THIRD AMENDMENT TO THIRD AMENDED AND RESTATED
MASTER CREDIT FACILITY AGREEMENT
(MAA I)

          THIS THIRD AMENDMENT TO THIRD AMENDED AND RESTATED MASTER CREDIT
FACILITY AGREEMENT (the “Amendment”) is effective as of the 1st day of December,
2004, by and among (i) (a) MID-AMERICA APARTMENT COMMUNITIES, INC., a Tennessee
corporation (the “REIT”), (b) MID-AMERICA APARTMENTS, L.P., a Tennessee limited
partnership (“OP”) (the REIT and OP being collectively referred to as
“Borrower”), and (c) MID-AMERICA APARTMENTS OF TEXAS, L.P., a Texas limited
partnership (“MAA of Texas”; MAA of Texas and Borrower being collectively
referred to as the “Borrower Parties”); and (ii) PRUDENTIAL MULTIFAMILY MORTGAGE
INC., a Delaware corporation (“Lender”).

RECITALS

          A.     Borrower Parties and Lender are parties to that certain Amended
and Restated Master Credit Facility Agreement dated as of the 22nd day of
August, 2002, by and between Borrower and Lender, which was amended and restated
pursuant to that certain Second Amended and Restated Master Credit Facility
Agreement dated as of December 10, 2003, which has been further amended and
restated pursuant to that certain Third Amended and Restated Master Credit
Facility Agreement dated as of March 30, 2004, which has been further amended
pursuant to that certain First Amendment to Third Amended and Restated Master
Credit Facility Agreement dated as of March 31, 2004, which has been further
amended pursuant to that certain Second Amendment to Third Amended and Restated
Master Credit Facility Agreement dated as of August 3, 2004  (as amended from
time to time, the “Master Agreement”).

          B.     All of the Lender’s right, title and interest in the Master
Agreement and the Loan Documents executed in connection with the Master
Agreement or the transactions contemplated by the Master Agreement have been
assigned to Fannie Mae pursuant to that certain Assignment of Collateral
Agreements and Other Loan Documents, dated as of August 22, 2002 and that
certain Assignment of Collateral Agreements and Other Loan Documents, dated as
of December 10, 2003 and that certain Assignment of Collateral Agreement and
Other Loan Documents dated as of March 31, 2004 (collectively, the
“Assignment”).  Fannie Mae has not assumed any of the obligations of the Lender
under the Master Agreement or the Loan Documents as a result of the Assignment. 
Fannie Mae has designated the Lender as the servicer of the Loans contemplated
by the Master Agreement. Lender is entering into this Amendment in its capacity
as servicer of the loan set forth in the Master Agreement.

          C.     Pursuant to the Master Agreement, Borrower has arranged for
various Hedges to be in place and has entered into various ISDA Master
Agreements by and among Borrower Parties and the swap providers signatory
thereto (collectively, the “Counterparty”) (together with all schedules thereto,
the “Hedge Documents”), pursuant to which the Counterparty agreed to provide
interest rate protection for the Borrower Parties.

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          D.     Fannie Mae has agreed to credit enhance certain obligations
with respect to any Credit Enhanced Hedge (as defined below) in consideration
for Borrower’s payment of the Credit Enhancement Fee (as defined below).

          E.     Borrower and Lender are executing this Amendment pursuant to
the Master Agreement to provide (i)  for Borrower’s payment of the Credit
Enhancement Fee and (ii) that the Collateral under the Master Agreement also
secure any liability Fannie Mae may incur as a result of its credit enhancement
of the Credit Enhanced Hedge.

          NOW, THEREFORE, the parties hereto, in consideration of the mutual
promises and agreements contained in this Amendment and the Master Agreement,
and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, hereby agree as follows:

          Section 1.     Credit Enhancement.

          (a)     The following new definitions are hereby added to the Master
Agreement:

 

          “Credit Enhancement Fee” means the fee due from Borrower in
consideration for Fannie Mae’s providing credit enhancement of the Credit
Enhanced Hedges, as more particularly set forth on Schedule II (“Credit
Enhancement Fee Schedule”) attached to this Agreement.

 

 

 

          “Credit Enhanced Hedge” means any Hedge executed by Borrower and
assigned to Lender which Fannie Mae has agreed to credit enhance.

 

 

 

(b)     A new Section 16.07(g) is hereby added to the Master Agreement as
follows:

 

 

 

 

 

(g)     With respect to each applicable Credit Enhanced Hedge, Borrower shall
pay the Credit Enhancement Fee monthly, in arrears, on the first Business Day
following each end of the month during the Term of this Agreement until such
time that Fannie Mae no longer credit enhances such Hedge or until the Credit
Enhancement Fee is no longer due and payable, except that the Credit Enhancement
Fee for the last month during the Term of this Agreement shall be paid on the
last day of the Term of this Agreement.

 

 

 

 

(c)     The Schedule II attached hereto is hereby added to the Master Agreement
as if it were attached thereto in its entirety.

          Section 2.    Obligations Secured.  The Collateral under the Master
Agreement shall also secure any and all liability Fannie Mae may incur in
connection with Fannie Mae’s agreement to provide credit enhancement of the
Credit Enhanced Hedge, including but not limited to:

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          (a)     any and all amounts provided by Fannie Mae under the credit
enhancement;    

          (b)     any and all amounts to be paid by the Borrower Parties to
replenish fully any reserve funds required under the Credit Enhanced Hedge; 

          (c)     any and all reasonable fees, costs, charges and expenses
(including the fees and expenses of attorneys, accountants and other experts)
which Fannie Mae may pay or incur in connection with any payment under any of
the Credit Enhanced Hedge, including payments of any fees and charges in
connection with any accounts established to facilitate payments under any Hedge
Document, or the performance of Fannie Mae’s obligations under any Hedge
Document;

          (d)     the amount of any fees, costs, or charges or expenses
(including the fees and expenses of attorneys, accountants and other experts)
incurred by Fannie Mae in connection with the administration or enforcement of
or preservation of rights or remedies under this Agreement or any of the Loan
Documents or in connection with the foreclosure upon, sale of or other
disposition of any security granted pursuant to the Loan Documents;

          (e)     any payments or advances made by Fannie Mae on behalf of any
Borrower pursuant to any of the Loan Documents;

          (f)     all costs and expenses incurred in connection with or related
to the execution and delivery of each Hedge Document, any tax or governmental
charge imposed in connection with the execution and delivery of each Hedge
Document and the reasonable fees and disbursements of Fannie Mae’s counsel and
accountants, including fees and expenses relating to any (a) amendments,
consents or waivers to this Amendment or any of the Loan Documents (whether or
not any such amendments, consents or waivers are entered into), (b) requests to
evaluate any substitute or additional Collateral or the release of Collateral,
(c) collection, disbursement or application of insurance or condemnation awards,
proceeds, damages or other payments including, without limitation, all costs
incurred in connection with the application of insurance or condemnation awards
to restore or repair any Mortgaged Property, including reasonable appraiser
fees; and

          (g)     any transfer taxes, documentary taxes, assessments or charges
made by any governmental authority, by reason of the execution, delivery,
filing, recordation, performances or enforcement of any of the Loan Documents;
provided the Borrower Parties will not be obligated to pay any franchise,
excise, estate, inheritance, income, excess profits or similar tax on Fannie
Mae.

          Section 3.     Capitalized Terms.  All capitalized terms used in this
Amendment which are not specifically defined herein shall have the respective
meanings set forth in the Master Agreement.

          Section 4.     Reaffirmation.  The Borrower Parties hereby reaffirm
their obligations under the Agreement.

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          Section 5.      Full Force and Effect.  Except as expressly modified
by this Amendment, all terms and conditions of the Master Agreement shall
continue in full force and effect.

          Section 6.     Counterparts.  This Amendment may be executed in
counterparts by the parties hereto, and each such counterpart shall be
considered an original and all such counterparts shall constitute one and the
same instrument.

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          IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the day and year first above written.

 

BORROWER:

 

 

 

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

 

 

 

 

 

By:

 

 

 

 

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Al Campbell

 

 

Senior Vice President and Treasurer

 

 

 

 

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

 

 

 

By:

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

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

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Al Campbell

 

 

 

Senior Vice President and Treasurer

 

 

 

 

 

 

[Signatures follow on next page]

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

 

 

 

 

 

 

 

By:

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

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Name:

 

 

 

 

 

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Title:

 

 

 

 

 

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LENDER:

 

 

 

 

 

PRUDENTIAL MULTIFAMILY MORTGAGE INC., a
Delaware corporation

 

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

 

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Name:

Sharon D. Singleton

 

 

Title:

Vice President

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SCHEDULE II

Credit Enhancement Fee Schedule

Counter Party

 

Swap Effective
Date

 

Maturity

 

Principal

 

Credit Enhancement Fee

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SunTrust

 

K 6/1/2003

 

6/1/2010

 

50,000,000

 

18 basis points

DeutscheBank

 

U 9/1/2004

 

9/1/2011

 

50,000,000

 

17 basis points

Deutsche Bank

 

U 12/1/2004

 

12/1/2011

 

25,000,000

 

17 basis points

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