Document:

EXHIBIT
10.2

    

    SECOND
AMENDED AND RESTATED

    REVOLVING
CREDIT AGREEMENT

     

    Dated as
of March 31, 2010

     

    among

     

    MID-AMERICA
APARTMENT COMMUNITIES, INC. and

     

    MID-AMERICA
APARTMENTS, L.P.

     

    as
Borrower

     

    THE
LENDERS FROM TIME TO TIME PARTY HERETO

     

    and

     

    REGIONS
BANK

    as
Administrative Agent

     

    and

     

    REGIONS
CAPITAL MARKETS

    as Lead
Arranger and Sole Bookrunner

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE OF
CONTENTS

     

    
      
        
          	 
      	 
      	
                  Page

                
	 
      	 
      	 
      
	
                  1.

                	
                  DEFINITIONS

                	
                  1

                
	 
      	 
      	 
      
	 
      	
                  1.1

                	
                  Defined
      Terms

                	
                  1

                
	 
      	 
      	 
      	 
      
	 
      	
                  1.2

                	
                  Other
      Interpretive Provisions

                	
                  22

                
	 
      	 
      	 
      	 
      
	 
      	
                  1.3

                	
                  Accounting
      Terms

                	
                  22

                
	 
      	 
      	 
      	 
      
	 
      	
                  1.4

                	
                  Rounding

                	
                  23

                
	 
      	 
      	 
      	 
      
	 
      	
                  1.5

                	
                  Times
      of Day

                	
                  23

                
	 
      	 
      	 
      	 
      
	 
      	
                  1.6

                	
                  Letter
      of Credit Amounts

                	
                  23

                
	 
      	 
      	 
      	 
      
	
                  2.

                	
                  CREDIT
      FACILITY PROVISIONS

                	
                  23

                
	 
      	 
      	 
      
	 
      	
                  2.1

                	
                  General
      Revolving Loan Provisions

                	
                  23

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.1.1

                	
                  Limit

                	
                  23

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.1.2

                	
                  Procedures
      and Limits

                	
                  24

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.1.3

                	
                  Funding
      Procedures

                	
                  25

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  2.2

                	
                  Term
      of Credit Facility

                	
                  25

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.2.1

                	
                  Extension
      of Maturity

                	
                  25

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.2.2

                	
                  Termination/Reduction
      of Commitments

                	
                  26

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  2.3

                	
                  Interest
      Rate and Payment Terms

                	
                  26

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.1

                	
                  Borrower's
      Options

                	
                  27

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.2

                	
                  Selection
      To Be Made

                	
                  27

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.3

                	
                  Notice

                	
                  27

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.4

                	
                  If
      No Notice

                	
                  27

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.5

                	
                  Telephonic
      Notice

                	
                  27

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.6

                	
                  Limits
      On Options

                	
                  27

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.7

                	
                  Payment
      and Calculation of Interest

                	
                  27

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.8

                	
                  Mandatory
      Principal Payments

                	
                  28

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.9

                	
                  Prepayment

                	
                  28

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.10

                	
                  Maturity

                	
                  28

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.11

                	
                  Method
      of Payment; Date of Credit; Administrative Agent's
Clawback

                	
                  28

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.12

                	
                  Billings

                	
                  29

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.13

                	
                  Default
      Rate

                	
                  29

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.14

                	
                  Late
      Charges

                	
                  30

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.15

                	
                  Breakage
      Fees

                	
                  30

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.3.16

                	
                  Application
      of Payments

                	
                  30

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  2.4

                	
                  Loan
      Fees

                	
                  30

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.4.1

                	
                  Loan
      Fees

                	
                  30

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.4.2

                	
                  Facility
      Fee

                	
                  30

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  2.5

                	
                  Additional
      Provisions Related to Interest Rate Selection

                	
                  30

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.5.1

                	
                  Increased
      Costs

                	
                  30

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.5.2

                	
                  Capital
      Requirements

                	
                  31

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.5.3

                	
                  Illegality

                	
                  31

                

        

      

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      
        
          	 
      	 
      	
                  2.5.4

                	
                  Availability

                	
                  32

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.5.5

                	
                  Base
      Rate Advances

                	
                  32

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.5.6

                	
                  Delay
      in Requests

                	
                  32

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.5.7

                	
                  Mitigation

                	
                  32

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.5.8

                	
                  Survival

                	
                  32

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  2.6

                	
                  Letters
      of Credit

                	
                  33

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.6.1

                	
                  The
      Letter of Credit Commitment

                	
                  33

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.6.2

                	
                  Procedures
      for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of
      Credit

                	
                  34

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.6.3

                	
                  Drawings
      and Reimbursements; Funding of Participations

                	
                  36

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.6.4

                	
                  Repayment
      of Participations

                	
                  37

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.6.5

                	
                  Obligations
      Absolute

                	
                  37

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.6.6

                	
                  Role
      of L/C Issuer

                	
                  38

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.6.7

                	
                  Cash
      Collateral

                	
                  38

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.6.8

                	
                  Applicability
      of ISP

                	
                  38

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.6.9

                	
                  Letter
      of Credit Fees

                	
                  39

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.6.10

                	
                  Fronting
      Fee and Documentary and Processing Charges Payable to L/C
      Issuer

                	
                  39

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.6.11

                	
                  Conflict
      with Issuer Documents

                	
                  39

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.6.12

                	
                  Letters
      of Credit Issued for Borrower Subsidiaries

                	
                  39

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.6.13

                	
                  Amount

                	
                  39

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  2.7

                	
                  Swing
      Line Facility

                	
                  39

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.7.1

                	
                  The
      Swing Line Commitment

                	
                  39

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.7.2

                	
                  Procedure
      for Swing Line Borrowing; Refunding of Swing Line Advances

                	
                  40

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  2.8

                	
                  Taxes

                	
                  41

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.8.1

                	
                  Payments
      Free of Taxes; Obligation to Withhold; Payments on Account of
      Taxes

                	
                  41

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.8.2

                	
                  Payment
      of Other Taxes by the Borrower

                	
                  41

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.8.3

                	
                  Tax
      Indemnifications

                	
                  41

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.8.4

                	
                  Evidence
      of Payments

                	
                  42

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.8.5

                	
                  Status
      of Lenders; Tax Documentation

                	
                  42

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  2.8.6

                	
                  Treatment
      of Certain Refunds

                	
                  43

                
	 
      	 
      	 
      	 
      	 
      
	
                  3.

                	
                  SECURITY
      FOR THE CREDIT FACILITY; LOAN AND SECURITY DOCUMENTS

                	
                  44

                
	 
      	 
      	 
      
	 
      	
                  3.1

                	
                  Security

                	
                  44

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  3.1.1

                	
                  Mortgage/Deed
      of Trust and Security Agreement

                	
                  44

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  3.1.2

                	
                  Guaranties

                	
                  45

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  3.1.3

                	
                  Environmental
      Compliance and Indemnification Agreement

                	
                  45

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  3.1.4

                	
                  Additional
      Documents

                	
                  45

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  3.2

                	
                  Loan
      Documents and Security Documents

                	
                  45

                
	 
      	 
      	 
      	 
      
	 
      	
                  3.3

                	
                  Removal
      of Individual Property as a Borrowing Base Property -
    Borrower

                	
                  45

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  3.3.1

                	
                  Borrowing
      Base Compliance

                	
                  46

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  3.3.2

                	
                  Financial
      Covenant Compliance

                	
                  46

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  3.3.3

                	
                  No
      Default Upon Release

                	
                  46

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  3.3.4

                	
                  No
      Default Prior to Release

                	
                  46

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  3.3.5

                	
                  Payment
      of Fees

                	
                  46

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  3.4

                	
                  Removal
      of Individual Property as a Borrowing Base Property - Administrative
      Agent

                	
                  46

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  3.4.1

                	
                  Removal
      Criteria

                	
                  46

                

        

      

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                	 
      	 
      	
                        3.4.2

                      	
                        Release
      by Administrative Agent

                      	
                        46

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                        3.5

                      	
                        Additional
      Borrowing Base Property

                      	
                        47

                      
	 
      	 
      	 
      	 
      
	
                        4.

                      	
                        CONTINUING
      AUTHORITY OF AUTHORIZED OFFICERS

                      	
                        47

                      
	 
      	 
      	 
      
	
                        5.

                      	
                        CONDITIONS
      PRECEDENT

                      	
                        47

                      
	 
      	 
      	 
      
	 
      	
                        5.1

                      	
                        Closing
      Credit Facility and Funding Initial Revolving Loan Advance

                      	
                        47

                      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.1

                      	
                        Satisfactory
      Loan Documents

                      	
                        48

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.2

                      	
                        Financial
      Information; No Material Change

                      	
                        48

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.3

                      	
                        Representations
      and Warranties Accurate

                      	
                        48

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.4

                      	
                        Validity
      and Sufficiency of Security Documents

                      	
                        48

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.5

                      	
                        Litigation

                      	
                        49

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.6

                      	
                        Formation
      Documents and Entity Agreements

                      	
                        49

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.7

                      	
                        Compliance
      With Law

                      	
                        49

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.8

                      	
                        Compliance
      With Financial Covenants

                      	
                        49

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.9

                      	
                        Borrowing
      Base Property Due Diligence

                      	
                        49

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.10

                      	
                        Condition
      of Property

                      	
                        49

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.11

                      	
                        Insurance

                      	
                        49

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.12

                      	
                        Third
      Party Consents and Agreements

                      	
                        49

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.13

                      	
                        Legal
      and other Opinions

                      	
                        49

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.1.14

                      	
                        No
      Default

                      	
                        50

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                        5.2

                      	
                        Conditions
      to all Credit Extensions

                      	
                        50

                      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.2.1

                      	
                        Representations
      and Warranties

                      	
                        50

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.2.2

                      	
                        No
      Default

                      	
                        50

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.2.3

                      	
                        Financial
      Covenant Compliance

                      	
                        50

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        5.2.4

                      	
                        Revolving
      Loan Notice

                      	
                        50

                      
	 
      	 
      	 
      	 
      	 
      
	
                        6.

                      	
                        REPRESENTATIONS
      AND WARRANTIES

                      	
                        50

                      
	 
      	 
      	 
      
	 
      	
                        6.1

                      	
                        Formation

                      	
                        50

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.2

                      	
                        Proceedings;
      Enforceability

                      	
                        50

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.3

                      	
                        Conflicts

                      	
                        51

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.4

                      	
                        Ownership
      and Taxpayer Identification Numbers

                      	
                        51

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.5

                      	
                        Litigation

                      	
                        51

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.6

                      	
                        Information

                      	
                        51

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.7

                      	
                        Taxes

                      	
                        51

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.8

                      	
                        Financial
      Information

                      	
                        51

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.9

                      	
                        Control
      Provisions

                      	
                        52

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.10

                      	
                        Formation
      Documents

                      	
                        52

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.11

                      	
                        Bankruptcy
      Filings

                      	
                        52

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.12

                      	
                        Investment
      Company

                      	
                        52

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.13

                      	
                        Solvency

                      	
                        52

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.14

                      	
                        Borrowing
      Base Properties

                      	
                        52

                      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                        6.14.1

                      	
                        Licenses
      and Permits

                      	
                        52

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        6.14.2

                      	
                        Ownership

                      	
                        52

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                        6.14.3

                      	
                        Environmental
      Matters

                      	
                        53

                      
	 
      	 
      	 
      	 
      	 
      
	 
      	
                        6.15

                      	
                        Margin
      Regulations; Use of Proceeds

                      	
                        53

                      
	 
      	 
      	 
      	 
      
	 
      	
                        6.16

                      	
                        Insurance

                      	
                        53

                      

              

            

          

        

      

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

    
      
        
          	 
      	
                  6.17

                	
                  Deferred
      Compensation and ERISA

                	
                  53

                
	 
      	 
      	 
      	 
      
	 
      	
                  6.18

                	
                  Property
      Matters

                	
                  53

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  6.18.1

                	
                  Borrowing
      Base Properties

                	
                  53

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  6.18.2

                	
                  Flood
      Hazard

                	
                  53

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  6.19

                	
                  No
      Default

                	
                  53

                
	 
      	 
      	 
      	 
      
	 
      	
                  6.20

                	
                  Governmental
      Authorizations; Other Consents

                	
                  53

                
	 
      	 
      	 
      	 
      
	 
      	
                  6.21

                	
                  Qualification
      as a REIT

                	
                  54

                
	 
      	 
      	 
      	 
      
	 
      	
                  6.22

                	
                  Compliance
      with Laws

                	
                  54

                
	 
      	 
      	 
      	 
      
	 
      	
                  6.23

                	
                  Significant
      Subsidiary

                	
                  54

                
	 
      	 
      	 
      	 
      
	
                  7.

                	
                  AFFIRMATIVE
      COVENANTS

                	
                  54

                
	 
      	 
      	 
      
	 
      	
                  7.1

                	
                  Notices

                	
                  54

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.2

                	
                  Financial
      Statements; Reports; Officer's Certificates

                	
                  54

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.2.1

                	
                  Annual
      Statements

                	
                  54

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.2.2

                	
                  Periodic
      Statements

                	
                  55

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.2.3

                	
                  Borrowing
      Base Property Reports

                	
                  55

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.2.4

                	
                  SEC
      Reports

                	
                  55

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.2.5

                	
                  Compliance
      Certificates

                	
                  55

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.2.6

                	
                  Data
      Requested

                	
                  55

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.2.7

                	
                  Tax
      Returns

                	
                  55

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.2.8

                	
                  Entity
      Notices

                	
                  55

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.2.9

                	
                  Other
      Defaults

                	
                  55

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.2.10

                	
                  Notice
      of Litigation

                	
                  56

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  7.3

                	
                  Existence

                	
                  56

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.4

                	
                  Payment
      of Taxes

                	
                  56

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.5

                	
                  Insurance;
      Casualty, Taking

                	
                  56

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.5.1

                	
                  General
      Insurance Requirements

                	
                  56

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.5.2

                	
                  Payment
      of Premiums

                	
                  56

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.5.3

                	
                  Notice
      of Damage

                	
                  57

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  7.6

                	
                  Inspection

                	
                  57

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.7

                	
                  Loan
      Documents

                	
                  57

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.8

                	
                  Further
      Assurances

                	
                  57

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.9

                	
                  Books
      and Records

                	
                  57

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.10

                	
                  Business
      and Operations

                	
                  57

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.11

                	
                  Title

                	
                  57

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.12

                	
                  Estoppel

                	
                  58

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.13

                	
                  ERISA

                	
                  58

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.14

                	
                  Compliance
      with Laws

                	
                  58

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.15

                	
                  Costs
      and Expenses

                	
                  58

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.16

                	
                  Appraisals

                	
                  59

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.16.1

                	
                  Appraisal

                	
                  59

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.16.2

                	
                  Costs
      of Appraisal

                	
                  59

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  7.17

                	
                  Indemnification

                	
                  59

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.18

                	
                  Payment
      of Obligations

                	
                  59

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.19

                	
                  Leverage
      Ratio

                	
                  59

                

        

      

    

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

     

    
      
        
          	 
      	
                  7.20

                	
                  Fixed
      Charge Ratio

                	
                  59

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.21

                	
                  Debt
      Service Coverage Ratio

                	
                  59

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.22

                	
                  Adjusted
      Net Operating Income Ratio

                	
                  59

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.23

                	
                  Total
      Development and Joint Venture Investment Ratio

                	
                  59

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.24

                	
                  Dividend
      Payout Ratio

                	
                  59

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.25

                	
                  Net
      Worth

                	
                  60

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.26

                	
                  Borrowing
      Base Property Covenants

                	
                  60

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.26.1

                	
                  Apartment
      Community

                	
                  60

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.26.2

                	
                  Business
      Strategy

                	
                  60

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  7.27

                	
                  Replacement
      Documentation

                	
                  60

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.28

                	
                  Maintenance
      of REIT Status

                	
                  60

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.29

                	
                  The
      Lenders' Consultants

                	
                  60

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.29.1

                	
                  Right
      to Employ

                	
                  60

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.29.2

                	
                  Functions

                	
                  60

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.29.3

                	
                  Payment

                	
                  60

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.29.4

                	
                  Access

                	
                  60

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  7.29.5

                	
                  No
      Liability

                	
                  60

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  7.30

                	
                  Bank
      Accounts

                	
                  61

                
	 
      	 
      	 
      	 
      
	 
      	
                  7.31

                	
                  Significant
      Subsidiaries to be a Guarantor

                	
                  61

                
	 
      	 
      	 
      	 
      
	
                  8.

                	
                  NEGATIVE
      COVENANTS

                	
                  61

                
	 
      	 
      	 
      
	 
      	
                  8.1

                	
                  No
      Changes to the Borrower and other Loan Parties

                	
                  61

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.2

                	
                  Restrictions
      on Liens

                	
                  61

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.2.1

                	
                  Administrative
      Agent's Liens

                	
                  61

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.2.2

                	
                  Permitted
      Debt

                	
                  61

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.2.3

                	
                  Tax
      Liens

                	
                  61

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.2.4

                	
                  Judgment
      Liens

                	
                  62

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.2.5

                	
                  Personal
      Property Liens

                	
                  62

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.2.6

                	
                  L/C
      Issuer Liens

                	
                  62

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.2.7

                	
                  Easements,
      Etc.

                	
                  62

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.2.8

                	
                  Other
      Encumbrances

                	
                  62

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  8.3

                	
                  Consolidations,
      Mergers, Sales of Assets, Issuance and Sale of Equity

                	
                  62

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.3.1

                	
                  Transfers

                	
                  62

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.3.2

                	
                  Non-Loan
      Parties

                	
                  62

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.3.3

                	
                  Loan
      Parties

                	
                  62

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.3.4

                	
                  Borrowing
      Base Properties

                	
                  63

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.3.5

                	
                  Leases

                	
                  63

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.3.6

                	
                  Property
      Transfers

                	
                  63

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.3.7

                	
                  Ordinary
      Course

                	
                  63

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.3.8

                	
                  With
      Consent

                	
                  63

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.3.9

                	
                  Equity
      Issuances

                	
                  63

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.3.10

                	
                  Merger
      of Loan Parties

                	
                  63

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  8.3.11

                	
                  Permitted
      Transfers

                	
                  63

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  8.4

                	
                  Restrictions
      on Debt

                	
                  63

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.5

                	
                  Other
      Business

                	
                  63

                

        

      

    

     

    
      
        
        

      

      
        v

        
          

        

      

      
        
        

      

    

     

    
      
        
          	 
      	
                  8.6

                	
                  Change
      of Control

                	
                  63

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.7

                	
                  Forgiveness
      of Debt

                	
                  63

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.8

                	
                  Affiliate
      Transactions

                	
                  63

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.9

                	
                  ERISA

                	
                  64

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.10

                	
                  Bankruptcy
      Filings

                	
                  64

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.11

                	
                  Investment
      Company

                	
                  64

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.12

                	
                  Swap
      Contracts

                	
                  64

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.13

                	
                  Use
      of Proceeds

                	
                  64

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.14

                	
                  Distributions

                	
                  64

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.15

                	
                  Restrictions
      on Investments

                	
                  64

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.16

                	
                  Negative
      Pledges, etc.

                	
                  64

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.17

                	
                  Other
      Covenants

                	
                  65

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.18

                	
                  Accounts
      Receivable from Related Persons

                	
                  65

                
	 
      	 
      	 
      	 
      
	 
      	
                  8.19

                	
                  Loans
      to Officers and Employees

                	
                  65

                
	 
      	 
      	 
      	 
      
	
                  9.

                	
                  SPECIAL
      PROVISIONS

                	
                  65

                
	 
      	 
      	 
      
	 
      	
                  9.1

                	
                  Legal
      Requirements

                	
                  65

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.2

                	
                  Limited
      Recourse Provisions

                	
                  65

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  9.2.1

                	
                  Borrower
      Fully Liable

                	
                  65

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  9.2.2

                	
                  Certain
      Non-Recourse

                	
                  65

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  9.2.3

                	
                  Additional
      Matters

                	
                  65

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  9.3

                	
                  Payment
      of Obligations

                	
                  66

                
	 
      	 
      	 
      	 
      
	
                  10.

                	
                  EVENTS
      OF DEFAULT

                	
                  66

                
	 
      	 
      	 
      
	 
      	
                  10.1

                	
                  Default
      and Events of Default

                	
                  66

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.1

                	
                  Failure
      to Pay the Credit Facility

                	
                  66

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.2

                	
                  Failure
      to Make Other Payments

                	
                  66

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.3

                	
                  Security
      Documents and Other Loan Documents

                	
                  66

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.4

                	
                  Default
      under Other Agreements

                	
                  67

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.5

                	
                  Representations
      and Warranties

                	
                  67

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.6

                	
                  Affirmative
      Covenants

                	
                  67

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.7

                	
                  Negative
      Covenants

                	
                  67

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.8

                	
                  Financial
      Status and Insolvency

                	
                  67

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.9

                	
                  Loan
      Documents

                	
                  67

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.10

                	
                  Judgments

                	
                  67

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.11

                	
                  ERISA

                	
                  68

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.12

                	
                  Change
      of Control

                	
                  68

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.13

                	
                  Indictment;
      Forfeiture

                	
                  68

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.1.14

                	
                  Generally

                	
                  68

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  10.2

                	
                  Grace
      Periods and Notice

                	
                  68

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.2.1

                	
                  No
      Notice or Grace Period

                	
                  68

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.2.2

                	
                  Nonpayment
      of Interest

                	
                  68

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.2.3

                	
                  Other
      Monetary Defaults

                	
                  68

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.2.4

                	
                  Nonmonetary
      Defaults Capable of Cure

                	
                  68

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  10.2.5

                	
                  Borrowing
      Base Property Defaults

                	
                  69

                
	 
      	 
      	 
      	 
      	 
      
	
                  11.

                	
                  REMEDIES

                	
                  69

                

        

      

    

     

    
      
        
        

      

      
        vi

        
          

        

      

      
        
        

      

    

     

    
      
        
          	 
      	
                  11.1

                	
                  Remedies

                	
                  69

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  11.1.1

                	
                  Accelerate
      Debt

                	
                  69

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  11.1.2

                	
                  Collateralize
      Letters of Credit

                	
                  69

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  11.1.3

                	
                  Pursue
      Remedies

                	
                  69

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  11.2

                	
                  Distribution
      of Liquidation Proceeds

                	
                  69

                
	 
      	 
      	 
      	 
      
	
                  12.

                	
                  SECURITY
      INTEREST AND SET-OFF

                	
                  70

                
	 
      	 
      	 
      
	 
      	
                  12.1

                	
                  Security
      Interest

                	
                  70

                
	 
      	 
      	 
      	 
      
	 
      	
                  12.2

                	
                  Set-Off/Sharing
      of Payments

                	
                  70

                
	 
      	 
      	 
      	 
      
	 
      	
                  12.3

                	
                  RESERVED

                	
                  71

                
	 
      	 
      	 
      	 
      
	 
      	
                  12.4

                	
                  Additional
      Rights

                	
                  71

                
	 
      	 
      	 
      	 
      
	
                  13.

                	
                  THE
      ADMINISTRATIVE AGENT AND THE LENDERS

                	
                  71

                
	 
      	 
      	 
      
	 
      	
                  13.1

                	
                  Rights,
      Duties and Immunities of the Administrative Agent

                	
                  71

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.1.1

                	
                  Appointment
      of Administrative Agent

                	
                  71

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.1.2

                	
                  No
      Other Duties, Etc.

                	
                  71

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.1.3

                	
                  Delegation
      of Duties

                	
                  71

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.1.4

                	
                  Exculpatory
      Provisions

                	
                  71

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.1.5

                	
                  Reliance
      by Administrative Agent

                	
                  72

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.1.6

                	
                  Notice
      of Default

                	
                  72

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.1.7

                	
                  Lenders'
      Credit Decisions

                	
                  73

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.1.8

                	
                  Administrative
      Agent's Reimbursement and Indemnification

                	
                  73

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.1.9

                	
                  Administrative
      Agent in its Individual Capacity

                	
                  73

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.1.10

                	
                  Successor
      Administrative Agent

                	
                  73

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.1.11

                	
                  Administrative
      Agent May File Proofs of Claim

                	
                  74

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.1.12

                	
                  Collateral
      and Guaranty Matters

                	
                  75

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  13.2

                	
                  Respecting
      Loans and Payments

                	
                  75

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.2.1

                	
                  Adjustments

                	
                  75

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.2.2

                	
                  Setoff

                	
                  75

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.2.3

                	
                  Distribution
      by the Administrative Agent

                	
                  75

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.2.4

                	
                  Limited
      Assignment Right of Borrower

                	
                  75

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.2.5

                	
                  Holders

                	
                  76

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  13.3

                	
                  Assignments
      by Lenders

                	
                  76

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.3.1

                	
                  Successors
      and Assigns Generally

                	
                  76

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.3.2

                	
                  Assignments
      by Lenders

                	
                  76

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.3.3

                	
                  Register

                	
                  78

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.3.4

                	
                  Participations

                	
                  78

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.3.5

                	
                  Limitations
      upon Participant Rights

                	
                  79

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.3.6

                	
                  Certain
      Pledges

                	
                  79

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.3.7

                	
                  Resignation
      as Swing Line Lender and L/C Issuer after Assignment

                	
                  79

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  13.4

                	
                  Administrative
      Matters

                	
                  79

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.4.1

                	
                  Amendment,
      Waiver, Consent, Etc.

                	
                  79

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  13.4.2

                	
                  Deemed
      Consent or Approval

                	
                  80

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  13.5

                	
                  Defaulting
      Lenders

                	
                  81

                
	 
      	 
      	 
      	 
      
	
                  14.

                	
                  CASUALTY
      AND TAKING

                	
                  81

                
	 
      	 
      	 
      
	 
      	
                  14.1

                	
                  Casualty
      or Taking; Obligation To Repair

                	
                  81

                

        

      

    

     

    
      
        
        

      

      
        vii

        
          

        

      

      
        
        

      

    

     

    
      
        
          	 
      	
                  14.2

                	
                  Adjustment
      of Claims

                	
                  81

                
	 
      	 
      	 
      	 
      
	 
      	
                  14.3

                	
                  Payment
      and Application of Insurance Proceeds and Condemnation
    Awards

                	
                  82

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  14.3.1

                	
                  Insurance
      Proceeds

                	
                  81

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  14.3.2

                	
                  Release
      of Funds

                	
                  81

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  14.3.3

                	
                  Conditions

                	
                  82

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  14.4

                	
                  Conditions
      To Release of Insurance Proceeds

                	
                  82

                
	 
      	 
      	 
      	 
      
	 
      	
                  14.5

                	
                  Consultants

                	
                  82

                
	 
      	 
      	 
      	 
      
	 
      	
                  14.6

                	
                  Final
      Payments

                	
                  83

                
	 
      	 
      	 
      	 
      
	 
      	
                  14.7

                	
                  No
      Default

                	
                  83

                
	 
      	 
      	 
      	 
      
	
                  15.

                	
                  GENERAL
      PROVISIONS

                	
                  83

                
	 
      	 
      	 
      
	 
      	
                  15.1

                	
                  Notices

                	
                  83

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.2

                	
                  Interest
      Rate Limitation

                	
                  84

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.3

                	
                  Parties
      Bound

                	
                  84

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.4

                	
                  Governing
      Law; Consent to Jurisdiction; Mutual Waiver of Jury Trial

                	
                  85

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  15.4.1

                	
                  GOVERNING
      LAW

                	
                  85

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  15.4.2

                	
                  SUBMISSION
      TO JURISDICTION

                	
                  85

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  15.4.3

                	
                  WAIVER
      OF VENUE

                	
                  85

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  15.4.4

                	
                  SERVICE
      OF PROCESS

                	
                  85

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  15.4.5

                	
                  WAIVER
      OF JURY TRIAL

                	
                  86

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  15.5

                	
                  Survival

                	
                  86

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.6

                	
                  Cumulative
      Rights

                	
                  86

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.7

                	
                  Expenses;
      Indemnity; Damage Waiver

                	
                  86

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  15.7.1

                	
                  Costs
      and Expenses

                	
                  86

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  15.7.2

                	
                  Indemnification
      by the Borrower

                	
                  87

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  15.7.3

                	
                  Reimbursement
      by Lenders

                	
                  87

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  15.7.4

                	
                  Waiver
      of Consequential Damages, Etc.

                	
                  87

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  15.7.5

                	
                  Payments

                	
                  87

                
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                  15.7.6

                	
                  Survival

                	
                  87

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  15.8

                	
                  Regarding
      Consents

                	
                  87

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.9

                	
                  Obligations
      Absolute

                	
                  88

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.10

                	
                  Table
      of Contents, Title and Headings

                	
                  88

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.11

                	
                  Counterparts

                	
                  88

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.12

                	
                  Time
      Of the Essence

                	
                  88

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.13

                	
                  No
      Oral Change

                	
                  88

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.14

                	
                  Monthly
      Statements

                	
                  88

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.15

                	
                  No
      Advisory or Fiduciary Responsibility

                	
                  88

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.16

                	
                  USA
      PATRIOT Act

                	
                  89

                
	 
      	 
      	 
      	 
      
	 
      	
                  15.17

                	
                  Treatment
      of Certain Information; Confidentiality

                	
                  89

                
	 
      	 
      	 
      	 
      
	
                  Exhibit
      A  (Form of Assignment and
      Assumption)

                	
                   

                
	 
      	 
      
	
                  Exhibit
      B  (Form of Compliance
      Certificate)

                	
                   

                
	 
      	 
      
	
                  Exhibit
      C  (Form of
      Note)

                	
                   

                
	 
      	 
      
	
                  Exhibit
      D  (Form of Revolving Loan
      Notice)

                	
                   

                
	 
      	 
      
	
                  Exhibit
      E  (Form of Closing Compliance
      Certificate)

                	
                   

                
	 
      	 
      
	
                  Schedule
      1.1(a)  (Lenders'
      Commitments)

                	
                   

                

        

      

    

     

    
      
        
        

      

      
        viii

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                
                  
                    	
                            Schedule
      1.1(b)  (Existing Letters of
      Credit)

                          	
                             

                          
	 	 
	
                            Schedule
      4  (Authorized
      Officers)

                          	
                             

                          
	 	 
	
                            Schedule
      5.1.11  (Required Property,
      Hazard and Other Insurance)

                          	
                              

                          
	 	 
	
                            Schedule
      6.4  (Taxpayer Identification
      Numbers)

                          	
                             

                          
	 	 
	
                            Schedule
      6.14.2  (Borrowing Base
      Properties)

                          	
                             

                          
	 	 
	
                            Schedule 15.1  (Notices)

                          	
                             

                          

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        ix

        
          

        

      

      
        
        

      

    

     

    SECOND
AMENDED AND RESTATED

    REVOLVING
CREDIT AGREEMENT

     

    This
SECOND AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT (this "Agreement") is made
and entered into as of March 31, 2010, by and among MID-AMERICA APARTMENT COMMUNITIES,
INC., a Tennessee corporation, and MID-AMERICA APARTMENTS, L.P.,
a Tennessee limited partnership (together, the "Borrower"), the
several banks and other financial institutions as are, or may from time to time
become parties to this Agreement (each a "Lender" and
collectively, the "Lenders"), REGIONS BANK, an Alabama
banking corporation, as administrative agent for the Lenders (in such capacity,
and together with its successors in such capacity, the "Administrative
Agent"), and REGIONS
CAPITAL MARKETS, a division of Regions Bank, as Lead Arranger and Sole
Bookrunner.

     

    Recitals

     

    A.           The
Borrower is a party to that certain Revolving Credit Agreement (Amended and
Restated), dated as of July 17, 2003 (as amended from time to time through the
date hereof, the "Existing Loan
Agreement"), among the Borrower, the lenders party thereto and Regions
Bank, as administrative agent.

    

    B.           The
Borrower has requested that the Lenders amend and restate the Existing Loan
Agreement in this Agreement.

    

    C.           The
Lenders have agreed to amend and restate the Existing Loan Agreement and to
provide a credit facility to the Borrower in an aggregate amount of $50,000,000,
subject to increase, on the terms and conditions hereinafter set
forth.

    

    Agreement

     

    NOW, THEREFORE, in
consideration of the recitals and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

     

    
      	
              1.

            	
              DEFINITIONS.

            

    

     

    1.1          Defined
Terms.

     

    As used
in this Agreement, the following terms shall have the meanings specified below
unless the context otherwise requires:

     

    "Additional Collateral
Request" shall have the meaning set forth in Section
3.5.

     

    "Adjusted Appraised
Value" shall mean, with respect to the Borrowing Base Properties that are
Stabilized Assets, sixty-five percent (65%) of the Aggregate Appraised Value of
such Stabilized Assets.

     

    "Adjusted Fair Market
Value" shall mean, with respect to the Borrowing Base Properties,
sixty-five percent (65%) of the Aggregate Fair Market Value of such Borrowing
Base Properties.

     

    "Adjusted FFO" shall
mean, for Parent and its Consolidated Subsidiaries, net income (loss) (computed
in accordance with GAAP), excluding gains (or losses) from (i) debt
restructurings, (ii) sales of real property, and (iii) extraordinary and/or
nonrecurring items, plus real estate related depreciation and amortization and
after adjustments for unconsolidated partnerships and joint ventures, as set
forth in more detail under the definitions and interpretations thereof relative
to funds from operations promulgated by the National Association of Real Estate
Investment Trusts or its successor.

     

    "Adjusted Net Operating
Income" shall mean, for any Calculation Period for any Individual
Property, the Pro Rata Share of (i) Net Operating Income for the Calculation
Period, annualized, less (ii) management fees (calculated as the greater of
either 5% of total revenue for the Calculation Period, annualized, or actual
management expenses incurred during the Calculation Period, annualized), to the
extent not already deducted from Net Operating Income, less (iii) allowances for
capital expenditures in the amount of $50 per rental unit for the Calculation
Period, annualized.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    "Adjusted Net Operating
Income Ratio" shall mean, for each Calculation Period, the ratio of (a)
Adjusted Net Operating Income to (b) Assumed Debt Service.

     

    "Administrative Agent"
shall mean Regions Bank, an Alabama banking corporation, acting as agent for the
Lenders, together with its successors and assigns.

     

    "Administrative Agent's
Office" shall mean the Administrative Agent's address and, as
appropriate, account as set forth in Section 15.1, or such
other address or account as the Administrative Agent may from time to time
notify to the Borrower and the Lenders.

     

    "Administrative
Questionnaire" shall mean an Administrative Questionnaire in a form
supplied by the Administrative Agent.

     

    "Affiliate" shall
mean, with respect to any Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under
common Control with the Person specified.

     

    "Aggregate Appraised
Value" shall mean, with respect to any group of Collateral Properties,
the sum of the Appraised Value for such Collateral Properties.

     

    "Aggregate Fair Market
Value" shall mean, with respect to any group of Collateral Properties,
the sum of the Fair Market Value for such Collateral Properties.

     

    "Agreement" shall have
the meaning set forth in the Preamble.

     

    "Applicable Margin"
shall mean (a) for LIBO Rate Advances, 2.75% and (b) for Base Rate Advances,
1.75%.

     

    "Appraisal" shall mean
an MAI appraisal reflecting the "as is" appraised market value of an Individual
Property ordered by the Administrative Agent (or by the Borrower in accordance
with Section
7.16.1) in form and substance reasonably acceptable to the Administrative
Agent and the Required Lenders and prepared by an appraiser reasonably
acceptable to the Administrative Agent.

     

    "Appraised Value"
shall mean, with respect to any Collateral Property, the "as is" appraised
market value for such Collateral Property set forth in an
Appraisal.

     

    "Approved Fund" shall
mean any Fund that is administered or managed by (a) a Lender, (b) an Affiliate
of a Lender or (c) an entity or an Affiliate of an entity that administers or
manages a Lender.

     

    "Assignee Group" shall
mean two or more Eligible Assignees that are Affiliates of one another or two or
more Approved Funds managed by the same investment advisor.

     

    "Assignment and
Assumption" shall mean an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required
by Section
13.3, and accepted by the Administrative Agent),in substantially the form
of Exhibit A
attached hereto or any other form approved by the Administrative
Agent.

     

    "Assumed Debt Service"
shall be calculated as the amount of monthly installments of principal and
interest that would be required to be paid on the Credit Facility during the
Calculation Period, annualized, based on an assumed principal amortization of
twenty-five (25) years and an assumed interest rate of the greater of (i) the
then prevailing 10-year U.S. Treasury note rate plus 200 basis points, or (ii)
seven percent (7.0%).

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    "Authorized Officer"
shall mean, with respect to any Loan Party or any of their constituent entities,
the President, Managing Member, General Partner or other authorized officer
whose name appears on a certificate of incumbency executed and delivered
concurrently with the execution of this Agreement, as such certificate of
incumbency may be amended from time to time to identify the names of the
individuals then holding such offices and authority, in form and substance
satisfactory to the Administrative Agent.

     

    "Base Rate" shall mean
for any day a fluctuating rate per annum equal to the highest of (a) the Federal
Funds Rate plus 1/2 of 1%, (b) the Prime Rate in effect for such day and (c) the
LIBO Rate (as specified in clause (b) of the definition thereof) plus
1.00%.

     

    "Base Rate Advance"
shall mean any principal amount outstanding under this Agreement which pursuant
to this Agreement bears interest at the Base Rate plus the Applicable Margin for
Base Rate Advances.

     

    "Book Value" shall
mean the value of such property or asset, as determined in accordance with
GAAP.

     

    "Borrower" shall have
the meaning set forth in the Preamble.

     

    "Borrower
Subsidiaries" shall mean, individually and collectively, all of the
Subsidiaries of the Borrower.

     

    "Borrower Reduction
Date" shall have the meaning set forth in Section
2.2.2(b).

     

    "Borrower Termination
Date" shall have the meaning set forth in Section
2.2.2(a).

     

    "Borrowing Base
Property" and "Borrowing Base
Properties" shall mean, the Individual Properties initially listed in
Schedule 6.14.2
attached hereto, plus any Individual Property which subsequently becomes a
Borrowing Base Property in accordance with Section 3.5, hereof,
but excluding (i) any Borrowing Base Property which is determined by the
Administrative Agent to no longer be a Borrowing Base Property in accordance
with Section
3.4, hereof, or (ii) any Borrowing Base Property which is released as
Collateral in accordance with Section 3.3
hereof.

     

    "Borrowing Base Property
Owner" and "Borrowing Base Property
Owners" shall mean, from time to time, the Borrower or the Wholly-Owned
Subsidiary(ies) of the Borrower which is or are the owner or owners of the fee
simple interest in a Borrowing Base Property or the Borrowing Base
Properties.

     

    "Borrowing Base Property
Requirements" shall mean the requirements, with respect to any Individual
Property, set forth below:

     

    (a)          The
Individual Property satisfies all Eligibility Criteria.

     

    (b)          The
Borrower (or applicable Loan Party) has executed all Security Documents in
connection with such Individual Property, including, without limitation, the
Security Documents set forth in Sections 3.1.1
through and including Section 3.1.3
hereof.

     

    (c)          The
Individual Property is owned by the Borrower or a Wholly-Owned Subsidiary of the
Borrower, except as otherwise approved by the Administrative Agent and the
Required Lenders.

     

    (d)          The
Administrative Agent shall have received and completed a satisfactory review of
such due diligence as the Administrative Agent and the Required Lenders may
reasonably require (with the Borrower delivering such diligence to the
Administrative Agent for delivery to the Lenders) with respect to any Individual
Property, including, without limitation:

     

    (i)           (1)           A
mortgagee title insurance policy naming the Administrative Agent, on behalf of
the Lenders, as the first mortgagee, which meets the Administrative Agent's
title insurance requirements furnished to the Borrower to the reasonable
satisfaction of the Administrative Agent and the Administrative Agent's counsel
in the amount of the Borrowing Base Value; and (2) such other evidence of the
perfection of its security interests as the Administrative Agent and the
Administrative Agent's counsel may reasonably require;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (ii)          A
current, as-built survey of the Individual Property containing a certification
thereon, or on a separate surveyor's certificate, of a land surveyor reasonably
acceptable to the Administrative Agent which meets the Administrative Agent's
survey requirements furnished to the Borrower to the reasonable satisfaction of
the Administrative Agent and the Administrative Agent's counsel;

     

    (iii)         A
copy of any reciprocal easement agreements with respect to the Individual
Property and, if reasonably requested by the Administrative Agent, an estoppel
certificate from all of the parties thereto in form and substance reasonably
acceptable to the Administrative Agent;

     

    (iv)         Evidence
of insurance complying with the requirements of Schedule 5.1.11
attached hereto;

     

    (v)          A
current Appraisal; provided, however, that
Appraisals that are less than twelve (12) months old shall be
acceptable;

     

    (vi)         A
current environmental Phase I Site Assessment performed by a firm reasonably
acceptable to the Administrative Agent within six (6) months of submission to
the Administrative Agent (or within six (6) months of when such Individual
Property became a Borrowing Base Property), which indicates the property is free
from recognized hazardous materials or substances apparent from the inspection,
or affected by such environmental matters as may be reasonably acceptable to the
Administrative Agent and the Required Lenders;

     

    (vii)        A
current Inspection Report performed by a firm reasonably acceptable to the
Administrative Agent within six (6) months of submission to the Administrative
Agent, such report to be reasonably acceptable to the Administrative Agent and
the Required Lenders;

     

    (viii)       Such
other real estate documents (including, without limitation, flood hazard
determinations and evidence of flood insurance to the extent required)
reasonably deemed appropriate for commercially reasonable underwriting by the
Administrative Agent in respect of the Borrowing Base Property;

     

    (ix)         Evidence
of compliance with current zoning regulations as may be reasonably acceptable to
the Administrative Agent and the Required Lenders; and

     

    (xi)         An
opinion of counsel of the Borrower in form and substance satisfactory to the
Administrative Agent.

     

    "Borrowing Base Value"
shall mean, as of the most recent Compliance Certificate or Borrowing Base
Property report, as applicable, delivered to the Administrative Agent, the sum
of (a) for Borrowing Base Properties that are Stabilized Assets (subject to
subclause (c) herein), the Adjusted Fair Market Value of such Borrowing Base
Properties, plus (b) for Borrowing Base Properties that are Non-Stabilized
Assets, the Adjusted Fair Market Value of such Non-Stabilized Assets, plus (c)
for Borrowing Base Properties that are Stabilized Assets, for the period
commencing on the date a Stabilized Asset is added as a Borrowing Base Property
and continuing thereafter through a full calendar quarter, the Adjusted
Appraised Value of such Stabilized Assets.  Notwithstanding the above,
if an Event of Loss as to any Borrowing Base Property that is a Stabilized Asset
occurs to the extent that twenty-five percent (25%) or less of the apartment
units included in such Stabilized Asset are rendered uninhabitable, the
Borrowing Base Value for such Stabilized Asset shall be immediately reduced to
an amount equal to sixty percent (60%) of the Fair Market Value of such
Stabilized Asset immediately prior to such Event of Loss; provided, however, that if the
damaged Stabilized Asset is insured in an amount sufficient to rebuild or
restore such damage and if loss of rents insurance is available during the
repair and reconstruction period, no reduction in the Borrowing Base Value will
result hereunder.  It is agreed that if such Stabilized Asset is
determined by the Administrative Agent to no longer be a Restoration Property,
the Borrowing Base Value shall be recalculated as of the date such Stabilized
Asset is determined to no longer be a Restoration Property, based on the then
Adjusted Fair Market Value.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    "Breakage Fee" shall
have the meaning set forth in Section
2.3.15.

     

    "Business Day" shall
mean any day other than a Saturday, Sunday or other day on which commercial
banks are authorized to close under the Laws of, or are in fact closed in, the
state where the Administrative Agent's Office is located and, if such day
relates to any LIBO Rate Advance, shall mean any such day on which dealings in
Dollar deposits are conducted by and between banks in the London interbank
eurodollar market.  Further, except as otherwise set forth in the Loan
Documents, payments shall be due on the first Business Day of each calendar
month.

     

    "Calculation Date"
shall mean the last day of each calendar quarter commencing with March 31,
2010.

     

    "Calculation Period"
shall mean for each Calculation Date, the just completed calendar quarter
(inclusive of the applicable Calculation Date).

     

    "Capital Stock" shall
mean (i) with respect to any Person that is a corporation, any and all shares,
interests, participations or other equivalents (however designated and whether
or not voting) of corporate stock, including without limitation, each class or
series of common stock and preferred stock of such Person and (ii) with respect
to any Person that is not a corporation, any and all investment units,
partnership, membership or other equity interests of such Person.

     

    "Cash Collateral"
shall have the meaning set forth in Section
2.6.7.

     

    "Cash Collateralize"
shall have the meaning set forth in Section
2.6.7.

     

    "Certificate of
Occupancy" shall mean a certificate of occupancy issued by the
governmental authority in whose jurisdiction the subject Borrowing Base Property
lies, or such other comparable governmental approval if a certificate of
occupancy is not utilized by the applicable governmental authority.

     

    "Change in Law" shall
mean the occurrence of any of the following:  (a) the adoption or
taking effect of any law, rule, regulation or treaty, (b) any change in any law,
rule, regulation or treaty or in the administration, interpretation or
application thereof by any Governmental Authority or (c) the making or issuance
of any request, guideline or directive (whether or not having the force of law)
by any Governmental Authority.

     

    "Change of Control"
shall mean the occurrence of any of the following:

     

    (a)          The
acquisition by any Person, or "group" (within the meaning of Sections 13(d) and
14(d)(2) of the Securities Exchange Act of 1934, as amended) of Persons acting
in concert, of beneficial ownership (within the meaning of Rule 13d-3 of the
Securities and Exchange Commission under the Securities Exchange Act of 1934, as
amended), directly or indirectly, of 30% or more of the outstanding shares of
voting stock of Parent, other than short term acquisitions necessary in
connection with the ultimate sale or other offerings of equity interests
otherwise permitted hereunder;

     

    (b)          During
any period of twelve (12) consecutive calendar months, individuals:

     

    (1)          who
were directors of Parent on the first day of such period shall cease to
constitute a majority of the board of directors of Parent; or

     

    (2)          whose
election or nomination for election to the board of directors of Parent was
recommended or approved by at least a majority of the directors then still in
office who were directors of Parent on the first day of such period, or whose
election or nomination for election was so approved, shall cease to constitute a
majority of the board of directors of Parent; or

     

    (c)          Parent
shall cease to be the sole general partner of Mid-America; or

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (d)          Parent
shall cease to own a minimum of 50% of the beneficial ownership interest in
Mid-America; or

     

    (e)          With
respect to any Borrowing Base Property Owner that is not a Borrower, the
transfer of any ownership interest therein such that such Borrowing Base
Property Owner is not a Wholly-Owned Subsidiary of the Borrower; or

     

    (f)           Exchanges
by existing limited partners of Mid-America of their respective limited
partnership interests for capital stock of Parent, which exceed in the
aggregate, as to all such exchanges or transfers, more than thirty-five percent
(35%) of the partnership interests of Mid-America.

     

    "Closing Compliance
Certificate" shall have the meaning set forth in Section
5.1.2(b).

     

    "Closing Date" shall
have the meaning set forth in Section
5.1.

     

    "Code" shall mean the
Internal Revenue Code of 1986, as amended from time to time, and the regulations
promulgated and rulings issued thereunder.  Section references to the
Code are to the Code, as in effect at the date of this Agreement and any
subsequent provisions of the Code, amendatory thereof, supplemental thereto or
substituted therefor.

     

    "Collateral" shall
have the meaning set forth in Section
3.1.

     

    "Collateral Property"
and "Collateral
Properties" shall mean any Borrowing Base Property or Borrowing Base
Properties and other Individual Properties which (i) were a Borrowing Base
Property, (ii) were no longer deemed such under Section 3.4.1, and
(iii) for which the Release Conditions have not been satisfied, as described in
Section
3.4.2.

     

    "Collateral Release
Request" shall have the meaning set forth in Section
3.3.

     

    "Commitment" shall
mean, with respect to each Lender, the amount set forth on Schedule 1.1(a)
attached hereto as the amount of such Lender's commitment to make advances to
the Borrower, as may be amended from time to time by the Administrative Agent as
provided in Article
13 and Section
2.1.1(c).

     

    "Commitment
Percentage" shall mean with respect to any Lender at any time, the
percentage of the Total Commitments represented by such Lender's Commitment at
such time.  If the commitment of each Lender to make Revolving Loan
Advances, the obligation of the Swing Line Lender to make Swing Line Advances
and the obligation of the L/C Issuer to make L/C Credit Extensions have been
terminated pursuant to Article 11 or if the
Total Commitments have expired, then the Commitment Percentage of each Lender
shall be determined based on the Commitment Percentage of such Lender most
recently in effect, giving effect to any subsequent assignments. The initial
Commitment Percentage of each Lender is set forth opposite the name of such
Lender on Schedule
1.1(a) attached hereto or in the Assignment and Assumption pursuant to
which such Lender becomes a party hereto, as applicable.

     

    "Compliance
Certificate" shall mean a compliance certificate in the form of Exhibit B attached
hereto.

     

    "Consolidated" or
"Consolidating"
shall mean consolidated or consolidating as defined in accordance with
GAAP.

     

    "Consolidated Entity"
or "Consolidated
Entities" shall mean, singly and collectively, the Borrower and any
Subsidiary of the Borrower that is Consolidated.

     

    "Consolidated EBITDA"
shall mean the sum of the Pro Rata Share of EBITDA for each Consolidated
Entity.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    "Consolidated Total
Assets" shall mean, for any Person, all assets of such Person and its
Subsidiaries determined on a consolidated basis in accordance with GAAP;
provided that all assets composed of real property shall be valued on an
undepreciated cost basis and the portion of any joint venture assets owned by
such Person shall be included in Consolidated Total Assets.  The
assets of a Person and its Subsidiaries shall be adjusted to reflect such
Person’s allocable share of such assets, for the relevant period or as of the
date of determination, taking into account (a) the relative proportion of each
such item derived from assets directly owned by such Person and from assets
owned by its Subsidiaries, and (b) such Person’s respective ownership interest
in its Subsidiaries.

     

    "Control" shall mean
the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the ability
to exercise voting power, by contract or otherwise.  "Controlling" and
"Controlled"
have meanings correlative thereto.

     

    "Cost to Repair" shall
have the meaning set forth in Section
14.3.1.

     

    "Credit Extension"
shall mean each of the following: (a) a Loan Advance, (b) a Swing Line Advance
and (c) an L/C Credit Extension.

     

    "Credit Facility"
shall mean all extensions of credit by a Lender, the Swing Line Lender or the
L/C Issuer to the Borrower pursuant to this Agreement.

     

    "Debt" shall mean,
with respect to any Person, without duplication, (i) all indebtedness of such
Person for borrowed money, (ii) all indebtedness of such Person for the deferred
purchase price of property or services (other than property and services
purchased, and expense accruals and deferred compensation items arising, in the
ordinary course of business), (iii) all obligations of such Person evidenced by
notes, bonds, debentures or other similar instruments (other than performance,
surety and appeal bonds arising in the ordinary course of business), (iv) all
indebtedness of such Person created or arising under any conditional sale or
other title retention agreement with respect to property acquired by such Person
(even though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such
property), (v) all obligations of such Person under leases which have been, or
should be, in accordance with GAAP, recorded as capital leases, to the extent
required to be so recorded, (vi) all reimbursement, payment or similar
obligations of such Person, contingent or otherwise, under acceptance, letter of
credit or similar facilities (other than letters of credit in support of trade
obligations or in connection with workers' compensation, unemployment insurance,
old-age pensions and other social security benefits in the ordinary course of
business), (vii) any Guarantee of any indebtedness or other obligation of any
Person, either directly or indirectly, of indebtedness described in clauses (i)
through (vi), and (viii) all Debt referred to in clauses (i) through (vii) above
secured by (or for which the holder of such Debt has an existing right,
contingent or otherwise, to be secured by) any Lien, security interest or other
charge or encumbrance upon or in property (including, without limitation,
accounts and contract rights) owned by such Person, even though such Person has
not assumed or become liable for the payment of such Debt.  For the
purposes of the calculation of the Financial Covenants, Debt of any entity in
which a Person owns an ownership interest shall be calculated on its Pro Rata
Share of such Debt, unless such Person has delivered a guaranty or other
indemnity in connection with such Debt creating a greater proportionate
liability, in which event, such greater liability shall apply.

     

    "Debt Service Coverage
Ratio" shall mean, for each Calculation Period, the ratio of (a)
Consolidated EBITDA to (b) Interest Expense.

     

    "Debtor Relief Laws"
shall mean the Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of the United States or other applicable jurisdictions from
time to time in effect and affecting the rights of creditors
generally.

     

    "Default" shall have
the meaning set forth in Section
10.1.

     

    "Default Rate" shall
mean (a) when used with respect to Borrower Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the
Applicable Margin, if any, applicable to Base Rate Advances plus (iii) four
percent (4.0%) per annum; provided, however, that with
respect to LIBO Rate Advances, the Default Rate shall be an interest rate equal
to the interest rate (including any Applicable Margin) otherwise applicable to
such LIBO Rate Advances plus four percent (4.0%) per annum and (b) when used
with respect to Letter of Credit Fees, a rate equal to the Applicable Margin for
LIBO Rate Advances plus four percent
(4.0%) per annum.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    "Defaulting Lender"
shall mean any Lender that (a) has failed to fund any portion of the Revolving
Loans, Swing Line Advances or participations in L/C Obligations required to be
funded by it hereunder within one Business Day of the date required to be funded
by it hereunder unless such failure has been cured, (b) has otherwise failed to
pay over to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within one Business Day of the date when
due, unless the subject of a good faith dispute or unless such failure has been
cured, or (c) has been deemed (or has had its direct or indirect parent) deemed
insolvent or become the subject of a bankruptcy or insolvency
proceeding.

     

    "Development Project"
is a real property which is being developed into, or upon which improvements are
being constructed to enable it to become, an apartment community owned by either
Borrower or a Subsidiary.

     

    "Distribution" shall
mean, with respect to any Person, that such Person has paid a dividend or
returned any equity capital to its stockholders, members or partners or made any
other distribution, payment or delivery of property (other than common stock or
partnership or membership interests of such Person) or cash to its stockholders,
members or partners as such, or redeemed, retired, purchased or otherwise
acquired, directly or indirectly, for a consideration any shares of any class of
its capital stock or any membership or partnership interests (or any options or
warrants issued by such Person with respect to its capital stock or membership
or partnership interests), or shall have permitted any of its Subsidiaries to
purchase or otherwise acquire for a consideration any shares of any class of the
capital stock or any membership or partnership interests of such Person (or any
options or warrants issued by such Person with respect to its capital stock or
membership or partnership interests). Without limiting the foregoing,
"Distributions" with respect to any Person shall also include all payments made
by such Person with respect to any stock appreciation rights, plans, equity
incentive or achievement plans or any similar plans.

     

    "Dividend Payout
Ratio" shall mean the ratio of (a) dividend payments for a trailing
twelve (12) month period (including both common stock dividends and preferred
stock dividends) to (b) Funds From Operations for said period.

     

    "Dollars" shall mean
lawful money of the United States.

     

    "Drawdown Date" shall
have the meaning set forth in Section
2.1.2(a).

     

    "EBITDA" shall mean
for any Person the sum of (i) net income (or loss), plus (ii) actual interest
paid or payable respecting all Debt to the extent included as an expense in the
calculation of net income (or loss), plus (iii) total Tax Expenses
to the extent included as an expense in the calculation of net income (or loss),
plus (iv) total
depreciation and amortization expense, to the extent included as an expense in
the calculation of net income (or loss), plus (v) losses from
extraordinary items, nonrecurring items, asset sales, write-ups or forgiveness
of debt, to the extent included as an expense in the calculation of net income,
minus (vi) gains from
extraordinary items, nonrecurring items, asset sales, write-ups or forgiveness
of debt, to the extent included as income in the calculation of net income,
minus (vii) allowances
for capital expenditures in the amount of $200.00 per annum per rental unit,
adjusted (viii) for the
elimination of straight line rents, all of the foregoing as determined in
accordance with GAAP, as appropriate.  Without limiting the generality
of the foregoing, in determining EBITDA, net income shall include as income,
Rent Loss Proceeds.

     

    "Eligibility Criteria"
shall mean the following criteria which must be satisfied in a manner acceptable
to the Administrative Agent for each Borrowing Base Property:

     

    (a)          the
Borrowing Base Property is an apartment community for which all Certificates of
Occupancy have been issued located in the United States owned by a Borrowing
Base Property Owner;

     

    (b)         
the Borrower provides reasonably acceptable historical operating and leasing
information;

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (c)          the
Borrower provides a certification as to the absence, to Borrower's knowledge, of
any material environmental issues;

     

    (d)          the
Borrower provides a certification as to the absence, to Borrower's knowledge, of
any material structural issues; and

     

    (e)          no
liens or encumbrances shall exist on the Borrowing Base Property upon its
inclusion as a Borrowing Base Property, other than Permitted Liens.

     

    "Eligible Assignee"
shall mean any Person that meets the requirements to be an assignee under Section 13.3.2
(including the requirements or limitations set forth in Sections 13.3.2(c),
13.3.2(e) and
13.3.2(f)),
subject to such consents, if any, as may be required under Section
13.3.2(c).

     

    "Employee" shall mean
a salaried, full time employee of either Borrower or any
Subsidiary.

     

    "Employee Note" shall
mean an unsecured promissory note executed by an Employee to the order of a
Borrower or a Subsidiary, evidencing a loan to such Employee.

     

    "Environmental Indemnity
Agreement" shall have the meaning set forth in Section 3.1.3, as
such agreements may be amended, restated, supplemented or otherwise updated or
modified from time to time.

     

    "ERISA" shall mean the
Employee Retirement Income Security Act of 1974, as amended from time to time,
and the regulations promulgated and rulings issued
thereunder.  Section references to ERISA are to ERISA, as in effect at
the date of this Agreement and any subsequent provisions of ERISA, amendatory
thereof, supplemental thereto or substituted therefor.

     

    "ERISA Affiliate"
shall mean each person (as defined in Section 3(9) of ERISA) which together with
either Borrower or a Loan Party would be deemed to be a "single employer" (i)
within the meaning of Section 414(b), (c), (m) or (o) of the Code or (ii) as a
result of either Borrower or a Loan Party being or having been a general partner
of such Person.

     

    "Event of Default"
shall have the meaning set forth in Section
10.1.

     

    "Event of Loss" shall
mean, with respect to any Collateral Property, any of the following: (a) any
loss or destruction of, or damage to, such Collateral Property of $100,000 or
more; or (b) any actual condemnation, seizure or taking, by exercise of the
power of eminent domain or otherwise, of such Collateral Property, or
confiscation of such Collateral Property or the requisition of such Collateral
Property by a Governmental Agency or any Person having the power of eminent
domain, or any voluntary transfer of such Collateral Property or any portion
thereof in lieu of any such condemnation, seizure or taking.

     

    "Excluded Taxes" shall
mean, with respect to the Administrative Agent, any Lender, the Swing Line
Lender, the L/C Issuer or any other recipient of any payment to be made by or on
account of any obligation of the Borrower hereunder, (a) taxes imposed on or
measured by its overall gross or net income (however denominated), and franchise
taxes or similar taxes imposed on it (in lieu of net income taxes), by the
jurisdiction (or any political subdivision thereof) under the Laws of which such
recipient is organized or in which its principal office is located or, in the
case of any Lender, in which its applicable Lending Office is located or with
which it has a present or former connection (other than any such connection
resulting from its having executed, delivered or performed its obligations or
received a payment under, or enforced, this Agreement or any other Loan
Document), (b) any branch profits taxes imposed by the United States or any
similar tax imposed by any other jurisdiction in which the Borrower is located,
(c) any backup withholding tax that is required by the Code to be withheld from
amounts payable to a Lender that has failed to comply with Section 2.8.5(b) and
(d) in the case of a Foreign Lender (other than an assignee pursuant to a
request by the Borrower under Section 13.2.4), any
United States withholding tax that (i) is required to be imposed on amounts
payable to such Foreign Lender pursuant to the Laws in force at the time such
Foreign Lender becomes a party hereto (or designates a new Lending Office) or
(ii) is attributable to such Foreign Lender's failure or inability (other than
as a result of a Change in Law) to comply with clause (ii) of Section 2.8.5(b),
except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new Lending Office (or assignment), to
receive additional amounts from the Borrower with respect to such withholding
tax pursuant to Section 2.8.5(b) or
2.8.5(c).

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    "Existing Borrowing Base
Properties" shall mean the Individual Properties that are qualified as
Borrowing Base Properties under the Existing Loan Agreement as of the Closing
Date.

     

    "Existing Letters of
Credit" shall mean those certain letters of credit listed on Schedule 1.1(b),
which shall be deemed to have been issued under the terms of this
Agreement.

     

    "Existing Loan
Agreement" shall have the meaning set forth in Recital
A.

     

    "Extended Maturity
Date" shall have the meaning set forth in Section
2.2.1.

     

    "Extended Term" shall
have the meaning set forth in Section
2.2.1.

     

    "Extension Fee" shall
have the meaning set forth in Section
2.2.1.

     

    "Fair Market Value"
shall be an amount, with respect to any Collateral Property, as determined not
later than the twenty-second (22nd) day of each calendar quarter, but as of the
last day of the immediately preceding calendar quarter, calculated by dividing
the prior calendar quarter’s annualized Adjusted Net Operating Income by an
eight and one half percent (8.50%) capitalization rate for the Existing
Borrowing Base Properties with the exception of the Reserve at Dexter Phases I,
II and III property located in Cordova, Tennessee, which shall be capitalized at
an eight percent (8.00%) capitalization rate. The Administrative Agent shall
determine, in its reasonable discretion, the capitalization rates utilized in
the definition of "Fair Market Value" for Individual Properties that become
Borrowing Base Properties pursuant to Section
3.5.

     

    "Federal Funds Rate"
shall mean, for any day, the rate per annum 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; provided, however, that (a) if
such day is not a Business Day, the Federal Funds Rate for such day shall be
such rate on such transactions in effect on the next preceding Business Day as
so published on the next succeeding Business Day, and (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such
day shall be the average rate (rounded upward, if necessary, to a whole multiple
of 1/100 of 1%) charged to Regions on such day on such transactions as
determined by the Administrative Agent.

     

    "Fee Letter" shall mean that certain fee
letter, dated as of January 12, 2010, by and among the Borrower, Regions and
Regions Capital Markets.

     

    "Financial Covenants"
shall mean those covenants of the Borrower set forth in Sections 7.19 through
7.25.

     

    "Fiscal Year" shall
mean each twelve month period commencing on January 1 and ending on December
31.

     

    "Fixed Charges" shall
mean the aggregate of the Pro Rata Share of all (a) Interest Expenses (excluding
any interest expenses required to be capitalized under GAAP), (b) regularly
scheduled principal amortization payments (other than any final "balloon"
payments due at maturity) on all Debt of the Consolidated Entities, (c)
preferred dividend payments or required Distributions (other than Distributions
by the Borrower to holders of operating partnership units and Distributions by
Parent to common equity holders) paid or payable by the Consolidated Entities,
and (d) Tax Expenses for the Consolidated Entities, all of the foregoing as
determined in accordance with GAAP.

     

    "Fixed Charge Ratio"
shall mean, for each Calculation Period, the ratio of (a) Consolidated EBITDA to
(b) Fixed Charges.

     

    "Foreign Lender" shall
mean any Lender that is not a United States person within the meaning of Section
7701(a)(30) of the Code.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    "Formation Documents"
shall mean, singly and collectively, the partnership agreements, joint venture
agreements, limited partnership agreements, limited liability company or
operating agreements and certificates of limited partnership and certificates of
formation, articles (or certificate) of incorporation and by-laws and any
similar agreement, document or instrument of any Person, as amended subject to
the terms and provisions hereof.

     

    "Fund" shall mean any
Person (other than a natural Person) that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its activities.

     

    "Funds from
Operations" shall mean consolidated net income of Parent for a trailing
twelve (12) month period (computed in accordance with GAAP), excluding gains (or
losses) from debt restructuring or sales of an Individual Property, plus
depreciation of Individual Properties.  Upon written pre-approval of
the Administrative Agent, exceptions may be made where the Board of Directors of
Parent determines, in good faith, that a special dividend must be paid to avoid
taxes due to excess gains from the sale of an Individual Property.

     

    "GAAP" shall mean
generally accepted accounting principles in the United States of
America.

     

    "Governmental
Authority" shall mean the government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including any
supra-national bodies such as the European Union or the European Central
Bank).

     

    "Guarantee" shall
mean, as to any Person, any obligation, contingent or otherwise, of such Person
guaranteeing or having the economic effect of guaranteeing any Debt or other
obligation payable or performable by another Person (the "primary obligor") in
any manner, whether directly or indirectly, and including any obligation of such
Person, direct or indirect, (i) to purchase or pay (or advance or supply funds
for the purchase or payment of) such Debt or other obligation, (ii) to purchase
or lease property, securities or services for the purpose of assuring the
obligee in respect of such Debt or other obligation of the payment or
performance of such Debt or other obligation, (iii) to maintain working capital,
equity capital or any other financial statement condition or liquidity or level
of income or cash flow of the primary obligor so as to enable the primary
obligor to pay such Debt or other obligation, or (iv) entered into for the
purpose of assuring in any other manner the obligee in respect of such Debt or
other obligation of the payment or performance thereof or to protect such
obligee against loss in respect thereof (in whole or in part).  The
amount of any Guarantee shall be deemed to be an amount equal to the stated or
determinable amount of the related primary obligation, or portion thereof, in
respect of which such Guarantee is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith and reasonably approved by the Administrative
Agent.  The term "Guarantee" as a verb
has a corresponding meaning.

     

    "Guaranty" shall have
the meaning set forth in Section 3.1.2 as such
agreements may be amended, restated, supplemented or otherwise updated or
modified from time to time.

     

    "Guarantor" or "Guarantors" shall
mean those certain Subsidiaries of Borrower that have entered into a
Guaranty.

     

    "Hazardous Material
Laws" shall have the meaning set forth in the Environmental Indemnity
Agreement.

     

    "Hazardous Materials"
shall mean and include asbestos, mold, flammable materials, explosives,
radioactive substances, polychlorinated biphenyls, radioactive substances, other
carcinogens, oil and other petroleum products, pollutants or contaminants that
could be a detriment to the environment, and any other hazardous or toxic
materials, wastes, or substances which are defined, determined or identified as
such in any past, present or future federal, state or local laws, rules, codes
or regulations, or any judicial or administrative interpretation of such laws,
rules, codes or regulations.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    "Impacted Lender"
shall mean any Lender as to which (a) L/C Issuer has a good faith belief that
the Lender has defaulted in fulfilling its obligations under one or more other
syndicated credit facilities or (b) an entity that controls the Lender has been
deemed insolvent or become subject to a bankruptcy or other similar
proceeding.

     

    "Increase Effective
Date" shall have the meaning set forth in Section
2.1.1(c).

     

    "Indemnified Taxes"
shall mean Taxes other than Excluded Taxes.

     

    "Indemnitee" shall
have the meaning set forth in Section
15.7.2.

     

    "Individual Property"
and "Individual
Properties" shall mean, from time to time, all real estate property owned
by any Consolidated Entity or any Unconsolidated Entity, together with all
improvements, fixtures, equipment, and personalty relating to such
property.

     

    "Initial Maturity
Date" shall have the meaning set forth in Section
2.2.1.

     

    "Initial Term" shall
have the meaning set forth in Section
2.2.1.

     

    "Inspection Report"
shall mean the written report commissioned by the Administrative Agent as part
of the due diligence process for determining whether an Individual Property may
become a Borrowing Base Property.

     

    "Insurance/Taking Release
Conditions" shall mean as to any Event of Loss, the following conditions:
(a) the Cost to Repair is less than or equal to Five Hundred Thousand Dollars
($500,000); (b) no Event of Default shall have occurred and be continuing; (c)
the Borrowing Base Property and the use thereof after the Repair Work will be in
compliance with, and permitted under, all applicable Laws; and (d) such Event of
Loss does not materially impair access to the Borrowing Base
Property.

     

    "Interest Expense"
shall mean the sum of the Pro Rata Share of the aggregate actual interest
(whether expensed or capitalized) paid or payable respecting all Debt by the
Consolidated Entities.

     

    "Interest Period"
shall mean, as to each LIBO Rate Advance, the period commencing on the date such
LIBO Rate Advance is disbursed or converted to or continued as a LIBO Rate
Advance and ending on the numerically corresponding day in the first, third or
sixth month thereafter, as selected by the Borrower in its Revolving Loan
Notice; provided, however,
that:

     

    (i)           any
Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day
falls in another calendar month, in which case such Interest Period shall end on
the next preceding Business Day;

     

    (ii)          any
Interest Period that begins on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall end on the last Business Day of the
calendar month at the end of such Interest Period; and

     

    (iii)          no
Interest Period shall extend beyond the Maturity Date.

     

    "Investment" shall
mean the acquisition of any real property or tangible personal property or of
any stock or other security, any loan, advance, bank deposit, money market fund,
contribution to capital, extension of credit (except for accounts receivable
arising in the ordinary course of business and payable in accordance with
customary terms), or purchase or commitment or option to purchase or otherwise
acquire real estate or tangible personal property or stock or other securities
of any party or any part of the business or assets comprising such business, or
any part thereof.

     

    "ISP" shall mean, with
respect to any Letter of Credit, the "International Standby Practices 1998"
published by the Institute of International Banking Law & Practice (or such
later version thereof as may be in effect at the time of issuance).

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    "Issuer Documents"
shall mean with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by
the L/C Issuer and the Borrower (or any Borrower Subsidiary) or in favor the L/C
Issuer and relating to any such Letter of Credit.

     

    "Knowledge" or "knowledge" shall
mean, with respect to any Loan Party, the actual knowledge of any Authorized
Officer of such Loan Party after reasonable inquiry. Notwithstanding the
foregoing, such named parties and their successors are not parties to this
Agreement and shall have no liability for a breach of any representation,
warranty, covenant or agreement deemed to be made to their actual
knowledge.

     

    "Late Charge" shall
have the meaning set forth in Section
2.3.14.

     

    "Laws" shall mean,
collectively, all Federal, state and local statutes, treaties, rules,
guidelines, regulations, ordinances, codes and administrative or judicial
precedents or authorities, including the interpretation or administration
thereof by any Governmental Authority charged with the enforcement,
interpretation or administration thereof, and all applicable administrative
orders, directed duties, requests, licenses, authorizations and permits of, and
agreements with, any Governmental Authority, in each case having the force of
law.

     

    "L/C Advance" shall
mean, with respect to each Lender, such Lender's funding of its participation in
any L/C Borrowing in accordance with its Commitment Percentage.

     

    "L/C Borrowing" shall
mean an extension of credit resulting from a drawing under any Letter of Credit
which has not been reimbursed on the date when made or repaid through a Loan
Advance.

     

    "L/C Credit Extension"
shall mean, with respect to any Letter of Credit, the issuance thereof or
extension of the expiry date thereof, or the increase of the amount
thereof.

     

    "L/C Draw" shall mean
a payment made by the Administrative Agent pursuant to a Letter of Credit which
was presented to the Administrative Agent for a draw of proceeds
thereunder.

     

    "L/C Exposure" shall
mean, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time, plus (b) the aggregate amount of all
L/C Draws that have not yet been reimbursed by or on behalf of the Borrower, or
repaid through a Loan Advance, at such time.

     

    "L/C Issuer" shall
mean Regions Bank, an Alabama banking corporation, in its capacity as issuer of
Letters of Credit hereunder, or any successor issuer of Letters of Credit
hereunder.

     

    "L/C Obligations"
shall mean, as of any date of determination, the aggregate amount available to
be drawn under all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings.  For purposes of
computing the amount available to be drawn under any Letter of Credit, the
amount of such Letter of Credit shall be determined in accordance with Section
2.6.13.  For all purposes of this Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may
still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP,
such Letter of Credit shall be deemed to be "outstanding" in the amount so
remaining available to be drawn.

     

    "Lease" shall mean any
lease relative to all or any portion of a Borrowing Base Property.

     

    "Lenders" shall have
the meaning set forth in the Preamble.

     

    "Lenders' Consultant"
shall have the meaning set forth in Section
7.29.

     

    "Lending Office" shall
mean, as to any Lender, the office or offices of such Lender described as such
in such Lender's Administrative Questionnaire, or such other office or offices
as a Lender may from time to time notify the Borrower and the Administrative
Agent.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    "Letter of Credit"
shall mean any standby letter of credit issued hereunder and shall include the
Existing Letters of Credit.

     

    "Letter of Credit
Application" shall mean an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the L/C
Issuer.

     

    "Letter of Credit Expiration
Date" shall mean the day that is seven days prior to the Maturity Date
then in effect (or, if such day is not a Business Day, the next preceding
Business Day).

     

    "Letter of Credit Fee"
shall have the meaning set forth in Section
2.6.9.

     

    "Letter of Credit
Sublimit" shall mean an amount equal to $10,000,000.  The
Letter of Credit Sublimit is part of, and not in addition to, the Total
Commitment.

     

    "Leverage Ratio" shall
mean the quotient (expressed as a percentage) resulting from dividing (i) the
aggregate of all Debt of the Consolidated Entities by (ii) the Total Market
Value of Assets.

     

    "LIBO Rate" shall
mean:

     

    (a)          For
any Interest Period with respect to a LIBO Rate Advance, the rate per annum
equal to (A) the British Bankers Association LIBOR Rate as published by a
recognized online information service, such as Bloomberg Financial Markets News
Service (or other commercially available source providing quotations of BBA
LIBOR as designated by the Administrative Agent from time to time) ("BBA LIBOR"), at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, for Dollar deposits (for delivery on the
first day of such Interest Period) with a term equivalent to such Interest
Period or (B) if such published rate is not available at such time for any
reason or in the event the Administrative Agent, in the reasonable exercise of
its discretion, determines that the rate so established and reported by the
British Bankers Association ceases to reflect accurately the rate offered by
leading banks in the London interbank market for such deposits, the rate
reasonably determined by the Administrative Agent to be the rate at which
deposits in Dollars for delivery on the first day of such Interest Period in
same day funds in the approximate amount of the LIBO Rate Advance being made,
continued or converted by Regions and with a term equivalent to such Interest
Period that would be offered by leading banks in the London interbank eurodollar
market at approximately 11:00 a.m. (London time) two Business Days prior to the
commencement of such Interest Period. For purposes of
determining the LIBO Rate in this subsection (a), such LIBO Rate shall never be
less than one and one-half percent (1.50%).

     

    (b)  
       For any interest rate calculation with
respect to a Base Rate Advance, the rate per annum equal to (i) BBA LIBOR, at
approximately 11:00 a.m., London time on the date of determination (provided
that if such day is not a London Business Day, the next preceding London
Business Day) for Dollar deposits being delivered in the London interbank market
for a term of one month commencing that day or (ii) if such published rate is
not available at such time for any reason or in the event the Administrative
Agent, in the reasonable exercise of its discretion, determines that the rate so
established and reported by the British Bankers Association ceases to reflect
accurately the rate offered by leading banks in the London interbank market for
such deposits, the rate reasonably determined by the Administrative Agent to be
the rate at which deposits in Dollars for delivery on the date of determination
in same day funds in the approximate amount of the Base Rate Advance being made,
continued or converted by Regions and with a term equal to one month would be
offered by leading banks in the London interbank Eurodollar market at the date
and time of determination.

     

    "LIBO Rate Advance"
shall mean any principal outstanding under this Agreement which pursuant to this
Agreement bears interest at the LIBO Rate plus the Applicable
Margin for LIBO Rate Advances.

     

    "Licenses and Permits"
shall mean all licenses, permits, authorizations and agreements issued by or
agreed to by any Governmental Authority or by a private party, and including,
but not limited to, building permits, occupancy permits and such special
permits, variances and other relief as may be required pursuant to Laws which
may be applicable to any Collateral Property.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    "Lien" shall mean any
mortgage, deed of trust, lien, pledge, hypothecation, assignment, security
interest, or any other encumbrance, charge or transfer, including, without
limitation, any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing, and mechanic's, materialmen's and other similar liens and
encumbrances.

     

    "Liquidation Proceeds"
shall mean amounts received by the Administrative Agent and/or the Lenders in
the exercise of the rights and remedies under the Loan Documents (including, but
not limited to, all rents, profits and other proceeds received by the
Administrative Agent and/or the Lenders from the liquidation of, or exercising
rights upon the occurrence of an Event of Default relative to, any Collateral,
but not including any amount bid at a foreclosure sale or on behalf of the
Administrative Agent or otherwise credited to the Borrower in, any deed-in-lieu
of foreclosure or similar transaction).

     

    "Loan Documents" shall
have the meaning set forth in Section
3.2.

     

    "Loan Party" and
"Loan Parties"
shall mean, singly and collectively, the Borrower, the Guarantors and each
Borrowing Base Property Owner, and any Subsidiary and Affiliate of any of the
foregoing which is party to any Loan Document.

     

    "Major Event of Loss"
shall mean, with respect to any Borrowing Base Property, both (1) any of the
following: (a) any loss or destruction of, or damage to, such Borrowing Base
Property such that either (x) the repairs and restoration thereof cannot be
completed, in the judgment of the Lenders' Consultant and if there is no
Lenders' Consultant, an independent architect or engineer retained by the
Borrower, within six (6) months after the occurrence of such loss, damage or
destruction or (y) rendering more than twenty-five percent (25%) of the
apartment units of such Borrowing Base Property uninhabitable, as determined by
the applicable Lenders' Consultant and if there is no Lenders' Consultant, an
independent architect or engineer retained by the Borrower; or (b) any actual
condemnation, seizure or taking, by exercise of the power of eminent domain or
otherwise, of such Borrowing Base Property, or confiscation of such Borrowing
Base Property or the requisition of such Borrowing Base Property by a
Governmental Authority or any Person having the power of eminent domain, or any
voluntary transfer of such Borrowing Base Property or any portion thereof in
lieu of any such condemnation, seizure or taking, rendering more than
twenty-five percent (25%) of the apartment units of such Borrowing Base Property
uninhabitable, as determined by the Lenders' Consultant and if there is no
Lenders' Consultant, an independent architect or engineer retained by the
Borrower, and (2) the Administrative Agent does not elect under Section 14.3.3 to
make Net Proceeds with respect to such Event of Loss available for Repair
Work.

     

    "Mandatory Principal
Payment" shall have the meaning set forth in Section
2.3.8.

     

    "Material Adverse
Effect" shall mean a material adverse effect on (i) the business, assets,
operations or financial or other condition of either Borrower, or, taken as a
whole, the Loan Parties, (ii) the ability of either Borrower, or, taken as a
whole, the Loan Parties to perform any material Obligations or to pay any
Obligations which it is or they are obligated to pay in accordance with the
terms hereof or of any other Loan Document, (iii) the rights of, or benefits
available to, the Administrative Agent and/or any of the Lenders under any Loan
Document or (iv) any Lien given to Administrative Agent and/or any of the
Lenders on any material portion of the Collateral or the priority of any such
Lien.

     

    "Maturity" shall mean
the Initial Maturity Date, or, if extended pursuant to the terms hereof, the
Extended Maturity Date, or, in any instance, upon acceleration of the Credit
Facility, if the Credit Facility has been accelerated by the Lenders upon an
Event of Default.

     

    "Maturity Date" shall
have the meaning set forth in Section
2.2.1.

     

    "Maximum Loan Amount"
shall have the meaning set forth in Section
2.1.1(a).

     

    "Maximum Rate" shall
have the meaning set forth in Section
15.2.

     

    "Mid-America" shall
mean Mid-America
Apartments, L.P., a Tennessee limited partnership.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    "Mortgage" shall have
the meaning set forth in Section 3.1.1, as
such agreements may be amended, restated, supplemented or otherwise updated or
modified from time to time.

     

    "Net Operating Income"
shall mean, for any period of determination, (i) net operating income generated
by an Individual Property for such period (i.e., gross operating income,
inclusive of any rent loss insurance, less expenses (exclusive of debt service,
capital expenditures and vacancy allowances and before depreciation and
amortization)), determined in accordance with GAAP, as generated by, through or
under Leases, and (ii) all other income arising from direct operations of or
licenses or operating agreements for any part of the Individual Property
determined on a GAAP basis. For purposes hereof, all rental income shall be
adjusted for straight line rents.  Borrower shall provide the
Administrative Agent with all information and materials required by the
Administrative Agent necessary for the determination of Net Operating
Income.  If any Leases are scheduled to expire during such period of
determination, no rents or other amounts payable under such Leases with respect
to any portion of such period occurring after such scheduled expiration date
shall be included in the determination of Net Operating Income for such
period.  If any Leases are scheduled to commence (and rent and
occupancy pursuant thereto are also scheduled to commence) during such period of
determination, the rents and other amounts payable under such Leases with
respect to any period occurring after the scheduled commencement date shall be
included in the determination of Net Operating Income for such
period.

     

    "Net Proceeds" shall
mean (i) the net amount of all insurance proceeds received under any insurance
policies other than Rent Loss Proceeds as a result of the occurrence of an Event
of Loss described in clause (a) of the definition of Event of Loss with respect
to any Collateral Property, after deduction of the reasonable costs and expenses
(including, but not limited to reasonable counsel fees), if any, in collecting
the same, or (ii) the net amount of all awards and payments received with
respect to the occurrence of an Event of Loss described in clause (b) of the
definition of Event of Loss, after deduction of the reasonable costs and
expenses (including, but not limited to reasonable counsel fees), if any, in
collecting the same, whichever the case may be.

     

    "Net Worth" shall mean
(a) the sum of (i) total Parent shareholders' equity in Mid-America and (ii) the
limited partners' interest in Mid-America (both controlling and non-controlling
interests) as of the Calculation Date appearing on the consolidated financial
statements of Parent as determined in accordance with GAAP, plus (b) depreciation
and amortization provided after December 31, 2009 through the Calculation Date
on a cumulative basis.

     

    "Non-Stabilized Asset"
shall mean an Individual Property that is not a Stabilized Asset.

     

    "Note" shall mean,
collectively, the various promissory notes payable to each Lender in the form of
Exhibit C attached hereto.

     

    "Obligations" shall
mean without limitation, all and each of the following, whether now existing or
hereafter arising:

     

    (a)          Any
and all direct and indirect liabilities, debts, and obligations of the Borrower
or any Loan Party to the Administrative Agent or any Lender under or arising out
of the Loan Documents, each of every kind, nature, and description.

     

    (b)          Each
obligation to repay any loan, advance, indebtedness, note, obligation,
overdraft, or amount now or hereafter owing by the Borrower or any Loan Party to
the Administrative Agent or any Lender (including all future advances whether or
not made pursuant to a commitment by the Administrative Agent or any Lender)
under or arising out of the Loan Documents, whether or not any of such are
liquidated, unliquidated, primary, secondary, secured, unsecured, direct,
indirect, absolute, contingent, or of any other type, nature, or description, or
by reason of any cause of action which the Administrative Agent or any Lender
may hold against the Borrower or any Loan Party including, without limitation,
any obligation arising under any Swap Contract with the Administrative Agent or
any Lender.

     

    (c)          All
notes and other obligations of the Borrower or any Loan Party now or hereafter
assigned to or held by the Administrative Agent or any Lender under or arising
out of the Loan Documents, each of every kind, nature, and
description.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (d)          All
interest, fees, and charges and other amounts which may be charged by the
Administrative Agent or any Lender to the Borrower or any Loan Party and/or
which may be due from the Borrower or any Loan Party to the Administrative Agent
or any Lender from time to time under or arising out of the Loan
Documents.

     

    (e)          All
costs and expenses incurred or paid by the Administrative Agent or any Lender in
respect of any agreement between the Borrower or any Loan Party and the
Administrative Agent or any Lender or instrument furnished by the Borrower or
any Loan Party to the Administrative Agent or any Lender (including, without
limitation, costs of collection, attorneys' reasonable fees, and all court and
litigation costs and expenses) in connection with the Credit
Facility.

     

    (f)           Any
and all covenants of the Borrower or any Loan Party to or with the
Administrative Agent or any Lender and any and all obligations of the Borrower
or any Loan Party to act or to refrain from acting in accordance with any
agreement between the Borrower or any Loan Party and the Administrative Agent or
any Lender or instrument furnished by the Borrower or any Loan Party to the
Administrative Agent or any Lender in connection with the Credit
Facility.

     

    "Occupancy Ratio"
shall mean with respect to any Borrowing Base Property, the ratio as determined
by the Administrative Agent of the number of rental units thereof as to which
tenants are in physical occupancy and paying rent, to the total number of rental
units thereof.  Notwithstanding the foregoing, the Occupancy Ratio for
any Borrowing Base Property as to which an Event of Loss has occurred to the
extent that twenty-five percent (25%) or less of the apartment units included in
such Stabilized Asset are rendered uninhabitable shall be equal to the greater
of (i) the actual Occupancy Ratio with respect thereto or (ii) the Occupancy
Ratio immediately prior to the said Event of Loss for a period equal to the
lesser of (x) six (6) months from the occurrence of the Event of Loss or (y) the
determination that the subject Borrowing Base Property is not, or ceases to be,
a Restoration Property.

     

    "Officer's
Certificate" shall mean a certificate delivered to the Administrative
Agent by the Borrower, a Borrower Subsidiary, or a Guarantor, as the case may be
respectively, which is signed by an Authorized Officer.

     

    "Other Taxes" shall
mean all present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies arising from any payment made
hereunder or under any other Loan Document or from the execution, delivery or
enforcement of, or otherwise with respect to, this Agreement or any other Loan
Document.

     

    "Outstanding Amount"
shall mean (i) with respect to the Revolving Loan Advances on any date, the
aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of the Revolving Loan Advances
occurring on such date; (ii) with respect to the Swing Line Advances on any
date, the aggregate outstanding principal amount thereof after giving effect to
any borrowings and prepayments or repayments of Swing Line Advances occurring on
such date and (iii) with respect to any L/C Obligations on any date, the amount
of such L/C Obligations on such date after giving effect to any L/C Credit
Extension occurring on such date and any other changes in the aggregate amount
of the L/C Obligations as of such date, including as a result of any
reimbursements by the Borrower of Unreimbursed Amounts.

     

    "Parent" shall mean
Mid-America Apartment Communities, Inc., a Tennessee corporation.

     

    "Participant" shall
have the meaning set forth in Section
13.3.4.

     

    "PBGC" shall mean the
Pension Benefit Guaranty Corporation established pursuant to Section 4002 of
ERISA, or any successor thereto.

     

    "Permitted
Distributions" shall mean (a) so long as no Event of Default exists and
is continuing, or would be created thereby, any Distributions by the Borrower,
(i) in any amount, provided that such Distributions, to the extent not included
in the determination of Adjusted FFO, shall not exceed ninety percent (90%) of
Adjusted FFO for the just completed calendar quarter (with the initial test to
be for the quarter ending March 31, 2010); provided, however, that any
Distributions by the Borrower shall be permitted as are necessary for Parent to
maintain REIT status including any Distributions that are greater than the
amounts set forth in this subclause (a)(i), (ii) concerning the repurchase or
redemption of stock of Parent or partnership interests in Mid-America, or (iii)
concerning the issuance of operating partnership units or stock in return for
equity interests in connection with any Permitted Investment, or (b) at any time
after and during the continuance of any Event of Default, such Distributions as
are necessary for Parent to maintain REIT status (measured on a quarterly
basis), all of the foregoing tested by the Borrower on each Calculation Date
with results based upon the results for the most recent Calculation Period, such
calculation and results to be as verified by the Administrative
Agent.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    "Permitted
Investments" shall mean the following:

     

    (a)          The
Pro Rata Share of Investments in (i) Development Projects (valued at
undepreciated Book Value) and (ii) Unconsolidated Entities including, without
limitation, the purchase of all or any portion of any interests held by persons
that are not Wholly-Owned Subsidiaries of the Borrower, which, in the aggregate,
do not exceed seven and one-half percent (7.5%) of Total Market Value of
Assets;

     

    (b)          The
Pro Rata Share of Investments in Land Assets which, in the aggregate, valued at
Book Value do not exceed seven and one-half percent (7.5%) of Total Market Value
of Assets;

     

    (c)          Investments
in Swap Contracts;

     

    (d)          Investments
in Individual Properties or in entities which own such Individual Properties,
provided that such investment does not cause a breach of a Financial Covenant;
provided, however, that in the
event such an Investment in an entity would result in the ownership by the
subject Loan Party of fifty percent (50%) or more in the aggregate of the equity
interests in such entity, such Investment shall have been approved by the Board
of Directors of the entity (or similar governing body if such entity is not a
corporation) which is the subject of such Investment and such entity shall not
have announced that it will oppose such Investment or shall not have commenced
any action which alleges that such Investment will violate any applicable Law;
and

     

    (e)          Investments
in money market mutual funds rated AAA by Standard & Poor's Rating
Service.

     

    "Permitted Liens"
shall have the meaning set forth in Section
8.2.

     

    "Permitted Loan" shall
mean a loan from either Borrower or a Subsidiary to an Employee, evidenced by an
Employee Note, made for the sole purpose of providing funds to an Employee for
investment by an Employee in a Borrower or a Subsidiary, and, in connection with
such loan, there is a related Supplemental Bonus Agreement with such
Employee.

     

    "Person" shall mean
any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other
entity.

     

    "Plan" shall mean any
multiemployer or single-employer plan as defined in Section 4001 of ERISA, which
is maintained or contributed to by (or to which there is an obligation to
contribute of) any Loan Party or any ERISA Affiliate, including each such Plan
for the five year period immediately following the latest date on which such
Loan Party or an ERISA Affiliate maintained, contributed to or had an obligation
to contribute to such Plan.

     

    "Preliminary Approval"
shall mean the following:

     

    (a)          Delivery
by the Borrower to the Administrative Agent and the Lenders of the following
with respect to any Individual Property proposed to be a Borrowing Base
Property, each such item to the reasonable satisfaction of the Administrative
Agent and the Required Lenders:

     

    (i)           physical
description;

     

    (ii)          current
rent roll and operating statements;

     

    (iii)         to
the extent then available in Borrower's files, the following: a survey,
environmental reports, copies of existing title insurance policies or a title
commitment, and copies of all title exceptions, engineering reports and similar
information; and

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (iv)         the
Borrower's certification that to its knowledge the proposed Borrowing Base
Property presently satisfies (or is anticipated to satisfy upon the grant of
such Collateral) the Eligibility Criteria set forth in subsections (a), (c),
(d), and (e) of the definition of Eligibility Criteria.

     

    (b)         Administrative
Agent and the Required Lenders shall, within ten (10) Business Days after
delivery of all items described in subsection (a), above, grant or deny the
preliminary approval for the proposed replacement Borrowing Base
Property.

     

    "Prime Rate" shall
mean the rate of interest in effect for such day as publicly announced from time
to time by Regions as its "prime rate."  The "prime rate" is a rate
set by Regions based upon various factors including Regions' costs and desired
return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below
such announced rate.  Any change in such rate announced by Regions
shall take effect at the opening of business on the day specified in the public
announcement of such change.

     

    "Pro Rata Share" shall
mean a calculation based on the percentage of the Capital Stock of or other
equity interest in any Person owned, directly or indirectly, by the
Borrower.

     

    "Prohibited Debt"
shall have the meaning set forth in Section
8.4.

     

    "Public Lender" shall
have the meaning set forth in Section
7.2.10.

     

    "Refunded Swing Line
Advances" shall have the meaning set forth in Section
2.7.2.

     

    "Refunding Date" shall
have the meaning set forth in Section
2.7.2.

     

    "Regions" shall mean
Regions Bank, an Alabama banking corporation and its successors and
assigns.

     

    "Register" shall have
the meaning set forth in Section
13.3.3.

     

    "REIT" shall mean a
"real estate investment trust" as such term is defined in Section 856 of the
Code.

     

    "Related Parties"
shall mean, with respect to any Person, such Person's Affiliates and the
partners, directors, officers, employees, agents, trustees and advisors of such
Person and of such Person's Affiliates.

     

    "Release Conditions"
shall have the meaning set forth in Section
3.3.

     

    "Rent Loss Proceeds"
shall mean the proceeds received under any rent loss or business interruption
insurance policies.

     

    "Repair Work" shall
have the meaning set forth in Section
14.1.

     

    "Reportable Event"
shall mean an event described in Section 4043(b) of ERISA with respect to a Plan
other than those events as to which the 30-day notice period is waived under
subsection .13, .14, .16, .18, .19 or .20 of PBGC Regulation Section 2615, or as
otherwise now or hereafter defined in ERISA.

     

    "Required Lenders"
shall mean, as of any date of determination, Lenders having more than 66 2/3% of
the Total Commitments or, if the Commitment of each Lender to make Revolving
Loan Advances, the obligation of the Swing Line Lender to make Swing Line
Advances and the obligation of the L/C Issuer to make L/C Credit Extensions have
been terminated pursuant to Article 11, Lenders
holding in the aggregate at least 66 2/3% of the Obligations (including the
aggregate amount of each Lender's risk participation and funded participation in
L/C Obligations); provided, however, that the
Commitment of, and the portion of the Obligations held or deemed held by, any
Defaulting Lender shall be excluded for purposes of making a determination of
Required Lenders; provided further,
however, that
so long as there are two or more Lenders which are not then Defaulting Lenders,
then the Required Lenders shall be comprised of not less than two such
non-Defaulting Lenders.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    "Restoration Property"
shall mean any Collateral Property as to which an Event of Loss has occurred and
as to which the Net Proceeds are being made available in accordance with the
terms and provisions of Article 14 for Repair
Work relative to the subject Collateral Property and such Repair Work can be
completed in six (6) months, as determined by the Administrative Agent in its
reasonable discretion.

     

    "Revolving Loan" shall
mean the extensions of credit by the Lenders to the Borrower under Section 2.1.1(a) in
the form of Revolving Loan Advances.

     

    "Revolving Loan
Advances" shall have the meaning set forth in Section
2.1.1(a).

     

    "Revolving Loan
Notice" shall have the meaning set forth in Section
2.1.2(b).

     

    "Security Documents"
shall have the meaning set forth in Section
3.2.

     

    "Significant
Subsidiary" shall mean any existing or future Wholly-Owned Subsidiary of
the Borrower whose assets constitute more than thirty percent (30%) of the Total
Market Value of Assets of the Borrower.  Significant Subsidiary does
not include Mid-America.

     

    "Stabilized Asset"
shall mean an Individual Property which has maintained an Occupancy Ratio of
equal to or greater than eighty percent (80%) for at least the immediately
preceding two (2) consecutive months.

     

    "State" shall mean the
State or Commonwealth in which the subject of such reference or any part thereof
is located.

     

    "Subsidiary" shall
mean, as to any Person, a corporation, partnership, limited liability company or
other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests having
such power only by reason of the happening of a contingency) to elect a majority
of the board of directors or other managers of such corporation, limited
liability company, partnership or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly through one
or more intermediaries, or both, by such Person.

     

    "Supplemental Bonus
Agreement" shall mean a compensation agreement between an Employee and a
Borrower or a Subsidiary, providing certain monetary benefits to such Employee,
and including the right of the Borrower or Subsidiary, as the case may be, to
apply amounts due thereunder to the Employee Note executed by such
Employee.

     

    "Swap Contract" shall
mean (a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options,
forward commodity contracts, equity or equity index swaps or options, bond or
bond price or bond index swaps or options or forward bond or forward bond price
or forward bond index transactions, interest rate options, forward foreign
exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions,
currency options, spot contracts, or any other similar transactions or any
combination of any of the foregoing (including any options to enter into any of
the foregoing), whether or not any such transaction is governed by or subject to
any master agreement, and (b) any confirmations relating to the foregoing
transactions and any Master Agreements related thereto, including, without
limitation, any form of master agreement published by the International Swaps
and Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together
with any related schedules, a "Master
Agreement").

     

    "Swap Termination
Value" shall mean, with respect to the Borrower or a Borrower Subsidiary,
in respect of any one or more Swap Contracts, after taking into account the
effect of any legally enforceable netting agreement relating to such Swap
Contracts, for any date on or after the date such Swap Contracts have been
closed out and termination value(s) determined in accordance therewith, such
termination value(s) to be payable by the Borrower or such
Subsidiary.

     

    "Swing Line Advances"
shall have the meaning set forth in Section
2.7.1.

     

    "Swing Line Lender
Advance" shall have the meaning set forth in Section
2.7.2.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    "Swing Line Lender"
shall mean Regions Bank, an Alabama banking corporation, in its capacity as the
lender of Swing Line Advances, or any successor thereof.

     

    "Swing Line Note"
shall mean the promissory note of the Borrower payable to the Swing Line Lender
in a principal amount equal to the amount of the Swing Line
Sublimit.

     

    "Swing Line Sublimit"
shall mean an amount equal to $4,000,000.  The Swing Line Sublimit is
part of, and not in addition to, the Total Commitment.

     

    "Tax Expenses" shall
mean tax expense (if any) attributable to income and franchise taxes based on or
measured by income, whether paid or accrued.

     

    "Taxes" shall mean all
present or future taxes, levies, imposts, duties, deductions, withholdings
(including backup withholding), assessments, fees or other charges imposed by
any Governmental Authority, including any interest, additions to tax or
penalties applicable thereto.

     

    "Total Commitment"
shall mean the sum of the Commitments of the Lenders, as in effect from time to
time.  On the Closing Date the Total Commitment equals
$50,000,000.00.

     

    "Total Development and Joint
Venture Investment" shall mean the aggregate from time to time of (i)
Borrower's expenditures with respect to any Individual Property for land
acquisition, development and construction costs until a Certificate of Occupancy
is received for such entire Individual Property (or, if no Certificate of
Occupancy is available from the local Governmental Authority having
jurisdiction, until all construction of the entire Individual Property has been
completed) and (ii) the amount of funds or other assets invested by Borrower in
any joint venture arrangement with any Person, whether or not a Related Party,
valued in accordance with GAAP.

     

    "Total Development and Joint
Venture Investment Ratio" shall mean the ratio of (a) Total Development
and Joint Venture Investment to (b) Total Market Value of Assets.

     

    "Total Market Value of
Assets" shall mean, for any Person, all assets of such Person and its
Subsidiaries determined on a consolidated basis in accordance with GAAP; provided, however, that all
assets composed of real property shall be valued on an undepreciated cost basis
and the portion of any joint venture assets owned by such Person shall be
included in Total Market Value of Assets.  The assets of a Person and
its Subsidiaries shall be adjusted to reflect such Person’s allocable share of
such assets, for the relevant period or as of the date of determination, taking
into account (a) the relative proportion of each such item derived from assets
directly owned by such Person and from assets owned by its Subsidiaries, and (b)
such Person’s respective ownership interest in its Subsidiaries.

     

    "Total Outstandings"
shall mean the aggregate Outstanding Amount.

     

    "Type" shall mean,
with respect to any Revolving Loan Advance, its character as a Base Rate Advance
or a LIBO Rate Advance.

     

    "UCC" or the "Uniform Commercial
Code" shall mean the Uniform Commercial Code in effect in the State of
Tennessee; provided, however, that as same
relates to a Collateral Property, the UCC shall mean the Uniform Commercial Code
as adopted in such jurisdiction.

     

    "Unconsolidated
Entity" or "Unconsolidated
Entities" shall mean each Person as to which the Borrower owns, directly
or indirectly, any Capital Stock, but which is not a Consolidated
Subsidiary.

     

    "United States" and
"U.S." shall
each mean the United States of America.

     

    "Unreimbursed Amount"
shall have the meaning set forth in Section
2.6.3(a).

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    "Wholly-Owned
Subsidiary" shall mean, with respect to any Person, any other Person as
to which one hundred (100%) percent of the Capital Stock thereof is owned,
directly or indirectly, by such Person.  Wholly-Owned Subsidiary does
not include Mid-America.

     

    
      	  	
              1.2

            	
              Other
      Interpretive Provisions.

            

    

     

    With
reference to this Agreement and each other Loan Document, unless otherwise
specified herein or in such other Loan Document:

     

    (a)          The
definitions of terms herein shall apply equally to the singular and plural forms
of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter
forms.  The words "include," "includes" and "including" shall be
deemed to be followed by the phrase "without limitation."  The word
"will" shall be
construed to have the same meaning and effect as the word "shall."  Unless
the context requires otherwise, (i) any definition of or reference to any
agreement, instrument or other document (including any Formation Document) shall
be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein
or in any other Loan Document), (ii) any reference herein to any Person shall be
construed to include such Person's successors and assigns subject to
restrictions on assignments as set forth in this Agreement, (iii) the words
"herein,"
"hereof" and
"hereunder,"
and words of similar import when used in any Loan Document, shall be construed
to refer to such Loan Document in its entirety and not to any particular
provision thereof, (iv) all references in a Loan Document to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, the Loan Document in which such references
appear, (v) any reference to any Law shall include all statutory and regulatory
provisions consolidating, amending, replacing or interpreting such Law and any
reference to any Law or regulation shall, unless otherwise specified, refer to
such Law or regulation as amended, modified or supplemented from time to time,
and (vi) the words "asset" and "property" shall be
construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

     

    (b)          In
the computation of periods of time from a specified date to a later specified
date, the word "from" means "from and including;"
the words "to"
and "until"
each mean "to but
excluding;" and the word "through" means "to and
including."

     

    (c)          Section
headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Document.

     

    
      	  	
              1.3

            	
              Accounting
      Terms.

            

    

     

    (a)          Generally.  All
accounting terms not specifically or completely defined herein shall be
construed in conformity with, and all financial data (including financial ratios
and other financial calculations) required to be submitted pursuant to this
Agreement shall be prepared in conformity with, GAAP applied on a consistent
basis, as in effect from time to time, applied in a manner consistent with that
used in preparing the financial statements required by Section 7.2.1, except
as otherwise specifically prescribed herein.

     

    (b)          Changes in
GAAP.  If at any time any change in GAAP would affect the
computation of any financial ratio or requirement set forth in any Loan
Document, and either the Borrower or the Required Lenders shall so request, the
Administrative Agent, the Lenders and the Borrower shall negotiate in good faith
to amend such ratio or requirement to preserve the original intent thereof in
light of such change in GAAP (subject to the approval of the Required Lenders);
provided, however, that until
so amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) the Borrower shall
provide to the Administrative Agent and the Lenders financial statements and
other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in
GAAP.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	  	
              1.4

            	
              Rounding.

            

    

     

    Any
financial ratios required to be maintained by the Borrower pursuant to this
Agreement shall be calculated by dividing the appropriate component by the other
component, carrying the result to one place more than the number of places by
which such ratio is expressed herein and rounding the result up or down to the
nearest number (with a rounding-up if there is no nearest
number).  For example purposes only, in calculating the Fixed Charge
Ratio, the calculation shall initially result in three numbers right of the
decimal point.  If the last number is four or less, the total number
shall be rounded down.  If the last number is 5 or more, the total
number shall be rounded up.

     

    
      	  	
              1.5

            	
              Times
      of Day.

            

    

     

    Unless
otherwise specified, all references herein to times of day shall be references
to Central time (daylight or standard, as applicable).

     

    
      	  	
              1.6

            	
              Letter
      of Credit Amounts. 

            

    

     

    Unless
otherwise specified herein, the amount of a Letter of Credit at any time shall
be deemed to be the stated amount of such Letter of Credit in effect at such
time; provided,
however, that
with respect to any Letter of Credit that, by its terms or the terms of any
Issuer Document related thereto, provides for one or more automatic increases in
the stated amount thereof, the amount of such Letter of Credit shall be deemed
to be the maximum stated amount of such Letter of Credit after giving effect to
all such increases, whether or not such maximum stated amount is in effect at
such time.

     

    
      	
              2.

            	
              CREDIT FACILITY
      PROVISIONS.

            

    

     

    
      
        	  	
                2.1

              	
                General
      Revolving Loan
Provisions.

              

      

     

    2.1.1       Limit.

     

    (a)           Subject
to all of the terms and conditions hereof, the Lenders hereby agree to make
revolving loan advances (the "Revolving Loan
Advances") to the Borrower between the date hereof and the Maturity Date;
provided, however, that the
Total Outstandings shall at no time exceed the lesser of (i) the Total
Commitment and (ii) the Borrowing Base Value (the lesser of (i) and (ii), the
"Maximum Loan
Amount").  Revolving Loan Advances may be repaid and reborrowed
in accordance with the provisions of this Agreement.

     

    (b)           The
obligations of the Lenders hereunder are several and independent and not
joint.  No Lender shall become obligated to advance more than its
Commitment Percentage of the Credit Facility including, without limitation, as a
result of the failure of any Lender to fulfill its obligations
hereunder.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (c)           Provided
no Default or Event of Default shall then be in existence, the Borrower shall
have the right, on one or more occasions prior to the date which is the one (1)
year anniversary of the Closing Date, to elect to increase the Total Commitment;
provided, however, that (i) the
amount of each such increase shall not be less than Ten Million Dollars
($10,000,000) and (ii) the aggregate amount of all such increases shall not
cause the Total Commitment to exceed Seventy Million Dollars
($70,000,000).  Such right may be exercised by the Borrower by written
notice to the Administrative Agent (who will in turn promptly notify the
Lenders), which election shall designate the requested increase in the Total
Commitment.  At the time of sending such notice, the Borrower (in
consultation with the Administrative Agent) shall specify the time period within
which each Lender is requested to respond (which shall in no event be less than
ten (10) Business Days from the date of delivery of such notice to the Lenders),
and each Lender shall endeavor to respond as promptly as possible within such
time period.  Each Lender shall notify the Administrative Agent within
such time period whether or not such Lender agrees to increase its Commitment
(which decision shall be in its sole discretion) and, if so, whether by an
amount equal to, greater than, or less than its Commitment Percentage of such
requested increase.  Any Lender not responding within such time period
shall be deemed to have declined to increase its Commitment.  The
Administrative Agent shall notify the Borrower and each Lender of the Lenders'
responses to each request made hereunder.  To achieve the full amount
of a requested increase (in the event that one or more of the Lenders does not
agree to increase its Commitment(s) by the amount of the Borrower's requested
increase) and subject to the approval of the Administrative Agent, the Swing
Line Lender and the L/C Issuer (which approvals shall not be unreasonably
withheld, conditioned or delayed), the Borrower may also invite additional
Eligible Assignees to become Lenders pursuant to a joinder agreement in form and
substance reasonably satisfactory to the Administrative Agent and its counsel
(it being understood that the Lenders will have the first opportunity to
increase their Commitments in response to the Borrower's request for increase
hereunder before an Eligible Assignee can be considered as a new Lender). If the
Total Commitment is increased in accordance with this Section, the
Administrative Agent and the Borrower shall determine the effective date (the
"Increase Effective
Date") and the final allocation of such increase, and Schedule 1.1(a) will
be revised accordingly, if requested by any Lender.  The
Administrative Agent shall promptly notify the Borrower and the Lenders of the
final allocation of such increase (with such increase being pro rata among
existing Lenders choosing to increase their commitments) and the Increase
Effective Date. As a condition precedent to such increase, the Borrower shall
deliver to the Administrative Agent a certificate of the Borrower dated as of
the Increase Effective Date signed by an Authorized Officer of the Borrower (i)
certifying and attaching the resolutions adopted by the Borrower approving or
consenting to such increase, and (ii) certifying that, before and after giving
effect to such increase, (A) the representations and warranties contained in
Article 6 and
the other Loan Documents are true and correct in all material respects on and as
of the Increase Effective Date, except to the extent that such representations
and warranties specifically refer to an earlier date, in which case they are
true and correct in all material respects as of such earlier date, and except
that for purposes of this Section 2.1.1(c), the
representations and warranties contained in Section 6.8 shall be
deemed to refer to the most recent statements furnished to the Administrative
Agent, and (B) to Borrower's knowledge, no Default or Event of Default
exists.  The Borrower shall prepay amounts of the Credit Facility
outstanding on the Increase Effective Date (and pay any additional amounts
required pursuant to Section 2.3.15) to
the extent necessary to keep the outstanding Credit Facility ratable with any
revised Commitment Percentages arising from any non-ratable increase in the
Commitments under this Section.  This Section shall supersede any
provisions in Section
12.2 or 13.4.1 to the
contrary.

     

    2.1.2       Procedures
and Limits.  Until the Maturity Date, the Lenders, subject to
the compliance with all of the other terms, conditions and provisions of this
Agreement and the absence of any Default or Event of Default at the time of such
disbursement, shall make disbursements to Borrower of Revolving Loan Advances in
installments in accordance with the following:

     

    (a)          Written
Requests.  Revolving Loan Advances shall be made, at Borrower's
written request to Administrative Agent, not more frequently than four (4) times
a month, on the basis of written requests, made in accordance with the method
and procedures described in Section 2.1.3 below;
and Administrative Agent shall act upon such requests within three (3) Business
Days following the receipt of a written request from Borrower for a Revolving
Loan Advance, which action may include, without limitation, funding the
requested Revolving Loan Advance or specifying the basis for not funding and,
when applicable, requesting additional information and supporting
documentation.  The date on which any Revolving Loan Advance is funded
(or Swing Line Advance is funded or Letter of Credit is issued) is herein called
a "Drawdown
Date."

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    (b)          Requisitions,
Certifications.  Each request for a Revolving Loan Advance
shall be in writing and in the form attached hereto as Exhibit D (a "Revolving Loan
Notice").  Each such request shall specify (i) the amount of
the Revolving Loan Advance requested, (ii) the purpose of the Revolving Loan
Advance requested, (iii) the Total Outstandings (including the funding of the
Revolving Loan Advance being requested), (iv) the then aggregate remaining
amount which may be funded under this Agreement, (v) calculations evidencing the
Borrower's continued compliance with the Financial Covenants, as satisfied by
the Closing Compliance Certificate, or once delivered, the most recent
Compliance Certificate delivered by the Borrower, (vi) the requested interest
rate option, and (vii) the Interest Period (if applicable).  Each
request for a Revolving Loan Advance hereunder shall be for (a) a minimum amount
as required by Section
2.3.6, and (b) an amount not to exceed (x) the Maximum Loan Amount less
(y) the Total Outstandings (after giving effect to such Revolving Loan
Advance).

     

    2.1.3       Funding
Procedures.  Following receipt of a Revolving Loan Notice, the
Administrative Agent shall promptly notify each Lender of the Drawdown Date and
of the amount of its Commitment Percentage of the applicable Revolving
Loans.  In the case of a Revolving Loan Advance, each Lender shall
make the amount of its Commitment Percentage of such Revolving Loan available to
the Administrative Agent in immediately available funds at the Administrative
Agent's Office not later than 1:00 p.m. on the Business Day specified as the
Drawdown Date in the applicable Revolving Loan Notice.  Upon
satisfaction of the applicable conditions set forth in Section 5.2 (and, if
such Revolving Loan Advance is the initial credit extension, Section 5.1), the
Administrative Agent shall make all funds so received available to the Borrower
in like funds as received by the Administrative Agent either by (i) crediting
the account of the Borrower on the books of Regions with the amount of such
funds or (ii) wire transfer of such funds, in each case in accordance with
instructions provided to the Administrative Agent by the Borrower; provided, however, that if, on
the date the Revolving Loan Notice with respect to such Revolving Loan Advance
is given by the Borrower, there are L/C Borrowings outstanding, then the
proceeds of such Revolving Loan Advance, first, shall be
applied to the payment in full of any such L/C Borrowings, and second, shall be made
available to the Borrower as provided above.

     

    
      
        	  	
                2.2

              	
                Term
      of Credit
Facility.

              

      

    

     

    2.2.1        Extension
of Maturity.  The Credit Facility shall be for a term (the
"Initial Term")
commencing on the date hereof and ending on March 31, 2012 (the "Initial Maturity
Date") or such earlier date as the Credit Facility is accelerated
pursuant to the terms of this Agreement upon an Event of Default.  The
Initial Term may be extended for one year ("Extended Term") until
March 25, 2013 ("Extended Maturity
Date") upon satisfaction of the following conditions (hereinafter, the
Initial Maturity Date and the Extended Maturity Date may be referred to herein
sometimes as the "Maturity Date" as may
be applicable):

     

    (a)           No
Default.  No Default or Event of Default shall exist on the
date of the Borrower's written notice for an extension as provided for in clause
(b) below and on the Initial Maturity Date.

     

    (b)           Notice From
Borrower.  The Borrower shall have given the Administrative
Agent (and the Administrative Agent shall give prompt notice thereof to the
Lenders) written notice of the Borrower's request to exercise its extension
right at least ninety (90) days, but no more than one hundred fifty (150) days,
before the Initial Maturity Date.

     

    (c)           Covenant
Compliance.  No breach of any covenants imposed upon the
Borrower or the Guarantors shall exist including, without limitation, the
Financial Covenants.

     

    (d)           Conditions
Satisfied.  All of the conditions set forth in Sections 5.1 of this
Agreement, to the extent applicable, and Section 5.2 of this
Agreement shall continue to be satisfied.

     

    (e)           Extension
Fee.  The Borrower shall have paid to the Administrative Agent
an extension fee (the "Extension Fee") for
the pro rata benefit of the Lenders of thirty basis points (0.30%) of the Total
Commitments, such Extension Fee to be payable at least five (5) days prior to
the Initial Maturity Date.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    (f)           Additional
Documents.  The Borrower and the Guarantors shall have executed
and delivered to the Administrative Agent such agreements and documents as the
Administrative Agent may reasonably require incident to the
extension.

     

    Within
thirty (30) days following receipt by the Administrative Agent of the Borrower's
written notice under Section 2.2.1(b)
above requesting the extension accompanied by those of the items described above
which are then available, the Administrative Agent shall notify the Borrower in
writing if all of the conditions precedent to the extension, other than payment
of the Extension Fee, have been satisfied, or if further information,
certificates or work are required.  If the Administrative Agent
determines that the conditions to extension have been satisfied, other than
payment of the Extension Fee, the Administrative Agent shall so notify the
Borrower and the Lenders and upon the Administrative Agent's receipt of the
Extension Fee not later than five (5) days prior to the Initial Maturity Date,
the term of the Credit Facility shall be extended until the Extended Maturity
Date.  The Borrower hereby acknowledges and agrees that as a condition
to granting the extension of the Maturity Date contemplated herein, the
Administrative Agent, with the consent of all Lenders (such consent not to be
unreasonably withheld, conditioned or delayed), will have the option of
modifying the capitalization rates utilized in the definition of "Fair Market
Value" hereunder during the Extended Term.

     

    2.2.2       Termination/Reduction of
Commitments.

     

    (a)           The
Borrower shall have the right to terminate this Agreement prior to the
originally scheduled Maturity Date by providing the Administrative Agent with
ten (10) days' written notice of the Borrower's intention to terminate this
Agreement (the date of such termination being the "Borrower Termination
Date"). In the event that the Borrower provides such written notice to
the Administrative Agent, (i) as of the date of the notice, the Lenders shall
have no further obligation to make or issue, and the Borrower shall have no
further right to receive or request, any Credit Extension hereunder, and (ii)
the Borrower shall be obligated on the Borrower Termination Date to (x) pay in
full all accrued interest, principal and other charges due with respect to the
Credit Facility, including, without limitation, any Breakage Fees due on account
of such payment and (y) either (1) provide Administrative Agent with cash
collateral equal to one hundred three percent (103%) of the outstanding amount
of all outstanding Letters of Credit from a source other than the proceeds of
the Credit Facility or (2) return all outstanding Letters of Credit to the
Administrative Agent.  If such cash collateral is posted, such funds
shall be held in an interest bearing account at the Administrative Agent, shall
be pledged to secure the Obligations, and shall be refunded on a dollar for
dollar basis to the Borrower upon the return to the Administrative Agent, or the
expiration, of each Letter of Credit.

     

    (b)           The
Borrower shall have the right to reduce the Total Commitment to an amount not
less than $25,000,000 prior to the originally scheduled Maturity Date by
providing the Administrative Agent with ten (10) days' written notice of the
Borrower's intention to reduce the Total Commitment (the date of such reduction
being the "Borrower
Reduction Date"). In the event that the Borrower provides such written
notice to the Administrative Agent, (i) as of the date of the notice, the
Lenders shall have no further obligation to make or issue, and the Borrower
shall have no further right to receive or request, any Revolving Loan Advances,
Swing Line Advances or any Letters of Credit such that the Total Outstandings
would exceed such reduced Total Commitment, and (ii) the Borrower shall be
obligated on the Borrower Reduction Date to pay in full the excess of
outstanding principal balance of the Credit Facility over the reduced Total
Commitment, including, without limitation, any Breakage Fees due on account of
such payment.  In order to effect such reduced Total Commitment, the
Administrative Agent shall reduce the Lenders' Commitments on a pro rata
basis.

     

    2.3         Interest
Rate and Payment Terms.  The Revolving Loan Advances shall be
payable as to interest and principal in accordance with the provisions of this
Agreement.  This Agreement also provides for interest at a Default
Rate, Late Charges and prepayment rights and fees.  All payments for
the account of Lenders shall be applied to the respective accounts of the
Lenders in accordance with each Lender's Commitment Percentage of the Revolving
Loan.  Any and all interest rate selection and conversion provisions
in this Agreement are to be administered by the Administrative Agent and to be
allocated on a pro rata basis to the portion of the balance held by each Lender
based upon such Lender's Commitment Percentage.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    2.3.1       Borrower's
Options.  Principal amounts outstanding under the Revolving
Loan shall bear interest at the following rates, at Borrower's selection,
subject to the conditions and limitations provided for in this Agreement: (i)
Base Rate plus the Applicable Margin for Base Rate Advances or (ii) LIBO Rate
plus the Applicable Margin for LIBO Rate Advances.  Borrower's right
to select pricing options shall cease upon the occurrence and during the
continuation of any Event of Default.

     

    2.3.2       Selection
To Be Made.  Borrower shall select, and thereafter may change
the selection of, the applicable interest rate, from the alternatives otherwise
provided for in this Agreement, by giving Administrative Agent a Revolving Loan
Notice (in accordance with the requirements of Section 2.3.3,
below): (i) three (3) Business Days prior to each Revolving Loan Advance, (ii)
three (3) Business Days prior to the end of each Interest Period applicable to a
LIBO Rate Advance which shall be continued as a LIBO Rate Advance, or (iii)
three (3) Business Days prior to any Business Day on which Borrower desires to
convert an outstanding Base Rate Advance to a LIBO Rate Advance.

     

    2.3.3       Notice.  Each
Revolving Loan Advance, each conversion of Revolving Loans from one Type to the
other, and each continuation of a LIBO Rate Advance shall be made upon the
Authorized Officer's irrevocable notice to the Administrative Agent, which may
be given by telephone.  Each such notice must be received by the
Administrative Agent not later than 11:00 a.m. (i) with respect to a LIBO Rate
Advance, three (3) Business Days prior to, or (ii) with respect to a Base Rate
Advance, the requested date of any Revolving Loan Advance, conversion or
continuation.  Each telephonic notice pursuant to this Section 2.3.3 must be
confirmed promptly by delivery to the Administrative Agent of a written
Revolving Loan Notice, appropriately completed and signed by an Authorized
Officer of the Borrower.

     

    2.3.4       If No
Notice.  If the Borrower fails to select an interest rate
option in accordance with the foregoing prior to a Revolving Loan Advance, or at
least three (3) Business Days prior to the last day of the applicable Interest
Period of an outstanding LIBO Rate Advance, or if a LIBO Rate Advance is not
available, any new Revolving Loan Advance made shall be deemed to be a Base Rate
Advance, and on the last day of the applicable Interest Period all outstanding
principal amounts of the applicable LIBO Rate Advance shall be deemed converted
to a Base Rate Advance.

     

    2.3.5       Telephonic
Notice.  Without any way limiting the Borrower's obligation to
confirm in writing any telephonic notice, the Administrative Agent may act
without liability upon the basis of telephonic notice believed by the
Administrative Agent in good faith to be from the Borrower prior to receipt of
written confirmation.  In each case the Borrower hereby waives the
right to dispute the Administrative Agent's record of the terms of such
telephonic Revolving Loan Notice in the absence of manifest error.

     

    2.3.6       Limits On
Options.  Each LIBO Rate Advance shall be in a minimum amount
of $2,000,000 or a whole multiple of $500,000 in excess thereof, and each Base
Rate Advance shall be in a minimum amount of $2,000,000 or a whole multiple of
$500,000 in excess thereof.  At no time shall there be outstanding a
total of more than three (3) LIBO Rate Advances.

     

    2.3.7       Payment and
Calculation of Interest.  All interest shall be payable in
arrears commencing April 1, 2010 and on the first Business Day of each month
thereafter until the principal together with all interest and other charges
payable with respect to the Revolving Loan shall be fully paid.  All
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year).  Interest
shall accrue on each Revolving Loan Advances Loan for the day on which the
Revolving Loans Advances is made, and shall not accrue on a Revolving Loan
Advances, or any portion thereof, for the day on which the Revolving Loan
Advances or such portion is paid, provided that any Revolving Loan that is
repaid on the same day on which it is made shall, subject to Section 2.3.11, bear
interest for one day.  Interest hereunder shall be due and payable in
accordance with the terms hereof before and after judgment, and before and after
the commencement of any proceeding under any Debtor Relief Law.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    2.3.8       Mandatory
Principal Payments.  If, on any day, the Total Outstandings
exceed the Maximum Loan Amount, then the Borrower shall make a principal payment
to the Administrative Agent, for the ratable benefit of the Lenders, in the
amount of such excess, including any amounts required to be paid under Section 2.3.15, in
immediately available funds within ten (10) Business Days of demand from the
Administrative Agent (a "Mandatory Principal
Payment").

     

    2.3.9       Prepayment.  The
Revolving Loan or any portion thereof may be prepaid in full or in part at any
time upon two (2) Business Days prior written notice to the Administrative Agent
without premium or penalty with respect to Base Rate Advances and, with respect
to LIBO Rate Advances, subject to payment of any applicable Breakage Fee; provided, however, that any
such prepayments shall be in a minimum amount of $2,000,000 or a whole multiple
of $500,000 in excess thereof.  Any amounts prepaid may be reborrowed
subject to the terms hereof.

     

    2.3.10     Maturity.  At
Maturity all accrued interest, principal and other charges due with respect to
the Revolving Loan shall be due and payable in full and the principal balance
and such other charges, including unpaid interest, at the option of the
Administrative Agent, shall continue to bear interest thereafter at the Default
Rate until so paid.

     

    2.3.11     Method of
Payment; Date of Credit; Administrative Agent's Clawback.

     

    (a)           General.  All
payments to be made by the Borrower shall be made without condition or deduction
for any counterclaim, defense, recoupment or setoff.  Except as
otherwise expressly provided herein, all payments by the Borrower hereunder
shall be made to the Administrative Agent, for the account of the respective
Lenders to which such payment is owed, at the Administrative Agent's Office in
Dollars and in immediately available funds not later than 1:00 p.m. on the date
specified herein.  The Administrative Agent will promptly distribute
to each Lender its Commitment Percentage (or other applicable share as provided
herein) of such payment in like funds as received by wire transfer to such
Lender's Lending Office.  All payments received by the Administrative
Agent after 1:00 p.m. shall be deemed received on the next succeeding Business
Day and any applicable interest or fee shall continue to accrue.  If
any payment to be made by the Borrower shall come due on a day other than a
Business Day, payment shall be made on the next following Business Day, and such
extension of time shall be reflected in computing interest or fees, as the case
may be.

     

    (b)           (i)     
      Funding by Lenders;
Presumption by Administrative Agent.  Unless the Administrative
Agent shall have received notice from a Lender prior to the proposed date of any
LIBO Rate Advance (or, in the case of any Base Rate Advance, prior to 12:00 noon
on the date of such Revolving Loan Advance) that such Lender will not make
available to the Administrative Agent such Lender's share of such Revolving Loan
Advance, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with Section 2.1 (or, in
the case of a Base Rate Advance, that such Lender has made such share available
in accordance with and at the time required by Section 2.1) and may,
in reliance upon such assumption, make available to the Borrower a corresponding
amount.  In such event, if a Lender has not in fact made its share of
the applicable Revolving Loan Advance available to the Administrative Agent,
then the applicable Lender and the Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount in
immediately available funds with interest thereon, for each day from and
including the date such amount is made available to the Borrower to but
excluding the date of payment to the Administrative Agent, at (A) in the case of
a payment to be made by such Lender, the greater of the Federal Funds Rate and a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation, plus any administrative, processing or similar
fees customarily charged by the Administrative Agent in connection with the
foregoing, and (B) in the case of a payment to be made by the Borrower, the
interest rate applicable to Base Rate Advances.  If the Borrower and
such Lender shall pay such interest to the Administrative Agent for the same or
an overlapping period, the Administrative Agent shall promptly remit to the
Borrower the amount of such interest paid by the Borrower for such
period.  If such Lender pays its share of the applicable Revolving
Loan Advance to the Administrative Agent, then the amount so paid shall
constitute such Lender's share of such Revolving Loan Advance and the Borrower
shall have no further obligation with respect thereto under this Section 2.3.11(b)(i)
in respect of such Lender's share of the Revolving Loan Advance; it being
understood that such amount advanced by such Lender shall constitute a Revolving
Loan Advance for all purposes hereunder.  Any payment by the Borrower
shall be without prejudice to any claim the Borrower may have against a Lender
that shall have failed to make such payment to the Administrative
Agent.

     

    
      
        
        

      

      
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    (ii)           Payments by Borrower;
Presumptions by Administrative Agent.  Unless the
Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Administrative Agent for the account of
the Lenders, the Swing Line Lender or the L/C Issuer hereunder, stating that the
Borrower will not make such payment, the Administrative Agent may assume that
the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders, the Swing Line
Lender or the L/C Issuer, as the case may be, the amount due.  In such
event, if the Borrower has not in fact made such payment, then each of the
Lenders, the Swing Line Lender or the L/C Issuer, as the case may be, severally
agrees to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender, the Swing Line Lender or the L/C Issuer, in
immediately available funds with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of
payment to the Administrative Agent, at the greater of the Federal Funds Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

     

    A notice
of the Administrative Agent to any Lender or the Borrower with respect to any
amount owing under this subsection (b) shall be conclusive, absent manifest
error.

     

    (c)           Failure to Satisfy
Conditions Precedent.  If any Lender makes available to the
Administrative Agent funds for any Revolving Loan Advance to be made by such
Lender as provided in the foregoing provisions of this Article 2, and such
funds are not made available to the Borrower by the Administrative Agent because
the conditions to the applicable Credit Extension set forth in Article 5 are not
satisfied or waived in accordance with the terms hereof, the Administrative
Agent shall return such funds (in like funds as received from such Lender) to
such Lender, without interest.

     

    (d)           Funding
Source.  Nothing herein shall be deemed to obligate any Lender
to obtain the funds for any Revolving Loan Advance in any particular place or
manner or to constitute a representation by any Lender that it has obtained or
will obtain the funds for any Revolving Loan Advance in any particular place or
manner.

     

    2.3.12   
  Billings.  The
Administrative Agent may submit monthly billings reflecting payments due;
however, any changes in the interest rate which occur between the date of
billing and the due date may be reflected in the billing for a subsequent
month.  Neither the failure of the Administrative Agent to submit a
billing nor any error in any such billing shall excuse the Borrower from the
obligation to make full payment of all the Borrower's payment obligations when
due.

     

    2.3.13     Default
Rate.

     

    (a)           If
any Event of Default has occurred and is continuing pursuant to Section 10.1.1, the
Borrower shall pay interest on the principal amount of all outstanding
Obligations hereunder at a fluctuating interest rate per annum at all times
equal to the Default Rate to the fullest extent permitted by applicable
Laws.

     

    
      
        
        

      

      
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    (b)           Upon
the request of the Required Lenders, while any other Event of Default exists,
the Borrower shall pay interest on the principal amount of all outstanding
Obligations hereunder at a fluctuating interest rate per annum at all times
equal to the Default Rate to the fullest extent permitted by applicable
Laws.

     

    (c)           Accrued
and unpaid interest on past due amounts (including interest on past due
interest) shall be due and payable upon demand.

     

    2.3.14     Late
Charges.  The Borrower shall pay a late charge (herein, the
"Late Charge")
equal to five percent (5%) of the amount of any principal, interest or other
payment which is not paid within ten (10) days of the due date
thereof.  Late charges: (a) are payable in addition to, and not in
limitation of, the Default Rate, (b) are intended to compensate the
Administrative Agent and the Lenders for administrative and processing costs
incident to late payments, (c) are not interest, and (d) shall not be subject to
refund or rebate or credited against any other amount due.

     

    2.3.15     Breakage
Fees.  The Borrower shall pay to the Administrative Agent, for
the ratable benefit of the Lenders, immediately upon request and notwithstanding
contrary provisions contained in any of the Loan Documents, such amounts as
shall, in the conclusive judgment of the Administrative Agent (in the absence of
manifest error), compensate the Administrative Agent and the Lenders for the
loss, cost or expense which they may reasonably incur as a result of (i) any
payment or prepayment, under any circumstances whatsoever, whether voluntary or
involuntary, of all or any portion of a LIBO Rate Advance on a date other than
the last day of the applicable Interest Period of a LIBO Rate Advance, (ii) the
conversion, for any reason whatsoever, whether voluntary or involuntary, of any
LIBO Rate Advance to a Base Rate Advance on a date other than the last day of
the applicable Interest Period, (iii) the failure of all or a portion of a
Revolving Loan Advance which was to have borne interest at the LIBO Rate
pursuant to the request of the Borrower to be made under this Agreement (except
as a result of any act or omission of Lender), or (iv) the failure of the
Borrower to borrow in accordance with any request submitted by it for a LIBO
Rate Advance.  Such amounts payable by the Borrower shall be equal to
any administrative costs actually incurred plus any reasonable amounts required
to compensate for any loss, cost or expense incurred by reason of the
liquidation or redeployment of deposits or other funds acquired by the
Administrative Agent or any Lender to fund or maintain a LIBO Rate Advance
(herein, collectively, the "Breakage
Fee").  A certificate from a Lender provided to the Borrower by
the Administrative Agent setting forth the calculation and amount of its
Breakage Fee shall be conclusive absent manifest error.

     

    2.3.16     Application
of Payments.  In the event any payment from Borrower is
received by the Administrative Agent without specific application instructions,
the application of any such payment shall be made first to Swing Line Advances,
then to Base Rate Advances and then to LIBO Rate Advances.

     

    2.4         Loan
Fees.

     

    2.4.1       Loan
Fees.  The Borrower shall pay the Administrative Agent for its
own account or for the pro rata benefit of the Lenders, as applicable, the
various fees in accordance with the Fee Letter.

     

    2.4.2       Facility
Fee. The Borrower agrees to pay
to the Administrative Agent, for the pro rata benefit of the Lenders, an annual
fee quarterly in arrears on the first day of each January, April, July and
October for the previous quarter and at Maturity, commencing on the first of
such dates to occur after the Closing Date, which shall be in an amount equal to
25 basis points of the Total Commitment. All facility fees shall be computed on
the basis of a year of 360 days and shall be payable for the actual number of
days elapsed in the quarter (or any partial quarter, as applicable, in the event
of the first payment and/or the last payment of the facility fee
hereunder).

     

    2.5         Additional Provisions
Related to Interest Rate Selection.

     

    2.5.1       Increased
Costs.  If any Change in Law shall:

     

    
      
        
        

      

      
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    (a)           impose,
modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for
the account of, or credit extended or participated in by, any Lender (except any
reserve requirement reflected in the LIBO Rate), the Swing Line Lender or the
L/C Issuer with respect to this Agreement;

     

    (b)           subject
any Lender, the Swing Line Lender or the L/C Issuer to any tax of any kind
whatsoever (other than the Excluded Taxes) with respect to this Agreement, any
Letter of Credit, any participation in a Letter of Credit or any LIBO Rate
Advance made by it, or change the basis of taxation of payments to such Lender,
the Swing Line Lender or the L/C Issuer in respect thereof; or

     

    (c)           impose
on any Lender, the Swing Line Lender or the L/C Issuer or the London interbank
market any other condition, cost or expense affecting this Agreement or LIBO
Rate Advances made by such Lender or any Letter of Credit or participation
therein;

     

    and the
result of any of the foregoing shall be to increase the cost to such Lender of
making or maintaining any LIBO Rate Advance (or of maintaining its obligation to
make any such Revolving Loan), or to increase the cost to such Lender, the Swing
Line Lender or the L/C Issuer of participating in, issuing or maintaining any
Letter of Credit (or of maintaining its obligation to participate in or to issue
any Letter of Credit), or to reduce the amount of any sum received or receivable
by such Lender, the Swing Line Lender or the L/C Issuer hereunder (whether of
principal, interest or any other amount) then, promptly upon request of such
Lender, the Swing Line Lender or the L/C Issuer, the Borrower will pay to such
Lender, the Swing Line Lender or the L/C Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender, the Swing Line
Lender or the L/C Issuer, as the case may be, for such additional costs incurred
or reduction suffered.  A certificate from a Lender provided to the
Borrower by the Administrative Agent setting forth such amounts together with
calculations thereof shall be conclusive absent manifest error.

     

    2.5.2       Capital
Requirements.  If any Lender, the Swing Line Lender or the L/C
Issuer determines that any Change in Law affecting such Lender, the Swing Line
Lender or the L/C Issuer or any Lending Office of such Lender or such Lender's,
the Swing Line Lender's or the L/C Issuer's holding company, if any, regarding
capital requirements has or would have the effect of reducing the rate of return
on such Lender's, the Swing Line Lender's or the L/C Issuer's capital or on the
capital of such Lender's, the Swing Line Lender's or the L/C Issuer's holding
company, if any, as a consequence of this Agreement, the Commitment of such
Lender or the Revolving Loan Advances or Swing Line Advances made by, or
participations in Letters of Credit held by, such Lender, the Swing Line Lender
or the Letters of Credit issued by the L/C Issuer, to a level below that which
such Lender, the Swing Line Lender or the L/C Issuer or such Lender's, the Swing
Line Lender's or the L/C Issuer's holding company could have achieved but for
such Change in Law (taking into consideration such Lender's, the Swing Line
Lender's or the L/C Issuer's policies and the policies of such Lender's, the
Swing Line Lender's or the L/C Issuer's holding company with respect to capital
adequacy), then from time to time (and in any event within twenty (20) days) the
Borrower will pay to such Lender, the Swing Line Lender or the L/C Issuer, as
the case may be, such additional amount or amounts as will compensate such
Lender, the Swing Line Lender or the L/C Issuer or such Lender's, the Swing Line
Lender's or the L/C Issuer's holding company for any such reduction suffered. A
certificate from a Lender provided to the Borrower by the Administrative Agent
setting forth such amounts together with calculations thereof shall be
conclusive absent manifest error.

     

    2.5.3       Illegality.  Notwithstanding
any other provision of this Agreement, if any Change in Law shall make it
unlawful, or any central bank or Governmental Authority shall assert by
directive, guideline or otherwise, that it is unlawful, for any Lender to make
or maintain LIBO Rate Advances or to continue to fund or maintain LIBO Rate
Advances, and such Lender, without cost or expense, cannot hold or administer
its Commitment from an office where maintaining and funding LIBO Rate Advances
can be accomplished, then, on written notice thereof and demand by the
Administrative Agent to the Borrower, (a) the obligation of the Administrative
Agent to make LIBO Rate Advances and to convert or continue any Revolving Loan
as LIBO Rate Advances shall terminate and (b) at the end of the applicable
Interest Period, the Borrower shall convert all principal outstanding under this
Agreement into Base Rate Advances.

     

    
      
        
        

      

      
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    2.5.4       Availability.  If,
before or after the Borrower has selected to take or maintain a LIBO Rate
Advance, but before the Interest Period with respect thereto commences, the
Administrative Agent notifies the Borrower that:

     

    (a)           Dollar
deposits in the amount and for the maturity requested are not available to the
Lenders in the London interbank market at the rate specified in the definition
of LIBO Rate set forth above; or

     

    (b)           reasonable
means do not exist for the Administrative Agent to determine the LIBO Rate for
the amounts and maturity requested, then the principal which would have been a
LIBO Rate Advance shall be a Base Rate Advance.

     

    2.5.5       Base Rate
Advances.  Each Base Rate Advance shall continue as a Base Rate
Advance until Maturity of the Revolving Loan, unless sooner converted, in whole
or in part, to a LIBO Rate Advance, subject to the limitations and conditions
set forth in this Agreement.

     

    2.5.6       Delay in
Requests.  Failure or delay on the part of any Lender, the
Swing Line Lender or the L/C Issuer to demand compensation pursuant to the
foregoing provisions of this Section shall not constitute a waiver of such
Lender's, the Swing Line Lender's or the L/C Issuer's right to demand such
compensation; provided, however, that the
Borrower shall not be required to compensate a Lender, the Swing Line Lender or
the L/C Issuer pursuant to the foregoing provisions of this Section for any
increased costs incurred or reductions suffered more than six months prior to
the date that such Lender, the Swing Line Lender or the L/C Issuer, as the case
may be, notifies the Borrower of the change in Law giving rise to such increased
costs or reductions and of such Lender's, the Swing Line Lender or the L/C
Issuer's intention to claim compensation therefor (except that, if the change in
Law giving rise to such increased costs or reductions is retroactive, then the
six-month period referred to above shall be extended to include the period of
retroactive effect thereof).

     

    2.5.7       Mitigation.

     

    (a)           Designation of a Different
Lending Office.  If any Lender requests compensation under this
Section 2.5, or
the Borrower is required to pay any additional amount to any Lender, the Swing
Line Lender, the L/C Issuer or any Governmental Authority for the account of any
Lender, the Swing Line Lender or the L/C Issuer pursuant to Section 2.8, then
such Lender, the Swing Line Lender or the L/C Issuer shall, as applicable, use
reasonable efforts to designate a different Lending Office for funding or
booking its Credit Extensions hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment
of such Lender, the Swing Line Lender or the L/C Issuer, such designation or
assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.8, 2.5.1 or 2.5.2, as the case
may be, and (ii) in each case, would not subject such Lender, the Swing Line
Lender or the L/C Issuer, as the case may be, to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender, the Swing
Line Lender or the L/C Issuer, as the case may be.  The Borrower
hereby agrees to pay all reasonable costs and expenses incurred by any Lender,
the Swing Line Lender or the L/C Issuer in connection with any such designation
or assignment.

     

    (b)           Replacement of
Lenders.  If any Lender requests compensation under Section 2.5.1 or
2.5.2, or if
the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.8, the
Borrower may replace such Lender in accordance with Section
13.2.4.

     

    2.5.8        Survival.  All
of the Borrower's obligations under this Section 2.5 shall
survive termination of the Total Commitments, resignation of the Administrative
Agent and repayment of all Obligations hereunder for a period of one
year.

     

    
      
        
        

      

      
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    2.6         Letters of
Credit.

     

    2.6.1       The Letter of Credit
Commitment.

     

    (a)           Subject
to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the Lenders set forth in this Section 2.6, (1) from
time to time on any Business Day during the period from the Closing Date until
the Letter of Credit Expiration Date, to issue Letters of Credit for the account
of the Borrower or Borrower Subsidiaries, and to amend or extend Letters of
Credit previously issued by it, in accordance with Section 2.6.2 below,
and (2) to honor drawings under the Letters of Credit; and (B) the Lenders
severally agree to participate in Letters of Credit issued for the account of
the Borrower, Borrower Subsidiaries and any drawings thereunder; provided, however, that after
giving effect to any L/C Credit Extension with respect to any Letter of Credit,
(x) the Total Outstandings shall not exceed the Total Commitment, (y) the
aggregate Outstanding Amount of the Revolving Loan Advances of any Lender, plus
such Lender's Commitment Percentage of the Outstanding Amount of all L/C
Obligations, shall not exceed such Lender's Commitment, and (z) the Outstanding
Amount of the L/C Obligations shall not exceed the Letter of Credit
Sublimit.  Each request by the Borrower for the issuance or amendment
of a Letter of Credit shall be deemed to be a representation by the Borrower
that the L/C Credit Extension so requested complies with the conditions set
forth in the proviso to the preceding sentence.  Within the foregoing
limits, and subject to the terms and conditions hereof, the Borrower's ability
to obtain Letters of Credit shall be fully revolving, and accordingly the
Borrower may, during the foregoing period, obtain Letters of Credit to replace
Letters of Credit that have expired or that have been drawn upon and
reimbursed.  All Existing Letters of Credit shall be deemed to have
been issued pursuant hereto, and from and after the Closing Date shall be
subject to and governed by the terms and conditions hereof.

     

    (b)           The
L/C Issuer shall not issue any Letter of Credit, if:

     

    (i)           subject
to Section
2.6.2(c), the expiry date of such requested Letter of Credit would occur
more than twelve months after the date of issuance or last extension, unless the
Required Lenders have approved such expiry date; or

     

    (ii)           the
expiry date of such requested Letter of Credit would occur after the Letter of
Credit Expiration Date, unless all the Lenders have approved such expiry date,
subject to Section
2.6.7.

     

    (c)           The
L/C Issuer shall not be under any obligation to issue any Letter of Credit
if:

     

    (i)           any
order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter
of Credit, or any Law applicable to the L/C Issuer or any request or directive
(whether or not having the force of law) from any Governmental Authority with
jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer
refrain from, the issuance of letters of credit generally or such Letter of
Credit in particular or shall impose upon the L/C Issuer with respect to such
Letter of Credit any restriction, reserve or capital requirement (for which the
L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing
Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or expense
which was not applicable on the Closing Date and which the L/C Issuer in good
faith deems material to it;

     

    (ii)           except
as otherwise agreed by the Administrative Agent and the L/C Issuer, such Letter
of Credit is in an initial stated amount less than $25,000;

     

    (iii)          such
Letter of Credit is to be denominated in a currency other than
Dollars;

     

    
      
        
        

      

      
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    (iv)          such
Letter of Credit contains any provisions for automatic reinstatement of the
stated amount after any drawing thereunder; or

     

    (v)           a
default of any Lender's obligations to fund under Section 2.6.3 exists
or any Lender is at such time an Impacted Lender hereunder, unless the L/C
Issuer has entered into satisfactory arrangements with the Borrower or such
Lender to eliminate the L/C Issuer's risk with respect to such Lender, subject
to the provisions of Section
13.2.4.

     

    (d)           The
L/C Issuer shall be under no obligation to amend any Letter of Credit if (A) the
L/C Issuer would have no obligation at such time to issue such Letter of Credit
in its amended form under the terms hereof, or (B) the beneficiary of such
Letter of Credit does not accept the proposed amendment to such Letter of
Credit.

     

    (e)           The
L/C Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and the L/C Issuer
shall have all of the benefits and immunities (A) provided to the Administrative
Agent in Article
13 with respect to any acts taken or omissions suffered by the L/C Issuer
in connection with Letters of Credit issued by it or proposed to be issued by it
and Issuer Documents pertaining to such Letters of Credit as fully as if the
term "Administrative Agent" as used in Article 13 included
the L/C Issuer with respect to such acts or omissions, and (B) as additionally
provided herein with respect to the L/C Issuer.

     

    2.6.2       Procedures for Issuance and
Amendment of Letters of Credit; Auto-Extension Letters of
Credit.

     

    (a)           Each
Letter of Credit shall be issued or amended, as the case may be, upon the
request of the Borrower delivered to the L/C Issuer (with a copy to the
Administrative Agent) in the form of a Letter of Credit Application,
appropriately completed and signed by an Authorized Officer of the
Borrower.  Such Letter of Credit Application must be received by the
L/C Issuer and the Administrative Agent not later than 11:00
a.m.  (Central time) at least two Business Days (or such later date
and time as the Administrative Agent and the L/C Issuer may agree in a
particular instance in their sole discretion) prior to the proposed issuance
date or date of amendment, as the case may be.  In the case of a
request for an initial issuance of a Letter of Credit, such Letter of Credit
Application shall specify in form and detail reasonably satisfactory to the L/C
Issuer: (A) the proposed issuance date of the requested Letter of Credit (which
shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof;
(D) the name and address of the beneficiary thereof; (E) the documents to be
presented by such beneficiary in case of any drawing thereunder; (F) the full
text of any certificate to be presented by such beneficiary in case of any
drawing thereunder; and (G) such other matters as the L/C Issuer may reasonably
require.  In the case of a request for an amendment of any outstanding
Letter of Credit, such Letter of Credit Application shall specify in form and
detail satisfactory to the L/C Issuer (1) the Letter of Credit to be amended;
(2) the proposed date of amendment thereof (which shall be a Business Day); (3)
the nature of the proposed amendment; and (4) such other matters as the L/C
Issuer may reasonably require.  Additionally, the Borrower shall
furnish to the L/C Issuer and the Administrative Agent such other documents and
information pertaining to such requested Letter of Credit issuance or amendment,
including any Issuer Documents, as the L/C Issuer or the Administrative Agent
may reasonably require.

     

    (b)           Promptly
after receipt of any Letter of Credit Application, the L/C Issuer will provide
the Administrative Agent with a copy thereof.  Unless the L/C Issuer
has received written notice from any Lender, the Administrative Agent or any
Loan Party, at least one Business Day prior to the requested date of issuance or
amendment of the applicable Letter of Credit, that one or more applicable
conditions contained in Section 5.2 shall not
then be satisfied, then, subject to the terms and conditions hereof, the L/C
Issuer shall, on the requested date, issue a Letter of Credit for the account of
the Borrower or the applicable Borrower Subsidiary or enter into the applicable
amendment, as the case may be, in each case in accordance with the L/C Issuer's
usual and customary business practices.  Immediately upon the issuance
of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably
and unconditionally agrees to, purchase from the L/C Issuer a risk participation
in such Letter of Credit in an amount equal to the product of such Lender's
Commitment Percentage times the amount of such Letter of Credit.

     

    
      
        
        

      

      
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    (c)           If
the Borrower so requests in any applicable Letter of Credit Application, the L/C
Issuer may, in its sole and absolute discretion, agree to issue a Letter of
Credit that has automatic extension provisions (each, an "Auto-Extension Letter of
Credit"); provided, however, that any
such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any
such extension at least once in each twelve-month period (commencing with the
date of issuance of such Letter of Credit) by giving prior notice to the
beneficiary thereof not later than a day (the "Non-Extension Notice
Date") in each such twelve-month period to be agreed upon at the time
such Letter of Credit is issued.  Unless otherwise directed by the L/C
Issuer, the Borrower shall not be required to make a specific request to the L/C
Issuer for any such extension.  Once an Auto-Extension Letter of
Credit has been issued, the Lenders shall be deemed to have authorized (but may
not require) the L/C Issuer to permit the extension of such Letter of Credit at
any time to an expiry date not later than the Letter of Credit Expiration Date
unless all the Lenders have approved such later expiry date, subject to Section 2.6.7; provided, however, that the L/C
Issuer shall not permit any such extension if (A) the L/C Issuer has determined
that it would not be permitted, or would have no obligation, at such time to
issue such Letter of Credit in its revised form (as extended) under the terms
hereof (by reason of the provisions of clause (ii) or (iii) of Section 2.6.1 or
otherwise), or (B) it has received notice (which may be by telephone or in
writing) on or before the day that is five Business Days before the
Non-Extension Notice Date (1) from the Administrative Agent that the Required
Lenders have elected not to permit such extension or (2) from the Administrative
Agent, any Lender or the Borrower that one or more of the applicable conditions
specified in Section
5.2 are not then satisfied, and in each such case directing the L/C
Issuer not to permit such extension.

     

    (d)           If
the Borrower so requests in any applicable Letter of Credit Application, the L/C
Issuer may, in its sole and absolute discretion, agree to issue a Letter of
Credit that permits the automatic reinstatement of all or a portion of the
stated amount thereof after any drawing thereunder (each, an "Auto-Reinstatement Letter of
Credit").  Unless otherwise directed by the L/C Issuer, the
Borrower shall not be required to make a specific request to the L/C Issuer to
permit such reinstatement.  Once an Auto-Reinstatement Letter of
Credit has been issued, except as provided in the following sentence, the
Lenders shall be deemed to have authorized (but may not require) the L/C Issuer
to reinstate all or a portion of the stated amount thereof in accordance with
the provisions of such Letter of Credit.  Notwithstanding the
foregoing, if such Auto-Reinstatement Letter of Credit permits the L/C Issuer to
decline to reinstate all or any portion of the stated amount thereof after a
drawing thereunder by giving notice of such non-reinstatement within a specified
number of days after such drawing (the "Non-Reinstatement
Deadline"), the L/C Issuer shall not permit such reinstatement if it has
received a notice (which may be by telephone or in writing) on or before the day
that is five Business Days before the Non-Reinstatement Deadline (A) from the
Administrative Agent that the Required Lenders have elected not to permit such
reinstatement or (B) from the Administrative Agent, any Lender or the Borrower
that one or more of the applicable conditions specified in Section 5.2 are not
then satisfied (treating such reinstatement as an L/C Credit Extension for
purposes of this clause) and, in each case, directing the L/C Issuer not to
permit such reinstatement.

     

    (e)           Promptly
after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof,
the L/C Issuer will also deliver to the Borrower and the Administrative Agent a
true and complete copy of such Letter of Credit or amendment.

     

    
      
        
        

      

      
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    2.6.3       Drawings and Reimbursements;
Funding of Participations.

     

    (a)           Upon
receipt from the beneficiary of any Letter of Credit of any notice of a drawing
under such Letter of Credit, the L/C Issuer shall promptly notify the Borrower
and the Administrative Agent thereof.  Not later than 11:00
a.m.  (Central time) on the date of any payment by the L/C Issuer
under a Letter of Credit (each such date, an "Honor Date"), the
Borrower shall reimburse the L/C Issuer through the Administrative Agent in an
amount equal to the amount of such drawing.  If the Borrower fails to
so reimburse the L/C Issuer by such time, the Administrative Agent shall
promptly notify each Lender of the Honor Date, the amount of the unreimbursed
drawing (the "Unreimbursed
Amount"), and the amount of such Lender's Commitment Percentage
thereof.  In such event, the Borrower shall be deemed to have
requested a Base Rate Advance to be disbursed on the Honor Date in an amount
equal to the Unreimbursed Amount, without regard to the minimum and multiples
specified in Section
2.1 for the principal amount of the Revolving Loan, but subject to the
amount of the unutilized portion of the Total Commitment and the conditions set
forth in Section
5.2.  Any notice given by the L/C Issuer or the Administrative
Agent pursuant to this Section 2.6.3(a) may
be given by telephone if immediately confirmed in writing; provided that the
lack of such an immediate confirmation shall not affect the conclusiveness or
binding effect of such notice.

     

    (b)           Each
Lender shall upon any notice pursuant to Section 2.6.3(a) make
funds available to the Administrative Agent for the account of the L/C Issuer at
the Administrative Agent's Office in an amount equal to its Commitment
Percentage of the Unreimbursed Amount not later than 1:00
p.m.  (Central time) on the Business Day specified in such notice by
the Administrative Agent, whereupon, subject to the provisions of Section 2.6.3(c),
each Lender that so makes funds available shall be deemed to have made a Base
Rate Advance to the Borrower in such amount.  The Administrative Agent
shall remit the funds so received to the L/C Issuer.

     

    (c)           With
respect to any Unreimbursed Amount that is not fully refinanced by a Revolving
Loan Advance because the conditions set forth in Section 5.2 cannot be
satisfied or for any other reason, the Borrower shall be deemed to have incurred
from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount
that is not so refinanced, which L/C Borrowing shall be due and payable on
demand (together with interest) and shall bear interest at the Default
Rate.  In such event, each Lender's payment to the Administrative
Agent for the account of the L/C Issuer pursuant to Section 2.6.3(b)
shall be deemed payment in respect of its participation in such L/C Borrowing
and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section
2.6.

     

    (d)           Until
each Lender funds its Commitment Percentage of any Revolving Loan Advance or L/C
Advance pursuant to this Section 2.6.3 to
reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender's Commitment Percentage of such amount shall
be solely for the account of the L/C Issuer.

     

    (e)           Each
Lender's obligation to make Revolving Loan Advances or L/C Advances to reimburse
the L/C Issuer for amounts drawn under Letters of Credit, as contemplated by
this Section
2.6.3, shall be absolute and unconditional and shall not be affected by
any circumstance, including (A) any setoff, counterclaim, recoupment, defense or
other right which such Lender may have against the L/C Issuer, the Borrower or
any other Person for any reason whatsoever, (B) the occurrence or continuance of
a Default, or (C) any other occurrence, event or condition, whether or not
similar to any of the foregoing; provided, however, that each
Lender's obligation to make Revolving Loan Advances pursuant to this Section 2.6.3 is
subject to the conditions set forth in Section
5.2.  No such making of an L/C Advance shall relieve or
otherwise impair the obligation of the Borrower to reimburse the L/C Issuer for
the amount of any payment made by the L/C Issuer under any Letter of Credit,
together with interest as provided herein.

     

    
      
        
        

      

      
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    (f)       
    If any Lender fails to make available to the
Administrative Agent for the account of the L/C Issuer any amount required to be
paid by such Lender pursuant to the foregoing provisions of this Section 2.6.3 by the
time specified in Section 2.6.3(b), the
L/C Issuer shall be entitled to recover from such Lender (acting through the
Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment
is immediately available to the L/C Issuer at a rate per annum equal to the
greater of the Federal Funds Rate and a rate determined by the L/C Issuer in
accordance with banking industry rules on interbank compensation.  A
certificate of the L/C Issuer submitted to any Lender (through the
Administrative Agent) with respect to any amounts owing under this clause (f)
shall be conclusive absent manifest error.

     

    2.6.4       Repayment of
Participations.

     

    (a)           At
any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender's L/C Advance in respect of such
payment in accordance with Section 2.6.3, if the
Administrative Agent receives for the account of the L/C Issuer any payment in
respect of the related Unreimbursed Amount or interest thereon (whether directly
from the Borrower or otherwise, including proceeds of Cash Collateral applied
thereto by the Administrative Agent), the Administrative Agent will distribute
to such Lender its Commitment Percentage thereof (appropriately adjusted, in the
case of interest payments, to reflect the period of time during which such
Lender's L/C Advance was outstanding) in the same funds as those received by the
Administrative Agent.

     

    (b)           If
any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.6.3(a) is
required to be returned under any of the provisions of this Agreement (including
pursuant to any settlement entered into by the L/C Issuer in its discretion),
each Lender shall pay to the Administrative Agent for the account of the L/C
Issuer its Commitment Percentage thereof on demand of the Administrative Agent,
plus interest thereon from the date of such demand to the date such amount is
returned by such Lender, at a rate per annum equal to the Federal Funds Rate
from time to time in effect.  The obligations of the Lenders under
this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

     

    2.6.5       Obligations
Absolute.  The obligation of the Borrower to reimburse the L/C
Issuer for each drawing under each Letter of Credit and to repay each L/C
Borrowing shall be absolute, unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Agreement under all circumstances,
including the following:

     

    (a)           any
lack of validity or enforceability of such Letter of Credit, this Agreement, or
any other Loan Document;

     

    (b)           the
existence of any claim, counterclaim, setoff, defense or other right that the
Borrower or any Borrower Subsidiary may have at any time against any beneficiary
or any transferee of such Letter of Credit (or any Person for whom any such
beneficiary or any such transferee may be acting), the L/C Issuer or any other
Person, whether in connection with this Agreement, the transactions contemplated
hereby or by such Letter of Credit or any agreement or instrument relating
thereto, or any unrelated transaction;

     

    (c)           any
draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect; or any loss
or delay in the transmission or otherwise of any document required in order to
make a drawing under such Letter of Credit;

     

    (d)           any
payment by the L/C Issuer under such Letter of Credit against presentation of a
draft or certificate that does not strictly comply with the terms of such Letter
of Credit; or any payment made by the L/C Issuer under such Letter of Credit to
any Person purporting to be a trustee in bankruptcy, debtor-in-possession,
assignee for the benefit of creditors, liquidator, receiver or other
representative of or successor to any beneficiary or any transferee of such
Letter of Credit, including any arising in connection with any proceeding under
any Debtor Relief Law; or

     

    
      
        
        

      

      
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    (e)           any
other circumstance or happening whatsoever, whether or not similar to any of the
foregoing, including any other circumstance that might otherwise constitute a
defense available to, or a discharge of, the Borrower or any Borrower
Subsidiary.

     

    The
Borrower shall promptly examine a copy of each Letter of Credit and each
amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with the Borrower's instructions or other irregularity, the
Borrower will, immediately after discovery thereof, notify the L/C
Issuer.  The Borrower shall be conclusively deemed to have waived any
such claim against the L/C Issuer and its correspondents unless such notice is
given as aforesaid.

     

    2.6.6       Role of L/C
Issuer.  Each Lender and the Borrower agree that, in paying any
drawing under a Letter of Credit, the L/C Issuer shall not have any
responsibility to obtain any document (other than any sight draft, certificates
and documents expressly required by the Letter of Credit) or to ascertain or
inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering any such document.  None of the L/C
Issuer, the Administrative Agent, any of their respective Affiliates nor any
correspondent, participant or assignee of the L/C Issuer shall be liable to any
Lender for (i) any action taken or omitted in connection herewith at the request
or with the approval of the Lenders or the Required Lenders, as applicable; (ii)
any action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
Issuer Document.  The Borrower hereby assumes all risks of the acts or
omissions of any beneficiary or transferee with respect to its use of any Letter
of Credit; provided, however, that this
assumption is not intended to, and shall not, preclude the Borrower's pursuing
such rights and remedies as it may have against the beneficiary or transferee at
law or under any other agreement.  None of the L/C Issuer, the
Administrative Agent, any of their respective Affiliates nor any correspondent,
participant or assignee of the L/C Issuer shall be liable or responsible for any
of the matters described in clauses (a) through (e) of Section 2.6.5; provided, however, that
anything in such clauses to the contrary notwithstanding, the Borrower may have
a claim against the L/C Issuer, and the L/C Issuer may be liable to the
Borrower, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by the Borrower which the Borrower
proves were caused by the L/C Issuer's willful misconduct or gross negligence or
the L/C Issuer's willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of a Letter of
Credit.  In furtherance and not in limitation of the foregoing, the
L/C Issuer may accept documents that appear on their face to be in order,
without responsibility for further investigation, regardless of any notice or
information to the contrary, and the L/C Issuer shall not be responsible for the
validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason.

     

    2.6.7       Cash
Collateral.  Upon the request of the Administrative Agent, (i)
if the L/C Issuer has honored any full or partial drawing request under any
Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if,
as of the Letter of Credit Expiration Date, any L/C Obligation for any reason
remains outstanding, the Borrower shall, in each case, immediately Cash
Collateralize the then Outstanding Amount of all L/C Obligations.  For
purposes of this Agreement, "Cash Collateralize"
means to pledge and deposit with or deliver to the Administrative Agent, for the
benefit of the L/C Issuer and the Lenders, as collateral for the L/C
Obligations, cash or deposit account balances (the "Cash Collateral")
pursuant to documentation in form and substance satisfactory to the
Administrative Agent and the L/C Issuer (which documents are hereby consented to
by the Lenders).  Derivatives of such term have corresponding
meanings.  The Borrower hereby grants to the Administrative Agent, for
the benefit of the L/C Issuer and the Lenders, a security interest in all such
Cash Collateral and all proceeds of the foregoing.  Cash Collateral
shall be maintained in blocked, non-interest bearing deposit accounts at
Regions.

     

    2.6.8       Applicability
of ISP.  Unless otherwise expressly agreed by the L/C Issuer
and the Borrower when a Letter of Credit is issued, the rules of the ISP shall
apply to each standby Letter of Credit.

     

    
      
        
        

      

      
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    2.6.9       Letter of
Credit Fees.  The Borrower shall pay to the Administrative
Agent for the account of each Lender in accordance with its Commitment
Percentage an annual Letter of Credit fee (the "Letter of Credit
Fee") for each standby Letter of Credit equal to 2.50% times the maximum
stated amount available to be drawn under such Letter of Credit. For purposes of
computing the daily amount available to be drawn under any Letter of Credit, the
amount of such Letter of Credit shall be determined in accordance with Section
2.6.13.  Letter of Credit Fees shall  paid on date of
issuance of each such Letter of Credit and on each annual anniversary thereafter
while such Letter of Credit is outstanding.  Notwithstanding anything
to the contrary contained herein, upon the request of the Required Lenders,
while any Event of Default exists, all Letter of Credit Fees shall accrue at the
Default Rate.

     

    2.6.10     Fronting
Fee and Documentary and Processing Charges Payable to L/C
Issuer.  The Borrower shall pay directly to the L/C Issuer for
its own account a fronting fee with respect to each Letter of Credit, of one
eighth of one percent (.125%) per annum, computed on the maximum stated amount
of such Letter of Credit.  Such fronting fee shall be due and payable
on the date of issuance of each Letter of Credit.  For purposes of
computing the maximum stated amount available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance
with Section
2.6.13.  In addition, the Borrower shall pay directly to the
L/C Issuer for its own account the customary issuance, presentation, amendment
and other processing fees, and other standard costs and charges, of the L/C
Issuer relating to letters of credit as from time to time in
effect.  Such customary fees and standard costs and charges are due
and payable on demand and are nonrefundable.

     

    2.6.11     Conflict
with Issuer Documents.  In the event of any conflict between
the terms hereof and the terms of any Issuer Document, the terms hereof shall
control.

     

    2.6.12     Letters of
Credit Issued for Borrower Subsidiaries.  Notwithstanding that
a Letter of Credit issued or outstanding hereunder is in support of any
obligations of, or is for the account of, a Borrower Subsidiary, the Borrower
shall be obligated to reimburse the L/C Issuer hereunder for any and all
drawings under such Letter of Credit.  The Borrower hereby
acknowledges that the issuance of Letters of Credit for the account of Borrower
Subsidiaries inures to the benefit of the Borrower, and that the Borrower's
business derives substantial benefits from the businesses of such Borrower
Subsidiaries.

     

    2.6.13     Amount.  Unless
otherwise specified herein, the amount of a Letter of Credit at any time shall
be deemed to be the stated amount of such Letter of Credit in effect at such
time; provided,
however, that
with respect to any Letter of Credit that, by its terms or the terms of any
Issuer Document related thereto, provides for one or more automatic increases in
the stated amount thereof, the amount of such Letter of Credit shall be deemed
to be the maximum stated amount of such Letter of Credit after giving effect to
all such increases, whether or not such maximum stated amount is in effect at
such time.

     

    2.7         Swing Line
Facility.

     

    2.7.1       The Swing
Line Commitment. Subject to the terms and conditions hereof, the Swing
Line Lender agrees that it will make available to the Borrower in the form of
swing line loans ("Swing Line Advance")
a portion of the credit otherwise available to the Borrower under the Total
Commitment; provided, however, that (i) the
aggregate principal amount of Swing Line Advances outstanding at any time shall
not exceed the Swing Line Sublimit then in effect (notwithstanding that the
Swing Line Advances outstanding at any time, when aggregated with the Swing Line
Lender's other outstanding Revolving Loan Advances hereunder, may exceed the
Swing Line Sublimit then in effect) and (ii) the Borrower shall not request, and
the Swing Line Lender shall not make, any Swing Line Advance if, after giving
effect to the making of such Swing Line Advance, (a) the Total Outstandings
would exceed the Total Commitment, (b) the aggregate Outstanding Amount of the
Revolving Loan Advances of any Lender, plus such Lender's Commitment Percentage
of the Outstanding Amount of all Swing Line Advances, would exceed such Lender's
Commitment, and (c) the Outstanding Amount of all Swing Line Advances would
exceed the Swing Line Sublimit. The Borrower may use the Swing Line Sublimit by
borrowing, repaying and reborrowing, all in accordance with the terms and
conditions hereof.  There shall be no limit to the number of Swing
Line Advances that may be made in any month. Swing Line Advances shall be Base
Rate Advances only.

     

    
      
        
        

      

      
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    2.7.2       Procedure
for Swing Line Borrowing; Refunding of Swing Line Advances.

     

    (a)           The
Borrower may borrow under the Swing Line Sublimit on any Business Day; provided, however, that the
Borrower shall give the Swing Line Lender irrevocable telephonic notice
confirmed promptly in writing (which telephonic notice must be received by the
Swing Line Lender not later than 11:00 a.m. (Central time) on the proposed
Drawdown Date), specifying (i) the amount to be borrowed and (ii) the requested
Drawdown Date. Each borrowing under the Swing Line Sublimit shall be in an
amount equal to $100,000 or a whole multiple of $50,000 in excess thereof. Not
later than 3:00 p.m. (Central time) on the Drawdown Date specified in the
borrowing notice in respect of any Swing Line Advance, the Swing Line Lender
shall make available to the Administrative Agent at the Administrative Agent's
Office an amount in immediately available funds equal to the amount of such
Swing Line Advance. The Administrative Agent shall make the proceeds of such
Swing Line Advance available to the Borrower on such Drawdown Date in like funds
as received by the Administrative Agent.

     

    (b)           The
Borrower hereby unconditionally promises to pay to the Administrative Agent for
the account of the Swing Line Lender the then unpaid principal amount of each
Swing Line Loan on the earliest of (i) the Maturity Date (or such earlier date
on which the Obligations are accelerated hereunder), (ii) the date that is 15
Business Days after the date such Swing Line Loan is made and (iii) the date on
which a Revolving Loan Advance is borrowed.  The Swing Line Lender, at
any time and from time to time in its sole and absolute discretion may, on
behalf of the Borrower (which hereby irrevocably directs the Swing Line Lender
to act on its behalf, on one Business Day's notice given by the Swing Line
Lender no later than 12:00 Noon (Central time)), request each Lender to make,
and each Lender hereby agrees to make, a Revolving Loan Advance (which shall
initially be a Base Rate Advance), in an amount equal to such Lender's
Commitment Percentage of the aggregate amount of the Swing Line Advances (the
"Refunded Swing Line
Advances") outstanding on the date of such notice, to repay the Swing
Line Lender. Each Lender shall make the amount of such Revolving Loan Advance
available to the Administrative Agent at the Administrative Agent's Office in
immediately available funds, not later than 10:00 am. (Central time) one
Business Day after the date of such notice. The proceeds of such Revolving Loan
Advances shall be made immediately available by the Administrative Agent to the
Swing Line Lender for application by the Swing Line Lender to the repayment of
the Swing Line Advances.

     

    (c)           If
prior to the time a Revolving Loan Advance would have otherwise been made
pursuant to Section
2.7.2(b), a Default or an Event of Default shall have occurred and be
continuing with respect to the Borrower, or if for any other reason, as
determined by the Swing Line Lender in its sole discretion, Revolving Loan
Advances may not be made as contemplated by Section 2.7.2(b),
each Lender shall, on the date such Revolving Loan Advance was to have been made
pursuant to the notice referred to in Section 2.7.2(b) (the
"Refunding
Date"), purchase for cash an undivided participating interest in the then
outstanding Swing Line Advances by paying to the Swing Line Lender an amount
(the "Swing Line
Lender Advance") equal to (i) such Lender's Commitment Percentage times
(ii) the sum of the aggregate principal amount of Swing Line Advances then
outstanding which were to have been repaid with such Revolving Loan
Advances.

     

    (d)           Whenever,
at any time after the Swing Line Lender has received from any Lender such
Lender's Swing Line Lender Advance, the Swing Line Lender receives any payment
on account of the Swing Line Advances, the Swing Line Lender will distribute to
such Lender its Swing Line Lender Advance (appropriately adjusted, in the case
of interest payments, to reflect the period of time during which such Lender's
participating interest was outstanding and funded and, in the case of principal
and interest payments, to reflect such Lender's pro rata portion of such payment
if such payment is not sufficient to pay the principal of and interest on all
Swing Line Advances then due); provided, however, that in the
event that such payment received by the Swing Line Lender is required to be
returned, such Lender will return to the Swing Line Lender any portion thereof
previously distributed to it by the Swing Line Lender.

     

    
      
        
        

      

      
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      (e)           Each
Lender's obligation to make the Revolving Loan Advances referred to in Section 2.7.2(b) and
to purchase participating interests pursuant to Section 2.7.2(c)
shall be absolute and unconditional and shall not be affected by any
circumstance, including, without limitation, (i) any setoff, counterclaim,
recoupment, defense or other right which such Lender or the Borrower may have
against the Swing Line Lender, the Borrower or any other Person for any reason
whatsoever; (ii) the occurrence or continuance of a Default or an Event of
Default or the failure to satisfy any of the other conditions specified in Section 5.1; (iii)
any adverse change in the condition (financial or otherwise) of the Borrower;
(iv) any breach of this Agreement or any other Loan Document by the Borrower,
any other Loan Party or any other Lender; or (v) any other circumstance,
happening or event whatsoever, whether or not similar to any of the
foregoing.

       

      2.8         Taxes.

       

      2.8.1       Payments Free of Taxes;
Obligation to Withhold; Payments on Account of Taxes.

       

      (a)           Any
and all payments by or on account of any obligation of the Borrower hereunder or
under any other Loan Document shall, to the extent permitted by applicable Laws,
be made free and clear of and without reduction or withholding for any
Taxes.  If, however, applicable Laws require the Borrower or the
Administrative Agent to withhold or deduct any Tax, such Tax shall be withheld
or deducted in accordance with such Laws as determined by the Borrower or the
Administrative Agent, as the case may be, upon the basis of the information and
documentation to be delivered pursuant to Section 2.8.5
below.

       

      (b)           If
the Borrower or the Administrative Agent shall be required by the Code to
withhold or deduct any Taxes, including without limitation both United States
Federal backup withholding and withholding taxes, from any payment, then (A) the
Administrative Agent shall withhold or make such deductions as are determined by
the Administrative Agent to be required based upon the information and
documentation it has received pursuant to Section 2.8.5 below,
(B) the Administrative Agent shall timely pay the full amount withheld or
deducted to the relevant Governmental Authority in accordance with the Code, and
(C) to the extent that the withholding or deduction is made on account of
Indemnified Taxes or Other Taxes, the sum payable by the Borrower shall be
increased as necessary so that after any required withholding or the making of
all required deductions (including deductions applicable to additional sums
payable under this Section) the Administrative Agent, Lender, Swing Line Lender
or L/C Issuer, as the case may be, receives an amount equal to the sum it would
have received had no such withholding or deduction been made.  Any
such affected Lender shall provide Borrower with prompt written notice of any
withholdings, deductions or payments described in this Section
2.8.1.

       

      2.8.2       Payment of
Other Taxes by the Borrower.  Without limiting the provisions
of Section
2.8.1 above, the Borrower shall timely pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable Laws.

       

      2.8.3       Tax
Indemnifications.

       

      (a)           Without
limiting the provisions of Section 2.8.1 or
2.8.2 above,
the Borrower shall, and does hereby, indemnify the Administrative Agent, each
Lender, the Swing Line Lender and the L/C Issuer, and shall make payment in
respect thereof within 20 days after written demand therefor, for the full
amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or
Other Taxes imposed or asserted on or attributable to amounts payable under this
Section) withheld or deducted by the Borrower or the Administrative Agent or
paid by the Administrative Agent, such Lender, the Swing Line Lender or the L/C
Issuer, as the case may be, and any penalties, interest and reasonable expenses
arising therefrom or with respect thereto, whether or not such Indemnified Taxes
or Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority.  The Borrower shall also, and does hereby,
indemnify the Administrative Agent, and shall make payment in respect thereof
within 20 days after written demand therefor, for any amount which a Lender, the
Swing Line Lender or the L/C Issuer for any reason fails to pay indefeasibly to
the Administrative Agent as required by clause (b) of this
subsection.  A certificate as to the amount of any such payment or
liability delivered to the Borrower by a Lender, the Swing Line Lender or the
L/C Issuer (with a copy to the Administrative Agent), or by the Administrative
Agent on its own behalf or on behalf of a Lender, the Swing Line Lender or the
L/C Issuer, shall be conclusive absent manifest error.

       

      
        
           

        

        
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      (b)           Without
limiting the provisions of Section 2.8.1 or
2.8.2 above,
each Lender, the Swing Line Lender and the L/C Issuer shall, and does hereby,
indemnify the Borrower and the Administrative Agent, and shall make payment in
respect thereof within 20 days after written demand therefor, against any and
all Taxes and any and all related losses, claims, liabilities, penalties,
interest and expenses (including the fees, charges and disbursements of any
counsel for the Borrower or the Administrative Agent) incurred by or asserted
against the Borrower or the Administrative Agent by any Governmental Authority
as a result of the failure by such Lender, the Swing Line Lender or the L/C
Issuer, as the case may be, to deliver, or as a result of the inaccuracy,
inadequacy or deficiency of, any documentation required to be delivered by such
Lender, the Swing Line Lender or the L/C Issuer, as the case may be, to the
Borrower or the Administrative Agent pursuant to Section
2.8.5.  Each Lender, the Swing Line Lender and the L/C Issuer
hereby authorizes the Administrative Agent to set off and apply any and all
amounts at any time owing to such Lender, the Swing Line Lender or the L/C
Issuer, as the case may be, under this Agreement or any other Loan Document
against any amount due to the Administrative Agent under this clause
(b).  The agreements in this clause (b) shall survive the resignation
and/or replacement of the Administrative Agent, any assignment of rights by, or
the replacement of, a Lender, the Swing Line Lender or the L/C Issuer, the
termination of the Commitments and the repayment, satisfaction or discharge of
all other Obligations.

       

      2.8.4       Evidence of
Payments.  Upon a written request by the Borrower or the
Administrative Agent, as the case may be, after any payment of Taxes by the
Borrower or the Administrative Agent to a Governmental Authority as provided in
this Section
2.8, the Borrower shall deliver to the Administrative Agent or the
Administrative Agent shall deliver to the Borrower, as the case may be, the
original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of any return required by Law to report such
payment or other evidence of such payment reasonably satisfactory to the
Borrower or the Administrative Agent, as the case may be.

       

      2.8.5       Status of
Lenders; Tax Documentation.

       

      (a)           Each
Lender shall deliver to the Borrower and to the Administrative Agent, at the
time or times prescribed by applicable Laws or when reasonably requested by the
Borrower or the Administrative Agent, such properly completed and executed
documentation prescribed by applicable Laws or by the taxing authorities of any
jurisdiction and such other reasonably requested information as will permit the
Borrower or the Administrative Agent, as the case may be, to determine (A)
whether or not payments made hereunder or under any other Loan Document are
subject to Taxes, (B) if applicable, the required rate of withholding or
deduction, and (C) such Lender's entitlement to any available exemption from, or
reduction of, applicable Taxes in respect of all payments to be made to such
Lender by the Borrower pursuant to this Agreement or otherwise to establish such
Lender's status for withholding tax purposes in the applicable
jurisdiction.

       

      (b)           Without
limiting the generality of the foregoing, if the Borrower is resident for tax
purposes in the United States,

       

      (i)           any
Lender that is a "United States person" within the meaning of Section
7701(a)(30) of the Code shall deliver to the Borrower and the Administrative
Agent executed originals of Internal Revenue Service Form W-9 or such other
documentation or information prescribed by applicable Laws or reasonably
requested by the Borrower or the Administrative Agent as will enable the
Borrower or the Administrative Agent, as the case may be, to determine whether
or not such Lender is subject to backup withholding or information reporting
requirements; and

       

      
        
           

        

        
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      (ii)           each
Foreign Lender that is entitled under the Code or any applicable treaty to an
exemption from or reduction of withholding tax with respect to payments
hereunder or under any other Loan Document shall deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the request of the
Borrower or the Administrative Agent, but only if such Foreign Lender is legally
entitled to do so), whichever of the following is applicable:

       

      (A)           executed
originals of Internal Revenue Service Form W-8BEN claiming eligibility for
benefits of an income tax treaty to which the United States is a
party,

       

      (B)           executed
originals of Internal Revenue Service Form W-8ECI,

       

      (C)           executed
originals of Internal Revenue Service Form W-8IMY and all required supporting
documentation,

       

      (D)           in
the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under Section 881(c) of the Code, (x) a certificate to the
effect that such Foreign Lender is not (A) a "bank" within the meaning of
Section 881(c)(3)(A) of the Code, (B) a "10 percent shareholder" of the Borrower
within the meaning of Section 881(c)(3)(B) of the Code, or (C) a "controlled
foreign corporation" described in Section 881(c)(3)(C) of the Code and (y)
executed originals of  Internal Revenue Service Form W-8BEN,
or

       

      (E)           executed
originals of any other form prescribed by applicable Laws as a basis for
claiming exemption from or a reduction in United States Federal withholding tax
together with such supplementary documentation as may be prescribed by
applicable Laws to permit the Borrower or the Administrative Agent to determine
the withholding or deduction required to be made.

       

      (c)          Each
Lender shall promptly (A) notify the Borrower and the Administrative Agent of
any change in circumstances which would modify or render invalid any claimed
exemption or reduction, and (B) take such steps as shall not be materially
disadvantageous to it, in the reasonable judgment of such Lender, and as may be
reasonably necessary (including the re-designation of its Lending Office) to
avoid any requirement of applicable Laws of any jurisdiction that the Borrower
or the Administrative Agent make any withholding or deduction for taxes from
amounts payable to such Lender.

       

      2.8.6       Treatment
of Certain Refunds.  Unless required by applicable Laws, at no
time shall the Administrative Agent have any obligation to file for or otherwise
pursue on behalf of a Lender, the Swing Line Lender or the L/C Issuer, or have
any obligation to pay to any Lender, the Swing Line Lender or the L/C Issuer,
any refund of Taxes withheld or deducted from funds paid for the account of such
Lender, the Swing Line Lender or the L/C Issuer, as the case may
be.  If the Administrative Agent, any Lender, the Swing Line Lender or
the L/C Issuer determines, in its sole discretion, that it has received a refund
of any Taxes or Other Taxes as to which it has been indemnified by the Borrower
or with respect to which the Borrower has paid additional amounts pursuant to
this Section, it shall pay to the Borrower an amount equal to such refund (but
only to the extent of indemnity payments made, or additional amounts paid, by
the Borrower under this Section with respect to the Taxes or Other Taxes giving
rise to such refund), net of all reasonable out-of-pocket expenses actually
incurred by the Administrative Agent, such Lender, the Swing Line Lender or the
L/C Issuer, as the case may be, and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund); provided, however, that the
Borrower, upon the request of the Administrative Agent, such Lender, the Swing
Line Lender or the L/C Issuer, agrees to repay the amount paid over to the
Borrower (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent, such Lender, the Swing Line
Lender or the L/C Issuer in the event the Administrative Agent, such Lender, the
Swing Line Lender or the L/C Issuer is required to repay such refund to such
Governmental Authority.  This subsection shall not be construed to
require the Administrative Agent, any Lender, the Swing Line Lender or the L/C
Issuer to make available its tax returns (or any other information relating to
its taxes that it deems confidential) to the Borrower or any other
Person.

       

      
        
           

        

        
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      3.           SECURITY FOR THE CREDIT
FACILITY; LOAN AND SECURITY DOCUMENTS.

       

      3.1         Security.  The
Credit Extensions together with interest thereon and all other charges and
amounts payable by, and all other obligations of, the Borrower to the
Administrative Agent and/or each of the Lenders, whenever incurred, direct or
indirect, absolute or contingent, arising under or with respect to this
Agreement, the Security Documents, or any other Loan Document, together with all
other Obligations, shall be secured by the following collateral (the "Collateral") which
the Borrower agrees to provide and maintain, or cause to be provided and
maintained (whether provided for each in separate agreements or combined with
various other agreements):

       

      3.1.1       Mortgage/Deed
of Trust and Security Agreement.

       

      (a)           A
first priority mortgage/deed of trust (as applicable), collateral assignment of
leases and rents and security agreement (individually and collectively, the
"Mortgage") in
the form reasonably required by the Administrative Agent, granted by each
Borrowing Base Property Owner to the Administrative Agent or a trustee on behalf
of the Administrative Agent, as applicable, for the ratable benefit of the
Lenders, (i) on (A) each Collateral Property, (B) all land, improvements,
furniture, fixtures, equipment, and other assets (including, without limitation,
property management agreements, contracts, contract rights, accounts, Licenses
and Permits, to the extent assignable, and general intangibles), including all
after-acquired property, owned, or in which each Borrowing Base Property Owner
has or obtains any interest, in connection with each Collateral Property, (C)
all insurance proceeds and other proceeds therefrom, and (D) all other assets of
each Borrowing Base Property Owner, whether now owned or hereafter acquired and
related to each Collateral Property and (ii) with respect to all Leases of each
Collateral Property and all income and profits to be derived from the operation
and leasing of each Collateral Property.

       

      (b)           Each
Mortgage shall secure the payment and performance of the
Obligations.

       

      (c)           At
the option of the Administrative Agent, each Mortgage shall be either (x) a
first priority mortgage/deed of trust (as applicable) and security agreement
granted by the applicable Borrowing Base Property Owner to the Administrative
Agent or a trustee on behalf of the Administrative Agent, as applicable, on
behalf of the Lenders, or (y) an amendment, restatement and consolidation of a
first priority mortgage/deed of trust (as applicable) and security agreement
acquired by the Administrative Agent, for the ratable benefit of the Lenders,
with proceeds of a Revolving Loan Advance.

       

      (d)           In
the event that in connection with the granting of any Mortgage on a Borrowing
Base Property, the Administrative Agent, for the ratable benefit of the Lenders,
purchases by assignment an existing mortgage loan or loans on such Borrowing
Base Property, the Borrower represents, warrants, covenants and agrees as
follows:

       

      (i)           The
request for the Administrative Agent to purchase by assignment such loan or loan
shall constitute a representation and warranty by the Borrower that (A) all
signatures by the Borrower, any Borrower Subsidiary and, to the best of the
Borrower's knowledge, all other Persons on the assigned promissory note,
mortgage, and all other documents, instruments, and agreements executed in
connection  therewith are genuine, (B) to the Borrower's knowledge,
such documents, together with any other documents or
instruments  supplied by the Borrower to the Administrative Agent,
sets forth the entire agreement with respect to the loan arrangement evidenced
thereby, and (C) to the Borrower's knowledge, the applicable Borrowing Base
Property Owner is absolutely and unconditionally indebted under said documents
and does not have any offsets, defenses, or counterclaims thereunder, or
otherwise against the lender thereunder, or any predecessor in interest to such
lender;

       

      
        
           

        

        
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      (ii)           The
Borrower waives, on its own behalf and on behalf of the Loan Parties, any
offsets, defenses or counterclaims that exist or may have existed with respect
to such assigned loan arrangement and assigned documents; and

       

      (iii)           The
Borrower shall cause to be delivered to the Administrative Agent such documents,
instruments and agreements as the Administrative Agent shall reasonably require
in order to evidence and effectuate such assignment and the terms and conditions
hereof.

       

      3.1.2       Guaranties.  The
unconditional, continuing guaranty (individually and collectively, and together
with any continuing guaranty executed by a Significant Subsidiary pursuant to
Section 7.31,
the "Guaranty")
from each Guarantor, pursuant to which each Guarantor shall guarantee the
prompt, punctual, and faithful payment of the Credit Facility and the
performance of all Borrower's other Obligations to the Administrative Agent and
each of the Lenders under the Loan Documents in the form reasonably required by
the Administrative Agent, which shall include each Borrowing Base Property Owner
(other than the Borrower) and each direct owner of the equity in a Borrowing
Base Property Owner (other than the Borrower).

       

      3.1.3       Environmental
Compliance and Indemnification Agreement.  A compliance and
indemnification agreement with respect to environmental matters (individually
and collectively the "Environmental Indemnity
Agreement") from the Borrower and each Guarantor in favor of the
Administrative Agent and each of the Lenders in the form reasonably required by
the Administrative Agent.

       

      3.1.4       Additional
Documents.  Any other documents, instruments and agreements
from time to time reasonably required by the Administrative Agent in order to
provide a first priority lien on the Collateral.

       

      3.2         Loan
Documents and Security Documents.
The Credit Facility shall be made, evidenced, administered, secured and
governed by all of the terms, conditions and provisions of the following loan
documents, each as the same may be hereafter modified or amended, consisting of:
(i) this Agreement; (ii) the Notes; (iii) the Swing Line Note; (iv) the various
documents and agreements referenced in Section 3.1 above,
and (v) any other documents, instruments, or agreements heretofore or hereafter
executed that evidence, secure or relate to the Credit Facility (collectively,
the "Loan
Documents").

       

      The Loan
Documents referenced in items 3.1.1 through and
including 3.1.4, together with
any such other Loan Documents as may be executed in accordance with Section 3.5 below, as
to any Collateral Property, are sometimes referred to herein, singly and
collectively as the "Security
Documents."

       

      3.3         Removal
of Individual Property as a Borrowing Base Property - Borrower.  From
time to time during the term of this Agreement following (i) Borrower's written
request ("Collateral
Release Request") indicating that (x) the Borrower intends to sell or
refinance the subject Borrowing Base Property or otherwise remove the Borrowing
Base Property from the Collateral for reasons not set forth herein, (y) the
removal of one or more Borrowing Base Properties is necessary to cure or remedy
a Default hereunder or (z) the removal of one or more Borrowing Base Properties
is necessary to comply with Section 5.2.1 to
permit a Credit Extension under Section 5.2 and (ii)
satisfaction of the Release Conditions, the Administrative Agent shall, in each
case to the extent applicable, within three (3) Business Days release such
Borrowing Base Property from the Lien held by the Administrative Agent, for the
ratable benefit of the Lenders, release the subject Borrowing Base Property
Owner from the Guaranty, terminate the assignments made by such Borrowing Base
Property Owner pursuant to the documents set forth in Section 3.1, and
thereafter, to the extent such Borrowing Base Property Owner does not own any
other Borrowing Base Property, such Borrowing Base Property Owner shall no
longer be a Loan Party for the purposes of this Agreement; provided, however, any such
release by the Administrative Agent shall not be deemed to terminate or release
such Borrowing Base Property Owner from any obligation or liability under any
Loan Document which specifically by its terms survives the said release or the
payment in full of the Obligations.  The "Release Conditions"
are the following:

       

      
        
           

        

        
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      3.3.1       Borrowing
Base Compliance.  After giving effect to the release of the
Borrowing Base Property, the Total Outstandings will be less than or equal to
the Maximum Loan Amount.

       

      3.3.2       Financial
Covenant Compliance.  Upon release of the Lien on the subject
Borrowing Base Property, the Financial Covenants shall remain satisfied (or be
satisfied if the release cures a Default which resulted from the Financial
Covenants not being satisfied).

       

      3.3.3       No Default
Upon Release.  No Default shall
exist under this Agreement or the other Loan Documents at the time of any such
release, except for any Default which is cured or remedied by the removal of
such Individual Property from being a Borrowing Base Property.

       

      3.3.4       No Default
Prior to Release.  No Event of Default shall exist under this
Agreement or the other Loan Documents at the time of the Collateral Release
Request or at the time of any such release, except for any Event of Default
which is cured or remedied by the removal of such Individual Property from being
a Borrowing Base Property.

       

      3.3.5       Payment of
Fees.  The Borrower shall pay or reimburse the Administrative
Agent for all appraisal fees, title insurance and recording costs, reasonable
legal fees and expenses and other reasonable costs and expenses incurred by
Administrative Agent in connection with the release.

       

      Any
failure of any removal and release requested by the Borrower to meet all of the
Release Conditions shall be deemed a rejection of the proposed Collateral
Release Request and, subject to the other terms and conditions hereof as to
whether any Individual Property is a Borrowing Base Property, such Borrowing
Base Property shall remain a Borrowing Base Property hereunder and shall be
included within the Collateral.  Administrative Agent shall notify
Borrower within five (5) Business Days if such Release Conditions are not
satisfied.

       

      3.4         Removal
of Individual Property as a Borrowing Base Property - Administrative
Agent.

       

      3.4.1       Removal
Criteria.  An Individual
Property shall no longer be deemed to be a Borrowing Base Property upon the
determination by the Administrative Agent of the occurrence of any of the
following:

       

      (a)           A
Borrowing Base Property is a Non-Stabilized Asset for a period of six (6)
consecutive months;

       

      (b)           A
Major Event of Loss occurs as to a Borrowing Base Property; or

       

      (c)           A
Borrowing Base Property as to which an Event of Loss occurs is not, or ceases to
be, a Restoration Property, or upon completion of the Repair Work, will not meet
all of the Borrowing Base Property Requirements.

       

      3.4.2       Release by
Administrative Agent.  If requested by the Borrower and the
Release Conditions are satisfied with respect to any Individual Property
determined by the Administrative Agent to no longer be deemed a Borrowing Base
Property in accordance with this Section 3.4, the
Administrative Agent shall, in each case to the extent applicable, release such
Individual Property from the Lien held by the Administrative Agent and release
the subject Borrowing Base Property Owner from the Guaranty, and thereafter, to
the extent such Borrowing Base Property Owner does not own any other Borrowing
Base Property, such Borrowing Base Property Owner shall no longer be a Loan
Party for the purposes of this Agreement; provided, however, any such
release by the Administrative Agent shall not be deemed to terminate or release
such Borrowing Base Property Owner from any obligation or liability under any
Loan Document which specifically by its terms survives the said release or the
payment in full of the Obligations.  However, if the said Release
Conditions are not satisfied with respect to such Individual Property, although
such Individual Property shall no longer be a Borrowing Base Property, the
Individual Property shall not be released from the Lien held by the
Administrative Agent (shall continue to be a Collateral Property) and there
shall be no release of the Collateral relating to such Individual Property or
the subject Borrowing Base Property Owner until such time as the Release
Conditions are satisfied with respect thereto.

       

      
        
           

        

        
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      3.5         Additional
Borrowing Base Property.  From time to time during the term of
this Agreement following the Borrower's written request ("Additional Collateral
Request"), the Required Lenders shall authorize the Administrative Agent
to accept one or more Individual Properties as Borrowing Base Properties upon
the satisfaction of the following conditions, in a manner reasonably acceptable
to the Administrative Agent and the Required Lenders:

       

      (a)           If
sought by the Borrower, the Borrower shall have obtained Preliminary Approval
for the addition of such Individual Property.

       

      (b)           The
Borrower (or applicable Loan Party) shall have satisfied all of the Borrowing
Base Property Requirements as to such Individual Property.

       

      (c)           The
Borrower and the applicable Loan Parties shall have executed and delivered the
documents set forth in Section
3.1.

       

      (d)           The
Borrower shall pay or reimburse the Administrative Agent for all appraisal fees,
title insurance and recording costs, reasonable legal fees and expenses and
other reasonable costs and expenses incurred by Administrative Agent in
connection with the additional Borrowing Base Property.

       

      (e)           The
Borrower, the subject Borrowing Base Property Owner, and the subject Individual
Property shall have satisfied all applicable conditions precedent set forth in
Article 5 prior
to the inclusion of the Individual Property as a Borrowing Base
Property.

       

      The
Administrative Agent shall give the Borrower prompt written notice of the
decision of the Lenders with respect to the admission or rejection of any
Individual Property as a Borrowing Base Property.  To the extent that
an Individual Property does not meet the requirements set forth above, the
Borrower may nevertheless request that such Individual Property be included as a
Borrowing Base Property and the Required Lenders may, in their sole and absolute
discretion, agree to the acceptance of such Individual Property as an additional
Borrowing Base Property.

       

      4.           CONTINUING AUTHORITY OF
AUTHORIZED OFFICERS.

       

      The
Administrative Agent and each of the Lenders are authorized to rely upon the
continuing authority of the Authorized Officers with respect to all matters
pertaining to the Credit Facility and the Loan Documents including, but not
limited to, the selection of interest rates, the submission of requests for
Revolving Loan Advances, Swing Line Advances and Letters of Credit and
certificates with regard thereto.  Such authorization may be changed
only upon written notice to Administrative Agent accompanied by evidence,
reasonably satisfactory to Administrative Agent, of the authority of such
Authorized Officer giving such notice and such notice shall be effective not
sooner than five (5) Business Days following receipt thereof by Administrative
Agent. The Authorized Officers as of the Closing Date are as set forth Schedule 4 attached
hereto.

       

      5.           CONDITIONS
PRECEDENT.

       

      5.1         Closing
Credit Facility and Funding Initial Revolving Loan Advance.  It
shall be a condition precedent of Lenders' obligation to close the Credit
Facility and to fund the initial proceeds of the Credit Facility that each of
the following conditions precedent be satisfied in full, unless specifically
waived in writing by all of the Lenders at or prior to the date of this
Agreement (the "Closing
Date"):

       

      
        
           

        

        
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      5.1.1       Satisfactory
Loan Documents. On
the Closing Date, each of the Loan Documents shall be satisfactory in form,
content and manner of execution and delivery to the Administrative Agent and the
Administrative Agent's counsel, and all Loan Documents shall be in full force
and effect.

       

      5.1.2       Financial Information; No
Material Change.

       

      (a)           No
change shall have occurred in the financial condition, business, affairs,
operations or control of Borrower and/or the Loan Parties, since the date of
their respective financial statements most recently delivered to Administrative
Agent or any of the Lenders, which change has had or could reasonably be
expected to have a Material Adverse Effect; and Borrower and the other Loan
Parties shall have furnished Administrative Agent such other financial
information, and certifications as reasonably requested by the Administrative
Agent.

       

      (b)           The
Borrower shall have provided to the Administrative Agent such certificates and
other evidence as the Administrative Agent may reasonably require to evidence
that the Borrower and each of the Borrowing Base Property Owners (both before
and after giving effect to the Credit Facility) is solvent, has assets having a
fair value in excess of the amount required to pay such Person's probable
liabilities and existing Debts as such become absolute and mature, and has
adequate capital for the conduct of such Person's business and the ability to
pay such Person's Debts from time to time incurred in connection therewith as
such Debts mature, including the Closing Compliance Certificate (the "Closing Compliance
Certificate") set forth as Exhibit E attached
hereto or in such other form reasonably acceptable to the Administrative
Agent.

       

      5.1.3       Representations
and Warranties Accurate.  All representations and warranties
made by or on behalf of any of the Borrower and the other Loan Parties, or any
of them, to the Administrative Agent or any of the Lenders shall be true,
accurate and complete in all material respects and shall not omit any material
fact necessary to make the same not materially misleading.

       

      5.1.4       Validity
and Sufficiency of Security Documents.  The Security Documents
shall create a valid and perfected lien in and to the Collateral, and each of
the Security Documents and related UCC filings will be filed to the satisfaction
of the Administrative Agent and the Administrative Agent's counsel, including,
without limitation, as follows:

       

      (a)           The
Borrower, the other Loan Parties, and any other Persons executing Loan Documents
on the Closing Date shall have delivered to the Administrative Agent with
respect to the Security Documents or, in the case of UCC-1 financing statements,
delivery of such financing statements in proper form for recording, and shall
have taken all such other actions as may be necessary or, in the reasonable
opinion of the Administrative Agent, desirable to perfect the Liens and security
interests intended to be created by the Security Documents in the Collateral
covered thereby; provided, however, that
notwithstanding the foregoing, the recordation of the Security Documents and UCC
filings, including, without limitation, the Mortgage and the fixture filings,
shall not be a condition precedent hereunder if the Administrative Agent has
received gap title insurance acceptable to the Administrative Agent;
and

       

      (b)           On
or prior to the Closing Date, the Administrative Agent shall have received the
results of a UCC, tax lien and judgment search as may be reasonably requested by
the Administrative Agent with respect to the Borrower and any other Loan
Parties, and the results of such search shall indicate there are no judgments
which the Administrative Agent shall reasonably determine in good faith could
reasonably be expected to have a Material Adverse Effect or Liens not permitted
under the Loan Documents or to be satisfied with the proceeds of the initial
Revolving Loan Advance or otherwise permitted by the Administrative
Agent.

       

      
        
          
             

          

          
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      5.1.5       Litigation.  On
the Closing Date, there shall not be any actions, suits or proceedings at law or
in equity or by or before any governmental instrumentality or other agency or
regulatory authority by any entity (private or governmental) pending or, to the
best of the Borrower's knowledge, threatened with respect to the Loan, the
transactions contemplated in the Loan Documents, or the Borrower, any other Loan
Party, or any other Borrower Subsidiary, which are not fully covered (subject to
deductibles) by an insurance policy issued by a reputable and financially viable
insurance company, or, to the extent not so covered, which the Administrative
Agent shall reasonably determine in good faith could reasonably be expected to
have a Material Adverse Effect.

       

      5.1.6       Formation
Documents and Entity Agreements.  On the Closing Date, the
Administrative Agent shall have received a certificate of an Authorized Officer
of each Loan Party (or the manager or general partner of such Loan Party, as
applicable) certifying as to (a) resolutions of such Loan Party authorizing and
approving the transactions contemplated by the Loan Documents, and the execution
and delivery thereof by such Loan Party in respect of the documents to which it
is a party on its own behalf, or as a general partner or manager of such Loan
Party, in respect of any of the Loan Documents, (b) signatures and incumbency of
all Authorized Officers of such Loan Party (or the manager or general partner of
such Loan Party, as applicable) executing documentation on behalf of such entity
or on behalf of such Loan Party, in connection with the transactions
contemplated by the Loan Documents, (c) the Formation Documents of such Loan
Party having been duly executed, delivered and filed (to the extent required by
applicable Laws) and remaining in full force and effect and unmodified except as
stated therein as of the date of such certificate (and annexing copies thereof)
and (d) the good standing certificates of such Loan Party for (i) its state of
formation and (ii) such other good standing certificates where the conduct of
such Loan Party's business and ownership of its assets requires such
qualification unless the failure to be so qualified could not reasonably be
expected to have a Material Adverse Effect on such Loan Party.

       

      5.1.7       Compliance
With Law.  The Administrative Agent shall have received and
approved evidence that there are no Laws which prohibit or adversely limit the
capacity or authority of the Borrower or any Loan Party to enter into the Loan
Documents and perform the obligations of such Person with respect
thereto.

       

      5.1.8       Compliance
With Financial Covenants.  The Administrative Agent shall have
received evidence reflecting the Borrower's compliance with the Financial
Covenants and the terms and conditions hereof after giving effect to this
Agreement and the other Loan Documents.

       

      5.1.9       Borrowing
Base Property Due Diligence.  The Administrative Agent shall
have received and completed a review of such due diligence as the Administrative
Agent may reasonably require with respect to any Borrowing Base Property,
consistent with customary commercial lending practices for properties of a
similar nature.

       

      5.1.10     Condition
of Property.  There shall have been no material unrepaired or
unrestored damage or destruction by fire or otherwise to any of the real or
tangible personal property comprising or intended to comprise the Borrowing Base
Properties.

       

      5.1.11     Insurance.  The
Borrower shall have provided to the Administrative Agent with respect to each
Borrowing Base Property, the Borrower, each other Loan Party and the Collateral
evidence of: (i) insurance coverage which meets the property, hazard, and other
insurance requirements set forth on Schedule 5.1.11 of
this Agreement to the satisfaction of Administrative Agent; and (ii) payment of
the premiums for such insurance in accordance with the requirements set forth in
Section
7.5.2.

       

      5.1.12     Third Party
Consents and Agreements.  The Administrative Agent shall have
received such third party consents and agreements, if any, as the Administrative
Agent may reasonably require with respect to the entering into the Loan
Documents and the performance of the obligations thereunder.

       

      5.1.13     Legal and
other Opinions.  The Administrative Agent shall have received
and approved legal opinion letters from counsel representing the Borrower and
the other Loan Parties which meet Administrative Agent's legal opinion
requirements and covering such matters incident to the transactions contemplated
herein as the Administrative Agent may request.

      
      

      
        
           

        

        
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        5.1.14     No
Default.  There shall not be any Default under any of the Loan
Documents.

         

      

      5.2         Conditions
to all Credit Extensions.  The
obligation of each Lender to honor any Credit Extension (other than a Revolving
Loan Notice requesting only a conversion of Revolving Loans to the other Type,
or a continuation of LIBO Rate Advances) is subject to the following conditions
precedent:

       

      5.2.1       Representations
and Warranties.  The representations
and warranties of the Borrower and each other Loan Party contained in Article 6 or any
other Loan Document, or which are contained in any document furnished at any
time under or in connection herewith or therewith, shall be true and correct in
all material respects on and as of the date of such Credit Extension, except to
the extent that such representations and warranties specifically refer to an
earlier date, in which case they shall be true and correct in all material
respects as of such earlier date, and except that for purposes of this Section 5.2, the
representations and warranties contained in Section 6.8 shall be
deemed to refer to the most recent statements furnished pursuant to Section 7.2.1 and
Section 7.2.2;
provided, however, that to the
extent any representation or warranty made by the Borrower in this Agreement or
any other Loan Document shall be incorrect or misleading in any material respect
with respect to one or more Borrowing Base Properties such that this condition
of Section
5.2.1 cannot be satisfied, the Borrower may remove a Borrowing Base
Property pursuant to the terms of Section 3.3 (with a
resulting decrease in the Borrowing Base Value) so that the conditions of this
Section 5.2.1
may be satisfied.

       

      5.2.2       No
Default. No Default
or Event of Default shall exist, or would result from such proposed Credit
Extension or from the application of the proceeds thereof.

       

      5.2.3       Financial
Covenant Compliance.  The Borrower shall be in compliance, on a
pro forma basis after giving effect to such Credit Extension, with the Financial
Covenants, as satisfied by the Closing Compliance Certificate, or once
delivered, the most recent Compliance Certificate delivered by the
Borrower.

       

      5.2.4       Revolving
Loan Notice.  The Administrative Agent and, if applicable, the
Swing Line Lender and the L/C Issuer shall have received a Revolving Loan Notice
in accordance with the requirements hereof.

       

      Each
request for a Credit Extension (other than a Revolving Loan Notice requesting
only a conversion of Revolving Loans to the other Type or a continuation of LIBO
Rate Advances) submitted by the Borrower shall be deemed to be a certification
that the conditions specified in Sections 5.2.1, 5.2.2 and 5.2.3 have been
satisfied on and as of the date of the applicable Credit Extension.

       

      6.           REPRESENTATIONS AND
WARRANTIES.

       

      To induce
the Lenders to enter into this Agreement and to make each Revolving Loan Advance
and Swing Line Advance, to issue each Letter of Credit and to otherwise complete
all of the transactions contemplated hereby, the Borrower represents and
warrants to the Administrative Agent and each Lender that:

       

      6.1         Formation.  Each
Loan Party has been duly formed and is validly existing and in good standing as
a corporation, partnership or limited liability company, as the case may be,
under the laws of the State of its formation.  Each Loan Party has the
requisite corporate, partnership or company power and authority, as applicable,
to own its assets and conduct its businesses as currently conducted and owned,
and to enter into and perform its obligations under each Loan Document to which
it is a party.  Each Loan Party is in good standing and authorized to
do business in each jurisdiction where the ownership of its assets and/or the
conduct of its business requires such qualification except where the failure to
be so qualified could not reasonably be expected to have a Material Adverse
Effect.

       

      6.2         Proceedings;
Enforceability.  Each Loan Party has taken all requisite
corporate, partnership or limited liability company action, as applicable, to
authorize the execution, delivery and performance by such Loan Party of the Loan
Documents to which it is a party.  Each Loan Document which is
required to be executed and delivered on or prior to the date on which this
representation and warranty is being made has been duly authorized, executed and
delivered and constitutes the legal, valid and binding obligation of each Loan
Party thereto, enforceable against each such Loan Party in accordance with its
respective terms except to the extent that the enforceability thereof may be
limited by applicable Debtor Relief Laws and to general principles of equity
(regardless of whether enforcement is sought in a proceeding in equity or at
law).

       

      
        
           

        

        
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      6.3         Conflicts.  Neither
the execution, delivery and performance of the Loan Documents by the Loan
Parties nor compliance by any Loan Party with the terms and provisions thereof
(including, without limitation, the granting of Liens pursuant to the Security
Documents), (a) will contravene any provision of any applicable Law or any
order, writ, injunction or decree of any court or Governmental Authority having
jurisdiction over the Borrower, the Collateral or any Loan Party, (b) will
conflict with or result in any breach of any of the terms, covenants, conditions
of, or constitute a default under, or result in the creation or imposition (or
the obligation to create or impose) of any Lien (except pursuant to the Security
Documents) upon any of the property or assets of any Loan Party pursuant to the
terms of any indenture, mortgage, deed of trust, credit agreement or loan
agreement or any other agreement, contract or instrument to which any Loan Party
is a party or by which it or any of its properties or assets is bound or to
which it may be subject, or (c) will violate any provision of any Formation
Document of any Loan Party.

       

      6.4         Ownership
and Taxpayer Identification Numbers.  Set forth on Schedule 6.4 (as such
may be updated from time to time) is the exact correct and legal name, tax
identification number(s) and state of incorporation or organization of the
Borrower and each other Loan Party.  Each Borrowing Base Property
Owner is either a Wholly-Owned Subsidiary of the Borrower or the
Borrower.

       

      6.5         Litigation.  There
are no actions, suits or proceedings at law or in equity or by or before any
Governmental Authority or other agency or regulatory authority by any entity
(private or governmental) pending or, to the best of each Loan Party's
knowledge, threatened with respect to the Credit Facility, the transactions
contemplated in the Loan Documents, any Loan Party, the Collateral or any
Borrower Subsidiary, which are not fully covered (subject to deductibles) by an
insurance policy issued by a reputable and financially viable insurance company,
or, to the extent not so covered, could (a) materially adversely affect a
Borrowing Base Property or (b) have or reasonably be expected to have a Material
Adverse Effect.

       

      6.6         Information.  All
factual information furnished by or on behalf of the Borrower or any Loan Party
to the Administrative Agent and/or any of the Lenders (including, without
limitation, all information contained in the Loan Documents) for purposes of or
in connection with this Agreement, the other Loan Documents or any transaction
contemplated herein or therein is, and all other such factual information
hereafter furnished by or on behalf of the Borrower or any Loan Party to the
Administrative Agent and/or any of the Lenders will be, true and accurate in all
material respects, to each Loan Party's knowledge, on the date as of which such
information is dated or certified and not incomplete by omitting to state any
fact necessary to make such information not misleading in any material respect
at such time in light of the circumstances under which such information was
provided. There is no material fact presently known to the Borrower which has
not been disclosed to the Administrative Agent, which could reasonably be
expected to have a Material Adverse Effect.

       

      6.7         Taxes.  All
Loan Parties have made or caused to be made all required tax filings and are not
delinquent in the payment of any federal, state and local taxes, assessments,
impositions or other governmental charges applicable to them and/or their
respective assets, except to the extent same are being contested in a manner
which complies with the requirements of Section 8.2.3 or to
the extent failure to do so could reasonably be expected to have a Material
Adverse Effect.

       

      6.8         Financial
Information.  The Consolidated financial statements of Parent
and the Consolidating financial statements of Mid-America and each Borrower
Subsidiary delivered to the Administrative Agent  (and which
statements the Administrative Agent has delivered to the Lenders) present fairly
the (a) financial condition of the Borrower and the Borrower Subsidiaries, as
applicable, as of the dates of such statements and (b) results of operations for
the periods covered thereby.  Since the dates of the relevant
financial statements, no change has occurred which could reasonably be expected
to have a Material Adverse Effect.  All financial statements of the
Borrower, the Borrower Subsidiaries, or any other Loan Party hereafter furnished
to the Administrative Agent or any of the Lenders shall be true, accurate and
complete in all material respects and shall fairly present the financial
condition of the Borrower, the Borrower Subsidiaries and/or respective Loan
Party, as applicable, as of the date thereof.

       

      
        
           

        

        
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      6.9         Control
Provisions.  The Borrower controls, directly or indirectly, and
without the requirement for consent of any other Person, the management of each
Borrowing Base Property Owner, subject to the rights of those minority or other
equity interest holders as the Administrative Agent may approve.

       

      6.10       Formation
Documents.  The Borrower has delivered or caused to be
delivered to the Administrative Agent true and complete copies of all Formation
Documents of the Loan Parties, and all amendments thereto.

       

      6.11       Bankruptcy
Filings.  No Loan Party is contemplating either a filing of a
petition under any Debtor Relief Laws or the liquidation of all or a major
portion of its assets or property, and the Borrower has no knowledge of any
Person contemplating the filing of any such petition against any Loan
Party.

       

      6.12       Investment
Company.  No Loan Party is an "investment company" or a company
"controlled" by an "investment company," within the meaning of the Investment
Company Act of 1940, as amended.

       

      6.13       Solvency.  After
giving effect to the transactions contemplated hereby, (a) each of the Loan
Parties is solvent and is able to pay its debts and other liabilities,
contingent obligations and other commitments as they mature in the normal course
of business, and (b) the fair saleable value of each Loan Party's assets,
measured on a going concern basis, exceeds all probable liabilities, including
those to be incurred pursuant to this Agreement.  After giving effect
to the transactions contemplated hereby, none of the Loan Parties (i) has
unreasonably small capital in relation to the business in which it is or
proposes to be engaged or (ii) has incurred, or believes that it will incur
debts beyond its ability to pay such debts as they become due (taking into
account the timing and amounts to be payable on or in respect to the obligations
of the Loan Parties); provided, however, that nothing
contained in subclause (i) shall require any equity holder to make any capital
contribution to comply with this subclause (i).  In executing the Loan
Documents and consummating the transactions contemplated hereby, none of the
Loan Parties intends to hinder, delay or defraud either present or future
creditors or other Persons to which one or more of the Loan Parties is or will
become indebted.

       

      6.14       Borrowing
Base Properties.

       

      6.14.1     Licenses
and Permits.  The Borrowing Base Property Owners possess such
Licenses and Permits issued by the appropriate federal, state, or local
regulatory agencies or bodies necessary to own and operate each Borrowing Base
Property, except where the failure to possess any such License or Permit could
not reasonably be expected to have a Material Adverse Effect.  The
Borrowing Base Property Owners are in material compliance with the terms and
conditions of all such Licenses and Permits, except where the failure so to
comply could not, singly or in the aggregate, reasonably be expected to have a
Material Adverse Effect.  All of the Licenses and Permits are valid
and in full force and effect, except where the invalidity of such Licenses and
Permits or the failure of such Licenses and Permits to be in full force and
effect could not reasonably be expected to have a Material Adverse
Effect.  Neither the Borrower nor any of the Borrowing Base Property
Owners has received any written notice of proceedings relating to the revocation
or modification of any such Licenses and Permits which, singly or in the
aggregate, if the subject of an unfavorable decision, ruling or finding, could
reasonably be expected to result in a Material Adverse Effect.

       

      6.14.2     Ownership.  (a)  The
Borrowing Base Property Owners have fee simple title to the Borrowing Base
Properties, as set forth in Schedule 6.14.2 attached
hereto (as such may be updated from time to time), which such schedule (as it
may be updated from time to time) also sets forth the current appraised value of
each such Borrowing Base Property; (b) the interest of the Borrowing Base
Property Owners in the Borrowing Base Properties are not subject to any Liens
except for those in favor of the Administrative Agent for the ratable benefit of
the Lenders securing the repayment of Obligations and other Permitted Liens; (c)
neither the Borrower, nor any of the Borrowing Base Property Owners has received
written notice of the assertion of any material valid claim by anyone adverse to
any Loan Party's ownership in any Borrowing Base Property; and (d) no Person has
an option or right of first refusal to purchase all or part of any Borrowing
Base Property or any interest therein which has not been waived (except as
disclosed in writing and approved by the Required Lenders).

       

      
        
           

        

        
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      6.14.3     Environmental
Matters.  Except to the extent (i) the failure of the following
to be true could not reasonably be expected to have a Material Adverse Effect or
(ii) disclosed in writing to the Lenders prior to the Individual Property
becoming a Borrowing Base Property pursuant to an environmental report, (a) to
each Borrowing Base Property Owner's or Loan Party's knowledge, each Borrowing
Base Property is free of any Hazardous Materials in violation of any
Environmental Laws applicable to such property; (b) none of the Borrowing Base
Property Owners nor any Loan Party has received any written notice of a claim
under or pursuant to any Hazardous Material Laws applicable to a Borrowing Base
Property or under common law pertaining to Hazardous Materials on or originating
from any Borrowing Base Property; and (c) none of the Borrowing Base Property
Owners or any Loan Party has received any written notice from any Governmental
Authority claiming any material violation of any Hazardous Material Laws that is
uncured or unremediated.

       

      6.15       Margin
Regulations; Use of Proceeds.  The
Loan Parties are not engaged and will not engage, principally or as one of its
important activities, in the business of purchasing or carrying margin stock
(within the meaning of Regulation U issued by the Board of Governors of the
Federal Reserve System of the United States), or extending credit for the
purpose of purchasing or carrying margin stock.  The proceeds of the
Credit Facility shall be used solely and exclusively as provided in Section
8.13.  No portion of the proceeds of the Credit Facility shall
be used directly or indirectly, and whether immediately, incidentally or
ultimately (a) to purchase or carry any margin stock or to extend credit to
others for the purpose thereof or to repay or refund indebtedness previously
incurred for such purpose, or (b) for any purpose which would violate or in
inconsistent with the provisions of regulations of the Board of Governors of the
Federal Reserve System including, without limitation, Regulations T, U and X
thereof.

       

      6.16       Insurance.  The
Collateral Properties are insured by insurers of recognized financial
responsibility against such losses and risks in compliance with the requirements
of Schedule
5.1.11 attached hereto.

       

      6.17       Deferred
Compensation and ERISA.  Neither the Borrower nor any other
Loan Party or any ERISA Affiliate, has any employee pension benefit plan (as
defined in Section 3(2) of ERISA) subject to Title IV of ERISA nor maintains any
employee welfare benefit plan (as defined in Section 3(l) of ERISA) that
primarily provide for health and welfare benefits to retired employees or other
former employees (other than as required by Section 601 of ERISA).

       

      6.18       Property
Matters.

       

      6.18.1     Borrowing
Base Properties.  Set forth on Schedule 6.4 attached
hereto is a list of each Borrowing Base Property with detail indicating the
owner of each Borrowing Base Property and the location of each Borrowing Base
Property.

       

      6.18.2     Flood
Hazard.  Except to the extent covered by flood insurance
required by Schedule
5.1.11 attached hereto, if any, no Borrowing Base Property is located in
an area designated by the Federal Emergency Management Agency as having special
flood or mudslide hazards.

       

      6.19       No
Default.  There is no
Default on the part of the Borrower or any of the other Loan Parties under this
Agreement or any of the other Loan Documents, and no event has occurred and is
continuing which could constitute a Default under any Loan
Document.

       

      6.20       Governmental
Authorizations; Other Consents.  Except
for filings of financial statements and relevant Security Documents in the
appropriate state and filing offices, to each Loan Party's knowledge, no
approval, consent, exemption, authorization, or other action by, or notice to,
or filing with, any Governmental Authority or any other Person that has not been
obtained or delivered is necessary or required in connection with the execution,
delivery or performance by, or enforcement against, any Loan Party of this
Agreement or any other Loan Document.

       

      
        
           

        

        
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      6.21       Qualification
as a REIT.  Parent qualified
as a REIT under the provisions of the Code, as applicable, for its fiscal year
ended 1994, and has remained qualified from such date through the date
hereof.  All appropriate federal income tax returns for the fiscal
years through 2008 (and extensions for the 2009 fiscal year) have been filed by
Parent with the IRS and no previously filed return has been examined and
reported on by the IRS.  Parent has not incurred any liability for
excise taxes pursuant to Section 4981 of the Code.  Parent is
organized in conformity with the requirements for qualification as a REIT
pursuant to Sections 856 through 860 of the Code, and Parent's proposed method
of operation consistent with Parent's business and the business activities
contemplated by this Agreement will enable it to meet the requirements for
qualification and taxation as a REIT under the Code.

       

      6.22       Compliance
with Laws.  Each Loan Party
is in compliance in all material respects with the requirements of all Laws
applicable to it or to its properties, except in such instances in which (a)
such requirement of Law is being contested in good faith by appropriate
proceedings diligently conducted or (b) the failure to comply therewith, either
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

       

      6.23       Significant
Subsidiary.  There
are no Significant Subsidiaries as of the date hereof.

       

      7.           AFFIRMATIVE
COVENANTS.

       

      So long
as any Lender shall have any Commitment hereunder, any Revolving Loan Advance,
Swing Line Advance or other Obligation hereunder shall remain unpaid or
unsatisfied, or any Letter of Credit shall remain outstanding, the Borrower
shall, and shall cause, with respect to Sections 7.3 through
7.14, inclusive
and Section
7.18, each Loan Party to:

       

      7.1         Notices.  Within
five (5) business days after obtaining actual knowledge thereof, notify the
Administrative Agent in writing (and the Administrative Agent shall thereafter
promptly notify the Lenders) of the following: (a) occurrence of any act, event
or condition which constitutes a Default or Event of Default under any of the
Loan Documents; and (b) any matter that has resulted or could reasonably be
expected to result in a Material Adverse Effect.  Any notification
delivered pursuant to clause (a) of this Section 7.1 shall
include a written statement of any remedial or curative actions, if applicable,
which the Borrower proposes to undertake and/or to cause any of other Loan
Parties to cure or remedy such Default or Event of Default.

       

      7.2         Financial
Statements; Reports; Officer's Certificates.  Furnish or cause
to be furnished to the Administrative Agent  (and the Administrative
Agent shall thereafter promptly furnish copies of same to the Lenders) from time
to time, the following financial statements, reports, certificates, and other
information, all in form and manner of presentation reasonably acceptable to the
Administrative Agent:

       

      7.2.1        Annual
Statements.  As soon as available and in any event no later
than the earlier of (a) to the extent applicable, five days following the date
Parent is required by the SEC to deliver its Form 10-K for each Fiscal Year and
(b) one hundred twenty (120) days after the close of each Fiscal Year, (i) the
Consolidated statements of financial condition of Parent, as at the end of such
Fiscal Year and the related Consolidated statement of income and retained
earnings and statement of cash flows for such Fiscal Year, in each case,
commencing with the Fiscal Year ending December 31, 2009, setting forth
comparative figures for the preceding Fiscal Year and certified by an
independent registered public accounting firm of recognized national standing
reasonably acceptable to the Administrative Agent, in an unqualified opinion
which report and opinion shall be prepared in accordance with generally accepted
auditing standards and shall not be subject to any "going concern" or like
qualification or exception or any qualification or exception as to the scope of
such audit and (ii) consolidating income statements for Mid-America and each
Borrower Subsidiary; such financial statements to include and to be supplemented
by such detail and supporting data and schedules as the Administrative Agent may
from time to time reasonably determine.

       

      
        
          
             

          

          
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      7.2.2        Periodic
Statements.  As soon as available and in any event no later
than the earlier of (a) to the extent applicable, five days following the date
Parent is required by the SEC to deliver its Form 10-Q for each fiscal quarter,
and (b) sixty (60) days after the close of each fiscal quarter (except for the
quarter ending on December 31 for which period such reports are not required),
(i) the Consolidated statement of financial condition of Parent, as at the end
of such quarterly period, (ii) the related Consolidated statement of income and
retained earnings (for the current quarter and on a year to date basis), and
(iii) the Consolidated statement of cash flows (on a year to date basis), in
each case commencing with the fiscal quarter ending March 31, 2010, setting
forth comparative figures for the related periods in the prior Fiscal Year,
internally prepared in accordance with GAAP, consistently applied, subject to
normal year-end audit adjustments, all in form and manner of presentation
reasonably acceptable to the Administrative Agent, such financial statements to
include and to be supplemented by such detail and supporting data and schedules
as the Administrative Agent may from time to time reasonably determine, together
with consolidating income statements for Mid-America and each Borrower
Subsidiary.

       

      7.2.3        Borrowing
Base Property Reports.  Quarterly and annually, upon delivery
of each of the financial statements required pursuant to Sections 7.2.1 and
7.2.2, above,
the following financial statements for each of the Borrowing Base Property
Owners internally prepared by the Borrower and certified by the Borrower to be
true, accurate and complete in all material respects: (a) to the extent not
included in the deliveries under Section 7.2.1 or
7.2.2, an
operating statement showing all Net Operating Income, including, without
limitation, the results of operation for the current quarter and on a
year-to-date basis for the period just ended and, annually, an operating
statement for the year just ended; and (b) in the form customarily used by the
Borrower, a detailed, current rent roll of the subject Borrowing Base Property,
containing such details as the Administrative Agent may reasonably
request.

       

      7.2.4        SEC
Reports.  Within five (5) days after being received, copies of
all correspondence from the SEC, other than routine non-substantive general
communications from the SEC.

       

      7.2.5        Compliance
Certificates.  Quarterly and annually, upon delivery of each of
the financial statements required pursuant to Sections 7.2.1 or
7.2.2 above,
(a) a Compliance Certificate in form of Exhibit B attached
hereto, together with an Officer's Certificate from the Borrower providing and
otherwise certifying (i) the compliance or non-compliance by the Borrower with
the Financial Covenants, including such supporting detail as is reasonably
deemed necessary by the Administrative Agent to verify the calculations
incorporated therein, (ii) a report containing, to the extent not included in
the deliveries under Sections 7.2.1, 7.2.2, or 7.2.3 for all
Individual Properties, a summary listing of all Net Operating Income, revenues,
rent roll, mortgage Debt, if any, and, in addition, for each Individual Property
acquired during the quarter just ended, the cost basis and the amount and terms
of any assumed Debt, (iii) a certification that the financial statements fairly
present in all material respects the Consolidated financial condition of Parent
and that no Default or Event of Default has occurred and is continuing, or if it
is, a statement as to the nature thereof; (iv) a listing of all filings by the
Borrower with the SEC, including, without limitation, full copies of Parent's
10-Q and 10-K filings; and (v) any material change in accounting policies
required by GAAP or financial reporting practices by any Loan Party or their
Subsidiaries.

       

      7.2.6        Data
Requested.  Within a reasonable period of time and from time to
time, such other financial data or information as the Administrative Agent may
reasonably request with respect to the Collateral Properties, the Borrower,
and/or the other Loan Parties including, but not limited to, rent rolls, aged
receivables, aged payables, leases, budgets, forecasts, reserves, cash flow
projections, deposit accounts, mortgage information and physical condition of
the Collateral Properties.

       

      7.2.7        Tax
Returns.  Upon the Administrative Agent's request, copies of
all federal and state tax returns of the Borrower and the other Loan
Parties.

       

      7.2.8        Entity
Notices.  Concurrently with the issuance thereof, copies of all
material written notices (excluding routine correspondence) given to the
partners, owners, stockholders, and/or members, respectively, of the
Borrower.

       

      7.2.9        Other
Defaults.  Within five (5) Business Days of receipt thereof,
copies of all written notices in any way relating to (a) the occurrence of any
monetary or material non-monetary default or monetary or material non-monetary
event of default under any Debt which is recourse to the Borrower, or any other
default or event of default under any Debt which is recourse to the Borrower,
the occurrence of which could reasonably be expected to have a Material Adverse
Effect, or (b) the occurrence of any monetary or material non-monetary default
or monetary or material non-monetary event of default under any Debt in excess
of $10,000,000 which is secured by an Individual Property, or any other default
or event of default under any Debt in excess of $10,000,000 which is secured by
an Individual Property, the occurrence of which could reasonably be expected to
have a Material Adverse Effect.

       

      
        
           

        

        
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      7.2.10      Notice of
Litigation.  Within ten (10) Business Days after an Authorized
Officer obtains knowledge thereof, written notice of any pending or, to the best
of such Person's knowledge, threatened action, suit or proceeding at law or in
equity or by or before any governmental instrumentality or other agency or
regulatory authority by any entity (private or governmental) relating in any way
to the Credit Facility, the transactions contemplated in the Loan Documents
(including, without limitation, with regard to all Distributions), or the
transactions contemplated in any documentation executed in connection therewith,
or the Borrower, any other Loan Party, any other Borrower Subsidiary or any
Borrowing Base Property, which is not fully covered (subject to deductibles) by
an insurance policy issued by a reputable and financially viable insurance
company, or, to the extent not so covered, which could reasonably be expected to
have a Material Adverse Effect or a material adverse effect on a Borrowing Base
Property.

       

      The
Borrower hereby acknowledges that the Administrative Agent may make available to
the Lenders, the Swing Line Lender and the L/C Issuer materials and/or
information provided by or on behalf of the Borrower hereunder by posting the
same on IntraLinks or another similar electronic system.

       

      7.3         Existence.  (a)
Preserve, renew and keep in full force and effect (i) the partnership, limited
liability company or corporate existence, as applicable, of each Loan Party and
(ii) the material rights, licenses, permits and franchises of each Loan Party,
(b) comply in all material respects with all Laws and other Laws applicable to
it and its assets, business and operations, the non-compliance with which could
reasonably be expected to have a Material Adverse Effect, (c) to the extent
applicable, at all times maintain, preserve and protect all material franchises
and trade names and all the remainder of its property used or useful in the
conduct of its business, and (d) keep and cause each Loan Party to keep, its
assets in good working order and repair, ordinary wear and tear and damage by
casualty or taking by condemnation excepted, and from time to time make, or
cause to be made, all reasonably necessary repairs, renewals, replacements,
betterments and improvements thereto.

       

      7.4         Payment
of Taxes.  Duly pay and discharge, before the same shall become
overdue, all taxes, assessments, impositions, and other governmental charges
payable by it or with respect to the Collateral Properties, to the extent that
same are not paid by the tenants under the respective Leases; provided, however, the failure
of any Loan Party to pay such taxes, assessments, impositions, or other
governmental charges shall not constitute a Default or Event of Default as long
as same are being contested in a manner which complies with the requirements of
Section
8.2.3.

       

      7.5         Insurance;
Casualty, Taking.

       

      7.5.1        General
Insurance Requirements.  Maintain or cause the appropriate
Person to maintain in full force and effect the following
insurance:  (a) the Collateral Properties shall be insured by insurers
of recognized financial responsibility against such losses and risks in
compliance with the requirements set forth in Schedule 5.1.11
attached hereto, and (b) all other assets of the Borrower and the Borrower
Subsidiaries shall be insured with such insurance as is reasonable and usual for
Persons conducting business operations similar to those of the Borrower and in
compliance with the terms of any secured financing with respect
thereto.

       

      7.5.2        Payment of
Premiums.  All insurance premiums shall be paid, at the
Borrower's option either annually in advance or in installments when due, and
the Administrative Agent shall be provided with evidence of such payment of
insurance premiums (or evidence of the relevant installment payment) prior to
each renewal or replacement of such coverages.

       

      
        
          
             

          

          
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      7.5.3        Notice of
Damage.  In the event of any damage or destruction to any
Collateral Property by reason of fire or other hazard or casualty in an amount
in excess of $100,000, the Borrower shall give immediate written notice thereof
to the Administrative Agent.  If there is any condemnation for public
use of any Collateral Property the Borrower shall give immediate written notice
thereof to the Administrative Agent (and the Administrative Agent shall
thereafter promptly notify the Lenders).  With respect to any such
condemnation, the Borrower shall make the Mandatory Principal Payment, if any is
required, set forth herein.  Further, the Borrower shall upon the
request of the Administrative Agent provide to the Administrative Agent a report
as to the status of any insurance adjustment, condemnation claim, or restoration
resulting from any casualty or taking.

       

      7.6         Inspection.  Permit
the Administrative Agent and the Lenders and its/their agents, representatives
and employees to inspect the Collateral Properties, and any and all other assets
of the Borrower or any of the Loan Parties, at reasonable hours upon reasonable
notice, subject to the rights of tenants therein.  The Borrower shall
be responsible for the reasonable costs incurred by the Administrative Agent of
one such inspection of each Borrowing Base Property (and all such inspections of
each Borrowing Base Property if an Event of Default is in
existence).

       

      7.7         Loan
Documents.  Observe, perform and satisfy all the terms,
provisions, covenants and conditions to be performed by it under, and to pay
when due all costs, fees and expenses, and other Obligations to the extent
required under, the Loan Documents.

       

      7.8         Further
Assurances.  Execute and deliver to the Administrative Agent
such documents, instruments, certificates, assignments and other writings, and
do such other acts, necessary or desirable in the reasonable judgment of the
Administrative Agent, to evidence, preserve and/or protect the Collateral at any
time securing or intended to secure the Obligations or for the better and more
effective carrying out of the intents and purposes of this Agreement and the
other Loan Documents.

       

      7.9         Books
and Records.  Maintain and keep in accordance with GAAP (or
such other accounting basis reasonably acceptable to the Administrative Agent),
proper and accurate books, records and accounts reflecting all of the financial
affairs of the Borrower and such other Loan Parties and the Borrower
Subsidiaries and all items of income and expense in connection with their
respective business and operations and in connection with any services,
equipment or furnishings provided in connection with the operation of the
business of the Borrower, the other Loan Parties, and the Borrower Subsidiaries,
whether such income or expense is realized thereby or by any other
Person.  The Administrative Agent shall have the right, not more than
once each year (unless an Event of Default shall have occurred and be continuing
in which case as often as the Administrative Agent shall reasonably determine),
during normal business hours and upon reasonable notice, to examine such books,
records and accounts at the office of the Person maintaining such books,
records, correspondence, and accounts and to make such copies or extracts
thereof as the Administrative Agent shall desire at the Administrative Agent's
cost and expense.  The Borrower shall give the Administrative Agent
fifteen (15) Business Days notice of any change in the location of its financial
records from the address specified at the beginning of this
Agreement.  The Administrative Agent may discuss the financial and
other affairs of the Borrower, the other Loan Parties, and Borrower Subsidiaries
with any of the Borrower's partners, owners, and any accountants hired by the
Borrower, it being agreed that the Administrative Agent and each of the Lenders
shall use commercially reasonable efforts to keep such information confidential
and not to divulge information obtained from such examination to others except
as may be required by Laws and in connection with administering the Credit
Facility, enforcing its rights and remedies under the Loan Documents and in the
conduct, operation and regulation of its banking and lending business (which may
include, without limitation, the transfer of the Loan or of participation
interests therein).  Any assignee or transferee of the Credit
Facility, co-lender, or any holder of a participation interest in the Credit
Facility shall deal with such information in the same manner and in connection
with any subsequent transfer of its interest in the Credit Facility or of
further participation interests therein.

       

      7.10       Business
and Operations.  (a) Continue to engage in the type of
businesses, acquisition, sale, financing, development and operation of
multifamily properties and usual and customary uses incidental to such
multifamily activities presently conducted by them as of the Closing Date,
respectively, and (b) be qualified to do business and in good standing under the
Laws of each jurisdiction, and otherwise comply with all Laws, as and to the
extent the same are required for the ownership, maintenance, management and
operation of the assets of such Person except where the failure to be so
qualified could not reasonably be expected to have a Material Adverse
Effect.

       

      7.11       Title.  (a)
Warrant and defend (i) the title to each item of Collateral owned by such Person
and every part thereof, subject only to Permitted Liens, (ii) the validity and
priority of the Liens and security interests held by the Administrative Agent
pursuant to the Loan Documents, in each case against the claims of all Persons
whomsoever, and (iii) the title to and in the Collateral Properties, and (b) the
Borrower and the other Loan Parties shall be responsible, jointly and severally,
to reimburse the Administrative Agent and the Lenders for any losses, costs,
damages or expenses (including reasonable attorneys' fees and court costs)
incurred by the Administrative Agent and/or any of the Lenders if an interest in
any item of Collateral, other than as permitted hereunder, is claimed by another
Person.

       

      
        
           

        

        
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      7.12       Estoppel.  Within
ten (10) Business Days after a request therefor from the Administrative Agent,
which request shall not be made by the Administrative Agent more than once
during each Fiscal Year, furnish to the Administrative Agent a statement, duly
acknowledged and certified, setting forth (a) the amount then owing by the
Borrower in respect of the Obligations, (b) the date through which interest on
the Credit Facility has been paid, (c) any offsets, counterclaims, credits or
defenses to the payment by any Loan Party to the Obligations of which the
Borrower has knowledge and (d) whether any written notice of Default from the
Administrative Agent to the Borrower or any of the other Loan Parties is then
outstanding and acknowledging that this Agreement and the other Loan Documents
are in full force and effect and unmodified, or if modified, giving the
particulars of such modification.

       

      7.13       ERISA.  As
soon as possible and, in any event, within ten (10) days after any Loan Party,
Borrower Subsidiary, or any ERISA Affiliate knows of the occurrence of any of
the following which could reasonably be expected to have a Material Adverse
Effect, deliver to the Administrative Agent a certificate of an executive
officer of the Borrower setting forth details as to such occurrence and the
action, if any, that the applicable Borrower or other Loan Party or Borrower
Subsidiary or such ERISA Affiliate is required or proposes to take, together
with any notices required or proposed to be given to or filed with or by such
Borrower, Loan Party, the ERISA Affiliate, the PBGC, a Plan participant or the
Plan administrator with respect thereto:  (a) that a Reportable Event
has occurred; (b) that any Plan has been deemed to be in "at risk status" (as
defined in Section 430(i)(4) of the Code without regard to 430(i)(4)(B) relating
to the transition rule); (c) that the minimum required contribution (as defined
in Section 430(a) of the Code) to a Plan has not been timely made; (d) that a
Plan has been or may be terminated, reorganized, partitioned or declared
insolvent under Title IV of ERISA; (e) that proceedings may be or have been
instituted to terminate or appoint a trustee to administer a Plan; (f) that a
proceeding has been instituted pursuant to Section 515 of ERISA to collect a
delinquent contribution to a Plan; (g) that the Borrower, Loan Party, Borrower
Subsidiary, or ERISA Affiliate will or may incur any liability (including any
indirect, contingent, or secondary liability) to or on account of the
termination of or withdrawal from a Plan under Section 4062, 4063, 4064, 4069,
4201, 4204 or 4212 of ERISA or with respect to a Plan under Section 401(a)(29),
4971, 4975 or 4980 of the Code or Section 409 or 502(i) or 502(l) of ERISA; or
(h) or that the Borrower, the Loan Party or Borrower Subsidiary may incur any
material liability pursuant to any employee welfare benefit plan (as defined in
Section 3(l) of ERISA) that provides benefits to retired employees or other
former employees (other than as required by Section 601 of ERISA) or any
employee pension benefit plan (as defined in Section 3(2) of
ERISA).  Upon the request of the Administrative Agent, the Borrower
shall (and shall cause the other Loan Parties, ERISA Affiliates and Borrower
Subsidiaries to) deliver to the Administrative Agent a complete copy of the
annual report (Form 5500) of each Plan required to be filed with the Department
of Labor.  In addition to any certificates or notices delivered to the
Administrative Agent pursuant to the first sentence hereof, copies of any
material notices received by the Borrower, a Loan Party, a Borrower Subsidiary,
or any ERISA Affiliate with respect to any Plan shall be delivered to the
Administrative Agent no later than ten (10) days after the date such report has
been filed with the Internal Revenue Service, the Department of Labor, or the
PBGC or such notice has been received by the Borrower, Loan Party or Borrower
Subsidiary or ERISA Affiliate, as applicable.

       

      7.14       Compliance
with Laws.  Comply in all material respects with the
requirements of all Laws applicable to it or to its business or property, except
in such instances in which (a) such requirement of Law is being contested in
good faith by appropriate proceedings diligently conducted or (b) the failure to
comply therewith could not reasonably be expected to have a Material Adverse
Effect.

       

      7.15       Costs
and Expenses.  Pay all costs and expenses as required by Section
15.7.1.

       

      
        
          
             

          

          
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      7.16       Appraisals. 

       

      7.16.1      Appraisal.  The Administrative
Agent shall have the right at its option to the extent that (a) the existing
applicable appraisal is more than twelve (12) months old or (b) in the
Administrative Agent's reasonable discretion, the value of any Borrowing Base
Property has been materially impacted, to order an Appraisal of one or more of
the Borrowing Base Properties prepared at the Administrative Agent's direction
by an appraiser selected by the Administrative Agent, after notice to the
Borrower.  An appraiser selected by the Administrative Agent shall be
an MAI member with an appropriate level of professional experience appraising
commercial properties in the respective area(s) of the Borrowing Base Properties
and otherwise qualified pursuant to provisions of applicable Laws under and
pursuant to which the Administrative Agent operates.  At any time, the
Borrower shall have the right at its option and at its own expense to order an
Appraisal of one or more Borrowing Base Properties.

       

      7.16.2      Costs of
Appraisal.  The Borrower shall pay for the costs of each
Appraisal and each updated Appraisal requested by the Administrative Agent only
(a) after the occurrence of an Event of Default, or (b) in connection with an
annual Appraisal to be ordered by the Administrative Agent for each Borrowing
Base Property, or (c) in connection with any request by the Borrower to extend
the Initial Maturity Date to the Extended Maturity Date, or (d) if, in the
Administrative Agent's reasonable discretion, the value of any Borrowing Base
Property has been materially impacted.

       

      7.17       Indemnification.  At
all times, both before and after repayment of the Loan, at its sole cost and
expense defend, indemnify, exonerate and save harmless the Administrative Agent
and each of the Lenders and all those claiming by, through or under the
Administrative Agent and each of the Lenders as required by Section
15.7.2.

       

      7.18       Payment
of Obligations.  Pay and discharge as the same shall become due
and payable, all lawful claims which, if unpaid, would by Law become a Lien upon
its property (other than Permitted Liens).

       

      7.19       Leverage
Ratio.  Maintain a Leverage Ratio as determined as of each
Calculation Date of less than sixty percent (60%).  The Leverage Ratio
covenant shall be tested by the Administrative Agent as of each Calculation
Date, such calculation and results to be verified by the Administrative
Agent.

       

      7.20       Fixed
Charge Ratio.  Maintain a Fixed Charge Ratio as determined as
of each Calculation Date of not less than 1.50 to 1.0.  The Fixed
Charge Ratio covenant shall be tested by the Administrative Agent as of each
Calculation Date with results based upon the results for the most recent two (2)
Calculation Periods, annualized, such calculation and results to be verified by
the Administrative Agent.

       

      7.21       Debt
Service Coverage Ratio.  Maintain a Debt Service Coverage Ratio
as determined as of each Calculation Date of not less than 2.0 to
1.0.  The Debt Service Coverage Ratio covenant shall be tested by the
Administrative Agent as of each Calculation Date with results based upon the
results for the most recent two (2) Calculation Periods, annualized, such
calculation and results to be verified by the Administrative Agent.

       

      7.22       Adjusted
Net Operating Income Ratio. Maintain an Adjusted Net Operating Income
Ratio for all Borrowing Base Properties, as determined as of each Calculation
Date of not less than 1.5 to 1.0.  The Adjusted Net Operating Income
Ratio covenant shall be tested by the Administrative Agent as of each
Calculation Date with results based upon the results for the most recent
Calculation Period, annualized, such calculation and results to be verified by
the Administrative Agent.

       

      7.23       Total
Development and Joint Venture Investment Ratio. Not permit the Total
Development and Joint Venture Investment Ratio to exceed seven and one half
percent (7.50%).  The Total Development and Joint Venture Investment
Ratio covenant shall be tested by the Administrative Agent as of each
Calculation Date, such calculation and results to be verified by the
Administrative Agent.

       

      7.24       Dividend
Payout Ratio. Not permit the Dividend Payout Ratio to exceed ninety
percent (90%). The Dividend Payout Ratio covenant shall be tested by the
Administrative Agent as of each Calculation Date, such calculation and results
to be verified by the Administrative Agent.

       

      
        
          
             

          

          
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      7.25       Net
Worth.  Maintain a Net Worth as determined as of each
Calculation Date equal to or greater than the aggregate of (a) $850,000,000 plus
(b) fifty percent (50%) of the cumulative net cash proceeds received from and
the value of assets acquired (net of (i) underwriters' discounts, commissions
and other reasonable out-of-pocket expenses of issuance actually paid to any
Person (other than a Loan Party or an Affiliate of any Loan Party) and (ii) Debt
incurred or assumed in connection therewith) through the issuance of Capital
Stock by Parent after the date hereof.  The Net Worth covenant shall
be tested by the Administrative Agent as of each Calculation Date, such
calculation and results to be verified by the Administrative Agent.

       

      7.26       Borrowing
Base Property Covenants.

       

      7.26.1      Apartment
Community.  Maintain each Borrowing Base Property at all times
as an apartment community (for which all Certificates of Occupancy have been
issued) located in the United States owned by a Borrowing Base Property
Owner.

       

      7.26.2      Business
Strategy.  Maintain ownership of each Borrowing Base Property
at all times consistent with the Borrower's business strategy, and each
Borrowing Base Property shall at all times be of an asset quality consistent
with the quality of Borrowing Base Properties owned by the Borrowing Base
Property Owners as of the date hereof.

       

      7.27       Replacement
Documentation.  Upon receipt of an affidavit of an officer of
the Administrative Agent as to the loss, theft, destruction or mutilation of any
Note or any other loan document which is not of public record, and, in the case
of any such loss, theft, destruction or mutilation, upon surrender and
cancellation of such Note or other security document, the Borrower will issue,
in lieu thereof, a replacement Note or other loan document in the same principal
amount thereof and otherwise of like tenor.

       

      7.28       Maintenance
of REIT Status.  Parent shall engage in such business
activities, and shall refrain from engaging in such activities, so as to
continue to meet the requirements for qualification and taxation as a REIT under
the Code.

       

      7.29       The
Lenders' Consultants.

       

      7.29.1      Right to
Employ.  The Borrower agrees
that the Administrative Agent shall have the right to employ on its behalf and
on behalf of the Lenders, its own personnel, or one or more engineers,
architects, environmental advisors, scientists, accountants, and attorneys to
act as an advisor to the Administrative Agent and the Lenders in connection with
the Credit Facility (each of which shall be selected by the Administrative Agent
with reasonable care and shall be a "Lenders'
Consultant").

       

      7.29.2      Functions.  The
functions of a Lenders' Consultant shall include, without limitation: (i)
inspection and physical review of any Collateral Property; (ii) review and
analysis of environmental matters; (iii) review and analysis of financial and
legal matters; and (iv) providing usual inspection and review services in the
event of the use of Net Proceeds for any Repair Work.

       

      7.29.3      Payment.  The
reasonable costs and fees of the Lenders' Consultants (exclusive of salary and
other similar benefits) shall be paid by the Loan Parties upon billing therefor
and, if not so paid within thirty (30) days, may be paid directly by the Lenders
through a Revolving Loan Advance.

       

      7.29.4      Access.  The
Loan Parties shall provide the Lenders' Consultants with reasonable access to
all Collateral Properties.

       

      7.29.5      No
Liability.  Neither the Administrative Agent nor any Lender
shall have liability to the Borrower, any Loan Party, or third party on account
of: (i) services performed by the Lenders' Consultant; or (ii) any failure or
neglect by the Lenders' Consultant to properly perform services. The Borrower
shall have no rights under or relating to any agreement, report, or similar
document prepared by the Lenders' Consultant for the Administrative Agent or the
Lenders. No Lenders' Consultant shall have liability to the Borrower, any Loan
Party, or third party on account of: (i) services performed by such Lenders'
Consultant; or (ii) any failure or neglect by such Lenders' Consultant to
properly perform services, except for its gross negligence or willful
misconduct.

       

      
        
          
             

          

          
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      7.30       Bank
Accounts.  Maintain with Regions or First Tennessee Bank, N.A.
(as long as it is a Lender hereunder) throughout the term of this Agreement, the
Borrower's primary depository relationship.

       

      7.31       Significant
Subsidiaries to be a Guarantor.  Within thirty (30)
days of any Person becoming a Significant Subsidiary after the date hereof, the
Borrower shall deliver to the Administrative Agent each of the following items,
each in form and substance satisfactory to the Administrative Agent: (i) a
Guaranty executed by such Significant Subsidiary and (ii) such other documents
(including, without limitation, organizational documents and certificates,
opinion letters and lien searches) as the Administrative Agent may reasonably
request. The Administrative Agent shall send to each Lender copies of each of
the foregoing items once the Administrative Agent has received all such items
with respect to a Significant Subsidiary.

       

      8.           NEGATIVE
COVENANTS.

       

      So long
as any Lender shall have any Commitment hereunder, any Revolving Loan Advance,
Swing Line Advance or other Obligation hereunder shall remain unpaid or
unsatisfied, or any Letter of Credit shall remain outstanding, the Borrower
shall not, nor shall it permit any other Loan Party to directly or
indirectly:

       

      8.1         No
Changes to the Borrower and other Loan Parties. Without the prior written
consent of the Administrative Agent, not to be unreasonably withheld or delayed
after not less than thirty (30) days' prior written notice (with reasonable
particularity of the facts and circumstances attendant thereto): (a) change its
jurisdiction of organization, (b) change its organizational structure or type,
(c) change its legal name, or (d) change the organizational number (if any)
assigned by its jurisdiction of formation or its federal employment
identification number (if any).

       

      8.2         Restrictions
on Liens.  Create, incur, assume or suffer to exist any Lien
upon or with respect to any Collateral (real or personal, tangible or
intangible, including, without limitation, the Borrowing Base Properties),
whether now owned or hereafter acquired, or sell any such Collateral subject to
an understanding or agreement, contingent or otherwise, to repurchase such
Collateral (including sales of accounts receivable with recourse) or assign any
right to receive income or permit the filing of any financing statement under
the UCC or any other similar notice of Lien under any similar recording or
notice statute, or grant rights with respect to, or otherwise encumber or create
a security interest in, such Collateral or any portion thereof or any other
revenues therefrom or the proceeds payable upon the sale, transfer or other
disposition of such property or asset or any portion thereof, or permit or
suffer any such action to be taken, except the following (singly and
collectively, "Permitted
Liens"):

       

      8.2.1        Administrative
Agent's Liens.  Liens created by the Loan
Documents;

       

      8.2.2        Permitted
Debt.  Liens to secure any Debt that is not Prohibited Debt;
provided, however, that (x) the
Borrower will be in compliance with the Financial Covenants considering the
consequences of the granting of any such Lien and (y) no such Lien shall be
secured by any Borrowing Base Property or the ownership interest in any
Borrowing Base Property Owner;

       

      8.2.3        Tax
Liens.  Liens for taxes, assessments or other governmental
charges not yet delinquent or which are being diligently contested in good faith
and by appropriate proceedings, if (a) to the extent such contest concerns a
Borrowing Base Property, reasonable reserves in an amount not less than the tax,
assessment or governmental charge being so contested shall have been established
in a manner reasonably satisfactory to the Administrative Agent or deposited in
cash (or cash equivalents) with the Administrative Agent to be held during the
pendency of such contest, or such contested amount shall have been duly bonded
in accordance with applicable Law, (b) no imminent  risk of sale,
forfeiture or loss of any interest in any Borrowing Base Property or the
Collateral or any part thereof arises during the pendency of such contest and
(c) such contest could not reasonably be expected to have a Material Adverse
Effect;

       

      
        
          
             

          

          
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      8.2.4        Judgment
Liens.  Liens in respect of property or assets imposed by Law,
which do not secure Debt, such as judgment Liens (provided such judgment Liens
do not cause the occurrence of an Event of Default under Section 10.1),
carriers', warehousemen's, materialmen's and mechanics' liens and other similar
Liens arising in the ordinary course of business, (a) which, except for such
judgment Liens, do not in the aggregate materially detract from the value of any
property or assets or  have, and could not reasonably be expected to
have, a Material Adverse Effect, (b) which, except for such judgment Liens, are
being contested in good faith by appropriate proceedings, which proceedings have
the effect of preventing the forfeiture or sale of the property or assets
subject to any such Lien, (c) which as to any Borrowing Base Property do not
have a lien priority prior to the Lien in favor of the Administrative Agent, for
the benefit of the Lenders, with respect to the Obligations, including, without
limitation, any future Revolving Loan Advances, and (d) which do not exceed
$100,000;

       

      8.2.5        Personal
Property Liens.  Liens relating to personal property financing
leases entered into in the ordinary course of business with respect to
equipment, fixtures, furniture, furnishings and similar assets; and

       

      8.2.6        L/C Issuer
Liens.  Liens, if any, in favor of the L/C Issuer to cash
collateralize or otherwise secure the obligations of a Defaulting Lender or an
Impacted Lender to fund risk participations hereunder.

       

      8.2.7        Easements,
Etc.  Liens in connection
with easements, zoning restrictions, rights-of-way and other similar
encumbrances affecting real property which, in the aggregate, do not impose
material financial obligations on the Borrower or any Loan Party, and which do
not, in the aggregate, materially detract from the value of the property subject
thereto or materially interfere with the ordinary conduct of the business of
such property or the Loan Party that owns such property.

       

      8.2.8        Other
Encumbrances.  Encumbrances listed
as exceptions to the Lenders' title insurance policies for the Borrowing Base
Properties and any such title and survey exceptions as the Administrative Agent
and/or Required Lenders have approved or may approve in writing in their sole
discretion.

       

      8.3         Consolidations,
Mergers, Sales of Assets, Issuance and Sale of Equity.  (a)
Dissolve, terminate, liquidate, consolidate with or merge with or into any other
Person, (b) issue, sell, lease, transfer or assign to any Persons or otherwise
dispose of (whether in one transaction or a series of transactions) any material
portion of its assets (whether now owned or hereafter acquired), including,
without limitation, any securities, membership or partnership interests, or
other interests of any kind in any other Loan Party or Borrower Subsidiary,
directly or indirectly (whether by the issuance of rights of, options or
warrants for, or securities convertible into, any such security, membership or
partnership interests or other interests of any kind), (c) permit another Person
to merge with or into it, (d) acquire all or substantially all the capital
stock, membership or partnership interests or assets of any other Person, or (e)
take any action which could have the effect, directly or indirectly, of diluting
the economic interest of any Loan Party in any other Loan Party or Borrower
Subsidiary; except the following:

       

      8.3.1        Transfers.  Transfers
pursuant to the Security Documents and other agreements in favor of the
Administrative Agent for the ratable benefit of the Lenders;

       

      8.3.2        Non-Loan
Parties.  Any such dissolution, liquidation, or termination
which does not involve a Loan Party;

       

      8.3.3        Loan
Parties.  With the prior written consent of the Administrative
Agent and the Required Lenders, such consent not to be unreasonably withheld or
delayed, any consolidation, merger, or issuance so long as the Borrower is the
surviving entity; provided, however, that (a) the
Borrower will be in compliance with the Financial Covenants considering the
consequences of such event, (b) no such event shall cause a Change of Control,
and (c) each Borrowing Base Property Owner will continue to be the Borrower or a
Wholly-Owned Subsidiary of the Borrower as of the date hereof;

       

      
        
          
             

          

          
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      8.3.4        Borrowing
Base Properties.  Sales of any Borrowing Base Property,
provided the Release Conditions are satisfied with respect thereto;

       

      8.3.5        Leases.
Leases of all or any portion of any Borrowing Base Property in the ordinary
course of the apartment leasing business;

       

      8.3.6        Property
Transfers.  Sales, transfers or assignments of other assets of
the Borrower, any Loan Party or any Borrower Subsidiary which do or do not
constitute Collateral; provided, however, that (a) the
Borrower will be in compliance with the Financial Covenants considering the
consequences of any such sale; and (b) the aggregate amount of any such sales,
transfers, or assignments of such other assets shall not exceed thirty percent
(30%) of the Total Market Value of Assets, as verified by the Administrative
Agent, unless prior written approval is obtained from the Required Lenders (not
to be unreasonably withheld, conditioned or delayed);

       

      8.3.7        Ordinary
Course.  Sales or dispositions in the ordinary course of
business of worn, obsolete or damaged items of personal property or fixtures
which are suitably replaced;

       

      8.3.8        With
Consent.  Transactions, whether outright or as security, for
which the Administrative Agent's, the Required Lenders' or the Lenders', as
applicable, prior written consent has been obtained to the extent such approval
is required under this Agreement;

       

      8.3.9        Equity
Issuances.  The issuance or sale of equity interests in the
Borrower;

       

      8.3.10      Merger of
Loan Parties.  Mergers of and between Loan Parties; provided, however, (a) the
Borrower shall at all times remain surviving entities, (b) the Administrative
Agent receives ten (10) Business Days prior written notice of the proposed
merger, and (c) the Borrower agrees to take all such action and execute all such
documents as the Administrative Agent may reasonably require in order to
maintain the Administrative Agent's priority and perfection in the Collateral;
or

       

      8.3.11      Permitted
Transfers.  The issuance or
transfer of shares of common stock, limited partnership interests or other
beneficial or ownership interests or other forms of securities in Borrower or a
Related Party, including all varieties of convertible debt, equity and other
similar securities; provided, however, that no change in the ownership of the
Controlling interest in Borrower or a Related Party occurs as a result of such
issuance or transfer, either upon such transfer or upon the subsequent
conversion to equity of such convertible debt or other securities.

       

      8.4         Restrictions
on Debt.  Permit any Wholly-Owned Subsidiary that is the owner
of a Borrowing Base Property to incur, create, or permit to exist any
indebtedness to any Person other than the Lenders with the exception of purchase
money security interests and contractual obligation, incurred in the ordinary
course of the apartment leasing business ("Prohibited
Debt").

       

      8.5         Other
Business.  Enter into any line of business or make any material
change in the nature of its business, purposes or operations, or undertake or
participate in activities other than the continuance of its present business
except as otherwise specifically permitted by this Agreement or the other Loan
Documents.

       

      8.6         Change
of Control.  Permit or otherwise suffer to occur any Change of
Control.

       

      8.7         Forgiveness
of Debt.  Voluntarily cancel or otherwise forgive or release
any Debt owed to it by any Person, except for adequate consideration and except
for settlement of lease obligations of tenants in the Borrower's reasonable
business judgment.

       

      8.8         Affiliate
Transactions.  Enter into, or be a party to, any transaction
with any Person which is an Affiliate of any Loan Party, except transactions (a)
involving the offering or sale of a Person's equity interests on an arm's length
basis, or (b) entered into in the ordinary course of business and on terms which
are no less favorable to such Loan Party or Borrower Subsidiary than would be
obtained in a comparable arm's length transaction with an unrelated third
party.

       

      
        
          
             

          

          
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      8.9         ERISA.  Establish
or be obligated to contribute to any Plan other than 401(k) and ESOP
plans.

       

      8.10       Bankruptcy
Filings.  With respect to any of the Loan Parties, file a
petition under any Debtor Relief Laws for the liquidation of all or a major
portion of its assets or property.

       

      8.11       Investment
Company.  Become an "investment company" or a company
"controlled" by an "investment company," within the meaning of the Investment
Company Act of 1940, as amended.

       

      8.12       Swap
Contracts.  Not enter into any Swap Contract, unless (i) such
Swap Contract was entered into by such Person in the ordinary course of business
for the purpose of directly mitigating risks associated with liabilities,
commitments, investments, assets, or property held or reasonably anticipated by
such Person, or changes in the value of securities issued by such Person, and
not for purposes of speculation and (ii) such Swap Contract does not contain any
provision exonerating the non-defaulting party from its obligation to make
payments on outstanding transactions to the defaulting party other than normal
setoff or netting rights.  Notwithstanding the foregoing, Borrower has
the continuing right to purchase Swap Contracts as required by any credit
facilities of the Borrower existing as of the date hereof, as such credit
facilities may be amended from time to time.

       

      8.13       Use
of Proceeds.  Permit the proceeds of the Credit Facility, or
any other accommodation at any time made hereunder, to be used for any purpose
which entails a violation of, or is inconsistent with, Regulation T, U or X of
the Board, or for any purpose other than to (a) repay certain existing
indebtedness of the Borrower, (b) provide working capital to the Borrower and
the Borrower Subsidiaries, (c) provide funds for acquisitions, development,
capital expenditures, and refinancings of real estate properties by the Borrower
and the Borrower Subsidiaries, (d) pay certain closing and transactional costs
as approved by the Administrative Agent and (e) for other lawful REIT
purposes.

       

      8.14       Distributions.  Authorize,
declare, or pay any Distributions on behalf of the Borrower, except for
Permitted Distributions.

       

      8.15       Restrictions
on Investments.  Make or permit to exist or to remain
outstanding any Investment except which are in:

       

      (a)           marketable
direct or guaranteed general obligations of the United States of America which
mature within one year from the date of purchase;

       

      (b)           bank
deposits, certificates of deposit and banker's acceptances, or other obligations
in or of the Lenders or banks located within and chartered by the United States
of America or a state and having assets of over $500,000,000;

       

      (c)           the
Borrower's Subsidiaries (both Subsidiaries as of the date hereof and any other
Person that becomes a Borrower Subsidiary), subject in all instances to the
terms of this Agreement; and

       

      (d)           Permitted
Investments.

       

      8.16       Negative
Pledges, etc.  Enter into any agreement subsequent to the
Closing Date (other than a Loan Document) which (a) prohibits the creation or
assumption of any Lien upon any of the Collateral, including, without
limitation, any hereafter acquired property that relates to the Borrowing Base
Properties, (b) specifically prohibits the amendment or other modification of
this Agreement or any other Loan Document, or (c) could reasonably be expected
to have a Material Adverse Effect.

       

      
        
          
             

          

          
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      8.17       Other
Covenants.  The Borrower hereby represents and warrants to the
Administrative Agent and the Lenders that no Collateral is in the possession of
any third party bailee (such as at a warehouse).  In the event that
the Borrower and/or any of the other Loan Parties, after the date hereof,
intends to store or otherwise deliver any Collateral or other personal property
in which the Administrative Agent has been granted a security interest to such a
bailee, then the Borrower shall receive the prior written consent of the
Administrative Agent not to be unreasonably withheld or delayed and such bailee
must acknowledge in writing that the bailee is holding such Collateral or such
other personal property for the benefit of the Administrative Agent and the
Lenders.

       

      8.18       Accounts
Receivable from Related Persons. Permit or allow the aggregate of
accounts receivable and other loans and indebtedness owed by Related Parties to
the Borrower to exceed the sum of One Million Dollars ($1,000,000.00) in the
aggregate as to the Borrower.

       

      8.19       Loans
to Officers and Employees. Allow Permitted Loans to exceed in the
aggregate the sum of Two Million and 00/100 Dollars ($2,000,000); or permit or
allow other loans to directors, officers, partners, shareholders and employees
of Borrower to exceed, in the aggregate, the sum of One Million and 00/100
Dollars ($1,000,000).

       

      9.           SPECIAL
PROVISIONS.

       

      9.1         Legal
Requirements.  The Borrower, any Borrower Subsidiary or any
Loan Party may contest in good faith any claim, demand, levy or assessment under
any Laws by any Person or entity if: (i) the contest is based upon a material
question of Law or fact raised by the Borrower in good faith; (ii) such Person
properly commences and thereafter diligently pursues the contest; (iii) the
contest will not materially impair the ability to ultimately comply with the
contested Law should the contest not be successful; (iv) if the contest concerns
a Borrowing Base Property or a Borrowing Base Property Owner, reasonable
reserves in an amount necessary to undertake and pay for such contest and any
corrective or remedial action then or thereafter reasonably likely to be
necessary shall have been established in a manner reasonably satisfactory to the
Administrative Agent or deposited in cash (or cash equivalents) with the
Administrative Agent to be held during the pendency of such contest, or such
contested amount shall have been duly bonded in accordance with applicable Law;
(vi) no Event of Default exists; (vii) if the contest relates to a Hazardous
Material Law, any conditions set forth in the Environmental Indemnity Agreement
relating to such contests shall be satisfied; (viii) no imminent risk of sale,
forfeiture or loss of any interest in any Borrowing Base Property or the
Collateral or any part thereof arises during the pendency of such contest; and
(ix) such contest could not reasonably be expected to have a Material Adverse
Effect.

       

      9.2         Limited
Recourse Provisions.

       

      9.2.1        Borrower
Fully Liable.
Borrower shall be fully liable for the Credit Facility and the
Obligations of the Borrower to the Administrative Agent and each of the
Lenders.

       

      9.2.2        Certain
Non-Recourse.  This Agreement and all Loan Documents have been
executed by the undersigned in its capacity as an officer of Parent, as general
partner of Mid-America on behalf of Mid-America or the Loan Parties, and not
individually, and none of the trustees, officers, directors, members, limited
partners, or shareholders of the Borrower or any Loan Party shall be bound or
have any personal liability hereunder or thereunder except under any Guaranty or
other Loan Document signed by such Person, other than a signature in a
representative capacity.  Under no circumstances shall any party be
entitled to seek recourse or commence any action against any of the trustees,
officers, directors, members, limited partners, or shareholders of the Borrower
or any such Person's personal assets for the performance or payment of any
obligation hereunder.  In all other Loan Documents, all parties shall
not seek recourse or commence any action against any of the trustees, officers,
directors, members, limited partners, or shareholders of Borrower or any of such
Person's personal assets for the performance or payment of any obligation
hereunder or thereunder, except under any Guaranty or other Loan Document signed
by such Person, other than a signature in a representative
capacity.

       

      9.2.3        Additional
Matters.  Nothing contained in the foregoing non-recourse
provisions or elsewhere shall: (a) limit the right of the Administrative Agent
or any of the Lenders to obtain injunctive relief or to pursue equitable
remedies under any of the Loan Documents, excluding only any injunctive relief
ordering payment of obligations by any Person or entity for which personal
liability does not otherwise exist; or (b) limit the liability of any attorney,
law firm, accountant or other professional who or which renders or provides any
written opinion or certificate to the Administrative Agent or any of the Lenders
in connection with the Credit Facility even though such Person or entity may be
a limited partner of the Borrower.

       

      
        
          
             

          

          
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      9.3         Payment
of Obligations.  Upon the return to the Administrative Agent,
or the expiration, of all of the Letters of Credit and the payment in full of
the Obligations, in immediately available funds, including, without limitation,
all unreimbursed costs and expenses of the Administrative Agent and of each
Lender for which the Borrower is responsible, and the termination of this
Agreement, the Administrative Agent shall release any security and other
collateral interests as provided for herein and under the other Loan Documents
and shall execute and deliver such documents and termination statements as the
Borrower or any other Loan Party reasonably requests to evidence such
termination and release.  However, such release by the Administrative
Agent shall not be deemed to terminate or release any Person from any obligation
or liability under the Loan Documents which specifically by its terms survives
the payment in full of the Obligations.

       

      10.         EVENTS OF
DEFAULT.

       

      The
following provisions deal with Defaults, Events of Default, notice, grace and
cure periods, and certain rights of the Administrative Agent and the Lenders
following an Event of Default.

       

      10.1       Default
and Events of Default.  The term "Default" as used
herein or in any of the other Loan Documents shall mean any fact or circumstance
which constitutes, or upon the lapse of time, or giving of notice, or both,
could constitute, an Event of Default. The occurrence of any of the following
events, continuing uncured beyond any applicable grace, notice or cure period,
respectively, shall constitute an event of default ("Event of
Default").  Upon the occurrence of any Event of Default
described in Section
10.1.8, any and all Obligations shall become due and payable without any
further act on the part of the Administrative Agent. Upon the occurrence of any
other Event of Default, the Administrative Agent may, and upon the request of
the Required Lenders shall, declare that any and all Obligations shall become
immediately due and payable.

       

      10.1.1      Failure to
Pay the Credit Facility.  The failure by the Borrower to pay
when due any principal of, interest on, or fees in respect of, the Credit
Facility, and the specific grace period, if any, allowed for the default in
question in Section
10.2 or elsewhere in this Agreement shall have expired without such
default having been cured.

       

      10.1.2      Failure to
Make Other Payments.  The failure by the Borrower to pay when
due (or upon demand, if payable on demand) any payment Obligation other than any
payment Obligation on account of the principal of, or interest on, or fees in
respect of, the Credit Facility, and the specific grace period, if any, allowed
for the default in question in Section 10.2 or
elsewhere in this Agreement shall have expired without such default having been
cured.

       

      10.1.3      Security
Documents and Other Loan Documents.  Any other default in the
performance of any term or provision of the Security Documents or of any of the
other Loan Documents, or a breach, or other failure to satisfy, any other term,
provision, condition or warranty under the Security Documents or any other Loan
Document, and the specific grace period, if any, allowed for the default in
question in Section
10.2 or elsewhere in this Agreement shall have expired without such
default having been cured.

       

      
        
          
             

          

          
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      10.1.4      Default
under Other Agreements.  (i) The Borrower or any other Loan
Party (A) fails to make any payment when due (whether by scheduled maturity,
required prepayment, acceleration, demand, or otherwise) in respect of any Debt
or Guarantee (other than Debt hereunder) having an aggregate principal amount
(including undrawn committed or available amounts and including amounts owing to
all creditors under any combined or syndicated credit arrangement) of more than
$2,000,000; provided, however, if the amount in default is less than $5,000,000
and no other default exists under any other agreement described in this
subsection, and the Borrower is diligently and in good faith contesting any
default under this paragraph to the reasonable satisfaction of the
Administrative Agent, it shall not be a Default hereunder, or (B) fails to
observe or perform in any material respect any other agreement or condition
relating to any such Debt or Guarantee described in Section 10.1.4(i)(A)
above or contained in any instrument or agreement evidencing, securing or
relating thereto, or any other event occurs, the effect of which default or
other event is to cause, or to permit the holder or holders of such Debt
described in Section
10.1.4(i)(A) above or the beneficiary or beneficiaries of such Guarantee
(or a trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice or passage of time, or both,
if required, such Debt to be demanded or to become due or to be repurchased,
prepaid, defeased or redeemed (automatically or otherwise), or an offer to
repurchase, prepay, defease or redeem such Debt to be made, prior to its stated
maturity, or such Guarantee to become payable or cash collateral in respect
thereof to be demanded; or (ii) there occurs under any Swap Contract an Early
Termination Date (as defined in such Swap Contract) resulting from (A) any event
of default under such Swap Contract as to which the Borrower or any Loan Party
is the Defaulting Party (as defined in such Swap Contract) or (B) any
Termination Event (as so defined) under such Swap Contract as to which the
Borrower or any other Loan Party is an Affected Party (as so defined) and, in
either event, the occurrence of such event could reasonably be expected to have
a Material Adverse Effect.

       

      10.1.5      Representations
and Warranties.  If any representation or warranty made by the
Borrower or by any of the other Loan Parties in the Loan Documents was untrue or
misleading in any material respect as of the date made or deemed made,
including, without limitation, all representations and warranties made in Article 6
herein.

       

      10.1.6      Affirmative
Covenants.  The breach of any covenant contained in Article 7 herein,
including, without limitation, the Financial Covenants.

       

      10.1.7      Negative
Covenants.  The breach of any covenant contained in Article 8
herein.

       

      10.1.8      Financial
Status and Insolvency.  Any Loan Party shall: (i) admit in
writing its inability to pay its debts generally as they become due; (ii) file a
petition in bankruptcy or a petition to take advantage of any insolvency act;
(iii) make an assignment for the benefit of creditors; (iv) consent to, or
acquiesce in, the appointment of a receiver, liquidator or trustee of itself or
of the whole or any substantial part of its properties or assets; (v) file a
petition or answer seeking reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under the Federal
Bankruptcy laws or any other applicable Law; (vi) have a court of competent
jurisdiction enter an order, judgment or decree appointing a receiver,
liquidator or trustee of a Loan Party, or of the whole or any substantial part
of the property or assets of a Loan Party, and such order, judgment or decree
shall remain unvacated or not set aside or unstayed for sixty (60) days; (vii)
have a petition filed against it seeking reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under the
Federal Bankruptcy laws or any other applicable Law and such petition shall
remain undismissed for sixty (60) days; (viii) have, under the provisions of any
other Law for the relief or aid of debtors, any court of competent jurisdiction
assume custody or control of a Loan Party or of the whole or any substantial
part of its property or assets and such custody or control shall remain
unterminated or unstayed for sixty (60) days; or (ix) have an attachment or
execution levied against any material portion of the property of a Loan Party or
against any portion of the Collateral which is not discharged or dissolved by a
bond within sixty (60) days.

       

      10.1.9      Loan
Documents.  Any Loan Document, at any time after its execution
and delivery and for any reason other than as expressly permitted hereunder or
thereunder, ceases to be in full force and effect; or any Loan Party contests in
any manner the validity or enforceability of any Loan Document; or any Loan
Party denies that it has any or further liability or obligation under any Loan
Document, or purports to revoke, terminate or rescind any Loan
Document.

       

      10.1.10    Judgments.  One
or more judgments or decrees shall be entered against Borrower or any Loan Party
involving a liability (not paid or fully covered (subject to deductibles) by a
reputable and solvent insurance company) and such judgments and decrees either
shall be final and non-appealable or shall not be vacated, discharged or stayed
or bonded pending appeal for any period of sixty (60) consecutive days, and the
aggregate amount of all such judgments exceeds $1,000,000;

       

      
        
          
             

          

          
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      10.1.11    ERISA.  (a)
If (i) any Plan shall be deemed to be in "at risk status" (as defined in Section
430(i)(4) of the Code without regard to Section 430(i)(4)(B) relating to the
transition rule), (ii) any Plan shall have had or is likely to have a trustee
appointed to administer such Plan, (iii) any Plan is, shall have been or is
likely to be terminated or to be the subject of a distress termination
proceeding under ERISA, (iv) a minimum required contribution (as defined in
Section 430(a) of the Code) for a Plan has not been timely made, (v) a Loan
Party or any ERISA Affiliate has incurred or is likely to incur a liability to
or on account of a Plan under Section 409, 502(i), 502(l), 515, 4062, 4063,
4064, 4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29), 4971, 4975 or
4980 of the Code, or (vi) a Loan Party has incurred or is likely to incur
liabilities pursuant to one or more employee welfare benefit plans (as defined
in Section 3(l) of ERISA) that primarily provide health and welfare benefits to
retired employees or other former employees (other than as required by Section
601 of ERISA) and any of the foregoing could have a Material Adverse Effect; (b)
if there shall result from any event or events described in clauses (i), (ii),
(iii) (iv) or (v) of Section 10.1.11(a),
the imposition of a lien, the granting of a security interest, or a liability or
a material risk of incurring a liability which could have, or reasonably be
expected to have, a Material Adverse Effect; or (c) if any such lien, security
interest or liability is imposed or granted and, individually, and/or in the
aggregate, in the reasonable opinion of the Administrative Agent could have, or
reasonably be expected to have, a Material Adverse Effect.

       

      10.1.12    Change of
Control.  If a Change of Control shall occur.

       

      10.1.13    Indictment;
Forfeiture.  The indictment of, or institution of any legal
process or proceeding against, the Borrower, any other Loan Party under any
applicable Law where the relief, penalties, or remedies sought or available
include the forfeiture of any property of Borrower and/or any other such Person
and/or the imposition of any stay or other order, the effect of which could be
to restrain in any material way the conduct by the Borrower and/or any other
such Loan Party of its business in the ordinary course.

       

      10.1.14    Generally.  A
default by the Borrower in the performance of any other term, provision or
condition of this Agreement to be performed by the Borrower, or a breach of, or
other failure to satisfy, any other term provision, condition, covenant or
warranty under this Agreement and such default remains uncured beyond any
applicable specific grace period provided for in this Agreement, including,
without limitation, as set forth in Section 10.2
below.

       

      10.2       Grace
Periods and Notice.  As to each of the foregoing events the
following provisions relating to grace periods and notice shall
apply:

       

      10.2.1      No Notice
or Grace Period.  There shall be no grace period and no notice
provision with respect to the payment of principal at maturity and/or in
connection with a Mandatory Principal Prepayment (except as provided in Section 2.3.8) and no
grace period and no notice provision with respect to defaults related to the
voluntary filing of bankruptcy or reorganization proceedings or an assignment
for the benefit of creditors, or (subject to Sections 10.2.4 and 10.2.5) with respect
to a breach of warranty or representation under Article 6, or
(subject to Section
10.2.5) with respect to the breach of any of the affirmative covenants
set forth in Sections
7.1, 7.3, 7.4, 7.5, 7.6, 7.10, 7.18 – 7.25 or 7.30 (unless a grace
or cure period is specifically provided for therein) or (subject to Section 10.2.5) with
respect to the breach of any of the negative covenants set forth in Article
8.

       

      10.2.2      Nonpayment
of Interest.  As to the nonpayment of interest there shall be a
five (5) Business Day grace period without any requirement of written notice
from the Administrative Agent.

       

      10.2.3      Other
Monetary Defaults.  All other monetary defaults shall have a
five (5) Business Day grace period following written notice from the
Administrative Agent.

       

      10.2.4      Nonmonetary
Defaults Capable of Cure.  As to non-monetary Defaults which
are reasonably capable of being cured or remedied, unless there is a specific
shorter or longer grace period provided for in this Agreement or in another Loan
Document, there shall be a thirty (30) day grace period following the earlier of
(i) the date on which the Borrower obtains knowledge of such Default and (ii)
the date on which the Borrower has received written notice of such Default from
the Administrative Agent; provided, however, that if such
Default would reasonably require more than thirty (30) days to cure or remedy,
the grace period will be such longer period as requested by the Borrower but in
no event longer than ninety (90) days following such Default and no extension
shall be granted if such Default has caused a Material Adverse
Effect.

       

      
        
          
             

          

          
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      10.2.5      Borrowing
Base Property Defaults.  As to any non-monetary Defaults which
are capable of being cured or remedied by the removal of any Individual Property
or Individual Properties from being Borrowing Base Properties, there shall be a
thirty (30) day grace period following the earlier of (i) the date on which the
Borrower obtains knowledge of such Default and (ii) the date on which the
Borrower has received written notice of such Default from the Administrative
Agent, for the Borrower to cure or remedy such Default by removing such
Individual Properties from being Borrowing Base Properties, if required, or by
removing such Borrowing Base Properties from the Borrowing Base
Value.

       

      
        11.         REMEDIES.

         

      

      11.1       Remedies.  Upon
the occurrence and during the continuance of an Event of Default, whether or not
the Obligations evidenced by this Agreement and secured by the Security
Documents shall be due and payable or the Administrative Agent shall have
instituted any foreclosure or other action for the enforcement of the Security
Documents, the Administrative Agent may in its sole and absolute discretion do
any one or more of the following, and shall upon the direction of the Required
Lenders, in addition to any other remedies which the Administrative Agent may
have hereunder or under the other Loan Documents, or otherwise, and not in
limitation thereof:

       

      11.1.1      Accelerate
Debt.  Declare the Obligations immediately due and payable
(provided that in the case of a voluntary petition in bankruptcy filed by
Borrower or an involuntary petition in bankruptcy filed against Borrower (after
expiration of the grace period, if any, set forth in Section 10.1.8), such
acceleration shall be automatic).

       

      11.1.2      Collateralize
Letters of Credit.  Require the Borrower to deposit into
accounts maintained with, and pledged to the Administrative Agent, cash proceeds
in an amount equal to one hundred three percent (103%) of the L/C Exposure,
which deposits shall secure the L/C Exposure.

       

      11.1.3      Pursue
Remedies.  Pursue any and all remedies provided for hereunder,
under any one or more of the other Loan Documents, and/or
otherwise.

       

      Additionally,
upon the occurrence and during the continuance of an Event of Default subject to
the expiration of any applicable cure period, (i) the obligation of each Lender
to make Revolving Loan Advances shall terminate at the option of the
Administrative Agent in its sole and absolute discretion, (ii) the obligation of
the Swing Line Lender to make Swing Line Advances shall terminate at the option
of the Swing Line Lender in its sole and absolute discretion and (iii) the
obligation of the L/C Issuer to make L/C Credit Extensions shall terminate at
the option of the L/C Issuer in its sole and absolute discretion.

       

      11.2       Distribution
of Liquidation Proceeds.  Subject to the terms and conditions
of this Agreement, the Administrative Agent shall distribute all Liquidation
Proceeds in the order and manner set forth below:

       

      First:  To
the Administrative Agent, towards any fees and any expenses for which the
Administrative Agent is entitled to reimbursement under this Agreement or the
other Loan Documents not theretofore paid to the Administrative
Agent.

       

      Second:  To
all applicable Lenders in accordance with their proportional share based upon
their respective Commitment Percentages until all Lenders have been reimbursed
for all fees and expenses which such Lenders have previously paid to the
Administrative Agent and not theretofore paid to such Lenders.

       

      Third: To
the Swing Line Lender towards all outstanding principal and interest due to the
Swing Line Lender under the Swing Line Note, with the Swing Line Lender applying
such proceeds for purposes of this Agreement first against accrued and unpaid
interest due under the Swing Line Note and then to the outstanding principal
balance due to the Swing Line Lender under the Swing Line Note.

       

      
        
          
             

          

          
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      Fourth:  To
all applicable Lenders in accordance with their proportional share based upon
their respective Commitment Percentages until all Lenders have been paid in full
all principal and interest due to such Lenders under the Note, with each Lender
applying such proceeds for purposes of this Agreement first against accrued and
unpaid interest due under the Revolving Loans, and then to the outstanding
principal balance due to such Lender under the Revolving Loans.

       

      Fifth:  To
the L/C Issuer, funds needed to Cash Collateralize that portion of L/C
Obligations comprised of the aggregate undrawn amount of Letters of
Credit.

       

      Sixth: To
all applicable Lenders in accordance with their proportional share based upon
their respective Commitment Percentages until all Lenders have been paid in full
all other amounts due to such Lenders under the Credit Facility including,
without limitation, (a) any costs and expenses incurred directly by such Lenders
to the extent such costs and expenses are reimbursable to such Lenders by the
Borrower under the Loan Documents, and (b) payment of breakage, termination or
other payments, and any interest accrued thereon, due under any Swap Contract
between any Loan Party and any Lender, or any Affiliate of a
Lender.

       

      Seventh:  To
the Borrower or such third parties as may be entitled to claim Liquidation
Proceeds.

       

      Subject
to Section
2.6.7, amounts used to provide Cash Collateral for the aggregate undrawn
amount of Letters of Credit pursuant to clause Fifth above shall be applied to
satisfy drawings under such Letters of Credit as they occur.  If any
amount remains on deposit as Cash Collateral after all Letters of Credit have
either been fully drawn or expired, such remaining amount shall be applied to
the other Obligations, if any, in the order set forth above.

       

      12.         SECURITY INTEREST AND
SET-OFF.

       

      12.1       Security
Interest.  The Borrower hereby grants (and shall cause each
other Loan Party to grant) to the Administrative Agent and each of the Lenders,
a continuing lien, security interest and right of setoff (with setoff being
subject to Section
12.2) as security for all of the Obligations, upon and against all
deposits, credits, collateral and property, now or hereafter in the possession,
custody, safekeeping or control of Administrative Agent or any of the Lenders or
any of their respective successors and assigns, or in transit to any of
them.

       

      12.2       Set-Off/Sharing
of Payments.  If any Event of Default occurs, any such
deposits, balances or other sums credited by or due from Administrative Agent or
any of the Lenders, or from any of their respective Affiliates, to the Borrower
may to the fullest extent not prohibited by applicable Law at any time or from
time to time, without regard to the existence, sufficiency or adequacy of any
other collateral, and without notice or compliance with any other condition
precedent now or hereafter imposed by statute, rule of law or otherwise, all of
which are hereby waived, be set off, appropriated and applied by the
Administrative Agent against any or all of any Loan Party's Obligations
irrespective of whether demand shall have been made and although such
obligations may be unmatured, in the manner set forth
herein.  Promptly upon making any such set off, appropriation or
application, the Administrative Agent agrees to notify the Borrower in writing
thereof, provided the failure to give such notice shall not affect the validity
of such set off or appropriation or application.  ANY AND ALL RIGHTS
TO REQUIRE THE ADMINISTRATIVE AGENT OR ANY OF THE LENDERS TO EXERCISE ITS RIGHTS
OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS,
PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS
OR OTHER PROPERTY OF THE BORROWER OR ANY GUARANTOR, ARE HEREBY KNOWINGLY,
VOLUNTARILY AND IRREVOCABLY WAIVED.  Each of the Lenders agrees with
each other Lender that (a) if an amount to be set off is to be applied to
indebtedness of the Borrower to such Lender, other than the Obligations
evidenced by this Agreement due to such Lender, such amount shall be applied
ratably to such other indebtedness and to the Obligations evidenced by this
Agreement due to such Lender, and (b) if such Lender shall receive from the
Borrower, whether by voluntary payment, exercise of the right of setoff,
counterclaim, cross action, enforcement of the claim evidenced by this Agreement
due to such Lender by proceedings against the Borrower at law or in equity or by
proof thereof in bankruptcy, reorganization, liquidation, receivership or
similar proceedings, or otherwise, and shall retain and apply to the payment of
the Obligations due to such Lender any amount in excess of its ratable portion
of the payments received by all of the Lenders with respect to Obligations under
this Agreement due to all of the Lenders, such Lender will make such disposition
and arrangements (excluding any amounts received by the L/C Issuer to secure the
obligations of a Defaulting Lender or an Impacted Lender to fund risk
participations hereunder) with the other Lenders with respect to such excess,
either by way of distribution, pro tanto assignment of claims, subrogation or
otherwise as shall result in each Lender receiving in respect of the Obligations
its proportionate payment as contemplated by this Agreement; provided, however, that if all
or any part of such excess payment is thereafter recovered from such Lender,
such disposition and arrangements shall be rescinded and the amount restored to
the extent of such recovery, but without interest.

       

      
        
          
             

          

          
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      12.3       RESERVED.

       

      12.4       Additional
Rights.  The rights of the Administrative Agent, the Lenders
and each of their respective Affiliates under this Article 12 are in
addition to, and not in limitation of, other rights and remedies, including
other rights of set off, which the Administrative Agent or any of the Lenders
may have.

       

      13.         THE ADMINISTRATIVE AGENT AND
THE LENDERS.

       

      13.1       Rights,
Duties and Immunities of the Administrative Agent.

       

      13.1.1      Appointment
of Administrative Agent.  Each of the Lenders, the Swing Line
Lender and the L/C Issuer hereby irrevocably appoints Regions to act on its
behalf as the Administrative Agent hereunder and under the other Loan Documents
and authorizes the Administrative Agent to take such actions on its behalf and
to exercise such powers as are delegated to the Administrative Agent by the
terms hereof or thereof, together with such actions and powers as are reasonably
incidental thereto.  The provisions of this Article 13 (other
than Sections
13.1.10, 13.2.4 and 13.3.2) are solely
for the benefit of the Administrative Agent, the Lenders, the Swing Line Lender
and the L/C Issuer, and neither the Borrower nor any other Loan Party shall have
rights as a third party beneficiary of any of such provisions.

       

      13.1.2      No Other Duties, Etc.
Anything herein to the contrary
notwithstanding, none of the Bookrunners or Arrangers listed on the cover page
hereof shall have any powers, duties or responsibilities under this Agreement or
any of the Loan Documents, except in its capacity, as may be applicable, as the
Administrative Agent, a Lender, the Swing Line Lender or the L/C Issuer
hereunder.

       

      13.1.3      Delegation
of Duties.  The Administrative Agent may perform any and all of
its duties and exercise its rights and powers hereunder or under any other Loan
Document by or through any one or more sub-agents appointed by the
Administrative Agent.  The Administrative Agent and any such sub-agent
may perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties.  The exculpatory provisions
of this Article shall apply to any such sub-agent and to the Related Parties of
the Administrative Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative
Agent.

       

      13.1.4      Exculpatory
Provisions.  (a) The Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other
Loan Documents.  Without limiting the generality of the foregoing (but
subject to Section
13.1.4(b)), the Administrative Agent:

       

      (i)           shall
not be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing;

       

      (ii)           shall
not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or
by the other Loan Documents that the Administrative Agent is required to
exercise as directed in writing by the Required Lenders (or such other number or
percentage of the Lenders as shall be expressly provided for herein or in the
other Loan Documents); provided, however, that the
Administrative Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose the Administrative Agent to
liability or that is contrary to any Loan Document or applicable Law;
and

       

      
        
          
             

          

          
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      (iii)           shall
not, except as expressly set forth herein and in the other Loan Documents, have
any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrower or any of its Affiliates that is
communicated to or obtained by the Person serving as the Administrative Agent or
any of its Affiliates in any capacity.

       

      (b)           The
Administrative Agent shall not be liable for any action taken or not taken by it
(i) with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary), or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 11.2 and
13.4.1 or (ii)
in the absence of its own (or its officers, directors, employees, agents,
attorneys in fact or Affiliates) gross negligence or willful
misconduct.

       

      (c)           The
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in
connection with this Agreement or any other Loan Document, (ii) the contents of
any certificate, report or other document delivered hereunder or thereunder or
in connection herewith or therewith, (iii) the performance or observance of any
of the covenants, agreements or other terms or conditions set forth herein or
therein or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any
other agreement, instrument or document or (v) the satisfaction of any condition
set forth in Article
5 or elsewhere herein, other than to confirm receipt of items expressly
required to be delivered to the Administrative Agent.

       

      13.1.5      Reliance by
Administrative Agent.  The Administrative Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any
notice, request, certificate, consent, statement, instrument, document or other
writing (including any electronic message, Internet or intranet website posting
or other distribution) believed by it to be genuine and to have been signed,
sent or otherwise authenticated by the proper Person.  The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to have been made by the proper Person, and shall
not incur any liability for relying thereon.  In determining
compliance with any condition hereunder to the making of a Revolving Loan
Advance or Swing Line Advance, or the issuance of a Letter of Credit, that by
its terms must be fulfilled to the satisfaction of a Lender, the Swing Line
Lender or the L/C Issuer, the Administrative Agent may presume that such
condition is satisfactory to such Lender, the Swing Line Lender or the L/C
Issuer unless the Administrative Agent shall have received notice to the
contrary from such Lender, the Swing Line Lender or the L/C Issuer prior to the
making of such Revolving Loan Advance or Swing Line Advance or the issuance of
such Letter of Credit.  The Administrative Agent may consult with
legal counsel (who may be counsel for the Borrower), independent accountants and
other experts selected by it, and shall not be liable for any action taken or
not taken by it in accordance with the advice of any such counsel, accountants
or experts.

       

      13.1.6      Notice of
Default.  The Administrative Agent shall be deemed not to have
knowledge of any Default unless and until notice describing such Default is
given to the Administrative Agent by the Borrower, a Lender, the Swing Line
Lender or the L/C Issuer.  The Administrative Agent will notify the
Lenders of the Administrative Agent's receipt of any such notice.  The
Administrative Agent shall take such action with respect to such Default as may
be requested by the Required Lenders in accordance with Article 11; provided, however, that unless
and until the Administrative Agent has received any such request, the
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default as it shall deem
advisable.

       

      
        
          
             

          

          
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      13.1.7      Lenders'
Credit Decisions.  Each Lender, the Swing Line Lender and the
L/C Issuer acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and
based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement.  Each
Lender, the Swing Line Lender and the L/C Issuer also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other
Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any other Loan Document or any related agreement or any document furnished
hereunder or thereunder.

      13.1.8      Administrative
Agent's Reimbursement and Indemnification.  The Lenders agree
to reimburse and indemnify the Administrative Agent, ratably in proportion to
their respective Commitments, for (i) any amounts not reimbursed by the Borrower
for which the Administrative Agent is entitled to reimbursement by the Borrower
under this Agreement or the other Loan Documents, (ii) any other expenses
incurred by the Administrative Agent on behalf of the Lenders in connection with
the preparation, execution, delivery, administration, amendment, waiver and/or
enforcement of this Agreement and the other Loan Documents, and (iii) any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses 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 the other Loan Documents or any
other document delivered in connection therewith or any transaction contemplated
thereby, or the enforcement of any of the terms hereof or thereof; provided, however, that no
Lender shall be liable for any of the foregoing to the extent that 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 action indemnified against until such
additional indemnity is furnished.

       

      13.1.9      Administrative
Agent in its Individual Capacity.  The Person serving as the
Administrative Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it
were not the Administrative Agent and the term "Lender" or "Lenders" shall,
unless otherwise expressly indicated or unless the context otherwise requires,
include the Person serving as the Administrative Agent hereunder in its
individual capacity.  Such Person and its Affiliates may accept
deposits from, lend money to, act as the financial advisor or in any other
advisory capacity for and generally engage in any kind of business with the
Borrower or any Borrower Subsidiary or other Affiliate thereof as if such Person
were not the Administrative Agent hereunder and without any duty to account
therefor to the Lenders.

       

      13.1.10    Successor
Administrative Agent.  The Administrative Agent may at any time
give notice of its resignation to the Lenders, the Swing Line Lender, the L/C
Issuer and the Borrower. Upon receipt of any such notice of resignation, the
Required Lenders shall have the right, in consultation with and, if such
appointment is prior to the occurrence and continuation of an Event of Default,
with the prior approval of, the Borrower, such approval not to be unreasonably
withheld or delayed, to appoint a successor, which shall be a bank with an
office in the United States, or an Affiliate of any such bank with an office in
the United States.  If no such successor shall have been so appointed
by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its resignation, then
the retiring Administrative Agent may, at the direction and with the consent of
the Borrower, on behalf of the Lenders, the Swing Line Lender and the L/C
Issuer, appoint a successor Administrative Agent meeting the qualifications set
forth above; provided, however, that if the
Administrative Agent shall notify the Borrower and the Lenders that no
qualifying Person has accepted such appointment, then such resignation shall
nonetheless become effective in accordance with such notice and (1) the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder and under the other Loan Documents (except that in the case of any
collateral security held by the Administrative Agent on behalf of the Lenders,
the Swing Line Lender or the L/C Issuer under any of the Loan Documents, the
retiring Administrative Agent shall continue to hold such collateral security
until such time as a successor Administrative Agent is appointed) and (2) all
payments, communications and determinations provided to be made by, to or
through the Administrative Agent shall instead be made by or to each Lender, the
Swing Line Lender and the L/C Issuer directly, until such time as the Required
Lenders appoint a successor Administrative Agent as provided for above in this
Section.  Upon the acceptance of a successor's appointment as
Administrative Agent hereunder, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring (or
retired) Administrative Agent, and the retiring Administrative Agent shall be
discharged from all of its duties and obligations hereunder or under the other
Loan Documents (if not already discharged therefrom as provided above in this
Section).  The fees payable by the Borrower to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such
successor.  After the retiring Administrative Agent's resignation
hereunder and under the other Loan Documents, the provisions of this Section and
Section 15.7
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while the retiring Administrative
Agent was acting as Administrative Agent.

       

      
        
           

        

        
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      Any
resignation by Regions as Administrative Agent pursuant to this Section shall
also constitute its resignation as the Swing Line Lender and the L/C
Issuer.  Upon the acceptance of a successor's appointment as
Administrative Agent hereunder, (a) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
Swing Line Lender and L/C Issuer, (b) the retiring Swing Line Lender and L/C
Issuer shall be discharged from all of their respective duties and obligations
hereunder or under the other Loan Documents, and (c) the successor L/C Issuer
shall issue letters of credit in substitution for the Letters of Credit, if any,
outstanding at the time of such succession or make other arrangements
satisfactory to the retiring L/C Issuer to effectively assume the obligations of
the retiring L/C Issuer with respect to such Letters of Credit.

       

      If at any
time Regions ceases to be the Administrative Agent hereunder, Borrower's
obligations under Section 7.30 hereof
will immediately terminate.

       

      13.1.11    Administrative
Agent May File Proofs of Claim.  In case of the pendency of any
proceeding under any Debtor Relief Law or any other judicial proceeding relative
to any Loan Party, the Administrative Agent (irrespective of whether the
principal of any Revolving Loan Advance, any Swing Line Advance or L/C
Obligation shall then be due and payable as herein expressed or by declaration
or otherwise and irrespective of whether the Administrative Agent shall have
made any demand on the Borrower) shall be entitled and empowered, by
intervention in such proceeding or otherwise

       

      (a)           to
file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of any Revolving Loan Advance, any Swing Line Advance, L/C
Obligations and all other Obligations that are owing and unpaid and to file such
other documents as may be necessary or advisable in order to have the claims of
the Lenders, the L/C Issuer and the Administrative Agent (including any claim
for the reasonable compensation, expenses, disbursements and advances of the
Lenders, the Swing Line Lender, the L/C Issuer and the Administrative Agent and
their respective agents and counsel and all other amounts due the Lenders, the
Swing Line Lender, the L/C Issuer and the Administrative Agent under Sections 2.4, 2.6.9, 2.6.10 and 15.7) allowed in such
judicial proceeding; and

       

      (b)           to
collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same.

       

      and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender, the Swing Line Lender and the L/C Issuer to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall
consent to the making of such payments directly to the Lenders, the Swing Line
Lender and the L/C Issuer, to pay to the Administrative Agent any amount due for
the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.4 and
15.7.

       

      Nothing
contained herein shall be deemed to authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender, the Swing
Line Lender or the L/C Issuer any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender,
the Swing Line Lender or the L/C Issuer to authorize the Administrative Agent to
vote in respect of the claim of any Lender, the Swing Line Lender or the L/C
Issuer in any such proceeding.

       

      
        
          
             

          

          
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      13.1.12    Collateral
and Guaranty Matters.  The Lenders, the Swing Line Lender and
the L/C Issuer irrevocably authorize the Administrative Agent, at its option and
in its discretion,

       

      (a)           to
release or assign any Lien on any property granted to or held by the
Administrative Agent under any Loan Document (i) upon termination of the
Commitments and payment in full of all Obligations (other than contingent
indemnification obligations) and the expiration or termination of all Letters of
Credit (other than Letters of Credit as to which other arrangements satisfactory
to the Administrative Agent and the L/C Issuer shall have been made), (ii) that
is (1) sold or to be sold as part of or in connection with any sale permitted
hereunder or under any other Loan Document or (2) refinanced or to be refinanced
as permitted hereunder or under any other Loan Document, or (iii) subject to
Section 13.4.1,
if approved, authorized or ratified in writing by the Required Lenders;
and

       

      (b)           to
release any Guarantor from its obligations under the Guaranty if such Person
ceases to be a Subsidiary or an owner of a Borrowing Base Property as a result
of a transaction permitted hereunder.

       

      Upon
request by the Administrative Agent at any time, the Required Lenders will
promptly confirm in writing the Administrative Agent's authority to release or
subordinate its interest in particular types or items of property, or to release
any Guarantor from its obligations under the Guaranty pursuant to this Section
13.1.12.

       

      13.2       Respecting
Loans and Payments.

       

      13.2.1      Adjustments.  If,
after the Administrative Agent has paid each Lender's proportionate share of any
payment received or applied by the Administrative Agent in respect of the Loan
and other Obligations, that payment is rescinded or must otherwise be returned
or paid over by the Administrative Agent, whether pursuant to any Debtor Relief
Law, sharing of payments clause of any loan agreement or otherwise, such Lender
shall, at the Administrative Agent's request, promptly return its proportionate
share of such payment or application to the Administrative Agent, together with
such Lender's proportionate share of any interest or other amount required to be
paid by the Administrative Agent with respect to such payment or
application.

       

      13.2.2      Setoff.  If
any Lender (including the Administrative Agent), acting in its individual
capacity, shall exercise any right of setoff against a deposit balance or other
account of the Borrower held by such Lender on account of the obligations of the
Borrower under this Agreement, such Lender shall remit to the Administrative
Agent all such sums received pursuant to the exercise of such right of setoff,
and the Administrative Agent shall apply all such sums for the benefit of all of
the Lenders hereunder in accordance with the terms of this
Agreement.

       

      13.2.3      Distribution
by the Administrative Agent.  If in the opinion of the
Administrative Agent distribution of any amount received by it in such capacity
hereunder or under any of the other Loan Documents might involve any liability,
it may refrain from making distribution until its right to make distribution
shall have been adjudicated by a court of competent jurisdiction or has been
resolved by the mutual consent of all Lenders.  In addition, the
Administrative Agent may request full and complete indemnity from the Lenders,
in form and substance satisfactory to it, prior to making any such
distribution.  If a court of competent jurisdiction shall adjudge that
any amount received and distributed by the Administrative Agent is to be repaid,
each Person to whom any such distribution shall have been made shall either
repay to the Administrative Agent its proportionate share of the amount so
adjudged to be repaid or shall pay over to the same in such manner and to such
Persons as shall be determined by such court.

       

      13.2.4      Limited
Assignment Right of Borrower.  If any Lender requests
compensation under Sections 2.5.1 or
2.5.2, or if
the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.8, or if
any Lender is a Defaulting Lender, then in addition to, and not in limitation
of, the rights and remedies that may be available to the Borrower at law or in
equity, the Borrower may, at its sole expense and effort, upon notice to such
Lender and the Administrative Agent, require such Lender to assign and delegate,
without recourse (in accordance with and subject to the restrictions contained
in, and consents required by, Section 13.3), all of
its interests, rights and obligations under this Agreement and the related Loan
Documents to an assignee reasonably acceptable to the Administrative Agent that
shall assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment); provided, however,
that:

       

      
        
          
             

          

          
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      (a)           the
Administrative Agent shall be paid the assignment fee specified in Section
13.3.2(d);

       

      (b)           such
Lender shall have received payment of an amount equal to the outstanding
principal of its Revolving Loan Advances, the Refunded Swing Line Advances or
the Swing Line Advances (with respect to the Swing Line Lender) and L/C
Advances, accrued interest thereon, accrued fees and all other amounts payable
to it hereunder and under the other Loan Documents (including any amounts under
Section 2.3.15)
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrower (in the case of all other
amounts);

       

      (c)           in
the case of any such assignment resulting from a claim for compensation under
Sections 2.5.1
or 2.5.2 or
payments required to be made pursuant to Section 2.8, such
assignment will result in a reduction in such compensation or payments
thereafter; and

       

      (d)           such
assignment does not conflict with applicable Laws.

       

      A Lender
shall not be required to make any such assignment or delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation cease to
apply.

       

      13.2.5      Holders.  The
Administrative Agent may deem and treat the Lender designated in the Register as
the proportionate owner of such interest in the Obligations for all purposes
hereof unless and until a written notice of the assignment, transfer or
endorsement thereof, as the case may be, shall have been filed with the
Administrative Agent.  Any request, authority or consent of any Person
or entity who, at the time of making such request or giving such authority or
consent, is the holder of any designated interest in the Obligations shall be
conclusive and binding on any subsequent holder, transferee or endorsee, as the
case may be, of such interest in the Obligations.

       

      13.3       Assignments
by Lenders.

       

      13.3.1      Successors
and Assigns Generally.  The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that neither the
Borrower nor any other Loan Party may assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender, and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an assignee in
accordance with the provisions of Section 13.3.2, (ii)
by way of participation in accordance with the provisions of Section 13.3.4, or
(iii) by way of pledge or assignment of a security interest subject to the
restrictions of Section 13.3.6 (and
any other attempted assignment or transfer by any party hereto shall be null and
void).  Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, Participants to the extent
provided in Section
13.3.6 and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the Swing Line Lender, the L/C
Issuer and the Lenders) any legal or equitable right, remedy or claim under or
by reason of this Agreement.

       

      13.3.2      Assignments
by Lenders.  Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Revolving Loans (including
for purposes of this Section 13.3.2,
participations in Swing Line Advances and L/C Obligations) at the time owing to
it); provided,
however, that
any such assignment shall be subject to the following conditions:

       

      
        
          
             

          

          
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      (a)           Minimum
Amounts.

       

      (i)           in
the case of an assignment of the entire remaining amount of the assigning
Lender's Commitment and the Revolving Loan Advances, Swing Line Advances and L/C
Obligations at the time owing to it or in the case of an assignment to a Lender,
an Affiliate of a Lender or an Approved Fund, no minimum amount need be
assigned; and

      (ii)           in
any case not described in Section 13.3.2(a)(i),
the aggregate amount of the Commitment (which for this purpose includes the
Revolving Loan Advances, Swing Line Advances and L/C Obligations outstanding
thereunder) or, if the Commitment is not then in effect, the principal
outstanding balance of the Revolving Loan Advances, Swing Line Advances and L/C
Obligations of the assigning Lender subject to each such assignment, determined
as of the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent or, if "Trade Date" is specified in the
Assignment and Assumption, as of the Trade Date, shall not be less than
$5,000,000 unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consents (each
such consent not to be unreasonably withheld or delayed); provided, however, that
concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single Eligible Assignee (or
to an Eligible Assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has
been met.

       

      (b)           Proportionate
Amounts.  Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender's rights and
obligations under this Agreement with respect to the Revolving Loan Advances,
Swing Line Advances and L/C Obligations or the Commitment assigned.

       

      (c)           Required
Consents.  No consent shall be required for any assignment
except to the extent required by Section 13.3.2(a)(ii)
and, in addition:

       

      (i)           the
consent of the Borrower (such consent not to be unreasonably withheld or
delayed) shall be required unless (1) an Event of Default has occurred and is
continuing at the time of such assignment or (2) such assignment is to a Lender
(other than a Defaulting Lender or Impacted Lender), an Affiliate of a Lender
(other than a Defaulting Lender or Impacted Lender) or an Approved
Fund;

       

      (ii)           the
consent of the Administrative Agent (such consent not to be unreasonably
withheld or delayed) shall be required if such assignment is to a Person that is
not a Lender, an Affiliate of such Lender or an Approved Fund with respect to
such Lender; and

       

      (iii)           the
consent of the L/C Issuer (such consent not to be unreasonably withheld or
delayed) shall be required for any assignment that increases the obligation of
the assignee to participate in exposure under one or more Letters of Credit
(whether or not then outstanding).

       

      (d)           Assignment and
Assumption.  The parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption, together with
a processing and recordation fee in the amount of $2,500; provided, however, that the
Administrative Agent may, in its sole discretion, elect to waive such processing
and recordation fee in the case of any assignment.  The assignee, if
it is not a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire.

       

      
        
          
             

          

          
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      (e)           No Assignment to
Borrower.  No such assignment shall be made to the Borrower or
any of the Borrower's Affiliates or Subsidiaries.

       

      (f)           No Assignment to Natural
Persons.  No such assignment shall be made to a natural
Person.

       

      (g)           No Assignment to Defaulting
Lenders.  No such assignment shall be made to a Defaulting
Lender.

      Subject
to acceptance and recording thereof by the Administrative Agent pursuant to
Section 13.3.3,
from and after the effective date specified in each Assignment and Assumption,
the assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender's
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto) but shall continue to be entitled to the benefits of Sections 2.8, 2.5.1, 2.5.2, 2.3.15, and Section 15.7 with
respect to facts and circumstances occurring prior to the effective date of such
assignment.  Upon request, the Borrower (at its expense) shall execute
and deliver a Note to the assignee Lender; provided, however, that such
new Note shall be dated the effective date of such Assignment and Acceptance and
shall be otherwise in the form of Exhibit C attached
hereto.  To the extent a Lender has assigned all of its Commitment and
the Revolving Loan Advances, Swing Line Advances and L/C Obligations, it
covenants to return any outstanding Note to the Borrower or to provide a lost
note indemnity in lieu thereof.  Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with
this subsection shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with
Section
13.3.4.

       

      13.3.3      Register.  The
Administrative Agent, acting solely for this purpose as an agent of the
Borrower, shall maintain at the Administrative Agent's Office a copy of each
Assignment and Assumption delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitments of, and principal
amounts of the Revolving Loan Advances, Swing Line Advances and L/C Obligations
owing to, each Lender pursuant to the terms hereof from time to time (the "Register").  The
entries in the Register shall be conclusive, in the absence of manifest error,
and the Borrower, the Administrative Agent and the Lenders may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary.  The Register shall be available for inspection by the
Borrower and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

       

      13.3.4      Participations.  Any
Lender may at any time, without the consent of, or notice to, the Borrower or
the Administrative Agent, sell participations to any Person (other than a
natural Person or the Borrower or any of the Borrower's Affiliates or
Subsidiaries) (each, a "Participant") in all
or a portion of such Lender's rights and/or obligations under this Agreement
(including all or a portion of its Commitment and/or the Revolving Loans
(including such Lender's participations in Swing Line Advances and L/C
Obligations) owing to it); provided, however, that (i)
such Lender's obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrower, the Administrative
Agent, the Lenders, the Swing Line Lender and the L/C Issuer shall continue to
deal solely and directly with such Lender in connection with such Lender's
rights and obligations under this Agreement.

       

      Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of
any  provision of this Agreement; provided, however, that such
agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, waiver or other modification
described in the first proviso to Section 13.4.1 that
affects such Participant.  Subject to Section 13.3.5, the
Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.8, 2.5.1, 2.5.2, and 2.3.15 to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to Section
13.3.2.  To the extent permitted by Law, each Participant also
shall be entitled to the benefits of Section 12.2 as
though it were a Lender, provided that such Participant agrees to be subject to
Section 12.2 as
though it were a Lender.

       

      
        
          
             

          

          
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      13.3.5      Limitations
upon Participant Rights.  A Participant shall not be entitled
to receive any greater payment under Section 2.8, 2.3.15, 2.5.1 or 2.5.2 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower's prior written consent; provided, however, in no
instance shall the Borrower's Obligations be increased as a result
thereof.  A Participant that would be a Foreign Lender if it were a
Lender shall not be entitled to the benefits of Section 2.8 unless
the Borrower consents in writing to the participation sold to such Participant
and such Participant complies with Section 2.8.5 as
though it were a Lender.

       

      13.3.6      Certain
Pledges.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement
(including under its Note, if any) to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided
that no such pledge or assignment or foreclosure with respect to any such pledge
or assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party
hereto.

       

      13.3.7      Resignation
as Swing Line Lender and L/C Issuer after
Assignment.  Notwithstanding anything to the contrary contained
herein, if at any time Regions assigns all of its Commitment and the Revolving
Loan Advances, Swing Line Advances and L/C Obligations pursuant to Section 13.3.2 above,
Regions may, upon 30 days notice to the Borrower and the Lenders, resign as
Swing Line Lender and/or L/C Issuer.  If at any time Regions ceases to
be the Administrative Agent hereunder, Borrower's obligations under Section 7.30 hereof
will immediately terminate. In the event of any such resignation as Swing Line
Lender and/or L/C Issuer, the Borrower shall be entitled to appoint from among
the Lenders a successor Swing Line Lender and/or L/C Issuer hereunder; provided, however, that no
failure by the Borrower to appoint any such successor shall affect the
resignation of Regions as Swing Line Lender and/or L/C Issuer.  If
Regions resigns as L/C Issuer, it shall retain all the rights, powers,
privileges and duties of the L/C Issuer hereunder with respect to all Letters of
Credit outstanding as of the effective date of its resignation as L/C Issuer and
all L/C Obligations with respect thereto (including the right to require the
Lenders to make Base Rate Advances or fund risk participations in Unreimbursed
Amounts pursuant to Section
2.6.3).  Upon the appointment of a successor Swing Line Lender
and/or L/C Issuer, (a) such successor shall succeed to and become vested with
all of the rights, powers, privileges and duties of the retiring Swing Line
Lender and/or L/C Issuer, and (b) the successor L/C Issuer shall issue letters
of credit in substitution for the Letters of Credit, if any, outstanding at the
time of such succession or make other arrangements satisfactory to Regions to
effectively assume the obligations of Regions with respect to such Letters of
Credit.

       

      13.4       Administrative
Matters.

       

      13.4.1      Amendment,
Waiver, Consent, Etc.  Except as otherwise provided herein or
as to any term or provision hereof which specifically provides for the consent
or approval of the Administrative Agent, the Required Lenders and/or the
Lenders, as applicable, no term or provision of this Agreement or any other Loan
Document may be changed, waived, discharged or terminated, nor may any consent
required or permitted by this Agreement or any other Loan Document be given,
unless such change, waiver, discharge, termination or consent receives the
written approval of the Required Lenders; provided, however, that
notwithstanding the foregoing, the unanimous written approval of all the Lenders
(other than a Defaulting Lender) shall be required with respect to any proposed
amendment, waiver, discharge, termination, or consent which:

       

      (a)           postpones
any date fixed by this Agreement or any other Loan Document for any payment or
mandatory prepayment of principal, interest, fees or other amounts due to the
Lenders (or any of them) hereunder or under any other Loan Document without the
written consent of each Lender directly affected thereby (with the exception of
the extension of the Initial Maturity Date contemplated in Section 2.2.1, which
can be granted solely by the Administrative Agent if the conditions of Section 2.2.1 have
been fulfilled),

       

      
        
          
             

          

          
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      (b)           releases
or discharges any material portion of the Collateral other than in accordance
with the express provisions of the Loan Documents except to the extent the
release of such Collateral is permitted by this Agreement (in which case such
release may be made by the Administrative Agent acting alone),

       

      (c)           amends,
modifies or waives any provisions of this Section
13.4,

       

      (d)           reduces
the principal of, or the rate of interest specified herein on, any Revolving
Loan Advance, Swing Line Advance or L/C Borrowing, or (subject to clause (iv) of
the second proviso at the end of this Section 13.4.1) any
fees or other amounts payable hereunder or under any other Loan Document without
the written consent of each Lender directly affected thereby; provided, however, that only
the consent of the Required Lenders shall be necessary to amend the definition
of "Default Rate" or to waive any obligation of the Borrower to pay interest or
Letter of Credit Fees at the Default Rate,

       

      (e)           changes
the definition of "Required Lenders" or any other provision hereof specifying
the number or percentage of Lenders required to amend, waive or otherwise modify
any rights hereunder or make any determination or grant any consent hereunder
without the written consent of each Lender,

       

      (f)           increases
the Commitment of any Lender (or reinstates any Commitment terminated pursuant
to Article 11)
without the written consent of such Lender,

       

      (g)           releases
or waives any guaranty of the Obligations or indemnifications provided in the
Loan Documents except to the extent the release of the Guarantor is permitted by
this Agreement (in which case such release may be made by the Administrative
Agent acting alone); or

       

      (h)           changes
Section 11.2 or
Section 12.2 in
a manner that would alter the pro rata sharing of payments required thereby
without the written consent of each Lender;

       

      and,
provided further, that (i) no
amendment, waiver or consent shall, unless in writing and signed by the L/C
Issuer in addition to the Lenders required above, affect the rights or duties of
the L/C Issuer under this Agreement or any Issuer Document relating to any
Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or
consent shall, unless in writing and signed by the Administrative Agent in
addition to the Lenders required above, affect the rights or duties of the
Administrative Agent under this Agreement or any other Loan Document; (iii) no
amendment, waiver or consent shall, unless in writing and signed by the Swing
Line Lender in addition to the Lenders required above, affect the rights or
duties of the Swing Line Lender under this Agreement or any other Loan Document
and (iv) the Fee Letter may be amended, or rights or privileges thereunder
waived, in a writing executed only by the parties
thereto.  Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or consent hereunder, except that the Commitment of such Lender may not
be increased without the consent of such Lender.

       

      13.4.2      Deemed
Consent or Approval.  With respect to any requested amendment,
waiver, consent or other action which requires the approval of the Required
Lenders or all of the Lenders, as the case may be, in accordance with the terms
of this Agreement, or if the Administrative Agent is required hereunder to seek,
or desires to seek, the approval of the Required Lenders or all of the Lenders,
as the case may be, prior to undertaking a particular action or course of
conduct, the Administrative Agent in each such case shall provide each Lender
with written notice of any such request for amendment, waiver or consent or any
other requested or proposed action or course of conduct, accompanied by such
detailed background information and explanations as may be reasonably necessary
to determine whether to approve or disapprove such amendment, waiver, consent or
other action or course of conduct.  The Administrative Agent may (but
shall not be required to) include in any such notice, printed in capital letters
or boldface type, a legend substantially to the following effect:

       

      
        
          
             

          

          
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      "THIS
COMMUNICATION REQUIRES IMMEDIATE RESPONSE.  FAILURE TO RESPOND WITHIN
TEN (10) CALENDAR DAYS FROM THE RECEIPT OF THIS COMMUNICATION SHALL CONSTITUTE A
DEEMED APPROVAL BY THE ADDRESSEE OF THE ACTION REQUESTED BY THE BORROWER OR THE
COURSE OF CONDUCT PROPOSED BY THE ADMINISTRATIVE AGENT AND RECITED
ABOVE,"

       

      and if
(and only if) the foregoing legend is included by the Administrative Agent in
its communication, a Lender shall be deemed to have approved or consented to
such action or course of conduct for all purposes hereunder if such Lender fails
to object to such action or course of conduct by written notice to the
Administrative Agent within ten (10) calendar days of such Lender's receipt of
such notice.

       

      13.5       Defaulting
Lenders.
A Defaulting Lender's
right to participate in the administration of the Loan, this Agreement and the
other Loan Documents, including without limitation, any right to vote in respect
of, to consent to or to direct any action or inaction of the Administrative
Agent or to be taken into account in the calculation of the Required Lenders,
shall be suspended while such Lender is a Defaulting Lender. In the case of a
Defaulting Lender under clauses (a) or (b) in the definition of Defaulting
Lender in this Agreement, such Defaulting Lender shall have no right to receive
any amounts, whether principal, interest or otherwise, owing to such Defaulting
Lender under this Agreement or any of the other Loan Documents until such
Defaulting Lender has paid all amounts owing by such Defaulting Lender under
this Agreement and such other Loan Documents.  The rights of such
Defaulting Lender in amounts owing to such Defaulting Lender under this
Agreement and the other Loan Documents shall be subordinate in all respects to
the rights of the other Lenders in amounts owing to such other Lenders under
this Agreement and the other Loan Documents.  The amounts owing by
such Defaulting Lender under this Agreement and the other Loan Documents shall
be deducted from and set off against the amounts otherwise owing to such
Defaulting Lender under this Agreement and the other Loan
Documents.  Such Defaulting Lender shall immediately pay to the
Administrative Agent all sums of any kind paid to or received by such Defaulting
Lender from Borrower or otherwise with respect to the Credit Facility, whether
pursuant to the terms of this Agreement or the other Loan Documents or in
connection with the realization of the security therefor, until all amounts
owing by such Defaulting Lender under this Agreement and the other Loan
Documents are fully repaid.  Notwithstanding the fact that such
Defaulting Lender may temporarily hold such sums, such Defaulting Lender shall
be deemed to hold same as a trustee for the benefit of the Administrative Agent,
it being the express intention of the Lenders that the Administrative Agent
shall distribute such sums in accordance with the terms of this
Agreement.

       

      14.         CASUALTY AND
TAKING.

       

      14.1       Casualty
or Taking; Obligation To Repair.  In the event of the
occurrence of an Event of Loss as to any Collateral Property, the Borrower shall
give immediate written notice thereof to the Administrative Agent. In the event
of the occurrence of an Event of Loss as to any Collateral Property or any
damage or destruction to any Collateral Property by reason of fire or other
hazard or casualty, the Borrower shall proceed with reasonable diligence, in
full compliance with all Laws and the other requirements of the Loan Documents,
to repair, restore, rebuild or replace the affected Collateral Property to its
condition immediately prior to such Event of Loss (each, the "Repair
Work").

       

      14.2       Adjustment
of Claims.  All insurance claims or condemnation or similar
awards shall be adjusted or settled by the Borrower, at the Borrower's sole cost
and expense, and Borrower shall give written notice of same to the
Administrative Agent; provided, however, that (i) the
Administrative Agent shall have the right to participate in any adjustment or
settlement for any Borrowing Base Property with respect to which the Net
Proceeds in the aggregate are equal to or greater than Five Hundred Thousand
Dollars ($500,000) and (ii) if any Event of Default exists under any of the Loan
Documents, the Administrative Agent shall have the right to adjust, settle, and
compromise such claims without the approval of the Borrower.

       

      
        
          
             

          

          
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      14.3       Payment
and Application of Insurance Proceeds and Condemnation Awards.

       

      14.3.1      Insurance
Proceeds.  All Net Proceeds shall be paid to the Administrative
Agent and, at the Administrative Agent's option, be applied to the Obligations
or released, in whole or in part, to pay for the actual cost of repair,
restoration, rebuilding or replacement to its condition immediately prior to
such Event of Loss (collectively, "Cost To Repair") all
in accordance with this Section
14.3.  If any Net Proceeds are received directly by any Loan
Party, such Loan Party shall hold such Net Proceeds in trust for the
Administrative Agent and shall promptly deliver such Net Proceeds in kind to the
Administrative Agent.  Notwithstanding any other term or provision of
this Agreement, provided no Default or Event of Default is then in existence,
all Net Proceeds related to any Collateral Property which is not a Borrowing
Base Property shall be released to the Borrower for such repair and
reconstruction, without the Borrower having to satisfy the conditions of Section 14.3 and
14.4
hereof.

       

      14.3.2      Release of
Funds.  Notwithstanding the terms and provisions hereof, with
respect to any Borrowing Base Property, if the Net Proceeds do not exceed Five
Hundred Thousand Dollars ($500,000) and the Insurance/Taking Release Conditions
have been satisfied in a manner reasonably acceptable to the Administrative
Agent, the Administrative Agent shall release the Net Proceeds to pay for the
actual Cost to Repair and the applicable Loan Party shall commence and
diligently prosecute to completion the Repair Work relative to the subject
Collateral Property, with any excess being retained by the applicable Loan
Party.

       

      14.3.3      Conditions.  Notwithstanding
the terms and provisions hereof, with respect to any Borrowing Base Property, if
either (i) the Net Proceeds are equal to or greater than Five Hundred Thousand
Dollars ($500,000) or (ii) the Net Proceeds do not exceed Five Hundred Thousand
Dollars ($500,000), but the Insurance/Taking Release Conditions have not been
satisfied with respect to such Event of Loss, the Administrative Agent, at the
Administrative Agent's option, may apply the Net Proceeds to the Obligations or
release so much of the Net Proceeds as may be required to pay for the actual
Cost To Repair in accordance the limitations and procedures set forth herein, if
the following conditions are satisfied in a manner reasonably acceptable to the
Administrative Agent:

       

      (a)           no
Default or Event of Default shall have occurred and be continuing under the Loan
Documents;

       

      (b)           in
the Administrative Agent's good faith judgment such Net Proceeds together with
any additional funds as may be deposited with and pledged to the Administrative
Agent, on behalf of the Lenders, are sufficient to pay for the Cost To Repair.
In order to make this determination, the Administrative Agent shall be furnished
by the Borrower with an estimate of the Cost to Repair accompanied by an
independent architect's or engineer's certification as to such Cost to Repair
and appropriate plans and specifications for the Repair Work;

       

      (c)           the
subject Event of Loss was not a Major Event of Loss;

       

      (d)           the
Administrative Agent in the exercise of its reasonable discretion, shall have
determined that all rents from Leases of the subject Collateral Property which
are to abate pursuant to their terms are to be payable to the Borrowing Base
Property Owner, subject to deductibles, if any, permitted pursuant to the
insurance policies to be maintained pursuant to this Agreement, from Rent Loss
Proceeds; and

       

      (e)           in
the Administrative Agent's good faith judgment, the Repair Work can reasonably
be completed on or before the time required under applicable Laws.

       

      14.4       Conditions
To Release of Insurance Proceeds.  If the Administrative Agent
elects or is required to release insurance proceeds, the Administrative Agent
may impose reasonable conditions on such release.

       

      14.5       Consultants.  The
Administrative Agent shall have the right to hire, at the reasonable cost and
expense of the Borrower, a Lender's Consultant to assist the Administrative
Agent in the determination of the satisfaction of the conditions provided for
herein for the release of the Net Proceeds, to pay the Costs to Repair and to
periodically inspect the status of the construction of any Repair
Work.

       

      
        
          
             

          

          
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      14.6       Final
Payments.  In the event that the Administrative Agent makes any
Net Proceeds available to any Loan Party for the payment of Costs to Repair as
provided for herein, upon the completion of the Repair Work as certified by the
applicable Lender's Consultant and if there is no Lender's Consultant, an
independent architect or engineer retained by the Borrower, and receipt by the
Administrative Agent of satisfactory evidence of payment and release of all
liens, any excess Net Proceeds still held by the Administrative Agent shall be
remitted by the Administrative Agent to the Borrower provided that no Event of
Default shall have occurred and be continuing.

       

      14.7       No
Default.  The Administrative Agent acknowledges that provided
that no Event of Default has occurred and is continuing, all Rent Loss Proceeds
shall be payable to the Borrower or the applicable Loan Party.

       

      15.         GENERAL
PROVISIONS.

       

      15.1       Notices.

       

      (a)           Notices
Generally.  Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), all notices and other communications provided
for herein shall be in writing and shall be delivered by hand or overnight
courier service, mailed by certified or registered mail or sent by telecopier as
follows, and all notices and other communications expressly permitted hereunder
to be given by telephone shall be made to the applicable telephone number, as
follows:

       

      (i)           if
to the Borrower, the Administrative Agent, the Swing Line Lender or the L/C
Issuer, to the address, telecopier number, electronic mail address or telephone
number specified for such Person on Schedule 15.1
attached hereto; and

       

      (ii)           if
to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire.

       

      Notices
and other communications sent by hand or overnight courier service, or mailed by
certified or registered mail, shall be deemed to have been given when received;
notices and other communications sent by telecopier shall be deemed to have been
given when sent (except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the
next business day for the recipient).  Notices and other
communications delivered through electronic communications to the extent
provided in subsection (b) below, shall be effective as provided in such
subsection (b).

       

      (b)           Electronic
Communications.  Notices and other communications to a Lender,
the Swing Line Lender or the L/C Issuer hereunder may be delivered or furnished
by electronic communication (including e-mail and Internet or intranet websites)
pursuant to procedures approved by the Administrative Agent; provided, however, that the
foregoing shall not apply to notices to any Lender or the L/C Issuer pursuant to
Section 2 if
such Lender, the Swing Line Lender or the L/C Issuer, as applicable, has
notified the Administrative Agent that it is incapable of receiving notices
under such Article by electronic communication.  The Administrative
Agent or the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided, however, that
approval of such procedures may be limited to particular notices or
communications.

       

      
        
          
             

          

          
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      Unless
the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender's receipt of an acknowledgement from the intended recipient (such as by
the "return receipt requested" function, as available, return e-mail or other
written acknowledgement); provided, however, that if such
notice or other communication is not sent during the normal business hours of
the recipient, such notice or communication shall be deemed to have been sent at
the opening of business on the next business day for the recipient, and (ii)
notices or communications posted to an Internet or intranet website shall be
deemed received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that such
notice or communication is available and identifying the website address
therefor.

       

      (c)           RESERVED.

       

      (d)           Change of Address,
Etc.  Each of the Borrower, the Administrative Agent, the Swing
Line Lender and the L/C Issuer may change its address, telecopier or telephone
number for notices and other communications hereunder by notice to the other
parties hereto.  Each other Lender may change its address, telecopier
or telephone number for notices and other communications hereunder by notice to
the Borrower, the Administrative Agent, the Swing Line Lender and the L/C
Issuer.  In addition, each Lender agrees to notify the Administrative
Agent from time to time to ensure that the Administrative Agent has on record
(i) an effective address, contact name, telephone number, telecopier number and
electronic mail address to which notices and other communications may be sent
and (ii) accurate wire instructions for such Lender.

       

      (e)           Reliance by Administrative
Agent, Swing Line Lender, L/C Issuer and Lenders.  The
Administrative Agent, the Swing Line Lender, the L/C Issuer and the Lenders
shall be entitled to rely and act upon any notices (including telephonic
Revolving Loan Notices) purportedly given by or on behalf of the Borrower even
if (i) such notices were not made in a manner specified herein, were incomplete
or were not preceded or followed by any other form of notice specified herein,
or (ii) the terms thereof, as understood by the recipient, varied from any
confirmation thereof.  The Borrower shall indemnify the Administrative
Agent, the Swing Line Lender, the L/C Issuer, each Lender and the Related
Parties of each of them from all losses, costs, expenses and liabilities
resulting from the reliance by such Person on each notice purportedly given by
or on behalf of the Borrower.  All telephonic notices to and other
telephonic communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such
recording.

       

      15.2       Interest
Rate Limitation.  Notwithstanding anything to the contrary
contained in any Loan Document, the interest paid or agreed to be paid under the
Loan Documents shall not exceed the maximum rate of non-usurious interest
permitted by applicable Law (the "Maximum
Rate").  If the Administrative Agent or any Lender shall
receive interest in an amount that exceeds the Maximum Rate, the excess interest
shall be applied to the principal of the Revolving Loan Advances or Swing Line
Advances, as applicable or, if it exceeds such unpaid principal, refunded to the
Borrower.  In determining whether the interest contracted for,
charged, or received by the Administrative Agent or a Lender exceeds the Maximum
Rate, such Person may, to the extent permitted by applicable Law, (a)
characterize any payment that is not principal as an expense, fee, or premium
rather than interest, (b) exclude voluntary prepayments and the effects thereof,
and (c) amortize, prorate, allocate, and spread in equal or unequal parts the
total amount of interest throughout the contemplated term of the Obligations
hereunder.

       

      15.3       Parties
Bound.  The provisions of this Agreement and of each of the
other Loan Documents shall be binding upon and inure to the benefit of the
Borrower and the Administrative Agent and each of the Lenders and their
respective successors and assigns, except as otherwise prohibited by this
Agreement or any of the other Loan Documents.

       

      This
Agreement is a contract by and among the Borrower, the Administrative Agent and
each of the Lenders for their mutual benefit, and no third Person shall have any
right, claim or interest against either Administrative Agent, any of the Lenders
or the Borrower by virtue of any provision hereof.

       

      
        
          
             

          

          
            84

            
              

            

          

          
             

          

        

      

       

      15.4       Governing
Law; Consent to Jurisdiction; Mutual Waiver of Jury Trial.

       

      15.4.1      GOVERNING
LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF TENNESSEE;

       

      Provided
that, notwithstanding the foregoing choice of law:

       

      (a)           The
Mortgages and the procedures governing the enforcement by Administrative Agent
of its foreclosure and other remedies under the Security Documents and under the
other Loan Documents with respect to each Collateral Property shall be governed
by the laws of the State in which such Collateral Property is
located;

       

      (b)           Administrative
Agent shall comply with applicable law of the applicable State to the extent
required by the law of such jurisdiction in connection with the foreclosure of
the security interests and liens created under the Security Documents and the
other Loan Documents with respect to each Collateral Property or other assets;
and

       

      (c)           The
Environmental Indemnity Agreements with respect to each
Collateral  Property shall be governed by Federal law and the laws of
the State in which such Collateral Property is located, and the provisions of
Federal law and the law of the applicable State shall apply in defining the
terms Hazardous Materials and Hazardous Material Laws applicable to each
Collateral Property as such terms are used in this Agreement, the Environmental
Indemnity and the other Loan Documents.

       

      15.4.2      SUBMISSION
TO JURISDICTION.  EACH PARTY HERETO IRREVOCABLY AND
UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF TENNESSEE AND OF THE UNITED STATES
DISTRICT COURT OF THE MIDDLE DISTRICT OF TENNESSEE, AND ANY APPELLATE COURT FROM
ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY
JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES
THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH TENNESSEE STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO
AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR
IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN
ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT,
ANY LENDER, THE SWING LINE LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING
ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
AGAINST THE BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF
ANY JURISDICTION.

       

      15.4.3      WAIVER OF
VENUE.  EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY
COURT REFERRED TO IN SECTION 15.4.2 OF
THIS AGREEMENT.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT.

       

      15.4.4      SERVICE OF
PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION
15.1.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY
PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE
LAW.

       

      
        
          
             

          

          
            85

            
              

            

          

          
             

          

        

      

       

      15.4.5      WAIVER OF
JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

       

      15.5       Survival.  All
representations and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith or
therewith shall survive the execution and delivery hereof and thereof until the
payment in full of all Obligations hereunder and termination of the Credit
Facility.  Such representations and warranties have been or will be
relied upon by the Administrative Agent and each Lender, regardless of any
investigation made by the Administrative Agent or any Lender or on their behalf
and notwithstanding that the Administrative Agent or any Lender may have had
notice or knowledge of any Default at the time of any Credit Extension, and
shall continue in full force and effect as long as any Credit Extension or any
other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of
Credit shall remain outstanding.

       

      15.6       Cumulative
Rights.  All of the rights of the Administrative Agent and the
Lenders hereunder and under each of the other Loan Documents and any other
agreement now or hereafter executed in connection herewith or therewith, shall
be cumulative and may be exercised singly, together, or in such combination as
Administrative Agent may determine in its sole good faith judgment.

       

      15.7       Expenses;
Indemnity; Damage Waiver.

       

      15.7.1      Costs and
Expenses.  The Borrower shall pay (i) all reasonable
out-of-pocket expenses incurred by the Administrative Agent and its Affiliates
(including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent), in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or
any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the L/C
Issuer in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder, (iii) all reasonable
out-of-pocket expenses incurred by the Swing Line Lender in connection with any
Swing Line Advance or any demand for payment related thereto and (iv) all
out-of-pocket expenses incurred by the Administrative Agent, any Lender, the
Swing Line Lender or the L/C Issuer (including the fees, charges and
disbursements of any counsel for the Administrative Agent, any Lender, the Swing
Line Lender or the L/C Issuer), in connection with the enforcement or protection
of its rights (A) in connection with this Agreement and the other Loan
Documents, including its rights under this Section, or (B) in connection with
the Revolving Loan Advances made, Swing Line Advances made or Letters of Credit
issued hereunder, including all such out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Revolving Loan
Advances, Swing Line Advances or Letters of Credit.

       

      
        
          
             

          

          
            86

            
              

            

          

          
             

          

        

      

       

      15.7.2      Indemnification
by the Borrower.  The Borrower shall
indemnify the Administrative Agent (and any sub-agent thereof), each Lender, the
Swing Line Lender and the L/C Issuer, and each Related Party of any of the
foregoing Persons (each such Person being called an "Indemnitee") against,
and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses (including the fees, charges and disbursements
of any counsel for any Indemnitee), incurred by any Indemnitee or asserted
against any Indemnitee by any third party or by the Borrower or any other Loan
Party arising out of, in connection with, or as a result of (i) the execution or
delivery of this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties hereto
of their respective obligations hereunder or thereunder, the consummation of the
transactions contemplated hereby or thereby, or, in the case of the
Administrative Agent (and any sub-agent thereof) and its Related Parties only,
the administration of this Agreement and the other Loan Documents (including in
respect of any matters addressed in Section 2.8), (ii)
any Revolving Loan Advance, Swing Line Advance or Letter of Credit or the use or
proposed use of the proceeds therefrom (including any refusal by the L/C Issuer
to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit), or (iii) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by the
Borrower or any other Loan Party, and regardless of whether any Indemnitee is a
party thereto; provided, however, that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses (x) are determined by a
court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee or
(y) result from a claim brought by the Borrower or any other Loan Party against
an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder
or under any other Loan Document, if the Borrower or such other Loan Party has
obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction.

       

      15.7.3      Reimbursement
by Lenders.  To the extent that the Borrower for any reason
fails to indefeasibly pay any amount required under Section 15.7.1 or
15.7.2 to be
paid by it to the Administrative Agent (or any sub-agent thereof), the Swing
Line Lender, the L/C Issuer or any Related Party of any of the foregoing, each
Lender severally agrees to pay to the Administrative Agent (or any such
sub-agent), the Swing Line Lender, the L/C Issuer or such Related Party, as the
case may be, such Lender's Commitment Percentage (determined as of the time that
the applicable unreimbursed expense or indemnity payment is sought) of such
unpaid amount; provided, however, that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent), the Swing Line Lender or the L/C
Issuer in its capacity as such, or against any Related Party of any of the
foregoing acting for the Administrative Agent (or any such sub-agent), the Swing
Line Lender or L/C Issuer in connection with such capacity.  The
obligations of the Lenders under this Section 15.7.3 are
subject to the provisions of Section
12.2.

       

      15.7.4      Waiver of
Consequential Damages, Etc.  To the fullest extent permitted by
applicable Law, the Borrower shall not assert, and hereby waives, any claim
against any Indemnitee, and the Administrative Agent and each Lender shall not
assert, and hereby waives any claim against a Loan Party, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any
Revolving Loan Advance, Swing Line Advance or Letter of Credit or the use of the
proceeds thereof.  No Indemnitee referred to in Section 15.7.2 above
shall be liable for any damages arising from the use by unintended recipients of
any information or other materials distributed to such unintended recipients by
such Indemnitee through telecommunications, electronic or other information
transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby other than for
direct or actual damages resulting from a claim described in clause (x) or (y)
of Section
15.7.2.

       

      15.7.5      Payments.  All
amounts due under this Section shall be payable not later than ten (10) Business
Days after demand therefor.

       

      15.7.6    
 Survival.  The agreements in
this Section shall survive the resignation of the Administrative Agent, the
Swing Line Lender and the L/C Issuer, the replacement of any Lender, the
termination of the Total Commitments and the repayment, satisfaction or
discharge of all the other Obligations.

       

      15.8       Regarding
Consents.  Except to the extent expressly provided herein, any
and all consents to be made hereunder by the Administrative Agent, Required
Lenders, or Lenders shall be in the discretion of the Person to whom consent
rights are given hereunder.

       

      
        
          
             

          

          
            87

            
              

            

          

          
             

          

        

      

       

      15.9       Obligations
Absolute.  Except to the extent prohibited by applicable law
which cannot be waived, the Obligations of Borrower and the obligations of the
Loan Parties under the Loan Documents shall be joint and several, absolute,
unconditional and irrevocable and shall be paid strictly in accordance with the
terms of the Loan Documents under all circumstances whatsoever, including,
without limitation, the existence of any claim, set off, defense or other right
which Borrower or any Loan Party may have at any time against the Administrative
Agent or any of the Lenders whether in connection with the Credit Facility or
any unrelated transaction.

       

      15.10     Table
of Contents, Title and Headings.  Any Table of Contents, the
titles and the headings of sections are not parts of this Agreement or any other
Loan Document and shall not be deemed to affect the meaning or construction of
any of its or their provisions.

       

      15.11     Counterparts.  This
Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.  This
Agreement and the other Loan Documents constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof.  Except as provided in Section 5.1, this
Agreement shall become effective when the Administrative Agent and the Borrower
shall have received counterparts hereof that, when taken together, bear the
signatures of each party hereto.  Delivery of an executed counterpart
of a signature page of this Agreement by telecopy or other electronic imaging
means shall be effective as delivery of a manually executed counterpart of this
Agreement.

       

      15.12     Time
Of the Essence.  Time is of the essence of each provision of
this Agreement and each other Loan Document.

       

      15.13     No
Oral Change.  This Agreement and each of the other Loan
Documents may only be amended, terminated, extended or otherwise modified by a
writing signed by the party against which enforcement is sought (except no such
writing shall be required for any party which, pursuant to a specific provision
of any Loan Document, is required to be bound by changes without such party's
assent).  In no event shall any oral agreements, promises, actions,
inactions, knowledge, course of conduct, course of dealings or the like be
effective to amend, terminate, extend or otherwise modify this Agreement or any
of the other Loan Documents.

       

      15.14     Monthly
Statements.  While the Administrative Agent may issue invoices
or other statements on a monthly or periodic basis (a "Statement"), it is
expressly acknowledged and agreed that: (i) the failure of the Administrative
Agent to issue any Statement on one or more occasions shall not affect the
Borrower's obligations to make payments under the Loan Documents as and when
due; (ii) the inaccuracy of any Statement shall not be binding upon Lenders and
so the Borrower shall always remain obligated to pay the full amount(s) required
under the Loan Documents as and when due notwithstanding any provision to the
contrary contained in any Statement; (iii) all Statements are issued for
information purposes only and shall never constitute any type of offer,
acceptance, modification, or waiver of the Loan Documents or any of Lenders'
rights or remedies thereunder; and (iv) in no event shall any Statement serve as
the basis for, or a component of, any course of dealing, course of conduct, or
trade practice which would modify, alter, or otherwise affect the express
written terms of the Loan Documents.

       

      15.15     No
Advisory or Fiduciary Responsibility.  In connection with all
aspects of each transaction completed hereby, the Borrower and each other Loan
Party acknowledges and agrees that:  (i) the credit facility provided
for hereunder and any related arranging or other services in connection
therewith (including in connection with any amendment, waiver or other
modification hereof or of any other Loan Document) are arm's length commercial
transactions between the Borrower, each other Loan Party and their respective
Affiliates, on the one hand, and the Administrative Agent, on the other hand,
and the Borrower and each other Loan Party is capable of evaluating and
understanding and understands and accepts the terms, risks and conditions of the
transactions contemplated hereby and by the other Loan Documents (including any
amendment, waiver or other modification hereof or thereof); and  (ii)
the Administrative Agent has not provided and will not provide any legal,
accounting, regulatory or tax advice with respect to any of the transactions
contemplated hereby (including any amendment, waiver or other modification
hereof or of any other Loan Document) and each of the Borrower and the other
Loan Parties has consulted its own legal, accounting, regulatory and tax
advisors to the extent it has deemed appropriate.  Each of the
Borrower and the other Loan Parties hereby waives and releases, to the fullest
extent permitted by Law, any claims that it may have against the Administrative
Agent with respect to any breach or alleged breach of agency or fiduciary duty,
except as otherwise provided herein.

       

      
        
          
             

          

          
            88

            
              

            

          

          
             

          

        

      

       

      15.16     USA
PATRIOT Act.  Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrower that pursuant to the requirements of
the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the "Act"), it is required
to obtain, verify and record information that identifies the Borrower, which
information includes the name and address of the Borrower and other information
that will allow such Lender or the Administrative Agent, as applicable, to
identify the Borrower in accordance with the Act.  The Borrower shall,
promptly following a request by the Administrative Agent or any Lender, provide
all documentation and other information that the Administrative Agent or such
Lender reasonably requests in order to comply with its ongoing obligations under
applicable "know your customer" and anti-money laundering rules and regulations,
including the Act.

      15.17     Treatment
of Certain Information; Confidentiality.  Each of the
Administrative Agent, the Lenders, the Swing Line Lender and the L/C Issuer
agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (a) to its Affiliates and to its and
its Affiliates' respective partners, directors, officers, employees, agents,
trustees, advisors and representatives to the extent such parties require such
information in connection with the transactions contemplated by this Agreement
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any self-regulatory
authority, such as the National Association of Insurance Commissioners), (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party hereto, (e) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any
action or proceeding relating to this Agreement or any other Loan Document or
the enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to (i)
any assignee of or Participant in, or any prospective assignee of or Participant
in, any of its rights or obligations under this Agreement or any Eligible
Assignee invited to be a Lender pursuant to Section 2.1.1 or (ii)
any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations, (g) with
the consent of the Borrower or (h) to the extent such Information (x) becomes
publicly available other than as a result of a breach of this Section or (y)
becomes available to the Administrative Agent, any Lender, the Swing Line
Lender, the L/C Issuer or any of their respective Affiliates on a
nonconfidential basis from a source other than the Borrower.

       

      For
purposes of this Section, "Information" means
all information received from the Borrower or any Subsidiary relating to the
Borrower or any Subsidiary or any of their respective businesses, other than any
such information that is available to the Administrative Agent, any Lender, the
Swing Line Lender or the L/C Issuer on a nonconfidential basis prior to
disclosure by the Borrower or any Subsidiary.  Any Person required to
maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential
information.

       

      Each of
the Administrative Agent, the Lenders, the Swing Line Lender and the L/C Issuer
acknowledges that (a) the Information may include material non-public
information concerning the Borrower or a Subsidiary, as the case may be, (b) it
has developed compliance procedures regarding the use of material non-public
information and (c) it will handle such material non-public information in
accordance with applicable Law, including United States Federal and state
securities Laws.

       

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

       

      
        
           

        

        
          89

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, this Agreement has been duly executed and delivered as a sealed
instrument as of the date first written above.

       

      
        
          
            	
                    BORROWER:

                  	
                    MID-AMERICA
      APARTMENT COMMUNITIES, INC.

                  
	 
      	 
      
	 
      	
                    By:
      /s/Al Campbell

                  
	 
      	
                    Name:
      Al Campbell

                  
	 
      	
                    Title:
      Executive Vice President and Chief Financial Officer

                  
	 
      	 
      
	 
      	
                    MID-AMERICA
      APARTMENTS, L.P.

                  
	 
      	 
      
	 
      	
                    By:
      Mid-America Apartment Communities, Inc.

                  
	 
      	
                    Its:
      Sole General Partner

                  
	 
      	 
      
	 
      	
                    By:
      /s/Al Campbell

                  
	 
      	
                    Name:
      Al Campbell

                  
	 
      	
                    Title:  Executive
      Vice President and Chief Financial 

                      
      Officer

                  

          

        

      

       

      
        
          
            
              
                
                  	
                          ADMINISTRATIVE AGENT:

                        	
                          REGIONS
      BANK

                        
	 
      	 
      
	 
      	
                          By:
      /s/Thomas K. Day

                        
	 
      	
                          Name:
      Thomas K. Day

                        
	 
      	
                          Title:
      Managing Director

                        
	 
      	 
      
	
                          LENDERS:

                        	
                          REGIONS
      BANK

                        
	 
      	 
      
	 
      	
                          By:
      /s/Thomas K. Day

                        
	 
      	
                          Name:
      Thomas K. Day

                        
	 
      	
                          Title:
      Managing Director

                        
	 
      	 
      
	 
      	
                          FIRST
      TENNESSEE BANK, N.A.

                        
	 
      	 
      
	 
      	
                          By:

                        	  
      
	 
      	
                          Name:

                        	  
      
	 
      	
                          Title:

                        	  
      

                

              

            

          

        

      

       

      
        
          
            	
                    LEAD
      ARRANGER AND

                  	 
      
	
                    SOLE
      BOOKRUNNER:

                  	
                    REGIONS
      CAPITAL MARKETS,

                  
	 
      	
                    a
      division of Regions Bank

                  
	 
      	 
      
	 
      	
                    By:
      /s/ Robert L. Chiles

                  
	 
      	
                    Name:
      Robert L. Chiles

                  
	 
      	
                    Title:
      Managing Director

                  

          

        

      

       

      
        
           

        

        
          90EXHIBIT
10.3

     

    Loan
Number: 940970147

     

    CREDIT
AGREEMENT

     

    BY
AND AMONG

     

    MID-AMERICA
APARTMENT COMMUNITIES, INC., MID-AMERICA

    APARTMENTS,
L.P., AND MID-AMERICA APARTMENTS OF TEXAS, L.P., AS

    BORROWER

     

    AND

     

    FINANCIAL
FEDERAL SAVINGS BANK, AS LENDER

     

    June
1, 2006

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    

    
      
        
          	
                  1.

                	
                  DEFINITIONS

                	
                  1

                
	 
      	 
      	 
      
	 
      	
                  1.1.

                	
                  Definitions

                	
                  1

                
	 
      	 
      	 
      	 
      
	 
      	
                  1.2.

                	
                  Construction

                	
                  20

                
	 
      	 
      	 
      	 
      
	 
      	
                  1.3.

                	
                  Accounting
      Principles

                	
                  22

                
	 
      	 
      	 
      	 
      
	
                  2.

                	
                  REVOLVING
      CREDIT FACILITY

                	
                  22

                
	 
      	 
      	 
      
	 
      	
                  2.1.

                	
                  Revolving
      Credit Commitment

                	
                  22

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.2.

                	
                  Multi-Asset
      Entities

                	
                  22

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.3.

                	
                  Term

                	
                  22

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.4.

                	
                  Nature
      of Lender’s Obligations with Respect to the Loan

                	
                  23

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.5.

                	
                  Fees

                	
                  23

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.6.

                	
                  Loan
      Requests

                	
                  25

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.7.

                	
                  The
      Loan

                	
                  26

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.8.

                	
                  Revolving
      Credit Note

                	
                  26

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.9.

                	
                  Use
      of Proceeds

                	
                  26

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.10.

                	
                  Additions
      to the Collateral Pool

                	
                  26

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.11.

                	
                  Release
      of Collateral

                	
                  29

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.12.

                	
                  Payment
      of the Loan Balance Without Termination

                	
                  29

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.13.

                	
                  Valuations

                	
                  30

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.14.

                	
                  Termination

                	
                  31

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.15.

                	
                  Material
      Adverse Change to Borrower or a Collateral Pool Property

                	
                  33

                
	 
      	 
      	 
      	 
      
	 
      	
                  2.16.

                	
                  Release
      of Collateral Followed by a Permanent Loan

                	
                  34

                
	 
      	 
      	 
      	 
      
	
                  3.

                	
                  INTEREST
      RATES

                	
                  35

                
	 
      	 
      	 
      
	 
      	
                  3.1.

                	
                  Interest
      Rate

                	
                  35

                
	 
      	 
      	 
      	 
      
	 
      	
                  3.2.

                	
                  Interest
      Rate Determinations

                	
                  35

                
	 
      	 
      	 
      	 
      
	 
      	
                  3.3.

                	
                  Interest
      Periods

                	
                  35

                
	 
      	 
      	 
      	 
      
	 
      	
                  3.4.

                	
                  Reference
      BillsSM Rate Unascertainable: Illegality; Increased Costs

                	
                  37

                
	 
      	 
      	 
      	 
      
	 
      	
                  3.5.

                	
                  LIBO
      Rate Conversion

                	
                  39

                
	 
      	 
      	 
      	 
      
	
                  4.

                	
                  PAYMENTS

                	
                  39

                
	 
      	 
      	 
      
	 
      	
                  4.1.

                	
                  Payments

                	
                  39

                
	 
      	 
      	 
      	 
      
	 
      	
                  4.2.

                	
                  Payment
      Dates

                	
                  40

                

        

      

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

    
      
        
          
            	 
      	
                    4.3.

                  	
                    Prepayments

                  	
                    40

                  
	 
      	 
      	 
      	 
      
	 
      	
                    4.4.

                  	
                    Prepayment
      Fee

                  	
                    41

                  
	 
      	 
      	 
      	 
      
	 
      	
                    4.5.

                  	
                    Additional
      Payment Obligations

                  	
                    42

                  
	 
      	 
      	 
      	 
      
	 
      	
                    4.6.

                  	
                    Additional
      Compensation in Certain Circumstances

                  	
                    44

                  
	 
      	 
      	 
      	 
      
	
                    5.

                  	
                    CONDITIONS
      OF LENDING

                  	
                    45

                  
	 
      	 
      	 
      
	 
      	
                    5.1.

                  	
                    Initial
      Borrowing Tranche

                  	
                    46

                  
	 
      	 
      	 
      	 
      
	 
      	
                    5.2.

                  	
                    Each
      Subsequent Borrowing Tranche

                  	
                    48

                  
	 
      	 
      	 
      	 
      
	

                    6.

                  	REPRESENTATIONS
      AND WARRANTIES	
                    48

                  
	 
      	 
      	 
      	 
      
	 
      	
                    6.1.

                  	
                    Representations
      and Warranties

                  	
                    48

                  
	 
      	 
      	 
      	 
      
	 
      	
                    6.2.

                  	
                    Updates

                  	
                    58

                  
	 
      	 
      	 
      	 
      
	 
      	
                    6.3.

                  	
                    Survival
      of Representations and Warranties

                  	
                    58

                  
	 
      	 
      	 
      	 
      
	
                    7.

                  	
                    COVENANTS

                  	
                    59

                  
	 
      	 
      	 
      
	 
      	
                    7.1.

                  	
                    Covenants

                  	
                    59

                  
	 
      	 
      	 
      	 
      
	 
      	
                    7.2.

                  	
                    Reporting
      Requirements

                  	
                    66

                  
	 
      	 
      	 
      	 
      
	 
      	
                    7.3.

                  	
                    Additional
      Affirmative Covenants

                  	
                    67

                  
	 
      	 
      	 
      	 
      
	 
      	
                    7.4.

                  	
                    Additional
      Negative Covenants

                  	
                    75

                  
	 
      	 
      	 
      	 
      
	 
      	
                    7.5.

                  	
                    Additional
      Financial Covenants

                  	
                    76

                  
	 
      	 
      	 
      	 
      
	
                    8.

                  	
                    DEFAULT

                  	
                    77

                  
	 
      	 
      	 
      
	 
      	
                    8.1.

                  	
                    Events
      of Default

                  	
                    77

                  
	 
      	 
      	 
      	 
      
	 
      	
                    8.2.

                  	
                    Consequences
      of Event of Default

                  	
                    80

                  
	 
      	 
      	 
      	 
      
	 
      	
                    8.3.

                  	
                    Notice
      of Sale

                  	
                    80

                  
	 
      	 
      	 
      	 
      
	
                    9.

                  	
                    MISCELLANEOUS

                  	
                    80

                  
	 
      	 
      	 
      
	 
      	
                    9.1.

                  	
                    Cooperation
      by Borrower; Borrower’s Obligations

                  	
                    80

                  
	 
      	 
      	 
      	 
      
	 
      	
                    9.2.

                  	
                    Successors
      and Assigns

                  	
                    80

                  
	 
      	 
      	 
      	 
      
	 
      	
                    9.3.

                  	
                    Modifications,
      Amendments or Waivers

                  	
                    81

                  
	 
      	 
      	 
      	 
      
	 
      	
                    9.4.

                  	
                    Forbearance

                  	
                    81

                  
	 
      	 
      	 
      	 
      
	 
      	
                    9.5.

                  	
                    Remedies
      Cumulative

                  	
                    81

                  
	 
      	 
      	 
      	 
      
	 
      	
                    9.6.

                  	
                    Reimbursement
      and Indemnification of Lender and Servicer by Borrower;
    Taxes

                  	
                    82

                  
	 
      	 
      	 
      	 
      
	 
      	
                    9.7.

                  	
                    Holidays

                  	
                    82

                  
	 
      	 
      	 
      	 
      
	 
      	
                    9.8.

                  	
                    Notices

                  	
                    82

                  

          

        

      

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    

    
      
        
          	 
      	
                  9.9.

                	
                  Severability

                	
                  83

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.10.

                	
                  Governing
      Law; Consent to Jurisdiction and Venue

                	
                  84

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.11.

                	
                  Prior
      Understanding

                	
                  84

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.12.

                	
                  Duration;
      Survival

                	
                  84

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.13.

                	
                  Disclosure
      of Information

                	
                  84

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.14.

                	
                  Exceptions

                	
                  85

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.15.

                	
                  Relationship
      of Parties; No Third Parties Benefited

                	
                  85

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.16.

                	
                  Authority
      to File Notices

                	
                  85

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.17.

                	
                  WAIVER
      OF TRIAL BY JURY

                	
                  85

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.18.

                	
                  Interpretation

                	
                  86

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.19.

                	
                  Brokerage
      Fee

                	
                  86

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.20.

                	
                  Advertising

                	
                  86

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.21.

                	
                  Time
      of Essence

                	
                  86

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.22.

                	
                  Counterparts

                	
                  86

                
	 
      	 
      	 
      	 
      
	 
      	
                  9.23.

                	
                  Interpretation
      of Certain Representations, Warranties and Covenants

                	
                  86

                

        

      

    

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    CREDIT
AGREEMENT

     

    THIS
CREDIT AGREEMENT (“Agreement”) is dated as of June __, 2006 and is made by and
among MID-AMERICA APARTMENT
COMMUNITIES, INC., a Tennessee corporation having an address at 6584
Poplar Avenue, Suite 300, Memphis, Tennessee 38138, (“REIT”), MID-AMERICA APARTMENTS, L.P.,
a Tennessee limited partnership having an address c/o Mid-America Apartment
Communities, Inc., 6584 Poplar Avenue, Suite 300, Memphis, Tennessee 38138
(“Operating Partnership”), and MID-AMERICA APARTMENTS OF TEXAS,
L.P., a Texas limited partnership having an address c/o Mid-America
Apartment Communities, Inc., 6584 Poplar Avenue, Suite 300, Memphis, Tennessee
38138 (“MAA Texas,” jointly and severally with REIT and Operating Partnership,
“Borrower”) and FINANCIAL
FEDERAL SAVINGS BANK, a federal savings bank organized and existing under
the laws of the United States of America, having an address at 6305 Humphreys
Boulevard, Suite 100, Memphis, Tennessee 38120.

     

    RECITALS

     

    WHEREAS,
Borrower desires to obtain a revolving credit loan from Lender in the amount of
up to, but not exceeding Two Hundred Million and NO/100 Dollars
($200,000,000.00).

     

    WHEREAS,
Borrower has offered to grant Lender a security interest in certain real
property and other assets owned by Borrower as security for Borrower’s repayment
of such revolving credit loan; and

     

    WHEREAS,
Lender is willing to make a revolving credit loan to Borrower secured by an
interest in such real property and other assets owned by Borrower.

     

    NOW,
THEREFORE, the parties hereto, in consideration of their mutual covenants and
agreements hereinafter set forth and intending to be legally bound hereby,
covenant and agree as follows:

     

    1.           DEFINITIONS

     

    1.1.         Definitions.

     

    In
addition to words and terms defined elsewhere in this Agreement, the following
words and terms shall have the following meanings, respectively, unless the
context hereof clearly requires otherwise:

     

    “Addition
Fee” shall have the meaning set forth in Section 2.10.3.

     

    “Additional
Collateral Facility” shall mean the increase in the Maximum Facility Available
caused solely by (i) the addition of a real estate property to the Collateral
Pool at the time of its inclusion or (ii) certain increases in the Valuation of
the Collateral Pool as described in Section 2.13.3.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    “Affiliate”
or “Affiliates” as to any Person shall mean any other Person (i) which directly
or indirectly controls, is controlled by, or is under common control with such
Person, (ii) which beneficially owns or holds five percent (5%) or more of any
class of the voting or other equity interests of such Person, or (iii) five
percent (5%) or more of any class of voting interests or other equity interests
of which is beneficially owned or held, directly or indirectly, by such
Person.  Control, as used in this definition, shall mean the
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, including the power to
elect a majority of the directors or trustees of a corporation or trust, as the
case may be.

     

    “Agreement”
shall mean this Credit Agreement, as the same may be supplemented or amended
from time to time, including all schedules attached hereto.

     

    “Acquiring
Person” shall mean a “person” or “group of persons” within the meaning of
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended.

     

    “Authorized
Officer” shall mean those individuals, designated by written notice to Lender
from Borrower, authorized to execute notices, reports and other documents on
behalf of Borrower required hereunder; provided, further, that the individuals
so designated as the Authorized Officers of Borrower shall be the sole
representatives of Borrower for the purpose of giving or receiving any notices
permitted or required by this Agreement.  Borrower may amend such list
of individuals from time to time by giving written notice of such amendment to
Lender.

     

    “Base
Rate” shall mean the Reference BillsSM Rate plus the Margin or the LIBO Rate
plus the Margin, as the context shall require.  Interest accruing at
the Base Rate shall be calculated monthly in the manner provided herein based on
the aggregate principal balance of the Loan outstanding during the applicable
Month, and such interest shall be paid in arrears, as provided
herein.  The Reference BillsSM Rate or the LIBO Rate, as applicable,
with respect to each Base Rate Borrowing Tranche shall remain fixed throughout
the applicable Interest Period and shall then be redetermined as of each renewal
of such Base Rate Borrowing Tranche in accordance with Section 3.2.  The
Margin with respect to each Base Rate Borrowing Tranche shall be determined and
redetermined from time to time in accordance with Section 3.2.

     

    “Base
Rate Borrowing Tranche” shall mean any Borrowing Tranche which accrues interest
at the Base Rate.

     

    “Benefit
Arrangement” shall mean at any time an “employee benefit plan,” within the
meaning of Section 3(3) of ERISA, including without limitation a Pension Plan or
a Multiemployer Plan and which is maintained, sponsored or otherwise contributed
to by any member of the ERISA Group.

     

    “Borrower”
shall mean the entity(ies) which will execute this Agreement as Borrower,
together with any Proposed Borrower at such time as it joins in this Agreement
pursuant to the terms and conditions of Section 2.10.2.2.

     

    “Borrower’s
knowledge” shall mean the actual knowledge of any officer or employee of
Borrower which manages or operates the Collateral Pool Properties.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “Borrowing
Date” shall mean, with respect to any Borrowing Tranche, the date of borrowing
or renewal, as the case may be, which shall be a Business Day or, in the case of
a renewal which would otherwise fall on a day other than a Business Day, the
first Business Day thereafter.

     

    “Borrowing
Tranche” shall mean each advance at the Base Rate hereunder having a particular
Interest Period outstanding at any one time, and all advances at the Prime
Rate.  Two (2) or more Borrowing Tranches may be combined to form a
single Borrowing Tranche with the same Interest Period (a) without Prepayment
Fee or other penalty or fee in the event two (2) or more Borrowing Tranches
mature and are renewed at the same time with the same Interest Period or (b)
with the applicable Prepayment Fee if one (1) or more Borrowing Tranches are
advanced or prepaid and at the request of the Borrower then combined with one
(1) or more other Borrowing Tranches with the same Interest
Period.  For all purposes hereunder, all Prime Rate fundings shall be
aggregated and deemed a single Borrowing Tranche.

     

    “Business
Day” shall mean any day other than (i) a Saturday or Sunday or a legal holiday
on which either Lender or Servicer is closed for business, and (ii) in
connection with any Loan Request or Renewal Request for a Base Rate Borrowing
Tranche which will accrue interest in part based on the LIBO Rate, any day in
which business is not carried on in the London interbank market.

     

    “Change
in Control” shall
mean the earliest to occur of: (a) the date on which REIT ceases for any reason
whatsoever to be the sole general partner or managing member of Operating
Partnership or ceases to own, directly or indirectly, one hundred percent (100%)
of the sole general partner or managing member of Operating Partnership, or (b)
the date on which an Acquiring Person becomes (by acquisition, consolidation,
merger or otherwise), directly or indirectly, the beneficial owner of more than
twenty-five percent (25%) of the total Voting Equity Capital (or of any other
securities or ownership interest) of any Borrower then outstanding, or (c) the
replacement (other than solely by reason of retirement at age sixty-five or
older, death or disability) of fifty percent (50%) or more (or such lesser
percentage as is required for decision-making by the board of directors or an
equivalent governing body) of REIT or Operating Partnership over a one-year
period from the directors who constituted such board of directors at the
beginning of such period and such replacement shall not have been approved by a
vote of at least a majority of the board of directors of REIT or Operating
Partnership then still in office who either were members of such board of
directors at the beginning of such one-year period or whose election as members
of the board of directors was previously so approved (it being understood and
agreed that in the case of any entity governed by a trustee, board of managers,
or other similar governing body, the foregoing clause (c) shall apply thereto by
substituting such governing body and the members thereof for the board of
directors and members thereof, respectively).

     

    “Closing
Date” shall mean the first date on which both of the following requirements are
met:  (i) this Agreement has been fully executed and (ii) all
conditions to closing set forth in Section 5.1 hereof shall have
been satisfied.  The closing shall take place on the Closing Date at
such time and place as the parties agree.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Collateral”
shall mean the Collateral Pool Properties, and all other property of Borrower on
which first priority liens and security interests have been granted for the
benefit of Lender to secure the Loan and all other obligations of Borrower under
the Collateral Pool Property Documents.

     

    “Collateral
Agreements” shall mean (i) any agreements between Borrower and Lender for the
purpose of establishing replacement reserves for the Collateral Pool Properties
or a particular Collateral Pool Property, including agreements establishing a
fund to assure the completion of repairs or improvements specified in any such
agreement and (ii) any other agreement or agreements between Borrower and Lender
which provide for the establishment of any other fund, reserve or account, all
of the foregoing to be imposed only pursuant to an express written agreement
between Borrower and Lender entered into (a) at the Closing Date, or (b) with
respect to real estate properties added to the Collateral Pool pursuant to Section 2.10, at or prior to
such addition.

     

    “Collateral
Pool”, “Collateral Pool Property” and “Collateral Pool Properties” shall mean
the multi-family real property or properties, as the case may be, as set forth
in Schedule 1.1(A),
together with any multi-family real properties which have been added to the
Collateral Pool and less any real properties which have been released from the
Collateral Pool hereunder.

     

    “Collateral
Pool Property Documents” shall mean the then current versions of the Security
Instruments, assignments of leases and rents, guaranties, indemnities,
Collateral Agreements, O&M Programs, and any other documents now or in the
future executed by Borrower, any guarantor or any other person or entity in
connection with the Loan or the Collateral, as such documents may be amended
from time to time.  The Collateral Pool Property Documents shall
include those documents set forth in Schedule 1.1(B).

     

    “Commitment”
shall mean Two Hundred Million and NO/100 Dollars ($200,000,000).

     

    “Consolidated
EBITDA” means, for any period, and without double counting any item, the EBITDA
for Borrower and its respective subsidiaries for such period on a consolidated
basis.

     

    “Consolidated
EBITDA to Fixed Charges Ratio” means, for any period of determination, the ratio
(expressed as a percentage) of

     

    (a)           the
excess of

     

    (i)   the
Consolidated EBITDA for the period, less

     

    (ii)  the
Imputed Capital Expenditures for the period;

     

    to

     

    (b)           the
Consolidated Fixed Charges for the period.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    “Consolidated
EBITDA to Interest Ratio” means, for any period of determination, the ratio
(expressed as a percentage) of

     

    (a)           the
excess of

     

    (i)  the
Consolidated EBITDA for the period, less

     

    (ii) the
Imputed Capital Expenditures for the period;

     

    to

     

    (b)           the
Consolidated Interest Expense for the period.

     

    “Consolidated
Fixed Charges” means, for any period of determination, the sum of

     

    (a)           the
Consolidated Interest Expense for the period;

     

    (b)           the
Consolidated Scheduled Amortization for the period; and

     

    (c)           Preferred
Distributions for the period.

     

    “Consolidated
Interest Expense” means, for any period of determination, and without double
counting any item, the sum of the Interest Expense for Borrower and its
respective subsidiaries for such period on a consolidated basis.

     

    “Consolidated
Scheduled Amortization” means, for any period of determination, and without
double counting any item, the sum of the Scheduled Amortization (but excluding
balloon payments) for Borrower and its respective subsidiaries for such period
on a consolidated basis.

     

    “Consolidated
Total Assets” means, for any Person, all assets of such Person and its
subsidiaries determined on a consolidated basis in accordance with GAAP;
provided that all assets composed of real property shall be valued on an
undepreciated cost basis and the portion of any joint venture assets owned by
such Person shall be included in Consolidated Total Assets.  The
assets of a Person and its subsidiaries shall be adjusted to reflect such
Person’s allocable share of such assets, for the relevant period or as of the
date of determination, taking into account (a) the relative proportion of each
such item derived from assets directly owned by such Person and from assets
owned by its subsidiaries, and (b) such Person’s respective ownership interest
in its subsidiaries.

     

    “Consolidated
Total Indebtedness” means, as of any date, and without double counting any item,
the Total Indebtedness for each Borrower and its respective subsidiaries as of
such date (including the Total Indebtedness of Borrower as of such date and the
portion of any indebtedness of any joint venture in which any Borrower or any
subsidiary thereof is a venturer attributable to such Borrower or its
subsidiary).

     

    “Credit
Enhancement Fee” shall mean ten basis points (.0010) for Qualifying Rate Swap
Agreements.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    “Deemed
Maximum Facility Available” shall mean as of the date of determination the sum
of seventy percent (70%) of the Initial Market Value of each property
contributed to the Collateral Pool (regardless of whether the same has been
released from the Collateral Pool), including in the determination thereof the
Market Value of any property then being added to the Collateral
Pool.

     

    “Deemed
Minimum Loan Amount” shall mean an amount equal to twenty-five percent (25%) of
the Commitment.

     

    “Dollar”,
“U.S. Dollars” and the symbol $ shall mean lawful money of the United States of
America.

     

    “EBITDA”
means, for any period, the sum determined in accordance with GAAP, of the
following, for any Person on a consolidated basis

     

    (a)           the
net income (or net loss) of such Person during such Period, but excluding gains
and losses on the sale of fixed assets;

     

    (b)           all
amounts treated as expenses for depreciation, Interest Expense and the
amortization of intangibles of any kind to the extent included in the
determination of such net income (or loss); and

     

    (c)           all
accrued taxes on or measured by income to the extent included in the
determination of such net income (or loss);

     

    provided,
however, that net income (or loss) shall be computed for these purposes without
giving effect to extraordinary losses or extraordinary gains.

     

    “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as the same may
be amended or supplemented from time to time, and any successor statute of
similar import, and the rules and regulations thereunder, as from time to time
in effect.

     

    “ERISA
Group” shall mean, at any time, Borrower and all members of a controlled group
of corporations and all trades or businesses (whether or not incorporated) under
common control and all other entities which, together with Borrower, are treated
as a single employer under Section 414 of the Internal Revenue
Code.

     

    “Event of
Default” shall mean any of the events described in Section 8.1 or otherwise
referred to herein as an “Event of Default”.

     

    “Expiration
Date” shall mean the earlier of (i) the Maturity Date, or (ii) the date
specified by Borrower as the Expiration Date under Section 2.14, or (iii) the
date specified by Lender pursuant to Section 7.3.1.16.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    “Facility
Debt Service” shall mean, for the purposes of this Agreement, the sum of (i) the
Hedge Adjusted Interest Due, (ii) the amounts, if any, payable under Section 2.5.5, (iii) the
Credit Enhancement Fee payable under Section 4.5.3, and (iv) the
first twelve (12) principal payments based on the amortization of the then
outstanding principal balance of the Loan utilizing a thirty (30) year fully
amortizing schedule and level monthly payments, and using a coupon rate equal to
the quotient resulting from dividing the Hedge Adjusted Interest Due by the then
outstanding principal balance of the Loan.  The Hedge Adjusted
Interest Due and Facility Debt Service shall be annualized at the time of
determination notwithstanding the duration of any Interest Period or the
duration of any Qualifying Rate Cap Agreement or Qualifying Rate Swap Agreement.
Facility Debt Service shall be recalculated (a) as of each Loan Request, (b) as
of each Renewal Request, or deemed renewal under Section 3.3.3, (c) on or
before July 1 of each calendar year during the term of this Agreement,
commencing on or about July 1, 2007, (d) as of each addition or deletion of a
property to or from the Collateral Pool, (e) as of each repayment of any
principal portion of the Loan, (f) upon the expiration termination, replacement,
or other modification of any Qualifying Rate Cap Agreement or Qualifying Rate
Swap Agreement, and (g) upon the occurrence of a Material Adverse Change. The
calculation of Facility Debt Service is made for purposes of computing the
Facility Debt Service Coverage Ratio and for other purposes under this Agreement
and not for purposes of calculating the interest payable hereunder or under the
Revolving Credit Note. The interest payable under the Revolving Credit Note and
this Agreement is payable at the rates and at the times provided in Section 3 and Section 4 hereof.

     

    “Facility
Debt Service Coverage Ratio” shall mean, at the time of determination, the then
prevailing computation of Net Operating Income of the Collateral Pool Properties
divided by the then prevailing computation of Facility Debt
Service.

     

     “Freddie
Mac” shall mean the Federal Home Loan Mortgage Corporation.

     

    “Financial
Federal”  shall mean Financial Federal Savings Bank.

     

    “Funds
from Operations” shall mean consolidated net income of REIT, including minority
interest (computed in accordance with GAAP), excluding gains (or losses) from
debt restructuring, sales of property, impairment charges, or charges related to
the adjustment to the value of assumed debt, plus real property depreciation and
goodwill amortization, before extraordinary or unusual items, and after
adjustments for unconsolidated partnerships and joint
ventures.  Adjustments for unconsolidated partnerships and joint
ventures will be calculated to reflect Funds from Operations on the same basis.
Funds from Operations shall be calculated for the trailing twelve (12) month
period preceding the date of determination.

     

    “GAAP”
shall mean generally accepted accounting principles as are in effect from time
to time, subject to the provisions of Section 1.3, and applied on a
consistent basis both as to classification of items and amounts.

     

    “G-Fee”
shall mean the applicable percentage per annum set forth in
Schedule
3.2.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    “Hazardous
Materials” shall mean petroleum and petroleum products and compounds containing
them, including gasoline, diesel fuel and oil; explosives; flammable materials;
radioactive materials; polychlorinated biphenyls ("PCBs") and compounds
containing them; lead and lead-based paint; asbestos or asbestos-containing
materials in any form that is or could become friable; underground or
above-ground storage tanks, whether empty or containing any substance; any
substance the presence of which on the Collateral Pool Property(ies) is
prohibited by any federal, state or local authority; any substance that requires
special handling and any other material or substance now or in the future that
(i)  is defined as a “hazardous substance,” “hazardous material,”
“hazardous waste,” “toxic substance,” “toxic pollutant,” “contaminant,” or
“pollutant” by or within the meaning of any Hazardous Materials Law, or
(ii) is regulated in any way by or within the meaning of any Hazardous
Materials Law.

     

    “Hazardous
Materials Laws” means all federal, state, and local laws, ordinances and
regulations and standards, rules, policies and other governmental requirements,
administrative rulings and court judgments and decrees in effect now or in the
future and including all amendments, that relate to Hazardous Materials or the
protection of human health or the environment and apply to Borrower or to the
Collateral Pool Property(ies). Hazardous Materials Laws include, but are not
limited to, the Comprehensive Environmental Response, Compensation and Liability
Act, 42 U.S.C. Section 9601, et seq., the Resource Conservation and
Recovery Act of 1976, 42 U.S.C. Section 6901, et seq., the Toxic Substance
Control Act, 15 U.S.C. Section 2601, et seq., the Clean Water Act, 33
U.S.C. Section 1251, et seq., and the Hazardous Materials Transportation
Act, 49 U.S.C. Section 5101 et seq., and their state analogs.

     

    “Hazardous
Substance Activity” means any storage, holding, existence, release, spill,
leaking, pumping, pouring, injection, escaping, deposit, disposal, dispersal,
leaching, migration, use, treatment, emission, discharge, generation,
processing, abatement, removal, disposition, handling or transportation of any
Hazardous Materials from, under, into or on any Collateral Pool Property in
violation of Hazardous Materials Laws, including the discharge of any Hazardous
Materials emanating from any Collateral Pool Property in violation of Hazardous
Materials Laws through the air, soil, surface water, groundwater or property and
also including the abandonment or disposal of any barrels, containers and other
receptacles containing any Hazardous Materials from or on any Collateral Pool
Property in violation of Hazardous Materials Laws, in each case whether sudden
or non-sudden, accidental or non-accidental.

     

    “Hedge
Adjustments” shall mean the aggregate sum of (a) for each Qualifying Rate Swap
Agreement, the product of (i) the notional amount of said Rate Swap Agreement
times (ii) the difference, positive or negative, obtained by subtracting the
stipulated fixed rate paid under said Rate Swap Agreement from the applicable
LIBO Rate paid under such Rate Swap Agreement and (b) for each Qualifying Rate
Cap Agreement where the applicable LIBO Rate exceeds the strike rate, the
product of (x) the notional amount of said Rate Cap Agreement times (y) the
excess of such LIBO Rate over the strike rate.

     

    “Hedge
Adjusted Interest Due” shall mean the sum of (i) the interest due on the
outstanding amount of the Loan hereunder and under the Revolving Credit Note,
including any default interest less (ii) any and all applicable Hedge
Adjustments.

     

    “Hedged
Debt Service” shall mean, for the purposes of this Agreement, the aggregate sum
of:

     

    (i)           for
each Qualifying Rate Cap Agreement, the product of (x) the stipulated notional
amount times (y) the strike rate stipulated in such Qualified Rate Cap
Agreement;

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (ii)           for
each Qualifying Rate Swap Agreement, the product of (a) the stipulated notional
amount times (b) the fixed pay rate stipulated in such Qualified Rate Swap
Agreement;

     

    (iii)          fifty
percent (50%) of the G-Fee Amount for all outstanding Borrowing Tranches at the
time of determination;

     

    (iv)         the
greater of (A) fifty percent (50%) of the Servicing Fee Payment for all
outstanding Borrowing Tranches at the time of determination or (B) fifty percent
(50%) of the Minimum Servicing Fee payable under Section 2.5.5;

     

    (v)           fifty
percent (50%) of the Credit Enhancement Fee payable under Section 4.5.3;
and

     

    (vi)         the
first twelve (12) principal payments based on the amortization of the Required
Hedge Amount utilizing a thirty (30) year fully amortizing schedule and level
monthly payments, and using a coupon rate equal to the quotient resulting from
dividing (I) the aggregate amounts of the foregoing items (i) through (v) by
(II) the Required Hedge Amount;

     

    provided,
however, that in the event Borrower shall purchase Qualifying Rate Cap
Agreements or Qualifying Rate Swap Agreement with aggregate notional amounts in
excess of the Required Hedge Amount, Hedged Debt Service shall be calculated
starting with the Qualifying Rate Cap Agreement or Qualifying Rate Swap
Agreement with the lowest stipulated strike rate or fixed pay rate, as
applicable, (relative to all of the Qualifying Rate Cap Agreements and
Qualifying Rate Swap Agreements) and proceeding to include those Qualifying Rate
Cap Agreements or Qualifying Rate Swap Agreements with the next higher
stipulated strike rate or fixed pay rate, until the aggregate notional amounts
of such Qualifying Rate Cap Agreements and/or Qualifying Rate Swap Agreements
considered for purposes of calculating Hedged Debt Service shall equal, but not
exceed, the Required Hedge Amount, further provided that the notional amount of
the last Qualifying Rate Cap Agreement or Qualifying Rate Swap Agreement
necessary to reach the Required Hedge Amount as herein provided shall be
prorated, as necessary, such that the aggregate notional amount of all
Qualifying Rate Cap Agreements and/or Qualifying Rate Swap Agreements considered
for purposes of calculating Hedged Debt Service shall equal, but not exceed, the
Required Hedge Amount at the time of determination.  The foregoing
shall be illustrated by way example, as set forth in Schedule
1.1(C).  Hedged Debt Service shall be annualized at the time of
determination notwithstanding the duration of any Qualifying Rate Cap Agreement
or Qualifying Rate Swap Agreement.  Hedged Debt Service shall be
recalculated (a) as of each Loan Request, (b) as of each Renewal Request, or
deemed renewal under Section
3.3.3, (c) on or before July 1 of each calendar year during the term of
this Agreement, commencing on or about July 1, 2007, (d) as of each addition or
deletion of a property to or from the Collateral Pool, (e) as of each repayment
of any principal portion of the Loan, (f) upon the expiration, termination,
replacement or other modification of any Qualifying Rate Cap Agreement or
Qualifying Rate Swap Agreement, and (g) upon the occurrence of a Material
Adverse Change.  The calculation of Hedged Debt Service is made for
purposes of computing the Hedged Debt Service Coverage Ratio and for other
purposes under this Agreement and not for purposes of calculating the interest
payable hereunder or under the Revolving Credit Note.  The interest
payable under the Revolving Credit Note and this Agreement is payable at the
rates and at the times provided in Section 3 and Section 4 hereof.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    “Hedged
Debt Service Coverage Ratio” shall mean, at the time of determination, the then
prevailing computation of (i) fifty percent (50%) of the Net Operating Income
divided by (ii) the maximum Hedged Debt Service.

     

     “Hedge
Fees” shall have the meaning set forth in Section 2.14.2.

     

    “Imputed
Capital Expenditures” means, for any four (4) consecutive fiscal quarters, an
amount equal to the average number of apartment units owned by Borrower or its
subsidiaries during such period multiplied by Three Hundred and NO/100 Dollars
($300.00) per apartment unit, and for any period of less than four (4)
consecutive fiscal quarters, an appropriate proration of such
figure.

     

    “Indebtedness”
means, with respect to any Person, as of any specified date, without
duplication, all:

    (a)           indebtedness
of such Person for borrowed money or for the deferred purchase price of property
or services (other than (i) current trade liabilities incurred in the ordinary
course of business and payable in accordance with customary practices, and (ii)
for construction of improvements to property, if such Person has a
non-contingent contract to purchase such property);

     

    (b)          other
indebtedness of such Person which is evidenced by a note, bond, debenture or
similar instrument;

     

    (c)          obligations
of such Person under any lease of property, real or personal, the obligations of
the lessee in respect of which are required by GAAP to be capitalized on a
balance sheet of the lessee or to be otherwise disclosed as such in a note to
such balance sheet;

     

    (d)          obligations
of such Person in respect of acceptances (as defined in Article 3 of the Uniform
Commercial Code) issued or created for the account of such Person;

     

    (e)           liabilities
secured by any lien on any property owned by such Person even though such Person
has not assumed or otherwise become liable for the payment of such liabilities;
and

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (f)           as
to any Person (“guaranteeing person”), any obligation of (a) the guaranteeing
person or (b) another Person (including any bank under any letter of credit) to
induce the creation of a primary obligation (as defined below) with respect to
which the guaranteeing person has issued a reimbursement, counterindemnity or
similar obligation, in either case guaranteeing, or in effect guaranteeing, any
indebtedness, lease, dividend or other obligation (“primary obligations”) of any
third person (“primary obligor”) in any manner, whether directly or indirectly,
including any obligation of the guaranteeing person, whether or not contingent,
to (1) purchase any such primary obligation or any property constituting direct
or indirect security therefor, (2) advance or supply funds for the purchase
or payment of any such primary obligation or to maintain working capital or
equity capital of the primary obligor or otherwise to maintain the net worth or
solvency of the primary obligor, (3) purchase property, securities or services
primarily for the purpose of assuring the owner of any such primary obligation
of the ability of the primary obligor to make payment of such primary
obligation, or (4) otherwise assure or hold harmless the owner of any such
primary obligation against loss in respect of the primary obligation, provided,
however, that the term “contingent obligation” shall not include endorsements of
instruments for deposit or collection in the ordinary course of business. The
amount of any contingent obligation of any guaranteeing person shall be deemed
to be the lesser of (i) an amount equal to the stated or determinable amount of
the primary obligation in respect of which such contingent obligation is made
and (ii) the maximum amount for which such guaranteeing person may be liable
pursuant to the terms of the instrument embodying such contingent obligation,
unless such primary obligation and the maximum amount for which such
guaranteeing person may be liable are not stated or determinable, in which case
the amount of such contingent obligation shall be such guaranteeing person’s
maximum reasonably anticipated liability in respect thereof as determined by
owner of the obligation in good faith.

     

    “Index
Conversion Notice” shall have the meaning given to such term in Section 3.5.

     

    “Initial
Market Value” shall mean the Market Value of any Collateral Pool Property as of
the date the same is included in the Collateral Pool pursuant to the provisions
hereof.  The Initial Market Value of the Collateral Pool Properties is
shown at Schedule
1.1(A).

     

    “Interest
Expense” means, for any period, the sum of

     

    (a)           gross
interest expense for the period (including all commissions, discounts, fees and
other charges in connection with standby letters of credit and similar
instruments) for Borrower and its respective subsidiaries; and

     

    (b)           the
portion of the up-front costs and expenses for Rate Contracts entered into by
Borrower and its respective subsidiaries (to the extent not included in gross
interest expense) fairly allocated to such Rate Contracts as expenses for such
period, as determined in accordance with GAAP;

     

    (c)           provided,
that, all interest expense accrued by Borrower and its respective subsidiaries
during such period, even if not payable on or before the Expiration Date, shall
be included within “Interest Expense.”  Notwithstanding the foregoing,
interest accrued under any Intra-Company Debt shall not be included within
“Interest Expense” for any purposes hereof.

     

    “Interest
Period” shall have the meaning assigned to such term in Section 3.3.

     

    “Internal
Revenue Code” shall mean the Internal Revenue Code of 1986, as the same may be
amended or supplemented from time to time, and any successor statute of similar
import, and the rules and regulations thereunder, as from time to time in
effect.

     

    “Intra-Company
Debt” means Indebtedness (whether book-entry or evidenced by a term, demand or
other note or other instrument) owed by Borrower or any of its respective
subsidiaries to any subsidiary, and incurred or assumed for the purpose of
capitalizing a subsidiary of Borrower.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    “Law”
shall mean any law (including common law), constitution, statute, treaty,
regulation, rule, ordinance, opinion, release, ruling, order, injunction, writ,
decree or award of any Official Body.

     

    “Lender”
shall mean at any time and from time to time, the entity that is the holder of
the Revolving Credit Note, provided that Lender may in its sole discretion
designate Servicer to perform some or all of Lender’s obligations under this
Agreement, the Revolving Credit Note and the other Loan
Documents.  Promptly after the initial closing under this Agreement,
Financial Federal Savings Bank, the initial Lender, intends to sell the
Revolving Credit Note to Freddie Mac and, in connection therewith, shall assign
all of its interests in this Agreement and the other Loan Documents to Freddie
Mac.

     

    “LIBO
Rate” shall mean, with respect to any Base Rate Borrowing Tranche, the rate of
interest, rounded to the nearest basis point (i.e. one-hundredth of one percent
(.0001)), displayed as of 11:00 a.m. London time on the second Business Day
preceding the first day of the applicable Interest Period on the Bloomberg,
L.P., page “BBAM”, as the British Bankers Association (“BBA”) LIBO Rate (such
page, or such other page as may replace page BBAM on that service, or at the
option of Lender (i) the applicable page on another credible and generally
recognized service which electronically transmits or displays BBA LIBO Rates for
the applicable Interest Period or (ii) any publication of LIBO Rates available
from BBA for the applicable Interest Period, is referred to as the “Designated
Bloomberg Page”) for purposes of calculating effective rates of interest for
loans or obligations for an amount comparable to such Borrowing Tranche and
having a term equal to the Interest Period.  If the Designated
Bloomberg Page is not available, but such information is generally still
published, the LIBO Rate for such Interest Period will be the BBA LIBO Rate most
recently published for such Interest Period.

     

    “Lien”
shall mean any Security Instrument, pledge, lien, security interest, charge or
other encumbrance or security arrangement of any nature whatsoever, whether
voluntarily or involuntarily given, including any conditional sale or title
retention arrangement, and any assignment, deposit arrangement or lease intended
as, or having the effect of, security and any filed financing statement or other
notice of any of the foregoing (whether or not a lien or other encumbrance is
created or exists at the time of the filing).

     

    “Loan”
shall mean the sum of all Borrowing Tranches outstanding at any one
time.

     

    “Loan
Document” or “Loan Documents” shall mean any or all of this Agreement, the
Revolving Credit Note, the Collateral Pool Property Documents and any other
instruments, certificates or documents delivered or contemplated to be delivered
hereunder or thereunder or in connection herewith or therewith, as the same may
be supplemented or amended from time to time in accordance herewith or
therewith.

     

    “Loan to
Value Ratio” shall mean the quotient, expressed as a percentage, determined by
dividing the outstanding principal balance of the Loan by the aggregate of the
then current Market Values of the Collateral Pool Properties.  The
Loan to Value Ratio shall be recalculated (a) as of each Loan Request, (b) as of
each Renewal Request, or deemed renewal under Section 3.3.3, (c) on or
before July 1 of each calendar year during the term of this Agreement,
commencing on or about July 1, 2007, (d) as of each addition or deletion of a
property to or from the Collateral Pool, (e) as of each repayment of any
principal portion of the Loan, and (f) upon the occurrence of a Material Adverse
Change.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    “Loan
Request” shall have the meaning given to such term in Section 2.6.

     

    “Margin”
shall mean the sum of the G-Fee and the Servicing Fee.

     

    “Market
Value” shall mean, as to each individual Collateral Pool Property, the Initial
Market Value of such property, as such Market Value may be subsequently
increased or decreased in accordance with the terms and conditions of this
Agreement.

     

    “Material
Adverse Change” shall mean any set of circumstances or events which, in Lender’s
reasonable discretion has a material adverse effect on (i) the validity or
enforceability of this Agreement or the other Loan Documents taken as a whole,
(ii) the financial condition of Borrower or any guarantor, (iii) the financial
condition or Market Value of any Collateral Pool Property, or (iv) the
compliance of any Collateral Pool Property with any Law.

     

    “Maturity
Date” shall mean the first calendar day of the month following the eighth
(8th)
anniversary of the Closing Date.

     

    “Maximum
Facility Available” shall mean, at the time of determination, the maximum amount
which Borrower may borrow under this Agreement without violating the Sublimits
set forth in Section
2.6.1.

     

    “Maximum
Hedged Debt Service” shall mean, the sum of (i) the Maximum Hedged Interest Due,
on an annualized basis over the next succeeding twelve (12) month period, plus
(ii) the principal necessary to fully amortize fifty percent (50%) of the then
outstanding aggregate principal balance of all Borrowing Tranches over a thirty
(30) year period, at a coupon rate equal to the quotient resulting from dividing
the (a) Maximum Hedged Interest Due by (b) fifty percent (50%) of the aggregate
outstanding balance of all Borrowing Tranches, with such amortization deemed to
commence on the first day of the twelve (12) month period.

     

    “Maximum
Hedged Interest Due” shall mean, the sum of  (i) for all Qualifying
Rate Cap Agreements, the product of (a) the notional amount of each Qualifying
Rate Cap Agreement, times (b) the sum of the relevant strike rate plus the
G-Fee, plus the Servicing Fee; plus (ii) for all Qualifying Rate Swap
Agreements, the product of (a) the notional amount of each Qualifying Rate Swap
Agreement, times (b) the sum of the applicable fixed pay rate plus the G-Fee
plus the Servicing Fee.

     

    “Maximum
Loan to Value Ratio” shall mean seventy percent (70%).

     

    “Minimum
Servicing Fee” shall have the meaning set forth in Section 2.5.5.

     

    “Minimum
Usage Fee” shall have the meaning set forth in Section 2.5.4.

     

    “Month”
shall mean the appropriate calendar month.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    “Monthly
Payment Statement” shall have the meaning given to such term in Section 4.2.

     

    “Mortgage
Review Fee” shall mean a non-refundable fee in the amount of Four Thousand and
NO/100 Dollars ($4,000.00) per real property.

     

    “Multiemployer
Plan” shall mean any employee benefit plan which is a “multiemployer plan”
within the meaning of Section 4001(a)(3) of ERISA and to which Borrower or any
member of the ERISA Group is then making or accruing an obligation to make
contributions or, within the preceding five (5) Pension Plan years, has made or
had an obligation to make such contributions.

     

    “Net
Operating Income” shall mean an annualized dollar amount equal to all income
from the operations of the Collateral Pool Properties that is available for
repayment of debt and return of equity after deducting for economic vacancy and
all expenses (exclusive of Facility Debt Service, Credit Enhancement Fees and
payments made or received pursuant to Rate Cap Agreements or Rate Swap
Agreements).  Net Operating Income shall be calculated by Lender for
each individual Collateral Pool Property as of the Closing Date and thereafter
as of July 1, commencing July 1, 2007, of each calendar year during the term of
this Agreement, in accordance with Lender’s then current methodology,
consistently applied, excluding from such calculation expenses from
depreciation, amortization, interest expenses, the cost of any Rate Cap
Agreement or Rate Swap Agreement, non-recurring items (including any costs and
expenses incurred by Borrower in connection with the closing of the Loan), and
capital expenses, but including in such calculation an assumed capital expense
reserve in a reasonable amount consistent with Lender’s then current
requirements for such capital reserves.  In addition, upon the
addition or release of any real property in the Collateral Pool pursuant to the
provisions hereof, Lender shall redetermine Net Operating Income for the
Collateral Pool in the following manner:  (i) in the event of an
addition of a real property to the Collateral Pool, Lender shall add the Net
Operating Income of the real property included in the Collateral Pool to the
then current determination of Net Operating Income for the Collateral Pool; or
(ii) in the event of a release of a real property from the Collateral Pool,
Lender shall subtract the Net Operating Income of the real property released
from the Collateral Pool from the then current determination of Net Operating
Income for the Collateral Pool.

     

    “Net
Worth” means, as of any specified date, for any Person, the excess of the
Person’s assets over the Person’s liabilities, determined in accordance with
GAAP but excluding any adjustment for the value of Rate Cap Agreements or Rate
Swap Agreements, on a consolidated basis, provided that all real property shall
be valued on an undepreciated basis.

     

    “O&M
Programs” shall mean a written program of operations and maintenance for a
Collateral Pool Property approved in writing by Lender.

     

    “Obligation”
shall mean any obligation or liability of Borrower to Lender, howsoever created,
arising or evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing, or due or to become due (including any amounts paid by
Freddie Mac as a result of its credit enhancement of a Rate Swap Agreement),
under or in connection with this Agreement, the Revolving Credit Note or any
other Loan Document, excluding any Permanent Loan or any other liability of
Borrower to Lender not created under this Agreement, the Revolving Credit Note
or the other Loan Documents.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    “Official
Body” shall mean any national, federal, state, local or other government or
political subdivision or any agency, authority, bureau, commission, department
or instrumentality of either, or any court, tribunal, grand jury or arbitrator,
in each case whether foreign or domestic.

     

     “Payment
Date” shall have the meaning given to that term in Section 4.2.

     

    “PBGC”
shall mean the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA or any successor.

     

    “Pension
Plan” shall mean at any time an employee pension benefit plan which is covered
by Title IV of ERISA or is subject to the minimum funding standards under
Section 412 of the Internal Revenue Code and either (i) is maintained by any
member of the ERISA Group for employees of any member of the ERISA Group or (ii)
has at any time within the preceding five (5) years been maintained by any
entity which was at such time a member of the ERISA Group for employees of any
entity which was at such time a member of the ERISA Group.

     

    “Permanent
Loan” shall have the meaning assigned to that term in Section 2.16.1.

     

    “Permanent
Loan Collateral” shall have the meaning assigned to that term in Section 2.16.1.

     

    “Permitted
Exceptions” shall mean:

     

    (a)           Liens
for taxes, assessments, or similar charges, incurred in the ordinary course of
business and which are not yet due and payable;

     

    (b)          Liens
of mechanics, materialmen, warehousemen, carriers, or other like Liens, securing
obligations incurred in the ordinary course of business that are not yet due and
payable;

     

    (c)          Encumbrances
consisting of zoning restrictions, easements or other restrictions on the use of
a real property, none of which (i) materially impairs the use of such property
or the value thereof, (ii) is violated in any material respect by existing or
proposed structures or land use or (iii) impairs Borrower’s ability to rebuild,
repair or restore any improvements located on a Collateral Pool Property
following a casualty;

     

    (d)          Liens,
security interests and mortgages in favor of Lender for the benefit of
Lender;

     

    (e)          Encumbrances
listed as exceptions to Lender’s title insurance policies for the Collateral
Pool Properties and any such other title and survey exceptions as Lender has
approved or may approve in writing in Lender’s sole discretion; and

     

    (f)           Rights
of tenants under residential leases.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    “Permitted
Transfer” shall have the meaning set forth in the Security
Instrument.

     

    “Person”
shall mean any individual, corporation, partnership, limited liability company,
association, joint-stock company, trust, unincorporated organization, joint
venture, government or political subdivision or agency thereof, or any other
entity.

     

    “Potential
Default” shall mean any event or condition which, with the passage of time, the
giving of notice, or a determination by Lender, or any combination of the
foregoing, would constitute an Event of Default.

     

    “Preferred
Distributions” means, for any period, the amount of any and all distributions
due and payable to the holders of any form of preferred stock (whether
perpetual, convertible or otherwise) or other ownership or beneficial interest
in Borrower or any of its subsidiaries that entitles the holders thereof to
preferential payment or distribution priority with respect to dividends, assets
or other payments over the holders of any other stock or other ownership or
beneficial interest in such Person.

     

    “Prepayment
Fee”  shall have the meaning set forth in Section 4.4.

     

    “Prime
Rate” shall mean the rate of interest per annum established on the first day of
each Month during the term hereof and published in The Wall Street Journal as
the prime rate, or any comparable publication reasonably selected by Lender in
the event The Wall Street Journal no longer publishes the prime
rate.

     

    “Prime
Rate Borrowing Tranche” shall mean any Borrowing Tranche which accrues interest
at the Prime Rate.

     

    “Prohibited
Transaction” shall mean any prohibited transaction as defined in
Section 4975 of the Internal Revenue Code or Section 406 of ERISA for
which neither an individual nor a class exemption has been issued by the United
States Department of Labor.

     

    “Property
Borrower” shall mean each Borrower who owns or leases a Collateral Pool
Property.

     

    “Proposed
Borrower” shall mean an Affiliate of Borrower that is the owner of a property
which has been proposed to be included in the Collateral Pool, pursuant to the
terms hereof.

     

    “Qualifying
Rate Cap Agreement” shall mean a Rate Cap Agreement which (i) is purchased at
Borrower’s sole expense from a rate cap provider approved by Lender for the sole
benefit of Borrower and Lender, with all fees and expenses paid at the time such
Rate Cap Agreement is purchased and/or executed, (ii) is assigned to Lender as
collateral for the Loan, (iii) is delivered on Lender’s standard documents, (iv)
provides that Lender shall receive payments thereunder, payable on the Payment
Date(s) set forth in Section
4.2 of this Agreement, equal to the product of (a) the stipulated
notional amount times (b) the excess, if any, of the stipulated LIBO Rate as of
any applicable Payment Date, over the stipulated strike rate, (v) has an initial
term expiring no earlier than the earlier to occur of (x) that date which is
five (5) years from the date such Rate Cap Agreement is assigned to Lender, or
(y) the Maturity Date, (vi) cannot be terminated or canceled prior to the
expiration of its initial term without Lender’s prior consent, which may be
withheld in Lender’s sole discretion and (vii) is purchased within ten (10) days
of the addition of any Collateral to the Collateral Pool which increases the
amount that Borrower is permitted to borrow under the Loan.

     

    
      
         

      

      
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    “Qualifying
Rate Swap Agreement” shall mean a Rate Swap Agreement which (i) is purchased at
Borrower’s sole expense from a counterparty approved by Lender for the sole
benefit of Borrower and Lender, with all fees and expenses paid at the time such
Rate Swap Agreement is purchased and/or executed, (ii) is assigned to Lender as
collateral for the Loan, (iii) is delivered on Lender’s standard documents, (iv)
provides that Lender shall receive payments thereunder, payable on the Payment
Date(s) set forth in Section
4.2 of this Agreement equal to the product of (a) the stipulated notional
amount times (b) the stipulated LIBO Rate, which shall be either the thirty (30)
day or the ninety (90) day LIBO Rate, regardless of the duration of any then
outstanding Borrowing Tranche, (v) has an initial term expiring no earlier than
the earlier to occur of (x) that date which is five (5) years from the date such
Rate Swap Agreement is assigned to Lender, or (y) the Maturity Date, (vi) is
credit-enhanced by Freddie Mac pursuant to Section 4.5.3 hereof, (vii)
cannot be terminated or canceled prior to the expiration of its initial term
without Lender’s prior consent, which may be withheld in Lender’s sole
discretion and (viii) is purchased within ten (10) days of the addition of any
Collateral to the Collateral Pool which increases the amount that Borrower is
permitted to borrow under the Loan..

     

    “Rate Cap
Agreement” shall mean an agreement, device or arrangement designed to protect
Borrower from fluctuations of interest rates, including interest rate cap or
collar protection agreements or interest rate options.

     

    “Rate
Contracts” means interest rate and currency swap agreements, cap, floor and
collar agreements, interest rate insurance, currency spot and forward contracts
and other agreements or arrangements designed to provide protection against
fluctuations in interest or currency exchange rates.

     

    “Rate
Swap Agreement” shall mean an agreement, device or arrangement designed to
protect Borrower from fluctuations of interest rates, pursuant to which Borrower
agrees to pay to the applicable counterparty the product of (i) the stipulated
fixed pay rate times (ii) the stipulated notional amount, and the counterparty
agrees to pay to or for the benefit of Borrower the product of (x) the
stipulated LIBO Rate times (y) the stipulated notional amount.

     

    “Reference
BillsSM” shall mean the unsecured general obligations of Freddie Mac designated
by Freddie Mac as “Reference BillsSM” and issued by Freddie Mac at regularly
scheduled auctions.  In the event Freddie Mac shall at any time cease
to designate any unsecured general obligations of Freddie Mac as “Reference
BillsSM”, Lender shall be permitted to exercise its rights under Section 3.4.

     

    
      
         

      

      
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    “Reference
BillsSM Rate” shall mean, with respect to each Base Rate Borrowing Tranche, the
“Money Market Yield” (or any equivalent terms designated by Lender) applicable
to the Reference BillsSM (i) having an original maturity most comparable to the
term of the Interest Period for the applicable Borrowing Tranche and (ii) issued
at the most recently conducted regularly scheduled auction preceding the
commencement of the Interest Period for such Borrowing Tranche, as the same is
displayed (a) on the Reference Bill Index Page (i.e. the Freddie Mac debt
securities web page accessed via the Freddie Mac website at www.freddiemac.com),
or (b) at the option of Lender, in any publication of Reference BillsSM auction
results designated by Freddie Mac.  Notwithstanding any of the
foregoing to the contrary, in the event Freddie Mac shall not have conducted a
regularly scheduled auction of unsecured general obligations within the sixty
(60) day period prior to the first day of the Interest Period for any Base Rate
Borrowing Tranche requested under Sections 2.6 or 3.3 hereof, the Reference
BillsSM Rate shall be deemed to be unascertainable and Lender shall be permitted
to exercise its rights under Section 3.4.

     

    “Renewal
Date” shall have the meaning given to such term in Section 3.3.3.

     

    “Renewal
Request” shall have the meaning given to such term in Section 3.3.3.

     

    “Replacement
Hedge Escrow” shall have the meaning given to such term in Section 4.5.2.

     

    “Reportable
Event” shall mean a reportable event described in Section 4043 of ERISA and
regulations thereunder with respect to a Pension Plan or Multiemployer
Plan.

     

    “Required
Hedge Amount” shall mean fifty percent (50%) of the outstanding principal
balance of the Loan.

     

    “Revolving
Credit Note” shall mean the Multifamily Note of Borrower, in the face amount of
the Commitment, which evidences the Loan, together with all amendments,
extensions, renewals, replacements, refinancings or refundings thereof in whole
or in part.

     

    “Scheduled
Amortization” means, with respect to any Person, the sum, as of any date of
determination, of the current portion (i.e., such portion as is scheduled to be
paid by the obligor thereof within twelve (12) months from the date of
determination) of all regularly scheduled amortization payments due on such
Person’s long-term fully amortizing mortgage Indebtedness (exclusive of balloon
payments).

     

    “Security
Instrument” shall mean any mortgage, deed of trust, or deed to secure debt
securing any of the Collateral Pool Property(ies), or any pledge, assignment or
control agreement securing any Qualifying Rate Cap Agreement or Qualifying Rate
Swap Agreement.

     

    “Seismic
Report” shall mean a report in form and substance satisfactory to Lender, made
by an inspector of Lender’s choosing, which assesses the earthquake risk of
proposed Collateral Pool Properties. Seismic Reports shall be ordered by Lender
at Borrower’s expense.

     

    “Seismic
Report Fee” shall mean a non-refundable fee equal to Lender’s reasonable
out-of-pocket costs and expenses incurred in obtaining a seismic report with
respect to any real property proposed for addition to the Collateral Pool for
which Lender, in its discretion, deems such report necessary.  Lender
currently requires a Seismic Report Fee of Five Hundred and NO/100 Dollars
($500.00) for each real property located in the states of California, Washington
and Oregon.

     

    
      
         

      

      
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    “Senior
Management” shall mean (i) any Person holding the office of Chief Executive
Officer, Chair of the Board, President or Chief Financial Officer of REIT or
(ii) any other Person with responsibility for any of the functions typically
performed in a corporation by the officers described in clause (i).

     

    “Servicer”
shall mean Financial Federal Savings Bank, or any subsequent independent
contractor appointed by Lender, at Lender’s sole cost and expense, to administer
the Loan and the Loan Documents or otherwise perform certain functions in
connection therewith under the terms of a Servicing
Agreement.  Pursuant to the terms of any Servicing Agreement, Lender
may designate Servicer to perform some or all of Lender’s obligations under this
Agreement, the Revolving Credit Note and the other Loan Documents.

     

    “Servicing
Agreement” shall mean any agreement between Lender and an independent contractor
pursuant to which Lender appoints said independent contractor as Servicer under
this Agreement, the Revolving Credit Note and the other Loan
Documents.

     

    “Servicing
Fee” shall mean an annual fee of seven basis points (.0007).

     

    “Servicing
Fee Payment” shall mean the product of the Servicing Fee times the principal
amount of the Borrowing Tranches then outstanding for each applicable Interest
Period.

     

     “Solvent”
shall mean, with respect to any Person on a particular date, that on such date
(i) the fair value of the assets of such Person is greater than the total amount
of liabilities, including, without limitation, contingent liabilities, of such
Person, (ii) the present fair saleable value of the assets of such Person is not
less than the amount that will be required to pay the probable liability of such
Person on its debts as they become absolute and matured, (iii) such Person is
able to realize upon its assets and pay its debts and other liabilities,
contingent obligations and other commitments as they mature in the normal course
of business, (iv) such Person does not intend to, and does not believe that it
will, incur debts or liabilities beyond such Person’s ability to pay as such
debts and liabilities mature, and (v) such Person is not engaged in business or
a transaction, and is not about to engage in business or a transaction, for
which such Person’s property would constitute unreasonably small capital after
giving due consideration to the prevailing practice in the industry in which
such Person is engaged.  In computing the amount of contingent
liabilities at any time, it is intended that such liabilities will be computed
at the amount which, in light of all the facts and circumstances existing at
such time, represents the amount that can reasonably be expected to become an
actual or matured liability of such Person after giving effect to any rights of
contribution, subrogation or indemnification of such Person.

     

    “Streamlined
Refinancing Program” shall mean Lender’s then current program for refinancing a
performing loan in its loan portfolio.

     

    “Sublimits”
shall have the meaning assigned to that term in Section 2.6.1.

     

    
      
         

      

      
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    “Total
Indebtedness” means, as of any date of determination, and in respect of any
Person, all outstanding Indebtedness, and shall include, without limitation: (i)
such Person’s share of the Indebtedness of any partnership or joint venture in
which such Person directly or indirectly holds any interest, and (ii) any
recourse or contingent obligations, directly or indirectly, of such Person with
respect to any Indebtedness of such partnership or joint venture in excess of
its proportionate share.  Notwithstanding the foregoing, (x)
Intra-Company Debt, and (y) accounts payable to trade creditors for goods and
services and current operating liabilities (not the result of the borrowing of
money) incurred in the ordinary course of business in accordance with customary
terms and paid within the specified time, shall be excluded from the calculation
of “Total Indebtedness” but shall not otherwise be excluded as Indebtedness for
any other purpose hereof.

     

    “Treasury
Rate” shall mean the yield rate as of the date which is five (5) Business Days
prior to the Expiration Date, on a U.S. Treasury Security with a term of five
(5) years and a maturity date most nearly approximating the Maturity Date, as
reported in The Wall Street Journal, expressed as a decimal calculated to five
(5) digits.  In the event no yield is published on the applicable date
for such Treasury Security, Lender, in its discretion, shall select the
non-callable U.S. Treasury Security maturing in the same year as the Maturity
Date with the lowest yield published in The Wall Street Journal as of the
applicable date.  If the publication of such yield rate in The Wall
Street Journal is discontinued for any reason, Lender shall, in its discretion,
select a security with a comparable rate and term to a U.S. Treasury Security
with a term of five (5) years and a maturity date most nearly approximating the
Maturity Date.

     

    “Underwriting
Materials” shall mean all materials required by Lender pursuant to Lender’s then
current loan underwriting requirements.

     

    “Uniform
Commercial Code” shall have the meaning assigned to that term in Section 6.1.13.

     

    “Unused
Facility Fee” shall have the meaning assigned to that term in Section 2.5.3.

     

    “Valuation”
shall have the meaning set forth in Section 2.13.

     

    “Voting
Equity Capital” shall mean securities or partnership interest of any class or
classes, the holders of which are ordinarily, in the absence of contingencies,
entitled to elect a majority of the board of directors (or Persons performing
similar functions).

     

    1.2.         Construction.

     

    Unless
the context of this Agreement otherwise clearly requires, the following rules of
construction shall apply to this Agreement and each of the other Loan
Documents.

     

    1.2.1.      Number;
Inclusion.

     

    References
to the plural include the singular, the plural, the part and the whole; “or” has
the inclusive meaning represented by the phrase “and/or”, and “including” has
the meaning represented by the phrase “including without
limitation”;

     

    1.2.2.      Determination.

     

    References
to “determination” of or by Lender shall be deemed to include good-faith
estimates by Lender (in the case of quantitative determinations) and good-faith
beliefs by Lender (in the case of qualitative determinations) and such
determinations shall be conclusive absent manifest error;

     

    
      
         

      

      
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    1.2.3.      Lender’s
Discretion and Consent; References to Lender’s Requirements.

     

    Whenever
Lender is granted the right herein to act in its sole discretion or to grant or
withhold consent, such right shall be exercised in good faith, and whenever a
reference is made to “Lender’s then current requirements”, “Lender’s then
current programs” or the like, such reference shall be deemed to mean such
requirements, programs and the like as are then standard in the secondary
multifamily mortgage industry, as such standards are generally reflected in the
then current version of the Freddie Mac Multifamily Seller/Servicer
Guide;

     

    1.2.4.      Documents
Taken as a Whole.

     

    The words
“hereof,” “herein,” “hereunder,” “hereto” and similar terms in this Agreement or
any other Loan Document refer to this Agreement or such other Loan Document as a
whole and not to any particular provision of this Agreement or such other Loan
Document;

     

    1.2.5.      Headings.

     

    The
section and other headings contained in this Agreement or such other Loan
Document and the Table of Contents preceding this Agreement or such other Loan
Document are for reference purposes only and shall not control or affect the
construction of this Agreement or such other Loan Document or the interpretation
thereof in any respect;

     

    1.2.6.      Implied
References to this Agreement.

     

    Article,
section, subsection, clause, and schedule references are to this Agreement
unless otherwise specified, and schedules attached hereto are incorporated
herein by this reference;

     

    1.2.7.      Persons.

     

    Reference
to any Person includes such Person’s successors and assigns (but only if such
successors and assigns are permitted by this Agreement or such other Loan
Document, as the case may be), and reference to a Person in a particular
capacity excludes such Person in any other capacity;

     

    1.2.8.      Modifications
to Documents.

     

    Reference
to any agreement (including this Agreement and any other Loan Document together
with any schedules and exhibits hereto or thereto), document or instrument means
such agreement, document or instrument as amended, modified, replaced,
substituted for, superseded or restated;

     

    1.2.9.      From,
To and Through.

    
      
         

      

      
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    Relative
to the determination of any period of time, “from” means “from and including”,
“to” means “to but excluding”, and “through” means “through and including”;
and

     

    1.2.10.    Conflicts
with Other Loan Documents.

     

    In the
event of any conflict between the terms and provisions of this Agreement and any
other Loan Document, the terms and provisions of this Agreement shall
prevail.

     

    1.3.         Accounting
Principles.

     

    Except as
otherwise provided in this Agreement, all computations and determinations as to
accounting or financial matters and all financial statements to be delivered
pursuant to this Agreement shall be made and prepared in accordance with GAAP
(including principles of consolidation where appropriate) and all accounting or
financial terms shall have the meanings ascribed to such terms by
GAAP.  In the event of any change after the date hereof in GAAP, and
if such change would result in the inability to determine compliance with any
financial covenants set forth herein, then the parties hereto agree to endeavor,
in good faith, to agree upon an amendment to this Agreement that would adjust
such financial covenants in a manner that would not affect the substance
thereof, but would allow compliance therewith to be determined in accordance
with Borrower’s financial statements at that time.

     

    2.           REVOLVING
CREDIT FACILITY

     

    2.1.        Revolving
Credit Commitment.

     

    Subject
to the terms and conditions hereof and relying upon the representations and
warranties herein set forth, Lender agrees to advance funds to Borrower at any
time or from time to time during the term hereof, provided that after giving
effect to any particular advance the Loan amount outstanding at any one time
shall not exceed the amount which would be permitted to be outstanding under the
Sublimits.  Within such limits of time and amount and subject to the
other provisions of this Agreement, Borrower may borrow, repay and reborrow
pursuant to this Section
2.1.  All advances under this Agreement constitute a single
indebtedness, and all of the Collateral is security for the Revolving Credit
Note and for the performance of all of the Obligations.

     

    2.2.         Multi-Asset
Entities.  Lender acknowledges that Collateral Pool Properties
included in and added to the Collateral Pool will not be owned by single-asset,
special-purpose entities. Borrower and Borrower’s subsidiaries currently own and
expect to continue to own assets other than those securing the Loan, and some
assets held by Borrower and Borrower’s subsidiaries are pledged as collateral
for purposes other than the Loan, including for the purpose of securing debt
held by other lenders.

     

    2.3.         Term.

     

    2.3.1.      The
term of the Loan shall commence on the Closing Date and terminate on the
Expiration Date unless otherwise terminated earlier pursuant to the provisions
hereof.

     

    
      
         

      

      
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    2.3.2.      Notwithstanding
anything contained herein to the contrary, provided there is no Event of
Default, Borrower may make a one time election by written notice served upon
Lender no less than sixty (60) days prior to the Maturity Date, to extend the
term of the Loan such that it shall terminate on the fifth (5th)
anniversary of the Maturity Date; such extension shall be subject to (i)
Lender’s approval, (ii) implementation of a revised schedule of G-Fees to be
determined by Lender in Lender’s sole discretion at the time of Borrower’s
election hereunder, and (iii) Borrower’s payment of applicable fees charged by
Lender pursuant to its then current policies. In the event Borrower shall not
accept the revised schedule of G-Fees or pay the applicable fees to be paid
pursuant to this Section
2.3.2 on or before the Maturity Date, the Loan shall terminate pursuant
to Section
2.3.1.

     

    2.4.         Nature
of Lender’s Obligations with Respect to the Loan.

     

    Subject
to the provisions of this Agreement, the aggregate amount of the Loan
outstanding hereunder at any time shall never exceed the amount which would be
permitted to be outstanding under the Sublimits.  Lender shall have no
obligation to make any advance hereunder on or after the Business Day next
preceding the Expiration Date.  While a Potential Default, Event of
Default or Material Adverse Change exists, Lender may refuse to make any
additional advances to Borrower.

     

    2.5.         Fees.

     

    2.5.1.      Fees
Paid Prior to the Closing Date.

     

    Lender
acknowledges that, in addition to Borrower’s obligations under Section 5.1.6, Borrower has
paid to Lender, as consideration for Lender’s costs in underwriting the
transaction contemplated hereby, a Mortgage Review Fee and a Seismic Report Fee,
if and as applicable, for each property described at Schedule 1.1(A) and proposed
by Borrower to be included in the Collateral Pool on the Closing Date. The
Seismic Report will be ordered by Lender at Borrower’s expense.

     

    2.5.2.      Fees
Due on the Closing Date.

     

    2.5.2.1.            Borrower
shall pay to Financial Federal a non-refundable transaction fee equal to forty
basis points (.0040) times the Commitment, to be paid at a rate of forty basis
points (.0040) times seventy percent (70%) of the Initial Market Value of each
property as it is added to the Collateral Pool pursuant to the terms and
conditions of Section
2.10, provided that the unpaid portion of such fee shall be paid to
Financial Federal in full on the first (1st)
anniversary of the Closing Date.  If no properties are included within
the Collateral Pool on the Closing Date, no fee shall be due and payable to
Financial Federal at that time.

     

    2.5.2.2.            Borrower
shall pay to Freddie Mac a non-refundable transaction fee equal to the product
of twenty-five basis points (.0025) times the Commitment to be paid as follows:
(i) Two Hundred Fifty Thousand and NO/100 Dollars ($250,000.00) shall be paid on
the Closing Date, and (ii) the balance of which shall be paid upon each addition
of a property to the Collateral Pool pursuant to the terms and conditions of
Section 2.10, at a rate
equal to the product of twenty-five basis points (.0025) times seventy percent
(70%) of the Initial Market Value of each such property after crediting the
amount previously paid at the Closing, provided that in the event Borrower has
not paid the balance of the transaction fee referenced in (ii) above prior to
the first anniversary of the Closing Date, the unpaid portion of such balance
shall be paid to Freddie Mac in full on the first (1st)
anniversary of the Closing Date.

     

    
      
         

      

      
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    2.5.3.      Unused
Facility Fee.

     

    Borrower
agrees to pay to Lender, as consideration for Lender’s Commitment hereunder, a
nonrefundable unused facility fee (the “Unused Facility Fee”) equal to fifteen
basis points (.0015) per annum (computed on the basis of a year of three hundred
and sixty (360) days and actual days elapsed) on the average daily difference
between the amount of either  (i) the Commitment and (ii) the
outstanding principal amount of the Loan. Except as otherwise provided pursuant
to Section 2.14, with
respect to liquidated Unused Facility Fees, all Unused Facility Fees shall be
payable monthly in arrears on each Payment Date and shall be set forth on the
applicable Monthly Payment Statement.  Unused Facility Fee payments
which cover less than one (1) month shall be prorated based on the actual number
of days elapsed.  Any accrued but unpaid Unused Facility Fees shall
also be due and payable on the Expiration Date.  Notwithstanding
anything in the foregoing to the contrary, the Unused Facility Fee shall begin
to accrue only from and after the date which is twelve (12) months after the
Closing Date.

     

    2.5.4.      Minimum
Usage Fee.

     

    Accruing
from twelve (12) months after the Closing Date until the Expiration Date,
Borrower agrees to pay to Lender, to the extent the Deemed Minimum Loan Amount
exceeds the actual average annual Loan amount outstanding during the applicable
computation period, as further consideration for Lender’s commitment hereunder,
a nonrefundable minimum usage fee (the “Minimum Usage Fee”) equal to the product
obtained by multiplying (i) such excess times (ii) the lowest G-Fee plus the
Servicing Fee.  The Minimum Usage Fee shall be computed for each
calendar year, or part thereof, during the term of this Agreement and shall be
payable, if at all, in arrears on the Payment Date scheduled for January of each
year of the term hereof, provided that any Minimum Usage Fee due in the year in
which the Expiration Date falls shall be due and payable on the Expiration Date.
Upon termination or acceleration of the Loan as provided herein, Borrower shall
pay the liquidated Minimum Usage Fee computed in accordance with Section
2.14.2.  Minimum Usage Fee payments which cover a period of
less than one (1) calendar year shall be prorated based on the actual number of
days elapsed.

     

    2.5.5.      Minimum
Servicing Fee.

     

    Accruing
from the Closing Date until the Expiration Date, Borrower agrees to pay to
Servicer a nonrefundable minimum servicing fee (the “Minimum Servicing Fee”)
equal to the product obtained by (i) an assumed Borrowing Tranche in an amount
equal to the Deemed Minimum Loan Amount times (ii) the Servicing Fee, provided
that the Minimum Servicing Fee shall be due and payable only if, and to the
extent that, the foregoing calculation results in an amount which is greater
than the Servicing Fee Payment actually paid by Borrower during the same
computation period.  The Minimum Servicing Fee shall be computed for
each calendar year, or part thereof, during the term of this Agreement and shall
be payable, if at all, in arrears on the Payment Date scheduled for January of
each year of the term hereof, provided that any Minimum Servicing Fee due in the
year in which the Expiration Date falls shall be due and payable on the
Expiration Date.  Upon termination or acceleration of the Loan as
provided herein, Borrower shall pay the liquidated Minimum Servicing Fee
computed in accordance with Section
2.14.2.  Minimum Servicing Fee payments which cover a period of
less than one (1) calendar year shall be prorated based on the actual number of
days elapsed.  Notwithstanding the characterization assigned to the
payments under this Section
2.5.5, such payment obligation shall be deemed interest payable under the
Agreement for the purpose of calculating the Facility Debt Service.

     

    
      
         

      

      
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    2.6.         Loan
Requests.

     

    Except as
otherwise provided herein, Borrower may from time to time prior to the
Expiration Date request Lender to make an advance to the extent of the Maximum
Facility Available less the Loan, by delivering to Lender via facsimile, a
request therefor (a
“Loan Request”) fully completed, authorized and executed by Servicer and an
Authorized Officer of Borrower, all in the form attached hereto as Schedule
2.6.  Borrower may at any one time submit one (1) or more Loan
Requests; each Loan Request shall specify the items set forth on Schedule 2.6, including, but
not limited to, (i) the proposed Borrowing Date (which Borrowing Date shall be
in accordance with the requirements of Section 2.7); (ii) the amount
of the proposed Borrowing Tranche, which shall each not be less than Three
Million Dollars and NO/100 Dollars ($3,000,000.00) unless otherwise approved by
Lender in its sole discretion; and (iii) in the case of a Loan Request for a
Base Rate Borrowing Tranche, (a) the Interest Period for purposes of determining
the Reference BillsSM Rate (or such alternative index as may be selected by
Lender in accordance with the provisions of Section 3.4); and (b) the Base
Rate, including the Reference BillsSM Rate (or such alternative index as may be
selected by Lender in accordance with the provisions of Section 3.4) and Margin that
comprise such Base Rate.

     

    2.6.1.      Sublimits.

     

    Notwithstanding
anything to the contrary set forth herein, Borrower may borrow hereunder only to
the extent that after giving effect to such borrowing (collectively, the
“Sublimits”):

     

    2.6.1.1.       the
Loan to Value Ratio shall not exceed seventy percent (70%) (the “Maximum Loan to
Value Ratio”);

     

    2.6.1.2.       the
Facility Debt Service Coverage Ratio shall not be less than 1.20 :
1.00.

     

    2.6.1.3.       the
number of Borrowing Tranches outstanding shall not exceed fifteen
(15);

     

    2.6.1.4.       the
Loan shall not exceed the Commitment; and

     

    2.6.1.5.       one
or more Qualifying Rate Cap Agreements and/or Qualifying Rate Swap Agreements
shall be maintained with (i) an aggregate notional amount equal to the Required
Hedge Amount and (ii) a Hedged Debt Service Coverage Ratio of no less than
1.20:1.00.

     

    
      
         

      

      
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    Notwithstanding
the foregoing, in the event Borrower shall fail to comply with any of the
Sublimits described in Section
2.6.1.1, Section
2.6.1.2 or Section
2.6.1.5, at any time prior to the Expiration Date, Borrower shall be
entitled to renew or consolidate (but not increase the outstanding principal
amount of) such existing outstanding Borrowing Tranches or convert the Prime
Rate Borrowing Tranche (if then outstanding) to a Base Rate Borrowing Tranche,
in each instance, with an Interest Period of thirty (30) days, provided that,
(i) as of the date of such renewal or consolidation (a) no Event of Default or
Material Adverse Change, other than Borrower’s failure to comply with Section 2.6.1.1, Section 2.6.1.2 or Section 2.6.1.5 shall then
exist, (b) Borrower’s failure to comply with Section 2.6.1.1, Section 2.6.1.2 or Section 2.6.1.5 shall have
been for a period of less than ninety (90) days, and (c) Borrower is otherwise
in full compliance with all other terms and conditions of the Loan Documents and
(ii) throughout the period of Borrower’s non-compliance with Section 2.6.1.1, Section 2.6.1.2 or Section 2.6.1.5 Borrower shall
comply with the provisions of Section 4.5. Borrower may
assure compliance with Section
2.6.1.1, Section
2.6.1.2 or Section
2.6.1.5 pursuant to the provisions of Section 4.3. Notwithstanding
the foregoing, Borrower shall not be permitted to convert a Base Rate Borrowing
Tranche to the Prime Rate Borrowing Tranche during any period of non-compliance
with the provisions of Section
2.6.1.1, Section
2.6.1.2 or Section
2.6.1.5.

     

    2.7.         The
Loan.

     

    After
receipt by Lender of a Loan Request pursuant to Section 2.6, and subject to
the Sublimits of Section
2.6.1 and the provisions of Section 5.2, Lender, relying
on the truth and accuracy of the matters set forth in the Loan Request (but
without any obligation to inquire into the truth and accuracy of such matters),
shall fund the amount requested in such Loan Request to Borrower in U.S. Dollars
and immediately available funds on the Borrowing Date. The Borrowing Date shall
be the Business Day set forth in the Loan Request, provided that such date is at
least two (2) but not more than five (5) Business Days after the date of the
Loan Request.  Lender shall fund the amounts requested in any Loan
Request by 3:00 p.m. Eastern Time on the Borrowing Date.

     

    2.8.         Revolving
Credit Note.

     

    The
obligation of Borrower to repay the aggregate unpaid principal amount of the
Loan, together with interest thereon, shall be evidenced by the Revolving Credit
Note dated the Closing Date payable to the order of Lender in a face amount
equal to the Commitment.

     

    2.9.         Use
of Proceeds.

     

    The
proceeds of the Loan may be used for any lawful purpose and as set forth in
Borrower’s organizational documents.

     

    2.10.       Additions
to the Collateral Pool.

     

    2.10.1.    Procedure
for Proposing a Real Property Addition to the Collateral Pool.

     

    
      
         

      

      
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    Borrower
or Proposed Borrower, as the case may be, may propose to add one or more fully
stabilized, investment quality, multi-family real properties to the Collateral
Pool by delivering to Lender (i) a written proposal for addition of the proposed
real property(ies), (ii) a Mortgage Review Fee for each proposed real property,
(iii) a Seismic Report Fee, if and as applicable, for each proposed real
property and (iv) the Underwriting Materials with respect to the proposed real
property(ies) and with respect to Proposed Borrower, if applicable, provided
that, no more than two (2) such proposals shall be submitted to Lender in any
one (1) Month.  Upon Lender’s receipt of the Mortgage Review Fee, the
Seismic Report Fee, if and as applicable, and all Underwriting Materials, Lender
shall notify Borrower or Proposed Borrower of the same.  The
determination of whether Borrower or Proposed Borrower has provided Lender with
all Underwriting Materials shall be in Lender’s discretion.  For
purposes of this Section
2.10, Borrower or Proposed Borrower may submit a multi-family real
property for addition to the Collateral Pool, if Borrower or Proposed Borrower
has a contract to purchase such real property, provided that Borrower or
Proposed Borrower consummates the purchase of such real property on or before
the date such real property is proposed to be added to the Collateral
Pool.  Both the Mortgage Review Fee and the Seismic Report Fee, if
any, shall be deemed earned upon delivery thereof, whether or not Lender
approves or disapproves such real property for addition
hereunder.  Borrower shall pay all reasonable costs and expenses that
Lender and Servicer incur in connection with any such proposal to add a real
property to the Collateral Pool, including, but not limited to, reasonable
attorney’s fees and any reasonable costs and expenses incurred with respect to
third party reports, whether or not Lender approves or disapproves such real
property for addition hereunder.

     

    2.10.2.    Procedure
for Adding a Real Property to the Collateral Pool.

     

    2.10.2.1.     With
respect to any multi-family real property that Borrower or Proposed Borrower, as
the case may be, proposes for addition to the Collateral Pool, Lender shall
employ a procedure similar to its early rate lock underwriting procedures, to
provide for a preliminary review and nonbinding indication of the preliminary
loan amount and interest rate.  Thereafter, within fifty (50) days of
the date on which Lender notifies Borrower or Proposed Borrower that it has
received all Underwriting Materials, Lender shall use its best efforts to accept
or reject in writing the proposed real property on the basis of whether such
proposed real property meets Lender’s then current requirements for addition to
the Collateral Pool, and in the event that Lender accepts the proposed real
property for addition to the Collateral Pool, Lender shall use its best efforts
to add such real property in the Collateral Pool within twenty (20) days of the
date of such acceptance, subject to Borrower’s or Proposed Borrower’s timely
performance of all obligations listed under Section
2.10.2.2.  Each property must pass Lender’s own assessment of
earthquake risk to be included in the Collateral Pool. Notwithstanding anything
contained herein to the contrary, no real property shall be submitted for
addition which (i) will yield an Additional Collateral Facility (to be
determined by Lender in accordance with its underwriting policies and
procedures, utilizing a capitalization of net operating income to determine
value) of less than Three Million and NO/100 Dollars ($3,000,000.00) or (ii) is
not fully stabilized.  The failure of Lender to respond to Borrower’s
or Proposed Borrower’s request within such fifty (50) day period shall be deemed
a rejection by Lender of the proposal to add the real property to the Collateral
Pool.  If Lender provide(s) the reason(s) for such rejection, Borrower
or Proposed Borrower shall have forty-five (45) days to cure or otherwise
resolve to the satisfaction of Lender, the objections of Lender to such proposed
real property (Lender, in its sole discretion, may require that Borrower provide
within such forty-five (45) day cure period necessary updates of any or all of
the Underwriting Materials).  If Borrower or Proposed Borrower does
not satisfy Lender’s objections, then such proposal shall be deemed terminated
(unless Lender, in its sole discretion shall opt to extend such forty-five (45)
day cure period) provided that, any such termination shall not prevent Borrower
or Proposed Borrower from subsequently resubmitting a real property (together
with a Mortgage Review Fee, a Seismic Report Fee, if and as applicable, and the
Underwriting Materials) for addition to the Collateral
Pool.  Notwithstanding anything contained in the foregoing to the
contrary, under no circumstances shall the addition of any real property
increase the amount of the Commitment.

     

    
      
         

      

      
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    2.10.2.2.     Upon
the date of acceptance by Lender under Section 2.10.2.1 of a
multi-family real property submitted for addition to the Collateral Pool (such
acceptance to be in writing, together with Lender’s determination of the Initial
Market Value of such real property and the Net Operating Income of such
property), whether following the initial proposal of such real property or after
satisfying any objections of Lender, such real property shall be added to the
Collateral Pool, provided that, prior to such addition (or in the instance of
the documents required under item (iii)(b) below, as soon as practicable after
such addition), Borrower or Proposed Borrower shall (i) pay the Addition Fee
pursuant to Section
2.10.3, (ii) pay all reasonable costs and expenses that Lender or
Servicer incur in connection with the inclusion of such real property,
including, but not limited to, reasonable attorney’s fees, and (iii) submit the
following to Lender: (a) all Collateral Pool Property Documents requested by
Lender, fully executed and where appropriate duly acknowledged and filed of
record in the appropriate official public records, (b) copies of all filing
receipts and acknowledgements issued by any governmental authority evidencing
any recordation or filing necessary to perfect Lender’s Lien on the subject real
property or other evidence satisfactory to Lender of such recordation and filing
of the applicable Security Instrument, (c) evidence satisfactory to Lender that,
subject to the Permitted Exceptions, (1) in the case of personal property, the
Lien constitutes a first priority security interest in favor of Lender and, (2)
in the case of real property, the Security Instrument constitutes a valid and
perfected first priority Lien in favor of Lender (such evidence to be in the
form of a title insurance policy acceptable to Lender in both form and
substance), and (d) an opinion of counsel acceptable to Lender and (iv) in the
case of a Proposed Borrower, such Proposed Borrower shall execute (a) an allonge
to the Revolving Credit Note and (b) a joinder agreement, both of which shall be
in form and substance satisfactory to Lender in its sole
discretion.  If Borrower or Proposed Borrower fails to perform any of
the acts, where applicable, or to submit any of the documents and evidence
listed under (i), (ii), (iii) and (iv) above together with any and all updates
to the Underwriting Materials reasonably requested by Lender within forty-five
(45) days of the date of Lender’s acceptance, Lender may at its option reject
the proposed real estate property and terminate such proposal.  In the
event that Borrower or Proposed Borrower performs all of the acts and submits
all of the documents and evidence listed in (i), (ii), (iii) and (iv) above
within forty-five (45) days of the date of Lender’s acceptance, the proposed
real estate property shall be added to the Collateral Pool.

     

    2.10.3.    Addition
Fee.

     

    In
addition to other fees due and payable hereunder, including without limitation,
fees due pursuant to Section
2.5.2, Borrower shall pay a fee (the “Addition Fee”) equal to ten basis
points (.0010) times the product of (i) the Market Value of the property added
to the Collateral Pool in accordance with this Section 2.10 and (ii) the
Maximum Loan to Value Ratio, provided that (a) no such fee shall be payable in
connection with an addition until such time as the Deemed Maximum Facility
Available exceeds the Commitment and (b) at such time as the Deemed Maximum
Facility Available exceeds the Commitment, the Market Value described in (i)
above shall equal the Market Value of the property being added to the Collateral
Pool less any portion of such value necessary to cause the Deemed Maximum
Facility Available to equal the Commitment.

     

    
      
         

      

      
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    2.11.       Release
of Collateral.

     

    Lender
shall, upon thirty (30) days advance written notice, release the Liens granted
hereunder with respect to a Collateral Pool Property or Properties which
constitute(s) less than all Collateral Pool Properties, provided that (i) prior
to such release Borrower shall pay Lender Ten Thousand Dollars and NO/100
($10,000.00) per property, and Borrower shall pay Lender and Servicer all
actual, reasonable out-of-pocket costs and expenses that Lender or Servicer
incur in connection with such release, including, but not limited to, reasonable
attorneys’ fees, (ii) at the time of the request for such release, no Event of
Default or Potential Default shall exist, and (iii) after giving effect to such
release, no Event of Default or Potential Default shall exist, and Borrower
shall be in compliance with all provisions hereof, provided, however, that if
such release would otherwise cause Borrower to be in non-compliance with the
Sublimits set forth in Section
2.6.1, Borrower shall have the opportunity to cure the same prior to or
simultaneously with such release by either (a) pledging collateral in form,
substance, value and in a manner all acceptable to Lender, in its sole
discretion (including, without limitation, Qualifying Rate Cap Agreements and
Qualifying Rate Swap Agreements), or (b) prepaying so much of the Loan as is
necessary to cause compliance with the Sublimits, each in accordance with the
provisions of Section
4.3.  Notwithstanding such thirty (30) day time period to
obtain a release, Lender shall upon five (5) Business Days notice provide a
“payoff letter” stating the amount necessary to obtain a release so as to
effectuate a sale or refinance of the subject Collateral Pool
Property.  Upon the release of a Lien on a Collateral Pool Property,
if the owner of such Collateral Pool Property owns no other Collateral Pool
Properties, such owner may be released from its obligations under the Loan
Documents in Lender’s sole discretion.  Notwithstanding the foregoing,
under no circumstances may Borrower receive a release of the Security Instrument
with respect to the last property in the Collateral Pool prior to the Maturity
Date, unless this Agreement shall have been terminated pursuant to Section 2.14
hereunder.

     

    2.12.       Payment
of the Loan Balance Without Termination.

     

    Borrower
shall have the right to repay the outstanding principal balance of the Loan
(subject to any Prepayment Fee due hereunder) without any release of any Lien,
and subsequently reborrow hereunder, provided that Borrower is at such time and
thereafter remains in compliance with the provisions of this Agreement,
including, without limitation, the obligations to pay all fees due and payable
hereunder.

     

    
      
         

      

      
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    2.13.       Valuations.

     

    2.13.1.    Timing
and Procedure of Valuation.

     

    In
addition to any other provisions requiring valuations hereunder, Lender shall
perform, in accordance with its then current underwriting policies, practices
and procedures consistently applied (utilizing a capitalization of net operating
income to determine value), and at no cost to Borrower, an annual valuation (the
“Valuation”) to determine the then Market Value of each of the Collateral Pool
Properties as of January 1st of such year, which Valuation shall be performed on
or before September 1 of each calendar year during the term of this Agreement,
commencing on or about September 1, 2007. In connection with such Valuation,
Borrower shall deliver to Servicer within the first forty-five (45) days of the
applicable calendar year, a current rent roll and a twelve (12) month operating
statement with respect to each Collateral Pool Property and such additional
information as Borrower reasonably deems to be relevant to the Market Value of
the Collateral Pool Properties.  Any operating statement required
hereunder shall relate to the operations of the applicable Collateral Pool
Property during the preceding calendar year.  In addition to the
Valuation, Lender shall perform a re-valuation of any Collateral Pool
Property(ies) upon Borrower’s written request therefore, provided that (i)
Borrower may not request that Lender perform a re-valuation of any Collateral
Property more often than one (1) time in any calendar year, and (ii) such
request shall be accompanied by (a) a fee equal to the greater of (1) the
product of Five Hundred and NO/100 Dollars ($500.00) times the number of
Collateral Pool Properties with respect to which Borrower has requested such
re-valuation or (2) Three Thousand and NO/100 Dollars ($3,000.00), (b) a current
rent roll and a trailing twelve (12) month operating statement with respect to
each Collateral Pool Property for which Borrower has requested a re-valuation,
and (c) such additional information as Borrower reasonably deems to be relevant
to the Market Value of each Collateral Pool Property for which Borrower has
requested a re-valuation.  Each such rent roll and operating statement
shall be in such form and contain such detail as Lender may reasonably require;
without limiting the foregoing, Lender may require that any such rent rolls and
operating statements shall be certified by an Authorized Officer and/or audited
by an independent accountant acceptable to Lender, provided, Lender shall not
require audited rent rolls or operating statements more than once in any twelve
(12) month period, except if an Event of Default or Potential Default has
occurred and is continuing.

     

    2.13.2.    Valuations
that Disclose a Decrease in Market Value.

     

    If any
Valuation discloses that the Market Value of the Collateral Pool Properties has
decreased below the then current Market Value thereof, the Maximum Facility
Available shall be adjusted in accordance with the provisions hereof and in the
event such decrease in Market Value shall cause Borrower to be in non-compliance
with the Sublimits set forth in Section 2.6.1, Borrower shall
within ninety (90) days of notice from Lender of such decrease, cure the same by
bringing the Loan into compliance with the Sublimits by either (i) pledging
collateral in form, substance, value and in a manner all acceptable to Lender,
in its sole discretion (including, without limitation, Qualifying Rate Cap
Agreements and Qualifying Rate Swap Agreements), or (ii) prepaying so much of
the Loan as is necessary to cause compliance with the Sublimits, each in
accordance with the provisions of Section 4.3.

     

    2.13.3.    Valuations
that Disclose an Increase in Market Value.

     

    If any
new Valuation discloses that the Market Value of the Collateral Pool Properties
has increased above the Market Value of such Collateral Pool Properties
immediately prior to such new Valuation, the Maximum Facility Available shall be
adjusted to the extent of the lesser of (i) the amount of such increase in
Market Value, or (ii) the Commitment.

     

    
      
         

      

      
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    2.14.       Termination.

     

    2.14.1.    Termination
Rights.

     

    Borrower
and Lender shall have the rights to terminate this Agreement or to accelerate
the Loan, as applicable, as set forth in this Section 2.14.

     

    2.14.1.1.     Borrower’s
Right to Terminate.

     

    Borrower
shall have the right to terminate this Agreement and the parties’ obligations
under the Loan Documents provided that (i) Borrower delivers to Lender thirty
(30) days advance written notice of its irrevocable election to terminate
specifying the Expiration Date, (ii) Borrower has provided each counterparty
with all necessary notice under each Qualified Rate Swap Agreement to terminate
each Qualified Rate Swap Agreement as of the Expiration Date, (iii) Borrower has
deposited with the Lender for payment to the counterparty of each Qualified Rate
Swap Agreement, any payments due under the Qualified Rate Swap Agreement and all
Hedge Fees (as defined below) and (iv) Borrower repays all accrued interest on,
and principal with respect to, the Loan in full, and performs all Obligations
under this Agreement, the Revolving Credit Note and the other Loan Documents,
including, but not limited to, Borrower’s obligation (except as provided in
Section 3.4.3) to pay
(a) the Prepayment Fee, if any, and (b) the liquidated Unused Facility Fee,
Minimum Usage Fee, and Minimum Servicing Fee, all as specified in Section 2.14.2.  In
the event that Borrower shall comply with the foregoing requirements, Lender
shall release the Liens granted hereunder on the Expiration Date in accordance
with Section 2.11.
Without limiting any other provision contained herein to the contrary, in the
event Borrower shall revoke any such request to terminate this Agreement and its
obligations hereunder, Borrower shall pay all costs and expenses incurred by
Lender and Servicer in connection with such revocation.

     

    2.14.1.2.     Lender’s
Right to Accelerate.

     

    Lender
shall have the right to accelerate the Loan (a) upon an Event of Default that
remains uncured by Borrower beyond the expiration of any applicable cure period
under this Agreement, the Note, or any other of the Loan Documents or (b)
pursuant to the provisions of Section 7.3.1.11 (upon the
change in Senior Management of REIT). In the event of acceleration pursuant to
this Section 2.14.1.2,
Lender shall be entitled to collect certain fees pursuant to Section 2.14.2.

     

    2.14.2.    Fees
Due Upon Early Termination.

     

    2.14.2.1.     In
the event (i) Borrower shall terminate this Agreement and the parties’
obligations under the Loan Documents pursuant to the provisions of Section 2.14.1.1 (other than a
termination pursuant to Section
3.4.3), or (ii) Lender shall accelerate the Loan pursuant to the
provisions of subsection (a) of Section 2.14.1.2, Borrower
shall pay:

     

    (i)           a
Prepayment Fee with respect to each outstanding Base Rate Borrowing Tranche
calculated in accordance with Section 4.4,

     

    
      
         

      

      
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    (ii)           a
liquidated Unused Facility Fee to be calculated as the product of fifteen basis
points (.0015) per annum times the Maximum Facility Available, assuming the
Maximum Facility Available to be an amount equal to seventy-five percent (75%)
of the Commitment, as if this Agreement had not terminated or accelerated, for
each Month which will elapse from the Month in which such termination or
acceleration occurs through and including the Month of the Maturity Date, such
liquidated Unused Facility Fee to be discounted to net present value at a
discount rate equal to the Treasury Rate,

     

    (iii)          a
liquidated Minimum Usage Fee to be calculated as the product of the lowest G-Fee
charged hereunder times a Borrowing Tranche to be assumed in an amount equal to
the Deemed Minimum Loan Amount, as if this Agreement had not terminated or
accelerated, for each Month which will elapse from the Month in which such
termination or acceleration occurs through and including the Month of the
Maturity Date, such liquidated Minimum Usage Fee to be discounted to net present
value at a discount rate equal to the Treasury Rate, together with all accrued
Minimum Usage Fees payable as of the date of such termination or
acceleration,

     

    (iv)          a
liquidated Minimum Servicing Fee to be calculated as the product of the
Servicing Fee times a Borrowing Tranche to be assumed in an amount equal to the
Deemed Minimum Loan Amount, as if this Agreement had not terminated or
accelerated, for each Month which will elapse from the Month in which such
termination or acceleration occurs through and including the Month of the
Maturity Date, such liquidated Minimum Servicing Fee to be discounted to net
present value at a discount rate equal to the Treasury Rate, together with all
accrued Minimum Servicing Fees payable as of the date of such termination or
acceleration, and

     

    (v)          any
and all fees, including but not limited to, any termination fee or fee due upon
termination, costs and expenses payable under or with respect to any Rate Swap
Agreement (collectively, “Hedge Fees”).

     

    2.14.2.2.     Notwithstanding
anything contained herein to the contrary, in the event Lender shall accelerate
the Loan pursuant to subsection (b) of Section 2.14.1.2, Borrower
shall pay a Prepayment Fee with respect to each outstanding Base Rate Borrowing
Tranche calculated in accordance with Section 4.4.

     

    
      
         

      

      
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    2.15.       Material
Adverse Change to Borrower or a Collateral Pool Property.

     

    If (i)
Borrower or a Collateral Pool Property experiences a Material Adverse Change or
(ii) a Material Adverse Change occurs with respect to this Agreement or any of
the other Loan Documents taken as a whole, Borrower shall promptly notify Lender
of the same in writing as soon as Borrower has notice thereof. If Lender shall
receive notice of a Material Adverse Change in accordance with the preceding
sentence, or otherwise becomes aware of a Material Adverse Change, which
Material Adverse Change affects a Collateral Pool Property, Lender shall
promptly conduct a Valuation of the affected Collateral Pool Property pursuant
to Section 2.13 (or, to
the extent Borrower agrees to pay a fee of $4,000.00 per property, a Valuation
of all Collateral Pool Properties).  Until such time as such
Valuation(s) shall be completed, the Collateral Pool Property which experienced
the Material Adverse Change, or which is owned by a Borrower that experienced a
Material Adverse Change, shall be deemed (but only for the purposes of
determining whether any new borrowing request satisfies all of the Sublimits set
forth in Section 2.6.1)
to have a Market Value equal to a value to be reasonably determined and
quantified by Lender upon the information then available to
Lender.  Lender shall promptly provide Borrower with written notice of
the results of such Valuation(s).  If the results of such Valuation
disclose that the Market Value of the affected Collateral Pool Property (or the
Market Value of the Collateral Pool Properties in the aggregate, as the case may
be) has decreased, then the Market Value shall thereafter be deemed to be the
amount shown in such Valuation(s).  In the event that such
Valuation(s) hereunder shall cause Borrower to be in non-compliance with the
Sublimits set forth in Section
2.6.1, Borrower shall, within fifteen (15) days of the notice of such
valuation, cure the same by bringing the Loan into compliance with the Sublimits
by either (i) pledging collateral in form, substance, value and in a manner all
acceptable to Lender, in its sole discretion (including, without limitation,
Qualifying Rate Cap Agreements or Qualifying Rate Swap Agreements), or (ii)
prepaying so much of the Loan as is necessary to cause compliance with the
Sublimits, each in accordance with the provisions of Section 4.3 (except as
otherwise specified in Section
4.3.2.3).  If Lender shall receive notice of a Material Adverse
Change from Borrower hereunder, or otherwise becomes aware of a Material Adverse
Change which affects Borrower, any guarantor or the enforceability of this
Agreement or the other Loan Documents taken as a whole, Borrower shall
immediately provide any information or documents reasonably requested by Lender,
including, but not limited to, (a) with respect to a Material Adverse Change
which affects Borrower, financial statements and Borrower’s business plan to
cure such Material Adverse Change, or (b) with respect to a Material Adverse
Change which affects the enforceability of this Agreement or the other Loan
Documents taken as a whole, replacement documents in form and substance
acceptable to Lender in its discretion, together with a legal opinion regarding
the enforceability of such replacement documents, acceptable to Lender in its
discretion; provided however, that Borrower shall not be required to take any
action that has the effect of (i) changing the material economic or other
business terms of this Agreement, the Revolving Credit Note, or any other Loan
Document or (ii) imposing on Borrower greater liability or obligation than that
set forth in this Agreement, the Revolving Credit Note or any other Loan
Document.  If Borrower would otherwise be required to change the
material economic or other business terms of this Agreement, the Revolving
Credit Note, or any other Loan Document, or undertake greater liability or
obligation than set forth in this Agreement, the Revolving Credit Note, or any
other Loan Document to cure a Material Adverse Change, Borrower may instead
elect to terminate this Agreement, and the parties’ obligations under the Loan
Documents, and upon repayment of the Loan in full, Borrower shall have no
further obligation hereunder, including any obligation to pay any Prepayment
Fee, or liquidated Unused Facility Fee, Unused Minimum Usage Fee, or Minimum
Servicing Fee otherwise payable hereunder.  In addition, in the event
Borrower shall so elect to terminate this Agreement, Borrower shall provide each
counterparty with all necessary notice under each Qualified Rate Swap Agreement
to terminate each Qualified Rate Swap Agreement as of the date of repayment in
full of the Loan and the Borrower shall deposit with the Lender for payment to
the counterparty of each Qualified Rate Swap Agreement, any payments due under
any Qualified Rate Swap Agreement and all Hedge Fees.

     

    
      
         

      

      
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    2.16.       Release
of Collateral Followed by a Permanent Loan.

     

    2.16.1.    Permanent
Loan.

     

    Borrower
may request that Lender cause Servicer to make a permanent loan (the “Permanent
Loan”) to be secured by one or more Collateral Pool Properties designated by
Borrower (the “Permanent Loan Collateral”) to be simultaneously released from
the Collateral Pool and encumbered in favor of Servicer as security for
Borrower’s obligations under the Permanent Loan, which request shall be made in
accordance with the provisions of Section 2.16.2.  The
Permanent Loan shall be made in accordance with the terms and conditions of the
Streamlined Refinancing Program.  Notwithstanding the foregoing, under
no circumstances may Borrower receive a release of the Security Instrument with
respect to the last property in the Collateral Pool prior to the Maturity Date,
unless Borrower has elected to terminate this Agreement under Section 2.14
hereunder.

     

    2.16.2.    Procedure
for Making a Permanent Loan.

     

    Borrower
may request that Lender cause Servicer to make a Permanent Loan to Borrower,
which request (i) shall be in writing, which writing shall specify (a) the
Collateral Pool Property(ies) that will constitute the Permanent Loan
Collateral, (b) the original principal amount of the requested Permanent Loan,
which amount shall be greater than or equal to Five Million and NO/100 Dollars
($5,000,000.00), (c) the related reduction in the Maximum Facility Available,
(d) whether Borrower has selected Lender’s then current early rate lock delivery
option, and (e) any payment or prepayment of a Borrowing Tranche, and (ii) shall
be accompanied by (a) any fees then due and owing under Lender’s Streamlined
Refinancing Program for each Collateral Pool Property proposed by Borrower to be
subject to the Permanent Loan, and (b) the Underwriting
Materials.  Following receipt of all of the items specified in (i) and
(ii) of the previous sentence, Lender shall employ a procedure similar to its
early rate lock underwriting procedure, to provide for preliminary review and
nonbinding indication of the preliminary loan amount and interest
rate.  Thereafter, Lender shall use best efforts to consent to
Borrower’s request within sixty (60) days of such notice, provided that (1) at
the time of such request no Event of Default or Potential Default exists, (2)
the Permanent Loan shall be made in accordance with the terms and conditions of
the Streamlined Refinancing Program, (3) after giving effect to such release no
Event of Default or Potential Default shall exist and Borrower will be in
compliance with all provisions hereof, including the Sublimits set forth in
Section 2.6.1, further
provided that if any release occasioned by a Permanent Loan would otherwise
cause Borrower to be in non-compliance with the Sublimits, Borrower shall have
the opportunity to cure the same, prior to or simultaneously with the release
and the consummation of the Permanent Loan (which shall occur pursuant to the
Streamlined Refinancing Program), by either (A) pledging collateral in form,
substance, value and in a manner all acceptable to Lender, in its sole
discretion (including, without limitation, Qualifying Rate Cap Agreements or
Qualifying Rate Swap Agreements), or (B) prepaying so much of the Loan as is
necessary to cause compliance with the Sublimits, each in accordance with the
provisions of Section
4.3, (4) Borrower shall provide evidence to Lender of title insurance in
form and substance acceptable to Lender and in the face amount of the Permanent
Loan, (5) the proposed Borrower under the Permanent Loan shall execute and
deliver such documents as Lender, in its discretion, may request in order to
evidence the making of the Permanent Loan and in order to grant Lender a first
priority Lien on the real and personal property constituting the Permanent Loan
Collateral subject, in each case, to any Permitted Exceptions, and (6) Borrower
shall pay Lender any fees then due and owing under Lender’s Streamlined
Refinancing Program.  Thereafter, Lender shall use best efforts to
consummate the Permanent Loan within thirty (30) days of the granting of
Lender’s consent hereunder.  Notwithstanding the foregoing, in the
event that Borrower selects Lender’s then current early rate lock delivery
option, Lender shall use best efforts, subject to Borrower’s timely compliance
with Lender’s requests, to lock the interest rate for the requested Permanent
Loan within seven (7) Business Days of Borrower’s notice
hereunder.  Any Permanent Loan granted pursuant to the foregoing
provisions shall not reduce the Commitment hereunder.  Simultaneous
with the closing of the Permanent Loan, Lender shall release the Lien granted
hereunder on the Permanent Loan Collateral.

     

    
      
         

      

      
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    3.           INTEREST
RATES

     

    3.1.         Interest
Rate.

     

    The
interest rate on each Borrowing Tranche shall be either the Prime Rate or the
Base Rate, as specified in the Loan Request. Interest rates under this Credit
Agreement and the Revolving Credit Note shall be computed on the basis of a year
of three hundred and sixty (360) days and actual days elapsed.

     

    3.2.         Interest
Rate Determinations.

     

    The
initial Prime Rate applicable to any Borrowing Tranche hereunder shall equal the
Prime Rate as of the Borrowing Date.  The Prime Rate shall thereafter
fluctuate in accordance with any changes to the Prime Rate as published from
time to time during the term of the Prime Rate Borrowing Tranche.  The
Base Rate applicable to any Base Rate Borrowing Tranche hereunder shall, subject
to the provisions set forth below, equal the Base Rate set forth in the Loan
Request, which shall be equal to the Base Rate as such rate exists on the date
of the Loan Request.  In the event that the Base Rate determined on
the Borrowing Date is more than twenty-five basis points (.0025) higher or lower
than the Base Rate set forth in the Loan Request, the Base Rate shall be equal
to the Reference BillsSM Rate (or such alternative index as may be selected by
Lender in accordance with the provisions of Section 3.4) plus the Margin,
as each exists on the Borrowing Date.  Thereafter, the portion of the
Base Rate attributable to the Reference BillsSM Rate (or such alternative index
as may be selected by Lender in accordance with the provisions of Section 3.4) for any Borrowing
Tranche shall be redetermined as of each renewal of such Borrowing Tranche
pursuant to Section
3.3.3.  The portion of the Margin attributable to the G-Fee
shall be determined at the time of the Loan Request or Renewal Request and shall
equal the applicable G-Fee as set forth on Schedule 3.2.

     

    3.3.         Interest
Periods.

     

    Upon each
Loan Request for a new Base Rate funding, and upon each Renewal Request
applicable to a Base Rate Borrowing Tranche (including, but not limited to, a
Renewal Request pursuant to which Borrower shall convert all or a portion of the
Prime Rate Borrowing Tranche to a Base Rate Borrowing Tranche), Borrower shall
notify Lender of the period (the “Interest Period”) (which may only be (i) a
thirty (30) day, ninety (90) day, one hundred and eighty (180) day or three
hundred and sixty (360) day period) for which the Reference BillsSM Rate or LIBO
Rate, as the case may be, shall be determined.

     

    
      
         

      

      
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    3.3.1.       Interest
Period to End on a Business Day.

     

    If the
last day of any Interest Period is not a Business Day, the Interest Period shall
be deemed to mature on the Business Day immediately following such
date.

     

    3.3.2.       No
Interest Periods Beyond the Expiration Date.

     

    Borrower
shall not select or renew an Interest Period for any Base Rate Borrowing Tranche
that would end after the Expiration Date.  If at the time of any such
selection or renewal the period of time remaining prior to the Expiration Date
is less than thirty (30) days then such Borrowing Tranche shall bear interest at
the Prime Rate.  No Prime Rate Borrowing Tranche may remain
outstanding in excess of thirty (30) days at any one time.

     

    3.3.3.       Renewals.

     

    In the
case of a redetermination of an Interest Period at the end of an Interest
Period, for purposes of calculating interest due under the applicable Borrowing
Tranche the first day of the new Interest Period shall be the first Business Day
immediately following the last day of the preceding Interest Period (such date,
the “Renewal Date”).  For each Base Rate Borrowing Tranche, if no new
Interest Period is specified within two (2) Business Days prior to the last day
of such Interest Period, by delivery to Lender via facsimile of a fully
completed, authorized and executed request therefor (a “Renewal Request”) in the
form attached hereto as Schedule 3.3.3, the Borrowing
Tranche shall be renewed for an Interest Period of thirty (30) days at the Base
Rate then applicable to a Borrowing Tranche disbursed on the applicable Renewal
Date having a thirty (30) day Interest Period.  Borrower may convert a
Prime Rate Borrowing Tranche to a Base Rate Borrowing Tranche or a Base Rate
Borrowing Tranche to a Prime Rate Borrowing Tranche by delivering to Lender via
facsimile, a fully completed, authorized and executed Renewal Request in the
form attached hereto as Schedule
3.3.3.  Notwithstanding anything contained herein to the
contrary, (i) no Borrowing Tranche may be renewed with a principal amount of
less than Three Million and NO/100 Dollars ($3,000,000.00) unless otherwise
approved by Lender in its sole discretion and (ii) in the event the Facility
Debt Service Coverage Ratio is less than 1.20 : 1:00, the Loan to Value Ratio is
in excess of 70%, the notional amounts of the Qualifying Rate Cap Agreements
and/or Qualifying Rate Swap Agreements do not equal the Required Hedge Amount,
or the Hedged Debt Service Coverage Ratio is less than 1.20 : 1.00, Borrower may
renew or consolidate (but not increase the outstanding principal amount of) any
Borrowing Tranche(s) then outstanding in accordance with the provisions of this
Section 3.3.3, provided
that, as of the date of such renewal or consolidation (a) no Event of Default,
other than Borrower’s failure to comply with Section 2.6.1.1, 2.6.1.2 or 2.6.1.5, shall then exist, (b)
Borrower’s failure to comply with Section 2.6.1.1, 2.6.1.2 or 2.6.1.5 shall have been for a
period of less than ninety (90) days, and (c) Borrower is otherwise in full
compliance with all other terms and conditions of the Loan Documents, including
the provisions of Section
4.5.  Borrower may assure compliance with Section 2.6.1.1, 2.6.1.2 and 2.6.1.5 pursuant to the
provisions of Section
4.3.

     

    
      
         

      

      
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    3.3.4.       Interest
After Default.

     

    So long
as (i) any payment under this Agreement remains past due for thirty (30) days or
more, or (ii) any other Event of Default has occurred and is continuing,
interest on all Borrowing Tranches shall accrue on the unpaid principal balance
from the earlier of the due date of the first unpaid installment or the
occurrence of such other Event of Default at the default rate set forth in the
Revolving Credit Note.  If the unpaid principal balance and all
accrued interest are not paid in full on the Expiration Date, the unpaid
principal balance and all accrued interest shall bear interest from the
Expiration Date at the default rate set forth in the Revolving Credit
Note.  Borrower acknowledges that (a) its failure to make timely
payments will cause Lender to incur additional expenses in servicing and
processing the Loan, (b) during the time that any installment is delinquent for
more than thirty (30) days, Lender will incur additional costs and expenses
arising from its loss of the use of the money due and from the adverse impact on
Lender’s ability to meet its other obligations and to take advantage of other
investment opportunities, and (c) it is extremely difficult and impractical to
determine those additional costs and expenses.  Borrower also
acknowledges that, during the time that any installment is delinquent for more
than thirty (30) days or any other Event of Default has occurred and is
continuing, Lender’s risk of nonpayment will be materially increased and Lender
is entitled to be compensated for such increased risk.  Borrower
agrees that the increase in the rate of interest set forth in the Revolving
Credit Note represents a fair and reasonable estimate, taking into account all
circumstances existing on the date of this Agreement, of the additional costs
and expenses Lender will incur by reason of Borrower’s delinquent payment and
the additional compensation Lender is entitled to receive for the increased
risks of nonpayment associated with a delinquent loan.

     

    3.3.5.      Late
Charge.

     

    If any
amount payable under this Agreement, the Revolving Credit Note or any other Loan
Document, other than the then outstanding amount of the Loan payable on the
Expiration Date or upon acceleration of the Revolving Credit Note, is not
received by Lender as provided in the Revolving Credit Note, Borrower shall pay
to Lender, immediately and without demand by Lender, a late charge as specified
in the Revolving Credit Note.  Borrower acknowledges that its failure
to make timely payments will cause Lender to incur additional expenses in
servicing and processing the Loan, and that it is extremely difficult and
impractical to determine those additional expenses.  Borrower agrees
that the late charge payable specified in the Revolving Credit Note represents a
fair and reasonable estimate, taking into account all circumstances existing on
the date of this Agreement, of the additional expenses Lender will incur by
reason of such late payment.  The late charge is payable in addition
to, and not in lieu of, any interest payable at the default rate specified in
the Revolving Credit Note.

     

    3.4.         Reference
BillsSM Rate Unascertainable: Illegality; Increased Costs.

     

    3.4.1.      Unascertainable.

     

    In the
event Freddie Mac shall at any time cease to designate any unsecured general
obligations of Freddie Mac as “Reference BillsSM”, at its option, Lender may (i)
select from time to time another unsecured general obligation of Freddie Mac
having original maturities, most comparable to the term of the Interest Period
for the applicable Borrowing Tranche, and issued by Freddie Mac at regularly
scheduled auctions within the sixty (60) day period prior to the first day of
such Interest Period, and the term “Reference BillsSM” as used herein shall mean
such other unsecured general obligations as selected by Lender; or (ii) for any
one or more Interest Periods, use the applicable LIBO Rate for purposes of
determining the Base Rate for such Interest Period(s).  If Freddie Mac
has not conducted an auction of its Reference BillsSM or other unsecured general
obligations within sixty (60) days prior to the first day of the Interest Period
for the proposed Borrowing Tranche, the Base Rate shall be determined as the
LIBO Rate plus the Margin for such Interest Period(s).

     

    
      
         

      

      
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    3.4.2.      Illegality;
Increased Costs.

     

    At any
time at which (i) either (x) the Reference BillsSM Rate shall not be available
and the Base Rate shall be determined based on the LIBO Rate in accordance with
the provisions of Section
3.4.1 or (y) Borrower has previously delivered an Index Conversion
Notice, and (ii) Lender shall have also reasonably determined that (a) adequate
and reasonable means do not exist for ascertaining the applicable LIBO Rate, (b)
a contingency has occurred which materially and adversely affects the London
interbank market, (c) the making, maintenance or funding of any Borrowing
Tranche bearing interest in part at the LIBO Rate has been made unlawful by
Lender’s compliance in good faith with any Law or any interpretation or
application thereof by any Official Body or with any request or directive of any
such Official Body (whether or not having the force of Law, but other than as a
result of any misconduct by Lender), (d) the Base Rate as determined by the LIBO
Rate will not adequately and fairly reflect the cost to Lender of the
establishment or maintaining of any such Borrowing Tranche, or (e) after making
all reasonable efforts, deposits of the relevant amount in Dollars for the
relevant Interest Period for a Borrowing Tranche are not available to Lender in
the London interbank market, then Lender shall have the rights specified in
Section
3.4.3.

     

    3.4.3.      Lender’s
Rights.

     

    In the
case of the events specified in items (i) and (ii) of Section 3.4.2 above, Lender
shall promptly notify Borrower thereof.  Upon the date as shall be
specified in such notice, the obligation of Lender to make advances under any
Borrowing Tranche(s) at the Base Rate shall be suspended until Lender shall have
later notified Borrower of Lender’s reasonable determination that the
circumstances set forth in Section 3.4.2 no longer
exist.  If at any time Lender notifies Borrower that it has made a
determination under Section
3.4.2, then with respect to any Loan Request previously submitted but not
yet funded and with respect to each Borrowing Tranche on which an Interest
Period shall thereafter expire, the applicable Borrowing Tranche(s) shall from
and after the date specified in such notice be deemed to bear interest utilizing
an index reasonably determined by Lender to reflect the cost to Lender of
establishing and maintaining any Borrowing Tranche.  Any determination
of the resulting alternative interest rate shall be entitled to a presumption of
correctness absent manifest error.  Notwithstanding the foregoing, in
such event Borrower may elect to terminate this Agreement and the parties’
obligations under the Loan Documents in accordance with the provisions of Section 2.14, provided that
(i) Borrower’s obligations hereunder shall only terminate upon Borrower’s
repayment of the Loan (ii) in the event such election shall occur at any time at
which any Rate Swap Agreement is in effect, Borrower shall provide each
counterparty with all necessary notice under each Qualified Rate Swap Agreement
to terminate each Qualified Rate Swap Agreement as of the date of repayment in
full of the Loan and the Borrower shall deposit with the Lender for payment to
the counterparty of each Qualified Rate Swap Agreement, any payments due under
any Qualified Rate Swap Agreement and all Hedge Fees and (iii) in the event such
election shall occur at any time at which any Borrowing Tranches then
outstanding shall have accrued interest at the alternative interest rate by
operation of the provisions of this Section 3.4.3 for a period of
at least thirty (30) consecutive days, Borrower shall not be obligated to pay
the Prepayment Fee, liquidated Unused Facility Fee, liquidated Minimum Usage
Fee, or liquidated Minimum Servicing Fee otherwise specified in Section 2.14.2 in connection
with such termination.

     

    
      
         

      

      
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    3.5.         LIBO
Rate Conversion.

     

    LIBO Rate
shall be the index rate which shall apply to all Base Rate Borrowing Tranches
from and after the effective date specified in Borrower’s notice electing to
irrevocably utilize the LIBO Rate when determining the Base Rate (the “Index
Conversion Notice”). Within ten (10) Business Days of Borrower’s request, which
request shall not be made more often than once during the term of the Loan,
Lender shall deliver to Borrower a revised schedule of G-Fees applicable to Base
Rate Borrowing Tranches; in the event Borrower thereafter delivers the Index
Conversion Notice to Lender within five (5) Business Days of Borrower’s receipt
of said schedule, the revised G-Fees shall thenceforth irrevocably (i) apply to
all Base Rate Borrowing Tranches and (ii) supercede the G-Fees presently set
forth in Schedule 3.2.
In the event Borrower fails to deliver the Index Conversion Notice within five
(5) Business Days of Borrower’s receipt of the revised schedule, the revised
G-Fees quoted to Borrower shall not be binding on Lender or Borrower, and Base
Rate Borrowing Tranches shall continue to be based on the Reference BillsSM
Rate.

     

    4.           PAYMENTS

     

    4.1.         Payments.

     

    All
payments and prepayments to be made in respect of principal, interest, Unused
Facility Fees, Minimum Usage Fees, Minimum Servicing Fees or other fees or
amounts due from Borrower hereunder shall be due and payable on the date when
due without presentment, demand, protest, or notice of any kind (unless
expressly provided in the Loan Documents), including, but not limited to, notice
of Lender’s intent to accelerate Borrower’s Obligations under the Loan and
notice of such acceleration, all of which (unless expressly provided in the Loan
Documents) are hereby waived by Borrower, and without set-off, counterclaim or
other deduction of any nature, and an action therefor shall immediately
accrue.  Such payments shall be made to Lender in immediately
available funds when due.  Lender’s Monthly Payment Statement shall,
in the absence of manifest error, be conclusive as to the amount of principal of
and interest on the Loan and other amounts owing under this Agreement, provided
that Borrower may challenge the accuracy of any Monthly Payment Statement within
one (1) year of the date of such Monthly Payment Statement.

     

    
      
         

      

      
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    4.2.         Payment
Dates.

     

    Subject
to the provisions of Section
4.3, interest on the Loan shall be payable in arrears and shall be due,
together with all other amounts set forth on the applicable Monthly Payment
Statement, prior to 12:00 noon Eastern Time on the first (1st) Business Day of
any calendar month during the term hereof (the “Payment Date”), and shall be
paid by wire transfer of immediately available funds to an account specified by
Servicer.  Lender shall deliver to Borrower an invoice (the “Monthly
Payment Statement”) detailing the interest, Unused Facility Fees, Minimum Usage
Fees, Minimum Servicing Fees, Credit Enhancement Fees and other fees due and
payable.  Except in the case of a prepayment under Section 4.3, Lender shall
deliver the Monthly Payment Statement detailing charges due for the current
calendar month via fax at least five (5) Business Days prior to the first day of
the succeeding calendar month.  In the instance of a renewal of an
Interest Period pursuant to Section 3.3.3, interest on
such renewed Borrowing Tranche shall be due and payable on the next Payment
Date, subject to any adjustments in interest rates, as if the Interest Period
had not expired and then been renewed.  Interest on prepayments under
Section 4.3 shall be due
on the date such prepayment is due.  Interest on the principal amount
of the Loan or other monetary Obligation shall be due and payable on demand
after such principal amount or other monetary Obligation becomes due and payable
(whether on the stated maturity date, upon acceleration or
otherwise).

     

    4.3.         Prepayments.

     

    4.3.1.      Voluntary
Prepayments.

     

    Borrower
shall have no right to prepay the Loan, in whole or in part, except as
follows:  (i) prepayment of the Prime Rate Borrowing Tranche, (ii)
prepayment of a Base Rate Borrowing Tranche as required under Section 4.3.2, (iii)
prepayment of a Base Rate Borrowing Tranche where Borrower has previously
prepaid in advance all interest applicable to such Borrowing Tranche which would
have otherwise accrued over the applicable Interest Period, (iv) any prepayment
upon termination of this Agreement and the parties’ obligations hereunder in
accordance with the provisions of Section 2.14,and (v) any
payment upon the expiration of a Borrowing Tranche’s Interest
Period.

     

    4.3.2.      Prepayment
Fee Not Applicable (Mandatory Prepayment / Collateral Addition).

     

    4.3.2.1.       If
at the time of the release of a portion of the Collateral pursuant to Section 2.11, Borrower shall
be in violation of any of the Sublimits set forth in Section 2.6.1 (subject to the
exception described in Section
2.11), Borrower may cure such violation prior to or simultaneously with
such release by either (i) pledging collateral in form, substance, value and in
a manner all acceptable to Lender, in its sole discretion (including, without
limitation, Qualifying Rate Cap Agreements or Qualifying Rate Swap Agreements),
or (ii) prepaying that portion of the Loan outstanding as is necessary to cause
compliance with such Sublimit, without any Prepayment Fee or similar fee or
penalty.  Lender shall deliver to Borrower as soon as practicable, but
in any event within two (2) Business Days prior to such release, a statement of
the principal and interest due with respect to any required
prepayment.

     

    4.3.2.2.       If
at the time of a Valuation pursuant to Section 2.13 or a Material
Adverse Change pursuant to Section 2.15, Borrower shall
be in violation of any of the Sublimits set forth in Section 2.6.1, Borrower shall
cure such violation within ninety (90) days of notice of such Valuation or
Material Adverse Change, by either (i) pledging collateral in form, substance,
value and in a manner all acceptable to Lender, in its sole discretion
(including, without limitation, Qualifying Rate Cap Agreements or Qualifying
Rate Swap Agreements), or (ii) prepaying that portion of the Loan outstanding as
is necessary to cause compliance with such Sublimit, without any Prepayment Fee
or similar fee or penalty.  Lender shall deliver to Borrower within
two (2) Business Days following the notice of Valuation or Material Adverse
Change, as the case may be, a statement of the principal and interest due with
respect to any required prepayment.

     

    
      
         

      

      
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    4.3.2.3.       Notwithstanding
anything to the contrary herein set forth, if Lender shall determine, at any
time, that the Borrower has failed to comply with Section 2.6.1.1, Section 2.6.1.2 or Section 2.6.1.5, and the
provisions of the foregoing Section 4.3.2.1 and Section 4.3.2.2 do not
apply, Lender shall
provide written notice of said non-compliance to Borrower. Borrower shall have
ninety (90) days following receipt of said notice to cure the non-compliance
with Section 2.6.1.1,
Section 2.6.1.2 or Section 2.6.1.5 by either (i)
pledging collateral in form, substance, value and in a manner all acceptable to
Lender, in its sole discretion (including, without limitation, cash, letters of
credit, Qualifying Rate Cap Agreements or Qualifying Rate Swap Agreements), or
(ii) prepaying that portion of the Loan outstanding as is necessary to cause
compliance with the Sublimits, without any Prepayment Fee or similar fee or
penalty. In the
event that Borrower’s failure to comply with Section 2.6.1.1, Section 2.6.1.2 or Section 2.6.1.5 shall continue
for a period of ninety (90) consecutive days following Borrower’s receipt of
Lender’s notice pursuant to this Section 4.3.2.3, the same
shall constitute an Event of Default.

     

    4.3.2.4.       In
the event of a casualty or condemnation affecting any of the Collateral Pool
Properties, any award and/or proceeds payable with respect to such casualty or
condemnation and applied to Borrower’s Obligations in accordance with the
provisions of the applicable Security Instrument shall be applied without any
Prepayment Fee or other penalty, and this Agreement, and the parties’
obligations under the Loan Documents, may be terminated, at Borrower’s election,
in accordance with Section
2.14.

     

    4.3.2.5.       Any
mandatory prepayment of the Loan in accordance with the provisions of this Section 4.3.2 shall be
applied, as directed by Borrower, to a particular Borrowing Tranche or Borrowing
Tranches or, in the absence of any specific direction from Borrower, as selected
by Lender in its sole discretion.

     

    4.4.         Prepayment
Fee.

     

    Unless
Borrower (i) repays a Borrowing Tranche accruing interest at the Prime Rate,
(ii) repays all or a part of a Borrowing Tranche upon the expiration of such
Borrowing Tranche’s Interest Period, (iii) terminates this Credit Agreement
pursuant to Section
3.4.3, or (iv) prepays a portion of the Loan outstanding pursuant to
Section 4.3.2, any
prepayment under Section
4.3 shall be accompanied by a prepayment fee (the “Prepayment Fee”) which
shall equal all of the interest, applicable to the particular Borrowing Tranche
being prepaid, which would have otherwise accrued over the applicable Interest
Period.  The Prepayment Fee shall not constitute the payment of
interest and therefore shall not be included in the calculation of Facility Debt
Service Coverage Ratio or the determination of Borrower’s compliance with the
Sublimits set forth in Section
2.6.1.  In addition, upon Lender’s exercise of any right of
acceleration under this Agreement, the Revolving Credit Note, or any other Loan
Document following an Event of Default, Borrower shall pay to Lender the
Prepayment Fee on all Base Rate Borrowing Tranches outstanding at the time of
acceleration in addition to all interest accrued thereon, and all other sums and
fees payable to Lender hereunder.

     

    
      
         

      

      
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    4.5.         Additional
Payment Obligations.

     

    4.5.1.      Additional
G-Fee Obligation.  Notwithstanding anything to the contrary herein set
forth, if Lender shall determine, at any time, that Borrower has failed to
comply with Section
2.6.1.1, Section
2.6.1.2 or Section
2.6.1.5, Lender shall provide written notice of the same to Borrower.
After the expiration of fifteen (15) Business Days following Borrower’s receipt
of said notice, if such non-compliance with Section 2.6.1.1, Section 2.6.1.2, or Section 2.6.1.5 has not been
cured pursuant to the terms of Section 4.3, the G-Fee
applicable to all Borrowing Tranches then outstanding (and thereafter renewed)
shall automatically increase by an additional one hundred basis points (.0100)
over the applicable G-Fee until such time as Borrower shall cure said
non-compliance.  In
the event that Borrower’s failure to comply with Section 2.6.1.1, Section 2.6.1.2 or Section 2.6.1.5 shall continue
for a period of ninety (90) consecutive days following Borrower’s receipt of
Lender’s notice pursuant to this Section 4.5, the same shall
constitute an Event of Default.

     

    4.5.2.      Rate
Cap Escrow.  Upon the request of Lender, if any Qualifying Rate Cap
Agreement or Qualifying Rate Swap Agreement necessary for compliance with Section 2.6.1.5 has an initial
term of less than five (5) years, Borrower shall pay monthly payments
(determined from time to time by Lender in its sole discretion) into an escrow
account to be established by Lender pursuant to Lender’s then prevailing
interest rate cap replacement escrow policies (such account, the “Replacement
Hedge Escrow”).

     

    4.5.2.1.       Borrower
and Lender agree that all moneys deposited into the Replacement Hedge Escrow
shall be held by Lender in an interest bearing account, and any interest earned
on such moneys shall be added to the principal balance of the Replacement Hedge
Escrow.  Lender shall not be responsible for any losses resulting from
investment of moneys in the Replacement Hedge Escrow or for obtaining any
specific level or percentage of earnings on such investment.

     

    4.5.2.2.       Lender
shall be entitled to deduct from the Replacement Hedge Escrow a one time fee for
establishing the Replacement Hedge Escrow in an amount not to exceed Two Hundred
and NO/100 Dollars ($200.00).

     

    4.5.2.3.       Subject
to the Security Instrument and the other rights of Lender set forth in the Loan
Documents, the Replacement Hedge Escrow shall be maintained for the payment of
the costs of purchasing replacement Qualifying Rate Cap Agreements to replace
any and all Qualifying Rate Cap Agreements and/or Qualifying Rate Swap
Agreements with initial terms expiring before the Maturity Date.

     

    
      
         

      

      
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    4.5.2.4.      If
Borrower purchases such replacement Qualifying Rate Cap Agreements as are
necessary for compliance with Section 2.6.1.5, Borrower may
request reimbursement for such Qualifying Rate Cap Agreements from Lender to the
extent of available funds held in the Replacement Hedge Escrow not otherwise
determined by Lender to be necessary for future replacement Qualifying Rate Cap
Agreements; such request shall be in writing and shall include evidence
satisfactory to Lender that the costs of said Qualifying Rate Cap Agreements
have been paid in full.  If Borrower purchases a replacement
Qualifying Rate Swap Agreement having a term expiring on the Maturity Date,
whether in place of an expiring Qualifying Rate Cap Agreement or an expiring
Qualifying Rate Swap Agreement, all amounts in the Replacement Hedge Escrow
which are not otherwise determined by Lender to be necessary for future
replacement Qualifying Rate Cap Agreements shall be released to
Borrower.  Disbursements from the Replacement Hedge Escrow shall be
made no more frequently than quarter annually.  Lender shall refuse to
make a disbursement from the Replacement Hedge Escrow unless (i) no Event of
Default shall exist beyond any applicable cure period pursuant to this Agreement
or any other Loan Document and (ii) all representations and warranties of
Borrower set forth in this Agreement and the other Loan Documents are and remain
true at the time of the disbursement request.

     

    4.5.2.5.       If
Borrower fails to purchase Qualifying Rate Cap Agreements and/or Qualifying Rate
Swap Agreements necessary to maintain compliance with Section 2.6.1.5, Lender shall
have the right (but not the obligation) to purchase Qualifying Rate Cap
Agreements in the name of Borrower, and Lender is hereby irrevocably appointed
the attorney in fact of Borrower, such appointment being coupled with an
interest, to enter into such contracts, incur such obligations, enforce any
contracts or agreements made by or on behalf of Borrower and do any and all
things necessary or proper to obtain a Qualifying Rate Cap Agreement, including
signing Borrower’s name on any contracts and documents as may be deemed
necessary by Lender.

     

    4.5.2.6.       In
no event shall Lender be required to expend its own funds to purchase any
Qualifying Rate Cap Agreement, but Lender may, in its sole discretion, advance
such funds or draw upon funds from the Replacement Hedge Escrow.  Any
funds advanced by Lender pursuant to this Section 4.5.2, from sources
other than the Replacement Hedge Escrow (including without limitation, Lender’s
reasonable attorneys’ fees), shall be added to the outstanding principal balance
of the Loan, secured by the Security Instrument and made payable to Lender by
Borrower in accordance with the provisions of the Security Instrument pertaining
to the protection of Lender’s security and advances made by Lender.

     

    4.5.2.7.       Borrower
hereby conveys, pledges, transfers and grants to Lender a security interest
pursuant to the Uniform Commercial Code or any other applicable law in and to
all amounts in the Replacement Hedge Escrow, as same may increase or decrease
from time to time, for the purpose of securing Borrower’s Obligations under this
Agreement and to further secure Borrower’s Obligations under the Note, Security
Instrument and other Loan Documents.

     

    4.5.3.      Rate
Swap Enhancement Program.

     

    At
Borrower’s request, and in order for any Rate Swap Agreement to be considered a
Qualifying Rate Swap Agreement, Lender shall guarantee Borrower’s obligations
under such Rate Swap Agreement to pay the applicable counterparty the product of
the stipulated fixed pay rate times the applicable notional amount. Lender shall
provide such guaranty subject to the terms and conditions of Lender’s then
current interest rate swap enhancement program, including without limitation,
that Lender shall only guaranty Rate Swap Agreements that (i) are “at market” or
“par swaps” and (ii) do not have an aggregate notional amount in excess of the
outstanding principal balance of the Loan. As consideration for Lender’s
guaranty of Borrower’s obligation(s) under this Section 4.5.3, Borrower shall
pay to Lender, on a monthly basis, an annual amount equal to the product of the
notional amounts of any and all Qualifying Rate Swap Agreements times the
applicable Credit Enhancement Fee. Borrower’s obligations to pay the Credit
Enhancement Fee shall be secured by the Collateral as if part of the
Loan.

     

    
      
         

      

      
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      4.5.3.1.       In
the event of a partial prepayment of the principal amount of the Loan, if after
giving effect to such prepayment, the aggregate notional amount of the Rate Swap
Agreements will exceed the remaining principal amount of the Loan, the Borrower
shall (a) with the consent of Lender and prior to such prepayment, terminate one
or more Rate Swap Agreements in whole or in part so that the aggregate notional
amount of the Rate Swap Agreements is equal to or less than the outstanding
principal balance of the Loan, or (b) allocate such excess notional amount of
the Rate Swap Agreement(s) to any other outstanding variable rate loan from the
Lender to the extent the outstanding principal amount of such variable rate loan
is unhedged by a rate swap agreement.  To the extent a Rate Swap
Agreement obtained hereunder is allocated to a variable rate loan from the
Lender other than the Loan, the fees paid by Borrower to the Lender for the
Lender’s credit enhancement of the Borrower’s obligations under the Rate Swap
Agreement shall be governed by the credit agreement or other loan documents
governing the Borrower’s obligations with respect to the loan to which the Rate
Swap Agreement has been allocated.  Prior to terminating any Rate Swap
Agreement in whole or in part as set forth in (a) above, Borrower shall deliver
to Lender any Hedge Fees (as defined in Section 2.14.2.1(v)) with respect to
such termination.

       

      4.6.          Additional
Compensation in Certain Circumstances.

       

      4.6.1.       Increased
Costs Resulting from Taxes, Etc.

       

      If any
change in any Law, guideline or interpretation or application thereof by any
Official Body charged with the interpretation or administration thereof or
compliance with any written request or directive of any Official Body (other
than as a result of any misconduct by Lender) which is applicable to
Lender:

       

      4.6.1.1.       subjects
Lender to any tax or changes the basis of taxation with respect to this
Agreement, the Revolving Credit Note, the Loan or payments by Borrower of any
principal, interest, fees, or other amounts due from Borrower hereunder or under
the Revolving Credit Note (except for taxes on the overall net income of
Lender);

       

      4.6.1.2.       imposes
upon Lender any condition or denies Lender any right, the result of which is to
increase the cost to, reduce the income receivable by, or impose any expense
(including breakage costs) upon Lender with respect to this Agreement, the
Revolving Credit Note or the making, maintenance or funding of any Borrowing
Tranche by an amount which Lender in its discretion deems to be
material;

       

      then
Lender shall from time to time notify Borrower of the amount determined in good
faith (using any averaging and attribution methods employed in good faith) by
Lender to be necessary to compensate Lender for such increase in
cost.  Such notice shall set forth in reasonable detail the basis for
such determination.  Such amount shall be due and payable by Borrower
to Lender thirty (30) days after such notice is given.

      
        
           

        

        
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      4.6.2.       Termination.

       

      Upon the
occurrence of any event described in Section 4.6.1, Borrower may
elect to terminate this Agreement and the parties’ obligations under the Loan
Documents, in accordance with the provisions of Section 2.14 without any
Prepayment Fee or similar fee or penalty, and Borrower’s obligations hereunder
shall terminate upon Borrower’s repayment in full of the Loan, provided that no
such termination shall be effective until such time as Borrower shall provide
each counterparty with all necessary notice under each Qualified Rate Swap
Agreement to terminate each Qualified Rate Swap Agreement as of the date of
repayment in full of the Loan and the Borrower shall deposit with the Lender for
payment to the counterparty of each Qualified Rate Swap Agreement, any payments
due under any Qualified Rate Swap Agreement and all Hedge Fees.

       

      4.6.3.       Indemnity.

       

      In
addition to the compensation required by Section 4.6.1, Borrower shall
jointly and severally indemnify Lender and Servicer against all liabilities,
losses or expenses (including breakage costs) which Lender and/or Servicer
sustains or incurs as a consequence of any:

       

      4.6.3.1.       attempt
by Borrower to revoke (expressly, by later inconsistent notices or otherwise) in
whole or part any Loan Request under Section 2.6, any request to
release a Collateral Pool Property under Section 2.11, or notice
relating to prepayments under Section 4.3, or

       

      4.6.3.2.       default
by Borrower in the performance or observance of any covenant or condition
contained in this Agreement or any other Loan Document, including without
limitation any Qualifying Rate Cap Agreement or Qualifying Rate Swap Agreement
and including any failure of Borrower to pay when due (by acceleration or
otherwise) any principal, interest, Prepayment Fee, Unused Facility Fee, Minimum
Usage Fee, Minimum Servicing Fee, Credit Enhancement Fee or any other amount due
hereunder.

       

      If Lender
sustains or incurs any such loss or expense, it shall from time to time notify
Borrower of the amount determined in good faith by Lender (which determination
may include such assumptions, allocations of costs and expenses and averaging or
attribution methods as Lender shall deem reasonable) to be necessary to
indemnify Lender for such loss or expense.  Such notice shall set
forth in reasonable detail the basis for such determination.  Such
amount shall be due and payable by Borrower to Lender thirty (30) days after
such notice is given. Notwithstanding the foregoing, Borrower shall not have any
obligation to Lender under this Section 4.6.3 with respect to
any loss or expense caused by or resulting from the gross negligence or willful
misconduct or omission of Lender.

       

      5.       CONDITIONS
OF LENDING

       

      The
obligation of Lender to fund any Borrowing Tranche(s) hereunder is subject to
the performance by Borrower of its Obligations to be performed hereunder at or
prior to the funding of any such Borrowing Tranche(s) and to the satisfaction of
the following further conditions:

      
        
           

        

        
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      5.1.        Initial
Borrowing Tranche.

       

      On the
Closing Date:

       

      5.1.1.       Delivery
of Loan Documents.

       

      All Loan
Documents not previously executed and delivered to Lender shall have been duly
executed and delivered to Lender, together with all appropriate financing
statements.

       

      5.1.2.       Validity
of Representations.

       

      The
representations and warranties of Borrower contained in Section 6 and in each of the
other Loan Documents shall be true and accurate in all material respects on and
as of the Closing Date with the same effect as though such representations and
warranties had been made on and as of such date (except representations and
warranties which relate solely to an earlier date or time, which representations
and warranties shall be true and correct on and as of the specific dates or
times referred to therein), and Borrower shall have performed and complied with
all covenants and conditions hereof and thereof, no Event of Default or
Potential Default shall have occurred and be continuing or shall
exist.

       

      5.1.3.       Officer’s
Certificate.

       

      There
shall be delivered to and for the benefit of Lender a certificate, in form and
substance acceptable to Lender, dated the Closing Date and signed by an
Authorized Officer, certifying as appropriate as to:

       

      5.1.3.1.       all
required actions taken by Borrower in connection with this Agreement and the
other Loan Documents;

       

      5.1.3.2.       the
names of the officer or officers authorized to sign this Agreement and the other
Loan Documents and the true signatures of such officer or officers and
specifying the Authorized Officers permitted to act on behalf of Borrower for
purposes of this Agreement and the true signatures of such Authorized Officers,
on which Lender may conclusively rely; and

       

      5.1.3.3.       copies
of the organizational documents of Borrower including its certificate of
incorporation, by-laws, certificate of limited partnership, partnership
agreement, certificate of formation, and limited liability company agreement, as
applicable, as in effect on the Closing Date certified by the appropriate state
official where such documents are filed in a state office together with
certificates from the appropriate state officials as to the continued existence
and good standing of Borrower in each state where organized or qualified to do
business and bring-down certificates by facsimile dated within thirty (30) days
of the Closing Date, all of which shall be attached to such officer’s
certificate; and

       

      5.1.3.4.       the
matters described in Section
5.1.8.

       

      
        
          
          

        

        
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      5.1.4.       Opinion
of Counsel.

       

      There
shall be delivered to Lender, a written opinion of counsel for Borrower dated
the Closing Date and in form and substance satisfactory to Lender and its
counsel as to matters customary to the transactions contemplated herein, or as
Lender may reasonably request.

       

      5.1.5.       Legal
Details.

       

      All legal
details and proceedings in connection with the transactions contemplated by this
Agreement and the other Loan Documents shall be in form and substance
satisfactory to Lender and counsel for Lender, and Lender shall have received
all such other counterpart originals or certified or other copies of such
documents and proceedings in connection with such transactions, in form and
substance satisfactory to Lender and said counsel, as Lender or said counsel may
reasonably request.

       

      5.1.6.       Payment
of Fees.

       

      Borrower
shall have paid or caused to be paid to Lender and Freddie Mac to the extent not
previously paid all fees accrued through the Closing Date and all of Lender’s
and Freddie Mac’s reasonable costs and expenses, including, but not limited to,
attorneys’ fees, title insurance premiums, surveys, appraisals, all costs
incurred in obtaining environmental, engineering and credit reports, all third
party due diligence costs and other costs and expenses incurred by either Lender
or Freddie Mac in connection with the closing of this Loan.

       

      5.1.7.       Consents.

       

      All
material consents required to effectuate the transactions contemplated hereby
shall have been obtained.

       

      5.1.8.       No
Material Adverse Change.

       

      Since the
date of Borrower’s formation, no Material Adverse Change shall have occurred;
prior to the Closing Date, there shall have been no material change in the
management of Borrower.

       

      5.1.9.       No
Violation of Laws.

       

      The
making of the Loan shall not contravene any Law applicable to Borrower or
Lender.

       

      5.1.10.     No
Actions or Proceedings.

       

      No
action, proceeding, investigation, regulation or legislation shall have been
instituted, or, to Borrower’s knowledge, threatened or proposed before any
court, governmental agency or legislative body to enjoin, restrain or prohibit,
or to obtain damages in respect of, this Agreement, the other Loan Documents or
the consummation of the transactions contemplated hereby or thereby or which, in
Lender’s sole discretion, would make it inadvisable to consummate the
transactions contemplated by this Agreement or any of the other Loan
Documents.

      
        
           

        

        
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      5.1.11.     Collateral
Initially Included in Collateral Pool.

       

      With
respect to the Collateral which is part of the Collateral Pool at Closing,
Borrower shall have delivered all Underwriting Materials required hereunder for
inclusion of such Collateral into the Collateral Pool, and Lender shall have
approved the inclusion therein.

       

      5.1.12.     Other
Conditions.

       

      Borrower
shall have satisfied such other reasonable conditions as required by Lender or
Lender’s legal counsel.

       

      5.2.        Each
Subsequent Borrowing Tranche.

       

      At the
time of funding of any Borrowing Tranche (excluding renewals, conversions and
continuances of any outstanding Borrowing Tranche(s) which do not increase the
outstanding principal amount of the Loan made hereunder) other than the funds
advanced on the Closing Date, and after giving effect to the proposed extensions
of credit: (i) the representations and warranties of Borrower contained in Section 6 and in the other
Loan Documents shall be true and correct in all material respects on and as of
the date of the funding of any such Borrowing Tranche with the same effect as
though such representations and warranties had been made on and as of the date
of the funding of any such Borrowing Tranche (except representations and
warranties that expressly relate solely to an earlier date or time, which
representations and warranties shall be true and correct in all material
respects on and as of the specific dates or times referred to therein and except
such changes as would not constitute a Material Adverse Change) and Borrower
shall have performed and complied with all covenants and conditions hereof; (ii)
no Event of Default or, to Borrower’s knowledge, Potential Default shall have
occurred and be continuing or shall exist; (iii) the funding of any Borrowing
Tranche shall not contravene any Law applicable to Borrower or Lender; (iv)
Borrower shall have delivered to Lender a duly executed and completed Loan
Request or Renewal Request, as the case may be; and (v) Borrower shall have paid
all reasonable fees and expenses incurred by Lender or Servicer in connection
therewith.

       

      6.          REPRESENTATIONS
AND WARRANTIES

       

      6.1.        Representations
and Warranties.

       

      Borrower
represents and warrants to Lender as follows:

       

      6.1.1.       Organization
and Qualification.

       

      Borrower
is duly organized, validly existing and in good standing under the Laws of its
jurisdiction of organization or formation, as the case may be, and has the
lawful power to engage in the business it presently conducts or proposes to
conduct.  Borrower is duly licensed or qualified and in good standing
in all jurisdictions where the property owned or leased by it or the nature of
the business transacted by it or both makes such licensing or qualification
necessary and where the failure to be so qualified would result in a Material
Adverse Change.  Each Property Borrower has the lawful power to own or
lease the Collateral Pool Properties.

      
        
           

        

        
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      6.1.2.       Intentionally
Omitted.

       

      6.1.3.       Power
and Authority.

       

      Borrower
has full power to enter into, execute, deliver and carry out this Agreement and
the other Loan Documents to which it is a party, to incur the Loan contemplated
by the Loan Documents and to perform its Obligations under the Loan Documents to
which it is a party, and all such actions have been duly authorized by all
necessary proceedings on its part.

       

      6.1.4.       Validity
and Binding Effect.

       

      This
Agreement has been duly and validly executed and delivered by Borrower and each
other Loan Document which Borrower is required to execute and deliver on or
after the date hereof will have been duly executed and delivered by Borrower on
the required date of delivery of such Loan Document.  This Agreement
and each other Loan Document to which Borrower is a party constitutes, or will
constitute, legal, valid and binding obligations of Borrower on and after its
date of delivery thereof, enforceable against Borrower in accordance with its
terms, except to the extent that enforceability of any of such Loan Documents
may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar Laws affecting the enforceability of creditors’ rights generally or
limiting the right of specific performance.  There is no offset,
defense, counterclaim or right of rescission with respect to any of the Loan
Documents.

       

      6.1.5.       No
Conflict.

       

      Neither
the execution and delivery of this Agreement or the other Loan Documents by
Borrower nor the consummation of the transactions herein or therein contemplated
or compliance with the terms and provisions hereof or thereof by any of them
will conflict with, constitute a default under or result in any breach or
violation of (i) the terms and conditions, as applicable, of the certificate of
limited partnership, limited partnership agreement, certificate of formation,
limited liability company agreement or other organizational documents of
Borrower, (ii) any Law or any material agreement or instrument or order, writ,
judgment, injunction or decree to which Borrower is a party or is subject, or by
which Borrower is bound, or (iii) result in the creation or enforcement of any
Lien, charge or encumbrance whatsoever upon any property (now or hereafter
acquired) of Borrower (other than Liens granted under the Loan Documents), nor
will they result in or require (except as specifically contemplated by this
Agreement) the creation or imposition of any lien of any nature upon any of the
collateral of Borrower.

       

      6.1.6.       Litigation.

       

      There are
no actions, suits, proceedings or investigations pending, or to Borrower’s
knowledge threatened, against Borrower at law or equity before any Official Body
which individually or in the aggregate may result in any Material Adverse
Change.  Borrower is not in violation of any order, writ, injunction
or decree of any Official Body which may result in any Material Adverse
Change.

       

      
        
          
             

          

          
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      6.1.7.       Title
to Collateral Pool Properties.

       

      Property
Borrowers have good and marketable title to all Collateral Pool Properties and
to all other assets which each purports to own or which are reflected as owned
on its books and records, free and clear of all Liens and encumbrances except
the Permitted Exceptions and such other Liens as are permitted pursuant to the
Loan Documents.  The Permitted Exceptions do not and will not
materially and adversely affect (i) the ability of Borrower to pay in full all
sums due under the Revolving Credit Note or any of its other Obligations in a
timely manner, (ii) the use of any Collateral Pool Property for the use
currently being made thereof, (iii) the operation of any Collateral Pool
Property as currently being operated, or (iv) the value of any Collateral Pool
Property.

       

      6.1.8.       Use
of Proceeds.

       

      Borrower
intends to use the proceeds of the Loan in accordance with Section 2.9.

       

      6.1.9.       Full
Disclosure.

       

      Neither
this Agreement nor any other Loan Document, nor any material certificate,
statement, agreement or other documents furnished to Lender in connection
herewith or therewith, contains any untrue statement of a material fact or omits
to state a material fact necessary in order to make the statements contained
herein and therein, in light of the circumstances under which they were made,
not misleading.  There is no fact known to Borrower which materially
adversely affects the business, property, assets, financial condition, results
of operations or prospects of Borrower which has not been set forth in this
Agreement or in the certificates, statements, agreements, financial projections
or other documents furnished in writing to Lender prior to or at the date hereof
in connection with the transactions contemplated hereby.

       

      6.1.10.     Taxes.

       

      Upon
information and belief after due and diligent inquiry, all federal, state, local
and other tax returns required to have been filed with respect to Borrower have
been filed, and payment or adequate provision has been made for the payment of
all taxes, fees, assessments and other governmental charges which have or may
become due pursuant to said returns or to assessments received, the failure of
any of which would not result in a Material Adverse Change, except to the extent
that such taxes, fees, assessments and other charges are being contested in good
faith by appropriate proceedings diligently conducted and for which such
reserves or other appropriate provisions, if any, as shall be required by GAAP
shall have been made.  There are no agreements or waivers extending
the statutory period of limitations applicable to any federal income tax return
of Borrower for any period.

       

      6.1.11.     Consents
and Approvals.

       

      Except
for the filing of financing statements and the relevant Collateral Pool Property
Documents in the appropriate state and county filing offices, there are no other
filings, consents and approvals necessary for the execution of this Agreement by
Borrower or its performance hereunder or under the Loan Documents, all of which
shall have been obtained or made on or prior to the Closing
Date.

      
        
           

        

        
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      6.1.12.       No
Event of Default; Compliance with Instruments.

       

      No event
has occurred and is continuing and no condition exists or will exist after
giving effect to the borrowings or other extensions of credit to be made on the
Closing Date or thereafter under or pursuant to the Loan Documents, which
constitutes an Event of Default or a Potential Default.  Borrower is
not, by execution of this Agreement and the Collateral Pool Property Documents,
as applicable, in violation of (i) any term, as applicable, of its certificate
of limited partnership, limited partnership agreement, certificate of formation,
limited liability company agreement or other organizational documents or (ii)
any material agreement or instrument to which it is a party or by which it, or
any of the Collateral Pool Properties which it owns, may be subject or bound
where such violation would constitute a Material Adverse Change.

       

      6.1.13.       Security
Interests.

       

      The Liens
and security interests granted to and for the benefit of Lender pursuant to the
Loan Documents constitute and will continue to constitute first priority
security interests under the Uniform Commercial Code covering the personal
property described therein as in effect in each applicable jurisdiction (the
“Uniform Commercial Code”) or other Law, entitled to all the rights, benefits
and priorities provided by the Uniform Commercial Code or such Law, subject to
the Permitted Exceptions.  Upon the filing of financing statements
relating to said security interests in each office in which filing is required
under the Uniform Commercial Code all such action as is necessary or advisable
to establish such rights of Lender will have been taken, and there will be, upon
execution and delivery of the Loan Documents, such
filings and such taking of possession, no necessity for any further action in
order to preserve, protect and continue such rights, except the filing of
continuation statements with respect to such financing statements within six (6)
months prior to the expiration of such filing of such financing statements or
any other requirement under the Uniform Commercial Code to maintain the
perfection of such security interest.  All filing fees and other
reasonable expenses in connection with each such action have been or will be
paid by Borrower.  All continuations and any assignments of any such
financing statements have been or will be timely filed or refiled, as
appropriate, in the appropriate recording offices.  Without limiting
the foregoing representations and warranties, Borrower hereby authorizes Lender
to file financing statements, continuation statements and financing statement
amendments, in such form as Lender may require to perfect or continue the
perfection of such security interests and in all events without Borrower’s
signature.

       

      6.1.14.       Mortgage
Liens.

       

      The Liens
granted to and for the benefit of Lender pursuant to the Collateral Pool
Property Documents constitute a valid first priority Lien covering the real
property described therein under applicable Law, subject to any Permitted
Exceptions.  All such action as will be necessary or advisable to
establish such Lien of Lender and its priority as described in the preceding
sentence will be taken at or prior to the time required for such purpose, and
there will be as of the date of execution and delivery of the Collateral Pool
Property Documents no necessity for any further action in order to protect,
preserve and continue such Lien and such priority.  All filing fees
and other reasonable expenses in connection with each such action have been or
will be paid by Borrower.

       

      
        
           

        

        
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      6.1.15.       Insurance.

       

      All
insurance policies and other bonds to which Borrower is a party are valid and in
full force and effect.  No notice has been given, no claim has been
made, and no grounds exist, to cancel or avoid any of such policies or bonds or
to reduce the coverage provided thereby.  Such policies and bonds
provide adequate coverage from reputable and financially sound insurers in
amounts sufficient to insure the assets and risks of Borrower in accordance with
prudent business practice in their respective industries.

       

      6.1.16.       Material
Contracts; Burdensome Restrictions.

       

      All
material contracts relating to Borrower, taken as a whole, are valid, binding
and enforceable upon such parties, as applicable, and, to Borrower’s knowledge,
each of the other parties thereto in accordance with their respective terms
(except as disclosed in writing by Borrower to Lender prior to the date hereof)
and except to the extent that enforceability of any such contracts may be
limited by bankruptcy, insolvency, reorganization, moratorium or any other
similar Laws affecting the enforceability of creditors’ rights generally or
limited the rights of specific performance.  There is no default under
any such contracts by Borrower, or to Borrower’s knowledge by any of the other
parties thereto, except for defaults which would not result in a Material
Adverse Change.  Borrower is not bound by any contractual obligation,
or subject to any restriction in any organizational document, or any requirement
of Law, which is reasonably expected to result in a Material Adverse
Change.

       

      6.1.17.       Investment
Companies; Regulated Entities.

       

      Borrower
is not an “investment company” registered or required to be registered under the
Investment Company Act of 1940 or under the “control” of an “investment company”
as such terms are defined in the Investment Company Act of 1940 and shall not
become such an “investment company” or under such “control.”  Borrower
is not subject to any other federal or state statute or regulation limiting its
ability to incur any debt.

       

      6.1.18.       Pension
Plans and Benefit Arrangements.

       

      The
representations and warranties set forth in this Section 6.1.18 shall only
apply to the extent Borrower is at any time, and from time to time, subject to
the provisions of ERISA.

       

      6.1.18.1.       Borrower
and each other member of the ERISA Group are in compliance in all material
respects with any applicable provisions of ERISA with respect to all Benefit
Arrangements, Pension Plans and Multiemployer Plans.  There has been
no Prohibited Transaction with respect to any Benefit Arrangement or any Pension
Plan or, with respect to any Multiemployer Plan, which could result in any
material liability of Borrower or any other member of the ERISA
Group.  Borrower and all members of the ERISA Group have made when due
any and all payments required to be made under any agreement relating to a
Multiemployer Plan or any Law pertaining thereto.  With respect to
each Pension Plan and Multiemployer Plan, Borrower and each member of the ERISA
Group (i) have fulfilled in all material respects their obligations under
the minimum funding standards of ERISA, (ii) have not incurred any
liability to the PBGC, and (iii) have not had asserted against them any
penalty for failure to fulfill the minimum funding requirements of
ERISA.

      
        
           

        

        
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      6.1.18.2.       Each
Multiemployer Plan is able to pay benefits thereunder when due.

       

      6.1.18.3.       Neither
Borrower nor any other member of the ERISA Group has instituted or intends to
institute proceedings to terminate any Pension Plan.

       

      6.1.18.4.       No
event requiring notice to the PBGC under Section 302(f)(4)(A) of ERISA has
occurred or is reasonably expected to occur with respect to any Pension Plan,
and no amendment with respect to which security is required under
Section 307 of ERISA has been made or is reasonably expected to be made to
any Pension Plan.

       

      6.1.18.5.       The
aggregate actuarial present value of all benefit liabilities (whether or not
vested) under each Pension Plan, determined on a plan termination basis, as
disclosed in, and as of the date of, the most recent actuarial report for such
Pension Plan, does not exceed the aggregate fair market value of the assets of
such Pension Plan.

       

      6.1.18.6.       Neither
Borrower nor any other member of the ERISA Group has incurred or reasonably
expects to incur any material withdrawal liability under ERISA to any
Multiemployer Plan.  Neither Borrower nor any other member of the
ERISA Group has been notified by any Multiemployer Plan that such Multiemployer
Plan has been terminated within the meaning of Title IV of ERISA, and no
Multiemployer Plan is reasonably expected to be reorganized or terminated,
within the meaning of Title IV of ERISA.

       

      6.1.18.7.       To
the extent that any Benefit Arrangement is insured, Borrower and all members of
the ERISA Group have paid when due all premiums required to be paid for all
periods through and including the Closing Date.  To the extent that
any Benefit Arrangement is funded other than with insurance, Borrower and all
other members of the ERISA Group have made when due all contributions required
to be paid for all periods through the Closing Date.

       

      6.1.18.8.       All
Pension Plans, and with respect to Benefit Arrangements other than Pension Plans
and Multiemployer Plans, they have not failed to be administered in accordance
with their terms and any Law in any way that would result in a Material Adverse
Change and Multiemployer Plans have been administered in accordance with their
terms and any Law.

       

      6.1.19.       Intentionally
Omitted.

       

      
        
          
             

          

          
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      6.1.20.       Solvency.

      Borrower
is Solvent.  After giving effect to the transactions contemplated by
the Loan Documents, including the Loan incurred thereunder and the Liens granted
to and for the benefit of Lender, Borrower will be Solvent.  Borrower
has not entered into this Credit Agreement or any Loan Document with the actual
intent to hinder, delay, or defraud any creditor, and Borrower has received
reasonably equivalent value in exchange for its obligations under the Loan
Documents.  Borrower does not intend to, and Borrower does not believe
that it will, incur debts and liabilities beyond its ability to pay such debts
as they mature (taking into account the timing and amounts to be payable on or
in respect of obligations of Borrower).

       

      6.1.21.       Agreements.

       

      Borrower
is not a party to any agreement or instrument or subject to any restriction
which is likely to result in a Material Adverse Change.  Borrower is
not in default in any respect in the performance, observance or fulfillment of
any of the obligations, covenants or conditions contained in any indenture,
agreement or instrument to which it is a party or by which Borrower or any
Collateral Pool Property is bound in any manner which would result in a Material
Adverse Change, and Borrower has received no notice of default under any such
indenture, agreement or instrument.

       

      6.1.22.       No
Bankruptcy Filing.

       

      Borrower
is not contemplating either the filing of a petition by it under any state or
federal bankruptcy or insolvency Laws or the liquidation of all or a major
portion of its assets or property and Borrower has no knowledge of any Person
contemplating the filing of any such petition against Borrower.

       

      6.1.23.       Formation.

       

      REIT was
formed in the state of Tennessee; Operating Partnership was formed in the state
of Tennessee; and MAA Texas was formed in the state of Texas.

       

      6.1.24.       Compliance.

       

      Borrower,
each Collateral Pool Property and the use thereof and operations thereat by a
Property Borrower, comply in all material respects with all applicable
Laws.  Borrower is not in default or violation of any order, writ,
injunction, decree or demand of any Official Body, the violation of which is
reasonably likely to result in a Material Adverse Change.  All
required permits, licenses, and certificates for the lawful use and operation of
the Collateral Pool Properties, including, but not limited to, certificates of
occupancy, apartment licenses, or the equivalent have been obtained and are in
full force and effect, the failure of which would result in a Material Adverse
Change, and Borrower has received no notice that it does not have all such
required permits, licenses and certificates.

       

      6.1.25.       Not
a Foreign Person.

       

      Borrower
is not a “foreign person” within the meaning of Section 1445(f)(3) of the
Internal Revenue Code.

       

      6.1.26.       Labor
Matters.

       

      Borrower
is not a party to any collective bargaining agreements.

      
        
           

        

        
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      6.1.27.       Condemnation.

       

      No
taking, condemnation or eminent domain proceeding has been commenced or, to
Borrower’s knowledge, is contemplated with respect to all or any portion of any
Collateral Pool Property or for the relocation of roadways providing access to
any Collateral Pool Property which would result in a Material Adverse
Change.

       

      6.1.28.       Utilities
and Public Access.

       

      Each
Collateral Pool Property has adequate rights of access to public ways and is
served by adequate water, sewer, sanitary sewer and storm drain facilities as
are adequate for full utilization of such Collateral Pool Property for its use
as a multifamily residential property.  All public utilities necessary
to the continued use and enjoyment of each Collateral Pool Property as presently
used and enjoyed are located in the public right-of-way abutting the premises,
and all such utilities are connected so as to serve each Collateral Pool
Property either (i) without passing over other property or, (ii) if such
utilities pass over other property, pursuant to valid easements.  All
roads necessary for the full utilization of each Collateral Pool Property for
its current purpose have been completed and dedicated to public use and accepted
by all Official Bodies or are the subject of access easements for the benefit of
such Collateral Pool
Property.       

       

      6.1.29.       No
Joint Assessment; Separate Lots.

       

      Borrower
has not and shall not suffer, permit or initiate the joint assessment of any
Collateral Pool Property (i) with any other real estate property
constituting a separate tax lot, and (ii) with any portion of such
Collateral Pool Property which may be deemed to constitute personal property, or
any other procedure whereby the lien of any taxes which may be levied against
such personal property shall be assessed or levied or charged to such Collateral
Pool Property as a single lien.  Each Collateral Pool Property is
comprised of one or more parcels, each of which constitutes a separate tax lot
and none of which constitutes a portion of any other tax lot.

       

      6.1.30.       Assessments.

       

      Except as
disclosed in the title insurance policies, there are no pending or, to
Borrower’s knowledge proposed special or other assessments for public
improvements or otherwise affecting any Collateral Pool Property, nor, to
Borrower’s knowledge are there any contemplated improvements to any Collateral
Pool Property that may result in such special or other assessments.

       

      6.1.31.       Intentionally
Omitted.

       

      6.1.32.       No
Prior Assignment.

       

      As of the
Closing Date, (i) Lender shall be assignee of Property Borrower’s interest
under any leases with respect to the Collateral Pool Properties, and
(ii) there are no prior assignments of any such leases or any portion of
the rents due and payable thereunder or to become due and payable thereunder
which are presently outstanding.

      
        
           

        

        
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      6.1.33.       Certificate
of Occupancy.

       

      Each
Property Borrower has obtained (in its own name or is the express successor or
assignee of) all permits necessary to use and operate the Collateral Pool
Properties it owns for the uses described in Section 2.9, and all such
permits are in full force and effect.  The use being made of each
Collateral Pool Property is in conformity in all respects with the certificate
of occupancy.  The use being made of each Collateral Pool Property is
in conformity in all aspects with the permits for such Collateral Pool Property
and any other restrictions, covenants or conditions affecting such Collateral
Pool Property, including without limitation, the applicable zoning and land use
ordinances, except for those failures which would not result in a Material
Adverse Change, and Borrower has received no notice that it is not in conformity
with such permits, restrictions, covenants or conditions.  Each
Collateral Pool Property contains all equipment necessary to use and operate
such Collateral Pool Property in a first-class manner.  Property
Borrower will continue to operate its respective Collateral Pool Property in the
manner in which it is presently being operated.

       

      6.1.34.       Intellectual
Property.

       

      All
trademarks, trade names and service marks that Borrower owns or has pending, or
under which Borrower is licensed, are in good standing and
uncontested.  Borrower has not infringed, is not infringing, and has
not received notice of infringement with respect to any asserted trademarks,
trade names or service marks of others.  To Borrower’s knowledge there
is no infringement by others of any trademarks, trade names or service marks of
Borrower.

       

      6.1.35.       Conduct
of Business.

       

      Borrower
does not conduct its business “also known as”, “doing business as” or under any
other name except, in the case of a Property Borrower, as to the use of the name
of each Collateral Pool Property, and in such case, pursuant to any applicable
fictitious name statute.

       

      6.1.36.       Title
Insurance.

       

      Each
Collateral Pool Property is covered by a title insurance policy acceptable to
Lender.

       

      6.1.37.       No
Default.

       

      The
execution, delivery and performance of the obligations imposed on Borrower, if
any, under this Agreement, the Revolving Credit Note and the other Loan
Documents will not cause Borrower to be in default under the provisions of any
agreement, judgment or order to which Borrower is a party or by which Borrower
is bound.  There is no litigation or other claim pending before any
court or administrative or governmental body or, to Borrower’s knowledge,
overtly threatened by a written communication against Borrower, any Collateral
Pool Property, or any other property of Borrower which would result in a
Material Adverse Change or which is not covered by insurance.

       

      
        
          
             

          

          
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      6.1.38.       Condition
of the Collateral Pool Properties.

       

      To the
extent that any Collateral Pool Property has been damaged by fire, water, wind,
earthquake or other cause of loss, such Collateral Pool Property has been fully
restored or will be fully restored within a reasonable period of time after the
Closing Date or after any such casualty.

       

      6.1.39.       Non-Residential
Leases.

       

      Each
Collateral Pool Property is a multi-family housing project.  Gross
income derived from commercial space, if any, located in any Collateral Pool
Property shall not exceed fifty percent (50%) of the total gross income of such
Collateral Pool Property.  Neither Borrower, nor any general partner,
managing member or principal thereof is, directly or indirectly, controlling,
controlled by, under common control with, or otherwise related to the lessor
under any leases for laundry equipment, telecommunications, television or
similar systems on or about any of the Collateral Pool Properties.

       

      6.1.40.       No
Low Income Housing Tax Credit.

       

      Except as
disclosed to Lender in writing, Borrower has not claimed, nor does Borrower
intend to claim a low income housing tax credit for any of the Collateral Pool
Properties under Section 42 of the Internal Revenue Code of 1986, or any
successor Section thereto.  Should Borrower later decide to pursue
claiming such a tax credit, Borrower will not proceed without obtaining Lender’s
prior written consent to do so, to be granted in Lender’s sole
discretion.

       

      6.1.41.       No
Restrictions.

       

      Except as
disclosed to Lender in writing, there are no rent level restrictions or tenant
income restrictions on any Collateral Pool Property.

       

      6.1.42.       No
Adverse Affect on the Loan.

       

      Nothing
involving the Collateral Pool Properties, Borrower or Borrower’s credit standing
may be reasonably expected to (i) cause any payments under this Agreement, the
Revolving Credit Note and any other Loan Documents to become delinquent or (ii)
adversely affect the Market Value of any Collateral Pool Property.

       

      6.1.43.       Term
of Leases.

       

      Except as
disclosed to Lender in writing, all residential leases with respect to the
Collateral Pool Property are for terms of two (2) years or less.

       

      6.1.44.       Fraudulent
Conveyances.

       

      Borrower
has not entered into any agreements, transactions or series of transactions with
the intent to hinder, delay, or defraud any creditor, and Borrower has not
entered into any agreements, transactions or series of transactions (except in
connection with a corporate merger or reorganization involving entities which
both prior to and following such merger or reorganization were Affiliates of
Borrower) other than for valid consideration of reasonably equivalent value in
exchange for its obligations thereunder.

      
        
           

        

        
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      6.1.45.       Affiliate
Transactions.

       

      Except as
approved in writing by Lender, Borrower has not entered into and is not a party
to any contract, lease or other agreement with any Person directly or indirectly
controlling, controlled by, or under common control with Borrower for the
provision of any service, materials or supplies to any Collateral Pool Property
(including any contract, lease or agreement for the provision of property
management services, cable television services or equipment, gas, electric or
other utilities, security services or equipment, laundry services or equipment,
or telephone services or equipment).

       

      6.2.     
  Updates.

       

      Borrower
shall provide with each Loan Request that will result in an increase in the
Loan, written revisions to any representations or warranties in this Agreement
which have become outdated or incorrect in any material respect.  In
addition, should any such updates, corrections or additions relate to a matter
which would be a Material Adverse Change, Borrower shall promptly provide Lender
in writing with such revisions as may be necessary or appropriate, to correct or
update same.  Notwithstanding the providing of revised information, a
breach of warranty or representation resulting from the prior inaccuracy or
incompleteness shall not be deemed to have been cured thereby or waived by
Lender unless and until Lender, in its sole and absolute discretion, shall have
accepted in writing such revisions or updates, further provided that no
representation or warranty shall be deemed to have been updated by any such
revision unless and until Lender funds the additional Loan Request.

       

      6.3.     
   Survival of Representations and Warranties.

       

      Each
Borrower agrees that (i) all of the representations and warranties of such
Borrower set forth in this Agreement and in the other Loan Documents delivered
on the Closing Date are made as of the Closing Date (except as expressly
otherwise provided) and (ii) all representations and warranties made by such
Borrower shall survive the delivery of the Revolving Credit Note and continue
(a) for so long as any amount remains owing to Lender under this Agreement, the
Revolving Credit Note or any of the other Loan Documents or (b) until the date
on which Lender releases all assets in the Collateral Pool from any Lien
securing the Loan Documents pursuant to the provisions of Section 2.11 or Section 2.16, whichever is
later. All
representations, warranties, covenants and agreements made in this Agreement or
in the other Loan Documents shall be deemed to have been relied upon by Lender
notwithstanding any investigation heretofore or hereafter made by Lender or on
its behalf.

       

      
        
          
          

        

        
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      7.          COVENANTS

       

      7.1.   
     Covenants.

      Borrower
covenants and agrees that until the later of (i) payment in full of the Loan and
interest thereon, and satisfaction of all of the other Obligations of Borrower
under the Loan Documents (including, but not limited to, performance of all
actions necessary to terminate each Qualified Rate Swap Agreement, which shall
include, but not be limited to, compliance with all notice requirements under
each Qualified Rate Swap Agreement and the deposit with Lender for payment to
the applicable counterparty of each Qualified Rate Swap Agreement, any payments
due under any Qualified Rate Swap Agreement and all Hedge Fees) and (ii) the
Expiration Date, Borrower shall comply at all times with the following
covenants:

       

      7.1.1.       Preservation
of Existence.

       

      Borrower
shall maintain its legal existence as a corporation, general or limited
partnership or limited liability company, as applicable, and its license or
qualification and good standing in each jurisdiction in which its ownership or
lease of property or the nature of its business makes such license or
qualification necessary unless the failure to maintain the same shall not result
in a Material Adverse Change to Borrower or any Collateral Pool
Property.

       

      7.1.2.       Maintenance
of Collateral Pool Properties and Leases.

       

      Borrower
(i) shall not commit waste or permit impairment or deterioration of the
Collateral Pool Properties, (ii) shall not abandon any Collateral Pool Property,
(iii) shall restore or repair promptly, in a good and workmanlike manner, any
damaged part of any Collateral Pool Property to the equivalent of its original
condition, or such other condition as Lender may approve in writing, whether or
not insurance proceeds or condemnation awards are available to cover any costs
of such restoration or repair (provided that Lender shall make any insurance
proceeds or condemnation awards received by Lender available to Borrower for
restoration and repair), (iv) shall keep the Collateral Pool Properties in good
repair (normal wear and tear excepted), including the replacement of any
personalty and fixtures located on any Collateral Pool Property with items of
equal or better function and quality, (v) shall provide for professional
management of the Collateral Pool Properties by a residential rental property
manager satisfactory to Lender under a contract approved by Lender in writing
(provided that Lender’s approval is not required for a manager or a management
agreement where an Affiliate of Borrower is the manager), (vi) shall not change
the use of any Collateral Pool Property as a multi-family residential property,
(vii) shall give notice to Lender of and, unless otherwise directed in writing
by Lender, shall appear in and defend any action or proceeding purporting to
affect any Collateral Pool Property, Lender’s security or Lender’s rights under
this Agreement, and (viii) shall make any reasonable repairs to a Collateral
Pool Property which is requested by Lender.  Borrower shall not (and
shall not permit any tenant or other person to) remove, demolish or alter any
Collateral Pool Property or any part thereof except in connection with the
replacement of tangible personalty or in the ordinary course of
business.

       

      7.1.3.       Collateral
Agreements.

       

      Borrower
shall deposit with Lender such amounts as may be required by any Collateral
Agreement and shall perform all other obligations of Borrower under each
Collateral Agreement.

       

      7.1.4.       Inspection
Rights.

       

      Lender,
its agents, representatives, and designees may make or cause to be made entries
upon and inspections of any Collateral Pool Property (including environmental
inspections and tests) during normal business hours, or at any other reasonable
time upon reasonable notice (except in an emergency).

      
        
           

        

        
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      7.1.5.       Intentionally
Omitted.

       

      7.1.6.       Use
of Proceeds.

       

      Borrower
will use the proceeds of the Loan only for lawful purposes in accordance with
Section 2.9
hereof.

       

      7.1.7.       Further
Assurances.

       

      Borrower
shall, or shall cause Property Borrower to, from time to time, at its expense,
faithfully preserve and protect Lender’s Lien on and security interest in the
Collateral as a continuing first priority perfected Lien, subject only to
Permitted Exceptions, and shall do such other acts and things as Lender in its
sole discretion may deem necessary or advisable from time to time in order to
preserve, perfect and protect the Liens granted under the Loan Documents and to
exercise and enforce its rights and remedies thereunder with respect to the
Collateral, provided that (i) the terms and conditions of this Agreement and the
other Loan Documents are not changed thereby, (ii) Lender will use its best
efforts to minimize costs and expenses incurred in connection with a request
under this subsection, and (iii) Borrower’s obligations hereunder or under any
other Loan Documents are not increased or otherwise adversely affected thereby
except for incidental costs and expenses such as recording fees and reasonable
attorneys’ fees and expenses.

       

      7.1.8.       Collateral
Pool Properties.

       

      7.1.8.1.       Borrower,
as a whole, shall be in compliance with the Sublimits set forth in Section 2.6.1 at such
times as expressly required in this Agreement; and

       

      7.1.8.2.       Each
Property Borrower shall own at all times the entire equity interest in its
respective Collateral Pool Property.

       

      7.1.9.       Subsequent
Periodic Valuations.

       

      Borrower
shall cooperate with Lender and its agent and provide such information in its
possession as such parties shall reasonably require to complete a new Valuation
for each Collateral Pool Property. 

       

      7.1.10.     Special
ERISA Related Covenants.

       

      The
covenants set forth in this Section 7.1.10, shall only
apply to the extent Borrower is at any time and from time to time subject to the
provisions of ERISA.

       

      7.1.10.1.       Borrower
shall at all times be a “real estate operating company” within the meaning of
such term contained in 29 CFR § 2510.3-101(d) or an entity whose underlying
assets are not deemed to be assets of a Pension Plan as defined in Section 3(3)
of ERISA.

      
        
           

        

        
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      7.1.10.2.       Borrower
shall, and shall cause each other member of the ERISA Group to, comply with
ERISA, the Internal Revenue Code and other applicable Laws applicable to
Pension Plans and Benefit Arrangements.  Without limiting the
generality of the foregoing, Borrower shall cause all of its Pension Plans and
all Pension Plans maintained by any member of the ERISA Group to be funded in
accordance with the minimum funding requirements of ERISA and shall make, and
cause each member of the ERISA Group to make, in a timely manner, all
contributions due to Pension Plans, Benefit Arrangements and Multiemployer
Plans.

       

      7.1.10.3.       Borrower
and members of the ERISA Group shall not:

       

      (i)        fail
to satisfy the minimum funding requirements of ERISA and the Internal Revenue
Code with respect to any Pension Plan;

       

      (ii)       request
a minimum funding waiver from the Internal Revenue Service with respect to any
Pension Plan;

       

      (iii)      engage
in a Prohibited Transaction with any Pension Plan, Benefit Arrangement or
Multiemployer Plan which, alone or in conjunction with any other circumstances
or set of circumstances resulting in liability under ERISA, would constitute a
Material Adverse Change;

       

      (iv)      permit
the aggregate actuarial present value of all benefit liabilities (whether or not
vested) under each Pension Plan, determined on a plan termination basis, as
disclosed in the most recent actuarial report completed with respect to such
Pension Plan, to exceed, as of any actuarial valuation date, the fair market
value of the assets of such Pension Plan;

       

      (v)       fail
to make when due any contribution to any Multiemployer Plan that Borrower or any
member of the ERISA Group may be required to make under any agreement relating
to such Multiemployer Plan, or any Law pertaining thereto;

       

      (vi)      withdraw
(completely or partially) from any Multiemployer Plan or withdraw (or be deemed
under Section 4062(e) of ERISA to withdraw) from any Multiple Employer
Pension Plan (as such term is defined in ERISA), where any such withdrawal is
likely to result in a material liability of Borrower or any member of the ERISA
Group;

       

      (vii)     terminate,
or institute proceedings to terminate, any Pension Plan, where such termination
is likely to result in a material liability to Borrower or any member of the
ERISA Group;

       

      (viii)    make
any amendment to any Pension Plan with respect to which security is required
under Section 307 of ERISA; or

       

      (ix)       fail
to give any and all notices and make all disclosures and governmental filings
required under ERISA or the Internal Revenue Code, where such failure is likely
to result in a Material Adverse
Change.       

      
        
           

        

        
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      7.1.11.       Intentionally
Omitted.

       

      7.1.12.       Liens.

       

      Borrower
shall not at any time create, incur, assume or suffer to exist any Lien on any
of the Collateral Pool Properties, or agree or become liable to do so, except
the Permitted Exceptions and any Liens created by or permitted pursuant to the
Loan Documents.  Upon Lender’s reasonable request, Borrower shall
promptly perform or cause to be performed, at Borrower’s sole cost and expense,
a title search satisfactory to Lender, demonstrating compliance with the
provisions of this Section
7.1.12. Notwithstanding the foregoing, after prior written notice to
Lender, Borrower, at its own expense, may (i) contest by appropriate legal,
administrative or other proceeding, promptly initiated and conducted in good
faith and with due diligence, (A) the amount, validity or application in whole
or in part of any Lien, (B) the application of any instrument of record
affecting any Collateral Pool Property or any part thereof (other than the Loan
Documents), or (C) any claims or judgments of mechanics, materialmen, suppliers,
vendors, or any other persons, and may (ii) withhold payment of the same pending
such proceedings if permitted by law, provided that (A) no Event of Default has
occurred and remains uncured, except for, prior to acceleration, an Event of
Default caused by the matter being contested, (B) such proceedings shall suspend
any collection of the contested Lien from the applicable Collateral Pool
Property, Borrower or Lender, or adequate time for the final determination of
such contest shall remain prior to such collection, (C) Borrower shall have
furnished Lender with security (in an amount subject to Lender’s reasonable
approval) to insure the removal of the Lien, together with all reasonably
anticipated interest and penalties thereon, and (D) Borrower shall promptly,
upon the final determination of such contest, as applicable, pay the amount of
any such Liens, together with all costs, interest and penalties which may be
payable in connection therewith.

       

      7.1.13.       Liquidations,
Mergers, Consolidations, Acquisitions.

       

      Except as
provided in Section
7.1.14, Borrower shall not dissolve, liquidate or wind-up its affairs, or
become a party to any merger or consolidation, or acquire by purchase, lease or
otherwise all or substantially all of the assets or capital stock of any other
Person other than the Collateral Pool Properties and all of the membership
interests of any Property Borrower provided any such Property Borrower becomes a
Borrower pursuant to the Loan Documents.

       

      7.1.14.       Dispositions
of Assets.

       

      7.1.14.1.       Except
for Permitted Transfers or in connection with a corporate merger or
reorganization involving entities which both prior to and following such merger
or reorganization were Affiliates of Borrower, Borrower shall not (i) sell,
convey, assign, lease, abandon or otherwise transfer or dispose of, voluntarily
or involuntarily, all or substantially all of its assets or (ii) transfer assets
with the intent to hinder, delay or defraud any creditor, provided that the
foregoing shall not be construed to prevent Borrower from selling, conveying or
leasing its assets in the ordinary course of Borrower’s business, in accordance
with its organizational documents, for valid consideration of reasonably
equivalent value, and as permitted pursuant to the terms of this Agreement,
further provided that following any such transfer Borrower shall (a) remain
solvent immediately thereafter and (b) retain sufficient capital to carry out
its business as previously conducted.

      
        
           

        

        
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      7.1.14.2.       Notwithstanding
the provisions of Section
7.1.14.1, the following transfers by Borrower are permitted without the
consent of Lender:

       

      7.1.14.2.1.       A
transfer that occurs by inheritance, devise, or bequest or by operation of law
upon the death of a natural person who is an owner of a Collateral Pool Property
or the owner of a direct or indirect ownership interest in
Borrower;

       

      7.1.14.2.2.       The
grant of a leasehold interest in individual dwelling units or commercial spaces
in accordance with the Security Instrument;

       

      7.1.14.2.3.       A
sale or other disposition of obsolete or worn out personal property which is
contemporaneously replaced by comparable personal property of equal or greater
value which is free and clear of liens, encumbrances and security interests
other than those created by the Loan Documents;

       

      7.1.14.2.4.       The
creation of a mechanic’s or materialmen’s lien or judgment lien against a
Collateral Pool Property which is released of record or otherwise remedied to
Lender’s satisfaction within thirty (30) days of the date of
creation;

       

      7.1.14.2.5.       The
issuance or transfer of shares of common stock, limited partnership interests or
other beneficial or ownership interests or other forms of securities in
Borrower, including all varieties of convertible debt, equity and other similar
securities (including interests in Operating Partnership or MAA Texas
convertible into interests in REIT); provided, however, that no Change in
Control occurs as a result of such issuance or transfer, either upon such
transfer or upon the subsequent conversion to equity of such convertible debt or
other securities;

       

      7.1.14.2.6.       A
merger with or acquisition of another entity by any Borrower, provided that (i)
said Borrower is the surviving entity after such merger or acquisition, (ii) no
Change in Control occurs, and (iii) such merger or acquisition does not result
in an Event of Default, Potential Default, or Material Adverse
Change;

       

      7.1.14.2.7.       A
transfer in connection with any addition, substitution, or release of any
Collateral Pool Property pursuant to the terms and conditions of this
Agreement.

       

      7.1.14.3.       Notwithstanding
the provisions of Section
7.1.14.1 or Section
7.1.14.2, the following transfers by Borrower are permitted only with the
consent of Lender:

      
        
           

        

        
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      7.1.14.3.1.       The
grant of an easement, if (i) prior to the granting of the easement Borrower
causes to be submitted to Lender all information required by Lender to evaluate
the easement, (ii) Lender consents to such easement based upon Lender’s
determination that the easement will not result in a Material Adverse Change
with respect to the applicable Collateral Pool Property or to Lender’s interest
therein and (iii) Borrower pays to Lender, on demand, all reasonable costs and
expenses incurred by Lender in connection with Lender’s review of said easement;
Lender shall not unreasonably withhold its consent to or withhold its agreement
to subordinate the lien of a Security Instrument to (a) the grant of a utility
easement connecting a Collateral Pool Property to a publicly operated utility,
or (b) the grant of an easement related to expansion or widening of roadways,
provided that any such easement is in form and substance reasonably acceptable
to Lender and does not result in a Material Adverse Change with respect to the
applicable Collateral Pool Property or Lender’s interest therein.

       

      7.1.15.       Affiliate
Transactions.

       

      Except as
approved in writing by Lender, Borrower shall not enter into or become a party
to any contract, lease or other agreement with any Person directly or indirectly
controlling, controlled by, or under common control with Borrower for the
provision of any service, materials or supplies to any Collateral Pool Property
(including any contract, lease or agreement for the provision of property
management services, cable television services or equipment, gas, electric or
other utilities, security services or equipment, laundry services or equipment,
or telephone services or equipment).

       

      7.1.16.       Continuation
of or Change in Business.

       

      Borrower
shall not engage in any business activities except as permitted under its
organizational documents and this Agreement.

       

      7.1.17.       Changes
in Organizational Documents; Name.

       

      Borrower
and its general partners, managing members, limited partners or principals, as
applicable, shall not (except for any Permitted Transfer) amend in any respect
their respective certificate of incorporation (including any provisions or
resolutions relating to capital stock), by-laws, certificate of limited
partnership, or limited partnership agreement (as applicable) or other formation
agreement or other organizational documents without first sending notice to
Lender and obtaining the prior written consent of Lender, which shall be granted
or denied within thirty (30) Business Days of Lender’s receipt of the proposed
amendment, a brief explanation of its purpose and effect, and such other
documents as Lender may reasonably request; provided, however, Borrower and such
parties described herein shall have the right to make such amendments without
Lender’s consent so long as such amendments (i) do not materially change the
terms of such referenced documents, (ii) do not result in an Event of Default or
Material Adverse Change, and (iii) after giving effect to such amendment,
Borrower shall be in compliance with all the provisions
herein.  Borrower shall not amend, revise or otherwise change its name
in any respect, without the prior written consent of Lender.

       

      7.1.18.       Properties
Under Development.

       

      Except as
disclosed to Lender in writing, no Collateral Pool Property shall be raw land or
property under construction or development with respect to which property
construction or reconstruction will be needed before the property can be leased
to tenants paying rent.

       

      
        
          
             

          

          
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      7.1.19.       Further
Documentation.

       

      In the
event any further documentation or information is required by Lender to enable
Lender to sell the Loan, Borrower shall provide, or cause to be provided to
Lender, at Borrower’s sole cost and expense, such documentation or
information.  Borrower shall execute and deliver to Lender such
documentation, including, but not limited to, any amendments, corrections,
deletions or additions to this Agreement, the Revolving Credit Note, and the
other Loan Documents as is required by Lender; provided that Borrower shall not
be required to do anything that has the effect of (i) changing the material
economic or other business terms of this Agreement, the Revolving Credit Note,
or any other Loan Documents or (ii) imposing on Borrower greater liability or
obligation than that set forth in this Agreement, the Revolving Credit Note or
any other Loan Documents.

       

      7.1.20.       Compliance
with Lender Requirements.

       

      Borrower
shall comply with the requirements of Lender (a copy of which has been provided
to Borrower) in order to enable Lender to sell the Loan, provided that Borrower
shall not be required to do anything that has the effect of (i) changing the
material economic or other business terms of this Agreement, the Revolving
Credit Note, or any other Loan Documents or (ii) imposing on Borrower greater
liability or obligation than that set forth in this Agreement, the Revolving
Credit Note or any other Loan Documents.

       

      7.1.21.       Subordination
of Leases.

       

      Borrower
covenants, if any lease of any Collateral Pool Property is not subordinate to
the Security Instrument securing such Collateral Pool Property, Borrower shall
(i) use a new standard lease form containing subordination language acceptable
to Lender, for all new leases of such Collateral Pool Property; and (ii) execute
the new form of lease on any renewal of any existing leases of such Collateral
Pool Property.

       

      7.1.22.       Enforceability
of Loan Documents.

       

      In the
event that any of the Loan Documents shall cease to be legal, valid and binding
agreements enforceable against the party executing the same or such party’s
successors and assigns (as permitted under the Loan Documents) in accordance
with the respective terms thereof (except to the extent that enforceability may
be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar Laws affecting the enforceability of creditors’ rights generally or
limiting the right to specific performance) or shall in any way be terminated
(except in accordance with its terms) or become or be declared ineffective or
inoperative or shall in any way be challenged or contested, resulting in the
failure to provide the practical benefit of the respective Liens, security
interests, rights, titles, interests, remedies, powers or privileges intended to
be created thereby, Borrower (with Lender’s cooperation) shall use best efforts
to cure any such defect(s) in such Loan Document(s), provided that if Borrower
is unable to cure any such defect(s) within a reasonable time period, not to
exceed thirty (30) days, Lender may in its discretion, upon ten (10) days
written notice to Borrower, accelerate Borrower’s obligations under the
Revolving Credit Note, except that if the Loan Documents lack enforceability
through no fault of the Borrower as determined by Lender in its sole discretion,
or as determined by a court of competent jurisdiction in a final, unappealable
decision, Borrower shall have no obligation to pay the Prepayment Fee and the
liquidated Unused Facility Fee, Minimum Usage Fee, and Minimum Servicing Fee
otherwise due hereunder, provided that the foregoing shall not excuse Borrower
from performance of all actions necessary to terminate each Qualified Rate Swap
Agreement, which shall include, but not be limited to, compliance with all
notice requirements under each Qualified Rate Swap Agreement and the deposit
with Lender for payment to the applicable counterparty of each Qualified Rate
Swap Agreement, any payments due under any Qualified Rate Swap Agreement and all
Hedge Fees.

      
        
           

        

        
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      7.1.23.       ERISA
Matters.

       

      The
provisions set forth in this Section 7.1.23, shall only
apply to the extent Borrower is at any time and from time to time subject to the
provisions of ERISA.  In the event that any of the following
occurs:  (i) any Reportable Event, which Lender determines in
good faith constitutes grounds for the termination of any Pension Plan by the
PBGC or the appointment of a trustee to administer or liquidate any Pension
Plan, shall have occurred and be continuing; (ii) proceedings shall have
been instituted or other action taken to terminate any Pension Plan, or a
termination notice shall have been filed with respect to any Pension Plan;
(iii) a trustee shall be appointed to administer or liquidate any Pension
Plan; (iv) the PBGC shall give notice of its intent to institute
proceedings to terminate any Pension Plan or Pension Plans or to appoint a
trustee to administer or liquidate any Pension Plan; and, in the case of the
occurrence of (i), (ii), (iii) or (iv) above, Lender determines in
good faith that the amount of Borrower’s liability is likely to cause a Material
Adverse Change; (v) Borrower or any member of the ERISA Group shall fail to
make any contributions when due to a Pension Plan or a Multiemployer Plan;
(vi) Borrower or any member of the ERISA Group shall make any amendment to
a Pension Plan with respect to which security is required under Section 307
of ERISA; (vii) Borrower or any member of the ERISA Group shall withdraw
completely or partially from a Multiemployer Plan; or (viii) any applicable Law,
rule or regulation is adopted, changed or interpreted by any governmental
authority or agency or court with respect to or otherwise affecting one or more
Pension Plans, Multiemployer Plans or Benefit Arrangements; and, with respect to
any of the events specified in (v), (vi), (vii) or (viii), Lender determines in
good faith that any such occurrence would be reasonably likely to materially and
adversely affect the total enterprise represented by Borrower and the other
members of the ERISA Group, Borrower shall use best efforts to cure such
occurrence(s), provided that if Borrower is unable to cure any such
occurrence(s) within a reasonable time period, not to exceed thirty (30) days,
Lender may in its discretion, upon ten (10) days notice to Borrower, accelerate
Borrower’s obligations under the Revolving Credit Note.

       

      7.2.    
    Reporting Requirements.

       

      Borrower
covenants and agrees that until the later of (i) payment in full of the Loan and
satisfaction of all of Borrower’s other Obligations hereunder and under the
other Loan Documents, including, but not limited to, performance of all actions
necessary to terminate each Qualified Rate Swap Agreement, which shall include,
but not be limited to, compliance with all notice requirements under each
Qualified Rate Swap Agreement and the deposit with Lender for payment to the
applicable counterparty of each Qualified Rate Swap Agreement, any payments due
under any Qualified Rate Swap Agreement and all Hedge Fees and (ii) the
Expiration Date, Borrower will furnish or cause to be furnished to
Lender:

      
        
           

        

        
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      7.2.1.       Notice
of Default.

       

      If to
Borrower’s knowledge an Event of Default or Potential Default has occurred with
respect to Borrower, a certificate signed by an Authorized Officer of Borrower
setting forth the details of such Event of Default or Potential Default and the
actions that Borrower proposes to take with respect thereto;

       

      7.2.2.       Notice
of Litigation.

       

      Promptly
after the commencement thereof, notice of all actions, suits, proceedings or
investigations before or by any Official Body or any other Person which (a)
relate to the Collateral, or (b) involve a claim or series of claims in excess
of One Million and NO/100 Dollars ($1,000,000.00) which is not covered by
Borrower’s insurance policies and which if adversely determined would constitute
a Material Adverse Change; and

       

      7.2.3.       Intentionally
Omitted.

       

      7.3.    
    Additional Affirmative Covenants.

       

      7.3.1.       Each
Borrower, with respect to itself,  agrees and covenants with Lender
that, at all times during the term of this Agreement:

       

      7.3.1.1.       Compliance
with Agreements. Borrower shall comply with all the terms and conditions of each
Loan Document to which it is a party or by which it is bound; provided, however,
that the Borrower’s failure to comply with such terms and conditions shall not
be an Event of Default until the expiration of the applicable notice and cure
periods, if any, specified in the applicable Loan Document.

       

      7.3.1.2.       Maintenance
of REIT Status.  During the term of this Agreement, REIT shall
qualify, and be taxed as, a real estate investment trust under Subchapter M of
the Internal Revenue Code, and will not be engaged in any activities which would
jeopardize such qualification and tax treatment.

       

      7.3.1.3.       Financial
Statements; Accountants’ Reports; Other Information.  Borrower shall
keep and maintain at all times complete and accurate books of accounts and
records in sufficient detail to correctly reflect (x) all of Borrower’s
financial transactions and assets and (y) the results of the operation of
each Collateral Pool Property and copies of all written contracts, leases and
other instruments which affect each Collateral Pool Property (including all
bills, invoices and contracts for electrical service, gas service, water and
sewer service, waste management service, telephone service and management
services).  In addition, Borrower shall furnish, or cause to be
furnished, to Lender:

      
        
           

        

        
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      (a)       Annual
Financial Statements.  As soon as available, and in any event within
ninety (90) days after the close of its fiscal year during the term of this
Agreement, the audited balance sheet of REIT and its subsidiaries as of the end
of such fiscal year, the  audited statement of income, equity and
retained earnings of REIT and its subsidiaries for such fiscal year and the
audited statement of cash flows of REIT and its subsidiaries for such fiscal
year, all in reasonable detail and stating in comparative form the respective
figures for the corresponding date and period in the prior fiscal year, prepared
in accordance with GAAP, consistently applied, and accompanied by a certificate
of REIT’s independent certified public accountants to the effect that such
financial statements have been prepared in accordance with GAAP, consistently
applied, and that such financial statements fairly present the results of its
operations and financial condition for the periods and dates indicated, 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)       Quarterly
Financial Statements.  As soon as available, and in any event within
forty-five (45) days after each of the first three fiscal quarters of each
fiscal year during the term of this Agreement, the unaudited balance sheet of
REIT and its subsidiaries as of the end of such fiscal quarter, the unaudited
statement of income and retained earnings of REIT and its subsidiaries and the
unaudited statement of cash flows of REIT and its subsidiaries for the portion
of the fiscal year ended with the last day of such quarter, all in reasonable
detail and stating in comparative form the respective figures for the
corresponding date and period in the previous fiscal year, accompanied by a
certificate of the Chief Financial Officer of REIT (who shall be an Authorized
Officer) to the effect that such financial statements have been prepared in
accordance with GAAP, consistently applied, and that such financial statements
fairly present the results of its operations and financial condition for the
periods and dates indicated subject to year end adjustments in accordance with
GAAP.

       

      (c)       Quarterly
Property Statements.  As soon as available, and in any event within
forty-five (45) days after each calendar quarter, a statement of income and
expenses of each Collateral Pool Property accompanied by a certificate of the
Chief Financial Officer of Borrower to the effect that each such statement of
income and expenses fairly, accurately and completely presents the operations of
each such Collateral Pool Property for the period indicated.

       

      (d)       Annual
Property Statements.  On an annual basis, within the first forty-five
(45) days of the applicable calendar year, an annual statement of income and
expenses of each Collateral Pool Property accompanied by a certificate of the
Chief Financial Officer of Borrower to the effect that each such statement of
income and expenses fairly, accurately and completely presents the operations of
each such Collateral Pool Property for the period indicated.

       

      (e)       Updated
Rent Rolls.  Upon Lender’s request (but not more frequently than
quarterly), a current rent roll for each Collateral Pool Property, showing the
name of each tenant, and for each tenant, the space occupied, the lease
expiration date, the rent payable, the rent paid and any other information
requested by Lender and accompanied by a certificate of the Chief Financial
Officer of Borrower to the effect that each such rent roll fairly, accurately
and completely presents the information required therein.

       

      (f)       Security
Deposit Information.  Upon Lender’s request, an accounting of all
security deposits held in connection with any lease of any part of any
Collateral Pool Property, including the name and identification number of the
accounts in which such security deposits are held, the name and address of the
financial institutions in which such security deposits are held and the name and
telephone number of the person to contact at such financial institution, along
with any authority or release necessary for Lender to access information
regarding such accounts.

      
        
           

        

        
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      (g)      Security
Law Reporting Information.  So long as REIT is a reporting company
under the Securities and Exchange Act of 1934, promptly upon becoming available,
(a) copies of all financial statements, reports and proxy statements sent or
made available generally by REIT, or any Person directly or indirectly
controlling, controlled by, or under common control with REIT, to their
respective security holders, (b) all regular and periodic reports and all
registration statements (other than the exhibits thereto and any registration
statements on Form S-8 or a similar form) and prospectuses, if any, filed by
REIT, or any Person directly or indirectly controlling, controlled by, or under
common control with REIT, with the Securities and Exchange Commission or other
Governmental Authorities, and (c) all statements made available generally by
REIT, or any Person directly or indirectly controlling, controlled by, or under
common control with REIT, to the public concerning material developments in the
business of REIT or any Person directly or indirectly controlling, controlled
by, or under common control with REIT.

       

      (h)      Accountants’
Reports.  Promptly upon receipt thereof, copies of any reports or
management letters submitted to Borrower by its independent certified public
accountants in connection with the examination of its financial statements made
by such accountants (except for reports otherwise provided pursuant to
subsection (a) above); provided, however, that Borrower shall only be required
to deliver such reports and management letters to the extent that they relate to
any Borrower or any Collateral Pool Property.

       

      (i)       Annual
Budgets.  Promptly, and in any event within sixty (60) days after the
start of the calendar year, an annual budget for each Collateral Pool Property
for such calendar year, setting forth an estimate of all of the costs and
expenses, including capital expenses, of maintaining and operating each
Collateral Pool Property.

       

      (j)       Borrower
Plans and Projections.  If prepared by Borrower, within ninety (90)
days after the beginning of each fiscal year, copies of (i) Borrower’s business
plan for the current and the succeeding fiscal year, (ii) Borrower’s annual
budget (including capital expenditure budgets) and projected budgets for each
Collateral Pool Property for the current and the succeeding calendar year; and
(iii) Borrower’s financial projections for the current and the succeeding fiscal
year, as prepared by Borrower’s Chief Financial Officer and in a format and with
such detail as Lender may require.

       

      (k)       Strategic
Plan.  Within ninety (90) days after the end of each fiscal year of
Borrower, Borrower shall deliver to Lender a written narrative discussing
Borrower’s publicly disclosed short and long range plans, including its plans
for operations, mergers, acquisitions and management, and accompanied by
supporting financial projections and schedules, certified by a member of Senior
Management as true, correct and complete (“Strategic Plan”)  If
Borrower’s Strategic Plan materially changes, then such person shall deliver to
Lender the Strategic Plan as so changed.

       

      (l)       Annual
Rental and Sales Comparable Analysis.  Within thirty (30) days after
Lender’s request, a rental and sales comparable analysis of the local real
estate market in which each Collateral Pool Property is located, in a form
approved by Lender.

      
        
           

        

        
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      (m)      Federal
Tax Returns.  Upon request of Lender, the federal tax returns of
Borrower.

       

      (n)       Other
Reports.  Promptly upon receipt thereof, all schedules, financial
statements or other similar reports delivered by Borrower pursuant to the Loan
Documents or requested by Lender with respect to Borrower’s business affairs or
condition (financial or otherwise) or any of the Collateral Pool
Properties.

       

      (o)       Certification.  All
certifications required to be delivered pursuant to this Section 7.3 shall run directly
to and be for the benefit of Lender.

       

      7.3.1.4.       Certificate
of Compliance.  Borrower shall deliver to Lender concurrently with the
delivery of the financial statements and/or reports required to be delivered
pursuant to Section 7.3.1.2(a)
and (b) above a certificate signed by the Chief Financial Officer of
Borrower stating that, to the best knowledge of such individual following
reasonable inquiry, (i) setting forth in reasonable detail the calculations
required to establish whether each Borrower was in compliance with the
requirements of Sections
7.5.1.1 through 7.5.1.5 on the date of such
financial statements, and (ii) stating that, to the best knowledge of such
individual following reasonable inquiry, no Event of Default or Potential
Default has occurred, or if an Event of Default or Potential Default has
occurred, specifying the nature thereof in reasonable detail and the action
which the relevant Borrower is taking or proposes to take with respect
thereto.  Any certificate required by this Section 7.3.1.3 shall run
directly to and be for the benefit of Lender.

       

      7.3.1.5.       Maintain
Licenses.  Borrower shall procure and maintain in full force and
effect all licenses, necessary permits, charters and registrations which are
material to the conduct of its business and shall abide by and satisfy all terms
and conditions of all such licenses, necessary permits, charters and
registrations.

       

      7.3.1.6.       Access
to Records; Discussions With Officers and Accountants.  To the extent
permitted by law and in addition to the applicable requirements of the Security
Instruments, Borrower shall permit Lender:

       

      (a)       to
inspect, make copies and abstracts of, and have reviewed or audited, such of
Borrower’s books and records as may relate to the Loan or any Collateral Pool
Property, subject to the provisions of Section 7.1.4;

       

      (b)       to
discuss Borrower’s affairs, finances and accounts with any of Borrower’s
officers, partners and employees;

       

      (c)       to
discuss the Collateral Pool Properties’ conditions, operations or maintenance
with the managers of such Collateral Pool Properties and the officers and
employees of Borrower;

       

      (d)       to
discuss Borrower’s affairs, finances and accounts with its independent public
accountants; and

      
        
           

        

        
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      (e)       to
receive any other information that the Lender deems reasonably necessary or
relevant in connection with any Loan Request, any Loan Document or the
Loan.

       

      7.3.1.7.       Inform
the Lender of Material Events. Borrower shall promptly inform the Lender in
writing of any of the following (and shall deliver to the Lender copies of any
related written communications, complaints, orders, judgments and other
documents relating to the following) of which Borrower has actual
knowledge:       

       

      (a)       Defaults.  The
occurrence of any Event of Default or any Potential Default under this Agreement
or any other Loan Document;

       

      (b)       Regulatory
Proceedings.  The commencement of any rulemaking or disciplinary
proceeding or the promulgation of any proposed or final rule which would have,
or may reasonably be expected to have, a Material Adverse Change;

       

      (c)       Legal
Proceedings. The commencement or threat of, or amendment to, any proceedings by
or against Borrower in any Federal, state or local court or before any
Governmental Authority, or before any arbitrator, which, if adversely
determined, would have, or at the time of determination may reasonably be
expected to have, a Material Adverse Change;

       

      (d)       Bankruptcy
Proceedings.  The commencement of any proceedings by or against
Borrower under any applicable bankruptcy, reorganization, liquidation,
insolvency or other similar law now or hereafter in effect or of any proceeding
in which a receiver, liquidator, trustee or other similar official is sought to
be appointed for it;

       

      (e)       Regulatory
Supervision or Penalty. The receipt of notice from any Official Body having
jurisdiction over Borrower that (A) Borrower is being placed under regulatory
supervision, (B) any license, Permit, charter, membership or registration
material to the conduct of Borrower’s business or the Collateral Pool Properties
is to be suspended or revoked or (C) Borrower is to cease and desist any
practice, procedure or policy employed by Borrower, as the case may be, in the
conduct of its business, and such cessation would have, or may reasonably be
expected to have, a Material Adverse Change;

       

      (f)       Environmental
Claim. The receipt from any Governmental Authority or other Person of any notice
of violation, claim, demand, abatement, order or other order or direction
(conditional or otherwise) for any material damage, including personal injury
(including sickness, disease or death), tangible or intangible property damage,
contribution, indemnity, indirect or consequential damages, damage to the
environment, pollution, contamination or other adverse effects on the
environment, removal, cleanup or remedial action or for fines, penalties or
restrictions, resulting from or based upon (a) the existence or occurrence, or
the alleged existence or occurrence, of a Hazardous Substance Activity or (b)
the violation, or alleged violation, of any Hazardous Materials Laws in
connection with any Collateral Pool Property or any of the other assets of
Borrower;

       

      (g)       Material
Adverse Effects. The occurrence of any act, omission, change or event which has
a Material Adverse Change, subsequent to the date of the most recent audited
financial statements of Borrower delivered to the Lender pursuant to Section
7.3.1.3;

      
        
           

        

        
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      (h)       Accounting
Changes. Any material change in any Borrower’s accounting policies or financial
reporting practices;

       

      (i)    
   Legal and Regulatory Status.  The occurrence of any
act, omission, change or event, including any Governmental Approval, the result
of which is to change or alter in any way the legal or regulatory status of any
Borrower; and

       

      (j)    
   Default on Indebtedness. The occurrence of any event that
results in or could result in (i) any imminent default, default or waiver of
default in respect of any Indebtedness having an unpaid principal balance of
$1,000,000 or more, (ii) the failure of any Borrower to pay when due or within
any applicable grace period any Indebtedness of any Borrower which would result
in a Material Adverse Change, or (iii) any Indebtedness of any Borrower becoming
due and payable before its normal maturity by reason of a default or event of
default, however described, or any other event of default shall occur and
continue after the applicable grace period, if any, specified in the agreement
or instrument relating to such indebtedness which would result in a Material
Adverse Change.

       

      7.3.1.8.       Compliance
with Applicable Laws.  Borrower shall comply in all material respects
with all Laws now or hereafter affecting any Collateral Pool Property or any
part of any Collateral Pool Property or requiring any alterations, repairs or
improvements to any Collateral Pool Property.  Borrower shall procure
and continuously maintain in full force and effect, and shall abide by and
satisfy all material terms and conditions of all necessary permits.

       

      7.3.1.9.       Warranty
of Title. The relevant Borrower shall warrant and defend (a) the title to each
Collateral Pool Property and every part of each Collateral Pool Property,
subject only to Permitted Liens, and (b) the validity and priority of the lien
of the applicable Loan Documents, subject only to Permitted Liens, in each case
against the claims of all Persons whatsoever. Borrower shall reimburse the
Lender for any losses, costs, damages or expenses (including reasonable
attorneys’ fees and court costs) incurred by the Lender if an interest in any
Collateral Pool Property, other than with respect to a Permitted Lien, is
claimed by others.

      
        
           

        

        
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      7.3.1.10.       Defense
of Actions.  Borrower shall appear in and defend any action or
proceeding purporting to affect the security for this Agreement or the rights or
power of the Lender hereunder, and shall pay all costs and expenses, including
the cost of evidence of title and reasonable attorneys’ fees, in any such action
or proceeding in which Lender may appear.  If Borrower fails to
perform any of the covenants or agreements contained in this Agreement, or if
any action or proceeding is commenced that is not diligently defended by
Borrower which affects in any material respect Lender’s interest in any
Collateral Pool Property or any part thereof, including eminent domain, code
enforcement or proceedings of any nature whatsoever under any Law, whether now
existing or hereafter enacted or amended, then Lender may, but without
obligation to do so and without notice to or demand upon Borrower and without
releasing Borrower from any Obligation, make such appearances, disburse such
sums and take such action as Lender deems necessary or appropriate to protect
Lender’s interest, including disbursement of attorney’s fees, entry upon such
Collateral Pool Property to make repairs or take other action to protect the
security of said Collateral Pool Property, and payment, purchase, contest or
compromise of any encumbrance, charge or lien which in the judgment of Lender
appears to be prior or superior to the Loan Documents.  In the event
(i) that any Security Instrument is foreclosed in whole or in part or that any
Loan Document is put into the hands of an attorney for collection, suit, action
or foreclosure, or (ii) of the foreclosure of any mortgage, deed to secure debt,
deed of trust or other security instrument prior to or subsequent to any
Security Instrument or any Loan Document in which proceeding Lender is made a
party or (iii) of the bankruptcy of Borrower or an assignment by Borrower for
the benefit of their respective creditors, Borrower shall be chargeable with and
agrees to pay all reasonable costs of collection and defense, including actual
attorneys’ fees in connection therewith and in connection with any appellate
proceeding or post-judgment action involved therein, which shall be due and
payable together with all required service or use taxes.

       

      7.3.1.11.       Alterations
to the Collateral Pool Properties.  Except as otherwise provided in
the Loan Documents, Borrower shall have the right to undertake any alteration,
improvement, demolition, removal or construction (collectively, “Alterations”)
to the Collateral Pool Property(ies) which it owns without the prior consent of
Lender; provided, however, that in any case, no such Alteration shall be made to
any Collateral Pool Property without the prior written consent of Lender if (i)
such Alteration could reasonably be expected to adversely affect the value of
such Collateral Pool Property or its operation as a multifamily housing facility
in substantially the same manner in which it is being operated on the date such
property became Collateral, (ii) the construction of such Alteration could
reasonably be expected to result in interference to the occupancy of tenants of
such Collateral Pool Property such that tenants in occupancy with respect to
five percent (5%) or more of the leases
would be permitted to terminate their leases or to abate the payment of all or
any portion of their rent, or (iii) such Alteration will be completed in more
than twelve (12) months from the date of commencement or in the last year of the
term of this Agreement.  Notwithstanding the foregoing, Borrower must
obtain Lender’s prior written consent to construct Alterations with respect to
the Collateral Pool Property costing in excess of, with respect to any
Collateral Pool Property, the lesser of (a), the number of units in such
Collateral Pool Property multiplied by Two Thousand and NO/100 Dollars
($2,000.00), or (b) Three Hundred Fifty Thousand and NO/100 Dollars
($350,000.00), and Borrower must give prior written notice to the Lender of its
intent to construct Alterations with respect to such Collateral Pool Property
costing in excess of One Hundred and Fifty Thousand and NO/100 Dollars
($150,000.00); provided, however, that the preceding requirements shall not be
applicable to Alterations made, conducted or undertaken by Borrower as part of
Borrower’s routine maintenance and repair of the Collateral Pool Properties as
required by the Loan Documents.

       

      7.3.1.12.       Loan
Document Taxes. If any tax, assessment or Imposition (other than a franchise tax
or excise tax imposed on or measured by, the net income or capital (including
branch profits tax) of the Lender (or any transferee or assignee thereof,
including a participation holder)) (“Loan Document
Taxes”) is levied, assessed or charged by the United States, or any State
in the United States, or any political subdivision or taxing authority thereof
or therein upon any of the Loan Documents or the obligations secured thereby,
the interest of the Lender in the Collateral Pool Properties, or the Lender by
reason of or as holder of the Loan Documents, Borrower shall pay all such Loan
Document Taxes to, for, or on account of the Lender (or provide funds to the
Lender for such payment, as the case may be) as they become due and payable and
shall promptly furnish proof of such payment to the Lender, as applicable. In
the event of passage of any law or regulation permitting, authorizing or
requiring such Loan Document Taxes to be levied, assessed or charged, which law
or regulation in the opinion of counsel to the Lender may prohibit Borrower from
paying the Loan Document Taxes to or for the Lender, Borrower shall enter into
such further instruments as may be permitted by law to obligate Borrower to pay
such Loan Document Taxes.

      
        
           

        

        
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      7.3.1.13.       Intentionally
Omitted.

       

      7.3.1.14.       Monitoring
Compliance.  Upon the request of Lender or Servicer, from time to
time, Borrower shall promptly provide to Lender or Servicer such documents,
certificates and other information as may reasonably be deemed necessary to
enable Lender or Servicer to perform their respective functions under the
Servicing Agreement.

       

      7.3.1.15.       Leases.  Each
unit in each Collateral Pool Property will be leased pursuant to the form lease
delivered to, and acceptable to, Lender, with no material modifications to such
approved form lease, except as disclosed in writing to Lender.

       

      7.3.1.16.       Change
in Senior Management.

       

      (a)       REIT
shall give Lender notice of any change in the identity of Senior
Management.

       

      (b)       Within
thirty (30) Business Days after receipt of REIT’s notice pursuant to Section 7.3.1.16(a), Lender
shall have the right to terminate this Agreement and the parties’ obligations
under the Loan Documents by giving notice of such termination to
Borrower.  In such event, this Agreement and the parties’ obligations
under the Loan Documents shall terminate with the same effect as if Borrower had
elected to terminate this Agreement pursuant to Section 2.14.1.1 (including
Borrower’s obligation, to pay in full all of the Borrowing Tranches outstanding
on the Expiration Date, including any other charges under the Revolving Credit
Note, this Agreement, or any other Loan Documents; provided however, that
Borrower shall not be obligated to pay fees or charges described in Section 2.14.2.2 other than
the Prepayment Fee), except that, for these purposes, the Expiration Date shall
be the one hundred and eightieth (180th) day
after the date on which Borrower first receives Lender’s termination
notice.

       

      (c)       If
Lender exercises its termination right pursuant to subsection (b), Borrower
shall have a period of one hundred twenty (120) days, commencing with the date
on which Borrower receives Lender’s termination notice, to request that Lender
rescind its termination notice. Borrower may include in its request any
undertakings which Borrower is willing to make in order to obtain such a
rescission. Lender shall give Borrower notice of its acceptance or rejection of
Borrower’s request within thirty (30) Business Days after Borrower makes the
request.  If Lender accepts the request, Lender shall give Borrower a
notice that the termination notice shall be deemed rescinded and of no further
force or effect, and this Agreement and the Credit Facility shall continue in
accordance with, and subject to the terms, conditions and limitations contained
in, this Agreement.

      
        
           

        

        
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      7.3.1.17.     Date-Down
Endorsements.  At any time and from time to time, a Lender may obtain
an endorsement to each title insurance policy containing a revolving credit
endorsement, in form and substance satisfactory to Lender, amending the
effective date of the applicable title insurance policy to the date of the title
search performed in connection with the endorsement.  Borrower shall
pay for the cost and expenses incurred by Lender to the title company in
obtaining such endorsement, provided that, for each title insurance policy, it
shall not be liable to pay for more than one such endorsement in any consecutive
twelve (12) month period.

       

      7.3.1.18.     Ownership
of Collateral Pool Properties. A Borrower shall be the sole owner of each of the
Collateral Pool Properties free and clear of any Liens other than Permitted
Liens.

       

      In the
event of any conflict between the terms and provisions of Section 7.3 and the terms and
provisions of any other section of this Agreement, the terms and provisions of
such other section shall prevail and the terms and provisions of Section 7.3 shall be
subordinate thereto.

       

      7.4.        Additional
Negative Covenants.

       

      7.4.1.       Each
Borrower, with respect to itself, agrees and covenants with Lender that, at all
times during the term of this Agreement:

       

      7.4.1.1.       Zoning.  Borrower
shall not initiate or consent to any zoning reclassification of any Collateral
Pool Property or seek any variance under any zoning ordinance or use or permit
the use of any Collateral Pool Property in any manner that could result in the
use becoming a nonconforming use under any zoning ordinance or any other
applicable land use law, rule or regulation.

       

      7.4.1.2.       Principal
Place of Business.  Borrower shall not change the location of its
books and records, without first giving thirty (30) days’ prior written notice
to Lender.

       

      7.4.1.3.       Condominiums.  Borrower
shall not submit any Collateral Pool Property to a condominium regime during the
term of this Agreement.

       

      7.4.1.4.       Restrictions
on Partnership Distributions.  Borrower shall not make any
distributions of any nature or kind whatsoever to the owners of its ownership
interests as such if, at the time of such distribution, a Potential Default or
an Event of Default has occurred and remains uncured.

       

      7.4.1.5.       Lines
of Business.  Borrower shall not be substantially involved in any
businesses other than the acquisition, ownership, development, construction,
leasing, financing or management, directly or through Affiliates, of multifamily
residential properties, and the conduct of these businesses shall not violate
the organizational documents pursuant to which it is formed.

      
        
           

        

        
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      7.4.1.6.       Limitation
on Unimproved Real Property and New Construction.  Borrower shall not
permit:

       

      (a)       the
value of its real property which is not improved (except real property on which
phases of a Collateral Pool Property are contemplated to be constructed) by one
or more buildings leased, or held out for lease, to third parties (“Unimproved
Real Property”) to exceed ten percent (10%) of the value of all of its “Real
Estate Assets” (as that term is defined in Section 856(c)(6)(B) of the Internal
Revenue Code and the regulations thereunder); and

       

      (b)       the
sum of (i) the value of its Unimproved Real Property and (ii) the value of its
Real Estate Assets which are under construction or subject to substantial
rehabilitation to exceed twenty percent (20%) of the value of all of its Real
Estate Assets.

       

      All of
the foregoing values shall be reasonably determined by Lender.

       

      7.4.1.7.       Dividend
Payout.  Borrower shall not make a dividend payment (including both
common stock dividends, unitholder distributions, and preferred stock dividends)
which is greater than ninety percent (90%) of Funds from Operations or that
would otherwise violate the United States federal tax laws governing the
qualifications of real estate investment trusts.  Upon written
pre-approval of Lender, exceptions may be made where the Board of Directors of
REIT determines, in good faith, that a special dividend must be paid to avoid
taxes due to excess gains from the sale of multifamily residential properties.
In determining compliance with the dividend payout ratio set forth herein, the
amount of dividends paid and Funds from Operations shall be calculated for the
trailing twelve (12) month period preceding the date of
determination.

       

      In the
event of any conflict between the terms and provisions of Section 7.4 and the terms and
provisions of any other section of this Agreement, the terms and provisions of
such other section shall prevail and the terms and provisions of Section 7.4 shall be
subordinate thereto.

       

      7.5.   
    Additional Financial Covenants.

       

      7.5.1.       Each
Borrower, except those subject to pass-through tax classification, agrees and
covenants with Lender that, at all times during the term of this
Agreement:

       

      7.5.1.1.       Compliance
with Concentration Test.  Borrower shall at all times maintain the
Collateral so that (i) the aggregate Market Values of any group of Collateral
Pool Properties located within a one mile radius shall not exceed thirty percent
(30%) of the aggregate Market Values of all Collateral Pool Properties and (ii)
the Market Value of any one Collateral Pool Property shall not exceed thirty
percent (30%) of the aggregate market value of all Collateral Pool Properties;
provided however, that the foregoing limitations shall not apply until the
Collateral shall consist of at least four (4) Collateral Pool
Properties.

      
        
           

        

        
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      7.5.1.2.       REIT
Compliance Test.  The REIT shall maintain at least seventy percent
(70%) of its outstanding debt balances, either fixed or hedged, using an
accepted methodology at all times, to be tested quarter annually.

       

      7.5.1.3.       Compliance
with REIT's Net Worth Test.  The REIT shall at all times maintain its
Net Worth so that it is not less than the highest Net Worth covenant required by
any other financial institution where REIT maintains a bank line (whether
secured or unsecured), but in no event less than Five Hundred Fifty Million and
NO/100 Dollars ($550,000,000) plus sixty-five percent (65%) of proceeds (less
all reasonable and customary expenses and costs) of equity offerings, net of
redemptions, consummated by the REIT after June 29, 2004. 

       

      7.5.1.4.       Compliance
with REIT’s Total Indebtedness to Consolidated Total Assets
Ratio.  REIT shall not permit the ratio of Consolidated Total
Indebtedness to Consolidated Total Assets to exceed sixty percent (60%) at any
time.

       

      7.5.1.5.       Compliance
with REIT’s Consolidated EBITDA to Interest Ratio.  REIT shall not
permit the Consolidated EBITDA to Interest Ratio computed for any fiscal quarter
to be less than two hundred percent (200%) for any period of four (4)
consecutive fiscal quarters (treated as a single accounting
period).

       

      7.5.1.6.       
Compliance with REIT’s Consolidated EBITDA to Fixed Charges
Ratio.  REIT shall not permit the Consolidated EBITDA to Fixed Charges
Ratio computed for any fiscal quarter or year to be less than one hundred fifty
percent (150%) for any period of four (4) consecutive fiscal quarters (treated
as a single accounting period).

       

      In the
event of any conflict between the terms and provisions of Section 7.5 and the terms and
provisions of any other section of this Agreement, the terms and provisions of
such other section shall prevail and the terms and provisions of Section 7.5 shall be
subordinate thereto.

       

      8.      
    DEFAULT

       

      8.1.    
   Events of Default.

       

      The
occurrence or existence of any one or more of the following events or conditions
after any applicable cure period (whatever the reason therefor and whether
voluntary, involuntary or effected by operation of Law) shall be an “Event of
Default”:

       

      8.1.1.       Payments
Under Loan Documents.

       

      Borrower
shall fail to pay any principal under any Borrowing Tranche (including scheduled
installments, mandatory prepayments or the payment due at maturity), or shall
fail to pay any interest on any Loan or any other amount owing hereunder or
under any other Loan Documents or under any Qualifying Rate Cap Agreements or
Qualifying Rate Swap Agreements after such principal, interest or other amount
becomes due in accordance with the terms hereof or thereof;

      
        
           

        

        
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      8.1.2.       Breach
of Representation or Warranty.

       

      Any
representation or warranty made at any time by Borrower herein or in any other
Loan Document, or in any certificate, other instrument or statement furnished
pursuant to the provisions hereof or thereof, shall prove to have been false or
misleading in any material respect as of the time it was made or furnished and
the result of such false or misleading representation, warranty, certificate,
other instrument or statement is a Material Adverse Change which is not cured
within thirty (30) days after written notice thereof from Lender to Borrower, or
within such additional reasonable time as may be necessary, in Lender’s judgment
to cure such breach, in the event Borrower commences such cure within such
thirty (30) day period and thereafter diligently pursues such cure, not to
exceed sixty (60) additional days;

       

      8.1.3.       Breach
of Covenant.

       

      Borrower
shall be in default in the observance or performance of any covenant, condition
or provision of this Agreement or under any other Loan Document (other than any
default specified as an “Event of Default” under (i) the other provisions of
this Article 8 or (ii)
Sections 22(a) through (f) of any Security Instrument with respect to the
initial Collateral Pool Property(ies) (or the same sections or any similar
sections of any Security Instrument with respect to any future Collateral Pool
Property(ies)), and shall fail to cure such default within thirty (30) days
after written notice thereof from Lender to Borrower of such default, provided
that, no such notice or grace period shall apply in the case of any default
which could, in Lender’s judgment, absent immediate exercise by Lender of a
right or remedy under this Agreement or any of the other Loan Documents, result
in harm to Lender, impairment of the Note, or any rights of Lender under this
Agreement or any security given under any other Loan Document;

       

      8.1.4.       Event
of Default under the Loan Documents.

       

      Borrower
shall be in default under any provision of the Revolving Credit Note, or any
other Loan Document, including, without limitation, any Security Instrument,
beyond any applicable cure period;

       

      8.1.5.       Final
Judgments or Orders.

       

      Any final
judgments or orders for the payment of money in excess of Five Hundred Thousand
and NO/100 Dollars ($500,000.00) in the aggregate shall be entered against
Borrower by a court having jurisdiction in the premises, which judgment is not
discharged, vacated, bonded or stayed pending appeal within a period of thirty
(30) days from the date of entry or which is not otherwise covered by
insurance;

       

      8.1.6.       Notice
of Lien or Assessment.

       

      A notice
of Lien or assessment in excess of One Million Dollars and NO/100
($1,000,000.00) which is not a Permitted Exception is filed of record with
respect to all or any part of any of Borrower’s assets, or any taxes or debts
owing at any time or times hereafter to the United States, or any department,
agency or instrumentality thereof, or by any state, county, municipal or other
governmental agency, including the PBGC, becomes payable and the same is not
paid or otherwise discharged within thirty (30) days after the same becomes
payable, unless the same is being contested in accordance with the Loan
Documents;

      
        
           

        

        
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      8.1.7.       Insolvency.

       

      Borrower
ceases to be Solvent or admits in writing its inability to pay its debts as they
mature;

       

      8.1.8.       Cessation
of Business.

       

      Borrower
ceases to conduct the business of Borrower, or Borrower is enjoined, restrained
or in any way prevented by court order from conducting all or any material part
of the business of Borrower, and such injunction, restraint or other preventive
order is not dismissed within ten (10) Business Days after the entry
thereof;

       

      8.1.9.       Lien
Priority.

       

      The Liens
granted to and for the benefit of Lender do not constitute valid first priority
Liens (subject to Permitted Exceptions) under applicable Laws and such default
shall continue unremedied for a period of thirty (30) Business Days after
Borrower’s knowledge of the occurrence thereof or such additional reasonable
time period necessary to cure such default, in the event Borrower commences such
cure within such thirty (30) day period and thereafter diligently pursues such
cure, not to exceed sixty (60) additional days (such cure period to be
applicable only in the event such default can be remedied by corrective action
of Borrower to the satisfaction of Lender as determined by Lender in its
reasonable discretion); or

       

      8.1.10.    Bankruptcy
and Other Proceedings.

       

      Borrower
voluntarily files for bankruptcy protection under the United States Bankruptcy
Code or voluntarily becomes subject to any reorganization, receivership,
insolvency proceeding or other similar proceeding pursuant to any other federal
or state law affecting debtor and creditor rights, or an involuntary case is
commenced against Borrower by any creditor (other than Lender) of Borrower
pursuant to the United States Bankruptcy Code or other federal or state law
affecting debtor and creditor rights and is not dismissed or discharged within
sixty (60) days after filing.

       

      8.1.11.    Material
Adverse Change.

       

      There
shall occur a Material Adverse Change which is not corrected to the reasonable
satisfaction of Lender within thirty (30) days after the occurrence of such
Material Adverse Change, or such additional reasonable time period necessary to
cure such Material Adverse Change, in the event Borrower commences such cure
within such thirty (30) day period and thereafter diligently pursues such cure,
not to exceed thirty (30) additional days (such cure period to be applicable
only in the event such default can be remedied by corrective action of Borrower
to the satisfaction of Lender as determined by Lender in its reasonable
discretion).

       

      
        
          
             

          

          
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      8.1.12.    Purchase
of Qualifying Rate Cap Agreements and Qualifying Rate Swap
Agreements.

       

      Borrower
shall fail to purchase a Qualifying Rate Cap Agreement or a Qualifying Rate Swap
Agreement, as applicable, within ten (10) days of the addition of any Collateral
to the Collateral Pool which increases the amount the Borrower is permitted to
borrow under the Loan and to the extent required under Section 2.6.1.5
hereof.

       

      8.2.     
  Consequences of Event of Default.

       

      8.2.1.       Remedies
Cumulative.

       

      Upon an
Event of Default under Section
8.1 Lender shall be entitled to all of the rights and remedies granted to
Lender under the Loan Documents and applicable Law, all of which rights and
remedies shall be cumulative and non-exclusive, to the extent permitted by
Law.

       

      8.2.2.       Acceleration
of Loan.

       

      Upon an
Event of Default, Lender shall be entitled, without limitation, to (a)
accelerate the Loan and all of Borrower’s Obligations hereunder, and to (b)
collect as liquidated damages (i) a Prepayment Fee applicable to any outstanding
Borrowing Tranches, (ii) any Hedge Fees and other costs and expenses it may
incur in terminating any Qualified Rate Swap Agreement, (iii) the liquidated
Unused Facility Fee, (iv) the liquidated Minimum Usage Fee, and (v) the
liquidated Minimum Servicing Fee, all in accordance with Section 2.14.2.

       

      8.3.        Notice
of Sale.

       

      Any
notice required to be given by Lender of a sale, lease, or other disposition of
the Collateral or any other intended action by Lender under the Uniform
Commercial Code, if given in writing at least ten (10) days prior to such
proposed action, shall constitute commercially reasonable and fair notice
thereof to Borrower.

       

      9.      
    MISCELLANEOUS

       

      9.1.         Cooperation
by Borrower; Borrower’s Obligations.

       

      Borrower
grants to Lender the right to distribute on a confidential basis financial and
other information concerning Borrower, each indemnitor, other Person, the
Collateral Pool Properties, and other pertinent information with respect to the
Loan to any party purchasing securities issued by Lender.

       

      9.2.         Successors
and Assigns.

       

      This
Agreement shall be binding upon and shall inure to the benefit of Lender,
Borrower and their respective successors and assigns, except that Borrower may
not assign or transfer any of its respective rights or Obligations hereunder or
any interest herein without Lender’s prior written consent.

       

      
        
          
             

          

          
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      9.3.        Modifications,
Amendments or Waivers.

       

      Lender
and Borrower may from time to time enter into written agreements amending or
changing any provision of this Agreement or any other Loan Document or the
rights of Lender or Borrower hereunder or thereunder, or may grant written
waivers or consents to a departure from the due performance of the Obligations
of Borrower hereunder or thereunder.  Any such written agreement,
waiver or consent shall be effective to bind Lender and Borrower.

       

      9.4.        Forbearance.

       

      Lender
may (but shall not be obligated to) agree with Borrower, from time to time, and
without giving notice to, or obtaining the consent of, or having any effect upon
the obligations of any guarantor or other third party obligor, to take any of
the following actions:  extend the time for payment of all or any part
of the Loan; reduce the payments due under this Agreement, the Revolving Credit
Note, or any other Loan Document; release anyone liable for the payment of any
amounts under this Agreement, the Revolving Credit Note, or any other Loan
Document; modify the terms and time of payment of the Loan; join in any
extension or subordination agreement; release any Collateral Pool Property; take
or release other or additional security; modify the rate of interest or period
of amortization of the Revolving Credit Note or change the amount of the monthly
installments payable under the Revolving Credit Note; and otherwise modify this
Agreement, the Revolving Credit Note, or any other Loan Document.

       

      Any
forbearance by Lender in exercising any right or remedy under the Revolving
Credit Note, this Agreement, or any other Loan Document or otherwise afforded by
applicable Law, shall be in writing and shall not be deemed a waiver of or
preclude the exercise of any right or remedy.  The acceptance by
Lender of payment of all or any part of the Loan after the due date of such
payment, or in an amount which is less than the required payment, shall not be a
waiver of Lender’s right to require prompt payment when due of all other
payments on account of the Loan or to exercise any remedies for any failure to
make prompt payment. Enforcement by Lender of any security for the Loan shall
not constitute an election by Lender of remedies so as to preclude the exercise
of any other right available to Lender.  Lender’s receipt of any
awards or proceeds shall not operate to cure or waive any Event of
Default.

       

      9.5.        Remedies
Cumulative.

       

      Each
right and remedy provided in this Agreement is distinct from all other rights or
remedies under this Agreement or any other Loan Document or afforded by
applicable Law, and each shall be cumulative and may be exercised concurrently,
independently, or successively, in any order.

       

      
        
          
          

        

        
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      9.6.        Reimbursement
and Indemnification of Lender and Servicer by Borrower; Taxes.

      Borrower
agrees unconditionally upon demand to pay or reimburse to Lender and Servicer
and to hold Lender and Servicer harmless against (i) liability for the payment
of all reasonable out-of-pocket costs, expenses and disbursements (including
fees and expenses of counsel for Lender and Servicer, incurred by Lender and
Servicer (a) in connection with the administration and interpretation of this
Agreement, and other instruments and documents to be delivered hereunder
including, without limitation, any Rate Cap Agreements or Rate Swap Agreements,
(b) relating to any amendments, waivers or consents pursuant to the provisions
hereof, (c) in connection with the enforcement of this Agreement or any other
Loan Document, or collection of amounts due hereunder or thereunder or the proof
and allowability of any claim arising under this Agreement or any other Loan
Document, whether in bankruptcy or receivership proceedings or otherwise, and
(d) in any workout or restructuring or in connection with the protection,
preservation, exercise or enforcement of any of the terms hereof or of any
rights hereunder or under any other Loan Document or in connection with any
foreclosure, collection or bankruptcy proceedings, or (ii) all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed
on, incurred by or asserted against Lender or Servicer, in its capacity as such,
in any way relating to or arising out of this Agreement or any other Loan
Documents or any action taken or omitted by Lender or Servicer hereunder or
thereunder, provided that no Borrower shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements (A) if the same results from Lender’s negligent
act or omission or willful misconduct or breach of this Agreement or any action
taken with respect to a Collateral Pool Property after Lender has acquired title
to such Collateral Pool Property in a foreclosure proceeding, or (B) if Borrower
was not given notice of the subject claim and the opportunity to participate in
the defense thereof, at its expense (except that Borrower shall remain liable to
the extent such failure to give notice does not result in a loss to
Borrower).  Borrower agrees unconditionally to pay all stamp,
document, transfer, recording or filing taxes or fees and similar impositions
now or hereafter determined by Lender to be payable in connection with this
Agreement or any other Loan Document, and Borrower agrees unconditionally to
hold Lender and Servicer harmless from and against any and all present or future
claims, liabilities or losses with respect to or resulting from any omission to
pay or delay in paying any such taxes, fees or impositions.

       

      9.7.     
  Holidays.

       

      Whenever
the funding of a Borrowing Tranche hereunder shall be due on a day which is not
a Business Day such payment shall be due on the next Business Day and such
extension of time shall be included in computing interest and fees, except that
the Loan shall be due on the Business Day preceding the Expiration Date if the
Expiration Date is not a Business Day.  Whenever any payment or action
to be made or taken hereunder (other than payment of the Loan) shall be stated
to be due on a day which is not a Business Day, such payment or action shall be
made or taken on the next following Business Day, and such extension of time
shall not be included in computing interest or fees, if any, in connection with
such payment or action.

       

      9.8.      
 Notices.

       

      All
notices, requests, demands, directions and other communications given to or made
upon any party hereto under the provisions of this Agreement shall be in writing
unless otherwise expressly provided hereunder and shall be delivered or sent, if
to Lender, to Lender at the address and numbers set forth below, and if to
Borrower or Proposed Borrower, to each of them at the addresses and numbers set
forth below, or in accordance with any subsequent unrevoked written direction
from any party to the others.  Each notice shall be deemed given on
the earliest to occur of (1) the date when the notice is received by the
addressee if by hand delivery; (2) the first Business Day after the notice if
delivered to a recognized overnight courier service, with arrangements made for
payment of charges for next Business Day delivery; or (3) the third Business Day
after the notice is deposited in the United States mail with postage prepaid,
certified mail, return receipt requested.

      
        
           

        

        
          82

          
            

          

        

        
           

        

      

       

      Lender’s
Notice Address and Numbers:

       

      Financial
Federal Savings Bank

      6305
Humphreys Blvd., Suite 100

      Memphis,
TN 38120

      Attention:  Jon
Van Hoozer, Vice President

      Fax:  (615)
297-7265

       

      with a
copy to:

       

      Financial
Federal Savings Bank

      2104
Portland Avenue

      Nashville,
TN 37212

      Attention:  Steve
Curnutte, Senior Vice President

      Fax:  (615)
297-7265

       

      Borrower’s
Notice Address:

       

      Mid-America
Apartment Communities, Inc.

      Mid-America
Apartments, L.P.

      Mid-America
Apartments of Texas, L.P.

      6584
Poplar Avenue, Suite 300

      Memphis,
TN 38138

      Attention:  Al
Campbell

      Fax:
(901) 682-6667

       

      with a
copy to:

       

      Bass,
Berry & Sims PLC

      100
Peabody Place, Suite 900

      Memphis,
Tennessee 38103

      Attention:
John A. Stemmler

      Fax:
(901) 543-5999

       

      9.9.        Severability.

       

      The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision, and all other
provisions shall remain in full force and effect.  This Agreement
contains the entire agreement between the parties as to the rights granted and
the obligations assumed in this Agreement.  This Agreement may not be
amended or modified except by a writing signed by the party against whom
enforcement is sought.

       

      
        
          
          

        

        
          83

          
            

          

        

        
          
          

        

      

       

      9.10.      Governing
Law; Consent to Jurisdiction and Venue.

       

      This
Agreement, and any Loan Document which does not itself expressly identify the
Law that is to apply to it, shall be governed by the Laws of the Commonwealth of
Virginia. Borrower agrees that any controversy arising under or in relation to
this Agreement or any other Loan Document which does not expressly identify the
Law that is to apply to it, shall be litigated exclusively in the courts of the
Commonwealth of Virginia.  The state and federal courts and
authorities with jurisdiction in the Commonwealth of Virginia shall have
exclusive jurisdiction over all controversies which shall arise under or in
relation to this Agreement.  Borrower irrevocably consents to service,
jurisdiction, and venue of such courts for any such litigation and waives any
other venue to which it might be entitled by virtue of domicile, habitual
residence or otherwise.

       

      9.11.      Prior
Understanding.

       

      This
Agreement and the other Loan Documents supersede all prior understandings and
agreements, whether written or oral, between the parties hereto and thereto
relating to the transactions provided for herein and therein, including any
prior confidentiality agreements and commitments.

       

      9.12.      Duration;
Survival.

       

      All
representations and warranties of Borrower contained herein or made in
connection herewith shall survive the funding of the initial advance hereunder
and shall not be waived by the execution and delivery of this Agreement, any
investigation by Lender, the funding of any Borrowing Tranche, or payment in
full of the Loan.  All covenants and agreements of Borrower contained
herein shall continue in full force and effect from and after the date hereof so
long as Borrower may borrow hereunder and until the later of (i) the Expiration
Date or (ii) the payment in full of the Obligations.  All covenants
and agreements of Borrower contained herein relating to the payment of
principal, interest, premiums, additional compensation or expenses and
indemnification, including those set forth in the Note, shall survive payment in
full of the Loan and the Expiration Date until the full and final payment of all
such principal, interest, premiums, additional compensation, expenses or
indemnification due under this Agreement and the Loan
Documents.  Notwithstanding any of the foregoing to the contrary, in
no event shall (a) the release of Lender’s Lien on any Collateral Pool Property,
(b) the maturity, expiration or early termination of the Revolving Credit Note,
or (c) the expiration or early termination of this Agreement, be deemed to
terminate any covenants, agreements, representations or warranties contained in
this Agreement, the Note or any of the other Loan Documents to the extent that
such covenant, agreement, representation or warranty shall, by its terms,
survive the release, maturity, expiration or early termination of this
Agreement, the Note or any of the other Loan Documents.

       

      9.13.      Disclosure
of Information.

       

      Lender
may furnish information regarding Borrower or the Collateral Pool Properties to
third parties with an existing or prospective interest in the servicing,
enforcement, evaluation, performance, purchase or securitization of the Loan,
including, but not limited to, trustees, master servicers, special servicers,
rating agencies, and organizations maintaining databases on the underwriting and
performance of multifamily mortgage loans.  Borrower irrevocably
waives any and all rights it may have under applicable Law to prohibit such
disclosure, including, but not limited to, any right of
privacy.

      
        
           

        

        
          84

          
            

          

        

        
           

        

      

       

      9.14.      Exceptions.

       

      The
representations, warranties and covenants contained herein shall be independent
of each other, and no exception to any representation, warranty or covenant
shall be deemed to be an exception to any other representation, warranty or
covenant contained herein unless expressly provided, nor shall any such
exceptions be deemed to permit any action or omission that would be in
contravention of applicable Law.

       

      9.15.      Relationship
of Parties; No Third Parties Benefited.

       

      The
relationship between Lender and Borrower shall be solely that of creditor and
debtor, respectively, and nothing contained in this Agreement shall create any
other relationship between Lender and Borrower. No creditor of any party to this
Agreement and no other person shall be a third party beneficiary of this
Agreement or any other Loan Document.  Without limiting the generality
of the preceding sentence, (i) an agreement, if any, including any Servicing
Agreement, between Lender and Servicer for interim advancement of funds shall
constitute a contractual obligation of such Servicer that is independent of the
obligation of Borrower for the payment of the Loan, (ii) Borrower shall not be a
third party beneficiary of any Servicing Agreement, and (iii) no payment by
Servicer under any such agreement will reduce the outstanding principal amount
of the Loan or any interest accrued thereon.

       

      9.16.       Authority
to File Notices.

       

      Borrower
irrevocably appoints Lender as its attorney-in-fact, coupled with an interest,
with full power of substitution, to file for record, at Borrower’s cost and
expense and in Borrower’s name, any notices that Lender considers reasonably
necessary or desirable to protect the Collateral.

       

      9.17.      WAIVER OF TRIAL BY
JURY.

       

      BORROWER
AND LENDER EACH (A) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH
RESPECT TO ANY ISSUE ARISING OUT OF THIS AGREEMENT OR THE RELATIONSHIP BETWEEN
THE PARTIES AS BORROWER AND LENDER THAT IS TRIABLE OF RIGHT BY A JURY AND (B)
WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT
ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE.  THIS WAIVER OF RIGHT TO
TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH
THE BENEFIT OF COMPETENT LEGAL COUNSEL.

       

      /s/AC

      Initials
of the Authorized Officer of Mid-

      America
Apartment Communities, Inc.

      
        
           

        

        
          85

          
            

          

        

        
           

        

      

       

      /s/AC

      Initials
of the Authorized Officer of Mid-

      America
Apartments, L.P.

       

      /s/JAG

      Initials
of the Authorized Officer of Mid-

      America
Apartments Texas, L.P.

       

      9.18.       Interpretation.

       

      Whenever
the context requires, all words used in the singular will be construed to have
been used in the plural, and vice versa, and each gender will include any other
gender.  The captions of the articles, sections and schedules of this
Agreement are for convenience only and do not define or limit any terms or
provisions.  In the event of a conflict between the terms of the other
Loan Documents and the terms of this Agreement, the terms of this Agreement
shall control.

       

      9.19.       Brokerage
Fee.

       

      Borrower
represents to Lender that no broker or other Person is entitled to a brokerage
fee or commission as a result of Borrower’s actions or undertakings in
connection with the financing contemplated hereunder and agrees to hold Lender
harmless from all claims for brokerage commissions which may be made as a result
of such actions or undertakings, if any.

       

      9.20.       Advertising.

       

      Lender
may include the name of Borrower, the name and location of any Collateral Pool
Property, the Commitment and the number of apartment units contained in any
Collateral Pool Property on Lender’s client list and in any typical
advertisement.

       

      9.21.       Time
of Essence.

       

      Time is
of the essence with respect to each obligation of Borrower and Lender
hereunder.

       

      9.22.       Counterparts.

       

      This
Agreement may be executed by different parties hereto on any number of separate
counterparts, each of which, when so executed and delivered, shall be an
original, and all such counterparts shall together constitute one and the same
instrument.

       

      9.23.       Interpretation
of Certain Representations, Warranties and Covenants.

       

      Notwithstanding
anything set forth herein to the contrary, the representations, warranties and
covenants with respect to any particular Collateral Pool Property shall be
deemed to be made only by the Property Borrower which owns the applicable
Collateral Pool Property and, to the extent applicable, the Persons comprising
said Property Borrower.

      
        
           

        

        
          86

          
            

          

        

        
           

        

      

      

      [SIGNATURE
PAGE TO FOLLOW]

      
        
           

        

        
          87

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the parties hereto, by their officers thereunto duly
authorized, have executed this Agreement as of the day and year first above
written.

       

      
        
          
            
              	
                      BORROWER:

                    
	 
      
	
                      MID-AMERICA
      APARTMENT

                      COMMUNITIES,
      INC.

                    
	 
      	 
      
	
                      By:

                    	
                      /s/Al
      Cambell

                    
	
                      Name:  Al
      Campbell

                    
	
                      Title:  Senior
      Vice-President and Treasurer

                    
	 
      	 
      
	
                      MID-AMERICA
      APARTMENTS, L.P.

                    
	 
      	 
      
	
                      By:

                    	
                      Mid-America
      Apartment Communities,

                      Inc.,
      its sole general partner

                    
	 
      	 
      
	 
      	
                      By:

                    	
                      /s/Al Campbell

                    
	 
      	
                      Name:

                    	
                      Al
      Campbell

                    
	 
      	
                      Title:

                    	
                      Senior
      Vice-President and

                      Treasurer

                    
	 
      	 
      
	
                      MID-AMERICA
      APARTMENTS OF

                      TEXAS,
      L.P.

                    
	 
      	 
      
	
                      By:

                    	
                      MAC
      of Delaware, Inc., its sole general

                      partner

                    
	 
      	 
      
	 
      	
                      By:

                    	
                      /s/John A Good

                    
	 
      	
                      Name:

                    	
                      John
      A. Good

                    
	 
      	
                      Title:

                    	
                      Assistant
      Secretary

                    

            

          

        

      

      
        
           

        

        
          88

          
            

          

        

        
           

        

      

      

      
        
          
            
              	 
      	
                      LENDER:

                       

                      FINANCIAL
      FEDERAL SAVINGS BANK

                       

                      By:       /s/Steve
      A. Sulton

                      Name:  Steve
      A. Sulton

                      Title:  S.V.P.

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