, provide services to, or
enter into any other transaction with the Partnership, directly or indirectly,
except pursuant to transactions that are on terms that are fair and reasonable
and no less favorable to the Partnership than could be obtained from an
unaffiliated third party.

                  C.       The General Partner is expressly authorized to enter
into, in the name and on behalf of the Partnership, noncompetition agreements
and other conflict avoidance agreements for its benefit with various Affiliates
of the Partnership and its Partners, on such terms as the General Partner, in
its sole and absolute discretion, believes are advisable.

         Section 7.7       Indemnification

                  A.       The Partnership shall indemnify each Indemnitee from
and against any and all losses, claims, damages, liabilities, joint or several,
expenses (including, without limitation, attorneys' fees and other legal fees
and expenses), judgments, fines, settlements, and other amounts arising from any
and all claims, demands, actions, suits or proceedings, civil, criminal,
administrative or investigative, that relate to the operations of the
Partnership as set forth in this Agreement in which such Indemnitee may be
involved, or is threatened to be involved, as a party or otherwise, unless it is
established that: (i) the act or omission of the Indemnitee was material to the
matter giving rise to the proceedings and either was committed in bad faith or
was the result of active and deliberate dishonesty; (ii) the Indemnitee actually
received an improper personal benefit in money, property or services; or (iii)
in the case of any criminal proceeding, the Indemnitee had reasonable cause to
believe that the act or omission was unlawful. Without limitation, the foregoing
indemnity shall extend to any liability of any Indemnitee, pursuant to a loan
guaranty or otherwise, for any indebtedness of the Partnership or any subsidiary
entity (including, without limitation, any indebtedness which the Partnership or
any subsidiary entity has assumed or taken subject to), and the General Partner
is hereby authorized and empowered, on behalf of the Partnership, to enter into
one or more indemnity agreements consistent with the provisions of this Section
7.7 in favor of any Indemnitee having or potentially having liability for any
such indebtedness. The termination of any proceeding by judgment, order or
settlement does not create a presumption that the Indemnitee did not meet the
requisite standard of conduct set forth in this Section 7.7.A. The termination
of any proceeding by conviction of an Indemnitee or upon a plea of nolo
contendre or its equivalent by an Indemnitee, or an entry of an order of
probation against an Indemnitee prior to judgment, creates a rebuttable
presumption that such Indemnitee acted in a manner contrary to that specified in
this Section 7.7.A with respect to the subject matter of such proceeding.

                                     - 37 -
<PAGE>

                  B.       The right to indemnification conferred in this
Section 7.7 shall be a contract right and shall include the right of each
Indemnitee to be paid by the Partnership the expenses incurred in defending any
such proceeding in advance of its final disposition; provided, however, that the
payment of such expenses in advance of the final disposition of a proceeding
shall be made only upon delivery to the Partnership of (i) a written affirmation
of the Indemnitee of his or her good faith belief that the standard of conduct
necessary for indemnification by the Partnership pursuant to this Section 7.7
has been met, and (ii) a written undertaking by or on behalf of the Indemnitee
to repay all amounts so advanced if it shall ultimately be determined that the
standard of conduct has not been met.

                  C.       The indemnification provided pursuant to this Section
7.7 shall continue as to a Person who has ceased to have the status of an
Indemnitee pursuant to clause (i) of the definition of "Indemnitee" set forth in
Article I hereof and shall inure to the benefit of the heirs, successors,
assigns, executors and administrators of any such Person, or to a Person whose
status as an lndemnitee was originally established pursuant to clause (ii) of
such definition and was later terminated for any reason other than the
affirmative decision of the General Partner to terminate such status; provided,
however, that except as provided in Section 7.7.D with respect to proceedings
seeking to enforce rights to indemnification, the Partnership shall indemnify
any such Person seeking indemnification in connection with a proceeding (or part
thereof) initiated by such Person only if such proceeding (or part thereof) was
authorized by the General Partner.

                  D.       If a claim under Sections 7.7.A, 7.7.B or 7.7.C is
not paid in full by the Partnership within thirty (30) calendar days after a
written claim has been received by the Partnership, the Indemnitee making such
claim may at any time thereafter (but prior to payment of the claim) bring suit
against the Partnership to recover the unpaid amount of the claim and, if
successful, in whole or in part, such Indemnitee shall be entitled to be paid
also the expense of prosecuting such claim. It shall be a defense to any such
action (other than an action brought to enforce a claim for expenses incurred in
defending any proceeding in advance of its final disposition where the required
undertaking, if any, has been tendered to the Partnership) that the Indemnitee
has not met the standards of conduct set forth above which make it permissible
for the Partnership to indemnify the Indemnitee for the amount claimed, but the
burden of proving such defense shall be on the Partnership. Neither the failure
of the Partnership to have made a determination prior to the commencement of
such action that indemnification of the Indemnitee is proper in the
circumstances because he or she has met the applicable standard of conduct set
forth herein nor an actual determination by the Partnership that the Indemnitee
has not met such applicable standard of conduct, shall be a defense to the
action or create a presumption that the Indemnitee has not met the applicable
standard of conduct.

                  E.       Following any "change in control" of Crescent
Equities of the type required to be reported under Item 1 of Form 8-K
promulgated under the Exchange Act, any determination as to entitlement to
indemnification shall be made by independent legal counsel selected by the
Indemnitee, which such independent legal counsel shall be retained by the
General Partner on behalf of the Partnership and at the expense of the
Partnership.

                  F.       The right to indemnification and the payment of
expenses incurred in defending a proceeding in advance of its final disposition
conferred in this Section 7.7 shall not

                                     - 38 -
<PAGE>

be exclusive of any other right which any person may have or hereafter acquire
under any statute or agreement, or pursuant to any vote of the Partners, or
otherwise.

                  G.       The Partnership may purchase and maintain insurance,
at its expense, on its own behalf and on behalf of any Indemnitee and of such
other Persons as the General Partner shall determine, against any liability
(including expenses) that may be asserted against and incurred by such Person in
connection with the Partnership's activities pursuant to this Agreement, whether
or not the Partnership would have the power to indemnify such Person against
such liability under the terms of this Agreement. In addition, the Partnership
may, together with Crescent Equities, enter into indemnification agreements with
one or more of the Indemnitees pursuant to which the Partnership and Crescent
Equities shall jointly and severally agree to indemnify such Indemnitee(s) to
the fullest extent permitted by law, and advance to such Indemnitee(s) all
related expenses, subject to reimbursement if it is subsequently determined that
indemnification is not permitted.

                  H.       Any indemnification pursuant to this Section 7.7
shall be made only out of assets of the Partnership, and neither the General
Partner nor any Limited Partner shall have any obligation to contribute to the
capital of the Partnership or otherwise provide funds to enable the Partnership
to fund its obligations under this Section 7.7.

                  I.       No Limited Partner shall be liable for the
obligations of the Partnership by reason of the indemnification provisions set
forth in this Agreement.

                  J.       An Indemnitee shall not be denied indemnification in
whole or in part pursuant to this Section 7.7 because such lndemnitee has an
interest in the transaction to which the indemnification relates if the
transaction otherwise was permitted by the terms of this Agreement.

                  K.       The provisions of this Section 7.7 are for the
benefit of the Indemnitees, their heirs, successors, assigns, executors and
administrators, and shall not be deemed to create any rights for the benefit of
any other Person. Any amendment, modification or repeal of this Section 7.7 or
any provision hereof shall be prospective only and shall not in any way affect
the limitations on the Partnership's liability to any Indemnitee under this
Section 7.7 as in effect immediately prior to such amendment, modification or
repeal with respect to claims arising from or relating to matters occurring, in
whole or in part, prior to such amendment, modification or repeal, regardless of
when such claims may arise or be asserted.

         Section 7.8       Liability of the General Partner

                  A.       Notwithstanding anything to the contrary set forth in
this Agreement, the General Partner shall not be liable for monetary damages to
the Partnership or any Partners for losses sustained or liabilities incurred as
a result of errors in judgment or of any act or omission if the General Partner
acted in good faith.

                  B.       The Limited Partners expressly acknowledge that the
General Partner is acting on behalf of the Partnership and the shareholders of
Crescent Equities collectively, that the General Partner is under no obligation
to consider the separate interests of the Limited Partners (including, without
limitation, the tax consequences to Limited Partners) in deciding

                                     - 39 -
<PAGE>

whether to cause the Partnership to take (or decline to take) any actions, and
that the General Partner shall not be liable to the Partnership or to any
Partner for monetary damages for losses sustained, liabilities incurred, or
benefits not derived by Limited Partners in connection with such decisions,
provided that the General Partner has acted in good faith.

                  C.       Subject to its obligations and duties as General
Partner set forth in Section 7.1.A hereof, the General Partner may exercise any
of the powers granted to it by this Agreement and perform any of the duties
imposed upon it hereunder either directly or by or through its agents. The
General Partner shall not be responsible for any misconduct or negligence on the
part of any such agent appointed by it in good faith.

                  D.       Any amendment, modification or repeal of this Section
7.8 or any provision hereof shall be prospective only and shall not in any way
affect the limitations on the General Partner's liability to the Partnership and
the Limited Partners under this Section 7.8 as in effect immediately prior to
such amendment, modification or repeal with respect to claims arising from or
relating to matters occurring, in whole or in part, prior to such amendment,
modification or repeal, regardless of when such claims may arise or be asserted.

         Section 7.9       Other Matters Concerning the General Partner

                  A.       The General Partner may rely, and shall be protected
in acting or refraining from acting, upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order, bond,
debenture, or other paper or document believed by it to be genuine and to have
been signed or presented by the proper party or parties.

                  B.       The General Partner may consult with legal counsel,
accountants, appraisers, management consultants, investment bankers and other
consultants and advisers selected by it, and any act taken or omitted to be
taken in reliance upon the opinion of such Persons as to matters which such
General Partner reasonably believes to be within such Person's professional or
expert competence shall be conclusively presumed to have been done or omitted in
good faith.

                  C.       The General Partner shall have the right, in respect
of any of its powers or obligations hereunder, to act through any of its duly
authorized officers and a duly appointed attorney or attorneys-in-fact. Each
such attorney shall, to the extent provided by the General Partner in the power
of attorney, have full power and authority to do and perform all and every act
and duty which is permitted or required to be done by the General Partner
hereunder.

                  D.       Notwithstanding any other provision of this Agreement
or the Act, any action of the General Partner on behalf of the Partnership or
any decision of the General Partner to refrain from acting on behalf of the
Partnership, undertaken in the good faith belief that such action or omission is
necessary or advisable in order (i) to protect the ability of Crescent Equities
to achieve or maintain qualification as a REIT or (ii) to avoid the incurring by
Crescent Equities of any taxes under Section 857 or Section 4981 of the Code, is
expressly authorized under this Agreement and is deemed approved by all of the
Limited Partners, to the extent such approval may be necessary.

                                     - 40 -
<PAGE>

         Section 7.10      Title to Partnership Assets

         Title to Partnership assets, whether real, personal or mixed and
whether tangible or intangible, shall be deemed to be owned by the Partnership
as an entity, and no Partner, individually or collectively, shall have any
ownership interest in such Partnership assets or any portion thereof. Title to
any or all of the Partnership assets may be held in the name of the Partnership,
the General Partner or one or more nominees, as the General Partner may
determine, including Affiliates of the General Partner. The General Partner
hereby declares and warrants that any Partnership assets for which legal title
is held in the name of the General Partner or any nominee or Affiliate of the
General Partner shall be held by the General Partner for use and benefit of the
Partnership in accordance with the provisions of this Agreement; provided,
however, that the General Partner shall use its best efforts to cause beneficial
and record title to such assets to be vested in the Partnership as soon as
reasonably practicable. All Partnership assets shall be recorded as the property
of the Partnership in its books and records, irrespective of the name in which
legal title to such Partnership assets is held.

         Section 7.11      Reliance by Third Parties

         Notwithstanding anything to the contrary in this Agreement, any Person
dealing with the Partnership shall be entitled to assume that the General
Partner has full power and authority to encumber, sell or otherwise use in any
manner any and all assets of the Partnership and to enter into any contracts on
behalf of the Partnership, and such Person shall be entitled to deal with the
General Partner as if it were the Partnership's sole party in interest, both
legally and beneficially. Each Limited Partner hereby waives any and all
defenses or other remedies which may be available against such Person to
contest, negate or disaffirm any action of the General Partner in connection
with any such dealing. In no event shall any Person dealing with the General
Partner or its representatives be obligated to ascertain that the terms of this
Agreement have been complied with or to inquire into the necessity or expedience
of any act or action of the General Partner or its representatives. Each and
every certificate, document or other instrument executed on behalf of the
Partnership by the General Partner or its representatives shall be conclusive
evidence in favor of any and every Person relying thereon or claiming thereunder
that (i) at the time of the execution and delivery of such certificate, document
or instrument, this Agreement was in full force and effect, (ii) the Person
executing and delivering such certificate, document or instrument was duly
authorized and empowered to do so for and on behalf of the Partnership, and
(iii) such certificate, document or instrument was duly executed and delivered
in accordance with the terms and provisions of this Agreement and is binding
upon the Partnership.

         Section 7.12      Limited Partner Representatives

         Any Limited Partner may (but shall not be required to) appoint a
representative (the "Representative") who shall have full power and authority to
exercise all rights, including consent rights, of such Limited Partner under
this Agreement. Any such appointment shall be made in a writing delivered by the
Limited Partner to the General Partner. The same Person may serve as
Representative for more than one Limited Partner. Any action taken by a
Representative on behalf of a Limited Partner shall be fully binding on such
Limited Partner. The General Partner shall be entitled to rely on the actions
taken by a Representative without further evidence of its authority or further
action by the Limited Partner who appointed such Representative. Any

                                     - 41 -
<PAGE>

appointment of a Representative shall remain effective until rescinded in a
writing delivered by the Limited Partner to the General Partner. A Limited
Partner may revoke its designation of a Representative, or replace a designated
Representative with a different Representative, at any time by delivering
written notice of such action to the General Partner.

                                  ARTICLE VIII
                   RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS

         Section 8.1       Limitation of Liability

         The Limited Partners shall have no liability under this Agreement
except as expressly provided in this Agreement, including Section 10.5 hereof,
or under the Act.

         Section 8.2       Management of Business

         No Limited Partner (other than any officer, director, employee,
partner, agent or trustee of the General Partner, the Partnership or any of
their Affiliates, in his, her or its capacity as such) shall take part in the
operation, management or control (within the meaning of the Act) of the
Partnership's business, transact any business in the Partnership's name or have
the power to sign documents for or otherwise bind the Partnership. The
transaction of any such business by the General Partner, any of its Affiliates
or any officer, director, employee, partner, agent or trustee of the General
Partner, the Partnership or any of their Affiliates, in their capacity as such,
shall not affect, impair or eliminate the limitations on the liability of the
Limited Partners under this Agreement.

         Section 8.3       Outside Activities of Limited Partners

         Subject to Section 7.5 hereof, and subject to any agreements entered
into pursuant to Section 7.6.C hereof and any other agreements entered into by a
Limited Partner or its Affiliates with the Partnership, any Limited Partner and
any officer, director, employee, agent, trustee, Affiliate or shareholder of any
Limited Partner shall be entitled to and may have business interests and engage
in business activities in addition to those relating to the Partnership,
including business interests and activities in direct competition with the
Partnership. Neither the Partnership nor any Partners shall have any rights by
virtue of this Agreement in any business ventures of any Limited Partner. None
of the Limited Partners nor any other Person shall have the rights by virtue of
this Agreement or the partnership relationship established hereby in any
business ventures of any other Person, other than the Crescent Group, and such
Person shall have no obligation pursuant to this Agreement to offer any interest
in any such business ventures to the Partnership, any Limited Partner or any
such other Person, even if such opportunity is of a character which, if
presented to the Partnership, any Limited Partner or such other Person, could be
taken by such Person.

         Section 8.4       Return of Capital

         Except pursuant to the Exchange Rights set forth in Section 8.6, no
Limited Partner shall be entitled to the withdrawal or return of his Capital
Contribution, except to the extent of distributions made pursuant to this
Agreement or upon termination of the Partnership as provided herein. No Limited
Partner shall have priority over any other Limited Partner either as to the

                                     - 42 -
<PAGE>

return of Capital Contributions or, except to the extent provided by Exhibit C
hereof or as permitted by Section 8.7.C, or otherwise expressly provided in this
Agreement, as to profits, losses or distributions.

         Section 8.5       Rights of Limited Partners Relating to the
                           Partnership

                  A.       In addition to other rights provided by this
Agreement or by the Act, and except as limited by Section 8.5.C hereof, each
Limited Partner shall have the right, for a purpose reasonably related to such
Limited Partner's interest as a limited partner in the Partnership, upon written
demand with a statement of the purpose of such demand and at such Limited
Partner's own expense:

                  (1)      to obtain a copy of the Partnership's federal, state
                           and local income tax returns for each fiscal year;

                  (2)      to obtain a current list of the name and last known
                           business, residence or mailing address of each
                           Partner; provided, however, that the General Partner
                           may require, as a condition of providing such list to
                           the Limited Partner, that the Limited Partner confirm
                           in writing to the General Partner that the names of
                           the Partners and other information provided by the
                           list will be held in strictest confidence and no
                           distribution of the list will be made;

                  (3)      to obtain a copy of this Agreement and the
                           Certificate, and all amendments to the Agreement and
                           the Certificate, together with executed copies of all
                           powers of attorney pursuant to which this Agreement,
                           the Certificate and all amendments to the Agreement
                           and the Certificate have been executed; and

                  (4)      to obtain true and full information regarding the
                           amount of cash and a description and statement of any
                           other property or services contributed by each
                           Partner and which each Partner has agreed to
                           contribute in the future, and the date on which each
                           became a Partner.

                  B.       The Partnership shall notify each Limited Partner in
writing of any change made to the Exchange Factor. Such written notification
shall be included with the quarterly financial statements that are sent to each
Limited Partner pursuant to Section 9.3 hereof.

                  C.       Notwithstanding any other provision of this Section
8.5, the General Partner may keep confidential from the Limited Partners, for
such period of time as the General Partner determines in its sole and absolute
discretion to be reasonable, any information that (i) the General Partner
believes to be in the nature of trade secrets or other information the
disclosure of which the General Partner in good faith believes is not in the
best interests of the Partnership, or (ii) the Partnership is required by law or
by agreements with unaffiliated third parties to keep confidential.

                                     - 43 -
<PAGE>

         Section 8.6       Exchange Rights

                  A.       Subject to the limitations set forth herein, in
Section 8.6.B below and in Exhibit A, each Limited Partner or Assignee owning
Partnership Units shall have the right (the "Exchange Right") to require
Crescent Equities to exchange on any Specified Exchange Date all or any portion
of the Partnership Units owned by such Limited Partner or Assignee (an
"Exchanging Person") for consideration consisting of (i) an amount of cash equal
to the Cash Amount, (ii) a number of REIT Shares equal to the REIT Shares
Amount, or (iii) any combination of (i) or (ii) above, with the decision as to
the type of consideration to be given to the Exchanging Person to be made by
Crescent Equities, in its sole and absolute discretion. The Exchange Right shall
be exercised pursuant to a Notice of Exchange delivered to Crescent Equities by
the Exchanging Person, accompanied by any certificate or certificates evidencing
the Partnership Units to be exchanged. If Crescent Equities elects to pay all or
any portion of the consideration to an Exchanging Person in cash, the Crescent
Group agrees to use its best efforts to raise any required funds as quickly as
possible after receipt of the Notice of Exchange.

                  B.       Notwithstanding anything to the contrary contained in
Section 8.6.A above, to the extent that the delivery of REIT Shares to an
Exchanging Person pursuant to Section 8.6.A above would cause the Exchanging
Person to violate the applicable "Ownership Limit" or the "Existing Holder
Limit" set forth in the Declaration of Trust, Crescent Equities may not deliver
REIT Shares to such Exchanging Person but may, in its sole and absolute
discretion, elect to either (1) pay the consideration to the Exchanging Person
in the form of the Cash Amount, or (2) refuse, in whole or in part, to accept
the Notice of Exchange.

         Section 8.7       Covenants Relating to the Exchange Rights

                  A.       Crescent Equities shall at all times reserve for
issuance such number of REIT Shares as may be necessary to enable it to issue
such REIT Shares in full satisfaction of the Exchange Rights with respect to all
Partnership Units which are from time to time outstanding.

                  B.       As long as Crescent Equities shall be obligated to
file periodic reports under the Exchange Act, Crescent Equities shall use its
best efforts to file such reports in such manner as shall enable any recipient
of REIT Shares issued pursuant to Section 8.6 in reliance upon an exemption from
registration under the Securities Act to continue to be eligible to utilize Rule
144 promulgated by the SEC pursuant to the Securities Act, or any successor rule
or regulation or statute thereunder, for the resale thereof.

                  C.       Crescent Equities shall not issue any additional REIT
Shares (other than REIT Shares contemplated by Sections 4.2 and 8.6 and REIT
Shares issued pursuant to a Stock Incentive Plan) other than on a pro rata basis
to all holders of REIT Shares. Crescent Equities shall not issue any preferred
stock or rights, options, warrants or convertible or exchangeable securities
containing the right to subscribe for or purchase REIT Shares ("New Securities")
other than to all holders of REIT Shares unless (i) the General Partner shall
cause the Partnership to issue to Crescent Equities preferred equity ownership
interests or rights, options, warrants or convertible or exchangeable securities
of the Partnership ("New Interests") having designations, preferences and other
rights, all such that the economic interests are substantially similar to those
of the New Securities, and (ii) Crescent Equities contributes the proceeds from
the issuance of

                                     - 44 -
<PAGE>

such New Securities and from the exercise of rights contained in such New
Securities to the Partnership. The Partners hereby acknowledge and agree that
the proceeds received by Crescent Equities in exchange for the issuance of New
Securities may be cash or real property or an interest therein. If any New
Securities are subsequently converted or exchanged for REIT Shares, (i) Crescent
Equities shall, as of the date on which the conversion or exchange is
consummated, be deemed to have contributed to the Partnership as Contributed
Funds pursuant to Section 4.2.A(2) hereof an amount equal to the Value (computed
as of the Business Day immediately preceding the date on which such conversion
or exchange of the New Securities is consummated) of the REIT Shares delivered
by Crescent Equities to such holder of New Securities, and (ii) the Partnership
Interests of Crescent Equities and the other Limited Partners shall be adjusted
as set forth in Section 4.2. The number of Partnership Units held by the Limited
Partners shall not be decreased in connection with the issuance of any New
Securities or in connection with any subsequent conversion or exchange of any
New Securities for REIT Shares.

                  D.       Each Limited Partner and Assignee covenants and
agrees that all Partnership Units delivered for exchange pursuant to Section 8.6
hereof shall be delivered to Crescent Equities free and clear of all Liens and,
notwithstanding anything herein contained to the contrary, Crescent Equities
shall be under no obligation to acquire Partnership Units which are or may be
subject to any Liens. Each Limited Partner and Assignee further agrees that, in
the event any state or local property transfer tax is payable as a result of the
transfer of its Partnership Units to Crescent Equities, such Limited Partner or
Assignee shall assume and pay such transfer tax.

                  E.       In the event Crescent Equities purchases REIT Shares,
then the General Partner shall cause the Partnership to purchase from Crescent
Equities a portion of its Partnership Interest on the same terms that Crescent
Equities purchased such REIT Shares.

         Section 8.8       Other Matters Relating to the Exchange Rights

                  A.       Any Partnership Units transferred to Crescent
Equities in connection with the exercise of the Exchange Rights shall be
canceled.

                  B.       Upon any transfer of Partnership Units by an
Exchanging Person to Crescent Equities pursuant to Section 8.6 above, the
Partnership Interest of such Limited Partner or Assignee shall be decreased (and
the Partnership Interest of Crescent Equities shall be correspondingly
increased) as provided in this Section 8.8.B. The Partnership Interest of such
Limited Partner or Assignee subsequent to the exchange event shall be equal to
the product of the following: (i) the Partnership Interest of such Limited
Partner or Assignee immediately prior to the exchange event, multiplied by (ii)
a fraction, the numerator of which is the total Partnership Units owned by such
Limited Partner or Assignee immediately after the exchange event, and the
denominator of which is the total number of Partnership Units owned by such
Limited Partner or Assignee immediately prior to the exchange event.
Notwithstanding the foregoing, if a Limited Partner or Assignee owns Partnership
Units and also owns Partnership Interests issued pursuant to Section 4.3 or 4.7
above, which Partnership Interests were not associated with Partnership Units,
the portion of the Partnership Interest of such Limited Partner or Assignee that
represents the Partnership Interests issued pursuant to Section 4.3 or 4.7 shall
not be subject to reduction pursuant to the provisions of this Section 8.8.B.

                                     - 45 -
<PAGE>

                                   ARTICLE IX
                     BOOKS, RECORDS, ACCOUNTING AND REPORTS

         Section 9.1       Records and Accounting

         The General Partner shall keep or cause to be kept at the principal
office of the Partnership appropriate books and records with respect to the
Partnership's business, including, without limitation, all books and records
necessary to provide to the Limited Partners any information, lists and copies
of documents required to be provided pursuant to Section 8.5 hereof. Any records
maintained by or on behalf of the Partnership in the regular course of its
business may be kept on, or be in the form of, punch cards, magnetic tape,
photographs, micrographic or any other information storage device, provided that
the records so maintained are convertible into clearly legible written form
within a reasonable period of time. The books of the Partnership shall be
maintained, for financial and tax reporting purposes, on an accrual basis in
accordance with generally accepted accounting principles.

         Section 9.2       Fiscal Year

         The fiscal year of the Partnership shall be the calendar year.

         Section 9.3       Reports

         As soon as practicable after the close of each fiscal quarter (other
than the last quarter of the fiscal year), the General Partner shall cause to be
mailed to each Limited Partner a quarterly report containing financial
statements of the Partnership, or of the Crescent Group if such statements are
prepared solely on a consolidated basis with the Crescent Group, for such fiscal
quarter, presented in accordance with generally accepted accounting principles.
As soon as practicable after the close of each fiscal year, the General Partner
shall cause to be mailed to each Limited Partner an annual report containing
financial statements of the Partnership, or of the Crescent Group if such
statements are prepared solely on a consolidated basis with the Crescent Group,
for such fiscal year, presented in accordance with generally accepted accounting
principles. The annual financial statements shall be audited by a nationally
recognized firm of independent public accountants selected by the General
Partner.

                                    ARTICLE X
                                   TAX MATTERS

         Section 10.1      Preparation of Tax Returns

         The General Partner shall arrange for the preparation and timely filing
of all returns of Partnership income, gains, deductions, losses and other items
required of the Partnership for federal, state and local income tax purposes,
and the delivery to the Limited Partners of all tax information reasonably
required by the Limited Partners for federal, state and local income tax
reporting purposes.

                                     - 46 -
<PAGE>

         Section 10.2      Tax Elections

         Except as otherwise provided herein, the General Partner shall, in its
sole and absolute discretion, determine whether to make any available election
or choose any available reporting method pursuant to the Code or state or local
tax law; provided, however, that the General Partner shall make the election
under Section 754 of the Code in accordance with applicable regulations
thereunder. The General Partner shall have the right to seek to revoke any such
election (including, without limitation, the election under Section 754 of the
Code) or change any reporting method upon the General Partner's determination in
its sole and absolute discretion that such revocation is in the best interests
of all of the Partners.

         Section 10.3      Tax Matters Partner

                  A.       The General Partner shall be the "tax matters
partner" of the Partnership for federal income tax purposes. Pursuant to Section
6223(c)(3) of the Code, upon receipt of notice from the IRS of the beginning of
an administrative proceeding with respect to the Partnership, the tax matters
partner shall furnish the IRS with the name, address and profits interest of
each of the Limited Partners, provided that such information is provided to the
Partnership by the Limited Partners.

                  B.       The tax matters partner is authorized, but not
required:

                  (1)      to enter into any settlement with the IRS with
                           respect to any administrative or judicial proceedings
                           for the adjustment of Partnership items required to
                           be taken into account by a Partner for income tax
                           purposes (such administrative proceedings being
                           referred to as a "tax audit" and such judicial
                           proceedings being referred to as "judicial review"),
                           and in the settlement agreement the tax matters
                           partner may expressly state that such agreement shall
                           bind all Partners, except that such settlement
                           agreement shall not bind any Partner (i) who (within
                           the time prescribed pursuant to the Code and
                           Regulations) files a statement with the IRS providing
                           that the tax matters partner shall not have the
                           authority to enter into a settlement agreement on
                           behalf of such Partner or (ii) who is a "notice
                           partner" (as defined in Section 6231 of the Code) or
                           a member of a "notice group" (as defined in Section
                           6223(b)(2) of the Code);

                  (2)      in the event that a notice of a final administrative
                           adjustment at the Partnership level of any item
                           required to be taken into account by a Partner for
                           tax purposes (a "final adjustment") is mailed to the
                           tax matters partner, to seek judicial review of such
                           final adjustment, including the filing of a petition
                           for readjustment with the Tax Court or the United
                           States Claims Court, or the filing of a complaint for
                           refund with the District Court of the United States
                           for the district in which the Partnership's principal
                           place of business is located;

                  (3)      to intervene in any action brought by any other
                           Partner for judicial review of a final adjustment;

                                     - 47 -
<PAGE>

                  (4)      to file a request for an administrative adjustment
                           with the IRS at any time and, if any part of such
                           request is not allowed by the IRS, to file an
                           appropriate pleading (petition or complaint) for
                           judicial review with respect to such request;

                  (5)      to enter into an agreement with the IRS to extend the
                           period for assessing any tax which is attributable to
                           any item required to be taken into account by a
                           Partner for tax purposes, or an item affected by such
                           item; and

                  (6)      to take any other action on behalf of the Partners of
                           the Partnership in connection with any tax audit or
                           judicial review proceeding to the extent permitted by
                           applicable law or regulations.

         The taking of any action and the incurring of any expense by the tax
matters partner in connection with any such proceeding, except to the extent
required by law, is a matter in the sole and absolute discretion of the tax
matters partner and the provisions relating to indemnification of Indemnitees
set forth in Section 7.7 of this Agreement shall be fully applicable to the tax
matters partner in its capacity as such.

                  C.       The tax matters partner shall receive no compensation
for its services. All third party costs and expenses incurred by the tax matters
partner in performing its duties as such (including legal and accounting fees)
shall be borne by the Partnership. Nothing herein shall be construed to restrict
the Partnership from engaging an accounting firm to assist the tax matters
partner in discharging its duties hereunder.

         Section 10.4      Organizational Expenses

         The Partnership shall elect to deduct expenses, if any, incurred by it
in organizing the Partnership ratably over a sixty (60)-month period as provided
in Section 709 of the Code.

         Section 10.5      Withholding

         Each Limited Partner hereby authorizes the Partnership to withhold from
or pay on behalf of or with respect to such Limited Partner any amount of
federal, state, local, or foreign taxes that the General Partner determines that
the Partnership is required to withhold or pay with respect to any amount
distributable or allocable to such Limited Partner pursuant to this Agreement,
including, without limitation, any taxes required to be withheld or paid by the
Partnership pursuant to Sections 1441, 1442, 1445, or 1446 of the Code. Any
amount paid on behalf of or with respect to a Limited Partner shall constitute a
loan by the Partnership to such Limited Partner, which loan shall be repaid by
such Limited Partner within fifteen (15) days after notice from the General
Partner that such payment must be made unless (i) the Partnership withholds such
payment from a distribution which would otherwise be made to the Limited
Partner, or (ii) the General Partner determines, in its sole and absolute
discretion, that such payment may be satisfied out of the available funds of the
Partnership which would, but for such payment, be distributed to the Limited
Partner. Any amounts withheld pursuant to the foregoing clauses (i) or (ii)
shall be treated as having been distributed to such Limited Partner. Each
Limited Partner hereby unconditionally and irrevocably grants to the Partnership
a security interest in such Limited Partner's Partnership Interest to secure
such Limited Partner's obligation

                                     - 48 -
<PAGE>

to pay to the Partnership any amounts required to be paid pursuant to this
Section 10.5. In the event that a Limited Partner fails to pay any amounts owed
to the Partnership pursuant to this Section 10.5 when due, the General Partner
may, in its sole and absolute discretion, elect to make the payment to the
Partnership on behalf of such defaulting Limited Partner, and in such event
shall be deemed to have loaned such amount to such defaulting Limited Partner
and, until repayment of such loan, shall succeed to all rights and remedies of
the Partnership as against such defaulting Limited Partner (including, without
limitation, the right to receive distributions). Any amounts payable by a
Limited Partner hereunder shall bear interest at the base rate on corporate
loans at large United States money center commercial banks, as published from
time to time in the Wall Street Journal, plus four percentage points (but not
higher than the maximum lawful rate) from the date such amount is due (i.e.,
fifteen (1 5) days after demand) until such amount is paid in full. Each Limited
Partner shall take such actions as the Partnership or the General Partner shall
request in order to perfect or enforce the security interest created hereunder.

                                   ARTICLE XI
                            TRANSFERS AND WITHDRAWALS

         Section 11.1      Transfer

                  A.       The term "transfer," when used in this Article 11
with respect to a Partnership Interest, shall be deemed to refer to a
transaction by which the General Partner purports to assign its General
Partnership Interest to another Person or by which a Limited Partner purports to
assign its Limited Partnership Interest to another Person, and includes a sale,
assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange or any
other disposition by law or otherwise. The term "transfer" when used in this
Article 11 does not include any exchange of Partnership Units by a Limited
Partner pursuant to Section 8.6.

                  B.       No Partnership Interest shall be transferred, in
whole or in part, except in accordance with the terms and conditions set forth
in this Article 11. Any transfer or purported transfer of a Partnership Interest
not made in accordance with this Article 11 shall be null and void.

         Section 11.2      Transfer of Partnership Interests of the General
                           Partner

                  A.       The General Partner shall not withdraw from the
Partnership or transfer all or any portion of its interest in the Partnership
except in connection with a transaction described in Section 11.2.B or 11.2.C.

                  B.       Crescent Equities shall not engage in any merger,
consolidation or other combination with or into another Person, or sale of all
or substantially all of its assets, or any reclassification, or recapitalization
or change of outstanding REIT Shares (other than a reincorporation, a
reorganization primarily for the purpose of changing domicile or converting to
corporate form, a change in par value, or from par value to no par value, or as
a result of a subdivision or combination as described in the definition of
"Exchange Factor," which require no consent of the Limited Partners under this
Agreement) ("Transaction"), unless the Transaction either:

                                     - 49 -
<PAGE>

                  (1)      includes a merger of the Partnership or sale of
                           substantially all of the assets of the Partnership,
                           as a result of which all Limited Partners will
                           receive for each Partnership Unit an amount of cash,
                           securities, or other property equal to the product of
                           the Exchange Factor and the greatest amount of cash,
                           securities or other property paid to a holder of one
                           REIT Share in consideration of one REIT Share at any
                           time during the period from and after the date on
                           which the Transaction is consummated, provided that
                           if, in connection with the Transaction, a purchase,
                           tender or exchange offer shall have been made to and
                           accepted by the holders of more than fifty percent
                           (50%) of the outstanding REIT Shares, the holders of
                           Partnership Units shall receive the greatest amount
                           of cash, securities, or other property which a
                           Limited Partner would have received had it exercised
                           the Exchange Right and received REIT Shares in
                           exchange for all of its Partnership Units immediately
                           prior to the expiration of such purchase, tender or
                           exchange offer; or

                  (2)      provides that the Partnership shall continue as a
                           separate entity and grants to the Limited Partners
                           exchange rights with respect to the ownership
                           interests in the new entity that are substantially
                           equivalent to the Exchange Rights provided for in
                           Section 8.6.

                  C.       Crescent Equities shall not transfer all or any
portion of its ownership interest in the General Partner; provided, however,
that Crescent Equities may liquidate the General Partner.

         Section 11.3      Transfer of Partnership Interests of Limited Partners
                           Other Than Crescent Equities

                  A.       Subject to the provisions of Sections 11.3.C, 11.3.D,
11.3.E, 11.3.F and 11.3.G hereof, any Limited Partner other than Crescent
Equities may freely transfer all or any portion of its Partnership Interest. Any
transferee of a Limited Partnership Interest (whether such transferee is a
Substituted Limited Partner or an Assignee) shall also become the owner of any
Partnership Units associated with such Limited Partnership Interest, and shall
be entitled to exercise the Exchange Rights with respect to such Partnership
Units in accordance with the terms and conditions set forth in Section 8.6
above.

                  B.       If a Limited Partner is Incapacitated, the executor,
administrator, trustee, committee, guardian, conservator or receiver of such
Limited Partner's estate shall have all the rights of a Limited Partner, but not
more rights than those enjoyed by other Limited Partners, for the purpose of
settling or managing the estate and such power as the Incapacitated Limited
Partner possessed to transfer all or any part of its interest in the
Partnership. The Incapacity of a Limited Partner, in and of itself, shall not
dissolve or terminate the Partnership.

                  C.       The General Partner may prohibit any transfer
otherwise permitted under this Section 11.3 by a Limited Partner of its
Partnership Interest if, in the opinion of legal counsel to the Partnership,
such transfer would require filing of a registration statement under the

                                     - 50 -
<PAGE>

Securities Act or would otherwise violate any federal or state securities laws
or regulations applicable to the Partnership or the Partnership Interest.

                  D.       No transfer by a Limited Partner of its Partnership
Interest may be made to any Person if (i) in the opinion of legal counsel for
the Partnership, it would result in the Partnership being treated as an
association taxable as a corporation for federal income tax purposes, or result
in a termination of the Partnership for federal income tax purposes, (ii) in the
opinion of the legal counsel for the Partnership, it would adversely affect the
ability of Crescent Equities to continue to qualify as a REIT or subject
Crescent Equities to any additional taxes under Section 857 or Section 4981 of
the Code, or (iii) the General Partner determines that such transfer is
effectuated through or, together with other similar transfers, could result in
the creation of an "established securities market" or a "secondary market (or
the substantial equivalent thereof)" or otherwise increase the likelihood that
the Partnership would be treated as a "publicly traded partnership" within the
meaning of Code Section 7704 and the related Notice 88-75, 1988-2 C.B. 386, and
Treasury Regulations Section 1.7704-1.

                  E.       No transfer by a Limited Partner of its Partnership
Interest may be made (i) to any Person who lacks the legal right, power or
capacity to own a Partnership Interest, (ii) in violation of any provision of
any mortgage or trust deed (or the note or bond secured thereby) constituting a
Lien against an asset of the Partnership, (iii) in violation of applicable law,
or (iv) if such transfer would, in the opinion of counsel to the Partnership,
cause any portion of the assets of the Partnership to constitute assets of any
employee benefit plan pursuant to Department of Labor regulations section
2510.2-101.

                  F.       No transfer of a Limited Partnership Interest may be
made to a lender to the Partnership or any Person who is related (within the
meaning of Regulations Section 1.752-4(b)) to any lender to the Partnership
whose loan constitutes a Nonrecourse Liability, except with the consent of the
General Partner, which consent may be granted or withheld in the sole and
absolute discretion of the General Partner.

         Section 11.4      Substituted Limited Partners

                  A.       Except as otherwise expressly provided in the last
sentence of this Section 11.4.A, no Limited Partner shall have the right to
substitute a transferee as a Limited Partner in its place without the consent of
the General Partner, which consent may be granted or withheld by the General
Partner in its sole and absolute discretion. The General Partner's failure or
refusal to permit a transferee of a Limited Partnership Interest to become a
Substituted Limited Partner shall not give rise to any cause of action against
the Partnership or any Partner. Notwithstanding anything to the contrary
contained above in this Section 11.4.A, if the transferee of a Limited
Partnership Interest is a Person listed on Exhibit E attached hereto, the
General Partner shall be required to admit such transferee as a Substituted
Limited Partner, provided that (i) the transfer of the Limited Partnership
Interest to such Person is not prohibited under the provisions of Sections
11.3.C through G hereof, and (ii) such transferee complies with the provisions
of the second sentence of Section 11.4.B hereof.

                  B.       A transferee who has been admitted as a Substituted
Limited Partner in accordance with this Article 11 shall have all the rights and
powers and be subject to all the

                                     - 51 -
<PAGE>

restrictions and liabilities of a Limited Partner under this Agreement. The
admission of any transferee as a Substituted Limited Partner shall be subject to
the transferee executing and delivering to the Partnership an acceptance of all
of the terms and conditions of this Agreement (including, without limitation,
the provisions of Section 2.4) and such other documents or instruments as may be
required to effect the admission.

                  C.       Upon the admission of a Substituted Limited Partner,
the General Partner shall amend Exhibit A to reflect the name, address, number
of Partnership Units, and Partnership Interest of such Substituted Limited
Partner and to eliminate or adjust, if necessary, the name, address and interest
of the predecessor of such Substituted Limited Partner.

         Section 11.5      Assignees

         If the General Partner, in its sole and absolute discretion, does not
consent to the admission of any permitted transferee under Section 11.3 as a
Substituted Limited Partner, as described in Section 11.4, such transferee shall
be considered an Assignee for purposes of this Agreement. An Assignee shall be
deemed to have had assigned to it, and shall be entitled to receive
distributions from the Partnership and the share of Net Income, Net Losses,
Recapture Income, and any other items of income, gain, loss, deduction and
credit of the Partnership attributable to the Partnership Interest transferred
to such transferee, but shall not be entitled to vote such Partnership Interest
on any matter presented to the Limited Partners for a vote (such Partnership
Interest being deemed to have been voted on such matter in the same proportion
as all other Partnership Interests held by the Limited Partners are voted). In
the event any such transferee desires to make a further transfer of any such
Partnership Interest, such transferee shall be subject to all of the provisions
of this Article 11 to the same extent and in the same manner as any Limited
Partner desiring to make a transfer of a Partnership Interest.

         Section 11.6      General Provisions

                  A.       No Limited Partner may withdraw from the Partnership
other than as a result of a permitted transfer of all of such Limited Partner's
Partnership Interest in accordance with this Article 11 or pursuant to an
exchange of its Partnership Interest under Section 8.6.

                  B.       Any Limited Partner who shall transfer all of its
Partnership Interest in a permitted transfer pursuant to this Article 11 or
pursuant to an exchange of all of its Partnership Units under Section 8.6 shall
cease to be a Limited Partner.

                  C.       If any Partnership Interest is exchanged pursuant to
Section 8.6 or transferred pursuant to this Article 11 at any time other than
the end of a fiscal year, Net Income, Net Loss, each item thereof and all other
items attributable to such interest for such fiscal year shall be allocated
between the transferor Partner and the transferee Partner in the same ratio as
the number of days in such fiscal year before and after such transfer, except
that gain or loss attributable to the sale or other disposition of all or any
substantial portion of the Partnership assets or to other extraordinary
non-recurring items shall be allocated to the owner of the Partnership Interest
as of the date of closing of the sale or other disposition, or, with respect to
other extraordinary non-recurring items, the date the profit is realized or the
loss is incurred, as the case may be. Solely for purposes of the allocations to
be made under the preceding sentence

                                     - 52 -
<PAGE>

(but not for any other purpose), (i) any Partnership Interest that is exchanged
or otherwise transferred prior to the eighth day of a month shall receive
allocations under the preceding sentence as if it had been transferred on the
first day of the month, (ii) any Partnership Interest that is exchanged or
otherwise transferred on or after the eighth day of a month and prior to the
twenty-third day of such month shall receive allocations under the preceding
sentence as if it had been transferred on the fifteenth day of the month, and
(iii) any Partnership Interest that is exchanged or otherwise transferred on or
after the twenty-third day of a month shall receive allocations under the
preceding sentence as if it had been transferred on the first day of the next
succeeding month. All distributions of Available Cash with respect to which the
Partnership Record Date is before the date of such transfer or exchange shall be
made to the transferor Partner, and all distributions of Available Cash
thereafter shall be made to the transferee Partner.

         Section 11.7      Acquisition of Partnership Interest by Partnership

         The Partnership may acquire, by purchase, redemption or otherwise, any
Partnership Interest or other interest of a Partner in the Partnership. Any
Partnership Interest or other interest so acquired by the Partnership shall be
deemed canceled. In the event that a Partnership Interest is acquired by the
Partnership pursuant to this Section 11.7, the Partnership Interest of each
other existing Partner shall be increased, as of the date of acquisition of such
Partnership Interest by the Partnership, such that the Partnership Interest of
each Partner shall be equal to the sum of (a) each Partner's existing
Partnership Interest, plus (b) the product obtained by multiplying (i) each
Partner's existing Partnership Interest by (ii) a fraction, the numerator of
which is equal to the Partnership Interest acquired by the Partnership and the
denominator of which is equal to the result obtained by subtracting (A) one
minus (B) the Partnership Interest acquired by the Partnership.

                                  ARTICLE XII
                              ADMISSION OF PARTNERS

         Section 12.1      Admission of Substituted General Partner

         A successor to all of the General Partner's General Partnership
Interest pursuant to Section 11.2 hereof who is proposed to be admitted as a
substituted General Partner shall be admitted to the Partnership as the General
Partner, effective simultaneously with such transfer. Any such transferee shall
carry on the business of the Partnership without dissolution. In each case, the
admission shall be subject to the substituted General Partner executing and
delivering to the Partnership an acceptance of all of the terms and conditions
of this Agreement and such other documents or instruments as may be required to
effect the admission.

         Section 12.2      Admission of Additional or Employee Limited Partners

                  A.       After the admission to the Partnership of the Limited
Partners on the date hereof, a Person who makes a Capital Contribution to the
Partnership in accordance with Section 4.3 hereof or receives a Limited
Partnership Interest pursuant to Section 4.7 hereof shall be admitted to the
Partnership as an Additional Limited Partner or Employee Limited Partner, as the
case may be, only upon furnishing to the General Partner (i) evidence of
acceptance in form satisfactory to the General Partner of all of the terns and
conditions of this Agreement, including,

                                     - 53 -
<PAGE>

without limitation, the power of attorney granted in Section 2.4 hereof, and
(ii) such other documents or instruments as may be required in the discretion of
the General Partner in order to effect such Person's admission as an Additional
Limited Partner or Employee Limited Partner, as the case may be. The admission
of any Person as an Additional Limited Partner or Employee Limited Partner, as
the case may be, shall become effective on the date upon which the name of such
Person is recorded on the books and records of the Partnership, following the
consent of the General Partner to such admission.

                  B.       If any Additional Limited Partner or Employee Limited
Partner is admitted to the Partnership at any time other than the end of a
fiscal year, Net Income, Net Loss, each item thereof and all other items for
such fiscal year shall be allocated among such Additional Limited Partner or
Employee Limited Partner and all other Partners by taking into account their
varying interests during such fiscal year in accordance with Section 706(d) of
the Code. For this purpose, Net Income, Net Loss, each item thereof and all
other items for such fiscal year shall be prorated based on the portion of the
taxable year that has elapsed prior to the admission of such Additional Limited
Partner or Employee Limited Partner, except that gain or loss attributable to
the sale or other disposition of all or any substantial portion of the
Partnership assets or to other extraordinary non-recurring items shall be
allocated to the Partners who own Partnership Interests as of the date of
closing of the sale or other disposition, or, with respect to other
extraordinary non-recurring items, the date the profit is realized or the loss
is incurred, as the case may be. Solely for purposes of the allocations to be
made under the preceding sentence (but not for any other purpose), (i) any
Additional Limited Partner or Employee Limited Partner that is admitted to the
Partnership prior to the eighth day of a month shall receive allocations under
the preceding sentence as if such Partner had been admitted on the first day of
the month, (ii) any Additional Limited Partner or Employee Limited Partner that
is admitted to the Partnership on or after the eighth day of the month and prior
to the twenty-third day of such month shall receive allocations under the
preceding sentence as if such Partner had been admitted on the fifteenth day of
the month, and (iii) any Additional Limited Partner or Employee Limited Partner
that is admitted to the Partnership on or after the twenty-third day of a month
shall receive allocations under the preceding sentence as if such Partner had
been admitted on the first day of the next succeeding month. All distributions
of Available Cash with respect to which the Partnership Record Date is before
the date of admission of such Additional Limited Partner or Employee Limited
Partner shall be made solely to Partners other than the Additional Limited
Partner or Employee Limited Partner, and all distributions of Available Cash
thereafter shall be made to all Partners including the Additional Limited
Partner or Employee Limited Partner.

                  C.       Greenbrier has executed and delivered to the General
Partner the Greenbrier Agreement. The General Partner, exercising its discretion
pursuant to Section 12.2.A hereof, hereby agrees that the Greenbrier Agreement
is the sole document required to effectuate the admission to the Partnership of
Greenbrier as an Additional Limited Partner. The Greenbrier Agreement contains
an "evergreen" provision so that it shall be deemed reexecuted and delivered to
the General Partner by Greenbrier if, as and whenever it shall acquire future
installments of Partnership Units under the Consultant Unit Agreement if, prior
to the acquisition of any such future installment, it shall have exchanged all
of its Partnership Units and consequently ceased to be a Limited Partner
pursuant to Section 11.6.B hereof. Accordingly, if, as and whenever Greenbrier
receives Partnership Units pursuant to the terms of the Consultant Unit
Agreement, the General Partner shall automatically admit Greenbrier as an
Additional Limited Partner

                                     - 54 -
<PAGE>

without requiring any additional documentation from Greenbrier, even if
Greenbrier is not at that time a Limited Partner of the Partnership.

         Section 12.3      Amendment of Agreement and Certificate of Limited
                           Partnership

         For the admission to the Partnership of any Partner in accordance with
the provisions of this Agreement, the General Partner shall take all steps
necessary and appropriate under the Act to amend the records of the Partnership
and, if necessary, to prepare as soon as practical an amendment of this
Agreement (including an amendment of Exhibit A) and, if required by law, shall
prepare and file an amendment to the Certificate and may for this purpose
exercise the power of attorney granted pursuant to Section 2.4 hereof.

                                  ARTICLE XIII
                           DISSOLUTION AND LIQUIDATION

         Section 13.1      Dissolution

         The Partnership shall not be dissolved by the admission of Substituted
Limited Partners, Additional Limited Partners or Employee Limited Partners, or
by the admission of a substituted General Partner in accordance with the terms
of this Agreement. Upon the withdrawal of the General Partner, any substituted
General Partner shall continue the business of the Partnership. The Partnership
shall dissolve, and its affairs shall be wound up, upon the first to occur of
any of the following ("Liquidating Events"):

                  A.       the expiration of its term as provided in Section 2.5
hereof.

                  B.       an event of withdrawal of the General Partner, as
defined in the Act (other than (i) a liquidation of the General Partner into
Crescent Equities, in which event Crescent Equities shall become the General
Partner, or (ii) an event of Bankruptcy), unless within ninety (90) days after
the withdrawal remaining Partners owning a majority-in-interest of the total
Partnership Interests of the remaining Partners agree in writing to continue the
business of the Partnership and to the appointment, effective immediately prior
to the date of withdrawal, of a substitute General Partner;

                  C.       an election to dissolve the Partnership made in
writing by the General Partner;

                  D.       entry of a decree of judicial dissolution of the
Partnership pursuant to the provisions of the Act;

                  E.       the sale of all or substantially all of the assets
and properties of the Partnership, unless the General Partner elects to continue
the Partnership business for the purpose of the receipt and the collection of
indebtedness or the collection of other consideration to be received in exchange
for the assets of the Partnership (which activities shall be deemed to be part
of the winding up of the Partnership); or

                  F.       a final and non-appealable judgment is entered by a
court with appropriate jurisdiction ding that either Crescent Equities or the
General Partner is bankrupt or insolvent, or a

                                     - 55 -
<PAGE>

final and non-appealable order for relief is entered by a court with appropriate
jurisdiction against either Crescent Equities or the General Partner, in each
case under any federal or state bankruptcy or insolvency laws as now or
hereafter in effect, unless prior to the entry of such order or judgment
remaining Partners owning a majority-in-interest of the total Partnership
Interests of the remaining Partners agree in writing to continue the business of
the Partnership and to the appointment, effective as of a date prior to the date
of such order or judgment, of a substituted General Partner.

         Section 13.2      Winding Up

                  A.       Upon the occurrence of a Liquidating Event, the
Partnership shall continue solely for the purposes of winding up its affairs in
an orderly manner, liquidating its assets (subject to the provisions of Section
13.2.B below), and satisfying the claims of its creditors and Partners. No
Partner shall take any action that is inconsistent with, or not necessary to or
appropriate for, the winding up of the Partnership's business and affairs. The
General Partner (or, in the event there is no remaining General Partner, any
Person elected by Limited Partners owning a majority-in-interest of the total
Partnership Interests of the Limited Partners (the "Liquidator")) shall be
responsible for overseeing the winding up and dissolution of the Partnership and
shall take full account of the Partnership's liabilities and property and the
Partnership property shall be liquidated as promptly as is consistent with
obtaining the fair market value thereof, and the proceeds therefrom (which may,
to the extent determined by the General Partner, include shares of stock in
Crescent Equities) shall be applied and distributed in the following order:

                  (1)      First, to the payment and discharge of all of the
                           Partnership's debts and liabilities to creditors
                           other than the Partners;

                  (2)      Second, to the payment and discharge of all of the
                           Partnership's debts and liabilities to the Partners;
                           and

                  (3)      The balance, if any, to the General Partner and
                           Limited Partners in accordance with their positive
                           Capital Account balances, after giving effect to all
                           contributions, distributions, and allocations for all
                           periods.

The General Partner shall not receive any additional compensation for any
services performed pursuant to this Article 13.

                  B.       Notwithstanding the provisions of Section 13.2.A
hereof which require liquidation of the assets of the Partnership, but subject
to the order of priorities set forth therein, if prior to or upon dissolution of
the Partnership the Liquidator determines that an immediate sale of part or all
of the Partnership's assets would be impractical or would cause undue loss to
the Partners, the Liquidator may, in its sole and absolute discretion, defer for
a reasonable time the liquidation of any assets except those necessary to
satisfy liabilities of the Partnership (including to those Partners as
creditors) and/or distribute to the Partners, in lieu of cash, as tenants in
common and in accordance with the provisions of Section 13.2.A hereof, undivided
interests in such Partnership assets as the Liquidator deems not suitable for
liquidation. Any such distributions in kind shall be made only if, in the good
faith judgment of the Liquidator, such

                                     - 56 -
<PAGE>

distributions in kind are in the best interest of the Partners, and shall be
subject to such conditions relating to the disposition and management of such
properties as the Liquidator deems reasonable and equitable and to any
agreements governing the operation of such properties at such time. The
Liquidator shall determine the fair market value of any property distributed in
kind using such reasonable method of valuation as it may adopt.

                  C.       As part of the liquidation and winding-up of the
Partnership, a proper accounting shall be made of the Capital Account of each
Partner, including an analysis of changes to the Capital Account from the date
of the last previous accounting. Financial statements presenting such accounting
shall include a report of an independent certified public accountant selected by
the Liquidator.

                  D.       As part of the liquidation and winding-up of the
Partnership, the Liquidator may sell Partnership assets (or assets owned by the
Subsidiary Corporations, the Management Company, or any other entity in which
the Partnership is an owner), at the best price and on the best terms and
conditions as the Liquidator in good faith believes are reasonably available at
the time.

         Section 13.3      Compliance with Timing Requirements of Regulations

         In the event the Partnership is "liquidated" within the meaning of
Regulations Section 1.704-1(b)(2)(ii)(g), distributions shall be made pursuant
to this Article 13 to the General Partner and Limited Partners who have positive
Capital Accounts in compliance with Regulations Section 1.704-1(b)(2)(ii)(b)(2).
If any Partner has a deficit balance in its Capital Account (after giving effect
to all contributions, distributions and allocations for all taxable years,
including the year during which such liquidation occurs), such Partner shall
have no obligation to make any contribution to the capital of the Partnership
with respect to such deficit, and such deficit shall not be considered a debt
owed to the Partnership or to any other Person for any purpose whatsoever. In
the discretion of the Liquidator, a pro rata portion of the distributions that
would otherwise be made to the General Partner and Limited Partners pursuant to
this Article 13 may be:

                  (i)      distributed to a trust established for the benefit of
the General Partner and Limited Partners for the purposes of liquidating
Partnership assets, collecting amounts owed to the Partnership, and paying any
contingent or unforeseen liabilities or obligations of the Partnership or of the
General Partner arising out of or in connection with the Partnership. The assets
of any such trust shall be distributed to the General Partner and Limited
Partners from time to time, in the reasonable discretion of the Liquidator, in
the same proportions as the amount distributed to such trust by the Partnership
would otherwise have been distributed to the General Partner and Limited
Partners pursuant to this Agreement; or

                  (ii)     withheld to provide a reasonable reserve for
Partnership liabilities (contingent or otherwise) and to reflect the unrealized
portion of any installment obligations owed to the Partnership, provided that
such withheld amounts shall be distributed to the General Partner and Limited
Partners as soon as practicable.

                                     - 57 -
<PAGE>

         Section 13.4      Deemed Contribution and Distribution

         Notwithstanding any other provisions of this Article 13, in the event
the Partnership is liquidated within the meaning of Regulations Section
1.704-1(b)(2)(ii)(g) but no Liquidating Event has occurred, the Partnership's
property shall not be liquidated, the Partnership's liabilities shall not be
paid or discharged, and the Partnership's affairs shall not be wound up.
Instead, in accordance with Regulations Section 1.708-1(b)(4), the Partnership
shall be deemed to have contributed all of its assets and liabilities to a new
partnership in exchange for an interest in the new partnership. Immediately
thereafter, the Partnership shall be deemed to have liquidated by distributing
the interests in the new partnership to the new General Partner and the Limited
Partners.

         Section 13.5      Rights of Limited Partners

         Except as otherwise provided in this Agreement, each Limited Partner
shall look solely to the assets of the Partnership for the return of its Capital
Contribution and shall have no right or power to demand or receive property
other than cash from the Partnership. No Limited Partner shall have priority
over any other Limited Partner as to the return of its Capital Contributions,
distributions, or allocations, except as permitted by Section 8.7.C or otherwise
expressly provided in this Agreement.

         Section 13.6      Documentation of Liquidation

         Upon the completion of the liquidation of the Partnership cash and
property as provided in Section 13.2 hereof, the Partnership shall be terminated
and the Certificate and all qualifications of the Partnership as a foreign
limited partnership in jurisdictions other than the State of Delaware shall be
canceled and such other actions as may be necessary to terminate the Partnership
shall be taken. The Liquidator shall have the authority to execute and record
any and all documents or instruments required to effect the dissolution,
liquidation and termination of the Partnership.

         Section 13.7      Reasonable Time for Winding-Up

         A reasonable time shall be allowed for the orderly winding-up of the
business and affairs of the Partnership and the liquidation of its assets
pursuant to Section 13.2 hereof, in order to minimize any losses otherwise
attendant upon such winding-up, and the provisions of this Agreement shall
remain in effect between the Partners during the period of liquidation.

         Section 13.8      Liability of the Liquidator

         The Liquidator shall be indemnified and held harmless by the
Partnership from and against any and all claims, demands, liabilities, costs,
damages and causes of action of any nature whatsoever arising out of or
incidental to the Liquidator's taking of any action authorized under or within
the scope of this Agreement; provided, however, that the Liquidator shall not be
entitled to indemnification, and shall not be held harmless, where the claim,
demand, liability, cost, damage or cause of action at issue arises out of:

                                     - 58 -
<PAGE>

                  (1)      a matter entirely unrelated to the Liquidator's
                           action or conduct pursuant to the provisions of this
                           Agreement; or

                  (2)      the proven willful misconduct or gross negligence of
                           the Liquidator.

         Section 13.9      Waiver of Partition

         Each Partner hereby waives any right to a partition of the Partnership
property.

                                  ARTICLE XIV
                             AMENDMENT OF AGREEMENT

         Section 14.1      Amendments

                  A.       Amendments to this Agreement may be proposed by the
General Partner. Except as provided in Section 14.1.B or 14.1.C, a proposed
amendment shall be adopted and be effective as an amendment hereto if it is
approved by the General Partner and Limited Partners owning a
majority-in-interest of the total Partnership Interests of the Limited Partners.

                  B.       Notwithstanding Section 14.1.A, the General Partner
shall have the power, without the Consent of the Limited Partners, to amend this
Agreement as may be required to facilitate or implement any of the following
purposes:

                  (1)      to add to the obligations of the General Partner or
                           surrender any right or power granted to the General
                           Partner or any Affiliate of the General Partner for
                           the benefit of the Limited Partners;

                  (2)      to reflect the admission, substitution, termination,
                           or withdrawal of Partners in accordance with this
                           Agreement (including, without limitation, adjustments
                           to Exhibit A to reflect such events, as set forth in
                           Section 4.1.B hereof); and

                  (3)      to reflect a change that is of an inconsequential
                           nature and does not adversely affect the Limited
                           Partners in any material respect, or to cure any
                           ambiguity, correct or supplement any provision in
                           this Agreement not inconsistent with law or with
                           other provisions, or make other changes with respect
                           to matters arising under this Agreement that will not
                           be inconsistent with law or with the provisions of
                           this Agreement.

                  C.       Notwithstanding anything to the contrary contained in
Section 14.1.A hereof, this Agreement shall not be amended without the prior
written consent of each Partner adversely affected if such amendment would (i)
convert a Limited Partner's interest in the Partnership into a general partner's
interest, (ii) modify the limited liability of a Limited Partner, (iii) alter
rights of the Partner to receive distributions pursuant to Article 5, or the
allocations specified in Article 6 (except as permitted pursuant to Sections
4.2, 4.3, 4.6, 4.7, 8.7 and Section 14.1.B(3) hereof), (iv) alter or modify the
Exchange Rights set forth in Section 8.6, or the right set forth in Section
11.2.B, (v) cause the termination of the Partnership prior to the time set forth
in Sections 2.5 or 13.1, or (vi) amend this Section 14.1.C. Further, no
amendment may alter the

                                     - 59 -
<PAGE>

restrictions on the General Partner's authority set forth in Section 7.3 without
the consent of all Limited Partners.

                                   ARTICLE XV
                     PARTNER REPRESENTATIONS AND WARRANTIES

         Section 15.1      Representations and Warranties

                  A.       Each Partner represents and warrants severally and
not jointly, and solely on behalf of itself, to the Partnership and the other
Partners as follows:

                           (1)      Organization. If such Partner is not a
natural person, such Partner is duly formed and validly existing and is
qualified to do business and in good standing in the jurisdictions in which it
does business.

                           (2)      Due Authorization; Binding Agreement. This
Agreement has been duly executed and delivered by such Partner, or an authorized
representative of such Partner, and constitutes a legal, valid and binding
obligation of such Partner, enforceable against such Partner in accordance with
the terms hereof.

                           (3)      Consents and Approvals. No consent, waiver,
approval or authorization of, or filing, registration or qualification with, or
notice to, any governmental unit or any other person is required to be made,
obtained or given by such Partner in connection with the execution, delivery and
performance of this Agreement other than consents, waivers, approvals or
authorizations which have been obtained prior to the date hereof.

                           (4)      No Conflict with Other Documents or
Violation of Law. The execution of this Agreement by such Partner and such
Partner's performance of the transactions contemplated herein will not violate
any document, instrument, agreement, stipulation, judgment, order, or any
applicable federal, state or local law, ordinance or regulation to which such
Partner is a party or by which such Partner is bound.

                  B.       Each Limited Partner represents and warrants that its
Limited Partnership Interest is being acquired for its own account and not with
a view to the distribution or other sale thereof, except in a transaction which
is exempt from registration under the Securities Act or registered thereunder.
Any distribution or other sale of the Limited Partnership Interest of such
Limited Partner shall be subject to the provisions of Section 11.3 hereof. Such
Limited Partner further represents and warrants to the Partnership and the other
Partners as follows:

                           (1)      If such Limited Partner is a corporation,
partnership or a Massachusetts business trust or similar business trust, it has
not been formed for the specific purpose of acquiring the Limited Partnership
Interest, and has total assets in excess of Five Million Dollars ($5,000,000);

                           (2)      If such Limited Partner is an individual, he
or she had an individual income in excess of $200,000 in each of the two most
recent tax years or joint income with his or her spouse in excess of $300,000 in
each of those years and has a reasonable expectation of reaching at least the
same income level in the current year;

                                     - 60 -
<PAGE>

                           (3)      Such Limited Partner is a sophisticated
investor with the capacity to protect its own interests in investments of this
nature, and is capable of evaluating the merits and risks of an investment in
the Limited Partnership Interest;

                           (4)      Such Limited Partner has had an opportunity
to ask questions and receive answers concerning the investment in the Limited
Partnership Interest, and has all of the information deemed by it to be
necessary or appropriate to evaluate the investment in the Limited Partnership
Interest and the risks and merits thereof;

                           (5)      Such Limited Partner is aware of the
following:

                                    (i)      An investment in the Limited
Partnership Interest is speculative, with no assurance of any income therefrom;

                                    (ii)     No federal or state agency bas made
any finding or determination as to the fairness of the acquisition, or any
recommendation or endorsement of such acquisition;

                                    (iii)    Transferability of the Limited
Partnership Interest is restricted and, accordingly, it may not be possible for
such Limited Partner to liquidate the Limited Partnership Interest in case of
emergency; and

                                    (iv)     With respect to the tax aspects of
an investment in the Limited Partnership Interest, such Limited Partner in
making this acquisition is not relying to any degree upon the advice of Crescent
Equities or the Partnership, or any Person affiliated therewith, but rather
solely upon its own legal, financial and tax advisors.

                                  ARTICLE XVI
                             ARBITRATION OF DISPUTES

         Section 16.1      Arbitration

         Notwithstanding anything to the contrary contained in this Agreement,
all claims, disputes and controversies between the parties hereto (including,
without limitation, any claims, disputes and controversies between the
Partnership and any one or more of the Partners and any claims, disputes and
controversies among any two or more Partners) arising out of or in connection
with this Agreement or the Partnership created hereby, relating to the validity,
construction, performance, breach, enforcement or termination thereof, or
otherwise, shall be resolved by binding arbitration in the State of Texas, in
accordance with this Article 16 and, to the extent not inconsistent herewith,
the Expedited Procedures and Commercial Arbitration Rules of the American
Arbitration Association.

         Section 16.2      Procedures

         Any arbitration called for by this Article 16 shall be conducted in
accordance with the following procedures:

                                     - 61 -
<PAGE>

                           (1)      The Partnership or any partner (the
"Requesting Party") may demand arbitration pursuant to Section 16.1 hereof at
any time by giving written notice of such demand (the "Demand Notice") to all
other Partners and (if the Requesting Party is not the Partnership) to the
Partnership, which Demand Notice shall describe in reasonable detail the nature
of the claim, dispute or controversy.

                           (2)      Within fifteen (15) days after the giving of
a Demand Notice, the Requesting Party, on the one hand, and each of the other
Partners and/or the Partnership against whom the claim has been made or with
respect to which a dispute has arisen, on the other hand, shall select and
designate in writing to the other party one reputable, disinterested individual
deemed competent to arbitrate the claim, dispute or controversy (a "Qualified
Individual") willing to act as an arbitrator of the claim, dispute or
controversy. Within fifteen (15) days after the foregoing selections have been
made, the arbitrators so selected shall jointly select a third Qualified
Individual willing to act as an arbitrator of the claim, dispute or controversy.
In the event that the two arbitrators initially selected are unable to agree on
a third arbitrator within the second fifteen (15) day period referred to above,
then, on the application of either party, the American Arbitration Association
shall promptly select and appoint a Qualified Individual to act as the third
arbitrator. The three arbitrators selected pursuant to this Section 16.2(2)
shall constitute the arbitration panel for the arbitration in question.

                           (3)      The presentations of the parties hereto in
the arbitration proceeding shall be commenced and completed within sixty (60)
days after the selection of the arbitration panel pursuant to Section 16.2(2)
above, and the arbitration panel shall render its decision in writing within
thirty (30) days after the completion of such presentations. Any decision
concurred in by any two (2) of the arbitrators shall constitute the decision of
the arbitration panel, and unanimity shall not be required.

                           (4)      The arbitration panel shall have the
discretion to include in its decision a direction that all or part of the
attorneys' fees and costs of any party or parties and/or the costs of such
arbitration be paid by any other party or parties. On the application of a party
before or after the initial decision of the arbitration panel, and proof of its
attorneys' fees and costs, the arbitration panel shall order the other party to
make any payments directed pursuant to the preceding sentence.

                           (5)      Notwithstanding anything to the contrary
contained above in this Section 16.2, if either party fails to select a
Qualified Individual to act as an arbitrator for such party with the fifteen
(15) day time period set forth in the first sentence of Section 16.2(2), the
Qualified Individual selected by the other party shall serve as sole arbitrator
under this Section 16.2 in lieu of the arbitration panel. Such sole arbitrator
shall have all of the rights and duties of the arbitration panel set forth above
in this Section 16.2.

         Section 16.3      Binding Character

         Any decision rendered by the arbitration panel pursuant to this Article
16 shall be final and binding on the parties hereto, and judgment thereon may be
entered by any state or federal court of competent jurisdiction

                                     - 62 -
<PAGE>

         Section 16.4      Exclusivity

         Arbitration shall be the exclusive method available for resolution of
claims, disputes and controversies described in Section 16.1 hereof, and the
Partnership and its Partners stipulate that the provisions hereof shall be a
complete defense to any suit, action, or proceeding in any court or before any
administrative or arbitration tribunal with respect to any such claim,
controversy or dispute. The provisions of this Article 16 shall survive the
dissolution of the Partnership.

         Section 16.5      No Alteration of Agreement

         Nothing contained herein shall be deemed to give the arbitrators any
authority, power or right to alter, change, amend, modify, add to, or subtract
from any of the provisions of this Agreement.

                                  ARTICLE XVII
                               GENERAL PROVISIONS

         Section 17.1      Addresses and Notice

         All notices, requests, demands and other communications hereunder to a
Partner shall be in writing and shall be deemed to have been duly given if
delivered by hand or if sent by certified mail, return receipt requested,
properly addressed and postage prepaid, or transmitted by commercial overnight
courier to the Partner at the address set forth in Exhibit A or at such other
address as the Partner shall notify the General Partner in writing. Such
communications shall be deemed sufficiently given, served, sent or received for
all purposes at such time as delivered to the addressee (with the return receipt
or delivery receipt being deemed conclusive evidence of such delivery) or at
such time as delivery is refused by the addressee upon presentation.

         Section 17.2      Titles and Captions

         All article or section titles or captions in this Agreement are for
convenience only. They shall not be deemed part of this Agreement and in no way
define, limit, extend or describe the scope or intent of any provisions hereof.
Except as specifically provided otherwise, (i) references to "Articles" and
"Sections" are to Articles and Sections of this Agreement, and (ii) references
to "Exhibits" are to the Exhibits attached to this Agreement. Each Exhibit
attached hereto and referred to herein is hereby incorporated by reference.

         Section 17.3      Pronouns and Plurals

         Whenever the context may require, any pronoun used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the
singular form of nouns, pronouns and verbs shall include the plural and vice
versa. Any references in this Agreement to "including" shall be deemed to mean
"including without limitation."

                                     - 63 -
<PAGE>

         Section 17.4      Further Action

         The parties shall execute and deliver all documents, provide all
information and take or refrain from taking action as may be necessary or
appropriate to achieve the purpose of this Agreement.

         Section 17.5      Binding Effect

         This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their heirs, executors, administrators, successors, legal
representatives and permitted assigns.

         Section 17.6      Creditors

         None of the provisions of this Agreement shall be for the benefit of,
or shall be enforceable by, any creditor of the Partnership.

         Section 17.7      Waiver

         No failure by any party to insist upon the strict performance of any
covenant, duty, agreement or condition of this Agreement or to exercise any
right or remedy consequent upon a breach thereof shall constitute waiver of any
such breach or any other covenant, duty, agreement or condition.

         Section 17.8      No Agency

         Nothing contained herein shall be construed to constitute any partner
the agent of another Partner, except as specifically provided herein, or in any
manner to limit the Partners in the carrying on of their own respective
businesses or activities.

         Section 17.9      Entire Understanding

         This Agreement constitutes the entire agreement and understanding among
the Partners and supersedes any prior understanding and/or written or oral
agreements among them respecting the subject matter herein.

         Section 17.10     Counterparts

         This Agreement may be executed in counterparts, all of which together
shall constitute one agreement binding on all the parties hereto,
notwithstanding that all such parties are not signatories to the original or the
same counterpart. Each party shall become bound by this Agreement immediately
upon affixing its signature hereto.

         Section 17.11     Applicable Law

         This Agreement shall be construed in accordance with and governed by
the laws of the State of Delaware, without regard to the principles of conflicts
of law. The laws of the State of Delaware shall be applied in construing the
Agreement in connection with all arbitration proceedings under Article XVI;
provided that, to the extent that the laws of another jurisdiction

                                     - 64 -
<PAGE>

are otherwise applicable as to procedural requirements relating to the
arbitration, the procedural requirements of such other jurisdiction shall be
complied with.

         Section 17.12     Invalidity of Provisions

         If any provision of this Agreement is or becomes invalid, illegal or
unenforceable in any respects, the validity, legality and enforceability of the
remaining provisions contained herein shall not be affected thereby.

         Section 17.13     Guaranty by Crescent Equities

         Crescent Equities unconditionally and irrevocably guarantees to the
Limited Partners the performance by the General Partner of the obligations of
the General Partner under this Agreement. This guaranty is exclusively for the
benefit of the Limited Partners and shall not extend to the benefit of any
creditor of the Partnership.

         Section 17.14     Restriction on Sale of Sonoma Property

         The General Partner hereby acknowledges that the Partnership's ability
to sell or otherwise transfer the Sonoma Property is subject to certain
restrictions under the Sonorna Contribution Agreement for a period of seven (7)
years after the date of the Sonoma Contribution Agreement, or as otherwise set
forth at the end of Article II of the Sonoma Contribution Agreement.

                                     - 65 -
<PAGE>

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

                                  GENERAL PARTNER:

                                  CRESCENT REAL ESTATE EQUITIES, LTD.,
                                  a Delaware corporation

                                  By: /s/ JERRY R. CRENSHAW, JR.
                                     -------------------------------------------
                                  Name: Jerry R. Crenshaw, Jr.
                                       -----------------------------------------
                                  Title: Executive Vice President, Chief
                                         Financial and Accounting Officer
                                        ----------------------------------------

                                  LIMITED PARTNERS:
                                  as set forth in Exhibit A hereto:

                                  By:   CRESCENT REAL ESTATE EQUITIES,
                                        LTD., as attorney-in-fact pursuant to
                                        Sections 2.4 and 14.1.B of the Agreement

                                        By: /s/ DAVID M. DEAN
                                           -------------------------------------
                                        Name: David M. Dean
                                             -----------------------------------
                                        Title: Executive Vice President, Law and
                                               Administration
                                              ----------------------------------
<PAGE>

                                   EXHIBIT A
             PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS

<TABLE>
<CAPTION>
                                                                                  Partnership        Partnership
            Name and Address of Partner                                              Units            Interests
            ---------------------------                                           -----------        -----------
<S>                                                                               <C>                <C>
General Partner:

Crescent Real Estate Equities, Ltd.                                                    None            1.000000%
777 Main Street
Suite 2100
Fort Worth, TX 76102

Limited Partners (Addresses Omitted):

Crescent Real Estate Equities Company                                                  None           83.290712%

Anderson, John H.                                                                   286,389            0.506735%

Big Bend III Investments, L.P.                                                       18,989            0.033599%

Blalock, Myron G. III                                                                20,857            0.036904%

Canyon Ranch, Inc.                                                                  503,429            0.890764%

Cruce, Ervin D.                                                                       2,110            0.003733%

Friedman, Alan D.                                                                    11,150            0.019729%
</TABLE>

                                      A-1
<PAGE>

<TABLE>
<CAPTION>
                                                                                  Partnership        Partnership
            Name and Address of Partner                                              Units            Interests
            ---------------------------                                           -----------        -----------
<S>                                                                               <C>                <C>
Friedman and Uhlemeyer, Inc.                                                          1,055            0.001867%

Goff, John C.                                                                       906,485            1.603929%

Haddock, Diane                                                                        1,000            0.001769%

Haddock, Gerald W.                                                                  210,419            0.372314%

Hersh, Kenneth A.                                                                       422            0.000747%

Joost, Peter M. and Joost, Lindsay M., Trustees U/T/A
dated April 11, 2002                                                                 25,000            0.044235%

Kelly, Thomas L., II                                                                  8,440            0.014934%

Kelly, W. Whitney                                                                     1,285            0.002274%

Lewis, Michael S.                                                                       960            0.001699%
</TABLE>

                                       A-2
<PAGE>

<TABLE>
<CAPTION>
                                                                                  Partnership        Partnership
            Name and Address of Partner                                              Units            Interests
            ---------------------------                                           -----------        -----------
<S>                                                                               <C>                <C>
Luce, Thomas W., III, Trustee                                                         4,220            0.007467%
David N. Meyerson 1982 Trust UA
8/16/82

Luce, Thomas W., III, Trustee                                                         4,220            0.007467%
Marti A. Meyerson 1982 Trust UA
8/16/82

Moore, Darla                                                                        261,602            0.462877%

Office Towers LLC                                                                 3,135,481            5.547902%

Rainwater, Inc.                                                                      24,753            0.043798%

Rainwater, Courtney E.                                                               21,098            0.037331%

Rainwater, Matthew J.                                                                21,098            0.037331%

Rainwater, Richard Todd                                                              21,098            0.037331%
</TABLE>

                                       A-3
<PAGE>

<TABLE>
<CAPTION>
                                                                                  Partnership        Partnership
            Name and Address of Partner                                              Units            Interests
            ---------------------------                                           -----------        -----------
<S>                                                                               <C>                <C>
Rainwater, Richard E.                                                             2,306,665            4.081400%

Roberts, Peter H.                                                                   339,543            0.600785%

Rosewood Property Company                                                           629,330            1.113533%

Senterra Corporation                                                                 83,441            0.147640%

Taurus Investment Group, Inc.                                                         1,205            0.002132%

Tofsky, Neil H.                                                                      20,857            0.036904%

Varma, Sanjay                                                                         1,266            0.002240%

Wassel, James S.                                                                        598            0.001058%

Wilson, Thomas L.                                                                       642            0.001136%
</TABLE>

                                       A-4
<PAGE>

<TABLE>
<CAPTION>
                                                                                  Partnership        Partnership
            Name and Address of Partner                                              Units            Interests
            ---------------------------                                           -----------        -----------
<S>                                                                               <C>                <C>
Wright, Christina V.                                                                  1,950            0.003450%

Yates, Murphy C.                                                                      1,285            0.002274%
                                                                                  8,878,342                 100%
                                                                                  =========          ==========
</TABLE>

Series A Preferred Partnership Unit Holders:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                                Number of Series A Preferred Partnership                Issue Date
              Holder                            Units
------------------------------------------------------------------------------------------------------------------
<S>                                             <C>                                                     <C>
Crescent Real Estate Equities Company                          8,000,000                                 2/19/98
777 Main Street, Suite 2100
Fort Worth, Texas 76102
------------------------------------------------------------------------------------------------------------------
Crescent Real Estate Equities Company                          2,800,000                                 4/26/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

------------------------------------------------------------------------------------------------------------------
</TABLE>

Series B Redeemable Preferred Partnership Unit Holders:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                                Number of Series B Redeemable Preferred                 Issue Date
              Holder                            Partnership Units
------------------------------------------------------------------------------------------------------------------
<S>                                             <C>                                                     <C>
Crescent Real Estate Equities Company                         3,000,000                                  05/17/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

------------------------------------------------------------------------------------------------------------------
Crescent Real Estate Equities Company                           400,000                                  06/06/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102
------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      A-5
<PAGE>

                                   EXHIBIT B

                           CAPITAL ACCOUNT MAINTENANCE

1.       Capital Accounts of the Partners

         A.       The Partnership shall maintain for each Partner a separate
                  Capital Account in accordance with the rules of Regulations
                  Section 1.704-1(b)(2)(iv). Such Capital Account shall be
                  increased by (i) the amount of all Capital Contributions made
                  by such Partner to the Partnership pursuant to this Agreement
                  and (ii) such Partner's share of Net Income allocated to such
                  Partner pursuant to Section 6.1.A of the Agreement, all items
                  of Partnership income and gain allocated to such Partner
                  pursuant to Section 6.3 of the Agreement, and all items of
                  Partnership income and gain (including income and gain exempt
                  from tax) computed in accordance with Section 1.B hereof and
                  allocated to such Partner pursuant to Exhibit C hereof, and
                  decreased by (x) the amount of cash or Net Asset Value of all
                  actual and deemed distributions of cash or property made to
                  such Partner pursuant to this Agreement and (y) such Partner's
                  share of Net Loss allocated to such Partner pursuant to
                  Section 6.1.A of the Agreement, all items of Partnership
                  deduction and loss allocated to such Partner pursuant to
                  Section 6.3 of the Agreement, and all items of Partnership
                  deduction and loss computed in accordance with Section 1.B
                  hereof and allocated to such Partner pursuant to Exhibit C
                  hereof.

         B.       For purposes of computing the amount of any item of income,
                  gain, deduction or loss to be reflected in the Partners'
                  Capital Accounts, unless otherwise specified in this
                  Agreement, the determination, recognition and classification
                  of any such item shall be the same as its determination,
                  recognition and classification for federal income tax purposes
                  determined in accordance with Section 703(a) of the Code (for
                  this purpose all items of income, gain, loss or deduction
                  required to be stated separately pursuant to Section 703(a)(l)
                  of the Code shall be included in taxable income or loss), with
                  the following adjustments:

                  (1)      Except as otherwise provided in Regulations Section
                           1.704-1(b)(2)(iv)(m), the computation of all items of
                           income, gain, loss and deduction shall be made
                           without regard to any election under Section 754 of
                           the Code which may be made by the Partnership,
                           provided that the amounts of any adjustments to the
                           adjusted bases of the assets of the Partnership made
                           pursuant to Section 734 of the Code as a result of
                           the distribution of property by the Partnership to a
                           Partner (to the extent that such adjustments have not
                           previously been reflected in the Partners' Capital
                           Accounts) shall be reflected in the Capital Accounts
                           of the Partners in the manner and subject to the
                           limitations prescribed in Regulations Section
                           1.704-1(b)(2)(iv)(m).

                  (2)      The computation of all items of income, gain, loss
                           and deduction shall be made without regard to the
                           fact that items described in Sections 705(a)(l)(B) or
                           705(a)(2)(B) of the Code are not includable in gross

                                      B-1
<PAGE>

                           income or arc neither currently deductible nor
                           capitalized for federal income tax purposes.

                  (3)      Any income, gain or loss attributable to the taxable
                           disposition of any Partnership property shall be
                           determined as if the adjusted basis of such property
                           as of such date of disposition were equal in amount
                           to the Partnership's Carrying Value with respect to
                           such property as of such date.

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

                  (5)      In the event the Carrying Value of any Partnership
                           Asset is adjusted pursuant to Section 1.D hereof, the
                           amount of any such adjustment shall be taken into
                           account as gain or loss from the disposition of such
                           asset.

                  (6)      Any items specially allocated under Section 2 of
                           Exhibit C hereof shall not be taken into account.

         C.       A transferee of a Partnership Interest shall succeed to a pro
                  rata portion of the Capital Account of the transferor.

         D.       (1)      Consistent with the provisions of Regulations Section
                           1.704-l(b)(2)(iv)(f), and as provided in Section
                           1.D(2), the Carrying Values of all Partnership assets
                           shall be adjusted upward or downward to reflect any
                           Unrealized Gain or Unrealized Loss attributable to
                           such Partnership property, as of the times of the
                           adjustments provided in Section 1.D(2) hereof, as if
                           such Unrealized Gain or Unrealized Loss had been
                           recognized on an actual sale of each such property
                           and allocated pursuant to Article 6 of the Agreement.

                  (2)      Such adjustments shall be made as of the following
                           times: (a) immediately prior to the acquisition of an
                           additional interest in the Partnership by any new or
                           existing Partner in exchange for more than a de
                           minimis Capital Contribution; (b) immediately prior
                           to the distribution by the Partnership to a Partner
                           of more than a de minimis amount of property as
                           consideration for an interest in the Partnership; and
                           (c) immediately prior to the liquidation of the
                           Partnership within the meaning of Regulations Section
                           1.704-1(b)(2)(ii)(g), provided however that
                           adjustments pursuant to clauses (a) and (b) above
                           shall be made only if the General Partner determines
                           that such adjustments are necessary or appropriate to
                           reflect the relative economic interests of the
                           Partners in the Partnership.

                  (3)      In accordance with Regulations Section
                           1.704-1(b)(2)(iv)(e) the Carrying Value of
                           Partnership assets distributed in kind shall be
                           adjusted upward and downward to reflect any
                           Unrealized Gain or Unrealized Loss attributable to
                           such Partnership property, as of the time any such
                           asset is distributed, as if such Unrealized Gain or
                           Unrealized Loss had been

                                       B-2
<PAGE>

                           recognized on an actual sale of such Partnership
                           property and allocated pursuant to Article 6 of the
                           Agreement.

                  (4)      In determining such Unrealized Gain or Unrealized
                           Loss the aggregate cash amount and fair market value
                           of all Partnership assets (including cash or cash
                           equivalents) shall be determined by the General
                           Partner using such reasonable method of valuation as
                           it may adopt, or in the case of a liquidating
                           distribution pursuant to Article 13 of the Agreement,
                           be determined and allocated by the Liquidator using
                           such reasonable methods of valuation as it may adopt.
                           The General Partner, or the Liquidator, as the case
                           may be, shall allocate such aggregate value among the
                           assets of the Partnership (in such manner as it
                           determines in its sole and absolute discretion to
                           arrive at a fair market value for individual
                           properties).

         E.       The provisions of this Agreement relating to the maintenance
of Capital Accounts are intended to comply with Regulations Section 1.704-l(b)
and shall be interpreted and applied in a manner consistent with such
Regulations. In the event the General Partner shall determine that it is prudent
to modify the manner in which the Capital Accounts, or any debits or credits
thereto (including, without limitation, debits or credits relating to
liabilities which are secured by contributed or distributed property or which
are assumed by the Partnership, the General Partner, or the Limited Partners)
are computed in order to comply with such Regulations, the General Partner may
make such modification, provided that it is not likely to have a material effect
on the amounts distributable to any Person pursuant to Article 13 of the
Agreement upon the dissolution of the Partnership. The General Partner also
shall (i) make any adjustments that are necessary or appropriate to maintain
equality between the Capital Accounts of the Partners and the amount of
Partnership capital reflected on the Partnership's balance sheet, as computed
for book purposes, in accordance with Regulations Section 1.704-1(b)(2)(iv)(q),
and (ii) make any appropriate modifications in the event unanticipated events
might otherwise cause this Agreement not to comply with Regulations Section
1.704-1(b).

                                       B-3
<PAGE>

                                    EXHIBIT C

                          SPECIAL TAX ALLOCATION RULES

1.       Special Allocation Rules.

         Notwithstanding any other provision of the Agreement or this Exhibit C,
the following special allocations shall be made in the following order:

         A.       Minimum Gain Chargeback. Notwithstanding the provisions of
                  Article 6 of the Agreement or any other provisions of this
                  Exhibit C, if there is a net decrease in Partnership Minimum
                  Gain during any fiscal year (except as a result of certain
                  conversions and refinancings of Partnership indebtedness,
                  certain capital contributions, or certain revaluations of the
                  Partnership property as further described in Regulations
                  Sections 1.704-2(d)(4), 1.704-2(f)(2) or 1.704-2(f)(3)), each
                  Partner shall be specially allocated items of Partnership
                  income and gain for such year (and, if necessary, subsequent
                  years) in an amount equal to such Partner's share of the net
                  decrease in Partnership Minimum Gain, as determined under
                  Regulations Section 1.704-2(g). Allocations pursuant to the
                  previous sentence shall be made in proportion to the
                  respective amounts required to be allocated to each Partner
                  pursuant thereto. The items to be so allocated shall be
                  determined in accordance with Regulations Sections
                  1.704-2(f)(6) and 1.704-2(j)(2). This Section 1.A is intended
                  to comply with the minimum gain chargeback requirements in
                  Regulations Section 1.704-2(f) and for purposes of this
                  Section 1.A. only, each Partner's Adjusted Capital Account
                  Deficit shall be determined prior to any other allocations
                  pursuant to Article 6 of the Agreement with respect to such
                  fiscal year and without regard to any decrease in Partner
                  Minimum Gain during such fiscal year.

         B.       Partner Minimum Gain Chargeback. Notwithstanding any other
                  provision of Article 6 of the Agreement or any other
                  provisions of this Exhibit C (except Section 1.A hereof), if
                  there is a net decrease in Partner Minimum Gain attributable
                  to a Partner Nonrecourse Debt during any fiscal year (except
                  as a result of certain conversions and refinancings of
                  Partnership indebtedness, certain capital contributions, or
                  certain revaluations of the Partnership property as further
                  described in Regulations Sections 1.704-2(i)(3) and
                  1.704-2(i)(4)), each Partner who has a share of the Partner
                  Minimum Gain attributable to such Partner Nonrecourse Debt,
                  determined in accordance with Regulations Section
                  1.704-2(i)(5), shall be specially allocated items of
                  Partnership income and gain for such year (and, if necessary,
                  subsequent years) in an amount equal to such Partner's share
                  of the net decrease in Partner Minimum Gain attributable to
                  such Partner Nonrecourse Debt, determined in accordance with
                  Regulations Section 1.704-2(i)(5). Allocations pursuant to the
                  previous sentence shall be made in proportion to the
                  respective amounts required to be allocated to each General
                  Partner and Limited Partner pursuant thereto. The items to be
                  so allocated shall be determined in accordance with
                  Regulations Sections 1.704-2(i)(4) and 1.704-2(j)(2). This
                  Section 1.B is intended to comply with the minimum gain
                  chargeback

                                       C-1
<PAGE>

                  requirement in such Section of the Regulations and shall be
                  interpreted consistently therewith. Solely for purposes of
                  this Section 1.B, each partner's Adjusted Capital Account
                  Deficit shall be determined prior to any other allocations
                  pursuant to Article 6 of the Agreement or this Exhibit with
                  respect to such fiscal year, other than allocations pursuant
                  to Section 1.A hereof.

         C.       Qualified Income Offset. In the event any Partner unexpectedly
                  receives any adjustments, allocations or distributions
                  described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4),
                  1.704-l(b)(2)(ii)(d)(5), or 1.704-1(b)(2)(ii)(d)(6), and after
                  giving effect to the allocations required under Sections 1.A
                  and 1.B hereof, such Partner has an Adjusted Capital Account
                  Deficit, items of Partnership income and gain shall be
                  specifically allocated to such Partner in an amount and manner
                  sufficient to eliminate, to the extent required by the
                  Regulations, its Adjusted Capital Account Deficit created by
                  such adjustments, allocations or distributions as quickly as
                  possible. This Section 1.C is intended to constitute a
                  "qualified income offset" under Regulation Section
                  1.704-1(b)(2)(ii)(d) and shall be interpreted consistently
                  therewith.

         D.       Nonrecourse Deductions. Nonrecourse Deductions for any taxable
                  period shall be allocated to the Partners in accordance with
                  their respective Partnership Interests. If the General Partner
                  determines in its good faith discretion that the Partnership's
                  Nonrecourse Deductions must be allocated in a different ratio
                  to satisfy the safe harbor requirements of the Regulations
                  promulgated under Section 704(b) of the Code, the General
                  Partner is authorized, upon notice to the Limited Partners, to
                  revise the prescribed ratio to the numerically closest ratio
                  which does satisfy such requirements.

         E.       Partner Nonrecourse Deductions. Any Partner Nonrecourse
                  Deductions for any fiscal year shall be specially allocated to
                  the Partner who bears the economic risk of loss with respect
                  to the Partner Nonrecourse Debt to which such Partner
                  Nonrecourse Deductions are attributable in accordance with
                  Regulations Sections 1.704-2(b)(4) and 1.704-2(i).

         F.       Code Section 754 Adjustments. To the extent an adjustment to
                  the adjusted tax basis of any Partnership asset pursuant to
                  Section 734(b) or 743(b) of the Code is required, pursuant to
                  Regulations Section l .704-1(b)(2)(iv)(m), to be taken into
                  account in determining Capital Accounts, the amount of such
                  adjustment to the Capital Accounts shall be treated as an item
                  of gain (if the adjustment increases the basis of the asset)
                  or loss (if the adjustment decreases such basis), and such
                  item of gain or loss shall be specially allocated to the
                  Partners in a manner consistent with the manner in which their
                  Capital Accounts are required to be adjusted pursuant to such
                  Section of the Regulations.

         G.       Sections 1245/1250 Recapture. If any portion of gain from the
                  sale of property is treated as Recapture Income, such
                  Recapture Income shall be allocated among the Partners in
                  accordance with the provisions of Regulations Sections
                  1.1245-1(e) and 1.1250-1(f).

                                       C-2
<PAGE>

         H.       Curative Allocations. The allocations set forth in Section 1.C
                  of this Exhibit C (the "Regulatory Allocations") are intended
                  to comply with certain requirements of the Regulations
                  promulgated under Section 704 of the Code. The Regulatory
                  Allocations shall be taken into account in allocating Net
                  Income, Net Losses and other items of income, gain, loss and
                  deduction to each Partner so that, to the extent possible, and
                  to the extent permitted by the Regulations, the cumulative
                  allocations of Net Income, Net Losses and other items and the
                  Regulatory Allocations to each Partner shall be equal to the
                  net amount that would have been allocated to each Partner if
                  the Regulatory Allocations had not been made.

2.       Allocations for Tax Purposes

         A.       Except as otherwise provided in this Section 2, for federal
                  income tax purposes, each item of income, gain, loss and
                  deduction shall be allocated among the Partners in the same
                  manner as its correlative item of "book" income, gain, loss or
                  deduction is allocated pursuant to Article 6 of the Agreement
                  and Section 1 of this Exhibit C.

         B.       Notwithstanding any other provision in this Agreement, in an
                  attempt to eliminate Book-Tax Disparities attributable to a
                  Contributed Property or Adjusted Property, items of income,
                  gain, loss, and deduction shall be allocated for federal
                  income tax purposes (and not for "book" purposes) among the
                  Partners as follows:

                  (1)      (a)      In the case of a Contributed Property, such
                           items attributable thereto shall be allocated among
                           the Partners consistent with the principles of
                           Section 704(c) of the Code that takes into account
                           the variation between the Gross Asset Value of such
                           property and its adjusted basis at the time of
                           contribution; and

                           (b)      any item of Residual Gain or Residual Loss
                           attributable to a Contributed Property shall be
                           allocated among the Partners in the same manner as
                           its correlative item of "book" gain or loss is
                           allocated pursuant to Article 6 of the Agreement and
                           Section 1 of this Exhibit C.

                  (2)      (a)      In the case of an Adjusted Property, such
                           items shall

                                    (1)      first, be allocated among the
                                    Partners in a manner consistent with the
                                    principles of Section 704(c) of the Code to
                                    take into account the Unrealized Gain or
                                    Unrealized Loss attributable to such
                                    property and the allocations thereof
                                    pursuant to Exhibit B and

                                    (2)      second, in the event such property
                                    was originally a Contributed Property, be
                                    allocated among the Partners in a manner
                                    consistent with Section 2.B.(1) of this
                                    Exhibit C; and

                           (b)      any item of Residual Gain or Residual Loss
                           attributable to an Adjusted Property shall be
                           allocated among the Partners in the same

                                       C-3
<PAGE>

                           manner as its correlative item of "book" gain or loss
                           is allocated pursuant to Article 6 of the Agreement
                           and Section 1 of this Exhibit C.

                  (3)      all other items of income, gain, loss and deduction
                           shall be allocated among the Partners in the same
                           manner as their correlative item of "book" gain or
                           loss is allocated pursuant to Article 6 of the
                           Agreement and Section 1 of this Exhibit C.

         C.       For purposes of Sections 2.B(1)(a) and 2.B(2)(a) of this
                  Exhibit C, the General Partner shall utilize the "traditional
                  method with curative allocations" option described in
                  Regulations Section 1.704-3(c) to eliminate Book-Tax
                  Disparities attributable to a Contributed Property or Adjusted
                  Property; provided, however, that curative allocations with
                  respect to a Contributed Property or Adjusted Property shall
                  only be made (i) to the extent necessary to offset the effect
                  of the "ceiling rule" described in Regulations Section
                  1.704-3(b)(1) on allocations of depreciation deductions with
                  respect to such Contributed Property or Adjusted Property, and
                  (ii) from the allocation of gain (or loss) on the sale or
                  other disposition of such Contributed Property or Adjusted
                  Property, up to the amount of such gain (or loss). This
                  curative allocation provision is intended to comply with
                  Regulations Section 1.704-3(c)(3)(iii)(B).

         D.       Notwithstanding the foregoing, for purposes of Section
                  2.B(l)(a) of this Exhibit C, the General Partner shall have
                  the right to utilize the "remedial allocation method"
                  described in Regulations Section 1.704-3(d) to eliminate
                  Book-Tax Disparities attributable to the contribution to the
                  Partnership of the Canyon Ranch Property specified in the
                  Canyon Contribution Agreement. For purposes of determining the
                  amount of book depreciation with respect to the Canyon Ranch
                  Property as described under Regulations Section 1.704-3(d)(2),
                  the excess of book basis over tax basis with respect to the
                  Canyon Ranch Property shall be allocated twenty-four percent
                  (24%) to nondepreciable land and seventy-six percent (76%) to
                  depreciable buildings. The seventy-six percent (76%) allocated
                  to buildings shall be depreciated using the straight-line
                  method over thirty-nine (39) years. In no case shall the
                  General Partner amend this Agreement to provide for an
                  allocation of phantom income to Canyon Ranch to take into
                  account the difference between the book value of the Canyon
                  Ranch Property and its basis except as provided in this
                  Section 2.C of Exhibit C or unless otherwise agreed to by
                  Canyon Ranch in writing.

         E.       Notwithstanding anything to the contrary contained in this
                  Section 2.C, for purposes of Section 2.B(1)(a) of this Exhibit
                  C, the General Partner shall have the authority, in its sole
                  and absolute discretion, to elect the method to be used under
                  Regulations Section 1.704-3 to take into account the variation
                  between the fair market value and the adjusted tax basis of
                  that certain Agreement of Sale dated May 30, 1997 by and
                  between Rosewood Georgetown Joint Venture, a Texas joint
                  venture, as seller, and Lano International, Inc., a Delaware
                  corporation, and Armada/Hoffler Holding Company, a Virginia
                  corporation, as purchaser.

                                       C-4
<PAGE>

3.       General Partner Allocation.

         Notwithstanding any other provision in this Agreement, the interests
(including limited partnership interests) of the General Partner in each
material item of Partnership income, gain, loss, deduction or credit shall be
equal to at least one percent (1%) of each such item at all times during the
existence of the Partnership (except as otherwise required under Sections 704(b)
or 704(c) or the special allocations provided for in Section 1 of this Exhibit
C).

                                       C-5
<PAGE>

                                    EXHIBIT D

                               NOTICE OF EXCHANGE

         The undersigned hereby irrevocably (i) exchanges ___________Partnership
Units in Crescent Real Estate Equities Limited Partnership in accordance with
the terms of the Third Amended and Restated Agreement of Limited Partnership
Agreement of Crescent Real Estate Equities Limited Partnership and the Exchange
Right referred to in Section 8.6 therein, (ii) surrenders such Partnership Units
and all right, title and interest therein, and (iii) directs that the Cash
Amount or the REIT Shares Amount, as the case may be, deliverable upon exercise
of the Exchange Right be delivered to the address specified below, and, if REIT
Shares are to be delivered, such REIT Shares be registered or placed in the
name(s) and at the address(es) specified below.

         The undersigned hereby represents and warrants that (i) it has full
power and authority to transfer all of its right, title and interest in such
Partnership Units, (ii) such Partnership Units are free and clear of all Liens,
and (iii) it will assume and pay any state or local transfer tax that may be
payable as a result of the transfer of such Partnership Units.

Dated:_____________________

Name of Limited Partner:            ____________________________________________

Signature of Limited Partner:       ____________________________________________
                                    By:_________________________________________
                                    Title:______________________________________

Address:                            ____________________________________________
                                    (Street Address)

                                    ____________________________________________
                                    (City) (State) (Zip Code)

                                    Signature [Attested]
                                    [Witnessed] by:
                                    ____________________________________________

If REIT Shares are to be issued, issue to:
Name:
Address:
Please insert social security or identifying number:

                                       D-1
<PAGE>

                                    EXHIBIT E

                         LISTING OF APPROVED SUBSTITUTED
                                LIMITED PARTNERS

777 Main Operating, Ltd.
Agnew, David B.
American Airlines Fixed Benefit Plan
AMSTAR Capital Management Corporation
AMSTAR Continental Plaza Limited Partnership
AMSTAR Group, Ltd.
APL General, Ltd.
Autem, Joseph W.
Bankers Trust Company
Bartlett, James R.
Brooks, Steven D.
Bush, George W.
Caroline Hunt Trust Estate
Chappel, J. Randell
Continental Plaza Ventures
Courtney Elizabeth Rainwater Trust
Cruce, Ervin D.
David N. Meyerson 1982 Trust
Frampton, Harry H., III
Friedman, Alan D.
Friedman, Bayard H.
Goff, John C.
Hackstock, Nick J.
Haddock, Gerald W.
Hana Development, Inc.
Happel, Dr. Otto, Ing.
Harkness, Randall L.
Hersh, Kenneth A.
Isakson, Mark J.
J.R. Bartlett, Inc.
JFI, L.P.
Joost 1991 Children's Trust
Joost, Peter M.
Joost, William E.
Kelly, Thomas L. III
Kelly, W. Whitney
Korenvaes, Harlan B.
Kosac, Michael J.
Marti A. Meyerson 1982 Trust
Matthew James Rainwater Trust
Meyerson, Morton H.

                                      E-1
<PAGE>

Mira Vista Investors, L.P.
Mira Vista Partners
Moore, Samuel S.
Nick J. Hackstock, Inc.
O'Brien, Christopher J.
P.E.P. II Investors, Inc.
Rainwater Investor Partners, Ltd.
Rainwater RainAm Investors
Rainwater, Richard E.
Rainwater, Walter J.
Retirement Plan of Aluminum Company of America Master Trusts
Richard Todd Rainwater Trust
Rosewood Real Estate Equities, Inc.
Small, Robert I.
Squires, Richard D.
The Rosewood Corporation
Thomason MacArthur, Ltd.
Tower Holdings, Inc.
Wilson, Thomas L.
Yates, Murphy C.

                                       E-2
<PAGE>

                                 FIRST AMENDMENT
                        TO THE THIRD AMENDED AND RESTATED
                        AGREEMENT OF LIMITED PARTNERSHIP
                                       OF
                CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP

         THIS FIRST AMENDMENT TO THE THIRD AMENDED AND RESTATED AGREEMENT OF
LIMITED PARTNERSHIP OF CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP, dated
as of September 9, 2003, is entered into by Crescent Real Estate Equities, Ltd.,
a Delaware corporation, on its own behalf as sole general partner (the "General
Partner") of Crescent Real Estate Equities Limited Partnership, a Delaware
limited partnership (the "Partnership"), and as attorney-in-fact for each of the
existing limited partners (the "Limited Partners") of the Partnership pursuant
to Sections 2.4 and 14.1.B of the Third Amended and Restated Agreement of
Limited Partnership of Crescent Real Estate Equities Limited Partnership, dated
as of January 2, 2003 (hereinafter referred to as the "Effective Agreement").

                              W I T N E S S E T H:

         WHEREAS, the Partnership was formed pursuant to that certain
Certificate of Limited Partnership dated February 9, 1994 and filed on February
9, 1994 in the office of the Secretary of State of Delaware, and that certain
Agreement of Limited Partnership dated as of February 9, 1994 (the "Initial
Agreement");

         WHEREAS, the Initial Agreement, as amended, was amended and restated in
its entirety by that certain First Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
May 5, 1994 (the "First Amended Agreement"), which First Amended Agreement, as
previously amended, was amended and restated in its entirety by that certain
Second Amended and Restated Agreement of Limited Partnership of Crescent Real
Estate Equities Limited Partnership, dated as of November 1, 1997 (the "Second
Amended Agreement");

         WHEREAS, the Second Amended Agreement, as amended, was amended and
restated in its entirety by the Effective Agreement;

         WHEREAS, on January 9, 2003, Crescent Equities issued 1,279 REIT Shares
to David E. Sherman, 1,414 REIT Shares to William F. Quinn and 1,111 REIT Shares
to Paul E. Rowsey, III in payment of trust managers' fees and, in connection
therewith, Crescent Equities shall receive credit under Section 4.6 of the
Effective Agreement for an aggregate Capital Contribution to the Partnership of
$62,347.56;

         WHEREAS, on January 28, 2003, Richard E. Rainwater assigned 1,649
Partnership Units to the Pridemore Irrevocable Asset Trust and Darla Moore
assigned 1,649 Partnership Units to the Pridemore Irrevocable Asset Trust;

         WHEREAS, on January 28, 2003, the Pridemore Irrevocable Asset Trust
exercised its Exchange Rights with respect to 3,298 Partnership Units;

<PAGE>

         WHEREAS, on April 8, 2003, Crescent Equities issued 1,214 REIT Shares
to William F. Quinn and 1,176 REIT Shares to Paul E. Rowsey, III in payment of
trust managers' fees and, in connection therewith, Crescent Equities shall
receive credit under Section 4.6 of the Effective Agreement for an aggregate
Capital Contribution to the Partnership of $34,057.50;

         WHEREAS, on April 14, 2003, Thomas L. Wilson exercised his Exchange
Rights with respect to 642 Partnership Units;

         WHEREAS, on July 9, 2003, Crescent Equities issued 937 REIT Shares to
William F. Quinn and 775 REIT Shares to Paul E. Rowsey, III in payment of trust
managers' fees and, in connection therewith, Crescent Equities shall receive
credit under Section 4.6 of the Effective Agreement for an aggregate Capital
Contribution to the Partnership of $29,412.16;

         WHEREAS, on July 15, 2003, Friedman and Uhlemeyer, Inc. exercised its
Exchange Rights with respect to 1,055 Partnership Units; and

         WHEREAS, the General Partner desires to amend the Effective Agreement
to reflect the transactions described above pursuant to its authority under
Sections 2.4 and 14.1.B of the Effective Agreement and the powers of attorney
granted to the General Partner by the Limited Partners.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt,
adequacy and sufficiency of which are hereby acknowledged, the parties hereto,
intending legally to be bound, hereby agree as follows:

         1.       In order to reflect the following transactions, which are more
fully described in the recitals above, Exhibit A to the Effective Agreement is
hereby deleted in its entirety and replaced with the Exhibit A attached to this
First Amendment and made part hereof.

                  (a)      The Capital Contributions of Crescent Equities
         aggregating $62,347.56 on January 9, 2003 in connection with the
         issuance of 1,279 REIT Shares to David E. Sherman, 1,414 REIT Shares to
         William F. Quinn and 1,111 REIT Shares to Paul E. Rowsey, III in
         payment of trust managers' fees;

                  (b)      The assignment by Richard E. Rainwater of 1,649
         Partnership Units to the Pridemore Irrevocable Asset Trust and by Darla
         Moore of 1,649 Partnership Units to the Pridemore Irrevocable Asset
         Trust on January 28, 2003;

                  (c)      The exercise by the Pridemore Irrevocable Asset Trust
         of its Exchange Rights with respect to 3,298 Partnership Units on
         January 28, 2003;

                  (d)      The Capital Contributions of Crescent Equities
         aggregating $34,057.50 on April 8, 2003 in connection with the issuance
         of 1,214 REIT Shares to William F. Quinn and 1,176 REIT Shares to Paul
         E. Rowsey, III in payment of trust managers' fees;

                  (e)      The exercise by Thomas L. Wilson of his Exchange
         Rights with respect to 642 Partnership Units on April 14, 2003;

                                      - 2 -

<PAGE>

                  (f)      The Capital Contributions of Crescent Equities
         aggregating $29,412.16 on July 9, 2003 in connection with the issuance
         of 937 REIT Shares to William F. Quinn and 775 REIT Shares to Paul E.
         Rowsey, III in payment of trust managers' fees; and

                  (g)      The exercise by Friedman and Uhlemeyer, In.c. of its
         Exchange Rights with respect to 1,055 Partnership Units on July 15,
         2003.

         2.       Except as the context may otherwise require, any terms used in
this First Amendment which are defined in the Effective Agreement shall have the
same meaning for purposes of this First Amendment as in the Effective Agreement.

         3.       Except as herein amended, the Effective Agreement is hereby
ratified, confirmed, and reaffirmed for all purposes and in all respects.

         IN WITNESS WHEREOF, the undersigned has executed this First Amendment
as of the date first written above.

                                       GENERAL PARTNER:

                                       CRESCENT REAL ESTATE EQUITIES, LTD.,
                                       A Delaware corporation, on its own behalf
                                       and as attorney-in-fact for the Limited
                                       Partners pursuant to Sections 2.4 and
                                       14.1.B of the Effective Agreement

                                       By:  /s/ David M. Dean
                                           ------------------------------
                                       Name: David M. Dean
                                       Title: Executive Vice President, Law and
                                       Administration

                                      - 3 -

<PAGE>

                                    EXHIBIT A

              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS

<TABLE>
<CAPTION>
                                                              Partnership          Partnership
Name and Address of Partner                                      Units              Interests
---------------------------                                   -----------          -----------
<S>                                                           <C>                  <C>
General Partner:

Crescent Real Estate Equities, Ltd.                                  None            1.000000%
777 Main Street
Suite 2100
Fort Worth, TX 76102

Limited Partners (Addresses Omitted):

Crescent Real Estate Equities Company                                None           83.300604%

Anderson, John H.                                                 286,389            0.506701%

Big Bend III Investments, L.P.                                     18,989            0.033597%

Blalock, Myron G. III                                              20,857            0.036902%

Canyon Ranch, Inc.                                                503,429            0.890705%

Cruce, Ervin D.                                                     2,110            0.003733%

Friedman, Alan D.                                                  11,150            0.019727%
</TABLE>

                                       A-1

<PAGE>

<TABLE>
<CAPTION>
                                                              Partnership          Partnership
Name and Address of Partner                                      Units              Interests
---------------------------                                   -----------          -----------
<S>                                                           <C>                  <C>
Goff, John C.                                                     906,485            1.603822%

Haddock, Diane                                                      1,000            0.001769%

Haddock, Gerald W.                                                210,419            0.372289%

Hersh, Kenneth A.                                                     422            0.000747%

Joost, Peter M.and Joost, Lindsay M., Trustees U/T/A               25,000            0.044232%
dated April 11, 2002

Kelly, Thomas L., II                                                8,440            0.014933%

Kelly, W. Whitney                                                   1,285            0.002274%

Lewis, Michael S.                                                     960            0.001699%
</TABLE>

                                       A-2

<PAGE>

<TABLE>
<CAPTION>
                                                              Partnership          Partnership
Name and Address of Partner                                      Units              Interests
---------------------------                                   -----------          -----------
<S>                                                           <C>                  <C>
Luce, Thomas W., III, Trustee                                       4,220            0.007466%
David N. Meyerson 1982 Trust UA
8/16/82

Luce, Thomas W., III, Trustee                                       4,220            0.007466%
Marti A. Meyerson 1982 Trust UA
8/16/82

Moore, Darla                                                      259,953            0.459929%

Office Towers LLC                                               3,135,481            5.547530%

Rainwater, Inc.                                                    24,753            0.043795%

Rainwater, Courtney E.                                             21,098            0.037328%

Rainwater, Matthew J.                                              21,098            0.037328%

Rainwater, Richard Todd                                            21,098            0.037328%
</TABLE>

                                       A-3

<PAGE>

<TABLE>
<CAPTION>
                                                              Partnership          Partnership
Name and Address of Partner                                      Units              Interests
---------------------------                                   -----------          -----------
<S>                                                           <C>                  <C>
Rainwater, Richard E.                                           2,305,016            4.078209%

Roberts, Peter H.                                                 339,543            0.600745%

Rosewood Property Company                                         629,330            1.113458%

Senterra Corporation                                               83,441            0.147630%

Taurus Investment Group, Inc.                                       1,205            0.002132%

Tofsky, Neil H.                                                    20,857            0.036902%

Varma, Sanjay                                                       1,266            0.002240%

Wassel, James S.                                                      598            0.001058%

Wright, Christina V.                                                1,950            0.003450%
</TABLE>

                                       A-4

<PAGE>

<TABLE>
<CAPTION>
                                                              Partnership          Partnership
Name and Address of Partner                                      Units              Interests
---------------------------                                   -----------          -----------
<S>                                                           <C>                  <C>
Yates, Murphy C.                                                    1,285            0.002274%

                                                                8,873,347                 100%
                                                                =========           =========
</TABLE>

..

Series A Preferred Partnership Unit Holders:

<TABLE>
<CAPTION>
                                                Number of Series A Preferred Partnership
Holder                                                           Units                                  Issue Date
-------------------------------------           ----------------------------------------------          ----------
<S>                                             <C>                                                     <C>
Crescent Real Estate Equities Company                             8,000,000                               2/19/98
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                             2,800,000                               4/26/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</TABLE>

Series B Redeemable Preferred Partnership Unit Holders:

<TABLE>
<CAPTION>
                                                Number of Series B Redeemable Preferred
Holder                                                     Partnership Units                 Issue Date
-------------------------------------           ---------------------------------------      ----------
<S>                                             <C>                                          <C>
Crescent Real Estate Equities Company                          3,000,000                     05/17/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                            400,000                     06/06/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</TABLE>

                                       A-5
<PAGE>

                                SECOND AMENDMENT
                        TO THE THIRD AMENDED AND RESTATED
                        AGREEMENT OF LIMITED PARTNERSHIP
                                       OF
                CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP

         THIS SECOND AMENDMENT TO THE THIRD AMENDED AND RESTATED AGREEMENT OF
LIMITED PARTNERSHIP OF CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP, dated
as of October 9, 2003, is entered into by Crescent Real Estate Equities, Ltd., a
Delaware corporation, on its own behalf as sole general partner (the "General
Partner") of Crescent Real Estate Equities Limited Partnership, a Delaware
limited partnership (the "Partnership"), and as attorney-in-fact for each of the
existing limited partners (the "Limited Partners") of the Partnership (other
than Crescent Real Estate Equities Company ("Crescent Equities")), and Crescent
Equities pursuant to Sections 2.4 and 14.1.A of the Third Amended and Restated
Agreement of Limited Partnership of Crescent Real Estate Equities Limited
Partnership, dated as of January 2, 2003, as amended by the First Amendment to
the Third Amended and Restated Agreement of Limited Partnership of Crescent Real
Estate Equities Limited Partnership, dated as of September 9, 2003 (hereinafter
referred to as the "Effective Agreement").

                                   WITNESSETH:

         WHEREAS, the Partnership was formed pursuant to that certain
Certificate of Limited Partnership dated February 9, 1994 and filed on February
9, 1994 in the office of the Secretary of State of Delaware, and that certain
Agreement of Limited Partnership dated as of February 9, 1994 (the "Initial
Agreement");

         WHEREAS, the Initial Agreement, as amended, was amended and restated in
its entirety by that certain First Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
May 5, 1994 (the "First Amended Agreement"), which First Amended Agreement, as
amended, was amended and restated in its entirety by that certain Second Amended
and Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of November 1, 1997 (the "Second Amended
Agreement");

         WHEREAS, the Second Amended Agreement, as amended, was amended and
restated in its entirety by the Effective Agreement;

         WHEREAS, on October 8, 2003, Crescent Equities issued 1,057 REIT Shares
to William F. Quinn and 948 REIT Shares to Paul E. Rowsey, III, in payment of
trust managers' fees and, in connection therewith, Crescent Equities is to
receive credit under Section 4.6 of the Effective Agreement for an aggregate
Capital Contribution to the Partnership of $31,037.40; and

         WHEREAS, the undersigned parties, constituting the General Partner and
the owner of a majority-in-interest of the total Percentage Interests of the
Limited Partners, respectively, desire to amend the Effective Agreement to
eliminate the fixed term of the Partnership, provide for a

                                       1
<PAGE>

perpetual existence of the Partnership and make all appropriate conforming
changes pursuant to Sections 2.4 and 14.1.A of the Effective Agreement.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt,
adequacy and sufficiency of which are hereby acknowledged, the parties hereto,
intending legally to be bound, hereby agree as follows:

         1. In order to reflect the Capital Contributions of Crescent Equities
aggregating $31,037.40 on October 8, 2003 in connection with the issuance of
1,057 REIT Shares to William F. Quinn and 948 REIT Shares to Paul E. Rowsey,
III, in payment of trust managers' fees, Exhibit A to the Effective Agreement is
hereby deleted in its entirety and replaced with the Exhibit A attached to this
Second Amendment and made part hereof.

         2. Section 2.5 of the Effective Agreement is hereby deleted in its
entirety and replaced with the following:

                  The term of the Partnership commenced on February 9, 1994, and
                  shall continue in perpetuity unless it is dissolved and
                  required to be wound up pursuant to the provisions of Article
                  13, or as required by the Act.

         3. Section 13.1 of the Effective Agreement is hereby deleted in its
entirety and replaced with the following:

                  Section 13.1 Dissolution

                  The Partnership shall not be dissolved by the admission of
         Substituted Limited Partners, Additional Limited Partners or Employee
         Limited Partners, or by the admission of a substituted General Partner
         in accordance with the terms of this Agreement. Upon the withdrawal of
         the General Partner, any substituted General Partner shall continue the
         business of the Partnership. The Partnership shall dissolve, and its
         affairs shall be wound up, upon the first to occur of any of the
         following ("Liquidating Events"):

                        A. an event of withdrawal of the General Partner, as
         defined in the Act (other than (i) a liquidation of the General Partner
         into Crescent Equities, in which event Crescent Equities shall become
         the General Partner, or (ii) an event of Bankruptcy), unless within
         ninety (90) days after the withdrawal remaining Partners owning a
         majority-in-interest of the total Partnership Interests of the
         remaining Partners agree in writing to continue the business of the
         Partnership and to the appointment, effective immediately prior to the
         date of withdrawal, of a substitute General Partner;

                        B. an election to dissolve the Partnership made in
         writing by the General Partner;

                        C. entry of a decree of judicial dissolution of the
         Partnership pursuant to the provisions of the Act;

                                       2
<PAGE>

                        D. the sale of all or substantially all of the assets
         and properties of the Partnership, unless the General Partner elects to
         continue the Partnership business for the purpose of the receipt and
         the collection of indebtedness or the collection of other consideration
         to be received in exchange for the assets of the Partnership (which
         activities shall be deemed to be part of the winding up of the
         Partnership);

                        E. a final and non-appealable judgment is entered by a
         court with appropriate jurisdiction finding that either Crescent
         Equities or the General Partner is bankrupt or insolvent, or a final
         and non-appealable order for relief is entered by a court with
         appropriate jurisdiction against either Crescent Equities or the
         General Partner, in each case under any federal or state bankruptcy or
         insolvency laws as now or hereafter in effect, unless prior to the
         entry of such order or judgment remaining Partners owning a
         majority-in-interest of the total Partnership Interests of the
         remaining Partners agree in writing to continue the business of the
         Partnership and to the appointment, effective as of a date prior to the
         date of such order or judgment, of a substituted General Partner; or

                        F. any other dissolution event under the Act.

         4. Except as the context may otherwise require, any terms used in this
Second Amendment which are defined in the Effective Agreement shall have the
same meaning for purposes of this Second Amendment as in the Effective
Agreement.

         5. Except as herein amended, the Effective Agreement is hereby
ratified, confirmed, and reaffirmed for all purposes and in all respects.

                                       3
<PAGE>

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

                                    GENERAL PARTNER:

                                    CRESCENT REAL ESTATE EQUITIES, LTD., a
                                    Delaware corporation, on its own behalf and
                                    as attorney-in-fact for all of the Limited
                                    Partners (other than Crescent Equities)
                                    pursuant to Sections 2.4 and 14.1.A of the
                                    Effective Agreement

                                    By: /s/ David M. Dean
                                        ----------------------------------------
                                    Name: David M. Dean
                                          --------------------------------------
                                    Title: Executive Vice President,
                                           Law and Administration and Secretary
                                           -------------------------------------

                                    LIMITED PARTNER:

                                    CRESCENT REAL ESTATE EQUITIES COMPANY, a
                                    Texas real estate investment trust, as the
                                    owner of a majority-in-interest of the
                                    Partnership Interests of the Limited
                                    Partners

                                    By: /s/ Jerry R. Crenshaw, Jr.
                                        ----------------------------------------
                                    Name: Jerry R. Crenshaw, Jr.
                                          --------------------------------------
                                    Title: Executive Vice President and
                                           Chief Financial Officer
                                           -------------------------------------

                                       4
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS

<Table>
<Caption>
                                                                 Partnership       Partnership
Name and Address of Partner                                         Units           Interests
---------------------------                                      ------------      ------------
<S>                                                              <C>                <C>

General Partner:

Crescent Real Estate Equities, Ltd.                                      None          1.000000%
777 Main Street
Suite 2100
Fort Worth, TX 76102

Limited Partners (Addresses Omitted):

Crescent Real Estate Equities Company                                    None         83.300871%

Anderson, John H.                                                     286,389          0.506692%

Big Bend III Investments, L.P.                                         18,989          0.033596%

Blalock, Myron G. III                                                  20,857          0.036901%

Canyon Ranch, Inc.                                                    503,429          0.890689%

Cruce, Ervin D.                                                         2,110          0.003733%

Friedman, Alan D.                                                      11,150          0.019727%
</Table>

                                       5
<PAGE>
<Table>
<Caption>
                                                                 Partnership       Partnership
Name and Address of Partner                                         Units           Interests
---------------------------                                      ------------      ------------
<S>                                                              <C>                <C>

Goff, John C.                                                         906,485          1.603794%

Haddock, Diane                                                          1,000          0.001769%

Haddock, Gerald W.                                                    210,419          0.372283%

Hersh, Kenneth A.                                                         422          0.000747%

Joost, Peter M. and Joost, Lindsay M., Trustees U/T/A                  25,000          0.044231%
dated April 11, 2002

Kelly, Thomas L., II                                                    8,440          0.014932%

Kelly, W. Whitney                                                       1,285          0.002273%

Lewis, Michael S.                                                         960          0.001698%
</Table>

                                       6
<PAGE>

<Table>
<Caption>
                                                                 Partnership       Partnership
Name and Address of Partner                                         Units           Interests
---------------------------                                      ------------      ------------
<S>                                                              <C>                <C>

Luce, Thomas W., III, Trustee                                           4,220          0.007466%
David N. Meyerson 1982 Trust UA
8/16/82

Luce, Thomas W., III, Trustee                                           4,220          0.007466%
Marti A. Meyerson 1982 Trust UA
8/16/82

Moore, Darla                                                          259,953          0.459921%

Office Towers LLC                                                   3,135,481          5.547436%

Rainwater, Inc.                                                        24,753          0.043794%

Rainwater, Courtney E.                                                 21,098          0.037328%

Rainwater, Matthew J.                                                  21,098          0.037328%

Rainwater, Richard Todd                                                21,098          0.037328%
</Table>

                                       7
<PAGE>

<Table>
<Caption>
                                                                 Partnership       Partnership
Name and Address of Partner                                         Units           Interests
---------------------------                                      ------------      ------------
<S>                                                              <C>                <C>

Rainwater, Richard E.                                               2,305,016          4.078139%

Roberts, Peter H.                                                     339,543          0.600735%

Rosewood Property Company                                             629,330          1.113439%

Senterra Corporation                                                   83,441          0.147628%

Taurus Investment Group, Inc.                                           1,205          0.002132%

Tofsky, Neil H.                                                        20,857          0.036901%

Varma, Sanjay                                                           1,266          0.002240%

Wassel, James S.                                                          598          0.001058%

Wright, Christina V.                                                    1,950          0.003450%
</Table>

                                       8
<PAGE>

<Table>
<Caption>
                                                                 Partnership       Partnership
Name and Address of Partner                                         Units           Interests
---------------------------                                      ------------      ------------
<S>                                                              <C>                <C>

Yates, Murphy C.                                                        1,285          0.002273%

                                                                    8,873,347               100%
                                                                 ============      ============
</Table>

Series A Preferred Partnership Unit Holders:

<Table>
<Caption>
                                                             Number of Series A Preferred
Holder                                                             Partnership Units                     Issue Date
------                                                       ----------------------------                ----------
<S>                                                          <C>                                     <C>
Crescent Real Estate Equities Company                                 8,000,000                            2/19/98
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                                 2,800,000                            4/26/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</Table>

Series B Redeemable Preferred Partnership Unit Holders:

<Table>
<Caption>
                                                          Number of Series B Redeemable
Holder                                                     Preferred Partnership Units                   Issue Date
------                                                    -----------------------------                  ----------
<S>                                                       <C>                                          <C>
Crescent Real Estate Equities Company                                 3,000,000                           05/17/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                                  400,000                            06/06/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</Table>

                                       9
<PAGE>

                                 THIRD AMENDMENT
                        TO THE THIRD AMENDED AND RESTATED
                        AGREEMENT OF LIMITED PARTNERSHIP
                                       OF
                CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP

         THIS THIRD AMENDMENT TO THE THIRD AMENDED AND RESTATED AGREEMENT OF
LIMITED PARTNERSHIP OF CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP, dated
as of January 15, 2004, is entered into by Crescent Real Estate Equities, Ltd.,
a Delaware corporation, on its own behalf as sole general partner (the "General
Partner") of Crescent Real Estate Equities Limited Partnership, a Delaware
limited partnership (the "Partnership"), and as attorney-in-fact for each of the
existing limited partners (the "Limited Partners") of the Partnership, pursuant
to Sections 2.4 and 14.1.B of the Third Amended and Restated Agreement of
Limited Partnership of Crescent Real Estate Equities Limited Partnership, dated
as of January 2, 2003, as amended by the First Amendment to the Third Amended
and Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of September 9, 2003 and the Second Amendment to
the Third Amended and Restated Agreement of Limited Partnership of Crescent Real
Estate Limited Partnership, dated as of October 9, 2003 (hereinafter referred to
as the "Effective Agreement").

                                   WITNESSETH:

         WHEREAS, the Partnership was formed pursuant to that certain
Certificate of Limited Partnership dated February 9, 1994 and filed on February
9, 1994 in the office of the Secretary of State of Delaware, and that certain
Agreement of Limited Partnership dated as of February 9, 1994 (the "Initial
Agreement");

         WHEREAS, the Initial Agreement, as amended, was amended and restated in
its entirety by that certain First Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
May 5, 1994 (the "First Amended Agreement"), which First Amended Agreement, as
amended, was amended and restated in its entirety by that certain Second Amended
and Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of November 1, 1997 (the "Second Amended
Agreement");

         WHEREAS, the Second Amended Agreement, as amended, was amended and
restated in its entirety by the Effective Agreement;

         WHEREAS, on January 15, 2004, Crescent Equities issued an additional
3,400,000 Series A Preferred Shares at a gross offering price of $21.98 per
share and contributed the $74,732,000 gross offering proceeds to the Partnership
and, in connection therewith, Crescent Equities shall receive additional Series
A Preferred Partnership Units, pursuant to Section 8.7.C of the Effective
Agreement; and

         WHEREAS, the General Partner desires to amend the Effective Agreement
to reflect the transactions described above pursuant to its authority under
Sections 2.4 and 14.1.B of the

                                       1
<PAGE>

Effective Agreement and the powers of attorney granted to the General Partner by
the Limited Partners.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt,
adequacy and sufficiency of which are hereby acknowledged, the parties hereto,
intending legally to be bound, hereby agree as follows:

         1. In order to reflect the Capital Contribution of $74,732,000 of
Crescent Equities in connection with the issuance of 3,400,000 additional Series
A Preferred Partnership Units to Crescent Equities by the Partnership, as more
fully set forth above, Exhibit A to the Effective Agreement is hereby amended by
deleting in its entirety the existing table in Exhibit A entitled "Series A
Preferred Partnership Unit Holders" and replacing it with the following:

Series A Preferred Partnership Unit Holders:

<Table>
<Caption>
                                                           Number of Series A Preferred
Holder                                                          Partnership Units                        Issue Date
------                                                     ----------------------------                  ----------
<S>                                                        <C>                                      <C>
Crescent Real Estate Equities Company                                 8,000,000                            2/19/98
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                                 2,800,000                            4/26/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                                 3,400,000                            1/15/04
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</Table>

         2. Except as the context may otherwise require, any terms used in this
Third Amendment that are defined in the Effective Agreement shall have the same
meaning for purposes of this Third Amendment as in the Effective Agreement.

         3. Except as herein amended, the Effective Agreement is hereby
ratified, confirmed, and reaffirmed for all purposes and in all respects.

                                       2
<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed this Third Amendment
as of the date first written above.

                                    GENERAL PARTNER:

                                    CRESCENT REAL ESTATE EQUITIES, LTD., a
                                    Delaware corporation, on its own behalf and
                                    as attorney-in-fact for all of the Limited
                                    Partners pursuant to Sections 2.4 and 14.1.B
                                    of the Effective Agreement

                                    By: /s/ Jerry R. Crenshaw, Jr.
                                        ----------------------------------------
                                    Name: Jerry R. Crenshaw, Jr.
                                          --------------------------------------
                                    Title: Executive Vice President and
                                           Chief Financial Officer
                                           -------------------------------------

                                       3
<PAGE>

                                FOURTH AMENDMENT
                        TO THE THIRD AMENDED AND RESTATED
                        AGREEMENT OF LIMITED PARTNERSHIP
                                       OF
                CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP

         THIS FOURTH AMENDMENT TO THE THIRD AMENDED AND RESTATED AGREEMENT OF
LIMITED PARTNERSHIP OF CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP, dated
as of March 31, 2004, is entered into by Crescent Real Estate Equities, Ltd., a
Delaware corporation, on its own behalf as sole general partner (the "General
Partner") of Crescent Real Estate Equities Limited Partnership, a Delaware
limited partnership (the "Partnership"), and as attorney-in-fact for each of the
existing limited partners (the "Limited Partners") of the Partnership, pursuant
to Sections 2.4 and 14.1.B of the Third Amended and Restated Agreement of
Limited Partnership of Crescent Real Estate Equities Limited Partnership, dated
as of January 2, 2003, as amended by the First Amendment to the Third Amended
and Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of September 9, 2003, the Second Amendment to the
Third Amended and Restated Agreement of Limited Partnership of Crescent Real
Estate Limited Partnership, dated as of October 9, 2003, and the Third Amendment
to the Third Amended and Restated Agreement of Limited Partnership of Crescent
Real Estate Limited Partnership, dated as of January 15, 2004 (hereinafter
referred to as the "Effective Agreement").

                              W I T N E S S E T H:

         WHEREAS, the Partnership was formed pursuant to that certain
Certificate of Limited Partnership dated February 9, 1994 and filed on February
9, 1994 in the office of the Secretary of State of Delaware, and that certain
Agreement of Limited Partnership dated as of February 9, 1994 (the "Initial
Agreement");

         WHEREAS, the Initial Agreement, as amended, was amended and restated in
its entirety by that certain First Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
May 5, 1994 (the "First Amended Agreement"), which First Amended Agreement, as
amended, was amended and restated in its entirety by that certain Second Amended
and Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of November 1, 1997 (the "Second Amended
Agreement");

         WHEREAS, the Second Amended Agreement, as amended, was amended and
restated in its entirety by the Effective Agreement;

         WHEREAS, the individuals set forth in the following table exercised
options to purchase REIT Shares for the respective number of shares, on the
respective date, pursuant to the respective stock option plan and for which
Crescent Equities shall receive credit for the respective Capital Contribution
to the Partnership indicated opposite each such individual's name:

                                      1

<PAGE>

<TABLE>
<CAPTION>
                                                 Number of
                                                REIT Shares                                       Capital
   Individual                Exercise Date      Purchased           Stock Option Plan          Contribution
   ----------                -------------      ---------           -----------------          ------------
<S>                          <C>                <C>                 <C>                        <C>
Gerald W. Haddock               12/15/03           10,000                1995 Plan              $164,600.00
Gerald W. Haddock               12/18/03           10,000                1995 Plan              $166,500.00
Gerald W. Haddock               12/22/03           20,000                1995 Plan              $340,000.00
Gerald W. Haddock               12/26/03           40,000                1995 Plan              $685,600.00
Gerald W. Haddock               12/29/03           15,400                1995 Plan              $269,500.00
Kimberly A. Dean                 2/17/04            2,000                1994 Plan              $ 36,980.00
Sharon L. Simmons                 3/4/04            2,500                1995 Plan              $ 45,625.00
Sharon L. Simmons                 3/9/04            6,400                1995 Plan              $117,056.00
</TABLE>

         WHEREAS, on December 21, 2003, Gerald W. Haddock assigned a Limited
Partnership Interest including 7,500 Partnership Units to the 2003 Haddock
Charitable Remainder Unitrust (the "Haddock Trust");

         WHEREAS, on January 9, 2004, Crescent Equities issued 918 REIT Shares
to each of William F. Quinn and Paul E. Rowsey, III in payment of trust
managers' fees and, in connection therewith, Crescent Equities shall receive
credit under Section 4.6 of the Effective Agreement for an aggregate Capital
Contribution to the Partnership of $32,093.28;

         WHEREAS, on January 21, 2004, the Haddock Trust exercised its Exchange
Rights with respect to 7,500 Partnership Units;

         WHEREAS, on January 23, 2004, Richard E. Rainwater assigned a Limited
Partnership Interest including 1,388 Partnership Units to the Pridemore
Irrevocable Asset Trust (the "Pridemore Trust"), and Darla Moore assigned a
Limited Partnership Interest including 148 Partnership Units to the Pridemore
Trust;

         WHEREAS, on January 23, 2004, the Pridemore Trust exercised its
Exchange Rights with respect to 1,536 Partnership Units; and

         WHEREAS, the General Partner desires to amend the Effective Agreement
to reflect the transactions described above pursuant to its authority under
Sections 2.4 and 14.1.B of the Effective Agreement and the powers of attorney
granted to the General Partner by the Limited Partners.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt,
adequacy and sufficiency of which are hereby acknowledged, the parties hereto,
intending legally to be bound, hereby agree as follows:

                                       2

<PAGE>

         1. In order to reflect the following transactions, which are more fully
described in the recitals above, Exhibit A to the Effective Agreement is hereby
deleted in its entirety and replaced with the Exhibit A attached to this Fourth
Amendment and made part hereof.

            (a) The Capital Contributions of Crescent Equities aggregating
$1,825,861.00 in connection with the exercise of options to purchase REIT Shares
by Gerald Haddock, Kimberly A. Dean and Sharon L. Simmons;

            (b) The assignment by Gerald W. Haddock of 7,500 Partnership Units
to the Haddock Trust on December 21, 2003;

            (c) The Capital Contributions of Crescent Equities aggregating
$32,093.28 on January 9, 2004 in connection with the issuance of 918 REIT Shares
to each of William F. Quinn and Paul E. Rowsey, III in payment of trust
managers' fees;

            (d) The exercise by the Haddock Trust of its Exchange Rights with
respect to 7,500 Partnership Units on January 21, 2004;

            (e) The assignment by Richard E. Rainwater of 1,388 Partnership
Units and the assignment by Darla Moore of 148 Partnership Units to the
Pridemore Trust, each on January 23, 2004; and

            (f) The exercise by the Pridemore Trust of its Exchange Rights with
respect to 1,536 Partnership Units on January 23, 2004;

         2. Except as the context may otherwise require, any terms used in this
Fourth Amendment that are defined in the Effective Agreement shall have the same
meaning for purposes of this Fourth Amendment as in the Effective Agreement.

         3. Except as herein amended, the Effective Agreement is hereby
ratified, confirmed, and reaffirmed for all purposes and in all respects.

                                       3

<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed this Fourth Amendment
as of the date first written above.

                                    GENERAL PARTNER:

                                    CRESCENT REAL ESTATE EQUITIES, LTD., a
                                    Delaware corporation, on its own behalf and
                                    as attorney-in-fact for all of the Limited
                                    Partners pursuant to Sections 2.4 and 14.1.B
                                    of the Effective Agreement

                                    By: /s/ Jerry R. Crenshaw, Jr.
                                        ----------------------------------------
                                    Name: Jerry R. Crenshaw, Jr.
                                    Title: Executive Vice President and Chief
                                           Financial Officer

                                       4

<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS

<TABLE>
<CAPTION>
                                                                                  Partnership        Partnership
           Name and Address of Partner                                               Units            Interests
           ---------------------------                                            -----------        -----------
<S>                                                                               <C>                <C>
General Partner:

Crescent Real Estate Equities, Ltd.                                                    None            1.000000%
777 Main Street
Suite 2100
Fort Worth, TX  76102

Limited Partners (Addresses Omitted):

Crescent Real Estate Equities Company                                                  None           83.331247%

Anderson, John H.                                                                   286,389            0.506228%

Big Bend III Investments, L.P.                                                       18,989            0.033565%

Blalock, Myron G. III                                                                20,857            0.036867%

Canyon Ranch, Inc.                                                                  503,429            0.889872%

Cruce, Ervin D.                                                                       2,110            0.003730%

Friedman, Alan D.                                                                    11,150            0.019709%
</TABLE>

                                       5

<PAGE>

<TABLE>
<CAPTION>
                                                                                  Partnership        Partnership
           Name and Address of Partner                                               Units            Interests
           ---------------------------                                            -----------        -----------
<S>                                                                               <C>                <C>
Goff, John C.                                                                       906,485            1.602323%

Haddock, Diane                                                                        1,000            0.001768%

Haddock, Gerald W.                                                                  202,919            0.358684%

Hersh, Kenneth A.                                                                       422            0.000746%

Joost, Peter M. and Joost, Lindsay M., Trustees U/T/A                                25,000            0.044191%
dated April 11, 2002

Kelly, Thomas L., II                                                                  8,440            0.014919%

Kelly, W. Whitney                                                                     1,285            0.002271%

Lewis, Michael S.                                                                       960            0.001697%
</TABLE>

                                       6

<PAGE>

<TABLE>
<CAPTION>
                                                                                  Partnership        Partnership
           Name and Address of Partner                                               Units            Interests
           ---------------------------                                            -----------        -----------
<S>                                                                               <C>                <C>
Luce, Thomas W., III, Trustee                                                         4,220            0.007459%
David N. Meyerson 1982 Trust UA
8/16/82

Luce, Thomas W., III, Trustee                                                         4,220            0.007459%
Marti A. Meyerson 1982 Trust UA
8/16/82

Moore, Darla                                                                        259,805            0.459237%

Office Towers LLC                                                                 3,135,481            5.542346%

Rainwater, Inc.                                                                      24,753            0.043754%

Rainwater, Courtney E.                                                               21,098            0.037293%

Rainwater, Matthew J.                                                                21,098            0.037293%

Rainwater, Richard Todd                                                              21,098            0.037293%
</TABLE>

                                       7

<PAGE>

<TABLE>
<CAPTION>
                                                                                  Partnership        Partnership
           Name and Address of Partner                                               Units            Interests
           ---------------------------                                            -----------        -----------
<S>                                                                               <C>                <C>
Rainwater, Richard E.                                                             2,303,628            4.071944%

Roberts, Peter H.                                                                   339,543            0.600184%

Rosewood Property Company                                                           629,330            1.112418%

Senterra Corporation                                                                 83,441            0.147492%

Taurus Investment Group, Inc.                                                         1,205            0.002130%

Tofsky, Neil H.                                                                      20,857            0.036867%

Varma, Sanjay                                                                         1,266            0.002238%

Wassel, James S.                                                                        598            0.001057%

Wright, Christina V.                                                                  1,950            0.003447%
</TABLE>

                                       8

<PAGE>

<TABLE>
<CAPTION>
                                                                                  Partnership        Partnership
           Name and Address of Partner                                               Units            Interests
           ---------------------------                                            -----------        -----------
<S>                                                                               <C>                <C>
Yates, Murphy C.                                                                      1,285            0.002271%

                                                                                  8,864,311                 100%
                                                                                  =========            ========
</TABLE>

Series A Preferred Partnership Unit Holders:

<TABLE>
<CAPTION>
                                                Number of Series A Preferred Partnership
Holder                                                            Units                                   Issue Date
--------------------------------------------------------------------------------------------------------------------
<S>                                             <C>                                                       <C>
Crescent Real Estate Equities Company                                 8,000,000                            2/19/98
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                                 2,800,000                            4/26/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                                 3,400,000                            1/15/04
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</TABLE>

                                       9

<PAGE>

Series B Redeemable Preferred Partnership Unit Holders:

<TABLE>
<CAPTION>
                                                Number of Series B Redeemable Preferred Partnership
            Holder                                                       Units                           Issue Date
-------------------------------------------------------------------------------------------------------------------
<S>                                             <C>                                                      <C>
Crescent Real Estate Equities Company                                 3,000,000                           05/17/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                                  400,000                            06/06/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</TABLE>

                                       10
<PAGE>

                                 FIFTH AMENDMENT
                        TO THE THIRD AMENDED AND RESTATED
                        AGREEMENT OF LIMITED PARTNERSHIP
                                       OF
                CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP

         THIS FIFTH AMENDMENT TO THE THIRD AMENDED AND RESTATED AGREEMENT OF
LIMITED PARTNERSHIP OF CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP, dated
as of July 15, 2004, is entered into by Crescent Real Estate Equities, Ltd., a
Delaware corporation, on its own behalf as sole general partner (the "General
Partner") of Crescent Real Estate Equities Limited Partnership, a Delaware
limited partnership (the "Partnership"), and as attorney-in-fact for each of the
existing limited partners (the "Limited Partners") of the Partnership, pursuant
to Sections 2.4 and 14.1.B of the Third Amended and Restated Agreement of
Limited Partnership of Crescent Real Estate Equities Limited Partnership, dated
as of January 2, 2003, as amended by the First Amendment to the Third Amended
and Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of September 9, 2003, the Second Amendment to the
Third Amended and Restated Agreement of Limited Partnership of Crescent Real
Estate Limited Partnership, dated as of October 9, 2003, the Third Amendment to
the Third Amended and Restated Agreement of Limited Partnership of Crescent Real
Estate Limited Partnership, dated as of January 15, 2004, and the Fourth
Amendment to the Third Amended and Restated Agreement of Limited Partnership of
Crescent Real Estate Limited Partnership, dated as of March 31, 2004
(hereinafter referred to as the "Effective Agreement").

                                   WITNESSETH:

         WHEREAS, the Partnership was formed pursuant to that certain
Certificate of Limited Partnership dated February 9, 1994 and filed on February
9, 1994 in the office of the Secretary of State of Delaware, and that certain
Agreement of Limited Partnership dated as of February 9, 1994 (the "Initial
Agreement");

         WHEREAS, the Initial Agreement, as amended, was amended and restated in
its entirety by that certain First Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
May 5, 1994 (the "First Amended Agreement"), which First Amended Agreement, as
amended, was amended and restated in its entirety by that certain Second Amended
and Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of November 1, 1997 (the "Second Amended
Agreement");

         WHEREAS, the Second Amended Agreement, as amended, was amended and
restated in its entirety by the Effective Agreement;

         WHEREAS, the individual set forth in the following table exercised
options to purchase REIT Shares for the number of shares, on the date, pursuant
to the stock option plan and for which Crescent Equities shall receive credit
under Section 4.6 of the Effective Agreement for the Capital Contribution to the
Partnership indicated opposite such individual's name:

                                       1
<PAGE>

<Table>
<Caption>
                                                 Number of
                                                REIT Shares                                    Capital
         Individual           Exercise Date      Purchased           Stock Option Plan       Contribution
         ----------           -------------     -----------          -----------------       ------------
<S>                           <C>               <C>                  <C>                     <C>
William F. Quinn                 4/2/04           15,000                 1994 Plan            $267,150.00
</Table>

         WHEREAS, on April 8, 2004, Crescent Equities issued 968 REIT Shares to
William F. Quinn and 1,068 REIT Shares to Paul E. Rowsey, III in payment of
trust managers' fees and, in connection therewith, Crescent Equities shall
receive credit under Section 4.6 of the Effective Agreement for an aggregate
Capital Contribution to the Partnership of $33,288.60;

         WHEREAS, on July 9, 2004, Crescent Equities issued 985 REIT Shares to
William F. Quinn and 815 REIT Shares to Paul E. Rowsey, III in payment for trust
managers' fees and, in connection therewith, Crescent Equities shall receive
credit under Section 4.6 of the Effective Agreement for an aggregate Capital
Contribution to the Partnership of $29,484.00; and

         WHEREAS, the General Partner desires to amend the Effective Agreement
to reflect the transactions described above pursuant to its authority under
Sections 2.4 and 14.1.B of the Effective Agreement and the powers of attorney
granted to the General Partner by the Limited Partners.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt,
adequacy and sufficiency of which are hereby acknowledged, the parties hereto,
intending legally to be bound, hereby agree as follows:

         1. In order to reflect the following transactions, which are more fully
described in the recitals above, Exhibit A to the Effective Agreement is hereby
deleted in its entirety and replaced with the Exhibit A attached to this Fourth
Amendment and made part hereof.

               (a) The Capital Contribution of Crescent Equities of $267,150.00
on April 2, 2004 in connection with the exercise of options to purchase REIT
Shares by William F. Quinn;

               (b) The Capital Contributions of Crescent Equities aggregating
$33,288.60 on April 8, 2004 in connection with the issuance of 968 REIT Shares
to William F. Quinn and 1,068 REIT Shares to Paul E. Rowsey, III in payment of
trust managers' fees; and

               (c) The Capital Contributions of Crescent Equities aggregating
$29,484.00 on July 9, 2004 in connection with the issuance of 985 REIT Shares to
William F. Quinn and 815 REIT Shares to Paul E. Rowsey, III in payment of trust
managers' fees.

         2. Except as the context may otherwise require, any terms used in this
Fifth Amendment that are defined in the Effective Agreement shall have the same
meaning for purposes of this Fifth Amendment as in the Effective Agreement.

         3. Except as herein amended, the Effective Agreement is hereby
ratified, confirmed, and reaffirmed for all purposes and in all respects.

                                       2
<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed this Fifth Amendment
as of the date first written above.

                               GENERAL PARTNER:

                               CRESCENT REAL ESTATE EQUITIES, LTD., a Delaware
                               corporation, on its own behalf and as
                               attorney-in-fact for all of the Limited Partners
                               pursuant to Sections 2.4 and 14.1.B of the
                               Effective Agreement

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

                                       3
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS

<Table>
<Caption>
                                                         Partnership         Partnership
Name and Address of Partner                                 Units             Interests
---------------------------                              -----------         -----------
<S>                                                      <C>                 <C>
General Partner:

Crescent Real Estate Equities, Ltd.                            None            1.000000%
777 Main Street
Suite 2100
Fort Worth, TX  76102

Limited Partners (Addresses Omitted):

Crescent Real Estate Equities Company                          None           83.333751%

Anderson, John H.                                           286,389            0.506147%

Big Bend III Investments, L.P.                               18,989            0.033560%

Blalock, Myron G. III                                        20,857            0.036861%

Canyon Ranch, Inc.                                          503,429            0.889730%

Cruce, Ervin D.                                               2,110            0.003729%

Friedman, Alan D.                                            11,150            0.019706%
</Table>

                                      A-1
<PAGE>

<Table>
<Caption>
                                                         Partnership         Partnership
Name and Address of Partner                                 Units             Interests
---------------------------                              -----------         -----------
<S>                                                      <C>                 <C>
Goff, John C.                                               906,485            1.602067%

Haddock, Diane                                                1,000            0.001767%

Haddock, Gerald W.                                          202,919            0.358627%

Hersh, Kenneth A.                                               422            0.000746%

Joost, Peter M. and Joost, Lindsay M., Trustees U/T/A
dated April 11, 2002                                         25,000            0.044183%

Kelly, Thomas L., II                                          8,440            0.014916%

Kelly, W. Whitney                                             1,285            0.002271%

Lewis, Michael S.                                               960            0.001697%
</Table>

                                      A-2
<PAGE>

<Table>
<Caption>
                                                         Partnership         Partnership
Name and Address of Partner                                 Units             Interests
---------------------------                              -----------         -----------
<S>                                                      <C>                 <C>

Luce, Thomas W., III, Trustee                                 4,220            0.007458%
David N. Meyerson 1982 Trust UA
8/16/82

Luce, Thomas W., III, Trustee                                 4,220            0.007458%
Marti A. Meyerson 1982 Trust UA
8/16/82

Moore, Darla                                                259,805            0.459164%

Office Towers LLC                                         3,135,481            5.541460%

Rainwater, Inc.                                              24,753            0.043747%

Rainwater, Courtney E.                                       21,098            0.037287%

Rainwater, Matthew J.                                        21,098            0.037287%

Rainwater, Richard Todd                                      21,098            0.037287%
</Table>

                                      A-3
<PAGE>

<Table>
<Caption>
                                                         Partnership         Partnership
Name and Address of Partner                                 Units             Interests
---------------------------                              -----------         -----------
<S>                                                      <C>                 <C>
Rainwater, Richard E.                                     2,303,628            4.071293%

Roberts, Peter H.                                           339,543            0.600088%

Rosewood Property Company                                   629,330            1.112240%

Senterra Corporation                                         83,441            0.147469%

Taurus Investment Group, Inc.                                 1,205            0.002130%

Tofsky, Neil H.                                              20,857            0.036861%

Varma, Sanjay                                                 1,266            0.002237%

Wassel, James S.                                                598            0.001057%

Wright, Christina V.                                          1,950            0.003446%
</Table>

                                      A-4
<PAGE>

<Table>
<Caption>
                                                         Partnership         Partnership
Name and Address of Partner                                 Units             Interests
---------------------------                              -----------         -----------
<S>                                                      <C>                 <C>
Yates, Murphy C.                                              1,285            0.002271%

                                                          8,864,311                 100%
                                                         ==========            ========
</Table>

Series A Preferred Partnership Unit Holders:

<Table>
<Caption>
                                                   Number of Series A Preferred
Holder                                                   Partnership Units                     Issue Date
------                                        ----------------------------------------         ----------
<S>                                           <C>                                              <C>
Crescent Real Estate Equities Company                           8,000,000                        2/19/98
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                           2,800,000                        4/26/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                           3,400,000                        1/15/04
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</Table>

                                      A-5
<PAGE>

Series B Redeemable Preferred Partnership Unit Holders:

<Table>
<Caption>
                                              Number of Series B Redeemable
Holder                                         Preferred Partnership Units                Issue Date
------                                        ------------------------------              ----------
<S>                                           <C>                                        <C>
Crescent Real Estate Equities Company                    3,000,000                         05/17/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                      400,000                         06/06/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

</Table>

                                      A-6
<PAGE>

                                 SIXTH AMENDMENT
                        TO THE THIRD AMENDED AND RESTATED
                        AGREEMENT OF LIMITED PARTNERSHIP
                                       OF
                CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP

      THIS SIXTH AMENDMENT TO THE THIRD AMENDED AND RESTATED AGREEMENT OF
LIMITED PARTNERSHIP OF CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP, dated
as of January 14, 2005, is entered into by Crescent Real Estate Equities, Ltd.,
a Delaware corporation, on its own behalf as sole general partner (the "General
Partner") of Crescent Real Estate Equities Limited Partnership, a Delaware
limited partnership (the "Partnership"), as attorney-in-fact for each of the
existing limited partners (the "Limited Partners") of the Partnership, pursuant
to Sections 2.4 and 14.1.B of the Third Amended and Restated Agreement of
Limited Partnership of Crescent Real Estate Equities Limited Partnership, dated
as of January 2, 2003, as amended by the First Amendment to the Third Amended
and Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of September 9, 2003, the Second Amendment to the
Third Amended and Restated Agreement of Limited Partnership of Crescent Real
Estate Limited Partnership, dated as of October 9, 2003, the Third Amendment to
the Third Amended and Restated Agreement of Limited Partnership of Crescent Real
Estate Limited Partnership, dated as of January 15, 2004, the Fourth Amendment
to the Third Amended and Restated Agreement of Limited Partnership of Crescent
Real Estate Limited Partnership, dated as of March 31, 2004 and the Fifth
Amendment to the Third Amended and Restated Agreement of Limited Partnership of
Crescent Real Estate Limited Partnership, dated as of July 15, 2004 (hereinafter
referred to as the "Effective Agreement") and as attorney-in-fact for each of
the following individuals pursuant to the power of attorney granted by each such
individual in a separate Grant Agreement for Partnership Units and Partnership
Interest entered into between the Partnership and such individual: John C. Goff,
Dennis H. Alberts, Kenneth S. Moczulski, Jane E. Mody, Jerry R. Crenshaw, Jr.,
David M. Dean, Jane B. Page, John L. Zogg, Jr., Thomas G. Miller, Suzanne M.
Stevens, Robert H. Boykin, Jr., Joe D. Dobbs, Michael S. Lewis, Christopher T.
Porter, James H. Wilson, Anthony B. Click, James D. Dockal, Dana L. Donahoe, C.
Alan Hopkins, W. Whitney Kelly, Randy C. Kostroske, J. Jarrett Minton, III, John
P. Albright, Jason E. Anderson, Connie S. Angelot, Bruce M. Basham, Theresa E.
Black, Robert R. Carlen, Kiera B. Moody, Jason T. Phinney, Jeannette I. Rice,
Clifford M. Rudolph, Thomas Shaw, Jr., Eric S. Siegrist, Daniel E. Smith, Brent
R. Somers, Frank B. Staats, Randolph C. Strait, Brenna A. Wadleigh, Debra A.
Wilson and Walt J. Zartman.

                              W I T N E S S E T H:

      WHEREAS, the Partnership was formed pursuant to that certain Certificate
of Limited Partnership dated February 9, 1994 and filed on February 9, 1994 in
the office of the Secretary of State of Delaware, and that certain Agreement of
Limited Partnership dated as of February 9, 1994 (the "Initial Agreement");

      WHEREAS, the Initial Agreement, as amended, was amended and restated in
its entirety by that certain First Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
May 5, 1994 (the "First Amended Agreement"),

                                       1
<PAGE>

which First Amended Agreement, as amended, was amended and restated in its
entirety by that certain Second Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
November 1, 1997 (the "Second Amended Agreement");

      WHEREAS, the Second Amended Agreement, as amended, was amended and
restated in its entirety by the Effective Agreement;

      WHEREAS, under Section 1.E of Exhibit B to the Effective Agreement, the
General Partner has the authority to modify the provisions of Exhibit B relating
to the maintenance of Capital Accounts in order to comply with Regulations
Section 1.704-1(b), provided that it is not likely to have a material effect on
the amounts distributable to any Person pursuant to Article 13 of the Effective
Agreement upon the dissolution of the Partnership;

      WHEREAS, pursuant to the authority granted to the General Partner under
Section 1.E of Exhibit B, the General Partner desires to amend Section 1.D(2) of
Exhibit B to reflect recent changes to Regulations Section 1.704-1(b);

      WHEREAS, under Section 4.7.D of the Effective Agreement, the General
Partner has the authority, in its sole and absolute discretion and without the
approval of the Limited Partners, to adopt incentive compensation plans,
including plans granting Partnership Interests (including Partnership Units),
for the benefit of employees, agents or consultants of any member of the
Crescent Group or the Partnership in respect of services performed, directly or
indirectly, for the Crescent Group or the Partnership;

      WHEREAS, pursuant to the authority granted to the General Partner under
Section 4.7.D, the General Partner has issued (and may from time to time in the
future issue) Partnership Interests, including Partnership Units, to certain
employees of the Crescent Group in respect of services performed by such
employees for the benefit of the Partnership;

      WHEREAS, the General Partner desires to amend the Effective Agreement
pursuant to its authority under Section 14.1.B of the Effective Agreement and
the powers of attorney granted to the General Partner by the existing Limited
Partners under Section 2.4 of the Effective Agreement to reflect (1) certain
revisions to Section 1.D(2) of Exhibit B, (2) a new Section 4.9 to the Effective
Agreement and certain revisions to other provisions of the Effective Agreement
to provide for the issuance by the Partnership of Partnership Interests
(including Partnership Units) to certain officers of the General Partner, and
(3) the admission of certain officers of the General Partner as additional
Limited Partners;

      WHEREAS, on August 3, 2004, Kenneth A. Hersh exercised his Exchange Rights
with respect to 422 Partnership Units;

      WHEREAS, on October 8, 2004, Crescent Equities issued 1,034 REIT Shares to
William F. Quinn and 1,248 REIT Shares to Paul E. Rowsey, III in payment of
trust managers' fees and, in connection therewith, Crescent Equities shall
receive credit under Section 4.6 of the Effective Agreement for an aggregate
Capital Contribution to the Partnership of $35,667.66;

                                       2
<PAGE>

      WHEREAS, on October 20, 2004, Gerald W. Haddock assigned a Limited
Partnership Interest including 7,500 Partnership Units to the 2003 Haddock
Charitable Trust;

      WHEREAS, on October 20, 2004, the 2003 Haddock Charitable Trust exercised
its Exchange Rights with respect to 7,500 Partnership Units;

      WHEREAS, the individuals set forth in the following table exercised
options to purchase REIT Shares for the respective number of shares, on the
respective date, pursuant to the respective stock option plan and for which
Crescent Equities shall receive credit for the respective Capital Contribution
to the Partnership indicated opposite each such individual's name:

<TABLE>
<CAPTION>
                                     Number of
                                    REIT Shares                        Capital
  Individual         Exercise Date   Purchased   Stock Option Plan   Contribution
------------------   -------------  ------------ -----------------   ------------
<S>                  <C>            <C>          <C>                 <C>
Bruce Picker           11/10/04        1,000         1994 Plan       $ 17,510.00
Lori Brigman            12/3/04       13,600         1995 Plan       $256,360.00
Ann-Elaine Carroll      12/6/04        8,480         1995 Plan       $161,883.20
Howard Lovett          12/27/04        5,000         1995 Plan       $ 92,550.00
Murphy Yates            1/10/05        4,000         1994 Plan       $ 68,680.00
Michael S. Lewis        1/12/05          600         1994 Plan       $ 10,122.00
W. Whitney Kelly        1/12/05          600         1994 Plan       $ 10,122.00
</TABLE>

      WHEREAS, on December 2, 2004, Gerald W. Haddock exercised his Exchange
Rights with respect to 10,000 Partnership Units, on December 3, 2004, Gerald W.
Haddock exercised his Exchange Rights with respect to 15,000 Partnership Units,
and on January 14, 2005, Gerald W. Haddock exercised his Exchange Rights with
respect to 25,000 Partnership Units; and

      WHEREAS, on January 10, 2005, Crescent Equities issued 1,026 REIT Shares
to William F. Quinn and 994 REIT Shares to Paul E. Rowsey, III in payment of
trust managers' fees and, in connection therewith, Crescent Equities shall
receive credit under Section 4.6 of the Effective Agreement for an aggregate
Capital Contribution to the Partnership of $34,683.40;

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt,
adequacy and sufficiency of which are hereby acknowledged, the parties hereto,
intending legally to be bound, hereby agree as follows:

      1. The following new definitions are hereby added to Article I of the
Effective Agreement:

                  "Deferred Distribution Amount" of a Grantee as of a particular
            date means the payment, if any, due to the Grantee under the last
            sentence of Section 4.9.G as of such date (or, to the extent that
            all or

                                       3
<PAGE>

            a portion of a Grantee's Partnership Interest is unvested, the
            payment, if any, that would be due to the Grantee under the last
            sentence of Section 4.9.G if the Partnership Interest were vested as
            of such date).

                  "Grant Agreement(s)" has the meaning set forth in Section
            4.9.A hereof.

                  "Grantee(s)" has the meaning set forth in Section 4.9.A
            hereof.

                  "High Performance Plan" has the meaning set forth in Section
            4.9.A hereof.

2. The following new Section 4.9 is hereby added to the Effective Agreement:

            Section 4.9 Issuance of Partnership Interests to Employees of the
                        Crescent Group

                  A. Pursuant to Section 4.7.D of the Agreement, the Partnership
            has adopted that certain 2004 Crescent Real Estate Equities Limited
            Partnership Special High Performance Long-Term Incentive Plan (the
            "High Performance Plan"). Under the High Performance Plan, the
            Partnership has issued (and may from time to time in the future
            issue) Partnership Interests, including Partnership Units, to
            certain officers of the General Partner (hereinafter referred to
            individually as a "Grantee" and collectively as the "Grantees")
            pursuant to separate grant agreements entitled "Grant Agreement for
            Partnership Units and Partnership Interest" between the Partnership
            and each Grantee (hereinafter referred to individually as a "Grant
            Agreement" and collectively as the "Grant Agreements").

                  B. The Partnership Interests and associated Partnership Units
            issued to the Grantees shall have the same benefits and obligations
            as other Partnership Interests and associated Partnership Units,
            including without limitation voting rights and distribution rights,
            except as otherwise expressly set forth in this Agreement or the
            Grant Agreements.

                  C. Grantees may be subject to certain vesting requirements
            under the Grant Agreements.

                  D. Grantees may be subject to certain conditions on the
            exercise of Exchange Rights with respect to their Partnership Units
            under the Grant Agreements.

                  E. Grantees may be subject to certain limitations on the
            amount payable to the Grantees in connection with a transaction
            described in Section 11.2.B(1) under the Grant Agreements.

                                       4
<PAGE>

                  F. Unless otherwise provided in the Grant Agreement, the
            initial Capital Contribution and initial Capital Account balance of
            each Grantee with respect to the Partnership Interest awarded under
            the Grant Agreement shall be zero.

                  G. Each Grantee shall be entitled to receive distributions in
            accordance with the provisions of this Agreement (including without
            limitation Article V and Section 13.2) with respect to the vested
            portion of his or her Partnership Interest, commencing as of the
            date on which the portion of the Partnership Interest is vested. A
            Grantee shall not be entitled to receive cash or in-kind
            distributions under Section 5.2 with respect to the unvested portion
            of his or her Partnership Interest. Upon the vesting of a Grantee's
            Partnership Interest (or portion thereof), including without
            limitation a vesting that occurs in connection with a transaction
            described in Section 11.2.B hereof or a dissolution of the
            Partnership, the Grantee shall be entitled to receive a distribution
            from the Partnership in an amount equal to the aggregate
            distributions that would have been payable to the Grantee under
            Section 5.2 with respect to such Partnership Interest (or portion
            thereof) during the period from the date of grant to the vesting
            date if such Partnership Interest (or portion thereof) had been
            vested on the date of grant.

                  H. Each Grantee shall be allocated items of Partnership
            income, gain, loss and deduction with respect to his or her
            Partnership Interest in accordance with the provisions of Article
            VI, commencing as of the date on which the grant of the Partnership
            Interest is made to the Grantee. If the unvested portion of a
            Grantee's Partnership Interest expires pursuant to the terms of the
            Grant Agreement or is disclaimed by the Grantee, (1) the Grantee
            shall be allocated items of gross deduction and loss in the taxable
            year during which such expiration or disclaimer occurs in an amount
            sufficient to reduce to zero the Capital Account allocable to the
            portion of the Grantee's Partnership Interest that has expired or
            been disclaimed, and (2) the Grantee shall be allocated no other
            items of Partnership income, gain, loss and deduction for such
            taxable year or any future taxable year with respect to the expired
            or disclaimed portion of his or her Partnership Interest. An expired
            or disclaimed Partnership Interest shall be treated for all purposes
            of this Agreement as if it had been redeemed by the Partnership for
            no consideration, effective as of the expiration or disclaimer date,
            as the case may be.

                  I. The General Partner may (but shall not be required to) make
            tax distributions to the Grantees with respect to the unvested
            portions of their Partnership Interests. Any tax distributions to a
            Grantee with respect to a particular taxable year shall not exceed
            the lesser of (1) an amount equal to the product of (x) the net
            taxable income allocated to such Grantee with respect to his or her
            unvested

                                       5
<PAGE>

            Partnership Interest for such taxable year multiplied by forty-five
            percent, and (2) the amount of distributions that the Grantee would
            have received under Article V if his Partnership Interest were
            vested. Any tax distributions shall be made to the Grantees on a pro
            rata basis, in proportion to the respective unvested Partnership
            Interests owned by each of the Grantees. Tax distributions made
            under this Section 4.9.I shall be treated as advance payments of the
            amounts that are distributable to the Grantees under the other
            provisions of this Agreement and shall be offset against any such
            other amounts distributable to the Grantees.

                  J. Upon any admission of a Grantee as an additional Limited
            Partner pursuant to this Section 4.9, the General Partner's
            Partnership Interest shall remain unchanged, and the Partnership
            Interests of Crescent Equities and the other Limited Partners shall
            be adjusted as set forth in Section 4.3; provided that, (1) for
            purposes of calculating the "Deemed Value of the Partnership" and
            the "Deemed Partnership Interest Value" under Section 4.3, the
            "Value" of a REIT Share shall be the "closing price" (as such term
            is defined in the definition of the term "Value" in Article I
            hereof) of a REIT Share as of the date on which the grant of the
            Partnership Interest is made to the Grantee, and (2) the denominator
            used in the calculations under Section 4.3 shall be the sum of (i)
            the Deemed Value of the Partnership plus (ii) an amount equal to the
            product of (x) the number of Partnership Units granted to the
            Grantee, multiplied by (y) the Exchange Factor, multiplied by (z)
            the "closing price" (as such term is defined in the definition of
            the term "Value" in Article I hereof) of a REIT Share on the date on
            which the grant of the Partnership Interest is made to the Grantee.

                  K. Notwithstanding anything to the contrary contained in the
            penultimate sentence of Section 12.2B, each Grantee that receives a
            Partnership Interest under this Section 4.9 during December 2004
            shall receive allocations under the second sentence of Section 12.2B
            as if such Grantee had been admitted on the first day of December,
            2004.

                  L. The Partnership Interests and associated Partnership Units
            issued to Grantees shall be identified in Exhibit A to this
            Agreement.

                  M. In addition to obtaining any required consent of the
            Grantees as Limited Partners to certain amendments of the Agreement
            pursuant to the provisions of Section 14.1.C, the General Partner
            shall be required to obtain the prior written consent of each
            Grantee adversely affected prior to amending the provisions of this
            Section 4.9 or the provisions of Section 1.D of Exhibit B.

                                       6
<PAGE>

      3. In the first sentence of Section 5.2 of the Effective Agreement, the
phrase "Subject to Section 5.6 below" is hereby deleted in its entirety and
replaced with the phrase "Subject to Section 4.9.G above and Section 5.6 below."

      4. In Section 6.1.A of the Effective Agreement, the phrase "After giving
effect to the special allocations set forth in Section 1 of Exhibit C and the
allocations set forth in Section 6.3 below" is hereby deleted in its entirety
and replaced with the phrase "After giving effect to the special allocations set
forth in Section 1 of Exhibit C, the allocations set forth in Section 4.9.H
above and the allocations set forth in Section 6.3 below."

      5. In the first sentence of Section 6.1.B of the Effective Agreement, the
phrase "After giving effect to the special allocations set forth in Section 1 of
Exhibit C and the allocations set forth in Section 6.3 below" is hereby deleted
in its entirety and replaced with the phrase "After giving effect to the special
allocations set forth in Section 1 of Exhibit C, the allocations set forth in
Section 4.9.H above and the allocations set forth in Section 6.3 below."

      6. In the first sentence of Section 6.3 of the Effective Agreement, the
phrase "after giving effect to the special allocations set forth in Section 1 of
Exhibit C to this Agreement" is hereby deleted in its entirety and replaced with
the phrase "after giving effect to the special allocations set forth in Section
1 of Exhibit C to this Agreement and the allocations set forth in Section 4.9.H
above."

      7. Clause (B) of Section 6.3.B of the Effective Agreement is hereby
deleted in its entirety and replaced with the following:

                  (B) second, to the Grantees, in the amounts necessary, and in
            the ratio of such amounts, so as to cause the Capital Account
            balance of each Grantee to equal the Deferred Distribution Amount,
            if any, of such Grantee, (C) third, to the Partners in the amounts
            necessary, and in the ratio of such amounts, to cause the Capital
            Account balance of Crescent Equities in excess of the Liquidation
            Preferences, the Capital Account balance of each Grantee in excess
            of his or her Deferred Distribution Amount, if any, and the Capital
            Account balance of each other Partner to be in the same ratio as
            their respective Partnership Interests, and (D) thereafter, to all
            of the Partners in proportion to their respective Partnership
            Interests.

      8. Clauses (A) and (B) of Section 6.3.C of the Effective Agreement are
hereby deleted in their entirety and replaced with the following, and clause (C)
is hereby renumbered to be clause (D):

                  (A) first, to the Partners, if any, having positive Capital
            Account balances, in the amounts necessary, and in the ratio of such
            amounts, so as to cause the positive Capital Account Balance of
            Crescent Equities to equal the Liquidation Preferences, the positive
            Capital Account balance of each Grantee to equal the Deferred

                                       7
<PAGE>

           distribution Amount of such Grantee, if any, and the positive Capital
           Account balance of each other Partner to equal zero (or, if there is
           insufficient loss to accomplish this result, loss shall be allocated
           in a manner so as to cause the positive Capital Account balance of
           Crescent Equities in excess of the Liquidation Preferences, the
           positive Capital Account balance of each Grantee in excess of his or
           her Deferred Distribution Amount, if any, and the positive Capital
           Account balance of each other Partner to be in the same ratio as
           their respective Partnership Interests), (B) second, to the
           Grantees, in the amounts necessary, and in the ratio of such
           amounts, so as to cause the positive Capital Account of each Grantee
           to equal zero, (C) third, to Crescent Equities, until its Capital
           Account balance equals zero, and

      9. The following new Section 6.3.D is hereby added at the end of Section
6.3 of the Effective Agreement:

                  D. The provisions of Sections 6.3.B and 6.3.C above, which
            provide for a special allocation of gain and loss from a sale or
            other disposition of all or substantially all of the assets of the
            Partnership, shall continue to apply for the entire term of the
            Partnership, even if there are no longer any Series A Preferred
            Partnership Units or Series B Redeemable Preferred Partnership Units
            outstanding (in such event, the Liquidation Preferences of Crescent
            Equities under Sections 6.3.B and 6.3.C shall be zero).

      10. Section 1.D(2) of Exhibit B is hereby deleted in its entirety and
replaced with the following:

            (2) Such adjustments shall be made as of the following times: (a)
            immediately prior to the acquisition of an additional interest in
            the Partnership by any new or existing Partner in exchange for more
            than a de minimis Capital Contribution; (b) immediately prior to the
            distribution by the Partnership to a Partner of more than a de
            minimis amount of property as consideration for an interest in the
            Partnership; (c) immediately prior to the grant of an interest in
            the Partnership (other than a de minimis interest) on or after May
            6, 2004 as consideration for the provision of services to or for the
            benefit of the Partnership by an existing Partner acting in a
            partner capacity or by a new Partner acting in a partner capacity or
            in anticipation of being a partner; and (d) immediately prior to the
            liquidation of the Partnership, provided however that adjustments
            pursuant to clauses (a), (b) and (c) above shall be made only if the
            General Partner determines that such adjustments are necessary or
            appropriate to reflect the relative economic interests of the
            Partners in the Partnership.

                                       8
<PAGE>

      11. The following Grantees are hereby admitted as new Limited Partners of
the Partnership: John C. Goff, Dennis H. Alberts, Kenneth S. Moczulski, Jane E.
Mody, Jerry R. Crenshaw, Jr., David M. Dean, Jane B. Page, John L. Zogg, Jr.,
Thomas G. Miller, Suzanne M. Stevens, Robert H. Boykin, Jr., Joe D. Dobbs,
Michael S. Lewis, Christopher T. Porter, James H. Wilson, Anthony B. Click,
James D. Dockal, Dana L. Donahoe, C. Alan Hopkins, W. Whitney Kelly, Randy C.
Kostroske, J. Jarrett Minton, III, John P. Albright, Jason E. Anderson, Connie
S. Angelot, Bruce M. Basham, Theresa E. Black, Robert R. Carlen, Kiera B. Moody,
Jason T. Phinney, Jeannette I. Rice, Clifford M. Rudolph, Thomas Shaw, Jr., Eric
S. Siegrist, Daniel E. Smith, Brent R. Somers, Frank B. Staats, Randolph C.
Strait, Brenna A. Wadleigh, Debra A. Wilson and Walt J. Zartman. In the Grant
Agreements, the Grantees have agreed to be bound by all of the terms and
conditions of the Effective Agreement.

      12. In order to reflect the following transactions, which are more fully
described in the recitals above, Exhibit A to the Effective Agreement is hereby
deleted in its entirety and replaced with the Exhibit A attached to this Sixth
Amendment and made part hereof. Also attached as Schedule 1 to this Sixth
Amendment and made a part hereof is a schedule that shows the Partners,
Partnership Interests and Partnership Units as of December 31, 2004.

            (a) The exercise by Kenneth A. Hersh of his Exchange Rights with
      respect to 422 Partnership Units on August 3, 2004;

            (b) The Capital Contributions of Crescent Equities aggregating
      $35,667.66 on October 8, 2004 in connection with the issuance of 1,034
      REIT Shares to William F. Quinn and 1,248 REIT Shares to Paul E. Rowsey,
      III in payment of trust managers' fees;

            (c) The assignment by Gerald W. Haddock of 7,500 Partnership Units
      to the 2003 Haddock Charitable Trust on October 20, 2004;

            (d) The exercise by the 2003 Haddock Charitable Trust of its
      Exchange Rights with respect to 7,500 Partnership Units on October 20,
      2004;

            (e) The grants of Partnership Interests (including Partnership
      Units) to the Grantees pursuant to the Grant Agreements.

            (f) The Capital Contributions of Crescent Equities aggregating
      $617,227.20 in connection with the exercise of options to purchase REIT
      Shares by Bruce Picker, Lori Brigman, Ann-Elaine Carroll, Howard Lovett,
      Murphy Yates, Michael S. Lewis and W. Whitney Kelly;

            (g) The exercise by Gerald W. Haddock of his Exchange Rights with
      respect to 10,000 Partnership Units on December 2, 2004, 15,000
      Partnership Units on December 3, 2004 and 25,000 Partnership Units on
      January 14, 2005; and

            (h) The Capital Contributions of Crescent Equities aggregating
      $34,683.40 on January 10, 2005 in connection with the issuance of 1,026
      REIT Shares to William F.

                                       9
<PAGE>

      Quinn and 994 REIT Shares to Paul E. Rowsey, III in payment of trust
      managers' fees.

      13. Except as the context may otherwise require, any terms used in this
Sixth Amendment that are defined in the Effective Agreement shall have the same
meaning for purposes of this Sixth Amendment as in the Effective Agreement.

      14. Except as herein amended, the Effective Agreement is hereby ratified,
confirmed, and reaffirmed for all purposes and in all respects.

                                       10
<PAGE>

      IN WITNESS WHEREOF, the undersigned has executed this Sixth Amendment as
of the date first written above.

                        GENERAL PARTNER:

                        CRESCENT REAL ESTATE EQUITIES, LTD., a Delaware
                        corporation, on its own behalf and as attorney-in-fact
                        for all of the existing Limited Partners pursuant to
                        Sections 2.4 and 14.1.B of the Effective Agreement and
                        all of the Grantees listed in Exhibit A attached hereto
                        pursuant to the Grant Agreements

                        By: /s/ Jerry R. Crenshaw, Jr.
                            --------------------------------
                        Name:  Jerry R. Crenshaw, Jr.
                        Title: Executive Vice President and
                               Chief Financial Officer

                                       11
<PAGE>
                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF JANUARY 14, 2005)

<TABLE>
<CAPTION>
                                           Partnership      Partnership
Name and Address of Partner                   Units          Interests
                                           -----------      -----------
<S>                                        <C>              <C>
General Partner:

Crescent Real Estate Equities, Ltd.             None          1.000000%
777 Main Street
Suite 2100
Fort Worth, TX  76102

Limited Partners (Addresses Omitted):

Crescent Real Estate Equities Company           None         81.068518%

Anderson, John H.                            286,389          0.488612%

Big Bend III Investments, L.P.                18,989          0.032397%

Blalock, Myron G. III                         20,857          0.035584%

Canyon Ranch, Inc.                           503,429          0.858907%

Cruce, Ervin D.                                2,110          0.003600%

Friedman, Alan D.                             11,150          0.019023%

Goff, John C.                                906,485          1.546566%
</TABLE>

                                       A-1
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF JANUARY 14, 2005)

<TABLE>
<CAPTION>
                                           Partnership      Partnership
Name and Address of Partner                   Units          Interests
                                           -----------      -----------
<S>                                        <C>              <C>
Haddock, Diane                                 1,000          0.001706%

Haddock, Gerald W.                           145,419          0.248101%

Joost, Peter M. and Joost, Lindsay M.,        25,000          0.042653%
 Trustees U/T/A dated April 11, 2002

Kelly, Thomas L., II                           8,440          0.014400%

Kelly, W. Whitney                              1,285          0.002192%

Lewis, Michael S.                                960          0.001638%

Luce, Thomas W., III, Trustee                  4,220          0.007200%
David N. Meyerson 1982 Trust UA
8/16/82

Luce, Thomas W., III, Trustee                  4,220          0.007200%
Marti A. Meyerson 1982 Trust UA
8/16/82
</TABLE>

                                       A-2
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF JANUARY 14, 2005)

<TABLE>
<CAPTION>
                                           Partnership      Partnership
Name and Address of Partner                   Units          Interests
                                           -----------      -----------
<S>                                        <C>              <C>
Moore, Darla                                 259,805          0.443257%

Office Towers LLC                          3,135,481          5.349484%

Rainwater, Inc.                               24,753          0.042231%

Rainwater, Courtney E.                        21,098          0.035996%

Rainwater, Matthew J.                         21,098          0.035996%

Rainwater, Richard Todd                       21,098          0.035996%

Rainwater, Richard E.                      2,303,628          3.930249%

Roberts, Peter H.                            339,543          0.579299%
</TABLE>

                                       A-3
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF JANUARY 14, 2005)

<TABLE>
<CAPTION>
                                           Partnership      Partnership
Name and Address of Partner                   Units          Interests
                                           -----------      -----------
<S>                                        <C>              <C>
Rosewood Property Company                    629,330          1.073708%

Senterra Corporation                          83,441          0.142360%

Taurus Investment Group, Inc.                  1,205          0.002056%

Tofsky, Neil H.                               20,857          0.035584%

Varma, Sanjay                                  1,266          0.002160%

Wassel, James S.                                 598          0.001020%

Wright, Christina V.                           1,950          0.003327%

Yates, Murphy C.                               1,285          0.002192%
</TABLE>

                                       A-4
<PAGE>
                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF JANUARY 14, 2005)

<TABLE>
<CAPTION>
                                           Partnership      Partnership
Name and Address of Partner                   Units          Interests
                                           -----------      -----------
<S>                                        <C>              <C>
Grantee Limited Partners(1)
  (Addresses Omitted)

John C. Goff                                 390,000          0.665384%

Dennis H. Alberts                            250,000          0.426528%

Kenneth S. Moczulski                          85,000          0.145020%

Jane E. Mody                                  82,500          0.140754%

Jerry R. Crenshaw, Jr.                        75,000          0.127958%

David M. Dean                                 75,000          0.127958%

Jane B. Page                                  75,000          0.127958%

John L. Zogg, Jr.                             75,000          0.127958%

Thomas G. Miller                              75,000          0.127958%
</TABLE>

-----------------------
(1)the following Partnership Interests and associated Partnership Units were
issued to such Limited Partners as Grantees under Grant Agreements, as more
fully described in Section 4.9 of the Effective Agreement.

                                       A-5
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF JANUARY 14, 2005)

<TABLE>
<CAPTION>
                                           Partnership      Partnership
Name and Address of Partner                   Units          Interests
                                           -----------      -----------
<S>                                        <C>              <C>
Suzanne M. Stevens                            37,500          0.063979%

Robert H. Boykin, Jr.                         30,000          0.051183%

Joe D. Dobbs                                  30,000          0.051183%

Michael S. Lewis                              30,000          0.051183%

Christopher T. Porter                         30,000          0.051183%

James H. Wilson                               30,000          0.051183%

Anthony B. Click                               7,500          0.012796%

James D. Dockal                               13,750          0.023459%

Dana L. Donahoe                               12,500          0.021326%

C. Alan Hopkins                               21,250          0.036255%
</TABLE>

                                       A-6
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF JANUARY 14, 2005)

<TABLE>
<CAPTION>
                                           Partnership      Partnership
Name and Address of Partner                   Units          Interests
                                           -----------      -----------
<S>                                        <C>              <C>
W. Whitney Kelly                              7,500           0.012796%

Randy C. Kostroske                            13,750          0.023459%

J. Jarrett Minton, III                        11,250          0.019194%

John P. Albright                              26,250          0.044785%

Jason E. Anderson                             13,750          0.023459%

Connie S. Angelot                             13,750          0.023459%

Bruce M. Basham                                6,250          0.010663%

Theresa E. Black                              13,750          0.023459%

Robert R. Carlen                              13,750          0.023459%

Kiera B. Moody                                13,750          0.023459%
</TABLE>

                                       A-7
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF JANUARY 14, 2005)

<TABLE>
<CAPTION>
                                           Partnership      Partnership
Name and Address of Partner                   Units          Interests
                                           -----------      -----------
<S>                                        <C>              <C>
Jason T. Phinney                              13,750          0.023459%

Jeannette I. Rice                             11,250          0.019194%

Clifford M. Rudolph                           13,750          0.023459%

Thomas Shaw, Jr.                              13,750          0.023459%

Eric S. Siegrist                               7,500          0.012796%

Daniel E. Smith                               16,250          0.027724%

Brent R. Somers                               13,750          0.023459%

Frank B. Staats                               13,750          0.023459%

Randolph C. Strait                            12,500          0.021326%

Brenna A. Wadleigh                            13,750          0.023459%
</TABLE>

                                       A-8
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF JANUARY 14, 2005)

<TABLE>
<CAPTION>
                                           Partnership      Partnership
Name and Address of Partner                   Units          Interests
                                           -----------      -----------
<S>                                        <C>              <C>
Debra A. Wilson                                  7,500        0.012796%

Walt J. Zartman                                  7,500        0.012796%
                                            10,510,139             100%
                                            ==========        =========
</TABLE>

Series A Preferred Partnership Unit Holders:

<TABLE>
<CAPTION>
               Holder                       Number of Series A Preferred Partnership Units      Issue Date
-------------------------------------       ----------------------------------------------      ----------
<S>                                         <C>                                                 <C>
Crescent Real Estate Equities Company                         8,000,000                           2/19/98
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                         2,800,000                           4/26/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                         3,400,000                           1/15/04
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</TABLE>

                                      A-9
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF JANUARY 14, 2005)

Series B Redeemable Preferred Partnership Unit Holders:

<TABLE>
<CAPTION>
                                       Number of Series B Redeemable Preferred
Holder                                 Partnership Units                        Issue Date
-------------------------------------  ---------------------------------------  ----------
<S>                                    <C>                                      <C>    <C>
Crescent Real Estate Equities Company                        3,000,000           05/17/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                         400,000            06/06/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</TABLE>

                                      A-10
<PAGE>

                                   SCHEDULE I
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF DECEMBER 31, 2004)

<TABLE>
<CAPTION>
                                       Partnership  Partnership
Name and Address of Partner              Units       Interests
-------------------------------------  -----------  -----------
<S>                                    <C>          <C>
General Partner:

Crescent Real Estate Equities, Ltd.         None      1.000000%
777 Main Street
Suite 2100
Fort Worth, TX  76102

Limited Partners (Addresses Omitted):

Crescent Real Estate Equities Company       None     81.024794%

Anderson, John H.                        286,389      0.488641%

Big Bend III Investments, L.P.            18,989      0.032399%

Blalock, Myron G. III                     20,857      0.035587%

Canyon Ranch, Inc.                       503,429      0.858958%

Cruce, Ervin D.                            2,110      0.003600%

Friedman, Alan D.                         11,150      0.019024%

Goff, John C.                            906,485      1.546658%
</TABLE>

                                       I-1
<PAGE>

                                   SCHEDULE I
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF DECEMBER 31, 2004)

<TABLE>
<CAPTION>
                                                       Partnership  Partnership
Name and Address of Partner                               Units      Interests
-----------------------------------------------------  -----------  -----------
<S>                                                    <C>          <C>
Haddock, Diane                                            1,000      0.001706%

Haddock, Gerald W.                                      170,419      0.290771%

Joost, Peter M. and Joost, Lindsay M., Trustees U/T/A    25,000      0.042655%
dated April 11, 2002

Kelly, Thomas L., II                                      8,440      0.014400%

Kelly, W. Whitney                                         1,285      0.002192%

Lewis, Michael S.                                           960      0.001638%

Luce, Thomas W., III, Trustee                             4,220      0.007200%
David N. Meyerson 1982 Trust UA
8/16/82

Luce, Thomas W., III, Trustee                             4,220      0.007200%
Marti A. Meyerson 1982 Trust UA
8/16/82
</TABLE>

                                       I-2
<PAGE>

                                   SCHEDULE I
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF DECEMBER 31, 2004)

<TABLE>
<CAPTION>
                             Partnership  Partnership
Name and Address of Partner     Units      Interests
---------------------------  -----------  -----------
<S>                          <C>           <C>
Moore, Darla                    259,805    0.443283%

Office Towers LLC             3,135,481    5.349803%

Rainwater, Inc.                  24,753    0.042234%

Rainwater, Courtney E.           21,098    0.035998%

Rainwater, Matthew J.            21,098    0.035998%

Rainwater, Richard Todd          21,098    0.035998%

Rainwater, Richard E.         2,303,628    3.930483%

Roberts, Peter H.               339,543    0.579333%
</TABLE>

                                       I-3
<PAGE>

                                   SCHEDULE I
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF DECEMBER 31, 2004)

<TABLE>
<CAPTION>
                                         Partnership  Partnership
Name and Address of Partner                 Units      Interests
---------------------------------------  -----------  -----------
<S>                                      <C>          <C>
Rosewood Property Company                  629,330     1.073772%

Senterra Corporation                        83,441     0.142368%

Taurus Investment Group, Inc.                1,205     0.002056%

Tofsky, Neil H.                             20,857     0.035587%

Varma, Sanjay                                1,266     0.002160%

Wassel, James S.                               598     0.001020%

Wright, Christina V.                         1,950     0.003327%

Yates, Murphy C.                             1,285     0.002192%
</TABLE>

                                       I-4
<PAGE>
                                   SCHEDULE I
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF DECEMBER 31, 2004)

<TABLE>
<CAPTION>
                                 Partnership  Partnership
Name and Address of Partner         Units      Interests
-------------------------------  -----------  -----------
<S>                              <C>          <C>
Grantee Limited Partners(1)
  (Addresses Omitted)

John C. Goff                       390,000     0.665424%

Dennis H. Alberts                  250,000     0.426554%

Kenneth S. Moczulski                85,000     0.145028%

Jane E. Mody                        82,500     0.140763%

Jerry R. Crenshaw, Jr.              75,000     0.127966%

David M. Dean                       75,000     0.127966%

Jane B. Page                        75,000     0.127966%

John L. Zogg, Jr.                   75,000     0.127966%

Thomas G. Miller                    75,000     0.127966%
</TABLE>

--------------------------
(1) The following Partnership Interests and associated Partnership Units were
issued to such Limited Partners as Grantees under Grant Agreements, as more
fully described in Section 4.9 of the Effective Agreement.

                                       I-5
<PAGE>

                                   SCHEDULE I
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF DECEMBER 31, 2004)

<TABLE>
<CAPTION>
                             Partnership  Partnership
Name and Address of Partner     Units      Interests
---------------------------  -----------  -----------
<S>                          <C>          <C>
Suzanne M. Stevens              37,500     0.063983%

Robert H. Boykin, Jr.           30,000     0.051186%

Joe D. Dobbs                    30,000     0.051186%

Michael S. Lewis                30,000     0.051186%

Christopher T. Porter           30,000     0.051186%

James H. Wilson                 30,000     0.051186%

Anthony B. Click                 7,500     0.012797%

James D. Dockal                 13,750     0.023460%

Dana L. Donahoe                 12,500     0.021328%

C. Alan Hopkins                 21,250     0.036257%
</TABLE>

                                       I-6
<PAGE>

                                   SCHEDULE I
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF DECEMBER 31, 2004)

<TABLE>
<CAPTION>
                               Partnership  Partnership
Name and Address of Partner       Units      Interests
-----------------------------  -----------  -----------
<S>                            <C>          <C>
W. Whitney Kelly                  7,500      0.012797%

Randy C. Kostroske               13,750      0.023460%

J. Jarrett Minton, III           11,250      0.019195%

John P. Albright                 26,250      0.044788%

Jason E. Anderson                13,750      0.023460%

Connie S. Angelot                13,750      0.023460%

Bruce M. Basham                   6,250      0.010664%

Theresa E. Black                 13,750      0.023460%

Robert R. Carlen                 13,750      0.023460%

Kiera B. Moody                   13,750      0.023460%
</TABLE>

                                       I-7
<PAGE>

                                   SCHEDULE I
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF DECEMBER 31, 2004)

<TABLE>
<CAPTION>
                                 Partnership  Partnership
Name and Address of Partner         Units      Interests
-------------------------------  -----------  -----------
<S>                              <C>          <C>
Jason T. Phinney                    13,750     0.023460%

Jeannette I. Rice                   11,250     0.019195%

Clifford M. Rudolph                 13,750     0.023460%

Thomas Shaw, Jr.                    13,750     0.023460%

Eric S. Siegrist                     7,500     0.012797%

Daniel E. Smith                     16,250     0.027726%

Brent R. Somers                     13,750     0.023460%

Frank B. Staats                     13,750     0.023460%

Randolph C. Strait                  12,500     0.021328%

Brenna A. Wadleigh                  13,750     0.023460%
</TABLE>

                                       I-8
<PAGE>

                                   SCHEDULE I
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF DECEMBER 31, 2004)

<TABLE>
<CAPTION>
                             Partnership  Partnership
Name and Address of Partner     Units      Interests
---------------------------  -----------  -----------
<S>                          <C>          <C>
Debra A. Wilson                    7,500   0.012797%

Walt J. Zartman                    7,500   0.012797%

                              10,535,139        100%
                              ==========   ========
</TABLE>

Series A Preferred Partnership Unit Holders:

<TABLE>
<CAPTION>
                                       Number of Series A Preferred
Holder                                 Partnership Units             Issue Date
-------------------------------------  ----------------------------  ----------
<S>                                    <C>                           <C>
Crescent Real Estate Equities Company           8,000,000             2/19/98
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company           2,800,000             4/26/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company           3,400,000             1/15/04
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</TABLE>

                                       I-9
<PAGE>

                                   SCHEDULE I
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                       (EFFECTIVE AS OF DECEMBER 31, 2004)

Series B Redeemable Preferred Partnership Unit Holders:

<TABLE>
<CAPTION>
                                       Number of Series B Redeemable Preferred
Holder                                 Partnership Units                        Issue Date
-------------------------------------  ---------------------------------------  ----------
<S>                                    <C>                                      <C>
Crescent Real Estate Equities Company                3,000,000                   05/17/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                  400,000                   06/06/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</TABLE>

                                      I-10
<PAGE>
                                SEVENTH AMENDMENT
                        TO THE THIRD AMENDED AND RESTATED
                        AGREEMENT OF LIMITED PARTNERSHIP
                                       OF
                CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP

         THIS SEVENTH AMENDMENT TO THE THIRD AMENDED AND RESTATED AGREEMENT OF
LIMITED PARTNERSHIP OF CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP, dated
as of May 3, 2005, is entered into by Crescent Real Estate Equities, Ltd., a
Delaware corporation, on its own behalf as sole general partner (the "General
Partner") of Crescent Real Estate Equities Limited Partnership, a Delaware
limited partnership (the "Partnership"), as attorney-in-fact for each of the
existing limited partners (the "Limited Partners") of the Partnership, pursuant
to Sections 2.4 and 14.1.B of the Third Amended and Restated Agreement of
Limited Partnership of Crescent Real Estate Equities Limited Partnership, dated
as of January 2, 2003, as amended by the First Amendment to the Third Amended
and Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of September 9, 2003, the Second Amendment to the
Third Amended and Restated Agreement of Limited Partnership of Crescent Real
Estate Equities Limited Partnership, dated as of October 9, 2003, the Third
Amendment to the Third Amended and Restated Agreement of Limited Partnership of
Crescent Real Estate Equities Limited Partnership, dated as of January 15, 2004,
the Fourth Amendment to the Third Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
March 31, 2004, the Fifth Amendment to the Third Amended and Restated Agreement
of Limited Partnership of Crescent Real Estate Equities Limited Partnership,
dated as of July 15, 2004, and the Sixth Amendment to the Third Amended and
Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of January 14, 2005 (hereinafter referred to as
the "Effective Agreement") and as attorney-in-fact for Jeffrey L. Stevens
pursuant to the power of attorney granted by Mr. Stevens in a separate Grant
Agreement for Partnership Units and Partnership Interest entered into between
the Partnership and Mr. Stevens.

                                   WITNESSETH:

         WHEREAS, the Partnership was formed pursuant to that certain
Certificate of Limited Partnership dated February 9, 1994 and filed on February
9, 1994 in the office of the Secretary of State of Delaware, and that certain
Agreement of Limited Partnership dated as of February 9, 1994 (the "Initial
Agreement");

         WHEREAS, the Initial Agreement, as amended, was amended and restated in
its entirety by that certain First Amended and Restated Agreement of Limited
Partnership of Crescent Real Estate Equities Limited Partnership, dated as of
May 5, 1994 (the "First Amended Agreement"), which First Amended Agreement, as
amended, was amended and restated in its entirety by that certain Second Amended
and Restated Agreement of Limited Partnership of Crescent Real Estate Equities
Limited Partnership, dated as of November 1, 1997 (the "Second Amended
Agreement");

                                       1
<PAGE>

         WHEREAS, the Second Amended Agreement, as amended, was amended and
restated in its entirety by the Effective Agreement;

         WHEREAS, on January 18, 2005, Gerald W. Haddock exercised his Exchange
Rights with respect to 25,000 Partnership Units, on February 9, 2005, Gerald W.
Haddock exercised his Exchange Rights with respect to 12,500 Partnership Units,
on February 14, 2005, Gerald W. Haddock exercised his Exchange Rights with
respect to 12,500 Partnership Units, and on March 15, 2005, Gerald W. Haddock
exercised his Exchange Rights with respect to 20,000 Partnership Units;

         WHEREAS, on January 18, 2005, in connection with the bankruptcy plan of
Crescent Operating, Inc. and the Settlement Agreement, dated as of February 14,
2002, among Crescent Real Estate Equities Limited Partnership, Crescent Real
Estate Equities Company, Crescent Operating, Inc. and the other parties thereto,
as amended, Crescent Equities issued 184,075 REIT Shares to the stockholders of
Crescent Operating, Inc. and, in connection therewith, Crescent Equities shall
receive credit under Section 4.2 of the Effective Agreement for an aggregate
Capital Contribution to the Partnership of $3,194,805.70;

         WHEREAS, on February 1, 2005, Gerald W. Haddock assigned a Limited
Partnership Interest including 12,500 Partnership Units to the 2003 Haddock
Charitable Remainder Unitrust;

         WHEREAS, on February 1, 2005, pursuant to Section 4.9 of the Effective
Agreement, the Partnership issued a Partnership Interest (including 17,500
Partnership Units) to Jeffrey L. Stevens as a Grantee under the High Performance
Plan and desires to admit Mr. Stevens as an additional Limited Partner;

         WHEREAS, on February 9, 2005, the 2003 Haddock Charitable Remainder
Unitrust exercised its Exchange Rights with respect to 12,500 Partnership Units;

         WHEREAS, the individuals set forth in the following table exercised
options to purchase REIT Shares for the respective number of shares, on the
respective date, pursuant to the respective stock option plan and for which
Crescent Equities shall receive credit for the respective Capital Contribution
to the Partnership indicated opposite each such individual's name:

<Table>
<Caption>
                                                Number of
                                               REIT Shares        Stock          Capital
     Individual              Exercise Date      Purchased      Option Plan    Contribution
     ----------              -------------     -----------     -----------    ------------
<S>                          <C>               <C>             <C>            <C>
Jerry R. Crenshaw, Jr           1/27/05              800        1994 Plan     $ 13,304.00
Kathy Rickertson                1/28/05            1,600        1994 Plan     $ 26,560.00
Kimberly A. Dean                 2/4/05              800        1994 Plan     $ 13,696.00
Randy Carnival                   2/4/05            3,000        1994 Plan     $ 51,360.00
Randy Carnival                   2/4/05            1,000        1994 Plan     $ 17,120.00
</Table>

                                       2
<PAGE>

         WHEREAS, on March 30, 2005, in connection with the termination of his
employment with Crescent Equities, Jarrett Minton forfeited to the Partnership
11,250 Partnership Units previously issued to Mr. Minton as a Grantee under the
High Performance Plan pursuant to Section 4.9 of the Effective Agreement; and

         WHEREAS, on April 8, 2005, Crescent Equities issued 1,200 REIT Shares
to William F. Quinn and 1,063 REIT Shares to Paul E. Rowsey, III in payment of
trust managers' fees and, in connection therewith, Crescent Equities shall
receive credit under Section 4.6 of the Effective Agreement for an aggregate
Capital Contribution to the Partnership of $36,253.26.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt,
adequacy and sufficiency of which are hereby acknowledged, the parties hereto,
intending legally to be bound, hereby agree as follows:

         1. Jeffrey L. Stevens is hereby admitted as an additional Limited
Partner of the Partnership pursuant to Section 4.9 of the Effective Agreement.
In his Grant Agreement, Mr. Stevens agreed to be bound by all of the terms and
conditions of the Effective Agreement.

         2. In order to reflect the following transactions, which are more fully
described in the recitals above, Exhibit A to the Effective Agreement is hereby
deleted in its entirety and replaced with the Exhibit A attached to this Seventh
Amendment and made part hereof.

             (a) The exercise by Gerald W. Haddock of his Exchange Rights with
respect to 25,000 Partnership Units on January 18, 2005, 12,500 Partnership
Units on February 9, 2005, 12,500 Partnership Units on February 14, 2005, and
20,000 Partnership Units on March 15, 2005;

             (b) The Capital Contributions of Crescent Equities aggregating
$3,194,805.70 in connection with the issuance by Crescent Equities of 184,075
REIT Shares to the stockholders of Crescent Operating, Inc. on January 18, 2005;

             (c) The assignment by Gerald W. Haddock of 12,500 Partnership Units
to the 2003 Haddock Charitable Remainder Unitrust on February 1, 2005;

             (d) The grant of a Partnership Interest (including 17,500
Partnership Units) to Jeffrey L. Stevens pursuant to Section 4.9 of the
Effective Agreement;

             (e) The exercise by the 2003 Haddock Charitable Remainder Unitrust
of its Exchange Rights with respect to 12,500 Partnership Units on February 9,
2005;

             (f) The Capital Contributions of Crescent Equities aggregating
$122,040.00 in connection with the exercise of options to purchase REIT Shares
by Jerry R. Crenshaw, Jr., Kathy Rickertson, Kimberly A. Dean, and Randy
Carnival;

             (g) The forfeiture by Jarrett Minton of his Partnership Interest
(including 11,250 Partnership Units) on March 30, 2005; and

                                       3
<PAGE>

             (h) The Capital Contributions of Crescent Equities aggregating
$36,253.26 on April 8, 2005 in connection with the issuance of 1,200 REIT Shares
to William F. Quinn and 1,063 REIT Shares to Paul E. Rowsey, III in payment of
trust managers' fees.

         3. Except as the context may otherwise require, any terms used in this
Seventh Amendment that are defined in the Effective Agreement shall have the
same meaning for purposes of this Seventh Amendment as in the Effective
Agreement.

         4. Except as herein amended, the Effective Agreement is hereby
ratified, confirmed, and reaffirmed for all purposes and in all respects.

                                       4
<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed this Seventh Amendment
as of the date first written above.

                                             GENERAL PARTNER:

                                             CRESCENT REAL ESTATE EQUITIES,
                                             LTD., a Delaware corporation, on
                                             its own behalf and as
                                             attorney-in-fact for all of the
                                             existing Limited Partners pursuant
                                             to Sections 2.4 and 14.1.B of the
                                             Effective Agreement and Jeffrey L.
                                             Stevens pursuant to the Grant
                                             Agreement between the Partnership
                                             and Mr. Stevens

                                             By: /s/ DAVID M. DEAN
                                                -------------------------------
                                             Name: David M. Dean
                                                  -----------------------------
                                             Title: Managing Director, Law and
                                                   -----------------------------
                                                   Secretary
                                                   -----------------------------

                                       5
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                          (EFFECTIVE AS OF MAY 3, 2005)

<Table>
<Caption>
                                                          Partnership     Partnership
Name and Address of Partner                                  Units         Interests
---------------------------                               -----------     -----------
<S>                                                       <C>             <C>
General Partner:

Crescent Real Estate Equities, Ltd.                          None          1.000000%
777 Main Street
Suite 2100
Fort Worth, TX 76102

Limited Partners (Address Omitted):

Crescent Real Estate Equities Company                        None         81.229673%

Anderson, John H                                          286,389          0.487759%

Big Bend III Investments, L.P.                             18,989          0.032341%

Blalock, Myron G. III                                      20,857          0.035522%

Canyon Ranch, Inc.                                        503,429          0.857408%

Cruce, Ervin D                                              2,110          0.003594%

Friedman, Alan D                                           11,150          0.018990%
</Table>

                                      A-1
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                          (EFFECTIVE AS OF MAY 3, 2005)

<Table>
<Caption>
                                                         Partnership      Partnership
Name and Address of Partner                                 Units          Interests
---------------------------                              -----------      -----------
<S>                                                      <C>              <C>
Goff, John C                                              906,485          1.543867%

Haddock, Diane                                              1,000          0.001703%

Haddock, Gerald W                                          62,919          0.107160%

Joost, Peter M. and Joost, Lindsay M.,
Trustees U/T/A dated April 11, 2002                        25,000          0.042578%

Kelly, Thomas L., II                                        8,440          0.014374%

Kelly, W. Whitney                                           1,285          0.002189%

Lewis, Michael S                                              960          0.001635%

Luce, Thomas W., III, Trustee                               4,220          0.007187%
David N. Meyerson 1982 Trust UA
8/16/82
</Table>

                                      A-2
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                          (EFFECTIVE AS OF MAY 3, 2005)

<Table>
<Caption>
                                                         Partnership      Partnership
Name and Address of Partner                                 Units          Interests
---------------------------                              -----------      -----------
<S>                                                       <C>              <C>
Luce, Thomas W., III, Trustee                               4,220          0.007187%
Marti A. Meyerson 1982 Trust UA
8/16/82

Moore, Darla                                              259,805          0.442483%

Office Towers LLC                                       3,135,481          5.340149%

Rainwater, Inc.                                            24,753          0.042158%

Rainwater, Courtney E                                      21,098          0.035933%

Rainwater, Matthew J                                       21,098          0.035933%

Rainwater, Richard Todd                                    21,098          0.035933%

Rainwater, Richard E                                    2,303,628          3.923391%
</Table>

                                      A-3
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                          (EFFECTIVE AS OF MAY 3, 2005)

<Table>
<Caption>
                                                         Partnership      Partnership
Name and Address of Partner                                 Units          Interests
---------------------------                              -----------      -----------
<S>                                                       <C>              <C>
Roberts, Peter H                                          339,543          0.578288%

Rosewood Property Company                                 629,330          1.071834%

Senterra Corporation                                       83,441          0.142111%

Taurus Investment Group, Inc.                               1,205          0.002052%

Tofsky, Neil H                                             20,857          0.035522%

Varma, Sanjay                                               1,266          0.002156%

Wassel, James S                                               598          0.001018%

Wright, Christina V                                         1,950          0.003321%

Yates, Murphy C                                             1,285          0.002189%
</Table>

                                      A-4
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                          (EFFECTIVE AS OF MAY 3, 2005)

<Table>
<Caption>
                                                          Partnership      Partnership
Name and Address of Partner                                  Units          Interests
---------------------------                               -----------      -----------
<S>                                                       <C>              <C>
Grantee Limited Partners(1) (Addresses Omitted)

John C. Goff                                                390,000         0.664223%

Dennis H. Alberts                                           250,000         0.425784%

Kenneth S. Moczulski                                         85,000         0.144767%

Jane E. Mody                                                 82,500         0.140509%

Jerry R. Crenshaw, Jr                                        75,000         0.127735%

David M. Dean                                                75,000         0.127735%

Jane B. Page                                                 75,000         0.127735%

John L. Zogg, Jr                                             75,000         0.127735%
</Table>

----------

(1) The following Partnership Interests and associated Partnership Units were
    issued to such Limited Partners as Grantees under Grant Agreements, as more
    fully described in Section 4.9 of the Effective Agreement.

                                      A-5
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                          (EFFECTIVE AS OF MAY 3, 2005)

<Table>
<Caption>
                                                          Partnership       Partnership
Name and Address of Partner                                  Units           Interests
---------------------------                               -----------       -----------
<S>                                                       <C>               <C>
Thomas G. Miller                                            75,000           0.127735%

Suzanne M. Stevens                                          37,500           0.063868%

Robert H. Boykin, Jr                                        30,000           0.051094%

Joe D. Dobbs                                                30,000           0.051094%

Michael S. Lewis                                            30,000           0.051094%

Christopher T. Porter                                       30,000           0.051094%

James H. Wilson                                             30,000           0.051094%

Anthony B. Click                                             7,500           0.012774%

James D. Dockal                                             13,750           0.023418%

Dana L. Donahoe                                             12,500           0.021289%
</Table>

                                      A-6
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                          (EFFECTIVE AS OF MAY 3, 2005)

<Table>
<Caption>
                                                           Partnership      Partnership
Name and Address of Partner                                   Units          Interests
---------------------------                                -----------      -----------
<S>                                                        <C>              <C>
C. Alan Hopkins                                               21,250         0.036192%

W. Whitney Kelly                                               7,500         0.012774%

Randy C. Kostroske                                            13,750         0.023418%

John P. Albright                                              26,250         0.044707%

Jason E. Anderson                                             13,750         0.023418%

Connie S. Angelot                                             13,750         0.023418%

Bruce M. Basham                                                6,250         0.010645%

Theresa E. Black                                              13,750         0.023418%

Robert R. Carlen                                              13,750         0.023418%

Kiera B. Moody                                                13,750         0.023418%
</Table>

                                      A-7
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                          (EFFECTIVE AS OF MAY 3, 2005)

<Table>
<Caption>
                                                           Partnership      Partnership
Name and Address of Partner                                   Units          Interests
---------------------------                                -----------      -----------
<S>                                                        <C>              <C>
Jason T. Phinney                                              13,750         0.023418%

Jeannette I. Rice                                             11,250         0.019160%

Clifford M. Rudolph                                           13,750         0.023418%

Thomas Shaw, Jr                                               13,750         0.023418%

Eric S. Siegrist                                               7,500         0.012774%

Daniel E. Smith                                               16,250         0.027676%

Brent R. Somers                                               13,750         0.023418%

Frank B. Staats                                               13,750         0.023418%

Jeffrey L. Stevens                                            17,500         0.029805%

Randolph C. Strait                                            12,500         0.021289%
</Table>

                                      A-8
<PAGE>

                                    EXHIBIT A
              PARTNERS, PARTNERSHIP UNITS AND PARTNERSHIP INTERESTS
                          (EFFECTIVE AS OF MAY 3, 2005)

<Table>
<Caption>
                                                         Partnership        Partnership
Name and Address of Partner                                 Units            Interests
---------------------------                              -----------        -----------
<S>                                                       <C>               <C>
Brenna A. Wadleigh                                           13,750         0.023418%

Debra A. Wilson                                               7,500         0.012774%

Walt J. Zartman                                               7,500         0.012774%
                                                         10,433,889              100%
                                                         ==========         ========
</Table>

Series A Preferred Partnership Unit Holders:

<Table>
<Caption>

                                                    Number of Series A
                                                   Preferred Partnership
Holder                                                    Units             Issue Date
------                                             ---------------------    ----------
<S>                                                <C>                      <C>
Crescent Real Estate Equities Company                     8,000,000          2/19/98
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                     2,800,000          4/26/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                     3,400,000          1/15/04
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</Table>

                                      A-9
<PAGE>

Series B Redeemable Preferred Partnership Unit Holders:

<Table>
<Caption>

                                                      Number of Series B
                                                      Redeemable Preferred
Holder                                                  Partnership Units      Issue Date
------                                                --------------------     ----------
<S>                                                   <C>                      <C>
Crescent Real Estate Equities Company                     3,000,000             05/17/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102

Crescent Real Estate Equities Company                       400,000             06/06/02
777 Main Street, Suite 2100
Fort Worth, Texas 76102
</Table>

                                      A-10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}]]