CONSENT, MODIFICATION, ASSUMPTION OF INDEMNITY OBLIGATIONS AND
RELEASE AGREEMENT

          THIS CONSENT, ASSUMPTION OF INDEMNITY OBLIGATIONS AND RELEASE
AGREEMENT is entered into as of the ___ of ____________, 2004 (“Agreement”), by
and among JEFFERSON AT SUNSET VALLEY, L.P.,a Texas limited partnership
(“Borrower”), JPI PORTFOLIO I GP1 LLC, a Texas limited liability company
(“Existing GP”), JPI PORTFOLIO I, L.P., a Texas limited partnership(“Existing
LP” and collectively with the Existing GP, the “Existing Partners”),  JPI
INVESTMENT COMPANY, L.P.,a Texas limited partnership (the “Existing
Indemnitor”), LASALLE BANK NATIONAL ASSOCIATION (f/k/a LaSalle National Bank),
as Trustee (“Trustee”) under that certain Pooling and Servicing Agreement dated
March 1, 1999 (“PSA”) for Certificateholders of COMM 1999-1 Commercial Mortgage
Pass-Through Certificates (the “Lender”), ORIX CAPITAL MARKETS, LLC (f/k/a Banc
One Mortgage Capital Markets, L.P.), as Servicer pursuant to the PSA
(“Servicer”), MAC OF DELAWARE, INC., a Delaware corporation (“New GP”),
MID-AMERICA APARTMENTS, L.P., a Tennessee limited partnership (“New LP” and
collectively with the New GP, the “New Partners”) and MID-AMERICA APARTMENTS OF
TEXAS, L.P., a Texas limited partnership, MID-AMERICA APARTMENTS, L.P., a
Tennessee limited partnership, and MID-AMERICA APARTMENT COMMUNITIES, INC.,a
Tennessee corporation (each a “New Indemnitor” and collectively the “New
Indemnitors”).

RECITALS

          The Borrower is indebted to the Lender (as hereinafter defined) for a
loan in the original principal amount of $11,380,000.00 (the “Loan”), which is
evidenced by a Promissory Note dated as of September 28, 1998, in said principal
amount (the “Note”) payable by the Borrower to the order of German American
Capital Corporation, a Maryland corporation (“Original Lender”), which Note is
currently held by the Trustee for the benefit of Lender.  The Loan is secured
by, among other things, that certain Deed of Trust and Security Agreement dated
as of September 28, 1998 (“Security Instrument”), from the Borrower to Original
Lender as assigned by that certain Assignment of Deed of Trust and Security
Agreement dated as of July 22, 1999, from Borrower to Trustee for the benefit of
Lender, encumbering certain improved real estate described in the Security
Instrument and located in Travis County, Texas (“Mortgaged Property”).

          The Existing Partners and the New Partners have agreed that the
Existing Partners shall transfer and assign 100% of their partnership interests
in the Borrower to the New Partners.  Pursuant to Section 6.3 of the Security
Instrument, the Borrower, the Existing Partners, the New Partners, the Existing
Indemnitor and the New Indemnitors have requested that the Lender (i) consent to
the Existing Partners’ transfer and assignment of 100% of their partnership
interests in the Borrower to the New Partners (“Interest Transfer”); (ii)
release and discharge the Existing Partners and the Existing Indemnitor from
their obligations arising after the date of this Agreement pursuant to the Note,
the Security Instrument and all other documents evidencing, securing, or
otherwise relating to the Loan (collectively, the “Loan Documents”); and (iii)
agree to the execution by the New Indemnitors of the that certain Guaranty (as
defined hereinafter) and that certain Environmental Indemnity Agreement (as
defined hereinafter) (“Assumption”).  The Lender is willing to grant the
foregoing request, but only upon the terms and conditions set forth herein.

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

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

          NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and to induce the Lender to consent to the transactions and events
described in the foregoing recitals, the parties hereto agree as follows:

          1.     Consent and Release by the Lender.  In reliance upon and
subject to the representations, warranties, conditions, and covenants set forth
herein, the Lender hereby consents to the following:

 

          (a)     The absolute transfer and assignment by the Existing Partners
of 100% of the partnership interests in the Borrower to the New Partners;

 

 

 

          (b)     The execution and delivery of that certain Assignment of
Partnership Interests and amendment to the partnership agreement of the
Borrower, dated as of _____________ (collectively, the “Amended Partnership
Documents”);

 

 

 

          (d)     The release and discharge of the Existing Partners and the
Existing Indemnitor from their obligations arising after the date hereof
pursuant to the Note, the Security Instrument and all other Loan Documents,
subject to the terms and conditions of this Agreement; and

 

 

 

          (e)     The execution by the New Indemnitors of the Guaranty and the
Environmental Indemnity Agreement.

          Nothing herein shall be construed or interpreted as the Lender’s
consent to any subsequent changes, sale, transfer, or encumbrance of any
ownership interest in the Borrower or the Mortgaged Property, and any such
subsequent change, sale, transfer, or encumbrance shall be governed by the
provisions of Section 6.3 of the Security Instrument, as amended.

          The foregoing is not a waiver of any other requirement of the Loan and
related Loan Documents and applies only to the specific consent granted herein. 
The granting of such consent and the execution of this Agreement in no way
obligates the Lender, the Servicer or any subsequent holder of the Note, to
grant any future consents or waivers nor does it establish in any way a pattern
or practice of dealing that the Borrower, the Existing Partners, the Existing
Indemnitor, the New Partners and the New Indemnitors may rely upon in seeking
any other consent or waiver.

          2.     Assumption by the New Partners and the New Indemnitors.  The
New  Partners hereby adopt, ratify and confirm as of the origination date of the
Loan all of the representations, warranties and covenants of the Existing
Partners under the Loan Documents (excluding the Original Guaranty [defined
hereinafter] and the Original Environmental Indmenity Agreement [defined
hereinafter]) as if the New Partners were the Existing Partners named therein
and jointly and severally assume all liability of the Existing Partners under
the Loan Documents. 

2

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

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

          New Indemnitors have executed and delivered to the Lender that certain
Limited Indemnity Agreement dated of even date herewith (the “Guaranty”) and
that certain Environmental Indemnity Agreement dated of even date herewith (the
“Environmental Indemnity Agreement”).

          The New Partners hereby assume and agree to be bound by, and to pay
and perform, all covenants, representations, warranties, and other obligations
of the Existing Partners relating to or arising from the Loan and the Loan
Documents (excluding the Original Guaranty and the Original Environmental
Indemnity Agreement) to which they are a party.

          3.     Release of the Existing Partners and the Existing Indemnitor. 
In reliance upon the representations, warranties, covenants, and agreements set
forth herein, and subject to the conditions precedent set forth in Section 4
below, the Lender hereby releases and discharges the Existing Partners and the
Existing Indemnitor from any and all liabilities and obligations arising from or
relating to the Loan and the Loan Documents, provided that the Existing Partners
or the Existing Indemnitor are not released from any liability pursuant to (i)
this Agreement (except that they shall have no liability with respect to any
representation or warranty by New Partners or New Indemnitors) or (ii) the
provisions of the Limited Indemnity Agreement dated September 29, 1998 made by
the Existing Indemnitor for the benefit of the Original Lender (the “Original
Guaranty”), the Environmental Indemnity Agreement dated September 29, 1998 made
by the Existing Indemnitor for the benefit of Original Lender (the “Original
Environmental Indemnity Agreement”), Section 4.1 of the Security Instrument or
Section 6(b)(i)-(ix) of the Note, in each case, for any liability that relates
to the period prior to the date hereof regardless of when any other condition
giving rise to any such liability thereunder is discovered.  If any material
element of the representations and warranties contained herein made by the
Existing Partners or the Existing Indemnitor is false as of the date of this
Agreement or in the event the Existing Partners or the Existing Indemnitor take
or cause any other party hereto (other than the Lender) to take any actions
which are in contradiction with the provisions of Paragraph 9 of this Agreement,
then the release set forth in this Paragraph 3 shall be deemed canceled
effective as of the date of this Agreement and the Existing Partner or the
Existing Indemnitor shall remain obligated under the Loan Documents as though
there had been no such release.

          4.     Conditions Precedent.  Notwithstanding anything to the contrary
in this Agreement, the Lender’s consent to the transfer of the partnership
interests and the other transactions described herein are subject to the
following conditions precedent:

 

          (a)     The due execution and delivery of this Agreement;

 

 

 

          (b)     The due execution and delivery by the New Partners and the New
Indemnitors of the Guaranty and the Environmental Indemnity Agreement, each in
substantially the same form as executed by the Existing Partners or the Existing
Indemnitor in connection with the Loan;

3

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

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

 

          (c)     Upon the closing of the Interest Transfer to the New Partners,
the Borrower is in compliance with the provisions of Section 10.4 of the
Security Instrument, as amended hereby, and Section 5.01 of the Credit Agreement
dated as of September 28, 1998 between the Borrowers and the Original Lender
(the “Credit Agreement”);

 

 

 

          (d)     The Lender shall have received such legal opinions as may be
reasonably requested by the Lender in connection with the Interest Transfer,
including an enforceability, authorization and organization legal opinion and a
non-consolidation legal opinion;

 

 

 

          (e)     The Existing Partners or the Existing Indemnitor pay the
Lender, concurrently with the closing of the transfer of the Membership
Interest, all out-of-pocket costs and expenses, including, without limitation,
the transaction fee equal to 1.0% of the outstanding principal balance of the
Loan, which is required to be paid by the Existing Partners or the Existing
Indemnitor in consideration of the consent to the Interest Transfer and to the
Assumption, reasonable attorneys’ fees incurred by the Lender in connection with
the Interest Transfer and the consummation of the other transactions described
herein (this paragraph does not affect any separate agreement concerning such
fees and expenses between Existing Partners and New Partners);

 

 

 

          (f)     The Borrower shall have provided evidence satisfactory to the
Lender that the Borrower has fully satisfied the existing mezzanine loan in the
amount of $10,000,000.00 (the “Mezzanine Loan”), which Mezzanine Loan is secured
by the beneficial interests in the Existing Partners; and

 

 

 

          (g)     The Borrower and Mid-America Apartments, L.P., a Tennessee
limited partnership (the “Property Manager”) shall have executed and delivered
that certain Assignment of Management Agreement, Consent and Agreement of
Manager dated of even date herewith.

          5.     Representations and Warranties of the Existing GP and the
Existing Indemnitor.  As an inducement for the Lender to grant the consent
herein provided, the Existing GP and the Existing Indemnitor represent and
warrant to the Lender as follows:

 

          (a)     As of the date hereof, no Event of Default (as such term is
defined in the Security Instrument), or to its knowledge, any event which with
the giving of notice or lapse of time, or both, would constitute an Event of
Default, exists under the Loan Documents;

 

 

 

          (b)     There are no setoffs, defenses, or counterclaims on the part
of the Borrower to the payment or performance of the obligations under the Loan
Documents.

4

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

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

 

          (c)     They do not have any knowledge that any of the
representations, warranties and certifications made by the Borrower in paragraph
7 below are not true and correct. 

 

 

 

          The Existing GP or the Existing Indemnitor understand and intend that
the Lender will rely on the representations and warranties contained in this
paragraph 5.

          6.     Representations and Warranties of the Borrower, New GP or the
New Indemnitors.  As an inducement for the Lender to grant the consent herein
provided, the New GP and the New Indemnitors represent and warrant to the Lender
as follows:

 

          (a)     Upon the closing of the Interest Transfer, the representations
and warranties contained in the Loan Documents shall be true and correct;

 

 

 

          (b)     The New GP is a corporation duly formed, validly existing, and
in good standing under the laws of the State of Delaware and is qualified to do
business in the state of Texas, and the New LP is a limited partnership duly
formed, validly existing and in good standing under the laws of the State of
Tennessee; and

 

 

 

          (c)     All financial statements of the New Partners and the New
Indemnitors heretofore given and hereafter to be given to the Lender are and
will be true and complete in all respects as of their respective dates and
prepared in accordance with generally accepted accounting principles
consistently applied, and fairly represent the financial conditions of the
business or persons to which they pertain, and no materially adverse change has
occurred in the financial conditions reflected therein since the respective
dates thereof.

 

 

 

          (d)     The financial statements of the New Indemnitors furnished to
the Lender pursuant to the request for consent to the Interest Transfer reflect
in each case a positive net worth as of the date thereof.  The financial
condition of the New Indemnitors has not significantly deteriorated from that
reflected in the most recently provided financial statements. 

 

 

 

          (e)     The financial statements of the Borrower (and those of its
principals) furnished to the Lender pursuant to the request for consent to the
Interest Transfer and the Assumption, reflect in each case a positive net worth
as of the date thereof.

 

 

 

          (f)     After the Interest Transfer and the Assumption, New GP will
cause  Borrower to have sufficient working capital, including cash flow from the
Mortgaged Property, not only to adequately maintain the Mortgaged Property, but
also to pay all of the Borrower’s outstanding debts as they come due.  All
closing funds are contributed as a capital contribution and are not secured,
directly or indirectly, by an interest in the Borrower or any other collateral
assigned to the Lender.

5

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

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

 

          They do not have any knowledge that any of the representations,
warranties and certifications made by the Borrower in paragraph 7 below are not
true and correct. 

          The New GP and the New Indemnitors agree that the foregoing
representations and warranties shall be binding upon the New GP and the New
Indemnitors and that the falsity or inaccuracy of any of the foregoing
representations and warranties in any material respect shall constitute an
“Event of Default” pursuant to the Security Instrument and the other Loan
Documents that arises after the date of this Agreement.

          7.     Representations of the Borrower.  The Borrower acknowledges,
represents, certifies and warrants to the Lender as of the date of this
Agreement that:

 

          (a)  As of October 29, 2004, the Note has an unpaid principal balance
as of the date of this Agreement, of $10,668,026.28 and prior to default bears
interest at the rate of 6.9825% per annum, subject to adjustment as set forth in
the Security Instrument. There is presently a balance of $375,755.04 in the tax
escrow account, a balance of $0.00 in the insurance escrow account, a balance of
$20,658.03 in the replacement reserves escrow account, and a balance of
$37,526.32 in the reserves escrow account, maintained by the Lender in
connection with the Loan. 

 

 

 

          (b)  The Note requires that monthly payments of principal and interest
in the amount of $77,133.43 be made on or before the first day of each month,
continuing to September 28, 2008, the Maturity Date (as such term is defined in
the Note), at which time the balance of said principal sum and all accrued but
unpaid interest shall be due and payable, pursuant to the terms and conditions
of the Security Instrument.

 

 

 

          (c)  The Security Instrument is a valid first lien on the Mortgaged
Property for the full unpaid principal amount of the Loan and all other amounts
as stated in the Loan Documents.

 

 

 

          (d)  There are no defenses, offsets or counterclaims to the Note, the
Security Instrument or the other Loan Documents.

 

 

 

          (e)  There are no defaults by the Borrower under the provisions of the
Note, the Security Instrument or the other Loan Documents, nor are there any
conditions which with the giving of notice or the passage of time or both may
constitute a default by the Borrower under the provisions of the Note, the
Security Instrument or the other Loan Documents.

 

 

 

          (f)  All provisions of the Note, the Security Instrument and the other
Loan Documents are valid, in full force and effect and enforceable in accordance
with their terms.

 

 

 

          (g)  Except Permitted Encumbrances and other matters permitted by the
Security Instrument, there are no subordinate liens of any kind covering or
relating to the Mortgaged Property, nor are there any recorded mechanics liens
or liens for unpaid taxes or assessments encumbering the Mortgaged Property, nor
has notice of a lien or notice of intent to file a lien been received that has
not been resolved.  There are not presently pending any special assessments
against the Mortgaged Property or any part thereof.

6

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

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

 

          (h)  Except as set forth in the Disclosure Schedule (as defined in the
Security Instrument) attached to the Security Instrument, the Mortgaged Property
and the Improvements (as defined in the Security Instrument) and the current
intended use thereof by Borrower comply in all material respects with all
applicable restrictive covenants, zoning ordinances, subdivision and building
codes, flood disaster laws, health and environmental laws and regulations and
all other ordinances, orders or requirements issued by any state, federal or
municipal authorities having or claiming jurisdiction over the Mortgaged
Property.  The Mortgaged Property and Improvements do not require any rights
over, or restrictions against, other property in order to comply with any of the
aforesaid governmental ordinances, orders or requirements other than those
easements in place and insured by the title insurance policy delivered to
Original Lender on the origination date of the Loan.  Borrower possess all
franchises, patents, copyrights, trademarks, trade names, licenses and permits
(the “Licenses”) necessary for the conduct of its business substantially as now
conducted, all fees due and payable in connection with such Licenses have been
paid and Borrower’s operation of the Mortgaged Property complies with such
Licenses.

 

 

 

          (i)  As of the date of this Agreement, the Mortgaged Property is free
from unrepaired damage caused by fire, flood, accident or other casualty; all
insurance required by the terms of the Security Instrument is in full force and
effect and none of the premiums payable therefore have been, nor at any time in
the future will be financed.

 

 

 

          (j)  The Borrower has furnished to the Lender all insurance policies
and certificates required pursuant to the Loan Documents.

 

 

 

          (k)  No bankruptcy, reorganization or insolvency proceedings are
pending or contemplated either by Borrower or, to the best knowledge of
Borrower, against Borrower (or, if Borrower is a partnership or a limited
liability company, any of its general partners or members) or by or against any
endorser or cosigner of the Note or any portion of the Obligations (as defined
in the Security Instrument), or any guarantor or indemnitor under any guaranty
or indemnity agreement executed in connection with the Note or the loan
evidenced thereby and secured by the Security Instrument.

 

 

 

          (l)  As of the date of this Agreement, no part of the Mortgaged
Property or the Improvements has been taken in a condemnation, eminent domain or
like proceeding nor is any such proceeding pending or, to Borrower’s knowledge
and belief, threatened or contemplated.

 

 

 

          (m)  No person, party, firm or corporation has any possessory interest
in the Mortgaged Property or right to occupy the same except under and pursuant
to the provisions of any existing leases by and between tenants and the
Borrower.  To the knowledge or Borrower, true and complete copies of all such
leases have been previously disclosed to the Original Lender and/or the Lender.

7

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

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

 

          (n)     The Borrower does not own any real property or assets other
than the Mortgaged Property and does not operate any business other than the
management and operation of the Mortgaged Property.

 

 

 

          (o)     The Borrower has filed all federal, state, county and
municipal tax returns required to have been filed by the Borrower.

 

 

 

          (p)     Except as set forth in the Disclosure Schedule attached to the
Security Instrument, there are no judicial, administrative, mediation or
arbitration actions, suits or proceedings pending or, to the best of Borrower’s
knowledge, threatened against or affecting Borrower (or, if Borrower is a
partnership or a limited liability company, any of its general partners or
members) or the Mortgaged Property which, if adversely determined, would
materially impair either the Mortgaged Property or Borrower’s ability to perform
the covenants or obligations required to be performed under the Loan Documents.

 

 

 

          (q)     Schedule 1 attached hereto accurately describes all of the
agreements memorializing any rights or obligations of Lender or the Borrower
with respect to the Loan, and none of such agreements have been modified or
terminated except as set forth in the documents described in Schedule 1.

The Borrower understands and intends that the Lender will rely upon the
acknowledgments, representations, certifications and warranties contained
herein.

          8.          Lender Acknowledgment. Lender represents and warrants to
New Partners and Existing Partners as of the date of this Agreement, that Lender
has no actual direct knowledge that any of the acknowledgments, representations
and warranties made by Borrower in paragraphs 7(a) and 7(b) above are not true
and correct. However, Lender is not waiving and does not hereby waive any
existing defaults if any in fact exist and nothing herein is intended to be nor
shall it be construed to be a waiver of any existing defaults, material or
immaterial, which may in fact exist. New Partners acknowledge and agree that the
a breach of the acknowledgements, representations and warranties made by
Borrower shall not in any way constitute a defense or give rise to any defense
or right of offset, abatement, diminution or rescission as between Lender and
New Partners. As used in this paragraph, “actual knowledge” means the actual
state of mind of the person or persons directly responsible for the processing
of the Borrower’s request for consent to the Interest Transfer and does not
include any implied, constructive or imputed knowledge.

8

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

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

          9.          COMPLETE RELEASE.  THE BORROWER, THE EXISTING GENERAL
PARTNER, THE EXISTING LIMITED PARTNER, THE EXISTING INDEMNITORS, THE NEW GENERAL
PARTNER, THE NEW LIMITED PARTNER AND THE NEW INDEMNITORS HEREBY JOINTLY AND
SEVERALLY, UNCONDITIONALLY AND IRREVOCABLY RELEASE AND FOREVER DISCHARGE
ORIGINAL LENDER, THE LENDER AND THE SERVICER, AND THEIR RESPECTIVE SUCCESSORS,
ASSIGNS, AGENTS, DIRECTORS, OFFICERS, EMPLOYEES, AND ATTORNEYS, AND EACH CURRENT
OR SUBSTITUTE TRUSTEE, IF ANY, UNDER THE SECURITY INSTRUMENT (COLLECTIVELY, THE
“INDEMNITEES”) FROM ALL CLAIMS, AS DEFINED BELOW.  THE BORROWER, THE EXISTING
GENERAL PARTNER, THE EXISTING LIMITED PARTNER AND THE EXISTING INDEMNITORS
JOINTLY AND SEVERALLY AGREE TO INDEMNIFY INDEMNITEES, AND DEFEND AND HOLD THEM
HARMLESS FROM ANY AND ALL CLAIMS, LOSSES, CAUSES OF ACTION, COSTS AND EXPENSES
OF EVERY KIND OR CHARACTER INCURRED BY OR ASSERTED AGAINST INDEMNITEES IN
CONNECTION WITH THE CLAIMS, THE  INTEREST TRANSFER AND ASSUMPTION OR THE BREACH
BY THE BORROWER, THE EXISTING GENERAL PARTNER, THE EXISTING LIMITED PARTNER OR
THE EXISTING INDEMNITORS OF THE LOAN DOCUMENTS, AS AMENDED HEREIN, BUT ONLY TO
THE EXTENT THAT SUCH CLAIMS, LOSSES, CAUSES OF ACTION, COSTS AND EXPENSES ARISE
OUT OF OR ARE IN ANY WAY CONNECTED WITH OR RESULT FROM THE ACTS, ACTIONS OR
OMISSIONS OF THE BORROWER (ARISING PRIOR TO THE DATE HEREOF), THE EXISTING
GENERAL PARTNER, THE EXISTING LIMITED PARTNER OR THE EXISTING INDEMNITORS AND TO
THE EXTENT THE BORROWER, THE EXISTING GENERAL PARTNER, THE EXISTING LIMITED
PARTNER AND EXISTING INDEMNITORS ARE LIABLE UNDER THE LOAN DOCUMENTS, AS AMENDED
BY THIS AGREEMENT.  THE BORROWER, THE NEW GENERAL PARTNER, THE NEW LIMITED
PARTNER AND THE NEW INDEMNITORS JOINTLY AND SEVERALLY AGREE TO INDEMNIFY
INDEMNITEES, AND DEFEND AND HOLD THEM HARMLESS FROM ANY AND ALL CLAIMS, LOSSES,
CAUSES OF ACTION, COSTS AND EXPENSES OF EVERY KIND OR CHARACTER INCURRED BY OR
ASSERTED AGAINST THE INDEMNITEES IN CONNECTION WITH THE CLAIMS, THE INTEREST
TRANSFER AND THE ASSUMPTION OR THE BREACH BY THE BORROWER, THE NEW GENERAL
PARTNER, THE NEW LIMITED PARTNER OR THE NEW INDEMNITORS OF THE LOAN DOCUMENTS,
AS AMENDED HEREIN, BUT ONLY TO THE EXTENT THAT SUCH CLAIMS, LOSSES, CAUSES OF
ACTION, COSTS AND EXPENSES ARISE OUT OF OR ARE IN ANY WAY CONNECTED WITH OR
RESULT FROM THE ACTS, ACTIONS OR OMISSIONS OF THE BORROWER (ARISING ON OR AFTER
THE DATE HEREOF), THE NEW GENERAL PARTNER, THE NEW LIMITED PARTNER OR THE NEW
INDEMNITORS AND TO THE EXTENT THE BORROWER, THE NEW GENERAL PARTNER, THE NEW
LIMITED PARTNER AND NEW INDEMNITORS ARE LIABLE UNDER THE LOAN DOCUMENTS.

9

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

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

AS USED IN THIS AGREEMENT, THE TERM “CLAIMS” SHALL MEAN ANY AND ALL POSSIBLE
CLAIMS, DEMANDS, ACTIONS, FEES, COSTS, EXPENSES AND LIABILITIES WHATSOEVER,
KNOWN OR UNKNOWN, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART, ON OR
BEFORE THE DATE OF THIS AGREEMENT, WHICH THE BORROWER, THE EXISTING GENERAL
PARTNER, THE EXISTING LIMITED PARTNER, THE EXISTING INDEMNITORS, THE NEW GENERAL
PARTNER, THE NEW LIMITED PARTNER AND THE NEW INDEMNITORS, OR ANY OF THEIR
RESPECTIVE PARTNERS, LIMITED PARTNERS, MEMBERS, OFFICERS, DIRECTORS,
SHAREHOLDERS, AGENTS OR EMPLOYEES, MAY NOW OR HEREAFTER HAVE AGAINST THE
INDEMNITEES, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT,
TORT, VIOLATION OF LAWS, OR REGULATIONS, OR OTHERWISE, ARISING OUT OF OR
RELATING TO THE LOAN OR ANY OF THE LOAN DOCUMENTS, INCLUDING, WITHOUT
LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR
RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE THERETO AND
ANY LOSS, COST OR DAMAGE, OF ANY KIND OR CHARACTER, ARISING OUT OF OR IN ANY WAY
CONNECTED WITH OR IN ANY WAY RESULTING FROM THE ACTS, ACTIONS OR OMISSIONS OF
INDEMNITEES, INCLUDING ANY REQUIREMENT THAT THE LOAN DOCUMENTS BE MODIFIED AS A
CONDITION TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, ANY CHARGING,
COLLECTING OR CONTRACTING FOR PREPAYMENT PREMIUMS, TRANSFER FEES, OR ASSUMPTION
FEES, ANY BREACH OF FIDUCIARY COMMITMENT, UNDUE INFLUENCE, DURESS, ECONOMIC
COERCION, VIOLATION OF ANY FEDERAL OR STATE SECURITIES OR BLUE SKY LAWS OR
REGULATIONS, CONFLICT OF INTEREST, BAD FAITH, MALPRACTICE, VIOLATIONS OF THE
RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT, INTENTIONAL OR NEGLIGENT
INFLICTION OF MENTAL OR EMOTIONAL DISTRESS, TORTIOUS INTERFERENCE WITH
CONTRACTUAL RELATIONS, TORTIOUS, INTERFERENCE WITH CORPORATE GOVERNANCE OR
PROSPECTIVE BUSINESS ADVANTAGE, BREACH OF CONTRACT, DECEPTIVE TRADE PRACTICES,
LIBEL, SLANDER, CONSPIRACY OR ANY CLAIM FOR WRONGFULLY ACCELERATING THE NOTE OR
WRONGFULLY ATTEMPTING TO FORECLOSE ON ANY COLLATERAL RELATING TO THE NOTE BUT IN
EACH CASE ONLY TO THE EXTENT PERMITTED BY APPLICABLE LAW.  THE BORROWER, THE
EXISTING GENERAL PARTNER, THE EXISTING LIMITED PARTNER, THE EXISTING
INDEMNITORS, THE NEW GENERAL PARTNER, THE NEW LIMITED PARTNER AND THE NEW
INDEMNITORS  AGREE THAT THE LENDER HAS NO FIDUCIARY OR SIMILAR OBLIGATIONS TO
ANY OF SUCH PARTIES AND THAT THEIR RELATIONSHIP IS STRICTLY THAT OF CREDITOR AND
DEBTOR.  THIS RELEASE IS ACCEPTED BY THE LENDER PURSUANT TO THIS AGREEMENT AND
SHALL NOT BE CONSTRUED AS AN ADMISSION OF LIABILITY ON THE PART OF ANY PARTY
HERETO.  EACH OF THE BORROWER, THE EXISTING GENERAL PARTNER, THE EXISTING
LIMITED PARTNER, THE EXISTING INDEMNITORS, THE NEW GENERAL PARTNER, THE NEW
LIMITED PARTNER AND THE NEW INDEMNITORS HEREBY REPRESENTS AND WARRANTS THAT IT
IS THE CURRENT LEGAL AND BENEFICIAL OWNER OF ITS RESPECTIVE CLAIMS, IF ANY,
RELEASED BY IT HEREBY AND HAS NOT ASSIGNED, PLEDGED OR CONTRACTED TO ASSIGN OR
PLEDGE ANY SUCH CLAIMS TO ANY OTHER PERSON.

10

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

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

          10.          No Novation. The execution and delivery of this Agreement
and the other documents required herein will not be interpreted or construed as,
and in fact does not constitute, a novation, payment, or satisfaction of all or
any portion of the Loan or any other obligations pursuant to the Loan
Documents.  The Loan will continue to be secured by the Security Instrument and
the other Loan Documents, without change in nature, amount, or priority.

          11.          Counterparts.  This Agreement may be executed in multiple
counterparts and using multiple signature pages, and shall be binding and
enforceable at such time as each party has executed and delivered a counterpart
of this Agreement.  The signature of any party to a counterpart of this
Agreement shall bind such party to the same extent as if all parties executed a
single original hereof.

          12.          Interpretation.  No provision of this Agreement shall be
construed against or interpreted to the disadvantage of any party to this
Agreement by any court or other governmental or judicial authority by reason of
such party’s having or being deemed to have structured or dictated such
provision.

          13.          Governing Law.  This Agreement shall be construed
according to and governed by the laws of the jurisdiction(s) which are specified
by the Security Instrument.  In the event the Security Instrument does not
specifically state what jurisdictions laws govern, this Agreement shall be
construed according to and governed by the laws in which the Mortgaged Property
is located without regard to its conflicts of law principles.

          14.          Consent Not A Waiver of Any Other Rights.  This Agreement
and the consent evidenced hereby do not waive any rights under applicable laws
and regulations and under the Security Instrument with respect to any condition
or provision other than the Interest Transfer and the Assumption.  This
Agreement is not a waiver of any other requirement of the Loan and related
documents and applies only to the specific consent and releases granted herein. 
The granting of such consent and releases and the execution of this Agreement in
no way obligates the Lender, the Servicer or any subsequent holder of the Note,
to grant any future consents or waivers nor does it establish in any way a
pattern or practice of dealing that the Borrower, the Existing General Partner,
the Existing Limited Partner, the Existing Indemnitors, the New General Partner,
the New Limited Partner and the New Indemnitors may rely upon in seeking any
other consent or waiver.

          15.          Amendment of Security Instrument.  Section 6.3 of the
Security Instrument is hereby amended by deleting all references to permitted
transfers of interests among affiliates of the Borrower and by deleting Section
6.3(b)(iv).  All other provisions of the Security Instrument shall remain in
full force and effect following the Interest Transfer.

[THE REMAINDER OF THIS PAGE WAS LEFT BLANK INTENTIONALLY]

11

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

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

          IN WITNESS WHEREOF, the parties have executed this Agreement on the
day and year first above written, with the intention that this Agreement take
effect as an instrument under seal.

 

BORROWER:

 

 

 

JEFFERSON AT SUNSET VALLEY, L.P.,
a Texas limited partnership

 

 

 

 

By:

JPI Portfolio I GP1 LLC, a
Texas limited liability company,
its general partner

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

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

 

 

Name:

 

 

 

 

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

 

 

Title:

 

 

 

 

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

STATE of ___________

COUNTY of ___________

BEFORE ME, _________________ on this day personally appeared ______________,
known to me (or proved to me on the oath of ___________________) to be the
person whose name is subscribed to the foregoing instrument and acknowledged to
me that he/she executed the same for the purposes and consideration therein
expressed..

          (SEAL) Given under my hand and seal of office ____ day of ___________,
A.D., 2004.

 

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

 

Notary Public

 

My Commission Expires:

 

 

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

[SIGNATURES CONTINUED ON NEXT PAGE]

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

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

 

EXISTING GENERAL PARTNER:

 

 

 

JPI PORTFOLIO I GP1 LLC, a Texas
limited liability company

 

 

 

 

By:

Carmil Capital Corporation, a
Texas corporation, its sole
member

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

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

 

 

Name:

 

 

 

 

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

 

 

Title:

 

 

 

 

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

STATE of ___________

COUNTY of ___________

BEFORE ME, _________________ on this day personally appeared ______________,
known to me (or proved to me on the oath of ___________________) to be the
person whose name is subscribed to the foregoing instrument and acknowledged to
me that he/she executed the same for the purposes and consideration therein
expressed..

          (SEAL) Given under my hand and seal of office ____ day of ___________,
A.D., 2004.

 

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

 

Notary Public

 

My Commission Expires:

 

 

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

[SIGNATURES CONTINUED ON NEXT PAGE]

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

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

 

EXISTING LIMITED PARTNER:

 

 

 

JPI PORTFOLIO I, L.P., a Texas limited
partnership

 

 

 

 

By:

JPI Portfolio I GP2 LLC, a
Texas limited liability company,
its general partner

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

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

 

 

Name:

 

 

 

 

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

 

 

Title:

 

 

 

 

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

STATE of ___________

COUNTY of ___________

BEFORE ME, _________________ on this day personally appeared ______________,
known to me (or proved to me on the oath of ___________________) to be the
person whose name is subscribed to the foregoing instrument and acknowledged to
me that he/she executed the same for the purposes and consideration therein
expressed..

          (SEAL) Given under my hand and seal of office ____ day of ___________,
A.D., 2004.

 

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

 

Notary Public

 

My Commission Expires:

 

 

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

[SIGNATURES CONTINUED ON NEXT PAGE]

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

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

 

EXISTING INDEMNITOR:

 

 

 

JPI INVESTMENT COMPANY, L.P., a
Texas limited partnership

 

 

 

 

By:

JPI Multifamily Investments,
L.P., a Delaware limited
partnership, its general partner

 

 

 

 

 

By:

New GP LLC, a Delaware
limited liability company,
its general partner

 

 

 

 

 

 

 

 

By:

 

 

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

 

 

 

Name:

 

 

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

 

 

 

Title:

 

 

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

 

 

 

STATE of

 

 

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

 

 

COUNTY of

 

 

 

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

 

 

BEFORE ME, _________________ on this day personally appeared ______________,
known to me (or proved to me on the oath of ___________________) to be the
person whose name is subscribed to the foregoing instrument and acknowledged to
me that he/she executed the same for the purposes and consideration therein
expressed..

          (SEAL) Given under my hand and seal of office ____ day of ___________,
A.D., 2004.

 

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

 

Notary Public

 

My Commission Expires:

 

 

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

[SIGNATURES CONTINUED ON NEXT PAGE]

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

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

 

NEW GP:

 

 

 

MAC of Delaware, Inc., a Delaware
corporation

 

 

 

By:

 

 

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

 

Name: John A. Good

 

Title:  Assistant Secretary

 

 

STATE of Tennessee

 

 

 

COUNTY of Shelby

 

 

BEFORE ME, _________________ on this day personally appeared John A. Good, known
to me (or proved to me on the oath of ___________________) to be the person
whose name is subscribed to the foregoing instrument and acknowledged to me that
he executed the same for the purposes and consideration therein expressed.

          (SEAL) Given under my hand and seal of office ____ day of ___________,
A.D., 2004.

 

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

 

Notary Public

 

My Commission Expires:

 

 

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

[SIGNATURES CONTINUED ON NEXT PAGE]

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

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

 

NEW LP:

 

 

 

MID-AMERICA APARTMENTS, L.P., a
Tennessee limited partnership

 

 

 

 

By:

Mid-America Apartment Communities,
Inc., a Tennessee corporation,
its general partner

 

 

 

 

 

By:

 

 

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

 

 

         Name:  Simon R.C. Wadsworth

 

         Title:  Chief Financial Officer and Executive
         Vice President

 

 

STATE of Tennessee

 

 

 

COUNTY of Shelby

 

 

BEFORE ME, _________________ on this day personally appeared Simon R.C.
Wadsworth, known to me (or proved to me on the oath of ___________________) to
be the person whose name is subscribed to the foregoing instrument and
acknowledged to me that he/she executed the same for the purposes and
consideration therein expressed..

          (SEAL) Given under my hand and seal of office ____ day of ___________,
A.D., 2004.

 

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

 

Notary Public

 

My Commission Expires:

 

 

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

[SIGNATURES CONTINUED ON NEXT PAGE]

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

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

 

NEW INDEMNITOR:

 

 

 

MID-AMERICA APARTMENTS OF TEXAS,
L.P., a Texas limited partnership

 

 

 

 

By:

MAC of Delaware, Inc., a Delaware
corporation, its general partner

 

 

 

 

 

By:

 

 

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

 

 

      Name:  John A. Good

 

      Title:  Assistant Secretary

 

 

STATE of Tennessee

 

 

 

COUNTY of Shelby

 

 

BEFORE ME, _________________ on this day personally appeared John A. Good, known
to me (or proved to me on the oath of ___________________) to be the person
whose name is subscribed to the foregoing instrument and acknowledged to me that
he executed the same for the purposes and consideration therein expressed.

          (SEAL) Given under my hand and seal of office ____ day of ___________,
A.D., 2004.

 

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

 

Notary Public

 

My Commission Expires:

 

 

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

[SIGNATURES CONTINUED ON NEXT PAGE]

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

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

 

NEW INDEMNITOR:

 

 

 

MID-AMERICA APARTMENTS, L.P., a
Tennessee limited partnership

 

 

 

 

By:

Mid-America Apartment Communities,
Inc., a Tennessee corporation,
its general partner

 

 

 

 

 

 

 

 

By:

 

 

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

 

     Name:  Simon R. C. Wadsworth

 

     Title:

Chief Financial Officer and
Executive Vice President

 

 

STATE of Tennessee

 

 

 

COUNTY of Shelby

 

 

BEFORE ME, _________________ on this day personally appeared Simon R.C.
Wadsworth, known to me (or proved to me on the oath of ___________________) to
be the person whose name is subscribed to the foregoing instrument and
acknowledged to me that he executed the same for the purposes and consideration
therein expressed.

          (SEAL) Given under my hand and seal of office ____ day of ___________,
A.D., 2004.

 

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

 

Notary Public

 

My Commission Expires:

 

 

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

[SIGNATURES CONTINUED ON NEXT PAGE]

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

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

 

NEW INDEMNITOR:

 

 

 

MID-AMERICA APARTMENT COMMUNITIES,
INC., a Tennessee corporation

 

 

 

By:

 

 

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

 

Name:  Simon R. C. Wadsworth

 

Title:

Chief Financial Officer and
Executive Vice President

 

 

STATE of Tennessee

 

 

 

COUNTY of Shelby

 

 

BEFORE ME, _________________ on this day personally appeared Simon R.C.
Wadsworth, known to me (or proved to me on the oath of ___________________) to
be the person whose name is subscribed to the foregoing instrument and
acknowledged to me that he/she executed the same for the purposes and
consideration therein expressed..

          (SEAL) Given under my hand and seal of office ____ day of ___________,
A.D., 2004.

 

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

 

Notary Public

 

My Commission Expires:

 

 

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

[SIGNATURES CONTINUED ON NEXT PAGE]

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

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

 

LENDER:

 

 

 

LaSalle Bank National Association (f/k/a LaSalle
National Bank), as Trustee under that certain
Pooling and Servicing Agreement (the “PSA”) for
Certificateholders of COMM 1999-1 Commercial
Mortgage Pass-Through Certificates

 

 

 

 

By:

ORIX Capital Markets, LLC (f/k/a
Banc One Mortgage Capital
Markets, LLC),  as Servicer pursuant
to the PSA

 

 

 

By:

 

 

 

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

 

 

Name:

 

 

 

 

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

 

 

Title:

 

 

 

 

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

 

 

 

STATE of _______________

 

 

 

COUNTY of _______________

 

 

BEFORE ME, _________________ on this day personally appeared ______________,
known to me (or proved to me on the oath of ___________________) to be the
person whose name is subscribed to the foregoing instrument and acknowledged to
me that he/she executed the same for the purposes and consideration therein
expressed..

          (SEAL) Given under my hand and seal of office ____ day of ___________,
A.D., 2004.

 

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

 

Notary Public

 

My Commission Expires:

 

 

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

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

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

SCHEDULE 1
LOAN DOCUMENT SCHEDULE

1.

Promissory Note dated September 28, 1998 made by the Original Borrower and
payable to the Original Lender, in the stated principal amount of
$11,380,000.00  (together with all addenda, modifications, amendments, riders,
exhibits and supplements thereto, the “Note”).

 

 

2.

Deed of Trust and Security Agreement dated September 28, 1998 made by the
Original Borrower for the benefit of the Original Lender (together with all
addenda, modifications, amendments, riders, exhibits and supplements thereto,
the “Security Instrument”) recorded in the Real Property Records of Travis
County, Texas in Volume 13304 at Page 1813, as assigned by Original Lender to
Lender pursuant to that certain Assignment of Deed of Trust and Security
Agreement recorded in the Real Property Records of Travis County, Texas as
Instrument Number 1999090733.

 

 

3.

Assignment of Leases and Rents dated September 28, 1998 made by the Original
Borrower for the benefit of the Original Lender (together will all addenda,
modifications, amendments, riders, exhibits and supplements thereto, the
“Assignment of Leases and Rents”), recorded in the Real Property Records of
Travis County, Texas in Book 13304 at Page 1886, as assigned by Original Lender
to Lender pursuant to that certain Assignment of Assignment of Leases and Rents
recorded in the Real Property Records of Travis County, Texas as Instrument
Number 1999090732.

 

 

4.

Limited Indemnity Agreement dated September 28, 1998 made by the Existing
Indemnitor for the benefit of the Original Lender (together with all addenda,
modifications, amendments, riders, exhibits and supplements thereto, the
“Guaranty”).

 

 

5.

Environmental Indemnity Agreement dated September 28, 1998 made by Original
Borrower and Existing Indemnitor for the benefit of the Original Lender
(together with all addenda, modifications, amendments, riders, exhibits and
supplements thereto, the “Original Environmental Indemnity Agreement”).

 

 

6.

Subordination Agreement (Management Fees) dated as of September 28, 1998 by and
among JPI Apartment Management, L.P., a Texas limited partnership, Borrower and
Original Lender.

 

 

7.

Cash Management Agreement dated as of September 28, 1998 by and among Borrower,
Original Lender and Midland Loan Services, Inc., as Agent.

 

 

8.

Credit Agreement dated as of September 28, 1998 in the amount of $58,800,000.00
between Borrower, Jefferson Village, L.P. and JPI Coral Springs, L.P., as the
Borrowers, and the Original Lender.

 

 

9.

UCC-1 Financing Statement showing Borrower as the Debtor and Original Lender as
Secured Party and recorded in the Real Property Records of Travis County, Texas
in Book 13304, at Page 1899, as assigned to Lender by UCC-3 Assignment recorded
in the Real Property Records of Travis County, Texas as Document No. 2001022763,
as continued by that certain UCC-3 Continuation Statement recorded in the Real
Property Records of Travis County, Texas as Document No. 2003246925. 

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

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

10.

UCC-1 Financing Statement showing Borrower as the Debtor and Original Lender as
Secured Party and recorded on November 4, 1998 in the Texas Secretary of State
as Document No. 98220946, as assigned to Lender by UCC-3 Assignment filed
December 27, 2000 as Document No. 00-894418, as continued by that certain UCC-3
Continuation Statement filed in the office of the Texas Secretary of State as
Document No. 04-00443911. 

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

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