Document:

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                              EMPLOYMENT AGREEMENT

     THIS AGREEMENT dated this 1st day of August, 2000 by and between TRIUMPH
GROUP, INC., a Delaware corporation (the "Company"), and Lawrence J. Resnick
("Executive").

                                   WITNESSETH:

     WHEREAS, Executive has been elected Vice President of the Company and

     WHEREAS, the Company wishes to assure itself of Executive's continued
employment by the Company during the period set forth herein; and

     WHEREAS, Executive is willing to serve the Company during such period upon
the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the premises in the mutual agreements
herein contained, the Company and Executive hereby agree as follows:

     (i) TERMS OF EMPLOYMENT. The Company hereby agrees to employ Executive, and
Executive agrees to be employed by the Company, for a term commencing on August
1, 2000 (the "Effective Date") and ending on July 31, 2003 (such term being
hereinafter referred to as the "Period of Employment"), subject to earlier
termination as provided in Section 6 hereof.

     2. DUTIES AND RESPONSIBILITIES. During the Period of Employment, Executive
shall serve as Vice President of the Company and devote substantially all of his
time and effort during normal business hours (reasonable sick leave and
vacations excepted) to the business and affairs of the Company. The Executive
shall report to the Chief Executive Officer of the Company, and shall have such
duties, responsibilities and authority as are delegated to him by the

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Chief Executive Officer. The Executive's primary place of employment during
the Period of Employment shall be Wayne, Pennsylvania, unless changed with the
Executive's consent.

     3. SALARY. During the Period of Employment, the Company shall pay the
Executive, in periodic installments on the same basis as other senior salaried
executives of the Company, a base salary of $220,000 per annum. (the "Base
Salary"), subject to such increases during the Period of Employment as shall be
approved by the Board of Directors of the Company (which increases, when so
approved, to thereafter constitute Executive's Base Salary for purposes of this
Agreement).

     4. INCENTIVE COMPENSATION. In addition to the Base Salary provided in
Section 3 hereof the Company shall pay to Executive, at such times as such
payments are made to other senior salaried executives of the Company and its
subsidiaries (hereinafter referred to as the "Group"), such incentive payments
as shall be approved from time to time by the Board of Directors of the Company
or shall be due Executive pursuant to the terms of incentive compensation plans
approved by the Board of Directors of the Company, subject to such deferral
arrangements as are provided in the Group's Supplemental Executive Retirement
Plan effective April 1, 1994 (the "Supplemental Retirement Plan") or otherwise
approved by the Board of Directors. The Executive's objectives under such plans
shall be set forth in writing annually by the Board of Directors or a duty
authorized committee thereof.

     5. ADDITIONAL BENEFITS AND PERQUISITES.

        (a) EMPLOYEE BENEFIT PLANS. During the Period of Employment, Executive
shall be entitled to participate on substantially the same basis as other senior
salaried executives of the Group in all employee benefit plans maintained in
effect by the Group from

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time to time during the Period of Employment (all such plans hereinafter
referred to as "Employee Benefit Plans").

        (b) PERQUISITES. During the Period of Employment, Executive shall be
entitled to such perquisites and fringe benefits as are generally made available
to the senior salaried executives of the Group.

        (c) LIFE AND DISABILITY INSURANCE. During the Period of Employment,
Executive shall be entitled to participate in the group life and disability
insurance plan made available to the senior salaried executives of the Group.

        (d) VACATION. During the Period of Employment the Executive shall be
entitled to four (4) weeks of vacation during each calendar year.

     6. EARLY TERMINATION.

        (a) DISABILITY. The Company shall have the right to terminate
Executive's employment during the Period of Employment upon not less than thirty
(30) days prior written notice to Executive or his personal representative if,
because of mental or physical disability, Executive shall have been incapable,
with reasonable accommodation, of satisfactorily performing his duties under
Section 2 hereof for a continuous period of one hundred twenty (120) days or for
a total period of two hundred ten (210) days in any three hundred sixty (360)
day period prior to the date of such notice.

        (i) DEATH. In the event of Executive's death during the Period of
Employment, this Agreement shall automatically terminate as of the date of such
death.

        (c) FOR CAUSE. Notwithstanding any other provisions of this Agreement,
the Company may terminate Executive's employment at any time during the Period
of Employment for Cause, as herein defined, upon written notice to the
Executive. As used

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herein, "Cause" shall mean the doing of any willful act which is, in the
judgment of the Board of Directors, materially adverse to the best interests of
the Company or which constitutes common law fraud or a felony.

        (d) WITHOUT CAUSE. The Company may terminate Executive's employment at
any time during the Period of Employment without Cause, as defined in
subparagraph (c) above, upon written notice to the Executive. The decision to
terminate Executive without Cause can be taken only at a duly called meeting of
the Board of Directors of the Company at which Executive is present and afforded
a full opportunity to be heard.

        (e) GOOD REASON. Following a Control Transaction, as herein defined,
Executive may terminate this Agreement for Good Reason, as herein defined. A
"Control Transaction" shall be: (i) a reorganization, merger or consolidation of
the Company unless (A) the Company or a parent or subsidiary of the Company is
the surviving or resulting corporation or (B) the shareholders of the Company
immediately before such transaction own a majority of the outstanding voting
stock (after giving effect to the conversion of all shares of Class D Common
Stock of the Company) in the surviving or resulting corporation or a parent
thereof following the transaction; (ii) the sale by the Company of all or
substantially all of its assets to a purchaser which is not a member of the
Group immediately before such sale; or (iii) any transaction or series of
transactions which results in the acquisition of a majority of the outstanding
voting shares (after giving effect to the conversion of all of the outstanding
Class D Common Stock of the Company) of the Company by a purchaser or purchasers
(A) who are not currently shareholders of the Company and who acquired such
voting shares in a transaction or transactions not involving an offering
registered under the Securities Act of 1933, as amended; (B) which was not a
subsidiary of the Company immediately before such acquisition; or (C) a

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majority of whose outstanding voting shares, immediately following the
acquisition, are owned by persons who were not shareholders of the Company
immediately before the acquisition. "Good Reason," as use herein, shall mean (i)
a determination by Executive in good faith that due to acts of the Company
occurring after the Control Transaction he is unable effectively to carry out
his duties and responsibilities as of the time of the Control Transaction; (ii)
a material reduction in the duties and responsibilities assigned to Executive
pursuant to Section 2 hereof following the Control Transaction; (iii) the
transfer following the Control Transaction of Executive's principal place of
business to a location more than fifty (50) miles from the location as of the
time of the Control Transaction; or (iv) the failure or refusal of the
Successor, as defined in Section 9 hereof, to assume all duties and obligations
of the Company under this Agreement, as contemplated by Section 9.

     7. EFFECTS OF EARLY TERMINATION.

        (a) In the event of the Company's termination of Executive's employment
during the Period of Employment as a result of his disability, Executive shall
be entitled to receive his Base Salary for the month in which such termination
becomes effective and for a period of six (6) months thereafter, without
prejudice to any other payments or disability benefits due Executive under any
Employee Benefit Plan as a result of Executive's disability.

        (b) In the event of Executive's death, Executive's legal representative
shall be entitled to receive Executive's Base Salary through the end of the
sixth month following the month in which Executive's death occurred, without
prejudice to any other payments or benefits due under any Employee Benefit Plan
as a result of Executive's death.

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        (c) In the event of the Company's termination of Executive's employment
during the Period of Employment for Cause, as defined in Section 6(c), the
Company shall have no obligation to pay Executive any compensation or benefits
other than (i) his then current Base Salary to the date of termination and (ii)
payments or benefits due under any Employee Benefits Plans upon or following
such termination.

        (d) In the event the Company terminates Executive's employment during
the Period of Employment without Cause or Executive terminates his employment
during such period for Good Reason, as defined in Section 6(d), the Company
shall pay Executive the following amounts:

           (i) Executive's Base Salary for the balance of the month in which
such termination occurs, plus credit for any vacation earned but not taken
prior to the date of termination;

           (ii) as severance payments, commencing on the last day of the month
in which the termination occurs and on the last day of each month thereafter,
an amount equal to one-twelfth of the Executive's then current Base Salary
for a period of twenty-four (24) months.

           (iii) any payments due under any Employee Benefits Plans upon or
following such termination.

        (e) Under no circumstances shall Executive, upon termination of his
employment hereunder, be entitled to receive any incentive compensation payments
with respect to the fiscal year in which an early termination occurs. Nothing
herein, however, shall affect Executive's right to receive any previously earned
but unpaid deferred compensation

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payments to which Executive may be entitled under the Supplemental Executive
Retirement Plan.

        (f) Except as provided in Section 7(e), during the period Executive
continues to receive payment of his Base Salary following the termination of the
Executive's employment, Executive, his dependents, beneficiaries and estate
shall continue to be entitled to all benefits under all Employee Benefit Plans
as if Executive were still employed during such period under this Agreement.
Executive, to the extent that he has at the time of termination sufficient
service credits or has otherwise satisfied applicable eligibility requirements
under the terms of the Employee Benefit Plans shall be deemed to have retired
from the Company as of such time, and shall be eligible for any and all benefits
and rights provided to retirees at a comparable executive level from the Company
or the Group under all Employee Benefits Plans.

        (g) The severance compensation and benefits provided in this Section 7
shall constitute Executive's sole and exclusive right to severance payments and
benefits upon termination of Executive's employment and no other severance
compensation of any kind, nature and amount shall be payable to Executive in
connection with any termination during the Period of Employment.

     8. TERMINATION NOTICE. Any termination by the Company or by Executive
hereunder shall be communicated by written Notice of Termination to the other
party hereto. For purposes of this Agreement, a "Notice of Termination" shall
mean a written notice which shall indicate the specific termination provision in
this Agreement relied upon and shall set forth in reasonable detail all facts
and circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated. Any such notice shall be by
registered or certified mail and mailed to Executive at the last address he has
filed in writing with the

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Company, or, in the case of the Company, to the Secretary at Four Glenhardie
Corporate Center, 1255 Drummers Lane, Suite 200, Wayne, PA 19087-1565 or
such other address to which the Company's principal executive offices are
removed during the Period of Employment.

     9. SUCCESSORS/BINDING AGREEMENT. The Company shall require any successor or
surviving entity in any Control. Transaction ("Successor"), by agreement in form
and substance satisfactory to Executive, expressly to assume and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform if no such succession had taken place.
Regardless of whether such agreement is executed, this Agreement shall be
binding upon any Successor in accordance with the operation of law and such
Successor shall be deemed the "Company" for purposes of this Agreement. This
Agreement shall inure to the benefit of and be enforceable by Executive and his
personal or legal representative, executors, administrators, successors, heirs,
distributees, devisees and legatees.

     10. SEVERABILITY. In the event any provision or portion of this Agreement
shall be determined to be invalid or unenforceable for any reason, the remaining
provisions of this Agreement shall remain in full force and effect to the
fullest extent permitted by law.

     11. AMENDMENT/WAIVER. This Agreement may not be amended, modified, waived
or canceled except by a writing signed by each party hereto. No waiver by either
party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or any prior or subsequent time.

     12. ENTIRE AGREEMENT. This Agreement constitutes the entire Agreement
between the parties relative to the employment of the Executive by the Company
during the

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Period of Employment. Any previous agreement among the parties not mentioned
in this Agreement is superseded by this Agreement,

     13. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania.

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

                                            TRIUMPH GROUP, INC.

                                            By:        /s/ Richard C. Ill
                                                       -------------------------
                                                       Richard C. Ill

                                            Title:     President & Ceo
                                                       -------------------------

                                            Executive: /s/ Lawrence J. Resnick
                                                       -------------------------SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      among

                        GABLES REALTY LIMITED PARTNERSHIP

                             The Banks Listed Herein

                              WACHOVIA BANK, N.A.,
                            as Administrative Agent,

                           FIRST UNION NATIONAL BANK,
                              as Syndication Agent,

                                       and

                            THE CHASE MANHATTAN BANK
                             as Documentation Agent

                                 August 14, 2000

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                                TABLE OF CONTENTS

                      AMENDED AND RESTATED CREDIT AGREEMENT

                                                                           Page

ARTICLE I           DEFINITIONS..............................................1
     SECTION 1.01.  Definitions..............................................1
     SECTION 1.02.  Accounting Terms and Determinations.....................16
     SECTION 1.03.  References..............................................16
     SECTION 1.04.  Use of Defined Terms....................................17
     SECTION 1.05.  Terminology.............................................17

ARTICLE II          THE CREDITS.............................................17
     SECTION 2.01.  Commitments to Lend.....................................17
     SECTION 2.02.  Method of Borrowing.....................................17
     SECTION 2.03.  Money Market Loans......................................19
     SECTION 2.04.  Notes...................................................22
     SECTION 2.05.  Maturity of Loans.......................................23
     SECTION 2.06.  Interest Rates..........................................24
     SECTION 2.07.  Fees....................................................26
     SECTION 2.08.  Optional Termination or Reduction of Commitments........27
     SECTION 2.09.  Mandatory Reduction and Termination of Commitments......27
     The Commitments shall terminate on the Termination Date and any
                    Loans then outstanding (together with accrued
                    interest thereon) shall be due and payable on such
                    date. In the event of a Change in Control, the
                    Administrative Agent (acting at the direction of
                    the Required Banks) may terminate the Commitments
                    on a date specified in a notice to the Borrowers,
                    which date (i) must be at least 3 Domestic Business
                    Days following the date of such notice,
                    and (ii) shall constitute the Termination Date for
                    all purposes hereunder..................................27
     SECTION 2.10.  Optional Prepayments....................................27
     SECTION 2.11.  Mandatory Prepayments...................................27
     SECTION 2.12.  General Provisions as to Payments.......................28
     SECTION 2.13.  Computation of Interest and Fees........................29

ARTICLE  III        CONDITIONS TO BORROWINGS................................29
     SECTION 3.01.  Conditions to First Borrowing...........................29
     SECTION 3.02.  Conditions to All Borrowings............................31

ARTICLE IV          REPRESENTATIONS AND WARRANTIES..........................32
     SECTION 4.01.  Partnership or Corporate Existence and Power............32
     SECTION 4.02.  Partnership or Corporate and Governmental
                         Authorization; No Contravention....................32
     SECTION 4.03.  Binding Effect..........................................32
     SECTION 4.04.  Financial and Property Information......................32
     SECTION 4.05.  No Litigation...........................................33
     SECTION 4.06.  Compliance with ERISA...................................33
     SECTION 4.07.  Compliance with Laws; Payment of Taxes..................33
     SECTION 4.08.  Subsidiaries............................................34
     SECTION 4.09.  Investment Company Act..................................34
     SECTION 4.10.  Public Utility Holding Company Act......................34
     SECTION 4.11.  Ownership of Property...................................34
     SECTION 4.12.  No Default..............................................34
     SECTION 4.13.  Full Disclosure.........................................34
     SECTION 4.14.  Environmental Matters...................................34
     SECTION 4.15.  Partner Interests and Capital Stock.....................35
     SECTION 4.16.  Margin Stock............................................35
     SECTION 4.17.  Insolvency..............................................35
     SECTION 4.18.  Insurance...............................................36
     SECTION 4.19.  Real Estate Investment Trust............................36

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ARTICLE V           COVENANTS...............................................36
     SECTION 5.01.  Information.............................................36
     SECTION 5.02.  Inspection of Property, Books and Records...............37
     SECTION 5.03.  Total Secured Debt......................................38
     SECTION 5.04.  Ratio of Total Debt to Total Assets Value...............38
     SECTION 5.05.  Interest Coverage.......................................38
     SECTION 5.06.  Restricted Payments.....................................38
     SECTION 5.07.  Loans or Advances.......................................38
     SECTION 5.08.  Purchases of Stock by Guarantors........................39
     SECTION 5.09.  Investments.............................................39
     SECTION 5.10.  Dissolution.............................................39
     SECTION 5.11.  Consolidations, Mergers and Sales of Assets.............39
     SECTION 5.12.  Use of Proceeds.........................................40
     SECTION 5.13.  Compliance with Laws; Payment of Taxes..................41
     SECTION 5.14.  Insurance...............................................41
     SECTION 5.15.  Change in Fiscal Year...................................41
     SECTION 5.16.  Maintenance of Property; Principal Business.............41
     SECTION 5.17.  Environmental Notices...................................41
     SECTION 5.18.  Environmental Matters...................................41
     SECTION 5.19.  Environmental Release...................................42
     SECTION 5.20.  Transactions with Affiliates............................42
     SECTION 5.21.  Amendment of Other Agreements...........................42
     SECTION 5.22.  Qualification as a Real Estate Investment Trust;
                         General Partner....................................42
     SECTION 5.23.  Significant Subsidiaries to be Guarantors;
                         Election to Become Guarantor.......................42
     SECTION 5.24.  Certain Provisions Regarding Eligible Properties........42
     SECTION 5.25.  Restrictions of Certain Additional Guarantees...........43
     SECTION 5.26.  Maintenance of Existence................................43
     SECTION 5.27.  Ratio of Total Unencumbered Assets Value to Unsecured
                         Funded Debt........................................43
     SECTION 5.28.  Consolidated Fixed Charges Coverage Ratio...............43

ARTICLE VI          DEFAULTS................................................43
     SECTION 6.01.  Events of Default.......................................43
     SECTION 6.02.  Notice of Default.......................................45

ARTICLE VII         THE ADMINISTRATIVE AGENT................................45
     SECTION 7.01.  Appointment; Powers and Immunities......................45
     SECTION 7.02.  Reliance by Administrative Agent........................46
     SECTION 7.03.  Defaults................................................46
     SECTION 7.04.  Rights of Administrative Agent and its Affiliates
                         as a Bank..........................................47
     SECTION 7.05.  Indemnification.........................................47
     SECTION 7.06.  Consequential Damages...................................47
     SECTION 7.07.  Payee of Note Treated as Owner..........................48
     SECTION 7.08.  Nonreliance on Administrative Agent and Other Banks.....48
     SECTION 7.09.  Failure to Act..........................................48
     SECTION 7.10.  Resignation or Removal of Administrative Agent..........48
     SECTION 7.11.  Administrative Agent's Right to Replace Non-Qualifying
                         Bank...............................................49

ARTICLE VIII        CHANGE IN  CIRCUMSTANCES; COMPENSATION..................50
     SECTION 8.01.  Basis for Determining Interest Rate Inadequate or
                         Unfair.............................................50
     SECTION 8.02.  Illegality..............................................50
     SECTION 8.03.  Increased Cost and Reduced Return.......................51
     SECTION 8.04.  Base Rate Loans Substituted for Affected Euro-Dollar
                         Loans..............................................52
     SECTION 8.05.  Compensation............................................52

ARTICLE IX          MISCELLANEOUS...........................................52
     SECTION 9.01.  Notices.................................................53
     SECTION 9.02.  No Waivers..............................................53
     SECTION 9.03.  Expenses; Documentary Taxes.............................53
     SECTION 9.04.  Indemnification.........................................53
     SECTION 9.05.  Sharing of Setoffs......................................54
     SECTION 9.06.  Amendments and Waivers..................................54
     SECTION 9.07.  No Margin Stock Collateral..............................55
     SECTION 9.08.  Successors and Assigns..................................55
     SECTION 9.09.  Confidentiality.........................................57
     SECTION 9.10.  Representation by Banks.................................57
     SECTION 9.11.  Obligations Several.....................................57
     SECTION 9.12.  Georgia Law.............................................57
     SECTION 9.13.  Severability............................................57
     SECTION 9.14.  Interest................................................58
     SECTION 9.15.  Interpretation..........................................58
     SECTION 9.16.  Waiver of Jury Trial; Consent to Jurisdiction...........58
     SECTION 9.17.  Counterparts............................................59
     SECTION 9.18.  Source of Funds - ERISA.................................59
     SECTION 9.19.  Entire Agreement........................................59
     SECTION 9.20.  More Restrictive Agreements.............................59
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EXHIBIT A-1    Form of Syndicated Loan Note

EXHIBIT A-2    Form of Money Market Loan Note

EXHIBIT B      Form of Opinion of Counsel for the Borrowers and Guarantors

EXHIBIT C      Form of Opinion of Special Counsel for the Administrative Agent

EXHIBIT D      Form of Assignment and Acceptance

EXHIBIT E      Form of Notice of Borrowing

EXHIBIT F      Form of Compliance Certificate

EXHIBIT G      Form of Closing Certificate

EXHIBIT H      Form of Borrowing Base Certificate

EXHIBIT I      Form of Guaranty

EXHIBIT J      Form of Contribution Agreement

EXHIBIT K      Form of Money Market Quote Request

EXHIBIT L      Form of Money Market Quote

Schedule 4.08  Subsidiaries

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                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     SECOND AMENDED AND RESTATED  CREDIT  AGREEMENT  dated as of August 14, 2000
among GABLES REALTY LIMITED PARTNERSHIP, the BANKS listed on the signature pages
hereof, WACHOVIA BANK, N.A., as Administrative Agent, FIRST UNION NATIONAL BANK,
as Syndication Agent, and THE CHASE MANHATTAN BANK, as Documentation Agent.

The parties hereto agree as follows:

     This Second  Amended and Restated  Credit  Agreement  is an  amendment  and
restatement of the  $225,000,000  Amended and Restated  Credit  Agreement by and
among the Borrowers,  Wachovia Bank, N.A., First Union National Bank, Chase Bank
of Texas, National Association, AmSouth Bank, Guaranty Federal Bank, F.S.B., PNC
Bank,  National  Association,  and  Commerzbank  AG,  New York and Grand  Cayman
Branches,  Wachovia  Bank,  N.A.  , as the  Administrative  Agent,  First  Union
National  Bank,  as  Syndication  Agent  and  Chase  Bank  of  Texas,   National
Association,  as Documentation Agent, dated as of May 13, 1998, as amended prior
to the date hereof by First  Amendment to Credit  Agreement dated as of June 14,
1999 and Second  Amendment to Credit Agreement dated as of November 23, 1999 (as
so amended  and  amended  and  restated,  the  "Original  Agreement"),  which is
superseded hereby.

                                    ARTICLE I

                                   DEFINITIONS

     SECTION 1.01. Definitions
                   -----------

     The terms as defined in this Section  1.01 shall,  for all purposes of this
Agreement  and any  amendment  hereto  (except  as  herein  otherwise  expressly
provided or unless the context otherwise requires),  have the meanings set forth
herein:

     "Adjusted  London  Interbank  Offered  Rate" has the  meaning  set forth in
Section 2.06(c).

     "Adjusted Total Assets Value" means Total Assets Value;  provided,  that in
calculating  Adjusted  Total Assets  Value,  clauses (v),  (vi) and (vii) of the
definition of Total Assets Value shall be excluded.

     "Administrative  Agent"  means  Wachovia  Bank,  N.A.,  a national  banking
association  organized  under the laws of the United  States of America,  in its
capacity as administrative agent for the Banks hereunder, and its successors and
permitted assigns in such capacity.

     "Administrative   Agent's  Letter  Agreement"  means  that  certain  letter
agreement,  dated as of June 9, 2000  between the Parent and the  Administrative
Agent,  but only as it relates to certain  fees from time to time payable by the
Borrowers to the Administrative Agent.

     "Affiliate" of any relevant  Person means (i) any Person that directly,  or
indirectly through one or more  intermediaries,  controls the relevant Person (a
"Controlling  Person"),  (ii) any Person  (other than the  relevant  Person or a
Subsidiary  of the relevant  Person)  which is  controlled by or is under common
control with a Controlling  Person, or (iii) any Person (other than a Subsidiary
of the  relevant  Person)  of  which  the  relevant  Person  owns,  directly  or
indirectly,  20% or more of the common stock or equivalent equity interests.  As
used herein, the term "control" means possession, directly or indirectly, of the
power to  direct or cause the  direction  of the  management  or  policies  of a
Person,  whether  through the  ownership  of voting  securities,  by contract or
otherwise.

     "Agreement" means this Credit  Agreement,  together with all amendments and
supplements hereto.

     "Applicable Margin" has the meaning set forth in Section 2.06(a).

     "Assignee" has the meaning set forth in Section 9.08(c).

     "Assignment and Acceptance" means an Assignment and Acceptance  executed in
accordance with Section 9.08(c) in the form attached hereto as Exhibit D.

     "Authority" has the meaning set forth in Section 8.02.

<PAGE>

     "Bank"  means each bank listed on the  signature  pages  hereof as having a
Commitment, and its successors and assigns.

     "Base  Rate"  means for any Base Rate Loan for any day,  the rate per annum
equal to the higher as of such day of (i) the Prime Rate, or (ii) three quarters
of one percent above the Federal  Funds Rate.  For purposes of  determining  the
Base Rate for any day, changes in the Prime Rate or the Federal Funds Rate shall
be effective on the date of each such change.

     "Base Rate Loan" means a Loan which bears or is to bear  interest at a rate
based upon the Base Rate,  and is to be made as a Base Rate Loan pursuant to the
applicable Notice of Borrowing, Section 2.02(f), or Article VIII, as applicable.

     "Borrowers"  means,  individually  and  collectively,  as the context shall
require,  the  Parent  and  Gables-TN,  as joint and  several  obligors  for all
purposes under this Agreement and the Notes.

     "Borrowing" means a borrowing  hereunder  consisting of Syndicated Loans or
Money Market Loans.  A Borrowing is a  "Syndicated  Borrowing" if such Loans are
Syndicated Loans, a "Euro-Dollar Borrowing" if such Loans are Euro-Dollar Loans,
a "Money  Market  Borrowing"  if such Loans are Money  Market Loans and a "Fixed
Rate Borrowing" if such Loans are Fixed Rate Loans.

     "Borrowing  Base" means the sum of each of the following,  as determined by
reference to the most recent  Borrowing Base Certificate  furnished  pursuant to
Section 3.01(h) or Section 5.01(h), as applicable:

     (i) an amount  equal to the  product  of:  (x)  7.22222;  times (y) the Net
Operating  Income  for the 12 month  period  ending on the last day of the month
just ended prior to the date of determination, from each Eligible Property which
either was on average at least 90% Economically Occupied during, or with respect
to  which  the  Construction  Period  Termination  Date  occurred  prior  to the
commencement of, such 12 month period;  provided,  that if an Eligible  Property
satisfies  the  criteria  set forth in both this  clause (i) and in clause  (ii)
below, it shall be included in the calculations only in this clause (i); plus

     (ii) an amount  equal to the  product of: (x)  28.88889;  times (y) the Net
Operating Income for the 3 month period ending on the last day of the month just
ended  prior to the date of  determination,  from each  Eligible  Property  with
respect to which the Construction Period Termination Date did not occur prior to
the commencement of the 12 month period ending on the last day of the month just
ended prior to the date of determination; plus

     (iii) an amount equal to the lesser of: (x) 50% of the aggregate  amount of
cash expenditures  (including indirect costs internally  allocated in accordance
with  GAAP) as of the  last day of the  month  just  ended  prior to the date of
determination on all Eligible Properties which consist of Properties as to which
the Construction Period Termination Date has not occurred as of such last day of
the month just ended  (provided,  that no more than an  aggregate of 20% of such
amount shall be included for land on which construction has not commenced);  and
(y) 30% of the  aggregate  Commitments  in effect on the date of  determination;
less

     (iv) the aggregate amount of all outstanding  unsecured  Consolidated  Debt
including standby letters of credit, but excluding the outstanding balance under
this Agreement.

     "Borrowing Base Certificate" means a certificate  substantially in the form
of Exhibit  H, duly  executed  by the chief  financial  officer  of the  General
Partner,  setting forth in reasonable detail the calculations for each component
of the  Borrowing  Base,  and  certifying  availability  of funds  sufficient to
complete all Eligible Properties then under construction.

     "Capital  Stock"  means  any  nonredeemable  capital  stock  or  shares  of
beneficial ownership of GBP or any Consolidated Subsidiary (to the extent issued
to a Person other than GBP), whether common or preferred.

     "CERCLA" means the Comprehensive  Environmental  Response  Compensation and
Liability Act, 42 U.S.C.  Section-9601 et. seq. and its implementing regulations
and amendments.

     "CERCLIS" means the Comprehensive  Environmental  Response Compensation and
Liability Inventory System established pursuant to CERCLA.

     "Change in  Control"  shall mean the  occurrence  of any of the  following:
(i) more  than 50% of the  outstanding  voting  common  stock  of GBP is  owned,
directly or  indirectly,  by less than 6  "individuals"  (as provided in Section
542(a)(2) of the Code);  or (ii) a majority of the Persons  comprising the Board
of Directors of GBP shall during any 12 month period cease to serve on the Board
of Directors of GBP for any reason other than  disability or death; or (iii) the
Parent or any  Guarantor  shall fail to maintain  their current  partnership  or
corporate  status; or (iv) GBP shall fail to own at least 65% of the partnership
interests in the Parent.

<PAGE>

     "Change of Law" shall have the meaning set forth in Section 8.02.

     "Closing Certificate" has the meaning set forth in Section 3.01(e).

     "Closing Date" means August 14, 2000.

     "Code"  means  the  Internal  Revenue  Code of  1986,  as  amended,  or any
successor Federal tax code.

     "Commitment"  means,  with  respect to each Bank,  (i) the amount set forth
opposite the name of such Bank on the signature pages hereof, and (ii) as to any
Bank which enters into any Assignment and Acceptance (whether as transferor Bank
or as Assignee  thereunder),  the amount of such Bank's  Commitment after giving
effect to such  Assignment  and  Acceptance,  in each case as such amount may be
reduced from time to time pursuant to Sections 2.08 and 2.09.

     "Compliance Certificate" has the meaning set forth in Section 5.01(c).

     "Consolidated  Debt"  means  at any date  the  Debt of the  Parent  and its
Consolidated Subsidiaries, determined on a consolidated basis as of such date.

     "Consolidated  Fixed Charges" for any period means the sum of the following
of the Parent and its  Consolidated  Subsidiaries,  determined on a consolidated
basis  (x)  Consolidated  Interest  Expense,  plus (y) all  scheduled  principal
payments  (excluding  balloon  payments  payable  at  maturity),  plus  (z)  all
preferred dividends paid or accrued.

     "Consolidated  Fixed Charges  Coverage  Ratio" means,  at any date, for the
Fiscal  Quarter  most  recently  ended and the  immediately  preceding  3 Fiscal
Quarters,  the ratio of: (i) Consolidated  Income Available for Debt Service; to
(ii) Consolidated Fixed Charges.

     "Consolidated Income Available for Debt Service" shall mean,  calculated on
a consolidated  basis,  the sum of the Parent's and its  Subsidiaries':  (i) net
income  (but  excluding  equity in, and  income and losses of,  joint  ventures)
before minority interests and extraordinary  items in accordance with GAAP, plus
(ii)  depreciation  and  amortization,  plus  (iii)  losses  from sales or joint
ventures,  plus (iv) increases in deferred taxes and other non-cash items, minus
(v) gains from sales or joint  ventures,  minus (vi) decreases in deferred taxes
and other non-cash items,  plus (vii) interest expense and letter of credit fees
on tax exempt bonds and plus (viii) taxes (excluding ad valorem taxes).

     "Consolidated  Income  Available for  Distribution"  means, in any calendar
year,  the  sum of  the  following  for  such  calendar  year,  calculated  on a
consolidated basis for the Parent and its Subsidiaries:  (i) Consolidated Income
Available for Debt Service, less (ii) interest expense and letter of credit fees
on tax exempt bonds,  and less (iii) taxes (excluding ad valorem taxes and taxes
on gains  described  in clause  (v) of the  definition  of  Consolidated  Income
Available for Debt Service).

     "Consolidated Interest Expense" for any period means interest in respect of
Debt (excluding  capitalized  interest) of the Parent or any of its Consolidated
Subsidiaries outstanding during such period.

     "Consolidated  Subsidiary" means at any date any Subsidiary or other entity
the accounts of which, in accordance with GAAP, would be consolidated with those
of the Parent in its consolidated financial statements as of such date.

     "Consolidated  Total Assets"  means,  at any time,  the total assets of the
Parent and its Consolidated Subsidiaries, determined on a consolidated basis, as
set forth or  reflected  on the most recent  consolidated  balance  sheet of the
Parent and its Consolidated Subsidiaries, prepared in accordance with GAAP.

     "Construction  Period Termination Date" means, with respect to construction
of  Multi-Family  Properties and Joint Venture  Properties,  the date which is 3
months after the issuance of a permanent  certificate  of occupancy for the last
unit of such Multi-Family Property or a Joint Venture Property.

     "Contribution  Agreement"  means the  Contribution  Agreement  of even date
herewith in substantially  the form of Exhibit J to be executed by the Borrowers
and the Guarantors.

     "Controlled  Group" means all members of a controlled group of corporations
and all trades or businesses  (whether or not incorporated) under common control
which,  together with the Parent, are treated as a single employer under Section
414 of the Code.

     "Current  Maturities  of Long Term Debt"  means all  payments in respect of
Long Term Debt (other than Debt under this  Agreement)  that are  required to be
made  within  one  year  from  the  date of  determination,  whether  or not the
obligation to make such  payments  would  constitute a current  liability of the
obligor under GAAP, excluding,  however, any such payment required to be made on
the ultimate maturity date of such Debt.

<PAGE>

     "Debt"  of any  Person  means at any  date,  without  duplication,  (i) all
obligations  of such Person for borrowed  money,  (ii) all  obligations  of such
Person evidenced by bonds,  debentures,  notes or other similar instruments (but
excluding  such  obligations  to the extent of  principal  amounts  escrowed  or
maintained in a trust or escrow  account or other fund with one or more trustees
pursuant to the  applicable  indenture  or other  agreement  pertaining  to such
obligations),  (iii) all obligations of such Person to pay the deferred purchase
price of property or services,  except  trade  accounts  payable  arising in the
ordinary course of business, (iv) all obligations of such Person as lessee under
capital  leases,  (v) all  obligations  of such Person to reimburse  any bank or
other Person in respect of amounts payable under a banker's acceptance, (vi) all
Redeemable  Preferred  Stock of such  Person  (in the  event  such  Person  is a
corporation),  (vii) all  obligations  of such Person to  reimburse  any bank or
other  Person in  respect  of  amounts  paid or to be paid or to be paid under a
letter of credit or similar instrument, (viii) all obligations of others secured
by a Lien on any  asset of such  Person,  whether  or not such  obligations  are
assumed by such Person,  and (ix) all  obligations of others  Guaranteed by such
Person.

     "Debt  Rating"  means at any time  whichever is the higher of the rating of
the Parent's senior unsecured,  unenhanced debt (or, if no such debt exists, its
issuer  credit  rating  for debt of such type) by  Moody's  Investor  Service or
Standard  and  Poor's  (as such  rating  may  change  from time to time,  either
pursuant  to Section  2.06(f) or  otherwise)  (provided,  that in the event of a
double or greater split rating,  the rating  immediately  above the lower rating
shall  apply),  or if only one of them  rates  the  Parent's  senior  unsecured,
unenhanced debt, such rating.

     "Default"  means  any  condition  or event  which  constitutes  an Event of
Default  or which  with the  giving of  notice  or lapse of time or both  would,
unless cured or waived, become an Event of Default.

     "Default  Rate" means,  with respect to any Loan, on any day, the sum of 2%
plus the interest rate (including the Applicable  Margin) which is applicable to
such Loan hereunder.

     "Dollars" or "$" means  dollars in lawful  currency of the United States of
America.

     "Domestic  Business  Day" means any day except a Saturday,  Sunday or other
day on  which  commercial  banks  in  Georgia  are  authorized  by law to  close
(including,  without  limitation,  any day which is a federal banking holiday in
the United States of America).

     "Economically Occupied" means, with respect to any Eligible Property, Joint
Venture Property or other Multi-Family  Property and in reference to a specified
percentage,  that tenants paying rental  obligations  are occupying at least the
specified  percentage  of the total number of units at such  Eligible  Property,
Joint Venture Property or other Multi-Family Property, as the case may be.

     "Eligible  Property" means (i) a Multi-Family  Property of the Borrowers or
any of the Guarantors consisting of real estate as to which there is no Mortgage
in existence encumbering such Property and (ii) the Wachovia LC Properties,  and
such Multi-Family  Property or Wachovia LC Property is subject to no other Liens
or encumbrances, other than Permitted Encumbrances.

     "Environmental  Authority"  means any  foreign,  federal,  state,  local or
regional  government  that exercises any form of jurisdiction or authority under
any Environmental Requirement.

     "Environmental   Authorizations"  means  all  licenses,   permits,  orders,
approvals,  notices,  registrations or other legal  prerequisites for conducting
the business of the Borrowers or any  Subsidiary  required by any  Environmental
Requirement.

     "Environmental Judgments and Orders" means all judgments, decrees or orders
arising  from or in any way  associated  with  any  Environmental  Requirements,
whether or not entered upon consent, or written agreements with an Environmental
Authority  or  other  entity  arising  from or in any way  associated  with  any
Environmental Requirement,  whether or not incorporated in a judgment, decree or
order.

     "Environmental   Liabilities"  means  any  liabilities,   whether  accrued,
contingent  or  otherwise,  arising  from  and in any way  associated  with  any
Environmental Requirements.

     "Environmental Notices" means notice from any Environmental Authority or by
any other  person or  entity,  of  possible  or  alleged  noncompliance  with or
liability under any Environmental Requirement,  including without limitation any
complaints,  citations,  demands or requests from any Environmental Authority or
from  any  other  person  or  entity  for  correction  of any  violation  of any
Environmental  Requirement or any investigations concerning any violation of any
Environmental Requirement.

<PAGE>

     "Environmental   Proceedings"   means  any   judicial   or   administrative
proceedings  arising  from  or in any  way  associated  with  any  Environmental
Requirement.

     "Environmental  Releases"  means releases as defined in CERCLA or under any
applicable state or local environmental law or regulation.

     "Environmental  Requirements"  means  any  legal  requirement  relating  to
health,  safety  or  the  environment  and  applicable  to  the  Borrowers,  any
Subsidiary or the Properties,  including but not limited to any such requirement
under CERCLA or similar state legislation and all federal, state and local laws,
ordinances, regulations, orders, writs, decrees and common law.

     "ERISA"  means the Employee  Retirement  Income  Security  Act of 1974,  as
amended from time to time, or any successor  law. Any reference to any provision
of ERISA shall also be deemed to be a reference  to any  successor  provision or
provisions thereof.

     "Euro-Dollar  Business  Day"  means  any  Domestic  Business  Day on  which
dealings in Dollar deposits are carried out in the London interbank market.

     "Euro-Dollar  Loan"  means a Loan which  bears or is to bear  interest at a
rate based upon the Adjusted London Interbank  Offered Rate, and to be made as a
Euro-Dollar Loan pursuant to the applicable Notice of Borrowing.

     "Euro-Dollar  Reserve  Percentage"  has the  meaning  set forth in  Section
2.06(d).

     "Event of Default" has the meaning set forth in Section 6.01.

     "Executive  Officer"  means any of the  following  officers  of the General
Partner:  the chairman,  the president,  the chief financial officer,  the chief
accounting officer, any senior vice president and the secretary.

     "Facility Fee" has the meaning set forth in Section 2.07(a).

     "Federal  Funds  Rate"  means,  for any day,  the rate per  annum  (rounded
upward,  if necessary,  to the next higher  1/100th of 1%) equal to the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal  Reserve  System  arranged  by Federal  funds  brokers  on such day,  as
published by the Federal  Reserve Bank of New York on the Domestic  Business Day
next succeeding such day, provided that (i) if the day for which such rate is to
be  determined  is not a Domestic  Business Day, the Federal Funds Rate for such
day  shall be such  rate on such  transactions  on the next  preceding  Domestic
Business Day as so published on the next succeeding  Domestic  Business Day, and
(ii) if such rate is not so published  for any day,  the Federal  Funds Rate for
such day shall be the average rate charged to the  Administrative  Agent on such
day on such transactions, as determined by the Administrative Agent.

     "Fiscal Quarter" means any fiscal quarter of the Parent.

     "Fiscal Year" means any fiscal year of the Parent.

     "Fixed Rate Loan" means any Euro-Dollar Loan or Money Market Loan.

     "Funded  Debt"  means,  without  duplication,  Long-Term  Debt plus Current
Maturities of Long-Term Debt.

     "GAAP" means generally  accepted  accounting  principles applied on a basis
consistent  with those which, in accordance with Section 1.02, are to be used in
making the calculations for purposes of determining compliance with the terms of
this Agreement.

     "Gables-TN" means Gables-Tennessee Properties,  L.L.C., a Tennessee limited
liability company, and its successors and permitted assigns.

     "GBP" means Gables Residential Trust, a Maryland trust.

     "General  Partner" means the sole general partner of the Parent (which,  on
the Closing Date, is Gables GP, Inc.) or, if there is more than one such general
partner, the managing general partner of the Parent.

     "Guarantee" by any Person means any obligation, contingent or otherwise, of
such Person directly or indirectly  guaranteeing any Debt or other obligation of
any other Person and,  without  limiting the  generality of the  foregoing,  any
obligation,  direct or indirect,  contingent or otherwise, of such Person (i) to
secure,  purchase or pay (or advance or supply funds for the purchase or payment
of) such Debt or other  obligation  (whether  arising  by virtue of  partnership
arrangements,  by agreement to keep-well,  to purchase assets, goods, securities
or services,  to provide  collateral  security,  to take-or-pay,  or to maintain
financial  statement  conditions  or  otherwise)  or (ii)  entered  into for the
purpose  of  assuring  in any other  manner  the  obligee  of such Debt or other
obligation  of the payment  thereof or to protect such  obligee  against loss in
respect  thereof (in whole or in part),  provided that the term Guarantee  shall
not include  endorsements  for  collection or deposit in the ordinary  course of
business. The term "Guarantee" used as a verb has a corresponding meaning.
<PAGE>

     "Guaranty"   means  the  Guaranty   Agreement  of  even  date  herewith  in
substantially  the  form  of  Exhibit  I  to  be  executed  by  the  Guarantors,
unconditionally and jointly and severally Guaranteeing payment of the Loans, the
Notes and all other obligations of the Borrowers to the Administrative Agent and
the Banks hereunder, including without limitation all principal, interest, fees,
costs, and compensation and indemnification amounts.

     "Guarantors" means any one or more or all of the following,  as the context
shall require:  (i) GBP and Gables GP, Inc., a Texas  corporation;  and (ii) any
Significant  Subsidiary which becomes a Guarantor  pursuant to Section 5.23; and
(iii) any other  Subsidiary  which  elects to  become a  Guarantor  pursuant  to
Section  5.23;  in each case subject to the  provisions  of the last sentence of
Section 5.11.

     "Hazardous Materials" includes,  without limitation, (a) solid or hazardous
waste,  as defined in the Resource  Conservation  and  Recovery Act of 1980,  42
U.S.C. Section 6901 et seq. and its implementing regulations and amendments,  or
in any applicable state or local law or regulation,  (b) "hazardous  substance",
"pollutant",  or "contaminant" as defined in CERCLA,  or in any applicable state
or local law or  regulation,  (c) gasoline,  or any other  petroleum  product or
by-product,  including, crude oil or any fraction thereof, (d) toxic substances,
as defined in the Toxic  Substances  Control Act of 1976,  or in any  applicable
state  or  local  law  or  regulation  and  (e)  insecticides,   fungicides,  or
rodenticides, as defined in the Federal Insecticide,  Fungicide, and Rodenticide
Act of 1975, or in any applicable state or local law or regulation, as each such
Act, statute or regulation may be amended from time to time.

     "Interest  Period" means:

     (1) with respect to each Euro-Dollar  Borrowing,  the period  commencing on
the date of such Borrowing and ending on the  numerically  corresponding  day in
the first, second,  third or sixth month thereafter,  as the Borrowers may elect
in the applicable Notice of Borrowing; provided that:

          (a) any Interest  Period  (subject to paragraph (c) below) which would
     otherwise  end on a day which is not a  Euro-Dollar  Business  Day shall be
     extended  to the next  succeeding  Euro-Dollar  Business  Day  unless  such
     Euro-Dollar  Business Day falls in another  calendar  month,  in which case
     such Interest Period shall end on the next preceding  Euro-Dollar  Business
     Day;

          (b) any Interest Period which begins on the last Euro-Dollar  Business
     Day of a  calendar  month  (or on a day for which  there is no  numerically
     corresponding  day in the  appropriate  subsequent  calendar  month) shall,
     subject to paragraph (c) below, end on the last Euro-Dollar Business Day of
     the appropriate subsequent calendar month; and

          (c) no  Interest  Period  may be  selected  which  begins  before  the
     Termination Date and would otherwise end after the Termination Date.

     (2) with respect to each Base Rate Borrowing,  the period commencing on the
date of such Borrowing and ending 30 days thereafter; provided that:

          (a) any Interest  Period  (subject to paragraph (b) below) which would
     otherwise  end on a day  which  is not a  Domestic  Business  Day  shall be
     extended to the next succeeding Domestic Business Day; and

          (b) no Interest  Period which begins before the  Termination  Date and
     would otherwise end after the Termination Date may be selected.

     (3) with respect to each Money Market  Borrowing,  the period commencing on
the date of such Borrowing and ending on the Stated  Maturity Date or such other
date or dates as may be specified in the applicable Money Market Quote; provided
that:

          (a) any  Interest  Period  (subject  to clause (b) below)  which would
     otherwise  end on a day  which  is not a  Domestic  Business  Day  shall be
     extended to the next succeeding Domestic Business Day; and

          (b) no  Interest  Period  may be  selected  which  begins  before  the
     Termination Date and would otherwise end after the Termination Date.

     "Investment"  means  any  investment  in any  Person,  whether  by means of
purchase or acquisition  of  obligations  or securities of such Person,  capital
contribution  to such Person,  loan or advance to such Person,  making of a time
deposit with such Person,  Guarantee or  assumption  of any  obligation  of such
Person or otherwise.

     "Joint  Venture"  means  a  Person  (i)  whose  primary   business  is  the
development or ownership of Multi-Family Properties, (ii) in which the Parent or
any of its  Consolidated  Subsidiaries  owns a legal  and  beneficial  ownership
interest and (iii) whose accounts at any date are not consolidated with those of
the  Parent  in  its  consolidated  financial  statements  as of  such  date  in
accordance with GAAP.

<PAGE>

     "Joint Venture Property" means a Multi-Family  Property which is owned by a
Joint Venture.

     "Joint  Venture  Share"  means,  with  respect  to any Joint  Venture,  the
percentage of legal and beneficial ownership interest in such Joint Venture held
by the Parent or by any of its Consolidated Subsidiaries.

     "Lending  Office" means, as to each Bank, its office located at its address
set forth on the signature  pages hereof (or  identified on the signature  pages
hereof as its Lending  Office) or such other  office as such Bank may  hereafter
designate  as  its  Lending   Office  by  notice  to  the   Borrowers   and  the
Administrative Agent.

     "Lien" means, with respect to any asset, any mortgage, deed to secure debt,
deed  of  trust,  lien,  pledge,  charge,  security  interest,  security  title,
preferential  arrangement  which  has the  practical  effect of  constituting  a
security  interest or  encumbrance,  or  encumbrance or servitude of any kind in
respect  of such  asset to secure or assure  payment  of a Debt or a  Guarantee,
whether by  consensual  agreement or by operation of statute or other law, or by
any agreement, contingent or otherwise, to provide any of the foregoing. For the
purposes of this Agreement,  the Borrowers or any Subsidiary  shall be deemed to
own  subject to a Lien any asset which it has  acquired or holds  subject to the
interest of a vendor or lessor under any  conditional  sale  agreement,  capital
lease or other title retention agreement relating to such asset.

     "Loan"  means a Base Rate Loan,  Euro-Dollar  Loan,  Money  Market  Loan or
Syndicated  Loan, and "Loans" means Base Rate Loans,  Euro-Dollar  Loans,  Money
Market Loans or  Syndicated  Loans,  or any or all of them, as the context shall
require.

     "Loan  Documents"  means this  Agreement,  the  Notes,  the  Guaranty,  the
Contribution Agreement,  any other document evidencing,  relating to or securing
the Loans,  and any other document or instrument  delivered from time to time in
connection  with this  Agreement,  the Notes or the Loans, as such documents and
instruments may be amended or supplemented from time to time.

     "London  Interbank  Offered  Rate" has the  meaning  set  forth in  Section
2.06(d).

     "Long-Term Debt" means at any date any Consolidated  Debt which matures (or
the  maturity of which may at the option of the  Borrowers  or any  Consolidated
Subsidiary be extended such that it matures) more than one year after such date.

     "Margin Stock" means "margin stock" as defined in Regulations G, T, U or X.

     "Material Adverse Effect" means, with respect to any event, act,  condition
or occurrence of whatever  nature  (including any adverse  determination  in any
litigation,  arbitration, or governmental investigation or proceeding),  whether
singly or in conjunction with any other event or events, act or acts,  condition
or conditions,  occurrence or  occurrences,  whether or not related,  a material
adverse  change in, or a material  adverse effect upon, any of (a) the financial
condition,  operations,  business or properties of GBP, the General Partner, the
Parent and its  Consolidated  Subsidiaries  taken as a whole, (b) the rights and
remedies of the Administrative  Agent or the Banks under the Loan Documents,  or
the ability of either of the Borrowers to perform its obligations under the Loan
Documents to which it is a party, as applicable,  or (c) the legality,  validity
or enforceability of any Loan Document.

     "Money Market Borrowing Date" has the meaning specified in Section 2.03.

     "Money  Market  Loan"  means  any  Loan  made by one or  more of the  Banks
pursuant to Section 2.02(A).

     "Money  Market Loan Notes"  means the  promissory  notes of the  Borrowers,
substantially  in the form of Exhibit  A-2,  evidencing  the  obligation  of the
Borrowers  to repay  the  Money  Market  Loans,  together  with all  amendments,
consolidations, modifications, renewals and supplements thereto.

     "Money Market Quote" has the meaning specified in Section 2.03.

     "Money Market Quote Request" has the meaning specified in Section 2.03(b).

     "Money Market Rate" has the meaning specified in Section 2.03(c)(ii)(C).

     "Mortgage" means a mortgage,  deed to secure debt, deed of trust or similar
instrument.

     "Multiemployer Plan" shall have the meaning set forth in Section 4001(a)(3)
of ERISA.

     "Multi-Family   Property"  means  residential   apartment  communities  and
undeveloped land acquired for development thereof.
<PAGE>

     "Net Operating Income" means, for any Multi-Family Property, the portion of
Consolidated  Income  Available for Debt Service derived from such  Multi-Family
Property (which calculation includes an assumed 4% for management services).

     "Notes" means each of the Syndicated Loan Notes or Money Market Loan Notes,
or any or all of them, as the context shall require.

     "Notice of Borrowing" has the meaning set forth in Section 2.02.

     "Officer's Certificate" has the meaning set forth in Section 3.01(f).

     "Original Agreement" has the meaning set forth in the preamble hereto.

     "Original  Notes" means the Notes  executed and  delivered  pursuant to the
Original Agreement.

     "Parent"  means  Gables  Realty  Limited  Partnership,  a Delaware  limited
partnership, and its successors and its permitted assigns.

     "Participant" has the meaning set forth in Section 9.08(b).

     "Partner  Interests" means any partner interests in the Borrowers,  whether
limited or general.

     "PBGC"  means  the  Pension  Benefit  Guaranty  Corporation  or any  entity
succeeding to any or all of its functions under ERISA.

     "Permitted  Encumbrances"  means,  with  respect to any  Eligible  Property
included  in the  Borrowing  Base,  (i) Liens  incidental  to the conduct of its
business or the  ownership of its assets which (x) do not secure Debt and (y) do
not in the  aggregate  materially  detract  from  the  value  of its  assets  or
materially  impair the use thereof in the  operation of its  business,  (ii) any
Mortgage in favor of the relevant  institutional  trustee only (but not in favor
of  Wachovia,  as letter of credit  issuer),  with  respect to the  Wachovia  LC
Properties, and (iii) any other Liens and encumbrances expressly consented to by
the Administrative Agent.

     "Performance  Pricing  Determination  Date"  has the  meaning  set forth in
Section 2.06(a).

     "Person"  means  an   individual,   a   corporation,   a  partnership,   an
unincorporated  association,  a  trust  or any  other  entity  or  organization,
including,  but not limited to, a  government  or  political  subdivision  or an
agency or instrumentality thereof.

     "Plan" means at any time an employee  pension benefit plan which is covered
by Title IV of ERISA or subject to the minimum  funding  standards under Section
412 of the Code and is either (i) maintained by a member of the Controlled Group
for employees of any member of the Controlled Group or (ii) maintained  pursuant
to a collective  bargaining  agreement or any other arrangement under which more
than one employer  makes  contributions  and to which a member of the Controlled
Group is then making or  accruing an  obligation  to make  contributions  or has
within the preceding 5 plan years made contributions.

     "Prime  Rate"  refers  to  that  interest  rate so  denominated  and set by
Wachovia from time to time as an interest rate basis for  borrowings.  The Prime
Rate is but one of several interest rate bases used by Wachovia.  Wachovia lends
at interest rates above and below the Prime Rate.

     "Properties"  means all real property  owned,  leased or otherwise  used or
occupied by the Borrowers or any Subsidiary, wherever located.

     "Redeemable Preferred Stock" of any Person means any preferred stock issued
by such  Person  which is at any time prior to the  Termination  Date either (i)
mandatorily  redeemable  for  cash  (by  sinking  fund or  similar  payments  or
otherwise) or (ii) redeemable for cash at the option of the holder thereof.

     "Refunding  Loan" means a new  Syndicated  Loan made on the day on which an
outstanding  Syndicated  Loan is  maturing  or a Base  Rate  Borrowing  is being
converted  to a  Euro-Dollar  Rate  Borrowing,  if and to the  extent  that  the
proceeds  thereof are used entirely for the purpose of paying such maturing Loan
or Loan being  converted,  excluding any  difference  between the amount of such
maturing Loan or Loan being  converted and any greater  amount being borrowed on
such day and actually  either being made available to the Borrowers  pursuant to
Section 2.02(c) or remitted to the  Administrative  Agent as provided in Section
2.12, in each case as contemplated in Section 2.02(d).

     "Regulation G" means  Regulation G of the Board of Governors of the Federal
Reserve  System,  as in effect  from time to time,  together  with all  official
rulings and interpretations issued thereunder.

     "Regulation T" means  Regulation T of the Board of Governors of the Federal
Reserve  System,  as in effect  from time to time,  together  with all  official
rulings and interpretations issued thereunder.

<PAGE>

     "Regulation U" means  Regulation U of the Board of Governors of the Federal
Reserve  System,  as in effect  from time to time,  together  with all  official
rulings and interpretations issued thereunder.

     "Regulation X" means  Regulation X of the Board of Governors of the Federal
Reserve  System,  as in effect  from time to time,  together  with all  official
rulings and interpretations issued thereunder.

     "Required  Banks"  means at any time  Banks  having at least 66 2/3% of the
aggregate  amount of the  Commitments  or, if the  Commitments  are no longer in
effect,  Banks holding at least 66 2/3% of the aggregate  outstanding  principal
amount of the sum of the (i) Syndicated Loans and (ii) Money Market Loans.

     "Restricted  Payment" means (i) any  distribution on any Partner  Interests
(other than distributions  consisting solely of additional Partner Interests) or
(ii)  any  payment  on  account  of  the  purchase,  redemption,  retirement  or
acquisition  of (a) any Partner  Interests  or (b) any option,  warrant or other
right to acquire Partner Interests.

     "Significant  Subsidiary"  means any Subsidiary which either (x) has assets
which  constitute  more than 5% of  Consolidated  Total Assets at the end of the
most recent Fiscal  Quarter,  or (y)  contributed  more than 5% of  Consolidated
Income  Available for Debt Service during the most recent Fiscal Quarter and the
3 Fiscal Quarters immediately preceding such Fiscal Quarter (or, with respect to
any  Subsidiary  which existed during the entire 4 Fiscal Quarter period but was
acquired by the Parent  during such period,  which would have  contributed  more
than 5% of Consolidated Income Available for Debt Service during such period had
it been a Subsidiary for the entire period).

     "South  Florida   Acquisition"  means  the  Parent's   acquisition  of  the
properties and operations of Trammell Crow Residential South Florida ("TCR/SF"),
which consists of up to 15 multifamily apartment communities  containing a total
of 4,197  apartment  homes  and all of  TCR/SF's  residential  construction  and
development and third party management activities in South Florida,  pursuant to
a  definitive   purchase   agreement   containing   terms  which  include  total
consideration  of  $368,250,000,  consisting of  $77,375,000  in common stock or
operating   apartment  units,   $155,000,000  in  cash  and  the  assumption  of
$135,875,000 in tax-exempt debt.

     "Stated  Maturity  Date" means,  with respect to any Money Market Loan, the
Stated  Maturity Date  therefor  specified by the Bank in the  applicable  Money
Market Quote.

     "Subsidiary"  means (i) any corporation or other entity the majority of the
shares of the non-voting capital stock or other equivalent  ownership  interests
of which  (except  directors'  qualifying  shares)  are at the time  directly or
indirectly owned by the Parent and/or GBP, and the majority of the shares of the
voting capital stock or other  equivalent  ownership  interests of which (except
directors'  qualifying  shares) are at the time directly or indirectly  owned by
the Parent, GBP, the General Partner, another Subsidiary,  and/or one or more of
Chris Wheeler,  Michael Hefley, Marvin R. Banks, Jr. and C. Jordan Clark (or, in
the  event of death  or  disability  of any of the  foregoing  individuals,  his
respective legal  representative(s)),  or such individuals' successors in office
as an officer of such Subsidiary or the Secretary of such  Subsidiary,  and (ii)
any other  entity  (other  than GBP or the  Parent)  the  accounts  of which are
consolidated with the accounts of the Parent.

     "Syndicated Loans" means Base Rate Loans or Euro-Dollar Loans made pursuant
to the terms and conditions set forth in Section 2.01.

     "Syndicated  Loan  Notes"  means  the  promissory  notes of the  Borrowers,
substantially  in the form of Exhibit  A-1,  evidencing  the  obligation  of the
Borrowers   to  repay   Syndicated   Loans,   together   with  all   amendments,
consolidations, modifications, renewals and supplements thereto.

     "Taxes" has the meaning set forth in Section 2.12(c).

     "Termination  Date"  means  May  13,  2003,  provided,  that  if any of the
following events occur, the Termination Date shall be such earlier date or later
date as is applicable pursuant to the following: (i) such later date to which it
is extended by the Banks pursuant to Section 2.04(b), in their sole and absolute
discretion;  (ii) such earlier date on which the  Commitments  are terminated in
their entirety  pursuant to Section 2.09 following the occurrence of a Change in
Control;  (iii)  such  earlier  date on which  the  Commitments  are  terminated
pursuant to Section 6.01  following the  occurrence  of an Event of Default;  or
(iv) such earlier date on which the Borrowers terminate the Commitments entirely
pursuant to Section 2.08.

     "Third Parties" means all lessees, sublessees, licensees and other users of
the  Properties,  excluding those users of the Properties in the ordinary course
of the Borrowers' business and on a temporary basis.

<PAGE>

     "Total Assets Value" means the sum of:

     (i) the  quotient of (x) the Net  Operating  Income for the 12 month period
ending  on the  last  day  of  the  month  just  ended  prior  to  the  date  of
determination,  from each  Multi-Family  Property which either was on average at
least  90%  Economically   Occupied  during,   or  with  respect  to  which  the
Construction Period Termination Date occurred prior to the commencement of, such
12 month period, divided by (y) 0.09; provided,  that if a Multi-Family Property
satisfies  the  criteria  set forth in both this  clause (i) and in clause  (ii)
below, it shall be included in the calculations only in clause (ii) below; plus

     (ii) an  amount  equal to the  quotient  of (x)  400% of the Net  Operating
Income  for the 3 month  period  ending on the last day of the month  just ended
prior to the date of determination, from each Multi-Family Property with respect
to which the  Construction  Period  Termination  Date did not occur prior to the
commencement  of the 12 month  period  ending on the last day of the month  just
ended  prior to the date of  determination,  divided by (y) 0.09;  plus

     (iii) an amount equal to 100% of the aggregate amount of cash  expenditures
(including  indirect costs  internally  allocated in accordance with GAAP) as of
the last day of the month just ended prior to the date of  determination  on all
Multi-Family Properties as to which the Construction Period Termination Date has
not occurred as of such last day of the month just ended, plus

     (iv) an amount equal to 100% of all unrestricted  cash and cash equivalents
held by the  Borrowers,  including  amounts  on  deposit  with  banks  or  other
financial  institutions  and  Investments of the types  described in clauses (i)
through (vi),  inclusive,  of the definition of  "Investments",  provided,  with
respect to  Investments  described in clause  (vi),  that such  Investments  are
readily marketable, plus

     (v) the quotient of (x) the Joint Venture Share of the net operating income
for the 12 month period  ending on the last day of the month just ended prior to
the date of determination,  from each Joint Venture Property which either was on
average at least 90% Economically  Occupied during, or with respect to which the
Construction Period Termination Date occurred prior to the commencement of, such
12 month period, divided by (y) 0.09, plus

     (vi) an amount equal to the Joint Venture Share of the aggregate  amount of
the  quotient  of (x) 400% of the net  operating  income for the 3 month  period
ending  on the  last  day  of  the  month  just  ended  prior  to  the  date  of
determination,  from each  Joint  Venture  Property  with  respect  to which the
Construction  Period Termination Date did not occur prior to the commencement of
the 12 month period  ending on the last day of the month just ended prior to the
date of determination, divided by (y) 0.09; plus

     (vii) an amount equal to the Joint Venture Share of the aggregate amount of
cash expenditures  (including indirect costs internally  allocated in accordance
with  GAAP) as of the  last day of the  month  just  ended  prior to the date of
determination on each Joint Venture Property as to which the Construction Period
Termination Date has not occurred as of such last day of the month just ended.

     "Total Debt" means the sum (without  duplication) of (i) total  liabilities
(but excluding such  obligations to the extent of principal  amounts escrowed or
maintained in a trust or escrow  account or other fund with one or more trustees
pursuant to the  applicable  indenture  or other  agreement  pertaining  to such
obligations) of the Borrowers and the Guarantors,  on a consolidated basis, plus
(ii) the aggregate  amount of Debt  Guaranteed by the Borrowers,  the Guarantors
and the other  Subsidiaries  (other than  Guarantees  which have been fully cash
collateralized),  plus (iii) the Parent's  Joint  Venture Share of the aggregate
amount of Debt of all Joint  Ventures,  plus (iv) the face amount of all letters
of credit (other than amounts which are fully cash collateralized) for which any
of the Borrowers or the Guarantors is the account  party,  determined at the end
of the Parent's most recent Fiscal Quarter, less (v) the aggregate amount of all
tenant  deposits which are  maintained in segregated  accounts and classified as
restricted  cash in accordance  with GAAP,  and less (vi) amounts  maintained in
escrow deposits with banks or other financial  institutions  for payment of real
estate property taxes  reflected on the Parent's  balance sheet and reflected as
restricted cash in accordance with GAAP.

     "Total  Secured  Debt" shall  mean,  without  duplication,  all Debt of the
Borrowers and the Guarantors  consisting of: (i) capitalized  leases; (ii) money
borrowed or the deferred  purchase  price of real property which is also secured
by a Mortgage on any real property owned by the Borrowers or any  Guarantor;  or
(iii) reimbursement obligations pertaining to any letter of credit.

     "Total  Unencumbered Assets Value" means Total Assets Value, but determined
with reference only to (i)  Multi-Family  Properties  which are not subject to a
Mortgage and (ii) the Wachovia LC Properties.

     "Transferee" has the meaning set forth in Section 9.08(d).

<PAGE>

     "Unsecured  Funded  Debt"  means any Funded  Debt which is not secured by a
Mortgage  on  any  Property,  other  than,  with  respect  to  the  Wachovia  LC
Properties, any Permitted Encumbrance.

     "Unused  Commitment" means at any date, with respect to any Bank, an amount
equal to the sum of (i) its  Commitment,  less  (ii) the  aggregate  outstanding
principal amount of its Syndicated Loans(but not its Money Market Loans).

     "Wachovia" means Wachovia Bank, N.A., a national banking  association,  and
its successors.

     "Wachovia LC  Properties"  means the  following  Properties,  as to each of
which  Wachovia has issued its  unsecured  letter of credit to an  institutional
trustee as a credit  enhancement for revenue bonds or similar  instruments:  the
Arbor Crest  project,  the Arbor Knoll  project,  the Wood Arbor project and the
Wood Crossing Project.

     "Wholly Owned  Subsidiary"  means any  Subsidiary  all of the shares of the
non-voting  capital  stock  or other  equivalent  ownership  interests  of which
(except  directors'  qualifying  shares) are at the time  directly or indirectly
owned by the Parent  and/or  GBP,  and all of the  shares of the voting  capital
stock or other equivalent  ownership interests of which are at the time directly
or indirectly owned by the Parent, GBP, another Wholly Owned Subsidiary,  and/or
one or more of Marcus E. Bromley,  John T. Rippel,  Marvin R. Banks,  Jr. and C.
Jordan Clark (or, in the event of death or  disability  of any of the  foregoing
individuals,  his  respective  legal  representative(s)),  or such  individuals'
successors  in office as an officer of such  Subsidiary or the Secretary of such
Subsidiary.

<PAGE>

     SECTION 1.02. Accounting Terms and Determinations
                   -----------------------------------

     Unless otherwise  specified  herein,  all terms of an accounting  character
used herein shall be interpreted,  all accounting determinations hereunder shall
be made, and all financial  statements  required to be delivered hereunder shall
be prepared,  in accordance with GAAP, applied on a basis consistent (except for
changes concurred in by the Parent's independent public accountants or otherwise
required  by a  change  in  GAAP)  with the  most  recent  audited  consolidated
financial statements of the Parent and its Consolidated  Subsidiaries  delivered
to the Banks unless with respect to any such change concurred in by the Parent's
independent  public  accountants or required by GAAP, in determining  compliance
with any of the provisions of this Agreement or any of the other Loan Documents:
(i) the Parent shall have objected to determining  such compliance on such basis
at the time of delivery of such financial statements, or (ii) the Required Banks
shall so object in writing  within 30 days after the delivery of such  financial
statements, in either of which events such calculations shall be made on a basis
consistent with those used in the preparation of the latest financial statements
as to which such objection shall not have been made (which, if objection is made
in  respect of the first  financial  statements  delivered  under  Section  5.01
hereof, shall mean the financial statements referred to in Section 4.04).

     SECTION 1.03. References
                   ----------

     Unless  otherwise  indicated,  references in this  Agreement to "Articles",
"Exhibits",  "Schedules",  "Sections" and other  Subdivisions  are references to
articles, exhibits, schedules, sections and other subdivisions hereof.

     SECTION 1.04. Use of Defined Terms
                   --------------------

     All terms defined in this  Agreement  shall have the same defined  meanings
when used in any of the other Loan Documents,  unless otherwise  defined therein
or unless the context shall require otherwise.

     SECTION 1.05. Terminology
                   -----------

     All  personal  pronouns  used  in  this  Agreement,  whether  used  in  the
masculine,  feminine or neuter  gender,  shall  include all other  genders;  the
singular  shall  include the plural,  and the plural shall include the singular.
Titles of Articles and Sections in this Agreement are for convenience  only, and
neither limit nor amplify the provisions of this Agreement.

<PAGE>

                                   ARTICLE II

                                   THE CREDITS

     SECTION 2.01. Commitments to Lend
                   -------------------

     (a)  Syndicated  Loans.  Each  Bank  severally  agrees,  on the  terms  and
conditions set forth herein, to make Syndicated Loans to the Borrowers from time
to time before the Termination Date; provided that,

          (i) immediately after each such Syndicated Loan is made, the aggregate
     outstanding  principal  amount of  Syndicated  Loans by such Bank shall not
     exceed the amount of its Commitment, and

          (ii) the  aggregate  outstanding  principal  amount of all  Syndicated
     Loans  and  Money  Market  Loans  shall not  exceed  the  lesser of (A) the
     aggregate  amount  of the  Commitments  and (B) the  Borrowing  Base.

Each Syndicated  Borrowing under this Section shall be in an aggregate principal
amount of $3,000,000 or any larger  integral  multiple of $500,000  (except that
any such  Syndicated  Borrowing  may be in the  aggregate  amount of the  Unused
Commitments)  and shall be made from the several  Banks ratably in proportion to
their respective Commitments. Within the foregoing limits, either or both of the
Borrowers  may borrow under this Section,  repay or, to the extent  permitted by
Section 2.10,  prepay  Syndicated  Loans and reborrow  under this Section at any
time before the Termination Date.

     SECTION 2.02. Method of Borrowing
                   -------------------

     (a) The Borrowers shall give the Administrative  Agent notice (a "Notice of
Borrowing"),  which  shall be  substantially  in the form of Exhibit E, prior to
10:00 A.M.  (Atlanta,  Georgia time) on the same Domestic  Business Day for each
Base  Rate  Borrowing  and at least  3-Euro-Dollar  Business  Days  before  each
Euro-Dollar Borrowing, specifying:

          (i) the date of such Borrowing, which shall be a Domestic Business Day
     in the case of a Base Rate  Borrowing or a Euro-Dollar  Business Day in the
     case of a Euro-Dollar Borrowing,

          (ii) the aggregate amount of such Borrowing,

          (iii)  whether  the  Borrowing  is to be a Base  Rate  Borrowing  or a
     Euro-Dollar  Borrowing,

          (iv) in the  case of a  Euro-Dollar  Borrowing,  the  duration  of the
     Interest  Period  applicable  thereto,  subject  to the  provisions  of the
     definition of Interest Period.

     (b) Upon receipt of a Notice of Borrowing,  the Administrative  Agent shall
promptly  notify each Bank of the  contents  thereof and of such Bank's  ratable
share of such  Borrowing  and such  Notice of  Borrowing,  once  received by the
Administrative Agent, shall not thereafter be revocable by the Borrowers.

     (c) Not later than 2:00 P.M.  (Atlanta,  Georgia  time) on the date of each
Syndicated   Borrowing  (or,  if  the  notice   required  to  be  given  by  the
Administrative  Agent  pursuant to paragraph  (b) of this Section shall be given
later than  12:00  Noon,  Atlanta,  Georgia  time on the date of any  Syndicated
Borrowing,  not later than two (2) hours following the time such notice is given
on the date of each Syndicated  Borrowing),  each Bank shall (except as provided
in paragraph  (d) of this  Section)  make  available  its ratable  share of such
Syndicated  Borrowing,  in  Federal  or other  funds  immediately  available  in
Atlanta, Georgia, to the Administrative Agent at its address determined pursuant
to Section 9.01. Unless the Administrative  Agent determines that any applicable
condition  specified in Article IV has not been  satisfied,  the  Administrative
Agent will make the funds so received from the Banks  available to the Borrowers
at the Administrative Agent's aforesaid address. Unless the Administrative Agent
receives notice from a Bank, at the  Administrative  Agent's address referred to
in or specified pursuant to Section 9.01, no later than 4:00 P.M. (local time at
such  address)  on the  Domestic  Business  Day before the date of a  Syndicated
Borrowing (or, with respect to Base Rate Loans, by 2:00 P.M. on the date of such
Syndicated  Borrowing) stating that such Bank will not make a Syndicated Loan in
connection with such Syndicated  Borrowing,  the  Administrative  Agent shall be
entitled to assume that such Bank will make a Syndicated Loan in connection with
such   Syndicated   Borrowing   and,  in  reliance  on  such   assumption,   the
Administrative  Agent may (but shall not be obligated  to) make  available  such
Bank's  ratable  share of such  Syndicated  Borrowing to the  Borrowers  for the
account of such Bank.

<PAGE>

     If the  Administrative  Agent makes such Bank's ratable share  available to
the Borrowers as provided  above and such Bank does not in fact make its ratable
share of such Syndicated  Borrowing  available on such date, the  Administrative
Agent shall be entitled to recover such Bank's  ratable  share from such Bank or
the  Borrowers  (and for such purpose shall be entitled to charge such amount to
any account of the Borrowers maintained with the Administrative Agent), together
with  interest  thereon  for each day during  the  period  from the date of such
Syndicated  Borrowing  until  such sum shall be paid in full at a rate per annum
equal to the rate at which the Administrative  Agent determines that it obtained
(or could have obtained)  overnight  Federal funds to cover such amount for each
such day during such period, provided that (i) any such payment by the Borrowers
of such Bank's ratable share and interest thereon shall be without  prejudice to
any rights that the  Borrowers  may have  against  such Bank and (ii) until such
Bank has paid its ratable  share of such  Syndicated  Borrowing,  together  with
interest  pursuant to the foregoing,  it will have no interest in or rights with
respect  to  such  Syndicated  Borrowing  for  any  purpose  hereunder.  If  the
Administrative  Agent does not  exercise  its  option to  advance  funds for the
account of such Bank, it shall forthwith notify the Borrowers of such decision.

     (d) If any Bank makes a new Syndicated Loan hereunder on a day on which the
Borrowers are to repay all or any part of an  outstanding  Syndicated  Loan from
such Bank, such Bank shall apply the proceeds of its new Syndicated Loan to make
such  repayment as a Refunding  Loan and only an amount equal to the  difference
(if any) between the amount being borrowed and the amount of such Refunding Loan
shall be made available by such Bank to the Administrative  Agent as provided in
paragraph   (c)  of  this   Section,   or  remitted  by  the  Borrowers  to  the
Administrative Agent as provided in Section 2.12, as the case may be.

     (e)  Notwithstanding  anything to the contrary contained in this Agreement,
no  Euro-Dollar  Borrowing or Money Market  Borrowing may be made if there shall
have  occurred  a Default  or an Event of  Default,  which  Default  or Event of
Default shall not have been cured or waived,  and all  Refunding  Loans shall be
made as Base Rate Loans  (but  shall  bear  interest  at the  Default  Rate,  if
applicable).

     (f) In the event that a Notice of  Borrowing  fails to specify  whether the
Syndicated Loans comprising such Syndicated  Borrowing are to be Base Rate Loans
or Euro-Dollar Loans, such Syndicated Loans shall be made as Base Rate Loans. If
the  Borrowers  are  otherwise  entitled  under  this  Agreement  to  repay  any
Syndicated  Loans maturing at the end of an Interest Period  applicable  thereto
with the  proceeds  of a new  Borrowing,  and the  Borrower  fail to repay  such
Syndicated  Loans using its own moneys and fail to give a Notice of Borrowing in
connection with such new Syndicated Borrowing,  a new Syndicated Borrowing shall
be deemed to be made on the date such Syndicated Loans mature in an amount equal
to the principal amount of the Syndicated Loans so maturing,  and the Syndicated
Loans comprising such new Syndicated Borrowing shall be Base Rate Loans.

     (g) Notwithstanding  anything to the contrary contained herein, there shall
not  be  more  than  8  Euro-Dollar   Borrowings  and  Money  Market  Borrowings
outstanding at any given time.

     SECTION 2.03. Money Market Loans
                   ------------------

     (a) In addition to making Syndicated Borrowings, so long as the Debt Rating
is BBB- or Baa3 or higher, the Borrowers may, as set forth in this Section 2.03,
request the Banks to make offers to make Money  Market  Borrowings  available to
the Borrowers.  The Banks may, but shall have no obligation to, make such offers
and the Borrowers  may, but shall have no obligation  to, accept any such offers
in the manner set forth in this Section 2.03, provided that:

          (i) the number of interest  rates  applicable  to Money  Market  Loans
     which may be  outstanding at any given time is subject to the provisions of
     Section 2.02(g);

          (ii) the aggregate  principal  amount of all Money Market Loans at any
     one  time  outstanding  shall  not  exceed  an  amount  equal to 50% of the
     aggregate amount of the Commitments of all of the Banks at such time;

          (iii)  the  aggregate  principal  amount of all  Money  Market  Loans,
     together with the aggregate  principal  amount of all Syndicated  Loans, at
     any one time  outstanding  shall not  exceed  the  aggregate  amount of the
     Commitments of all of the Banks at such time; and

          (iv) the Money  Market Loans of any Bank will be deemed to be usage of
     the  Commitments  for the purpose of calculating  availability  pursuant to
     Section  2.01(a)(ii)  and  2.03(a)(iii),  but will not reduce  such  Bank's
     obligation to lend its pro rata share of the remaining Unused Commitment.

<PAGE>

     (b) When the Borrowers  wish to request  offers to make Money Market Loans,
it shall give the  Administrative  Agent (which shall promptly notify the Banks)
notice  substantially  in the form of Exhibit K (a "Money Market Quote Request")
so as to be received no later than 10:00 A.M. (Atlanta, Georgia time) at least 2
Domestic Business Days prior to the date of the Money Market Borrowing  proposed
therein  (or such other time and date as the  Borrowers  and the  Administrative
Agent, with the consent of the Required Banks, may agree), specifying:

          (i) the proposed date of such Money Market Borrowing, which shall be a
     Euro-Dollar Business Day (the "Money Market Borrowing Date");

          (ii) the maturity date (or dates) (each a "Stated  Maturity Date") for
     repayment of each Money Market Loan to be made as part of such Money Market
     Borrowing (which Stated Maturity Date shall be that date occurring not less
     than  7 days but not more than 180 days from the date of such Money  Market
     Borrowing);  provided  that the Stated  Maturity  Date for any Money Market
     Loan may not extend beyond the  Termination  Date (as in effect on the date
     of such Money Market Quote Request); and

          (iii)  the  aggregate  amount  of  principal  to be  requested  by the
     Borrowers  as a result of such Money  Market  Borrowing,  which shall be at
     least $3,000,000 (and in larger integral multiples of $1,000,000) but shall
     not cause the limits  specified  in Section  2.03(a)  to be  violated.

     The Borrowers may request  offers to make Money Market Loans having up to 3
     different]  Stated  Maturity  Dates in a single Money Market Quote Request;
     provided that the request for each separate  Stated  Maturity Date shall be
     deemed to be a separate  Money  Market Quote  Request for a separate  Money
     Market Borrowing. Except as otherwise provided in the immediately preceding
     sentence,  after  the first  Money  Market  Quote  Request  has been  given
     hereunder,  no Money Market Quote  Request  shall be given until at least 5
     Domestic  Business  Days after all prior Money Market Quote  Requests  have
     been  fully  processed  by the  Administrative  Agent,  the  Banks  and the
     Borrowers pursuant to this Section 2.03.

     (c) (i)  Each Bank may, but shall have no obligation  to, submit a response
     containing an offer to make a Money Market Loan  substantially  in the form
     of Exhibit L (a "Money Market Quote") in response to any Money Market Quote
     Request;  provided  that, if the Borrowers'  request under Section  2.03(b)
     specified more than 1 Stated  Maturity Date,  such Bank may, but shall have
     no obligation to, make a single submission  containing a separate offer for
     each such Stated Maturity Date and each such separate offer shall be deemed
     to be a  separate  Money  Market  Quote.  Each Money  Market  Quote must be
     submitted to the  Administrative  Agent not later than 10:00 A.M. (Atlanta,
     Georgia time) on the Money Market  Borrowing Date;  provided that any Money
     Market  Quote  submitted  by  Wachovia  may be  submitted,  and may only be
     submitted,  if Wachovia  notifies  the  Borrowers of the terms of the offer
     contained therein not later than 9:45 A.M.  (Atlanta,  Georgia time) on the
     Money Market Borrowing Date (or 15 minutes prior to the time that the other
     Banks are required to have submitted their respective Money Market Quotes).
     Subject  to  Section  5.01,  any  Money  Market  Quote  so  made  shall  be
     irrevocable  except with the written  consent of the  Administrative  Agent
     given on the instructions of the Borrowers.

          (ii) Each Money Market Quote shall specify:

               (A) the  proposed  Money  Market  Borrowing  Date and the  Stated
          Maturity Date therefor;

               (B) the  principal  amounts  of the Money  Market  Loan which the
          quoting Bank is willing to make for the applicable Money Market Quote,
          which  principal  amounts  (x) may be  greater  than or less  than the
          Commitment of the quoting Bank, (y) shall be at least  $3,000,000 or a
          larger  integral  multiple  of  $500,000  and (z) may not  exceed  the
          principal  amount of the Money Market  Borrowing for which offers were
          requested;

               (C)  the  rate  of  interest  per  annum  (rounded  upwards,   if
          necessary,  to the nearest  1/100th of 1%) offered for each such Money
          Market Loan (such amounts being hereinafter  referred to as the "Money
          Market  Rate"); and

               (D)  the identity of the quoting Bank.

     Unless otherwise agreed by the Administrative  Agent and the Borrowers,  no
     Money  Market  Quote  shall  contain  qualifying,  conditional  or  similar
     language  or propose  terms other than or in addition to those set forth in
     the  applicable  Money Market Quote  Request  (other than setting forth the
     principal  amounts  of the Money  Market  Loan  which the  quoting  Bank is
     willing to make for the applicable Interest Period) and, in particular,  no
     Money Market Quote may be conditioned  upon  acceptance by the Borrowers of
     all (or some specified minimum) of the principal amount of the Money Market
     Loan for which such Money Market Quote is being made.

<PAGE>

     (d) The  Administrative  Agent shall as promptly as  practicable  after the
Money  Market  Quote is  submitted  (but in any event not later  than 10:30 A.M.
(Atlanta,  Georgia  time))  on the  Money  Market  Borrowing  Date,  notify  the
Borrowers of the terms (i) of any Money Market Quote submitted by a Bank that is
in  accordance  with  Section  2.03(c) and (ii) of any Money  Market  Quote that
amends, modifies or is otherwise inconsistent with a previous Money Market Quote
submitted by such Bank with respect to the same Money Market Quote Request.  Any
such  subsequent  Money Market Quote shall be disregarded by the  Administrative
Agent unless such subsequent Money Market Quote is submitted solely to correct a
manifest  error in such former Money Market Quote.  The  Administrative  Agent's
notice to the Borrowers  shall  specify (A) the  principal  amounts of the Money
Market  Borrowing  for which offers have been  received  and (B) the  respective
principal  amounts and Money Market  Rates so offered by each Bank  (identifying
the Bank that made each Money Market Quote).

     (e) Not later than 11:00 A.M.  (Atlanta,  Georgia time) on the Money Market
Borrowing  Date,  the  Borrowers  shall notify the  Administrative  Agent of its
acceptance or  nonacceptance of the offers so notified to it pursuant to Section
2.03(d)  and the  Administrative  Agent  shall  promptly  notify each Bank which
submitted an offer.  In the case of  acceptance,  such notice shall  specify the
aggregate  principal  amount of offers (for each Stated  Maturity Date) that are
accepted.  The  Borrowers may accept any Money Market Quote in whole or in part;
provided that:

          (i) the aggregate  principal amount of each Money Market Borrowing may
     not exceed the  applicable  amount set forth in the  related  Money  Market
     Quote Request;

          (ii)  the  aggregate  principal  amount  of  each  Money  Market  Loan
     comprising a Money Market  Borrowing  shall be at least  $3,000,000 (and in
     larger  integral  multiples of  $1,000,000)  but shall not cause the limits
     specified in Section 2.03(a) to be violated;

          (iii)  acceptance  of offers  may only be made in  ascending  order of
     Money Market Rates; and

          (iv) the Borrowers  may not accept any offer where the  Administrative
     Agent has  advised  the  Borrowers  that such  offer  fails to comply  with
     Section  2.03(c)(ii) or otherwise fails to comply with the  requirements of
     this Agreement (including without limitation,  Section 2.03(a)).

     If offers are made by 2 or more Banks with the same Money  Market Rates for
     a greater  aggregate  principal  amount than the amount in respect of which
     offers are accepted for the related  Stated  Maturity  Date,  the principal
     amount of Money  Market  Loans in respect of which such offers are accepted
     shall be allocated by the Borrowers  among such Banks as nearly as possible
     in  proportion  to  the   aggregate   principal   amount  of  such  offers.
     Determinations  by the Borrowers of the amounts of Money Market Loans shall
     be conclusive in the absence of manifest error.

     (f) Any Bank whose offer to make any Money  Market  Loan has been  accepted
shall,  not later than 12:00 P.M.  (Atlanta,  Georgia  time) on the Money Market
Borrowing  Date,  make the  amount of such Money  Market  Loan  allocated  to it
available to the Administrative Agent at its address referred to in Section 8.01
in immediately  available  funds.  The amount so received by the  Administrative
Agent shall,  subject to the terms and  conditions  of this  Agreement,  be made
available to the Borrowers on such date by depositing  the same, in  immediately
available funds, not later than 2:00 P.M. (Atlanta, Georgia time), in an account
of such Borrower maintained with Wachovia.

     (g) After any Money Market Loan has been funded, the  Administrative  Agent
shall  notify the Banks of the  aggregate  principal  amount of the Money Market
Quotes  received and the highest and lowest rates  included in such Money Market
Quotes.

<PAGE>

     SECTION 2.04. Notes
                   -----

     (a) The  Syndicated  Loans  of each  Bank  shall be  evidenced  by a single
Syndicated  Loan Note  payable to the order of such Bank for the  account of its
Lending  Office  in an amount  equal to the  original  principal  amount of such
Bank's Commitment.

     (b) The  Money  Market  Loans  made by any Bank to the  Borrowers  shall be
evidenced  by a single  Money Market Loan Note payable to the order of such Bank
for the account of its Lending  Office in an amount equal to 50% of the original
principal amount of the aggregate Commitments.

     (c) Upon  receipt  of each  Bank's  Notes  pursuant  to Section  3.01,  the
Administrative  Agent  shall  deliver  such Notes to such Bank.  Each Bank shall
record,  and prior to any transfer of its Notes shall  endorse on the  schedules
forming a part thereof appropriate  notations to evidence,  the date, amount and
maturity of, and effective interest rate for, each Loan made by it, the date and
amount of each payment of principal made by the Borrowers with respect  thereto,
and such  schedules  of each  such  Bank's  Notes  shall  constitute  rebuttable
presumptive  evidence of the  respective  principal  amounts owing and unpaid on
such Bank's  Notes;  provided that the failure of any Bank to make, or any error
in making,  any such recordation or endorsement  shall not affect the obligation
of the  Borrowers  hereunder  or under the Notes or the  ability  of any Bank to
assign its Notes. Each Bank is hereby irrevocably authorized by the Borrowers so
to endorse its Notes and to attach to and make a part of any Note a continuation
of any such schedule as and when required.

     (d)  In  the  event  of  loss,   theft,   destruction,   total  or  partial
obliteration,  mutilation or inappropriate cancellation of a Note, the Borrowers
will execute and deliver,  in lieu thereof, a replacement Note identical in form
and substance to such Note and dated as of the date of such Note.

     SECTION 2.05. Maturity of Loans
                   -----------------

     (a) Each Loan  included in any Borrowing  shall  mature,  and the principal
amount thereof and interest thereon shall be due and payable, on the last day of
the Interest Period applicable to such Borrowing.

     (b) Notwithstanding the foregoing,  the outstanding principal amount of the
Loans, if any,  together with all accrued but unpaid interest  thereon,  if any,
shall  be due and  payable  on May 13,  2003,  unless  the  Termination  Date is
otherwise extended by the Banks, in their sole and absolute discretion. Upon the
written request of the Borrowers,  which request shall be delivered to the Agent
at  least 90 days  prior to each  Extension  Date (as such  term is  hereinafter
defined),  the Banks shall have the option (without any obligation whatsoever so
to do) of extending the then current  Termination  Date for additional  one-year
periods  from the then current  Termination  Date on but not before May 13, 2001
(the "Extension  Date"), but in no event shall the Commitment of any Bank or any
Loan  hereunder be outstanding  for a period greater than three (3) years.  Each
Bank shall notify the  Borrowers and the  Administrative  Agent not more than 60
days but not less than 45 days prior to the relevant  Extension  Date whether or
not it chooses to extend the  Termination  Date for such an additional  one-year
period (but any Bank which fails to give such notice within such period shall be
deemed not to have extended);  provided,  that the Termination Date shall not be
extended with respect to any of the Banks unless:

          (i) the Required Banks are willing to extend the Termination Date; and

          (ii) on or before the Extension Date, as to the Commitment of any Bank
     which  gave  notice  that it  chooses  not to  extend,  or which is  deemed
     pursuant  to the  foregoing  not to have  extended  (any such Bank  being a
     "Terminating Bank"), one of the following shall occur:

               (A)  the  remaining  Banks  shall  purchase  ratable  assignments
          (without any obligation so to do) from such  Terminating  Bank (in the
          form  of  an  Assignment  and  Acceptance) in  accordance  with  their
          respective   percentage  of  the  remaining   aggregate   Commitments;
          provided,  that, such Banks shall be provided such opportunity  (which
          opportunity shall allow such Banks at least 30 days in which to make a
          decision) prior  to the Borrowers finding another bank pursuant to the
          immediately  succeeding  clause (y);  and,  provided,  further,  that,
          should  any of the  remaining  Banks  elect  not to  purchase  such an
          assignment,  then,  such other  remaining  Banks  shall be entitled to
          purchase an assignment  from any  Terminating  Bank which includes the
          ratable interest that was otherwise  available to such  non-purchasing
          remaining Bank or Banks, as the case may be, or

<PAGE>
               (B) the  Borrowers  shall find another  bank,  acceptable  to the
          Administrative  Agent,  willing  to  accept  an  assignment  from such
          Terminating Bank (in the form of an Assignment and  Acceptance) on  or
          before the  Extension  Date,  or

               (C) the Borrowers  shall reduce the aggregate  Commitments  in an
          amount equal to the Commitment of any such Terminating Bank and pay to
          the terminating Bank all principal,  interest,  fees and other amounts
          then payable to it hereunder and under such terminating  Bank's Notes.

          Notwithstanding the foregoing, if the Termination Date is not extended
          for an additional one year period on each Extension Date,  there shall
          be no further  Extension Dates or extensions of the Termination  Date.
          If the Termination  Date is extended for an additional one year period
          on each Extension Date, the Borrowers shall pay to the  Administrative
          Agent,  for the ratable  account of the remaining  Banks, an extension
          fee in an amount equal to 0.10% of the aggregate Commitments in effect
          on the  relevant  Extension  Date,  which fee shall be payable on such
          Extension Date.

     SECTION 2.06. Interest Rates
                   --------------

     (a) "Applicable  Margin" means

          (i) for the period commencing on the Closing Date to and including the
     first Performance  Pricing  Determination Date, (x) for any Base Rate Loan,
     (0.25)%,  and (y) for any Euro-Dollar  Loan, 0.95%; and

          (ii) from and after the first Performance Pricing  Determination Date,
     (x) for any Base Rate Loan,  (0.25)% and (y) for each Euro-Dollar Loan, the
     percentage  determined on each Performance  Pricing  Determination  Date by
     reference to the table set forth below as to such type of Loan and the Debt
     Rating for the quarterly or annual period ending  immediately prior to such
     Performance Pricing  Determination Date; provided,  that (i) if there is no
     Debt Rating,  the Applicable  Margin for  Euro-Dollar  Loans shall be based
     upon Level IV of the table below, and (ii) for Euro-Dollar  Loans in effect
     under the Original  Agreement on the Closing Date, the Applicable Margin in
     effect under the Original Agreement shall continue to apply thereto for the
     remainder of the Interest Period with respect thereto.

<TABLE>
<CAPTION>

------------------  ---------------- ---------- ----------- -------------------
                        Level I       Level II   Level III       Level IV
------------------  ---------------- ---------- ----------- -------------------
------------------  ---------------- ---------- ----------- -------------------
<S>                 <C>                  <C>       <C>         <C>
Debt Rating          greater than
                    or equal to BBB+     BBB       BBB-        less than BBB-
                          or              or        or               or
                     greater than        Baa2      Baa3        less than Baa3
                    or equal to Baa1

------------------  ---------------- ---------- ----------- -------------------
------------------  ---------------- ---------- ----------- -------------------
Applicable Margin       0.825            0.95      1.10            1.30
------------------  ---------------- ---------- ----------- -------------------
</TABLE>

     In determining the amounts to be paid by the Borrowers pursuant to Sections
2.06(b),  and 2.07(a),  the  Borrowers and the Banks shall refer to the Parent's
Debt  Rating  from  time to time.  For  purposes  hereof,  "Performance  Pricing
Determination Date" shall mean each date on which the Debt Rating changes.  Each
change in  interest  and fees as a result of a change  in Debt  Rating  shall be
effective only for Loans (including  Refunding Loans) which are made on or after
the  relevant   Performance  Pricing   Determination  Date.  All  determinations
hereunder shall be made by the Administrative Agent unless the Required Banks or
the Borrowers shall object to any such determination.  The Parent shall promptly
notify the Administrative Agent of any change in the Debt Rating.

     (b) Each Base Rate Loan shall bear  interest on the  outstanding  principal
amount  thereof,  for each day from the date such Loan is made  until it becomes
due, at a rate per annum equal to the Base Rate for such day less the Applicable
Margin.  Such interest shall be payable for each Interest Period on the last day
thereof.  Any overdue  principal of and, to the extent  permitted by  applicable
law,  overdue  interest  on any Base Rate Loan shall bear  interest,  payable on
demand, for each day until paid at a rate per annum equal to the Default Rate.

<PAGE>

     (c) Each Euro-Dollar Loan shall bear interest on the outstanding  principal
amount thereof,  for the Interest Period applicable thereto, at a rate per annum
equal to the sum of the Applicable  Margin plus the applicable  Adjusted  London
Interbank Offered Rate for such Interest Period.  Such interest shall be payable
for each Interest Period on the last day thereof and, if such Interest Period is
longer than 1 month,  at intervals  of 1 month after the first day thereof.  Any
overdue  principal of and, to the extent  permitted by law,  overdue interest on
any Euro-Dollar Loan shall bear interest,  payable on demand, for each day until
paid at a rate per  annum  equal  to the  Default  Rate.

     The "Adjusted  London  Interbank  Offered Rate"  applicable to any Interest
Period means a rate per annum equal to the quotient  obtained  (rounded upwards,
if necessary,  to the next higher  1/100th of 1%) by dividing (i) the applicable
London  Interbank  Offered Rate for such Interest  Period by (ii) 1.00 minus the
Euro-Dollar Reserve Percentage.

     The "London  Interbank  Offered Rate"  applicable to any  Euro-Dollar  Loan
means for the  Interest  Period  of such  Euro-Dollar  Loan,  the rate per annum
determined  on the basis of the offered  rate for deposits in Dollars of amounts
equal or comparable to the principal amount of such Euro-Dollar Loan offered for
a term comparable to such Interest  Period,  which rates appear on Telerate Page
3750 effective as of 11:00 A.M., London time, 2 Euro-Dollar  Business Days prior
to the first day of such Interest Period, provided that if no such offered rates
appear on such page,  the  "London  Interbank  Offered  Rate" for such  Interest
Period will be the arithmetic average (rounded upward, if necessary, to the next
higher 1/100th of 1%) of rates quoted by not less than 2 major banks in New York
City,  selected by the  Administrative  Agent, at approximately  10:00 A.M., New
York City  time,  2  Euro-Dollar  Business  Days  prior to the first day of such
Interest Period, for deposits in Dollars offered by leading European banks for a
period  comparable to such  Interest  Period in an amount equal or comparable to
the principal amount of such Euro-Dollar Loan.

     "Euro-Dollar   Reserve  Percentage"  means  for  any  day  that  percentage
(expressed  as a decimal)  which is in effect on such day, as  prescribed by the
Board  of  Governors  of the  Federal  Reserve  System  (or any  successor)  for
determining  the maximum  reserve  requirement  for a member bank of the Federal
Reserve System in respect of  "Eurocurrency  liabilities"  (or in respect of any
other category of liabilities  which includes deposits by reference to which the
interest rate on  Euro-Dollar  Loans is determined or any category of extensions
of credit or other assets which includes loans by a non-United  States office of
any Bank to United States residents). The Adjusted London Interbank Offered Rate
shall be adjusted automatically on and as of the effective date of any change in
the Euro-Dollar Reserve Percentage.

     (d) The Administrative  Agent shall determine each interest rate applicable
to the Loans hereunder.  The Agent shall give prompt notice to the Borrowers and
the  Banks  by  telecopier  of each  rate of  interest  so  determined,  and its
determination thereof shall be conclusive in the absence of manifest error.

     (e) After the occurrence and during the continuance of an Event of Default,
the principal  amount of the Loans (and,  to the extent  permitted by applicable
law, all accrued  interest  thereon) may, at the election of the Required Banks,
bear  interest  at the  Default  Rate.

     (f) Each Money Market Loan shall bear interest on the outstanding principal
amount thereof,  for each day from the date such Money Market Loan is made until
it becomes  due, at a rate per annum equal to the  applicable  Money Market Rate
set forth in the relevant Money Market Quote.  Such interest shall be payable on
the Stated  Maturity Date thereof,  and, if the Stated Maturity Date occurs more
than 90 days after the date of the relevant  Money Market Loan,  at intervals of
90 days after the first day thereof. Any overdue principal of and, to the extent
permitted by law, overdue interest on any Money Market Loan shall bear interest,
payable  on  demand,  for each day until  paid at a rate per annum  equal to the
Default Rate.

<PAGE>

     SECTION 2.07. Fees
                   ----

     (a) The Borrowers shall pay to the  Administrative  Agent,  for the ratable
account of each Bank, a facility fee (the "Facility  Fee") on the maximum amount
of the aggregate Commitments in effect for any relevant period,  irrespective of
usage,  calculated in the manner provided in Section 2.07(a)(ii),  at a rate per
annum  equal  to

          (i) for the period commencing on the Closing Date to and including the
     first  Performance  Pricing  Determination  Date,  0.15%, and

          (ii) from and after the first Performance Pricing  Determination Date,
     the percentage determined on each Performance Pricing Determination Date by
     reference  to the  table  set  forth  below  and the  Debt  Rating  for the
     quarterly or annual period  ending  immediately  prior to such  Performance
     Pricing Determination Date; provided,  that if there is no Debt Rating, the
     Facility Fee shall be based upon Level IV of the table below.  The Facility
     Fee shall  accrue at all times from and  including  the Closing Date to but
     excluding the Termination  Date and shall be payable,  in arrears,  on each
     March 31, June 30,  September  30 and  December  31 and on the  Termination
     Date.
<TABLE>
<CAPTION>

-------------  --------------  --------------  -------------  ------------
                 Level I          Level II       Level III      Level IV
-------------  --------------  --------------  -------------  ------------
-------------  --------------  --------------  -------------  ------------
<S>            <C>             <C>             <C>            <C>
Debt Rating     greater than                                   less than
                or equal to
                    BBB+            BBB            BBB-           BBB-
                     or              or             or             or
                greater than        Baa2           Baa3        less than
                or equal to
                    Baa1                                          Baa3
-------------  --------------  --------------  -------------  ------------
-------------  --------------  --------------  -------------  ------------
Facility Fee       0.125            0.15           0.15           0.15
-------------  --------------  --------------  -------------  ------------
</TABLE>

     (b) The Borrowers shall pay to the  Administrative  Agent,  for the account
and sole benefit of the  Administrative  Agent,  such fees and other  amounts at
such times as set forth in the Administrative Agent's Letter Agreement.

     SECTION 2.08. Optional Termination or Reduction of Commitments
                   ------------------------------------------------

     The Borrowers  may, upon at least 3 Domestic  Business  Days' notice to the
Administrative  Agent,  terminate  at any time,  or  proportionately  reduce the
Unused  Commitments  from  time to  time  by an  aggregate  amount  of at  least
$5,000,000 or any larger integral multiple of $1,000,000. If the Commitments are
terminated in their entirety,  all accrued fees (as provided under Section 2.07)
shall be due and payable on the effective date of such termination.

     SECTION 2.09. Mandatory Reduction and Termination of Commitments
                   --------------------------------------------------

     The Commitments  shall terminate on the Termination Date and any Loans then
outstanding (together with accrued interest thereon) shall be due and payable on
such date. In the event of a Change in Control, the Administrative Agent (acting
at the direction of the Required  Banks) may terminate the Commitments on a date
specified  in a  notice  to the  Borrowers,  which  date  (i) must be at least 3
Domestic  Business  Days  following  the date of such  notice,  and  (ii)  shall
constitute the Termination Date for all purposes hereunder.

<PAGE>

     SECTION 2.10. Optional Prepayments
                   --------------------

     (a) The Borrowers  may, upon at least 2 Domestic  Business  Days' notice to
the Administrative  Agent, prepay any Fixed Rate Borrowing in whole at any time,
or from time to time in part in amounts  aggregating at least  $3,000,000 or any
larger  integral  multiple of  $500,000,  by paying the  principal  amount to be
prepaid together with accrued  interest thereon to the date of prepayment,  plus
the amount of  compensation  determined  to be due pursuant to Section  8.05, if
such  prepayment  is not  made on the  last of an  Interest  Period.  Each  such
optional  prepayment  shall be applied to prepay ratably the Fixed Rate Loans of
the several Banks included in such Fixed Rate Borrowing.

     (b) The Borrowers  may, upon at least 1 Domestic  Business  Days' notice to
the Administrative  Agent,  prepay any Base Rate Borrowing in whole at any time,
or from time to time in part in amounts  aggregating at least $ 3,000,000 or any
larger  integral  multiple of  $500,000,  by paying the  principal  amount to be
prepaid together with accrued  interest thereon to the date of prepayment.  Each
such optional  prepayment shall be applied to prepay ratably the Base Rate Loans
of the several Banks included in such Base Rate Borrowing.

     (c) Upon receipt of a notice of  prepayment  pursuant to this Section 2.10,
the Administrative Agent shall promptly notify each Bank of the contents thereof
and of such  Bank's  ratable  share of such  prepayment  and such  notice,  once
received by the  Administrative  Agent, shall not thereafter be revocable by the
Borrowers.

     SECTION 2.11. Mandatory Prepayments
                   ---------------------

     (a) On each date on which the Commitments  are reduced  pursuant to Section
2.08,  the  Borrowers  shall  repay  or  prepay  such  principal  amount  of the
outstanding Loans, if any (together with interest accrued thereon and any amount
required to be paid  pursuant to Section  8.05(a)),  as may be necessary so that
after such payment the aggregate  unpaid  principal amount of the Loans does not
exceed  the  aggregate  amount  of  the  Commitments  as  then  reduced.  On the
Termination  Date,  the  Borrowers  shall make the payments  required to be made
pursuant to Section 2.09.

     (b) On each date on which the aggregate outstanding principal amount of all
Syndicated  Loans and Money Market Loans exceeds the lesser of (A) the aggregate
amount  of the  Commitments  and (B) the  Borrowing  Base  (the  "Excess"),  the
Borrowers shall repay or prepay such principal amount of the outstanding  Loans,
if any (together with interest  accrued thereon and any amount due under Section
8.05(a)), by the amount of the Excess.

     (c) Each such payment or prepayment  shall be applied  ratably to the Loans
of the Banks  outstanding  on the date of payment or prepayment in the following
order of priority:(i)  first, to Base Rate Loans; (ii) secondly,  to Euro-Dollar
Loans; and (iii) lastly, to Money Market Loans.

     SECTION 2.12. General Provisions as to Payments
                   ---------------------------------

     (a) The Borrowers shall make each payment of principal of, and interest on,
the Loans and of fees  hereunder,  not later  than 1:00 P.M.  (Atlanta,  Georgia
time) on the date when due, in Federal or other funds  immediately  available in
Atlanta,  Georgia,  to the  Administrative  Agent at its address  referred to in
Section 9.01. The Administrative  Agent will distribute to each Bank its ratable
share of each such payment received by the Administrative  Agent for the account
of the Banks, such payment to be distributed by the Administrative  Agent (x) by
2:00 P.M. on the date of receipt by the Administrative Agent, provided that such
payment was received by the Administrative Agent by 1:00 P.M. (Atlanta,  Georgia
time),  and (y) by 2:00 P.M.  (Atlanta,  Georgia time) on the date following the
date of receipt by the Administrative Agent, if such payment was received by the
Administrative   Agent  after  1:00  P.M.   (Atlanta,   Georgia  time).  If  the
Administrative  Agent  shall  fail to make  such  distribution  within  the time
required by the immediately preceding sentence,  such distribution shall be made
together  with  interest  thereon,  for each day during the period from the date
such  distribution  should  have been so made  until the date such  distribution
actually is made, at a rate per annum equal to the Federal Funds Rate.

     (b)  Whenever  any payment of  principal  of, or interest on, the Base Rate
Loans or Money Market Loans or of fees hereunder  shall be due on a day which is
not a Domestic  Business Day, the date for payment  thereof shall be extended to
the next succeeding  Domestic Business Day. Whenever any payment of principal of
or  interest  on,  the  Euro-Dollar  Loans  shall be due on a day which is not a
Euro-Dollar  Business Day, the date for payment thereof shall be extended to the
next succeeding  Euro-Dollar  Business Day unless such Euro-Dollar  Business Day
falls in another  calendar  month,  in which case the date for  payment  thereof
shall be the next preceding Euro-Dollar Business Day.

<PAGE>

     (c) All payments of  principal,  interest and fees and all other amounts to
be made by the Borrowers  pursuant to this Agreement with respect to any Loan or
fee relating  thereto shall be paid without  deduction  for, and free from,  any
tax, imposts, levies, duties,  deductions,  or withholdings of any nature now or
at anytime  hereafter  imposed by any  governmental  authority  or by any taxing
authority  thereof or therein  excluding in the case of each Bank, taxes imposed
on or measured  by its net income,  and  franchise  taxes  imposed on it, by the
jurisdiction  under the laws of which such Bank is  organized  or any  political
subdivision  thereof and, in the case of each Bank, taxes imposed on its income,
and franchise taxes imposed on it, by the jurisdiction of such Bank's applicable
Lending  Office or any  political  subdivision  thereof  (all such  non-excluded
taxes, imposts,  levies, duties,  deductions or withholdings of any nature being
"Taxes"). In the event that the Borrowers are required by applicable law to make
any such  withholding  or  deduction of Taxes with respect to any Loan or fee or
other  amount,  the Borrowers  shall pay such  deduction or  withholding  to the
applicable  taxing  authority,  shall promptly furnish to any Bank in respect of
which such  deduction or  withholding  is made all receipts and other  documents
evidencing such payment and shall pay to such Bank additional  amounts as may be
necessary  in order that the  amount  received  by such Bank after the  required
withholding  or other  payment  shall  equal the  amount  such Bank  would  have
received had no such withholding or other payment been made.

     Each Bank which is not organized under the laws of the United States or any
state thereof agrees, as soon as practicable after receipt by it of a request by
the Borrowers to do so, to file all appropriate forms and take other appropriate
action  to  obtain  a  certificate  or  other  appropriate   document  from  the
appropriate  governmental  authority in the  jurisdiction  imposing the relevant
Taxes,  establishing  that it is entitled to receive  payments of principal  and
interest  under this  Agreement  and the Notes  without  deduction and free from
withholding  of any Taxes imposed by such  jurisdiction;  provided that if it is
unable, for any reason, to establish such exemption,  or to file such forms and,
in any event,  during  such  period of time as such  request  for  exemption  is
pending, the Borrowers shall nonetheless remain obligated under the terms of the
immediately preceding paragraph.

     In the event any Bank  receives a refund of any Taxes paid by the Borrowers
pursuant to this Section  2.12(c),  it will pay to the  Borrowers  the amount of
such  refund  promptly  upon  receipt  thereof;  provided  that  if at any  time
thereafter it is required to return such refund,  the Borrowers  shall  promptly
repay to it the amount of such refund.

     Without  prejudice to the survival of any other  agreement of the Borrowers
hereunder,  the  agreements  and  obligations  of the  Borrowers  and the  Banks
contained  in this  Section  2.12(c)  shall be  applicable  with  respect to any
Participant, Assignee or other Transferee, and any calculations required by such
provisions (i) shall be made based upon the  circumstances of such  Participant,
Assignee or other  Transferee,  and (ii)  constitute a continuing  agreement and
shall  survive  the  termination  of this  Agreement  and the payment in full or
cancellation of the Notes.

     SECTION 2.13. Computation of Interest and Fees
                   --------------------------------

     Interest on Base Rate Loans and Money Market Loans shall be computed on the
basis  of a year of 360 days and paid  for the  actual  number  of days  elapsed
(including  the first day but excluding the last day).  Interest on  Euro-Dollar
Loans  shall  be  computed  on the  basis of a year of 360 days and paid for the
actual  number of days elapsed,  calculated as to each Interest  Period from and
including  the  first  day  thereof  to but  excluding  the  last  day  thereof.
Commitment  fees and any other fees payable  hereunder  shall be computed on the
basis  of a year of 360 days and paid  for the  actual  number  of days  elapsed
(including the first day but excluding the last day).

<PAGE>

                                  ARTICLE III

                            CONDITIONS TO BORROWINGS

     SECTION 3.01. Conditions to First Borrowing
                   -----------------------------

     The  obligation  of each Bank to make a Syndicated  Loan on the occasion of
the first  Borrowing is subject to the  satisfaction of the conditions set forth
in Section 3.02 and receipt by the Administrative  Agent of the following (as to
the documents  described in paragraphs (a), (c),(d) and (e) below, in sufficient
number of counterparts  for delivery of a counterpart to each Bank and retention
of one counterpart by the Administrative Agent):

     (a)  from  each  of the  parties  hereto  of  either  (i) a  duly  executed
counterpart  of  this  Agreement  signed  by  such  party  or  (ii) a  facsimile
transmission of such executed  counterpart,  with the original to be sent to the
Administrative Agent by overnight courier);

     (b) a duly executed Syndicated Loan Note and Money Market Loan Note for the
account of each Bank  complying  with the  provisions of Section 2.04 and a duly
executed Guaranty and Contribution Agreement, and from each Bank which holds any
of the Original Notes, such Original Notes;

     (c) an opinion  letter (i)  (together  with any  opinions of local  counsel
relied on  therein) of Locke  Liddell & Sapp,  LLP,  counsel for the  Borrowers,
dated  as of the  Closing  Date,  in  form  and  substance  satisfactory  to the
Administrative Agent in its reasonable discretion,  the forms attached hereto as
Exhibit B and covering  such  additional  matters  relating to the  transactions
contemplated  hereby  as the  Administrative  Agent or any  Bank may  reasonably
request;

     (d) an opinion  of Jones,  Day,  Reavis & Pogue,  special  counsel  for the
Administrative Agent, dated as of the Closing Date, substantially in the form of
Exhibit C and covering  such  additional  matters  relating to the  transactions
contemplated hereby as the Administrative Agent may reasonably request;

     (e) a certificate (the "Closing Certificate")  substantially in the form of
Exhibit G), dated as of the Closing Date,  signed by an Executive Officer (other
than the  Secretary),  to the effect  that (i) no Default  has  occurred  and is
continuing on the date of the first Borrowing and (ii) the  representations  and
warranties  of the  Borrowers  contained in Article IV are true on and as of the
date of the first Borrowing hereunder;

     (f) all documents which the Administrative Agent or any Bank may reasonably
request relating to the existence of the Borrowers,  the corporate authority for
and the validity of this  Agreement,  the Notes and the Guaranty,  and any other
matters  relevant  hereto,  all  in  form  and  substance  satisfactory  to  the
Administrative Agent, including, without limitation,  certificates of incumbency
of the General  Partner and of each  Guarantor,  signed by the  Secretary  or an
Assistant  Secretary  of the  General  Partner and each  Guarantor,  in form and
substance   satisfactory   to   the   Administrative   Agent   (the   "Officer's
Certificate"), certifying as to the names, true signatures and incumbency of the
officer or officers of the General  Partner and Guarantor  authorized to execute
and deliver the Loan  Documents on behalf of the  Borrowers or  Guarantors,  and
certified copies of the following items:

          (i) for the Parent (1) its Certificate of Limited  Partnership and all
     amendments  thereto,  issued by the  Secretary of State of Delaware (or its
     certificate  that there have been no  amendments  thereto since the date of
     the Original Agreement and that it is still in full force and affect);  (2)
     its Fourth Amended and Restated Partnership  Agreement dated as of November
     12,  1998  and  all  amendments   thereto  and  (3)  its   Application  for
     Registration as a Foreign Limited  Partnership and all amendments  thereto,
     filed in the office of the Secretary of State of Texas (or its  certificate
     that there have been no  amendments  thereto since the date of the Original
     Agreement and that it is still in full force and affect);

          (ii) for the General Partner, (1) its Certificate of Incorporation and
     all amendments  thereto,  issued by the Secretary of State of Texas (or its
     certificate  that there have been no  amendments  thereto since the date of
     the Original Agreement and that it is still in full force and affect),  (2)
     its Bylaws and all amendments  thereto (or its certificate  that there have
     been no  amendments  thereto  since the date of the Original  Agreement and
     that it is  still  in full  force  and  affect)  and (3) a  Certificate  of
     Existence issued by the Secretary of State of Texas;

          (iii)  for  GBP,  (1) its  Declaration  of  Trust  and all  amendments
     thereto(or its certificate that there have been no amendments thereto since
     the date of the Original  Agreement  and that it is still in full force and
     affect) and (2) its Bylaws and all amendments  thereto (or its  certificate
     that there have been no  amendments  thereto since the date of the Original
     Agreement and that it is still in full force and affect); and
<PAGE>

     (g) for Gables-TN,  its Operating Agreement dated December 30, 1999 and all
amendments thereto; and

     (h) receipt of the fees required to be paid on the Closing Date pursuant to
Sections 2.07.

     The initial  Borrowing  hereunder shall include Loans in an amount which is
sufficient  to pay in full all  existing  principal  of and  accrued  and unpaid
interest of all Syndicated Loans outstanding under the Original Agreement on the
Closing  Date,  and all amounts  payable  pursuant to Section  7.05 with respect
thereto,  and to the  extent  that any Bank  has any  Syndicated  Loans to be so
repaid,  its funding of such  initial  Loans  shall be made  pursuant to Section
2.02(d). All Money Market Loans of any Bank which outstanding under the Original
Agreement  on the Closing  Date shall be deemed to be evidenced by the new Money
Market Loan Note issued to such Bank pursuant to Section 3.01(b).

     SECTION 3.02. Conditions to All Borrowings
                   ----------------------------

     The obligation of each Bank to make a Syndicated Loan or Money Market Loan,
as the  case  may be,  on the  occasion  of each  Borrowing  is  subject  to the
satisfaction  of the following  conditions  except as expressly  provided in the
last sentence of this Section 3.02:

     (a)  receipt  by the  Administrative  Agent of a  Notice  of  Borrowing  or
notification  pursuant  to Section  2.03(e) of  acceptance  of one or more Money
Market Quotes, as applicable.

     (b) the fact that, immediately before and after such Borrowing,  no Default
shall have occurred and be continuing;

     (c) the fact  that the  representations  and  warranties  of the  Borrowers
contained in Article IV of this Agreement shall be true on and as of the date of
such Borrowing; and

     (d) the fact that,  immediately  after such  Borrowing,  the conditions set
forth in clauses (i) and (ii) of Section  2.01 shall have been  satisfied.

     Each Syndicated  Borrowing and each Money Market Borrowing  hereunder shall
be deemed to be a  representation  and warranty by the  Borrowers on the date of
such Borrowing as to the truth and accuracy of the facts specified in paragraphs
(b),  (c)  and (d) of  this  Section;  provided  that  if  such  Borrowing  is a
Syndicated  Borrowing  which consists solely of a Refunding Loan, such Borrowing
shall not be deemed to be such a  representation  and warranty to the effect set
forth in Section  4.04(b) as to any event,  act or  condition  having a Material
Adverse Effect which has theretofore  been disclosed in writing by the Borrowers
to the Banks.

<PAGE>

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

     The  Borrowers  and (by  incorporation  by reference in the  Guaranty)  the
Guarantors, as expressly stated, each represent and warrant that:

     SECTION 4.01. Partnership or Corporate Existence and Power
                   --------------------------------------------

     The Parent is a limited partnership duly created and validly existing under
the laws of  Delaware,  Gables-TN  is a general  partnership  duly  created  and
validly  existing  under the laws of  Tennessee,  GBP is a trust  duly  created,
validly  existing and in good standing  under the laws of Maryland,  the General
Partner is a corporation  duly organized,  validly existing and in good standing
under the laws of Texas, and each of the foregoing is duly qualified to transact
business  in every  jurisdiction  where,  by the  nature of its  business,  such
qualification is necessary,  and has all partnership powers and all governmental
licenses,  authorizations,  consents  and  approvals  required  to  carry on its
business as now  conducted,  except  where any such failure does not have and is
not reasonably expected to cause a Material Adverse Effect.

     SECTION 4.02. Partnership or Corporate and Governmental Authorization;
                   No Contravention
                   --------------------------------------------------------

     The execution, delivery and performance by the Borrowers of this Agreement,
the Notes and the other Loan Documents and by the Guarantors of the Guaranty (i)
are within the  Borrowers'  partnership  powers and the  Guarantor's  respective
corporate powers, (ii) have been duly authorized by all necessary partnership or
corporate  action,  (iii)  require no action by or in respect of or filing with,
any  governmental  body,  agency or  official,  other than  filings  required by
federal or state  securities  laws with  respect to this  Agreement  (iv) do not
contravene,  or constitute a default  under,  any provision of applicable law or
regulation or of the certificate of limited partnership or partnership agreement
of the Borrowers or the articles of incorporation or by-laws of any Guarantor or
of  any  material  agreement,  judgment,  injunction,  order,  decree  or  other
instrument binding upon the Borrowers,  any Guarantor or any other Subsidiaries,
and (v) do not result in the creation or  imposition of any Lien on any asset of
the Borrowers, any Guarantor or any other Subsidiaries.

     SECTION 4.03. Binding Effect
                   --------------

     This Agreement  constitutes a valid and binding  agreement of the Borrowers
enforceable in accordance  with its terms,  and the Notes,  the Guaranty and the
other Loan  Documents,  when  executed  and  delivered in  accordance  with this
Agreement,  will constitute  valid and binding  obligations of the Borrowers and
the Guarantors parties thereto,  enforceable in accordance with their respective
terms,  provided that the  enforceability  hereof and thereof is subject in each
case to general  principles of equity and to bankruptcy,  insolvency and similar
laws affecting the enforcement of creditors' rights generally.

     SECTION 4.04. Financial and Property Information
                   ----------------------------------

     (a) The  balance  sheet of GBP and the  consolidated  balance  sheet of the
Parent and its Consolidated Subsidiaries as of December 31, 1999 and the related
consolidated  statements of income,  shareholders' equity and cash flows for the
Fiscal Year then ended,  in the case of GBP reported on by Arthur  Andersen LLP,
copies of which  have been  delivered  to each of the Banks,  and the  unaudited
financial statement of GBP and consolidated  financial  statements of the Parent
for the interim  period ended March 31, 2000 copies of which have been delivered
to each of the Banks,  fairly present,  in all material respects,  in conformity
with GAAP, subject in the case of quarterly  statements to normal year end audit
adjustments,  the consolidated  financial position of GBP and the Parent and its
Consolidated Subsidiaries, respectively, as of such dates and their consolidated
results of operations and cash flows for such periods stated.

     (b) Since  December 31, 1999,  there has been no event,  act,  condition or
occurrence having a Material Adverse Effect.

     (c) All  material  information  concerning  the  Properties  which has been
furnished  to the  Banks by the  Parent  is true  and  correct  in all  material
respects.

<PAGE>

     SECTION 4.05. No Litigation
                   -------------

     There is no action,  suit or proceeding pending, or to the knowledge of the
Executive  Officers,   threatened,  against  or  affecting  the  Borrowers,  any
Guarantor  or any  other  Subsidiaries  before  any court or  arbitrator  or any
governmental  body,  agency or official  which has or is reasonably  expected to
cause a Material  Adverse  Effect or which in any manner draws into question the
validity of or is reasonably  expected to impair the ability of the Borrowers or
any Guarantor to perform its obligations  under, this Agreement,  the Notes, the
Guaranty or any of the other Loan Documents.

     SECTION 4.06. Compliance with ERISA
                   ---------------------

     (a) The Parent and each member of the Controlled Group have fulfilled their
obligations  under  the  minimum  funding  standards  of ERISA and the Code with
respect to each Plan and are in  compliance  in all material  respects  with the
presently applicable provisions of ERISA and the Code, and have not incurred any
liability  to the PBGC or a Plan under Title IV of ERISA,  except where any such
failure does not involve an aggregate amount in excess of $2,500,000.

     (b)  Neither the Parent nor any member of the  Controlled  Group is or ever
has been obligated to contribute to any Multiemployer Plan.

     SECTION 4.07. Compliance with Laws; Payment of Taxes
                   --------------------------------------

     The Borrowers,  the Guarantors and the other Subsidiaries are in compliance
with all applicable laws,  regulations and similar  requirements of governmental
authorities,  except where (i) such  compliance is being contested in good faith
through appropriate  proceedings or (ii) any failure to comply does not have and
is not reasonably  expected to cause a Material Adverse Effect.  There have been
filed on behalf of the Borrowers,  the Guarantors and the other Subsidiaries all
Federal,  state and local income,  excise,  property and other tax returns which
are  required to be filed by them and all taxes due  pursuant to such returns or
pursuant  to any  assessment  received  by or on  behalf of the  Borrowers,  the
Guarantors or any other Subsidiary have been paid,  except: (A) ad valorem taxes
not due and payable; and (B) other liabilities,  if (1) they are being contested
in good faith and against which the  Borrowers,  Guarantor or Subsidiary has set
up reserves in accordance with GAAP, or (2) the aggregate amount involved is not
in excess of $2,500,000.  The charges, accruals and reserves on the books of the
Borrowers,  the  Guarantors  and the other  Subsidiaries  in respect of taxes or
other  governmental  charges  are,  in the  opinion  of the  Borrowers  and  the
Guarantors,  adequate.  United  States  income  tax  returns of GBP for the 1994
Fiscal Year have been timely  filed.  GBP has received no written  communication
from the Internal Revenue Service regarding such returns.

     SECTION 4.08. Subsidiaries
                   ------------

     The Parent has no  Subsidiaries  except  for those  Subsidiaries  listed on
Schedule 4.08, as supplemented  from time to time,  which  accurately sets forth
each such Subsidiary's complete name and jurisdiction of incorporation.

     SECTION 4.09. Investment Company Act
                   ----------------------

     Neither the  Borrowers,  the Guarantors  nor any other  Subsidiaries  is an
"investment  company" within the meaning of the Investment  Company Act of 1940,
as amended.

     SECTION 4.10. Public Utility Holding Company Act
                   ----------------------------------

     Neither the  Borrowers,  any  Guarantor  nor any  Subsidiary  is a "holding
company", or a "subsidiary company" of a "holding company", or an "affiliate" of
a "holding company" or of a "subsidiary company" of a "holding company", as such
terms are defined in the Public Utility Holding Company Act of 1935, as amended.

     SECTION 4.11. Ownership of Property
                   ---------------------

     Each of the Borrowers, the Guarantors and the Subsidiaries has title to its
properties  sufficient  for the conduct of its  business,  except where any such
failure does not have and is not reasonably expected to cause a Material Adverse
Effect.

<PAGE>

     SECTION 4.12. No Default
                   ----------

     Neither the Borrowers,  the Guarantors  nor any of the  Subsidiaries  is in
default under or with respect to any  agreement,  instrument or  undertaking  to
which it is a party or by which it or any of its  property is bound which has or
is reasonably  expected to cause a Material Adverse Effect.  No Default or Event
of Default has occurred and is continuing.

     SECTION 4.13. Full Disclosure
                   ---------------

     All information  heretofore  furnished by the Borrowers or any Guarantor to
the Administrative  Agent or any Bank for purposes of or in connection with this
Agreement or any transaction  contemplated  hereby is, and all such  information
hereafter  furnished by the  Borrowers to the  Administrative  Agent or any Bank
will be,  true,  accurate  and  complete  in all  material  respects or based on
reasonable  estimates  on the date as of which  such  information  is  stated or
certified.  The  Borrowers  and the  Guarantors  have  disclosed to the Banks in
writing any and all facts which have had or are  reasonably  expected to cause a
Material Adverse Effect.

     SECTION 4.14. Environmental Matters
                   ---------------------

     (a) Neither the Borrowers,  the Guarantors nor any other  Subsidiary is, to
the knowledge of the Executive Officers,  subject to any Environmental Liability
which has had or is reasonably  expected to cause a Material  Adverse Effect and
neither  the  Borrowers,  the  Guarantors  nor any  other  Subsidiary  has  been
designated  as a potentially  responsible  party under CERCLA or under any state
statute similar to CERCLA,  except as disclosed in writing to the Administrative
Agent (and the  Administrative  Agent shall promptly  furnish a copy of any such
disclosure  to the Banks).  None of the  Properties  has been  identified on any
current or proposed (i) National  Priorities  List under 40 C.F.R.  Section 300,
(ii)  CERCLIS list or (iii) any list  arising  from a state  statute  similar to
CERCLA,  except as disclosed in writing to the Administrative Agent, if any such
disclosures have been made.

     (b) No Hazardous Materials have been permitted or are being permitted to be
used, produced,  manufactured,  processed, treated, recycled, generated, stored,
disposed of,  managed or otherwise  handled at, or shipped or  transported to or
from the Properties or are otherwise present at, on, in or under the Properties,
or,  to the best of the  knowledge  of the  Executive  Officers,  at or from any
adjacent  site or facility,  except for  Hazardous  Materials,  such as cleaning
solvents,  pesticides and other materials used, stored, disposed of, managed, or
otherwise  handled in all material  respects in compliance  with all  applicable
Environmental   Requirements   and  except  as   disclosed  in  writing  to  the
Administrative Agent.

     (c)  The  Borrowers,  each  Guarantor  and  each of the  Subsidiaries,  has
procured  all  Environmental  Authorizations  necessary  for the  conduct of its
business, and is in compliance with all Environmental  Requirements  (including,
to  the  best  knowledge  of  the  Executive  Officers,   with  respect  to  any
Environmental  Releases) in connection  with the operation of the Properties and
the  Borrowers',   each  Guarantor's  and  each  other  Subsidiary's  respective
businesses,  except  where any such  failure to comply  does not have and is not
reasonably  expected to cause a Material Adverse Effect.

     SECTION 4.15. Partner Interests and Capital Stock
                   -----------------------------------

     All Partner Interests and Capital Stock,  debentures,  bonds, notes and all
other  securities  of the  Borrowers,  each  Guarantor  and  each  of the  other
Subsidiaries presently issued and outstanding are validly and properly issued in
accordance with all applicable  laws,  including,  but not limited to, the "Blue
Sky" laws of all applicable states and the federal securities laws, except where
any such  failure to comply does not and is not  reasonably  expected to cause a
Material  Adverse  Effect.  The issued  shares of Capital  Stock of the Parent's
Wholly Owned  Subsidiaries  are owned by the Borrower free and clear of any Lien
or adverse claim. At least a majority of the issued shares of non-voting Capital
Stock of each of the Parent's other Subsidiaries is owned by the Parent free and
clear of any Lien or adverse claim.

<PAGE>

     SECTION 4.16. Margin Stock
                   ------------

     Neither the Borrowers, any Guarantor nor any of the Subsidiaries is engaged
principally,  or as  one  of  its  important  activities,  in  the  business  of
purchasing or carrying any Margin Stock, and no part of the proceeds of any Loan
will be used to purchase or carry any Margin Stock or to extend credit to others
for the purpose of purchasing  or carrying any Margin Stock,  or be used for any
purpose  which  violates,  or which is  inconsistent  with,  the  provisions  of
Regulation X.

     SECTION 4.17. Insolvency
                   ----------

     After giving effect to the execution and delivery of the Loan Documents and
the making of the Loans under this Agreement:  (i) neither the Borrowers nor any
Guarantor  will (x) be  "insolvent,"  within the meaning of such term as used in
O.C.G.A.  Section 18-2-22 or as defined in Section 101 of the "Bankruptcy Code",
or Section 2 of either the  "UFTA" or the  "UFCA",  or as defined or used in any
"Other  Applicable Law" (as those terms are defined below),  or (y) be unable to
pay its debts  generally  as such debts become due within the meaning of Section
548 of the Bankruptcy  Code,  Section 4 of the UFTA or Section 6 of the UFCA, or
(z) have an unreasonably small capital to engage in any business or transaction,
whether  current  or  contemplated,  within the  meaning  of Section  548 of the
Bankruptcy  Code,  Section 4 of the UFTA or Section 5 of the UFCA;  and (ii) the
obligations  of the Borrowers  under the Loan  Documents and with respect to the
Loans  will not be  rendered  avoidable  under any  Other  Applicable  Law.  For
purposes of this Section  4.17,  "Bankruptcy  Code" means Title 11 of the United
States Code, "UFTA" means the Uniform Fraudulent  Transfer Act, "UFCA" means the
Uniform  Fraudulent  Conveyance Act, and "Other  Applicable Law" means any other
applicable  state law  pertaining  to  fraudulent  transfers or acts voidable by
creditors, in each case as such law may be amended from time to time.

     SECTION 4.18. Insurance
                   ---------

     The Borrowers,  each Guarantor and each of the  Subsidiaries has (either in
the name of the  Borrowers,  such  Guarantor or in such other  Subsidiary's  own
name), with financially sound and reputable  insurance  companies having an A.M.
Best  rating of B+ or better,  insurance  on all its  property  in at least such
amounts and against at least such risks as are  usually  insured  against in the
same  general area by companies  of  established  repute  engaged in the same or
similar business.

     SECTION 4.19. Real Estate Investment Trust
                   ----------------------------

     GBP is qualified under the Code as a real estate investment trust.

<PAGE>

                                    ARTICLE V

                                    COVENANTS

     The  Borrowers  and (by  incorporation  by reference in the  Guaranty)  the
Guarantors  agree that, so long as any Bank has any Commitment  hereunder or any
amount payable hereunder or under any Note remains unpaid:

     SECTION 5.01. Information
                   -----------

     GBP and the Borrowers will deliver to each of the Banks:

     (a) as soon as  available  and in any event within 90 days after the end of
each Fiscal  Year,  a  consolidated  balance  sheet of GBP and its  Consolidated
Subsidiaries  as of the end of its  Fiscal  Year  and the  related  consolidated
statements of income,  shareholders' equity and cash flows for such Fiscal Year,
setting  forth in each case in  comparative  form the figures  for the  previous
Fiscal Year, all certified by Arthur  Andersen LLP or other  independent  public
accountants of nationally  recognized  standing,  with such  certification to be
free of exceptions and  qualifications as to the scope of the audit or as to the
going concern nature of the business;

     (b) as soon as  available  and in any event within 45 days after the end of
each of the first 3 Fiscal Quarters of each Fiscal Year, a consolidated  balance
sheet  of GBP and its  Consolidated  Subsidiaries  as of the end of such  Fiscal
Quarter and the related statement of income and statement of cash flows for such
Fiscal  Quarter  and for the portion of the Fiscal Year ended at the end of such
Fiscal Quarter,  setting forth in each case in comparative  form the figures for
the corresponding  Fiscal Quarter and the corresponding  portion of the previous
Fiscal  Year,  all  certified  (subject to normal  year-end  adjustments)  as to
fairness of presentation, GAAP and consistency by an Executive Officer;

     (c)  simultaneously  with the delivery of each set of financial  statements
referred to in paragraphs (a) and (b) above, a certificate, substantially in the
form of Exhibit F (a  "Compliance  Certificate"),  of an  Executive  Officer (i)
setting  forth in  reasonable  detail the  calculations  required  to  establish
whether the Parent was in  compliance  with the  requirements  of Sections  5.03
through 5.09,  inclusive,  and Sections 5.25, 5.27 and 5.28, on the date of such
financial  statements and (ii) stating whether any Default exists on the date of
such  certificate  and, if any Default  then exists,  setting  forth the details
thereof  and the  action  which the  Parent is taking or  proposes  to take with
respect thereto;

     (d) within 5 Domestic  Business  Days after any Executive  Officer  becomes
aware of the occurrence of any Default,  a certificate  of an Executive  Officer
setting  forth the details  thereof and the action which the Parent is taking or
proposes to take with respect thereto;

     (e)  promptly  upon  the  mailing  thereof  to the  holders  of  beneficial
ownership in GBP  generally,  copies of all  financial  statements,  reports and
proxy statements so mailed;

     (f)  promptly  upon  the  filing  thereof,  notice  of  the  filing  of all
registration  statements (other than any registration  statements on Form S-3 or
Form S-8 or the  equivalent  thereof) and annual,  quarterly or monthly  reports
(excluding  Form  4,  Statement  of  Changes  in  Beneficial  Ownership,  or its
equivalent,  unless they reflect a Change in  Control),  any filing on Form 8-K,
and any filing pursuant to the Williams Act, which GBP shall have filed with the
Securities and Exchange Commission, and, upon the request of any Bank, copies of
any of the foregoing (other than the exhibits to any registration statements);

     (g) if and when any member of the Controlled Group (i) gives or is required
to give notice to the PBGC of any "reportable event" (as defined in Section 4043
of  ERISA)  with  respect  to any Plan  which  might  constitute  grounds  for a
termination  of such  Plan  under  Title IV of  ERISA,  or  knows  that the plan
administrator  of any Plan has given or is  required  to give notice of any such
reportable  event,  a copy of the  notice  of such  reportable  event  given  or
required to be given to the PBGC;  (ii)  receives  notice of complete or partial
withdrawal  liability  under Title IV of ERISA, a copy of such notice;  or (iii)
receives  notice from the PBGC under Title IV of ERISA of an intent to terminate
or appoint a trustee to administer any Plan, a copy of such notice;

     (h) within 45 Domestic  Business Days after the end of each Fiscal Quarter,
a  Borrowing  Base  Certificate  as of the last day of the Fiscal  Quarter  just
ended; provided,  however, that at the Parent's election,  Parent may, and or at
the  Administrative  Agent's election on not less than 10 Domestic Business Days
notice,  Parent shall, submit a Borrowing Base Certificate to the Administrative
Agent on or before  the  twentieth  Domestic  Business  Day after the end of the
first or second month in any Fiscal Quarter, as of the last day of such month;

<PAGE>

     (i) by April 1 of each  year,  a report as of the end of such  Fiscal  Year
containing the following  information:  (i) a schedule of all outstanding  Debt,
showing for each component of Debt, the lender, the total commitment,  the total
Debt outstanding,  the interest rate, if fixed, or a statement that the interest
rate floats,  the term, the required  amortization (if any) and the security (if
any);  (ii) a schedule of all interest rate protection  agreements,  showing for
each such agreement,  the total dollar amount,  the type of agreement (i.e. cap,
collar,  swap, etc.) and the term thereof;  and (iii) a development  schedule of
the announced  development  pipeline,  including for each announced  development
project,  the  project  name and  location,  the number of units,  the  expected
construction  start date, the expected date of delivery of the first units,  the
expected stabilization date, and the total anticipated cost.

     (j) from time to time such additional  information  regarding the financial
position or business of the Borrowers and its Subsidiaries as the Administrative
Agent, at the request of any Bank, may reasonably request.

     SECTION 5.02. Inspection of Property, Books and Records
                   -----------------------------------------

     The  Borrowers  and the  Guarantors  will (i) keep,  and cause  each  other
Consolidated  Subsidiary  to keep,  proper  books of record and account in which
full,  true and  correct  entries in  conformity  with GAAP shall be made of all
dealings and  transactions in relation to its business and activities;  and (ii)
permit, and cause each other Consolidated Subsidiary to permit,  representatives
of any Bank at such Bank's  expense prior to the  occurrence of a Default and at
the Borrowers' or such  Guarantor's  expense after the occurrence and during the
continuance  of  a  Default  to  visit  and  inspect  any  of  their  respective
properties, to examine and make abstracts from any of their respective books and
records and to discuss  their  respective  affairs,  finances and accounts  with
their respective  officers,  employees and independent public  accountants.  The
Borrowers  and the  Guarantors  agree to cooperate and assist in such visits and
inspections, in each case at such reasonable times, upon reasonable prior notice
to the Borrowers or such Guarantor and as often as may reasonably be desired.

     SECTION 5.03. Total Secured Debt
                   ------------------

     The  amount  of Total  Secured  Debt  will not at any  time  exceed  40% of
Adjusted Total Assets Value.

     SECTION 5.04. Ratio of Total Debt to Total Assets Value
                   -----------------------------------------

     The ratio of Total Debt to Total  Assets  Value will not at any time exceed
0.55 to 1.00.

     SECTION 5.05. Interest Coverage
                   -----------------

     The ratio of (x)  Consolidated  Income  Available  for Debt  Service to (y)
Consolidated  Interest Expense shall at all times exceed 2.00 to 1.0, calculated
at the end of each Fiscal  Quarter,  based on the Fiscal  Quarter just ended and
the immediately preceding three Fiscal Quarters.

     SECTION 5.06. Restricted Payments
                   -------------------

     The Parent's  Restricted Payments in any calendar year shall not exceed 95%
of Consolidated  Income Available for  Distribution for such period,  unless (i)
the  Parent  must pay out an  amount in  excess  of 95% of  Consolidated  Income
Available for Distribution to permit GBP to preserve its status as a real estate
investment  trust  under  the  applicable  provision  of the  Code,  or (ii) GBP
declares one or more capital gains dividends within such calendar year (in which
event the amount of additional  Restricted Payments that may be made as a result
of such declaration as provided in this clause (ii) shall not exceed the greater
of (A) the income tax liability of the Parent's  partners  with respect  thereto
and (B) $1,500,000).  In the event that the Parent or GBP receives a public debt
rating of BBB- or better from  Standard & Poors or Baa3 or better  from  Moody's
Investor's  Service and so long as that rating is affirmed during each year, the
Parent's  Restricted  Payments in any  calendar  year will be limited to 100% of
Consolidated  Income  Available for Distribution for such calendar year with the
same exceptions contained in clauses (i) and (ii) of this Section 5.06.

<PAGE>

     SECTION 5.07. Loans or Advances
                   -----------------

     Neither the Borrowers,  the Guarantors nor any other  Subsidiary shall make
loans or advances to any Person  except:  (i)  deposits  required by  government
agencies or public  utilities;  (ii) loans and advances made by Borrowers or any
Guarantor  to  any  Guarantor  or to  Borrowers;  (iii)  loans  or  advances  to
directors,  officers and  employees  in the  ordinary  course of business in the
aggregate  outstanding  at any  time not  exceeding  $1,000,000;  (iv)  loans or
advances to employees in the  ordinary  course of business  which are secured by
stock in GBP in the aggregate  outstanding at any time not exceeding $5,000,000;
and (v) other loans or advances  made in the ordinary  course of business in the
aggregate  outstanding  at any time not  exceeding  5% of the book  value of the
total  assets of the Parent and its  Consolidated  Subsidiaries,  determined  in
accordance  with GAAP minus all amounts  outstanding  under clause (iii) of this
Section  5.07 and minus  Investments  made and  permitted  pursuant  to  Section
5.09(D);  provided that after giving effect to the making of any loans, advances
or deposits permitted by clauses (i), (ii), (iii) or (iv), the Borrowers will be
in full compliance with all the provisions of this Agreement.

     SECTION 5.08. Purchases of Stock by Guarantors
                   --------------------------------

     Except for purchases or  acquisitions of shares of GBP's Capital Stock made
for purposes of having such shares  available  for purchase by GBP  shareholders
pursuant to GBP's dividend reinvestment and share purchase program known as "The
Share  Builder  Plan",  as amended as of the  Closing  Date and,  subject to the
approval of the  Required  Banks (not to be  unreasonably  withheld),  as it may
thereafter be amended,  the Guarantors  shall not purchase or acquire any shares
of GBP's  Capital Stock during any 12 month period in excess of 10% of all GBP's
Capital Stock outstanding on the first day of such period.

     SECTION 5.09. Investments
                   -----------

     Neither the  Borrowers nor the  Guarantors  shall make  Investments  in any
Person except:  (A)  Investments in (i) direct  obligations of the United States
Government,  (ii)  certificates  of deposit  issued by a  commercial  bank whose
credit is satisfactory to the Administrative Agent, (iii) commercial paper rated
A1 or the  equivalent  thereof  by  Standard & Poor's  Corporation  or P1 or the
equivalent  thereof  by  Moody's  Investors  Service,  Inc.  and in either  case
maturing  within 9 months after the date of  acquisition,  (iv) tender bonds the
payment of the principal of and interest on which is fully supported by a letter
of credit issued by a United States bank whose long-term certificates of deposit
are rated at least AA or the equivalent thereof by Standard & Poor's Corporation
and Aa or the equivalent thereof by Moody's Investors Service, Inc., (v) insured
money market  Investments  and/or (vi) Investments in debt or equity  securities
rated at least BBB+ or the equivalent  thereof by Standard & Poor's  Corporation
or at least Baa1 or the  equivalent  thereof by Moody's  Investors  Service  not
exceeding  an  aggregate  amount  outstanding  at any time of  $25,000,000;  (B)
Investments  permitted  by clauses  (i),  (ii) and (iii) of  Section  5.07 or by
Section 5.08; (C) Investments in Significant Subsidiaries; (D) the South Florida
Acquisition;  and (E)  other  Investments  not  exceeding  an  aggregate  amount
outstanding  at any time 10% of the book value of the total assets of the Parent
and its  Consolidated  Subsidiaries,  determined in accordance  with GAAP,  less
loans and advances outstanding and permitted by clause (iv) of Section 5.07.

     SECTION 5.10. Dissolution
                   -----------

     Neither the Borrowers,  the  Guarantors  nor any of the other  Subsidiaries
shall suffer or permit  dissolution or liquidation either in whole or in part or
redeem or retire any shares of its own stock or that of any  Subsidiary,  except
to the extent  permitted by Section 5.11 and except for  purchases by GBP of its
own Capital Stock to the extent  permitted by Section  5.08,  and subject to the
rights of limited partners of the Borrowers to convert or exchange their Partner
Interests in the Borrowers to stock in GBP.

<PAGE>

     SECTION 5.11. Consolidations, Mergers and Sales of Assets
                   -------------------------------------------

     The Borrowers and the  Guarantors  will not, nor will the Borrowers  permit
any other  Subsidiary to,  consolidate or merge with or into, or sell,  lease or
otherwise  transfer  all or any  substantial  part of its  assets  to, any other
Person, or discontinue or eliminate any business line or segment, provided that

     (a) the  Borrowers,  any Guarantor and any other  Subsidiary may merge with
another  Person if (i) such  Person was  organized  under the laws of the United
States of America or one of its states,  (ii) the Borrowers or such Guarantor or
other Subsidiary is the corporation  surviving such merger and (iii) immediately
after  giving  effect to such  merger,  no Default  shall have  occurred  and be
continuing,

     (b) any Guarantor may merge with or transfer assets to another Guarantor or
either of the Borrowers  (with such Borrower as the survivor of any such merger)
and any other  Subsidiary  may merge  with or  transfer  assets to a  Guarantor,
another  Subsidiary,  or either of the  Borrowers  (with  such  Borrower  as the
survivor of any such merger), and

     (c) the foregoing limitation on the sale, lease or other transfer of assets
and on the  discontinuation  or  elimination of a business line or segment shall
not prohibit,

          (i) the sale of Properties,  during any period of 12 calendar  months,
     pursuant to reasonable  terms which are no less  favorable to the Borrowers
     or such  Subsidiary  than would be obtained in a  comparable  arm's  length
     transaction with a Person which is not an Affiliate,  for fair market value
     (as  determined in good faith by the Board of Directors of the Borrowers or
     an Executive  Committee  thereof),  for an aggregate amount,  when combined
     with all other such sales pursuant to this clause  (c)(i),  does not exceed
     15% of  Consolidated  Total  Assets  as of the  end of the  Fiscal  Quarter
     immediately  preceding the Fiscal  Quarter in which such 12 calendar  month
     period begins, or

          (ii)  during  any Fiscal  Quarter,  other  transfers  of assets or the
     discontinuance  or  elimination  of a business line or segment (in a single
     transaction  or in a series of related  transactions)  unless the aggregate
     assets to be so transferred or utilized in a business line or segment to be
     so discontinued,  when combined with all other assets transferred,  and all
     other assets utilized in all other business lines or segments discontinued,
     during such Fiscal Quarter and the immediately preceding 3 Fiscal Quarters,
     excluding in all cases sales  permitted  under clause (c)(i) above,  either
     (x) constituted more than 5% of Consolidated Total Assets at the end of the
     Fiscal  Quarter   immediately   preceding  such  Fiscal  Quarter,   or  (y)
     contributed more than 5% of Consolidated  Income Available for Debt Service
     during the 4 Fiscal Quarters immediately preceding such Fiscal Quarter.

     In the case of any  Subsidiary  which  transfers  substantially  all of its
assets pursuant to clause (c) of the preceding sentence,  and in the case of any
Subsidiary the stock of which is being sold and with respect to which clause (c)
would have been satisfied if the  transaction  had been a sale of assets of such
Subsidiary,  such  Subsidiary  may  dissolve  and,  if it is a  Guarantor,  such
Subsidiaries shall be entitled to obtain from the Administrative Agent a written
release from the Guaranty,  provided that it can  demonstrate  to the reasonable
satisfaction  of the  Administrative  Agent  that  (A) it was not a  Significant
Subsidiary  immediately prior to such transfer of assets,  and (B) it has repaid
in full all Debt owed to the Borrowers or any other Guarantor which was incurred
after the  Closing  Date (or such Debt has been  assumed by the  Borrowers  or a
Significant  Subsidiary),  and upon obtaining such written release,  it shall no
longer be a Guarantor for any purpose hereunder.

     SECTION 5.12. Use of Proceeds
                   ---------------

     The  proceeds  of the  Loans may be used to  provide  a line of credit  for
construction and acquisition financing and for general corporate and partnership
purposes of the Borrowers and the Guarantors.  No portion of the proceeds of the
Loans will be used by the Borrowers or any  Guarantor  (i) in  connection  with,
whether directly or indirectly,  any tender offer for, or other  acquisition of,
stock of any  corporation  with a view towards  obtaining  control of such other
corporation,  unless such tender offer or other  acquisition  is to be made on a
negotiated basis with the approval of the Board of Directors of the Person to be
acquired  or  (ii)  for  any  purpose  in  violation  of any  applicable  law or
regulation.

<PAGE>

     SECTION 5.13. Compliance with Laws; Payment of Taxes
                   --------------------------------------

     The  Borrowers  and  Guarantors  will,  and will  cause  each of the  other
Subsidiaries  and each member of the Controlled Group to, comply with applicable
laws (including but not limited to ERISA),  regulations and similar requirements
of governmental  authorities  (including but not limited to PBGC),  except where
(i) the necessity of such  compliance  is being  contested in good faith through
appropriate  proceedings,  or (ii) any failure to comply which does not have and
is not reasonably expected to cause a Material Adverse Effect. The Borrowers and
Guarantors will, and will cause each of the other  Subsidiaries to, pay promptly
when  due all  taxes,  assessments,  governmental  charges,  claims  for  labor,
supplies,  rent and other  obligations  which,  if unpaid,  might  become a Lien
against the Property of the  Borrowers,  any Guarantor or any other  Subsidiary,
except (A)  liabilities  being  contested  in good faith and against  which,  if
requested by the  Administrative  Agent, the Borrowers,  Guarantor or Subsidiary
will  set up  reserves  in  accordance  with  GAAP,  and (B)  liabilities  in an
aggregate amount for all Properties not in excess of $1,000,000.

     SECTION 5.14. Insurance
                   ---------

     The Borrowers and the Guarantors will maintain,  and will cause each of the
other  Subsidiaries  to maintain  (either in the name of the  Borrowers  or such
Guarantor's or such other  Subsidiary's own name),  with  financially  sound and
reputable  insurance  companies  having an A.M.  Best  rating  of B+ or  better,
insurance on all its property in at least such amounts and against at least such
risks as are usually  insured  against in the same  general area by companies of
established repute engaged in the same or similar business.

     SECTION 5.15. Change in Fiscal Year
                   ---------------------

     The  Borrowers  and the  Guarantors  will  not,  and will  cause  the other
Subsidiaries  to not, change its Fiscal Year without the consent of the Required
Banks.

     SECTION 5.16. Maintenance of Property; Principal Business
                   -------------------------------------------

     The  Borrowers  and the  Guarantors  shall,  and  shall  cause  each  other
Subsidiary  to,  maintain all of its  properties  and assets in good  condition,
repair and working  order,  ordinary  wear and tear  excepted,  and maintain all
Multi-Family  Property  (other than  Property  consisting  of land acquired with
existing improvements which are to be substantially demolished) in a first class
manner. The principal business operations of the Borrowers and the Subsidiaries,
taken as a  whole,  will be  directly  or  indirectly  related  to  Multi-Family
Properties.

     SECTION 5.17. Environmental Notices
                   ---------------------

     Promptly upon any Executive Officer's becoming aware thereof, the Borrowers
and the  Guarantors  shall  furnish  to the Banks and the  Administrative  Agent
prompt written notice of all Environmental Liabilities,  pending,  threatened or
anticipated  Environmental  Proceedings,  Environmental  Notices,  Environmental
Judgments and Orders, and Environmental Releases at, on, in, under or in any way
affecting  the  Properties  or  any  adjacent  property,  which  has  had  or is
reasonably expected to cause a Material Adverse Effect.

     SECTION 5.18. Environmental Matters
                   ---------------------

     The  Borrowers  and the  Guarantors  will  not,  and will  cause  the other
Subsidiaries  to not,  and will not permit  any Third  Party to,  use,  produce,
manufacture, process, treat, recycle, generate, store, dispose of, manage at, or
otherwise  handle,  or ship or transport to or from the Properties any Hazardous
Materials except for Hazardous  Materials such as cleaning solvents,  pesticides
and other materials used, produced, manufactured,  processed, treated, recycled,
generated,  stored, disposed, managed, or otherwise handled in compliance in all
material respects with all applicable Environmental Requirements.

<PAGE>

     SECTION 5.19. Environmental Release
                   ---------------------

     The Borrowers and the  Guarantors  agree that upon any Executive  Officer's
becoming aware of the occurrence of an Environmental Release at or on any of the
Properties the Borrowers will act promptly to investigate  the extent of, and to
take appropriate action to remediate such Environmental Release,  whether or not
ordered or otherwise directed to do so by any Environmental Authority.

     SECTION 5.20. Transactions with Affiliates
                   ----------------------------

     Neither the Borrowers,  the  Guarantors  nor any of the other  Subsidiaries
shall enter into,  or be a party to, any  transaction  with any Affiliate of the
Borrowers,  such Guarantor or such other Subsidiary (which Affiliate is not GBP,
the Borrowers, a Guarantor or a Wholly Owned Subsidiary), except as permitted by
law and in the  ordinary  course of business and  pursuant to  reasonable  terms
which are no less  favorable  to  Borrowers  or such  Subsidiary  than  would be
obtained in a comparable arm's length  transaction with a Person which is not an
Affiliate.

     SECTION 5.21. Amendment of Other Agreements
                   -----------------------------

     Within 90 days after the Closing Date, the Borrowers  shall amend all other
agreements  pertaining  to  credit  facilities  with  any of the  Banks so as to
conform the financial  covenants  contained  therein to those  contained in this
Agreement.

     SECTION 5.22. Qualification  as a Real Estate  Investment  Trust;
                   General Partner
                   ---------------------------------------------------

     GBP shall at all times  remain  qualified  under the Code as a real  estate
investment  trust and Gables GP, Inc. shall at all times be the General Partner.
The Parent will not agree to amend or waive the  requirements  of Section 3.2 of
the limited  partnership  agreement  of the Parent,  as in effect on the date of
this  Agreement,  as such  requirements  are applicable to the General  Partner,
without the prior written consent of the Required Banks (which consent the Banks
hereby agree not to unreasonably withhold or delay).

     SECTION 5.23. Significant Subsidiaries to be Guarantors; Election to Become
                   Guarantor
                   -------------------------------------------------------------

     Any Subsidiary (whether existing on the Closing Date or acquired or created
thereafter)  (i) must become a Guarantor  promptly  upon  becoming a Significant
Subsidiary,  and (ii) may elect to become a Guarantor at any time if it is not a
Significant  Subsidiary,  in each case by (x)  executing  and  delivering to the
Administrative  Agent a  counterpart  of the Guaranty and a  counterpart  of the
Contribution Agreement, thereby becoming a party to each of them, (y) delivering
to the  Administrative  Agent an opinion of counsel to such Subsidiary,  in form
and  substance  satisfactory  to the  Administrative  Agent  in  its  reasonable
discretion,  the form attached hereto as Exhibit B (being one such  satisfactory
form,  but limited to such  Subsidiary,  and making  appropriate  modifications,
including   references  to  this  Agreement  and  to  Wachovia  Bank,  N.A.,  as
Administrative Agent, rather than to the Original Agreement and Wachovia Bank of
Georgia,  N.A.,  respectively,  and  excluding  paragraph  2  thereof,  and  (z)
delivering to the  Administrative  Agent documents  pertaining to the Subsidiary
reasonably  requested  by the  Administrative  Agent of the types  described  in
paragraph (f) of Section 3.01 (but making appropriate  modifications,  including
references to this  Agreement  and to Wachovia  Bank,  N.A.,  as  Administrative
Agent, rather than to the Original Agreement and Wachovia Bank of Georgia, N.A.,
respectively).

     SECTION 5.24. Certain Provisions Regarding Eligible Properties
                   ------------------------------------------------

     Neither the Borrowers nor any Consolidated  Subsidiary will create,  assume
or suffer to exist any Lien on any Eligible  Property  included in the Borrowing
Base, now owned or hereafter acquired by it, except Permitted Encumbrances.

     SECTION 5.25. Restrictions of Certain Additional Guarantees
                   ---------------------------------------------

     Neither the  Borrowers nor any of the  Guarantors  shall incur or permit to
exist any Guarantees of unsecured  revolving Debt,  other than the Guaranty made
hereunder,  in  an  aggregate  principal  amount  outstanding  at  any  time  of
$25,000,000 or more.
<PAGE>

     SECTION 5.26. Maintenance of Existence
                   ------------------------

     The  Borrowers  shall,  and shall cause each  Subsidiary  to,  maintain its
corporate  existence and carry on its business in substantially  the same manner
and in  substantially  the same  fields as such  business  is now carried on and
maintained.

     SECTION 5.27. Ratio of Total Unencumbered  Assets Value to
                   Unsecured Funded Debt
                   --------------------------------------------

     The ratio of Total Unencumbered  Assets Value to Unsecured Funded Debt will
not at any time be less than 1.75 to 1.00.

     SECTION 5.28. Consolidated Fixed Charges Coverage Ratio
                   -----------------------------------------

     At the end of each Fiscal Quarter,  the Consolidated Fixed Charges Coverage
Ratio shall not be less than 1.75 to 1.0.

<PAGE>

                                   ARTICLE VI

                                    DEFAULTS

     SECTION 6.01. Events of Default
                   -----------------

     If one or more of the  following  events  ("Events of Default")  shall have
occurred and be continuing:

     (a) the  Borrowers  shall fail to pay when due any principal of any Loan or
shall fail to pay any interest on any Loan within 5 Domestic Business Days after
such  interest  shall  become due, or shall fail to pay any fee or other  amount
payable hereunder within 5 Domestic Business Days after such fee or other amount
becomes due; or

     (b) the  Borrowers  or any  Guarantor  shall fail to observe or perform any
covenant contained in Sections 5.01(c),  5.02(ii), 5.03 through 5.12, inclusive,
Sections 5.22 or Sections 5.24 through 5.28; or

     (c) the  Borrowers  or any  Guarantor  shall fail to observe or perform any
covenant or  agreement  contained in this  Agreement or any other Loan  Document
(other than those  covered by paragraph (a) or (b) above) and such failure shall
not have been  cured  within 30 days after the  earlier to occur of (i)  written
notice  thereof  has  been  given  to the  Borrowers  or such  Guarantor  by the
Administrative  Agent at the request of any Bank or (ii) an Executive Officer or
such Guarantor otherwise becomes aware of any such failure; or

     (d) any  representation,  warranty,  certification or statement made by the
Borrowers or any Guarantor in Article IV of this  Agreement or in any other Loan
Document or in any certificate,  financial statement or other document delivered
pursuant to this  Agreement or any other Loan Document  shall prove to have been
incorrect or misleading in any material respect when made (or deemed made); or

     (e) the Borrowers,  GBP or any Subsidiary shall fail to make any payment in
respect  of Debt  outstanding  (other  than the  Notes)  when due or within  any
applicable grace period, if the amount of any such Debt of the Borrowers, GBP or
any Subsidiary  individually is $5,000,000 or more or if the aggregate amount of
all such Debt of the Borrowers, GBP and all Subsidiaries is $10,000,000 or more;
or

     (f) any event or condition shall occur which results in the acceleration of
the  maturity  of  Debt  outstanding  of the  Borrowers,  GBP or any  Subsidiary
(including,  without limitation,  any required mandatory  prepayment or "put" of
such Debt to the Borrowers or any Subsidiary) or enables (or, with the giving of
notice  or lapse of time or both,  would  enable)  the  holders  of such Debt or
commitment  or any  Person  acting on such  holders'  behalf to  accelerate  the
maturity   thereof  or  terminate  any  such  commitment   (including,   without
limitation,  any  required  mandatory  prepayment  or "put" of such  Debt to the
Borrowers or any  Subsidiary),  if the amount of any such Debt of the Borrowers,
GBP or any  Subsidiary  individually  is  $5,000,000 or more or if the aggregate
amount  of  all  such  Debt  of the  Borrowers,  GBP  and  all  Subsidiaries  is
$10,000,000 or more; or

     (g) the Borrowers, GBP or any Subsidiary shall commence a voluntary case or
other  proceeding  seeking  liquidation,  reorganization  or other  relief  with
respect to itself or its debts under any bankruptcy, insolvency or other similar
law now or  hereafter  in  effect  or  seeking  the  appointment  of a  trustee,
receiver,  liquidator,  custodian  or  other  similar  official  of  it  or  any
substantial part of its property,  or shall consent to any such relief or to the
appointment of or taking  possession by any such official in an involuntary case
or other proceeding commenced against it, or shall make a general assignment for
the benefit of creditors, or shall fail generally, or shall admit in writing its
inability,  to pay its debts as they  become  due,  or shall take any  corporate
action to authorize any of the foregoing; or

     (h) an involuntary case or other proceeding shall be commenced  against the
Borrowers,  GBP or any Subsidiary seeking  liquidation,  reorganization or other
relief with respect to it or its debts under any bankruptcy, insolvency or other
similar law now or hereafter in effect or seeking the  appointment of a trustee,
receiver,  liquidator,  custodian  or  other  similar  official  of  it  or  any
substantial part of its property,  and such involuntary case or other proceeding
shall remain  undismissed  and unstayed for a period of 60 days; or an order for
relief shall be entered against the Borrowers,  GBP or any Subsidiary  under the
federal bankruptcy laws as now or hereafter in effect; or

<PAGE>

     (i) the Borrowers or any member of the  Controlled  Group shall fail to pay
when due any  material  amount  which it shall have become  liable to pay to the
PBGC or to a Plan under  Title IV of ERISA;  or notice of intent to  terminate a
Plan or Plans  shall  be filed  under  Title IV of ERISA by the  Borrowers,  any
member of the Controlled Group, any plan administrator or any combination of the
foregoing;  or the PBGC shall institute  proceedings  under Title IV of ERISA to
terminate or to cause a trustee to be appointed to  administer  any such Plan or
Plans or a  proceeding  shall be  instituted  by a fiduciary of any such Plan or
Plans to enforce  Section 515 or 4219(c)(5) of ERISA and such  proceeding  shall
not have been dismissed within 30 days thereafter; or a condition shall exist by
reason of which the PBGC would be entitled to obtain a decree  adjudicating that
any such Plan or Plans must be terminated;  or the Borrowers or any other member
of the  Controlled  Group  shall  enter  into,  contribute  or be  obligated  to
contribute to,  terminate or incur any  withdrawal  liability with respect to, a
Multiemployer Plan; or

     (j) one or  more  judgments  or  orders  for the  payment  of  money  in an
aggregate amount in excess of $1,000,000 shall be rendered against the Borrowers
or any  Subsidiary  and such judgment or order shall  continue  unsatisfied  and
unstayed for a period of 30 days; or

     (k) a  federal  tax lien  shall  be  filed  against  the  Borrowers  or any
Subsidiary  under  Section 6323 of the Code or a lien of the PBGC shall be filed
against the  Borrowers  or any  Subsidiary  under  Section  4068 of ERISA and in
either case such lien shall  remain  undischarged  for a period of 25 days after
the date of filing.

then, and in every such event, (i) the Administrative  Agent shall, if requested
by the Required Banks, by notice to the Borrowers  terminate the Commitments and
they  shall  thereupon  terminate,  (ii)  the  Administrative  Agent  shall,  if
requested by the Required  Banks,  by notice to the Borrowers  declare the Notes
(together  with  accrued  interest  thereon),  and  all  other  amounts  payable
hereunder  and under the other Loan  Documents,  to be, and the Notes,  together
with accrued interest thereon, and all other amounts payable hereunder and under
the other Loan Documents  shall  thereupon  become,  immediately due and payable
without presentment,  demand,  protest or other notice of any kind, all of which
are hereby  waived by the  Borrowers  together with interest at the Default Rate
accruing on the principal  amount  thereof from and after the date of such Event
of Default,  and (iii) any Bank may  terminate  its  obligation  to fund a Money
Market Loan in connection with any relevant Money Market Quote; provided that if
any Event of Default specified in paragraph (g) or (h) above occurs with respect
to the  Borrowers,  without any notice to the  Borrowers or any other act by the
Administrative Agent or the Banks, the Commitments shall thereupon terminate and
the Notes (together with accrued interest thereon) and all other amounts payable
hereunder and under the other Loan  Documents  shall  automatically  and without
notice become immediately due and payable without presentment,  demand,  protest
or other  notice of any kind,  all of which are hereby  waived by the  Borrowers
together  with  interest  thereon at the Default Rate  accruing on the principal
amount thereof from and after the date of such Event of Default. Notwithstanding
the  foregoing,  the  Administrative  Agent shall have available to it all other
remedies at law or equity, and under any of the other Loan Documents,  and shall
exercise any one or all of them at the request of the Required Banks.

     SECTION 6.02. Notice of Default
                   -----------------

     The Administrative  Agent shall give notice to the Borrowers of any Default
under Section  6.01(c)  promptly  upon being  requested to do so by any Bank and
shall thereupon notify all the Banks thereof.

<PAGE>

                                  ARTICLE VII

                            THE ADMINISTRATIVE AGENT

     SECTION 7.01. Appointment; Powers and Immunities
                   ----------------------------------

     (a) Each Bank hereby irrevocably appoints and authorizes the Administrative
Agent to act as its agent hereunder and under the other Loan Documents with such
powers as are specifically  delegated to the  Administrative  Agent by the terms
hereof and thereof, together with such other powers as are reasonably incidental
thereto. The Administrative  Agent: (a) shall have no duties or responsibilities
except as expressly set forth in this  Agreement  and the other Loan  Documents,
and shall  not by reason of this  Agreement  or any  other  Loan  Document  be a
trustee  for any  Bank;  (b)  shall  not be  responsible  to the  Banks  for any
recitals, statements,  representations or warranties contained in this Agreement
or any other Loan Document,  or in any certificate or other document referred to
or provided for in, or received by any Bank under,  this  Agreement or any other
Loan Document, or for the validity, effectiveness,  genuineness,  enforceability
or  sufficiency  of this  Agreement  or any  other  Loan  Document  or any other
document referred to or provided for herein or therein or for any failure by the
Borrowers to perform any of its obligations  hereunder or thereunder;  (c) shall
not be required to initiate or conduct any litigation or collection  proceedings
hereunder or under any other Loan Document except to the extent requested by the
Required  Banks,  and then  only on terms  and  conditions  satisfactory  to the
Administrative  Agent,  and (d) shall not be responsible for any action taken or
omitted  to be taken by it  hereunder  or under any other Loan  Document  or any
other document or instrument referred to or provided for herein or therein or in
connection herewith or therewith, except for its own gross negligence or willful
misconduct. The Administrative Agent may employ agents and attorneys-in-fact and
shall not be responsible  for the negligence or misconduct of any such agents or
attorneys-in-fact  selected by it with  reasonable  care. The provisions of this
Article  VII are solely  for the  benefit  of the  Administrative  Agent and the
Banks, and the Borrowers shall not have any rights as a third party  beneficiary
of any of the  provisions  hereof.  In performing its functions and duties under
this  Agreement and under the other Loan  Documents,  the  Administrative  Agent
shall act  solely as agent of the  Banks  and does not  assume  and shall not be
deemed to have assumed any obligation towards or relationship of agency or trust
with or for the  Borrowers.  The  duties of the  Administrative  Agent  shall be
ministerial and administrative in nature, and the Administrative Agent shall not
have by  reason  of this  Agreement  or any  other  Loan  Document  a  fiduciary
relationship in respect of any Bank. The  Administrative  Agent shall administer
the Loans and the Loan  Documents  with a degree of care at least  equal to that
customarily  employed  by the  Administrative  Agent  in the  administration  of
similar credit facilities for its own account.

     (b) Each Bank hereby  designates  First Union  National Bank as Syndication
Agent and The Chase Manhattan Bank as Documentation Agent. The Syndication Agent
and the  Documentation  Agent,  in such  capacities,  shall  have no  duties  or
obligations  whatsoever  under this  Agreement or any other Loan Document or any
other document or any matter related hereto and thereto,  but shall nevertheless
be entitled to all the  indemnities and other  protection  afforded to the Agent
under this Article VII.

     SECTION 7.02. Reliance by Administrative Agent
                   --------------------------------

     The Administrative  Agent shall be entitled to rely upon any certification,
notice or other communication  (including any thereof by telephone,  telecopier,
telegram  or cable)  believed  by it to be genuine  and correct and to have been
signed or sent by or on behalf of the proper Person or Persons,  and upon advice
and  statements  of legal  counsel,  independent  accountants  or other  experts
selected by the  Administrative  Agent. As to any matters not expressly provided
for by this Agreement or any other Loan Document, the Administrative Agent shall
in all  cases be fully  protected  in  acting,  or in  refraining  from  acting,
hereunder and thereunder in accordance with instructions  signed by the Required
Banks,  and such  instructions  of the  Required  Banks in any  action  taken or
failure to act pursuant thereto shall be binding on all of the Banks.

<PAGE>

     SECTION 7.03. Defaults
                   --------

     The  Administrative  Agent  shall not be deemed  to have  knowledge  of the
occurrence  of a Default or an Event of Default  (other than the  nonpayment  of
principal  of or  interest  on the Loans)  unless the  Administrative  Agent has
received notice from a Bank or the Borrowers specifying such Default or Event of
Default and stating that such notice is a "Notice of Default". In the event that
the  Administrative  Agent receives such a notice of the occurrence of a Default
or an Event of  Default,  the  Administrative  Agent  shall give  prompt  notice
thereof to the  Banks.  The  Administrative  Agent  shall give each Bank  prompt
notice of each  nonpayment  of principal of or interest on the Loans  whether or
not it has  received  any  notice  of the  occurrence  of such  nonpayment.  The
Administrative  Agent shall (subject to Section 9.06) take such action hereunder
with  respect to such  Default or Event of Default as shall be  directed  by the
Required Banks,  provided that, unless and until the Administrative  Agent shall
have received such directions,  the  Administrative  Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect
to such  Default  or Event of Default  as it shall  deem  advisable  in the best
interests of the Banks.

     SECTION 7.04. Rights of Administrative Agent and its Affiliates as a Bank
                   -----------------------------------------------------------

     With  respect  to the  Loans  made  by the  Administrative  Agent  and  any
Affiliate  of the  Administrative  Agent,  Wachovia  in its  capacity  as a Bank
hereunder and any Affiliate of the Administrative Agent or such Affiliate in its
capacity as a Bank hereunder shall have the same rights and powers  hereunder as
any other Bank and may exercise the same as though  Wachovia  were not acting as
the  Administrative  Agent,  and the term  "Bank" or "Banks"  shall,  unless the
context otherwise indicates, include Wachovia in its individual capacity and any
Affiliate  of  the  Administrative  Agent  in  its  individual   capacity.   The
Administrative  Agent and any Affiliate of the Administrative Agent may (without
having to account  therefor to any Bank) accept deposits from, lend money to and
generally  engage  in any kind of  banking,  trust or  other  business  with the
Borrowers (and any of the Borrowers'  Affiliates) as if Wachovia were not acting
as the Administrative  Agent, and the Administrative  Agent and any Affiliate of
the  Administrative  Agent  may  accept  fees and other  consideration  from the
Borrowers (in addition to any agency fees and arrangement fees heretofore agreed
to  between  the  Borrowers  and  the  Administrative  Agent)  for  services  in
connection  with this Agreement or any other Loan Document or otherwise  without
having to account for the same to the Banks.

     SECTION 7.05. Indemnification
                   ---------------

     Each Bank severally  agrees to indemnify the  Administrative  Agent, to the
extent the Administrative Agent shall not have been reimbursed by the Borrowers,
ratably  in  accordance  with  its  Commitment,  for any  and  all  liabilities,
obligations,  losses,  damages,  penalties,  actions,  judgments,  suits, costs,
expenses  (including,  without  limitation,  counsel fees and  disbursements) or
disbursements  of any  kind and  nature  whatsoever  which  may be  imposed  on,
incurred by or asserted against the Administrative  Agent in any way relating to
or  arising  out of this  Agreement  or any  other  Loan  Document  or any other
documents  contemplated by or referred to herein or therein or the  transactions
contemplated  hereby  or  thereby  (excluding,  unless an Event of  Default  has
occurred  and is  continuing,  the  normal  administrative  costs  and  expenses
incident to the  performance of its agency duties  hereunder) or the enforcement
of any of the terms hereof or thereof or any such other documents; provided that
no Bank shall be liable for any of the  foregoing  to the extent they arise from
the gross negligence or willful misconduct of the  Administrative  Agent. If any
indemnity  furnished to the  Administrative  Agent for any purpose shall, in the
opinion of the  Administrative  Agent, be insufficient or become  impaired,  the
Administrative  Agent  may call  for  additional  indemnity  and  cease,  or not
commence,  to do the acts indemnified against until such additional indemnity is
furnished.

     SECTION 7.06. Consequential Damages
                   ---------------------

     THE  ADMINISTRATIVE  AGENT SHALL NOT BE  RESPONSIBLE OR LIABLE TO ANY BANK,
THE  BORROWERS  OR ANY OTHER  PERSON OR ENTITY FOR ANY  PUNITIVE,  EXEMPLARY  OR
CONSEQUENTIAL  DAMAGES WHICH MAY BE ALLEGED AS A RESULT OF THIS  AGREEMENT,  THE
OTHER LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

<PAGE>

     SECTION 7.07. Payee of Note Treated as Owner
                   ------------------------------

     The  Administrative  Agent  may deem and treat the payee of any Note as the
owner thereof for all purposes  hereof unless and until a written  notice of the
assignment  or transfer  thereof  shall have been filed with the  Administrative
Agent and the provisions of Section 9.08(c) have been  satisfied.  Any requests,
authority  or consent of any  Person who at the time of making  such  request or
giving such  authority or consent is the holder of any Note shall be  conclusive
and binding on any subsequent holder,  transferee or assignee of that Note or of
any Note or Notes issued in exchange therefor or replacement thereof.

     SECTION 7.08. Nonreliance on Administrative Agent and Other Banks
                   ---------------------------------------------------

     Each Bank agrees  that it has,  independently  and without  reliance on the
Administrative  Agent  or any  other  Bank,  and  based  on such  documents  and
information as it has deemed  appropriate,  made its own credit  analysis of the
Borrowers  and  decision  to  enter  into  this  Agreement  and  that  it  will,
independently  and without reliance upon the  Administrative  Agent or any other
Bank, and based on such documents and  information as it shall deem  appropriate
at the time,  continue to make its own analysis  and  decisions in taking or not
taking  action  under this  Agreement  or any of the other Loan  Documents.  The
Administrative Agent shall not be required to keep itself (or any Bank) informed
as to the performance or observance by the Borrowers of this Agreement or any of
the other Loan  Documents  or any other  document  referred to or  provided  for
herein or therein or to inspect the  properties or books of the Borrowers or any
other Person.  Except for notices,  reports and other  documents and information
expressly  required to be  furnished  to the Banks by the  Administrative  Agent
hereunder or under the other Loan Documents,  the Administrative Agent shall not
have any duty or  responsibility  to  provide  any Bank with any credit or other
information  concerning  the  affairs,  financial  condition  or business of the
Borrowers or any other Person (or any of their  Affiliates)  which may come into
the possession of the Administrative  Agent;  provided,  that the Administrative
Agent shall make  available  to any Bank,  upon its  request,  (i) copies of the
Administrative  Agent's records with respect to all sums received or expended by
the  Administrative  Agent in connection  with the Loans and the Loan Documents,
(ii)  information  as to the  amount of the then  outstanding  Loans,  and (iii)
copies of any  documents  pertaining to an Eligible  Property  requested by such
Bank and held by the Administrative Agent pursuant to Section 5.24(b).

     SECTION 7.09. Failure to Act
                   --------------

     Except for action expressly required of the Administrative  Agent hereunder
or under the other Loan Documents,  the Administrative  Agent shall in all cases
be fully justified in failing or refusing to act hereunder and thereunder unless
it shall receive  further  assurances to its  satisfaction by the Banks of their
indemnification obligations under Section 7.05 against any and all liability and
expense which may be incurred by the  Administrative  Agent by reason of taking,
continuing to take, or failing to take any such action.

     SECTION 7.10. Resignation or Removal of Administrative Agent
                   ----------------------------------------------

     Subject to the  appointment  and  acceptance of a successor  Administrative
Agent as  provided  below,  the  Administrative  Agent may resign at any time by
giving  notice  thereof to the Banks and the  Borrowers  and the  Administrative
Agent may be removed at any time with or without  cause by the  Required  Banks.
Upon any such resignation or removal, the Required Banks shall have the right to
appoint  a  successor  Administrative  Agent,  subject  to the  approval  of the
Borrowers,  which  approval  shall  not be  unreasonably  withheld  or  delayed;
provided,  however,  that no such approval of the Borrowers shall be required if
(i)  the  successor  is a Bank or (ii) a  Default  or  Event  of  Default  is in
existence. If no successor  Administrative Agent shall have been so appointed by
the Required Banks and shall have accepted such appointment within 30 days after
the retiring Administrative Agent's notice of resignation or the Required Banks'
removal of the retiring  Administrative Agent, then the retiring  Administrative
Agent may,  on behalf of the Banks,  appoint a successor  Administrative  Agent,
subject  to  the  approval  of  the  Borrowers,  which  approval  shall  not  be
unreasonably  withheld or delayed;  provided,  however, that no such approval of
the Borrowers shall be required if (i) the successor is a Bank or (ii) a Default
or Event of Default is in existence. Any successor Administrative Agent shall be
a bank which has a combined capital and surplus of at least  $500,000,000.  Upon
the  acceptance  of any  appointment  as  Administrative  Agent  hereunder  by a
successor  Administrative  Agent,  such  successor  Administrative  Agent  shall
thereupon succeed to and become vested with all the rights,  powers,  privileges
and duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations  hereunder.  After any
retiring   Administrative   Agent's   resignation   or  removal   hereunder   as
Administrative  Agent,  the  provisions  of this  Article VII shall  continue in
effect for its benefit in respect of any actions taken or omitted to be taken by
it while it was acting as the Administrative Agent hereunder.
<PAGE>

     SECTION 7.11. Administrative Agent's Right to Replace Non-Qualifying Bank
                   -----------------------------------------------------------

     In the event that any Bank (a  "Non-Qualifying  Bank")  shall at the end of
any  quarter  not  qualify as a  "well-capitalized"  bank  (within  the  meaning
provided  therefor in 12 CFR Section 6, as amended  from time to time) under the
regulations or policies of the  Comptroller  of the Currency,  or the sum of its
non-performing  assets and its "Other Real Estate  Owned" shall be equal to more
than fifty percent (50%) of its tangible equity,  the  Administrative  Agent, in
its sole  discretion,  may give  notice to such  Non-Qualifying  Bank and to the
other Banks,  with a copy to the Borrowers (the "Replacement  Notice"),  that it
wishes to seek one or more assignees  (which may be one or more of the Banks) to
assume  the  Commitment  of  such   Non-Qualifying  Bank  and  to  purchase  its
outstanding  Loans and Notes and interest in this Agreement,  and in such event:
(i) the remaining Banks may elect to purchase ratable  assignments  (without any
obligation so to do) from the Non-Qualifying  Bank (in the form of an Assignment
and Acceptance and in accordance with Section  9.08(c)) in accordance with their
respective percentage of the remaining aggregate  Commitments,  by giving notice
of such election to the Administrative Agent and the other Banks, with a copy to
the  Borrowers,  no later than the date (the "Initial  Option Date") which is 15
days after the date of the Replacement  Notice; (ii) should any of the remaining
Banks  not  elect on or before  the  Initial  Option  Date to  purchase  such an
assignment,  then,  such other  remaining Banks shall be entitled to purchase an
assignment from Non-Qualifying Bank which includes the ratable interest that was
otherwise  available to such  non-purchasing  remaining Bank or Banks, by giving
notice of such election to the Administrative  Agent and the other Banks, with a
copy to the  Borrowers,  within 15 days after the Initial Option Date; and (iii)
if and to the extent that the remaining  Banks have not elected to purchase such
an assignment,  the  Administrative  Agent may find another assignee to purchase
such assignment. Each Non-Qualifying Bank agrees to sell its Commitment,  Loans,
Notes  and  interest  in this  Agreement  by an  Assignment  and  Acceptance  in
accordance  with Section 9.08(c) to any such assignee or assignees for an amount
equal to the sum of the outstanding  unpaid principal of and accrued interest on
such  Loans and  Notes,  plus all other  fees and  amounts  (including,  without
limitation,  any compensation  claimed by such Non-Qualifying Bank under Section
2.12(c) or this Section 7.11) due such Non-Qualifying Bank hereunder calculated,
in each case,  to the date such Loans,  Notes and interest are  purchased.  Upon
such sale or  prepayment,  and  assumption  by the  assignee or assignees of the
Non-Qualifying Bank's Commitment, such Non-Qualifying Bank shall have no further
Commitment or other obligation to the Borrowers hereunder or under any Note.
<PAGE>

                                  ARTICLE VIII

                      CHANGE IN CIRCUMSTANCES; COMPENSATION

     SECTION 8.01. Basis for Determining Interest Rate Inadequate or Unfair
                   --------------------------------------------------------

     If on or prior to the first day of any Interest Period:

     (a) the  Administrative  Agent  determines that deposits in Dollars (in the
applicable  amounts)  are not being  offered  in the  relevant  market  for such
Interest Period, or

     (b) the  Required  Banks  advise the  Administrative  Agent that the London
Interbank  Offered Rate, as determined  by the  Administrative  Agent,  will not
adequately  and fairly  reflect the cost to such Banks of funding  the  relevant
Euro-Dollar Rate Loans for such Interest Period,

the  Administrative  Agent shall  forthwith give notice thereof to the Borrowers
and the Banks,  whereupon until the Administrative  Agent notifies the Borrowers
that the  circumstances  giving rise to such  suspension  no longer  exist,  the
obligations  of the Banks to make  Euro-Dollar  Loans  specified  in such notice
shall be suspended.  Unless the  Borrowers  notify the  Administrative  Agent at
least 2 Domestic Business Days before the date of any Euro-Dollar  Borrowing for
which a Notice of  Borrowing  has  previously  been  given that it elects not to
borrow  on such  date,  such  Borrowing  shall  instead  be made as a Base  Rate
Borrowing.

     SECTION 8.02. Illegality
                   ----------

     If, after the date  hereof,  the adoption of any  applicable  law,  rule or
regulation,  or any  change  therein  or any  existing  or future  law,  rule or
regulation, or any change in the interpretation or administration thereof by any
governmental  authority,  central  bank or  comparable  agency  charged with the
interpretation or  administration  thereof (any such agency being referred to as
an "Authority"  and any such event being  referred to as a "Change of Law"),  or
compliance  by any Bank (or its Lending  Office)  with any request or  directive
(whether or not having the force of law) of any Authority shall make it unlawful
or impossible for any Bank (or its Lending Office) to make, maintain or fund its
Euro-Dollar  Loans and such Bank shall so notify the  Administrative  Agent, the
Administrative  Agent shall forthwith give notice thereof to the other Banks and
the  Borrowers,  whereupon  until  such  Bank  notifies  the  Borrowers  and the
Administrative  Agent that the  circumstances  giving rise to such suspension no
longer exist,  the  obligation of such Bank to make  Euro-Dollar  Loans shall be
suspended. Before giving any notice to the Administrative Agent pursuant to this
Section,   such  Bank  shall  designate  a  different  Lending  Office  if  such
designation  will avoid the need for  giving  such  notice and will not,  in the
judgment of such Bank, be otherwise  disadvantageous  to such Bank. If such Bank
shall  determine  that it may not lawfully  continue to maintain and fund any of
its  outstanding  Euro-Dollar  Loans to  maturity  and shall so  specify in such
notice,  the Borrowers  shall  immediately  prepay in full the then  outstanding
principal amount of each  Euro-Dollar  Loan of such Bank,  together with accrued
interest  thereon  and any amount  due such Bank  pursuant  to Section  8.05(a).
Concurrently  with prepaying  each such  Euro-Dollar  Loan, the Borrowers  shall
borrow a Base Rate Loan in an equal  principal  amount  from such Bank (on which
interest  and  principal  shall be payable  contemporaneously  with the  related
Euro-Dollar Loans of the other Banks), and such Bank shall make such a Base Rate
Loan.

<PAGE>

     SECTION 8.03. Increased Cost and Reduced Return
                   ---------------------------------

     (a) If after the date hereof, a Change of Law or compliance by any Bank (or
its Lending  Office)  with any request or  directive  (whether or not having the
force of law) of any Authority:

          (i) shall  impose,  modify or deem  applicable  any  reserve,  special
     deposit or similar requirement  (including,  without  limitation,  any such
     requirement  imposed  by the  Board of  Governors  of the  Federal  Reserve
     System,  but  excluding  with  respect  to any  Euro-Dollar  Loan  any such
     requirement  included  in an  applicable  Euro-Dollar  Reserve  Percentage)
     against assets of,  deposits with or for the account of, or credit extended
     by, any Bank (or its Lending Office); or

          (ii) shall impose on any Bank (or its Lending Office) or on the United
     States market for  certificates of deposit or the London  interbank  market
     any other  condition  affecting  its  Fixed  Rate  Loans,  its Notes or its
     obligation to make Fixed Rate Loans;

and the result of any of the  foregoing is to increase the cost to such Bank (or
its Lending  Office) of making or maintaining  any Loan, or to reduce the amount
of any sum received or  receivable  by such Bank (or its Lending  Office)  under
this Agreement or under its Notes with respect  thereto,  by an amount deemed by
such Bank to be material, then, within 15 days after demand by such Bank (with a
copy to the  Administrative  Agent),  the Borrowers  shall pay to such Bank such
additional  amount or amounts as will  compensate  such Bank for such  increased
cost or reduction.

     (b) If any Bank  shall  have  determined  that  after the date  hereof  the
adoption of any applicable law, rule or regulation  regarding  capital adequacy,
or any change therein,  or any change in the  interpretation  or  administration
thereof,  or compliance by any Bank (or its Lending  Office) with any request or
directive regarding capital adequacy (whether or not having the force of law) of
any  Authority,  has or would have the effect of reducing  the rate of return on
such Bank's  capital as a consequence  of its  obligations  hereunder to a level
below that which such Bank could have achieved but for such adoption,  change or
compliance  (taking  into  consideration  such Bank's  policies  with respect to
capital  adequacy) by an amount  deemed by such Bank to be  material,  then from
time to time,  within 15 days after demand by such Bank, the Borrowers shall pay
to such Bank such additional  amount or amounts as will compensate such Bank for
such reduction.

     (c) Each Bank will promptly  notify the  Borrowers  and the  Administrative
Agent of any event of which it has knowledge,  occurring  after the date hereof,
which will entitle such Bank to  compensation  pursuant to this Section and will
designate a different  Lending  Office if such  designation  will avoid the need
for, or reduce the amount of, such compensation and will not, in the judgment of
such Bank, be otherwise  disadvantageous to such Bank. A certificate of any Bank
claiming compensation under this Section and setting forth the additional amount
or amounts to be paid to it  hereunder  shall be  conclusive  in the  absence of
manifest  error.  In determining  such amount,  such Bank may use any reasonable
averaging and attribution methods.

     (d) The provisions of this Section 8.03 shall be applicable with respect to
any Participant,  Assignee or other Transferee, and any calculations required by
such provisions shall be made based upon the  circumstances of such Participant,
Assignee or other  Transferee.

     SECTION 8.04. Base Rate Loans Substituted for Affected Euro-Dollar Loans.

     If (i) the obligation of any Bank to make or maintain any Euro-Dollar Loans
has been  suspended  pursuant  to  Section  8.02 or (ii)  any Bank has  demanded
compensation  under  Section  8.03,  and  the  Borrowers  shall,  by at  least 5
Euro-Dollar Business Days' prior notice to such Bank, through the Administrative
Agent,  have elected  that the  provisions  of this Section  shall apply to such
Bank,  then,  unless  and  until  such  Bank  notifies  the  Borrowers  that the
circumstances  giving  rise to such  suspension  or demand for  compensation  no
longer apply:

     (a) all Loans which  would  otherwise  be made by such Bank as  Euro-Dollar
Loans shall be made instead as Base Rate Loans,  and  interest and  principal on
such Loans shall be payable contemporaneously with the related Euro-Dollar Loans
of the other Banks, and

     (b) after each of its  Euro-Dollar  Loans has been repaid,  all payments of
principal which would otherwise be applied to repay such Euro-Dollar Loans shall
be applied to repay its Base Rate Loans instead.

<PAGE>

     SECTION 8.05. Compensation
                   ------------

     Upon  the  request  of  any  Bank,  delivered  to  the  Borrowers  and  the
Administrative  Agent,  the  Borrowers  shall pay to such  Bank  such  amount or
amounts as shall  compensate such Bank for any loss, cost or expense incurred by
such Bank as a result of:

     (a) any payment or prepayment  (pursuant to Section 2.10,  2.11, 6.01, 8.02
or  otherwise)  of a Fixed  Rate  Loan on a date  other  than the last day of an
Interest Period for such Loan; or

     (b) any failure by the Borrowers to prepay a  Euro-Dollar  Loan on the date
for such prepayment specified in the relevant notice of prepayment hereunder; or

     (c) any  failure by the  Borrowers  to borrow a Fixed Rate Loan on the date
for the Fixed Rate  Borrowing of which such Fixed Rate Loan is a part  specified
in the  applicable  Notice of  Borrowing  delivered  pursuant to Section 2.02 or
notification of acceptance of Money Market Quotes  pursuant to Section  2.03(e);

such compensation to include,  without limitation,  if such Fixed Rate Loan is a
Euro-Dollar  Loan,  an amount equal to the excess,  if any, of (x) the amount of
interest  which  would  have  accrued  on the  amount so paid or  prepaid or not
prepaid or borrowed for the period from the date of such payment,  prepayment or
failure to prepay or borrow to the last day of the then current  Interest Period
for such Fixed Rate Loan (or, in the case of a failure to prepay or borrow,  the
Interest  Period for such Fixed Rate Loan which would have commenced on the date
of such failure to prepay or borrow) at the applicable rate of interest for such
Fixed  Rate  Loan  provided  for  herein  over (y) the  amount of  interest  (as
reasonably  determined  by such Bank) such Bank would have paid on  deposits  in
Dollars of comparable amounts having terms comparable to such period placed with
it by leading banks in the London interbank market.

<PAGE>

                                   ARTICLE IX

                                  MISCELLANEOUS

     SECTION 9.01. Notices
                   -------

     All notices, requests and other communications to any party hereunder shall
be in writing  (including  telecopier or similar  writing) and shall be given to
such party at its address or telecopier  number set forth on the signature pages
hereof or such other  address or  telecopier  number as such party may hereafter
specify for the purpose by notice to each other party. Each such notice, request
or other communication shall be effective (i) if given by telecopier,  when such
telecopy is transmitted to the telecopier  number  specified in this Section and
the  confirmation  is  received,  (ii) if  given by mail,  72 hours  after  such
communication  is  deposited  in the mails with  first  class  postage  prepaid,
addressed as aforesaid or (iii) if given by any other means,  when  delivered at
the  address   specified  in  this   Section;   provided  that  notices  to  the
Administrative Agent under Article II or Article IX shall not be effective until
received.

     SECTION 9.02. No Waivers
                   ----------

     No failure or delay by the  Administrative  Agent or any Bank in exercising
any right, power or privilege hereunder or under any Note or other Loan Document
shall  operate as a waiver  thereof  nor shall any  single or  partial  exercise
thereof  preclude any other or further  exercise  thereof or the exercise of any
other right,  power or privilege.  The rights and remedies herein provided shall
be cumulative and not exclusive of any rights or remedies provided by law.

     SECTION 9.03. Expenses; Documentary Taxes
                   ---------------------------

     The   Borrowers   shall  pay  (i)  all   out-of-pocket   expenses   of  the
Administrative  Agent,  including fees and disbursements of Jones, Day, Reavis &
Pogue, special counsel for the Banks and the Administrative Agent, in connection
with the preparation of this Agreement and the other Loan Documents,  any waiver
or consent  hereunder or thereunder  or any  amendment  hereof or thereof or any
Default or alleged  Default  hereunder or thereunder,  (ii) legal fees up to but
not in excess of $10,000,  plus  expenses,  incurred by each Bank in  connection
with the preparation of this Agreement and the other Loan Documents and (iii) if
a Default occurs,  all  out-of-pocket  expenses  incurred by the  Administrative
Agent and the Banks,  including fees and disbursements of counsel, in connection
with such Default and collection  and other  enforcement  proceedings  resulting
therefrom, including out-of-pocket expenses incurred in enforcing this Agreement
and the other Loan Documents.  The Borrowers shall indemnify the  Administrative
Agent and each Bank against any transfer taxes,  documentary taxes,  assessments
or charges made by any Authority by reason of the execution and delivery of this
Agreement or the other Loan  Documents.  The provisions of this Section 9.03 are
in  addition  to  and  not  in  limitation  of  any  expense   reimbursement  or
indemnification provision contained in any other Loan Documents.

     SECTION 9.04. Indemnification
                   ---------------

     The Borrowers shall indemnify the Administrative  Agent, the Banks and each
Affiliate thereof and their respective directors, officers, employees and agents
from, and hold each of them harmless against,  any and all losses,  liabilities,
claims or  damages  to which any of them may  become  subject,  insofar  as such
losses, liabilities, claims or damages arise out of or result from any actual or
proposed use by the  Borrowers of the proceeds of any extension of credit by any
Bank  hereunder or breach by the  Borrowers of this  Agreement or any other Loan
Document or from any investigation,  litigation (including,  without limitation,
any  actions  taken by the  Administrative  Agent or any of the Banks to enforce
this  Agreement  or  any  of the  other  Loan  Documents)  or  other  proceeding
(including,  without  limitation,  any threatened  investigation  or proceeding)
relating to the foregoing,  and the Borrowers shall reimburse the Administrative
Agent and each Bank, and each Affiliate thereof and their respective  directors,
officers, employees and agents, upon demand for any expenses (including, without
limitation,  legal fees) incurred in connection with any such  investigation  or
proceeding;  but  excluding  any such losses,  liabilities,  claims,  damages or
expenses incurred by reason of the gross negligence or willful misconduct of the
Person to be indemnified. The provisions of this Section 9.04 are in addition to
and not in limitation of any expense reimbursement or indemnification  provision
contained in any other Loan Documents.

<PAGE>

     SECTION 9.05. Sharing of Setoffs
                   ------------------

     Each Bank agrees  that if it shall,  by  exercising  any right of setoff or
counterclaim or resort to collateral security or otherwise, receive payment of a
proportion of the aggregate  amount of principal and interest owing with respect
to the Note held by it which is  greater  than the  proportion  received  by any
other Bank in respect of the  aggregate  amount of all  principal  and  interest
owing with respect to the Note held by such other Bank,  the Bank receiving such
proportionately  greater payment shall purchase such participations in the Notes
held by the other Banks owing to such other  Banks,  and such other  adjustments
shall be made,  as may be required so that all such  payments of  principal  and
interest  with  respect to the Notes held by the Banks owing to such other Banks
shall be shared by the Banks pro rata; provided that (i) nothing in this Section
shall  impair  the  right  of any  Bank to  exercise  any  right  of  setoff  or
counterclaim it may have and to apply the amount subject to such exercise to the
payment of indebtedness of the Borrowers other than its  indebtedness  under the
Notes, and (ii) if all or any portion of such payment received by the purchasing
Bank is thereafter  recovered from such purchasing Bank, such purchase from each
other Bank shall be rescinded and such other Bank shall repay to the  purchasing
Bank the purchase  price of such  participation  to the extent of such  recovery
together with an amount equal to such other Bank's  ratable share  (according to
the proportion of (x) the amount of such other Bank's required  repayment to (y)
the total amount so recovered from the purchasing Bank) of any interest or other
amount paid or payable by the purchasing  Bank in respect of the total amount so
recovered.  Each  of  the  Borrowers  agrees,  to  the  fullest  extent  it  may
effectively do so under  applicable law, that any holder of a participation in a
Note,  whether or not  acquired  pursuant  to the  foregoing  arrangements,  may
exercise rights of setoff or counterclaim  and other rights with respect to such
participation  as  fully  as if such  holder  of a  participation  were a direct
creditor of the Borrowers in the amount of such participation.

     SECTION 9.06. Amendments and Waivers
                   ----------------------

     (a) Any provision of this Agreement,  the Notes or any other Loan Documents
may be amended or waived if, but only if, such amendment or waiver is in writing
and is signed by the  Borrowers  and the Required  Banks (and,  if the rights or
duties of the Administrative  Agent are affected thereby,  by the Administrative
Agent);  provided that no such  amendment or waiver shall,  unless signed by all
Banks,  (i)  change  the  Commitment  of any  Bank or  subject  any  Bank to any
additional  obligation,  (ii) change the principal of or rate of interest on any
Loan  or  any  fees  (other  than  fees  payable  to the  Administrative  Agent)
hereunder,  (iii)  change the date  fixed for any  payment  of  principal  of or
interest on any Loan or any fees hereunder, (iv) change the amount of principal,
interest or fees due on any date fixed for the payment  thereof,  (v) change the
percentage of the Commitments or of the aggregate unpaid principal amount of the
Notes, or the percentage of Banks,  which shall be required for the Banks or any
of them to take any action  under this  Section or any other  provision  of this
Agreement, (vi) change the manner of application of any payments made under this
Agreement or the Notes,  (vii) release or substitute all or any substantial part
of the collateral  (if any) held as security for the Loans,  except as expressly
authorized by this Agreement or any of the other Loan Documents,  (viii) release
any Guarantee given to support payment of the Loans,  (ix) change the definition
of Borrowing Base in a such a way as to make it less restrictive, (x) change the
definition of Required Banks or (xi) change this Section 9.06.

     (b) The  Borrowers  will not  solicit,  request  or  negotiate  for or with
respect to any proposed  waiver or amendment  of any of the  provisions  of this
Agreement  unless each Bank shall be informed thereof by the Borrowers and shall
be afforded an opportunity of considering  the same and shall be supplied by the
Borrowers with sufficient  information to enable it to make an informed decision
with  respect  thereto.  Executed  or true and  correct  copies of any waiver or
consent effected pursuant to the provisions of this Agreement shall be delivered
by the  Borrowers to each Bank  forthwith  following  the date on which the same
shall have been executed and delivered by the requisite percentage of Banks. The
Borrowers  will  not,  directly  or  indirectly,  pay or  cause  to be paid  any
remuneration,  whether by way of  supplemental  or additional  interest,  fee or
otherwise,  to any Bank (in its capacity as such) as consideration  for or as an
inducement  to the entering  into by such Bank of any waiver or amendment of any
of the terms and  provisions  of this  Agreement  unless  such  remuneration  is
concurrently paid, on the same terms, ratably to all such Banks.

<PAGE>

     SECTION 9.07. No Margin Stock Collateral
                   --------------------------

     Each of the Banks  represents to the  Administrative  Agent and each of the
other Banks that it in good faith is not,  directly or  indirectly  (by negative
pledge  or  otherwise),  relying  upon any  Margin  Stock as  collateral  in the
extension or maintenance of the credit provided for in this Agreement.

     SECTION 9.08. Successors and Assigns
                   ----------------------

     (a) The provisions of this Agreement shall be binding upon and inure to the
benefit of the  parties  hereto and their  respective  successors  and  assigns;
provided that the  Borrowers  may not assign or otherwise  transfer any of their
respective rights under this Agreement.

     (b)  Any  Bank  may at  any  time  sell  to one or  more  Persons  (each  a
"Participant")  participating interests in any Loan owing to such Bank, any Note
held by such Bank, any  Commitment  hereunder or any other interest of such Bank
hereunder.  In the event of any such sale by a Bank of a participating  interest
to a Participant,  such Bank's  obligations  under this  Agreement  shall remain
unchanged,  such  Bank  shall  remain  solely  responsible  for the  performance
thereof,  such Bank shall  remain  the holder of any such Note for all  purposes
under this  Agreement,  and the  Borrowers  and the  Administrative  Agent shall
continue  to deal solely and  directly  with such Bank in  connection  with such
Bank's rights and  obligations  under this  Agreement.  In no event shall a Bank
that sells a  participation  be obligated to the  Participant to take or refrain
from  taking any action  hereunder  except that such Bank may agree that it will
not (except as provided below), without the consent of the Participant, agree to
(i) the change of any date fixed for the payment of  principal of or interest on
the  related  Loan or loans,  (ii) the  change of the  amount of any  principal,
interest or fees due on any date fixed for the payment  thereof  with respect to
the related Loan or loans, (iii) the change of the principal of the related Loan
or  loans,  (iv) any  change in the rate at which  either  interest  is  payable
thereon or (if the  Participant  is entitled to any part thereof) fee is payable
hereunder from the rate at which the Participant is entitled to receive interest
or fee (as the case may be) in respect of such participation, (v) the release or
substitution of all or any  substantial  part of the collateral (if any) held as
security for the Loans,  or (vi) the release of any  Guarantee  given to support
payment of the Loans.  Each Bank selling a  participating  interest in any Loan,
Note,  Commitment or other interest under this Agreement (other than solely with
respect to a Money  Market Loan or Money Market Note or  participating  interest
therein)  shall,  within 10  Domestic  Business  Days of such sale,  provide the
Borrowers and the Administrative  Agent with written  notification  stating that
such  sale  has  occurred  and  identifying  the  Participant  and the  interest
purchased by such  Participant.  The Borrowers agree that each Participant shall
be entitled to the benefits of Article IX with respect to its  participation  in
Loans  outstanding from time to time.

     (c) Any Bank  may at any  time  assign  to one or more  banks or  financial
institutions  (each an "Assignee") all or a proportionate part of its rights and
obligations  under this Agreement,  the Notes and the other Loan Documents,  and
such  Assignee  shall  assume all such  rights and  obligations,  pursuant to an
Assignment and Acceptance,  executed by such Assignee,  such transferor Bank and
the  Administrative  Agent (and,  in the case of an Assignee  that is not then a
Bank,  subject to clause (iii) below,  by the  Borrowers);  provided that (i) no
interest  may be sold  by a Bank  pursuant  to this  paragraph  (c)  unless  the
Assignee  shall agree to assume  ratably  equivalent  portions of the transferor
Bank's Commitment, (ii) if a Bank is assigning only a portion of its Commitment,
then,  the  amount  of  the  Commitment  being  assigned  (determined  as of the
effective  date  of  the  assignment)  shall  be  in an  amount  not  less  than
$5,000,000, (iii) except during the continuance of a Default, no interest may be
sold by a Bank  pursuant to this  paragraph to any  Assignee  that is not then a
Bank (or an Affiliate of a Bank)  without the consent of the  Borrowers  and the
Administrative Agent, which consent shall not be unreasonably withheld, and (iv)
a Bank may not have more  than 2  Assignees  that are not then  Banks at any one
time.  Upon (A) execution of the Assignment  and  Acceptance by such  transferor
Bank, such Assignee, the Administrative Agent and (if applicable) the Borrowers,
(B)  delivery  of an  executed  copy of the  Assignment  and  Acceptance  to the
Borrowers  and the  Administrative  Agent,  (C) payment by such Assignee to such
transferor  Bank of an amount  equal to the purchase  price agreed  between such
transferor  Bank  and  such  Assignee,  and  (D)  payment  of a  processing  and
recordation fee of $2,500 to the  Administrative  Agent, such Assignee shall for
all purposes be a Bank party to this Agreement and shall have all the rights and
obligations  of a Bank under this  Agreement to the same extent as if it were an
original  party  hereto with a  Commitment  as set forth in such  instrument  of
assumption,  and the  transferor  Bank shall be  released  from its  obligations
hereunder to a  corresponding  extent,  and no further  consent or action by the
Borrowers,  the Banks or the  Administrative  Agent shall be required.  Upon the
consummation of any transfer to an Assignee  pursuant to this paragraph (c), the
transferor  Bank,  the  Administrative   Agent  and  the  Borrowers  shall  make
appropriate  arrangements so that, if required,  a new Note is issued to each of
such Assignee and such transferor Bank.
<PAGE>

     (d) Subject to the provisions of Section 9.09, the Borrowers authorize each
Bank to  disclose  to any  Participant,  Assignee  or other  transferee  (each a
"Transferee") and any prospective  Transferee any and all financial  information
in such Bank's  possession  concerning the Borrowers which has been delivered to
such  Bank by the  Borrowers  pursuant  to this  Agreement  or  which  has  been
delivered to such Bank by the  Borrowers in  connection  with such Bank's credit
evaluation prior to entering into this Agreement.

     (e) No  Transferee  shall be entitled to receive any greater  payment under
Section 8.03 than the  transferor  Bank would have been entitled to receive with
respect  to the  rights  transferred,  unless  such  transfer  is made  with the
Borrowers'  prior written consent or by reason of the provisions of Section 8.02
or 8.03  requiring  such Bank to  designate a  different  Lending  Office  under
certain  circumstances or at a time when the  circumstances  giving rise to such
greater payment did not exist.

     (f) Anything in this Section 9.08 to the contrary notwithstanding, any Bank
may assign and pledge all or any portion of the Loans and/or  obligations  owing
to it to any Federal  Reserve Bank or the United  States  Treasury as collateral
security  pursuant  to  Regulation  A of the Board of  Governors  of the Federal
Reserve System and any Operating  Circular  issued by such Federal Reserve Bank,
provided that any payment in respect of such assigned  Loans and/or  obligations
made by the Borrowers to the assigning  and/or  pledging Bank in accordance with
the terms of this Agreement shall satisfy the Borrowers'  obligations  hereunder
in respect  of such  assigned  Loans  and/or  obligations  to the extent of such
payment.  No such  assignment  shall release the assigning  and/or pledging Bank
from its obligations hereunder.

     SECTION 9.09. Confidentiality
                   ---------------

     Each Bank agrees to exercise  commercially  reasonable  efforts to keep any
information  delivered or made available by the Borrowers to it which is clearly
indicated to be confidential  information,  confidential  from anyone other than
persons  employed  or  retained  by such Bank who are or are  expected to become
engaged  in  evaluating,  approving,  structuring  or  administering  the Loans;
provided  that  nothing  herein  shall  prevent  any Bank from  disclosing  such
information  (i) to any  other  Bank,  (ii)  upon  the  order  of any  court  or
administrative agency, (iii) upon the request or demand of any regulatory agency
or authority  having  jurisdiction  over such Bank, (iv) which has been publicly
disclosed,  (v) to  the  extent  reasonably  required  in  connection  with  any
litigation  to which  the  Administrative  Agent,  any Bank or their  respective
Affiliates may be a party, (vi) to the extent reasonably  required in connection
with the exercise of any remedy  hereunder,  (vii) to such Bank's legal  counsel
and  independent  auditors  and  (viii) to any actual or  proposed  Participant,
Assignee or other  Transferee of all or part of its rights  hereunder  which has
agreed in writing to be bound by the  provisions of this Section 9.09;  provided
that  should  disclosure  of any such  confidential  information  be required by
virtue of clause (ii) of the immediately  preceding sentence,  any relevant Bank
shall, to the extent permitted by law,  promptly notify the Borrowers of same so
as to allow  the  Borrowers  to seek a  protective  order  or to take any  other
appropriate action; provided,  further, that, no Bank shall be required to delay
compliance  with any directive to disclose any such  information  so as to allow
the Borrowers to effect any such action.

     SECTION 9.10. Representation by Banks
                   -----------------------

     Each Bank hereby  represents  that it is a  commercial  lender or financial
institution which makes loans in the ordinary course of its business and that it
will make its Loans hereunder for its own account in the ordinary course of such
business; provided that, subject to Section 9.08, the disposition of the Note or
Notes held by that Bank shall at all times be within its exclusive control.

     SECTION 9.11. Obligations Several
                   -------------------

     The  obligations of each Bank  hereunder are several,  and no Bank shall be
responsible  for the  obligations  or  commitment  of any other Bank  hereunder.
Nothing  contained in this  Agreement and no action taken by the Banks  pursuant
hereto  shall  be  deemed  to  constitute  the  Banks  to be a  partnership,  an
association, a joint venture or any other kind of entity. The amounts payable at
any time  hereunder to each Bank shall be a separate and  independent  debt, and
each Bank shall be entitled  to protect  and  enforce its rights  arising out of
this  Agreement or any other Loan Document and it shall not be necessary for any
other  Bank to be  joined  as an  additional  party in any  proceeding  for such
purpose.

<PAGE>

     SECTION 9.12. Georgia Law
                   -----------

     This  Agreement  and each Note shall be  construed in  accordance  with and
governed by the law of the State of Georgia.

     SECTION 9.13. Severability
                   ------------

     In case any one or more of the provisions contained in this Agreement,  the
Notes  or any of  the  other  Loan  Documents  should  be  invalid,  illegal  or
unenforceable in any respect,  the validity,  legality and enforceability of the
remaining  provisions  contained  herein  and  therein  shall  not in any way be
affected or  impaired  thereby  and shall be  enforced  to the  greatest  extent
permitted by law.

     SECTION 9.14. Interest
                   --------

     In no event shall the amount of interest, and all charges,  amounts or fees
contracted for,  charged or collected  pursuant to this Agreement,  the Notes or
the  other  Loan  Documents  and  deemed to be  interest  under  applicable  law
(collectively,  "Interest")  exceed  the  highest  rate of  interest  allowed by
applicable  law (the  "Maximum  Rate"),  and in the  event any such  payment  is
inadvertently  received by any Bank, then the excess sum (the "Excess") shall be
credited as a payment of principal,  unless the Borrowers shall notify such Bank
in  writing  that they elect to have the Excess  returned  forthwith.  It is the
express  intent  hereof that the  Borrowers  not pay and the Banks not  receive,
directly  or  indirectly  in any manner  whatsoever,  interest in excess of that
which may legally be paid by the Borrowers  under  applicable  law. The right to
accelerate maturity of any of the Loans does not include the right to accelerate
any interest  that has not otherwise  accrued on the date of such  acceleration,
and the Administrative Agent and the Banks do not intend to collect any unearned
interest  in  the  event  of any  such  acceleration.  All  monies  paid  to the
Administrative  Agent or the  Banks  hereunder  or under any of the Notes or the
other Loan Documents,  whether at maturity or by prepayment, shall be subject to
rebate of unearned  interest as and to the extent required by applicable law. By
the execution of this Agreement,  the Borrowers covenant,  to the fullest extent
permitted by law,  that (i) the credit or return of any Excess shall  constitute
the acceptance by the Borrowers of such Excess, and (ii) the Borrowers shall not
seek or pursue any other remedy, legal or equitable , against the Administrative
Agent or any Bank,  based in whole or in part upon  contracting  for charging or
receiving  any  Interest  in excess of the  Maximum  Rate.  For the  purpose  of
determining  whether  or not any  Excess  has been  contracted  for,  charged or
received  by the  Administrative  Agent or any Bank,  all  interest  at any time
contracted  for,  charged or received from the Borrowers in connection with this
Agreement,  the Notes or any of the other Loan  Documents  shall,  to the extent
permitted by  applicable  law, be amortized,  prorated,  allocated and spread in
equal parts  throughout the full term of the  Commitments.  The  Borrowers,  the
Administrative  Agent and each Bank shall, to the maximum extent permitted under
applicable law, (i) characterize any non-principal payment as an expense, fee or
premium rather than as Interest and (ii) exclude  voluntary  prepayments and the
effects  thereof.  The  provisions  of  this  Section  shall  be  deemed  to  be
incorporated into each Note and each of the other Loan Documents (whether or not
any provision of this Section is referred to therein).  All such Loan  Documents
and  communications  relating  to any  Interest  owed by the  Borrowers  and all
figures set forth therein shall, for the sole purpose of computing the extent of
obligations  hereunder  and under the Notes  and the  other  Loan  Documents  be
automatically  recomputed by the  Borrowers,  and by any court  considering  the
same, to give effect to the adjustments or credits required by this Section.

     SECTION 9.15. Interpretation
                   --------------

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

<PAGE>

     SECTION 9.16. Waiver of Jury Trial; Consent to Jurisdiction
                   ---------------------------------------------

     The  Borrowers  (a) and  each of the  Banks  and the  Administrative  Agent
irrevocably waives, to the fullest extent permitted by law, any and all right to
trial by jury in any legal proceeding arising out of this Agreement,  any of the
other Loan Documents, or any of the transactions contemplated hereby or thereby,
(b) submits to the nonexclusive  personal  jurisdiction in the State of Georgia,
the courts thereof and the United States  District Courts sitting  therein,  for
the enforcement of this Agreement,  the Notes and the other Loan Documents,  (c)
waives any and all personal  rights under the law of any  jurisdiction to object
on  any  basis  (including,  without  limitation,  inconvenience  of  forum)  to
jurisdiction  or venue within the State of Georgia for the purpose of litigation
to enforce this Agreement, the Notes or the other Loan Documents, and (d) agrees
that service of process may be made upon it in the manner  prescribed in Section
9.01 for the  giving of  notice  to the  Borrowers.  Nothing  herein  contained,
however,  shall  prevent the  Administrative  Agent from  bringing any action or
exercising any rights against any security and against the Borrowers personally,
and against any assets of the Borrowers, within any other state or jurisdiction.

     SECTION 9.17. Counterparts
                   ------------

     This Agreement may be signed in any number of  counterparts,  each of which
shall be an  original,  with the same  effect as if the  signatures  thereto and
hereto were upon the same instrument.

     SECTION 9.18. Source of Funds - ERISA
                   -----------------------

     Each of the Banks  hereby  severally  (and not jointly)  represents  to the
Borrowers  that no part of the  funds to be used by such  Bank to fund the Loans
hereunder  from time to time  constitutes  (i) assets  allocated to any separate
account  maintained  by such Bank in which  any  employee  benefit  plan (or its
related  trust)  has any  interest  nor (ii) any other  assets  of any  employee
benefit  plan. As used in this Section,  the terms  "employee  benefit plan" and
"separate account" shall have the respective  meanings assigned to such terms in
Section 3 of ERISA.

     SECTION 9.19. Entire Agreement
                   ----------------

     The Loan  Documents  and, as between the Borrowers  and the  Administrative
Agent, the Administrative Agent's Letter Agreement, contain the entire agreement
between the Borrowers,  the  Administrative  Agent and the Banks relating to the
credit transactions contemplated hereby and supersede entirely any and all prior
written or oral  agreements  with  respect  thereto;  and each of the  Borrowers
acknowledges and agrees that there are no  contemporaneous  oral agreements with
respect to the subject matter hereof.

     SECTION 9.20. More Restrictive Agreements
                   ---------------------------

     Should the Borrowers or any Guarantor, while this Agreement is in effect or
any Note remains unpaid,  enter into, refinance or modify the relevant documents
pertaining to any existing or future Debt for money borrowed  which  constitutes
revolving credit,  in an amount exceeding  $5,000,000 in aggregate amount to any
lender or group of lenders  acting in concert  with one  another,  pursuant to a
Loan agreement,  credit agreement,  note purchase agreement,  indenture or other
similar   instrument,   which   instrument   includes   covenants,   warranties,
representations,  or  defaults  or  events  of  default  (or any  other  type of
restriction  which  would  have the  practical  effect of any of the  foregoing,
including,  without limitation,  any "put" or mandatory prepayment of such debt)
other than those set forth  herein or in any of the other  Loan  Documents,  the
Borrowers  shall  promptly  so  notify  the  Administrative  Agent  and,  if the
Administrative  Agent, in the discretion of the  Administrative  Agent, shall so
request by written notice to the Borrowers,  the Borrowers,  the  Administrative
Agent  and the  Required  Banks  (in their  sole  discretion  and based on their
respective  independent  credit  judgment,  and  subject to Section  9.06) shall
promptly  amend this Agreement to  incorporate  some or all of such  provisions,
into this Agreement and, to the extent necessary and reasonably desirable to the
Administrative  Agent and the Required Banks (in their sole discretion and based
on their respective  independent credit judgment,  and subject to Section 7.06),
into any of the other Loan Documents,  all at the election of the Administrative
Agent;  provided,  however,  that any such  amendment  shall provide that,  upon
cancellation  or  termination  of the Loan  agreement,  credit  agreement,  note
purchase  agreement,  indenture  or other  instrument  pertaining  to such other
revolving  credit (other than by reason of an event of default  thereunder),  so
long as no  Default or Event of Default is in  existence,  such  amendment  also
shall  terminate  and the  provisions of the Credit  Agreement  affected by such
amendment  shall revert to the terms thereof as in effect prior to giving effect
to such amendment.

<PAGE>

     IN WITNESS  WHEREOF,  the parties  hereto have caused this  Agreement to be
duly executed, under seal, by their respective authorized officers as of the day
and year first above written.

                            GABLES REALTY LIMITED PARTNERSHIP
                                                                      (SEAL)

                            By:  Gables GP, Inc., its sole general partner

                            By:  /s/ Marvin R. Banks Jr.
                                 -----------------------
                                 Marvin R. Banks, Jr.
                                 Senior Vice President

                            Gables Realty Limited Partnership
                            2859 Paces Ferry Road
                            Suite 1450
                            Atlanta, Georgia 30339
                            Attention: Marvin R. Banks, Jr.
                            Telecopier number: 770-438-5559
                            Confirmation number: 770-438-5501

                            GABLES-TENNESSEE PROPERTIES, L.L.C.

                            By: Gables Realty Limited Partnership, member

                            By: Gables GP, Inc.,
                                its general partner

                            By: /s/ Marvin R. Banks, Jr.
                                ------------------------
                                Marvin R. Banks, Jr.
                                Senior Vice President

                            Address:
                            Gables Realty Limited Partnership
                            2859 Paces Ferry Road
                            Suite 1450
                            Atlanta, Georgia 30339
                            Attention: Marvin R. Banks, Jr.
                            Telecopier number: 770-438-5559
                            Confirmation number: 770-438-5501

                            WACHOVIA BANK, N.A.,
                                                                      (SEAL)
                            as Administrative Agent and as a Bank
Commitment:

$40,000,000                 By: /s/ Steven R. Wood
                                ----------------------------
                                Title: Senior Vice President
Commitment Percentage:
                            Lending Office
17.7778%                    Wachovia Bank, N.A.
                            191 Peachtree Street, N.E.
                            Atlanta, Georgia 30303-1757
                            Attention: Real Estate Finance Division
                            Telecopier number: 404-332-4005
                            Confirmation number: 404-332-6971

                            FIRST UNION NATIONAL BANK,
                                                                      (SEAL)
                            as Syndication Agent and as a Bank
Commitment:

$40,000,000                 By: /s/ Daniel J. Sullivan
                                ----------------------
                                Daniel J. Sullivan
Commitment Percentage:          Managing Director

17.7778%                    Lending Office
                            First Union National Bank
                            One First Union Center
                            Charlotte, North Carolina 28288-0166
                            Attention:  Daniel J. Sullivan
                            Telecopier number: 704-383-6205
                            Confirmation number: 704-383-6441

<PAGE>
                            THE CHASE MANHATTAN BANK
                                                                      (SEAL)
                            (successor by merger to Chase Bank of Texas,
                            National Association),
Commitment:                 as Documentation Agent and as a Bank

$40,000,000
                            By: /s/ Susan M. Tate
                                ---------------------
Commitment Percentage:          Title: Vice President

17.7778%                    Lending Office
                            The Chase Manhattan Bank
                            707 Travis, 6th Fl. North
                            Houston, Texas  77002
                            Attention: Susan M. Tate,
                            Vice President
                            Telecopier number:  713-216-7713
                            Confirmation number: 713-216-1511

                            AMSOUTH BANK
                                                                     (SEAL)
Commitment:
$33,000,000                 By: /s/ Katherine M. Allen
                                ----------------------
                                Title: AVP
Commitment Percentage:
                            Lending Office
14.6667%                    AmSouth Bank
                            1900 5th Avenue North
                            9th Floor
                            Birmingham, Alabama 35203
                            Attention: Katherine Allen
                            Telecopier number: 205-326-4075
                            Confirmation number: 205-326-4783

                            PNC BANK, NATIONAL ASSOCIATION
                                                                      (SEAL)
Commitment:

$30,000,000                 By: /s/ Wayne P. Robertson
                                ----------------------
                                Title: Vice President
Commitment Percentage:
                            Lending Office
13.333%                     PNC BANK, National Association
                            249 Fifth Avenue, 19th Floor
                            Pittsburgh, PA  15222
                            Attention:  Wayne P. Robertson
                            Vice President
                            Telecopier number:   412-762-6500
                            Confirmation number: 412-762-8452

Commitment:                 SOUTHTRUST BANK

$22,000,000
                            By: /s/ Sam Boroughs
                                -------------------------------
Commitment Percentage:          Title: Assistant Vice President

9.7778%                     Lending Office
                            SouthTrust Bank
                            420 North 20th Street - 11th Floor Corporate Banking
                            Birmingham, AL  35203
                            Attention: Sam Boroughs
                            Telecopier number: 205-254-8270
                            Confirmation number:

Commitment                  BANK OF AMERICA, N.A.
                                                                      (SEAL)

$20,000,000
                            By: /s/ Dea R. Whitehall
                                --------------------------
Commitment                      Title: Vice President
Percentage:
                            Lending Office
8.8889%                     Bank of America, N.A.
                            6610 Rockledge Drive, Suite 600
                            Bethesda, MD  20817
                            Attention: Denise Harris
                            Telecopier number: 301-571-9093
                            Confirmation number: 301-571-9668
TOTAL COMMITMENTS:

$225,000,000
<PAGE>
                                                                    EXHIBIT A-1
                                                                    -----------

                              SYNDICATED LOAN NOTE
                              --------------------
                                Atlanta, Georgia

                                 August 14, 2000

     For value received,  GABLES REALTY LIMITED PARTNERSHIP,  a Delaware limited
partnership  and  GABLES-TENNESSEE  PROPERTIES,   L.L.P.,  a  Tennessee  limited
liability company (collectively,  the "Borrower"), jointly and severally promise
to pay to the order of __________________________________________  (the "Bank"),
for   the   account   of   its   Lending   Office,    the   principal   sum   of
_______________________________  AND NO/100  DOLLARS  ($       ), or such lesser
amount as shall equal the unpaid  principal  amount of each Syndicated Loan made
by the  Bank to the  Borrowers  (or  either  of  them)  pursuant  to the  Credit
Agreement  referred to below,  on the dates and in the  amounts  provided in the
Credit Agreement.  The Borrowers promise to pay interest on the unpaid principal
amount  of this  Syndicated  Loan  Note on the  dates  and at the  rate or rates
provided for in the Credit Agreement.  Interest on any overdue principal of and,
to the extent  permitted by law, overdue interest on the principal amount hereof
shall  bear  interest  at the  Default  Rate,  as  provided  for  in the  Credit
Agreement.  All such payments of principal and interest  shall be made in lawful
money of the United States in Federal or other  immediately  available  funds at
the office of Wachovia Bank, N.A., 191 Peachtree Street, N.E., Atlanta,  Georgia
30303-1757, or such other address as may be specified from time to time pursuant
to the Credit Agreement.

     All Loans made by the Bank, the respective maturities thereof, the interest
rates from time to time applicable thereto,  and all repayments of the principal
thereof  shall be  recorded  by the Bank  and,  prior  to any  transfer  hereof,
endorsed by the Bank on the schedule  attached  hereto,  or on a continuation of
such schedule  attached to and made a part hereof;  provided that the failure of
the Bank to make any such  recordation  or  endorsement  shall  not  affect  the
obligations of the Borrowers hereunder or under the Credit Agreement.

     This  Syndicated  Loan Note is one of the Syndicated Loan Notes referred to
in the  Second  Amended  and  Restated  Credit  Agreement  dated as of even date
herewith among Gables Realty Limited Partnership,  Gables-Tennessee  Properties,
L.L.C., the Banks listed on the signature pages thereof, Wachovia Bank, N.A., as
Administrative  Agent,  First Union National Bank, as Syndication  Agent and The
Chase  Manhattan  Bank,  as  Documentation  Agent (as the same may  hereafter be
amended and modified from time to time, the "Credit  Agreement").  Terms defined
in the Credit  Agreement  are used herein with the same  meanings.  Reference is
made to the Credit  Agreement  for  provisions  for the optional  and  mandatory
prepayment and the repayment hereof and the acceleration of the maturity hereof,
as well as the  obligation  of the  Borrower  to pay all  costs  of  collection,
including  reasonable  attorneys fees, in the event this Syndicated Loan Note is
collected by law or through an attorney at law.

     The Borrowers hereby waive presentment,  demand, protest, notice of demand,
protest and  nonpayment  and any other notice  required by law relative  hereto,
except to the extent as otherwise  may be  expressly  provided for in the Credit
Agreement.

     IN WITNESS  WHEREOF,  each of the Borrowers has caused this Syndicated Loan
Note to be duly executed,  under seal, by its duly authorized  officer as of the
day and year first above written.

GABLES-TENNESSEE PROPERTIES (SEAL)          GABLES REALTY LIMITED
By:  Gables Realty Limited Partnership,     PARTNERSHIP, L.L.C.         (SEAL)
     member                                 By:  Gables GP, Inc.
By:  Gables GP, Inc.                             its sole general partner
     its sole general partner

By:                                              By:
     ------------------------                    ---------------------
     Marvin Banks, Jr.                           Marvin Banks, Jr.
     Senior Vice President                       Senior Vice President

<PAGE>

                         Syndicated Loan Note (cont'd)
                         --------------------

                   SYNDICATED LOANS AND PAYMENTS OF PRINCIPAL

          Base Rate        Amount      Amount of
          or Euro-         of          Principal      Maturity      Notation
Date      Dollar Loan      Loan        Repaid         Date          Made By

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<PAGE>

                                                                    EXHIBIT A-2
                                                                    -----------

                             MONEY MARKET LOAN NOTE
                             ----------------------
                              As of August 14, 2000

     For value received,  GABLES REALTY LIMITED PARTNERSHIP,  a Delaware limited
partnership  and  GABLES-TENNESSEE   PROPERTIES,   L.L.C,  a  Tennessee  limited
liability company (collectively, the "Borrower"), jointly and severally promises
to  pay  to  the  order  of                                                 ,  a
_______________  (the  "Bank"),  for the  account  of its  Lending  Office,  the
principal sum of ONE HUNDRED TWELVE  MILLION,  FIVE HUNDRED  THOUSAND AND NO/100
DOLLARS  ($112,500,000),  or such  lesser  amount  as  shall  equal  the  unpaid
principal  amount of each Money Market Loan made by the Bank to the Borrower (or
either of them) pursuant to the Credit Agreement referred to below, on the dates
and in the amounts provided in the Credit  Agreement.  The Borrowers  promise to
pay  interest on the unpaid  principal  amount of this Money Market Loan Note on
the dates and at the rate or rates provided for in the Credit Agreement referred
to below.  Interest on any overdue  principal of and, to the extent permitted by
law,  overdue interest on the principal amount hereof shall bear interest at the
Default  Rate,  as provided for in the Credit  Agreement.  All such  payments of
principal  and interest  shall be made in lawful  money of the United  States in
Federal or other  immediately  available  funds at the office of Wachovia  Bank,
N.A., 191 Peachtree Street,  N.E., Atlanta,  Georgia  30303-1757,  or such other
address as may be specified from time to time pursuant to the Credit Agreement.

     All Money Market Loans made by the Bank, the respective maturities thereof,
the interest rates from time to time applicable  thereto,  and all repayments of
the principal  thereof shall be recorded by the Bank and,  prior to any transfer
hereof,  endorsed  by  the  Bank  on  the  schedule  attached  hereto,  or  on a
continuation of such schedule attached to and made a part hereof;  provided that
the failure of the Bank to make any such  recordation or  endorsement  shall not
affect the obligations of the Borrower hereunder or under the Credit Agreement.

     This Money Market Loan Note is one of the Money Market Loan Notes  referred
to in the Second  Amended and Restated  Credit  Agreement  dated as of even date
herewith among Gables Realty Limited Partnership,  Gables-Tennessee  Properties,
L.L.C., the Banks listed on the signature pages thereof, Wachovia Bank, N.A., as
Administrative  Agent,  First Union National Bank, as Syndication  Agent and The
Chase  Manhattan  Bank,  as  Documentation  Agent (as the same may  hereafter be
amended and modified from time to time, the "Credit  Agreement").  Terms defined
in the Credit  Agreement  are used herein with the same  meanings.  Reference is
made to the Credit  Agreement  for  provisions  for the optional  and  mandatory
prepayment and the repayment hereof and the acceleration of the maturity hereof,
as well as the  obligation  of the  Borrowers  to pay all  costs of  collection,
including reasonable attorneys fees, in the event this Money Market Loan Note is
collected by law or through an attorney at law.

     The Borrowers hereby waive presentment,  demand, protest, notice of demand,
protest and  nonpayment  and any other notice  required by law relative  hereto,
except to the extent as otherwise  may be  expressly  provided for in the Credit
Agreement.

     IN WITNESS WHEREOF, each of the Borrowers has caused this Money Market Loan
Note to be duly executed,  under seal, by its duly authorized  officer as of the
day and year first above written.

GABLES-TENNESSEE PROPERTIES (SEAL)           GABLES REALTY LIMITED PARTNERSHIP
By:  Gables Realty Limited Partnership,                                 (SEAL)
     member                                  By:  Gables GP, Inc.,
By:  Gables GP, Inc.,                             its sole general partner
     its sole general partner

By:                                          By:
     ---------------------                        ---------------------
     Marvin Banks, Jr.                            Marvin Banks, Jr.
     Senior Vice President                        Senior Vice President

<PAGE>

                         Money Market Loan Note (cont'd)
                         ----------------------

                  MONEY MARKET LOANS AND PAYMENTS OF PRINCIPAL

                          Amount      Amount of      Stated
            Interest      of          Principal      Maturity      Notation
  Date      Rate          Loan        Repaid         Date          Made By

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<PAGE>

                                                                      EXHIBIT B
                                                                      ---------

[Note: additional  appropriate  assumptions,  qualifications  and exceptions and
       general matters to be added]

                                     FORM OF
                                   OPINION OF
                  COUNSEL FOR THE BORROWERS AND THE GUARANTORS
                  --------------------------------------------

                     [Dated as provided in Section 3.01 of the Credit Agreement]

To the Banks and the Administrative Agent
Referred to Below
c/o Wachovia Bank, N.A.,
as Administrative Agent
191 Peachtree Street, N.E.
Atlanta, Georgia  30303-1757

Dear Sirs:

     We have acted as counsel for GABLES REALTY LIMITED PARTNERSHIP,  a Delaware
limited partnership (the "Parent") and  GABLES-TENNESSEE  PROPERTIES,  L.L.C., a
Tennessee limited liability  company,  as the Borrowers,  in connection with the
Second Amended and Restated Credit Agreement (the "Credit  Agreement")  dated as
of August 14, 2000,  among the Borrowers the banks listed on the signature pages
thereof and Wachovia Bank, N.A., as Administrative  Agent,  First Union National
Bank, as Syndication Agent and The Chase Manhattan Bank, as Documentation Agent.
Terms defined in the Credit  Agreement are used herein as therein  defined.  The
Credit  Agreement  and the Notes are  herein  collectively  called  the  "Credit
Documents". We have also acted as counsel for the Guarantors.

     We have examined originals or copies,  certified or otherwise identified to
our satisfaction,  of such documents,  corporate records, certificates of public
officials and other instruments and have conducted such other  investigations of
fact and law as we have  deemed  necessary  or  advisable  for  purposes of this
opinion.  We have  assumed for purposes of our opinions set forth below that the
execution  and  delivery  of  the  Credit  Agreement  by  each  Bank  and by the
Administrative  Agent  have  been  duly  authorized  by  each  Bank  and  by the
Administrative Agent.

     Upon the basis of the foregoing, we are of the opinion that:

     1. The Parent is a limited partnership duly organized, validly existing and
in good standing under the laws of Delaware,  and has all requisite  partnership
power and authority to execute, deliver and perform the Credit Documents.

     2.  Gables  Residential  Trust  is a real  estate  investment  trust,  duly
organized,  validly existing and in good standing under the laws of the State of
Maryland and has all requisite corporate power and authority to execute, deliver
and perform the  Guaranty.  Gables GP, Inc.  is a  corporation  duly  organized,
validly  existing and in good standing  under the laws of the State of Texas and
has all requisite corporate power and authority to execute,  deliver and perform
the  Guaranty.  Gables-Tennessee  Properties,  L.L.C.  is  a  limited  liability
company, duly organized, validly existing and in good standing under the laws of
the State of Tennessee  and has all  requisite  power and  authority to execute,
deliver and perform the Credit Documents.

     3. The Credit  Documents have been duly and validly  executed and delivered
by the  Borrowers  and  constitute  the valid  and  binding  obligations  of the
Borrowers.  The Guaranties have been duly and validly  executed and delivered by
the  Guarantors  and  constitute  the  valid  and  binding  obligation  of  each
Guarantor.

     4. The execution,  delivery and  performance by the Borrowers of the Credit
Documents  and  the  borrowings  thereunder  and  the  execution,  delivery  and
performance by the  Guarantors of the Guaranty (i) have been duly  authorized by
all  necessary  partnership  action  on the  part  of the  Borrowers  and by all
necessary  corporate action on the part of each Guarantor,  (ii) do not and will
not  contravene  or  violate  any  statutory  law,  rule  or  regulation  of any
governmental authority included in the scope of this opinion which is binding on
or affecting  the  Borrowers or Guarantors or the property of any of them or the
Organization  Documents  (hereinafter  defined)  of any of them and (iii) to the
Actual Knowledge  (hereinafter defined) of the Primary Lawyer Group (hereinafter
defined),  do not and will not result in the breach of, or  constitute  and will
not constitute a default under,  any written  agreement,  instrument,  judgment,
license,  writ,  order,  decree or permit  which  names  either  Borrower or any
Guarantor,  as the case may be, and is specifically  directed to the Borrower or
any Guarantor or the property of any of them.  The  Organizational  Documents as
used herein shall mean the agreement of limited  partnership of the Parent,  the
articles of incorporation  and bylaws of Gables GP, Inc., and the declaration of
trust and bylaws of Gables  Residential  Trust,  and the operating  agreement of
Gables-Tennessee Properties, L.L.C. as in effect on the date hereof.
<PAGE>

     5. No authorization,  consent,  approval,  license or permission of, and no
registration, qualification or filing with, any court, governmental authority or
agency  included in the scope of this opinion is required in connection with the
execution,  delivery and performance of the Credit Documents by Borrowers or the
Guaranty by the Guarantors,  except (a) for routine filings that may be required
after the date hereof to maintain  partnership  or corporate  qualification  and
good  standing  and (b) for  obligations  relating  solely to the  ordinary  and
necessary conduct of the operations of the Borrowers and the Guarantors.

     6. We confirm to you that there is, to the Actual  Knowledge of the Primary
Lawyer  Group,  no litigation or legal,  arbitral or  administrative  proceeding
pending  against either  Borrower or either  Guarantor  which (i) challenges the
validity of the Credit  Documents  or the  Guaranty or (ii) which,  if adversely
determined,  and taking into account any insurance with respect  thereto,  would
have a material adverse effect on the business, consolidated financial condition
or  consolidated  results  of  operations  of the  Parent  and its  Consolidated
Subsidiaries, considered as a whole.

     7. Neither of the Borrowers is an "investment  company"  within the meaning
of the Investment Company Act of 1940, as amended.

     8.  Neither of the  Borrowers  is a  "holding  company",  or a  "subsidiary
company" of a "holding company",  or an "affiliate" of a "holding company" or of
a "subsidiary company" of a "holding company",  as such terms are defined in the
Public Utility Holding Company Act of 1935, as amended.

     The term  "Primary  Lawyer  Group" as used herein means the lawyers in this
firm who have given  substantive  legal attention to the  representation  of the
Borrowers and the Guarantors in connection with the transaction evidenced by the
Credit  Documents  and the  Guaranty.  The term  "Actual  Knowledge"  means  the
conscious  awareness of facts or other  information by the Primary Lawyer Group,
without  undertaking  any special  investigation  and without  searching  public
records, our files or the files of the Borrowers or the Guarantors.

     This  opinion is limited in all  respects to the federal laws of the United
States, the laws of the State of Texas, the Delaware Revised Limited Partnership
Act and the General  Corporation  Law of the State of Maryland,  in each case as
now in effect, which have been published and are generally available in a format
that makes legal research reasonably feasible and we disclaim any responsibility
to inform you of any changes.  No opinion is expressed as to any matter than may
be governed by the laws of any other jurisdiction.

     This  opinion  is  delivered  to you in  connection  with  the  transaction
referenced  above and may only be relied upon by you, any Assignee,  Participant
or other Transferee under the Credit  Agreement,  and Jones, Day, Reavis & Pogue
without our prior written consent.

                                                              Very truly yours,
<PAGE>

                                                                     EXHIBIT C
                                                                     ---------

                                     FORM OF
                                   OPINION OF
                   JONES, DAY, REAVIS & POGUE, SPECIAL COUNSEL
                          FOR THE ADMINISTRATIVE AGENT
                   -------------------------------------------

                     [Dated as provided in Section 3.01 of the Credit Agreement]

To the Banks and the Administrative Agent
Referred to Below
c/o Wachovia Bank, N.A.,
as Administrative Agent
191 Peachtree Street, N.E.
Atlanta, Georgia 30303-1757

Dear Sirs:

     We have  participated in the preparation of the Second Amended and Restated
Credit  Agreement (the "Credit  Agreement")  dated as of August 14, 2000,  among
Gables Realty  Partnership,  a Delaware  limited  partnership (the "Parent") and
Gables-Tennessee  Properties,  L.L.C., a Tennessee limited liability company, as
the Borrowers, the banks listed on the signature pages thereof (the "Banks") and
Wachovia Bank, N.A., as Administrative Agent (the "Administrative Agent"), First
Union  National  Bank, as  Syndication  Agent and The Chase  Manhattan  Bank, as
Documentation  Agent,  and have acted as special counsel for the  Administrative
Agent for the purpose of rendering this opinion  pursuant to Section  3.01(d) of
the Credit  Agreement.  Terms defined in the Credit Agreement are used herein as
therein defined.

     This opinion  letter is limited by, and is in accordance  with, the January
1, 1992 edition of the  Interpretive  Standards  applicable to Legal Opinions to
Third Parties in Corporate  Transactions  adopted by the Legal Opinion Committee
of the  Corporate  and  Banking  Law  Section of the State Bar of Georgia  which
Interpretive Standards are incorporated herein by this reference.

     We have examined originals or copies,  certified or otherwise identified to
our satisfaction,  of such documents,  corporate records, certificates of public
officials and other instruments and have conducted such other  investigations of
fact and law as we have  deemed  necessary  or  advisable  for  purposes of this
opinion.

     Upon the  basis  of the  foregoing,  and  assuming  the due  authorization,
execution  and delivery of the Credit  Agreement  and each of the Notes by or on
behalf of the Borrowers,  and of the Guaranty by each of the Guarantors,  we are
of the  opinion  that the  Credit  Agreement  constitutes  a valid  and  binding
agreement of the Borrowers,  each Note constitutes valid and binding obligations
of the Borrowers,  and the Guaranty constitutes a valid and binding agreement of
each of the  Guarantors,  in each case  enforceable in accordance with its terms
except  as:  (i) the  enforceability  thereof  may be  affected  by  bankruptcy,
insolvency,   reorganization,   fraudulent   conveyance,   voidable  preference,
moratorium or similar laws applicable to creditors'  rights or the collection of
debtors' obligations generally; (ii) rights of acceleration and the availability
of  equitable  remedies  may be  limited  by  equitable  principles  of  general
applicability;  and (iii) the enforceability of certain of the remedial,  waiver
and other  provisions  of the  Credit  Agreement  and the  Notes may be  further
limited by the laws of the State of Georgia;  provided that such additional laws
do not, in our opinion,  substantially  interfere with the practical realization
of the benefits  expressed in the Credit  Agreement,  the Notes or the Guaranty,
except for the economic  consequences  of any procedural  delay which may result
from such laws.

     In giving the foregoing opinion, we express no opinion as to the effect (if
any) of any law of any jurisdiction  except the State of Georgia and the General
Corporation Law of the State of Delaware. We express no opinion as to the effect
of the compliance or  noncompliance  of the  Administrative  Agent or any of the
Banks  with  any  state  or  federal  laws  or  regulations  applicable  to  the
Administrative  Agent or any of the Banks by  reason of the legal or  regulatory
status or the nature of the business of the  Administrative  Agent or any of the
Banks.

     This  opinion  is  delivered  to you in  connection  with  the  transaction
referenced  above  and  may  only  be  relied  upon  by you  and  any  Assignee,
Participant or other  Transferee  under the Credit  Agreement  without our prior
written consent.

                                                              Very truly yours,
<PAGE>

                                                                     EXHIBIT D
                                                                     ---------

                            ASSIGNMENT AND ACCEPTANCE
                            -------------------------

                          Dated _______________, 19____

     Reference is made to the Second Amended and Restated Credit Agreement dated
as of August 14, 2000 (together with all amendments and  modifications  thereto,
the  "Credit   Agreement")   among  Gables  Realty   Limited   Partnership   and
Gable-Tennessee Properties,  L.L.C. (collectively,  the "Borrowers"),  the Banks
(as defined in the Credit  Agreement) and Wachovia Bank, N.A., as Administrative
Agent,  First Union National Bank, as Syndication Agent, and The Chase Manhattan
Bank, as  Documentation  Agent.  Terms defined in the Credit  Agreement are used
herein with the same meaning.

     _______________________________________________    (the   "Assignor")   and
__________________________________________ (the "Assignee") agree as follows:

     1. The Assignor hereby sells and assigns to the Assignee,  without recourse
to the  Assignor,  and the  Assignee  hereby  purchases  and  assumes  from  the
Assignor,  a % interest in and to all of the Assignor's  rights and  obligations
under  the  Credit  Agreement  as of  the  Effective  Date  (as  defined  below)
(including,  without limitation,  a _____% interest (which on the Effective Date
hereof is $__________) in the Assignor's Commitment and a interest (which on the
Effective Date hereof is  $______________)  in the  Syndicated  Loans [and Money
Market Loans] owing to the Assignor and a ____%  interest in the Note[s] held by
the Assignor (which on the Effective Date hereof is $__________).

     2. The  Assignor  (i) makes no  representation  or warranty  and assumes no
responsibility  with respect to any  statements,  warranties or  representations
made in or in connection with the Credit  Agreement or the execution,  legality,
validity,  enforceability,  genuineness,  sufficiency  or  value  of the  Credit
Agreement or any other instrument or document furnished pursuant thereto,  other
than that it is the legal and beneficial owner of the interest being assigned by
it hereunder, that such interest is free and clear of any adverse claim and that
as of the date  hereof its  Commitment  (without  giving  effect to  assignments
thereof which have not yet become  effective) is  $__________  and the aggregate
outstanding  principal amount of Syndicated Loans [and Money Market Loans] owing
to it (without  giving effect to  assignments  thereof which have not yet become
effective) is $________; (ii) makes no representation or warranty and assumes no
responsibility  with respect to the financial  condition of the Borrowers or the
performance or observance by the Borrowers of any of their obligations under the
Credit Agreement or any other instrument or document furnished pursuant thereto;
and (iii)  attaches  the Note[s]  referred to in  paragraph 1 above and requests
that the  Administrative  Agent exchange such Note[s] for [a new Syndicated Loan
Note dated _________, ____ in the principal amount of $__________ payable to the
order of the Assignee and a new Money Market Loan Note dated  ___________,  ____
in the  principal  amount  of  [$112,500,000](1)  payable  to the  order  of the
Assignee] [new Notes as follows:  a (i) Syndicated Loan Note dated  ___________,
in the principal amount of $__________ payable to the order of the Assignor (ii)
Syndicated  Loan  Note  dated  _________,  ______  in the  principal  amount  of
$_________  payable  to the  order of the  Assignee,  and  (iii) and a new Money
Market  Loan  Note  dated   ___________,   ____  in  the  principal   amount  of
[$112,500,000] (1) payable to the order of the Assignee].

     3. The  Assignee  (i)  confirms  that it has  received a copy of the Credit
Agreement,  together  with  copies of the  financial  statements  referred to in
Section 4.04(a) thereof (or any more recent  financial  statements of the Parent
delivered  pursuant to Section  5.01(a) or (b) thereof) and such other documents
and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and Acceptance; (ii) agrees that it will,
independently and without reliance upon the  Administrative  Agent, the Assignor
or any other Bank and based on such  documents and  information as it shall deem
appropriate at the time,  continue to make its own credit decisions in taking or
not taking action under the Credit  Agreement;  (iii) confirms that it is a bank
or financial institution;  (iv) appoints and authorizes the Administrative Agent
to take such action as  Administrative  Agent on its behalf and to exercise such
powers under the Credit Agreement as are delegated to the  Administrative  Agent
by the terms  thereof,  together with such powers as are  reasonably  incidental
thereto;  (v) agrees that it will perform in accordance  with their terms all of
the  obligations  which by the terms of the Credit  Agreement are required to be
performed by it as a Bank; (vi) specifies as its Lending Office (and address for
notices) the office set forth  beneath its name on the  signature  pages hereof,
(vii)  represents and warrants that the execution,  delivery and  performance of
this  Assignment and  Acceptance  are within its corporate  powers and have been
duly   authorized  by  all  necessary   corporate   action,   (viii)  makes  the
representation and warranty contained in Section 9.18 of the Credit Agreement [,

--------
(1)  This amount should be equal to 50% of the aggregate Commitments at the time
     of the assignment.
<PAGE>

and (ix) attaches the forms  prescribed by the Internal Revenue Service of the
United States certifying as to the Assignee's status for purposes of determining
exemption from United States  withholding  taxes with respect to all payments to
be made to the Assignee  under the Credit  Agreement and the Notes or such other
documents  as are  necessary to indicate  that all such  payments are subject to
such taxes at a rate reduced by an applicable tax treaty].

     4.  The  Effective  Date  for  this  Assignment  and  Acceptance  shall  be
_______________,  19____ (the "Effective Date"). Following the execution of this
Assignment and Acceptance,  it will be delivered to the Administrative Agent for
execution and  acceptance by the  Administrative  Agent and to the Borrowers for
execution by the Borrowers.

     5. Upon such  execution  and  acceptance by the  Administrative  Agent [and
execution  by the  Borrowers]  [If required by the Credit  Agreement],  from and
after  the  Effective  Date,  (i) the  Assignee  shall be a party to the  Credit
Agreement and, to the extent rights and obligations  have been transferred to it
by this  Assignment and  Acceptance,  have the rights and  obligations of a Bank
thereunder and (ii) the Assignor shall, to the extent its rights and obligations
have  been  transferred  to the  Assignee  by this  Assignment  and  Acceptance,
relinquish  its rights  (other than under  Sections  8.03,  9.03 and 9.04 of the
Credit  Agreement)  and be  released  from  its  obligations  under  the  Credit
Agreement.

     6. Upon such  execution  and  acceptance by the  Administrative  Agent [and
execution  by the  Borrowers]  [If required by the Credit  Agreement],  from and
after the Effective  Date, the  Administrative  Agent shall make all payments in
respect of the  interest  assigned  hereby to the  Assignee.  The  Assignor  and
Assignee shall make all appropriate adjustments in payments for periods prior to
such acceptance by the Administrative Agent directly between themselves.

     7. This  Assignment and  Acceptance  shall be governed by, and construed in
accordance with, the laws of the State of Georgia.

                         [NAME OF ASSIGNOR)

                         By:__________________________________________________
                            Title:

                         [NAME OF ASSIGNEE]

                         By:__________________________________________________
                            Title:

                         Lending Office:
                         [Address]

                         WACHOVIA BANK, N.A.,
                         As Administrative Agent

                         By:__________________________________________________
                            Title:

                         GABLES REALTY LIMITED PARTNERSHIP
                         If required by the Credit Agreement
                         By: Gables GP, Inc., its sole general partner

                         By: _________________________________________________
                             Marvin R. Banks, Jr.,
                             Senior Vice President

                         GABLES-TENNESSEE PROPERTIES, L.L.C.          (SEAL)
                         If required by the Credit Agreement
                         By:  Gables Realty Limited Partnership,
                              member
                         By:  Gables GP, Inc., its sole general partner

                         By:  ________________________________________________
                              Marvin R. Banks, Jr.,
                              Senior Vice President
<PAGE>

                                                                     EXHIBIT E
                                                                     ---------

                               NOTICE OF BORROWING
                               -------------------

                          ____________________, 199___

Wachovia Bank, N.A., as Administrative Agent
191 Peachtree Street, N.E.
Atlanta, Georgia  30303-1757
Attention: Real Estate Finance Division

          Re:  Second  Amended and  Restated  Credit  Agreement  (as amended and
               modified  from time to time,  the  "Credit  Agreement")  dated as
               August 14, 2000 by and among Gables  Realty  Limited  Partnership
               and Gables-Tennessee  Properties,  L.L.C., as the Borrowers,  the
               Banks from time to time parties thereto, and Wachovia Bank, N.A.,
               as   Administrative   Agent,   First  Union   National  Bank,  as
               Syndication Agent, and The Chase Manhattan Bank, as Documentation
               Agent.

Gentlemen:

     Unless otherwise  defined herein,  capitalized terms used herein shall have
the meanings attributable thereto in the Credit Agreement.

     This Notice of  Borrowing  is  delivered to you pursuant to Section 2.02 of
the Credit Agreement.

     The Borrower hereby requests a Syndicated Borrowing which is a [Euro-Dollar
Borrowing]   [Base  Rate  Borrowing]  in  the  aggregate   principal  amount  of
$_______________  to be made on  _______________,  199___,  and for  interest to
accrue thereon at the rate  established by the Credit Agreement for [Euro-Dollar
Loans]  [Base Rate  Loans].  The  duration of the  Interest  Period with respect
thereto  shall be [1 month] [2 months] [3 months] [6 months] [30 days] [60 days]
[90 days] [120 days].

     The  Borrower  has caused  this  Notice of  Borrowing  to be  executed  and
delivered by its duly authorized officer this       day of           , 199  .

                                 GABLES REALTY LIMITED PARTNERSHIP
                                                                          (SEAL)

                                 By: Gables GP, Inc., its sole general partner

                                 By: __________________________________________
                                     Marvin R. Banks, Jr., Senior Vice President

                                 GABLES-TENNESSEE PROPERTIES, L.L.C.,
                                                                          (SEAL)
                                 By: Gables Realty Limited Partnership,
                                     member
                                 By: Gables GP, Inc., its sole general partner

                                 By: __________________________________________
                                     Marvin R. Banks, Jr.,
                                     Senior Vice President

<PAGE>

                                                                     EXHIBIT F
                                                                     ---------

                             COMPLIANCE CERTIFICATE
                             ----------------------

     Reference is made to the Second Amended and Restated Credit Agreement dated
as of August 14, 2000 (as modified and  supplemented  and in effect from time to
time,  the "Credit  Agreement")  among Gables  Realty  Limited  Partnership  and
Gable-Tennessee  Properties,  as the  Borrowers,  the  Banks  from  time to time
parties thereto,  and Wachovia Bank, N.A., as Administrative  Agent, First Union
National  Bank,  as  Syndication   Agent,  and  The  Chase  Manhattan  Bank,  as
Documentation  Agent.  Capitalized  terms used  herein  shall have the  meanings
ascribed thereto in the Credit Agreement.

     Pursuant to Section 5.01(c) of the Credit Agreement,  ____________________,
the duly authorized  [title of Executive  Officer,  other than Secretary] of the
General Partner,  hereby (i) certifies to the Administrative Agent and the Banks
that the information  contained in the Compliance  Check List attached hereto is
true,  accurate  and complete in all  material  respects as of  _______________,
______,  and that no Default is in  existence  on and as of the date  hereof and
(ii) restates and reaffirms that the representations and warranties contained in
Article  V of the  Credit  Agreement  are true on and as of the date  hereof  as
though restated on and as of this date.

                                 GABLES REALTY LIMITED PARTNERSHIP
                                                                          (SEAL)

                                 By:  Gables GP, Inc., its sole general partner

                                 By: __________________________________________
                                     [Name and title of Executive Officer,
                                     other than Secretary]

<PAGE>

                              COMPLIANCE CHECKLIST
                              --------------------

                              COMPLIANCE CHECK LIST
                        Gables Realty Limited Partnership
                            _________________________

                             _______________, ______

1.   Consolidated Total Secured Debt (Section 5.03)

     The  amount  of Total  Secured  Debt  will not at any  time  exceed  40% of
     Adjusted Total Assets Value.

     (a) Total Secured Debt                      Schedule - 1     $__________

     (b) Adjusted Total Assets Value             Schedule - 2     $__________

     (c) 40% of (b)                                               $__________

         Limitation: (a) must be less than (c)

2.   Ratio of Total Debt to Total Assets (Section 5.04)

     The ratio of Total Debt to Total  Assets  Value will not at any time exceed
     0.55 to 1.00.

     (a) consolidated total liabilities at end
         of most recent Fiscal Quarter (other than
         principal amount equal to cash held in escrow)           $__________

     (b) aggregate amount of Debt Guaranteed
         by Borrowers, the Guarantor and the
         Subsidiaries (other than of Guarantees of
         Debt of any of them and Guarantees
         which have been fully cash
         collateralized) at end of most recent
         Fiscal Quarter                                           $__________

     (c) Parent's Joint Venture Share of aggregate
         amount of Debt of all Joint Ventures                     $__________

     (d) face amount of all letters of credit
         (other than amounts which are fully cash
         collateralized) for which the Borrowers or any
         of the Guarantors is account party at the end
         of the most recent Fiscal Quarter                        $__________

     (e) aggregate amount of all tenant deposits
         which are maintained in segregated accounts
         and classified as restricted cash in accordance
         with GAAP                                                $__________

     (f) amounts maintained in escrow deposits
         with banks or other financial institutions
         for payment of real estate property taxes
         reflected on the Parent's balance sheet
         and reflected as restricted cash in accordance
         with GAAP                                                $__________

     (g) Total Debt
         (sum of (a) plus (b) plus (c) plus (d) less
         (e) less (f))                                            $__________

     (h) Total Assets Value                      Schedule - 2     $__________

     Actual Ratio of (g) to (h)                                 _____ to 1.00

     Maximum Ratio                                     less than 0.55 to 1.00(2)

--------
(2)  0.60  to 1.0  for  the  Fiscal  Quarter  ending  June  30,  1998  (but  not
     thereafter),  if a ratio of 0.55 to 1.0 is exceeded  solely  because of the
     South Florida acquisition.

<PAGE>

3.   Interest Coverage (Section 5.05)

     The ratio of (x)  Consolidated  Income  Available  for Debt  Service to (y)
     Consolidated  Interest  Expense  shall  at all  times  exceed  2.00 to 1.0,
     calculated at the end of each Fiscal  Quarter,  based on the Fiscal Quarter
     just ended and the immediately preceding three Fiscal Quarters.

     (a) Consolidated Income Available
         for Debt Service                        Schedule - 3     $__________

     (b) Consolidated Interest Expense           Schedule - 3     $__________

     Actual Ratio of (a) to (b)                                  _____ to 1.00

     Minimum Ratio                                      less than 2.00 to 1.00

4.   Restricted  Payments  (Section  5.06)  (include  only  at the  end of  each
     calendar year)

     The Parent's  Restricted Payments in any calendar year shall not exceed 95%
     of Consolidated  Income Available for Distribution for such period,  unless
     (i) the  Parent  must pay out an amount  in  excess of 95% of  Consolidated
     Income Available for Distribution to permit GBP to preserve its status as a
     real estate investment trust under the applicable provision of the Code, or
     (ii) GBP declares one or more capital gains dividends  within such calendar
     year (in which event the amount of additional  Restricted Payments that may
     be made as a result of such  declaration  as  provided  in this clause (ii)
     shall not  exceed  the  greater  of (A) the  income  tax  liability  of the
     Parent's  partners with respect thereto and (B)  $1,500,000).  In the event
     that the Parent or GBP receives a public debt rating of BBB- or better from
     Standard & Poors or Baa3 or better from Moody's  Investor's  Service and so
     long as that rating is affirmed  during each year, the Parent's  Restricted
     Payments  in any  calendar  year will be  limited  to 100% of  Consolidated
     Income  Available  for  Distribution  for such  calendar year with the same
     exceptions contained in clauses (i) and (ii) of this Section 5.06.

     (a) Consolidated Income Available
         for Debt Service                        Schedule - 4     $_________

     (b) interest expense and certain
         letter of credit fees                   Schedule - 4     $_________

     (c) taxes included in
         Consolidated Income
         Available for Debt Service (excluding
         ad valorem taxes and taxes on gains
         from sales or joint ventures                             $_________

     (d) sum of (a) less (b) less (c)                             $_________

     Maximum Restricted Payments generally
          [95%] [100%] of (d)                                     $_________

     Additional Restricted Payments permitted
          by clause (i)                                           $_________

     Additional Restricted Payments permitted
          by clause (ii), not to exceed greater
          of partners' income tax liability
          and $1,500,000                                          $_________

     Calendar year distributions to date                          $_________

<PAGE>

5.   Loans and Advances (Section 5.07)

     Neither the Borrowers,  the Guarantors nor any other  Subsidiary shall make
     loans or advances to any Person except: (i) deposits required by government
     agencies or public utilities;  (ii) loans and advances made by Borrowers or
     any Guarantor to any Guarantor or to Borrowers;  (iii) loans or advances to
     directors, officers and employees in the ordinary course of business in the
     aggregate outstanding at any time not exceeding  $1,000,000;  (iv) loans or
     advances to employees in the ordinary  course of business which are secured
     by  stock in GBP in the  aggregate  outstanding  at any time not  exceeding
     $5,000,000;  and (v) other loans or advances made in the ordinary course of
     business in the aggregate  outstanding  at any time not exceeding 5% of the
     book  value  of  the  total  assets  of the  Parent  and  its  Consolidated
     Subsidiaries,   determined  in  accordance  with  GAAP  minus  all  amounts
     outstanding  under clause (iii) of this Section 5.07 and minus  Investments
     made and permitted pursuant to Section 5.09(E);  provided that after giving
     effect to the  making of any  loans,  advances  or  deposits  permitted  by
     clauses (i), (ii),  (iii) or (iv), the Borrowers will be in full compliance
     with all the provisions of this Agreement.

     (a) to directors, officers and
         employees                                                $_________

         Limitation:                                              $1,000,000

     (b) to employees, secured by GBP stock                       $__________

         Limitation:                                              $5,000,000

     (c) other                                                    $__________

         Limitation:                                              $__________(3)

6.   Purchases of Stock by Subsidiaries (Section 5.08)

     Except for purchases or  acquisitions of shares of GBP's Capital Stock made
     for  purposes  of  having  such  shares   available  for  purchase  by  GBP
     shareholders  pursuant to GBP's  dividend  reinvestment  and share purchase
     program  known as "The Share  Builder  Plan",  as amended as of the Closing
     Date  and,  subject  to the  approval  of the  Required  Banks  (not  to be
     unreasonably  withheld),  as it may  thereafter be amended,  the Guarantors
     shall not purchase or acquire any shares of GBP's  Capital Stock during any
     12 month period in excess of 10% of all GBP's Capital Stock  outstanding on
     the first day of such period.

     (a) Aggregate number of shares of
         GBP's Capital Stock
         purchased by the Guarantors in
         last 12 months (4)                                       ___________

     (b) Aggregate purchase price of shares
         described in (a)                                         $__________

     (c) aggregate value of GBP's Capital Stock
         on first day of last 12 month period                     $__________

     (d) (c) times 0.10                                           $__________

         Limitation:  (d)

--------
(3)  5% of book value of Borrower and Consolidated Subsidiaries,  determined per
     GAAP,  less  amount in (a) of this  paragraph  5 and  amount in line (c) of
     paragraph 7 below.

(4)  Exclude shares purchased pursuant to The Share Builder Plan.

<PAGE>

7.   Investments (Section 5.09)

     Neither the  Borrowers nor the  Guarantors  shall make  Investments  in any
     Person  except:  (A)  Investments  in (i) direct  obligations of the United
     States Government, (ii) certificates of deposit issued by a commercial bank
     whose credit is satisfactory to the Administrative  Agent, (iii) commercial
     paper rated A1 or the equivalent  thereof by Standard & Poor's  Corporation
     or P1 or the equivalent thereof by Moody's Investors  Service,  Inc. and in
     either case maturing  within 9 months after the date of  acquisition,  (iv)
     tender bonds the payment of the principal of and interest on which is fully
     supported  by a letter  of  credit  issued by a United  States  bank  whose
     long-term  certificates  of deposit are rated at least AA or the equivalent
     thereof by Standard & Poor's  Corporation and Aa or the equivalent  thereof
     by Moody's Investors  Service,  Inc., (v) insured money market  Investments
     and/or (vi) Investments in debt or equity securities rated at least BBB+ or
     the equivalent thereof by Standard & Poor's Corporation or at least Baa1 or
     the  equivalent  thereof by Moody's  Investors  Service  not  exceeding  an
     aggregate  amount  outstanding at any time of $25,000,000;  (B) Investments
     permitted  by clauses  (i),  (ii) and (iii) of  Section  5.07 or by Section
     5.08; (C)  Investments in Significant  Subsidiaries;  (D) the South Florida
     Acquisition;  and (E) other  Investments not exceeding an aggregate  amount
     outstanding  at any time 10% of the book  value of the total  assets of the
     Parent and its  Consolidated  Subsidiaries,  determined in accordance  with
     GAAP,  less loans and advances  outstanding and permitted by clause (iv) of
     Section 5.07.

     (a) debt or equity securities rated
         at least BBB+ or Baa1                                    $__________

         Limitation:                                              $25,000,000

     (b) Investments in Significant
         Subsidiaries after Closing Date                          $__________

     (c) other                                                    $__________

         Limitation:                                              $__________(5)

8.   Restrictions on Additional Guarantees (Section 5.25)

     Neither the  Borrowers nor any of the  Guarantors  shall incur or permit to
     exist any Guarantees of unsecured  revolving Debt,  other than the Guaranty
     made hereunder, in an aggregate principal amount outstanding at any time of
     $25,000,000 or more.

     (a) aggregate amount of Guaranties
         of unsecured revolving Debt not
         described in (i)
         of Section 5.25                                          $__________

         Limitation                                               $25,000,000

--------
(5)  10% of book value of Borrower and Consolidated  Subsidiaries per GAAP, less
     amount on line (c) of paragraph 5 above.

<PAGE>

9.   Ratio of Total Unencumbered Assets Value to Unsecured Funded Debt
     (Section 5.27)

     The ratio of Total Unencumbered  Assets Value to Unsecured Funded Debt will
     not at any time be less than 1.75 to 1.00.

     (a) Total Unencumbered Assets
         Value at end of most recent
         Fiscal Quarter                            Schedule - 5   $__________

     (b) Unsecured Funded Debt at
         end of most recent
         Fiscal Quarter                            Schedule - 6   $__________

     Actual Ratio of (a) to (b)                                 _____ to 1.00

     Minimum Ratio                                              1.75 to 1.00

10.  Consolidated Fixed Charges Coverage Ratio (Section 5.28)

     At the end of each Fiscal Quarter,  the Consolidated Fixed Charges Coverage
     Ratio shall not be less than 1.75 to 1.0.

     (a) Consolidated Income Available for
         Debt Service - Schedule 4                                $__________

     (b) Consolidated Fixed Charges
         - Schedule 7                                             $__________

     (c) Actual Ratio of (a) to (b)                               _____ to 1.0

         Minimum Ratio                                            1.75 to 1.0

<PAGE>

                                                                   Schedule - 1
                                                                   ------------
                               Total Secured Debt
                               ------------------

                                      INTEREST       FINAL
                                      RATE(6)        MATURITY       TOTAL
                                      --------       --------       -----
Money Borrowed(7)
--------------

----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
     Total Money Borrowed                                           $---------

Deferred Purchase Price
-----------------------

----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
     Total Deferred Purchase Price

Reimbursement Obligations Pertaining
to any Letter of Credit                                             $--------
-----------------------

Capitalized Leases
------------------

----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
     Total Capitalized Leases                                       $---------
     Total Secured Debt                                             $=========

--------
(6)  If rate is fixed, insert contract rate. If rate is floating, state that.

(7)  Include only Debt secured by a Mortgage.

<PAGE>

                                                                   Schedule - 2
                                                                   ------------

               Adjusted Total Assets Value and Total Assets Value
               --------------------------------------------------

(a)  Net Operating Income for the 12 month
     period ending on the last day of the month
     just ended from each Multi-Family Property which either
     was on average at least 90% economically occupied
     during, or with respect to which the Construction
     Period___Termination Date occurred prior
     to the commencement of, such 12 month
     period (8)                                                   $__________

(b)  (a) divided by 0.09;                                         $__________

(c)  Net Operating Income for the 3 month
     period ending on the last day of the month
     just ended from each Multi-Family Property with respect
     to which the Construction Period Termination Date
     did not occur prior to the commencement of the 12
     month period ending on the last day of the month
     just ended                                                   $__________

(d)  (c) times 4.0_____                                           $__________

(e)  (d) divided by 0.09                                          $__________

(f)  aggregate amount of cash expenditures (9) as of
     the last day of the month just ended on each
     Multi-Family Property as to which the Construction
     Period Termination Date has not occurred as of such
     last day of the month just ended                             $__________

(g)  aggregate amount of all cash and cash equivalents
     held by the Borrowers (10)                                   $__________

(h)  ADJUSTED TOTAL ASSETS VALUE
     sum of (b) plus (e) plus (f) plus (g)                        $__________

(i)  Joint Venture Share of the net operating income
     for the 12 month period ending on the last day
     of the month just ended from each Joint Venture
     Property which either was on       average at
     least 90% economically occupied during,
     or with respect to which the Construction
     Period Termination Date occurred prior
     to the commencement of, such 12 month
     period                                                       $__________

(j)  (i) divided by 0.09                                          $__________

(k)  Joint Venture Share of the net operating income
     for the 3 month period ending on the last day of
     the month just ended from each Joint Venture
     Property with respect to which the Construction
     Period Termination Date did not occur prior to the
     commencement of the 12 month period ending
     on the last day of the month just ended                      $__________

(l)  (k) times 4.0                                                $__________
         -----

(m)  (l) divided by 0.09                                          $__________
         -------

--------
(8)  If a Multi-family Property satisfies the criteria set forth in both (a) and
     (b), it shall be included only in the calculations in (b).

(9)  Including indirect costs internally allocated in accordance with GAAP.

(10) Including amounts on deposit with banks or other financial institutions and
     Investments of the types described in clauses (i) through (vi),  inclusive,
     of the definition of "Investments",  Provided,  with respect to Investments
     described in clause (vi), that such Investments are readily marketable.

<PAGE>

(n)  Joint Venture Share of  the aggregate amount
     of cash expenditures (11) as of the last day of the
     month just ended prior to the date of determination
     on each Joint Venture Property which is still
     under construction as of such last day of the
     month just ended                                             $__________

(o)  TOTAL ASSETS VALUE sum of (h) plus (j)
     plus (m) plus (n)_                                           $__________

--------
(11)  Including indirect costs internally allocated in accordance with GAAP.

<PAGE>
                                                                   Schedule - 3
                                                                   ------------

                 Consolidated Income Available For Debt Service
                 ----------------------------------------------
  (for Fiscal Quarter just ended and immediately preceding 3 Fiscal Quarters)

_____ quarter _____
      net income (12)                                             $__________
      plus minority interests                                     $__________
      less extraordinary gains                                    ($_________)
      plus extraordinary losses                                   $__________
      plus depreciation and amortization                          $__________
      plus losses from sales or joint ventures                    $__________
      less gains from sales or joint ventures                     ($_________)
      less decreases in deferred taxes
          and non-cash items                                      ($_________)
      plus increases in deferred taxes
          and non-cash items                                      $__________
      plus interest expense                                       $__________
      plus letter of credit fees on
          on tax exempt bonds                                     $__________
      plus taxes (excluding ad valorem taxes)                     $__________

_____ quarter _____
      net income (12)                                             $__________
      plus minority interests                                     $__________
      less extraordinary gains                                    ($_________)
      plus extraordinary losses                                   $__________
      plus depreciation and amortization                          $__________
      plus losses from sales or joint ventures                    $__________
      less gains from sales or joint ventures                     ($_________)
      less decreases in deferred taxes
          and non-cash items                                      ($_________)
      plus increases in deferred taxes
          and non-cash items                                      $__________
      plus interest expense                                       $__________
      plus letter of credit fees on
          on tax exempt bonds                                     $__________
      plus taxes (excluding ad valorem taxes)                     $__________

_____ quarter _____
      net income (12)                                             $__________
      plus minority interests                                     $__________
      less extraordinary gains                                    ($_________)
      plus extraordinary losses                                   $__________
      plus depreciation and amortization                          $__________
      plus losses from sales or joint ventures                    $__________
      less gains from sales or joint ventures                     ($_________)
      less decreases in deferred taxes
          and non-cash items                                      ($_________)
      plus increases in deferred taxes
          and non-cash items                                      $__________
      plus interest expense                                       $__________
      plus letter of credit fees on
          on tax exempt bonds                                     $__________
      plus taxes (excluding ad valorem taxes)                     $__________

_____ quarter _____
      net income (12)                                             $__________
      plus minority interests                                     $__________
      less extraordinary gains                                    ($_________)
      plus extraordinary losses                                   $__________
      plus depreciation and amortization                          $__________
      plus losses from sales or joint ventures                    $__________
      less gains from sales or joint ventures                     ($_________)
      less decreases in deferred taxes
          and non-cash items                                      ($_________)
      plus increases in deferred taxes
          and non-cash items                                      $__________
      plus interest expense                                       $__________
      plus letter of credit fees on
          on tax exempt bonds                                     $__________
      plus taxes (excluding ad valorem taxes)                     $__________

          Consolidated Income Available
          for Debt Service
          (last 4 Fiscal Quarters)                                $
                                                                  ===========

--------
(12)  Excluding equity in and income and losses of joint ventures.

<PAGE>
                                                                   Schedule - 4
                                                                   ------------
                       Income Available For Debt Service
                       ---------------------------------
                        (for the current calendar year)

first quarter
      net income (13)                                             $__________
      plus minority interests                                     $__________
      less extraordinary gains                                    ($_________)
      plus extraordinary losses                                   $__________
      plus depreciation and amortization                          $__________
      plus losses from sales or joint ventures                    $__________
      less gains from sales or joint ventures                     ($_________)
      less decreases in deferred taxes
          and non-cash items                                      ($_________)
      plus increases in deferred taxes
          and non-cash items                                      $__________
      plus interest expense                                       $__________
      plus letter of credit fees on
          on tax exempt bonds                                     $__________
      plus taxes (excluding ad valorem taxes)                     $__________

second quarter
      net income (13)                                             $__________
      plus minority interests                                     $__________
      less extraordinary gains                                    ($_________)
      plus extraordinary losses                                   $__________
      plus depreciation and amortization                          $__________
      plus losses from sales or joint ventures                    $__________
      less gains from sales or joint ventures                     ($_________)
      less decreases in deferred taxes
          and non-cash items                                      ($_________)
      plus increases in deferred taxes
          and non-cash items                                      $__________
      plus interest expense                                       $__________
      plus letter of credit fees on
          on tax exempt bonds                                     $__________
      plus taxes (excluding ad valorem taxes)                     $__________

third quarter
      net income (13)                                             $__________
      plus minority interests                                     $__________
      less extraordinary gains                                    ($_________)
      plus extraordinary losses                                   $__________
      plus depreciation and amortization                          $__________
      plus losses from sales or joint ventures                    $__________
      less gains from sales or joint ventures                     ($_________)
      less decreases in deferred taxes
          and non-cash items                                      ($_________)
      plus increases in deferred taxes
          and non-cash items                                      $__________
      plus interest expense                                       $__________
      plus letter of credit fees on
          on tax exempt bonds                                     $__________
      plus taxes (excluding ad valorem taxes)                     $__________

fourth quarter
      net income (13)                                             $__________
      plus minority interests                                     $__________
      less extraordinary gains                                    ($_________)
      plus extraordinary losses                                   $__________
      plus depreciation and amortization                          $__________
      plus losses from sales or joint ventures                    $__________
      less gains from sales or joint ventures                     ($_________)
      less decreases in deferred taxes
          and non-cash items                                      ($_________)
      plus increases in deferred taxes
          and non-cash items                                      $__________
      plus interest expense                                       $__________
      plus letter of credit fees on
          on tax exempt bonds                                     $__________
      plus taxes (excluding ad valorem taxes)                     $__________

          Income Available for Debt Service
          (current calendar year)                                 $
                                                                  ===========

--------
(13)  Excluding equity in and income and losses of joint ventures.

<PAGE>

                                                                   Schedule - 5
                                                                   ------------

                         Total Unencumbered Asset Value
                         ------------------------------

(a)   Net Operating Income for the
      12 month period ending on the
      last day of the month just
      ended from each Multi-Family
      Property which is not subject
      to a Mortgage and which either was on
      average at least 90% economically
      occupied during, or with
      respect to which the
      Construction Period
      Termination Date occurred
      prior to the commencement
      of, such 12 month period                                    $__________

(b)   (a) divided by 0.09;                                        $__________
          -------

(c)   Net Operating Income for
      the 3 month period ending
      on the last day of the month
      just ended from each
      Multi-Family Property which
      is not subject to a Mortgage (14)
      with respect to which the
      Construction Period
      Termination Date did not
      occur prior to the commencement
      of the 12 month period ending on
      the last day of the month just
      ended                                                       $__________

(d)   (c) times 4.0                                               $__________
          -----

(e)   (d) divided by 0.09                                         $__________

(f)   aggregate amount of cash
      expenditures (including
      indirect costs internally
      allocated in accordance
      with GAAP) as of the last
      day of the month just ended
      on all Multi-Family Properties
      which are not encumbered by a
      Mortgage as to which the Construction
      Period Termination Date has
      not occurred as of such last
      day of the month just ended                                 $__________

(g)   (f) times 0.50____                                          $__________
          -----

Total Unencumbered Assets Value (sum of (b)
         plus (e) plus (g)                                        $
         ----     ----                                             ==========

--------
(14) Exclude  the  Properties  which are  excluded  in the  definition  of Total
     Unencumbered Assets Value.

<PAGE>
                                                                   Schedule - 6
                                                                   ------------

                             Unsecured Funded Debt (15)
                             ---------------------

                                      INTEREST       FINAL
                                      RATE (16)      MATURITY       TOTAL
                                      ---------      --------       -----

Long-Term Debt
--------------

----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------

Current Maturities of Long-Term Debt
------------------------------------

----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
----------------------------------    --------       --------       $---------
     Total Current Maturities
     of Long-Term Debt                                              $---------

--------
(15) Include  only Debt which is not  secured by a Mortgage,  other  than,  with
     respect to the Wachovia LC Properties, any Permitted Encumbrances.

(16) If rate is fixed, insert contract rate. If rate is floating, state that.

<PAGE>

                                                                   Schedule - 7
                                                                   ------------
                           Consolidated Fixed Charges
                           --------------------------

___  quarter ___

     interest expense                                             $__________
     scheduled principal payments (17)                            $__________
     preferred dividends paid or accrued         $__________

     Total                                                        $__________

___  quarter ___

     interest expense                                             $__________
     scheduled principal payments (17)                            $__________
     preferred dividends paid or accrued         $__________

     Total                                                        $__________

___  quarter ___

     interest expense                                             $__________
     scheduled principal payments (17)                            $__________
     preferred dividends paid or accrued         $__________

     Total                                                        $__________

___ quarter ___

     interest expense                                             $__________
     scheduled principal payments (17)                            $__________
     preferred dividends paid or accrued         $__________

     Total                                                        $__________

--------
(17) Excluding balloon payments payable at maturity.

<PAGE>

                                                                     EXHIBIT G
                                                                     ---------

                        GABLES REALTY LIMITED PARTNERSHIP

                               CLOSING CERTIFICATE
                               -------------------

     Reference is made to the Second Amended and Restated Credit  Agreement (the
"Credit  Agreement")  dated as of August 14, 2000,  among Gables Realty  Limited
Partnership,   the  Banks  listed   therein,   and  Wachovia   Bank,   N.A.,  as
Administrative  Agent,  First Union National Bank, as Syndication Agent, and The
Chase Manhattan Bank, as Documentation Agent. Capitalized terms used herein have
the meanings ascribed thereto in the Credit Agreement.

     Pursuant    to    Section     3.01(e)    of    the    Credit     Agreement,
------------------------------, the duly authorized ------------- of the General
Partner,  hereby certifies to the Administrative Agent and the Banks that (i) no
Default has  occurred  and is  continuing  as of the date  hereof,  and (ii) the
representations  and warranties  contained in Article V of the Credit  Agreement
are true on and as of the date hereof.

     Certified as of August 14, 2000.

                                 GABLES REALTY LIMITED PARTNERSHIP
                                                                          (SEAL)

                                 By:  Gables GP, Inc., its sole general partner

                                 By:___________________________________________
                                    [Name and title of Executive Officer,
                                    other than Secretary]

<PAGE>

                                                                      EXHIBIT H
                                                                      ---------

                           BORROWING BASE CERTIFICATE
                           --------------------------

     Reference is made to the Second Amended and Restated Credit Agreement dated
as of August 14, 2000 (as modified and  supplemented  and in effect from time to
time, the "Credit Agreement") among Gables Realty Limited Partnership, the Banks
from time to time parties  thereto and Wachovia  Bank,  N.A., as  Administrative
Agent,  First Union National Bank, as Syndication Agent, and The Chase Manhattan
Bank,  as  Documentation  Agent.  Capitalized  terms used herein  shall have the
meanings ascribed thereto in the Credit Agreement.

     Pursuant   to  Section   [3.01(i)][5.01(h)]   of  the   Credit   Agreement,
_________________________,  the duly authorized  chief financial  officer of the
General Partner, hereby certifies to the Administrative Agent and the Banks that
(i) sufficient funds are available to complete all Eligible Properties now under
construction,  and (ii) the  calculation of the Borrowing Base contained in this
Borrowing  Base  Certificate  is true,  accurate  and  complete in all  material
respects as of _______________, ______.

          The calculation of the Borrowing Base is as follows:

     (i)  (a)  Net Operating Income for the 12 month
               period ending on the last day of the
               month just ended from each Eligible
               Property which either was on
               average at least 90% economically
               occupied during, or with respect to
               which the Construction Period
               Termination Date occurred prior
               to the commencement of, such
               12 month period (18)                               $__________

          (b)  product of 7.22222 times (i)(a)                    $__________
                                  -----

     (ii) (a)  Net Operating Income for the 3 month
               period ending on the last day of the
               month just ended from each Eligible
               Property with respect to which
               the Construction Period Termination
               Date did not occur prior to the
               commencement of the 12 month period
               ending on the last day of the month
               just ended                                         $__________

          (b)  product of 28.88889 times (ii)(a)                  $__________
                                   -----

     (iii)(a)  aggregate amount of cash expenditures
               (including indirect costs internally
               allocated in accordance with GAAP)
               as of the last day of the month just
               ended on all Eligible Properties
               which consist of Properties as
               to which the Construction Period
               Termination Date has not occurred
               as of such last day of the month
               just ended                                         $__________

          (b)  20% of amount in (iii)(a)                          $__________

          (c)  amount in excess of amount in (iii)(b)
               for all Eligible Properties included in (iii)(a)
               for undeveloped land                               $__________

          (d)  (iii)(a) less (iii)(c)                             $__________
                        ----

          (e)  product of 0.50 times (iii)(d)                     $__________
                               -----

          (f)  aggregate amount of Commitments                    $__________

          (g)  30% of (iii)(f)                                    $__________

          (h)  lesser of (iii)(e) and (iii)(g)                    $__________

--------
(18) If an Eligible Property  satisfies the criteria set forthin both clause (i)
     and in clause (ii), it shall be included in the calculations only in clause
     (i).

<PAGE>

                                                                      EXHIBIT H
                                                                      ---------
                                                                      (cont'd.)

     (iv) aggregate amount of all outstanding
          unsecured Consolidated Debt, including
          standby letters of credit, other than
          the outstanding balance under this
          Agreement.                                              $__________

BORROWING BASE (sum of (i)(b), plus (ii)(b), plus
                               ----          ----
(iii)(h) and less (iv)                                            $__________
             ----
                              GABLES REALTY LIMITED PARTNERSHIP
                                                                     (SEAL)

                              By: Gables GP, Inc., its sole general partner

                              By: _____________________________________________
                                  [chief financial officer]

<PAGE>

                                                                     EXHIBIT I
                                                                     ---------

                                    GUARANTY
                                    --------

     THIS GUARANTY  (this  "Guaranty")  is made as of August 14, 2000, by GABLES
GP, INC., a Texas  corporation,  and GABLES  RESIDENTIAL TRUST, a Maryland Trust
(each a  "Guarantor",  and  collectively,  the  "Guarantors",  which terms shall
include any  subsidiary of Gables  Realty  Limited  Partnership  which becomes a
Guarantor pursuant to Section 15 hereof and Section 5.23 of the Credit Agreement
referred to below) in favor of the Administrative Agent, for the ratable benefit
of the Banks, under the Credit Agreement referred to below;

                               W I T N E S S E T H

     WHEREAS, GABLES REALTY LIMITED PARTNERSHIP, a Delaware limited partnership,
and GABLES-TENNESSEE  PROPERTIES,  L.L.C., a Tennessee limited liability company
(collectively,  the "Borrowers"),  WACHOVIA BANK, N.A., as Administrative  Agent
(the "Administrative  Agent"), First Union National Bank, as Syndications Agent,
The Chase Manhattan Bank, as  Documentation  Agent, and certain other Banks from
time to time party  thereto  have  entered  into a certain  Second  Amended  and
Restated  Credit  Agreement dated as of even date herewith (as it may be amended
or  modified  further  from time to time,  the "Credit  Agreement"),  providing,
subject to the terms and conditions thereof, for extensions of credit to be made
by the Banks to the Borrowers which will the benefit the Guarantors;

     WHEREAS,  it is required by Section 3.01(b) of the Credit  Agreement,  that
the Guarantors  execute and deliver this Guaranty  whereby the Guarantors  shall
guarantee the payment when due of all principal, interest and other amounts that
shall be at any time payable by the Borrowers  under the Credit  Agreement,  the
Notes and the other Loan Documents; and

     WHEREAS,  in  consideration  of the  financial  and other  support that the
Borrowers have  provided,  and such financial and other support as the Borrowers
may in the future provide,  to the Guarantors,  whether  directly or indirectly,
and in order to induce the Banks and the Administrative  Agent to enter into the
Credit Agreement, the Guarantors are willing to guarantee the obligations of the
Borrowers under the Credit Agreement, the Notes, and the other Loan Documents;

     NOW,  THEREFORE,  in  consideration  of the  premises  and  other  good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the parties hereto agree as follows:

     SECTION 1.  Definitions.  Terms  defined in the  Credit  Agreement  and not
otherwise defined herein have,
as used herein, the respective meanings provided for therein.

     SECTION 2.  Representations  and  Warranties.  The  Guarantors  incorporate
herein by reference  as fully as if set forth herein all of the  representations
and warranties pertaining to the Guarantors contained in Article V of the Credit
Agreement  (which  representations  and warranties  shall be deemed to have been
renewed by the Guarantors upon each Borrowing under the Credit Agreement).

     SECTION 3. Covenants. The Guarantors covenant that, so long as any Bank has
any  Commitment  outstanding  under the Credit  Agreement or any amount  payable
under the Credit Agreement or any Note shall remain unpaid,  the Guarantors will
fully  comply  with  those  covenants  set  forth in  Article  VI of the  Credit
Agreement pertaining to the Guarantors, and the Guarantors incorporate herein by
reference as fully as if set forth herein all of such covenants.

     SECTION 4. The Guaranty.  The Guarantors hereby unconditionally and jointly
and  severally  guarantee (i) the full and punctual  payment  (whether at stated
maturity,  upon  acceleration  or otherwise) of the principal of and interest on
each Note issued by the Borrowers pursuant to the Credit Agreement, and the full
and punctual  payment of all other amounts  payable by the  Borrowers  under the
Credit Agreement,  including, without limitation, all Syndicated Loans and Money
Market Loans and interest thereon, all compensation and indemnification  amounts
and fees payable pursuant to the Credit Agreement and the Administrative Agent's
Letter  Agreement,  and (ii) the timely  performance of all other obligations of
the Borrower under the Credit Agreement and the other Loan Documents (all of the
foregoing   obligations  being  referred  to  collectively  as  the  "Guaranteed
Obligations").  Upon failure by the Borrowers to pay  punctually any such amount
or  perform  such  obligations,  each of the  Guarantors  agrees  that it  shall
forthwith  on demand  pay the  amount not so paid at the place and in the manner
specified  in the Credit  Agreement,  the  relevant  Note or the  relevant  Loan
Document,  as the case may be, or perform such obligation in accordance with the
terms and  conditions  therefor  specified in the Credit  Agreement or the other
Loan Documents, and pay all costs of collection,  including reasonable attorneys
fees;  provided  that,   notwithstanding  the  provisions  of  O.C.G.A.  Section
13-1-11(a)(2) to the contrary, the Guarantors shall not be obligated to pay more
than the attorneys fees actually incurred in connection with such collection.
<PAGE>

     SECTION  5.  Guaranty  Unconditional.  The  obligations  of the  Guarantors
hereunder  shall  be  unconditional  and  absolute  and,  without  limiting  the
generality  of the  foregoing,  shall not be released,  discharged  or otherwise
affected by:

          (i) any extension, renewal, settlement,  compromise, waiver or release
     in respect of any obligation of the Borrowers  under the Credit  Agreement,
     any Note, or any other Loan  Document,  by operation of law or otherwise or
     any obligation of any other guarantor of any of the Guaranteed Obligations;

          (ii) any  modification  or  amendment of or  supplement  to the Credit
     Agreement, any Note, or any other Loan Document;

          (iii)  any  release,  nonperfection  or  invalidity  of any  direct or
     indirect  security,  if any, for any obligation of the Borrowers  under the
     Credit  Agreement,  any Note, any Loan Document,  or any obligations of any
     other guarantor of any of the Guaranteed Obligations;

          (iv) any  change in the  partnership  structure  or  ownership  of the
     Borrowers or corporate structure or ownership of any other Guarantor or any
     other  guarantor of any of the Guaranteed  Obligations,  or any insolvency,
     bankruptcy,  reorganization  or  other  similar  proceeding  affecting  the
     Borrower,  or any other  Guarantor or any other guarantor of the Guaranteed
     Obligations,  or its assets or any  resulting  release or  discharge of any
     obligation of the Borrower,  or any other  Guarantor or any other guarantor
     of any of the Guaranteed Obligations;

          (v) the  existence  of any  claim,  setoff or other  rights  which the
     Guarantors may have at any time against the Borrowers,  any other Guarantor
     or  any  other  guarantor  of  any  of  the  Guaranteed  Obligations,   the
     Administrative  Agent, any Bank or any other Person,  whether in connection
     herewith or any unrelated transactions,  provided that nothing herein shall
     prevent  the  assertion  of any such claim by separate  suit or  compulsory
     counterclaim;

          (vi) any  invalidity  or  unenforceability  relating to or against the
     Borrowers,  or any other  Guarantor  or any other  guarantor  of any of the
     Guaranteed Obligations, for any reason related to the Credit Agreement, any
     other Loan Document,  or any other Guaranty, or any provision of applicable
     law or regulation  purporting to prohibit the payment by the Borrowers,  or
     any other Guarantor or any other  guarantor of the Guaranteed  Obligations,
     of the principal of or interest on any Note or any other amount  payable by
     the  Borrowers  under the Credit  Agreement,  the Notes,  or any other Loan
     Document; or

          (vii)  any other  act or  omission  to act or delay of any kind by the
     Borrowers,  any other  Guarantor or any other  guarantor of the  Guaranteed
     Obligations,  the Administrative Agent, any Bank or any other Person or any
     other  circumstance  whatsoever which might, but for the provisions of this
     paragraph,  constitute  a legal or equitable  discharge of the  Guarantor's
     obligations hereunder.

     SECTION 6.  Discharge Only Upon Payment In Full;  Reinstatement  In Certain
Circumstances.  The Guarantors' obligations hereunder shall remain in full force
and effect until all Guaranteed Obligations shall have been paid in full and the
Commitments  under the Credit Agreement shall have terminated or expired.  If at
any time any  payment of the  principal  of or interest on any Note or any other
amount  payable by the  Borrowers  under the Credit  Agreement or any other Loan
Document  is  rescinded  or must be  otherwise  restored  or  returned  upon the
insolvency,  bankruptcy or  reorganization  of the  Borrowers or otherwise,  the
Guarantors'  obligations  hereunder  with  respect  to  such  payment  shall  be
reinstated as though such payment had been due but not made at such time.

     SECTION 7. Waiver of Notice by the Guarantors.  The Guarantors  irrevocably
waive acceptance hereof, presentment, demand, protest and, to the fullest extent
permitted by law, any notice not provided for herein, as well as any requirement
that at any time any action be taken by any Person  against the  Borrowers,  any
other  Guarantor or any other  guarantor of the Guaranteed  Obligations,  or any
other Person.

     SECTION 8. Stay of Acceleration. If acceleration of the time for payment of
any amount payable by the Borrowers under the Credit Agreement,  any Note or any
other Loan Document is stayed upon the insolvency,  bankruptcy or reorganization
of the Borrowers,  all such amounts otherwise subject to acceleration  under the
terms  of the  Credit  Agreement,  any Note or any  other  Loan  Document  shall
nonetheless  be payable by the Guarantors  hereunder  forthwith on demand by the
Administrative Agent made at the request of the Required Banks.

<PAGE>

     SECTION 9. Notices.  All notices,  requests and other communications to any
party  hereunder  shall be  given or made by  telecopier  or other  writing  and
telecopied  or mailed or delivered  to the intended  recipient at its address or
telecopier  number set forth on the signature pages hereof or such other address
or  telecopy  number as such party may  hereafter  specify  for such  purpose by
notice to the Administrative  Agent in accordance with the provisions of Section
8.01 of the Credit Agreement. Except as otherwise provided in this Guaranty, all
such communications  shall be deemed to have been duly given when transmitted by
telecopier,  or  personally  delivered  or,  in the case of a mailed  notice,  3
Domestic  Business Days after such  communication is deposited in the mails with
first class postage prepaid, in each case given or addressed as aforesaid.

     SECTION 10. No Waivers. No failure or delay by the Administrative  Agent or
any Banks in exercising any right, power or privilege hereunder shall operate as
a waiver thereof nor shall any single or partial  exercise  thereof preclude any
other or further exercise  thereof or the exercise of any other right,  power or
privilege.  The  rights  and  remedies  provided  in this  Guaranty,  the Credit
Agreement,  the Notes,  and the other Loan Documents shall be cumulative and not
exclusive of any rights or remedies provided by law.

     SECTION 11. Successors and Assigns. This Guaranty is for the benefit of the
Administrative  Agent and the Banks and their respective  successors and assigns
and in the event of an  assignment  of any  amounts  payable  under  the  Credit
Agreement,  the Notes, or the other Loan Documents, the rights hereunder, to the
extent applicable to the indebtedness so assigned,  may be transferred with such
indebtedness.  This Guaranty may not be assigned by the  Guarantors  without the
prior written consent of the  Administrative  Agent and the Required Banks,  and
shall be  binding  upon the  Guarantors  and  their  respective  successors  and
permitted assigns.

     SECTION 12.  Changes in Writing.  Neither this  Guaranty nor any  provision
hereof may be changed,  waived,  discharged  or terminated  orally,  but only in
writing signed by the Guarantors and the Administrative  Agent, with the consent
of the Required Banks.

     SECTION 13.  GOVERNING  LAW;  SUBMISSION  TO  JURISDICTION;  WAIVER OF JURY
TRIAL.  THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE  WITH THE
LAW OF THE STATE OF GEORGIA.  EACH OF THE GUARANTOR AND THE ADMINISTRATIVE AGENT
HEREBY SUBMITS TO THE  NONEXCLUSIVE  JURISDICTION  OF THE UNITED STATES DISTRICT
COURT FOR THE  NORTHERN  DISTRICT  OF GEORGIA  AND OF ANY  GEORGIA  STATE  COURT
SITTING IN ATLANTA,  GEORGIA AND FOR PURPOSES OF ALL LEGAL  PROCEEDINGS  ARISING
OUT OF OR RELATING TO THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY. THE
GUARANTORS  IRREVOCABLY  WAIVE,  TO THE FULLEST  EXTENT  PERMITTED  BY LAW,  ANY
OBJECTION WHICH ANY OF THEM MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE
OF ANY SUCH  PROCEEDING  BROUGHT  IN SUCH A COURT  AND ANY  CLAIM  THAT ANY SUCH
PROCEEDING  BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN  INCONVENIENT  FORUM.
EACH OF THE GUARANTORS AND THE ADMINISTRATIVE  AGENT HEREBY IRREVOCABLY  WAIVES,
TO THE FULLEST  EXTENT  PERMITTED  BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY  LEGAL  PROCEEDING  ARISING  OUT OF OR  RELATING  TO  THIS  GUARANTY  OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

     SECTION 14. Taxes,  etc. All payments  required to be made by the Guarantor
hereunder shall be made without setoff or counterclaim and free and clear of and
without  deduction  or  withholding  for or on account of, any present or future
taxes, levies,  imposts, duties or other charges of whatsoever nature imposed by
any government or any political or taxing authority  pursuant and subject to the
provisions of Section  2.12(c) of the Credit  Agreement,  the terms of which are
incorporated  herein by reference as to the  Guarantors as fully as if set forth
herein, and for such purposes, the rights and obligations of the Borrowers under
such Section shall devolve to the Guarantors as to payments  required to be made
by the Guarantors hereunder.

     SECTION 15. Additional Guarantors;  Release of Guarantors.  Section 5.23 of
the  Credit  Agreement  provides  that  Significant   Subsidiaries  must  become
Guarantors, and Subsidiaries which are not Significant Subsidiaries may elect to
become  Guarantors,  by, among other  things,  executing  and  delivering to the
Administrative  Agent a  counterpart  of this  Guaranty.  Any  Subsidiary  which
executes and delivers to the Administrative Agent a counterpart of this Guaranty
shall be a Guarantor for all purposes  hereunder.  Under  certain  circumstances
described  in the  last  sentence  of  Section  5.11  of the  Credit  Agreement,
Subsidiaries  which  are  not  Significant  Subsidiaries  may  obtain  from  the
Administrative  Agent a written  release  from  this  Guaranty  pursuant  to the
provisions of such sentence,  and upon obtaining such written release,  any such
Subsidiary  shall no longer  be a  Guarantor  hereunder.  Each  other  Guarantor
consents and agrees to any such  release and agrees that no such  release  shall
affect its obligations hereunder.

<PAGE>

     SECTION  16.  Other  Waivers  by  the  Guarantors.  The  Guarantors  hereby
expressly waive, renounce, and agree not to assert, any right, claim or cause of
action, including,  without limitation, a claim for reimbursement,  subrogation,
indemnification  or otherwise,  against the Borrower arising out of or by reason
of this Guaranty or the  obligations  of the  Guarantors  hereunder,  including,
without  limitation,  the  payment  or  securing  or  purchasing  of  any of the
Guaranteed Obligations by the Guarantors. The waiver, renunciation and agreement
contained  in the  immediately  preceding  sentence  is for the  benefit  of the
Administrative  Agent and the Banks and also for the benefit of the Borrower who
may assert the benefits thereof as a third-party beneficiary, and the Guarantors
may be  released  from  such  waiver,  renunciation  and  agreement  only by the
execution and delivery,  by the Administrative Agent, the Required Banks and the
Borrower, of an instrument expressly releasing the Guarantors therefrom.

     IN WITNESS  WHEREOF,  the  Guarantors  have caused this Guaranty to be duly
executed,  under  seal,  by its  authorized  officer as of the date first  above
written.

                                 GABLES GP, INC.
                                                                        (SEAL)

                                 By:___________________________________________
                                    Marvin R. Banks, Jr., Senior Vice President

                                 Address:
                                 c/o Gables Realty Limited Partnership
                                 2859 Paces Ferry Road
                                 Suite 1450
                                 Atlanta, Georgia 30339
                                 Attention: Marvin R. Banks, Jr.
                                 Telecopier number: 770-438-5559
                                 Confirmation number: 770-438-5501

                                 GABLES RESIDENTIAL TRUST
                                                                         (SEAL)

                                 By:___________________________________________
                                    Title:

                                 Address:
                                 c/o Gables Realty Limited Partnership
                                 2859 Paces Ferry Road
                                 Suite 1450
                                 Atlanta, Georgia 30339
                                 Attention: Marvin R. Banks, Jr.
                                 Telecopier number: 770-438-5559
                                 Confirmation number: 770-438-5501

<PAGE>

                                                                     EXHIBIT J
                                                                     ---------

                             CONTRIBUTION AGREEMENT
                             ----------------------

     THIS CONTRIBUTION AGREEMENT (this "Agreement") is entered into as of August
14, 2000 by and between GABLES REALTY LIMITED  PARTNERSHIP,  a Delaware  limited
partnership (the "Parent") and GABLES-TENNESSEE PROPERTIES,  L.L.C., a Tennessee
limited   liability   company   (together  with  the  Parent,   individually  or
collectively, as the context shall require, the "Principals"),  GABLES GP, INC.,
a  Texas   corporation,   and  GABLES   RESIDENTIAL   TRUST,  a  Maryland  trust
(collectively,  the "Guarantors" and, together with any subsidiary of the Parent
which becomes a Guarantor  pursuant to the last paragraph hereof,  Section 15 of
the Guaranty referred to below and Section 5.23 of the Credit Agreement referred
to below).  The Principals and each of the Guarantors are sometimes  hereinafter
referred to  individually  as a  "Contributing  Party" and  collectively  as the
"Contributing Parties").

                              W I T N E S S E T H:

     WHEREAS,  pursuant  to that  certain  Second  Amended and  Restated  Credit
Agreement,  dated as of even date herewith among the Principals, the Banks party
thereto and Wachovia Bank, N.A., as Administrative  Agent,  First Union National
Bank, as Syndication  Agent, The Chase Manhattan Bank, as  Documentation  Agent,
and certain other Banks from time to time party thereto (such agreement,  as the
same may from time to time be amended,  modified,  restated or  extended,  being
hereinafter referred to as the "Credit Agreement"; capitalized terms used herein
shall have the meanings  ascribed  thereto in the Credit  Agreement),  the Banks
have agreed to extend financial accommodations to the Principal;

     WHEREAS,  as  a  condition,   among  others,  to  the  willingness  of  the
Administrative Agent and the Banks to enter into the Credit Agreement, they have
required that each Guarantor execute and deliver that certain Guaranty, dated as
of even  date  herewith  (such  agreement,  as the same may from time to time be
amended,  modified,  restated or extended,  being hereinafter referred to as the
"Guaranty"),  pursuant to which, among other things, the Guarantors have jointly
and severally  agreed to guarantee the "Guaranteed  Obligations"  (as defined in
the Guaranty); and

     WHEREAS,  each Guarantor other than Gables Residential Trust is a direct or
indirect  subsidiary of the Parent and is engaged in businesses related to those
of the Parent and each other  Guarantor  which is a Subsidiary,  and each of the
Guarantors   will  derive   direct  or  indirect   economic   benefit  from  the
effectiveness and existence of the Credit Agreement;

     NOW,  THEREFORE,  in  consideration  of  the  premises  and  the  covenants
hereinafter contained, and to induce each Subsidiary Guarantor to enter into the
Guaranty, it is agreed as follows:

     To the extent that any Guarantor shall, under the Guaranty,  make a payment
(a  "Guarantor  Payment")  of a portion  of the  Guaranteed  Obligations,  then,
without limiting its rights of subrogation against the Principas, such Guarantor
shall be entitled to contribution  and  indemnification  from, and be reimbursed
by,  each  of the  other  Contributing  Parties  in an  amount,  for  each  such
Contributing Party, equal to a fraction of such Guarantor Payment, the numerator
of  which  fraction  is  such  Contributing  Party's  Allocable  Amount  and the
denominator  of  which  is  the  sum  of  the  Allocable  Amounts  of all of the
Contributing Parties.

     As  of  any  date  of  determination,   the  "Allocable   Amount"  of  each
Contributing Party shall be equal to the maximum amount of liability which could
be asserted  against  such  Contributing  Party  hereunder  with  respect to the
applicable  Guarantor  Payment  without (i) rendering  such  Contributing  Party
"insolvent" within the meaning of Section 101(31) of the Federal Bankruptcy Code
(the "Bankruptcy Code") or Section 2 of either the Uniform  Fraudulent  Transfer
Act (the "UFTA") or the Uniform  Fraudulent  Conveyance  Act (the "UFCA"),  (ii)
leaving such  Contributing  Party with  unreasonably  small capital,  within the
meaning  of  Section  548 of the  Bankruptcy  Code or  Section  4 of the UFTA or
Section 5 of the UFCA,  or (iii) leaving such  Contributing  Party unable to pay
its debts as they become due within the meaning of Section 548 of the Bankruptcy
Code or Section 4 of the UFTA or Section 6 of the UFCA.

     This  Agreement  is  intended  only to define  the  relative  rights of the
Contributing  Parties, and nothing set forth in this Agreement is intended to or
shall impair the  obligations of the Guarantors,  jointly and severally,  to pay
any  amounts,  as and when the same shall  become due and payable in  accordance
with the terms of the Guaranty.

<PAGE>

     The  parties  hereto  acknowledge  that  the  rights  of  contribution  and
indemnification  hereunder shall constitute assets in favor of each Guarantor to
which such contribution and indemnification is owing.

     This  Agreement  shall become  effective  upon its execution by each of the
Contributing  Parties and shall continue in full force and effect and may not be
terminated  or  otherwise  revoked by any  Contributing  Party  until all of the
Guaranteed  Obligations  shall  have been  indefeasibly  paid in full (in lawful
money of the United States of America) and discharged  and the Credit  Agreement
and financing  arrangements evidenced and governed by the Credit Agreement shall
have been terminated.  Each Contributing  Party agrees that if,  notwithstanding
the foregoing, such Contributing Party shall have any right under applicable law
to terminate or revoke this Agreement, and such Contributing Party shall attempt
to  exercise  such  right,  then such  termination  or  revocation  shall not be
effective until a written notice of such revocation or termination, specifically
referring hereto and signed by such Contributing  Party, is actually received by
each of the other Contributing  Parties and by the  Administrative  Agent at its
notice address set forth in the Credit  Agreement.  Such notice shall not affect
the right or power of any Contributing  Party to enforce rights arising prior to
receipt of such written notice by each of the other Contributing Parties and the
Administrative  Agent. If any Bank grants  additional loans to the Principals or
takes other action giving rise to additional  Guaranteed  Obligations  after any
Contributing Party has exercised any right to terminate or revoke this Agreement
but before the Administrative  Agent receives such written notice, the rights of
each other Contributing Party to contribution and  indemnification  hereunder in
connection  with any  Guarantor  Payments  made with  respect  to such  loans or
Guaranteed  Obligations  shall be the same as if such  termination or revocation
had not occurred.

     Section 5.23 of the Credit Agreement provides that Significant Subsidiaries
must become Guarantors,  and Subsidiaries which are not Significant Subsidiaries
may elect to become Guarantors, by, among other things, executing and delivering
to  the  Administrative  Agent  a  counterpart  of  the  Guaranty  and  of  this
Contribution  Agreement.  Any  Subsidiary  which  executes  and  delivers to the
Administrative  Agent a  counterpart  of the Guaranty  and of this  Contribution
Agreement  shall be a Subsidiary  Guarantor  for all purposes  hereunder.  Under
certain  circumstances  described  in the last  sentence of Section  5.11 of the
Credit Agreement, Subsidiaries which are not Significant Subsidiaries may obtain
from the  Administrative  Agent a written release from the Guaranty  pursuant to
the provisions of such sentence,  and upon obtaining such written  release,  any
such Subsidiary shall no longer be a Subsidiary  Guarantor or Contributing Party
hereunder,  and such release  shall  automatically  and without  further  action
constitute a release by each other Contributing Party of all obligations of such
Subsidiary hereunder. Each other Subsidiary Guarantor consents and agrees to any
such  release  and agrees  that no such  release  shall  affect its  obligations
hereunder, except as to the Subsidiary so released.

     IN WITNESS WHEREOF, each Contributing Party has executed and delivered this
Agreement, under seal, as of the date first above written.

                                 GABLES REALTY LIMITED PARTNERSHIP
                                                                         (SEAL)

                                 By:  Gables GP, Inc., its sole general partner

                                 By:___________________________________________
                                    Marvin R. Banks, Jr., Senior Vice President

                                    Gables Realty Limited Partnership
                                    2859 Paces Ferry Road
                                    Suite 1450
                                    Atlanta, Georgia 30339
                                    Attention: Marvin R. Banks, Jr.
                                    Telecopier number: 770-438-5559
                                    Confirmation number: 770-438-5501

                                 GABLES GP, INC.
                                                                         (SEAL)

                                 By:___________________________________________
                                    Marvin R. Banks, Jr., Senior Vice President

                                    Address:
                                    Gables Realty Limited Partnership
                                    2859 Paces Ferry Road
                                    Suite 1450
                                    Atlanta, Georgia 30339
                                    Attention: Marvin R. Banks, Jr.
                                    Telecopier number: 770-438-5559
                                    Confirmation number: 770-438-5501

<PAGE>

                                                                     EXHIBIT K
                                                                     ---------

                           MONEY MARKET QUOTE REQUEST
                           --------------------------

Wachovia Bank, N.A.,
  as Administrative Agent
191 Peachtree Street, N.E.
Atlanta, Georgia  30303-1757
Attention:  Real Estate Finance Division

     Re:  Money Market Quote Request

     This Money Market Quote Request is given in accordance with Section 2.03 of
the Second  Amended and  Restated  Credit  Agreement  (as amended to date and as
hereafter  amended or modified from time to time, the "Credit  Agreement") dated
as  of  August  14,  2000,   among  Gables  Realty   Limited   Partnership   and
Gables-Tennessee  Properties,  L.L.C., as the Borrowers,  the Banks from time to
time parties thereto,  and Wachovia Bank, N.A., as Administrative  Agent,  First
Union National  Bank, as Syndication  Agent,  and The Chase  Manhattan  Bank, as
Documentation  Agent.  Terms defined in the Credit  Agreement are used herein as
defined therein.

     The  undersigned  Borrower hereby  requests that the  Administrative  Agent
obtain quotes for a Money Market Borrowing based upon the following:

     1.   The   proposed   date  of  the  Money   Market   Borrowing   shall  be
          ______________, 19_____ (the "Money Market Borrowing Date"). (1)

     2.   The aggregate amount of the Money Market Borrowing shall be $ . (2)

     3.   The Stated Maturity  Date(s)  applicable to the Money Market Borrowing
          shall be days. (3)

                                 Very truly yours,

                                 GABLES REALTY LIMITED PARTNERSHIP
                                                                         (SEAL)

                                 By:  Gables GP, Inc., its sole general partner

                                 By:___________________________________________
                                    [Name and title of Executive Officer,
                                     other than Secretary]

                                 [GABLES-TENNESSEE PROPERTIES, L.L.C.
                                                                          (SEAL)

                                 By:  Gables Realty Limited Partnership,
                                      member
                                 By:  Gables GP, Inc., its sole general partner

                                 By:___________________________________________
                                    Marvin R. Banks, Jr., Senior Vice President

--------
(1)  The date must be a Euro-Dollar Business Day.

(2)  The amount of the Money Market  Borrowing is subject to Section 2.03(a) and
     (b).

(3)  The Stated Maturity Dates are subject to Section 2.03(b)(iii). The Borrower
     may request that up to 3 different  Stated  Maturity Dates be applicable to
     any Money Market  Borrowing,  provided  that (i) each such Stated  Maturity
     Date shall be deemed to be a separate  Money Market Quote  Request and (ii)
     the Borrower shall specify the amounts of such Money Market Borrowing to be
     subject to each such different Stated Maturity Date.

<PAGE>
                                                                     EXHIBIT L
                                                                     ---------

                               MONEY MARKET QUOTE
                               ------------------

Wachovia Bank, N.A.,
  as Administrative Agent
191 Peachtree Street, N.E.
Atlanta, Georgia 30303-1757
Attention:  Real Estate Finance Division

     Re:      Money Market Quote to Gables Realty Limited Partnership
              -------------------------------------------------------

     This Money Market Quote is given in accordance with Section  2.03(c)(ii) of
the Second  Amended and  Restated  Credit  Agreement  (as amended to date and as
hereafter  amended or modified from time to time, the "Credit  Agreement") dated
as  of  August  14,  2000,   among  Gables  Realty   Limited   Partnership   and
Gables-Tennessee  Properties,  L.L.C., as the Borrowers), the Banks from time to
time parties thereto,  and Wachovia Bank, N.A., as Administrative  Agent,  First
Union National  Bank, as Syndication  Agent,  and The Chase  Manhattan  Bank, as
Documentation  Agent.  Terms defined in the Credit  Agreement are used herein as
defined therein.

     In  response  to  the   Borrower's   Money  Market  Quote   Request   dated
_______________,  19____, we hereby make the following Money Market Quote on the
following terms:

     1.   Quoting Bank:

     2.   Person to contact at Quoting Bank:

     3.   Date of Money Market Borrowing:   (1)

     4.   We hereby offer to make Money Market Loan(s) in the following  maximum
          principal  amounts  for  the  following  Interest  Periods  and at the
          following rates:

Maximum                  Stated
Principal                Maturity
Amount (2)               Date (3)                 Rate Per Annum (4)
----------               --------                 ------------------

     We understand  and agree that the offer(s) set forth above,  subject to the
satisfaction  of the applicable  conditions  set forth in the Credit  Agreement,
irrevocably  obligate(s)  us to make the  Money  Market  Loan(s)  for  which any
offer(s) [is] [are] accepted,  in whole or in part (subject to the last sentence
of Section 2.03(c)(i) of the Credit Agreement).

                                         Very truly yours,

                                         [Name of Bank]

Dated:   __________________              By: _______________________
                                             Authorized Officer

--------
(1)  As specified in the related Money Market Quote Request.

(2)  The principal  amount bid for each Stated  Maturity Date may not exceed the
     principal amount  requested.  Money Market Quotes must be made for at least
     $3,000,000 or a larger integral multiple of $1,000,000

(3)  The Stated Maturity Dates are subject to Section 2.03(b)(iii).

(4)  Subject to Section 2.03(c)(ii)(C).

<PAGE>
                                  Schedule  4.08
                                  --------------

                                   Subsidiaries
                                   ------------

ENTITY                                       TYPE OF ENTITY
------                                       --------------
Gables Residential Trust                     Maryland Trust
Gables Realty Limited Partnership            Delaware Limited Partnership
Gables - Tennessee Properties, L.L.C.        Tennessee Limited Liability Company
Gables GP, Inc.                              Texas Corporation
Gables East Construction, Inc.               Georgia Corporation
East Apartment Management, Inc.              Georgia Corporation
Gables Central Construction, Inc.            Texas Corporation
Central Apartment Management, Inc.           Texas Corporation
Candlewood Gen Par, Inc.                     Georgia Corporation
Candlewood - Indian Creek, L.P.              Georgia Limited Partnership
GRT Villas Gen Par, Inc.                     Georgia Corporation
  (formerly Candle Creek, Inc.)
GRT Villas Limited Partnership               Texas Limited Partnership
Pin Oak Green                                Texas General Partnership
Pin Oak Park Apartments                      Texas General Partnership
Gables Lions Head Limited                    Texas Limited Partnership
Gables Rivercrest II Limited                 Texas Limited Partnership
Kings Colony Associates, Ltd.                Florida Limited Partnership
San Michele Joint Venture                    Florida General Partnership
Hampton Place Joint Venture                  Florida General Partnership
CM Bay Associates                            Florida General Partnership
Hampton Lakes II Associates                  Florida General Partnership
San Remo Limited Partnership                 Florida Limited Partnership
Mizner I Limited Partnership                 Florida Limited Partnership
TCRDAD Vinings at Boynton Beach II           Florida Limited Partnership
  Limited Partnership
TCRDAD Wellington Limited Partnership        Florida Limited Partnership
Boynton Beach I Limited Partnership          Florida Limited Partnership
Hampton Lakes Associates                     Florida General Partnership
Town Colony Associates                       Florida General Partnership
Town Colony II Associates                    Florida General Partnership
Boca Place Associates, Ltd.                  Florida Limited Partnership

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