Document:

ex101to8k06898_07092008.htm

    Exhibit
10.1

     

    PURCHASE
AGREEMENT

     

    This
PURCHASE AGREEMENT (this “Agreement”)
is made and entered into as of July 9, 2008, among John K. H. Linnartz (the
“Seller”),
Western Mustang Holdings LLC, a Delaware limited liability company (the “Purchaser”)
and Western Sizzlin Corporation, a Delaware corporation and the sole member of
the Purchaser (the “Parent”).

     

    W I T N E S S E T
H:

     

    WHEREAS, pursuant to the
Limited Partnership Agreement (the “Original
Partnership Agreement”), made and entered into on November 7, 2002,
between Mustang Capital Management, LLC, a Texas limited liability company
(“General
Partner”), and the Seller (the “Original
Partners”), the Original Partners formed Mustang Capital Advisors, LP, a
Texas limited partnership (“Advisors”);

     

    WHEREAS, the Seller is the
owner and holder of a 99% limited partnership interest in the
Advisors;

     

    WHEREAS, pursuant to the
Limited Liability Company Regulations, dated as of November 7, 2002 (the “Original LLC
Regulations”), the Seller formed the General Partner and is the sole
member thereof;

     

    WHEREAS, because the Seller is
the sole member of the General Partner and also thus the sole partner of the
Partner, Advisors is a disregarded entity for federal income tax purposes, and
for such purposes is instead considered a sole proprietorship of the Seller,
rather than a partnership;

     

    WHEREAS, Advisors serves as
investment manager to, and is the general partner of, each of Mustang Capital
Partners I, LP and Mustang Capital Partners II, LP, each a Texas limited
partnership (each a “Fund” and
collectively, the “Funds”);

     

    WHEREAS, the Seller is selling
and assigning to the Purchaser, and the Purchaser is purchasing from the Seller,
on the terms and subject to the conditions set forth in this Agreement, a 50.5%
partnership interest in Advisors and a 51% membership interest in the General
Partner (such interests in Advisors and the General Partner, collectively, the
“Purchased
Interests”);

     

    WHEREAS, such sale and
assignment shall be in accordance with “Situation 1” of Rev. Rul.
99-5;

     

    WHEREAS, notwithstanding
references in this Agreement to the “Original
Partners,” upon such sale and assignment, the Purchaser will become, for
federal income tax purposes, the only other partner of Advisors and the only
other member of the General Partner, and both Advisors and the General Partner
will thus thereafter be considered partnerships for federal income tax
purposes;

     

    WHEREAS, on the date hereof,
the Original Partners and the Purchaser will enter into the Amended and Restated
Limited Partnership Agreement of Advisors (the “Amended
Partnership Agreement”), in substantially the form of Exhibit
A hereto, which will amend and restate the Original Partnership Agreement
in its entirety; and

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    WHEREAS, on the date hereof,
the Seller and the Purchaser will enter into the Amended and Restated Limited
Liability Company Regulations of the General Partner (the “Amended LLC
Regulations” and, together with the Amended Partnership Agreement, the
“Amended
Organizational Documents”), in substantially the form of Exhibit
B hereto, which will amend and restate the Original LLC Regulations in
their entirety;

     

    NOW, THEREFORE, in
consideration of the premises and the mutual benefits to be derived from this
Agreement and the Amended Organizational Documents and of the respective
representations, warranties, agreements, indemnities, and promises contained
herein, the parties, intending to be legally bound, agree as
follows:

     

    
      	
              SECTION
      1.

            	
              DEFINITIONS;
      INTERPRETATIONS

            

    

     

    1.1.           Definitions.  Capitalized
terms used in this Agreement that are defined in the Amended Partnership
Agreement or the Amended LLC Regulations, as the case may be, and not otherwise
defined herein shall have the respective meanings set forth in the Amended
Partnership Agreement or the Amended LLC Regulations, as the case may
be.  As used in this Agreement, the following terms shall have the
following meanings:

     

    “Code”
means the Internal Revenue Code of 1986, as amended.

     

    “Control”
(including the terms “controlled by” and “under common control with”) means the
possession, directly or indirectly or as trustee or executor, of the power to
direct or cause the direction of the management and/or affairs of a Person,
whether through the ownership of stock, as trustee or executor, by contract or
credit arrangement or otherwise, including, without limitation, the ownership,
directly or indirectly, of securities having the power to elect a majority of
the board of directors or similar body governing the affairs of such
Person.

     

    “Encumbrance”
means any security interest, pledge, mortgage, lien (including environmental and
tax liens), charge, encumbrance, adverse claim, preferential arrangement, or
restriction of any kind, including, without limitation, any restriction on the
use, voting, transfer, receipt of income, or other exercise of any attributes of
ownership; provided, however, that neither
margin debt of Mustang Capital Partners I, LP nor margin debt of the Managed
Accounts incurred in the ordinary course of business of Mustang Capital Partners
I, LP or Advisors, as the case may be, shall be considered an “Encumbrance”
for purposes of this Agreement.

     

    “Estimated June
30 Balance Sheet” means the estimated unaudited consolidated balance
sheet of Advisors as of June 30, 2008, being delivered by the Seller to the
Purchaser pursuant to Section 2.3(a)(vi).

     

    “GAAP”
means United States generally accepted accounting principles and practices in
effect from time to time applied consistently throughout the periods
involved.

     

    “Governmental
Entity means any federal, state or local governmental authority, court,
administrative or regulatory agency or commission.

     

    “Investment”
means singularly, any, and collectively, all, securities in which Advisors,
through the Managed Accounts, or in which the Funds, have invested as of June
30, 2008.

     

    
      
         

      

      
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    “Investment
List” means a list by Fund and Managed Account, as applicable, of each
Investment, and the aggregate amount invested by such Fund or through such
Managed Account in such Investment as of June 30, 2008.

     

    “Managed
Accounts” means all managed accounts of Advisors as of June 30,
2008.

     

    “Material Adverse
Effect” means, with respect to any Person, any circumstance, change,
event, transaction, loss, failure, effect, or other occurrence, which is
materially adverse to the business, operations, prospects, properties, or
conditions of such Person.

     

    “Organizational
Documents” shall mean with respect to any entity the certificate or
articles of incorporation, by-laws, certificate of limited partnership,
partnership agreement, certificate of formation, limited liability company
agreement and any other organizational document of such entity.

     

    “Person”
means any individual, corporation, unincorporated organization, company, limited
liability company, partnership (limited or general), joint venture, association,
trust or other entity.

     

    “Side Pocket
Investments” means, except for shares of Trinity Bank, National
Association, Fort Worth, TX, owned by the Funds, Investments that were as of
June 30, 2008 not either (a) listed on a national securities exchange, or (b)
traded in the over-the-counter markets.

     

    “Tax” means
any and all fees (including without limitation documentation, recording,
license, and registration fees), taxes (including without limitation net income,
alternative, unitary, alternative minimum, minimum franchise, value added, ad
valorem, income, receipts, capital, excise, sales, use, leasing, fuel, excess
profits, turnover, occupational, property (personal and real, tangible and
intangible), transfer, recording and stamp taxes, levies, imposts, duties,
charges, fees assessments, or withholdings of any nature whatsoever, general or
special, ordinary or extraordinary, and any transaction privilege or similar
taxes) imposed by or on behalf of a governmental authority, together with any
and all penalties, fines, additions to tax and interest thereon.

     

    “Tax
Return” shall mean any return, declaration, report, claim for refund, or
information return or statement or other form relating to Taxes, including any
schedule or attachment thereto, and including any amendment
thereof.

     

    1.2.           Interpretations.  Except
as otherwise expressly provided herein, the following rules of interpretation
apply to this Agreement: (i) the singular includes the plural and the plural
includes the singular except when the context otherwise requires; (ii) “include”
and “including” are not limiting; (iii) a reference to any agreement or contract
includes exhibits, schedules, and permitted supplements and amendments thereto;
(iv) a reference to a law includes any amendment or modification to such law and
any rules or regulations issued thereunder, (v) a reference to a Person includes
such Person's permitted successors and assigns; and (vi) unless the context
otherwise requires, a reference in this Agreement to a Section or Paragraph is
to the respective Section or Paragraph of this Agreement.

     

    
      
         

      

      
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              SECTION
      2.

            	
              SALE
      AND PURCHASE OF PURCHASED INTERESTS

            

    

     

    2.1.           Sale and Purchase of
Purchased Interests.

     

    (a)           Upon
the terms and subject to the conditions set forth in this Agreement, at the
Closing (as defined below), the Seller shall sell, assign, and transfer to the
Purchaser, free and clear of all Encumbrances, and the Purchaser shall purchase
from the Seller, the Purchased Interests for the aggregate consideration set
forth in Section 2.1(b) below.

     

    (b)           The
aggregate consideration to be paid by the Purchaser to the Seller at the Closing
(the “Total
Consideration”) shall consist of the following: (i) three hundred
thousand dollars ($300,000) (the “Cash
Consideration”) and (ii) 54,563 shares of common stock, par value $.01
per share, of the Parent (the “Parent Common
Stock”).  The parties agree that the Total Consideration shall
be $1,050,241 (based on a price per share of $13.75, which represents the
closing price of the Parent Common Stock on the Nasdaq Capital Market on July 7,
2008.

     

    (c)           After
giving effect to the sale and purchase under this Section 2.1 and the Closing,
the Purchaser shall be (i) a substituted Limited Partner in Advisors pursuant to
the terms of the Amended Partnership Agreement, with the Purchaser holding a
50.5% Partnership Percentage, the Seller holding a 48.5% Partnership Percentage
and the General Partner holding a 1% Partnership Percentage and (ii) a Member in
the General Partner pursuant to the terms of the Amended LLC Regulations, with
the Purchaser holding a 51% Membership Percentage and the Seller holding a 49%
Membership Percentage.

     

    2.2.           Closing.  The
purchase and sale of the Purchased Interests shall take place at 10:00 a.m. on
the date of execution and delivery of this Agreement, at the offices of Olshan
Grundman Frome Rosenzweig & Wolosky LLP, Park Avenue Tower, 65 East 55th
Street, New York, New York 10022, or at such other time and place or such other
manner, including by electronic means, as the Seller and the Purchaser shall
mutually agree (the “Closing”).  The
date on which the Closing takes place is referred to herein as the “Closing
Date.”  At the Closing, the parties to this Agreement shall
take the following actions and make the following deliveries, which deliveries
and actions shall be deemed to have occurred simultaneously and to constitute
the Closing hereunder:

     

    (a)           The
Purchaser shall pay the Seller the Cash Consideration by wire transfer in
immediately available funds to a bank account designated by the Seller in
writing prior to the Closing Date; and

     

    (b)           The
Purchaser shall deliver (i) to its transfer agent an irrevocable letter of
instruction directing it to issue and deliver to the Seller a share certificate
representing the Parent Common Stock and (ii) to the Seller, a copy of such
irrevocable letter of instruction; and

     

    (c)           The
General Partner, the Seller and the Purchaser shall execute and deliver the
Amended Organizational Documents.

     

    2.3.           Conditions
to Closing.  Prior to Closing, the indicated Persons below
shall have taken or cause to have been taken, the following actions, and shall
have delivered, or caused to have been delivered, the following
documents:

     

    
      
         

      

      
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    (a)           The
Seller, acting as the sole member of the General Partner, shall
have:

     

    (i)           distributed
to himself, as the owner of all limited and general partnership interests in
Advisors, all management fees on Managed Accounts that were earned for the
period beginning January 1, 2008 and ending on the Closing Date, to the extent
same have not previously been distributed to the Seller;

     

    (ii)           distributed
to himself all monies in the General Partner’s bank account at Banc of America
as of June 30, 2008, except for at least $200 retained in such account as of
such date, and all monies in Advisors’ bank account at Banc of America
Securities as of June 30, 2008, except for at least $10,000 retained in such
account as of such date;

     

    (iii)           instructed
Bank of America Securities in writing to distribute to the partners of the
Funds, their pro rata share of the aggregate shares of Western Sizzlin common
stock, par value $.01 per share, held by the Funds as of July 2,
2008;

     

    (iv)           delivered
to the Purchaser a copy of the Organizational Documents of Advisors, the General
Partner and each Fund, each as amended to date;

     

    (v)           delivered
to Purchaser the Investment List;

     

    (vi)           delivered
to the Purchaser the Estimated June 30 Balance Sheet; and

     

    (vii)           delivered
to the Purchaser all consents required in connection with the transactions
described in this Agreement.

     

    (b)           The
Purchaser shall have delivered to the Seller a copy of the Organizational
Documents of the Purchaser.

     

    
      	
              SECTION
      3.

            	
              REPRESENTATIONS
      AND WARRANTIES OF SELLER

            

    

     

    As
inducement to the Purchaser and the Parent to enter into this Agreement, the
Seller represents and warrants to the Purchaser and the Parent that, as of the
Closing Date (except to the extent any representation or warranty is made as of
another date, which is hereby made as of such other date):

     

    3.1.           Organization and
Authority.

     

    (a)           Advisors
and each of the Funds is a limited partnership duly formed, validly existing,
and in good standing under the laws of the State of Texas, and has all requisite
power and authority to own, operate, or lease its properties and assets and to
carry on its business as it is currently conducted as of the Closing Date, and
is duly licensed or qualified to do business and is in good standing in each
jurisdiction in which the properties owned or leased by it or the operation of
its business makes such licensing or qualification necessary.

     

    (b)           The
General Partner is a limited liability company duly organized, validly existing,
and in good standing under the laws of the State of Texas, and has all requisite
power and authority to own, operate, or lease its properties and assets and to
carry on its business as it is currently conducted, and is duly licensed or
qualified to do business and is in good standing in each jurisdiction in which
the properties owned or leased by it or the operation of its business makes such
licensing or qualification necessary.

     

    
      
         

      

      
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    (c)           The
Seller has furnished to the Purchaser a complete and correct copy of the
Organizational Documents of Advisors, the General Partner and each of the Funds,
each as amended to date, each of which is in full force and
effect.  Except as described on Schedule
3.1(c), none of Advisors, the General Partner or either Fund is in
violation of any of the material provisions of its Organizational
Documents.

     

    (d)           This
Agreement has been duly executed and delivered by the Seller and (assuming due
execution, and delivery by the Purchaser and the Parent), constitutes the legal,
valid and binding obligation of the Seller, enforceable against the Seller in
accordance with its terms, except as may be limited by bankruptcy, insolvency,
reorganization, or other similar laws affecting or relating to creditor’s rights
generally and general equitable principles.

     

    3.2.           Subsidiaries.

     

    (a)           Other
than the Funds, there are no corporations, partnerships, joint ventures,
associations, or other entities in which Advisors owns, of record or
beneficially, any direct or indirect equity or other interest or any right
(contingent or otherwise) to acquire the same, or in which Advisors otherwise
participates.

     

    (b)           Other
than Advisors, there are no corporations, partnerships, joint ventures,
associations, or other entities in which the General Partner owns, of record or
beneficially, any direct or indirect equity or other interest or any right
(contingent or otherwise) to acquire the same, or in which the General Partner
otherwise participates.

     

    3.3.           Partners;
Members.

     

    (a)           Prior
to giving effect to the transactions to occur at Closing, the Original Partners
were, and have been since the formation of the Funds, the only Partners of
Advisors, with the Seller owning a 99% Partnership Percentage as the sole
Limited Partner and the General Partner owning a 1% Partnership Percentage as
the sole General Partner, and each of the Original Partners owns, and has owned
since the formation of the Funds, his or its respective interests in Advisors
free and clear of any Encumbrance.  Prior to giving effect to the
transactions to occur at Closing, the Seller was, and has been since the
formation of the General Partner, the only Member of the General Partner, and
the Seller owns, and has owned since the formation of the General Partner, his
interest in the General Partner free and clear of any
Encumbrance.  After giving effect to the consummation of the
transactions contemplated by this Agreement and the Amended Organizational
Documents:

     

    (i)           the
Purchaser will own a 50.5% Partnership Percentage as a Limited Partner, the
Seller will own a 48.5% Partnership Percentage as a Limited Partner and the
General Partner will own a 1% Partnership Percentage as the General Partner,
free and clear of any Encumbrance (other than any Encumbrance created by or
through the Amended Partnership Agreement),

     

    
      
         

      

      
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    (ii)           the
Purchaser, the Seller and the General Partner will be the only Partners of
Advisors,

     

    (iii)           the
Purchaser will own a 51% Membership Percentage in the General Partner and the
Seller will own a 49% Membership Percentage in the General Partner, free and
clear of any Encumbrance (other than any Encumbrance created by or through the
Amended LLC Regulations) and

     

    (iv)           the
Purchaser and the Seller will be the only Members of the General
Partner.

     

    (b)           Except
as provided in this Agreement and the Amended Partnership Agreement, no Original
Partner, Affiliate of an Original Partner has, and Advisors has not, granted any
Person any right or has entered into any agreement or understanding (whether by
option, warrant, call, commitment, conversion, plan or otherwise), fixed or
contingent, with respect to the acquisition, purchase, sale, transfer,
assignment, creation, or issuance of any interest in Advisors.  Except
as provided in this Agreement and the Amended LLC Regulations, no Member or
Affiliate of a Member has, and the General Partner has not, granted any Person
any right or has entered into any agreement or understanding (whether by option,
warrant, call, commitment, conversion, plan or otherwise), fixed or contingent,
with respect to the acquisition, purchase, sale, transfer, assignment, creation,
or issuance of any interest in the General Partner.

     

    3.4.           Partnership
Property.  Advisors, the General Partner and each of the Funds
has good, valid, and marketable title to all the properties, interests in
properties and assets owned, licensed or leased by it, free and clear of any
Encumbrance other than (i) Encumbrances for current taxes not yet due and
payable or being contested in good faith by appropriate proceedings, and (ii)
imperfections of title, easements, pledges, charges, and Encumbrances that do
not materially interfere with its ability to use such property for the purposes
for which such property is intended to be used.

     

    3.5.           Partnership
Records.  The books and records of Advisors, the General
Partner and each Fund are complete and reflect all material actions and
transactions of each such entity.

     

    3.6.           Activities.  Neither
Advisors, the General Partner nor either Fund has engaged in any business or
activity of any kind, other than the business and activities permitted by the
Organizational Documents of Advisors, the General Partner or such Fund, as the
case may be.

     

    3.7.           Investments.

     

    (a)           The
Investment List is complete and reflects the Investments at the following fair
market values as of June 30, 2008 or such other date prior to June 30, 2008
referenced below:

     

    (i)           for
Investments in securities that are freely tradeable and were as of June 30, 2008
both listed on a national securities exchange, and traded on such date, at the
last sales price on such date;

     

    (ii)           for
Investments in securities that are freely tradeable and were as of June 30,
2008 listed on a national securities exchange, but which were not
traded on such date: and (x) held by the Funds, at the last bid
price prior to such date, and (y) held in the Managed Accounts, at the
mid-point between the last bid price and the last offer price prior to such
date;

     

    
      
         

      

      
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    (iii)           for
Investments in securities traded in the over-the-counter market,
and:  (x) held by the Funds, at the last bid price on or prior to such
date, and (y) held in the Managed Accounts, at the mid-point between the
last bid price and the last offer price on or prior to such date;
and

     

    (iv)           
for Side Pocket Investments, at the values listed on the Investment List, as
determined by Advisors in accordance with the Amended and Restated Limited
Partnership Agreements of the Funds, as amended to date.

     

    All of
the Investments are owned by the applicable Funds or through the Managed
Accounts, directly or indirectly, free and clear of any Encumbrances (other than
any restrictions on transfer that may exist under the Securities Act or any
state securities laws).

    

    (b)           Advisors’
ownership interests in each Investment have been duly authorized and validly
issued, and are fully paid, non-assessable (except to the extent of any margin
debt incurred in the ordinary course of business) and free of preemptive
rights.

     

    3.8.           Partnership SEC
Documents.  Each of Advisors, the General Partner and the Funds
has filed all forms, reports and documents with the United States Securities and
Exchange Commission (the “SEC”)
required to be filed by it prior to the date of this Agreement (together with
the amendments and supplements to such filings filed prior to the date of this
Agreement, the “Advisors
SEC
Documents”).  Each Advisors SEC Document, as of its filing date
(or if amended, as of the date of its last amendment) complied as to form in all
material respects with the applicable requirements of the Securities Act, the
Securities Exchange Act of 1934, as amended (the “Exchange
Act”), the Investment Company Act of 1940, as amended (the “Investment
Company Act”) and the Investment Advisers Act of 1940, as amended (the
“Advisers
Act”), as the case may be.

     

    3.9.           Financial Statements;
Liabilities.

     

    (a)           The
Seller has delivered to Purchaser complete copies of the (i) audited
consolidated statements of financial condition, statements of income, statement
of changes in partners’ capital and statement of cash flows of Advisors as of
and for the each years ended December 31, 2006 and 2007 and the (ii) audited
consolidated statement of financial condition, statements of operations,
statement of changes in partners’ capital and statement of cash flows of each of
the Funds as of and for the year ended December 31, 2007 (the audited
consolidated statements of financial condition, statements of income, changes in
partners’ capital and statements cash flows of Advisors and each of the Funds as
of and for the year ended December 31, 2007, the “2007 Advisors’
Financial Statements,” and all financial statements described above,
collectively, the “Advisors’
Financial Statements”).  The Advisors’ Financial Statements
fairly present the financial condition and results of operations of Advisors and
the Funds as of the dates and for the periods indicated therein in accordance
with GAAP.

     

    
      
         

      

      
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    (b)           Except
as (and to the extent) set forth in the 2007 Advisors’ Financial Statements, as
of December 31, 2007, neither Advisors nor either Fund had any liability or
obligation that would be required to be reflected on a balance sheet prepared in
accordance with GAAP.  Since December 31, 2007, neither Advisors nor
either Fund has become subject to any such liability or obligation that would be
required to be reflected on a balance sheet prepared in accordance with GAAP,
other than (x) liabilities or obligations incurred after December 31, 2007, in
the ordinary course of business consistent with past practices and (y) as
reflected in the Estimated June 30 Balance Sheet.

     

    (c) The Estimated June 30 Balance Sheet
represents the Seller’s reasonable best estimate of the expected assets and
liabilities of Advisors as of such date.

     

    3.10.                     Absence of Certain
Changes.  Since December 31, 2007, except as set forth on Schedule
3.10 and except as expressly contemplated by this Agreement (a) Advisors,
the General Partner and each of the Funds has conducted its businesses only in
the ordinary course of business and (b) there has not been any Material Adverse
Effect on Advisors, the General Partner or either Fund, as the case may
be.

     

    3.11.                     Litigation and Legal
Compliance.

     

    (a)           None
of Advisors, the General Partner or either Fund is a party to any claims,
actions, suits, proceedings or investigations which would reasonably be expected
to have a Material Adverse Effect on any of them.   There are no
claims, actions, suits, proceedings or investigations pending or, to the
knowledge of Advisors, the General Partner or either Fund, threatened, against
any of them or any of their properties that challenges the validity of this
Agreement or of the transactions contemplated hereby or which seeks to prevent
the consummation of such transactions.

     

    (b)           Advisors,
the General Partner and each of the Funds are in compliance with all federal,
state and local laws, statutes, rules, regulations, ordinances, permits, orders
or writs, including without limitation the Advisers Act and the Investment
Company Act and all rules promulgated thereunder, except where the failure to
comply would not have a Material Adverse Effect.

     

    (c)           All
disclosures required to be made to investors in either Fund have been
made.

     

    (d)           All
consents required to be obtained from investors in either Fund or in the Managed
Accounts for the execution, delivery, and performance of this Agreement and the
consummation of the transactions contemplated hereby have been
obtained.

     

    (e)           Each
of Advisors, the General Partner and the Funds has all permits, licenses,
approvals, authorizations of, and registrations with and under all laws, and
from all Governmental Entities required for Advisors, the General Partner and
the Funds to carry on their respective businesses as currently conducted, except
where the failure to have any such permit, license, approval, authorization or
registration would not have a Material Adverse Effect on Advisors, the General
Partner or either Fund, as the case may be.

     

    
      
         

      

      
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    3.12.                     Agreements.  Each
agreement, contract, lease, license, commitment, or instrument (including any
and all amendments thereto) (collectively, the “Contracts”)
to which Advisors, the General Partner or either Fund is a party, or by which
Advisors or either Fund or any of their respective properties or assets is bound
or subject, including, without limitation, all Organizational Documents of
Advisors, the General Partner and each Fund, is in full force and effect and
constitutes a legal, valid, and binding obligation of Advisors, the General
Partner or either Fund, as the case may be.  Neither Advisors, the
General Partner nor either Fund is in default or breach of (with or without the
giving of notice or the passage of time) any such Contract, except breaches or
defaults, if any, that would not have a Material Adverse Effect on Advisors, the
General Partner or either Fund, as the case may be.  To the knowledge
of the Seller, no other party is in material default or breach of any such
Contracts.

     

    3.13.                     Tax
Matters.

     

    (a)           
Advisors and the General Partner have each timely filed partnership tax returns
for all years since their respective years of formation, though neither is
considered a partnership for federal income tax purposes.  All Taxes
for which Advisors, the General Partner or either Fund may be held liable (other
than the Taxes referred to in the next sentence), have been paid or accrued
within the prescribed period or any extension thereof.  All Taxes
required to be withheld by Advisors, the General Partner or either Fund,
including, but not limited to, Taxes arising as a result of payments or
distributions (or amounts allocable) to foreign partners or foreign persons or
to employees of Advisors, the General Partner or either Fund, have been
collected and withheld, and have been either paid to the respective governmental
agencies, set aside in accounts for such purpose, or accrued, reserved against,
and entered upon the books and records of the employer.

     

    (b)           There
are no Tax liens upon any property of Advisors, the General Partner or either
Fund, except for (i) liens for current Taxes not yet due and payable, and (ii)
as would not, individually or in the aggregate, have a Material Adverse Effect
on Advisors, the General Partner or either Fund, as the case may
be.

     

    (c)           After
giving effect to the terms of this Agreement, each of Advisors and the General
Partner qualifies to be treated as a partnership for federal income tax
purposes.

     

    (d)           Neither
Advisors’ or the General Partner’s payroll, property, or receipts, or other
factors used in a particular state's apportionment or allocation formula results
in an apportionment or allocation of business income to any state other than
Texas, and neither Advisors nor the General Partner has non-business income that
is allocated, apportioned, or otherwise sourced to any state other than
Texas.

     

    3.14.                     No Violation;
Consents.  Neither the execution, delivery, and performance of
this Agreement nor the consummation by the Seller of the transactions
contemplated hereby (a) conflicts with or violates (i) any law, regulation,
order, writ, injunction, decree, determination, or award of any court, any
governmental department, board, agency or instrumentality, domestic or foreign,
or any arbitrator, applicable to the Seller, Advisors, the General Partner or
either of the Funds, except for any conflicts or violations that would not,
individually or in the aggregate, have a Material Adverse Effect on Advisors,
the General Partner or either Fund, as the case may be, (ii) the Organizational
Documents of Advisors, the General Partner or either of the Funds, or (iii) any
contract, agreement, instrument, mortgage, note, lease, or other arrangement
binding on or affecting the Seller, Advisors, the General Partner or any of the
Funds or any of their respective properties or assets, except for any conflicts
or violations that would not have a Material Adverse Effect on Advisors, the
General Partner or either Fund, as the case may be; (b) requires any consent,
authorization, or approval under any contract, agreement, instrument, mortgage,
note, lease, or other arrangement to which the Seller, Advisors, the General
Partner or any of the Funds or any of their respective properties is bound that
has not been obtained on or before the date hereof; or (c) results in the
creation or imposition of any Encumbrance upon any property or assets of the
Seller, Advisors, the General Partner or either of the Funds.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    3.15.                     Governmental
Authorizations.  The execution, delivery and performance by the
Seller of this Agreement and the consummation by the Seller of the transactions
contemplated hereby do not require any filing or registration with, notification
to, or authorization, consent or approval of, any Governmental Entity, except
for such filings, registrations, authorizations, consents or approvals (a) that
have completed, made, or obtained on or before the date of this Agreement, and
(b) the failure to so file, make, or obtain as would not have a Material Adverse
Effect on Advisors, the General Partner or either of the Funds.

     

    3.16.                     United States Securities Law
Compliance.

     

    (a)           The
Seller has neither directly nor indirectly offered the Purchased Interests for
sale, nor solicited any offer to buy the Purchased Interests, by means of any
general advertising or any other form of general solicitation. The Seller has
neither directly nor indirectly offered the Purchased Interests for sale, nor
solicited any offer to buy the Purchased Interests, in any other manner that
would require the sale of the Purchased Interests to be subject to the
registration requirements of the Securities Act of 1933, as amended (the “Securities
Act”).

     

    (b)           The
Seller did not acquire any portion of its interest in Advisors or the General
Partner including the Purchased Interests, with a view to, or for, the resale in
connection with any distribution thereof within the meaning of the Securities
Act which would not be exempt from the registration requirements of the
Securities Act.

     

    3.17.                     Acquisition of Parent Common
Stock.

     

    (a)           The
Parent Common Stock is being acquired by the Seller solely for the Seller’s own
account, for investment and not with a view to any distribution thereof that
would violate the Securities Act or any state securities laws; and the Seller
will not distribute Parent Common Stock in violation of the Securities Act or
any state securities laws.

     

    (b)           The
Seller is an “accredited investor” (as that term is defined in Rule 501(a) of
Regulation D).  The Seller is knowledgeable, sophisticated and
experienced in making, and is qualified to make, decisions with respect to
investments in equity securities presenting an investment decision like that
involved with respect to the Parent Common Stock.  The Seller is able
to bear the economic risk of an investment in the Parent Common
Stock.

     

    (c)           The
Seller understands that the Parent Common Stock is being offered and sold in
reliance on specific exemptions from the registration requirements of United
States federal securities laws and that the Purchaser and the Parent are relying
in part upon the truth and accuracy of, and the Seller’s compliance with, the
representations, warranties, agreements, acknowledgments and understandings of
the Seller set forth herein in order to determine the availability of such
exemptions and the eligibility of the Seller to acquire the Parent Common
Stock.

     

    
      
         

      

      
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    (d)           The
Seller understands that: (i) the Parent Common Stock has not been and is not
being registered under the Securities Act or any state securities laws, and may
not, directly or indirectly, be offered for sale, sold, assigned, transferred or
otherwise disposed unless (A) subsequently registered thereunder, (B) the Seller
shall have delivered to the Parent an opinion of counsel reasonably acceptable
to the Parent, in a form and substance reasonably acceptable to the Parent, to
the effect that such Parent Common Stock to be sold, assigned or transferred may
be sold, assigned or transferred pursuant to an exemption from such registration
under the Securities Act or any state securities laws, or (C) pursuant to Rule
144 promulgated under the Securities Act (collectively, “Rule
144”), (ii) any sale of the Parent Common Stock made in reliance on Rule
144 may be made only in accordance with the terms of Rule 144 and further, if
Rule 144 is not applicable, any resale of the Parent Common Stock under
circumstances in which the Seller (or the person through whom the sale is made)
may be deemed to be an underwriter (as that term is defined in the Securities
Act) may require compliance with some other exemption under the Securities Act,
and (iii) neither the Purchaser, the Parent nor any other person is under any
obligation to register the Parent Common Stock under the Securities Act or any
state securities laws or to comply with the terms and conditions of any
exemption thereunder.

     

    (e)           The
Seller understands that the stock certificate representing the Parent Common
Stock will contain a restrictive legend in substantially the following form (and
a stop-transfer order may be placed against transfer of such stock
certificates):

     

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE
ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL REASONABLY
ACCEPTABLE TO THE COMPANY, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE
144 UNDER SAID ACT.

     

    (f)           The
Seller has, in connection with its decision to receive Parent Common Stock and
enter into this Agreement and the other transactions contemplated hereby, relied
solely upon the representations and warranties of the Purchaser and the Parent
contained in this Agreement.  The Seller hereby acknowledges and
agrees that other than the representations and warranties contained in Section
4, neither the Purchaser, the Parent nor any of their respective officers,
directors, employees or representatives make or have made any representation or
warranty, express or implied, at law or in equity, with respect to the
Purchaser, the Parent or the Parent Common Stock.

     

    
      
         

      

      
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              SECTION
      4.

            	
              REPRESENTATIONS
      AND WARRANTIES OF THE PURCHASER AND THE
PARENT

            

    

     

    As an
inducement to the Seller to enter in this Agreement, each of the Purchaser and
the Parent, jointly and severally, represents, warrants and agrees to and with
the Seller that, as of the Closing Date (except to the extent any representation
or warranty is made as of another date, which is hereby made as of such other
date):

     

    4.1.           Organization. The
Purchaser is a limited liability company duly organized, validly existing and in
good standing under the laws of the State of Delaware.  The Parent is
a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware.  Each of the Purchaser and the Parent
has full corporate or limited liability company power and authority, as the case
may be, to carry on its business as it is now being or is currently proposed to
be conducted, to own, lease and operate all of its properties and assets, and is
duly licensed or qualified to do business in each jurisdiction in which the
nature of the business conducted by it or the character or location of the
properties and assets owned, leased or operated by it makes such qualification
or licensing necessary.

     

    4.2.           Authority; No Violation;
Consents.

     

    (a)           Each
of the Purchaser and the Parent has full corporate or limited liability company
power and authority, as the case may be, to execute and deliver this Agreement
and to consummate the transactions contemplated hereby.  The execution
and delivery of this Agreement and the consummation of the transactions
contemplated hereby have been duly and validly approved by all requisite
corporate or limited liability company action on the part of the Purchaser and
the Parent, as the case may be, and no other proceedings on the part of the
Purchaser or the Parent are necessary to approve this Agreement or to consummate
the transactions contemplated hereby.  This Agreement has been duly
executed and delivered by each of the Purchaser and the Parent, and the officer
or other representative who executed this Agreement on behalf of and the Parent
has been duly authorized to do so.  This Agreement has been duly
executed and delivered by each of the Purchaser and the Parent and (assuming due
execution, and delivery by the Seller) constitutes the legal, valid and binding
obligation of the Purchaser and the Parent, enforceable against the Purchaser
and the Parent in accordance with its terms.

     

    (b)           Neither
the execution, delivery, and performance of this Agreement nor the consummation
by the Purchaser or the Parent of the transactions contemplated hereby (i)
conflicts with or violates (A) any law, regulation, order, writ, injunction,
decree, determination, or award of any court, any governmental department,
board, agency or instrumentality, domestic or foreign, or any arbitrator,
applicable to the Purchaser or the Parent, except for any conflicts or
violations that would not, individually or in the aggregate, have a Material
Adverse Effect on the Purchaser or the Parent, (B) the Organizational Documents
of the Purchaser or the Parent, or (C) any contract, agreement, instrument,
mortgage, note, lease, or other arrangement binding on or affecting the
Purchaser or the Parent or any of their respective properties or assets, except
for any conflicts or violations that would not have a Material Adverse Effect on
the Purchaser or the Parent; (ii) requires any consent, authorization, or
approval under any contract, agreement, instrument, mortgage, note, lease, or
other arrangement to which the Purchaser or the Parent or any of their
respective properties is bound; or (iii) results in the creation or imposition
of any Encumbrance upon any property or assets of the Purchaser or the
Parent.

     

    
      
         

      

      
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    (c)           Assuming
that all necessary information has been accurately provided by the Seller with
respect to such determination, no material notice to, filing with, authorization
of, exemption by, or consent or approval of, any Governmental Entity which has
not been obtained or made is necessary for the consummation by the Purchaser or
the Parent of any of the transactions contemplated by this
Agreement.

     

    4.3.           No Actions, Suits or
Proceedings. Except as set forth in the Parent SEC Documents (as defined
below), neither the Parent nor the Purchaser is a party to any claims, actions,
suits, proceedings or investigations which would reasonably be expected to have
a Material Adverse Effect on the Parent or the Purchaser, as the case may
be.  There are no claims, actions, suits, proceedings or
investigations pending or, to the knowledge of the Parent and the Purchaser,
threatened against the Parent or the Purchaser or any of their respective
subsidiaries or properties that challenges the validity or legality of this
Agreement or of the transactions contemplated hereby or which seeks to prevent
the consummation of such transactions.

     

    4.4.           Parent Common Stock.
All of the Parent Common Stock to be issued hereunder, when issued and delivered
in accordance with this Agreement, will be duly authorized, validly issued,
fully paid and nonassessable and free of preemptive rights.  The
issuance of the Parent Common Stock has been duly authorized and approved by the
Parent’s board of directors, and does not require any further authorization or
consent of the Parent or its stockholders.

     

    4.5.           Parent SEC
Documents.

     

    (a)           The
Parent has filed all reports, proxy statements, forms and other documents,
required to be filed with the SEC pursuant to the Exchange Act since January 1,
2003 (the “Parent SEC
Documents”). As of their respective dates, and giving effect to any
amendments thereto, the Parent SEC Documents complied in all material respects
with the requirements of the Exchange Act.

     

    (b)           Each
of the consolidated financial statements (including, in each case, any notes
thereto) contained in the Parent SEC Documents was prepared in accordance with
GAAP (except as may be indicated in the notes thereto or, in the case of
unaudited financial statements, as permitted by Form 10-Q of the SEC) and each
fairly presents in all material respects the consolidated financial position,
results of operations and cash flows of the Parent and its consolidated
subsidiaries as at the respective dates thereof and for the respective periods
indicated therein, except as otherwise noted therein (subject, in the case of
unaudited financial statements, to normal and recurring year end adjustments
which, individually or in the aggregate, have not had, and could not reasonably
be expected to have, a Material Adverse Effect on such Parent financial
statements).

     

    (c)           Except
(i) as (and to the extent) set forth on the consolidated balance sheet of the
Parent as of December 31, 2007, or (ii) as would not have a Material Adverse
Effect on the Parent, neither the Parent nor any of its subsidiaries had as of
such date any liability or obligation (whether known or unknown, absolute or
contingent, liquidated or unliquidated) that would be required to be reflected
on a balance sheet prepared in accordance with GAAP, not (A) reflected in such
consolidated balance sheet or (B) incurred in the ordinary course of business.
Since December 31, 2007, neither the Parent nor any of its subsidiaries has
become subject to any such material liability or obligation that would be
required to be reflected on a balance sheet in accordance with GAAP, other than
(x) liabilities and obligations incurred in the ordinary course of business of a
type reflected on such consolidated balance sheet, and (y) executory obligations
under contracts which are not required to be accrued on such consolidated
balance sheet under GAAP and which have been incurred in the ordinary course of
business.

     

    
      
         

      

      
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    4.6.           Absence of Certain
Changes.  Since December 31, 2007, and except as expressly
contemplated by this Agreement (a) the Parent has conducted its businesses only
in the ordinary course of business and (b) there has not been any Material
Adverse Effect on the Parent or the Purchaser.

     

    4.7.           Compliance With Applicable
Law.

     

    (a)           Except
as set forth in the Parent SEC Documents, the operations of the Parent and the
Purchaser have been conducted in compliance in all material respects with all
federal, state and local laws, statutes, rules, regulations, ordinances,
permits, orders or writs applicable to the Parent or the Purchaser as the case
may be, and all regulations and other requirements of all Governmental Entities
having or claiming jurisdiction over the Parent or the Purchaser or any of their
respective businesses or operations. Except as set forth in the Parent SEC
Documents, since January 1, 2007, the Parent has not received any notification
of any asserted present or past failure by the Parent to comply with any
federal, state and local laws, statutes, rules, regulations, ordinances,
permits, orders or writs applicable to the Parent in any material
respect.

     

    (b)           Except
(i) for normal examinations conducted by any Governmental Entity in the ordinary
course of business of the Parent, (ii) as disclosed in the Parent SEC Documents
or (iii) as would not have a Material Adverse Effect on the Parent or the
Purchaser, no Governmental Entity has at any time during the past year initiated
or, to the Parent’s knowledge, threatened any formal or informal proceeding or
investigation into the business or operations of the Parent or its subsidiaries
or any of its or their officers, directors, employees, shareholders or partners
in their capacity as such.

     

    (c)           Except
as set forth in the Parent SEC Documents, since January 1, 2007 (or such later
date, if the Parent only became subject to the applicable provisions, rules and
regulations subsequent to January 1, 2007), the principal executive officer and
the principal financial officer of the Parent have complied in all material
respects with (i) the applicable provisions of the Sarbanes-Oxley Act of 2002
and the related rules and regulations promulgated under such Act and under the
Exchange Act and (ii) the applicable listing and corporate governance rules and
regulations of The Nasdaq Stock Market.

     

    4.8.           Investment
Purpose.  The Purchased Interests acquired by the Purchaser
hereunder will be acquired for investment for the Purchaser’s own account, not
as a nominee or agent, and not with a view to the public resale or distribution
thereof within the meaning of the Securities Act, and the Purchaser has no
present intention of selling, granting any participation in, or otherwise
distributing the same.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    4.9.           Disclosure of
Information.  Without in any way limiting the Purchaser’s or
the Parent’s rights and remedies under the Agreement, each of the Purchaser and
the Parent acknowledges that it has received or has had full access to all the
information it considers necessary or appropriate to make an informed investment
decision with respect to the Purchased Interests.

     

    4.10.                     No Other
Representations.  The Purchaser has, in connection with its
decision to purchase the Purchased Interests and enter into this Agreement and
the other transactions contemplated hereby, relied solely upon the
representations and warranties of the Seller contained in this
Agreement.  The Purchaser hereby acknowledges and agrees that other
than the representations and warranties contained in Section 3, neither the
Seller, Partnership, either of the Funds or any of their respective officers,
directors, employees or are making or have made any representation or warranty,
express or implied, at law or in equity, with respect to the Seller, Advisors,
either of the Funds or the Purchased Interests.

     

    
      	
              SECTION
      5.

            	
              POST-CLOSING
      COVENANTS

            

    

     

    5.1           Current Public
Information.  In order to make and keep available to the Seller
the benefits of the resale of the Parent Common Stock to the public without
registration, as long as the Seller owns any shares of Parent Common Stock, the
Purchaser and the Parent shall use their best efforts to:

     

    (a)           make
and keep available adequate current public information (as such term is defined
in Rule 144) regarding the Parent;

     

    (b)           
file with the SEC in a timely manner all reports and other documents required of
the Parent under the Securities Act and the Exchange Act; and

     

    (c)           furnish
to the Seller upon written request a written statement by the Parent as to its
compliance with the reporting requirements of the Securities Act and the
Exchange Act.

     

    5.2.           Tax
Payment.  If Seller determines, in good faith based on the
advice of his tax advisor(s), that he recognizes for federal income tax purposes
any amount of ordinary income on the transactions contemplated by this
Agreement, then Purchaser shall pay to Seller 20% of any such ordinary income
that is recognized or will be recognized by Seller, up to a maximum amount of
$210,048.20 ($1,050,241 x .20) (the “Purchaser’s Tax
Payment”).  In such event, Seller shall provide written notice
to Purchaser stating the amount of such ordinary income and the amount of the
Purchaser’s Tax Payment.  Within five days of Seller’s written notice,
Purchaser shall pay to Seller Purchaser’s Tax Payment in full, in immediately
available funds to an account designated in writing by Seller.

     

    
      	
              SECTION
      6.

            	
              CERTAIN
      TAX MATTERS:

            

    

     

    6.1.           Tax
Allocation.  The Purchaser and the Seller agree that the
purchase of the transactions contemplated hereunder will constitute an
“applicable asset acquisition” governed by Section 1060 of the
Code.  The parties further agree that the Total Consideration shall be
allocated among the purchased assets based on the parties’ good faith and
reasonable determination thereof, in accordance with Section 1060 of the Code
and the regulations promulgated thereunder, and which allocation the
parties shall agree upon no later than 60 days after the Closing
Date.  The Purchaser and the Seller agree to complete IRS Form 8594
consistently with such allocation and, if requested by the other, to furnish the
other with a copy of such Form prepared in draft form no less than 45 days prior
to the filing due date of such Form.  No party shall file any return
or take a position with any taxing authority or in connection with any tax
related litigation that is inconsistent with this Section 6.1, unless required
to do so pursuant to a determination within the meaning of Section 1313(a) of
the Code.

     

    
      
         

      

      
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    6.2.           Protective Code Section 754
Election.   The Seller, as the sole manager of the General
Partner, agrees, if requested by Purchaser, after the Closing to cause Advisors
and the General Partner to make a protective election pursuant to Section 754 of
the Code with respect to the current taxable year (i.e., the taxable
year in which the transactions contemplated by this Agreement
occur).

     

    
      	
              SECTION
      7.

            	
              INDEMNITY.

            

    

     

    (a)           Subject
to the other terms of this Section 7, the Seller shall indemnify, defend and
hold harmless the Purchaser, the Parent and their respective shareholders,
directors, officers, employees, agents, affiliates and controlling parties
(each, a “Purchaser
Indemnified Party”) from and against any and all liability, loss or
damage, together with all reasonable costs and expenses related thereto
(including legal and accounting fees and expenses) (collectively, “Losses”),
arising from the untruth, inaccuracy or breach of any such representations,
warranties, covenants or agreements of the Seller contained in this Agreement or
the assertion of any claim relating to the foregoing (each a “Purchaser
Claim”); provided,
however, that no indemnification shall be required hereunder for the
gross negligence or willful misconduct of any Purchaser Indemnified
Party.  In case any Purchaser Claim is brought against a Purchaser
Indemnified Party, the Seller will be entitled to participate in and assume the
defense thereof with counsel reasonably satisfactory to such Purchaser
Indemnified Party, and after notice from the Seller to such Purchaser
Indemnified Party of its election to assume the defense thereof, the Seller
shall be responsible for any legal or other expenses subsequently incurred by
the latter in connection with the defense thereof, provided that if any
Purchaser Indemnified Party shall have reasonably concluded that there may be
one or more legal defenses available to such Purchaser Indemnified Party that
conflict in any material respect with those available to the Seller, or that
such Purchaser Claim involves or could have an effect upon matters beyond the
scope of the indemnity agreement provided in this Section 7(a), the Seller shall
not have the right to assume the defense of such action on behalf of such
Purchaser Indemnified Party and the Seller shall reimburse such Purchaser
Indemnified Party and any person or entity controlling such Purchaser
Indemnified Party for that portion of the reasonable fees and expenses of any
counsel retained by the Purchaser Indemnified Party that are reasonably related
to the matters covered by the indemnity agreement provided in this Section
7(a).  The Seller shall not make any settlement of any claim
indemnified against under this Section 7(a) without the written consent of the
Purchaser Indemnified Party or Parties, which consent shall not be unreasonably
withheld.

     

    (b)           The
Purchaser and the Parent shall, jointly and severally, indemnify, defend and
hold harmless the Seller and its shareholders, directors, officers, employees,
agents, affiliates and controlling parties (each, a “Seller
Indemnified Party”) from and against any and all Losses arising from the
untruth, inaccuracy or breach of any such representations, warranties, covenants
or agreements of the Purchaser or the Parent contained in this Agreement or the
assertion of any claim relating to the foregoing (each a “Seller
Claim”); provided,
however, that no indemnification shall be required hereunder for the
gross negligence or willful misconduct of any Seller Indemnified Party. In case
any Seller Claim is brought against a Seller Indemnified Party, the Purchaser
and the Parent will be entitled to participate in and assume the defense thereof
with counsel reasonably satisfactory to such Seller Indemnified Party, and after
notice from the Purchaser and the Parent to such Seller Indemnified Party of its
election to assume the defense thereof, the Purchaser and the Parent shall be
responsible for any legal or other expenses subsequently incurred by the latter
in connection with the defense thereof, provided that if any Seller Indemnified
Party shall have reasonably concluded that there may be one or more legal
defenses available to such Seller Indemnified Party that conflict in any
material respect with those available to the Purchaser or the Parent, or that
such Seller Claim involves or could have an effect upon matters beyond the scope
of the indemnity agreement provided in this Section 7(b), neither the Purchaser
nor the Parent shall have the right to assume the defense of such action on
behalf of such Seller Indemnified Party and the Purchaser and the Parent shall
reimburse such Seller Indemnified Party and any person or entity controlling
such Seller Indemnified Party for that portion of the reasonable fees and
expenses of any counsel retained by the Seller Indemnified Party that are
reasonably related to the matters covered by the indemnity agreement provided in
this Section 7(b). Neither the Purchaser nor the Parent shall make any
settlement of any claim indemnified against under this Section 7(b) without the
written consent of the Seller Indemnified Party or Parties, which consent shall
not be unreasonably withheld.

     

    
      
         

      

      
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    (c)           Notwithstanding
anything to the contrary in this Agreement, in no event shall there be any
liability under Section 7(a) or Section 7(b) until the aggregate amount of all
Losses suffered by the Purchaser Indemnified Party or Parties, or the Seller
Indemnified Party or Parties, respectively, arising from matters covered by the
indemnity contained in Section 7(a) or 7(b), respectively, exceeds $20,000 (the
“Basket
Amount”).   

     

    (d)           In
no event shall any Purchaser Indemnified Party or Parties be entitled to assert
a Purchaser Claim under Section 7(a), or shall a Seller Party or Parties be
entitled to assert a Seller Claim under Section 7(b), unless such claim is
submitted in compliance with the other procedures of this Section 7 on or before
(and both Seller’s and Purchaser’s representations and warranties shall survive
only until) the 12-month anniversary date of the Closing Date, except that the
representations and warranties contained in Sections 3.1, 3.3, 3.4, 3.13 and
3.14 shall survive until 60 days after the termination of the applicable statute
of limitation covering such matters, if any.  Neither Seller’s
aggregate liability under Section 7(a) (other than with respect to a Purchaser
Claim arising out of a breach of the representations and warranties contained in
Section 3.13) nor Purchaser’s aggregate liability under Section 7(b) shall
exceed an amount equal to 10% of the Total Consideration.  In
determining the amount of any Losses for which a Purchaser Indemnified Party or
Parties are entitled to indemnification under Section 7(a), or for which a
Seller Indemnified Party or Parties are entitled to indemnification under
Section 7(b), the gross amount thereof will be reduced by any insurance proceeds
actually received by such Purchaser Indemnified Party or Parties or Seller
Indemnified Party or Parties, as the case may be, with respect to such Losses
(net of any related deductibles and self-insurance amounts).  The
gross amount of any Losses for which any Purchaser Indemnified Party or Parties
are entitled to indemnification under Section 7(a) shall be reduced by an amount
equal to any portion of the Purchaser’s Tax Payment that remains unpaid at the
time Seller indemnifies such Purchaser Indemnified Party or Parties for such
Losses.

     

    
      
         

      

      
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              SECTION
      8.

            	
              MISCELLANEOUS.

            

    

     

    8.1.           Survival.  The
representations and warranties contained in this Agreement shall survive this
Agreement for the period provided in Section 7(d) above; provided, however, that
the Purchaser and the Parent’s obligations in Section 5.1 shall survive this
Agreement until the first date that the Seller no longer owns any shares of
Parent Common Stock.

     

    8.2.           Successors and
Assigns.  Neither this Agreement nor any of the rights,
interests or obligations provided by this Agreement may be assigned by any of
the parties (whether by operation of law or otherwise) without the prior written
consent of the other parties except that the Purchaser shall be entitled to
assign its rights and obligations hereunder to any person or entity controlling,
controlled by or under common control with the Purchaser without the consent of
any other party hereto.  Subject to the preceding sentence, this
Agreement will be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns.

     

    8.3.           Amendment.  No
amendment, modification, or waiver of any provision of this Agreement, or
consent to any departure from the terms of this Agreement by any party hereto
shall be effective unless the same shall be in writing and signed by all the
parties hereto, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

     

    8.4.           Severability.  Whenever
possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be prohibited by or invalid under applicable law, such
provision will be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of this Agreement.

     

    8.5.           Counterparts.  This
Agreement may be executed in two or more counterparts, each of which will be
deemed an original, but all such counterparts taken together will constitute one
and the same Agreement, and a photostatic or facsimile copy of an executed
counterpart hereof shall be given the same effect as the original.

     

    8.6.           Descriptive
Headings.  The descriptive headings of this Agreement are
inserted for convenience only and will not constitute a part of this
Agreement.

     

    8.7.           Notices.  Any
notice, request, instruction or other document to be given hereunder will be in
writing and delivered personally or sent by registered or certified mail
(postage prepaid) or by facsimile, according to the instructions set forth
below.  Such notices will be deemed given: at the time delivered by
hand, if personally delivered; three business days after being sent by
registered or certified mail; and at the time when receipt is confirmed by the
receiving facsimile machine if sent by facsimile:

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    
      
        	 	
                if
      to the Purchaser

              	 
      
	 	
                or
      the Parent, to:

              	 
      
	 	 
      	
                c/o
      Western Sizzlin Corporation

                416
      South Jefferson Street

                Suite
      600

                Roanoke,
      Virginia 24011

                Attention:
      Robyn B. Mabe

                Facsimile:
      (540) 345-0831

              
	 	
                with
      copies to:

              	 
      
	 	 
      	
                Olshan
      Grundman Frome Rosenzweig& Wolosky LLP

                Park
      Avenue Tower

                65
      East 55th Street

                New
      York, New York 10022

                Attention:  Steven
      Wolosky

                Facsimile:  (212)
      451-2222

              
	 	
                if
      to the Seller, to:

              	 
      
	 	 
      	
                c/o
      Mustang Capital Management, LLC

                1506
      McDuffie Street

                Houston,
      Texas 77019

                Attention:
      John K. H. Linnartz

                Facsimile:
      (713) 630-0315

              
	 	
                with
      copies to:

              	 
      
	 	 
      	 
      
	 	 
      	
                Jackson
      Walker L.L.P.

                1401
      McKinney

                Suite
      1900

                Houston,
      Texas 77010

                Attention:  Douglas
      A. Paisley

                Facsimile:  (713)
      308-4144

              

      

       

    

    or to
such other address or to the attention of such other party that the recipient
party has specified by prior written notice to the sending party in accordance
with the preceding.

     

    8.8.           Entire
Agreement.  This Agreement, and the other documents referred to
herein collectively constitute the entire agreement among the parties and
supersede any prior and contemporaneous understandings, agreements or
representations by or among the parties, written or oral that may have related
in any way to the subject matter hereof.

     

    8.9.           Consent to
Jurisdiction.  Each of the parties to this Agreement consents
to submit to the personal jurisdiction of any state or federal court sitting in
the State of Texas, in any action or proceeding arising out of or relating to
this Agreement, agrees that all claims in respect of the action or proceeding
may be heard and determined in any such court, and agrees not to bring any
action or proceeding arising out of or relating to this agreement in any other
court.  Each of the parties to this Agreement agrees not to assert in
any action or proceeding arising out of relating to this agreement that the
venue is improper, and waives any defense of inconvenient forum to the
maintenance of any action or proceeding so brought and waives any bond, surety
or other security that might be required of any other party with respect
thereto.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    8.10.                     Waiver of Jury
Trial.  To the fullest extent permitted by law, each of the
parties hereto hereby waives its respective right to, and agrees not to elect, a
trial by jury with respect to any issue arising out of this
Agreement.

     

    8.11.                     Governing
Law.  This Agreement will be governed by and construed in
accordance with the laws of the State of Delaware, without giving effect to any
law or rule that would cause the laws of any jurisdiction other than the State
of Delaware to be applied.

     

    8.12.                     Publicity.  The
parties hereto may publicize this transaction promptly after the Closing by
publishing a press release mutually acceptable to the parties.  The
Parent shall have the right to make such disclosures concerning this Agreement
as it determines in its sole discretion to be appropriate or necessary to comply
with applicable law.

     

    

    

    

    [The
remainder of this page is intentionally left blank.]

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

       

    

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

     

    

     

    
      	 
      	
              
                /s/
      John K. H. Linnartz

              

            
	 
      	
              JOHN
      K. H. LINNARTZ

            
	 
      	 
      
	 
      	 
      
	 
      	
              WESTERN
      MUSTANG HOLDINGS LLC

            
	 
      	 
      
	 
      	
              By:

            	
              
                /s/
      Sardar Biglari

              

            
	 
      	 
      	
              Name:

            	
              Sardar
      Biglari

            
	 
      	 
      	
              Title:

            	
              Chief
      Executive Officer

            
	 
      	 
      
	 
      	
              WESTERN
      SIZZLIN CORPORATION

            
	 
      	 
      
	 
      	
              By:

            	
              
                /s/
      Sardar Biglari

              

            
	 
      	 
      	
              Name:

            	
              Sardar
      Biglari

            
	 
      	 
      	
              Title:

            	
              Chief
      Executive Officer

            

    

    
 

    
      
         

      

      
        22

        
          

        

      

      
         

      

       

    

    SCHEDULE
3.1(c)

    VIOLATIONS
OF ORGANIZATIONAL DOCUMENTS

     

    

     

    Articles
IV and V of the Original Partnership Agreement contain federal income tax
allocation and capital account provisions.  Advisors has complied with
such provisions and filed a Form 1065 for each calendar year or portion of a
fiscal year of its existence.  However, as the Seller is the owner of
the sole limited partnership interest of Advisors and the sole member of the
General Partner, he is the sole partner of Advisors.  Thus Advisors is
a disregarded entity for federal income tax purposes, and for such purposes is
instead considered a sole proprietorship of the Seller, rather than a
partnership.  The Seller may therefore after the Closing Date file
amended tax returns, which would cause him not to have complied for the
pre-Closing periods involved with the federal income tax and capital account
provisions of the Original Partnership Agreement.

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    SCHEDULE
3.10

    CERTAIN
CHANGES

     

    
      	
               
      

            	
              1.

            	
              On
      June 13, 2008, Mustang Capital Partners I, LP and Mustang Capital Partners
      II, LP made distributions to Advisors in the amount of $200,000 and
      $50,000, respectively, and then Advisors made a distribution to Seller in
      the amount of $250,000.

            

    

     

    
      	
               
      

            	
              2.

            	
              On
      July 3, 2008, Mustang Capital Partners I, LP and Mustang Capital Partners
      II, LP made distributions to Advisors in the amount of $286,785 and
      $61,960, respectively, and then Advisors made a distribution to Seller in
      the amount of $348,745.

            

    

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    EXHIBIT
A

     

    FORM
OF AMENDED AND RESTATED

    LIMITED
PARTNERSHIP AGREEMENT

     

    (attached)

     

    
      
         

      

      
        A-i

        
          

        

      

      
         

      

       

    

    EXHIBIT
B

     

    FORM
OF AMENDED AND RESTATED

    LIMITED
LIABILITY COMPANY REGULATIONS

     

    (attached)

     

    

    
      
         

      

      
        B-iex102to8k06898_07092008.htm

    
      

       

      Exhibit
10.2

    

    

     

    

     

    
      
        

      

     

    

     

    

     

    MUSTANG
CAPITAL ADVISORS, LP

     

    

     

    A
Texas Limited Partnership

     

    

     

    

     

    

     

    

     

    Amended
and Restated

     

    Limited
Partnership Agreement

     

    

     

    

     

    

     

    

     

    

     

    July 9,
2008

     

     

     

    

     

    
      
        

      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    NOTICE

     

    

     

    NEITHER
MUSTANG CAPITAL ADVISORS, LP NOR THE LIMITED PARTNERSHIP INTERESTS THEREIN HAVE
BEEN OR WILL BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, THE
INVESTMENT COMPANY ACT OF 1940, AS AMENDED, OR THE SECURITIES LAWS OF ANY OF THE
STATES OF THE UNITED STATES. THE OFFERING OF SUCH LIMITED PARTNERSHIP INTERESTS
IS BEING MADE IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT OF 1933, AS AMENDED, FOR OFFERS AND SALES OF SECURITIES
WHICH DO NOT INVOLVE ANY PUBLIC OFFERING, AND ANALOGOUS EXEMPTIONS UNDER STATE
SECURITIES LAWS.

     

    THE
DELIVERY OF THIS LIMITED PARTNERSHIP AGREEMENT SHALL NOT CONSTITUTE AN OFFER TO
SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY OFFER,
SOLICITATION OR SALE OF INTERESTS IN MUSTANG CAPITAL ADVISORS, LP IN ANY
JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE IS NOT AUTHORIZED OR TO
ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER, SOLICITATION OR
SALE.

     

    THESE
SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO REGISTRATION OR
EXEMPTION THEREFROM AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN
ACCORDANCE WITH THE REQUIREMENTS AND CONDITIONS SET FORTH IN THIS LIMITED
PARTNERSHIP AGREEMENT.

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    TABLE OF CONTENTS

     

    
      
        	
                NOTICE

              	
                i

              
	
                Article I Definitions

              	
                2

              
	
                Article II General Provisions

              	
                8

              
	 
      	
                2.1

              	
                Formation

              	
                8

              
	 
      	
                2.2

              	
                Partnership Name.

              	
                8

              
	 
      	
                2.3

              	
                Fiscal Year.

              	
                8

              
	 
      	
                2.4

              	
                Registered Office/Agent.

              	
                9

              
	 
      	
                2.5

              	
                Partners.

              	
                9

              
	 
      	
                2.6

              	
                Purpose of Partnership.

              	
                9

              
	 
      	
                2.7

              	
                Assignability of Interest.

              	
                9

              
	
                Article III Management Of Partnership

              	
                9

              
	 
      	
                3.1

              	
                Management Generally.

              	
                9

              
	 
      	
                3.2

              	
                Authority of General Partner.

              	
                9

              
	 
      	
                3.3

              	
                Restrictions on Authority of General
    Partner.

              	
                10

              
	 
      	
                3.4

              	
                Reliance by Third Parties.

              	
                10

              
	 
      	
                3.5

              	
                Activity of General Partner.

              	
                10

              
	 
      	
                3.6

              	
                Exculpation and Indemnification of the General
      Partner.

              	
                11

              
	
                Article IV Allocations; Distributions

              	
                12

              
	 
      	
                4.1

              	
                Allocations of Taxable Items of Income or
      Loss.

              	
                13

              
	 
      	
                4.2

              	
                Special Allocations.

              	
                13

              
	 
      	
                4.3

              	
                Curative Allocations.

              	
                15

              
	 
      	
                4.4

              	
                Section 704(c) Allocation.

              	
                15

              
	 
      	
                4.5

              	
                Other Allocation Rules.

              	
                15

              
	 
      	
                4.6

              	
                Distributions.

              	
                16

              
	 
      	
                4.7

              	
                Preferential Distributions

              	
                16

              
	 
      	
                4.8

              	
                Tax Distributions.

              	
                16

              
	
                Article V Capital Accounts Of Partners

              	
                16

              
	 
      	
                5.1

              	
                Capital Contributions.

              	
                16

              
	 
      	
                5.2

              	
                Capital Accounts; Additional Capital
      Contributions.

              	
                17

              
	 
      	
                5.3

              	
                Maintenance of Capital Accounts.

              	
                17

              
	 
      	
                5.4

              	
                Determination by General Partner of Certain
      Matters.

              	
                18

              
	
                Article VI Withdrawal Of Capital

              	
                
                  18

                

              
	 
      	
                6.1

              	
                Withdrawals in General.

              	
                18

              
	 
      	
                6.2

              	
                Limitations on Withdrawal.

              	
                18

              
	
                Article VII Admission Of New Partners

              	
                18

              
	 
      	
                7.1

              	
                Limited Partners.

              	
                18

              
	 
      	
                7.2

              	
                General Partner.

              	
                19

              
	
                Article VIII Withdrawal, Death Or Insanity Of
      Partners

              	
                19

              
	 
      	
                8.1

              	
                Withdrawal of General Partner.

              	
                19

              
	 
      	
                8.2

              	
                Withdrawal, Death, etc., of Limited
    Partner.

              	
                19

              

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          Table of Contents

        

      

       

      
        	 
      	
                8.3

              	
                Payment of Liquidating Share.

              	
                19

              
	 
      	
                8.4

              	
                Limitations on Withdrawal of Liquidating
      Share.

              	
                20

              
	 
      	
                8.5

              	
                Holdings’ Purchase Obligations.

              	
                20

              
	
                Article IX Duration And Termination Of
      Partnership

              	
                21

              
	 
      	
                9.1

              	
                Duration.

              	
                21

              
	 
      	
                9.2

              	
                Termination.

              	
                21

              
	 
      	
                9.3

              	
                Method of Distributions.

              	
                22

              
	 
      	
                9.4

              	
                No Restoration of Deficit Capital Account.

              	
                22

              
	
                Article X Reports To Partners

              	
                22

              
	 
      	
                10.1

              	
                Books of Account.

              	
                22

              
	 
      	
                10.2

              	
                Interim Reports.

              	
                22

              
	
                Article XI Non-Competition

              	
                22

              
	 
      	
                11.1

              	
                Non-Competition.

              	
                22

              
	 
      	
                11.2

              	
                Restrictions Reasonable.

              	
                23

              
	 
      	
                11.3

              	
                Equitable Relief.

              	
                23

              
	
                Article XII Miscellaneous

              	
                23

              
	 
      	
                12.1

              	
                Expenses.

              	
                23

              
	 
      	
                12.2

              	
                General.

              	
                24

              
	 
      	
                12.3

              	
                Amendments to Partnership Agreement.

              	
                24

              
	 
      	
                12.4

              	
                Notices.

              	
                24

              
	 
      	
                12.5

              	
                Counsel.

              	
                24

              
	 
      	
                12.6

              	
                Use of Name.

              	
                24

              
	 
      	
                12.7

              	
                Headings.

              	
                25

              

      

       

      
        
          
          

        

        
          iii

          
            

          

        

        
          Table of Contents

        

      

       

    

    AMENDED
AND RESTATED

     

    LIMITED
PARTNERSHIP AGREEMENT

     

    OF

     

    MUSTANG
CAPITAL ADVISORS, LP

     

    This
AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT of Mustang Capital Advisors,
LP, a Texas limited partnership (the “Partnership”),
is made as of July 9, 2008 (the “Effective
Date”), by and among Mustang Capital Management, LLC, a Texas limited
liability company (“MCM”), as
the general partner of the Partnership, John K. H. Linnartz (“Linnartz”)
and Western Mustang Holdings LLC, a Delaware limited liability company (“Holdings”).

     

    R E C I T A L S

     

    WHEREAS, the Partnership was
formed on November 7, 2002 pursuant to the Texas Revised Limited Partnership Act
(the “Act”) and
MCM and Linnartz (the “Original
Partners”) entered into a Limited Partnership Agreement dated November 7,
2002 (the “Original
Agreement”);

     

    WHEREAS, Linnartz is currently
the sole member of MCM and the sole Limited Partner (as defined below) of the
Partnership, holding a 99% Partnership Percentage (as defined below), while MCM
is the General Partner (as defined below) of the Partnership holding a 1%
Partnership Percentage;

     

    WHEREAS, because Linnartz is
the sole member of MCM and the sole Limited Partner of the Partnership, while a
partnership for state law purposes, the Partnership is a disregarded entity for
federal income tax purposes, and accordingly certain provisions of the Original
Agreement, including Articles IV, V and VI thereof, have therefore not applied
to the Partnership;

     

    WHEREAS, on the Effective
Date, Linnartz, Holdings and Western Sizzlin Corporation, a Delaware corporation
(“Western”),
are entering into a Purchase Agreement (the “Purchase
Agreement”), pursuant to which Linnartz will sell to Holdings a 50.5%
Partnership Percentage and a 51% membership interest in MCM;

     

    WHEREAS, such sale and
assignment shall be in accordance with “Situation 1” of Rev. Rul.
99-5;

     

    WHEREAS, upon such sale and
assignment, Holdings will become, for federal income tax purposes, the only
other partner of the Partnership, and the Partnership will thus thereafter be
considered a partnership for federal income tax purposes;

     

    WHEREAS, on the Effective
Date, Linnartz and Holdings are entering into Amended and Restated Limited
Liability Company Regulations of MCM to admit Holdings as a member of MCM and to
set forth the rights and obligations of the members of MCM;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        Table of Contents

      

    

     

    WHEREAS, the Original Partners
now wish to amend and restate the Original Agreement to admit Holdings as a
Limited Partner (as defined below) and to set forth the rights and obligations
of the Partners (as defined below) to be effective as of the Effective Date;
and

     

    WHEREAS, the Partners do
hereby adopt this Agreement as the limited partnership agreement of the
Partnership to replace the Original Agreement.

     

    NOW, THEREFORE, in
consideration of the covenants and the promises made herein, the parties hereto
hereby agree as follows.

     

    _____________

     

    Article I

    Definitions

     

    _____________

     

    For
purposes of this Agreement:

     

    “Adjusted Capital
Account Balance” shall mean with respect to any Partner, the balance in
such Partner’s Capital Account as of the end of the relevant Fiscal Year, after
giving effect to the following adjustments:

     

    (a)           credit
to such Capital Account any amounts which such Partner is obligated to restore,
because of a promissory note to the Partnership or otherwise pursuant to Section
1.704-1(b)(2)(ii)(c) of the Regulations, or is deemed to be obligated to restore
pursuant to the penultimate sentence in each of Sections 1.704-2(g)(1) and
1.704-2(i)(5) of the Regulations; and

     

    (b)           debit
to such Capital Account the items described in 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) of the
Regulations.

     

    This
definition of Adjusted Capital Account Balance is intended to comply with the
“alternative economic effect” test of Section 1.704-1(b)(2)(ii)(d) of the
Regulations and shall be interpreted consistently therewith.

     

    “Affiliate”
means with respect to any Person, any other Person that, directly or indirectly,
through one or more intermediaries, controls, is controlled by, or is under
common control with such Person.

     

    “Applicable
Amount” means a dollar amount equal to (i) the aggregate amount of assets
under management by the Partnership at the date of the Put Event causing the
determination (such value being determined in accordance with past practices of
the Partnership at the Effective Date and consistently applied), multiplied by
(ii) $2,038,703.00 as a percentage of the aggregate amount of assets under
management by the Partnership at the Effective Date, with such result multiplied
by Linnartz’s Partnership Percentage at the date of the Put Event.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        Table of Contents

      

    

     

    “Available
Cash” means, at any given date, cash on hand of the Partnership after
provision for payment of all outstanding and unpaid current obligations of the
Partnership as of such time and the creation of any reserves reasonably deemed
necessary by the General Partner; other than cash in an amount equal to the cash
that Linnartz is entitled to have distributed to him pursuant to Section
4.7.

     

    “Capital
Account” means the capital account established for each Partner pursuant
to Section 5.1 of this Agreement.

     

    “Capital
Contribution” means with respect to any Partner, the amount of money and
the Gross Asset Value of any property (other than money) contributed to the
Partnership by such Partner, net of liabilities encumbering such contributed
property that the Partnership is considered to assume or take subject to under
Section 752 of the Code.

     

    “Code”
means the Internal Revenue Code of 1986, as amended.

     

    “Contributed
Securities” means the indirect interest of the Partnership in those
securities owned by the Funds as of the Effective Date that are listed on Schedule
B, in the quantities set forth on such Schedule
B under the column heading “J.L. Allocated Shares”.  For
purposes of this Agreement, the Contributed Securities shall be treated as if
the Partnership directly owned the Contributed Securities in the quantities set
forth on Schedule
B, and such amounts shall be adjusted for stock splits, reverse stock
splits, stock dividends and other events causing a change in such
amounts.

     

    “Depreciation”
means each Fiscal Year or other period, an amount equal to the depreciation,
amortization, or other cost recovery deduction allowable with respect to an
asset for such year or other period, except that if the Gross Asset Value of an
asset differs from its adjusted basis for federal income tax purposes at the
beginning of such year or other period, except as required by
Section 1.704-3(d) of the Regulations, Depreciation shall be an amount
which bears the same ratio to such beginning Gross Asset Value as the federal
income tax depreciation, amortization, or other cost recovery deduction for such
year or other period bears to such beginning adjusted tax basis; provided, however, that if the
federal income tax depreciation, amortization, or other cost recovery deduction
for such year is zero, Depreciation shall be determined with reference to such
beginning Gross Asset Value using any reasonable method selected by the General
Partner.

     

    “Disability”
means the failure of Linnartz, by reason of accident, illness, incapacity or
other disability, to perform his duties or fulfill his obligations as the sole
manager of the General Partner, with or without reasonable accommodation, for a
cumulative total of 60 days, whether or not consecutive, within any 12-month
period.

     

    “Expenses”
means all reasonable attorneys’ fees, retainers, court costs, transcript costs,
fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees and all other
disbursements or expenses of the types customarily incurred in connection with
prosecuting, defending, preparing to prosecute or defend, investigating,
participating, or being or preparing to be a witness in a Proceeding. Expenses
also shall include Expenses incurred in connection with any appeal resulting
from any Proceeding, including without limitation the premium, security for, and
other costs relating to any cost bond, supersedeas bond, or other appeal bond or
its equivalent.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        Table of Contents

      

    

     

    “Funds”
means Mustang Capital Partners I, LP and Mustang Capital Partners II,
LP.

     

    “General
Partner” means the Partner or Partners who are designated in Part I
of Schedule A as the General Partner.

     

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

     

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

     

    (b)           the
Gross Asset Values of all Partnership assets shall be adjusted to equal their
respective gross fair market values, as reasonably determined by the General
Partner, at each of the following times: (i) the acquisition of an additional
interest in the Partnership by any new or existing Partner for more than a de
minimis contribution; (ii) the distribution by the Partnership to a Partner of
more than a de minimis amount of Partnership property as consideration for an
interest in the Partnership; (iii) the grant of an interest in the Partnership
(other than a de minimis interest) as consideration for the provision of
services to or for the benefit of the Partnership by any new or existing
Partner; (iv) as permitted under Section 1.704-1(b)(2)(iv)(f)(5)(iv) if the
Partnership meets the requirements of such provision; and (v) the liquidation of
the Partnership within the meaning of Section 1.704-1(b)(2)(ii)(g) of the
Regulations; provided, however, that the adjustments pursuant to clauses (i),
(ii), (iii) and (iv) above shall be made only if the General Partner reasonably
determines that such adjustments are necessary or appropriate to reflect the
relative economic interests of the Partners in the Partnership; and

     

    (c)           the
Gross Asset Value of any Partnership asset distributed to any Partner shall be
the gross fair market value of such asset on the date of distribution as
reasonably determined by the General Partner and, in the case of the
distribution of a Partnership asset to the General Partner, as approved by all
of the Partners; and

     

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

     

    (e)           if
the Gross Asset Value of an asset has been determined or adjusted pursuant to
clause (a), (b) or (d) of this definition, such Gross Asset Value shall
thereafter be adjusted by the Depreciation taken into account with respect to
such asset for purposes of computing Profits and Losses.

     

    
      
        
        

      

      
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    “Hypothetical
Liquidation Amount” means the amount expressed in dollars that Linnartz
would receive if, on the date of the particular Put Event, the Partnership sold
all of its tangible assets at their fair market values for cash, paid its
liabilities and distributed the remaining amount pursuant to Section 9.2(c)
after having allocated all taxable income, gain, loss and deduction for such
Fiscal Year, including that attributable to such hypothetical sale pursuant to
Section 4.1(a), and having made all Capital Account adjustments for such Fiscal
Year.  For purposes of calculating such Hypothetical Liquidation
Amount:

     

    
      	
               
      

            	
              (a)

            	
              all
      securities and other assets owned indirectly by the Partnership shall be
      considered owned directly by the Partnership in proportion to the
      Partnership’s interest in the entity holding such assets, calculated at
      the date of the particular Put Event, consistently with the method used
      for calculating similar amounts in connection with the Contributed
      Securities; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      fair market value of securities owned directly or indirectly by the
      Partnership shall be determined at the date of the particular Put Event,
      in accordance with the applicable valuation methodologies described in
      Section 3.7(a) of the Purchase
Agreement.

            

    

     

    “Imputed Tax
Rate” means, for any Fiscal Year, 40%.

     

    “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced
in matters of corporation law and neither presently is, nor in the past five
years has been, retained to represent: (i) the Partnership or the General
Partner in any matter material to either such party (other than with respect to
matters concerning the General Partner under this Agreement, or of other
indemnitees under similar indemnification agreements), or (ii) any other party
to the Proceeding giving rise to a claim for indemnification
hereunder.  Notwithstanding the foregoing, “Independent
Counsel” shall not include any person who, under the applicable standards
of professional conduct then prevailing, would have a conflict of interest in
representing either the Partnership or the General Partner in an action to
determine the General Partner’s rights under Section 3.6 of this
Agreement.  The Partnership shall pay the reasonable fees of the
Independent Counsel referred to above.

     

    “Interim
Period” means a period commencing on the day on which a new Partner is
admitted to the Partnership, the day on which a Partner makes an additional
Capital Contribution to the Partnership or the day on which the interest of a
Partner is terminated or reduced.  An Interim Period shall end at the
close of business on the day preceding the day on which a new Interim Period
begins.

     

    “Limited
Partners” means those Partners who are designated in Part II of Schedule
A as Limited Partners.

     

    
      
        
        

      

      
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    “Liquidating
Share” means the amount payable to a Partner upon death, insanity or
withdrawal from the Partnership as described in Section 8.3.

     

    “Majority-in-Interest
of the Limited Partners” means those Limited Partners whose Partnership
Percentages in the aggregate are greater than fifty percent (50%) of the
Partnership Percentages owned by all of the Partners. 

     

    “Partners”
means the General Partner and the Limited Partners.

     

    “Partnership
Percentage” means for each Member, the percentage interest set forth
opposite the name of such Partner on Schedule A.  Each
Partner’s Partnership Percentage shall be adjusted on the date on which a new
Partner is admitted to the Partnership, the date on which a Partner makes an
additional Capital Contribution to the Partnership, and the date on which the
interest of a Partner is terminated or reduced, in each case by the General
Partner with the consent of at least a Majority-in-Interest of the Limited
Partners; provided, however, that in no
event will the aggregate Partnership Percentage of the General Partner be less
than 1%.  The sum of the Partnership Percentages shall equal 100
percent (100%).  All Partnership Percentages shall be rounded to at
least three decimal places, as determined by the General Partner.

     

    “Person”
means any individual, partnership, limited liability company, corporation,
unincorporated organization or association, trust (including the trustees
thereof in their capacity as such) or other entity.

     

    “Pre-Contribution
Gain” means with respect to each of the Contributed Securities, the
amount by which the fair market value of such security at the Effective Date
exceeds its adjusted basis.

     

    “Proceeding”
means any threatened, pending or completed action, suit, arbitration, alternate
dispute resolution mechanism, investigation, inquiry, administrative hearing, or
any other actual, threatened or completed proceeding, or any appeal of such
completed action, suit, etc., bought by or in the right of the Partnership or
otherwise, and whether civil, criminal, administrative or investigative, whether
or not it is acting or serving as the General Partner at the time any liability
or Expense is incurred for which indemnification is provided under Section 3.6
of this Agreement.

     

    “Profits and
Losses” means, for each Fiscal Year or other period, an amount equal to
the Partnership’s taxable income or loss for such year or period, determined in
accordance with Code Section 703(a) (for this purpose, all items of income,
gain, loss or deduction required to be stated separately pursuant to Code
Section 703(a)(1) shall be included in taxable income or loss), with the
following adjustments:

     

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

     

    (ii)           Any
expenditures of the Partnership described in Code Section 705(a)(2)(B) or
treated as Code Section 705(a)(2)(B) expenditures pursuant to Regulations
Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing
Profits or Losses, shall be subtracted from such taxable income or
loss;

     

    
      
        
        

      

      
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    (iii)           In
the event the Gross Asset Value of any Partnership asset is adjusted pursuant to
subparagraph (ii) or subparagraph (iii) of the definition of Gross Asset Value
herein, the amount of such adjustment shall be taken into account as gain or
loss from the disposition of such asset for purposes of computing Profits or
Losses;

     

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

     

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

     

    (vi)           Notwithstanding
any other provision hereof, any items which are specially allocated pursuant to
this Agreement shall not be taken into
account in computing Profits or Losses; and

     

    (vii)           To
the extent an adjustment to the adjusted tax basis of any Partnership asset
pursuant to Section 734 of the Code is required pursuant to
Section 1.704-1(b)(2)(iv)(m)(4) of the Regulations to be taken into account
in determining Capital Accounts as a result of a distribution other than in
liquidation of a Partner’s Interest, the amount of such adjustment shall be
treated either as an item of gain (if the adjustment increases the basis of the
asset) or an item of loss (if the adjustment decreases the basis of the asset)
from the disposition of the asset.

     

    “Property”
means (other than cash) any property, real or personal, tangible or intangible
including, and any legal or equitable interest in such property, but excluding
services and promises to perform services in the future.

     

    “Schedule
A” means Schedule
A to this Agreement, as from time to time amended, setting forth the
name, address, Capital Contributions and Partnership Percentage of each Partner,
which Schedule
A is incorporated herein by reference.

     

    “Schedule
B” means Schedule
B to this Agreement, which Schedule
B is incorporated herein by reference.

     

    “Tax
Distribution” means the product of (i) the net positive sum, if any, of
the items required to be shown on lines 1-11 of Schedule K-1 (Form 1065) for
each Partner for such Fiscal Year, and (ii) the Imputed Tax Rate.

     

    “Tax
Regulations” means any final, temporary or proposed regulations
promulgated by the Treasury Department pursuant to the Code.

     

    
      
        
        

      

      
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    “Taxable
Year” or “Fiscal
Year” shall mean the calendar year, or a period beginning on the date the
Partnership is treated as coming into existence for federal income tax purposes
and ending on the first December 31 following such date, or a period ending on a
date the Partnership terminates for federal income tax purposes and commencing
on the immediately preceding January 1.

     

    _____________

     

    Article II

    General
Provisions

     

    _____________

     

    
      	
              2.1

            	
              Formation

            

    

     

    (a)           The
Partnership was formed on November 7, 2002, by the filing of a Certificate of
Limited Partnership with the Secretary of State of Texas and by the execution of
the Original Agreement.

     

    (b)           The
General Partner shall execute, acknowledge and file with the Secretary of State
of the State of Texas all certificates, any amendments thereto as may be
required by the Act and any other instruments, documents and certificates which,
in the opinion of the Partnership’s legal counsel, may from time to time be
required by the laws of the United States of America, the State of Texas or any
other jurisdiction in which the Partnership determines to do business, or any
political subdivision or agency thereof, or which such legal counsel may deem
necessary or appropriate to effectuate, implement and continue the valid and
subsisting existence and business of the Partnership.  The General
Partner shall cause any required amendment to the Certificate to be filed
promptly following the event requiring said amendment.  All amendments
may be signed by any one or more of the General Partners (as required by the
Act) and may be signed either personally or by an attorney-in-fact.

     

    (c)           The
Partners acknowledge that, beginning on the Effective Date, they intend that the
Partnership be taxed as a partnership for federal income tax
purposes.  No election may be made to treat the Partnership as other
than a partnership for federal income tax purposes.

     

    
      	
              2.2

            	
              Partnership
Name.

            

    

     

    The
Partnership shall do business under the name of Mustang Capital Advisors,
LP.

     

    
      	
              2.3

            	
              Fiscal
      Year.

            

    

     

    The
fiscal year of the Partnership (herein called the “Fiscal
Year”) shall be the calendar year.

     

    
      
        
        

      

      
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              2.4

            	
              Registered
Office/Agent.

            

    

     

    The
street address of the registered office of the Partnership is 1506 McDuffie
Street, Houston, Texas 77019, and the name of its registered agent at such
address is John K. H. Linnartz.

     

    
      	
              2.5

            	
              Partners.

            

    

     

    The names
of all of the Partners and the amounts of their respective Capital Contributions
are set forth in Schedule
A.

     

    
      	
              2.6

            	
              Purpose
      of Partnership.

            

    

     

    The
Partnership is organized for purposes of (i) acquiring and holding for
investment the general partnership interest in and serving in the capacity of
general partner of each of the Funds and (ii) engaging in such activities
incidental or ancillary thereto as the General Partner deems necessary or
advisable.

     

    
      	
              2.7

            	
              Assignability of
Interest.

            

    

     

    Without
the consent of the General Partner and a Majority-in-Interest of the Limited
Partners, a Partner may not assign its interest in whole or in part to any
Person except (a) to an Affiliate of such Partner or (b) by last will and
testament or operation of law.  The General Partner may condition any
such consent on the execution of such documents and the payment of such expenses
as the General Partner reasonably deems necessary.

     

    _____________

     

    Article III

    Management
Of Partnership

     

    _____________

     

    
      	
              3.1

            	
              Management
Generally.

            

    

     

    Subject
to Section 3.3 hereof, the management of the Partnership shall be vested
exclusively in the General Partner.  Except as set forth in Section
3.3 hereof, the Limited Partners shall not have any part in the management of
the Partnership and shall not have any authority or right to act on behalf of
the Partnership in connection with any matter except as may be provided for in
Section 9.1 hereof.

     

    
      	
              3.2

            	
              Authority of General
Partner.

            

    

     

    Subject
to Section 3.3 hereof, the General Partner shall have the power by itself, on
behalf and in the name of the Partnership, to carry out the purposes of the
Partnership set forth in Section 2.6 and to perform all acts and enter into and
perform all contracts and other undertakings which it may deem necessary or
advisable or incidental thereto.

     

    
      
        
        

      

      
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              3.3

            	
              Restrictions on Authority of General
      Partner.

            

    

     

    Notwithstanding
any other provision of this Agreement to the contrary, the General Partner shall
not have the authority to, and covenants and agrees that it shall not, undertake
any action enumerated below (each a “Major
Decision”), or expend any related sum, or incur a related obligation by
or on behalf of the Partnership without the prior written consent of a
Majority-in-Interest of the Limited Partners:

     

    (a)           Any
change in the principal business of the Partnership and any action that would
make it impossible to carry on the ordinary business of the Partnership or any
action that is not consistent with the purposes of the Partnership as set forth
in Section 2.6 or that would be in contravention of this Agreement;

     

    (b)           The
acquisition, sale or exchange by the Partnership (whether by purchase, sale or
exchange of stock or assets or by merger), directly or indirectly, in one or a
series of related transactions of any business or material amount of assets
outside of the ordinary course of business, or the merger or consolidation of
the Partnership with any other entity;

     

    (c)           The
making by the Partnership of a loan or advance to any Person in an amount in
excess of $50,000, the incurrence by the Partnership of indebtedness in an
amount in excess of $50,000 (with the exception of margin debt in connection
with the purchase of securities held in either Fund), or the guarantee or
assumption by the Partnership of, or the incurrence of any obligation by the
Partnership in respect of, the indebtedness of any Person;

     

    (d)           The
admission of additional Limited Partners to the Partnership, the determination
of the Capital Contributions and Partnership Percentages of such additional
Limited Partners and the priority and amount of distributions payable to such
additional Limited Partners;

     

    (e)           The
request for, or acceptance of, additional Capital Contributions from the
Partners; and

     

    (f)           The
liquidation, dissolution or winding up of the Partnership, or the commencement
by the Partnership of any proceeding under any United States federal or state
bankruptcy or insolvency law.

     

    
      	
              3.4

            	
              Reliance by Third
Parties.

            

    

     

    Persons
dealing with the Partnership are entitled to rely conclusively upon the
certificate of the General Partner to the effect that it is the General Partner
and upon the power and authority of the General Partner as herein set
forth.

     

    
      	
              3.5

            	
              Activity of General
Partner.

            

    

     

    The
General Partner hereby agrees to use its best efforts in connection with the
purposes of the Partnership and shall diligently and faithfully devote to such
purposes its time and activity; provided, however, that subject
to Article 11 hereof, nothing contained in this Section 3.5 shall preclude the
General Partner or any of its employees or agents from acting as a director,
officer or employee of any corporation, a trustee of any trust, or an executor
or administrative official of any other business entity; or from participating
in profits derived from the investments of any such corporation, trust, estate,
partnership or other business entity or person; or from engaging in any other
business or having other business interests, as long as such actions do not
unduly interfere with the General Partner’s management of the
Partnership.  The General Partner and its Affiliates may provide
services to the Partnership, provided, that any
services provided by any Affiliate of the General Partner are services that the
General Partner reasonably believes, at the time of requesting such services, to
be in the best interest of the Partnership, and provided further, that the
compensation to be paid for any such services and the other material terms of
any such transaction must be reasonable as compared to the compensation that
would be paid to and the terms that would be agreed to with an unrelated third
party for similar services under similar circumstances and must be approved by a
Majority-in-Interest of the Limited Partners.

     

    
      
        
        

      

      
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              3.6

            	
              Exculpation and Indemnification of the General
      Partner.

            

    

     

    (a)           The
General Partner and its employees, agents, authorized representatives and
Affiliates shall not be liable or accountable, in damages or otherwise, to the
Partnership or to any other Partner for any thing the General Partner may do or
refrain from doing on behalf of the Partnership, except in the case of the
General Partner’s willful breach of a material provision of this Agreement or
gross negligence in connection with the business and affairs of the
Partnership.

     

    (b)           Subject
to Section 3.6(c) below, the Partnership shall indemnify the General Partner, if
the General Partner was or is or becomes a party to or witness or other
participant in, or is threatened to be made a party to or witness or other
participant in, any Proceeding by reason of (or arising in part out of) any
event or occurrence related to the fact that the General Partner is or was a
director, officer, employee, controlling person, fiduciary or other agent or
affiliate of the Partnership, or is or was (or is alleged to be or to have been)
serving at the request of the Partnership as a director, officer, employee,
controlling person, fiduciary or other agent or affiliate of another
corporation, partnership, limited liability Partnership, joint venture, trust or
other enterprise, or by reason of any action or inaction on the part of the
General Partner while serving in such capacity, including, without limitation,
under the Securities Act of 1933, as amended, the Securities Exchange Act of
1934, as amended, or any other United States federal or state law or regulation,
at common law or otherwise, against (i) any and all Expenses (as defined below),
and (ii) all judgments, penalties, fines and amounts paid in settlement, in each
case actually and reasonably incurred by the General Partner, or on its behalf,
in connection with any such Proceeding or any claim, issue or matter
therein.

     

    (c)           It
shall be a condition of the required indemnification of the General Partner
pursuant to subsection 3.6(b) above that:

     

    
      	
               
      

            	
              (i)

            	
              the
      General Partner (x) acted in good faith and (y) reasonably
      believed that his conduct was (A) in the case of the General Partner
      in its official capacity, in the Partnership’s best interests or
      (B) in all other cases, at least not opposed to the Partnership’s
      best interests; and

            

    

     

    
      
        
        

      

      
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                (ii)

              	
                a
      determination that the foregoing standard of conduct necessary for
      indemnification has been met shall have been made by Independent
      Counsel.

              

      

       

    

    (d)           In
addition, the Partnership will advance, before the final disposition of any
Proceeding, all Expenses incurred by the General Partner in connection with any
Proceeding, within 30 days after the Partnership’s receipt of a statement or
statements from the General Partner requesting such advance or advances from
time to time.  Such statement or statements shall reasonably evidence
the Expenses and include or be preceded by an undertaking by or on behalf of the
General Partner to repay any Expenses advanced if it is ultimately determined
that the General Partner is not entitled to be indemnified against such
Expenses.  Any advances and undertakings to so repay shall be
unsecured and interest-free.

     

    (e)           To
obtain indemnification under this Section 3.6, the General Partner shall submit
to the Partnership a written request, including therein or therewith such
documentation and information as is reasonably available to the General Partner
and is reasonably necessary to determine whether and to what extent the General
Partner is entitled to indemnification.  Independent Counsel selected
by the General Partner shall make a determination that the standard of conduct
set forth in Section 3.6(c)(i) has been met no later than 90 days after such
written request has been received by the Partnership.

     

    (f)           The
rights granted pursuant to this Section 3.6 shall be deemed contract rights and
shall inure to the benefit of any Person entitled to indemnification and
advancement of Expenses under this Section 3.6 regardless of whether such Person
has executed or adopted this Agreement.  No amendment, modification or
repeal of this Section 3.6 shall have the effect of limiting or denying any such
rights with respect to actions taken or proceedings arising prior to any such
amendment, modification or repeal.

     

    (g)           Notwithstanding
any other provision of this Section 3.6, to the extent that the General Partner
has been successful on the merits or otherwise, including, without limitation,
the dismissal of an action without prejudice, or in the defense of any
Proceeding or any claim, issue or matter therein, the General Partner shall be
indemnified against all Expenses incurred by the General Partner in connection
therewith.

     

    (h)           The
indemnification provided under this Section 3.6 shall continue as to the General
Partner for any action it took or did not take while serving in an indemnified
capacity even though the General Partner may have ceased to serve in such
capacity.

     

    
      
        
        

      

      
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    _____________

     

    Article IV

    Allocations;
Distributions

     

    _____________

     

    4.1           Allocations
of Taxable Items of Income or Loss.

     

    (a)           Except
as otherwise provided in Sections 4.1(b) and  4.2, Profits and Losses for
each Fiscal Year or Interim Period shall be allocated to the Partners in
proportion to their Partnership Percentages.  Notwithstanding the
foregoing, in the Fiscal Year in which the Partnership terminates pursuant to
Article IX and any Fiscal Years thereafter, Profits and Losses shall be
allocated to the Partners in whatever manner (including allocations of items of
income, gain, loss or deduction) so that after such allocations and all other
Capital Account adjustments for such Fiscal Year the respective Capital Account
balances of the Partners shall be in such ratios so to as nearly as possible
cause the distributions pursuant to Section 9.2(c) to be made first to
Linnartz in the amount contemplated in Section 4.7 (to the extent not previously
distributed) and then in accordance with the Partnership Percentages of the
Partners.

     

    (b)           Notwithstanding
anything contained herein, in the event that Code § 704(c) and regulations
thereunder do not provide for the allocation to Linnartz of income or loss
attributable to the Contributed Securities, upon the sale or other taxable
disposition of any of the Contributed Securities, Linnartz will be allocated
items of income, gain, loss or deduction (as the case may be) that are
attributable to the taxable income or loss realized by the Partnership with
respect to such sold or disposed of Contributed Securities, but in no event
shall the amount of income or gain allocated to Linnartz pursuant to this
Section 4.1(b) with respect to any Contributed Securities exceed the amount of
Pre-Contribution Gain attributable to the particular sold or disposed of
Contributed Securities.

     

    
      	
              4.2

            	
              Special
      Allocations.

            

    

     

    The
allocations set forth in this Section 4.2 are intended to comply with certain
requirements under section 704 of the Code.  Therefore,
notwithstanding any other provision of this Article 4, the General Partner
shall make the allocations set forth below in the following order:

     

    (a)           Minimum Gain
Chargeback.  To the extent required by Section 1.704-2(f)
of the Regulations, if there is a net decrease in “partnership minimum gain”
(within the meaning of Section 1.704-2(b)(2) of the Regulations) in a
Fiscal Year, then each Partner will be allocated items of income and gain for
that Fiscal Year, before any other allocation of Profits or Losses, equal to
that Partner’s share of the net decrease in partnership minimum
gain.  This Section 4.2(a) is intended to comply with the minimum
gain chargeback requirement set forth in Section 1.704-2(f) of the
Regulations relating to partnership non-recourse liabilities (as defined in
Section 1.704-2(b)(3) of the Regulations) and shall be interpreted
consistently therewith.

     

    (b)           Partner Minimum Gain
Chargeback.  If a Partner suffers a net decrease in “partner
nonrecourse debt minimum gain” (within the meaning of Section 1.704-2(i)(4)
of the Regulations) in any Fiscal Year, then that Partner will be allocated
items of income and gain to the extent required by Section 1.704-2(i)(4) of
the Regulations.  This Section 4.2(b) is intended to comply with
the minimum gain chargeback requirement set forth in Section 1.704-2(i)(4)
of the Regulations relating to partner non-recourse debt (as defined in
Section 1.704-2(b)(4) of the Regulations) and shall be interpreted
consistently therewith.

     

    (c)           Qualified Income
Offset.  In the event any Partner unexpectedly receives any
adjustments, allocations, or distributions described in
Section 1.704-1(b)(2)(ii)(d)(4), Section 1.704-1(b)(2)(ii)(d)(5) or
Section 1.704-1(b)(2)(ii)(d)(6) of the Regulations, items of Partnership
income and gain shall be specially allocated to each such Partner in an amount
and manner sufficient to eliminate, to the extent required by the Regulations,
the negative Adjusted Capital Account Balance of such Partner as quickly as
possible, provided that an allocation pursuant to this Section 4.2(c) shall
be made if and only to the extent that such Partner would have a negative
Adjusted Capital Account Balance after all other allocations provided for in
this Article 4 have been tentatively made as if this Section 4.2(c) were
not in the Agreement.  This Section 4.2(c) is intended to
constitute a “qualified income offset” as defined in
Section 1.704-1(b)(2)(ii)(d) of the Regulations and shall be interpreted
consistently therewith.

     

    
      
        
        

      

      
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    (d)           Gross Income
Allocation. In the event any Partner has a deficit Capital Account at the
end of any Taxable Year which is in excess of the sum of (i) the amount such
Partner is obligated to restore pursuant to any provision of this Agreement and
(ii) the amount such Partner is deemed to be obligated to restore pursuant to
Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), each such Partner shall be
specially allocated items of Partnership income and gain in the amount of such
excess as quickly as possible, provided that an allocation pursuant to this
Section 4.2(d) shall be made only if and to the extent that such Partner
would have a deficit Capital Account in excess of such sum after all other
allocations provided for in this Article 4 have been tentatively made as if this
Section 4.2(d) and Section 4.2(c) were not in the
Agreement.

     

    (e)           Nonrecourse
Deductions.  If there are any “nonrecourse deductions” (within
the meaning of Sections 1.704-2(b)(1) and 1.704-2(c) of the Regulations) in a
Fiscal Year, then such deductions shall be allocated to the Partners pro rata in
accordance with their respective Percentage Interests.

     

    (f)           Partner Nonrecourse
Deductions.  If there are any “partner nonrecourse deductions”
(within the meaning of Section 1.704-2(i)(1) of the Regulations) in a
Fiscal Year, then such deductions will be allocated to the Partner who bears the
economic risk of loss for the “partner nonrecourse liability” (within the
meaning of Section 1.704-2(b)(4) of the Regulations) to which the
deductions are attributable.

     

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

     

    (h)           Stop
Loss.  No amount of Losses, or items thereof, shall be
allocated to any Partner to the extent that any such allocation would cause such
Partner to have or increase the amount of an existing deficit in such Partner’s
Adjusted Capital Account balance at the end of any Fiscal Year.  All
Losses in excess of the limitation set forth in this Section 4.2(h) shall
be allocated among such other Partners, who have positive Adjusted Capital
Account balances, in proportion to their Percentage Interests until each
Partner’s Adjusted Capital Account balance is reduced to
zero.  Thereafter, any remaining Losses shall be allocated to the
Partners in proportion to their relative interests in the Partnership as
required by Section 704(b) of the Code.

     

    
      
        
        

      

      
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    4.3           Curative
Allocations.

     

    The
allocations set forth in Sections 4.2(a) through 4.2(g) (the “Regulatory
Allocations”) are intended to comply with certain requirements of
Regulations Sections 1.704-1(b) and 1.704-2(b).  It is the intent of
the Partners that, to the extent possible, the Regulatory Allocations be offset
by other Regulatory Allocations or by special allocations of other Partnership
items of income, gain, loss and deduction pursuant to this Section 4.3 (for
the current and subsequent Fiscal Years if necessary) so that after such
offsetting allocations are made, each Partner’s Capital Account balance is, to
the extent possible, equal to the Capital Account balance such Partner would
have had if the Regulatory Allocations were not part of this Agreement and all
Partnership items were allocated pursuant to Section 4.1.  The
General Partner shall make offsetting allocations pursuant to this
Section 4.3 in the manner that minimizes the economic distortions that
might otherwise result from the Regulatory Allocations.

     

    4.4           Section 704(c)
Allocation.

     

    (a)           The
Partnership shall, except to the extent such item is subject to allocation
pursuant to Section 4.4(b) below, allocate each item of income, gain, loss,
deduction and credit, as determined for U.S. federal income tax purposes, in the
same manner as such item was allocated for purposes of maintaining the Partners’
Capital Accounts.

     

    (b)           Notwithstanding
any other provision of this Agreement to the contrary, any gain or loss and any
depreciation and cost recovery deductions recognized by the Partnership for
income tax purposes in any Fiscal Year with respect to all or any part of the
Partnership’s property that is required or permitted to be allocated among the
Partners in accordance with Section 704(c) of the Code and any Regulations
promulgated thereunder so as to take into account the variation, if any, between
the adjusted tax basis of such property and the initial Gross Asset Value of
such property at the time of its contribution, or following the adjustment to
the Gross Asset Value of Partnership property pursuant to this Agreement, shall
be allocated to the Partners for income tax purposes using any reasonable method
selected by the General Partner that is permitted under Section
704(c).

     

    4.5           Other
Allocation Rules.

     

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

     

    (b)           If
an amount paid or deemed paid by the Partnership to a Partner (or any other
Person) as interest, a guaranteed payment, or a payment for property or
services, is treated for federal income tax purposes as a distribution to such
Partner in its capacity as a partner for tax purposes and is neither a
guaranteed payment under Section 707(c) of the Code nor a payment under
Section 707(a) of the Code to a partner not acting in its capacity as a
partner, such Partner shall be allocated as soon as possible an amount of
Partnership’s gross income or gain equal to the amount of such
payment.

     

    
      
        
        

      

      
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              4.6

            	
              Distributions.

            

    

     

    Except as
otherwise provided in this Agreement, from time to time, in the sole discretion
of the General Partner, Available Cash shall be distributed to the Partners in
accordance with their Partnership Percentages.

     

    
      	
              4.7

            	
              Preferential
Distributions.

            

    

     

    In the
event that any Contributed Securities are sold or otherwise disposed of
(treating the indirect interest of the Partnership therein as if it were a
direct interest) Linnartz shall be entitled to be distributed cash in an amount
equal to the lesser of (i) the fair market value of the particular Contributed
Securities at the Effective Date; or (ii) the gross proceeds from such sale or
other disposition of the particular Contributed Securities.

     

    
      	
              4.8

            	
              Tax Distributions.

            

    

     

    Notwithstanding
Section 4.6, prior to any winding up of the Partnership and within a reasonable
time after the end of each Fiscal Year, the General Partner shall, to the extent
permitted by the Act, and to the extent the Partnership  has legally
available funds therefor, cause the Partnership to make cash distributions to
each of the Partners in an amount equal to the Tax
Distribution.  Notwithstanding anything contained herein, any Tax
Distribution made to a Partner shall be considered an advance of distributions
to be made to such Partner under Sections 4.6, 4.7 and 9.2(c) and shall
reduce on a dollar-for-dollar basis, subsequent distributions pursuant to such
sections until such Tax Distribution has been offset against such subsequent
distributions.

     

    _____________

     

    Article V

    Capital
Accounts Of Partners

     

    _____________

     

    
      	
              5.1

            	
              Capital
      Contributions.

            

    

     

    Each
Limited Partner has paid or conveyed by way of contribution to the Partnership
Property, equal to the amount set forth opposite such Limited Partner’s name as
“Capital Contribution” in Part II of Schedule
A, which the Partners agree reflects the fair market value of the assets
that the Partners are considered to have contributed to the Partnership pursuant
to Situation 1 of Rev. Rul. 99-5.  The Partners recognize and agree
that (A) MCM shall be considered to have contributed to the Partnership an
interest in intangible assets having a fair market value of $20,593.00; (B)
Holdings shall be considered to have contributed to the Partnership an interest
in intangible assets having a fair market value of $1,039,739.00; and (C)
Linnartz shall be considered to have contributed to the Partnership (i) an
interest in intangible assets having a fair market value of $998,964.00, and
(ii) all of the Contributed Securities and that the fair market value of the
Contributed Securities at the Effective Date shall be determined using the same
methodologies used to calculate the fair market values of the Contributed
Securities on June 30, 2008 as shown on Schedule
B.  Based upon such initial Capital Contributions, each
Partner’s initial Capital Account is set forth on Schedule
A.  Additional Capital Contributions may be made by Partners
only in accordance with the provisions of Section 5.2.  The General
Partner may contribute amounts greater than 1%, but in no event will the General
Partner’s Partnership Percentage be less than 1%.

     

    
      
        
        

      

      
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              5.2

            	
              Capital Accounts; Additional Capital
    Contributions.

            

    

     

    There
shall be established for each Partner on the books of the Partnership a Capital
Account.  The initial Capital Account balance for each Partner shall
be an amount equal to his or its Capital Contribution, subject to Section 5.1
hereof.

     

    Subject
to Sections 3.3 and 7.1 hereof, additional Capital Contributions may be made by
any Partner.  Any Partner (other than the General Partner) who makes a
Capital Contribution after the formation of the Partnership shall receive an
interest as a Limited Partner in exchange therefor.  The Partnership
may require not less than 30 days’ notice thereof specifying the amount and
nature of any additional Capital Contributions.

     

    
      	
              5.3

            	
              Maintenance of Capital
  Accounts.

            

    

     

    Each
Partner’s Capital Account shall be maintained throughout the term of the
Partnership in accordance with the rules of Section 1.704-1(b)(2)(iv) of the Tax
Regulations as in effect from time to time and, to the extent not inconsistent
with the Tax Regulations, the Capital Account maintenance provisions contained
in the definition of “Gross Asset Value” and the following
provisions:

     

    (a)           To
each Partner’s Capital Account there shall be credited (i) the amount of money
contributed by such Partner to the Partnership (including liabilities of the
Partnership assumed by such Partner as provided in Section 1.7041-(b)(2)(iv)(c)
of the Tax Regulations); (ii) the fair market value of any property (as
determined by the General Partner in its sole discretion) contributed to the
Partnership by such Partner (net of liabilities secured by such contributed
property that the Partnership is considered to assume or take subject to under
Section 752 of the Code); and (iii) such Partner’s share of the Partnership’s
taxable income and gain for each Fiscal Year or Interim Period and items of
income or gain that are specially allocated.

     

    (b)           To
each Partner’s Capital Account there shall be debited (i) the amount of money
distributed to such Partner by the Partnership (including liabilities of such
Partner assumed by the Partnership as provided in Section 1.7041-(b)(2)(iv)(c)
of the Tax Regulations) other than amounts that are in repayment of debt
obligations of the Partnership to such Partner; (ii) the fair market value of
property (as determined by the General Partner in his sole discretion)
distributed to such Partner (net of liabilities secured by such distributed
property that such Partner is considered to assume or take subject to under
Section 752 of the Code); and (iii) such Partner’s share of the Partnership’s
taxable loss or deduction for each Fiscal Year or Interim Period and items of
loss or deduction that are specially allocated.

     

    
      
        
        

      

      
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              5.4

            	
              Determination by General Partner of Certain
    Matters.

            

    

     

    All
matters concerning the allocation of profits, gains and losses among the
Partners including their taxable status, and accounting procedures not
specifically and expressly provided for by the terms of this Agreement, shall be
determined by the General Partner on a fair and equitable basis in accordance
with applicable law (subject, where appropriate, to generally accepted
accounting principles, as recommended by the accountants for the Partnership)
whose determination shall be final and conclusive as to all of the
Partners.

     

    _____________

     

    Article VI

    Withdrawal
Of Capital

     

    _____________

     

    
      	
              6.1

            	
              Withdrawals in
General.

            

    

     

    No
Partner shall be entitled to withdraw any amount from his or its Capital Account
other than upon his or its withdrawal from the Partnership, death or insanity,
without the consent of the General Partner and a Majority-in-Interest of the
Limited Partners.

     

    
      	
              6.2

            	
              Limitations on
Withdrawal.

            

    

     

    The right
of any Partner to withdraw any amount from his or its Capital Account pursuant
to the provisions of this Article 6 is subject to the provision by the General
Partner for all Partnership liabilities in accordance with the Act and for
reserves for contingencies.

     

    _____________

     

    Article VII

    Admission
Of New Partners

     

    _____________

     

    
      	
              7.1

            	
              Limited Partners.

            

    

     

    Subject
to approval of a Majority-in-Interest of the Limited Partners in accordance with
Section 3.3 hereof, from time to time, the General Partner may, admit additional
Limited Partners, accept additional Capital Contributions from existing Limited
Partners or make additional Capital Contributions for its own
account.  Each Limited Partner admitted to the Partnership shall
execute an appropriate supplement to this Agreement pursuant to which he agrees
to be bound by the terms and provisions hereof. The admission of an additional
Limited Partner will in no event reduce the General Partner’s Partnership
Percentage below 1%.

     

    
      
        
        

      

      
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              7.2

            	
              General Partner.

            

    

     

    The
General Partner may admit additional general partners to the Partnership as of
the first day of any calendar quarter with the prior written approval of a
Majority-in-Interest of the Limited Partners.

     

    _____________

     

    Article VIII

    Withdrawal,
Death Or Insanity Of Partners

     

    _____________

     

    
      	
              8.1

            	
              Withdrawal of General
Partner.

            

    

     

    Without
the approval of a Majority-in-Interest of the Limited Partners, the General
Partner may, upon 30 days’ prior notice, withdraw as general partner of the
Partnership and designate an Affiliate of the General Partner or any successor
to the business or assets of the General Partner (the “Designee”)
to be substituted as General Partner, as long as the General Partner obtains an
opinion of counsel that such withdrawal and substitution shall not cause the
Partnership to be classified as a person or entity other than a partnership for
federal income tax purposes.  The Designee shall become and have all
of the rights, powers and duties of the General Partner for all purposes of this
Agreement.

     

    
      	
              8.2

            	
              Withdrawal, Death, etc., of Limited
      Partner.

            

    

     

    No
Limited Partner shall be entitled to withdraw from the Partnership without the
consent of the General Partner and a Majority-in-Interest of the Limited
Partners.  The withdrawal, death, disability, incapacity,
incompetency, bankruptcy, insolvency or dissolution of a Limited Partner shall
not dissolve the Partnership.

     

    Subject
to Section 8.5 hereof, in the event of the death, disability, incapacity,
incompetency, bankruptcy, insolvency or dissolution of a Limited Partner or the
giving of notice of withdrawal by a Limited Partner, the interest of such
Limited Partner shall continue at the risk of the Partnership business until the
earlier of the first permitted date of withdrawal occurring after such event, or
termination of the Partnership.  If the Partnership is continued after
the withdrawal, such Limited Partner or his or its legal representatives shall
be entitled to receive the Liquidating Share of such Limited Partner as provided
in Section 8.3.

     

    
      	
              8.3

            	
              Payment of
      Liquidating Share.

            

    

     

    The
Liquidating Share of a withdrawing, deceased, disabled, incompetent, bankrupt,
insolvent or dissolving Partner shall be an amount equal to the Capital Account
of such Partner as adjusted as described in Section 5.3 and shall be
subject to the limitations described in Section 8.4.

     

    
      
        
        

      

      
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              8.4

            	
              Limitations on Withdrawal of Liquidating
    Share.

            

    

     

    The right
of any withdrawn, deceased, disabled, incapacitated, incompetent, bankrupt,
insolvent or dissolved Partner or his or its legal representatives to have
distributed the Liquidating Share of such Partner pursuant to this Article 8 is
subject to the provision by the General Partner for all Partnership liabilities
in accordance with the Act and for reserves for contingencies which reserves
shall be held in escrow.  The unused portion of any reserve shall be
distributed after the General Partner shall have determined that the need
therefor shall have ceased.

     

    
      	
              8.5

            	
              Holdings’ Purchase
  Obligations.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Death
      or Disability.

            	
                In
      the event of Linnartz’s death or Disability, then Holdings shall, within
      20 days thereafter, purchase from Linnartz’s legal representative all of
      Linnartz’s Partnership Percentage, at the price and on the terms set forth
      below.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Earnout.  At
      any time after Holdings has received aggregate distributions from either
      or both of the Partnership and the General Partner of an amount equal to
      $1,050,241 (the “Earnout”),
      then Linnartz shall have the right to require Holdings to purchase from
      Linnartz all of Linnartz’s Partnership Percentage, at the price and on the
      terms set forth below, by delivering a written notice to Holdings setting
      forth the price, the form of consideration and the closing date of such
      purchase, all in accordance with the terms set forth below (such written
      notice, a “Put
      Notice”).

            

    

     

    
      	
               
      

            	
              (c)

            	
              Linnartz
      Ceases to be Sole Manager.  If at any time prior to the
      Earnout, Linnartz is removed or is otherwise replaced as the sole manager
      of the General Partner, other than due to his death, disability or
      resignation, then Linnartz shall have the right to require Holdings to
      purchase from Linnartz all of Linnartz’s Partnership Percentage, at the
      price and on the terms set forth below, by delivering a Put Notice to
      Holdings (any event described in the foregoing subsections (a), (b), or
      (c), a “Put
      Event”).

            

    

     

    The
closing of the purchase and sale of Linnartz’s Partnership Percentage: (i) under
(a) above shall be not less than 30 nor more than 60 days after the date the Put
Event occurs; (ii) under (b) or (c) above shall be held on such date and at such
time as is specified in the Put Notice, except that the date so specified must
be not less than 30 nor more than 60 days after the date Holdings receives such
Put Notice.

     

    The price
Holdings shall pay for Linnartz’s Partnership Percentage in connection with a
purchase pursuant to (a), (b) or (c) above shall equal the sum of (i) the
Applicable Amount, and (ii) the Hypothetical Liquidation Amount, both determined
at the date of the applicable Put Event.  At the closing of the
purchase and sale of Linnartz’s Partnership Percentage, Holdings shall pay to
Linnartz:

     

    (x)           the
Applicable Amount 28.56% in cash and 71.44% in common stock of Western or its
successor-in-interest, with such shares delivered at the closing of the purchase
valued at the average of the closing prices of such common stock during the 10
trading days prior to the date of the Put Event; and

     

    
      
        
        

      

      
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    (y)           the
Hypothetical Liquidation Amount in cash.

     

    _____________

     

    Article IX

    Duration
And Termination Of Partnership

     

    _____________

     

    
      	
              9.1

            	
              Duration.

            

    

     

    The
Partnership shall continue until it is dissolved and subsequently terminated,
which dissolution shall occur upon the earliest of (i) a determination made by
the General Partner and a Majority-in-Interest of the Limited Partners at any
time to dissolve the Funds for any reason, (ii) the bankruptcy or insolvency of
the General Partner or (iii) the termination, dissolution or withdrawal of the
General Partner without a corresponding permitted substitution pursuant to
Section 7.2.

     

    In the
event Partnership is terminated as a result of the bankruptcy or insolvency of
the General Partner, a Majority-in-Interest of the Limited Partners may select
one or more persons to wind up the affairs of the Partnership in due course and
discharge the functions required to be performed under Section 9.2.

     

    In the
case of dissolution of the Partnership for any reason, whether or not specified
in this Agreement, the Partnership business may be continued by the General
Partner or the liquidator selected by the Limited Partners in accordance with
this Section 9.1, until all of the assets of the Partnership are
liquidated.

     

    
      	
              9.2

            	
              Termination.

            

    

     

    On
termination of the business of the Partnership, the General Partner shall, out
of the Partnership assets, make distribution in the following manner and
order:

     

    
      	
               
      

            	
              (a)

            	
              to
      payment and discharge of the claims of all creditors of the Partnership
      who are not Partners;

            

    

     

    
      	
               
      

            	
              (b)

            	
              to
      payment and discharge pro rata of the claims of all creditors of the
      Partnership who are Partners; and

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      balance remaining, if any, to the Partners in accordance with their
      positive Capital Account balances, after giving effect to all
      contributions, distributions and allocations for all
      periods.  All distributions pursuant to this Section 9.2(c)
      shall be made in accordance with Tax Regulations Section
      1.704-1(b)(2)(ii)(b)(2) including the timing requirements
      thereof.

            

    

     

    
      
        
        

      

      
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              9.3

            	
              Method
      of Distributions.

            

    

     

    Distributions
made pursuant to this Agreement shall be made in cash to the extent reasonably
possible.

     

    
      	
              9.4

            	
              No Restoration of Deficit Capital
  Account.

            

    

     

    Notwithstanding
anything contained in this Agreement, no Partner shall have any obligation to
restore a deficit in such Partner’s Capital Account following the distribution
of liquidation proceeds.

     

    _____________

     

    Article X

    Reports
To Partners

     

    _____________

     

    
      	
              10.1

            	
              Books of
      Account.

            

    

     

    The books
of account and records of the Partnership shall be kept at the discretion of the
General Partner and, in the sole discretion of the General Partner, may be
audited or reviewed as of the end of each Fiscal Year by the independent
certified public accountants selected by the General Partner.  All
determinations of Capital Accounts and Partnership Percentages made during a
Fiscal Year shall be subject to adjustment upon completion of the audit or
review of the Partnership’s Fiscal Year.

     

    
      	
              10.2

            	
              Interim
      Reports.

            

    

     

    The
General Partner will provide reports with respect to the progress of the
Partnership in such form and at such times as the General Partner, in its sole
discretion, shall determine.

     

    _____________

     

    Article XI

    Non-Competition

     

    _____________

     

    
      	
              11.1

            	
              Non-Competition.

            

    

     

    Linnartz
agrees that, during the period during which Linnartz continues to be a Limited
Partner in the Partnership, Linnartz shall not, directly or indirectly, in his
own capacity or through one or more affiliates or associates, whether as owner,
consultant, shareholder, partner, member, manager, officer, director, venturer
or agent, through equity ownership, investment of capital, lending of cash or
Property, rendering of services, or otherwise, engage in the business of
advising or managing the funds of any Person or advising, operating or managing
any collective investment vehicle with respect to investment in securities of
the type in which any of the Funds invests or proposes to invest or otherwise
compete with the Partnership or any of the Funds for investors or investment
opportunities within the Applicable Territory (as defined below), except on
behalf of the Partnership or any of the Funds.  For purposes of this
Agreement, the term “Applicable
Territory” shall mean anywhere within or outside the United States of
America.  Nothing contained in this Agreement shall be deemed to
prohibit Linnartz from investing his funds in securities of an issuer if the
securities of such issuer are listed for trading on a national securities
exchange or are traded in the over-the-counter market and Linnartz’s holdings
therein represent less than 2% of the total number of shares or principal amount
of the securities of such issuer outstanding.

     

    
      
        
        

      

      
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              11.2

            	
              Restrictions
Reasonable.

            

    

     

    Linnartz
acknowledges that the provisions of this Article 11 are reasonable and necessary
for the protection of Holdings, and that each provision, and the period or
periods of time, geographic areas and types and scope of restrictions on the
activities specified herein are, and are intended to be,
divisible.  In the event that any provision of this Article 11,
including any sentence, clause or part hereof, shall be deemed contrary to law
or invalid or unenforceable in any respect by a court of competent jurisdiction,
the remaining provisions shall not be affected, but shall, subject to the
discretion of such court, remain in full force and effect.

     

    
      	
              11.3

            	
              Equitable
      Relief.

            

    

     

    The
parties hereto acknowledge that in the event of a breach or a threatened breach
by Linnartz of any of his obligations under this Article 11, Holdings shall not
have an adequate remedy at law.  Accordingly, in the event of any such
breach or threatened breach by Linnartz, Holdings shall be entitled to such
equitable and injunctive relief as may be available to restrain Linnartz and any
business, firm or other Person participating in such breach or threatened breach
from the violation of the provisions of this Article 11.  Nothing
herein shall be construed as prohibiting Holdings from pursuing any other
remedies available at law or in equity for such breach or threatened breach,
including the recovery of damages.

     

    _____________

     

    Article XII

    Miscellaneous

     

    _____________

     

    
      	
              12.1

            	
              Expenses.

            

    

     

    The
Partnership shall reimburse the General Partner for its payment of the expenses
incurred in organizing and selling interests in the Partnership.  All
expenses of the Partnership, including but not limited to ordinary and
extraordinary legal and accounting fees, shall be paid by the Partnership and
shall not be payable by the General Partner. The General Partner’s ascertainment
of any expenses incurred by it on behalf of the Partnership shall be
conclusive.

     

    
      
        
        

      

      
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              12.2

            	
              General.

            

    

     

    This
Agreement (a) shall be binding on the executors, administrators, estates, heirs,
and legal successors of the Partners; (b) shall be governed by, and construed in
accordance with, the laws of the State of Texas; and (c) may be executed in
several counterparts with the same effect as if the parties executing the
several counterparts had all executed one counterpart as of the date and year
first above written; provided, however, that each
separate counterpart shall have been executed by the General Partner and that
the several counterparts, in the aggregate, shall have been signed by all of the
Partners.

     

    
      	
              12.3

            	
              Amendments to Partnership
  Agreement.

            

    

     

    The terms
and provisions of this Agreement may be modified or amended at any time and from
time to time with the written consent of a Majority-in-Interest of the Limited
Partners and the written consent of the General Partner insofar as is consistent
with the laws governing this Agreement; provided, however, that,
without the specific consent of each Partner affected thereby, no such
modification or amendment shall (a) reduce the Capital Account of any Partner or
his or its rights of contribution or withdrawal with respect thereto; (b)
increase the General Partner’s share of allocations of items of taxable income,
gain, loss or deduction; or (c)  amend this Section 12.3; and provided, further, that without
the consent of the Limited Partners, the General Partner may amend the Agreement
in such a manner that does not adversely affect any Limited
Partner.

     

    
      	
              12.4

            	
              Notices.

            

    

     

    Each
notice relating to this Agreement shall be in writing and delivered in person,
by recognized overnight delivery service, by registered or certified mail or, in
the case of reports delivered to Limited Partners in the ordinary course of
business, by regular mail.  All notices to the Partnership shall be
addressed to its principal office and place of business.  All notices
addressed to a Partner shall be addressed to such Partner at the address set
forth in Schedule A.  Any Partner may designate a new address by
notice to that effect given to the Partnership.  Unless otherwise
specifically provided in this Agreement, a notice shall be deemed to have been
effectively given when mailed by registered or certified mail to the proper
address or delivered in person, by recognized overnight delivery service or by
regular mail.

     

    
      	
              12.5

            	
              Counsel.

            

    

     

    The
Partners acknowledge that Olshan Grundman Frome Rosenzweig & Wolosky LLP
represents only Holdings in the preparation and negotiation of this
Agreement.  Linnartz acknowledges that the Partnership has been
represented by separate counsel.

     

    
      	
              12.6

            	
              Use of
      Name.

            

    

     

    The
Partnership shall have the right to use the names of the General
Partner.  If an additional General Partner is admitted to the
Partnership pursuant to Section 7.2, the term “General
Partner” shall include the additional General Partner unless the context
otherwise requires.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        Table of Contents

      

    

     

    
      	
              12.7

            	
              Headings.

            

    

     

    The
titles of the Articles and the headings of the Sections of this Agreement are
for convenience of reference only, and are not to be considered in construing
the terms and provisions of this Agreement.

     

    

     

    [The
remainder of this page is intentionally left blank.]

     

    
      
        
        

      

      
        25

        
          

        

      

      
        Table of Contents

      

    

     

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

     

    
      
        	
                GENERAL
      PARTNER:

              
	 
      
	
                MUSTANG
      CAPITAL MANAGEMENT, LLC

              
	 
      	 
      
	
                By:

              	
                
                  /s/
      John K. H. Linnartz

                

              
	
                Name:

              	
                John
      K. H. Linnartz

              
	
                Title:

              	
                Manager

              

      

      

       

      
        	
                LIMITED
      PARTNERS:

              
	 
      
	
                
                  /s/
      John K. H. Linnartz

                

              
	
                John
      K. H. Linnartz

              

      

      

       

      
        	
                WESTERN
      MUSTANG HOLDINGS LLC

              
	 
      	 
      
	
                By:

              	
                
                  /s/
      Sardar Biglari

                

              
	
                Name:

              	
                Sardar
      Biglari

              
	
                Title:

              	
                Chief
      Executive Officer

              

      

    

     

     

     

    
      Signature
Page to 

      Amended
and Restated 

      Limited
Partnership Agreement

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        Table of Contents

      

       

    

    Schedule A

     

    
      	
              I

               

              General
      Partner:

            	 	 
      	 	 
      	 	 
      
	 	 	 	 	 	 	 
	
              Name and
      Address

            	 	
              Initial Capital

              Contribution

            	 	
              Initial Capital

              Account

            	 	
              Initial Partnership

              Percentage

            
	 	 	 	 	 	 	 
	
              Mustang
      Capital Management, LLC

              1506
      McDuffie Street

              Houston,
      Texas 77019

               

            	 	
              $20,593.00

            	 	
              $20,593.00

            	 	
              1.00%

            
	
              II

               

              Limited
      Partners:

            	 	 
      	 	 
      	 	 
      
	 	 	 	 	 	 	 
	
              Name and
      Address

            	 	
              Initial Capital

              Contribution

            	 	
              Initial Capital

              Account

            	 	
              Initial Partnership

              Percentage

            
	 	 	 	 	 	 	 
	
              John
      K. H. Linnartz

              1506
      McDuffie Street

              Houston,
      Texas 77019

               

            	 	
              $998,964.00
      plus the fair market value of the Contributed Securities as of the
      Effective Date

            	 	
              $998,964.00
      plus the fair market value of the Contributed Securities as of the
      Effective Date

            	 	
              48.50%

            
	 	 	 	 	 	 	 
	
              Western
      Mustang

              Holdings
      LLC

              c/o
      Western Sizzlin Corporation

              416
      South Jefferson Street

              Suite
      600

              Roanoke,
      Virginia 24011

               

            	 	
              $1,039,739.00

               

               

               

               

               

            	 	
              $1,039,739.00

               

               

               

               

               

            	 	
              50.50%

               

               

               

               

               

               

            
	
               

              Total
      Partnership Percentage

            	 	 
      	 	 
      	 	
               

              100.00%

            

    

     

    
      
        
        

      

      
        A-i

        
          

        

      

      
        Table of Contents

      

    

     

     

    Schedule B

     

    (attached)

    

     

    

    
      
        
        

      

      
        B-i

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