Document:

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                                                                    EXHIBIT 10.2

                           SOFTWARE LICENSE AGREEMENT

         This SOFTWARE LICENSE AGREEMENT (as referred to herein, the
"Agreement", and as referred to in other instruments or documents by and between
the parties hereto and/or their respective subsidiaries or affiliates, the
"Amended License Agreement"), by and between CareSouth Home Health Services,
Inc. ("Licensor"), and Amedisys, Inc. ("Amedisys"), effective as of this 1st day
of October, 2001 (the "Effective Date").

                                    RECITALS

         WHEREAS, Licensee currently owns and operates, and in the future may
own and operate additional, Medicare-certified home health agencies
(hereinafter, individually, an "Agency" and collectively, the "Agencies"); and

         WHEREAS, Licensor owns rights in DOS-based and windows-based computer
programs (the "Software") designed to, among other things, provide billing,
payroll and collections services for the Agencies; and

         WHEREAS, Licensee desires to obtain a non-exclusive, non-transferable
license to use the Software in its Agencies, and limited rights (1) to
sublicense the Software to third parties and (2) to transfer such license to, or
use such license rights in connection with, a joint venture in which Licensee
participates, all subject to the terms and conditions of this Agreement;

         NOW, THEREFORE, in consideration of the mutual promises set forth
herein, and for other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, Licensor and Licensee agree as
follows:

                                    AGREEMENT

                                 I. DEFINITIONS

1.1 "Agencies" means each of the agencies identified in Schedule A hereto.

1.2 "Agreement" means this Agreement and the Schedules and Exhibits attached
hereto.

1.3 "Documentation" means the user and system documentation set forth in
Schedule B for use with the Software.

1.4 "Error" means a material failure of the Software to function in conformity
with its specifications.

1.5 "Licensee" means Amedisys and each of its Agencies, whether now or hereafter
owned and operated.

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1.6 "License Fees" means the fees Licensee shall pay as specified in Schedule C
hereto.

1.7 "Location" means each of the Agency Locations specified in Schedule A hereto
(as such Schedule shall be amended or modified from time to time to reflect the
addition or deletion of Agency Locations).

1.8 "Software" means Licensor's Software and related programs and utilities
specified in Schedule B and all versions, copies, upgrades, improvements,
modifications, new versions and/or maintenance releases made by Licensor or
Licensee.

1.9 "Specifications" means any current product specifications published by
Licensor or Licensee with respect to the Software.

                                   II. LICENSE

2.1 In accordance with the terms herein, Licensor grants to Licensee, and
Licensee accepts from Licensor, a non-exclusive, non-transferable license to:
(1) use Licensor's Software and Documentation solely for its internal operations
at each Location specified in Schedule A; and (2) copy the Software for archival
and backup purposes only, provided that all titles, trademarks, copyrights,
proprietary and restricted rights and notices shall be reproduced in all such
copies, and that all such copies shall be subject to the terms of this
Agreement. A description of the Software and related Documentation is attached
as Schedule B hereto.

2.2 Licensee shall not: (1) make available or distribute all or any part of the
Software or Documentation to any third party by assignment, sub-license, or by
any other means; or (2) copy, adapt, reverse engineer, decompile, disassemble,
or modify, in whole or in part, any of the Software or Documentation; or (3)
allow a third party access to the Software.

2.3 Notwithstanding the provisions of the foregoing Sections 2.1 and 2.2,
Licensor acknowledges and agrees that, provided no event of default (as herein
defined) has occurred hereunder, (a) Licensee may upgrade, improve or modify the
Software or the Documentation, subject to Licensor's rights as provided in
Section 4.1 hereof, (b) Licensee may sublicense the Software to a third party,
provided, however, that Licensee shall not be permitted to conduct billing and
collection functions, or to interfere with the conduct of the same by Licensor,
with respect to such sublicense(s) for a period of twelve (12) months from the
date of execution hereof and (c) Licensee may transfer its license to, or use
its license rights in connection with, a joint venture in which Licensee
participates, and shall be permitted to conduct billing and collection functions
in connection with same, provided, however, that the Licensee must at all times
be the legal and beneficial owner of not less than 30% of the equity ownership
of such joint venture.

                          III. LICENSE FEES AND PAYMENT

3.1 Licensee shall pay the License Fees in accordance with the payment schedule
set forth in Schedule C, in immediately available funds. Payment of the License
Fees shall be made by Licensee to Licensor in full on each applicable payment
date without any right of set-off or deduction.

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3.2 Licensee shall be responsible for any applicable sales or use taxes or any
value added or similar taxes payable with respect to the licensing of the
Software, or arising out of or in connection with this Agreement, other than
taxes levied or imposed based upon Licensor's income. In the event that Licensor
pays any such taxes on behalf of Licensee, Licensor shall invoice Licensee for
such taxes and Licensee agrees to pay such taxes in accordance with this
Agreement.

3.3 In addition to the remedies set forth in Section 6.5 hereof, the failure by
Licensee to pay any amounts due under this Agreement in full in accordance with
this Agreement shall make Licensee liable to pay Licensor interest at the rate
of two percent (2%) per month on any License Fees due hereunder, or at the
highest amount permitted by applicable law, such interest to accrue on a daily
basis after as well as before any judgment relating to collection of the
amount(s) due.

                   IV. PROPRIETARY RIGHTS AND CONFIDENTIALITY

4.1 Licensor represents and warrants that it owns the Software, Documentation
and Specifications, and has the right to license the same to Licensee. Licensee
acknowledges and agrees that all copyright, patent, trade secret, trademark, and
all other intellectual property rights of whatever nature in the Software,
Documentation, and Specifications are and shall remain the property of Licensor,
and nothing in this Agreement should be construed as transferring any aspects of
such rights to Licensee or any third party. Any upgrades, improvements or
modifications to, or new versions of, the Software shall become a part of the
Software, and, as such, are subject to the terms and conditions of this
Agreement, whether such upgrades, improvements, modifications or new versions
are made by Licensor or Licensee. Additionally, Licensor shall own all
proprietary rights associated with such upgrades, improvements, modifications or
new versions. Licensee hereby agrees that the foregoing provisions apply
similarly to upgrades, improvements or modifications to, or new versions of, the
Software made by Licensee prior to the execution of this Agreement.

4.2 "Confidential Information" shall mean the Software, Documentation, and
Specifications. Licensee acknowledges the confidential and proprietary nature of
the Confidential Information and agrees that it shall not reveal or disclose any
Confidential Information for any purpose to any other person, firm, corporation
or other entity, other than Licensee's employees with the need to know such
Confidential Information to perform employment responsibilities consistent with
Licensee's rights under this Agreement. Licensee shall safeguard and protect the
Confidential Information from theft, piracy, or unauthorized access in a manner
at least consistent with the protections Licensee uses to protect its most
confidential information. Licensee shall inform its employees of its obligations
under this Agreement, and shall take such steps as may be reasonable in the
circumstances, or as may be reasonably requested by Licensor, to prevent any
unauthorized disclosure, copying, or use of the Confidential Information.
Licensee acknowledges and agrees that in the event of Licensee's breach of this
provision, Licensor will suffer irreparable injuries not compensated by monetary
damages and therefore shall not have an adequate remedy at law. Accordingly,
Licensor shall be entitled to a preliminary and final injunction without the
necessity of posting bond. This remedy is separate and apart from any other
remedy Licensor may have.

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4.3 Licensee shall notify Licensor immediately upon discovery of any prohibited
use or disclosure of the Confidential Information or any other breach of these
confidentiality obligations by Licensee, and shall fully cooperate with Licensor
to help Licensor regain possession of the Confidential Information and prevent
the further prohibited use or disclosure of the Confidential Information.

                             V. WARRANTY DISCLAIMERS

5.1 As of the date hereof, Licensee acknowledges that it has had an opportunity
to inspect, use and assess the Software and that, as of such date, the Software
meets all of Licensee's requirements and expectations and operates without
Errors.

5.2 LICENSOR EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING
WARRANTIES OF MERCHANTIBILITY AND FITNESS FOR A PARTICULAR PURPOSE. LICENSOR
DOES NOT WARRANT THAT THE SOFTWARE WILL MEET LICENSEE'S REQUIREMENTS, OR THAT
THE OPERATION OF THE SOFTWARE WILL BE UNINTERRUPTED OR ERROR-FREE. THE ENTIRE
RISK OF THE SOFTWARE'S QUALITY AND PERFORMANCE IS WITH LICENSEE.

5.3 LICENSOR SHALL HAVE NO LIABILITY WITH RESPECT TO ITS OBLIGATIONS UNDER THIS
AGREEMENT OR OTHERWISE FOR CONSEQUENTIAL, EXEMPLARY, SPECIAL, INCIDENTAL, OR
PUNITIVE DAMAGES EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
THE LIABILITY OF LICENSOR TO LICENSEE FOR ANY REASON AND UPON ANY CAUSE OF
ACTION SHALL BE LIMITED TO THE AMOUNT PAID TO LICENSOR BY LICENSEE UNDER THIS
AGREEMENT. THIS LIMITATION APPLIES TO ALL CAUSES OF ACTION IN THE AGGREGATE,
INCLUDING, WITHOUT LIMITATION, TO BREACH OF CONTRACT, BREACH OF WARRANTY,
NEGLIGENCE, STRICT LIABILITY, MISREPRESENTATIONS, AND OTHER TORTS.

                        VI. TERM, TERMINATION AND DEFAULT

6.1 The License granted herein shall remain in effect from the Effective Date
until May 1, 2004 (the "Termination Date"), unless earlier terminated as
provided for herein.

6.2 The following shall constitute "events of default" (and each, individually,
an "event of default") hereunder: (1) any breach by Licensee of any provision of
this Agreement; (2) failure of the Licensee to provide Licensor with a current
version of the Software immediately following the release of any new version of,
or the making of any upgrades, improvements or modifications to, the Software,
as provided in Section 8.8 hereof; (3) any breach by Licensee of, or any
occurrence of a default or event of default under, the $1,234,034.85 Promissory
Note, dated September 10, 1999, made by Licensee and payable to the order of
Licensor, as amended by the Modification Agreement, of even date herewith (as
amended, modified, supplemented, extended, renewed or replaced through the date
hereof, the "Note"), or any occurrence of a default or event of default or a
failure to pay amounts due in connection with the Promissory Note, of even date
herewith, made by Licensee and payable to the order of CareSouth Indemnity
Services, LLC (as amended, modified, supplemented, extended, renewed or replaced
through the date hereof, the

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"Indemnity Note"); (4) any failure by Licensee to pay the License Fees when due,
provided that such failure shall not constitute an event of default hereunder in
the event that Licensee pays such amounts within 24 hours after notice of such
failure given by Licensor to Licensee; and (5) Licensee's making an assignment
for the benefit of its creditors, the filing of any voluntary or involuntary
bankruptcy, Licensee's insolvency, or the appointment of a trustee or a receiver
for Licensee or its property.

6.3 Licensor may terminate this Agreement, the License, or both, immediately and
without further obligation to Licensee upon the occurrence of an event of
default. Termination shall not relieve Licensee of its obligation to pay all
amounts due and payable to Licensor as of the date of termination, including,
without limitation, all amounts accelerated pursuant to Section 6.5 hereof.

6.4 Upon an event of default under this Agreement, termination of the License or
termination of this Agreement, Licensee shall immediately cease using the
Software and Documentation and shall promptly return all copies of the Software,
Documentation, Specifications and all other Confidential Information in its
possession or control. Licensee shall delete all copies of such materials
residing in computer memory, and destroy all copies of such materials that
incorporate Licensor's Confidential Information.

6.5 In addition to any other remedies the Licensor may have, upon an event of
default under this Agreement:

         (a) the aggregate of the License Fees due and payable to Licensor for
the entire remainder of the term of this Agreement (together with any License
Fees that may be past due hereunder) shall become immediately due and payable;

         (b) all other indebtedness and obligations of Licensee to Licensor or
any subsidiary or affiliate of Licensor, now existing or hereafter arising,
shall become immediately due and payable at the option of Licensor or such
subsidiary or affiliate of Licensor, as applicable; and

         (c) within 90 days after the date Licensor gives notice to Licensee of
the occurrence of an event of default hereunder, and provided that written
demand has been made by Licensor, Licensee shall validly authorize, and
immediately thereafter validly issue, in one or more tranches, to one or more
third party institutional investors, for the benefit and account of the
Licensor, that number of duly authorized, fully paid and nonassessable shares of
the Series A Convertible Preferred Stock of the Licensee, par value $.001 per
share (the "Series A Preferred Stock") that shall have a value, in the
aggregate, equal to the total amount payable upon acceleration under paragraphs
(a) and (b) of this Section 6.5, with cash amounts received by Licensee (net of
selling expenses, underwriting discounts and related costs) from such investors
to be paid to Licensor and applied by Licensor to the satisfaction of all
obligations due to Licensor or its affiliates and subsidiaries from Licensee and
its subsidiaries and affiliates. Such application shall be deemed satisfaction
of such obligations to Licensor and its affiliates and subsidiaries only to the
extent of such value received and so applied. If such amounts paid to Licensor
by Licensee exceed the total obligations due from Licensee and its affiliates
and subsidiaries to Licensor and its affiliates and subsidiaries, then Licensor
shall return the excess to Licensee. To the extent that Licensee fails to issue
Series A Preferred Stock as of the end of such 90 day period in accordance with
the foregoing terms, or otherwise satisfy its obligations to

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Licensor and its affiliates and subsidiaries, then, on the last day of such
period, Licensee shall validly authorize, and immediately thereafter begin to
validly issue, to Licensor or its designee, in one or more tranches, that number
of duly authorized, fully paid and nonassessable shares of the Series A
Preferred Stock that shall have a value, in the aggregate, equal to the total
amount payable upon acceleration under paragraphs (a) and (b) of this Section
6.5, and a per share value equal to the price per share of the Common Stock on
the date that such Series A Preferred Stock is issued to Licensor, less 25% of
such per share price, in accordance with the terms of the Certificate of
Designations and the Registration Rights Agreement, each of which shall be in
the form attached hereto as Exhibits B and C, respectively. Licensor agrees that
within 90 days after such issuance, it shall give Licensee notice of its
election to either (1) sell its shares of Series A Preferred Stock (or the
shares of Common Stock into which such shares of Series A Preferred Stock are
convertible) or (2) retain the shares of Series A Preferred Stock or the Common
Stock into which such Series A Preferred Stock is convertible. Cash amounts
received upon transfer or sale by the Licensor (net of selling expenses,
underwriting discounts and related costs) of such Series A Preferred Stock (or
the Common Stock into which it is convertible), or the value (on an as-converted
to Common Stock basis) of any shares retained as provided in clause (2) above,
shall be applied by the Licensor against amounts due hereunder. Such application
shall be deemed satisfaction of such obligations to Licensor and its affiliates
and subsidiaries only to the extent of such value received and so applied.
Notwithstanding the length of any period specified herein, and regardless of the
election made by Licensor hereunder, Licensee agrees to continue to issue, and
Licensor retains its right to require such additional issuances of, Series A
Preferred Stock, until such time as the aggregate amount of cash received by
Licensor, or the value of such issued shares of Series A Preferred Stock, as
applicable in clause (2) above, equals the value of all obligations due to
Licensor and its affiliates and subsidiaries from Licensee and its affiliates
and subsidiaries, all in accordance with the terms hereof (such terms to
include, but not be limited to, the 25% discount with respect to per share
pricing). If the value received by Licensor exceeds the total obligations due
from Licensee and its affiliates and subsidiaries to Licensor and its affiliates
and subsidiaries, then Licensor shall return the excess to Licensee within ten
(10) days after Licensor receives notice of such overpayment from Licensee.
Licensee further agrees that it (a) shall appropriately and timely file the
Certificate of Designations with the Secretary of State of the State of
Delaware, and shall file such certificates of amendment to same as Licensor
deems necessary in the exercise of its reasonable discretion; (b) shall obtain
all requisite approvals from its shareholders, including, without limitation,
the holders of the Series A Preferred Stock; (c) shall at all times reserve and
keep available out of its authorized shares of Common Stock (as defined in the
certificate of incorporation of the Licensee), solely for the purpose of issue
or delivery upon conversion of the Series A Preferred Stock, the maximum number
of shares of Common Stock that may be issuable or deliverable upon such
conversion, and shall issue such shares of Common Stock in accordance with the
terms of its certificate of incorporation and the Registration Rights Agreement;
and (d) obtain and provide to Licensor an opinion of counsel (who shall be
satisfactory to Licensor) to the effect that the shares of Series A Preferred
Stock shall be duly authorized and validly issued, fully paid and nonassessable.

The rights and remedies of the Licensor contained in this Agreement are
cumulative and not exclusive of any rights or remedies otherwise provided by
law.

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                            VII. TRANSFER OF LICENSE

7.1 Notwithstanding anything to the contrary contained herein, as of the
Termination Date or such earlier date as all of Licensee's indebtedness and
obligations to Licensor and each affiliate or subsidiary of Licensor shall have
been satisfied, provided that Licensee shall have paid to Licensor all License
Fees due hereunder and that no event of default hereunder shall have occurred
and be continuing, Licensee shall have the right to acquire from the Licensor,
the Software and the Documentation from the Licensor by paying to the Licensor
the amount of $1 on the Termination Date. Upon the transfer by the Licensor of
the license pursuant to this Section VII, no upgrades, improvements,
modifications or new versions of the Software or Documentation shall be subject
to the provisions of Section 4.1 hereof, and Licensee shall thereafter possess
all proprietary rights thereto. Licensee further agrees that any other licensees
of the Software or the Documentation shall be entitled to all existing license
rights in accordance with the terms of any license agreements or other documents
governing such rights, and such other license agreements and other documents
shall remain in effect for a period of 12 months after the transfer of the
pursuant to this Section VII, provided that such license agreements contain the
terms and conditions customarily employed by Licensor in similar agreements.
Licensee shall be entitled to the fees otherwise payable to Licensor pursuant to
such license agreements and other documents. Licensor hereby agrees that it
shall not sell, transfer or assign the Software or the Documentation or its
rights thereto, except as provided in this Section VII, and shall not grant a
security interest or otherwise encumber the Software or Documentation in such a
way as would inhibit or impair the right of Licensor to transfer such Software
or Documentation to Licensee in accordance with the terms of this Section VII.

                               VIII. MISCELLANEOUS
8.1 If any section of this Agreement is held to be illegal or unenforceable, the
validity or enforceability of the remainder of this Agreement shall not be
affected.

8.2 Licensee may not assign its rights or obligations under this Agreement
without the prior written consent of Licensor, which consent shall not be
unreasonably withheld by Licensor.

8.3 Failure by either party to exercise any right or remedy under this Agreement
does not signify acceptance of the event giving rise to such right or remedy.

8.4 This Agreement will be governed by and construed in accordance with the laws
of the State of Delaware.

8.5 Any notice required or permitted to be given or delivered under this
Agreement shall be sent by facsimile (provided that any such facsimile received
before 5 PM Eastern Standard Time on a given day shall be deemed to be received
on that business day, while if received after such time, such facsimile shall be
deemed to be received on the next succeeding business day) or delivered to the
address set forth in this Agreement, and addressed to the attention of:

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If to Licensor:            CareSouth Home Health Services, Inc.
                           Augusta Corporate Centre
                           2743 Perimeter Parkway
                           Building 200, Suite 200
                           Augusta, Georgia  30909
                           Attention: Rick W. Griffin
                                      Chief Executive Officer
                           Fax: (888) 968-4907

with a copy to:            Capitol Partners
                           1000 Wilson Boulevard
                           Suite 2700
                           Arlington, Virginia  22209
                           Attention: T.J. Jubeir
                                      Managing Partner
                           Fax: (703) 248-9611

If to Licensee:            Amedisys, Inc.
                           11100 Mead Road
                           Suite 300
                           Baton Rouge, LA  70816
                           Attention: William F. Borne
                                      Chairman of the Board and CEO
                           Fax: (225) 292-8163

with a copy to:            Amedisys, Inc.
                           11100 Mead Road
                           Suite 300
                           Baton Rouge, Louisiana  70816
                           Attention: John Joffrion
                           Fax:     (___) ____-______

Notice shall be deemed to have been received by any party, and shall be
effective on the third day after which such notice is deposited, if mailed by
certified, first-class, postage prepaid, return receipt requested mail.

8.6 Sections 4, 5, and 8 shall survive the termination of this Agreement.

8.7 This Agreement and its Schedules and Exhibits comprise the entire agreement
between the parties regarding the subject matter hereof and supercedes and
merges all prior proposals, understandings, and all other agreements, oral or
written, between the parties relating to the Agreement.

8.8 To induce Licensor to enter into this Agreement, Licensee agrees to provide
Licensor with a complete copy of the current version of the Software as it
exists on the Effective Date; Licensee also agrees, during the term of this
Agreement, to provide Licensor with a current

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version of the Software following the release of any new version of, or the
making of any upgrades, improvements or modifications to, the Software, when and
as the payment of License Fees is required hereunder.

8.9 In the event that either party resorts to legal action to enforce the terms
and provisions of this Agreement, the prevailing party shall be entitled to
recover the actual and demonstrable costs of such action so incurred, including,
without limitation, reasonable attorney's fees.

                         [SIGNATURES ON FOLLOWING PAGE]

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LICENSOR:                                   LICENSEE:

CARESOUTH HOME HEALTH                       AMEDISYS, INC.
SERVICES, INC.

By:     /s/ RICK W. GRIFFIN                 By:    /s/ WILLIAM F. BORNE
        ------------------------------             -----------------------------
Name:   Rick W. Griffin                     Name:  William F. Borne
        ------------------------------             -----------------------------
Title:  CEO                                 Title: CEO
        ------------------------------             -----------------------------
Date:   effective 10/1/01                   Date:  10/8/01
        ------------------------------             -----------------------------

                                       10<PAGE>
                                                                    EXHIBIT 10.1

                                PAYMENT GUARANTY

                   OF REIT AND OF PREFERRED STOCK SUBSIDIARIES

         This PAYMENT GUARANTY ("GUARANTY") is made as of November 6, 2001, by
the undersigned entities (each a "GUARANTOR") in favor of BANK OF AMERICA, N.A.
("BANK OF AMERICA"), as Administrative Agent for itself and the lenders
("LENDERS") from time to time party to the Credit Agreement (as hereinafter
defined) (in such capacities, "ADMINISTRATIVE AGENT").

                               Factual Background

         The Lenders have made or intend to make a $400,000,000 credit facility
available to AIMCO Properties L.P., a Delaware limited partnership ("AIMCO"),
AIMCO/Bethesda Holdings, Inc., a Delaware corporation ("AIMCO/BETHESDA"), and
NHP Management Company, a District of Columbia corporation ("NHP MANAGEMENT")
(AIMCO, AIMCO/Bethesda and NHP Management are collectively referred to as
"BORROWERS"), in accordance with the Third Amended and Restated Credit Agreement
(the "CREDIT AGREEMENT"), dated as of the date hereof, by and among Borrowers,
Bank of America (as Administrative Agent), Fleet National Bank (as Syndication
Agent), First Union National Bank (as Documentation Agent), Banc of America
Securities LLC and Fleet Securities Inc., as Co-Lead Arrangers and Banc of
America Securities LLC, as Sole Book Manager, and the other Lenders from time to
time party thereto. In connection with the Credit Agreement, the Borrowers have
obtained this Guaranty from the Guarantors and the Guarantors (other than the
REIT) have provided this Guaranty in return for Borrowers' payment of a
guarantee fee. In addition, certain Subsidiaries of Guarantors (other than the
REIT) will be providing a guaranty for which Guarantors (other than the REIT)
have been paid a guarantee fee. Capitalized terms used but not defined herein
will have the meanings set forth in the Credit Agreement. As used herein, the
term "FACILITY" shall refer individually to each of the credit facilities
available to the Borrowers under the Credit Agreement.

                                    Guaranty

         1. Guaranty of Loan.

         (a) Absolute Guaranty. Each Guarantor absolutely, unconditionally and
irrevocably guaranties to Administrative Agent and the Lenders the full payment
of the Indebtedness (as hereinafter defined), and unconditionally agrees to pay
to Administrative Agent and the Lenders the full amount of the Indebtedness.
This is a guaranty of payment, not of collection. If Borrowers default in the
payment when due of the Indebtedness or any part of it, each Guarantor will in
lawful money of the United States pay to Administrative Agent and the Lenders,
on demand, all sums due and owing on the Indebtedness, including all interest,
charges, fees and other sums, costs and expenses.

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         (b) AIMCO/Bethesda Holdings Inc. Notwithstanding that AIMCO/Bethesda is
a "Borrower" pursuant to the Credit Agreement, if Administrative Agent for any
reason determines that AIMCO/Bethesda is or may be construed as a guarantor or a
surety in respect of the Indebtedness instead of a Borrower with respect
thereto, then AIMCO/Bethesda shall be for all purposes hereunder a Guarantor,
and, without limiting the generality of the foregoing, shall have all of the
obligations and liabilities of a Guarantor hereunder.

         2. Loan. In this Guaranty, the term "Indebtedness" is broadly defined
to mean and include all primary, secondary, direct, indirect, fixed and
contingent obligations of Borrowers to pay principal, interest, prepayment
charges, breakage costs, late charges, loan fees and any other fees, charges,
sums, costs and expenses that may be owing at any time under the Loan Documents,
as any or all of such obligations may from time to time be modified, amended,
extended or renewed. If the amount outstanding under the Indebtedness is
determined by a court of competent jurisdiction, that determination shall be
conclusive and binding on each Guarantor, regardless of whether such Guarantor
was a party to the proceeding in which the determination was made or not.

         3. Rights of Administrative Agent and the Lenders. Each Guarantor
authorizes Administrative Agent or any Lender to perform any or all of the
following acts at any time in its sole discretion, all without notice to such
Guarantor and without affecting such Guarantor's obligations under this
Guaranty:

         (a) Administrative Agent or the Requisite Lenders may alter any terms
     of the Indebtedness or any part of it, including renewing, compromising,
     extending or accelerating, or otherwise changing the time for payment of,
     or increasing or decreasing the rate of interest on, the Indebtedness or
     any part of it.

         (b) Administrative Agent or any Lender may take and hold security for
     the Indebtedness or this Guaranty, accept additional or substituted
     security for either, and subordinate, exchange, enforce, waive, release,
     compromise, fail to perfect and sell or otherwise dispose of any such
     security in accordance with the terms of the Indebtedness.

         (c) Administrative Agent or any Lender may direct the order and manner
     of any sale of all or any part of any security now or later to be held for
     the Indebtedness or this Guaranty, and Administrative Agent or any Lender
     may also bid at any such sale.

         (d) Administrative Agent or any Lender may apply any payments or
     recoveries from Borrowers, Guarantors or any other source, and any proceeds
     of any security, to Borrowers' obligations under the Loan Documents in such
     manner, order and priority as Administrative Agent or such Lender may
     elect, whether or not those obligations are guarantied by this Guaranty or
     secured at the time of the application.

         (e) Administrative Agent or any Lender may release Borrowers of their
     liability for the Indebtedness or any part of it.

         (f) Administrative Agent or any Lender may substitute, add or release
     any one or more Guarantors, other guarantors or endorsers.

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         (g) In addition to the Indebtedness, Administrative Agent or any Lender
     may extend other credit to Borrowers, and may take and hold security for
     the credit so extended, all without affecting any Guarantor's liability
     under this Guaranty.

         4. Guaranty to be Absolute. Each Guarantor expressly agrees that until
the Indebtedness is paid and performed in full and each and every term, covenant
and condition of this Guaranty is fully performed, such Guarantor shall not be
released by or because of:

         (a) Any act or event (other than payment and performance in full of the
     Indebtedness) which might otherwise discharge, reduce, limit or modify such
     Guarantor's obligations under this Guaranty;

         (b) Any waiver, extension, modification, forbearance, delay or other
     act or omission of Administrative Agent or any Lender, or its failure to
     proceed promptly or otherwise as against Borrowers, any Guarantor or any
     security;

         (c) Any action, omission or circumstance that might increase the
     likelihood that such Guarantor may be called upon to perform under this
     Guaranty or that might affect the rights or remedies of such Guarantor as
     against Borrowers;

         (d) Any dealings occurring at any time between Borrowers and
     Administrative Agent or any Lender, whether relating to the Indebtedness or
     otherwise; or

         (e) Any action of Administrative Agent or any Lender described in
     Section 3 above.

         Each Guarantor hereby acknowledges that absent this Section 4, such
Guarantor might have a defense to the enforcement of this Guaranty as a result
of one or more of the foregoing acts, omissions, agreement, waivers or matters.
Each Guarantor hereby expressly waives and surrenders any defense to its
liability under this Guaranty based upon any of the foregoing acts, omissions,
agreements, waivers or matters. It is the purpose and intent of this Guaranty
that the obligations of each Guarantor under it shall be absolute and
unconditional under any and all circumstances.

         5. Guarantors' Waivers. Each Guarantor waives:

         (a) All statutes of limitations as a defense to any action or
     proceeding brought against such Guarantor by Administrative Agent or any
     Lender, to the fullest extent permitted by law;

         (b) Any right it may have to require Administrative Agent or any Lender
     to proceed against Borrowers, proceed against or exhaust any security held
     from Borrowers, or pursue any other remedy in Administrative Agent's or any
     Lender's power to pursue;

         (c) Any defense based on any claim that such Guarantor's obligations
     exceed or are more burdensome than those of Borrowers;

                                        3
<PAGE>

         (d) Any defense based on: (i) any legal disability of Borrowers, (ii)
     any release, discharge, modification, impairment or limitation of the
     liability of Borrowers to Administrative Agent or any Lender from any
     cause, whether consented to by Administrative Agent or any Lender or
     arising by operation of law or from any bankruptcy or other voluntary or
     involuntary proceeding, in or out of court, for the adjustment of
     debtor-creditor relationships ("Insolvency Proceeding"), and (iii) any
     rejection or disaffirmance of the Indebtedness, or any part of it, or any
     security held for it, in any such Insolvency Proceeding;

         (e) Any defense based on any action taken or omitted by Administrative
     Agent or any Lender in any Insolvency Proceeding involving Borrowers,
     including any election to have Administrative Agent's or that Lender's
     claim allowed as being secured, partially secured or unsecured, any
     extension of credit by Lender to Borrowers in any Insolvency Proceeding,
     and the taking and holding by Administrative Agent or any Lender of any
     security for any such extension of credit;

         (f) All presentments, demands for performance, notices of
     nonperformance, protests, notices of protest, notices of dishonor, notices
     of acceptance of this Guaranty and of the existence, creation, or incurring
     of new or additional indebtedness, and demands and notices of every kind
     except for any demand or notice by Administrative Agent or any Lender to
     such Guarantor expressly provided for in Section 1;

         (g) Any defense based on or arising out of any defense that Borrowers
     may have to the payment or performance of the Indebtedness or any part of
     it; and

         (h) Any defense based on or arising out of any action of Administrative
     Agent or any Lender described in Sections 3 or 4 above.

         6. Waivers of Subrogation and Other Rights.

         (a) During the existence of an Event of Default by Borrowers,
     Administrative Agent or any Lender, without prior notice to or consent of
     any Guarantor, may elect to: (i) foreclose either judicially or
     nonjudicially against any real or personal property security it may hold
     for the Indebtedness, (ii) accept a transfer of any such security in lieu
     of foreclosure, (iii) compromise or adjust the Indebtedness or any part of
     it or make any other accommodation with Borrowers or Guarantors, or (iv)
     exercise any other remedy against Borrowers or any security. No such action
     by Administrative Agent or any Lender shall release or limit the liability
     of Guarantors, who shall remain liable under this Guaranty after the
     action, even if the effect of the action is to deprive Guarantors of any
     subrogation rights, rights of indemnity, or other rights to collect
     reimbursement from Borrowers for any sums paid to Administrative Agent or
     any Lender, whether contractual or arising by operation of law or
     otherwise. Each Guarantor expressly agrees that under no circumstances
     shall it be deemed to have any right, title, interest or claim in or to any
     real or personal property to be held by Administrative Agent or any Lender
     or any third party after any foreclosure or transfer in lieu of foreclosure
     of any security for the Indebtedness.

                                       4
<PAGE>

         (b) Regardless of whether any Guarantor may have made any payments to
     Lender, each Guarantor hereby waives: (i) all rights of subrogation, all
     rights of indemnity, and any other rights to collect reimbursement from
     Borrowers for any sums paid to Administrative Agent or any Lender, whether
     contractual or arising by operation of law (including the United States
     Bankruptcy Code or any successor or similar statute) or otherwise, (ii) all
     rights to enforce any remedy that Lender may have against Borrowers, and
     (iii) all rights to participate in any security now or later to be held by
     Administrative Agent or any Lender for the Indebtedness, in each case until
     the full and indefeasible payment and performance of all Indebtedness, and
     all obligations of the Guarantors hereunder.

         (c) Each Guarantor waives all rights and defenses arising out of an
     election of remedies by the Administrative Agent or any Lender, even though
     that election of remedies may affect such Guarantor's rights of subrogation
     and reimbursement against the Borrowers by the operation of law or
     otherwise. In addition, such Guarantor waives all rights and defenses that
     such Guarantor may have because the Borrowers' indebtedness is secured by
     real property. This means, among other things, that Administrative Agent
     and the Lenders may collect from such Guarantor without first foreclosing
     on any real or personal property collateral pledged by the Borrowers.

         7. Revival and Reinstatement. If Administrative Agent or any Lender is
required to pay, return or restore to Borrowers or any other person any amounts
previously paid on the Indebtedness because of any Insolvency Proceeding of
Borrowers, any stop notice or any other reason, the obligations of Guarantors
shall be reinstated and revived and the rights of Administrative Agent and such
Lender shall continue with regard to such amounts, all as though they had never
been paid.

         8. Information Regarding Borrowers. Before signing this Guaranty, each
Guarantor investigated the financial condition and business operations of
Borrowers and such other matters as such Guarantor deemed appropriate to assure
itself of Borrowers' ability to discharge its obligations under the Loan
Documents. Each Guarantor assumes full responsibility for that due diligence, as
well as for keeping informed of all matters that may affect Borrowers' ability
to pay and perform its obligations to the Administrative Agent and the Lenders.
Neither Administrative Agent nor any Lender has any duty to disclose to any
Guarantor any information which such party may have or receive about Borrowers'
financial condition, business operations, or any other circumstances bearing on
its ability to perform.

         9. Subordination. Any rights of Guarantors, whether now existing or
later arising, to receive payment on account of any indebtedness (including
interest) owed to any of them by Borrowers or any Subsidiary thereof or to
receive any payment from Borrowers or any such Subsidiary other than those
payments or distributions permitted under Sections 7.07 and 7.10 of the Credit
Agreement shall at all times be subordinate as to lien and time of payment and
in all other respects to the full and prior repayment of the Indebtedness. No
Guarantor shall be entitled to enforce or receive payment of any sums hereby
subordinated until the Indebtedness has been paid and performed in full and any
such sums received in violation of this Guaranty shall be received by such
Guarantor in trust for the Administrative Agent and the Lenders.

                                       5
<PAGE>

         10. Financial Information. Each Guarantor shall keep true and correct
financial books and records, using generally accepted accounting principles
consistently applied, or such other accounting principles as the Requisite
Lenders in their reasonable judgment may find acceptable from time to time. Each
Guarantor represents, warrants and covenants to Administrative Agent and the
Lenders that all financial information with respect to such Guarantor delivered
or to be delivered to Administrative Agent and the Lenders by the Borrowers with
respect to such Guarantor under Section 6.01 of the Credit Agreement is or shall
be true and correct and fairly presents or will fairly present the financial
position of such Guarantor for the applicable period. Each Guarantor shall
promptly provide Administrative Agent and the Lenders with any additional
audited financial information that such Guarantor may obtain, and such other
information concerning its affairs and properties as Administrative Agent or any
Lender may reasonably request, including, without limitation, signed copies of
any tax returns if requested by Administrative Agent or the Lenders.

         11. Guarantors' Representations and Warranties. Each Guarantor
represents and warrants that:

         (a) All financial statements delivered to Administrative Agent or the
     Lenders were or will be prepared in accordance with generally accepted
     accounting principles which are applicable to the circumstances as of the
     date of determination or such other accounting principles as may be
     acceptable to the Requisite Lenders at the time of their preparation,;

         (b) There has been no material adverse change in such Guarantor's
     financial condition since the dates of the statements most recently
     furnished to Administrative Agent and the Lenders; and

         (c) All representations and warranties given on behalf of or with
     respect to such Guarantor contained in Section 5 of the Credit Agreement
     and in any other Loan Document or certification made in connection with the
     Credit Agreement are true and correct.

         12. Covenants of Guarantors. Each Guarantor covenants and agrees that
it shall comply with and perform all covenants given on behalf of or with
respect to such Guarantor (whether expressly or as a Subsidiary) contained in
Sections 6 and 7 of the Credit Agreement and in all other Loan Documents.

         13. Intentionally Omitted.

         14. Intentionally Omitted.

         15. Authorization; No Violation. Each Guarantor is authorized to
execute, deliver and perform under this Guaranty, which is a valid, binding, and
enforceable obligation of such Guarantor in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium, or similar laws affecting creditor's rights generally. The
execution, delivery and performance of this Guaranty are not in violation of any
applicable law, regulation or ordinance, or any order or ruling of any court or
governmental

                                       6
<PAGE>

agency applicable to such Guarantor. The Guaranty does not conflict with, or
constitute a breach or default under, any agreement to which such Guarantor is a
party.

         16. Additional and Independent Obligations. Each Guarantor's
obligations under this Guaranty are in addition to its obligations under any
future guaranties, each of which shall remain in full force and effect until it
is expressly modified or released in a writing signed by Administrative Agent
and consented to by the Lenders. Each Guarantor's obligations under this
Guaranty are independent of those of Borrowers on the Indebtedness.
Administrative Agent or the Lenders may bring a separate action, or commence a
separate arbitration proceeding against each Guarantor without first proceeding
against Borrowers, any other person or any security that Administrative Agent or
any Lender may hold, and without pursuing any other remedy. None of
Administrative Agent's or any Lender's rights under this Guaranty shall be
exhausted by any action by Administrative Agent or any Lender until the
Indebtedness has been paid and performed in full in cash.

         17. No Waiver; Consents; Cumulative Remedies. Each waiver by
Administrative Agent or the Lenders must be in writing, and no waiver shall be
construed as a continuing waiver. No waiver shall be implied from Administrative
Agent's or any Lender's delay in exercising or failure to exercise any right or
remedy against Borrowers, any Guarantor or any security. Consent by
Administrative Agent or the Lenders to any act or omission by Borrowers or any
Guarantor shall not be construed as a consent to any other or subsequent act or
omission, or as a waiver of the requirement for Administrative Agent's or the
Lenders' consent to be obtained in any future or other instance. All remedies of
Administrative Agent and each Lender against Borrowers and Guarantors are
cumulative.

         18. No Release. Except as otherwise provided in Section 1, no Guarantor
shall be released, in whole or in part, from its obligations under this Guaranty
except by a writing signed by Administrative Agent and all the Lenders.

         19. Heirs, Successors and Assigns; Participations. The terms of this
Guaranty shall bind and benefit the heirs, legal representatives, successors and
assigns of Administrative Agent, the Lenders and Guarantors; provided, however,
that no Guarantor may assign this Guaranty, or assign or delegate any of its
rights or obligations under this Guaranty, without the prior written consent of
Administrative Agent in each instance. Without notice to or the consent of
Guarantors, Administrative Agent and any Lender may disclose any and all
information in its possession concerning Guarantors, this Guaranty and any
security for this Guaranty to any actual or prospective purchaser of any
securities issued or to be issued by Administrative Agent or such Lender, and to
any actual or prospective purchaser or assignee of any participation or other
interest in the Indebtedness and this Guaranty.

         20. Notices.

         (a) Delivery. All notices, requests and other communications provided
     for hereunder shall be in writing (including, unless the context expressly
     otherwise provides, telegraphic, telex, facsimile transmission or cable
     communication) and mailed, telegraphed, telexed or delivered to the
     recipient's address specified on the signature

                                       7
<PAGE>

     pages hereof, or to such other address as shall be designated by such party
     in a written notice to the other party.

         (b) Receipt. All such notices and communications shall, when
     transmitted by overnight delivery, telegraphed, telecopied by facsimile,
     telexed or cabled, be effective when delivered for overnight delivery or to
     the telegraph company, transmitted by telecopier, confirmed by telex
     answerback or delivered to the cable company, respectively, or if
     delivered, upon delivery.

         (c) Reliance. Administrative Agent and each Lender shall be entitled to
     rely on the authority of any person purporting to be a person authorized by
     Guarantors to give such notice, and neither Administrative Agent nor any
     Lender shall have any liability to any Guarantor or any other person on
     account of any action taken or not taken by Administrative Agent or such
     Lender in reliance upon such telephonic or facsimile notice. The obligation
     of each Guarantor hereunder shall not be affected in any way or to any
     extent by any failure by Lender to receive written confirmation of any
     telephonic or facsimile notice or the receipt by Administrative Agent or a
     Lender of a confirmation which is at variance with the terms understood by
     Administrative Agent or such Lender to be contained in the telephonic or
     facsimile notice.

         21. Rules of Construction. In this Guaranty, the word "Borrowers"
includes both the named Borrowers and any other person who at any time assumes
or otherwise becomes primarily liable for all or any part of the obligations of
the named Borrowers on the Indebtedness. The word "person" includes any
individual, company, trust or other legal entity of any kind. The word
"include(s)" means "include(s), without limitation," and the word "including"
means "including, but not limited to." When the context and construction so
require, all words used in the singular shall be deemed to have been used in the
plural and vice versa. No listing of specific instances, items or matters in any
way limits the scope or generality of any language of this Guaranty. All
headings appearing in this Guaranty are for convenience only and shall be
disregarded in construing this Guaranty.

         22. Governing Law. This Guaranty shall be governed by, and construed in
accordance with, the laws of the State of California, without regard to its
choice of law rules.

         23. Costs and Expenses. If any lawsuit or arbitration is commenced
which arises out of, or which relates to this Guaranty, the Loan Documents or
the Indebtedness, the prevailing party shall be entitled to recover from each
other party such sums as the court or arbitrator may adjudge to be reasonable
attorneys' fees (including allocated costs for services of in-house counsel) in
the action or proceeding, in addition to costs and expenses otherwise allowed by
law. In all other situations, including any Insolvency Proceeding, the
Guarantors agree to pay all of the Administrative Agent's and each Lender's
costs and expenses, including attorneys' fees (including allocated costs for
services of the Administrative Agent's and each Lender's in-house counsel) which
may be incurred in any effort to collect or enforce the Indebtedness or any part
of it or any term of this Guaranty. Without limiting any rights of the
Administrative Agent or Lenders under the Credit Agreement, all amounts of any
kind due and payable under this Guaranty (whether for principal, interest, and
other costs under the Indebtedness, or for costs, fees, and expenses for which
the Guarantors are directly responsible

                                       8
<PAGE>

hereunder, or otherwise) shall accrue interest from the time the Administrative
Agent or the Lenders make demand therefor hereunder until paid in full in cash
to such Administrative Agent or the Lenders at the Base Rate, as defined in the
Credit Agreement, plus three (3%) percentage points, except to the extent that
any such amounts are then accruing interest under the Indebtedness, in which
case such Base Rate plus 3% interest rate shall not be applied if the effect
would be to compound the interest to which such obligations are subject to under
the Indebtedness.

         24. Covenant. Each Guarantor hereby agrees that it will make dividend
payments on its outstanding preferred stock with its excess cash to the extent
such cash is not required by such Guarantor for its business, consistent with
prudent business practices and its cash requirements.

         25. Integration; Modifications. This Guaranty (a) integrates all the
terms and conditions mentioned in or incidental to this Guaranty, (b) supersedes
all oral negotiations and prior writings with respect to its subject matter, and
(c) is intended by each Guarantor, Administrative Agent and the Lenders as the
final expression of the agreement with respect to the terms and conditions set
forth in this Guaranty and as the complete and exclusive statement of the terms
agreed to by each Guarantor, Administrative Agent and the Lenders. No
representation, understanding, promise or condition shall be enforceable against
any party hereto unless it is contained in this Guaranty. This Guaranty may not
be modified except in a writing signed by both Administrative Agent (with the
consent of the Requisite Lenders) and each Guarantor. No course of prior
dealing, usage of trade, parol or extrinsic evidence of any nature shall be used
to supplement, modify or vary any of the terms hereof. As between Administrative
Agent and the Lenders only, nothing contained in this Guaranty shall alter the
rights and obligations among Administrative Agent and the Lenders set forth in
the Credit Agreement.

         26. Miscellaneous. The illegality or unenforceability of one or more
provisions of this Guaranty shall not affect any other provision. Time is of the
essence in the performance of this Guaranty by Guarantors.

         27. Consent to Jurisdiction and Service of Process. ALL JUDICIAL
PROCEEDINGS BROUGHT AGAINST GUARANTORS ARISING OUT OF OR RELATING TO THIS
GUARANTY, OR ANY OBLIGATIONS HEREUNDER, MAY BE BROUGHT IN ANY STATE COURT OF
COMPETENT JURISDICTION IN THE STATE OF CALIFORNIA OR IN THE UNITED STATES
DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA. BY EXECUTING AND
DELIVERING THIS GUARANTY, EACH GUARANTOR, FOR ITSELF AND IN CONNECTION WITH ITS
PROPERTIES, IRREVOCABLY (I) ACCEPTS GENERALLY AND UNCONDITIONALLY THE
NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (II) WAIVES ANY DEFENSE OF
FORUM NON CONVENIENS; (III) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH
PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, TO SUCH GUARANTOR AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH
SECTION 20; (IV) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (III) ABOVE IS
SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER SUCH GUARANTOR IN ANY SUCH
PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE

                                       9
<PAGE>

AND BINDING SERVICE IN EVERY RESPECT; (V) AGREES THAT ADMINISTRATIVE AGENT
RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
BRING PROCEEDINGS AGAINST SUCH GUARANTOR IN THE COURTS OF ANY OTHER
JURISDICTION; AND (VI) AGREES THAT THE PROVISIONS OF THIS SECTION 27 RELATING TO
JURISDICTION AND VENUE SHALL BE BINDING AND ENFORCEABLE TO THE FULLEST EXTENT
PERMISSIBLE UNDER CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 410.40 OR
OTHERWISE.

         28. Waiver of Jury Trial. EACH GUARANTOR AND ADMINISTRATIVE AGENT
HEREBY AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS GUARANTY. The scope of this
waiver is intended to be all-encompassing of any and all disputes that may be
filed in any court and that relate to the subject matter of this transaction,
including without limitation contract claims, tort claims, breach of duty
claims, and all other common law and statutory claims. Each Guarantor and
Administrative Agent acknowledge that this waiver is a material inducement for
Guarantors and Administrative Agent to enter into a business relationship, that
Guarantors and Administrative Agent have already relied on this waiver in
entering into this Guaranty and that each will continue to rely on this waiver
in their related future dealings. Each Guarantor and Administrative Agent
further warrant and represent that each has reviewed this waiver with its legal
counsel, and that each knowingly and voluntarily waives its jury trial rights
following consultation with legal counsel. THIS WAIVER IS IRREVOCABLE, MEANING
THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL
WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 28 AND EXECUTED BY EACH OF
THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. In the event of
litigation, this Guaranty may be filed as a written consent to a trial by the
court.

         29. Provisional Remedies, Self-Help and Foreclosure. No provision of
this Guaranty shall limit the right of any party to exercise self-help remedies
such as setoff, foreclosure against or sale of any real or personal property
collateral or security.

                  [Remainder of page intentionally left blank]

                                       10
<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed and delivered this
Guaranty as of the date on the first page.

GUARANTOR:

APARTMENT INVESTMENT AND
MANAGEMENT COMPANY

By: /s/ Peter K. Kompaniez
    -------------------------------
    Peter K. Kompaniez
    President

AIMCO/BETHESDA HOLDINGS, INC.

By: /s/ Peter K. Kompaniez
    -------------------------------
    Peter K. Kompaniez
    President

AIMCO/NHP HOLDINGS, INC.

By: /s/ Peter K. Kompaniez
    -------------------------------
    Peter K. Kompaniez
    President

NHP A&R SERVICES, INC.

By: /s/ Peter K. Kompaniez
    -------------------------------
    Peter K. Kompaniez
    President

<PAGE>

AIMCO/NHP PROPERTIES, INC.

By: /s/ Peter K. Kompaniez
    -------------------------------
    Peter K. Kompaniez
    President

NHP MANAGEMENT COMPANY

By: /s/ Patrick Foye
    -------------------------------
    Patrick Foye
    Executive Vice President

<PAGE>

Address Where Notices are to be Sent:

     To Guarantor:              2000 S. Colorado Boulevard
                                Suite 2-1000
                                Denver, Colorado 90071

     To Administrative Agent:   BANK OF AMERICA, N.A.
                                Real Estate Group-Structured Debt
                                CA9-706-06-02
                                555 South Flower Street, 6th Floor
                                Los Angeles, California 90071

     To Lenders:                Per the Credit Agreement

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