exv10w41



 





EXHIBIT 10.41



AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




by and between




UNITED DOMINION REALTY TRUST, INC.,

a Virginia corporation




and




GREEN PARK FINANCIAL LIMITED PARTNERSHIP,

a District of Columbia limited partnership,




dated as of




June 24, 2002




 









 





TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page	 
	RECITALS
	 	 	1	 
	ARTICLE I
	 	 	2	 
	ARTICLE II
	 	 	20	 
	SECTION 2.01 Revolving Facility Commitment
	 	 	20	 
	SECTION 2.02 Requests for Revolving Advances
	 	 	20	 
	SECTION 2.03 Maturity Date of Revolving Advances
	 	 	20	 
	SECTION 2.04 Interest on Revolving Facility Advances
	 	 	20	 
	SECTION 2.05 Coupon Rates for Revolving Advances
	 	 	21	 
	SECTION 2.06 Revolving Facility Note
	 	 	21	 
	SECTION 2.07 Extension of Revolving Facility Termination Date
	 	 	22	 
	ARTICLE III
	 	 	22	 
	SECTION 3.01 Base Facility Commitment
	 	 	22	 
	SECTION 3.02 Requests for Base Facility Advances
	 	 	22	 
	SECTION 3.03 Maturity Date of Base Facility Advances
	 	 	23	 
	SECTION 3.04 Interest on Base Facility Advances
	 	 	23	 
	SECTION 3.05 Coupon Rates for Base Facility Advances
	 	 	23	 
	SECTION 3.06 Base Facility Note
	 	 	23	 
	SECTION 3.07 Conversion of Commitment from Revolving Facility Commitment to Base Facility
Commitment
	 	 	23	 
	SECTION 3.08 Limitations on Right to Convert
	 	 	24	 
	SECTION 3.09 Conditions Precedent to Conversion
	 	 	24	 
	SECTION 3.10 Defeasance
	 	 	25	 
	ARTICLE IV
	 	 	32	 
	SECTION 4.01 Rate Setting for an Advance
	 	 	32	 
	SECTION 4.02 Advance Confirmation Instrument for Revolving Advances
	 	 	33	 
	SECTION 4.03 Breakage and other Costs
	 	 	34	 
	ARTICLE V
	 	 	34	 
	SECTION 5.01 Initial Advance
	 	 	34	 
	SECTION 5.02 Future Advances
	 	 	35	 
	SECTION 5.03 Conditions Precedent to Future Advances
	 	 	35	 
	SECTION 5.04 Determination of Allocable Facility Amount and Valuations
	 	 	36	 
	ARTICLE VI
	 	 	36	 
	SECTION 6.01 Right to Add Collateral
	 	 	36	 
	SECTION 6.02 Procedure for Adding Collateral
	 	 	36	 
	SECTION 6.03 Conditions Precedent to Addition of an Additional Mortgaged Property to the
Collateral Pool
	 	 	38	 
	ARTICLE VII
	 	 	39	 
	SECTION 7.01 Right to Obtain Releases of Collateral
	 	 	39	 
	SECTION 7.02 Procedure for Obtaining Releases of Collateral
	 	 	39	 
	SECTION 7.03 Conditions Precedent to Release of Collateral Release Property from the Collateral
	 	 	40	 
	SECTION 7.04 Substitutions
	 	 	42	 
	ARTICLE VIII
	 	 	42	 
	SECTION 8.01 Right to Increase Commitment
	 	 	42	 
	SECTION 8.02 Procedure for Obtaining Increases in Commitment
	 	 	42	 
	SECTION 8.03 Conditions Precedent to Increase in Commitment
	 	 	43	 
	 
	 	 	 	 
	i







 









 






	 	 	 	 	 
	 	 	Page	 
	ARTICLE IX
	 	 	44	 
	SECTION 9.01 Right to Complete or Partial Termination of Facilities
	 	 	44	 
	SECTION 9.02 Procedure for Complete or Partial Termination of Facilities
	 	 	44	 
	SECTION 9.03 Conditions Precedent to Complete or Partial Termination of Facilities
	 	 	44	 
	ARTICLE X
	 	 	45	 
	SECTION 10.01 Right to Terminate Credit Facility
	 	 	45	 
	SECTION 10.02 Procedure for Terminating Credit Facility
	 	 	45	 
	SECTION 10.03 Conditions Precedent to Termination of Credit Facility
	 	 	46	 
	ARTICLE XI
	 	 	46	 
	SECTION 11.01 Conditions Applicable to All Requests
	 	 	46	 
	SECTION 11.02 Delivery of Closing Documents Relating to Initial Advance Request, Collateral
Addition Request, Credit Facility Expansion Request or Future Advance Request
	 	 	47	 
	SECTION 11.03 Delivery of Property-Related Documents
	 	 	48	 
	ARTICLE XII
	 	 	49	 
	SECTION 12.01 Representations and Warranties of the Borrower
	 	 	49	 
	SECTION 12.02 Representations and Warranties of the Borrower
	 	 	53	 
	SECTION 12.03 Representations and Warranties of the Lender
	 	 	56	 
	ARTICLE XIII
	 	 	56	 
	SECTION 13.01 Compliance with Agreements; No Amendments
	 	 	56	 
	SECTION 13.02 Maintenance of Existence
	 	 	56	 
	SECTION 13.03 Maintenance of Borrower Status
	 	 	56	 
	SECTION 13.04 Financial Statements; Accountants’ Reports; Other Information
	 	 	56	 
	SECTION 13.05 Certificate of Compliance
	 	 	59	 
	SECTION 13.06 Maintain Licenses
	 	 	59	 
	SECTION 13.07 Access to Records; Discussions With Officers and Accountants
	 	 	59	 
	SECTION 13.08 Inform the Lender of Material Events
	 	 	60	 
	SECTION 13.09 Intentionally Omitted
	 	 	61	 
	SECTION 13.10 Inspection
	 	 	61	 
	SECTION 13.11 Compliance with Applicable Laws
	 	 	61	 
	SECTION 13.12 Warranty of Title
	 	 	61	 
	SECTION 13.13 Defense of Actions
	 	 	61	 
	SECTION 13.14 Alterations to the Mortgaged Properties
	 	 	62	 
	SECTION 13.15 ERISA
	 	 	62	 
	SECTION 13.16 Loan Document Taxes
	 	 	63	 
	SECTION 13.17 Further Assurances
	 	 	63	 
	SECTION 13.18 Monitoring Compliance
	 	 	63	 
	SECTION 13.19 Leases
	 	 	63	 
	SECTION 13.20 Appraisals
	 	 	63	 
	SECTION 13.21 Transfer of Ownership Interests of the Borrower
	 	 	63	 
	SECTION 13.22 Change in Senior Management
	 	 	65	 
	SECTION 13.23 Date-Down Endorsements
	 	 	65	 
	SECTION 13.24 Geographical Diversification
	 	 	65	 
	SECTION 13.25 Ownership of Mortgaged Properties
	 	 	66	 
	SECTION 13.26 Facility Balancing
	 	 	66	 
	ARTICLE XIV
	 	 	66	 
	SECTION 14.01 Other Activities
	 	 	66	 
	SECTION 14.02 Value of Security
	 	 	67	 
	SECTION 14.03 Zoning
	 	 	67	 
	SECTION 14.04 Liens
	 	 	67	 
	SECTION 14.05 Sale
	 	 	67	 
	 
	 	 	 	 
	ii







 









 






	 	 	 	 	 
	 	 	Page	 
	SECTION 14.06 Intentionally Omitted
	 	 	67	 
	SECTION 14.07 Principal Place of Business
	 	 	67	 
	SECTION 14.08 Intentionally Omitted
	 	 	67	 
	SECTION 14.09 Change in Property Management
	 	 	67	 
	SECTION 14.10 Condominiums
	 	 	67	 
	SECTION 14.11 Restrictions on Distributions
	 	 	67	 
	SECTION 14.12 Conduct of Business
	 	 	67	 
	SECTION 14.13 Limitation on Unimproved Real Property and New Construction
	 	 	67	 
	SECTION 14.14 No Encumbrance of Collateral Release Property
	 	 	68	 
	ARTICLE XV
	 	 	68	 
	SECTION 15.01 Financial Definitions
	 	 	68	 
	SECTION 15.02 Compliance with Debt Service Coverage Ratios
	 	 	73	 
	SECTION 15.03 Compliance with Loan to Value Ratios
	 	 	73	 
	SECTION 15.04 Compliance with Concentration Test
	 	 	73	 
	SECTION 15.05 Consolidated Adjusted Tangible Net Worth
	 	 	73	 
	SECTION 15.06 Consolidated Funded Debt Ratio
	 	 	73	 
	SECTION 15.07 Consolidated Total Fixed Charge Coverage Ratio
	 	 	73	 
	SECTION 15.08 Consolidated Unencumbered Realty to Consolidated Unsecured Debt Ratio
	 	 	73	 
	SECTION 15.09 Consolidated Unencumbered Interest Coverage Ratio
	 	 	73	 
	ARTICLE XVI
	 	 	74	 
	SECTION 16.01 Standby Fee
	 	 	74	 
	SECTION 16.02 Termination and Origination Fees
	 	 	74	 
	SECTION 16.03 Due Diligence Fees
	 	 	74	 
	SECTION 16.04 Legal Fees and Expenses
	 	 	74	 
	SECTION 16.05 MBS-Related Costs
	 	 	75	 
	SECTION 16.06 Failure to Close any Request
	 	 	75	 
	SECTION 16.07 Other Fees
	 	 	75	 
	ARTICLE XVII
	 	 	76	 
	SECTION 17.01 Events of Default
	 	 	76	 
	ARTICLE XVIII
	 	 	78	 
	SECTION 18.01 Remedies; Waivers
	 	 	78	 
	SECTION 18.02 Waivers; Rescission of Declaration
	 	 	78	 
	SECTION 18.03 The Lender’s Right to Protect Collateral and Perform Covenants and Other Obligations
	 	 	78	 
	SECTION 18.04 No Remedy Exclusive
	 	 	79	 
	SECTION 18.05 No Waiver
	 	 	79	 
	SECTION 18.06 No Notice
	 	 	79	 
	SECTION 18.07 Application of Payments
	 	 	79	 
	ARTICLE XIX
	 	 	79	 
	SECTION 19.01 Special Pool Purchase Contract
	 	 	79	 
	SECTION 19.02 Assignment of Rights
	 	 	80	 
	SECTION 19.03 Release of Collateral
	 	 	80	 
	SECTION 19.04 Replacement of Lender
	 	 	80	 
	SECTION 19.05 Fannie Mae and Lender Fees and Expenses
	 	 	80	 
	SECTION 19.06 Third-Party Beneficiary
	 	 	80	 
	ARTICLE XX
	 	 	81	 
	SECTION 20.01 Insurance and Real Estate Taxes
	 	 	81	 
	SECTION 20.02 Replacement Reserves
	 	 	81	 
	ARTICLE XXI
	 	 	81	 
	 
	 	 	 	 
	iii







 









 






	 	 	 	 	 
	 	 	Page	 
	ARTICLE XXII
	 	 	81	 
	SECTION 22.01 Personal Liability of the Borrower
	 	 	81	 
	ARTICLE XXIII
	 	 	82	 
	SECTION 23.01 Counterparts
	 	 	82	 
	SECTION 23.02 Amendments, Changes and Modifications
	 	 	82	 
	SECTION 23.03 Payment of Costs, Fees and Expenses
	 	 	82	 
	SECTION 23.04 Payment Procedure
	 	 	83	 
	SECTION 23.05 Payments on Business Days
	 	 	83	 
	SECTION 23.06 Choice of Law; Consent to Jurisdiction; Waiver of Jury Trial
	 	 	83	 
	SECTION 23.07 Severability
	 	 	84	 
	SECTION 23.08 Notices
	 	 	84	 
	SECTION 23.09 Further Assurances and Corrective Instruments
	 	 	86	 
	SECTION 23.10 Term of this Agreement
	 	 	87	 
	SECTION 23.11 Assignments; Third-Party Rights
	 	 	87	 
	SECTION 23.12 Headings
	 	 	87	 
	SECTION 23.13 General Interpretive Principles
	 	 	87	 
	SECTION 23.14 Interpretation
	 	 	88	 
	SECTION 23.15 Decisions in Writing
	 	 	88	 
	SECTION 23.16 Requests
	 	 	88	 
	 
	 	 	 	 
	iv







 









 






	 	 	 	 	 
	EXHIBIT A

	 	 	 	Schedule of Initial Mortgaged Properties and Initial Valuations
	EXHIBIT B

	 	 	 	Base Facility Note
	EXHIBIT C

	 	-
	 	Intentionally Omitted
	EXHIBIT D

	 	 	 	Compliance Certificate
	EXHIBIT E

	 	 	 	Sample Facility Debt Service
	EXHIBIT F

	 	 	 	Organizational Certificate
	EXHIBIT G

	 	 	 	Intentionally Omitted
	EXHIBIT H

	 	 	 	Revolving Credit Endorsement
	EXHIBIT I

	 	 	 	Revolving Facility Note
	EXHIBIT J

	 	 	 	Tie-In Endorsement
	EXHIBIT K

	 	-
	 	Conversion Request
	EXHIBIT L

	 	-
	 	Conversion Amendment
	EXHIBIT M

	 	 	 	Rate Setting Form
	EXHIBIT N

	 	 	 	Rate Confirmation Instrument
	EXHIBIT O

	 	 	 	Advance Confirmation Instrument
	EXHIBIT P

	 	 	 	Future Advance Request
	EXHIBIT Q

	 	 	 	Collateral Addition Request
	EXHIBIT R

	 	 	 	Collateral Addition Description Package
	EXHIBIT S

	 	 	 	Collateral Addition Supporting Documents
	EXHIBIT T

	 	 	 	Collateral Release Request
	EXHIBIT U

	 	 	 	Confirmation of Obligations
	EXHIBIT V

	 	 	 	Credit Facility Expansion Request
	EXHIBIT W

	 	 	 	Revolving Facility Termination Request
	EXHIBIT X

	 	 	 	Revolving Facility Termination Document
	EXHIBIT Y

	 	 	 	Credit Facility Termination Request
	EXHIBIT Z

	 	 	 	Intentionally Omitted
	EXHIBIT AA

	 	 	 	Independent Unit Encumbrances








v









 





AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




     THIS AMENDED AND RESTATED MASTER CREDIT FACILITY AGREEMENT is made as of the 24th day of June,
2002, by (i) UNITED DOMINION REALTY TRUST, INC., a Virginia corporation (the “Borrower”)
and (ii) GREEN PARK FINANCIAL LIMITED PARTNERSHIP, a District of Columbia limited partnership (the
“Lender”).



RECITALS




     A. The Borrower and Lender entered into that certain Master Credit Facility Agreement dated as
of March 16, 1999, as amended by that certain First Amendment to Master Credit Facility Agreement
dated as of June 29, 2001 (together, the “Original Agreement”), pursuant to which the Lender agreed
to make credit available to the Borrower under the terms and conditions set forth in the Original
Agreement.



     B. Pursuant to the Original Agreement, the Borrower expanded to the maximum amount of credit
available to it from the Lender and the Borrower desires to further expand the amount of credit
available to it under the Original Agreement and extend the term of the Original Agreement. In
connection with such further expansion and extension, the Borrower has requested, and the Lender
has agreed, that certain terms and conditions of the Original Agreement be modified. The Borrower
and the Lender now wish to amend and restate the Original Agreement in its entirety.



     C. The Borrower owns one or more Multifamily Residential Properties (capitalized terms used
but not defined shall have the meanings ascribed to such terms in Article I of this Agreement) as
more particularly described in Exhibit A to this Agreement.



     D. The Borrower has requested that the Lender establish a $200,000,000 Credit Facility in
favor of the Borrower, comprised initially of a $200,000,000 Revolving Facility, all or part of
which can be converted to a Base Facility in accordance with, and subject to, the terms and
conditions of this Agreement and a $0 Base Facility.



     E. To secure the obligations of the Borrower under this Agreement and the other Loan Documents
issued in connection with the Credit Facility, the Borrower shall create a Collateral Pool in favor
of the Lender. The Collateral Pool shall be comprised of (i) Security Instruments on all of the
Multifamily Residential Properties owned by the Borrower listed on Exhibit A to this
Agreement and (ii) any other Security Documents executed by the Borrower pursuant to this Agreement
or any other Loan Documents.



     F. Each of the Security Documents shall be cross-defaulted (i.e., a default under any Security
Document, or under this Agreement, shall constitute a default under each Security Document, and
this Agreement) and cross-collateralized (i.e., each Security Instrument shall secure all of the
Borrower’s obligations under this Agreement and the other Loan Documents issued in connection with
the Credit Facility) and it is the intent of the parties to this Agreement that the Lender may
accelerate any Note without the necessity to accelerate any other Note and that in the exercise of
its rights and remedies under the Loan Documents, Lender may exercise



 









 







and perfect any and all of its rights in and under the Loan Documents with regard to any
Mortgaged Property without the necessity to exercise and perfect its rights and remedies with
respect to any other Mortgaged Property and that any such exercise shall be without regard to the
Allocable Facility Amount assigned to such Mortgaged Property and that Lender may recover an amount
equal to the full amount outstanding in respect of any of the Notes in connection with such
exercise and any such amount shall be applied as determined by Lender in its sole and absolute
discretion.



     G. Subject to the terms, conditions and limitations of this Agreement, the Lender has agreed
to establish the Credit Facility.



     NOW, THEREFORE, the Borrower and the Lender, in consideration of the mutual promises and
agreements contained in this Agreement, hereby agree as follows:



ARTICLE I

DEFINITIONS



For all purposes of this Agreement, the following terms shall have the respective meanings set
forth below:





     “Acquiring Person” means 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.




     “Additional Mortgaged Property” means each Multifamily Residential Property
owned by the Borrower (either in fee simple or as tenant under a ground lease meeting all of
the requirements of the DUS Guide) and added to the Collateral Pool after the Initial
Closing Date pursuant to Article VI.




     “Advance” means a Revolving Advance or a Base Facility Advance.




     “Advance Confirmation Instrument” shall have the meaning set forth in Section
4.02.




     “Affiliate” means, with respect to any Person, any other Person (i) directly or
indirectly controlling or controlled by or under direct or indirect common control with such
Person or (ii) directly or indirectly owning or holding five percent (5%) or more of the
equity interest in such Person. For purposes of this definition, “control” when used with
respect to any Person means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms “controlling” and “controlled” have meanings correlative to the
foregoing.




     “Aggregate Debt Service Coverage Ratio for the Trailing 12 Month Period” means,
for any specified date, the ratio (expressed as a percentage) of—




     (a) the aggregate of the Net Operating Income for the Trailing 12 Month Period
for the Mortgaged Properties



- 2 -









 





to





     (b) the Facility Debt Service on the specified date.




     “Aggregate Loan to Value Ratio for the Trailing 12 Month Period” means, for any
specified date, the ratio (expressed as a percentage) of—




     (a) the Advances Outstanding on the specified date,



to





     (b) the aggregate of the Valuations most recently obtained prior to the
specified date for all of the Mortgaged Properties.




     “Agreement” means this Master Credit Facility Agreement, as it may be amended,
supplemented or otherwise modified from time to time, including all Recitals and Exhibits to
this Agreement, each of which is hereby incorporated into this Agreement by this reference.




     “Allocable Facility Amount” means the portion of the Credit Facility allocated
to a particular Mortgaged Property by Lender in accordance with this Agreement. Lender
shall determine the Allocable Facility Amount for each Mortgaged Property on the Initial
Closing Date and on or before July 1 of each year (commencing July 1, 2003 during the term
of this Agreement and at such other times as provided by this Agreement (the
“Determination Date”). Once determined by Lender as aforesaid, the Allocable
Facility Amount for each Mortgaged Property shall be promptly disclosed to Borrower by
Lender and shall remain in effect until the next Determination Date. The Allocable Facility
Amount for any Additional Mortgaged Property shall be 65% of the Valuation of such Mortgaged
Property on the date such Mortgaged Property is added to the Collateral Pool.




     “Amortization Period” means, with respect to each Base Facility Advance, the
period of 30 years.




     “Applicable Law” means (a) all applicable provisions of all constitutions,
statutes, rules, regulations and orders of all governmental bodies, all Governmental
Approvals and all orders, judgments and decrees of all courts and arbitrators, (b) all
zoning, building, environmental and other laws, ordinances, rules, regulations and
restrictions of any Governmental Authority affecting the ownership, management, use,
operation, maintenance or repair of any Mortgaged Property, including the Americans with
Disabilities Act (if applicable), the Fair Housing Amendment Act of 1988 and Hazardous
Materials Laws, (c) any building permits or any conditions, easements, rights-of-way,
covenants, restrictions of record or any recorded or unrecorded agreement affecting or
concerning any Mortgaged Property including planned development permits, condominium
declarations, and reciprocal easement and regulatory agreements with any Governmental
Authority, (d) all laws, ordinances, rules and regulations, whether in the form of rent
control, rent stabilization or otherwise, that limit or impose conditions on the
amount of rent that may be collected from the units of any Mortgaged



- 3 -









 







Property, and (e) requirements of insurance companies or similar organizations,
affecting the operation or use of any Mortgaged Property or the consummation of the
transactions to be effected by this Agreement or any of the other Loan Documents.




     “Appraisal” means an appraisal of a Multifamily Residential Property or
Multifamily Residential Properties conforming to the requirements of Chapter 5 of Part III
of the DUS Guide, and accepted by the Lender.




     “Appraised Value” means the value set forth in an Appraisal.




     “Base Facility” means the agreement of the Lender to make Base Facility
Advances to the Borrower pursuant to Section 3.01.




     “Base Facility Advance” means a loan made by the Lender to the Borrower under
the Base Facility Commitment.




     “Base Facility Availability Period” means the period beginning on the Initial
Closing Date and ending on the date five (5) years after the Initial Closing Date.




     “Base Facility Commitment” means $0, plus such amount as the Borrower may elect
to add to the Base Facility Commitment in accordance with Articles III or VIII.




     “Base Facility Fee” means (i) 45 basis points for a Base Facility Advance drawn
from the Base Facility Commitment initially available (whether drawn or undrawn) under this
Agreement or converted from the Revolving Facility Commitment during the period ending on
the date 12 months after the Initial Closing Date, and (ii) for any Base Facility Advance
drawn from any portion of the Base Facility Commitment increased under Article VIII or
converted from any portion of the Revolving Facility Commitment after the period ending on
the date 12 months after the Initial Closing Date, the number of basis points determined at
the time of such increase by the Lender as the Base Facility Fee for such Base Facility
Advances, provided that in no event shall the Base Facility Fee for Base Facility Advances
converted from the Revolving Facility Commitment (expressed as a number of basis points)
exceed the Revolving Facility Fee.




     “Base Facility Note” means a promissory note, in the form attached as
Exhibit B to this Agreement, which will be issued by the Borrower to the Lender,
concurrently with the funding of each Base Facility Advance, to evidence the Borrower’s
obligation to repay the Base Facility Advance.




     “Borrower” means United Dominion Realty Trust, Inc., a Virginia corporation.




     “Business Day” means a day on which Fannie Mae is open for business.




     “Calendar Quarter” means, with respect to any year, any of the following three
month periods: (a) January-February-March; (b) April-May-June; (c) July-August-September;
and (d) October-November-December.



- 4 -









 






     “Cap Rate” means, for each Mortgaged Property, a capitalization rate reasonably
selected by the Lender for use in determining the Valuations, as disclosed to the Borrower
from time to time.




     “Change of Control” means the earliest to occur of: (a) the date on which an
Acquiring Person becomes (by acquisition, consolidation, merger or otherwise), directly or
indirectly, the beneficial owner of more than 30% of the total Voting Equity Capital (or of
any other Securities or ownership interest) of the Borrower then outstanding, or (b) the
replacement (other than solely by reason of retirement at age sixty-five or older, death or
disability) of more than 50% (or such lesser percentage as is required for decision-making
by the board of directors or an equivalent governing body) of the members of the board of
directors (or an equivalent governing body) of the Borrower 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 the Borrower 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 (b) shall apply thereto by substituting such governing body and the members
thereof for the board of directors and members thereof, respectively).




     “Closing Date” means the Initial Closing Date and each date after the Initial
Closing Date on which the funding or other transaction requested in a Request is required to
take place.




     “Collateral” means, the Mortgaged Properties and other collateral from time to
time or at any time encumbered by the Security Instruments, or any other property securing
any of the Borrower’s obligations under the Loan Documents.




     “Collateral Addition Fee” means, with respect to a Multifamily Residential
Property added to the Collateral Pool in accordance with Article VI—




     (i) 67.5 basis points, multiplied by




     (ii) 65% of the Initial Valuation of the Multifamily Residential Property, as
determined by the Lender.




     “Collateral Addition Loan Documents” means the Security Instrument covering an
Additional Mortgaged Property and any other documents, instruments or certificates required
by the Lender in connection with the addition of the Additional Mortgaged Property to the
Collateral Pool pursuant to Article VI.




     “Collateral Addition Request” shall have the meaning set forth in Section
6.02(a).




     “Collateral Pool” means the aggregate total of the Collateral.



- 5 -









 






     “Collateral Release Request” shall have the meaning set forth in Section
7.02(a).




     “Collateral Release Property” shall have the meaning set forth in Section
7.02(a).




     “Collateral Substitution Request” shall have the meaning set forth in Section 7.04.




     “Commitment” means, at any time, the sum of the Base Facility Commitment and
the Revolving Facility Commitment.




     “Complete Revolving Facility Termination” shall have the meaning set forth in
Section 9.02(a).




     “Compliance Certificate” means a certificate of the Borrower in the form
attached as Exhibit D to this Agreement.




     “Conversion Documents” has the meaning specified in Section 3.07(b) hereof.




     “Conversion Request” has the meaning specified in Section 3.07(a) hereof.




     “Coupon Rate” means, with respect a Revolving Advance, the imputed interest
rate determined by the Lender pursuant to Section 2.05 for the Revolving Advance and, with
respect a Base Facility Advance, the interest rate determined by the Lender pursuant to
Section 3.05 for the Base Facility Advance.




     “Coverage and LTV Tests” mean, for any specified date, each of the following
financial tests:




     (a) The Aggregate Debt Service Coverage Ratio for the Trailing 12 Month Period is not
less than 135%.




     (b) The Aggregate Loan to Value Ratio for the Trailing 12 Month Period does not exceed
65%.




     “Credit Facility” means the Base Facility and the Revolving Facility.




     “Credit Facility Expansion” means an increase in the Commitment made in
accordance with Article VIII.




     “Credit Facility Expansion Loan Documents” means amendments to the Revolving
Facility Note or the Base Facility Note, as the case may be, increasing the amount of such
Note to the amount of the Commitment, as expanded in accordance with Article VIII and
amendments to the Security Instruments, increasing the amount secured by such Security
Instruments to the amount of the Commitment.



- 6 -









 






     “Credit Facility Expansion Request” shall have the meaning set forth in Section
8.02(a).




     “Credit Facility Termination Request” shall have the meaning set forth in
Section 10.02(a).




     “Debt Service Coverage Ratio for the Trailing 12 Month Period” means, for any
Mortgaged Property, for any specified date, the ratio (expressed as a percentage) of —




     (a) the aggregate of the Net Operating Income for the Trailing 12 Month Period
for the subject Mortgaged Property



to





     (b) the Facility Debt Service on the specified date, assuming, for the purpose
of calculating the Facility Debt Service for this definition, that Advances
Outstanding shall be the Allocable Facility Amount for the subject Mortgaged
Property.




     “Discount” means, with respect to any Revolving Advance, an amount equal to the
excess of —




     (i) the face amount of the MBS backed by the Revolving Advance, over




     (ii) the Price of the MBS backed by the Revolving Advance.




     “DUS Guide” means the Fannie Mae Multifamily Delegated Underwriting and
Servicing (DUS) Guide, as such Guide may be amended from time to time, including exhibits to
the DUS Guide and amendments in the form of Lender Memos, Guide Updates and Guide
Announcements (and, if such Guide is no longer used by Fannie Mae, the term “DUS Guide” as
used in this Agreement means the Fannie Mae Multifamily Negotiated Transactions Guide, as
such Guide may be amended from time to time, including amendments in the form of Lender
Memos, Guide Updates and Guide Announcements). All references to specific articles and
sections of, and exhibits to, the DUS Guide shall be deemed references to such articles,
sections and exhibits as they may be amended, modified, updated, superseded, supplemented or
replaced from time to time.




     “DUS Underwriting Requirements” means the overall underwriting requirements for
Multifamily Residential Properties as set forth in the DUS Guide.




     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time.




     “Event of Default” means any event defined to be an “Event of Default” under
Article XVII.



- 7 -









 






“Facility Debt Service” means, as of any specified date, the sum of:




	 	(a)	 	the amount of interest and principal amortization, during the
12 month period immediately succeeding the specified date, with respect to the
Advances Outstanding on the specified date, except that, for these purposes:






	 	(i)	 	each Revolving Advance shall be deemed to
require level monthly payments of principal and interest (at the Coupon
Rate for the Revolving Advance) in an amount necessary to fully
amortize the original principal amount of the Revolving Advance over a
30-year period, with such amortization deemed to commence on the first
day of the 12 month period; and
	 
	 	(ii)	 	each Base Facility Advance shall require level
monthly payments of principal and interest (at the Coupon Rate for the
Base Facility Advance) in an amount necessary to fully amortize the
original principal amount of the Base Facility Advance over a 30-year
period, with such amortization to commence on the first day of the 12
month period; and






	 	(b)	 	the amount of the Standby Fees payable to the Lender pursuant
to Section 16.01 during such 12 month period (assuming, for these purposes,
that the Advances Outstanding throughout the 12 month period are always equal
to the amount of Advances Outstanding on the specified date).






Exhibit E to this Agreement contains an example of the determination of the Facility
Debt Service.




     “Facility Termination Fee” means, with respect to a reduction in the Revolving Facility
Commitment pursuant to Articles IX or X, an amount equal to the product obtained by
multiplying




     (1) the reduction in the Revolving Facility Commitment, by




     (2) the Revolving Facility Fee in effect at such time, by




     (3) the present value factor calculated using the following formula:




     1 (1 + r) n




      r




     r — Yield Rate




     n — the number of years, and any fraction thereof, remaining between the Closing Date
for the reduction in the Revolving Facility Commitment and the Revolving Facility
Termination Date.



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     The “Yield Rate” means the rate on the Three Month LIBOR on the second Business Day
preceding, as applicable, (x) the date of the reduction in the Revolving Commitment, (y) the
date of the Complete Revolving Facility Termination or (z) the date of Lender’s acceleration
of the unpaid principal balance of the Revolving Facility Note.




     “Fannie Mae” means the federally-chartered and stockholder-owned corporation
organized and existing under the Federal National Mortgage Association Charter Act, 12
U.S.C. § 1716 et seq.




     “Financial Covenants” means the covenants set forth in Article XV.




     “Future Advance” means an Advance made after the Initial Closing Date.




     “Future Advance Request” shall have the meaning set forth in Section 5.02.




     “GAAP” means generally accepted accounting principles in the United States in
effect from time to time, consistently applied.




     “General Conditions” shall have the meaning set forth in Article XI.




     “Geographical Diversification Requirements” means, prior to the occurrence of
an increase in the Commitment pursuant to Article VIII, a requirement that the Collateral
Pool consist of at least seven (7) Mortgaged Properties located in at least four (4) states
and five (5) SMSA’s and, upon the occurrence of any increase in the Commitment pursuant to
Article VIII, such requirements as to the geographical diversity of the Collateral Pool as
the Lender may reasonably determine and notify Borrower of prior to the time of the
increase.




     “Governmental Approval” means an authorization, permit, consent, approval,
license, registration or exemption from registration or filing with, or report to, any
Governmental Authority.




     “Governmental Authority” means any court, board, agency, commission, office or
authority of any nature whatsoever for any governmental unit (federal, state, county,
district, municipal, city or otherwise) whether now or hereafter in existence.




     “Gross Revenues” means, for any specified period, with respect to any
Multifamily Residential Property, all income in respect of such Multifamily Residential
Property, as determined by the Lender in accordance with the method described in paragraph 3
of Section 403.02 of Part III of the DUS Guide, except that for these purposes the financial
statements to be used need not be audited and paragraph (b) of such paragraph 3 shall be
taken into account in the Lender’s discretion.




     “Hazardous Materials”, with respect to any Mortgaged Property, shall have the
meaning given that term in the Security Instrument encumbering the Mortgaged Property.



- 9 -









 






     “Hazardous Materials Law”, with respect to any Mortgaged Property, shall have
the meaning given that term in the Security Instrument encumbering the Mortgaged Property.




     “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 Mortgaged Property in violation of Hazardous Materials Laws, including the
discharge of any Hazardous Materials emanating from any Mortgaged 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 Mortgaged Property in violation of
Hazardous Materials Laws, in each case whether sudden or nonsudden, accidental or
nonaccidental.




     “Impositions” means, with respect to any Mortgaged Property, all (1) water and
sewer charges which, if not paid, may result in a lien on all or any part of the Mortgaged
Property, (2) premiums for fire and other hazard insurance, rent loss insurance and such
other insurance as Lender may require under any Security Instrument, (3) Taxes, and (4)
amounts for other charges and expenses which Lender at any time reasonably deems necessary
to protect the Mortgaged Property, to prevent the imposition of liens on the Mortgaged
Property, or otherwise to protect Lender’s interests.




     “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 current trade liabilities incurred in the ordinary
course of business and payable in accordance with customary practices);




          (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 of the Commonwealth of Virginia) 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 in good faith.




     “Initial Advance” means the Revolving Advance made pursuant to the Original
Agreement outstanding on the Initial Closing Date in the amount of $200,000,000.




     “Initial Advance Request” shall have the meaning set forth in Section 5.01.




     “Initial Closing Date” means the date of this Agreement.




     “Initial Mortgaged Properties” means the Multifamily Residential Properties
described on Exhibit A to this Agreement and which represent the Multifamily Residential
Properties which are made part of the Collateral Pool on the Initial Closing Date.




     “Initial Security Instruments” means the Security Instruments covering the
Initial Mortgaged Properties.




     “Initial Valuation” means, when used with reference to specified Collateral,
the Valuation initially performed for the Collateral as of the date on which the Collateral
was added to the Collateral Pool. The Initial Valuation for each of the Initial Mortgaged
Properties is as set forth in Exhibit A to this Agreement.



- 11 -









 






     “Insurance Policy” means, with respect to a Mortgaged Property, the insurance
coverage and insurance certificates evidencing such insurance required to be maintained
pursuant to the Security Instrument encumbering the Mortgaged Property.




     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended.
Each reference to the Internal Revenue Code shall be deemed to include (a) any successor
internal revenue law and (b) the applicable regulations whether final, temporary or
proposed.




     “Lease” means any lease, any sublease or subsublease, license, concession or
other agreement (whether written or oral and whether now or hereafter in effect) pursuant to
which any Person is granted a possessory interest in, or right to use or occupy all or any
portion of any space in any Mortgaged Property, and every modification, amendment or other
agreement relating to such lease, sublease, subsublease or other agreement entered into in
connection with such lease, sublease, subsublease or other agreement, and every guarantee of
the performance and observance of the covenants, conditions and agreements to be performed
and observed by the other party thereto.




     “Lender” shall have the meaning set forth in the first paragraph of this
Agreement, but shall refer to any replacement Lender if the initial Lender is replaced
pursuant to the terms of Section 19.04.




     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, security interest, encumbrance, lien (statutory or otherwise), preference,
priority or charge of any kind (including any agreement to give any of the foregoing, any
conditional sale or other title retention agreement, any financing or similar statement or
notice filed under the Uniform Commercial Code as adopted and in effect in the relevant
jurisdiction or other similar recording or notice statute, and any lease in the nature
thereof).




     “Loan Documents” means this Agreement, the Notes, the Advance Confirmation
Instruments for the Revolving Advances, the Security Documents, all documents executed by
the Borrower pursuant to the General Conditions set forth in Article XI of this Agreement
and any other documents executed by the Borrower from time to time in connection with this
Agreement or the transactions contemplated by this Agreement.




     “Loan to Value Ratio for the Trailing 12 Month Period” means, for a Mortgaged
Property, for any specified date, the ratio (expressed as a percentage) of —




(a) the Allocable Facility Amount of the subject Mortgaged Property on the specified
date,



to





(b) the Valuation most recently obtained prior to the specified date for the subject
Mortgaged Property.



- 12 -









 






     “Loan Year” means the 12-month period from the first day of the first calendar
month after the Initial Closing Date to and including the last day before the first
anniversary of the Initial Closing Date, and each 12-month period thereafter.




     “Material Adverse Effect” means, with respect to any circumstance, act,
condition or event of whatever nature (including any adverse determination in any
litigation, arbitration, or governmental investigation or proceeding), whether singly or in
conjunction with any other event or events, act or acts, condition or conditions, or
circumstance or circumstances, whether or not related, a material adverse change in or a
materially adverse effect upon any of (a) the business, operations, property or condition
(financial or otherwise) of the Borrower, (b) the present or future ability of the Borrower
to perform the Obligations for which it is liable, (c) the validity, priority, perfection or
enforceability of this Agreement or any other Loan Document or the rights or remedies of the
Lender under any Loan Document, or (d) the value of, or the Lender’s ability to have
recourse against, any Mortgaged Property.




     “MBS” means a mortgage-backed security which is “backed” by an Advance which is
secured by an interest in the Notes and the Collateral Pool securing the Notes, which
interest permits the holder of the MBS to participate in the Notes and the Collateral Pool
to the extent of such Advance.




     “MBS Imputed Interest Rate” shall have the meaning set forth in Section
2.05(a).




     “MBS Issue Date” means the date on which a Fannie Mae MBS is issued by Fannie
Mae.




     “MBS Delivery Date” means the date on which a Fannie Mae MBS is delivered by
Fannie Mae.




     “MBS Pass-Through Rate” for a Base Facility Advance means the interest rate as
determined by the Lender (rounded to three places) payable in respect of the Fannie Mae MBS
issued pursuant to the MBS Commitment backed by the Base Facility Advance as determined in
accordance with Section 4.01.




     “Mortgaged Properties” means, collectively, the Additional Mortgaged Properties
and the Initial Mortgaged Properties, but excluding each Collateral Release Property from
and after the date of the release of the Collateral Release Property from the Collateral
Pool.




     “Multifamily Residential Property” means a residential property, located in the
United States, containing five or more dwelling units in which not more than twenty percent
(20%) of the net rentable area is or will be rented to non-residential tenants, and
conforming to the requirements of Sections 201 and 203 of Part III of the DUS Guide.




     “Net Operating Income” means, for any specified period, with respect to any
Multifamily Residential Property, the aggregate net income during such period equal to Gross
Revenues during such period less the aggregate Operating Expenses during such



- 13 -









 







period. If a Mortgaged Property is not owned by the Borrower for the entire specified
period, the Net Operating Income for the Mortgaged Property for the time within the
specified period during which the Mortgaged Property was owned by the Borrower shall be the
Mortgaged Property’s pro forma net operating income determined by the Lender in accordance
with the underwriting procedures set forth in Chapter 4 of Part III of the DUS Guide.




     “Note” means a Base Facility Note or the Revolving Facility Note.




     “Obligations” means the aggregate of the obligations of the Borrower under this
Agreement and the other Loan Documents.




     “Operating Expenses” means, for any period, with respect to any Multifamily
Residential Property, all expenses in respect of the Multifamily Residential Property, as
determined by the Lender in accordance with the method described in paragraph 3 of Section
403.02 of Part III of the DUS Guide (Estimated Expenses), including replacement reserves, if
any, under the Replacement Reserve Agreements for the Mortgaged Properties.




     “Organizational Certificate” means a certificate of the Borrower in the form
attached as Exhibit F to this Agreement.




     “Organizational Documents” means all certificates, instruments and other
documents pursuant to which an organization is organized or operates, including but not
limited to, (i) with respect to a corporation, its articles of incorporation and bylaws,
(ii) with respect to a limited partnership, its limited partnership certificate and
partnership agreement, (iii) with respect to a general partnership or joint venture, its
partnership or joint venture agreement and (iv) with respect to a limited liability company,
its articles of organization and operating agreement.




     “Outstanding” means, when used in connection with promissory notes, other debt
instruments or Advances, for a specified date, promissory notes or other debt instruments
which have been issued, or Advances which have been made, but have not been repaid in full
as of the specified date.




     “Ownership Interests” means, with respect to any entity, any ownership
interests in the entity and any economic rights (such as a right to distributions, net cash
flow or net income) to which the owner of such ownership interests is entitled.




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




     “Permits” means all permits, or similar licenses or approvals issued and/or
required by an applicable Governmental Authority or any Applicable Law in connection with
the ownership, use, occupancy, leasing, management, operation, repair, maintenance or
rehabilitation of any Mortgaged Property or the Borrower’s business.



- 14 -









 






     “Permitted Liens” means, with respect to a Mortgaged Property, (i) the
exceptions to title to the Mortgaged Property set forth in the Title Insurance Policy for
the Mortgaged Property which are approved by the Lender, (ii) the Security Instrument
encumbering the Mortgaged Property, and (iii) any other Liens approved by the Lender.




     “Person” means an individual, an estate, a trust, a corporation, a partnership,
a limited liability company or any other organization or entity (whether governmental or
private).




     “Potential Event of Default” means any event which, with the giving of notice
or the passage of time, or both, would constitute an Event of Default.




     “Price” means, with respect to an Advance, the proceeds of the sale of the MBS
backed by the Advance.




     “Property” means any estate or interest in any kind of property or asset,
whether real, personal or mixed, and whether tangible or intangible.




     “Rate Confirmation Form” shall have the meaning set forth in Section 4.01(c).




     “Rate Setting Date” shall have the meaning set forth in Section 4.01(b).




     “Rate Setting Form” shall have the meaning set forth in Section 4.01(b).




     “Release Price” shall have the meaning set forth in Section 7.02(c).




     “Rent Roll” means, with respect to any Multifamily Residential Property, a rent
roll prepared and certified by the owner of the Multifamily Residential Property, on Fannie
Mae Form 4243, as set forth in Exhibit III-3 of the DUS Guide, or on another form approved
by the Lender and containing substantially the same information as Form 4243 requires.




     “Replacement Reserve Agreement” means a Replacement Reserve and Security
Agreement, reasonably required by the Lender, and completed in accordance with the
requirements of the DUS Guide.




     “Request” means a Collateral Addition Request, a Collateral Release Request, a
Conversion Request, a Credit Facility Expansion Request, a Credit Facility Termination
Request, a Future Advance Request, an Initial Advance Request or a Revolving Facility
Termination Request.




     “Revolving Advance” means a loan made by the Lender to the Borrower under the
Revolving Facility Commitment.




     “Revolving Credit Endorsement” means an endorsement to a Title Insurance Policy
which contains substantially the same coverages, and is subject to substantially the same or
fewer exceptions (or such other exceptions as the Lender may approve), as the form attached
as Exhibit H to this Agreement.



- 15 -









 






     “Revolving Facility” means the agreement of the Lender to make Advances to the
Borrower pursuant to Section 2.01.




     “Revolving Facility Availability Period” means the period beginning on the
Initial Closing Date and ending on the 90th day before the Revolving Facility Termination
Date.




     “Revolving Facility Commitment” means an aggregate amount of $200,000,000 which
shall be evidenced by the Revolving Facility Note in the form attached hereto as Exhibit
I, plus such amount as the Borrower may elect to add to the Revolving Facility
Commitment in accordance with Article VIII, and less such amount as the Borrower may elect
to convert from the Revolving Facility Commitment to the Base Facility Commitment in
accordance with Article III and less such amount by which the Borrower may elect to reduce
the Revolving Facility Commitment in accordance with Article IX.




     “Revolving Facility Fee” means (i) 55 basis points per annum (0.55%) for a
Revolving Advance drawn from the Revolving Facility Commitment initially available (whether
drawn or undrawn) under this Agreement during the period ending on the date 12 months after
the Initial Closing Date, (ii) for any extended term of the Revolving Facility, the number
of basis points per annum determined by the Lender as the Revolving Facility Fee for such
period, which fee shall be set by Lender not less than 30 days prior to the commencement of
such period, and (iii) for any Revolving Advance drawn from any portion of the Revolving
Facility Commitment increased under Article VIII after the date 12 months after the Initial
Closing Date, the number of basis points per annum determined at the time of such increase
by the Lender as the Revolving Facility Fee for such Revolving Advances.




     “Revolving Facility Note” means the promissory note, in the form attached as
Exhibit I to this Agreement, which has been issued by the Borrower to the Lender to
evidence the Borrower’s obligation to repay Revolving Advances.




     “Revolving Facility Termination Date” means the day ten (10) years, six (6)
months and one (1) day after the Initial Closing Date, as such date may be extended pursuant
to Section 2.07 of this Agreement.




     “Security” means a “security” as set forth in Section 2(1) of the Securities
Act of 1933, as amended.




     “Security Documents” means the Security Instruments, the Replacement Reserve
Agreements and any other documents executed by a Borrower from time to time to secure any of
the Borrower’s obligations under the Loan Documents.




     “Security Instrument” means, for each Mortgaged Property, a separate
Multifamily Mortgage, Deed of Trust or Deed to Secure Debt, Assignment of Leases and Rents
and Security Agreement given by the Borrower to or for the benefit of the Lender to secure
the obligations of the Borrower under the Loan Documents. With respect to each Mortgaged
Property owned by the Borrower, the Security Instrument shall be



- 16 -









 







substantially in the form published by Fannie Mae for use in the state in which the
Mortgaged Property is located. The amount secured by the Security Instrument shall be equal
to the Commitment in effect from time to time.




     “Senior Management” means (i) the Chief Executive Officer, Chairman of the
Board, President, Chief Financial Officer and Chief Operating Officer of the Borrower, and
(ii) any other individuals with responsibility for any of the functions typically performed
in a corporation by the officers described in clause (i).




     “SMSA” means a “standard metropolitan statistical area,” as defined from time
to time by the United States Office of Management and Budget.




     “Standby Fee” means, for any month, an amount equal to the product obtained by
multiplying: (i) 1/12, by (ii) 12.5 basis points, by (iii) the Unused Capacity for such
month.




     “Subsidiary” means, as to any Person, any corporation, partnership, limited
liability company or other entity of which securities or other ownership interest having an
ordinary voting power to elect a majority of the board of directors or other persons
performing similar functions are at the time directly or indirectly owned by such Person.
Unless otherwise provided, references to a “Subsidiary” or “Subsidiaries” shall mean a
Subsidiary or Subsidiaries of the Borrower.




     “Substitution Fee” means, with respect to a Multifamily Residential Property
added to the Collateral Pool in accordance with Section 7.04




     (a) if the Additional Mortgaged Property is being added to the Collateral Pool in
connection with a substitution prior to the second anniversary of the Initial Closing Date:




          (i) 50 basis points, multiplied by




          (ii) 65% of the Initial Valuation of the Multifamily Residential Property, as
determined by the Lender.




     (b) if the Additional Mortgaged Property is being added to the Collateral Pool in
connection with a substitution subsequent to the second anniversary of the Initial Closing
Date:




          (i) 75 basis points, multiplied by




          (ii) 65% of the Initial Valuation of the Multifamily Residential Property, as
determined by the Lender.




     “Surveys” means the as-built surveys of the Mortgaged Properties prepared in
accordance with the requirements of Section 113 of the DUS Guide, or otherwise approved by
the Lender.



- 17 -









 






     “Taxes” means all taxes, assessments, vault rentals and other charges, if any,
general, special or otherwise, including all assessments for schools, public betterments and
general or local improvements, which are levied, assessed or imposed by any public authority
or quasi-public authority, and which, if not paid, will become a lien, on the Mortgaged
Properties.




     “Term of this Agreement” shall be determined as provided in Section 23.10 to
this Agreement.




     “Termination Date” means, at any time during which Base Facility Advances are
Outstanding, the latest maturity date for any Base Facility Advance Outstanding, and, at any
time during which Base Facility Advances are not Outstanding, the Revolving Facility
Termination Date.




     “Three-Month LIBOR” means the London interbank offered rate for three-month
U.S. dollar deposits, as such rate is reported in The Wall Street Journal. In the event
that a rate is not published for the Three-Month LIBOR, then the nearest equivalent duration
London interbank offered rate for U.S. Dollar deposits shall be selected at Lender’s
reasonable discretion. If the publication of Three-Month LIBOR is discontinued, Lender
shall determine such rate from another source reasonably selected by Lender which reasonably
correlates (as to rate and volatility) historically to Three-Month LIBOR.




     “Tie-In Endorsement” means an endorsement to a Title Insurance Policy which
contains substantially the same coverages, and is subject to substantially the same or fewer
exceptions (or such other exceptions as the Lender may approve), as the form attached as
Exhibit J to this Agreement.




     “Title Company” means Lawyers Title/LandAmerica.




     “Title Insurance Policies” means the mortgagee’s policies of title insurance
issued by the Title Company from time to time relating to each of the Security Instruments,
conforming to the requirements of Section 111 of the DUS Guide, together with such
endorsements, coinsurance, reinsurance and direct access agreements with respect to such
policies as the Lender may, from time to time, consider necessary or appropriate, whether or
not required by the DUS Guide, including Revolving Credit Endorsements, if available, and
Tie-In Endorsements, if available, and with a limit of liability under the policy (subject
to the limitations contained in Sections 6(a)(i) and 6(a)(iii) of the Stipulations and
Conditions of the policy) equal to the Commitment.




     “Trailing 12 Month Period” means, for any specified date, the 12 month period
ending with the last day of the most recent Calendar Quarter for which financial statements
have been delivered by the Borrower to the Lender pursuant to Sections 13.04(c) and (d).




     “Transfer” means a sale, assignment, lease, pledge, transfer or other
disposition (whether voluntary or by operation of law) of, or the granting or creating of a
lien, encumbrance or security interest in, any estate, rights, title or interest in a
Mortgaged



- 18 -









 







Property, or any portion thereof. “Transfer” does not include (i) a conveyance of the
Mortgaged Property at a judicial or non-judicial foreclosure sale under any Security
Instrument or (ii) the Mortgaged Property becoming part of a bankruptcy estate by operation
of law under the United States Bankruptcy Code.




     “Unused Capacity” means, for any month, the sum of the daily average during
such month of the undrawn amount of the Commitment available under this Agreement, without
regard to any unclosed Requests or to the fact that a Request must satisfy conditions
precedent.




     “Valuation” means, for any specified date, with respect to a Multifamily
Residential Property, (a) if an Appraisal of the Multifamily Residential Property was more
recently obtained than a Cap Rate for the Multifamily Residential Property, the Appraised
Value of such Multifamily Residential Property, or (b) if a Cap Rate for the Multifamily
Residential Property was more recently obtained than an Appraisal of the Multifamily
Residential Property, the value derived by dividing—




	 	(i)	 	the Net Operating Income of such Multifamily Residential
Property for the Trailing 12 Month Period, by
	 
	 	(ii)	 	the most recent Cap Rate determined by the Lender.





Notwithstanding the foregoing, any Valuation for a Multifamily Residential Property
calculated for a date occurring before the first anniversary of the date on which the
Multifamily Residential Property becomes a part of the Collateral Pool shall equal the
Appraised Value of such Multifamily Residential Property, unless the Lender determines that
changed market or property conditions warrant that the value be determined as set forth in
the preceding sentence. Any special risk factors taken into account in connection with the
Initial Valuation of a Multifamily Residential Property shall apply to any subsequent
Valuation of such Multifamily Residential Property unless Lender shall determine that such
special risk factor no longer applies to such Multifamily Residential Property. If the
Borrower does not accept Lender’s Valuation, the Borrower may require that the Lender obtain
an additional Appraisal, if an Appraisal was the basis of the Valuation, or two Appraisals,
if a Cap Rate was the basis of the Valuation. If the two appraisers do not agree on the
valuation of the Mortgaged Property, the Lender shall appoint a third appraiser. If a third
appraiser is appointed, such appraiser shall, within 30 days after appointment, decide which
one of the valuations determined by the other two appraisers is closer to the valuation of
the Mortgaged Property and the valuation so selected by the third appraiser shall be binding
on the parties as the Valuation. The Borrower shall pay all of the Lender’s costs of
obtaining any Appraisal or engaging any appraiser pursuant to this Section.




     “Voting Equity Capital” means Securities or partnership interests 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).



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ARTICLE II

THE REVOLVING FACILITY COMMITMENT



SECTION 2.01 Revolving Facility Commitment. Subject to the terms, conditions and
limitations of this Agreement, the Lender agrees to make Revolving Advances to the Borrower from
time to time during the Revolving Facility Availability Period. The aggregate unpaid principal
balance of the Revolving Advances Outstanding at any time shall not exceed the Revolving Facility
Commitment. Subject to the terms, conditions and limitations of this Agreement, the Borrower may
re-borrow any amounts under the Revolving Facility which it has previously borrowed and repaid
under the Revolving Facility. The Borrower shall be entitled to Revolving Advances based on
increased Valuations of the Mortgaged Properties.



SECTION 2.02 Requests for Revolving Advances. The Borrower shall request a Revolving
Advance by giving the Lender an Initial Advance Request in accordance with Section 5.01 or a Future
Advance Request in accordance with Section 5.02, as applicable.



SECTION 2.03 Maturity Date of Revolving Advances. Regardless of the date on which a
Revolving Advance is made, the maturity date of each Revolving Advance shall be a date selected by
the Borrower in its Request for the Revolving Advance, which date shall be the first day of a
calendar month occurring:





     (a) no earlier than the date which completes one full month after the Closing Date for
the Revolving Advance; and




     (b) no later than the date which completes nine full months after the Closing Date for
the Revolving Advance.


For these purposes, a year shall be deemed to consist of 12 30-day months. For example, the date
which completes three full months after September 15 shall be December 15; and the date which
completes three full months after November 30 shall be February 28 or February 29 in 2004 and any
leap year thereafter.



SECTION 2.04 Interest on Revolving Facility Advances.




          (a) Discount. Each Revolving Advance shall be a discount loan. The original stated
principal amount of a Revolving Advance shall be the sum of the Price of the Revolving Advance and
the Discount of the Revolving Advance. The Price and Discount of each Revolving Advance shall be
determined in accordance with the procedures set out in Section 4.01. The proceeds of the
Revolving Advance made available by the Lender to the Borrower will equal the Price of the
Revolving Advance. The entire unpaid principal of each Revolving Advance shall be due and payable
by the Borrower to the Lender on the maturity date of the Revolving Advance. However, if the
Borrower has requested that the maturing Revolving Advance (in whole or in part) be renewed with a
new Revolving Advance or converted to a Base Facility Advance, to take effect on the maturity date
of the maturing Revolving Advance, then the amount the Borrower is required to pay on account of
the
maturing Revolving Advance will be reduced by, as the case may, that amount of the Price of
the new Revolving Advance allocable to the principal of the maturing Revolving Advance being



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renewed, or that amount of the net proceeds of the MBS related to the Base Facility Advance then
converted from the maturing Revolving Advance.



          (b) Partial Month Interest. Notwithstanding anything to the contrary in this Section,
if a Revolving Advance is not made on the first day of a calendar month, and the MBS Issue Date for
the MBS backed by the Revolving Advance is the first day of the month following the month in which
the Revolving Advance is made, the Borrower shall pay interest on the original stated principal
amount of the Revolving Advance for the partial month period commencing on the Closing Date for the
Revolving Advance and ending on the last day of the calendar month in which the Closing Date
occurs, at a rate per annum equal to the greater of (i) the Coupon Rate for the Revolving Advance
as determined in accordance with Section 2.05(b) and (ii) a rate reasonably determined by the
Lender, based on the Lender’s cost of funds and approved in advance, in writing, by the Borrower,
pursuant to the procedures mutually agreed upon by the Borrower and the Lender.



          (c) Revolving Facility Fee. In addition to paying the Discount and the partial month
interest, if any, the Borrower shall pay monthly installments of the Revolving Facility Fee to the
Lender on account of each Revolving Advance over the whole number of calendar months the MBS backed
by the Revolving Advance is to run from the MBS Issue Date to the maturity date of the MBS. The
Revolving Facility Fee shall be payable in advance, in accordance with the terms of the Revolving
Facility Note. The first installment shall be payable on or prior to the Closing Date for the
Revolving Advance and shall apply to the first full calendar month of the MBS backed by the
Revolving Advance. Subsequent installments shall be payable on the first day of each calendar
month, commencing on the first day of the second full calendar month of such MBS, until the
maturity of such MBS. Each installment of the Revolving Facility Fee shall be in an amount equal
to the product of multiplying (i) the Revolving Facility Fee, by (ii) the amount of the Revolving
Advance, by (iii) 1/12.


SECTION 2.05 Coupon Rates for Revolving Advances. The Coupon Rate for a Revolving Advance
shall be a rate, per annum, as follows:




          (a) The Coupon Rate for a Revolving Advance shall equal the sum of (i) an interest rate as
determined by the Lender (rounded to three places) payable for the Fannie Mae MBS pursuant to the
MBS Commitment backed by the Revolving Advance (“MBS Imputed Interest Rate”) and (ii) the Revolving
Facility Fee.



          (b) Notwithstanding anything to the contrary in this Section, if a Revolving Advance is not
made on the first day of a calendar month, and the MBS Issue Date for the MBS backed by the
Revolving Advance is the first day of the month following the month in which the Revolving Advance
is made, the Coupon Rate for such Revolving Advance for such period shall be the greater of (i) the
rate for the Revolving Advance determined in accordance with subsection (a) of this Section and
(ii) a rate determined by the Lender, based on the Lender’s cost of funds, and approved in advance,
in writing, by the Borrower, pursuant to procedures mutually agreed upon by the Borrower and the
Lender.


SECTION 2.06 Revolving Facility Note. The obligation of the Borrower to repay the
Revolving Advances will be evidenced by the Revolving Facility Note. The Revolving Facility




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Note
shall be payable to the order of the Lender and shall be made in the aggregate amount of the
Revolving Facility Commitment.



SECTION 2.07 Extension of Revolving Facility Termination Date. The Borrower shall have
the right to extend the Revolving Facility Termination Date for one (1) five (5) year period upon
satisfaction of each of the following conditions:




          (a) The Borrower provides written notice to the Lender not less than thirty (30) nor more than
ninety (90) days prior to the then effective Revolving Facility Termination Date requesting that
the Revolving Facility Termination Date be extended.



          (b) No Event of Default or Potential Event of Default exists on either the date the notice
required by paragraph (a) of this Section is given or on the then effective Revolving Facility
Termination Date.



          (c) All of the representations and warranties of the Borrower set forth in Article XII of this
Agreement and the Other Loan Documents are true and correct in all material respects on the date
the notice required by paragraph (a) of this Section is given and on the then effective Revolving
Facility Termination Date.



          (d) The Borrower is in compliance with all of the covenants set forth in Article XIII, Article
XIV and Article XV on the date the notice required by paragraph (a) of this Section is given and on
the then effective Revolving Facility Termination Date.


Upon receipt of the notice required in paragraph (a) of this Section and upon compliance with the
other conditions set forth above, the Revolving Facility Termination Date shall be extended for
five (5) years on the terms and conditions set forth in this Agreement and the Other Loan
Documents, provided that the maturity and pricing applicable to the Revolving Facility during the
period after the then effective Revolving Facility Termination Date shall be acceptable to Lender
in its discretion.




ARTICLE III

THE BASE FACILITY COMMITMENT



SECTION 3.01 Base Facility Commitment. Subject to the terms, conditions and limitations
set forth in this Article, the Lender agrees to make Base Facility Advances to the Borrower from
time to time during the Base Facility Availability Period. The aggregate original principal of the
Base Facility Advances shall not exceed the Base Facility Commitment. The borrowing of a Base
Facility Advance shall permanently reduce the Base Facility Commitment by the original principal
amount of the Base Facility Advance. The Borrower may not re-borrow any part of the Base Facility
Advance which it has previously borrowed and repaid. The Borrower shall be entitled to Base
Facility Advances based on increased Valuations of the Mortgaged Properties.



SECTION 3.02 Requests for Base Facility Advances. The Borrower shall request a Base
Facility Advance by giving the Lender an Initial Advance Request in accordance with Section 5.01 or
a Future Advance Request in accordance with Section 5.02, as applicable.




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SECTION 3.03 Maturity Date of Base Facility Advances. The maturity date of each Base
Facility Advance shall be the maturity date selected by the Borrower at the time of the making of
each such Base Facility Advance, provided that such maturity date shall not be earlier than the 5th
anniversary of such Base Facility Advance nor later than the 15th anniversary of the Initial
Closing Date.



SECTION 3.04 Interest on Base Facility Advances.




          (a) Advances. Each Base Facility Advance shall bear interest at a rate, per annum,
equal to the sum of (i) the MBS Pass-Through Rate determined for such Base Facility Advance and
(ii) the Base Facility Fee.



          (b) Partial Month Interest. Notwithstanding anything to the contrary in this Section,
if a Base Facility Advance is not made on the first day of a calendar month, and the MBS Issue Date
for the MBS backed by the Base Facility Advance is the first day of the month following the month
in which the Base Facility Advance is made, the Borrower shall pay interest on the original stated
principal amount of the Base Facility Advance for the partial month period commencing on the
Closing Date for the Base Facility Advance and ending on the last day of the calendar month in
which the Closing Date occurs at a rate, per annum, equal to the greater of (i) the interest rate
for the Base Facility Advance described in the first sentence of this Section and (ii) a rate
reasonably determined by the Lender, based on the Lender’s cost of funds, and approved in advance,
in writing, by the Borrower, pursuant to procedures mutually agreed upon by the Borrower and the
Lender.


SECTION 3.05 Coupon Rates for Base Facility Advances. The Coupon Rate for a Base Facility
Advance shall be the rate of interest applicable to such Base Facility Advance pursuant to Section
3.04.



SECTION 3.06 Base Facility Note. The obligation of the Borrower to repay a Base Facility
Advance will be evidenced by a Base Facility Note. The Base Facility Notes shall be payable to the
order of the Lender and shall be made in the original principal amount of each Base Facility
Advance.



SECTION 3.07 Conversion of Commitment from Revolving Facility Commitment to Base Facility
Commitment. The Borrower shall have the right, from time to time during the Base Facility
Availability Period, to convert all or a portion of a Revolving Facility Commitment to the Base
Facility Commitment, in which event the Revolving Facility Commitment shall be reduced by, and the
Base Facility Commitment shall be increased by, the amount of the conversion.




          (a) Request. In order to convert all or a portion of the Revolving Facility
Commitment to the Base Facility Commitment, the Borrower shall deliver a written request for a
conversion (“Conversion Request”) to the Lender, in the form attached as Exhibit K
to this Agreement. Each Conversion Request shall be accompanied by a designation of the amount of
the conversion and a designation of any Revolving Advances Outstanding which will be prepaid on or
before the Closing Date for the conversion as required by Section 3.08(c).



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          (b) Closing. If none of the limitations contained in Section 3.08 is violated, and
all conditions contained in Section 3.09 are satisfied, the Lender shall permit the requested
conversion, at a closing to be held at offices designated by the Lender on a Closing Date selected
by the Lender, and occurring within 30 Business Days after the Lender’s receipt of the Conversion
Request (or on such other date to which the Borrower and the Lender may agree), by executing and
delivering, all at the sole cost and expense of the Borrower, an amendment to this Agreement, in
the form attached as Exhibit L to this Agreement, together with an amendment to each
Security Document and other applicable Loan Documents, in form and substance satisfactory to the
Lender, reflecting the change in the Base Facility Commitment and the Revolving Facility
Commitment. The documents and instruments referred to in the preceding sentence are referred to in
this Article as the “Conversion Documents.”


SECTION 3.08 Limitations on Right to Convert. The right of the Borrower to convert all or
a portion of the Revolving Facility Commitment to the Base Facility Commitment is subject to the
following limitations:




          (a) Closing Date. The Closing Date shall occur during the Base Facility Availability
Period.



          (b) Minimum Request. Each Request for a conversion shall be in the minimum amount of
$10,000,000.



          (c) Obligation to Prepay Revolving Advances. If, after the conversion, the aggregate
unpaid principal balance of all Revolving Advances Outstanding will exceed the Revolving Facility
Commitment, the Borrower shall be obligated to prepay, as a condition precedent to the conversion,
an amount of Revolving Advances Outstanding which is at least equal to the amount of the excess.


SECTION 3.09 Conditions Precedent to Conversion. The conversion of all or a portion of
the Revolving Facility Commitment to the Base Facility Commitment is subject to the satisfaction of
the following conditions precedent on or before the Closing Date:




          (a) After giving effect to the requested conversion, the Coverage and LTV Tests will be
satisfied;



          (b) Prepayment by the Borrower in full of any Revolving Advances Outstanding which the
Borrower has designated for payment, together with any associated prepayment premiums and other
amounts due with respect to the prepayment of such Revolving Advances;



          (c) The receipt by the Lender of an endorsement to each Title Insurance Policy, amending the
effective date of the Title Insurance Policy to the Closing Date and showing no additional
exceptions to coverage other than the exceptions shown on the Initial Closing Date and other
exceptions approved by the Lender;



          (d) Receipt by the Lender of one or more counterparts of each Conversion Document, dated as of
the Closing Date, signed by each of the parties (other than the Lender) who is a party to such
Conversion Document; and



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          (e) The satisfaction of all applicable General Conditions set forth in Article XI.


SECTION 3.10 Defeasance. If at any time the Borrower elects to convert all or a portion
of the Revolving Facility Commitment to a Base Facility Commitment pursuant to Section 3.07 of this
Agreement, or elects that any portion of any expansion of the Commitment shall be a Base Facility
Commitment, the Conversion Request or the Credit Facility Expansion Request for the first Base
Facility Commitment shall select defeasance or yield maintenance with respect to prepayments of
Base Facility Advances. If defeasance is selected, this Section 3.10 shall apply. The election of
the Borrower as to defeasance or yield maintenance in the first Conversion Request or Credit
Facility Expansion Request relating to a Base Facility Commitment shall apply to all Base Facility
Advances during the term of this Agreement. Base Facility Advances are not prepayable at any time,
provided that, notwithstanding the foregoing, Borrower may prepay any Base Facility Advance during
the last one hundred eighty (180) days of the term of such Base Facility Advance and provided that
Base Facility Advances may be defeased pursuant to the terms and conditions of this Section. This
Section 3.10 shall not apply to Mortgaged Properties released from a Security Instrument in
connection with a substitution of Collateral pursuant to Section 7.04 of this Agreement.





     (a) Conditions. Subject to Section 3.10(d), Borrower shall have the right to
obtain the release of Mortgaged Properties from the lien of the related Security Instruments
(and all collateral derived from such Mortgage Properties, including assignment of leases,
fixture filings and other documents and instruments evidencing a lien or security interest
in Borrower’s assets [except the Substitute Collateral] shall be released) upon the
satisfaction of all of the following conditions:




     (1) Defeasance Notice. Borrower shall give Lender a notice (the
“Defeasance Notice”, in the manner specified in Section 3.10(g)(4), on a
form provided by Lender, specifying a Business Day (the “Defeasance Closing
Date”) which Borrower desires to consummate the Defeasance. The Defeasance
Closing Date specified by Borrower may not be more than 45 calendar days, nor less
than 30 calendar days, after the date on which the Defeasance Notice is received by
Lender. Borrower shall also specify in the Defeasance Notice the name, address and
telephone number of Borrower for notices pursuant to Section 3.10(g)(4). The form
Defeasance Notice provided by Lender specifies: (i) which Mortgaged Properties
Borrower proposes to be released, (ii) the name, address and telephone number of
Lender for notices pursuant to Section 3.10(g)(4); (iii)
the account(s) to which payments to Lender are to be made; (iv) whether a
Fannie Mae Investment Security will be offered for use as the Substitute Collateral
and, if not, that U.S. Treasury Securities will be the Substitute Collateral; (v)
whether the Successor Borrower will be designated by Lender or Borrower; and (vi) if
a Fannie Mae Investment Security is offered for use as the Substitute Collateral,
the Defeasance Notice shall also include the amount of the Defeasance Commitment
Fee.



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Any applicable Defeasance Commitment fee must be paid by Borrower and received by
Lender no later than the date and time when Lender receives the Defeasance Notice
from Borrower.




     (2) Confirmation. After Lender has confirmed that the Defeasance is
then permitted as provided in Section 3.10(d), and has confirmed that the terms of
the Defeasance Notice are acceptable to Lender, Lender shall, with reasonable
promptness, notify Borrower of such confirmation by signing the Defeasance Notice,
attaching the Annual Yields for the Mortgage Payments beginning on the first day of
the second calendar month after the Defeasance Closing Date and ending on the Stated
Maturity Date (if a Fannie Mae Investment Security is offered as Substitute
Collateral) and transmitting the signed Defeasance Notice to Borrower pursuant to
Section 3.10(g)(4). If, after Lender has notified Borrower of its confirmation in
accordance with the foregoing, Lender does not receive the Defeasance Commitment Fee
within five (5) Business Days after the Defeasance Notice Effective Date, then
Borrower’s right to obtain Defeasance pursuant to that Defeasance Notice shall
terminate.




     (3) Substitute Collateral. On or before the Defeasance Closing Date,
Borrower shall deliver to Lender a pledge and security agreement, in form and
substance satisfactory to Lender in its sole discretion (the “Pledge
Agreement”), creating a first priority perfected security interest in favor of
Lender in substitute collateral constituting an Investment Security (the
“Substitute Collateral”). The Pledge Agreement shall provide Borrower’s
authorization and direction that all interest on, principal of and other amounts
payable with respect to the Substitute Collateral shall be paid directly to Lender
to be applied to Mortgage Payments due under the Base Facility Note subject to
Defeasance. If the Substitute Collateral is issued in a certificated form and
Borrower has possession of the certificate, the certificate shall be endorsed
(either on the certificate or on a separate writing attached thereto) by Borrower as
directed by Lender and delivered to Lender. If the Substitute Collateral is issued
in an uncertificated form, or in a certificated form but Borrower does not have
possession of the certificate, Borrower shall execute and deliver to Lender all
documents and instruments required by Lender to create in Lender’s favor a first
priority perfected security interest in such Substitute Collateral, including a
securities account control agreement or any other instrument or document required to
perfect a security interest in each Substitute Collateral.




     (4) Closing Documents. Borrower shall deliver to Lender on or before
the Defeasance Closing Date the documents described in Section 3.10(b).




     (5) Amounts Payable by Borrower. On or before the Defeasance Closing
Date, Borrower shall pay to Lender an amount equal to the sum of:




	 	(A)	 	the Next Scheduled P&I Payment;




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	 	(B)	 	all other sums then due and
payable under the Base Facility Note subject to Defeasance, the
Security Instruments related to the Mortgaged Properties to be
released; and
	 
	 	(C)	 	all costs and expenses incurred
by Lender or Servicer in connection with the Defeasance,
including the reasonable fees and disbursements of Lender’s or
Servicer’s legal counsel.






     (6) Defeasance Deposit. If a Fannie Mae Investment Security will be
the Substitute Collateral, then, on or before 3:00 p.m., Washington, D.C. time, on
the Defeasance Closing Date, Borrower shall pay the Defeasance Deposit (reduced by
the Defeasance Commitment Fee) to Lender to be used by Lender to purchase the Fannie
Mae Investment Security as Borrower’s agent.




     (7) Covenants, Representations and Warranties. On the Defeasance
Closing Date, all of the covenants of the Borrower set forth in Articles XIII, XIV
and XV of this Agreement and all of the representations and warranties of the
Borrower set forth in Article XII of this Agreement are true and correct in all
material respects.




     (8) Geographical Diversification. If, as a result of the Defeasance,
Lender determines that the geographical diversification of the Collateral Pool is
compromised (whether or not the Geographical Diversification Requirement is met),
Lender may require that Borrower add or substitute Multifamily Residential
Properties to the Collateral Pool in a number and having a valuation required to
restore the geographical diversification of the Collateral Pool to a level at least
as diverse as before the Defeasance.




     (b) Closing Documents. The documents required to be delivered to Lender on or
before the Defeasance Closing Date pursuant to Section 3.10(a)(4) are:




     (1) an opinion of counsel for Borrower, in form and substance satisfactory to
Lender, to the effect that Lender has a valid and perfected lien and security
interest of first priority in the Substitute Collateral and the principal and
interest payable thereunder;




     (2) an opinion of counsel for Borrower, in form and substance satisfactory to
Lender, that the Defeasance, including both Borrower’s granting
to Lender of a lien and security interest in the Substitute Collateral and the
assignment and assumption by Successor Borrower, and each of them, when considered
in combination and separately, are not subject to avoidance under any applicable
federal or state laws, including Sections 547 and 548 of the U.S. Bankruptcy Code;




     (3) if a Fannie Mae Investment Security is not used as Substitute Collateral,
and unless waived by Lender, a certificate in form and substance



- 27 -









 







satisfactory to
Lender, issued by an independent certified public accountant, or financial
institution, approved by Lender, to the effect that the Substitute Collateral will
generate the Scheduled Defeasance Payments;




     (4) unless waived by Lender, an opinion of counsel for Borrower in form and
substance satisfactory to Lender, that the Defeasance will not result in a “sale or
exchange” of any Base Facility Note within the meaning of Section 1001(c) of the
Internal Revenue Code and the temporary and final regulations promulgated
thereunder;




     (5) such other opinions, certificates, documents or instruments as Lender may
reasonably request; and




     (6) three counterparts of the executed Assignment and Assumption Agreement
described in Section 3.10(e).




     (c) Release. Upon Borrower’s compliance with the requirements of Sections
3.10(a)(1) through (7), the Mortgaged Properties shall be released from the lien of the
Security Instruments (and all collateral derived from such Mortgaged Properties, including
assignments of leases, fixture filings and other documents and instruments evidencing a lien
or security interest in Borrower’s assets [except the Substitute Collateral] shall be
released). Lender shall, with reasonable promptness, execute and deliver to Borrower, at
Borrower’s cost and expense, any additional documents reasonably requested by Borrower in
order to evidence or confirm the release of Lender’s liens and security interests described
in the immediately preceding sentence.




     (d) Defeasance Not Allowed. Borrower shall not have the right to obtain
Defeasance at any of the following times:




     (1) before the third anniversary of the date of the relevant Base Facility
Note;




     (2) after the expiration of the Defeasance Period; or




     (3) after Lender has accelerated the maturity of the unpaid principal balance
of, accrued interest on, and other amounts payable under, any Note pursuant to
Paragraph 6 of such Note.




     (e) Assignment and Assumption. Upon Borrower’s compliance with the
requirements of Section 3.10(a), Borrower shall assign all its obligations and rights
under the relevant Base Facility Note, together with the Substitute Collateral, to a
successor entity (the “Successor Borrower”) designated by Lender or, if not so
designated by Lender, designated by Borrower and acceptable to Lender in its sole
discretion. Borrower and Successor Borrower shall execute and deliver to Lender an
assignment and assumption agreement on a form provided by Lender (the “Assignment and
Assumption Agreement”). The Assignment and Assumption Agreement shall provide for (i)
the transfer and assignment by Borrower to Successor Borrower of the Substitute Collateral,
subject to the lien and security interest in favor of Lender, (ii) the



- 28 -









 







assumption by
Successor Borrower of all liabilities and obligations of Borrower under the relevant Base
Facility Note, and (iii) the release by Lender of Borrower from all liabilities and
obligations under the relevant Base Facility Note. Lender shall, at Borrower’s request and
expense, execute and deliver releases, reconveyances and security interest terminations with
respect to the released Mortgage Properties and all other collateral held by Lender (except
the Defeasance Deposit). The Assignment and Assumption Agreement shall be executed by Lender
with a counterpart to be returned by Lender to Borrower and Successor Borrower thereafter;
provided, however, in all events that it shall not be a condition of Defeasance that the
Assignment and Assumption Agreement be executed by Lender, or any Successor Borrower that is
designated by Lender.




     (f) Agent. If the Defeasance Notice provides that Lender will make available a Fannie
Mae Investment Security for purchase by Borrower for use as the Substitute Collateral,
Borrower hereby authorizes Lender to use, and appoints Lender as its agent and
attorney-in-fact for the purpose of using, the Defeasance Deposit (including any portion
thereof that constitutes the Defeasance Commitment Fee) to purchase a Fannie Mae Investment
Security.




     (g) Administrative Provisions.




     (1) Fannie Mae Security Liquidated Damages. If Borrower timely pays
the Defeasance Commitment Fee, and Lender and Borrower timely transmit a signed
facsimile copy of the Defeasance Notice pursuant to Section 3.10(a)(2), but Borrower
fails to perform its other obligations under Sections 3.10(a) and Section 3.10(e),
Lender shall have the right to retain the Defeasance Commitment Fee as liquidated
damages for Borrower’s default, as Lender’s sole and exclusive remedy, and, except
as provided in Section 3.10(g)(2), Borrower shall be released from all further
obligations under this Section 3.10. Borrower acknowledges that, from and after the
date on which Lender has executed the Defeasance Notice under Section 3.10(a)(2) and
Borrower has delivered the Defeasance Commitment Fee, Lender will incur financing
costs in arranging and preparing for the purchase of the Substitute Collateral and
in arranging and preparing for the release of the Mortgaged Properties from the lien
of the Security Instruments in reliance on the executed Defeasance Notice. Borrower
agrees that the Defeasance Commitment Fee represents a fair and reasonable estimate,
taking into account all circumstances existing on the date of this Agreement, of the
damages Lender will incur by reason of Borrower’s default.




     (2) Third Party Costs. In the event that the Defeasance is not
consummated on the Defeasance Closing Date for any reason, Borrower agrees to
reimburse Lender and Servicer for all third party costs and expenses (other than
financing costs covered by Section 3.10(g)(1) above), including attorneys’ fees and
expenses, incurred by Lender in reliance on the executed Defeasance Notice, within
10 Business Days after Borrower receives a written demand for payment, accompanied
by a statement, in reasonable detail, of Lender’s and Servicer’s third party costs
and expenses.



- 29 -









 






     (3) Payments. All payments required to be made by Borrower to Lender
or Servicer pursuant to this Section 3.10 shall be made by wire transfer of
immediately available finds to the account(s) designated by Lender or Servicer, as
the case may be, in the Defeasance Notice.




     (4) Notice. The Defeasance Notice delivered pursuant to this Section
3.10(g)(4) shall be in writing and shall be sent by telecopier or facsimile machine
which automatically generates a transmission report that states the date and time of
the transmission, the length of the document transmitted and the telephone number of
the recipient’s telecopier or facsimile machine (or shall be sent by any
distribution media, whether currently existing or hereafter developed, including
electronic mail and internet distribution, as approved by Lender). Any notice so
sent addressed to the parties at their respective addresses designated in the
Defeasance Notice pursuant to Section 3.10(a), shall be deemed to have been received
on the date and time indicated on the transmission report of recipient. To be
effective, Borrower must send the Defeasance Notice (as described above) so that
Lender receives the Defeasance Notice no earlier than 11:00 a.m. and no later than
3:00 p.m. Washington, D.C. time on a Business Day.




     (h) Definitions. For purposes of this Section 3.10, the following terms shall
have the following meanings:




     (1) The term “Annual Yield” means the yield for the theoretical zero
coupon U.S. Treasury Security as calculated from the current “on-the-run” U.S.
Treasury yield curve with a term to maturity that most closely matches the
Applicable Defeasance Term for the Mortgage Payment, as published by Fannie Mae on
MORNET® (or in an alternative electronic format) at 2:00 p.m. Washington, D.C. time
on the Business Day that Lender receives the Defeasance Notice in accordance with
Section 3.10(g)(4). If the publication of yields on MORNET® is unavailable, Lender
shall determine yields from another source reasonably determined by Lender.




     (2) The term “Applicable Defeasance Term” means, in the case of each
Mortgage Payment, the number of calendar months, based on a year containing 12
calendar months with 30 days each, in the period beginning on the first day of the
first calendar month after the Defeasance Closing Date to the date on which such
Mortgage Payment is due and payable.




     (3) The term “Defeasance” means the transaction in which all (but not
less than all) of the Mortgaged Properties are released from the lien of the
Security Instruments and Lender receives, as substitute collateral, a valid and
perfected lien and security interest of first priority in the Substitute Collateral
and the principal and interest payable thereunder.




     (4) The term “Defeasance Commitment Fee” means the amount specified in
the Defeasance Notice as Borrower’s good faith deposit to ensure performance of its
obligations under this Section, which shall equal two percent



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(2%) of the aggregate
unpaid principal balance of the Base Facility Note subject to Defeasance as of the
Defeasance Notice Effective Date, if the Successor Borrower is designated by
Borrower under Section 3.10(e), or one percent (1%) of the aggregate unpaid
principal balance of the Base Facility Note subject to Defeasance as of the
Defeasance Notice Effective Date if the Successor Borrower is designated by Lender
under Section 3.10(e). No Defeasance Commitment Fee will be applicable if U.S.
Treasury Securities are specified in the Defeasance Notice as the applicable
Investment Security.




     (5) The term “Defeasance Deposit” means an amount equal to the sum of
the present value of each Mortgage Payment that becomes due and payable during the
period beginning on the first day of the second calendar month after the Defeasance
Closing Date and ending on the Stated Maturity Date, where the present value of each
Mortgage Payment is determined using the following formula:



the amount of the Mortgage Payment

(1 + (the Annual Yield/12))n





For this purpose, the last Mortgage Payment due and payable on the Stated
Maturity Date shall include the amounts that would constitute the unpaid
principal balance of the Base Facility Note subject to Defeasance on the
Stated Maturity Date if all prior Mortgage Payments were paid on their due
dates and “n” shall equal the Applicable Defeasance Term.




     (6) The term “Defeasance Period” means the period beginning on the
earliest permitted date determined under Section 3.10(d)(l) and ending on the 180th
day before the Stated Maturity Date.




     (7) The term “Defeasance Notice Effective Date” means the date on which
Lender provides confirmation of the Defeasance Notice pursuant to Section
3.10(a)(2).




     (8) The term “Fannie Mae Investment Security” means any bond,
debenture, note, participation certificate or other similar obligation issued by
Fannie Mae in connection with the Defeasance which provides for Scheduled Defeasance
Payments beginning in the second calendar month after the Defeasance Closing Date.




     (9) The term “Investment Security” means:




     (A) If offered by Lender pursuant to the Defeasance Notice, a Fannie
Mae Investment Security purchased in the manner described in Sections
3.10(a)(6) and 3.10(f), and




     (B) If no Fannie Mae Investment Security is offered by Lender pursuant
to the Defeasance Notice, U.S. Treasury Securities.



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     (10) The term “Mortgage Payment” means the amount of each regularly
scheduled monthly payment of principal and interest due and payable under the Base
Facility Note subject to Defeasance during the period beginning on the first day of
the second calendar month after the Defeasance Closing Date and ending on the Stated
Maturity Date, and the amount that would constitute the aggregate unpaid principal
balance of the Base Facility Note subject to Defeasance on the Stated Maturity Date
if all prior Mortgage Payments were paid on their due dates.




     (11) The term “Next Scheduled P&I Payment” means an amount equal to the
monthly installment of interest due under the Base Facility Note subject to
Defeasance on the first day of the first calendar month after the Defeasance Closing
Date.




     (12) The term “Scheduled Defeasance Payments” means payments prior and
as close as possible to (but in no event later than) the successive scheduled dates
on which Mortgage Payments are required to be paid under the Base Facility Note
subject to Defeasance and in amounts equal to or greater than the scheduled Mortgage
Payments due and payable on such dates under the Base Facility Note subject to
Defeasance.




     (13) The term “Stated Maturity Date” means the Maturity Date specified
in the Base Facility Note subject to Defeasance determined without regard to
Lender’s exercise of any right of acceleration of the Base Facility Note subject to
Defeasance.




     (14) The term “U.S. Treasury Securities” means direct, non-callable and
non-redeemable obligations of the United States of America which provided for
Scheduled Defeasance Payments beginning in the second calendar month after the
Defeasance Closing Date.



ARTICLE IV

RATE SETTING FOR THE ADVANCES



SECTION 4.01 Rate Setting for an Advance. Rates for an Advance shall be set in accordance
with the following procedures:




          (a) Preliminary, Nonbinding Quote. At the Borrower’s request the Lender shall quote
to the Borrower an estimate of the MBS Pass-Through Rate (for a proposed Base Facility Advance) or
MBS Imputed Interest Rate (for a proposed Revolving Advance) for a Fannie Mae MBS backed by a
proposed Advance. The Lender’s quote shall be based on (i) a solicitation of at least three (3)
bids from institutional investors selected by the Lender and (ii) the proposed terms and amount of
the Advance selected by the Borrower. The quote shall not be binding upon the Lender.



          (b) Rate Setting. If the Borrower satisfies all of the conditions to the Lender’s
obligation to make the Advance in accordance with Article V, then the Borrower may



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propose a MBS
Pass-Through Rate (for a Base Facility Advance) or MBS Imputed Interest Rate (for a Revolving
Advance) by submitting to the Lender by facsimile transmission a completed and executed document,
in the form attached as Exhibit M to this Agreement (“Rate Setting Form”), before
1:00 p.m. Washington, D.C. time on any Business Day (“Rate Setting Date”). The Rate
Setting Form contains various factual certifications required by the Lender and specifies:




          (i) for a Revolving Advance, the amount, term, MBS Issue Date, Revolving Facility Fee,
the proposed maximum Coupon Rate (“Maximum Annual Coupon Rate”) and Closing Date for
the Advance; and




          (ii) for a Base Facility Advance, the amount, term, MBS Issue Date, Base Facility Fee,
Maximum Annual Coupon Rate, Price (which will be in a range between 99-1/2 and 100-1/2),
Yield Maintenance Period, if applicable, Yield Rate Security, if applicable, Amortization
Period and Closing Date for the Advance.



          (c) Rate Confirmation. Within one Business Day after receipt of the completed and
executed Rate Setting Form, the Lender shall solicit bids from institutional investors selected by
the Lender based on the information in the Rate Setting Form and, provided the actual Coupon Rate
(if the low bid were accepted) would be at or below the Maximum Annual Coupon Rate, shall obtain a
commitment (“MBS Commitment”) for the purchase of a Fannie Mae MBS having the bid terms
described in the related Rate Setting Form, and shall immediately deliver to the Borrower by
facsimile transmission a completed document, in the form attached as Exhibit N to this
Agreement (“Rate Confirmation Form”). The Rate Confirmation Form will confirm:




          (i) for a Revolving Advance, the amount, term, MBS Issue Date, MBS Delivery Date, MBS
Imputed Interest Rate, Revolving Facility Fee, Coupon Rate, Discount, Price, and Closing
Date for the Advance; and




          (ii) for a Base Facility Advance, the amount, term, MBS Issue Date, MBS Delivery Date,
MBS Pass-Through Rate, Base Facility Fee, Coupon Rate, Price, Yield Maintenance Period,
Specified U.S. Treasury Security, Amortization Period and Closing Date for the Advance.


SECTION 4.02 Advance Confirmation Instrument for Revolving Advances. On or before
the Closing Date for a Revolving Advance, the Borrower shall execute and deliver to the Lender an
instrument (“Advance Confirmation Instrument”), in the form attached as Exhibit O
to this Agreement, confirming the amount, term, MBS Issue Date, MBS Delivery Date, MBS Imputed
Interest Rate, Revolving Facility Fee, Coupon Rate, Discount, Price and Closing Date for the
Advance, and the Borrower’s obligation to repay the Advance in accordance with the terms of the
Notes and this Agreement. Upon the funding of the Revolving Advance, the Lender shall note the
date of funding in the appropriate space at the foot of the Advance Confirmation Instrument and
deliver a copy of the completed Advance Confirmation Instrument to the Borrower. The Lender’s
failure to do so shall not invalidate the Advance Confirmation Instrument or otherwise affect in
any way any obligation of the Borrower to repay Revolving Advances in accordance with the Advance
Confirmation Instrument, the Revolving Facility


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Note or the other Loan Documents, but is merely
meant to facilitate evidencing the date of funding and to confirm that the Advance Confirmation
Instrument is not effective until the date of funding.



SECTION 4.03 Breakage and other Costs. In the event that the Lender obtains an MBS
Commitment and the Lender fails to fulfill the MBS Commitment because the Advance is not made (for
a reason other than the default of the Lender to make the Advance or the failure of the purchaser
of the MBS to purchase such MBS), the Borrower shall pay all breakage and other costs, fees and
damages incurred by the Lender in connection with its failure to fulfill the MBS Commitment. The
Lender reserves the right to require that the Borrower post a deposit at the time the MBS
Commitment is obtained.




ARTICLE V

MAKING THE ADVANCES



SECTION 5.01 Initial Advance. The Borrower may make a request (“Initial Advance
Request”) for the Lender to make the Initial Advance. If all conditions contained in this
Section are satisfied on or before the Closing Date for the Initial Advance, the Lender shall make
the Initial Advance on the Initial Closing Date or on another date selected by the Borrower and
approved by the Lender. The obligation of the Lender to make the Initial Advance is subject to the
following conditions precedent:




          (a) Receipt by the Lender of the Initial Advance Request;



          (b) [Intentionally Deleted];



          (c) The delivery to the Title Company, for filing and/or recording in all applicable
jurisdictions, of all applicable Loan Documents required by the Lender, including duly executed and
delivered original copies of the Revolving Facility Note, a Base Facility Note, the Initial
Security Instruments covering the Initial Mortgaged Properties and UCC-1 Financing Statements
covering the portion of the Collateral comprised of personal property, and other appropriate
instruments, in form and substance satisfactory to the Lender and in form proper for recordation,
as may be necessary in the opinion of the Lender to perfect the Liens
created by the applicable Security Instruments and any other Loan Documents creating a Lien in
favor of the Lender, and the payment of all taxes, fees and other charges payable in connection
with such execution, delivery, recording and filing;



          (d) If the Advance is a Revolving Advance, the receipt by the Lender of the first installment
of Revolving Facility Fee for the Revolving Advance and the entire Discount for the Revolving
Advance payable by the Borrower pursuant to Section 2.04;



          (e) The receipt by the Lender of the Commitment Termination Fee pursuant to Section 16.02(a),
the Initial Due Diligence Fee pursuant to Section 16.03(a) to the extent calculated by Lender at
such time (any portion of the Initial Due Diligence Fee not paid by the Borrower on the Initial
Closing Date shall be paid promptly upon demand by Lender), all legal



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fees and expenses payable
pursuant to Section 16.04(a) and all legal fees and expenses payable in connection with the Initial
Advance pursuant to Section 16.04(b); and



          (f) The satisfaction of all applicable General Conditions set forth in Article XI.


SECTION 5.02 Future Advances. In order to obtain a Future Advance, the Borrower may from
time to time deliver a written request for a Future Advance (“Future Advance Request”) to
the Lender, in the form attached as Exhibit P to this Agreement. Each Future Advance
Request shall be accompanied by (a) a designation of the amount of the Future Advance requested,
and (b) a designation of the maturity date of the Advance. Each Future Advance Request shall be in
the minimum amount of $3,000,000. If all conditions contained in Section 5.03 are satisfied, the
Lender shall make the requested Future Advance, at a closing to be held at offices designated by
the Lender on a Closing Date selected by the Lender, and occurring on a date selected by the
Borrower, which date shall be not more than three (3) Business Days, after the Lender’s receipt of
the Future Advance Request and the Borrower’s receipt of the Rate Confirmation Form (or on such
other date to which the Borrower and the Lender may agree). The Lender reserves the right to
require that the Borrower post a deposit at the time the MBS Commitment is obtained as an
additional condition to the Lender’s obligation to make the Future Advance.



SECTION 5.03 Conditions Precedent to Future Advances. The obligation of the Lender to
make a requested Future Advance is subject to the following conditions precedent:




          (a) The receipt by the Lender of a Future Advance Request;



          (b) The Lender has delivered the Rate Setting Form for the Future Advance to the Borrower;



          (c) After giving effect to the requested Future Advance, the Coverage and LTV Tests will be
satisfied;



          (d) If the Advance is a Base Facility Advance, delivery of a Base Facility Note, duly executed
by the Borrower, in the amount of the Advance, reflecting all of the terms of the Base Facility
Advance;



          (e) If the Advance is a Revolving Advance, delivery of the Advance Confirmation Instrument,
duly executed by the Borrower;



          (f) For any Title Insurance Policy not containing a Revolving Credit Endorsement, the receipt
by the Lender of an endorsement to the Title Insurance Policy, amending the effective date of the
Title Insurance Policy to the Closing Date and showing no additional exceptions to coverage other
than the exceptions shown on the Initial Closing Date and other exceptions approved by the Lender;



          (g) If the Advance is a Revolving Advance, the receipt by the Lender of the first installment
of Revolving Facility Fee for the Revolving Advance and the entire Discount for the Revolving
Advance payable by the Borrower pursuant to Section 2.04;



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          (h) The receipt by the Lender of all legal fees and expenses payable by the Borrower in
connection with the Future Advance pursuant to Section 16.04(b); and



          (i) The satisfaction of all applicable General Conditions set forth in Article XI.


SECTION 5.04 Determination of Allocable Facility Amount and Valuations.




          (a) Initial Determinations. On the Initial Closing Date, Lender shall determine (i) the
Allocable Facility Amount and Valuation for each Mortgaged Property and (ii) the Aggregate Debt
Service Coverage Ratio for the Trailing 12 Month Period and the Aggregate Loan to Value Ratio for
the Trailing 12 Month Period. The determinations made as of the Initial Closing Date shall remain
unchanged until the first anniversary of the Initial Closing Date.



          (b) Future Determinations. (i) Once each Calendar Quarter or, if the Commitment consists only
of a Base Facility Commitment, once each Calendar Year, within twenty (20) Business Days after
Borrower has delivered to Lender the reports required in Section 13.04, Lender shall determine the
Aggregate Debt Service Coverage Ratio for the Trailing 12 Month Period and the Aggregate Loan to
Value Ratio for the Trailing 12 Month Period with the other covenants set forth in the Loan
Documents, and whether the Borrower is in compliance, (ii) after the first anniversary of the
Initial Closing Date, on an annual basis, and if Lender reasonably decides that changed market or
property conditions warrant, Lender shall determine Allocable Facility Amounts and Valuations, and
(iii) Lender shall also redetermine Allocable Facility Amounts to take account of any addition,
release or substitution of Collateral or other event which invalidates the outstanding
determinations.



ARTICLE VI

ADDITIONS OF COLLATERAL



SECTION 6.01 Right to Add Collateral. Subject to the terms and conditions of this
Article, the Borrower shall have the right, from time
to time during the Term of this Agreement, to add Multifamily Residential Properties to the
Collateral Pool in accordance with the provisions of this Article.



SECTION 6.02 Procedure for Adding Collateral. The procedure for adding Collateral set
forth in this Section 6.02 shall apply to all additions of Collateral in connection with this
Agreement, including but not limited to additions of Collateral in connection with substitutions of
Collateral and expansion of the Credit Facility.




          (a) Request. The Borrower may deliver a written request (“Collateral Addition
Request”) to the Lender, in the form attached as Exhibit Q to this Agreement, to add
one or more Multifamily Residential Properties to the Collateral Pool. Each Collateral Addition
Request shall be accompanied by the following:




          (i) The information relating to the proposed Additional Mortgaged Property required by
the form attached as Exhibit R to this Agreement (“Collateral



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Addition
Description Package”), as amended from time to time to include information required
under the DUS Guide; and




          (ii) The payment of all Additional Collateral Due Diligence Fees pursuant to Section
16.03(b) to the extent calculated by Lender at such time (any portion of any Additional
Collateral Due Diligence Fee not paid by Borrower with the Collateral Additional Request
shall be paid promptly upon demand by Lender).



          (b) Additional Information. The Borrower shall promptly deliver to the Lender any
additional information concerning the proposed Additional Mortgaged Property that the Lender may
from time to time reasonably request.



          (c) Underwriting. The Lender shall evaluate the proposed Additional Mortgaged
Property, and shall make underwriting determinations as to (A) the Aggregate Debt Service Coverage
Ratios for the Trailing 12 Month Period and the Aggregate Loan to Value Ratio for the Trailing 12
Month Period applicable to the Collateral Pool, and (B) the Debt Service Coverage Ratio for the
Trailing 12 Month Period and the Loan to Value Ratio for the Trailing 12 Month Period applicable to
the proposed Additional Property on the basis of the lesser of (i) the acquisition price of the
proposed Additional Mortgaged Property or (ii) a Valuation made with respect to the proposed
Additional Mortgaged Property, and otherwise in accordance with Fannie Mae’s DUS Underwriting
Requirements. Within 30 days after receipt of (i) the Collateral Addition Request for the
Additional Mortgaged Property and (ii) all reports, certificates and documents set forth on
Exhibit S to this Agreement, including a zoning analysis undertaken in accordance with
Section 206 of the DUS Guide, the Lender shall notify the Borrower whether or not it shall consent
to the addition of the proposed Additional Mortgaged Property to the Collateral Pool and, if it
shall so consent, shall set forth the Aggregate Debt Service Coverage Ratios for the Trailing 12
Month Period and the Aggregate Loan to Value Ratio for the Trailing 12 Month Period which it
estimates shall result from the addition of the proposed Additional Mortgaged Property to the
Collateral Pool. If the Lender declines to consent to the addition of the proposed Additional
Mortgaged Property to the Collateral Pool, the Lender shall include, in its notice, a brief
statement of the reasons for doing so. Within five
Business Days after receipt of the Lender’s notice that it shall consent to the addition of
the proposed Additional Mortgaged Property to the Collateral Pool, the Borrower shall notify the
Lender whether or not it elects to cause the proposed Additional Mortgaged Property to be added to
the Collateral Pool. If the Borrower fails to respond within the period of five Business Days, it
shall be conclusively deemed to have elected not to cause the proposed Additional Mortgaged
Property to be added to the Collateral Pool.



          (d) Closing. If, pursuant to subsection (c), the Lender consents to the addition of
the proposed Additional Mortgaged Property to the Collateral Pool, the Borrower timely elects to
cause the proposed Additional Mortgaged Property to be added to the Collateral Pool and all
conditions contained in Section 6.03 are satisfied, the Lender shall permit the proposed Additional
Mortgaged Property to be added to the Collateral Pool, at a closing to be held at offices
designated by the Lender on a Closing Date selected by the Lender, and occurring within 30 Business
Days after the Lender’s receipt of the Borrower’s election (or on such other date to which the
Borrower and the Lender may agree), provided that in any Calendar Quarter, the Closing Date for any
addition of an Additional Mortgaged Property to the



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Collateral Pool shall be on the same day as the
Closing Date of any release or substitution pursuant to Article VII of this Agreement and any
increase in the Credit Facility pursuant to Article VIII of this Agreement..


SECTION 6.03 Conditions Precedent to Addition of an Additional Mortgaged Property to the
Collateral Pool. The addition of an Additional Mortgaged Property to the Collateral Pool on
the Closing Date applicable to the Additional Mortgaged Property is subject to the satisfaction of
the following conditions precedent:




          (a) If the Additional Mortgaged Property is being added to the Collateral Pool prior to the
first anniversary of the Initial Closing Date, the Coverage and LTV Tests will be satisfied;



          (b) If the Additional Mortgaged Property is being added to the Collateral Pool after the first
anniversary of the Initial Closing Date, the proposed Additional Mortgaged Property has a Debt
Service Coverage Ratio for the Trailing 12 Month Period of not less than 135% and a Loan to Value
Ratio for the Trailing 12 Month Period of not more than 65% and immediately after giving effect to
the requested addition, the Coverage and LTV Tests will be satisfied, and in the case of any
substitution effected pursuant to Section 7.04 of this Agreement, the Coverage and LTV Tests are
not adversely affected after giving effect to the proposed substitution;



          (c) The receipt by the Lender of the Collateral Addition Fee and all legal fees and expenses
payable by the Borrower in connection with the Collateral Addition pursuant to Section 16.04(b);



          (d) The delivery to the Title Company, with fully executed instructions directing the Title
Company to file and/or record in all applicable jurisdictions, all applicable Collateral Addition
Loan Documents required by the Lender, including duly executed and delivered original copies of any
Security Instruments and UCC-1 Financing Statements covering
the portion of the Additional Mortgaged Property comprised of personal property, and other
appropriate documents, in form and substance satisfactory to the Lender and in form proper for
recordation, as may be necessary in the opinion of the Lender to perfect the Lien created by the
applicable additional Security Instrument, and any other Collateral Addition Loan Document creating
a Lien in favor of the Lender, and the payment of all taxes, fees and other charges payable in
connection with such execution, delivery, recording and filing;



          (e) If required by the Lender, amendments to the Notes and the Security Instruments,
reflecting the addition of the Additional Mortgaged Property to the Collateral Pool and, as to any
Security Instrument so amended, the receipt by the Lender of an endorsement to the Title Insurance
Policy insuring the Security Instrument, amending the effective date of the Title Insurance Policy
to the Closing Date and showing no additional exceptions to coverage other than the exceptions
shown on the Initial Closing Date and other exceptions approved by the Lender;



- 38 -









 






          (f) If the Title Insurance Policy for the Additional Mortgaged Property contains a Tie-In
Endorsement, an endorsement to each other Title Insurance Policy containing a Tie-In Endorsement,
adding a reference to the Additional Mortgaged Property; and



          (g) The satisfaction of all applicable General Conditions set forth in Article XI.



ARTICLE VII

RELEASES OF COLLATERAL



SECTION 7.01 Right to Obtain Releases of Collateral. Subject to the terms and conditions
of this Article, the Borrower shall have the right to obtain a release of Collateral from the
Collateral Pool in accordance with the provisions of this Article.



SECTION 7.02 Procedure for Obtaining Releases of Collateral.




          (a) Request. In order to obtain a release of Collateral from the Collateral Pool, the
Borrower may deliver a written request for the release of Collateral from the Collateral Pool
(“Collateral Release Request”) to the Lender, in the form attached as Exhibit T to
this Agreement. The Collateral Release Request shall not result in a termination of all or any
part of the Credit Facility. The Borrower may only terminate all or any part of the Credit
Facility by delivering a Revolving Facility Termination Request or Credit Facility Termination
Request pursuant to Articles IX or X. The Collateral Release Request shall be accompanied by (and
shall not be effective unless it is accompanied by) the name, address and location of the Mortgaged
Property to be released from the Collateral Pool (“Collateral Release Property”).



          (b) Closing. If all conditions contained in Section 7.03 are satisfied, the Lender
shall cause the Collateral Release Property to be released from the Collateral Pool, at a closing
to be held at offices designated by the Lender on a Closing Date selected by the Lender, and
occurring within 30 days after the Lender’s receipt of the Collateral Release Request (or on
such other date to which the Borrower and the Lender may agree, provided that in any Calendar
Quarter, the Closing Date for any release shall be on the same day as the Closing Date of any
addition of an Additional Mortgaged Property to the Collateral Pool pursuant to Article VI of this
Agreement or any increase in the Credit Facility pursuant to Article VIII of this Agreement), by
executing and delivering, and causing all applicable parties to execute and deliver, all at the
sole cost and expense of the Borrower, instruments, in the form customarily used by the Lender and
reasonably satisfactory to the Title Company for releases in the jurisdiction governing the
perfection of the security interest being released, releasing the applicable Security Instrument as
a Lien on the Collateral Release Property, and UCC-3 Termination Statements terminating the UCC-1
Financing Statements perfecting a Lien on the portion of the Collateral Release Property comprised
of personal property and such other documents and instruments as the Borrower may reasonably
request evidencing the release of the applicable Collateral from any lien securing the Obligations
(including a termination of any restriction on the use of any accounts relating to the Collateral
Release Property) and the release and return to the Borrower of any and all escrowed amounts
relating thereto. The instruments
referred to in the preceding sentence are referred to in this
Article as the “Collateral Release Documents.”




- 39 -









 








          (c) Release Price. The “Release Price” for each Mortgaged Property other than
Mortgaged Properties released from a Security Instrument in connection with a Substitution of
Collateral pursuant to Section 7.04 of this Agreement means the greater of (i) the Allocable
Facility Amount for the Mortgaged Property to be released and (ii) the amount, if any, of Advances
Outstanding which are required to be repaid by the Borrower to the Lender in connection with the
proposed release of the Mortgaged Property from the Collateral Pool, so that, immediately after the
release, the Coverage and LTV Tests will be satisfied and neither the Aggregate Debt Service
Coverage Ratios for the Trailing 12 Month Period will be reduced nor the Aggregate Loan to Value
Ratio for the Trailing 12 Month Period will be increased as a result of such release. In addition
to the Release Price, the Borrower shall pay to the Lender all associated prepayment premiums and
other amounts due under the Notes and any Advance Confirmation Instruments evidencing the Advances
being repaid.



          (d) Application of Release Price. The Release Price shall be applied against the
Revolving Advances Outstanding until there are no further Revolving Advances Outstanding, and
thereafter shall be held by the Lender (or its appointed collateral agent) as substituted
Collateral (“Substituted Cash Collateral”), in accordance with a security agreement and
other documents in form and substance acceptable to the Lender (or, at the Borrower’s option, may
be applied against the prepayment of Base Facility Advances, so long as the prepayment is permitted
under the Base Facility Note for the Base Facility Advance). Any portion of the Release Price held
as Substituted Cash Collateral may be released if, immediately after giving effect to the release,
each of the conditions set forth in Section 7.03(a) below shall have been satisfied. If, on the
date on which the Borrower pays the Release Price, Revolving Advances are Outstanding but are not
then due and payable, the Lender shall hold the payments as additional Collateral for the Credit
Facility, until the next date on which Revolving Advances are due and payable, at which time the
Lender shall apply the amounts held by it to the amounts of the Revolving Advances due and payable.


SECTION 7.03 Conditions Precedent to Release of Collateral Release Property from the
Collateral. The obligation of the Lender to release a Collateral Release Property from the
Collateral Pool by executing and delivering the Collateral Release Documents on the Closing Date,
are subject to the satisfaction of the following conditions precedent on or before the Closing
Date:




          (a) Immediately after giving effect to the requested release the Coverage and LTV Tests will
be satisfied, and in the case of any substitution effected pursuant to Section 7.04 of this
Agreement, the Coverage and LTV Tests are not adversely affected after giving effect to the
proposed substitution;



          (b) Receipt by the Lender of the Release Price;



          (c) Receipt by the Lender of all legal fees and expenses payable by the Borrower in connection
with the release pursuant to 

Section 16.04(b);



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          (d) Receipt by the Lender on the Closing Date of one or more counterparts of each Collateral
Release Document, dated as of the Closing Date, signed by each of the parties (other than the
Lender) who is a party to such Collateral Release Document;



          (e) If required by the Lender, amendments to the Notes and the Security Instruments,
reflecting the release of the Collateral Release Property from the Collateral Pool and, as to any
Security Instrument so amended, the receipt by the Lender of an endorsement to the Title Insurance
Policy insuring the Security Instrument, amending the effective date of the Title Insurance Policy
to the Closing Date and showing no additional exceptions to coverage other than the exceptions
shown on the Initial Closing Date and other exceptions approved by the Lender;



          (f) If the Lender determines the Collateral Release Property to be one phase of a project, and
one or more other phases of the project are Mortgaged Properties which will remain in the
Collateral Pool (“Remaining Mortgaged Properties”), the Lender’s determination that the
Remaining Mortgaged Properties can be operated separately from the Collateral Release Property and
any other phases of the project which are not Mortgaged Properties. In making this determination,
the Lender shall evaluate whether the Remaining Mortgaged Properties comply with the terms of
Sections 203 and 208 of the DUS Guide, which, as of the date of this Agreement, require, among
other things, that a phase which constitutes collateral for a loan made in accordance with the
terms of the DUS Guide (i) have adequate ingress and egress to existing public roadways, either by
location of the phase on a dedicated, all-weather road or by access to such a road by means of a
satisfactory easement, (ii) have access which is sufficiently attractive and direct from major
thoroughfares to be conducive to continued good marketing, (iii) have a location which is not (A)
inferior to other phases, (B) such that inadequate maintenance of other phases would have a
significant negative impact on the phase, and (C) such that the phase is visible only after passing
through the other phases of the project and (iv) comply with such other issues as are dictated by
prudent practice;



          (g) Receipt by the Lender of endorsements to the Tie-In Endorsements of the Title Insurance
Policies, if deemed necessary by the Lender, to reflect the release;



          (h) Receipt by the Lender on the Closing Date of a writing, dated as of the Closing Date,
signed by the Borrower, in the form attached as Exhibit U to this Agreement, pursuant to
which the Borrower confirms that its obligations under the Loan Documents are not adversely
affected by the release of the Collateral Release Property from the Collateral;



          (i) The remaining Mortgaged Properties in the Collateral Pool shall satisfy the then-existing
Geographical Diversification Requirements;



          (j) The satisfaction of all applicable General Conditions set forth in Article XI; and



          (k) Notwithstanding the other provisions of this Section 7.03, no release of any of the
Mortgaged Properties shall be made unless the Borrower has provided title insurance, taking into
account tie-in endorsements, to Lender in respect of each of the remaining Mortgage



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Properties in
the Collateral Pool in an amount equal to 150% of the Initial Value of each such Mortgaged
Property.


SECTION 7.04 Substitutions. Subject to the terms, conditions and limitations of Articles
VI and VII and provided that (i) the Valuation of the Multifamily Residential Property sought to be
added to the Collateral Pool equals or exceeds the Valuation of the Mortgaged Property sought to be
released from the Collateral Pool and (ii) Lender’s receipt of the Substitution Fee and all legal
fees and expenses payable by the Borrower in connection with the substitution pursuant to Section
16.04(b), the Borrower may simultaneously add a Multifamily Residential Property to the Collateral
Pool and release a Mortgaged Property from the Collateral Pool, thereby effecting a substitution of
Collateral, provided that Sections 6.03(c), 7.02(c), 7.02(d) and 7.03(b) shall not apply to a
substitution of Collateral. In order to effect a substitution of Collateral in the Collateral
Pool, the Borrower may deliver a written request for such substitution (“Collateral Substitution
Request”) to the Lender in the forms of the Collateral Addition Request and Collateral Release
Request.




ARTICLE VIII

EXPANSION OF CREDIT FACILITY



SECTION 8.01 Right to Increase Commitment. Subject to the terms, conditions and
limitations of this Article, the Borrower shall have the right, to increase the Base Facility
Commitment, the Revolving Facility Commitment, or both. The Borrower’s right to increase the
Commitment is subject to the following limitations:




          (a) Commitment. After giving effect to the proposed increase, the Commitment (without
regard to the actual amount of Revolving Advances Outstanding, but taking into account the
aggregate original principal amount of all Base Facility Advances made under this Agreement to the
Closing Date) shall not exceed $250,000,000.



          (b) Minimum Request. Each Request for an increase in the Commitment shall be in the
minimum amount of $10,000,000.



          (c) Terms and Conditions. The terms and conditions of this Agreement shall apply to
any increase in the Commitment.


SECTION 8.02 Procedure for Obtaining Increases in Commitment.




          (a) Request. In order to obtain an increase in the Commitment, the Borrower shall
deliver a written request for an increase (a “Credit Facility Expansion Request”) to the
Lender, in the form attached as Exhibit V to this Agreement. Each Credit Facility
Expansion Request shall be accompanied by the following:




          (i) A designation of the amount of the proposed increase;




          (ii) A designation of the increase in the Base Facility Credit Commitment and the
Revolving Facility Credit Commitment;



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          (iii) A request that the Lender inform the Borrower of any change in the Geographical
Diversification Requirements; and




          (iv) A request that the Lender inform the Borrower of the Base Facility Fee and the
Revolving Facility Fee to apply to Advances drawn from such increase in the Commitment.



          (b) Closing. If all conditions contained in Section 8.03 are satisfied, the Lender
shall permit the requested increase in the Commitment, at a closing to be held at offices
designated by the Lender on a Closing Date selected by the Lender, and occurring within fifteen
(15) Business Days after the Lender’s receipt of the Credit Facility Expansion Request (or on such
other date to which the Borrower and the Lender may agree), provided that in any Calendar Quarter
the Closing Date for addition of an Additional Mortgaged Property to the Collateral Pool pursuant
to Article VI of this Agreement and any increase of the Credit Facility shall be on the same day as
the Closing Date for any release or substitution pursuant to Article VII of this Agreement.


SECTION 8.03 Conditions Precedent to Increase in Commitment. The right of the Borrower to
increase the Commitment is subject to the satisfaction of the following conditions precedent on or
before the Closing Date:




          (a) After giving effect to the requested increase the Coverage and LTV Tests will be
satisfied;



          (b) Payment by the Borrower of the Expansion Origination Fee in accordance with Section
16.02(b) and all legal fees and expenses payable by the Borrower in connection with the expansion
of the Commitment pursuant to Section 16.04(b);



          (c) The receipt by the Lender of an endorsement to each Title Insurance Policy, amending the
effective date of the Title Insurance Policy to the Closing Date, increasing the limits of
liability to the Commitment, as increased under this Article, showing no additional exceptions to
coverage other than the exceptions shown on the Initial Closing Date (or, if applicable, the last
Closing Date with respect to which the Title Insurance Policy was endorsed) and other exceptions
approved by the Lender, together with any reinsurance agreements required by the Lender;



          (d) The receipt by the Lender of fully executed original copies of all Credit Facility
Expansion Loan Documents, each of which shall be in full force and effect, and in form and
substance satisfactory to the Lender in all respects;



          (e) if determined necessary by the Lender, the Borrower’s agreement to such geographical
diversification requirements as the Lender may determine; and



          (f) The satisfaction of all applicable General Conditions set forth in Article XI.



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ARTICLE IX

COMPLETE OR PARTIAL TERMINATION OF FACILITIES



SECTION 9.01 Right to Complete or Partial Termination of Facilities. Subject to the terms
and conditions of this Article, the Borrower shall have the right to permanently reduce the
Revolving Facility Commitment and the Base Facility Commitment in accordance with the provisions of
this Article.



SECTION 9.02 Procedure for Complete or Partial Termination of Facilities.




          (a) Request. In order to permanently reduce the Revolving Facility Commitment (other
than in connection with a conversion of all or a portion of the Revolving Loan Commitment to a Base
Facility Commitment, which reduction shall be automatic) or the Base Facility Commitment, the
Borrower may deliver a written request for the reduction (“Facility Termination Request”)
to the Lender, in the form attached as Exhibit W to this Agreement. A permanent reduction
of the Revolving Facility Commitment to $0 shall be referred to as a “Complete Revolving
Facility Termination.” A permanent reduction of the Base Facility Commitment to $0 shall be
referred to as a “Complete Base Facility Termination.” The Facility Termination Request shall be
accompanied by the following:




          (i) A designation of the proposed amount of the reduction in the Commitment; and




          (ii) Unless there is a Complete Revolving Facility Termination or a Complete Base
Facility Termination, a designation by the Borrower of any Revolving Advances which will be
prepaid or Fixed Advances which will be prepaid, as the case may be.


Any release of Collateral, whether or not made in connection with a Facility Termination Request,
must comply with all conditions to a release which are set forth in Article VII.




          (b) Closing. If all conditions contained in Section 9.03 are satisfied, the Lender
shall permit the Revolving Facility Commitment or Base Facility Commitment, as the case may be, to
be reduced to the amount designated by the Borrower, at a closing to be held at offices designated
by the Lender on a Closing Date selected by the Lender, within fifteen (15) Business Days after the
Lender’s receipt of the Facility Termination Request (or on such other date to which the Borrower
and the Lender may agree), by executing and delivering a counterpart of an amendment to this
Agreement, in the form attached as Exhibit X to this Agreement, evidencing the reduction in
the Commitment. The document referred to in the preceding sentence is referred to in this Article
as the “Facility Termination Document.”


SECTION 9.03 Conditions Precedent to Complete or Partial Termination of Facilities. The
right of the Borrower to reduce the Commitments and the obligation of the Lender to execute the
Facility Termination Document, are subject to the satisfaction of the following conditions
precedent on or before the Closing Date:




          (a) Payment by the Borrower in full of all of the Revolving Advances Outstanding required to
be paid in order that the aggregate unpaid principal balance of all



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Revolving Advances Outstanding
is not greater than the Revolving Facility Commitment, including any associated prepayment premiums
or other amounts due under the Notes (but if the Borrower is not required to prepay all of the
Revolving Advances, the Borrower shall have the right to select which of the Revolving Advances
shall be repaid);



          (b) If applicable, payment by the Borrower of the Facility Termination Fee;



          (c) Receipt by the Lender on the Closing Date of one or more counterparts of the Facility
Termination Document, dated as of the Closing Date, signed by each of the parties (other than the
Lender) who is a party to such Facility Termination Document; and



          (d) The satisfaction of all applicable General Conditions set forth in Article XI.



ARTICLE X

TERMINATION OF CREDIT FACILITY



SECTION 10.01 Right to Terminate Credit Facility. Subject to the terms and conditions of
this Article, the Borrower shall have the right to terminate this Agreement and the Credit Facility
and receive a release of all of the Collateral from the Collateral Pool in accordance with the
provisions of this Article.



SECTION 10.02 Procedure for Terminating Credit Facility.




          (a) Request. In order to terminate this Agreement and the Credit Facility, the
Borrower shall deliver a written request for the termination (“Credit Facility Termination
Request”) to the Lender, in the form attached as Exhibit Y to this Agreement.



          (b) Closing. If all conditions contained in Section 10.03 are satisfied, this
Agreement shall terminate, and the Lender shall cause all of the Collateral to be released from the
Collateral Pool, at a closing to be held at offices designated by the Lender on a Closing Date
selected by the Lender, within 30 Business Days after the Lender’s receipt of the Credit Facility
Termination Request (or on such other date to which the Borrower and the Lender may agree), by
executing and delivering, and causing all applicable parties to execute and deliver, all at the
sole cost and expense of the Borrower, (i) instruments, in the form customarily used by the Lender
for releases in the jurisdictions in which the Mortgaged Properties are located, releasing all of
the Security Instruments as a Lien on the Mortgaged Properties, (ii) UCC-3 Termination Statements
terminating all of the UCC-1 Financing Statements perfecting a Lien on the personal property
located on the Mortgaged Properties, in form customarily used in the jurisdiction governing the
perfection of the security interest being released, (iii) such other documents and instruments as
the Borrower may reasonably request evidencing the release of the Collateral from any lien securing
the Obligations (including a termination of any restriction on the use of any accounts relating to
the Collateral) and the release and return to the Borrower of any and all escrowed amounts relating
thereto, (iv) instruments releasing the Borrower from its obligations under this Agreement and any
and all other Loan Documents, and (v) the Notes, each marked paid and canceled. The instruments
referred to in the preceding sentence are referred to in this Article as the “Facility
Termination Documents.”



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SECTION 10.03 Conditions Precedent to Termination of Credit Facility. The right of the
Borrower to terminate this Agreement and the Credit Facility and to receive a release of all of the
Collateral from the Collateral Pool and the Lender’s obligation to execute and deliver the Facility
Termination Documents on the Closing Date are subject to the following conditions precedent:




          (a) Payment by the Borrower in full of all of the Notes Outstanding on the Closing Date,
including any associated prepayment premiums or other amounts due under the Notes and all other
amounts owing by the Borrower to the Lender under this Agreement;



          (b) If applicable, defeasance by the Borrower, in accordance with the provisions of Section
3.10 of this Agreement, with respect to all Base Facility Notes Outstanding on the Closing Date;



          (c) If applicable, payment of the Facility Termination Fee; and



          (d) The satisfaction of all applicable General Conditions set forth in Article XI.



ARTICLE XI

GENERAL CONDITIONS PRECEDENT TO ALL REQUESTS




     The obligation of the Lender to close the transaction requested in a Request shall be subject
to the following conditions precedent (“General Conditions”) in addition to any other
conditions precedent set forth in this Agreement:


SECTION 11.01 Conditions Applicable to All Requests. Each of the following conditions
precedent shall apply to all Requests:




          (a) Payment of Expenses. The payment by the Borrower of the Lender’s reasonable fees
and expenses payable in accordance with this Agreement for which the Lender has presented an
invoice on or before the Closing Date for the Request.



          (b) No Material Adverse Change. There has been no material adverse change in the
financial condition, business or prospects of the Borrower or in the physical condition, operating
performance or value of any of the Mortgaged Properties since the Initial Closing Date (or, with
respect to the conditions precedent to the Initial Advance, from the condition, business or
prospects reflected in the financial statements, reports and other information obtained by the
Lender during its review of the Borrower and the Initial Mortgaged Properties).



          (c) No Default. There shall exist no Event of Default or Potential Event of Default
on the Closing Date for the Request and, after giving effect to the transaction requested in the
Request, no Event of Default or Potential Event of Default shall have occurred.



          (d) No Insolvency. The Borrower is not insolvent (within the meaning of any
applicable federal or state laws relating to bankruptcy or fraudulent transfers) nor will it be
rendered insolvent by the transactions contemplated by the Loan Documents, including the



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making of
a Future Advance, or, after giving effect to such transactions, will be left with an unreasonably
small capital with which to engage in its business or undertakings, or will have intended to incur,
or believe that it has incurred, debts beyond its ability to pay such debts as they mature or will
have intended to hinder, delay or defraud any existing or future creditor.



          (e) No Untrue Statements. The Loan Documents shall not contain any untrue or
misleading statement of a material fact and shall not fail to state a material fact necessary in
order to make the information contained therein not misleading.



          (f) Representations and Warranties. All representations and warranties made by the
Borrower in the Loan Documents shall be true and correct in all material respects on the Closing
Date for the Request with the same force and effect as if such representations and warranties had
been made on and as of the Closing Date for the Request.



          (g) No Condemnation or Casualty. There shall not be pending or threatened any
condemnation or other taking, whether direct or indirect, against any Mortgaged Property and there
shall not have occurred any casualty to any improvements located on any Mortgaged Property.



          (h) Delivery of Closing Documents. The receipt by the Lender of the following, each
dated as of the Closing Date for the Request, in form and substance satisfactory to the Lender in
all respects:




          (i) A Compliance Certificate;




          (ii) An Organizational Certificate; and




          (iii) Such other documents, instruments, approvals (and, if requested by the Lender,
certified duplicates of executed copies thereof) and opinions as the Lender may request.



          (i) Covenants. The Borrower is in full compliance with each of the covenants set
forth in Articles XIII, XIV and XV of this Agreement, without giving effect to any notice and cure
rights of the Borrower.


SECTION 11.02 Delivery of Closing Documents Relating to Initial Advance Request, Collateral
Addition Request, Credit Facility Expansion Request or Future Advance Request. With respect to
the closing of the Initial Advance Request, a Collateral Addition Request, a Credit Facility
Expansion Request, or a Future Advance Request, it shall be a condition precedent that the Lender
receives each of the following, each dated as of the Closing Date for the Request, in form and
substance satisfactory to the Lender in all respects:




          (a) Loan Documents. Fully executed original copies of each Loan Document required to
be executed in connection with the Request, duly executed and delivered by the parties thereto
(other than the Lender), each of which shall be in full force and effect.



          (b) Opinion. Favorable opinions of counsel to the Borrower, as to the due
organization and qualification of the Borrower, the due authorization, execution, delivery and



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enforceability of each Loan Document executed in connection with the Request and such other matters
as the Lender may reasonably require.


SECTION 11.03 Delivery of Property-Related Documents. With respect to each of the
Mortgaged Properties to be made part of the Collateral Pool on the Closing Date for the Initial
Advance Request or a Collateral Addition Request, it shall be a condition precedent that the Lender
receive each of the following, each dated as of the Closing Date for the Initial Advance Request or
Collateral Addition Request, as the case may be, in form and substance satisfactory to the Lender
in all respects:




          (a) A favorable opinion of local counsel to the Borrower or the Lender as to the
enforceability of the Security Instrument, and any other Loan Documents, executed in connection
with the Request.



          (b) A commitment for the Title Insurance Policy applicable to the Mortgaged Property and a pro
forma Title Insurance Policy based on the Commitment.



          (c) The Insurance Policy (or a certified copy of the Insurance Policy) applicable to the
Mortgaged Property.



          (d) The Survey applicable to the Mortgaged Property.



          (e) Evidence satisfactory to the Lender of compliance of the Mortgaged Property with property
laws as required by Sections 205 and 206 of Part III of the DUS Guide.



          (f) An Appraisal of the Mortgaged Property.



          (g) A Replacement Reserve Agreement, providing for the establishment of a replacement reserve
account, to be pledged to the Lender, in which the owner shall (unless waived by the Lender)
periodically deposit amounts for replacements for improvements at the Mortgaged Property and as
additional security for the Borrower’s obligations under the Loan Documents.



          (h) A Completion/Repair and Security Agreement, on the standard form required by the DUS
Guide.



          (i) If no management agreement is in effect for a Mortgaged Property, an Agreement Regarding
Management Agreement or, if a management agreement is in effect for a Mortgaged Property, an
Assignment of Management Agreement, on the standard form required by the DUS Guide.



          (j) An Assignment of Leases and Rents, if the Lender determines one to be necessary or
desirable, provided that the provisions of any such assignment shall be substantively identical to
those in the Security Instrument covering the Collateral, with such modifications as may be
necessitated by applicable state or local law.



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ARTICLE XII

REPRESENTATIONS AND WARRANTIES



SECTION 12.01 Representations and Warranties of the Borrower. The Borrower hereby
represents and warrants to the Lender as follows:




          (a) Due Organization; Qualification.




          (1) The Borrower is a duly formed and existing corporation. The Borrower is qualified
to transact business and is in good standing in the Commonwealth of Virginia and in each
other jurisdiction in which such qualification and/or standing is necessary to the conduct
of its business and where the failure to be so qualified would adversely affect the validity
of, the enforceability of, or the ability of the Borrower to perform the Obligations under
this Agreement and the other Loan Documents. The Borrower is qualified to transact business
and is in good standing in each State in which it owns a Mortgaged Property.




          (2) The Borrower’s principal place of business, principal office and office where it
keeps its books and records as to the Collateral is located at its address set out in
Section 23.08.




          (3) The Borrower has observed all customary formalities regarding its corporate
existence.



          (b) Power and Authority. The Borrower has the requisite power and authority (i) to
own its properties and to carry on its business as now conducted and as contemplated to be
conducted in connection with the performance of the Obligations hereunder and under the other Loan
Documents and (ii) to execute and deliver this Agreement and the other Loan Documents and to carry
out the transactions contemplated by this Agreement and the other Loan Documents.



          (c) Due Authorization. The execution, delivery and performance of this Agreement and
the other Loan Documents have been duly authorized by all necessary action and proceedings by or on
behalf of the Borrower, and no further approvals or filings of any kind, including any approval of
or filing with any Governmental Authority, are required by or on behalf of the Borrower as a
condition to the valid execution, delivery and performance by the Borrower of this Agreement or any
of the other Loan Documents.



          (d) Valid and Binding Obligations. This Agreement and the other Loan Documents have
been duly authorized, executed and delivered by the Borrower and constitute the legal, valid and
binding obligations of the Borrower, enforceable against the Borrower in accordance with their
respective terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws or equitable principles affecting the
enforcement of creditors’ rights generally or by equitable principles or by the exercise of
discretion by any court.



          (e) Non-contravention; No Liens. Neither the execution and delivery of this Agreement
and the other Loan Documents, nor the fulfillment of or compliance with the terms



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and conditions of
this Agreement and the other Loan Documents nor the performance of the Obligations:




          (1) does or will conflict with or result in any breach or violation of any Applicable
Law enacted or issued by any Governmental Authority or other agency having jurisdiction over
the Borrower, any of the Mortgaged Properties or any other portion of the Collateral or
other assets of the Borrower, or any judgment or order applicable to the Borrower or to
which the Borrower, any of the Mortgaged Properties or other assets of the Borrower are
subject;




          (2) does or will conflict with or result in any material breach or violation of, or
constitute a default under, any of the terms, conditions or provisions of the Borrower’s
Organizational Documents, any indenture, existing agreement or other instrument to which the
Borrower is a party or to which the Borrower, any of the Mortgaged Properties or any other
portion of the Collateral or other assets of the Borrower are subject;




          (3) does or will result in or require the creation of any Lien on all or any portion of
the Collateral or any of the Mortgaged Properties, except for the Permitted Liens; or




          (4) does or will require the consent or approval of any creditor of the Borrower, any
Governmental Authority or any other Person except such consents or approvals which have
already been obtained.



          (f) Pending Litigation or other Proceedings. There is no pending or, to the best
knowledge of the Borrower, threatened action, suit, proceeding or investigation, at law or in
equity, before any court, board, body or official of any Governmental Authority or arbitrator
against or affecting any Mortgaged Property or any other portion of the Collateral or other assets
of the Borrower, which, if decided adversely to the Borrower, would have, or may reasonably be
expected to have, a Material Adverse Effect. The Borrower is not in default with respect to any
order of any Governmental Authority.



          (g) Solvency. The Borrower is not insolvent and will not be rendered insolvent by the
transactions contemplated by this Agreement or the other Loan Documents and after giving effect to
such transactions, the Borrower will not be left with an unreasonably small amount of capital with
which to engage in its business or undertakings, nor will the Borrower have incurred, have intended
to incur, or believe that it has incurred, debts beyond its ability to pay such debts as they
mature. The Borrower did not receive less than a reasonably equivalent value in exchange for
incurrence of the Obligations. There (i) is no contemplated, pending or, to the best of the
Borrower’s knowledge, threatened bankruptcy, reorganization, receivership, insolvency or like
proceeding, whether voluntary or involuntary, affecting the Borrower or any of the Mortgaged
Properties and (ii) has been no assertion or exercise of jurisdiction over the Borrower or any of
the Mortgaged Properties by any court empowered to exercise bankruptcy powers.



- 50 -









 





          (h) No Contractual Defaults. There are no defaults by the Borrower or, to the
knowledge of the Borrower, by any other Person under any contract to which the Borrower is a party
relating to any Mortgaged Property, including any management, rental, service, supply, security,
maintenance or similar contract, other than defaults which do not permit the non-defaulting party
to terminate the contract and which do not have, and are not reasonably expected to have, a
Material Adverse Effect. Neither the Borrower nor, to the knowledge of the Borrower, any other
Person, has received notice or has any knowledge of any existing circumstances in respect of which
it could receive any notice of default or breach in respect of any contracts affecting or
concerning any Mortgaged Property, which would have a Material Adverse Effect.



          (i) Compliance with the Loan Documents. The Borrower is in compliance with all
provisions of the Loan Documents to which it is a party or by which it is bound. The
representations and warranties made by the Borrower in the Loan Documents are true, complete and
correct as of the Closing Date and do not contain any untrue statement of material fact or omit to
state a material fact required to be stated therein or necessary in order to make the statements
made therein, in light of the circumstances under which they were made, not misleading.



          (j) ERISA. The Borrower is in compliance in all material respects with all applicable
provisions of ERISA and has not incurred any liability to the PBGC on a Plan under Title IV of
ERISA. None of the assets of the Borrower constitute plan assets (within the meaning of Department
of Labor Regulation § 2510.3-101) of any employee benefit plan subject to Title I of ERISA.



          (k) Financial Information. The financial projections relating to the Borrower and
delivered to the Lender on or prior to the date hereof, if any, were prepared on the basis of
assumptions believed by the Borrower, in good faith at the time of preparation, to be reasonable
and the Borrower is not aware of any fact or information that would lead it to believe that such
assumptions are incorrect or misleading in any material respect; provided, however, that no
representation or warranty is made that any result set forth in such financial projections shall be
achieved. The financial statements of the Borrower which have been furnished to the Lender are
complete and accurate in all material respects and present fairly the financial condition of the
Borrower, as of its date in accordance with GAAP, applied on a consistent basis, and since the date
of the most recent of such financial statements no event has occurred which would have, or may
reasonably be expected to have a Material Adverse Effect, and there has not been any material
transaction entered into by the Borrower other than transactions in the ordinary course of
business. The Borrower has no material contingent obligations which are not otherwise disclosed in
its most recent financial statements.



          (l) Accuracy of Information. No information, statement or report furnished in writing
to the Lender by the Borrower in connection with this Agreement or any other Loan Document or in
connection with the consummation of the transactions contemplated hereby and thereby contains any
material misstatement of fact or omits to state a material fact necessary to make the statements
contained therein, in light of the circumstances under which they were made, not misleading; and
the representations and warranties of the Borrower and the statements, information and descriptions
contained in the Borrower’s closing certificates, as of



- 51 -









 







the Closing Date, are true, correct and
complete in all material respects, do not contain any untrue statement or misleading statement of a
material fact, and do not omit to state a material fact required to be stated therein or necessary
to make the certifications, representations, warranties, statements, information and descriptions
contained therein, in light of the circumstances under which they were made, not misleading; and
the estimates and the assumptions contained herein and in any certificate of the Borrower delivered
as of the Closing Date are reasonable and based on the best information available to the Borrower.



          (m) Intentionally Omitted.



          (n) Governmental Approvals. No Governmental Approval not already obtained or made is
required for the execution and delivery of this Agreement or any other Loan Document or the
performance of the terms and provisions hereof or thereof by the Borrower.



          (o) Governmental Orders. The Borrower is not presently under any cease or desist
order or other orders of a similar nature, temporary or permanent, of any Governmental Authority
which would have the effect of preventing or hindering performance of its duties hereunder, nor are
there any proceedings presently in progress or to its knowledge contemplated which would, if
successful, lead to the issuance of any such order.



          (p) No Reliance. The Borrower acknowledges, represents and warrants that it
understands the nature and structure of the transactions contemplated by this Agreement and the
other Loan Documents, that it is familiar with the provisions of all of the documents and
instruments relating to such transactions; that it understands the risks inherent in such
transactions, including the risk of loss of all or any of the Mortgaged Properties; and that it has
not relied on the Lender or Fannie Mae for any guidance or expertise in analyzing the financial or
other consequences of the transactions contemplated by this Agreement or any other Loan Document or
otherwise relied on the Lender or Fannie Mae in any manner in connection with interpreting,
entering into or otherwise in connection with this Agreement, any other Loan Document or any of the
matters contemplated hereby or thereby.



          (q) Compliance with Applicable Law. The Borrower is in compliance with Applicable
Law, including all Governmental Approvals, if any, except for such items of noncompliance that,
singly or in the aggregate, have not had and are not reasonably expected to cause, a Material
Adverse Effect.



          (r) Contracts with Affiliates. Except as otherwise approved in writing by the Lender,
the Borrower has not entered into and is not a party to any contract, lease or other agreement with
any Affiliate of the Borrower for the provision of any service, materials or supplies to any
Mortgaged 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).



          (s) Lines of Business. Not less than sixty percent (60%) of the Consolidated Total
Assets of Borrower consist of Multifamily Residential Properties.



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          (t) Status as a Real Estate Investment Trust. The Borrower is qualified, and is taxed
as, a real estate investment trust under Subchapter M of the Internal Revenue Code, and is not
engaged in any activities which would jeopardize such qualification and tax treatment.


SECTION 12.02 Representations and Warranties of the Borrower. The Borrower hereby
represents and warrants to the Lender as follows with respect to each of the Mortgaged Properties:




          (a) Title. The Borrower has good, valid, marketable and indefeasible title to each
Mortgaged Property (either in fee simple or as tenant under a ground lease meeting all of the
requirements of the DUS Guide), free and clear of all Liens whatsoever except the Permitted Liens.
Each Security Instrument, if and when properly recorded in the appropriate records, together with
any Uniform Commercial Code financing statements required to be filed in connection therewith, will
create a valid, perfected first lien on the Mortgaged Property intended to be encumbered thereby
(including the Leases related to such Mortgaged Property and the rents and all rights to collect
rents under such Leases), subject only to Permitted Liens. Except for any Permitted Liens, there
are no Liens or claims for work, labor or materials affecting any Mortgaged Property which are or
may be prior to, subordinate to, or of equal priority with, the Liens created by the Loan
Documents. The Permitted Liens do not have, and may not reasonably be expected to have, a Material
Adverse Effect.



          (b) Impositions. The Borrower has filed all property and similar tax returns required
to have been filed by it with respect to each Mortgaged Property and has paid and discharged, or
caused to be paid and discharged, all installments for the payment of all Taxes due to date, and
all other material Impositions imposed against, affecting or relating to each Mortgaged Property
other than those which have not become due, together with any fine, penalty, interest or cost for
nonpayment pursuant to such returns or pursuant to any assessment received by it. Except for any
Tax, levy or other assessment or charge resulting from a reassessment of the value of a Mortgaged
Property in the ordinary course of business, the Borrower has no knowledge of any new proposed Tax,
levy or other governmental or private assessment or charge in respect of any Mortgaged Property
which has not been disclosed in writing to the Lender.



          (c) Zoning. Each Mortgaged Property complies in all material respects with all
Applicable Laws affecting such Mortgaged Property. Without limiting the foregoing, all material
Permits, including certificates of occupancy, have been issued and are in full force and effect.
Neither the Borrower nor, to the knowledge of the Borrower, any former owner of any Mortgaged
Property, has received any written notification or threat of any actions or proceedings regarding
the noncompliance or nonconformity of any Mortgaged Property with any Applicable Laws or Permits,
nor is the Borrower otherwise aware of any such pending actions or proceedings.



          (d) Leases. The Borrower has delivered to the Lender a true and correct copy of its
form apartment lease for each Mortgaged Property (and, with respect to leases executed prior to the
date on which the Borrower first owned the Mortgaged Property, the form apartment lease used for
such leases), and each Lease with respect to such Mortgaged Property is in the form thereof, with
no material modifications thereto, except as previously disclosed in writing to



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the Lender. Except
as set forth in a Rent Roll, no Lease for any unit in any Mortgaged Property (i) is for a term in
excess of one year, including any renewal or extension period unless such renewal or extension
period is subject to termination by the Borrower upon not more than 30 days’ written notice, (ii)
provides for prepayment of more than one month’s rent, or (iii) was entered into in other than the
ordinary course of business.



          (e) Rent Roll. The Borrower has executed and delivered to the Lender a Rent Roll for
each Mortgaged Property, each dated as of and delivered within 30 days prior to the Closing Date.
Each Rent Roll sets forth each and every unit subject to a Lease which is in full force and effect
as of the date of such Rent Roll. The information set forth on each Rent Roll is true, correct and
complete in all material respects as of its date and there has occurred no material adverse change
in the information shown on any Rent Roll from the date of each such Rent Roll to the Closing Date.
Except as disclosed in the Rent Roll with respect to each Mortgaged Property or otherwise
previously disclosed in writing to the Lender, no Lease is in effect as of the date of the Rent
Roll with respect to such Mortgaged Property. Notwithstanding the foregoing, any representation in
this subsection (e) made with respect to a time period occurring prior to the date on which the
Borrower owned the Mortgaged Property is made to the best of the Borrower’s knowledge.



          (f) Status of Landlord under Leases. Except for any assignment of leases and rents
which is a Permitted Lien or which is to be released in connection with the
consummation of the transactions contemplated by this Agreement, the Borrower is the owner and
holder of the landlord’s interest under each of the Leases of units in each Mortgaged Property and
there are no prior outstanding assignments of any such Lease, or any portion of the rents,
additional rents, charges, issues or profits due and payable or to become due and payable
thereunder.



          (g) Enforceability of Leases. Each Lease constitutes the legal, valid and binding
obligation of the Borrower and, to the knowledge of the Borrower, of each of the other parties
thereto, enforceable in accordance with its terms, subject only to bankruptcy, insolvency,
reorganization or other similar laws relating to creditors’ rights generally, and equitable
principles, and except as disclosed in writing to the Lender, no notice of any default by the
Borrower which remains uncured has been sent by any tenant under any such Lease, other than
defaults which do not have, and are not reasonably expected to have, a Material Adverse Effect on
the Mortgaged Property subject to the Lease.



          (h) No Lease Options. All premises demised to tenants under Leases are occupied by
such tenants as tenants only. No Lease contains any option or right to purchase, right of first
refusal or any other similar provisions. No option or right to purchase, right of first refusal,
purchase contract or similar right exists with respect to any Mortgaged Property.



          (i) Insurance. The Borrower has delivered to the Lender true and correct certified
copies of all Insurance Policies currently in effect as of the date of this Agreement with respect
to the Mortgaged Property which it owns. Each such Insurance Policy complies in all material
respects with the requirements set forth in the Loan Documents.



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          (j) Tax Parcels. Each Mortgaged Property is on one or more separate tax parcels, and
each such parcel (or parcels) is (or are) separate and apart from any other property.



          (k) Encroachments. Except as disclosed on the Survey with respect to each Mortgaged
Property, none of the improvements located on any Mortgaged Property encroaches upon the property
of any other Person or upon any easement encumbering the Mortgaged Property, nor lies outside of
the boundaries and building restriction lines of such Mortgaged Property and no improvement located
on property adjoining such Mortgaged Property lies within the boundaries of or in any way
encroaches upon such Mortgaged Property.



          (l) Independent Unit. Except for Permitted Liens and as disclosed on Exhibit
AA to this Agreement, or as disclosed in a Title Insurance Policy or Survey for the Mortgaged
Property, each Mortgaged Property is an independent unit which does not rely on any drainage,
sewer, access, parking, structural or other facilities located on any Property not included either
in such Mortgaged Property or on public or utility easements for the (i) fulfillment of any zoning,
building code or other requirement of any Governmental Authority that has jurisdiction over such
Mortgaged Property, (ii) structural support, or (iii) the fulfillment of the requirements of any
Lease or other agreement affecting such Mortgaged Property. The Borrower, directly or indirectly,
has the right to use all amenities, easements, public or private utilities, parking, access routes
or other items necessary or currently used for the operation of each Mortgaged Property. All
public utilities are installed and operating at each Mortgaged Property and all billed installation
and connection charges have been paid in full. Each
Mortgaged Property is either (x) contiguous to or (y) benefits from an irrevocable
unsubordinated easement permitting access from such Mortgaged Property to a physically open,
dedicated public street, and has all necessary permits for ingress and egress and is adequately
serviced by public water, sewer systems and utilities. No building or other improvement not
located on a Mortgaged Property relies on any part of the Mortgaged Property to fulfill any zoning
requirements, building code or other requirement of any Governmental Authority that has
jurisdiction over the Mortgaged Property, for structural support or to furnish to such building or
improvement any essential building systems or utilities.



          (m) Condition of the Mortgaged Properties. Except as disclosed in any third party
report delivered to the Lender prior to the date on which the Borrower’s Mortgaged Property is
added to the Collateral Pool, or otherwise disclosed in writing by the Borrower to the Lender prior
to such date, each Mortgaged Property is in good condition, order and repair, there exist no
structural or other material defects in such Mortgaged Property (whether patent or, to the best
knowledge of the Borrower, latent or otherwise) and the Borrower has not received notice from any
insurance company or bonding company of any defects or inadequacies in such Mortgaged Property, or
any part of it, which would adversely affect the insurability of such Mortgaged Property or cause
the imposition of extraordinary premiums or charges for insurance or of any termination or
threatened termination of any policy of insurance or bond. No claims have been made against any
contractor, architect or other party with respect to the condition of any Mortgaged Property or the
existence of any structural or other material defect therein. No Mortgaged Property has been
materially damaged by casualty which has not been fully repaired or for which insurance proceeds
have not been received or are not expected to be received except as previously disclosed in writing
to the Lender. There are no proceedings pending for



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partial or total condemnation of any Mortgaged
Property except as disclosed in writing to the Lender.


SECTION 12.03 Representations and Warranties of the Lender. The Lender hereby represents
and warrants to the Borrower as follows:




          (a) Due Organization. The Lender is a limited partnership duly organized, validly
existing and in good standing under the laws of the District of Columbia.



          (b) Power and Authority. The Lender has the requisite power and authority to execute
and deliver this Agreement and to perform its obligations under this Agreement.



          (c) Due Authorization. The execution and delivery by the Lender of this Agreement,
and the consummation by it of the transactions contemplated thereby, and the performance by it of
its obligations thereunder, have been duly and validly authorized by all necessary action and
proceedings by it or on its behalf.



ARTICLE XIII

AFFIRMATIVE COVENANTS OF THE BORROWER



The Borrower agrees and covenants with the Lender that, at all times during the Term of this
Agreement:



SECTION 13.01 Compliance with Agreements; No Amendments. The 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.



SECTION 13.02 Maintenance of Existence. The Borrower shall maintain its existence and
continue to be a corporation, organized under the laws of the state of its organization. The
Borrower shall continue to be duly qualified to do business in each jurisdiction in which such
qualification is necessary to the conduct of its business and where the failure to be so qualified
would adversely affect the validity of, the enforceability of, or the ability to perform, its
obligations under this Agreement or any other Loan Document.



SECTION 13.03 Maintenance of Borrower Status. During the Term of this Agreement, the
Borrower 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.



SECTION 13.04 Financial Statements; Accountants’ Reports; Other Information. The
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 the Borrower’s financial transactions and
assets and (y) the results of the operation of each Mortgaged Property and copies of all written
contracts, Leases and other instruments which affect each Mortgaged Property (including all bills,
invoices and contracts for electrical service, gas service, water and sewer service, waste


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management service, telephone service and management services). In addition, the Borrower shall
furnish, or cause to be furnished, to the Lender:




          (a) Annual Financial Statements. As soon as available, and in any event within 90
days after the close of its fiscal year during the Term of this Agreement, the audited balance
sheet of the Borrower and its Subsidiaries as of the end of such fiscal year, the audited
statement of income, the Borrower’s equity and retained earnings of the Borrower and its
Subsidiaries for such fiscal year and the audited statement of cash flows of the Borrower 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 the Borrower’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 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 the Borrower and its Subsidiaries as of the end
of such fiscal quarter, the unaudited statement of income and retained earnings of the Borrower and
its Subsidiaries and the unaudited statement of cash flows of the Borrower 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 or the Vice
President of Finance of the Borrower 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
Mortgaged Property accompanied by a certificate of the Chief Financial Officer of the Borrower to
the effect that each such statement of income and expenses fairly, accurately and completely
presents the operations of each such Mortgaged Property for the period indicated.



          (d) Annual Property Statements. On an annual basis within ninety (90) days of the end
of its fiscal year, an annual statement of income and expenses of each Mortgaged Property
accompanied by a certificate of the Chief Financial Officer of the Borrower to the effect that each
such statement of income and expenses fairly, accurately and completely presents the operations of
each such Mortgaged Property for the period indicated.



          (e) Updated Rent Rolls. As soon as available, and in any event within forty-five (45)
days after each Calendar Quarter, a current Rent Roll for each Mortgaged 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 the Lender and



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accompanied by a
certificate of the Chief Financial Officer of the Borrower to the effect that each such Rent Roll
fairly, accurately and completely presents the information required therein.



          (f) Security Deposit Information. Upon the Lender’s request, an accounting of all
security deposits held in connection with any Lease of any part of any Mortgaged 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 the Lender to access information regarding such
accounts.



          (g) Security Law Reporting Information. So long as the Borrower 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 the
Borrower, or any of its Affiliates, to its 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 the
Borrower, or any of its Affiliates, with the Securities and Exchange Commission or other
Governmental Authorities, and (c) all press releases and other statements made available
generally by the Borrower, or any of its Affiliates, to the public concerning material
developments in the business of the Borrower or other party.



          (h) Accountants’ Reports. Promptly upon receipt thereof, copies of any reports or
management letters submitted to the 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 the Borrower
shall only be required to deliver such reports and management letters to the extent that they
relate to any Borrower or any Mortgaged Property.



          (i) Annual Budgets. Promptly, and in any event within 60 days after the start of its
fiscal year, an annual budget for each Mortgaged Property for such fiscal year, setting forth an
estimate of all of the costs and expenses, including capital expenses, of maintaining and operating
each Mortgaged Property.



          (j) Borrower Plans and Projections. To the extent prepared in the ordinary course of
business of the Borrower and in the form prepared by the Borrower in the ordinary course of
business, within 30 days after its preparation, copies of (1) the Borrower’s business plan for the
current and the succeeding two fiscal years, (2) the Borrower’s annual budget (including capital
expenditure budgets) and projections for each Mortgaged Property; and (3) the Borrower’s financial
projections for the current and the succeeding two fiscal years.



          (k) Strategic Plan. To the extent prepared in the ordinary course of business of the
Borrower and in the form prepared by the Borrower in the ordinary course of business, within 30
days after its preparation, a written narrative discussing the Borrower’s 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 the Borrower’s Strategic Plan



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materially changes, then
such person shall deliver to the Lender the Strategic Plan as so changed.



          (l) Annual Rental and Sales Comparable Analysis. To the extent prepared in the
ordinary course of business of the Borrower and in the form prepared by the Borrower in the
ordinary course of business, within 30 days after its preparation, a rental and sales comparable
analysis of the local real estate market in which each Mortgaged Property is located.



          (m) Other Reports. Promptly upon receipt thereof, all schedules, financial statements
or other similar reports delivered by the Borrower pursuant to the Loan Documents or requested by
the Lender with respect to the Borrower’s business affairs or condition (financial or otherwise) or
any of the Mortgaged Properties.



          (n) Certification. All certifications required to be delivered pursuant to this
Section 13.04 shall run directly to and be for the benefit of Lender and Fannie Mae.


SECTION 13.05 Certificate of Compliance. The Borrower shall deliver to the Lender
concurrently with the delivery of the financial statements and/or reports required to be delivered
pursuant to Section 13.04 (a) and (b) above a certificate signed by the Chief Financial Officer or
Vice President of Finance of the
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 the Borrower was
in compliance with the requirements of Sections 15.02 through 15.09 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 Event of Default has occurred, or if an Event of Default
or Potential Event of Default has occurred, specifying the nature thereof in reasonable detail and
the action which the Borrower is taking or proposes to take with respect thereto. Any certificate
required by this Section 13.05 shall run directly to and be for the benefit of Lender and Fannie
Mae.



SECTION 13.06 Maintain Licenses. The Borrower shall procure and maintain in full force
and effect all licenses, 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, Permits,
charters and registrations.



SECTION 13.07 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, the
Borrower shall permit the Lender, upon reasonable notice to the Borrower and provided Lender
observes reasonable security and confidentiality procedures of the Borrower:




          (a) to inspect, make copies and abstracts of, and have reviewed or audited, such of the
Borrower’s books and records as may relate to the Obligations or any Mortgaged Property;



          (b) to discuss the Borrower’s affairs, finances and accounts with any of the Borrower’s Chief
Operating Officer, Chief Financial Officer, Vice President of Finance, Treasurer, Assistant
Treasurer, Comptroller and any other person performing the functions of said officers;



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          (c) to discuss the Borrower’s affairs, finances and accounts with its independent public
accountants, provided that the Chief Financial Officer of the Borrower has been given the
opportunity by the Lender to be a party to such discussions; and



          (d) to receive any other information that the Lender deems necessary or relevant in connection
with any Advance, any Loan Document or the Obligations.


Notwithstanding the foregoing, prior to an Event of Default or Potential Event of Default, all
inspections shall be conducted at reasonable times during normal business hours.



SECTION 13.08 Inform the Lender of Material Events. The 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 the Borrower has actual knowledge:




          (a) Defaults. The occurrence of any Event of Default or any Potential Event of
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 Effect;



          (c) Legal Proceedings. The commencement or threat of, or amendment to, any
proceedings by or against the 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 Effect;



          (d) Bankruptcy Proceedings. The commencement of any proceedings by or against the
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 Governmental
Authority having jurisdiction over the Borrower that (A) the Borrower is being placed under
regulatory supervision, (B) any license, Permit, charter, membership or registration material to
the conduct of the Borrower’s business or the Mortgaged Properties is to be suspended or revoked or
(C) the Borrower is to cease and desist any practice, procedure or policy employed by the 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 Effect;



          (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 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



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alleged violation, of any
Hazardous Materials Laws in connection with any Mortgaged Property or any of the other assets of
the Borrower;



          (g) Material Adverse Effects. The occurrence of any act, omission, change or event
which has a Material Adverse Effect, subsequent to the date of the most recent audited financial
statements of the Borrower delivered to the Lender pursuant to Section 13.04;



          (h) Accounting Changes. Any material change in the Borrower’s accounting policies or
financial reporting practices; and



          (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 the Borrower.


SECTION 13.09 Intentionally Omitted.



SECTION 13.10 Inspection. Subject to the rights of tenants and upon reasonable notice,
the Borrower shall permit any Person designated by the
Lender: (i) to make entries upon and inspections of the Mortgaged Properties; and (ii) to
otherwise verify, examine and inspect the amount, quantity, quality, value and/or condition of, or
any other matter relating to, any Mortgaged Property; provided, however, that prior to an
Event of Default or Potential Event of Default, all such entries, examinations and inspections
shall be conducted at reasonable times during normal business hours.



SECTION 13.11 Compliance with Applicable Laws. The Borrower shall comply in all material
respects with all Applicable Laws now or hereafter affecting any Mortgaged Property or any part of
any Mortgaged Property or requiring any alterations, repairs or improvements to any Mortgaged
Property. The Borrower shall procure and continuously maintain in full force and effect, and shall
abide by and satisfy all material terms and conditions of all Permits.



SECTION 13.12 Warranty of Title. The Borrower shall warrant and defend (a) the title to
each Mortgaged Property and every part of each Mortgaged 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. The 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 Mortgaged Property, other than
with respect to a Permitted Lien, is claimed by others.



SECTION 13.13 Defense of Actions. The Borrower shall appear in and defend (whether or not
such defense is provided by Borrower’s insurance) 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 the Lender may appear. If the claim is insured and Borrower’s
insurance company provides a defense, Borrower may rely on such defense. If the 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 the Borrower which affects in any
material respect the Lender’s interest in any Mortgaged Property or any part thereof, including
eminent domain, code enforcement or proceedings of any nature whatsoever


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under any Applicable Law,
whether now existing or hereafter enacted or amended, then the Lender may, but without obligation
to do so and without notice to or demand upon the Borrower and without releasing the Borrower from
any Obligation, make such appearances, disburse such sums and take such action as the Lender deems
necessary or appropriate to protect the Lender’s interest, including disbursement of attorney’s
fees, entry upon such Mortgaged Property to make repairs or take other action to protect the
security of said Mortgaged Property, and payment, purchase, contest or compromise of any
encumbrance, charge or lien which in the judgment of the 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 the Lender is made a party or (iii) of the bankruptcy of the Borrower or an
assignment by the Borrower for the benefit of their respective creditors, the Borrower shall be
chargeable with and agrees to pay all 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.



SECTION 13.14 Alterations to the Mortgaged Properties. Except as otherwise provided in
the Loan Documents, the Borrower shall have the right to undertake any alteration, improvement,
demolition, removal or construction (collectively, “Alterations”) to the Mortgaged Property
which it owns without the prior consent of the Lender; provided, however, that in any case,
no such Alteration shall be made to any Mortgaged Property without the prior written consent of the
Lender if (i) such Alteration could reasonably be expected to adversely affect the value of such
Mortgaged 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 Mortgaged 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 12 months from the date of commencement or in the last year of the Term of this Agreement.
Notwithstanding the foregoing, the Borrower must obtain the Lender’s prior written consent to
construct Alterations with respect to the Mortgaged Property costing in excess of the lesser of (i)
five percent (5%) of the Allocable Facility Amount of such Mortgaged Property and (ii) $250,000 and
the Borrower must give prior written notice to the Lender of its intent to construct Alterations
with respect to such Mortgaged Property costing in excess of $100,000; provided, however, that the
preceding requirements shall not be applicable to Alterations made, conducted or undertaken by the
Borrower as part of the Borrower’s routine maintenance and repair of the Mortgaged Properties as
required by the Loan Documents.



SECTION 13.15 ERISA. The Borrower shall at all times remain in compliance in all material
respects with all applicable provisions of ERISA and similar requirements of the PBGC.



SECTION 13.16 Loan Document Taxes. If any tax, assessment or Imposition (other than a
franchise 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


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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 Mortgaged
Properties, or the Lender by reason of or as holder of the Loan Documents, the 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 the Borrower
from paying the Loan Document Taxes to or for the Lender, the Borrower shall enter into such
further instruments as may be permitted by law to obligate the Borrower to pay such Loan Document
Taxes.



SECTION 13.17 Further Assurances. The Borrower, at the request of the Lender, shall
execute and deliver and, if necessary, file or record such statements, documents, agreements, UCC
financing and continuation statements and such other instruments and take such further action as
the Lender from time to time may request as reasonably necessary, desirable or proper to carry out
more effectively the purposes of this Agreement or any of the other Loan Documents or to subject
the Collateral to the lien and security interests of the Loan Documents or to evidence, perfect or
otherwise implement, to assure the lien and security interests intended by the terms of the Loan
Documents or in order to exercise or enforce its rights under the Loan Documents.



SECTION 13.18 Monitoring Compliance. Upon the request of the Lender, from time to time,
the Borrower shall promptly provide to the Lender such documents, certificates and other
information as may be deemed necessary to enable the Lender to perform its functions under the
Servicing Agreement.



SECTION 13.19 Leases. Each unit in each Mortgaged Property will be leased pursuant to the
form lease delivered to, and acceptable to, the Lender, with no material modifications to such
approved form lease, except as disclosed in writing to the Lender.



SECTION 13.20 Appraisals. At any time and from time to time (but not to exceed once per
calendar year), the Lender shall be entitled to obtain an Appraisal of any Mortgaged Property. At
the time of the addition of a Mortgaged Property to the Collateral Pool, the Lender shall be
entitled to obtain an Appraisal of such Mortgaged Property. The Borrower shall pay all of the
Lender’s costs of obtaining the Appraisal.



SECTION 13.21 Transfer of Ownership Interests of the Borrower.




          (a) Prohibition on Transfers and Changes of Control. The Borrower shall not cause or
permit a Transfer or a Change of Control.



          (b) Permitted Acts. Notwithstanding the provisions of paragraph (a) of this Section
13.21, the following Transfers and transactions by the Borrower are permitted without the consent
of the Lender:




          (i) The grant of a leasehold interest in individual dwelling units or commercial spaces
in any Mortgaged Property in accordance with the Security Instrument.



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          (ii) A sale or other disposition of obsolete or worn out personal property located in
any Mortgaged 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.




          (iii) The creation of a mechanic’s or materialmen’s lien or judgment lien against a
Mortgaged Property which is released of record or otherwise remedied to Lender’s
satisfaction within 30 days of the date of creation.




          (iv) The grant of an easement, if prior to the granting of the easement the Borrower
causes to be submitted to Lender all information required by Lender to evaluate the
easement, and if Lender consents to such easement based upon Lender’s determination that the
easement will not materially affect the operation of the Mortgaged Property or Lender’s
interest in the Mortgaged Property and Borrower pays to Lender, on demand, all costs and
expenses incurred by Lender in connection with reviewing Borrower’s request. 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 serving a Mortgaged 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 materially and adversely affect the access, use or
marketability of a Mortgaged Property.




          (v) The transfer of shares of common stock or other beneficial or ownership interest or
other forms of securities in the Borrower, and the issuance of all varieties of convertible
debt, equity and other similar securities of the Borrower, and the subsequent transfer of
such securities; provided, however, that no Change in Control occurs as a result of such
transfer, either upon such transfer or upon the subsequent conversion to equity or such
convertible debt or other securities.




          (vi) The issuance by Borrower of additional limited partnership units or convertible
debt, equity and other similar securities, and the subsequent transfer of such units or
other securities; provided, however, that no Change in Control occurs as the result of such
transfer, either upon such transfer or upon the subsequent conversion to equity of such
convertible debt or other securities.




          (vii) A merger with or acquisition of another entity by Borrower, provided that (A)
Borrower is the surviving entity after such merger or acquisition, (B) no Change in Control
occurs, and (C) such merger or acquisition does not result in an Event of Default, as such
terms are defined in this Agreement.




          (viii) A Transfer in connection with any substitution or release pursuant to the terms
and conditions of Article VII of this Agreement.



          (c) Consent to Prohibited Acts. Lender may, in its sole and absolute discretion,
consent to a Transfer or Change of Control that would otherwise violate this Section 13.21 if,
prior to the Transfer or Change of Control, Borrower has satisfied each of the following
requirements:



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          (i) the submission to Lender of all information required by Lender to make the
determination required by this Section 13.21(c);




          (ii) the absence of any Event of Default;




          (iii) the transferee meets all of the eligibility, credit, management and other
standards (including any standards with respect to previous relationships between Lender and
the transferee and the organization of the transferee) customarily applied by Lender at the
time of the proposed transaction to the approval of borrowers in
connection with the origination or purchase of similar mortgages, deeds of trust or
deeds to secure debt on multifamily properties;




          (iv) in the case of a transfer of direct or indirect ownership interests in Borrower,
if transferor or any other person has obligations under any Loan Documents, the execution by
the transferee of one or more individuals or entities acceptable to Lender of an assumption
agreement that is acceptable to Lender and that, among other things, requires the transferee
to perform all obligations of transferor or such person set forth in such Loan Document, and
may require that the transferee comply with any provisions of this Instrument or any other
Loan Document which previously may have been waived by Lender;




          (v) Lender’s receipt of all of the following:




          (A) a transfer fee equal to 1 percent of the Commitment immediately prior to
the transfer.




          (B) In addition, Borrower shall be required to reimburse Lender for all of
Lender’s out-of-pocket costs (including reasonable attorneys’ fees) incurred in
reviewing the Borrower’s request.


SECTION 13.22 Change in Senior Management. The Borrower shall give the Lender notice of
any change in the identity of the Chief Executive Officer or the Chief Financial Officer of the
Borrower.



SECTION 13.23 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,
amending the effective date of the Title Insurance Policy to the date of the title search performed
in connection with the endorsement. The Borrower shall pay for the cost and expenses incurred by
the 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 12 month period.



SECTION 13.24 Geographical Diversification. The Borrower shall maintain Mortgaged
Properties in the Collateral Pool so that the Collateral Pool consists of at least seven (7)
Mortgaged Properties located in at least four (4) states and at least five (5) SMSA’s, provided,
however, that, upon the occurrence of any increase in the Commitment pursuant to Article VIII, the
Borrower shall at all times thereafter cause the Collateral Pool to satisfy such other


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Geographical
Diversification Requirements as the Lender may determine and notify Borrower of at the time of the
increase.



SECTION 13.25 Ownership of Mortgaged Properties. The Borrower shall be the sole owner of
each of the Mortgaged Properties free and clear of any Liens other than Permitted Liens.



SECTION 13.26 Facility Balancing. If the Borrower fails to meet the Coverage and LTV
Tests then, within 45 days of Lender’s notice
to Borrower of such failure, the Borrower shall (i) add Additional Mortgaged Properties to the
Collateral Pool in accordance with Article VI so that after such addition the Coverage and LTV
Tests are met, or (ii) prepay Advances Outstanding in an amount sufficient to cause the Borrower to
be in compliance with the Coverage and LTV Tests. Any prepayments made pursuant to the preceding
sentence shall be applied first against the Revolving Advances Outstanding in the sequence
specified by Borrower until there are no further Revolving Advances Outstanding then against the
prepayment of Base Facility Advances Outstanding so long as the prepayment is permitted under the
applicable Base Facility Note. If no prepayment is permitted under the applicable Base Facility
Note, such prepayment amount shall be held by Lender (or its appointed collateral agent) as
substitute cash collateral in accordance with a security agreement and other documents in form and
substance acceptable to Lender. Any substitute cash collateral remaining will be returned to the
Borrower on the earlier of the date when the Coverage and LTV Tests are again met or the
Termination Date. If on the date the Borrower pays any amounts required by this Section, Revolving
Advances are Outstanding but are not then due and payable, Lender shall hold such amounts (which
amounts shall bear interest at a rate determined by Lender) as additional collateral until the next
date on the Revolving Advances are due and payable at which time Lender shall apply the appropriate
portion of such prepayment to such Revolving Advances.




ARTICLE XIV

NEGATIVE COVENANTS OF THE BORROWER



The Borrower agrees and covenants with the Lender that, at all times during the Term of this
Agreement:



SECTION 14.01 Other Activities. The Borrower shall not:




          (a) either directly or indirectly sell, transfer, exchange or otherwise dispose of any of its
assets if such sale, transfer, exchange or disposal would result in an Event of Default or
Potential Event of Default;



          (b) amend its Organizational Documents in any material respect without the prior written
consent of the Lender except in connection with a stock split or the issuance of stock of the
Borrower, provided such stock split or issuance does not result in an Event of Default or Potential
Event of Default;



          (c) dissolve or liquidate in whole or in part, unless the surviving entity is in compliance
with the terms and conditions of this Agreement and the Other Loan Documents;



          (d) merge or consolidate with any Person, unless the surviving entity is in compliance with
the terms and conditions of this Agreement and the Other Loan Documents; or



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          (e) use, or permit to be used, any Mortgaged Property for any uses or purposes other than as a
Multifamily Residential Property.


SECTION 14.02 Value of Security. The Borrower shall not take any action which could
reasonably be expected to have any Material Adverse Effect.



SECTION 14.03 Zoning. The Borrower shall not initiate or consent to any zoning
reclassification of any Mortgaged Property or seek any variance under any zoning ordinance or use
or permit the use of any Mortgaged 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.



SECTION 14.04 Liens. The Borrower shall not create, incur, assume or suffer to exist any
Lien on any Mortgaged Property or any part of any Mortgaged Property, except the Permitted Liens.



SECTION 14.05 Sale. The Borrower shall not Transfer any Mortgaged Property or any part
of any Mortgaged Property without the prior written consent of the Lender (which consent may be
granted or withheld in the Lender’s discretion), or any interest in any Mortgaged Property, other
than to enter into Leases for units in a Mortgaged Property to any tenant in the ordinary course of
business.



SECTION 14.06 Intentionally Omitted.



SECTION 14.07 Principal Place of Business. The Borrower shall not change its principal
place of business or the location of its books and records, each as set forth in Section 12.01(a),
without first giving 30 days’ prior written notice to the Lender.



SECTION 14.08 Intentionally Omitted.



SECTION 14.09 Change in Property Management. The Borrower shall not change the management
agent for any Mortgaged Property except to a management agent which the Lender determines is
qualified in accordance with the criteria set forth in Section 701 of the DUS Guide.



SECTION 14.10 Condominiums. The Borrower shall not submit any Mortgaged Property to a
condominium regime during the Term of this Agreement.



SECTION 14.11 Restrictions on Distributions. The 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 Event of Default or an Event of Default has occurred
and remains uncured.



SECTION 14.12 Conduct of Business. The conduct of the Borrower’s businesses shall not
violate the Organizational Documents pursuant to which it is formed.



SECTION 14.13 Limitation on Unimproved Real Property and New Construction. The Borrower
shall not permit:




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          (a) the value of its real property which is not improved (except real property on which phases
of a Mortgaged 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 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 20%
of the value of all of its Real Estate Assets.


All of the foregoing values shall be reasonably determined by the Lender.



SECTION 14.14 No Encumbrance of Collateral Release Property. Unless the Borrower sells a
Collateral Release Property to a Person who is not an Affiliate of the Borrower substantially
simultaneously with the release of the Collateral Release Property from the Collateral Pool, the
Borrower shall not encumber the Collateral Release Property for a period of 120 days following the
release of the Collateral Release Property from the Collateral Pool.




ARTICLE XV

FINANCIAL COVENANTS OF THE BORROWER



The Borrower agrees and covenants with the Lender that, at all times during the Term of this
Agreement:



SECTION 15.01 Financial Definitions. For all purposes of this Agreement, the following
terms shall have the respective meanings set forth below:




     “Cash Equivalents” means (a) securities issued or directly and fully guaranteed or
insured by the United States of America or any agency or instrumentality thereof (provided that the
full faith and credit of the United States of America is pledged in support thereof) having
maturities of not more than twelve months from the date of acquisition, (b) U.S. dollar denominated
time deposits and certificates of deposit of (i) any Lender, or (ii) any domestic commercial bank
of recognized standing (y) having capital and surplus in excess of $500,000,000 and (z) whose
short-term commercial paper rating from S&P is at least A-2 (and not lower than A-3) or the
equivalent thereof or from Moody’s is at least P-2 (and not lower than P-3) or the equivalent
thereof (any such bank being an “Approved Bank”), in each case with maturities of not more
than 270 days from the date of acquisition, (c) commercial paper and variable or fixed rate notes
issued by any Approved Bank (or by the parent company thereof) or any variable rate notes issued
by, or guaranteed by, any domestic corporation rated at
least A-2 (and not lower than A-3) or the equivalent thereof by S&P or at least P-2 (and not
lower than P-3) or the equivalent by Moody’s and maturing within six months of the date of
acquisition, (d) repurchase agreements entered into by a Person with a bank or trust company
(including any of the Lenders) or recognized securities dealer having capital and surplus in excess
of $500,000,000 for direct obligations issued by or fully guaranteed by the United States of
America in which such Person shall have a perfected first priority security interest (subject to



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no
other Liens) and having, on the date of purchase thereof, a fair market value of at least 100% of
the amount of the repurchase obligations, (e) obligations of any State of the United States or any
political subdivision thereof, the interest with respect to which is exempt from federal income
taxation under Section 103 of the Code, having a long term rating of at least AA- or Aa-3 by S&P or
Moody’s, respectively, and maturing within three years from the date of acquisition thereof, (f)
Investments in municipal auction preferred stock (i) rated A- (or the equivalent thereof) or better
by S&P or A3 (or the equivalent thereof) or better by Moody’s and (ii) with dividends that reset at
least once every 365 days and (g) Investments, classified in accordance with GAAP as current
assets, in money market investment programs registered under the Investment Borrower Act of 1940,
as amended, which are administered by reputable financial institutions having capital of at least
$100,000,000 and the portfolios of which are limited to Investments of the character described in
the foregoing subdivisions (a) through (f).



     “Consolidated Adjusted EBITDA” means for any period the Consolidated Group the sum of
Consolidated EBITDA for such period minus a reserve equal to $62.50 per apartment unit per quarter
($250 per apartment unit per year). Except as expressly provided otherwise, the applicable period
shall be for the single fiscal quarter ending as of the date of determination.



     “Consolidated EBITDA” means for any period for the Consolidated Group, the sum of
Consolidated Net Income plus Consolidated Interest Expense plus all provisions for any Federal,
state, or other income taxes plus depreciation, amortization and other non cash charges, in each
case on a consolidated basis determined in accordance with GAAP applied on a consistent basis, but
excluding in any event gains and losses on Investments and extraordinary gains and losses, and
taxes on such excluded gains and tax deductions or credit on account of such excluded losses.
Except as expressly provided otherwise, the applicable period shall be for the single fiscal
quarter ending as of the date of determination.



     “Consolidated Adjusted Tangible Net Worth” means at any rate:




     (i) the sum of (A) the consolidated shareholders equity of the Consolidated Group (net
of Minority Interests) plus (B) accumulated depreciation of real estate owned to the extent
reflected in the then book value of the Consolidated Assets, minus without duplication




     (ii) the Intangible Assets of the Consolidated Group.



     “Consolidated Funded Debt” means total Debt of the Consolidated Group on a
consolidated basis determined in accordance with GAAP applied on a consistent basis.



     “Consolidated Group” means the Borrower and its consolidated Subsidiaries, as
determined in accordance with GAAP.



     “Consolidated Interest Expense” means for any period for the Consolidated Group, all
interest expense, including the amortization of debt discount and premium, the interest component
under capital leases and the implied interest component under Securitization Transactions in each
case on a consolidated basis determined in accordance with GAAP applied on a consistent basis.



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     “Consolidated Net Income” means for any period the net income of the Consolidated
Group on a consolidated basis determined in accordance with GAAP applied on a consistent basis.



     “Consolidated Net Operating Income from Realty” means for any period for any Realty of
the Consolidated Group, an amount equal to the aggregate rental and other income from the operation
of such Realty during such period; minus all expenses and other proper charges incurred in
connection with the operation of such Realty (including, without limitation, real estate taxes and
bad debt expenses) during such period; but in any case, before payment of provision for debt
service charges for such period, income taxes for such period, and depreciation, amortization and
other non-cash expenses for such period, all on a consolidated basis determined in accordance with
GAAP on a consistent basis.



     “Consolidated Net Operating Income from Unencumbered Realty” (i) the aggregate rental
and other income from the operation of such Realty during such period; minus all expenses and other
proper charges incurred in connection with the operation of such Realty (including, without
limitation, real estate taxes and bad debt expenses) during such period; but in any case, before
payment of provision for debt service charges for such period, income taxes for such period, and
depreciation, amortization and other non-cash expenses for such period, all on a consolidated basis
determined in accordance with GAAP on a consistent basis minus (ii) a reserve equal to $62.50 per
apartment unit per quarter ($250 per apartment unit per year) for such period.



     “Consolidated Total Fixed Charges” means as of the last day of each fiscal quarter for
the Consolidated Group, the sum of (i) the cash portion of Consolidated Interest Expense paid in
the fiscal quarter ending on such day plus (ii) scheduled maturities of Consolidated Funded Debt
(excluding the amount by which a final installment exceeds the next preceding principal installment
thereon and further excluding amortization on Insurance Company Debt which shall not exceed $7.5
million annually) in the fiscal quarter ending on such day plus (iii) all cash dividends and
distributions on preferred stock or other preferred beneficial interests of members of the
Consolidated Group paid in the fiscal quarter ending on such day, all on a consolidated basis
determined in accordance with GAAP on a consistent basis.



     “Consolidated Unsecured Debt” means, for the Consolidated Group on a consolidated
basis, all unsecured Consolidated Funded Debt.



     “Consolidated Unencumbered Realty” means for the Consolidated Group on a consolidated
basis, all Realty which is not encumbered by a Lien securing Debt. For purposes of the covenant,
Consolidated Unencumbered Realty as of any date, for the Consolidated Group,
shall be valued at the sum (without duplication) of (a) with respect to any consolidated
Unencumbered Realty purchased or developed prior to January 1 of the year preceding such date, (i)
Consolidated Net Operating Income from Unencumbered Realty for the fiscal quarter most recently
ended prior to such date multiplied by four, divided by (ii) 9.25%; plus (b) with respect to any



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Consolidated Unencumbered Realty purchased or developed on or after January 1 of the year preceding
such date, the actual costs of such Realty; plus (c) with respect to any Consolidated Unencumbered
Realty that also constitutes consolidated Unimproved Realty, the sum of (i) fifty percent (50%) of
the GAAP value of the land associated with such Realty plus (ii) an amount equal to fifty percent
(50%) of the actual expenditures for improvements on such Realty; plus (d) fifty percent (50%) of
the Consolidated Group’s pro rata share of the GAAP value of any Realty contributed to or otherwise
invested in joint ventures which is not encumbered by a Lien securing Debt.



     “Debt” of any Person means at any date, without duplication, (i) all obligations of
such Person for borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments, (iii) all obligations of such Person to pay deferred purchase
price of property or services (other than trade accounts payable arising in the ordinary course of
business), (iv) all obligations of such Person as lessee under capital leases, (v) all obligations
of such Person to purchase securities or other property which arise out of or in connection with
the sale of the same or substantially similar securities or property, (vi) all obligations of such
Person to reimburse any bank or other person in respect of amounts payable under a letter of credit
or similar instrument (being the amount available to be drawn thereunder, whether or not then
drawn), (vii) all obligations of others secured by a Lien on any asset of such Person, whether or
not such obligation is assumed by such Person, (viii) all obligations of others Guaranteed by such
Person, (ix) all obligations which in accordance with GAAP would be shown as liabilities on a
balance sheet of such Person, (x) the Attributed Principal Amount under any Securitization
Transaction and (xi) all obligations of such Person owing under any synthetic lease, tax retention
operating lease, off balance sheet loan or similar off balance sheet financing product to which
such Person is a party, where such transaction is considered borrowed money indebtedness for tax
purposes, but classified as an operating lease in accordance with GAAP. Debt of any Person shall
include Debt of any partnership or joint venture in which such Person is a general partner or joint
venturer to the extent of such Person’s pro rata portion of the ownership of such partnership or
joint venture (except if such Debt is recourse to such Person, in which case the greater of such
Person’s pro rata portion of such Debt or the amount of the recourse portion of the Debt, shall be
included as Debt of such Person).



     “Insurance Company Debt” means Debt owed by the Borrower with respect to the 7.98%
Notes due March 2000-2003 as more fully described in note 4 of the consolidated financial
statements contained in the Borrower’s report on form 10 — K filed with the Securities and Exchange
commission for fiscal year 1999.



     “Intangible Assets” of any Person means at any date the amount of (i) all write ups
(other than write-ups resulting from write-ups of assets of a going concern business made within
twelve months after the acquisition of such business) in the book value of any asset owned by such
Person and (ii) all unamortized debt discount and expense, unamortized deferred charges,
capitalized start up costs, goodwill, patents, licenses, trademarks, trade names, copyrights,
organization or developmental expenses, covenants not to compete and other intangible items.



     “Minority Interest” means any shares of stock (or other equity interests) of any class
of a Subsidiary (other than directors’ qualifying shares as required by law) that are not owned by
the Borrower and/or one or more Wholly Owned Subsidiaries. Minority Interests constituting
preferred stock shall be valued at the voluntary or involuntary liquidation value of such



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preferred
stock, whichever is greater, and by valuing common stock at the book value of the capitalized
surplus applicable thereto adjusted by the foregoing method of valuing Minority Interests in
preferred stock.



     “Realty” means all real property and interests therein, together with all improvements
thereon.



     “Securitization Transaction” means any financing transaction or series of financing
transactions that have been or may be entered into by a member of the Consolidated Group pursuant
to which such member of the Consolidated Group may sell, convey or otherwise transfer to (i) a
Subsidiary or affiliate (a “Securitization Subsidiary”) or (ii) any other Person, or may grant a
security interest in, any Receivables or interest therein secured by merchandise or services
financed thereby (whether such Receivables are then existing or arising in the future) of such
member of the Consolidated Group, and any assets related thereto, including without limitation, all
security interests in merchandise or services financed thereby, the proceeds of such Receivables,
and other assets which are customarily sold or in respect of which security interests are
customarily granted in connection with securitization transactions involving such assets.
(Receivables means any right of payment from or on behalf of any obligor, whether constituting an
account, chattel paper, instrument, general intangible or otherwise, arising from the sale or
financing by a member of the Consolidated Group or merchandise or services, and monies due
thereunder, security in the merchandise and services financed thereby, records related thereto, and
the right to payment of any interest or finance charges and other obligations with respect thereto,
proceeds from claims on insurance policies related thereto, any other proceeds related thereto, and
any other related rights.)



     “Tangible Fair Market Value of Assets” means, as of any date for the Consolidated
Group, the sum (without duplication) of (a) with respect to any Realty owned by a member of the
Consolidated Group and purchased or developed prior to January 1 of the year preceding such date,
(i) the sum of (A) Consolidated Net Operating Income for Realty for the fiscal quarter most
recently ended prior to such date multiplied by four, minus (B) a reserve of $250 per apartment
unit, divided by (ii) 9.25%, plus (b) with respect to any Realty owned by a member of the
Consolidated Group and purchased or developed on or after January 1 of the year preceding such
date, the actual cost of such Realty, plus (c) with respect to any Consolidated Unimproved Realty,
the sum of (i) one hundred percent (100%) of the GAAP value of the land associated with such Realty
plus (ii) an amount equal to 100% (100%) of the actual expenditures for improvements on such
Realty, plus (d) cash and Cash Equivalents, in each case on a consolidated basis determined in
accordance with GAAP applied on a consistent basis, plus (e) one hundred (100%) of the Consolidated
Group’s pro rata share of the GAAP value of any asset contributed to or otherwise invested in joint
ventures. 



     “Wholly Owned Subsidiary” means as to any person, any Subsidiary all of the voting
stock or other similar voting interest are owned directly or indirectly by such Person. Unless
otherwise provided, references to “Wholly Owned Subsidiary” shall mean Wholly Owned Subsidiaries of
the Borrower.



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SECTION 15.02 Compliance with Debt Service Coverage Ratios. The Borrower shall at all
times maintain the Aggregate Debt Service Coverage Ratio for the Trailing 12 Month Period so that
it is not less than 1.35.



SECTION 15.03 Compliance with Loan to Value Ratios. The Borrower shall at all times
maintain the Aggregate Loan to Value Ratio for the Trailing 12 Month Period so that it is not
greater than 65%.



SECTION 15.04 Compliance with Concentration Test.




          (a) The Borrower shall at all times maintain the Collateral so that the aggregate Valuations
of any group of Mortgaged Properties located within a one mile radius shall not exceed 20% of the
aggregate Valuations of all Mortgaged Properties.



          (b) The Borrower shall at all times maintain the Collateral so that the Valuation of any one
Mortgaged Property shall not exceed 20% of the aggregate Valuations of all Mortgaged Properties.



          (c) The Borrower shall at all times maintain the Collateral so that the Valuation of all
Mortgaged Properties subject to review and underwriting under Section 305.09 of the DUS Guide
(Projection Dependent on Military Bases) shall not exceed 20% of the aggregate Valuations of all
Mortgaged Properties. Notwithstanding the preceding sentence, Lender may reject, in its sole
discretion, any proposed Mortgaged Property subject to review and underwriting under Section 305.09
of the DUS Guide.


SECTION 15.05 Consolidated Adjusted Tangible Net Worth. Consolidated Adjusted Tangible
Net Worth of UDRT will not at any time be less than the sum of (i)
$1,500,000,000 plus (ii) 90% of
the net proceeds (after customary underwriting discounts and commissions and reasonable offering
expenses) from Equity Transactions occurring after December 31, 1999.



SECTION 15.06 Consolidated Funded Debt Ratio. As of the last day of each fiscal quarter
Consolidated Funded Debt of the Borrower shall not exceed 60% of Tangible Fair Market Value of
Assets.



SECTION 15.07 Consolidated Total Fixed Charge Coverage Ratio. As of the end of each
fiscal quarter, the ratio of Consolidated Adjusted EBITDA of the Borrower to Consolidated Total
Fixed Charges for the fiscal quarter then ended shall be not less than 1.4:1.0.



SECTION 15.08 Consolidated Unencumbered Realty to Consolidated Unsecured Debt Ratio. As
of the last day of each fiscal quarter, the ratio of Consolidated Unsecured Debt of the Borrower to
Consolidated Unencumbered Realty of the Borrower shall not exceed 60%.



SECTION 15.09 Consolidated Unencumbered Interest Coverage Ratio. As of the end of each
fiscal quarter, the ratio of Consolidated Net Operating Income of the Borrower from Unencumbered
Realty of the Borrower to Consolidated Interest Expense relating to Consolidated Unsecured Debt of
the Borrower for the fiscal quarter then ended shall not be less than 1.75 :1.0.




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ARTICLE XVI

FEES



SECTION 16.01 Standby Fee. The Borrower shall pay the Standby Fee to the Lender for the
period from the date of this Agreement to the end of the Term of this Agreement. The Standby Fee
shall be payable monthly, in arrears, on the first Business Day following the end of the month,
except that the Standby Fee for the last month during the Term of this Agreement shall be paid on
the last day of the Term of this Agreement.



SECTION 16.02 Termination and Origination Fees.




          (a) Commitment Termination Fee. The Borrower shall pay to the Lender a commitment
termination fee (the “Commitment Termination Fee”) equal to $1,000,000 (which is equal to
the product obtained by multiplying (i) the amount of the Borrower’s existing credit facility under
the Original Agreement ($200,000,000) and (ii) 50 basis points (.50%)). The Borrower shall pay the
Commitment Termination Fee on the Initial Closing Date.



          (b) Expansion Origination Fee. Upon the closing of a Credit Facility Expansion
Request under Article VIII, the Borrower shall pay to the Lender an origination fee (“Expansion
Origination Fee”) equal to the product obtained by multiplying (i) the increase in the
Commitment made on the Closing Date for the Credit Facility Expansion Request, by (ii) 67.5 basis
points (.675%). The Borrower shall pay the Expansion Origination Fee on or before the Closing Date
for the Credit Facility Expansion Request.


SECTION 16.03 Due Diligence Fees.




          (a) Initial Due Diligence Fees. The Borrower shall pay to the Lender due diligence
fees (“Initial Due Diligence Fees”) with respect to the Initial Mortgaged Properties in an
amount equal to Lender’s reasonable actual out-of-pocket due diligence costs and expenses plus
$5,000. The Borrower has previously paid to the Lender a portion of the Initial Due Diligence Fees
and shall pay the remainder of the Initial Due Diligence Fees to the Lender on the Initial Closing
Date.



          (b) Additional Due Diligence Fees for Additional Collateral. The Borrower shall pay
to the Lender additional due diligence fees (the “Additional Collateral Due Diligence
Fees”) with respect to each Additional Mortgaged Property in an amount equal to Lender’s actual
out-of-pocket due diligence costs and expenses plus $1,000. The Borrower shall make a $10,000
deposit for each proposed Additional Mortgaged Property to cover a portion of the Additional
Collateral Due Diligence Fees for such Additional Mortgaged Property to the Lender on the date on
which it submits the Collateral Addition Request for the addition of such Additional Mortgaged
Property to the Collateral Pool.


SECTION 16.04 Legal Fees and Expenses.




          (a) Initial Legal Fees. The Borrower shall pay, or reimburse the Lender for, all
reasonable out-of-pocket legal fees and expenses incurred by the Lender and by Fannie Mae



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in
connection with the preparation, review and negotiation of this Agreement and any other Loan
Documents executed on the date of this Agreement. On the date of this Agreement, the Borrower
shall pay all such legal fees and expenses not previously paid or for which funds have not been
previously provided.



          (b) Fees and Expenses Associated with Requests. The Borrower shall pay, or reimburse
the Lender for, all costs and expenses incurred by the Lender, including the reasonable
out-of-pocket legal fees and expenses incurred by the Lender in connection with the preparation,
review and negotiation of all documents, instruments and certificates to be executed and delivered
in connection with each Request, the performance by the Lender of any of its obligations with
respect to the Request, the satisfaction of all conditions precedent to the Borrower’s rights or
the Lender’s obligations with respect to the Request, and all transactions related to any of the
foregoing, including the cost of title insurance premiums and applicable recordation and transfer
taxes and charges and all other costs and expenses in connection with a Request. The obligations
of the Borrower under this subsection shall be absolute and unconditional, regardless of whether
the transaction requested in the Request actually occurs. The Borrower shall pay such costs and
expenses to the Lender on the Closing Date for the Request, or, as the case may be, after demand by
the Lender when the Lender determines that such Request will not close.


SECTION 16.05 MBS-Related Costs. The Borrower shall pay to the Lender, within 30 days
after demand, all fees and expenses incurred by the Lender or Fannie Mae in connection with the
issuance of any MBS backed by an Advance, including the fees charged by Depository Trust Company
and State Street Bank or any successor fiscal agent or custodian.



SECTION 16.06 Failure to Close any Request. If the Borrower makes a Request and fails to
close on the Request for any reason other than the default by the Lender or, if applicable, the
failure of the purchaser of an MBS to purchase such MBS, then the Borrower shall pay to the Lender
and Fannie Mae all damages incurred by the Lender and Fannie Mae in connection with the failure to
close.



SECTION 16.07 Other Fees. The Borrower shall pay the following additional fees and
payments, if and when required pursuant to the terms of this Agreement:




          (a) The Collateral Addition Fee, pursuant to Section 6.03(b), in connection with the addition
of an Additional Mortgaged Property to the Collateral Pool pursuant to Article VI;



          (b) The Release Price, pursuant to Section 7.02(c), in connection with the release of a
Mortgaged Property from the Collateral Pool pursuant to Article VII;



          (c) The Facility Termination Fee, pursuant to Section 9.03(b) in connection with a complete or
partial termination of the Revolving Facility pursuant to Article IX;



          (d) The Facility Termination Fee, pursuant to Section 10.03(b), in connection with the
termination of the Credit Facility pursuant to Article X; and



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          (e) The Substitution Fee, pursuant to Section 7.04 in connection with the substitution of a
Mortgaged Property from the Collateral Pool pursuant to Article VII.



ARTICLE XVII

EVENTS OF DEFAULT



SECTION 17.01 Events of Default. Each of the following events shall constitute an “Event
of Default” under this Agreement, whatever the reason for such event and whether it shall be
voluntary or involuntary, or within or without the control of the Borrower, or be effected by
operation of law or pursuant to any judgment or order of any court or any order, rule or regulation
of any Governmental Authority:




          (a) the occurrence of a default under any Loan Document beyond the cure period, if any, set
forth therein; or



          (b) the failure by the Borrower to pay when due any amount payable by the Borrower under any
Note, any Mortgage, this Agreement or any other Loan Document, including any fees, costs or
expenses; or



          (c) the failure by the Borrower to perform or observe any covenant set forth in Sections 13.01
through 13.25 or Sections 14.01 through 14.14 within thirty (30) days after receipt of notice from
Lender identifying such failure, provided that such period shall be extended for up to forty-five
(45) additional days if the Borrower, in the discretion of the Lender, is diligently pursuing a
cure of such default; or



          (d) any warranty, representation or other written statement made by or on behalf of the
Borrower contained in this Agreement, any other Loan Document or in any instrument furnished in
compliance with or in reference to any of the foregoing, is false or misleading in any material
respect on any date when made or deemed made; or



          (e) any other Indebtedness in an aggregate amount in excess of $5,000,000 of the Borrower or
assumed by the Borrower (i) is not paid when due nor within any applicable grace period in any
agreement or instrument relating to such Indebtedness or (ii) becomes 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; or



          (f) (i) The Borrower shall (A) commence a voluntary case under the Federal bankruptcy laws (as
now or hereafter in effect), (B) file a petition seeking to take advantage of any other laws,
domestic or foreign, relating to bankruptcy, insolvency, reorganization, debt adjustment, winding
up or composition or adjustment of debts, (C) consent to or fail to contest in a timely and
appropriate manner any petition filed against it in an involuntary case under such bankruptcy laws
or other laws, (D) apply for or consent to, or fail to contest in a timely and appropriate manner,
the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of
itself or of a substantial part of its property, domestic or foreign, (E) admit in writing its
inability to pay, or generally not be paying, its debts as they become due,



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(F) make a general
assignment for the benefit of creditors, (G) assert that the Borrower has no liability or
obligations under this Agreement or any other Loan Document to which it is a party; or (H) take any
action for the purpose of effecting any of the foregoing; or (ii) a case or other proceeding shall
be commenced against the Borrower in any court of competent jurisdiction seeking (A) relief under
the Federal bankruptcy laws (as now or hereafter in effect) or under any other laws, domestic or
foreign, relating to bankruptcy, insolvency, reorganization, winding upon or composition or
adjustment of debts, or (B) the appointment of a trustee, receiver, custodian, liquidator or the
like of the Borrower, or of all or a substantial part of the property, domestic or foreign, of the
Borrower and any such case or proceeding shall continue undismissed or unstayed for a period of 60
consecutive calendar days, or any order granting the relief requested in any such case or
proceeding against the Borrower (including an order for relief under such Federal bankruptcy laws)
shall be entered; or



          (g) if any provision of this Agreement or any other Loan Document or the lien and security
interest purported to be created hereunder or under any Loan Document shall at any time for any
reason cease to be valid and binding in accordance with its terms on the Borrower, or shall be
declared to be null and void, or the validity or enforceability hereof or thereof or the validity
or priority of the lien and security interest created hereunder or under any other Loan Document
shall be contested by the Borrower seeking to establish the invalidity or unenforceability hereof
or thereof, or the Borrower shall deny that it has any further liability or obligation hereunder or
thereunder; or



          (h) (i) the execution by the Borrower without the prior written consent of the Lender of a
chattel mortgage or other security agreement on any materials, fixtures or articles used in the
construction or operation of the improvements located on any Mortgaged Property or on articles of
personal property located therein, or (ii) if, without the prior written consent of the Lender, any
such materials, fixtures or articles are purchased pursuant to any conditional sales contract or
other security agreement or otherwise so that the Ownership thereof will not vest unconditionally
in the Borrower free from encumbrances, or (iii) if the Borrower does not furnish to the Lender
upon request the contracts, bills of sale, statements, receipted vouchers and
agreements, or any of them, under which the Borrower claims title to such materials, fixtures,
or articles; or



          (i) the failure by the Borrower to comply with any requirement of any Governmental Authority
within 30 days after written notice of such requirement shall have been given to the Borrower by
such Governmental Authority; provided that, if action is commenced and diligently pursued by the
Borrower within such 30 days, then the Borrower shall have an additional 45 days to comply with
such requirement; or



          (j) a dissolution or liquidation for any reason (whether voluntary or involuntary) of the
Borrower; or



          (k) any judgment against the Borrower, any attachment or other levy against any portion of the
Borrower’s assets with respect to a claim or claims in an amount in excess of $2,500,000 in the
aggregate remains unpaid, unstayed on appeal undischarged, unbonded, not fully insured or
undismissed for a period of 60 days; or



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          (l) Intentionally Deleted; or



          (m) The failure of the Borrower to perform or observe any of the Financial Covenants, which
failure shall continue for a period of 30 days after the date on which the Borrower receives a
notice from the Lender specifying the failure; or



          (n) the failure by the Borrower to perform or observe any term, covenant, condition or
agreement hereunder, other than as set forth in subsections (a) through (m) above, or in any other
Loan Document, within 30 days after receipt of notice from the Lender identifying such failure.



ARTICLE XVIII

REMEDIES



SECTION 18.01 Remedies; Waivers. Upon the occurrence of an Event of Default, the Lender
may do any one or more of the following (without presentment, protest or notice of protest, all of
which are expressly waived by the Borrower):




          (a) by written notice to the Borrower, to be effective upon dispatch, terminate the Commitment
and declare the principal of, and interest on, the Advances and all other sums owing by the
Borrower to the Lender under any of the Loan Documents forthwith due and payable, whereupon the
Commitment will terminate and the principal of, and interest on, the Advances and all other sums
owing by the Borrower to the Lender under any of the Loan Documents will become forthwith due and
payable.



          (b) The Lender shall have the right to pursue any other remedies available to it under any of
the Loan Documents.



          (c) The Lender shall have the right to pursue all remedies available to it at law or in
equity, including obtaining specific performance and injunctive relief.


SECTION 18.02 Waivers; Rescission of Declaration. The Lender shall have the right, to be
exercised in its complete discretion, to waive any breach hereunder (including the occurrence of an
Event of Default), by a writing setting forth the terms, conditions, and extent of such waiver
signed by the Lender and delivered to the Borrower. Unless such writing expressly provides to the
contrary, any waiver so granted shall extend only to the specific event or occurrence which gave
rise to the waiver and not to any other similar event or occurrence which occurs subsequent to the
date of such waiver.



SECTION 18.03 The Lender’s Right to Protect Collateral and Perform Covenants and Other
Obligations. If the Borrower fails to perform the covenants and agreements contained in this
Agreement or any of the other Loan Documents, then the Lender at the Lender’s option may make such
appearances, disburse such sums and take such action as the Lender deems necessary, in its sole
discretion, to protect the Lender’s interest, including (i) disbursement of attorneys’ fees, (ii)
entry upon the Mortgaged Property to make repairs and Replacements, (iii) procurement of
satisfactory insurance as provided in paragraph 5 of the Security Instrument encumbering the
Mortgaged Property, and (iv) if the Security Instrument is on a leasehold,


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exercise of any option
to renew or extend the ground lease on behalf of the Borrower and the curing of any default of the
Borrower in the terms and conditions of the ground lease. Any amounts disbursed by the Lender
pursuant to this Section, with interest thereon, shall become additional indebtedness of the
Borrower secured by the Loan Documents. Unless the Borrower and the Lender agree to other terms of
payment, such amounts shall be immediately due and payable and shall bear interest from the date of
disbursement at the weighted average, as determined by Lender, of the interest rates in effect from
time to time for each Advance unless collection from the Borrower of interest at such rate would be
contrary to applicable law, in which event such amounts shall bear interest at the highest rate
which may be collected from the Borrower under applicable law. Nothing contained in this Section
shall require the Lender to incur any expense or take any action hereunder.



SECTION 18.04 No Remedy Exclusive. Unless otherwise expressly provided, no remedy herein
conferred upon or reserved is intended to be exclusive of any other available remedy, but each
remedy shall be cumulative and shall be in addition to other remedies given under the Loan
Documents or existing at law or in equity.



SECTION 18.05 No Waiver. No delay or omission to exercise any right or power accruing
under any Loan Document upon the happening of any Event of Default or Potential Event of Default
shall impair any such right or power or shall be construed to be a waiver thereof, but any such
right and power may be exercised from time to time and as often as may be deemed expedient.



SECTION 18.06 No Notice. In order to entitle the Lender to exercise any remedy reserved
to the Lender in this Article, it shall not be necessary to
give any notice, other than such notice as may be required under the applicable provisions of this
Agreement or any of the other Loan Documents.



SECTION 18.07 Application of Payments. Except as otherwise expressly provided in the Loan
Documents, and unless applicable law provides otherwise, (i) all payments received by the Lender
from the Borrower under the Loan Documents shall be applied by the Lender against any amounts then
due and payable under the Loan Documents by the Borrower, in any order of priority that the Lender
may determine and (ii) the Borrower shall have no right to determine the order of priority or the
allocation of any payment it makes to the Lender.




ARTICLE XIX

RIGHTS OF FANNIE MAE



SECTION 19.01 Special Pool Purchase Contract. The Borrower acknowledges that Fannie Mae
is entering into an agreement with the Lender (“Special Pool Purchase Contract”), pursuant
to which, inter alia, (i) the Lender shall agree to assign all of its rights under
this Agreement to Fannie Mae, (ii) Fannie Mae shall accept the assignment of the rights, (iii)
subject to the terms, limitations and conditions set forth in the Special Pool Purchase Contract,
Fannie Mae shall agree to purchase a 100% participation interest in each Advance issued under this
Agreement by issuing to the Lender a Fannie Mae MBS, in the amount and for a term equal to the
Advance purchased and backed by an interest in the Base Facility Note or the Revolving Facility
Note, as the case may be, and the Collateral Pool securing the Notes, (iv) the Lender shall agree
to assign


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to Fannie Mae all of the Lender’s interest in the Notes and Collateral Pool securing the
Notes, and (v) the Lender shall agree to service the loans evidenced by the Notes.



SECTION 19.02 Assignment of Rights. The Borrower acknowledges and consents to the
assignment to Fannie Mae of all of the rights of the Lender under this Agreement and all other Loan
Documents, including the right and power to make all decisions on the part of the Lender to be made
under this Agreement and the other Loan Documents, but Fannie Mae, by virtue of this assignment,
shall not be obligated to perform the obligations of the Lender under this Agreement or the other
Loan Documents.



SECTION 19.03 Release of Collateral. The Borrower hereby acknowledges that, after the
assignment of Loan Documents contemplated in Section 19.02, the Lender shall not have the right or
power to effect a release of any Collateral pursuant to Articles VII or X. The Borrower
acknowledges that the Security Instruments provide for the release of the Collateral under Articles
VII and X. Accordingly, the Borrower shall not look to the Lender for performance of any
obligations set forth in Articles VII and X, but shall look solely to the party secured by the
Collateral to be released for such performance. The Lender represents and warrants to the Borrower
that the party secured by the Collateral shall be subject to the release and substitution
provisions contained in Articles VII and X by virtue of the release provisions in each Security
Instrument.



SECTION 19.04 Replacement of Lender. At the request of Fannie Mae, the Borrower and the
Lender shall agree to the assumption by
another lender designated by Fannie Mae, of all of the obligations of the Lender under this
Agreement and the other Loan Documents, and/or any related servicing obligations, and, at Fannie
Mae’s option, the concurrent release of the Lender from its obligations under this Agreement and
the other Loan Documents, and/or any related servicing obligations, and shall execute all releases,
modifications and other documents which Fannie Mae determines are necessary or desirable to effect
such assumption.



SECTION 19.05 Fannie Mae and Lender Fees and Expenses. The Borrower agrees that any
provision providing for the payment of fees, costs or expenses incurred or charged by the Lender
pursuant to this Agreement shall be deemed to provide for the Borrower’s payment of all reasonable
fees, costs and expenses incurred or charged by the Lender or Fannie Mae in connection with the
matter for which fees, costs or expenses are payable.



SECTION 19.06 Third-Party Beneficiary. The Borrower hereby acknowledges and agrees that
Fannie Mae is a third party beneficiary of all of the representations, warranties and covenants
made by the Borrower to, and all rights under this Agreement conferred upon, the Lender, and, by
virtue of its status as third-party beneficiary and/or assignee of the Lender’s rights under this
Agreement, Fannie Mae shall have the right to enforce all of the provisions of this Agreement
against the Borrower.





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ARTICLE XX

INSURANCE, REAL ESTATE TAXES

AND REPLACEMENT RESERVES



SECTION 20.01 Insurance and Real Estate Taxes. The Borrower shall (unless waived by
Lender) establish funds for taxes, insurance premiums and certain other charges for each Mortgaged
Property in accordance with Section 7(a) of the Security Instrument for each Mortgaged Property.
Notwithstanding the foregoing, as long as no Event of Default occurs and Borrower timely pays all
taxes required for the Mortgaged Property when due, the Borrower may provide a letter of credit for
taxes in lieu of deposits required by the preceding sentence. Any letter of credit provided by
the Borrower shall be (i) issued by a financial institution reasonably acceptable to the Lender,
(ii) be an amount reasonably deferred, from time to time by the Lender and, (iii) in a form
reasonably satisfactory to Lender. Deposits required under this section for insurance premiums
shall be waived as long as the Borrower timely pays all insurance premiums required for the
Mortgaged Properties and no Event of Default occurs.



SECTION 20.02 Replacement Reserves. The Borrower shall execute a Replacement Reserve
Agreement for the Mortgaged Property which it owns and shall (unless waived by the Lender) make all
deposits for replacement reserves in accordance with the terms of the Replacement Reserve
Agreement.




ARTICLE XXI

INTENTIONALLY OMITTED




ARTICLE XXII

PERSONAL LIABILITY OF THE BORROWER



SECTION 22.01 Personal Liability of the Borrower.




          (a) Full Recourse. The Borrower is and shall remain personally liable to the Lender
for the payment and performance of all Obligations throughout the term of this Agreement.



          (b) Transfer Not Release. No Transfer by any Person of its Ownership Interests in the
Borrower shall release the Borrower from liability under this Article, this Agreement or any other
Loan Document, unless the Lender shall have approved the Transfer and shall have expressly released
the Borrower in connection with the Transfer.



          (c) Miscellaneous. The Lender may exercise its rights against the Borrower personally
without regard to whether the Lender has exercised any rights against the Mortgaged Property or any
other security, or pursued any rights against any guarantor, or pursued any other rights available
to the Lender under the Loan Documents or applicable law. For purposes of this Article, the term
“Mortgaged Property” shall not include any funds that (1) have been applied by the Borrower as
required or permitted by the Loan Documents prior to the occurrence of an Event of Default, or (2)
are owned by the Borrower and which the Borrower was unable to apply as required or permitted by
the Loan Documents because of a bankruptcy, receivership, or similar judicial proceeding.



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ARTICLE XXIII

MISCELLANEOUS PROVISIONS



SECTION 23.01 Counterparts. To facilitate execution, this Agreement may be executed in
any number of counterparts. It shall not be necessary that the signatures of, or on behalf of,
each party, or that the signatures of all persons required to bind any party, appear on each
counterpart, but it shall be sufficient that the signature of, or on behalf of, each party, appear
on one or more counterparts. All counterparts shall collectively constitute a single agreement.
It shall not be necessary in making proof of this Agreement to produce or account for more than the
number of counterparts containing the respective signatures of, or on behalf of, all of the parties
hereto.



SECTION 23.02 Amendments, Changes and Modifications. This Agreement may be amended,
changed, modified, altered or terminated only by written instrument or written instruments signed
by all of the parties hereto.



SECTION 23.03 Payment of Costs, Fees and Expenses. The Borrower shall pay, on demand, all
reasonable fees, costs, charges or expenses (including the fees and expenses of attorneys,
accountants and other experts) incurred by the Lender in connection with:




          (a) Any amendment, consent or waiver to this Agreement or any of the Loan Documents (whether
or not any such amendments, consents or waivers are entered into).



          (b) Defending or participating in any litigation arising from actions by third parties and
brought against or involving the Lender with respect to (i) any Mortgaged Property, (ii) any event,
act, condition or circumstance in connection with any Mortgaged Property or (iii) the relationship
between the Lender and the Borrower in connection with this Agreement or any of the transactions
contemplated by this Agreement.



          (c) The administration (to the extent of actual out-of-pocket fees, costs, charges or
expenses) or enforcement of, or preservation of rights or remedies under, this Agreement or any
other Loan Documents or in connection with the foreclosure upon, sale of or other disposition of
any Collateral granted pursuant to the Loan Documents.



          (d) The Borrower’s Registration Statement, or similar disclosure documents, including fees
payable to any rating agencies, including the fees and expenses of the Lender’s attorneys and
accountants.


The Borrower shall also pay, on demand, any transfer taxes, documentary taxes, assessments or
charges made by any governmental authority by reason of the execution, delivery, filing,
recordation, performance or enforcement of any of the Loan Documents or the Advances. However, the
Borrower will not be obligated to pay any franchise, estate, inheritance, income, excess profits or
similar tax on the Lender. Any attorneys’ fees and expenses payable by the Borrower pursuant to
this Section shall be recoverable separately from and in addition to any other amount included in
such judgment, and such obligation is intended to be severable from the other provisions of this
Agreement and to survive and not be merged into any such judgment. Any amounts payable by the
Borrower pursuant to this Section, with interest thereon if not paid when due, shall become
additional indebtedness of the Borrower secured by the Loan


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Documents. Such amounts shall bear
interest from the date such amounts are due until paid in full at the weighted average, as
determined by Lender, of the interest rates in effect from time to time for each Advance unless
collection from the Borrower of interest at such rate would be contrary to applicable law, in which
event such amounts shall bear interest at the highest rate which may be collected from the Borrower
under applicable law. The provisions of this Section are cumulative with, and do not exclude the
application and benefit to the Lender of, any provision of any other Loan Document relating to any
of the matters covered by this Section.



SECTION 23.04 Payment Procedure. All payments to be made to the Lender pursuant to this
Agreement or any of the Loan Documents shall be made in lawful currency of the United States of
America and in immediately available funds by wire transfer to an account designated by the Lender
before 1:00 p.m. (Washington, D.C. time) on the date when due.



SECTION 23.05 Payments on Business Days. In any case in which the date of payment to the
Lender or the expiration of any time period hereunder occurs on a day which is not a Business Day,
then such payment or expiration of such time period need not occur on such date but may be made on
the next succeeding Business Day with the same force and effect as if made on the day of maturity
or expiration of such period, except that interest shall continue to accrue for the period after
such date to the next Business Day.



SECTION 23.06 Choice of Law; Consent to Jurisdiction; Waiver of Jury Trial.
NOTWITHSTANDING ANYTHING IN THE NOTES, THE SECURITY DOCUMENTS OR ANY OF THE OTHER LOAN DOCUMENTS TO
THE CONTRARY, EACH OF THE TERMS AND PROVISIONS, AND RIGHTS AND OBLIGATIONS OF THE BORROWER UNDER
THE NOTES, AND THE BORROWER UNDER THE OTHER LOAN DOCUMENTS, SHALL BE GOVERNED BY, INTERPRETED,
CONSTRUED AND ENFORCED PURSUANT TO AND IN ACCORDANCE WITH THE LAWS OF VIRGINIA (EXCLUDING THE LAW
APPLICABLE TO CONFLICTS OR CHOICE OF LAW) EXCEPT TO THE EXTENT OF PROCEDURAL AND SUBSTANTIVE
MATTERS RELATING ONLY TO (1) THE CREATION, PERFECTION AND FORECLOSURE OF LIENS AND SECURITY
INTERESTS, AND ENFORCEMENT OF THE RIGHTS AND REMEDIES, AGAINST THE MORTGAGED PROPERTIES, WHICH
MATTERS SHALL BE GOVERNED BY THE LAWS OF THE JURISDICTION IN WHICH THE MORTGAGED PROPERTY IS
LOCATED UNLESS SPECIFICALLY SET FORTH OTHERWISE IN THE RELEVANT SECURITY INSTRUMENT, (2) THE
PERFECTION, THE EFFECT OF PERFECTION AND NON-PERFECTION AND FORECLOSURE OF SECURITY INTERESTS ON
PERSONAL PROPERTY (OTHER THAN DEPOSIT ACCOUNTS), WHICH MATTERS SHALL BE GOVERNED BY THE LAWS OF THE
JURISDICTION DETERMINED BY THE CHOICE OF LAW PROVISIONS OF THE VIRGINIA UNIFORM COMMERCIAL CODE AND
(3) THE PERFECTION, THE EFFECT OF PERFECTION AND NON-PERFECTION AND FORECLOSURE OF DEPOSIT
ACCOUNTS, WHICH MATTERS SHALL BE GOVERNED BY THE LAWS OF THE JURISDICTION IN WHICH THE DEPOSIT
ACCOUNT IS LOCATED. THE BORROWER AGREES THAT ANY CONTROVERSY ARISING UNDER OR IN RELATION TO THE
NOTES, THE SECURITY DOCUMENTS OR ANY OTHER LOAN DOCUMENT SHALL BE, EXCEPT AS OTHERWISE PROVIDED
HEREIN, LITIGATED IN VIRGINIA. THE LOCAL AND FEDERAL COURTS AND AUTHORITIES WITH JURISDICTION IN
VIRGINIA SHALL,


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EXCEPT AS OTHERWISE PROVIDED HEREIN, HAVE JURISDICTION OVER ALL CONTROVERSIES WHICH
MAY ARISE UNDER OR IN RELATION TO THE LOAN DOCUMENTS, INCLUDING THOSE CONTROVERSIES RELATING TO THE
EXECUTION, JURISDICTION, BREACH, ENFORCEMENT OR COMPLIANCE WITH THE NOTES, THE SECURITY DOCUMENTS
OR ANY OTHER ISSUE ARISING UNDER, RELATING TO, OR IN CONNECTION WITH ANY OF THE LOAN DOCUMENTS.
THE BORROWER IRREVOCABLY CONSENTS TO SERVICE, JURISDICTION, AND VENUE OF SUCH COURTS FOR ANY
LITIGATION ARISING FROM THE NOTES, THE SECURITY DOCUMENTS OR ANY OF THE OTHER LOAN DOCUMENTS, AND
WAIVES ANY OTHER VENUE TO WHICH IT MIGHT BE ENTITLED BY VIRTUE OF DOMICILE, HABITUAL RESIDENCE OR
OTHERWISE. NOTHING CONTAINED HEREIN, HOWEVER, SHALL PREVENT THE LENDER FROM BRINGING ANY SUIT,
ACTION OR PROCEEDING OR EXERCISING ANY RIGHTS AGAINST THE BORROWER AND AGAINST THE COLLATERAL IN
ANY OTHER JURISDICTION. INITIATING SUCH SUIT, ACTION OR PROCEEDING OR TAKING SUCH ACTION IN ANY
OTHER JURISDICTION SHALL IN NO EVENT CONSTITUTE A WAIVER OF THE AGREEMENT CONTAINED HEREIN THAT THE
LAWS OF VIRGINIA SHALL GOVERN THE RIGHTS AND OBLIGATIONS OF THE BORROWER AND THE LENDER AS
PROVIDED HEREIN OR THE SUBMISSION HEREIN BY THE BORROWER TO PERSONAL JURISDICTION WITHIN VIRGINIA.
THE BORROWER (I) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE
ARISING UNDER ANY OF THE LOAN DOCUMENTS TRIABLE BY A JURY AND (II) WAIVES ANY RIGHT TO TRIAL BY
JURY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST. THIS WAIVER IS INTENDED TO
ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A JURY TRIAL WOULD
OTHERWISE ACCRUE. FURTHER, THE BORROWER HEREBY CERTIFIES THAT NO REPRESENTATIVE OR AGENT OF LENDER
(INCLUDING, BUT NOT LIMITED TO, LENDER’S COUNSEL) HAS REPRESENTED, EXPRESSLY OR OTHERWISE, TO THE
BORROWER THAT LENDER WILL NOT SEEK TO ENFORCE THE PROVISIONS OF THIS SECTION. THE FOREGOING
PROVISIONS WERE KNOWINGLY, WILLINGLY AND VOLUNTARILY AGREED TO BY THE BORROWER UPON CONSULTATION
WITH INDEPENDENT LEGAL COUNSEL SELECTED BY THE BORROWER’S FREE WILL.



SECTION 23.07 Severability. In the event any provision of this Agreement or in any other
Loan Document shall be held invalid, illegal or unenforceable in any jurisdiction, such provision
will be severable from the remainder hereof as to such jurisdiction and the validity, legality and
enforceability of the remaining provisions will not in any way be affected or impaired in any
jurisdiction.



SECTION 23.08 Notices.




          (a) Manner of Giving Notice. Each notice, direction, certificate or other
communication hereunder (in this Section referred to collectively as “notices” and singly as a
“notice”) which any party is required or permitted to give to the other party pursuant to this
Agreement shall be in writing and shall be deemed to have been duly and sufficiently given if:



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          (1) personally delivered with proof of delivery thereof (any notice so delivered shall
be deemed to have been received at the time so delivered);




          (2) sent by Federal Express (or other similar overnight courier) designating morning
delivery (any notice so delivered shall be deemed to have been received on the Business Day
it is delivered by the courier);




          (3) sent by United States registered or certified mail, return receipt requested,
postage prepaid, at a post office regularly maintained by the United States Postal Service
(any notice so sent shall be deemed to have been received on the Business Day it is
delivered); or




          (4) sent by telecopier or facsimile machine which automatically generates a
transmission report that states the date and time of the transmission, the length of the
document transmitted, and the telephone number of the recipient’s telecopier or facsimile
machine (to be confirmed with a copy thereof sent in accordance with paragraphs (1), (2) or
(3) above within two Business Days) (any notice so delivered shall be deemed to have been
received (i) on the date of transmission, if so transmitted
before 5:00 p.m. (local time of the recipient) on a Business Day, or (ii) on the next
Business Day, if so transmitted on or after 5:00 p.m. (local time of the recipient) on a
Business Day or if transmitted on a day other than a Business Day);


addressed to the parties as follows:




          As to the Borrower:


United Dominion Realty Trust, Inc.

1745 Shea Center Drive

Fourth Floor

Highlands Ranch, Colorado 80126

Attention: Ella S. Neyland

Telecopy No.: 720-344-5110




          with a copy to:


Morrison & Forrester

5200 Republic Plaza

370 Seventeenth Street

Denver, Colorado 80202-5638

Attention: Warren Troupe, Esq.

Telecopy No.: 303-592-1510






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          As to the Lender:


Green Park Financial Limited Partnership

7500 Old Georgetown Road

Bethesda, Maryland 20814

Attention: Merrill A. Yavinsky

Telecopy No.: 301-215-5579




          with a copy to:


Thomas A. Stegeman, Esq.

4905 Hampden Lane

Bethesda, Maryland 20815

Telecopy No.: 301-913-0273




          As to Fannie Mae:


Fannie Mae

3939 Wisconsin Avenue, N.W.

Washington, D.C. 20016-2899

Attention: Vice President for

Multifamily Asset Management

Telecopy No.: (202) 752-5016




          with a copy to:


Arter & Hadden LLP

1801 K Street, N.W.

Third Floor, L Street Entrance

Washington, D.C. 200006

Attention: Lawrence H. Gesner, Esq.

Telecopy No.: (202) 857-0172




          (b) Change of Notice Address. Any party may, by notice given pursuant to this
Section, change the person or persons and/or address or addresses, or designate an additional
person or persons or an additional address or addresses, for its notices, but notice of a change of
address shall only be effective upon receipt. Each party agrees that it shall not refuse or reject
delivery of any notice given hereunder, that it shall acknowledge, in writing, receipt of the same
upon request by the other party and that any notice rejected or refused by it shall be deemed for
all purposes of this Agreement to have been received by the rejecting party on the date so refused
or rejected, as conclusively established by the records of the U.S. Postal Service, the courier
service or facsimile.


SECTION 23.09 Further Assurances and Corrective Instruments.




          (a) Further Assurances. To the extent permitted by law, the parties hereto agree that
they shall, from time to time, execute, acknowledge and deliver, or cause to be executed,
acknowledged and delivered, such supplements hereto and such further instruments as



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the Lender or
the Borrower may request and as may be required in the opinion of the Lender or its counsel to
effectuate the intention of or facilitate the performance of this Agreement or any Loan Document.



          (b) Further Documentation. Without limiting the generality of subsection (a), in the
event any further documentation or information is required by the Lender to correct patent mistakes
in the Loan Documents, materials relating to the Title Insurance Policies or the funding of the
Advances, the Borrower shall provide, or cause to be provided to the Lender, at its cost and
expense, such documentation or information. The Borrower shall execute and deliver to the Lender
such documentation, including any amendments, corrections, deletions or additions to the Notes, the
Security Instruments or the other Loan Documents as is required by the Lender.



          (c) Compliance with Investor Requirements. Without limiting the generality of
subsection (a), the Borrower shall do anything reasonably necessary to comply with the requirements
of the Lender in order to enable the Lender to sell the MBS backed by an Advance.


SECTION 23.10 Term of this Agreement. This Agreement shall continue in effect until the
Credit Facility Termination Date.



SECTION 23.11 Assignments; Third-Party Rights. The Borrower shall not assign this
Agreement, or delegate any of its
obligations hereunder, without the prior written consent of the Lender. The Lender may assign its
rights and obligations under this Agreement separately or together, without the Borrower’s consent,
only to Fannie Mae, but may not delegate its obligations under this Agreement unless required to do
so pursuant to Section 19.04.



SECTION 23.12 Headings. Article and Section headings used herein are for convenience of
reference only, are not part of this Agreement and are not to affect the construction of, or to be
taken into consideration in interpreting, this Agreement.



SECTION 23.13 General Interpretive Principles. For purposes of this Agreement, except as
otherwise expressly provided or unless the context otherwise requires, (i) the terms defined in
Article I, Section 15.01, Section 16.01 and elsewhere in this Agreement have the meanings assigned
to them in this Agreement and include the plural as well as the singular, and the use of any gender
herein shall be deemed to include the other genders; (ii) accounting terms not otherwise defined
herein have the meanings assigned to them in accordance with GAAP; (iii) references herein to
“Articles,” “Sections,” “subsections,” “paragraphs” and other subdivisions without reference to a
document are to designated Articles, Sections, subsections, paragraphs and other subdivisions of
this Agreement; (iv) a reference to a subsection without further reference to a Section is a
reference to such subsection as contained in the same Section in which the reference appears, and
this rule shall also apply to paragraphs and other subdivisions; (v) a reference to an Exhibit or a
Schedule without a further reference to the document to which the Exhibit or Schedule is attached
is a reference to an Exhibit or Schedule to this Agreement; (vi) the words “herein,” “hereof,”
“hereunder” and other words of similar import refer to this Agreement as a whole and not to any
particular provision; and (vii) the word “including” means “including, but not limited to.”





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SECTION 23.14 Interpretation. The parties hereto acknowledge that each party and their
respective counsel have participated in the drafting and revision of this Agreement and the Loan
Documents. Accordingly, the parties agree that any rule of construction which disfavors the
drafting party shall not apply in the interpretation of this Agreement and the Loan Documents or
any amendment or supplement or exhibit hereto or thereto.



SECTION 23.15 Decisions in Writing. Any approval, designation, determination, selection,
action or decision of the Lender must be in writing to be effective.



SECTION 23.16 Requests. The Borrower may make up to a total of four (4) Collateral Addition
Requests, Collateral Release Requests and Collateral Substitution Requests in each Loan Year. In
addition, the Borrower may make up to four (4) additional Collateral Addition Requests, Collateral
Release Requests and Collateral Substitution Requests in each Loan Year upon payment of a fee, in
addition to any fee due in connection with the subject Request, equal to the greater of (i) $10,000
and (ii) 25 basis points multiplied by the Allocable Facility Amount of the Mortgaged Property that
is the subject of the Request.




[THE REMAINDER OF THIS PAGE IS LEFT INTENTIONALLY BLANK]




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



	 	 	 	 	 
	 	 	BORROWER
	 
	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC.,

a Virginia corporation
	 
	 	 	 	 
	 

	 	By:	 	/s/ Ella S. Neyland
	 

	 	 	 	 
	 

	 	Name:
	 	Ella S. Neyland
	 

	 	Title:
	 	Executive Vice President and Treasurer






- 89 -









 






	 	 	 	 	 	 	 
	 	 	LENDER
	 
	 	 	 	 	 	 
	 	 	GREEN PARK FINANCIAL LIMITED PARTNERSHIP, 

a District of Columbia limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Walker & Dunlop GP, LLC, a Delaware limited

liability company, its managing general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Michael Palmer
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Michael Palmer
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	Vice President
	 

	 	 	 	 	 	 





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EXHIBIT A TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




SCHEDULE OF INITIAL MORTGAGED PROPERTIES

AND INITIAL VALUATIONS




 









 





EXHIBIT A

SCHEDULE OF INITIAL MORTGAGED PROPERTIES

AND INITIAL VALUATIONS




	 	 	 	 	 	 	 
	Property Name	 	Property Address	 	Initial Valuation
	Alafaya Woods

	 	407 Alafaya Woods Boulevard

Oviedo, Florida 32765
	 	$	15,500,000	 
	Arbors at Lee Vista

	 	5900 Bent Pine Drive

Orlando, Florida 32822
	 	$	22,100,000	 
	Dominion West End

	 	3900 Arcadia Lane

Richmond, Virginia 23233
	 	$	22,500,000	 
	Dominion English Hills

	 	8800 Queensmere Place

Richmond, Virginia 23294
	 	$	25,600,000	 
	Dominion Great Oaks

	 	3008 Autumn Branch Lane

Ellicott City, Maryland
	 	$	16,400,000	 
	Dominion Middle Ridge

	 	12280 Creekview Circle

Woodbridge, Virginia 22192
	 	$	20,400,000	 
	Greens at Cedar Chase

	 	1700 North Dupont Highway

Dover, Delaware 19901
	 	$	6,916,000	 
	Greens at Hilton Run

	 	502 Hilton Drive

Lexington Park, Maryland 20653
	 	$	19,200,000	 
	Gwinnett Square

	 	4175 Satellite Boulevard

Duluth, Georgia 30136
	 	$	11,000,000	 
	Hunter’s Ridge

	 	1400 Plantation Boulevard

Plant City, Florida 33567
	 	$	15,450,000	 
	River Place

	 	4501 Sheraton Drive

Macon, Georgia 31210
	 	$	8,300,000	 
	Courthouse Green

	 	6417 Statute Street

Chesterfield, VA 23832
	 	$	11,400,00	 
	Lake Ridge

	 	3216 Bluff View Court

Lake Ridge, Virginia 22192
	 	$	13,800,000	 
	Yorkshire Downs

	 	101 Little Bay Avenue

Yorktown, Virginia 23693
	 	$	10,500,000	 
	Lakewood Place

	 	350 Lakewood Dr.

Brandon, Florida 33510
	 	$	15,770,000	 
	Westland Park

	 	6710 Collins Rd.

Jacksonville, Florida 32244
	 	$	19,700,000	 
	Los Altos

	 	311 Los Altos Way

Altamonte Springs, Florida 32714
	 	$	17,600,000	 
	Ashton at Waterford

	 	12137 Ashton Manor Way

Orlando, Florida 32828
	 	$	23,600,000	 






A-1









 






EXHIBIT B TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




BASE FACILITY NOTE




 









 





BASE FACILITY NOTE




			
	US $                    
	 	                    






     FOR VALUE RECEIVED, the undersigned (“Borrower”) promises to pay to the order of GREEN
PARK FINANCIAL LIMITED PARTNERSHIP, a District of Columbia limited partnership      (“Lender”)      the      principal      sum      of                               DOLLARS      (US $                    ),
with interest on the unpaid principal balance at the annual rate of       percent (      %).



     This Note is executed and delivered by Borrower pursuant to that certain Amended and Restated
Master Credit Facility Agreement, dated as of June 24, 2002, by and among Borrower and Lender (as
amended from time to time, the “Master Agreement”), to evidence the obligation of Borrower
to repay a Base Facility Advance made by Lender to Borrower in accordance with the terms of the
Master Agreement. This Note is entitled to the benefit and security of the Loan Documents provided
for in the Master Agreement, to which reference is hereby made for a statement of all of the terms
and conditions under which the Base Facility Advance evidenced hereby is made.



     1. Defined Terms. As used in this Note, (i) the term “Lender” means the holder of
this Note, and (ii) the term “Indebtedness” means the principal of, interest on, or any
other amounts due at any time under, this Note, the Security Instruments or any other Loan
Document, including prepayment premiums, late charges, default interest, and advances to protect
the security of the Security Instruments under Section 12 of the Security Instruments. Event of
Default and other capitalized terms used but not defined in this Note shall have the meanings given
to such terms in the Master Agreement (or, if not defined in the Master Agreement, as defined in
the Security Instruments (as defined in Paragraph 5).



     2. Address for Payment. All payments due under this Note shall be payable at 7500 Old
Georgetown Road, Suite 800, Bethesda, Maryland 20814-8133, or such other place as may be
designated by written notice to Borrower from or on behalf of Lender.



     3. Payment of Principal and Interest. Principal and interest shall be paid as follows:



     (a) Unless disbursement of principal is made by Lender to Borrower on the first day of the
month, interest for the period beginning on the date of disbursement and ending on and including
the last day of the month in which such disbursement is made shall be payable simultaneously with
the execution of this Note. Interest under this Note shall be computed on the basis of a 360-day
year consisting of twelve 30-day months.



     (b) Consecutive monthly installments of principal and interest, each in the amount of 
      Dollars (US $      ), shall be payable on
the first day of each month beginning on                     , until the entire unpaid principal
balance evidenced by this Note is fully paid. Any accrued interest remaining past due for 30 days
or more shall be



B-1









 







added to and become part of the unpaid principal balance and shall bear interest at the rate
or rates specified in this Note, and any reference below to “accrued interest” shall refer to
accrued interest which has not become part of the unpaid principal balance. Any remaining
principal and interest shall be due and payable on                     , unless such date shall be
extended pursuant to the Master Agreement, or on any earlier date on which the unpaid principal
balance of this Note becomes due and payable, by acceleration or otherwise (the “Maturity
Date”). The unpaid principal balance shall continue to bear interest after the Maturity Date
at the Default Rate set forth in this Note until and including the date on which it is paid in
full.



     (c) Any regularly scheduled monthly installment of principal and interest that is received by
Lender before the date it is due shall be deemed to have been received on the due date solely for
the purpose of calculating interest due.



     4. Application of Payments. If at any time Lender receives, from Borrower or otherwise, any
amount applicable to the Indebtedness that is less than all amounts due and payable at such time,
Lender may apply that payment to amounts then due and payable in any manner and in any order
determined by Lender, in Lender’s discretion. Borrower agrees that neither Lender’s acceptance of
a payment from Borrower in an amount that is less than all amounts then due and payable nor
Lender’s application of such payment shall constitute or be deemed to constitute either a waiver of
the unpaid amounts or an accord and satisfaction.



     5. Security. The Indebtedness is secured, among other things, by multifamily mortgages, deeds
to secure debt or deeds of trust dated as of the date of this Note (the “Security
Instruments”), and reference is made to the Security Instruments for other rights of Lender
concerning the collateral for the Indebtedness.



     6. Acceleration. If an Event of Default has occurred and is continuing, the entire unpaid
principal balance, any accrued interest, the prepayment premium payable under Paragraph 10, if any,
and all other amounts payable under this Note and any other Loan Document shall at once become due
and payable, at the option of Lender, without any prior notice to Borrower. Lender may exercise
this option to accelerate regardless of any prior forbearance.



     7. Late Charge. If any monthly amount payable under this Note or under the Security
Instruments or any other Loan Document is not received by Lender within 10 days after the amount is
due, Borrower shall pay to Lender, immediately and without demand by Lender, a late charge equal to
5 percent of such amount. Borrower acknowledges that its failure to make timely payments will
cause Lender to incur additional expenses in servicing and processing the loan evidenced by this
Note (the “Loan”), and that it is extremely difficult and impractical to determine those
additional expenses. Borrower agrees that the late charge payable pursuant to this Paragraph
represents a fair and reasonable estimate, taking into account all circumstances existing on the
date of this Note, 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 pursuant to Paragraph 8.



     8. Default Rate. So long as any monthly installment or any other payment due under this Note
remains past due for 30 days or more, interest under this Note shall accrue on the



B-2









 







unpaid principal balance from the earlier of the due date of the first unpaid monthly
installment or other payment due, as applicable, at a rate (the “Default Rate”) equal to
the lesser of 4 percentage points above the rate stated in the first paragraph of this Note or the
maximum interest rate which may be collected from Borrower under applicable law. If the unpaid
principal balance and all accrued interest are not paid in full on the Maturity Date, the unpaid
principal balance and all accrued interest shall bear interest from the Maturity Date at the
Default Rate. Borrower also acknowledges that its failure to make timely payments will cause
Lender to incur additional expenses in servicing and processing the Loan, that, during the time
that any monthly installment or payment under this Note is delinquent for more than 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 that it is extremely difficult and impractical to determine those
additional costs and expenses. Borrower also acknowledges that, during the time that any monthly
installment or other payment due under this Note is delinquent for more than 30 days, Lender’s risk
of nonpayment of this Note 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 payable under
this Note to the Default Rate represents a fair and reasonable estimate, taking into account all
circumstances existing on the date of this Note, 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.



9. Voluntary and Involuntary Prepayments.




     (a) A prepayment premium shall be payable in connection with any prepayment made under this
Note as provided below:




     (1) Borrower may voluntarily prepay all (but not less than all) of the unpaid principal
balance of this Note on the last Business Day of a calendar month if Borrower has given
Lender at least 30 days prior notice of its intention to make such prepayment. Such
prepayment shall be made by paying (A) the amount of principal being prepaid, (B) all
accrued interest, (C) all other sums due Lender at the time of such prepayment, and (D) the
prepayment premium calculated pursuant to Schedule A. For all purposes, including the
accrual of interest, any prepayment received by Lender on any day other than the last
calendar day of the month shall be deemed to have been received on the last calendar day of
such month. For purposes of this Note, a “Business Day” means any day other than a
Saturday, Sunday or any other day on which Lender is not open for business.




     (2) Upon Lender’s exercise of any right of acceleration under this Note, Borrower shall
pay to Lender, in addition to the entire unpaid principal balance of this Note outstanding
at the time of the acceleration, (A) all accrued interest and all other sums due Lender
under this Note and the other Loan Documents, and (B) the prepayment premium calculated
pursuant to Schedule A.




     (3) Any application by Lender of any collateral or other security to the repayment of
any portion of the unpaid principal balance of this Note prior to the Maturity Date and in
the absence of acceleration shall be deemed to be a partial



B-3









 






prepayment by Borrower, requiring the payment to Lender by Borrower of a prepayment
premium. The amount of any such partial prepayment shall be computed so as to provide to
Lender a prepayment premium computed pursuant to Schedule A without Borrower having to pay
out-of-pocket any additional amounts.



     (b) Notwithstanding the provisions of Paragraph 9(a), no prepayment premium shall be payable
with respect to (A) any prepayment made no more than 180 days before the Maturity Date, or (B) any
prepayment occurring as a result of the application of any insurance proceeds or condemnation award
under any Security Instrument.



     (c) Schedules A and B are hereby incorporated by reference into this Note.



     (d) Any required prepayment of less than the unpaid principal balance of this Note shall not
extend or postpone the due date of any subsequent monthly installments or change the amount of such
installments, unless Lender agrees otherwise in writing.



     (e) Borrower recognizes that any prepayment of the unpaid principal balance of this Note,
whether voluntary or involuntary or resulting from a default by Borrower, will result in Lender’s
incurring loss, including reinvestment loss, additional expense and frustration or impairment of
Lender’s ability to meet its commitments to third parties. Borrower agrees to pay to Lender upon
demand damages for the detriment caused by any prepayment, and agrees that it is extremely
difficult and impractical to ascertain the extent of such damages. Borrower therefore acknowledges
and agrees that the formula for calculating prepayment premiums set forth on Schedule A represents
a reasonable estimate of the damages Lender will incur because of a prepayment.



     (f) Borrower further acknowledges that the prepayment premium provisions of this Note are a
material part of the consideration for the loan evidenced by this Note, and acknowledges that the
terms of this Note are in other respects more favorable to Borrower as a result of Borrower’s
voluntary agreement to the prepayment premium provisions.



     10. Costs and Expenses. Borrower shall pay on demand all reasonable expenses and costs,
including reasonable fees and out-of-pocket expenses of attorneys and expert witnesses and costs of
investigation, incurred by Lender as a result of any default under this Note or in connection with
efforts to collect any amount due under this Note, or to enforce the provisions of any of the other
Loan Documents, including those incurred in post-judgment collection efforts and in any bankruptcy
proceeding (including any action for relief from the automatic stay of any bankruptcy proceeding)
or judicial or non-judicial foreclosure proceeding.



     11. Forbearance. Any forbearance by Lender in exercising any right or remedy under this Note,
the Security Instruments, or any other Loan Document or otherwise afforded by applicable law, shall
not be a waiver of or preclude the exercise of that or any other right or remedy. The acceptance
by Lender of any payment 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 or to exercise any right or remedy with respect to any failure to make prompt
payment. Enforcement by Lender of any security for Borrower’s



B-4









 







obligations under this Note shall not constitute an election by Lender of remedies so as to
preclude the exercise of any other right or remedy available to Lender.



     12. Waivers. Presentment, demand, notice of dishonor, protest, notice of acceleration, notice
of intent to demand or accelerate payment or maturity, presentment for payment, notice of
nonpayment, grace, and diligence in collecting the Indebtedness are waived by Borrower and all
endorsers and guarantors of this Note and all other third party obligors.



     13. Loan Charges. If any applicable law limiting the amount of interest or other charges
permitted to be collected from Borrower in connection with the Loan is interpreted so that any
interest or other charge provided for in any Loan Document, whether considered separately or
together with other charges provided for in any other Loan Document, violates that law, and
Borrower is entitled to the benefit of that law, that interest or charge is hereby reduced to the
extent necessary to eliminate that violation. Borrower agrees to an effective rate of interest
that is the stated rate of interest plus any additional rate of interest resulting from any other
charges or fees that are to be paid by Borrower to Lender that may be found by a court of competent
jurisdiction to be interest. The amounts, if any, previously paid to Lender in excess of the
permitted amounts shall be applied by Lender to reduce the unpaid principal balance of this Note.
For the purpose of determining whether any applicable law limiting the amount of interest or other
charges permitted to be collected from Borrower has been violated, all Indebtedness that
constitutes interest, as well as all other charges made in connection with the Indebtedness that
constitute interest, shall be deemed to be allocated and spread ratably over the stated term of the
Note. Unless otherwise required by applicable law, such allocation and spreading shall be effected
in such a manner that the rate of interest so computed is uniform throughout the stated term of the
Note.



     14. Commercial Purpose. Borrower represents that the Indebtedness is being incurred by
Borrower solely for the purpose of carrying on a business or commercial enterprise, and not for
personal, family or household purposes.



     15. Counting of Days. Except where otherwise specifically provided, any reference in this
Note to a period of “days” means calendar days, not Business Days.



     16. Governing Law; Consent to Jurisdiction and Venue; WAIVER OF TRIAL BY JURY. The provisions
of Section 23.06 of the Master Agreement (entitled “Choice of Law; Consent to Jurisdiction; Waiver
of Jury Trial”) are hereby incorporated into this Note by this reference to the fullest extent as
if the text of such Section were set forth in its entirety herein.



     17. Captions. The captions of the paragraphs of this Note are for convenience only and shall
be disregarded in construing this Note.



     18. Notices. All notices, demands and other communications required or permitted to be given
by Lender to Borrower pursuant to this Note shall be given in accordance with Section 23.08 of the
Master Agreement.



     19. Security for this Note. The indebtedness evidenced by this Note is secured by other
Security Documents executed by Borrower or its Affiliates. Reference is made hereby to the Master
Agreement and the Security Documents for additional rights and remedies of Lender



B-5









 







relating to the indebtedness evidenced by this Note. Each Security Document shall be released
in accordance with the provisions of the Master Agreement and the Security Documents.



     20. Base Facility. This Note is issued as part of the Base Facility established in accordance
with the terms of the Master Agreement. Borrower may not re-borrow any amounts under this Note
which it has previously borrowed and repaid under this Note.



[The rest of this page has intentionally been left blank.]




B-6









 








     ATTACHED SCHEDULES. The following Schedules are attached to this Note:



     þ Schedule A            Prepayment Premium (required)



     þ Schedule B            Modifications to Multifamily Note



     IN WITNESS WHEREOF, Borrower has signed and delivered this Note under seal or has caused this
Note to be signed and delivered under seal by its duly authorized representative. Borrower intends
that this Note shall be deemed to be signed and delivered as a sealed instrument.



	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC.,

a Virginia corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Ella S. Neyland
	 	 
	 

	 	Title:
	 	Executive Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Borrower’s Employer ID Number	 	 






B-7









 






     Pay to the order of                                         , without recourse.



	 	 	 	 	 	 	 	 	 
	 	 	GREEN PARK FINANCIAL LIMITED
PARTNERSHIP, a District of Columbia
limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Walker & Dunlop GP, LLC, a Delaware
limited liability company, its managing
general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 





B-8









 






USE IF DEFEASANCE IS SELECTED




SCHEDULE A




PREPAYMENT PREMIUM




     No prepayment premium shall be payable in connection with a prepayment of this Note after the
end of the Lockout Period (as defined in Schedule B to this Note).



B-9









 





USE IF YIELD MAINTENANCE IS SELECTED




SCHEDULE A




PREPAYMENT PREMIUM



Any prepayment premium payable under Paragraph 9 of this Note shall be computed as
follows:



If the prepayment is made during the period ending on the first day of the last six months
of the term of the Note (the “Fixed Loan Yield Maintenance Period”), the prepayment premium
shall be the greater of (i) 1% of the unpaid principal balance of this Note; or (ii) the
product obtained by multiplying:





	 	(A)	 	the amount of principal being prepaid,
	 
	 	 	 	by
	 
	 	(B)	 	the difference obtained by subtracting from the interest rate
on this Note the yield rate on the ___% U.S. Treasury Security due
                    (the “Yield Rate”), as the Yield Rate is reported in The Wall
Street Journal on the thirtieth (30th) day (or, if such day is not a day on
which The Wall Street Journal is published, then on the next succeeding day on
which The Wall Street Journal is published) preceding (x) the date notice of
prepayment is given to Lender where prepayment is voluntary, or (y) the date
Lender accelerates the Loan,
	 
	 	 	 	by
	 
	 	(C)	 	the present value factor calculated using the following
formula:





	 	 	 	 	 
	1 - (1 + r)-n
	 	 	 	 
	 

r

	 	 	 	 






	 	 	 	 	 
	[r

	 	=
	 	Yield Rate
	n

	 	=
	 	the number of years, and
any fraction thereof, remaining between the Prepayment Date
and the expiration of the Yield Maintenance Period]







	 	 	 	For purposes of subparagraph (ii)(C), the “Prepayment Date” shall be (x) in
the case of a voluntary prepayment, the date on which the prepayment is
made, and (y) in any other case, the date on which Lender accelerates the
unpaid principal balance of this Note.





INITIAL(S)




INITIAL(S)




B-10









 








USE IF DEFEASANCE IS SELECTED




SCHEDULE B




MODIFICATIONS TO MULTIFAMILY NOTE




     The Multifamily Note dated                      in the original principal amount of
$                     (the “Note”) issued by UNITED DOMINION REALTY TRUST, INC.
(“Borrower”) and payable to the order of GREEN PARK FINANCIAL LIMITED PARTNERSHIP, a
District of Columbia limited partnership (“Lender”) is hereby amended as follows:



     1. Notwithstanding Paragraph 9 of this Note, Borrower shall not have the right voluntarily to
prepay any of the principal of this Note during the period beginning on the date of this Note and
ending on the 180th day before the Maturity Date (determined without regard to Lender’s exercise of
any right of acceleration of this Note) (the “Lockout Period”). The preceding sentence
shall not apply to a prepayment occurring as a result of the application of any insurance proceeds
or condemnation award under the Security Instrument. If Borrower obtains a release of the
Mortgaged Property from the lien of the Security Instrument pursuant to Section 3.10 of the Master
Agreement, Borrower shall not have the right voluntarily to prepay any of the principal of this
Note at any time.



     2. Upon Lender’s exercise, at any time during the Lockout Period, of any right of acceleration
of this Note, Borrower shall pay the following amounts to Lender:




	 	(A)	 	all sums due Lender under this Note and the other Loan Documents (other than
the unpaid principal balance of the Note which is included as a part of 2(B) below; and
	 
	 	(B)	 	an amount equal to the greater of:






     (i) the Defeasance Deposit that would be payable by Borrower to Lender if the
Defeasance Deposit were calculated on the Business Day before the date on which
Lender accelerates this Note (and assuming that the “Defeasance Closing Date”
defined in the Master Agreement is the date Lender accelerates the Note),
plus the next scheduled payment of principal and interest due in the month
following the month Lender accelerates this Note, or




     (ii) all accrued interest and the unpaid principal balance of this Note as of
the Business Day before the date on which Lender accelerates this Note.



     3. Paragraph 5 of this Note is amended by adding a paragraph at the end thereof to read as
follows:




     “If Borrower obtains a release of the Mortgaged Property from the lien of the Security
Instrument pursuant to Section 3.10 of the Master Agreement, the Indebtedness



B-11









 






shall be secured by the Pledge Agreement, and reference shall be made to the Pledge
Agreement for other rights of Lender concerning the collateral for the Indebtedness.”



     4. Paragraph 9 of this Note is amended by adding a paragraph at the end thereof to read as
follows:




     “If Borrower obtains a release of the Mortgaged Property from the lien of the Security
Instrument pursuant to Section 3.10 of the Master Agreement, Borrower shall have no personal
liability under this Note or the Pledge Agreement for the repayment of the Indebtedness or
for the performance of any other obligations of Borrower under this Note or the Pledge
Agreement (other than any liability under Section 18 of the Security Instrument for events
that occur prior to the Defeasance Closing Date, whether discovered before or after the
Defeasance Closing Date), and Lender’s only recourse for the satisfaction of the
Indebtedness and the performance of such obligations shall be Lender’s exercise of its
rights and remedies with respect to the collateral held by Lender under the Pledge Agreement
as security for the Indebtedness.”



	 	 	 	 	 
	 	—————————————

INITIALS

 	 
	 	 	 
	 	 	 
	 	 	 



B-12









 






	 	 	 	 	 



EXHIBIT C TO AMENDED AND RESTATED MASTER CREDIT FACILITY

AGREEMENT




[INTENTIONALLY OMITTED]




 









 





EXHIBIT D TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




COMPLIANCE CERTIFICATE




 









 





COMPLIANCE CERTIFICATE





     The undersigned (the “Borrower”) hereby certifies to Green Park Financial Limited
Partnership, a District of Columbia limited partnership (the “Lender”) and Fannie Mae as
follows:



     Section 1. Master Agreement. The Borrower is a party to that certain Amended and
Restated Master Credit Facility Agreement, dated as of June 24, 2002, by and among the Borrower and
the Lender (as amended from time to time, the “Master Agreement”). The rights of the
Lender under the Master Agreement have been assigned to Fannie Mae. This Certificate is issued
pursuant to the terms of the Master Agreement.



     Section 2. Satisfaction of Conditions. The Borrower hereby represents, warrants and
covenants to the Lender that all conditions to the [Credit Facility Expansion] [Collateral
Addition] [Future Advance] [Collateral Release] [Collateral Substitution] Request with respect to
which this Certificate is issued have been satisfied.



     Section 3. Capitalized Terms. All capitalized terms used but not defined in this
Certificate shall have the meanings ascribed to such terms in the Master Agreement.



     Section 4. Governing Law; Consent to Jurisdiction and Venue; WAIVER OF TRIAL BY JURY.
The provisions of Section 23.06 of the Master Agreement (entitled “Choice of Law; Consent to
Jurisdiction; Waiver of Jury Trial”) are hereby incorporated into this Certificate by this
reference to the fullest extent as if the text of such Section were set forth in its entirety
herein.



Dated as of:                                         , _______




	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC.,

a Virginia corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Ella S. Neyland
	 	 
	 

	 	Title:
	 	Executive Vice President and Treasurer	 	 






D-1









 






EXHIBIT E TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




SAMPLE FACILITY DEBT SERVICE




 









 







SAMPLE FACILITY DEBT SERVICE




	 	 	 	 	 
	For this example:
	 	 	 	 
	 
	 	 	 	 
	- Total Credit Facility Commitment amount is
	 	$	100,000,000	 
	- Revolving Facility Commitment amount is
	 	$	100,000,000	 
	- Base Facility Commitment amount is
	 	 	0	 
	- Total Revolving Facility Advances outstanding is
	 	$	80,000,000	 
	- Total Base Facility Advances outstanding is
	 	 	0	 
	- Unused Capacity is
	 	$	20,000,000	 
	 
	 	 	 	 
	- Revolving Facility Coupon Rate is
	 	 	TBD	%
	- Base Facility Coupon Rate is
	 	 	N/A	%
	- Base Facility Amortization Period is
	 	 	30 years	 
	- Standby Fee is
	 	 	12.5 bp/yr.	 
	 
	Then:
	 	 	 	 
	Facility Debt Service allocable to Revolving Facility Advances:
	 	 	 	 
	$100,000,000 @ TBD%, 30 year amortization =
	 	$	TBD	 
	Facility Debt Service allocable to Base Facility Advances:
	 	 	 	 
	$0 @ 0%, 30 year amortization =
	 	$	0	 
	Standby Fee: $20,000,0000 X 12.5 bp =
	 	$	25,000	 
	Facility Debt Service =
	 	$	TBD - sum of above	 






 









 






EXHIBIT F TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




ORGANIZATIONAL CERTIFICATE





 









 





ORGANIZATIONAL CERTIFICATE




     I, the undersigned, Ella S. Neyland, hereby certify as follows:



          Section 1. Position. I am the Executive Vice President and Treasurer of UNITED
DOMINION REALTY TRUST, INC., a Virginia corporation (the “Borrower”), and I am authorized
to deliver this Certificate on behalf of the Borrower.




          Section 2. Master Agreement. The Borrower entered into that certain Amended and
Restated Master Credit Facility Agreement, dated as of June 24, 2002, by and among the Borrower and
GREEN PARK FINANCIAL LIMITED PARTNERSHIP, a District of Columbia limited partnership (the
“Lender”) (as amended from time to time, the “Master Agreement”). The rights of
the Lender under the Master Agreement have been assigned to Fannie Mae. This Certificate is issued
pursuant to the terms of the Master Agreement.




          Section 3. Due Authorization of Request. I hereby certify that no action by the
shareholders of the Borrower is necessary to duly authorize the execution and delivery of, and the
consummation of the transaction contemplated by, the [Credit Facility Expansion] [Collateral
Addition] [Future Advance] [Collateral Release] [Collateral Substitution] Request with respect to
which this Certificate is delivered (the “Request”), or, if necessary, that attached as
Exhibit A to this Certificate is a true copy of resolutions duly adopted at a meeting of
the board of directors, partners or members, as the case may be, that authorize the action. Any
such resolutions are in full force and effect and are unmodified as of the date of this
Certificate.




          Section 4. No Changes. Since the date of the most recent Organizational Certificate
delivered to the Lender, or, if there are none, since the date of the Master Agreement, there have
been no changes in any of the Organizational Documents of the Borrower, except as set forth in
Exhibit B to this Certificate, and the Borrower remains in good standing or are duly
qualified in each of the jurisdictions in which they are required to be in good standing or duly
qualified under the terms of the Master Agreement.




          Section 5. Incumbency Certificate. One or more of the persons authorized to execute
and deliver any documents required to be delivered in connection with the Request are set forth on
the attached Schedule.




          Section 6. Capitalized Terms. All capitalized terms used but not defined in this
Certificate shall have the meanings ascribed to such terms in the Master Agreement.




          Section 7. Governing Law; Consent to Jurisdiction and Venue; WAIVER OF TRIAL BY JURY.
The provisions of Section 23.06 of the Amended and Restated Master Agreement (entitled “Choice of
Law; Consent to Jurisdiction; Waiver of Jury Trial”) are hereby incorporated into this Certificate
by this reference to the fullest extent as if the extent of such Section were set forth in its
entirety herein.




Dated as of: _______________, _____




	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC.,

a Virginia corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Ella S. Neyland	 	 
	 	 	Title: Executive Vice President and Treasurer	 	 






F-1









 








EXHIBIT A




Resolutions




F-2









 





EXHIBIT B




Changes to Organizational Documents (if any)




F-3









 





SCHEDULE




Incumbency Certificate




F-4









 





EXHIBIT G TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




INTENTIONALLY OMITTED




 









 





EXHIBIT H TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




REVOLVING CREDIT ENDORSEMENT




 









 





FUTURE ADVANCE AND REVOLVING CREDIT LINE ENDORSEMENT




Attached to and made a part of                      Policy No.



Said policy is amended by adding the following:





	1.	 	The Company acknowledges that the insured mortgage identified in Schedule A of this Policy
secures future advances of principal or a revolving credit line and provides for changes in
the rate of interest calculated pursuant to a formula contained in the insured mortgage. By
this endorsement, the Company insures against loss or damage which the insured sustains as a
result of:






	 	a.	 	The invalidity or unenforceability of the lien of the insured mortgage
resulting from the provision in the insured mortgage providing for changes in the rate
of interest.
	 
	 	b.	 	The loss of priority of the lien of the insured mortgage as security for the
unpaid principal balance of the loan, together with interest as changed in accordance
with the provisions of the insured mortgage, which loss of priority is caused by
changes in the rate of interest as provided in the insured mortgage.
	 
	 	c.	 	The invalidity or unenforceability of the lien of the insured mortgage as
security for future advances of principal indebtedness.
	 
	 	d.	 	The invalidity or unenforceability of the lien of the insured mortgage as a
result of fluctuations of the unpaid balance of the principal indebtedness.
	 
	 	e.	 	The priority of any lien or encumbrance over the lien of the insured mortgage
as security for the principal indebtedness and any future advances of principal
indebtedness made after the date of the policy.






	2.	 	This endorsement is made a part of the Policy and the insurance affected by it is subject to:
(i) the Exclusions from Coverage except Paragraph 3(d), (ii) the provisions of the Conditions
and Stipulations except Paragraph 8(d) and (iii) the Exceptions contained in Schedule B of the
Policy. In addition, it does not insure against loss or damage resulting from:





          i. Future advances of principal indebtedness made after Petition for Relief under the
Bankruptcy Code (11 U.S.C.) by or on behalf of the mortgagor.




          ii. The loss of priority of future advances of principal indebtedness as a result of taxes,
assessments, or notice of a federal tax lien filed against the mortgagor.




          iii. The loss of priority of future advances of principal indebtedness made after the vestee
shown in Schedule A is divested as owner of the estate or interest covered by this Policy.




H-1









 








          iv. The loss of priority of future advances of principal indebtedness made during any period
in which a declared default exists under the terms of the insured mortgage.




          v. The loss of priority of a future advance of principal indebtedness made after the insured
has actual knowledge of the existence of liens, encumbrances or other matters affecting the insured
premises described in Schedule A intervening between the date of the Policy and that future
advance, as to such intervening lien, encumbrance or other matters.




          vi. The fact that the outstanding balance of the indebtedness secured by the mortgage is
reduced to a zero balance at any time, unless the recorded mortgage provides that the reduction of
the indebtedness to a zero balance shall not cause the mortgage to become extinguished by operation
of law.



The total liability of the Company under said policy, binder or commitment and under this and any
prior endorsements thereto shall not exceed, in the aggregate, the amount of liability stated on
the face of said policy, binder or commitment, as the same may be specifically amended in dollar
amount by this or any prior endorsements, and the costs which the Company is obligated to pay under
the Conditions and Stipulations of the policy.



This endorsement is made a part of said policy, binder or commitment and is subject to all the
terms and provisions thereof, except as modified by the provisions hereof.



Nothing herein contained shall be construed as extending or changing the effective date of the
aforesaid policy, binder or commitment unless otherwise expressly stated.




[The rest of this page has been left blank intentionally.]




H-2









 









     IN WITNESS WHEREOF, the Company has caused this Endorsement to be signed and sealed as of the
___ day of ___, 20___, to be valid when countersigned by an authorized officer or
agent of the Company, all in accordance with its By-Laws.



	 	 	 
	Issued at                     
                                                      
                            
	 
	 	 
	COUNTERSIGNED:

	 	                    , President
	 
	 	 
	 

	 	Attest:
	 
	 	 
	                                                  

	 	                    , Secretary
	Authorized Officer or Agent
	 	 







H-3









 








EXHIBIT I TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




MULTIFAMILY REVOLVING FACILITY NOTE




 









 





MULTIFAMILY REVOLVING FACILITY NOTE




US $                    




     FOR VALUE RECEIVED, the undersigned (“Borrower”) promises to pay to the order of GREEN
PARK FINANCIAL LIMITED PARTNERSHIP, a District of Columbia limited partnership, the principal sum
of ___ Dollars (US $___), with interest on each Revolving
Facility Advance at an annual rate as calculated in Section 3 hereof.



     This Note is executed and delivered by Borrower pursuant to that certain Amended and Restated
Master Credit Facility Agreement, dated as of June 24, 2002, by and between Borrower and Lender (as
amended from time to time, the “Master Agreement”), to evidence the obligation of Borrower
to repay Revolving Facility Advances made by Lender to Borrower in accordance with the terms of the
Master Agreement. This Note is entitled to the benefit and security of the Loan Documents provided
for in the Master Agreement, to which reference is hereby made for a statement of all of the terms
and conditions under which the Revolving Facility Advances evidenced hereby is made. The Master
Agreement requires certain of the terms of each Revolving Facility Advance to be evidenced by an
Advance Confirmation Instrument, and reference is hereby made to each such Advance Confirmation
Instrument for such terms.



     This Note is issued as part of a Revolving Facility established in accordance with the terms
of the Master Agreement. Subject to the terms, conditions and limitations of Article II of the
Master Agreement, Borrower may re-borrow any amounts under this Note which they have previously
borrowed and repaid under this Note.



     1. Defined Terms. As used in this Note, (i) the term “Lender” means the holder of
this Note, and (ii) the term “Indebtedness” means the principal of, interest on, or any
other amounts due at any time under, this Note, the Security Instruments or any other Loan
Document, including prepayment premiums, late charges, default interest, and advances to protect
the security of the Security Instruments under Section 12 of the Security Instruments. Event of
Default and other capitalized terms used but not defined in this Note shall have the meanings given
to such terms in the Master Agreement (or, if not defined in the Master Agreement, as defined in
the Security Instruments (as defined in Paragraph 5)).



     2. Address for Payment. All payments due under this Note shall be payable at 7500 Old
Georgetown Road, Suite 800, Bethesda, Maryland 20814-8133, or such other place as may be
designated by written notice to Borrower from or on behalf of Lender.



     3. Payment of Principal and Interest. Principal and interest shall be paid as follows:



     (a) This Note shall evidence Revolving Facility Advances made from time to time under the
Master Agreement. Each Revolving Facility Advance shall bear interest at a rate determined in
accordance with Section 4.01 of the Master Agreement.



I-1









 








     (b) Borrower shall pay imputed interest on each Revolving Facility Advance in advance in the
form of a Discount in accordance with Section 2.04(a) of the Master Agreement (except that Borrower
shall pay actual interest on the Revolving Facility Advance for the partial month period, if any,
described in Section 2.04(b) of the Master Agreement, in accordance with the terms of such
Section). If not sooner paid, the entire principal amount of each Revolving Facility Advance shall
be due and payable on the maturity date of the applicable Revolving Facility Advance (the
“Maturity Date”) in accordance with Section 2.03 of the Master Agreement. In addition to
payment of principal and the Discount, the Borrower shall pay the Revolving Facility Fee due on
each Revolving Facility Advance in accordance with Section 2.04(c) of the Master Agreement. No
Revolving Facility Advance may have a Maturity Date later than, and any then outstanding Revolving
Facility Advance shall be due and payable in full on, the related Revolving Facility Termination
Date.



     4. Application of Payments. If at any time Lender receives, from Borrower or otherwise, any
amount applicable to the Indebtedness that is less than all amounts due and payable at such time,
Lender may apply that payment to amounts then due and payable in any manner and in any order
determined by Lender, in Lender’s discretion. Borrower agrees that neither Lender’s acceptance of
a payment from Borrower in an amount that is less than all amounts then due and payable nor
Lender’s application of such payment shall constitute or be deemed to constitute either a waiver of
the unpaid amounts or an accord and satisfaction.



     5. Security. The Indebtedness is secured, among other things, by the Security Instruments
described in the Master Agreement and reference is made to the Security Instruments for other
rights of Lender concerning the collateral for the Indebtedness.



     6. Acceleration. If an Event of Default has occurred and is continuing, the entire unpaid
principal balance, any accrued interest, the prepayment premium payable under Paragraph 9, if any,
and all other amounts payable under this Note and any other Loan Document shall at once become due
and payable, at the option of Lender, without any prior notice to Borrower. Lender may exercise
this option to accelerate regardless of any prior forbearance.



     7. Late Charge. If any monthly amount payable under this Note or under the Security
Instrument or any other Loan Document is not received by Lender within 10 days after the amount is
due, Borrower shall pay to Lender, immediately and without demand by Lender, a late charge equal to
5 percent of such amount. Borrower acknowledges that its failure to make timely payments will
cause Lender to incur additional expenses in servicing and processing the loan evidenced by this
Note (the “Loan”), and that it is extremely difficult and impractical to determine those
additional expenses. Borrower agrees that the late charge payable pursuant to this Paragraph
represents a fair and reasonable estimate, taking into account all circumstances existing on the
date of this Note, 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 pursuant to Paragraph 8.



     8. Default Rate. So long as any monthly installment or any other payment due under this Note
remains past due for 30 days or more, interest under this Note shall accrue on the unpaid principal
balance from the earlier of the due date of the first unpaid monthly installment or other payment
due, as applicable, at a rate (the “Default Rate”) equal to the lesser of 4



I-2









 







percentage points above the rate stated in the first paragraph of this Note or the maximum
interest rate which may be collected from Borrower under applicable law. If the unpaid principal
balance and all accrued interest are not paid in full on the Maturity Date, the unpaid principal
balance and all accrued interest shall bear interest from the Maturity Date at the Default Rate.
Borrower also acknowledges that its failure to make timely payments will cause Lender to incur
additional expenses in servicing and processing the Loan, that, during the time that any monthly
installment or payment under this Note is delinquent for more than 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 that it is extremely difficult and impractical to determine those
additional costs and expenses. Borrower also acknowledges that, during the time that any monthly
installment or other payment due under this Note is delinquent for more than 30 days, Lender’s risk
of nonpayment of this Note 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 payable under
this Note to the Default Rate represents a fair and reasonable estimate, taking into account all
circumstances existing on the date of this Note, of the additional costs and expenses Lender will
incur by reason of the Borrower’s delinquent payment and the additional compensation Lender is
entitled to receive for the increased risks of nonpayment associated with a delinquent loan.



     9. Voluntary and Involuntary Prepayments.



     Pursuant to the terms of the Master Agreement, the Borrower shall pay the entire amount of the
Discount on any Revolving Facility Advance in advance. Accordingly, any Revolving Facility Advance
may be prepaid in whole or in part and at any time without penalty. Borrower shall give Lender
five Business Days’ advance notice of any prepayment.



     10. Costs and Expenses. Borrower shall pay on demand all reasonable expenses and costs,
including reasonable fees and out-of-pocket expenses of attorneys and expert witnesses and costs of
investigation, incurred by Lender as a result of any default under this Note or in connection with
efforts to collect any amount due under this Note, or to enforce the provisions of any of the other
Loan Documents, including those incurred in post-judgment collection efforts and in any bankruptcy
proceeding (including any action for relief from the automatic stay of any bankruptcy proceeding)
or judicial or non-judicial foreclosure proceeding.



     11. Forbearance. Any forbearance by Lender in exercising any right or remedy under this Note,
the Security Instrument, or any other Loan Document or otherwise afforded by applicable law, shall
not be a waiver of or preclude the exercise of that or any other right or remedy. The acceptance
by Lender of any payment 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 or to exercise any right or remedy with respect to any failure to make prompt
payment. Enforcement by Lender of any security for Borrower’s obligations under this Note shall
not constitute an election by Lender of remedies so as to preclude the exercise of any other right
or remedy available to Lender.



     12. Waivers. Presentment, demand, notice of dishonor, protest, notice of acceleration, notice
of intent to demand or accelerate payment or maturity, presentment for



I-3









 







payment, notice of nonpayment, grace, and diligence in collecting the Indebtedness are waived
by Borrower and all endorsers and guarantors of this Note and all other third party obligors.



     13. Loan Charges. If any applicable law limiting the amount of interest or other charges
permitted to be collected from Borrower in connection with the Loan is interpreted so that any
interest or other charge provided for in any Loan Document, whether considered separately or
together with other charges provided for in any other Loan Document, violates that law, and
Borrower is entitled to the benefit of that law, that interest or charge is hereby reduced to the
extent necessary to eliminate that violation. Borrower agrees to an effective rate of interest
that is the stated rate of interest plus any additional rate of interest resulting from any other
charges or fees that are to be paid by Borrower to Lender that may be found by a court of competent
jurisdiction to be interest. The amounts, if any, previously paid to Lender in excess of the
permitted amounts shall be applied by Lender to reduce the unpaid principal balance of this Note.
For the purpose of determining whether any applicable law limiting the amount of interest or other
charges permitted to be collected from Borrower has been violated, all Indebtedness that
constitutes interest, as well as all other charges made in connection with the Indebtedness that
constitute interest, shall be deemed to be allocated and spread ratably over the stated term of the
Note. Unless otherwise required by applicable law, such allocation and spreading shall be effected
in such a manner that the rate of interest so computed is uniform throughout the stated term of the
Note.



     14. Commercial Purpose. Borrower represents that the Indebtedness is being incurred by
Borrower solely for the purpose of carrying on a business or commercial enterprise, and not for
personal, family or household purposes.



     15. Counting of Days. Except where otherwise specifically provided, any reference in this
Note to a period of “days” means calendar days, not Business Days.



     16. Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. The provisions of Section
23.06 of the Master Agreement (entitled “Choice of Law; Consent to Jurisdiction; Waiver of Jury
Trial”) are hereby incorporated into this Note by this reference to the fullest extent as if the
text of such Section were set forth in its entirety herein.



     17. Captions. The captions of the paragraphs of this Note are for convenience only and shall
be disregarded in construing this Note.



     18. Notices. All notices, demands and other communications required or permitted to be given
by Lender to Borrower pursuant to this Note shall be given in accordance with Section 23.08 of the
Master Agreement.



     19. Cross-Default with Master Agreement. The occurrence of an Event of Default under the
Master Agreement shall constitute an “Event of Default” under this Note, and, accordingly, upon the
occurrence of an Event of Default under the Master Agreement, the entire principal amount
outstanding hereunder and accrued interest thereon shall at once become due and payable, at the
option of the holder hereof.



     20. Advance Confirmation Instruments; Accounting for Revolving Facility Advances. The terms
of the Master Agreement and this Note govern the repayment, and all



I-4









 







other terms relating to each Revolving Facility Advance. However, Borrower shall execute an
Advance Confirmation Instrument to create a physical instrument evidencing the Revolving Facility
Advance. The Advance Confirmation Instrument for a Revolving Facility Advance executed by Borrower
in accordance with Section 4.02 of the Master Agreement shall set forth the amount, term, Discount,
Closing Date and certain other terms of the Revolving Facility Advance. The Advance Confirmation
Instrument shall conclusively establish each of the terms described in the preceding sentence,
absent manifest error. The Revolving Facility Advance evidenced by the Advance Confirmation
Instrument does not represent a separate indebtedness from that evidenced by this Note. In making
proof of this Note, no other documents other than this Note shall be required. In making proof of
the amount and terms of the outstanding Revolving Facility Advances under this Note, this Note, the
Advance Confirmation Instruments for the Revolving Facility Advances, and Lender’s records
concerning payments made by Borrower under this Note, shall be conclusive evidence of the terms and
outstanding amounts of each Revolving Facility Advance, absent manifest error.



     21. Priority of Advances. Each Revolving Facility Advance under this Note shall be evidenced
by an Advance Confirmation Instrument, and the lien of each Security Document executed by Borrower
from time to time to secure this Note, shall secure each separate Advance (and the lien of each
Security Instrument and other Security Document executed by the Borrower to secure its obligations
under the Loan Documents) to the same extent and with the same effect as if the Advance had been
made (and any guaranty obligation had been incurred) on the date on which (i) with respect to each
other Security Instrument, the Security Instrument is recorded in the land records of the
jurisdiction in which the real property covered by the Security Instrument is located, or (ii) with
respect to each other Security Document, the date on which the Security Document is executed and
delivered to Lender.



[Remainder of page left intentionally blank.]




I-5









 








     ATTACHED
SCHEDULES. The following Schedules are attached to this Note:


     o Schedule A Prepayment Premium



     o
Schedule B Modifications to Multifamily Note



     IN WITNESS WHEREOF, Borrower has signed and delivered this Note under seal or has caused this
Note to be signed and delivered under seal by its duly authorized representative. Borrower intends
that this Note shall be deemed to be signed and delivered as a sealed instrument.



	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC.,

a Virginia corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Ella S. Neyland	 	 
	 	 	Title: Executive Vice President and Treasurer	 	 






I-6









 






     Pay to the order of ___, without recourse.



	 	 	 	 	 	 	 
	 	 	GREEN PARK FINANCIAL LIMITED PARTNERSHIP, a District
of Columbia limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Walker & Dunlop GP, LLC, a Delaware limited
liability company, its managing general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 





I-7









 






EXHIBIT J TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




TIE-IN ENDORSEMENT




 









 





TIE-IN ENDORSEMENT




To be annexed to and form a part of Policy No. ________________.



The said policy is hereby amended in the following manner:



The Company acknowledges that the land described in Schedule A of this policy is part of the
security for an indebtedness in the amount of $___ which indebtedness is also
secured by mortgages or deeds of trust which are insured concurrently by the following policies:




	 	 	 	 	 	 	 	 	 	 	 	 	 
	Policy No.	 	County	 	 	State	 	 	Amount	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 





J-1









 







Anything to the contrary notwithstanding in Paragraph 6(a)(ii) of the Conditions and Stipulations
of the Policy, the insurance coverage afforded in this Policy is aggregated with the insurance
coverage in all of the other policies identified in this endorsement so the effective insurance
coverage is $___. The total liability of the Company under this and all policies
identified in this endorsement shall not exceed such amount, but its liability in this Policy for
the land described in Schedule A remains limited by the provisions of Paragraph 6(a)(i) and
6(a)(iii) of the Conditions and Stipulations of this Policy. Any payment by the Company on this or
any of the Policies listed in this Endorsement shall reduce pro tanto the liability of the Company
under all policies, and the amount so paid shall be deemed a payment under all policies.



The total liability of the Company under said Policy and any prior endorsements attached thereto
shall not exceed, in the aggregate, the face amount of said Policy, as the same may be specifically
amended in dollar amount by this or any prior endorsements, and the costs which the Company is
obligated under the provisions of said Policy to pay.



Nothing herein contained shall be construed as extending or changing the effective date of said
commitment or policy unless otherwise expressly stated.



This endorsement is made a part of said Policy and is subject to the exclusions, schedules,
endorsements, conditions, stipulations and terms thereof, except as modified by the provisions
hereof.




Executed this ____ day of _________________, 20____.




 






	 	 	 
	COUNTERSIGNED:

	 	                    ,
	President
	 	 
	 
	 	 
	                    
	 	 
	 
	 	 
	                                      

	 	Attest:                    , Secretary
	Authorized Signatory
	 	 






J-2









 






EXHIBIT K TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




CONVERSION REQUEST




 









 





CONVERSION REQUEST




     THE MASTER AGREEMENT PURSUANT TO WHICH THIS REQUEST IS DELIVERED REQUIRES THERE TO OCCUR A
CLOSING TO BE HELD AT OFFICES DESIGNATED BY YOU ON A CLOSING DATE SELECTED BY YOU, AND OCCURRING
WITHIN 30 BUSINESS DAYS AFTER YOUR RECEIPT OF THE CONVERSION REQUEST (OR ON SUCH OTHER DATE TO
WHICH WE MAY AGREE), AS LONG AS NONE OF THE LIMITATIONS CONTAINED IN SECTION 3.08 OF THE MASTER
AGREEMENT IS VIOLATED, AND ALL CONDITIONS CONTAINED IN SECTION 3.09 OF THE MASTER AGREEMENT ARE
SATISFIED.



                    ,                     

VIA:                                         




Green Park Financial Limited Partnership

7500 Old Georgetown Road

Suite 800

Bethesda, Maryland 20814

Attention:                     

[Note: Subject to change in the event Lender or its address changes]





	Re:	 	CONVERSION REQUEST issued pursuant to Amended and Restated Master Credit Facility
Agreement, dated as of June 24, 2002, by and among the
undersigned (the “Borrower”) and
the Lender (as amended from time to time, the “Master
Agreement”).





Ladies and Gentlemen:



This constitutes a Conversion Request pursuant to the terms of the above-referenced Master
Agreement.




     Section 1. Request. The Borrower hereby requests that there occur a conversion of all
or a portion of the Revolving Facility to the Base Facility Commitment in accordance with the terms
of the Master Agreement. Following is the information required by the Master Agreement with
respect to this Request:




     (a) Designation of Amount of Conversion. The amount of the conversion shall be
$                    .




     (b) Prepayment of Revolving Facility Advances. (If necessary) The Revolving
Facility Advances Outstanding which will be prepaid on the Closing Date for the conversion
are as follows:




Closing Date of Revolving Facility Advance:                                         




Maturity Date of Revolving Facility Advance:                                         



K-1









 









Amount of Advance:                                         




(Note: Any Base Facility Advances made in conjunction with a conversion of all or a portion
of the Revolving Facility to the Base Facility Commitment must be accompanied by a Future
Advance Request and shall be reviewed in accordance with the terms of the Master Agreement.)




     (c) Accompanying Documents. All documents, instruments and certificates
required to be delivered pursuant to the conditions contained in Section 3.09 of the Master
Agreement, including (i) the Conversion Documents, as well as (ii) a Compliance Certificate
and (iii) an Organizational Certificate will be delivered on or before the Closing Date.


USE (d) ONLY IF THIS REQUEST RELATES TO THE FIRST BASE FACILITY COMMITMENT UNDER THE MASTER CREDIT
FACILITY.





     (d) Selection of Prepayment Provisions. Indicated below is the Borrower’s
selection of prepayment provisions:




                               Defeasance




                               Yield Maintenance




The Borrower understands and agrees that the above selection shall apply to all Base
Facility Advances under the Master Agreement.



NOTE: MORTGAGES MAY NEED MODIFICATION IF DEFEASANCE IS SELECTED.




     Section 2. Capitalized Terms. All capitalized terms used but not defined in this
Request shall have the meanings ascribed to such terms in the Master Agreement.



	 	 	 	 	 	 	 
	 	 	Sincerely,	 	 
	 
	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC.,

a Virginia corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Ella S. Neyland	 	 
	 	 	Title: Executive Vice President and Treasurer	 	 






K-2









 






EXHIBIT L TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




AMENDED AND RESTATED MASTER CREDIT FACILITY AGREEMENT CONVERSION AMENDMENT




 









 





AMENDMENT TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




     THIS
___ AMENDMENT TO AMENDED AND RESTATED MASTER CREDIT FACILITY AGREEMENT (the
“Amendment”) is made as of the
___ day of ___, ___, by and among (i) United
Dominion Realty Trust, Inc., a Virginia corporation (“Borrower”) and (ii) Green Park
Financial Limited Partnership, a District of Columbia limited partnership (“Lender”); and
(iii) Fannie Mae, a federally-chartered and stockholder-owned corporation organized and existing
under the Federal National Mortgage Association Charter Act, 12 U.S.C. § 1716 et
seq. (“Fannie Mae”).



RECITALS




     A. The Borrower and the Lender are parties to that certain Amended and Restated Master Credit
Facility Agreement, dated as of June 24, 2002 (as amended from time to time, the “Master
Agreement”).



     B. All of the Lender’s right, title and interest in the Master Agreement and the Loan
Documents executed in connection with the Master Agreement or the transactions contemplated by the
Master Agreement have been assigned to Fannie Mae pursuant to that certain Assignment of Amended
and Restated Master Credit Facility Agreement and Other Loan Documents, dated as of June 24, 2002
(the “Assignment”). Fannie Mae has not assumed any of the obligations of the Lender under
the Master Agreement or the Loan Documents as a result of the Assignment. Fannie Mae has
designated the Lender as the servicer of the Advances contemplated by the Master Agreement.



     C. The
parties are executing this ___ Amendment pursuant to the Master Agreement to reflect a
conversion of all or a portion of the Revolving Facility to the Base Facility Commitment.



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



     Section 1. Conversion. The Revolving Facility shall be reduced by, and the Base
Facility Commitment shall be increased by, $___, and the definitions of “Revolving
Facility Commitment” and “Base Facility Commitment” are hereby replaced in their entirety by the
following new definitions:




     “Base Facility Commitment” means $___, plus such amount as the
Borrower may elect to add to the Base Facility Commitment in accordance with Articles III or
VIII.




     “Revolving Facility Commitment” means an aggregate amount of
$___, evidenced by the Revolving Facility Note in the form attached hereto
as Exhibit I, plus such amount as the Borrower may elect to add to the Revolving



L-1









 









Facility Commitment in accordance with Article VIII, and less such amount as the
Borrower may elect to convert from the Revolving Facility Commitment to the Base Facility
Commitment in accordance with Article III and less such amount by which the Borrower may
elect to reduce the Revolving Facility Commitment in accordance with Article IX.



     Section 2.
Capitalized Terms. All capitalized terms used in this ___ Amendment which
are not specifically defined herein shall have the respective meanings set forth in the Master
Agreement.



     Section 3.
Full Force and Effect. Except as expressly modified by this ___ Amendment, all terms and conditions of the Master Agreement shall continue in full force and
effect.



     Section 4.
Counterparts. This ___ Amendment may be executed in counterparts by the
parties hereto, and each such counterpart shall be considered an original and all such counterparts
shall constitute one and the same instrument.



     Section 5. Governing Law; Consent to Jurisdiction and Venue; WAIVER OF TRIAL BY JURY.
The provisions of Section 23.06 of the Master Agreement (entitled “Choice of Law; Consent to
Jurisdiction; Waiver of Jury Trial”) are hereby incorporated
into this ___ Amendment by this
reference to the fullest extent as if the text of such Section were set forth in its entirety
herein.



[The rest of this page has been intentionally left blank.]




L-2









 








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



	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC., a 

Virginia corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Ella S. Neyland	 	 
	 	 	Title: Executive Vice President and Treasurer	 	 






L-3









 






	 	 	 	 	 	 	 
	 	 	GREEN PARK FINANCIAL LIMITED PARTNERSHIP, a District
of Columbia limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Walker & Dunlop GP, LLC, a Delaware
limited liability company, its managing
general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 





L-4









 






	 	 	 	 	 	 	 
	 	 	FANNIE MAE, a federally-chartered and
stockholder-owned corporation organized and existing
under the Federal National Mortgage Association
Charter Act, § 12 U.S.C. 1716, et
seq.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 






L-5









 








EXHIBIT M TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




RATE SETTING FORM




 









 





RATE SETTING FORM




     Pursuant to Section 4.01(b) of that certain Amended and Restated Master Credit Facility
Agreement dated as of June 24, 2002 (as amended from time to time, the “Master Agreement”)
by and among Green Park Financial Limited Partnership, a District of Columbia limited partnership
(the “Lender”) and the undersigned (the “Borrower”), the Borrower hereby requests
that the Lender issue to it an advance with the following terms:



	 	 	 
	Designation of Advance

	 	                     Base Facility Advance
	(Check One)

	 	                     Revolving Facility Advance






	 	 	 
	FOR REVOLVING FACILITY ADVANCE ONLY:
	 	 
	 
	Proposed MBS Imputed Interest Rate
	 	                    %
	Advance Amount
	 	$                    
	Term
	 	                     months
	MBS Issue Date
	 	                    
	Revolving Facility Fee
	 	                    
	Maximum Annual Coupon Rate
	 	                    %
	Discount
	 	                    %
	Price
	 	                    
	Closing Date no later than
	 	                    
	Discount Amount
	 	                    






M-1









 






	 	 	 
	FOR BASE FACILITY ADVANCE ONLY:
	 	 
	 
	Proposed Pass-Through Rate
	 	                     %
	Advance Amount
	 	$                    
	Term
	 	                     months
	MBS Issue Date
	 	                    ,                     
	Base Facility Fee
	 	                    
	Maximum Annual Coupon Rate
	 	                    %
	Amortization Period
	 	                    
	Closing Date no later than
	 	                    ,                     






     The Lender will provide the Borrower with written confirmation when and if it has obtained a
commitment for the purchase of a Fannie Mae MBS having the characteristics described above at a
price between 99-1/2 and 100-1/2 or better. In the event that the lowest available Coupon Rate is
greater than that specified above, the Lender will not proceed without the prior written
authorization of the Borrower.



     The Borrower certifies that all conditions contained in Article V of the Master Agreement
that are required to be satisfied will be satisfied on or before the Closing Date.



     Defined terms used herein shall have the same meaning as set forth in the Master Agreement.



[Signatures on the following page]




M-2









 








Dated:                     




	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC.,

 a Virginia
corporation	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Title: Ella S. Neyland	 	 
	 	 	Name: Executive Vice President and Treasurer	 	 






M-3









 






EXHIBIT N TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




RATE CONFIRMATION FORM




 









 





RATE CONFIRMATION FORM




     Pursuant to Section 4.01(c) of that certain Amended and Restated Master Credit Facility
Agreement dated as of June 24, 2002 (as amended from time to time, the “Master Agreement”)
by and among Green Park Financial Limited Partnership, a District of Columbia limited partnership
(the “Lender”) and United Dominion Realty Trust, Inc., a Virginia corporation (the
“Borrower”), and the Rate Setting Form dated ___, from the Borrower to the
Lender, the Lender hereby confirms that it has obtained a commitment for the purchase of a Fannie
Mae MBS with the following terms:



	 	 	 
	Designation of Advance

	 	                     Base Facility Advance
	(Check One)

	 	                     Revolving Facility Advance






	 	 	 
	FOR REVOLVING FACILITY ADVANCE ONLY:
	 	 
	 
	Advance Amount
	 	$                    
	Term
	 	                     months
	MBS Issue Date
	 	                    ,                     
	MBS Imputed Interest Rate
	 	                    %
	Revolving Facility Fee
	 	                    
	Maximum Annual Coupon Rate
	 	                    %
	Discount
	 	                    %
	Price
	 	                    
	Closing Date no later than
	 	                    ,                     






N-1









 






	 	 	 
	FOR BASE FACILITY ADVANCE ONLY:
	 	 
	 
	Advance Amount
	 	$                     
	Term
	 	                     months
	MBS Issue Date
	 	                    ,                     
	MBS Pass-Through Rate
	 	                    %
	Base Facility Fee
	 	                    
	Maximum Annual Coupon Rate
	 	                    %
	Price
	 	                    
	Yield Maintenance Period
	 	                    
	Yield Rate Security
	 	                    
	Amortization Period
	 	                    
	Closing Date no later than
	 	                    ,                     






Dated:                     




	 	 	 	 	 	 	 
	 	 	GREEN PARK FINANCIAL LIMITED PARTNERSHIP, a District
of Columbia limited partnership	 	 
	 
	 	 	 	 	 	 
	 	 	By: Walker & Dunlop GP, LLC, a Delaware limited
liability company, its managing general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 






N-2









 








EXHIBIT O TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




ADVANCE CONFIRMATION INSTRUMENT





 









 






ADVANCE CONFIRMATION INSTRUMENT




     THIS ADVANCE CONFIRMATION INSTRUMENT (the “Advance Confirmation Instrument”) is made
as of the ___ day of                     , 20___, by United Dominion Realty Trust, a Virginia
corporation (the “Borrower”) for the benefit of Green Park Financial Limited Partnership, a
District of Columbia limited partnership (the “Lender”).



RECITALS




     A. The Borrower and the Lender are parties to that certain Amended and Restated Master Credit
Facility Agreement, dated as of June 24, 2002 (as amended from time to time, the “Master
Agreement”).



     B. All of the Lender’s right, title and interest in the Master Agreement and the Loan
Documents executed in connection with the Master Agreement or the transactions contemplated by the
Master Agreement have been assigned to Fannie Mae pursuant to that certain Assignment of Amended
and Restated Master Credit Facility Agreement and Other Loan Documents, dated as of June 24, 2002
(the “Assignment”). Fannie Mae has not assumed any of the obligations of the Lender under
the Master Agreement or the Loan Documents as a result of the Assignment. Fannie Mae has
designated the Lender as the servicer of the Advances contemplated by the Master Agreement.



     C. In accordance with this Advance Confirmation Instrument and the Master Agreement, the
Lender is making a Revolving Facility Advance to the Borrower.



     D. The Borrower is executing this Advance Confirmation Instrument pursuant to the Master
Agreement to confirm certain terms of the Master Agreement and that certain Multifamily Revolving
Facility Note dated the same date as the Master Agreement in the original principal amount of
$                     (as amended from time to time, the “Revolving Facility Note”) relating to
the Revolving Facility Advance, and the Borrower’s obligation to repay the Advance in accordance
with the terms of the Revolving Facility Note and this Advance Confirmation Instrument.



     NOW, THEREFORE, the Borrower, in consideration of the Lender’s making of the Revolving
Facility Advance, and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, hereby agree as follows:



     Section 1. Confirmation of Advance and Terms of Advance. The Borrower hereby confirms
the following terms of the Revolving Facility Advance, and confirms and agrees that it shall repay
the Advance to the Lender in accordance with the terms of the Revolving Facility Note and the
Master Agreement:



	 	 	 	 	 	 	 	 
	Advance Amount
	 	 	$	 	 	 	 
	 	 	 	 	 	 	 

	 
	Term
	 	 	 	 	 	 	days
	 	 	 	 	 	 	 

	 
	MBS Issue Date	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 






O-1









 






	 	 	 	 	 	 	 	 
	MBS Imputed Interest Rate
	 	 	 	 	 	 	 %
	 	 	 	 	 	 	 

	 
	Revolving Facility Fee
	 	 	$	 	 	 	 
	 	 	 	 	 	 	 

	 
	Coupon Rate
	 	 	 	 	 	 	 %
	 	 	 	 	 	 	 

	 
	Discount
	 	 	 	 	 	 	 %
	 	 	 	 	 	 	 

	 
	Price
	 	 	$	 	 	 	 
	 	 	 	 	 	 	 

	 
	Closing Date	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 






     Section 2. Beneficiaries. This Advance Confirmation Instrument is made for the
express benefit of the Lender.



     Section 3. Purpose. The terms of the Master Agreement and the Revolving Facility Note
govern the repayment, and all other terms relating to the Revolving Facility Advance. However,
this Advance Confirmation Instrument has been executed to create a physical instrument evidencing
the above-described Advance under the Revolving Facility Note. The Revolving Facility Advance
evidenced by this Advance Confirmation Instrument does not represent a separate indebtedness from
that evidenced by the Revolving Facility Note.



     Section 4. Effectiveness of Advance Confirmation Instrument. This Advance
Confirmation Instrument will not be effective until the Lender funds the Revolving Facility
Advance, at which time the Lender shall note the date of such funding by completing the date block
at the foot of this Advance Confirmation Instrument, and executing this Advance Confirmation
Instrument below such date block, and such completion shall be binding on the Borrower, absent
manifest error.



     Section 5. Capitalized Terms. All capitalized terms used in this Advance Confirmation
Instrument which are not specifically defined herein shall have the respective meanings set forth
in the Master Agreement.



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



     Section 7. Governing Law; Consent to Jurisdiction and Venue; WAIVER OF TRIAL BY JURY.
The provisions of Section 23.06 of the Master Agreement (entitled “Choice of Law; Consent to
Jurisdiction; Waiver of Jury Trial”) are hereby incorporated into this Advance Confirmation
Instrument by this reference to the fullest extent as if the test of such Section were set forth in
its entirety herein.



O-2









 





     IN WITNESS WHEREOF, the Borrower has executed this Advance Confirmation Instrument as of the
day and year first above written.



	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC., a

Virginia corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Ella S. Neyland
	 	 
	 

	 	Title:
	 	Executive Vice President and Treasurer	 	 






Date of Funding:                                         ,                     




	 	 	 	 	 	 	 	 	 
	 	 	GREEN PARK FINANCIAL LIMITED

PARTNERSHIP, a District of Columbia limited

partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Walker & Dunlop GP, LLC, a Delaware

limited liability company, its managing

general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 







O-3









 








EXHIBIT P TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




FUTURE ADVANCE REQUEST




 









 





FUTURE ADVANCE REQUEST



THE MASTER AGREEMENT PURSUANT TO WHICH THIS REQUEST IS DELIVERED REQUIRES YOU TO MAKE THE REQUESTED
FUTURE ADVANCE, IF ALL CONDITIONS CONTAINED IN SECTION 5.03 OF THE MASTER AGREEMENT ARE SATISFIED,
AT A CLOSING TO BE HELD AT OFFICES DESIGNATED BY YOU ON A CLOSING DATE SELECTED BY YOU, AND
OCCURRING ON A DATE SELECTED BY US, WHICH DATE SHALL BE NOT MORE THAN THREE (3) BUSINESS DAYS AFTER
YOUR RECEIPT OF THE FUTURE ADVANCE REQUEST AND OUR RECEIPT OF THE RATE CONFIRMATION FORM (OR ON
SUCH OTHER DATE TO WHICH WE MAY AGREE). THE LENDER RESERVES THE RIGHT TO REQUIRE THAT WE POST A
DEPOSIT AT THE TIME THE MBS COMMITMENT IS OBTAINED AS AN ADDITIONAL CONDITION TO YOUR OBLIGATION TO
MAKE THE FUTURE ADVANCE.




	 	 	 	 	 
	                                        ,                     	 	 
	 
	 	 	 	 
	VIA:
	 	 	 	 
	 

	 	 

	 	 






Green Park Financial Limited Partnership

7500 Old Georgetown Road

Bethesda, Maryland 20814

Attention:                                        

[Note: Subject to change in the event Lender or its address changes]




	 	 	 
	Re:

	 	FUTURE ADVANCE REQUEST issued pursuant
to Amended and Restated Master Credit
Facility Agreement, dated as of June
24, 2002, by and among the undersigned
(the “Borrower”) and the Lender (as
amended from time to time, the “Master
Agreement”)






Ladies and Gentlemen:



This constitutes a Future Advance Request pursuant to the terms of the above-referenced Master
Agreement.




     Section 1. Request. The Borrower hereby requests that the Lender make an Advance in
accordance with the terms of the Master Agreement. Following is the information required by the
Master Agreement with respect to this Request:




	 	(a)	 	Amount. The amount of the Future Advance shall be $                    .
	 
	 	(b)	 	Designation of Facility. The Future Advance is a: [Check one]

                    Base Facility Advance

                    Revolving Facility Advance
	 
	 	(c)	 	Maturity Date. The Maturity Date of the Future Advance is as follows:


                                        ,                     .





P-1









 






	 	(d)	 	Amortization Period. [For Base Facility Advance only] The principal
of this Base Facility Advance shall be amortized over a period of (between 20 years and
30 years):                     .
	 
	 	(e)	 	Accompanying Documents. All documents, instruments and certificates
required to be delivered pursuant to the conditions contained in Section 5.03 of the
Master Agreement, including (i) a Rate Setting Form, (ii) an Advance Confirmation
Instrument (for Revolving Facility Advances only), (iii) a Base Facility Note (for Base
Facility Advances only) as well as (iv) a Compliance Certificate, and (v) an
Organizational Certificate, will be delivered on or before the Closing Date.
	 
	 	(e)	 	Wiring Information. Please wire the Future Advance on or before the
Closing Date into our account in accordance with the following wiring information:





	 	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 






     Section 2. Available Commitment. The information contained in the following table is
true, correct and complete, to the undersigned’s knowledge. The undersigned acknowledges and
agrees that the final determination of the information shall be made by the Lender, in accordance
with the terms of the Master Agreement.



	 
	Currently Available Base Facility Credit Commitment

	 

	Currently Available Revolving Facility Credit Commitment

	 

	Proposed Amount Drawn on Base Facility Credit Commitment

	 

	Remaining Base Facility Credit Commitment after Proposed Draw

	 

	Proposed Amount Drawn on Revolving Facility Credit Commitment

	 

	Remaining Revolving Facility Credit Commitment after the Proposed Draw







     For these purposes, the terms




	 	(a)	 	“Available Base Facility Credit Commitment” means, at any time, the
maximum amount of Base Facility Advances which could be issued and outstanding without
causing: (i) the Aggregate Debt Service Coverage Ratio for the Trailing 12 Month Period
to be less than 1.35:1.0; (ii) the Aggregate Loan to Value Ratio for the




P-2









 






	 	 	 	Trailing 12 Month Period to be greater than 65%; or (iii) a breach of any of the
Financial Covenants set forth in Article XV of the Master Agreement; and
	 
	 	(b)	 	“Available Revolving Facility Credit Commitment” means, at any time,
the maximum amount of Revolving Facility Advances which could be issued and outstanding
without causing: (i) the Aggregate Debt Service Coverage Ratio for the Trailing 12
Month Period to be less than 1.35:1.0; (ii) the Aggregate Loan to Value Ratio for the
Trailing 12 Month Period to be greater than 65% or (iii) a breach of any of the
Financial Covenants set forth in Article XV of the Master Agreement.





     Section 3. Capitalized Terms. All capitalized terms used but not defined in this
Request shall have the meanings ascribed to such terms in the Master Agreement.



Sincerely,




UNITED DOMINION REALTY TRUST, INC.,

a Virginia corporation




	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

Ella S. Neyland
	 	 
	Title:

	 	Executive Vice President and Treasurer	 	 







P-3









 








EXHIBIT Q TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




COLLATERAL ADDITION REQUEST




 









 





COLLATERAL ADDITION REQUEST




     THE MASTER AGREEMENT PURSUANT TO WHICH THIS REQUEST IS DELIVERED REQUIRES THAT (1) IF YOU
CONSENT TO THE ADDITION OF THE PROPOSED ADDITIONAL MORTGAGED PROPERTY TO THE COLLATERAL POOL, (2)
WE ELECT TO CAUSE THE PROPOSED ADDITIONAL MORTGAGED PROPERTY TO BE ADDED TO THE COLLATERAL POOL AND
(3) ALL CONDITIONS CONTAINED IN SECTION 6.03 OF THE MASTER AGREEMENT ARE SATISFIED, THEN YOU SHALL
PERMIT THE PROPOSED ADDITIONAL MORTGAGED PROPERTY TO BE ADDED TO THE COLLATERAL POOL, AT A CLOSING
TO BE HELD AT OFFICES DESIGNATED BY YOU ON A CLOSING DATE SELECTED BY YOU, AND OCCURRING WITHIN
THIRTY (30) BUSINESS DAYS AFTER YOUR RECEIPT OF OUR ELECTION (OR ON SUCH OTHER DATE TO WHICH WE MAY
AGREE).



	 	 	 	 	 
	                                        ,                     	 	 
	 
	 	 	 	 
	VIA:
	 	 	 	 
	 

	 	 

	 	 






Green Park Financial Limited Partnership

7500 Old Georgetown Road

Bethesda, Maryland 20814

Attention:                    

[Note: Subject to change in the event Lender or its address changes]




	 	 	 
	Re:

	 	COLLATERAL ADDITION REQUEST issued
pursuant to Amended and Restated Master
Credit Facility Agreement, dated as of
June 24, 2002, by and among the
undersigned (the “Borrower”) and others
(as amended from time to time, the
“Master Agreement”)






Ladies and Gentlemen:



This constitutes a Collateral Addition Request pursuant to the terms of the above-referenced Master
Agreement.




     Section 1. Request. The Borrower hereby requests that the Multifamily Residential
Property described in this Request be added to the Collateral Pool in accordance with the terms of
the Master Agreement. Following is the information required by the Master Agreement with respect
to this Request:




     (a) Collateral Addition Description Package. Attached to this Request is the
Collateral Addition Description Package and attached thereto are all information and
documents relating to the Additional Collateral required by the Collateral Addition
Description Package;




     (b) Due Diligence Fees. Enclosed with this Request is a check in payment of
all Additional Collateral Due Diligence Fees required to be submitted with this Request
pursuant to Section 16.03(b) of the Master Agreement; and



Q-1









 






     (c) Accompanying Documents. All reports, certificates and documents required
to be delivered pursuant to the conditions contained in Section 6.03 of the Master Agreement
will be delivered on or before the Closing Date.



     Section 2. Collateral Addition Fee. If the Lender consents to the addition of the
Additional Collateral to the Collateral Pool, and the Borrower elects to add the Additional
Collateral to the Collateral Pool, the Borrower shall pay the Collateral Addition Fee and all legal
fees and expenses payable by the Borrower pursuant to Section 23.17 of the Master Agreement for the
Additional Collateral to the Lender as one of the conditions to the closing of the addition of the
Additional Collateral to the Collateral Pool.



     Section 3. Capitalized Terms. All capitalized terms used but not defined in this
Request shall have the meanings ascribed to such terms in the Master Agreement.



Sincerely,




UNITED DOMINION REALTY TRUST, INC.,

a Virginia corporation




	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

Ella S. Neyland
	 	 
	Title:

	 	Executive Vice President and Treasurer	 	 







Q-2









 








EXHIBIT R TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




COLLATERAL ADDITION DESCRIPTION PACKAGE




 









 





COLLATERAL ADDITION DESCRIPTION PACKAGE




	 	 	 	 	 
	Property Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	City/County/State:
	 	 	 	 
	 

	 	 

	 	 






General Description, including number of units and amenities:




	 	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 






	 	 	 	 	 	 	 
	Year Built:
	 	 	 	 	 	 
	Year Acquired:

	 	 

	 	 	 	 
	Fee Owner:

	 	 

	 	 	 	 
	 	 	 	 	 
	Valuation:
	 	 	 	 	 	 






	 	 	 	 	 
	 

	 	 

	 	 






Existing Third Party Reports:




	 	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 






	 	 	 	 	 
	Property Contact:
	 	 	 	 
	 

	 	 

	 	 






Other Pertinent Information:




	 	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 







R-1









 








EXHIBIT S TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




COLLATERAL ADDITION REQUEST — SUPPORTING DOCUMENTS




 









 





[NOTE: SUBJECT TO LENDER REVIEW

AND POSSIBLE WAIVER]




ADDITIONS TO COLLATERAL




DUS APPLICATION CHECKLIST




 PROPERTY DATA




	 	 	 	 	 	 	 
	REC’D	 	OUT	 	 	 	 
	 

	 	 	 	*A.
	 	Current month’s rent roll, dated and certified by Borrower; must include apartment number, unit
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	type, tenant name, monthly rent, market rent, move-in date, lease expiration date, and whether
furnished or unfurnished.
	 
	 	 	 	 	 	 
	 

	 	 	 	*B.
	 	Certification of Current Project Rent Roll (Schedule H).
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	*C.
	 	Borrower’s Concession Statement (Schedule H-1 and H-2).
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	*D.
	 	Commercial leases (if applicable).
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	*E.
	 	Current certified year-to-date operating statement and prior three years’ statements. YTD statement
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	must end with the same month as the certified rent roll.
	 
	 	 	 	 	 	 
	 

	 	 	 	F.
	 	Monthly operating statements for the last six months.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	G.
	 	Vacancy/turnover information for prior 24 months; month-by-month breakdown of collections
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	including vacancy, bad debt and concessions (may be provided in operating statements).
	 
	 	 	 	 	 	 
	 

	 	 	 	H.
	 	Delinquency information for 30, 60, 90+ days. Lender will take this information in
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	whatever form the Borrower has.
	 
	 	 	 	 	 	 
	 

	 	 	 	I.
	 	Operating Budget (Schedule I, provides instructions).
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	J.
	 	Copies of existing major service contracts (landscaping, trash, pool, laundry, pest and elevator).
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	K.
	 	Copy of most recent and prior year tax bills and most recent assessment.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	L.
	 	Copy of complete insurance policies including all endorsements, declarations, and premiums.
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Required only if not on blanket policy; Certificate of Insurance required for all additions.
	 
	 	 	 	 	 	 
	 

	 	 	 	M.
	 	Major improvements during the last two years and projected for the next twelve months.
	 

	 	 	 	 	 	 






S-1









 







	 	 	 	 	 	 	 
	REC’D	 	OUT	 	 	 	 
	 

	 	 	 	N.
	 	Existing title report including all easements, restrictions, judgments and liens. (Lender
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	requirements enclosed). Will need to be updated prior to Closing.
	 
	 	 	 	 	 	 
	 

	 	 	 	*O.
	 	Two copies of the existing as-built survey or site plan (Lender requirements enclosed).
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Will need to be updated prior to Closing.
	 
	 	 	 	 	 	 
	 

	 	 	 	*P.
	 	Legal Description.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Q.
	 	Occupancy Certificates. If not available, please provide a letter from the City stating that
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	they are not available, and why.
	 
	 	 	 	 	 	 
	 

	 	 	 	*R.
	 	Ground Lease; please advise if not applicable.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	*S.
	 	Reciprocal Use Agreement; please advise if not applicable.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	T.
	 	Operating Licenses.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	U.
	 	Termite inspection.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	V.
	 	Copy of one bill from each utility for the property.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	*W.
	 	Existing reports, if available (e.g., appraisal, market study, engineering, environmental).
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	X.
	 	Plans, specifications and soil reports (recently completed properties only).
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 


	 	 

	 	Y. 
	 	Copies of any deed or rent restrictions in place; please advise if not applicable.








 




			
	*	 	STARRED ITEMS ARE REQUIRED AS SOON AS POSSIBLE SO THAT THIRD PARTY REPORTS CAN BE ORDERED.




S-2









 









III. Management Company




	 	 	 	 	 	 	 
	REC'D	 	OUT	 	 	 	 
	 

	 	 	 	A.
	 	Copy of current or proposed Management Agreement, if applicable.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	B.
	 	Sample tenant lease.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	C.
	 	Management Resume, if other than REIT-related management company.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	D.
	 	Accounts payable schedule for 30, 60 and 90+ days; list should include vendor name,
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	invoice date, invoice number, description of item and amount.
	 
	 	 	 	 	 	 
	 

	 	 	 	E.
	 	Market survey done by resident manager; to be provided to Lender underwriter at
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	site inspection.
	 
	 	 	 	 	 	 
	 

	 	 	 	F.
	 	Leasing brochure and floor plans.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	G.
	 	Property Payroll and Benefits (Schedule L).
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	Any other information deemed necessary by Lender to complete the
underwriting of the addition to collateral.







S-3









 








EXHIBIT T TO AMENDED AND RESTATED MASTER CREDIT FACILITY

AGREEMENT




COLLATERAL RELEASE REQUEST




 









 





COLLATERAL RELEASE REQUEST




     THE MASTER AGREEMENT PURSUANT TO WHICH THIS REQUEST IS DELIVERED REQUIRES FOR THERE TO OCCUR A
CLOSING WITHIN 30 BUSINESS DAYS AFTER YOUR RECEIPT OF THIS REQUEST, SUBJECT TO SATISFACTION OF ALL
CONDITIONS CONTAINED IN SECTION 7.03 OF THE MASTER AGREEMENT. REFERENCE IS MADE TO THE MASTER
AGREEMENT FOR THE SCOPE OF THE LENDER’S OBLIGATIONS WITH RESPECT TO THIS REQUEST.



	 	 	 	 	 
	                                        ,                     	 	 
	 
	 	 	 	 
	VIA:
	 	 	 	 
	 

	 	 

	 	 






Green Park Financial Limited Partnership

7500 Old Georgetown Road

Bethesda, Maryland 20814

Attention:                    

[Note: Subject to change in the event Lender or its address changes]




	 	 	 
	Re:

	 	COLLATERAL RELEASE REQUEST issued
pursuant to Amended and Restated Master
Credit Facility Agreement, dated as of
June 24, 2002, by and among the
undersigned (the “Borrower”) and the
Lender (as amended from time to time,
the “Master Agreement”)






Ladies and Gentlemen:



This constitutes a Collateral Release Request pursuant to the terms of the above-referenced Master
Agreement.




     Section 1. Request. The Borrower hereby requests that the Collateral Release
Property described in this Request be released from the Collateral Pool in accordance with the
terms of the Master Agreement. Following is the information required by the Master Agreement with
respect to this Request:



T-1









 






     (a) Description of Collateral Release Property. The name, address and location
(county and state) of the Mortgaged Property, or other designation of the Collateral, to be
released from the Collateral Pool is as follows:



	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Location:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 






     (b) Accompanying Documents. All documents, instruments and certificates
required to be delivered pursuant to the conditions contained in Section 7.03 of the Master
Agreement will be delivered on or before the Closing Date.



     Section 2. Release Price. The Borrower shall pay the Release Price as one of the
conditions to the closing of the release of the Collateral Release Property from the Collateral
Pool.



     Section 3. Capitalized Terms. All capitalized terms used but not defined in this
Request shall have the meanings ascribed to such terms in the Master Agreement.



Sincerely,




UNITED DOMINION REALTY TRUST, INC.,

a Virginia corporation




	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

Ella S. Neyland
	 	 
	Title:

	 	Executive Vice President and Treasurer	 	 







T-2









 








EXHIBIT U TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




BORROWER’S CONFIRMATION OF OBLIGATIONS





 









 





BORROWER’S CONFIRMATION OF OBLIGATIONS




     THIS BORROWER’S CONFIRMATION OF OBLIGATIONS (the “Confirmation of Obligations”) is
made as of the                      day of                                         , 20
                    , by and among United Dominion Realty Trust, Inc.,
a Virginia corporation (“Borrower”); Green Park Financial Limited Partnership, a District
of Columbia limited partnership (“Lender”); and Fannie Mae, a federally-chartered and
stockholder-owned corporation organized and existing under the Federal National Mortgage
Association Charter Act, 12 U.S.C. § 1716 et seq. (“Fannie Mae”).



RECITALS




     A. The Borrower and the Lender are parties to that certain Amended and Restated Master
Credit Facility Agreement, dated as of June 24, 2002 (as amended from time to time, the “Master
Agreement”).



     B. All of the Lender’s right, title and interest in the Master Agreement and the Loan
Documents executed in connection with the Master Agreement or the transactions contemplated by the
Master Agreement have been assigned to Fannie Mae pursuant to that certain Assignment of Amended
and Restated Master Credit Facility Agreement and Other Loan Documents, dated as of June 24, 2002
(the “Assignment”). Fannie Mae has not assumed any of the obligations of the Lender under
the Master Agreement or the Loan Documents as a result of the Assignment. Fannie Mae has
designated the Lender as the servicer of the Advances contemplated by the Master Agreement.



     C. The Borrower has delivered to the Lender a Collateral Release Request pursuant to the
Master Agreement to release a Collateral Release Property from the Collateral Pool.



     D. The Lender has consented to the Collateral Release Request.



     E. The parties are executing this Confirmation of Obligations pursuant to the Master
Agreement to confirm that each remains liable for all of its obligations under the Master Agreement
and the other Loan Documents notwithstanding the release of the Collateral Release Property from
the Collateral Pool.



     NOW, THEREFORE, the Borrower, in consideration of the Lender’s consent to the release of the
Collateral Release Property from the Collateral Pool and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, hereby agree as follows:



     Section 1. Confirmation of Obligations. The Borrower confirms that none of its
obligations under the Master Agreement and the Loan Documents is affected by the release of the
Collateral Release Property from the Collateral, and each of its obligations under the Master
Agreement and the Loan Documents shall remain in full force and effect, and it shall be fully
liable for the observance of all such obligations, notwithstanding the release of the Collateral
Release Property from the Collateral Pool. The Borrower confirms that, except with respect to the
Collateral Release Property, none of its obligations under the Master Agreement and the Loan
Documents is affected by the release of the Collateral Release Property, and its obligations under
the Master Agreement and the Loan Documents shall remain in full force and effect, and it



U-1




 









 




shall be fully liable for the observance of all such obligations, notwithstanding the release
of the Collateral Release Property from the Collateral Pool.




     Section 2. Beneficiaries. This Confirmation of Obligations is made for the express
benefit of both the Lender and Fannie Mae.



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



     Section 4. Counterparts. This Confirmation of Obligations may be executed in
counterparts by the parties hereto, and each such counterpart shall be considered an original and
all such counterparts shall constitute one and the same instrument.



     Section 5. Governing Law; Consent to Jurisdiction and Venue; WAIVER OF TRIAL BY JURY.
The provisions of Section 23.06 of the Master Agreement (entitled “Choice of Law; Consent to
Jurisdiction; Waiver of Jury Trial”) are hereby incorporated into this Confirmation of Obligations
by this reference to the fullest extent as if the text of such Section were set forth in its
entirety herein.



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



[Signatures on the following pages]




U-2




 









 





	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC., a Virginia
corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Ella S. Neyland	 	 
	 	 	Title:   Executive Vice President and Treasurer	 	 






U-3




 









 





GREEN PARK FINANCIAL LIMITED

PARTNERSHIP, a District of Columbia limited

partnership




By:      Walker & Dunlop GP, LLC, a Delaware limited

liability company, its managing general partner




	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 





U-4




 









 





	 	 	 	 	 	 	 
	 	 	FANNIE MAE, a federally-chartered and
stockholder-owned corporation organized and existing
under the Federal National Mortgage Association
Charter Act, § 12 U.S.C. 1716, et
seq.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 





U-5




 









 





EXHIBIT V TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




CREDIT FACILITY EXPANSION REQUEST




 









 





CREDIT FACILITY EXPANSION REQUEST




     THE MASTER AGREEMENT PURSUANT TO WHICH THIS REQUEST IS DELIVERED REQUIRES YOU TO PERMIT THE
REQUESTED INCREASE IN THE COMMITMENT, AT A CLOSING TO BE HELD AT OFFICES DESIGNATED BY YOU ON A
CLOSING DATE SELECTED BY YOU, AND OCCURRING WITHIN FIFTEEN (15) BUSINESS DAYS AFTER YOUR RECEIPT OF
THE CREDIT FACILITY EXPANSION REQUEST (OR ON SUCH OTHER DATE TO WHICH WE), AS LONG AS ALL
CONDITIONS CONTAINED IN SECTION 8.03 OF THE MASTER AGREEMENT ARE SATISFIED. REFERENCE IS MADE TO
THE MASTER AGREEMENT FOR THE SCOPE OF THE LENDER’S OBLIGATIONS WITH RESPECT TO THIS REQUEST.



                                        ,                     




VIA:                                                             
                    




Green Park Financial Limited Partnership

7500 Old Georgetown Road

Bethesda, Maryland 20814

Attention:                                        



[Note: Subject to change in the event Lender or its address changes]





			
	Re:	 	CREDIT FACILITY EXPANSION REQUEST
issued pursuant to Amended and Restated
Master Credit Facility Agreement, dated
as of June 24, 2002, by and among the
undersigned (the “Borrower”) and the
Lender (as amended from time to time,
the “Master Agreement”)





Ladies and Gentlemen:



This constitutes a Credit Facility Expansion Request pursuant to the terms of the
above-referenced Master Agreement.




     Section 1. Request. The Borrower hereby requests an increase in the maximum credit
commitment in accordance with the terms of the Master Agreement. Following is the information
required by the Master Agreement with respect to this Request:




     (a) Amount of Increase. The amount of the increase in the maximum credit
commitment and the amount of the increases in the Base Facility Commitment or the Revolving
Facility Commitment are as follows:



	 	 	 	 	 
	NAME	 	INCREASE	 	RESULTING AMOUNT OF
	 	 	 	 	COMMITMENT
	MAXIMUM CREDIT 

COMMITMENT:
	 	 	 	 






V-1




 









 





	 	 	 
	BASE FACILITY 

COMMITMENT:
	 	 
	 
	 	 
	REVOLVING FACILITY 

COMMITMENT:
	 	 





[Note: Section 8.01 of the Master Agreement limits the maximum credit commitment to
$250,000,000 and the increase in the Maximum Credit Commitment must be in the minimum amount of
$5,000,000.]





     (b) Geographical Diversification Requirements. The Borrower hereby
requests that the Lender inform the Borrower of any change in the Geographical
Diversification Requirements.




     (c) Accompanying Documents. All documents, instruments and certificates
required to be delivered pursuant to the conditions contained in Section 8.04 of the Master
Agreement will be delivered on or before the Closing Date.


USE (d) ONLY IF THIS REQUEST RELATES TO THE FIRST BASE FACILITY COMMITMENT UNDER THE MASTER
CREDIT FACILITY.





     (d) Selection of Prepayment Provisions. Indicated below is the Borrower’s
selection of prepayment provisions:




                                             Defeasance




                                             Yield Maintenance




The Borrower understands and agrees that the above selection shall apply to all Base
Facility Advances under the Master Agreement.



NOTE: MORTGAGES MAY NEED MODIFICATION IF DEFEASANCE IS SELECTED.




     Section 2. Capitalized Terms. All capitalized terms used but not defined in this
Request shall have the meanings ascribed to such terms in the Master Agreement.



	 	 	 	 	 
	Sincerely,	 	 
	 
	 	 	 	 
	UNITED DOMINION
REALTY TRUST, INC.,

a Virginia corporation	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name: Ella S. Neyland	 	 
	Title: Executive Vice President and Treasurer	 	 






V-2




 









 





EXHIBIT W TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




REVOLVING FACILITY TERMINATION REQUEST




 









 





REVOLVING FACILITY TERMINATION REQUEST




     THE MASTER AGREEMENT PURSUANT TO WHICH THIS REQUEST IS DELIVERED REQUIRES YOU TO PERMIT THE
REVOLVING FACILITY COMMITMENT TO BE REDUCED TO THE AMOUNT DESIGNATED BY US, AT A CLOSING TO BE HELD
AT OFFICES DESIGNATED BY YOU ON A CLOSING DATE SELECTED BY YOU, WITHIN FIFTEEN (15) BUSINESS DAYS
AFTER YOUR RECEIPT OF THE REVOLVING FACILITY TERMINATION REQUEST (OR ON SUCH OTHER DATE TO WHICH WE
MAY AGREE), IF ALL CONDITIONS CONTAINED IN SECTION 9.03 ARE SATISFIED. REFERENCE IS MADE TO THE
MASTER AGREEMENT FOR THE SCOPE OF THE LENDER’S OBLIGATIONS WITH RESPECT TO THIS REQUEST.



                                        ,                     




VIA:                                                             




 




Green Park Financial Limited Partnership

7500 Old Georgetown Road

Bethesda, Maryland 20814

Attention:



[Note: Subject to change in the event Lender or its address changes]





			
	Re:	 	REVOLVING FACILITY TERMINATION REQUEST
issued pursuant to Amended and Restated
Master Credit Facility Agreement, dated
as of June 24, 2002, by and among the
undersigned (the “Borrower”) and the
Lender (as amended from time to time,
the “Master Agreement”)





Ladies and Gentlemen:



This constitutes a Revolving Facility Termination Request pursuant to the terms of the
above-referenced Master Agreement.




     Section 1. Request. The Borrower hereby requests a permanent reduction in the amount
of the Revolving Facility in accordance with the terms of the Master Agreement. Following is the
information required by the Master Agreement with respect to this Request:



W-1




 









 






     (a)
Amount of Reduction. The amount of the permanent reduction in the
Revolving Facility is as follows:




Amount of Reduction:      $                                        





Resulting Amount of

Revolving Facility:                      $                                        
                    




     (b) Required Prepayments. Following are any Revolving Facility Advances that
shall be prepaid in connection with the permanent reduction in the Revolving Facility:



	 	 	 	 	 
	    Closing Date of Advance:

	 	                                                            
	 	 
	 
	 	 	 	 
	    Maturity Date of Advance:

	 	                                                            	 	 
	 
	 	 	 	 
	    Amount of Advance:

	 	                                                            	 	 







     (c) Accompanying Documents. All documents, instruments and certificates
required to be delivered pursuant to the conditions contained in Section 9.03 of the Master
Agreement will be delivered on or before the Closing Date.



     Section 2. Prepayments and Termination Fee. The Borrower shall pay the required
amount of the prepayment for any Revolving Facility Advances required to be prepaid, and the
required amount of the Termination Fee, pursuant to the terms of Section 9.03 of the Master
Agreement, as two of the conditions to the permanent reduction in the Revolving Facility.



     Section 3. Capitalized Terms. All capitalized terms used but not defined in this
Request shall have the meanings ascribed to such terms in the Master Agreement.



	 	 	 	 	 
	Sincerely,	 	 
	 
	 	 	 	 
	UNITED DOMINION
REALTY TRUST, INC. ,

a Virginia corporation	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name: Ella S. Neyland	 	 
	Title: Executive Vice President and Treasurer	 	 






W-2





 









 








EXHIBIT X TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




REVOLVING FACILITY TERMINATION DOCUMENT





 









 





AMENDMENT TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




     THIS
___ AMENDMENT TO AMENDED AND RESTATED MASTER CREDIT FACILITY AGREEMENT (the
“Amendment”) is made as of the
___ day of                                         ,         , by and among (i) United
Dominion Realty Trust, Inc., a Virginia corporation (“Borrower”) and (ii) Green Park
Financial Limited Partnership, a District of Columbia limited partnership (“Lender”) and
(iii) Fannie Mae, a federally-chartered and stockholder-owned corporation organized and existing
under the Federal National Mortgage Association Charter Act, 12 U.S.C. § 1716 et
seq. (“Fannie Mae”).



RECITALS




     A. The Borrower and the Lender are parties to that certain Amended and Restated Master Credit
Facility Agreement, dated as of June 24, 2002 (as amended from time to time, the “Master
Agreement”).



     B. All of the Lender’s right, title and interest in the Master Agreement and the Loan
Documents executed in connection with the Master Agreement or the transactions contemplated by the
Master Agreement have been assigned to Fannie Mae pursuant to that certain Assignment of Amended
and Restated Master Credit Facility Agreement and Other Loan Documents, dated as of June 24, 2002
(the “Assignment”). Fannie Mae has not assumed any of the obligations of the Lender under
the Master Agreement or the Loan Documents as a result of the Assignment. Fannie Mae has
designated the Lender as the servicer of the Advances contemplated by the Master Agreement.



     C. The
parties are executing this ___ Amendment pursuant to the Master Agreement to reflect a
permanent reduction of all or a portion of the Revolving Facility.



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



     Section 1. Reduction of Revolving Credit Commitment. The Revolving Facility
Commitment shall be reduced by $                                        , and the definition of “Revolving Facility
Commitment” is hereby replaced in its entirety by the following new definition:




     “Revolving Facility Commitment” means an aggregate amount of
$                                        , which shall be evidenced by the Revolving Facility Note in the form
attached hereto as Exhibit I, plus such amount as the Borrower may elect to add to
the Revolving Facility Commitment in accordance with Article VIII, and less such amount as
the Borrower may elect to convert from the Revolving Facility Commitment to the Base
Facility Commitment in accordance with Article III and less such amount by which the
Borrower may elect to reduce the Revolving Facility Commitment in accordance with Article
IX.



X-1









 





     Section 2.
Capitalized Terms. All capitalized terms used in this ___ Amendment which
are not specifically defined herein shall have the respective meanings set forth in the Master
Agreement.



     Section 3. Full Force and Effect. Except as expressly modified by this ___
Amendment, all terms and conditions of the Master Agreement shall continue in full force and
effect.



     Section 4.
Counterparts. This ___ Amendment may be executed in counterparts by the
parties hereto, and each such counterpart shall be considered an original and all such counterparts
shall constitute one and the same instrument.



     Section 5. Governing Law; Consent to Jurisdiction and Venue; WAIVER OF TRIAL BY JURY.
The provisions of Section 23.06 of the Master Agreement (entitled “Choice of Law; Consent to
Jurisdiction; Waiver of Jury Trial”) are hereby incorporated
into this ___ Amendment by this
reference to the fullest extent as if the text of such Section were set forth in its entirety
herein.



[Signatures on the following pages]




X-2









 








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



	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC., a
	 	 	Virginia corporation
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name: Ella S. Neyland
	 	 	Title: Executive Vice President and Treasurer






X-3









 






	 	 	 	 	 
	 	 	GREEN PARK FINANCIAL LIMITED
	 	 	PARTNERSHIP, a District of Columbia limited
	 	 	partnership
	 
	 	 	 	 
	 

	 	By:
	 	Walker & Dunlop GP, LLC, a Delaware
	 	 	limited liability company, its managing general
	 	 	partner
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 





X-4









 






	 	 	 	 	 
	 	 	FANNIE MAE, a federally-chartered and
	 	 	stockholder-owned corporation organized and
	 	 	existing under the Federal National Mortgage
	 	 	Association Charter Act, § 12 U.S.C. 1716, et seq.
	 
	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 





X-5









 





EXHIBIT Y TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




CREDIT FACILITY TERMINATION REQUEST




 









 





CREDIT FACILITY TERMINATION REQUEST




     THE MASTER AGREEMENT PURSUANT TO WHICH THIS REQUEST IS DELIVERED REQUIRES THAT THIS AGREEMENT
SHALL TERMINATE, AND YOU SHALL CAUSE ALL OF THE COLLATERAL TO BE RELEASED FROM THE COLLATERAL POOL,
AT A CLOSING TO BE HELD AT OFFICES DESIGNATED BY YOU ON A CLOSING DATE SELECTED BY YOU, WITHIN 30
BUSINESS DAYS AFTER YOUR RECEIPT OF THE CREDIT FACILITY TERMINATION REQUEST (OR ON SUCH OTHER DATE
TO WHICH WE MAY AGREE), AS LONG AS ALL CONDITIONS CONTAINED IN SECTION 10.03 OF THE MASTER
AGREEMENT ARE SATISFIED. REFERENCE IS MADE TO THE MASTER AGREEMENT FOR THE SCOPE OF THE LENDER’S
OBLIGATIONS WITH RESPECT TO THIS REQUEST.


                                        , 20     



VIA:                                         




Green Park Financial Limited Partnership

7500 Old Georgetown Road

Bethesda, Maryland 20814

Attention:                                        

[Note: Subject to change in the event Lender or its address changes]




	 	 	 
	Re:

	 	CREDIT FACILITY TERMINATION REQUEST
issued pursuant to Amended and Restated
Master Credit Facility Agreement, dated
as of June 24, 2002, by and among the
undersigned (the “Borrower”) and the
Lender (as amended from time to time,
the “Master Agreement”)





Ladies and Gentlemen:



This constitutes a Credit Facility Termination Request pursuant to the terms of the
above-referenced Master Agreement.




     Section 1. Request. The Borrower hereby requests a termination of the Master
Agreement and the Credit Facility in accordance with the terms of the Master Agreement. All
documents, instruments and certificates required to be delivered pursuant to the conditions
contained in Section 10.03 of the Master Agreement will be delivered on or before the Closing Date.



     Section 2. Prepayments and Termination Fee. The Borrower shall pay in full all Notes
Outstanding and the required Facility Termination Fee as a condition to the termination of the
Master Agreement and the Credit Facility.



     Section 3. Capitalized Terms. All capitalized terms used but not defined in this
Request shall have the meanings ascribed to such terms in the Master Agreement.



Y-1









 





	 	 	 	 	 
	Sincerely,	 	 
	 
	 	 	 	 
	UNITED DOMINION REALTY TRUST, INC.,	 	 
	a Virginia corporation	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name: Ella S. Neyland	 	 
	Title: Executive Vice President and Treasurer	 	 






Y-2









 





EXHIBIT Z TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




[INTENTIONALLY OMITTED]




 









 





EXHIBIT AA TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




INDEPENDENT UNIT ENCUMBRANCES




 









 





INDEPENDENT UNIT ENCUMBRANCES




None





AA-1









 








FIRST AMENDMENT TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




     THIS FIRST AMENDMENT TO AMENDED AND RESTATED MASTER CREDIT FACILITY AGREEMENT (the
“Amendment”) is made as of the 17th day of March, 2004, by (i) UNITED DOMINION REALTY
TRUST, INC., a Maryland corporation (“UDRT”) and UDR RIDGEWOOD (I) TOWNHOMES, LLC, a
Virginia limited liability company (“UDR Ridgewood”) (individually and collectively, UDRT
and UDR Ridgewood, the “Borrower”) and (ii) GREEN PARK FINANCIAL LIMITED PARTNERSHIP, a
District of Columbia limited partnership (the “Lender”).



RECITALS




     A. UDRT and Lender entered into that certain Amended and Restated Master Credit Facility
Agreement dated as of June 24, 2002, as amended from time to time, (the “Master
Agreement”), pursuant to which the Lender agreed to make credit available to the Borrower under
the terms and conditions set forth in the Master Agreement.



     B. Pursuant to that certain Reaffirmation and Joinder Agreement dated as of even date
herewith, UDR Ridgewood joined into the Master Agreement as if it were an original Borrower
thereunder.



     C. All of the Lender’s right, title and interest in the Master Agreement and the Loan
Documents executed in connection with the Master Agreement or the transactions contemplated by the
Master Agreement have been assigned to Fannie Mae pursuant to that certain Assignment of Collateral
Agreement and Other Loan Documents, dated as of June 24, 2003 (the “Assignment”). Fannie
Mae has not assumed any of the obligations of the Lender under the Master Agreement or the Loan
Documents as a result of the Assignment. Fannie Mae has designated the Lender as the servicer of
the Advances contemplated by the Master Agreement.



     D. The parties are executing this Amendment pursuant to the Master Agreement to reflect (i)
the release from the Collateral Pool of (3) Mortgaged Properties commonly known as (a) Westland
Park, located in Florida, (b) River Place, located in Georgia, and (c) Greens at Cedar Chase
located in Delaware, all owned, directly or indirectly, by UDRT, and (ii) the addition to the
Collateral Pool of one (1) Mortgaged Property commonly known as Aspen Hill View (Ridgewood
Townhomes) owned by UDR Ridgewood, located in Maryland and owned indirectly by UDRT.



     NOW, THEREFORE, the Borrower and the Lender, in consideration of the mutual promises and
agreements contained in this Agreement, hereby agree as follows:



     Section 1. Release of Mortgaged Properties. The Mortgaged Properties commonly known
as Westland Park, River Place and Greens at Cedar Chase are hereby released from the Collateral
Pool under the Master Agreement.



     Section 2. Addition of Mortgaged Property. The Mortgaged Property commonly known as
Aspen Hill View (Ridgewood Townhomes) owned by UDR Ridgewood is hereby



   









 







added to the Collateral Pool under the Master Agreement.



     Section 3. Exhibit A. Exhibit A to the Master Agreement is hereby deleted in
its entirety and replaced with the Exhibit A attached to this Amendment.



     Section 4. Capitalized Terms. All capitalized terms used in this Amendment which are
not specifically defined herein shall have the respective meanings set forth in the Master
Agreement.



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



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



     Section 7. Applicable Law. The provisions of Section 23.06 of the Master Agreement
(entitled “Choice of Law; Consent to Jurisdiction; Waiver of Jury Trial”) are hereby incorporated
into this Amendment by this reference to the fullest extent as if the text of such provisions were
set forth in their entirety herein.



[Signatures follow on next page]




 2 









 








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



	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC., 

a Maryland corporation,
its General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Ella S. Neyland
	 	 	 	 	 
	 

	 	Name:	 	Ella S. Neyland 
	 	 	 	 	 
	 

	 	Its:	 	Executive Vice President and
Treasurer 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	UDR RIDGEWOOD (I) TOWNHOMES, LLC,

a Virginia limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	UNITED DOMINION REALTY, L.P.

a Delaware limited partnership, Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	UNITED DOMINION REALTY TRUST, INC., 

a Maryland corporation, its General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Ella S. Neyland
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	Ella S. Neyland 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its:	 	Executive Vice President and Treasurer
	 

	 	 	 	 	 	 	 	 





 3 









 






	 	 	 	 	 	 	 	 	 
	 	 	 	 	LENDER:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	GREEN PARK FINANCIAL
LIMITED PARTNERSHIP, a District of Columbia limited
partnership
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Walker & Dunlop GP, LLC, a Delaware limited
liability company, its managing general partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Maurice D. Walker
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	Maurice D. Walker 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	Senior Vice President
	 

	 	 	 	 	 	 	 	 





 4 









 






EXHIBIT A

SCHEDULE OF MORTGAGED PROPERTIES

AND INITIAL VALUATIONS




	 	 	 	 	 	 	 
	Property Name	 	Property Address	 	Initial Valuation
	 	 	 	 	 	 	 
	Alafaya Woods

	 	407 Alafaya Woods Boulevard

Oviedo, Florida 32765
	 	$	15,500,000	 
	 
	 	 	 	 	 	 
	Arbors at Lee Vista

	 	5900 Bent Pine Drive

Orlando, Florida 32822
	 	$	22,100,000	 
	 
	 	 	 	 	 	 
	Dominion West End

	 	3900 Arcadia Lane

Richmond, Virginia 23233
	 	$	22,500,000	 
	 
	 	 	 	 	 	 
	Dominion English Hills

	 	8800 Queensmere Place

Richmond, Virginia 23294
	 	$	25,600,000	 
	 
	 	 	 	 	 	 
	Dominion Great Oaks

	 	3008 Autumn Branch Lane

Ellicott City, Maryland
	 	$	16,400,000	 
	 
	 	 	 	 	 	 
	Dominion Middle Ridge

	 	12280 Creekview Circle

Woodbridge, Virginia 22192
	 	$	20,400,000	 
	 
	 	 	 	 	 	 
	Greens at Hilton Run

	 	502 Hilton Drive

Lexington Park, Maryland 20653
	 	$	19,200,000	 
	 
	 	 	 	 	 	 
	Gwinnett Square

	 	4175 Satellite Boulevard

Duluth, Georgia 30136
	 	$	11,000,000	 
	 
	 	 	 	 	 	 
	Hunter’s Ridge

	 	1400 Plantation Boulevard

Plant City, Florida 33567
	 	$	15,450,000	 
	 
	 	 	 	 	 	 
	Courthouse Green

	 	6417 Statute Street

Chesterfield, VA 23832
	 	$	11,400,00	 
	 
	 	 	 	 	 	 
	Lake Ridge

	 	3216 Bluff View Court

Lake Ridge, Virginia 22192
	 	$	13,800,000	 
	 
	 	 	 	 	 	 
	Yorkshire Downs

	 	101 Little Bay Avenue

Yorktown, Virginia 23693
	 	$	10,500,000	 
	 
	 	 	 	 	 	 
	Lakewood Place

	 	350 Lakewood Dr.

Brandon, Florida 33510
	 	$	15,770,000	 
	 
	 	 	 	 	 	 
	Los Altos

	 	311 Los Altos Way

Altamonte Springs, Florida 32714
	 	$	17,600,000	 
	 
	 	 	 	 	 	 
	Ashton at Waterford

	 	12137 Ashton Manor Way

Orlando, Florida 32828
	 	$	23,600,000	 
	 
	 	 	 	 	 	 
	Ridgewood Townhomes

	 	4101 Postgate Terrace

Silver Spring, Maryland 20906
	 	$	23,000,000	 







A-1 









 








SECOND AMENDMENT TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




     THIS SECOND AMENDMENT TO AMENDED AND RESTATED MASTER CREDIT FACILITY AGREEMENT (the
“Amendment”) is made as of the 29th day of December, 2004, by (i) UNITED DOMINION REALTY
TRUST, INC., a Maryland corporation (“UDRT”) and UDR RIDGEWOOD (I) TOWNHOMES, LLC, a
Virginia limited liability company (“UDR Ridgewood”) (individually and collectively, UDRT
and UDR Ridgewood, the “Borrower”) and (ii) GREEN PARK FINANCIAL LIMITED PARTNERSHIP, a
District of Columbia limited partnership (the “Lender”).



RECITALS




     A. The Borrower and the Lender are parties to or have joined into that certain Amended and
Restated Master Credit Facility Agreement, dated as of June 24, 2002 (as amended from time to time,
the “Master Agreement”).



     B. All of the Lender’s right, title and interest in the Master Agreement and the Loan
Documents executed in connection with the Master Agreement or the transactions contemplated by the
Master Agreement have been assigned to Fannie Mae pursuant to that certain Assignment of Collateral
Agreement and Other Loan Documents, dated as of June 24, 2002 (the “Assignment”). Fannie
Mae has not assumed any of the obligations of the Lender under the Master Agreement or the Loan
Documents as a result of the Assignment. Fannie Mae has designated the Lender as the servicer of
the Advances contemplated by the Master Agreement.



     C. The parties are executing this Amendment to reflect the modification of certain terms of
the Master Agreement as set forth herein.



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



     Section 1. Definitions. The following is hereby added to Article I of the Master Agreement
immediately preceding the definition of “Multifamily Residential Property:”




     “Multifamily REIT Preferred Interest” means a preferred equity interest: (a) owned by a
member of the Consolidated Group; (b) issued by a REIT that (i) is not a Subsidiary and (ii)
owns primarily residential apartment communities; (c) having trading privileges on a
national securities exchange or that is the subject of price quotations in the
over-the-counter market (including the NASDAQ National Market) as reported by the National
Association of Securities Dealers Automated Quotation System; and (d) not subject to
restrictions (whether contractual or under Applicable Law) on sale, transfer, assignment,
hypothecation or other limitations, in each case where such restriction would exceed 90 days
from the time of purchase, that would otherwise prevent such preferred equity interests from
being freely transferable by such member of the Consolidated Group; provided, however, that
this limitation shall not apply to preferred equity interests



   









 







that could be sold pursuant to a registration or an available exemption under the
Securities Act of 1933, as amended.



     Section 2. Financial Definitions. Section 15.01 of the Master Agreement is hereby
deleted in its entirety and restated as follows:




     “Cash Equivalents” means (a) securities issued or directly and fully guaranteed
or insured by the United States of America or any agency or instrumentality thereof
(provided that the full faith and credit of the United States of America is pledged in
support thereof) having maturities of not more than twelve months from the date of
acquisition, (b) U.S. dollar denominated time deposits and certificates of deposit of (i)
any Lender, or (ii) any domestic commercial bank of recognized standing (y) having capital
and surplus in excess of $500,000,000 and (z) whose short-term commercial paper rating from
S&P is at least A-2 (and not lower than A-3) or the equivalent thereof or from Moody’s is at
least P-2 (and not lower than P-3) or the equivalent thereof (any such bank being an
“Approved Bank”), in each case with maturities of not more than 270 days from the
date of acquisition, (c) commercial paper and variable or fixed rate notes issued by any
Approved Bank (or by the parent company thereof) or any variable rate notes issued by, or
guaranteed by, any domestic corporation rated at least A-2 (and not lower than A-3) or the
equivalent thereof by S&P or at least P-2 (and not lower than P-3) or the equivalent by
Moody’s and maturing within six months of the date of acquisition, (d) repurchase agreements
entered into by a Person with a bank or trust company (including any of the Lenders) or
recognized securities dealer having capital and surplus in excess of $500,000,000 for direct
obligations issued by or fully guaranteed by the United States of America in which such
Person shall have a perfected first priority security interest (subject to no other Liens)
and having, on the date of purchase thereof, a fair market value of at least 100% of the
amount of the repurchase obligations, (e) obligations of any State of the United States or
any political subdivision thereof, the interest with respect to which is exempt from federal
income taxation under Section 103 of the Code, having a long term rating of at least AA- or
Aa-3 by S&P or Moody’s, respectively, and maturing within three years from the date of
acquisition thereof, (f) Investments in municipal auction preferred stock (i) rated A- (or
the equivalent thereof) or better by S&P or A3 (or the equivalent thereof) or better by
Moody’s and (ii) with dividends that reset at least once every 365 days and (g) Investments,
classified in accordance with GAAP as current assets, in money market investment programs
registered under the Investment Company Act of 1940, as amended, which are administered by
reputable financial institutions having capital of at least $100,000,000 and the portfolios
of which are limited to Investments of the character described in the foregoing subdivisions
(a) through (f).




     “Consolidated Adjusted EBITDA” means for any period for the Consolidated Group
the sum of Consolidated EBITDA for such period minus a reserve equal to $62.50 per apartment
unit per quarter ($250 per apartment unit per year). Except as expressly provided otherwise,
the applicable period shall be for the single fiscal quarter ending as of the date of
determination.




     “Consolidated EBITDA” means for any period for the Consolidated Group, the sum
of Consolidated Net Income plus Consolidated Interest Expense plus all provisions



 2 









 







for any Federal, state, or other income taxes plus depreciation, amortization and other
non cash charges, in each case on a consolidated basis determined in accordance with GAAP
applied on a consistent basis, but excluding in any event gains and losses on Investments
and extraordinary gains and losses, and taxes on such excluded gains and tax deductions or
credit on account of such excluded losses. Except as expressly provided otherwise, the
applicable period shall be for the single fiscal quarter ending as of the date of
determination.




     “Consolidated Adjusted Tangible Net Worth” means at any rate:




     (i) the sum of (A) the consolidated shareholders equity of the Consolidated
Group (net of Minority Interests) plus (B) accumulated depreciation of real estate
owned to the extent reflected in the then book value of the Consolidated Assets,
minus without duplication




     (ii) the Intangible Assets of the Consolidated Group.




     “Consolidated Funded Debt” means total Debt of the Consolidated Group on a
consolidated basis determined in accordance with GAAP applied on a consistent basis.




     “Consolidated Group” means the Borrower and its consolidated Subsidiaries, as
determined in accordance with GAAP.




     “Consolidated Interest Expense” means for any period for the Consolidated
Group, all interest expense, including the amortization of debt discount and premium, the
interest component under capital leases and the implied interest component under
Securitization Transactions in each case on a consolidated basis determined in accordance
with GAAP applied on a consistent basis.




     “Consolidated Net Income” means for any period the net income of the
Consolidated Group on a consolidated basis determined in accordance with GAAP applied on a
consistent basis.




     “Consolidated Net Operating Income” means, for any period for any multifamily
asset of the Consolidated Group, an amount equal to (i) the aggregate rental and other
income from the operation of such asset during such period; minus (ii) all expenses
and other proper charges incurred in connection with the operation of such asset (including,
without limitation, real estate taxes, a 3% management fee, and bad debt expenses) during
such period; but, in any case, before payment of or provision for debt service charges for
such period, income taxes for such period, and depreciation, amortization and other non-cash
expenses for such period, all on a consolidated basis determined in accordance with GAAP on
a consistent basis. For properties held in non-wholly owned subsidiaries, Borrower’s share
of Consolidated Net Operating Income will be included.




     “Consolidated Net Operating Income from Unencumbered Pool Assets” (i) the
aggregate rental and other income from the operation of the Unencumbered Pool



 3 









 







Assets during such period; minus all expenses and other proper charges incurred in
connection with the operation of the Unencumbered Pool Assets (including, without
limitation, real estate taxes and bad debt expenses) during such period; but in any case,
before payment of provision for debt service charges for such period, income taxes for such
period, and depreciation, amortization and other non-cash expenses for such period, all on a
consolidated basis determined in accordance with GAAP on a consistent basis minus (ii) a
reserve equal to $62.50 per apartment unit per quarter ($250 per apartment unit per year)
for such period.




     “Consolidated Total Fixed Charges” means as of the last day of each fiscal
quarter for the Consolidated Group, the sum of (i) the cash portion of Consolidated Interest
Expense paid in the fiscal quarter ending on such day plus (ii) scheduled maturities of
Consolidated Funded Debt (excluding the amount by which a final installment exceeds the next
preceding principal installment thereon) in the fiscal quarter ending on such day plus (iii)
all cash dividends and distributions on preferred stock or other preferred beneficial
interests of members of the Consolidated Group paid in the fiscal quarter ending on such
day, all on a consolidated basis determined in accordance with GAAP on a consistent basis.




     “Consolidated Unsecured Debt” means, for the Consolidated Group on a
consolidated basis, all unsecured Consolidated Funded Debt.




     “Debt” of any Person means at any date, without duplication, (i) all
obligations of such Person for borrowed money, (ii) all obligations of such person evidenced
by bonds, debentures, notes or other similar instruments, (iii) all obligations of such
Person to pay deferred purchase price of property or services (other than trade accounts
payable arising in the ordinary course of business), (iv) all obligations of such Person as
lessee under capital leases, (v) all obligations of such Person to purchase securities or
other property which arise out of or in connection with the sale of the same or
substantially similar securities or property, (vi) all obligations of such person to
reimburse any bank or other person in respect of amounts payable under a letter of credit or
similar instrument (being the amount available to be drawn thereunder, whether or not then
drawn), but excluding obligations in respect of letters of credit issued for the payment of
real estate taxes, special assessments on real properties and utility deposits, in an
aggregate amount not to exceed $20,000,000, (vii) all obligations of others secured by a
Lien on any asset of such Person, whether or not such obligation is assumed by such Person,
(viii) all obligations of others Guaranteed by such Person, (ix) all obligations which in
accordance with GAAP would be shown as liabilities on a balance sheet of such Person and (x)
all obligations of such person owing under any synthetic lease, tax retention operating
lease, off balance sheet loan or similar off balance sheet financing product to which such
Person is a party, where such transaction is considered borrowed money indebtedness for tax
purposes, but classified as an operating lease in accordance with GAAP. Debt of any Person
shall include Debt of any partnership or joint venture in which such Person is a general
partner or joint venturer to the extent of such Person’s pro rata portion of the ownership
of such partnership or joint venture (except if such Debt is recourse to such Person, in
which case the greater of such Person’s pro rata portion of such Debt or the amount of the
recourse



 4 









 







portion of the Debt, shall be included as Debt of such Person).




     “Development Property” means a Real Property currently under development (or in
the pre-development phase) as a Multifamily Property.




     “Gross Asset Value” means from time to time the sum of the following amounts
(without duplication): (a) the product of (i) Consolidated Net Operating Income for the
period of two consecutive fiscal quarters most recently ended attributable to Multifamily
Properties (excluding any Properties covered by either of the immediately following clauses
(b) or (c) owned by any member of the Consolidated Group for such period minus a reserve of
$125 per apartment unit located on a Property, multiplied by (ii) 2 and divided by (iii)
8.25%; (b) the purchase price paid for any Multifamily Property acquired by any member of
the Consolidated Group during this period of four consecutive fiscal quarters most recently
ended (less any amounts paid as a purchase price adjustment, held in escrow, retained as a
contingency reserve, or other similar arrangements); (c) the current book value of any
Development Property (or Multifamily Property that was a Development Property at any time
during the period of four consecutive fiscal quarters most recently ended) owned by any
member of the Consolidated Group; (d) unrestricted cash and cash equivalents of the
Consolidated Group; (e) the value (based on the lower of cost or market price determined in
accordance with GAAP) of any raw land owned by any member of the Consolidated Group; (f) the
value (based on the lower of cost or market price determined in accordance with GAAP) of
Properties owned by any member of the Consolidated Group that are developed but that are not
Multifamily Properties; (g) the value (based on the lower of cost or market price determined
in accordance with GAAP) of (i) all promissory notes, including any secured by a Mortgage,
payable solely to any member of the Consolidated Group and the obligors of which are not
Affiliates of the Borrower (excluding any such notes where the obligor is more than 60 days
past due with respect to any payment obligation) and (ii) all marketable securities
(excluding Multifamily REIT Preferred Interests); (h) the value (based on the lower of cost
or market price determined in accordance with GAAP) of all Multifamily REIT Preferred
Interests; and (i) the Borrower’s pro rata share of the preceding items of any
Unconsolidated Affiliate of the Borrower to the extent not already included. Notwithstanding
the foregoing, the amount by which the value of the assets included under any of the
preceding clauses (d), (e), (f), (g) and (i) (excluding any promissory note secured by a
Lien on a Multifamily Property and any raw land which such Person intends to develop as a
Multifamily Property), including the Borrower’s pro rata share of any such assets included
under the preceding clause (i), would, in the aggregate, account for more than 5.0% of Gross
Asset Value shall be excluded for purposes of determining Gross Asset Value.




     “Gross Asset Value of the Unencumbered Pool” means Gross Asset Value determined
with reference only to Unencumbered Pool Assets. Notwithstanding the foregoing, the
following amounts shall be excluded from Gross Asset Value of the Unencumbered Pool: (a) the
amount by which the value of Development Properties would, in the aggregate, account for
more than 10.0% of Gross Asset Value of the Unencumbered Pool; (b) the amount by which the
value of raw land would, in the aggregate, account for more than 5.0% of Gross Asset Value
of the Unencumbered Pool;



 5 









 






(c) the amount by which the value of Properties that are developed but that are not
Multifamily Properties would, in the aggregate, account for more than 5.0% of Gross Asset
Value of the Unencumbered Pool; (d) the amount by which the value (based on the lower of
cost or market price determined in accordance with GAAP) of (i) promissory notes, including
any secured by a Mortgage, payable to any member of the Consolidated Group and the obligors
of which are not Affiliates of the Borrower, and (ii) all marketable securities (excluding
Multifamily REIT Preferred Interests) would, in the aggregate, account for more than 15.0%
of Gross Asset Value of the Unencumbered Pool; (e) the amount by which the value of
Unencumbered Pool Assets owned by Subsidiaries that are not Guarantors would, in the
aggregate, account for more than 10.0% of Gross Asset Value of the Unencumbered Pool; (f)
the amount by which the value of Unencumbered Pool Assets owned by Subsidiaries that are not
Wholly Owned Subsidiaries would, in the aggregate, account for more than 10.0% of Gross
Asset Value of the Unencumbered Pool; and (g) the amount by which the value (based on the
lower of cost or market price determined in accordance with GAAP) of promissory notes that
are not secured by a Mortgage would, in the aggregate, account for more than 5.0% of Gross
Asset Value of the Unencumbered Pool. In addition, Gross Asset Value of the Unencumbered
Pool shall be determined without including (or otherwise giving credit to) any Unencumbered
Pool Assets owned by a Subsidiary that is not a Guarantor if such Subsidiary is an obligor,
as of the relevant date of determination, with respect to any Debt (other than Secured Debt
that is Nonrecourse Indebtness and those items of Debt set forth in clauses (c) and (d) of
the definition of the term Debt). In addition to the foregoing limitations, the amount by
which the value of Development Properties, Properties that are developed but that are not
Multifamily Properties, raw land, promissory notes and marketable securities (including
Multifamily REIT Preferred Interests) would, in the aggregate, account for more than 25.0%
of Gross Asset Value of the Unencumbered Pool shall be excluded for purposes of determining
Gross Asset Value of the Unencumbered Pool. The aggregate Occupancy Rate of Multifamily
Properties and other Properties that are developed, but that are not Multifamily Properties
that are developed, but that are not Multifamily Properties, must exceed 85.0%. Any
Multifamily Property or other such Property otherwise includable in determination of Gross
Asset Value of the Unencumbered Pool, but for noncompliance with the Occupancy Rate
requirement in the preceding sentence, shall be considered to be a Development Property for
purposes of determining Gross Asset Value of the Unencumbered Pool (with the value of such
Multifamily Properties of other Properties be determined in a manner consistent with clause
(a) of the definition of Gross Asset Value).




     “Intangible Assets” of any Person means at any date the amount of (i) all write
ups (other than write-ups resulting from write-ups of assets of a going concern business
made within twelve months after the acquisition of such business) in the book value of any
asset owned by such Person and (ii) all unamortized debt discount and expense, unamortized
deferred charges, capitalized start up costs, goodwill, patents, licenses, trademarks, trade
names, copyrights, organization or developmental expenses, covenants not to compete and
other intangible items.




     “Investment” means, (x) with respect to any Person, any acquisition or
investment (whether or not of a controlling interest) by such Person, by means of any of



 6 









 







the following: (a) the purchase or other acquisition of any equity interest in another
Person, (b) a loan, advance or extension of credit to, capital contribution to, guaranty of
debt of, or purchase or other acquisition of any Debt of, another Person, including any
partnership or joint venture interest in such other Person, or (c) the purchase or other
acquisition (in one transaction or a series of transactions) of assets of another Person
that constitute the business or a division or operating unit of another Person and (y) with
respect to any Mortgaged Property or other asset, the acquisition thereof. Any binding
commitment to make an investment in any other Person, as well as any option of another
Person to require an Investment in such Person, shall constitute an Investment. Except as
expressly provided otherwise, for purposes of determining compliance with any covenant
contained in a Loan Document, the amount of any Investment shall be the amount actually
invested, without adjustment for subsequent increases or decreases in the value of such
Investment.




     “Minority Interest” means any shares of stock (or other equity interests) of
any class of a Subsidiary (other than directors’ qualifying shares as required by law) that
are not owned by the Borrower and/or one or more Wholly Owned Subsidiaries. Minority
Interests constituting preferred stock shall be valued at the voluntary or involuntary
liquidation value of such preferred stock, whichever is greater, and by valuing common stock
at the book value of the capitalized surplus applicable thereto adjusted by the foregoing
method of valuing Minority Interests in preferred stock.




     “Multifamily Property” means any Real Property on which the improvements
consist primarily of an apartment community.




     “Real Property” means any parcel of real property owned or leased (in whole or
in part) or operated by the Borrower, any Subsidiary or any Unconsolidated Affiliate of the
Borrower and which is located in a state of the United States of America or the District of
Columbia.




     “Realty” means all real property and interests therein, together with all
improvements thereon.




     “Securitization Transaction” means any financing transaction or series of
financing transactions that have been or may be entered into by a member of the Consolidated
Group pursuant to which such member of the Consolidated Group may sell, convey or otherwise
transfer to (i) a Subsidiary or affiliate (a “Securitization Subsidiary”) or (ii) any other
Person, or may grant a security interest in, any Receivables or interest therein secured by
merchandise or services financed thereby (whether such Receivables are then existing or
arising in the future) of such member of the Consolidated Group, and any assets related
thereto, including without limitation, all security interests in merchandise or services
financed thereby, the proceeds of such Receivables, and other assets which are customarily
sold or in respect of which security interests are customarily granted in connection with
securitization transactions involving such assets. (Receivables means any right of payment
from or on behalf of any obligor, whether constituting an account, chattel paper,
instrument, general intangible or otherwise, arising from the sale



 7 









 







or financing by a member of the Consolidated Group or merchandise or services, and
monies due thereunder, security in the merchandise and services financed thereby, records
related thereto, and the right to payment of any interest or finance charges and other
obligations with respect thereto, proceeds from claims on insurance policies related
thereto, any other proceeds related thereto, and any other related rights.)




     “Unconsolidated Affiliate” means, with respect to any Person, any other Person
in whom such Person holds an Investment, which Investment is accounted for in the financial
statements of such Person on an equity basis of accounting and whose financial results would
not be consolidated under GAAP with the financial results of such Person on the consolidated
financial statements of such Person.




     “Unencumbered Pool Asset” means any asset owned by a member of the Consolidated
Group or an Unconsolidated Affiliate of the Borrower and that satisfies all of the following
requirements: (a) such asset is either (i) a Multifamily Property, (ii) a Property that is
developed but that is not a Multifamily Property, (iii) a Development Property, (iv) raw
land, (v) promissory notes and (vi) marketable securities (including Multifamily REIT
Preferred Interests); (b) neither such asset, nor any interest of any member of the
Consolidated Group or Unconsolidated Affiliate therein, is subject to any Lien (other than
Permitted Liens of the types described in clauses (a) through (c) of the definition thereof)
or to any Negative Pledge; (c) if such asset is owned by Person other than the Borrower (i)
none of the Borrower’s direct or indirect ownership interest in such Person is subject to
any Lien (other than Permitted Liens of the types described in clauses (a) through (c) of
the definition thereof) or to any Negative Pledge; and (ii) the Borrower directly, or
indirectly through a Subsidiary, has the right to take the following actions without the
need to obtain consent of any Person: (x) sell, transfer or otherwise dispose of such asset
and (y) to create a Lien on such asset as security for Debt of the Borrower or such
Guarantor, as applicable; (d) if such asset is owned by a Subsidiary or Unconsolidated
Affiliate which is not a Guarantor (i) the Borrower directly, or indirectly through other
Subsidiaries, owns at least 66.67% of all outstanding Equity Interests of such Person; and
(ii) such Person is not an obligor with respect to any Debt (other than unsecured Debt of
the type set forth in clauses (c) and (d) of the definition of the term Debt); and (e) in
the case of a Property, such Property is free of all structural defects or major
architectural deficiencies (if developed), title defects, environmental conditions or other
adverse matters which, individually, or collectively, materially impair the value of such
Property.




     “Wholly Owned Subsidiary” means as to any person, any Subsidiary all of the
voting stock or other similar voting interest are owned directly or indirectly by such
Person. Unless otherwise provided, references to “Wholly Owned Subsidiary” shall mean Wholly
Owned Subsidiaries of the Borrower.



     Section 3. Consolidated Funded Debt Ratio. Section 15.06 of the Master Agreement is
hereby deleted in its entirety and replaced with the following:




     SECTION 15.06 Consolidated Funded Debt Ratio. As of the last day of each
fiscal quarter, based on the
preceding two (2) fiscal quarters, annualized, Consolidated



 8 









 







Funded Debt to Gross Asset
Value shall not exceed 60%.



     Section 4. Consolidated Total Fixed Charge Coverage Ratio. Section 15.07 of the
Master Agreement is hereby deleted in its entirety and replaced with the following:




     SECTION 15.07 Consolidated Total Fixed Charge Coverage Ratio. As of the end
of each fiscal quarter, based on the preceding two (2) fiscal quarters, annualized, the
ratio of Consolidated Adjusted EBITDA to Consolidated Total Fixed Charges for the fiscal
quarter then ended shall be not less than 1.4:1.0.



     Section 5. Consolidated Unsecured Debt to Gross Asset Value of the Unencumbered Pool.
Section 15.08 of the Master Agreement is hereby deleted in its entirety and replaced with the
following:




     SECTION 15.08 Consolidated Unsecured Debt to Gross Asset Value of the Unencumbered
Pool . As of the last day of each fiscal quarter, based on the preceding two (2) fiscal
quarters, annualized, the ratio of Consolidated Unsecured Debt to Gross Asset Value of the
Unencumbered Pool Assets shall not exceed 60%.



     Section 6. Minimum Unencumbered Interest Coverage Ratio. Section 15.09 of the Master
Agreement is hereby deleted in its entirety and replaced with the following:



     SECTION 15.09 Minimum Unencumbered Interest Coverage Ratio. The ratio of (i)
Consolidated Net Operating Income attributable to Unencumbered Pool Assets and income attributable
to promissory notes and marketable securities (including Multifamily REIT Preferred Interests)
included as Unencumbered Pool Assets, in each case for the two fiscal quarter period most recently
ending (annualized) to (ii) Consolidated Interest Expense relating to Consolidated Unsecured Debt
of the Consolidate Group, including without limitation, interest expense, if any, attributable to
such promissory notes and marketable securities (including Multifamily REIT Preferred Interest), on
a consolidated basis for such period (all of the foregoing as annualized), to be less than 1.75 to
1.0 at the end of any fiscal quarter.



     Section 7. Capitalized Terms. All capitalized terms used in this Amendment which are
not specifically defined herein shall have the respective meanings set forth in the Master
Agreement.



     Section 8. Full Force and Effect. Except as expressly modified by this Amendment, all
terms and conditions of the Master Agreement shall continue in full force and effect.



     Section 9. Counterparts. This Amendment may be executed in counterparts by the
parties hereto, and each such counterpart shall be considered an original and all such counterparts
shall constitute one and the same instrument.



     Section 10. Applicable Law. The provisions of Section 23.06 of the Master Agreement
(entitled “Choice of Law; Consent to Jurisdiction; Waiver of Jury Trial”) are hereby incorporated
into this Amendment by this reference to the fullest extent as if the text of such provisions were
set forth in their entirety herein.



 9 









 





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



	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC., 
a Maryland corporation
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Rodney A. Neuheardt
	 	 	 	 	 
	 

	 	Name:	 	Rodney A. Neuheardt
	 	 	 	 	 
	 

	 	Its:	 	Senior Vice President - Finance and
Treasurer
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	UDR RIDGEWOOD (I) TOWNHOMES, LLC,

a Virginia limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	UNITED DOMINION REALTY, L.P.

a Delaware limited partnership, Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	UNITED DOMINION REALTY TRUST, INC., 

a Maryland corporation, its General Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Rodney A. Neuheardt
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	Rodney A. Neuheardt 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its:	 	Senior Vice President - Finance and
Treasurer
	 

	 	 	 	 	 	 	 	 





 10 









 






	 	 	 	 	 	 	 	 	 
	 	 	 	 	LENDER:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	GREEN PARK FINANCIAL
LIMITED PARTNERSHIP, 
a District of Columbia limited
partnership
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Walker & Dunlop GP, LLC, a Delaware limited
liability company, its managing general partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Maurice D. Walker
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	Maurice D. Walker 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	Senior Vice President
	 

	 	 	 	 	 	 	 	 






 11 









 








THIRD AMENDMENT TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




     THIS THIRD AMENDMENT TO AMENDED AND RESTATED MASTER CREDIT FACILITY AGREEMENT (the
“Amendment”) is made as of the 18th day of March, 2005, by (i) UNITED DOMINION
REALTY TRUST, INC., a Maryland corporation (“UDRT”), UDR RIDGEWOOD (I) TOWNHOMES, LLC, a
Virginia limited liability company (“UDR Ridgewood”), and UDR WESTERN RESIDENTIAL, INC., a
Virginia corporation (“UDR Western”) (individually and collectively, UDRT, UDR Ridgewood
and UDR Western, the “Borrower”) and (ii) GREEN PARK FINANCIAL LIMITED PARTNERSHIP, a
District of Columbia limited partnership (the “Lender”).



RECITALS




     A. The Borrower and the Lender are parties to or have joined into that certain Amended and
Restated Master Credit Facility Agreement, dated as of June 24, 2002 (as amended from time to time,
the “Master Agreement”).



     B. All of the Lender’s right, title and interest in the Master Agreement and the Loan
Documents executed in connection with the Master Agreement or the transactions contemplated by the
Master Agreement have been assigned to Fannie Mae pursuant to that certain Assignment of Collateral
Agreement and Other Loan Documents, dated as of June 24, 2002 (the “Assignment”). Fannie
Mae has not assumed any of the obligations of the Lender under the Master Agreement or the Loan
Documents as a result of the Assignment. Fannie Mae has designated the Lender as the servicer of
the Advances contemplated by the Master Agreement.



     C. The parties are executing this Amendment to reflect (i) the release from the Collateral
Pool of the Mortgaged Property commonly known as Ridgewood Townhomes owned by UDR Ridgewood, and
(ii) the addition to the Collateral Pool of the Mortgaged Property commonly known as Sierra Palms
owned by UDR Western.



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



     Section 1. Release of Mortgaged Property. The Mortgaged Property commonly known as
Ridgewood Townhomes owned by UDR Ridgewood is hereby released from the Collateral Pool under the
Master Agreement and Loan Documents. UDR Ridgewood is hereby released from its obligations under
the Master Agreement and Loan Documents.



     Section 2. Addition of Mortgaged Property. The Mortgaged Property commonly known as
Sierra Palms owned by UDR Western is hereby added to the Collateral Pool under the Master
Agreement.



     Section 3. Exhibit A. Exhibit A to the Master Agreement is hereby deleted in
its entirety and replaced with the Exhibit A attached to this Amendment.



   









 





     Section 4. Capitalized Terms. All capitalized terms used in this Amendment which are
not specifically defined herein shall have the respective meanings set forth in the Master
Agreement.



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



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



     Section 7. Applicable Law. The provisions of Section 23.06 of the Master Agreement
(entitled “Choice of Law; Consent to Jurisdiction; Waiver of Jury Trial”) are hereby incorporated
into this Amendment by this reference to the fullest extent as if the text of such provisions were
set forth in their entirety herein.



[Signatures follow on next page]




 2 









 





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



	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC., 
a Maryland corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Rodney A. Neuheardt	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Rodney A. Neuheardt	 	 
	 	 	Title:	 	Senior Vice President—Finance & Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	UDR RIDGEWOOD (I) TOWNHOMES, LLC,

a Virginia limited liability company
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	HARDING PARK, INC., a Delaware corporation,
its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ W. Mark Wallis	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	W. Mark Wallis	 	 
	 

	 	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	UDR WESTERN RESIDENTIAL, INC.,

a Virginia corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Rodney A. Neuheardt	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Rodney A. Neuheardt	 	 
	 	 	Title:	 	Senior Vice President—Finance & Treasurer	 	 






 3 









 






	 	 	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GREEN PARK FINANCIAL
LIMITED PARTNERSHIP, 
a District of Columbia limited
partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Walker & Dunlop GP, LLC, a Delaware limited
liability company, its managing general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Maurice D. Walker	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Maurice D. Walker	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	Senior Vice President	 	 
	 

	 	 	 	 	 	 	 	 





 4 









 






EXHIBIT A

SCHEDULE OF MORTGAGED PROPERTIES

AND INITIAL VALUATIONS




	 	 	 	 	 	 	 
	Property Name	 	Property Address	 	Initial Valuation
	Alafaya Woods

	 	407 Alafaya Woods Boulevard

Oviedo, Florida 32765
	 	$	15,500,000	 
	 
	 	 	 	 	 	 
	Arbors at Lee Vista

	 	5900 Bent Pine Drive

Orlando, Florida 32822
	 	$	22,100,000	 
	 
	 	 	 	 	 	 
	Dominion West End

	 	3900 Arcadia Lane

Richmond, Virginia 23233
	 	$	22,500,000	 
	 
	 	 	 	 	 	 
	Dominion English Hills

	 	8800 Queensmere Place

Richmond, Virginia 23294
	 	$	25,600,000	 
	 
	 	 	 	 	 	 
	Dominion Great Oaks

	 	3008 Autumn Branch Lane

Ellicott City, Maryland
	 	$	16,400,000	 
	 
	 	 	 	 	 	 
	Dominion Middle Ridge

	 	12280 Creekview Circle

Woodbridge, Virginia 22192
	 	$	20,400,000	 
	 
	 	 	 	 	 	 
	Greens at Hilton Run

	 	502 Hilton Drive

Lexington Park, Maryland 20653
	 	$	19,200,000	 
	 
	 	 	 	 	 	 
	Gwinnett Square

	 	4175 Satellite Boulevard

Duluth, Georgia 30136
	 	$	11,000,000	 
	 
	 	 	 	 	 	 
	Hunter’s Ridge

	 	1400 Plantation Boulevard

Plant City, Florida 33567
	 	$	15,450,000	 
	 
	 	 	 	 	 	 
	Courthouse Green

	 	6417 Statute Street

Chesterfield, VA 23832
	 	$	11,400,00	 
	 
	 	 	 	 	 	 
	Lake Ridge

	 	3216 Bluff View Court

Lake Ridge, Virginia 22192
	 	$	13,800,000	 
	 
	 	 	 	 	 	 
	Yorkshire Downs

	 	101 Little Bay Avenue

Yorktown, Virginia 23693
	 	$	10,500,000	 
	 
	 	 	 	 	 	 
	Lakewood Place

	 	350 Lakewood Dr.

Brandon, Florida 33510
	 	$	15,770,000	 
	 
	 	 	 	 	 	 
	Los Altos

	 	311 Los Altos Way

Altamonte Springs, Florida 32714
	 	$	17,600,000	 
	 
	 	 	 	 	 	 
	Ashton at Waterford

	 	12137 Ashton Manor Way

Orlando, Florida 32828
	 	$	23,600,000	 
	 
	 	 	 	 	 	 
	Sierra Palms

	 	1100 North Priest Drive

Chandler, Arizona 85226
	 	$	27,440,000	 







A-1 









 








FOURTH AMENDMENT TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




     THIS FOURTH AMENDMENT TO AMENDED AND RESTATED MASTER CREDIT FACILITY AGREEMENT (the
“Amendment”) is effective as of the 30th day of September, 2005, by (i) UNITED DOMINION
REALTY TRUST, INC., a Maryland corporation (“UDRT”), and UDR WESTERN RESIDENTIAL, INC., a
Virginia corporation (“UDR Western”) (individually and collectively, UDRT and UDR Western,
the “Borrower”) and (ii) GREEN PARK FINANCIAL LIMITED PARTNERSHIP, a District of Columbia
limited partnership (the “Lender”).



RECITALS




     A. The Borrower and the Lender are parties to or have joined into that certain Amended and
Restated Master Credit Facility Agreement, dated as of June 24, 2002 (as amended from time to time,
the “Master Agreement”).



     B. All of the Lender’s right, title and interest in the Master Agreement and the Loan
Documents executed in connection with the Master Agreement or the transactions contemplated by the
Master Agreement have been assigned to Fannie Mae pursuant to that certain Assignment of Collateral
Agreement and Other Loan Documents, dated as of June 24, 2002 (the “Assignment”). Fannie
Mae has not assumed any of the obligations of the Lender under the Master Agreement or the Loan
Documents as a result of the Assignment. Fannie Mae has designated the Lender as the servicer of
the Advances contemplated by the Master Agreement.



     C. The parties are executing this Amendment to reflect the modification of certain terms of
the Master Agreement as set forth herein.



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



     Section 1. Financial Definitions. Section 15.01 of the Master Agreement is hereby
deleted in its entirety and restated as follows:




     “1031 Property” means property held by a “qualified intermediary” in connection
with the sale of such property by the Borrower, a Subsidiary or Unconsolidated Affiliate
pursuant to, and qualifying for tax treatment under, Section 1031 of the Internal Revenue
Code.




     “Condominium Property” means a Multifamily Property that has been converted
into residential condominium units for the purpose of sale. For purposes of this definition
and the definition of “Condominium Property Value” a Multifamily Property will be deemed
“converted” into residential condominium units once both of the following have occurred: (a)
notice of the conversion has been sent to the tenants of such Property; and (b) a
declaration of condominium or other similar document is filed with the applicable
Governmental Authority.



   









 






     “Condominium Property Value” means the sum of the following: (a) the
Consolidated Net Operating Income attributable to such Property for the two quarter period
annualized ending immediately prior to such conversion divided by 7.50%, plus (b) the cost
of capital improvements made to such Property in connection with such conversion not to
exceed 35% of the amount determined in accordance with the preceding clause (a), minus (c)
90% of the actual contractual sales price of each individual condominium unit sale prior to
any deductions for commissions, fees and any other expenses; provided, however, no value
will be attributed to such a Condominium Property 24 months after its conversion. In
addition, no value shall be attributable to a Condominium Property at any time following the
earlier of (x) all condominium units of such Property having been sold or otherwise
conveyed, (y) the management of such Property having been turned over to such Property’s
homeowners’ association and (z) less than 10% of the units remain unsold.




     “Consolidated Adjusted EBITDA” means for any period the Consolidated Group the
sum of Consolidated EBITDA for such period minus a reserve equal to $62.50 per apartment
unit per quarter ($250 per apartment unit per year). Except as expressly provided otherwise,
the applicable period shall be for the single fiscal quarter ending as of the date of
determination.




     “Consolidated Adjusted Tangible Net Worth” means at any rate:




     (iii) the sum of (A) the consolidated shareholders equity of the Consolidated
Group (net of Minority Interests) plus (B) accumulated depreciation of real estate
owned to the extent reflected in the then book value of the Consolidated Assets,
minus without duplication




     (iv) the Intangible Assets of the Consolidated Group.




     “Consolidated Assets” means the assets of the members of the Consolidated Group
determined in accordance with GAAP on a consolidated basis.




     “Consolidated EBITDA” means for any period for the Consolidated Group,
Consolidated Net Income (including Consolidated Net Income attributable to units of
Condominium Properties prior to the sale thereof) excluding the following amounts (but only
to the extent included in determining Consolidated Net Income for such period) (a)
Consolidated Interest Expense; (b) all provisions for any Federal, state or other income
taxes; (c) depreciation, amortization and other non-cash charges; (d) gains and losses on
Investments and extraordinary gains and losses; (e) taxes on such excluded gains and tax
deductions or credits on account of such excluded losses, in each case on a consolidated
basis determined in accordance with GAAP; and (f) to the extent not already included in the
immediately preceding clauses (b) through (e), the Borrower’s pro rata share of such items
of each Unconsolidated Affiliate of the Borrower for such period. Consolidated EBITDA shall
include gain or loss, in either case, realized on the sale of any portion of a Condominium
Property (without duplication of income on condominium units).



 2 









 






     “Consolidated Funded Debt” means total Debt of the Consolidated Group on a
consolidated basis determined in accordance with GAAP (excluding (i) Debt consisting of
contingent liabilities retained by the Borrower related to the sale of Hunting Ridge,
Woodside and Twin Coves in an aggregate amount not to exceed $20,000,000 and (ii) the
aggregate amount, not to exceed $20,000,000, available to be drawn under letters of credit
issued in respect of normal operating expenses of such Person) plus the Borrower’s
pro rata share of the Debt of any Unconsolidated Affiliate of the Borrower.




     “Consolidated Group” means the Borrower and its consolidated Subsidiaries, as
determined in accordance with GAAP.




     “Consolidated Interest Expense” means for any period for the Consolidated
Group, (a) all interest expense, including the amortization of debt discount and premium,
the interest component under capital leases and capitalized interest expense (other than
capitalized interest funded from a construction loan interest reserve account held by
another lender and not included in the calculation of cash for balance sheet reporting
purposes), in each case on a consolidated basis determined in accordance with GAAP
plus (b) to the extent not already included in the foregoing clause (a), the
Borrower’s pro rata share of all interest expense (determined in a manner consistent with
this definition of Consolidated Interest Expense) for such period of Unconsolidated
Affiliates of the Borrower.




     “Consolidated Net Income” means for any period, the net income of the
Consolidated Group on a consolidated basis determined in accordance with GAAP, including the
Borrower’s pro rata share of the net income of each Unconsolidated Affiliate of the Borrower
for such period.




     “Consolidated Net Operating Income” means, for any period for any Multifamily
Property owned by a member of the Consolidated Group or an Unconsolidated Affiliate, an
amount equal to (a) the aggregate rental and other income from the operation of such
Multifamily Property during such period; minus (b) all expenses and other proper
charges incurred in connection with the operation of such Multifamily Property (including,
without limitation, real estate taxes and bad debt expenses) during such period and an
imputed management fee in the amount of 3.0% of the aggregate rents received for such
Multifamily Property during such period; but, in any case, before payment of or provision
for debt service charges for such period, income taxes for such period, and depreciation,
amortization and other non-cash expenses for such period, all on a consolidated basis
determined in accordance with GAAP. For purposes of determining Consolidated Net Operating
Income, only the Borrower’s pro rata share of the Consolidated Net Operating Income of any
such Property owned by an Unconsolidated Affiliate of the Borrower shall be used.




     “Consolidated Secured Debt” means, as of any given date, all Consolidated
Funded Debt that is secured in any manner by any Lien.



 3 









 






     “Consolidated Total Fixed Charges” means for any period, the sum of (a) the
cash portion of Consolidated Interest Expense paid during such period plus (b)
regularly scheduled principal payments on Consolidated Funded Debt during such period
(excluding any balloon, bullet or similar principal payment payable on any Consolidated
Funded Debt which repays such Consolidated Funded Debt in full) plus (c) all cash
dividends and distributions on Preferred Equity Interests of members of the Consolidated
Group paid during such period, all on a consolidated basis determined in accordance with
GAAP.




     “Consolidated Unsecured Debt” means, as of a given date, all Consolidated
Funded Debt that is not Consolidated Secured Debt.




     “Debt” of any Person means at any date, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such Person evidenced
by bonds, debentures, notes or other similar instruments, (c) all obligations of such Person
to pay deferred purchase price of property or services (other than trade accounts payable
arising in the ordinary course of business), (d) all Capitalized Lease Obligations of such
Person; (e) all obligations of such Person to purchase securities or other property which
arise out of or in connection with the sale of the same or substantially similar securities
or property; (f) all obligations of such Person to reimburse any bank or other person in
respect of amounts payable under a letter of credit or similar instrument (being the amount
available to be drawn thereunder, whether or not then drawn); (g) all obligations of others
secured by a Lien on any asset of such Person, whether or not such obligation is assumed by
such Person; (h) all obligations of others Guaranteed by such Person; (i) all obligations
which in accordance with GAAP would be shown as liabilities on a balance sheet of such
Person or which arise in connection with forward equity transactions; and (j) all
obligations of such Person owning under any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing product to which such Person
is a party, where such transaction is considered borrowed money indebtedness for tax
purposes, but is classified as an operating lease in accordance with GAAP. Debt of any
Person shall include Debt of any partnership or joint venture in which such Person is a
general partner or joint venturer to the extent of such Person’s pro rata share of the
ownership of such partnership or joint venture (except if such Debt is recourse to such
Person, in which case the greater of such Person’s pro rata portion of such Debt or the
amount of the recourse portion of the Debt, shall be included as Debt of such Person). All
Loans and Letter of Credit Liabilities shall constitute Debt of the Borrower.




     “Development Property” means (i) a Property currently under development (or in
the pre-development phase) as a Multifamily Property and/or (ii) a Condominium Property.




     “Gross Asset Value” means from time to time the sum of the following amounts
(without duplication): (a) the product of (i) Consolidated Net Operating Income for the
period of two consecutive fiscal quarters most recently ended attributable to Multifamily
Properties (excluding any Properties covered by either of the immediately following



 4 









 







clauses (b) or (c) owned by any member of the Consolidated Group for such period,
multiplied by (ii) 2 and divided by (iii) 7.50%; (b) the purchase price paid for any
Multifamily Property acquired by any member of the Consolidated Group during the period of
six consecutive fiscal quarters most recently ended (less any amounts paid as a purchase
price adjustment, held in escrow, retained as a contingency reserve, or other similar
arrangements); (c)(i) the Condominium Property Value of all Condominium Properties owned by
any member of the Consolidated Group, (ii) the current book value of any other Development
Property (or Multifamily Property that was a Development Property at any time during the
period of six consecutive fiscal quarters most recently ended) owned by any member of the
Consolidated Group and (iii) the Renovation Property Value of all Renovation Properties
owned by any member of the Consolidated Group; (d) unrestricted cash and cash equivalents of
the Consolidated Group; (e) the value (based on the lower of cost or market price
determined in accordance with GAAP) of any raw land owned by any member of the Consolidated
Group; (f) the value (based on the lower of cost or market price determined in accordance
with GAAP) of Properties owned by any member of the Consolidated Group that are developed
but that are not Multifamily Properties; (g) the value (based on the lower of cost or market
price determined in accordance with GAAP) of all Multifamily REIT Preferred Interests; (h)
the value (based on the lower of cost market price determined in accordance with GAAP) of
(i) all promissory notes, including any secured by a Mortgage, payable solely to any member
of the Consolidated Group and the obligors of which are not Affiliates of the Borrower
(excluding any such note where the obligor is more than 60 days past due with respect to any
payment obligation) and (ii) all marketable securities (excluding Marketable Multifamily
REIT Preferred Interests); and (i) the Borrower’s pro rata share of the preceding items of
any Unconsolidated Affiliate of the Borrower to the extent not already included.
Notwithstanding the foregoing, any determination of Gross Asset Value shall exclude any
Investments held by the Borrower or any Subsidiary.




     “Gross Asset Value of the Unencumbered Pool” means Gross Asset Value determined
with reference only to Unencumbered Pool Assets. Notwithstanding the foregoing, the
following amounts shall be excluded from Gross Asset Value of the Unencumbered Pool: (a)
the amount by which the value of Unencumbered Pool Assets owned by Subsidiaries that are not
Guarantors would, in the aggregate, account for more than 20.0% of Gross Asset Value of the
Unencumbered Pool; (b) the amount by which the value of the Unencumbered Pool Assets owned
by Subsidiaries are not Wholly Owned Subsidiaries would, in the aggregate, account for more
than 20.0% of Gross Asset Value of the Unencumbered Pool; and (c) the amount by which the
value of Unencumbered Pool Assets that are Investments and other assets would, in the
aggregate, account for more than 20.0% of the Gross Asset Value of the Unencumbered Pool;
provided, the limitations contained in the immediately preceding clauses (a) and (b) shall
not apply to 1031 Properties and the limitations contained in the immediately preceding
clause (c) shall not apply to promissory notes secured by first Mortgages. The aggregate
Occupancy Rate of Multifamily Properties and other Properties that are developed, but that
are not Multifamily Properties, must exceed 80.0%.




     “Intangible Assets” of any Person means at any date the amount of (i) all write



 5 









 







ups (other than write-ups resulting from write-ups of assets of a going concern
business made within twelve months after the acquisition of such business) in the book value
of any asset owned by such Person and (ii) all unamortized debt discount and expense,
unamortized deferred charges, capitalized start up costs, goodwill, patents, licenses,
trademarks, trade names, copyrights, organization or developmental expenses, covenants not
to compete and other intangible items.




     “Investment” means, (x) with respect to any Person, any acquisition or
investment (whether or not of a controlling interest) by such Person, by means of any of the
following: (a) the purchase or other acquisition of any equity interest in another Person,
(b) a loan, advance or extension of credit to, capital contribution to, guaranty of debt of,
or purchase or other acquisition of any Debt of, another Person, including any partnership
or joint venture interest in such other Person, or (c) the purchase or other acquisition (in
one transaction or a series of transactions) of assets of another Person that constitute the
business or a division or operating unit of another Person and (y) with respect to any
Mortgaged Property or other asset, the acquisition thereof. Any binding commitment to make
an investment in any other Person, as well as any option of another Person to require an
Investment in such Person, shall constitute an Investment. Except as expressly provided
otherwise, for purposes of determining compliance with any covenant contained in a Loan
Document, the amount of any Investment shall be the amount actually invested, without
adjustment for subsequent increases or decreases in the value of such Investment.




     “Marketable Multifamily REIT Preferred Interest” means a Multifamily REIT
Preferred Equity Interest: (a) having trading privileges on a national securities exchange
or that is subject to price quotations in the over-the-counter market and (b) not subject to
restrictions on the sale, transfer, assignment, hypothecation or other limitations, in each
case where such restriction would exceed 90 days from the time of purchase, that would
(whether contractual or under Applicable Law) otherwise prevent such Preferred Equity
Interest from being freely transferable by such member of the Consolidated Group; provided,
however, that this limitation shall not apply to Preferred Equity Interests that could be
sold pursuant to an available exemption under the Securities Act.




     “Multifamily REIT Preferred Interest” means any Preferred Equity Interest: (a)
owned by a member of the Consolidated Group and (b) issued by a REIT that (i) is not a
Subsidiary and (ii) owns primarily apartment communities.




     “Minority Interest” means any shares of stock (or other equity interests) of
any class of a Subsidiary (other than directors’ qualifying shares as required by law) that
are not owned by the Borrower and/or one or more Wholly Owned Subsidiaries. Minority
Interests constituting preferred stock shall be valued at the voluntary or involuntary
liquidation value of such preferred stock, whichever is greater, and by valuing common stock
at the book value of the capitalized surplus applicable thereto adjusted by the foregoing
method of valuing Minority Interests in preferred stock.




     “Multifamily Property” means any Real Property on which the improvements



 6 









 







consist primarily of an apartment community.




     “Real Property” means any parcel of real property owned or leased (in whole or
in part) or operated by the Borrower, any Subsidiary or any Unconsolidated Affiliate of the
Borrower and which is located in a state of the United States of America or the District of
Columbia.




     “Realty” means all real property and interests therein, together with all
improvements thereon.




     “Renovation Property” mean a Property on which the existing building or other
improvements or a portion thereof are undergoing renovation and redevelopment that will
either (a) disrupt the occupancy of at least 30% of the square footage of such Property or
(b) temporarily reduce the Consolidated Net Operating Income attributable to such Property
by more that 30% as compared to the immediately preceding comparable prior period. A
Property shall cease to be a Renovation Property upon the earliest to occur of (i) all
improvements (other than tenant improvements on unoccupied space) related to the
redevelopment of such Property having been substantially completed and (ii) once such
Property has achieved an Occupancy Rate of 80.0% or more.




     “Renovation Property Value” means for a Renovation Property, the sum of the
following: (a) the Consolidated Net Operating Income attributable to such Property for the
two quarter period annualized ending immediately prior to the commencement of such
renovation and redevelopment divided by 7.50%, plus (b) the cost of capital improvements
made to such Property in connection with such renovation and redevelopment not to exceed 35%
of the amount determined in accordance with the preceding clause (a); provided, however, (i)
the value of (a) plus (b) above does not exceed 80% of the Borrower’s good faith
determination of the pro forma Consolidated Net Operating Income of such Renovation Property
(assuming the completion of all applicable renovation and redevelopment) divided by 7.50%
and (ii) 18 months following the commencement of such renovation and redevelopment such
property will cease to be a Renovation Property.




     “Unconsolidated Affiliate” means, with respect to any Person, any other Person
in whom such Person holds an Investment, which Investment is accounted for in the financial
statements of such Person on an equity basis of accounting and whose financial results would
not be consolidated under GAAP with the financial results of such Person on the consolidated
financial statements of such Person.




     “Unencumbered Pool Asset” means any asset owned by a member of the Consolidated
Group or an Unconsolidated Affiliate of the Borrower and that satisfies all of the following
requirements: (a) such asset is either (i) a Multifamily Property, (ii) a Property that is
developed but that is not a Multifamily Property, (iii) a Development Property or a
Renovation Property, (iv) raw land, (v) promissory notes (vi) marketable securities
(including Marketable Multifamily REIT Preferred Interests) and (vii) Multifamily REIT
Preferred Interests; (b) neither such asset, nor any interest of any



 7 









 







member of the Consolidated Group or Unconsolidated Affiliate therein, is subject to any
Lien (other than Permitted Liens of the types described in clauses (a) through (c) of the
definition thereof) or to any Negative Pledge; (c) if such asset is owned by Person other
than the Borrower (i) none of the Borrower’s direct or indirect ownership interest in such
Person is subject to any Lien (other than Permitted Liens of the types described in clauses
(a) through (c) of the definition thereof) or to any Negative Pledge; and (ii) the Borrower
directly, or indirectly through a Subsidiary, has the right to take the following actions
without the need to obtain the consent of any Person: (x) sell, transfer or otherwise
dispose of such asset and (y) to create a Lien on such asset as security for Debt of the
Borrower or such Guarantor, as applicable; (d) if such asset is owned by a Subsidiary or
Unconsolidated Affiliate which is not a Guarantor (i) the Borrower directly, or indirectly
through other Subsidiaries, owns at least 51.0% of all outstanding Equity Interests of such
Person; and (ii) such Person is not an obligor with respect to any Debt (other than
unsecured Debt of the type set forth in clauses (c) and (d) of the definition of the term
Debt), provided however, 1031 Properties will not be subject to the limitations contained in
subclauses (i) and (ii) of this clause (d); and (e) in the case of a Property, such Property
is free of all structural defects or major architectural deficiencies (if developed), title
defects, environmental conditions or other adverse matters which, individually or
collectively, materially impair the value of such Property.




     “Wholly Owned Subsidiary” means as to any person, any Subsidiary all of the
voting stock or other similar voting interest are owned directly or indirectly by such
Person. Unless otherwise provided, references to “Wholly Owned Subsidiary” shall mean Wholly
Owned Subsidiaries of the Borrower.



     Section 2. Consolidated Adjusted Tangible Net Worth. Section 15.05 of the Master
Agreement is hereby deleted in its entirety and replaced with the following:




     “SECTION 15.05 Consolidated Adjusted Tangible Net Worth. Consolidated
Adjusted Tangible Net Worth will not at any time be less than $1,200,000,000.”



     Section 3. Consolidated Funded Debt Ratio. Section 15.06 of the Master Agreement is
hereby deleted in its entirety and replaced with the following:




     “SECTION 15.06 Consolidated Funded Debt Ratio. The ratio of (i) Consolidated
Funded Debt to (ii) Gross Asset Value, will not exceed 0.625 to 1.0 at any time; provided,
however, that if such ratio is greater than 0.625 to 1.0 but less than 0.675 to 1.0, then
such failure to comply with the foregoing covenant shall not constitute a Default or Event
of Default so long as such ratio ceases to exceed 0.625 to 1.00 within 180 days following
the date such ratio first exceeded 0.625 to 1.00.”



     Section 4. Consolidated Unsecured Debt to Gross Asset Value of the Unencumbered Pool.
Section 15.08 of the Master Agreement is hereby deleted in its entirety
and replaced with the following:




     “SECTION 15.08 Consolidated Unsecured Debt to Gross Asset Value of the



 8 









 







Unencumbered Pool. The ratio of (i) Gross Asset Value of the Unencumbered Pool to (ii)
Consolidated Unsecured Debt, will not be less than 1.50 to 1.00 at the end of any fiscal
quarter.”



     Section 5. Consolidated Unencumbered Interest Coverage Ratio. Section 15.09 of the
Master Agreement is hereby deleted in its entirety and replaced with the following:




     “[INTENTIONALLY DELETED]”



     Section 6. Capitalized Terms. All capitalized terms used in this Amendment which are
not specifically defined herein shall have the respective meanings set forth in the Master
Agreement.



     Section 7. Full Force and Effect. Except as expressly modified by this Amendment, all
terms and conditions of the Master Agreement shall continue in full force and effect.



     Section 8. Counterparts. This Amendment may be executed in counterparts by the
parties hereto, and each such counterpart shall be considered an original and all such counterparts
shall constitute one and the same instrument.



     Section 9. Applicable Law. The provisions of Section 23.06 of the Master Agreement
(entitled “Choice of Law; Consent to Jurisdiction; Waiver of Jury Trial”) are hereby incorporated
into this Amendment by this reference to the fullest extent as if the text of such provisions were
set forth in their entirety herein.



[Signatures follow on next page]




 9 









 





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



	 	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC., 
a Maryland corporation
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Rodney A. Neuheardt
	 	 	 	 	 
	 	 	Name:	 	Rodney A. Neuheardt
	 	 	Title:	 	Senior Vice President—Finance & Treasurer
	 

	 	 	 	 	 	 
	 	 	UDR WESTERN RESIDENTIAL, INC.,

a Virginia corporation
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Rodney A. Neuheardt
	 	 	 	 	 
	 	 	Name:	 	Rodney A. Neuheardt
	 	 	Title:	 	Senior Vice President—Finance & Treasurer






 10 









 






	 	 	 	 	 	 	 
	 	 	LENDER:
	 
	 	 	 	 	 	 
	 	 	GREEN PARK FINANCIAL
LIMITED PARTNERSHIP, 
a District of Columbia limited
partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Walker & Dunlop GP, LLC, a Delaware limited
liability company, its managing general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Christopher Lynch
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Christopher Lynch
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	SVP & CFO
	 

	 	 	 	 	 	 






 11 









 








FIFTH AMENDMENT TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




     THIS FIFTH AMENDMENT TO AMENDED AND RESTATED MASTER CREDIT FACILITY AGREEMENT (the
“Amendment”) is effective as of the 4th day of May, 2006, by (i) UNITED DOMINION REALTY
TRUST, INC., a Maryland corporation (“UDRT”), and UDR WESTERN RESIDENTIAL, INC., a Virginia
corporation (“UDR Western”) (individually and collectively, UDRT and UDR Western, the
“Borrower”) and (ii) GREEN PARK FINANCIAL LIMITED PARTNERSHIP, a District of Columbia
limited partnership (the “Lender”).



RECITALS




     A. The Borrower and the Lender are parties to or have joined into that certain Amended and
Restated Master Credit Facility Agreement, dated as of June 24, 2002 (as amended from time to time,
the “Master Agreement”).



     B. All of the Lender’s right, title and interest in the Master Agreement and the Loan
Documents executed in connection with the Master Agreement or the transactions contemplated by the
Master Agreement have been assigned to Fannie Mae pursuant to that certain Assignment of Collateral
Agreement and Other Loan Documents, dated as of June 24, 2002 (the “Assignment”). Fannie
Mae has not assumed any of the obligations of the Lender under the Master Agreement or the Loan
Documents as a result of the Assignment. Fannie Mae has designated the Lender as the servicer of
the Advances contemplated by the Master Agreement.



     C. The parties are executing this Amendment to reflect the release from the Collateral Pool of
the Mortgaged Property commonly known as Sierra Palms.



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



     Section 1. Release of Mortgaged Property. The Mortgaged Property commonly known as
Sierra Palms is hereby released from the Collateral Pool under the Master Agreement and Loan
Documents.



     Section 2. Exhibit A. Exhibit A to the Master Agreement is hereby deleted in
its entirety and replaced with the Exhibit A attached to this Amendment.



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



     Section 4. Full Force and Effect. Except as expressly modified by this Amendment, all
terms and conditions of the Master Agreement shall continue in full force and effect.



     Section 5. Counterparts. This Amendment may be executed in counterparts by the



   









 







parties hereto, and each such counterpart shall be considered an original and all such
counterparts shall constitute one and the same instrument.



     Section 6. Applicable Law. The provisions of Section 23.06 of the Master Agreement
(entitled “Choice of Law; Consent to Jurisdiction; Waiver of Jury Trial”) are hereby incorporated
into this Amendment by this reference to the fullest extent as if the text of such provisions were
set forth in their entirety herein.



[Signatures follow on next page]




 2 









 





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



	 	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC., 
a Maryland corporation
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Justin R. Sato
	 	 	 	 	 
	 	 	Name:	 	Justin R. Sato
	 	 	Title:	 	Vice President
	 

	 	 	 	 	 	 
	 	 	UDR WESTERN RESIDENTIAL, INC.,

a Virginia corporation
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Justin R. Sato
	 	 	 	 	 
	 	 	Name:	 	Justin R. Sato
	 	 	Title:	 	Vice President






 3 









 






	 	 	 	 	 	 	 
	 	 	LENDER:
	 
	 	 	 	 	 	 
	 	 	GREEN PARK FINANCIAL
LIMITED PARTNERSHIP, 
a District of Columbia limited
partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Walker & Dunlop GP, LLC, a Delaware limited
liability company, its managing general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Sandra G. Hayward
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Sandra G. Hayward
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	Vice President
	 

	 	 	 	 	 	 






 4 









 








EXHIBIT A

SCHEDULE OF MORTGAGED PROPERTIES

AND INITIAL VALUATIONS




	 	 	 	 	 	 	 
	Property Name	 	Property Address	 	Initial Valuation
	Alafaya Woods

	 	407 Alafaya Woods Boulevard

Oviedo, Florida 32765
	 	$	15,500,000	 
	 
	 	 	 	 	 	 
	Arbors at Lee Vista

	 	5900 Bent Pine Drive

Orlando, Florida 32822
	 	$	22,100,000	 
	 
	 	 	 	 	 	 
	Dominion West End

	 	3900 Arcadia Lane

Richmond, Virginia 23233
	 	$	22,500,000	 
	 
	 	 	 	 	 	 
	Dominion English Hills

	 	8800 Queensmere Place

Richmond, Virginia 23294
	 	$	25,600,000	 
	 
	 	 	 	 	 	 
	Dominion Great Oaks

	 	3008 Autumn Branch Lane

Ellicott City, Maryland
	 	$	16,400,000	 
	 
	 	 	 	 	 	 
	Dominion Middle Ridge

	 	12280 Creekview Circle

Woodbridge, Virginia 22192
	 	$	20,400,000	 
	 
	 	 	 	 	 	 
	Greens at Hilton Run

	 	502 Hilton Drive

Lexington Park, Maryland 20653
	 	$	19,200,000	 
	 
	 	 	 	 	 	 
	Gwinnett Square

	 	4175 Satellite Boulevard

Duluth, Georgia 30136
	 	$	11,000,000	 
	 
	 	 	 	 	 	 
	Hunter’s Ridge

	 	1400 Plantation Boulevard

Plant City, Florida 33567
	 	$	15,450,000	 
	 
	 	 	 	 	 	 
	Courthouse Green

	 	6417 Statute Street

Chesterfield, VA 23832
	 	$	11,400,00	 
	 
	 	 	 	 	 	 
	Lake Ridge

	 	3216 Bluff View Court

Lake Ridge, Virginia 22192
	 	$	13,800,000	 
	 
	 	 	 	 	 	 
	Yorkshire Downs

	 	101 Little Bay Avenue

Yorktown, Virginia 23693
	 	$	10,500,000	 
	 
	 	 	 	 	 	 
	Lakewood Place

	 	350 Lakewood Dr.

Brandon, Florida 33510
	 	$	15,770,000	 
	 
	 	 	 	 	 	 
	Los Altos

	 	311 Los Altos Way

Altamonte Springs, Florida 32714
	 	$	17,600,000	 
	 
	 	 	 	 	 	 
	Ashton at Waterford

	 	12137 Ashton Manor Way

Orlando, Florida 32828
	 	$	23,600,000	 







A-1 









 








SIXTH AMENDMENT TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




     THIS SIXTH AMENDMENT TO AMENDED AND RESTATED MASTER CREDIT FACILITY AGREEMENT (the
“Amendment”) is effective as of the 22nd day of June, 2006, by (i) UNITED
DOMINION REALTY TRUST, INC., a Maryland corporation (“UDRT”), (ii) UDR WESTERN RESIDENTIAL,
INC., a Virginia corporation (“UDR Western”) (iii) UDR OF TENNESSEE, L.P., a Virginia
limited partnership (“UDR Tennessee”), (individually and collectively, UDRT, UDR Western,
and UDR Tennessee, the “Borrower”), and (iv) GREEN PARK FINANCIAL LIMITED PARTNERSHIP, a
District of Columbia limited partnership (the “Lender”).



RECITALS




     A. Borrower and Lender are parties to or have joined into that certain Amended and Restated
Master Credit Facility Agreement, dated as of June 24, 2002 (as amended from time to time, the
“Master Agreement”).



     B. All of Lender’s right, title and interest in the Master Agreement and the Loan Documents
executed in connection with the Master Agreement or the transactions contemplated by the Master
Agreement have been assigned to Fannie Mae pursuant to that certain Assignment of Collateral
Agreement and Other Loan Documents, dated as of June 24, 2002 (the “Assignment”). Fannie
Mae has not assumed any of the obligations of the Lender under the Master Agreement or the Loan
Documents as a result of the Assignment. Fannie Mae has designated the Lender as the servicer of
the Advances contemplated by the Master Agreement.



     C. The parties are executing this Amendment to reflect the addition of the Mortgaged Property
commonly known as Preserve at Brentwood to the Collateral Pool.



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



     Section 1. Addition of Mortgaged Property. The Mortgaged Property commonly known as
Preserve at Brentwood is hereby added to the Collateral Pool under the Master Agreement and Loan
Documents.



     Section 2. Exhibit A. Exhibit A to the Master Agreement is hereby deleted in
its entirety and replaced with the Exhibit A attached to this Amendment.



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



     Section 4. Full Force and Effect. Except as expressly modified by this Amendment, all
terms and conditions of the Master Agreement shall continue in full force and effect.



   









 





     Section 5. Counterparts. This Amendment may be executed in counterparts by the
parties hereto, and each such counterpart shall be considered an original and all such counterparts
shall constitute one and the same instrument.



     Section 6. Applicable Law. The provisions of Section 23.06 of the Master Agreement
(entitled “Choice of Law; Consent to Jurisdiction; Waiver of Jury Trial”) are hereby incorporated
into this Amendment by this reference to the fullest extent as if the text of such provisions were
set forth in their entirety herein.



[Signatures follow on next page]




 2 









 





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



	 	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC., 
a Maryland corporation
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Justin R. Sato
	 	 	 	 	 
	 	 	Name:	 	Justin R. Sato
	 	 	Title:	 	Vice President
	 

	 	 	 	 	 	 
	 	 	UDR WESTERN RESIDENTIAL, INC.,

a Virginia corporation
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Justin R. Sato
	 	 	 	 	 
	 	 	Name:	 	Justin R. Sato
	 	 	Title:	 	Vice President
	 
	 	 	 	 	 	 
	 	 	UDR OF TENNESSEE, L.P., a Virginia limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	UNITED DOMINION REALTY TRUST, INC.,

a Maryland corporation, its General
Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Justin R. Sato
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Justin R. Sato
	 

	 	 	 	Title:
	 	Vice President






 3 









 






	 	 	 	 	 	 	 
	 	 	LENDER:
	 
	 	 	 	 	 	 
	 	 	GREEN PARK FINANCIAL
LIMITED PARTNERSHIP, 
a District of Columbia limited
partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	Walker & Dunlop GP, LLC, a Delaware limited
liability company, its managing general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Sandra Hayward
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Sandra Hayward
	 

	 	 	 	Title:
	 	Vice President







 4 









 








EXHIBIT A

SCHEDULE OF MORTGAGED PROPERTIES

AND INITIAL VALUATIONS




	 	 	 	 	 	 	 
	Property Name	 	Property Address	 	Initial Valuation
	Alafaya Woods

	 	407 Alafaya Woods Boulevard

Oviedo, Florida 32765
	 	$	15,500,000	 
	 
	 	 	 	 	 	 
	Arbors at Lee Vista

	 	5900 Bent Pine Drive

Orlando, Florida 32822
	 	$	22,100,000	 
	 
	 	 	 	 	 	 
	Dominion West End

	 	3900 Arcadia Lane

Richmond, Virginia 23233
	 	$	22,500,000	 
	 
	 	 	 	 	 	 
	Dominion English Hills

	 	8800 Queensmere Place

Richmond, Virginia 23294
	 	$	25,600,000	 
	 
	 	 	 	 	 	 
	Dominion Great Oaks

	 	3008 Autumn Branch Lane

Ellicott City, Maryland
	 	$	16,400,000	 
	 
	 	 	 	 	 	 
	Dominion Middle Ridge

	 	12280 Creekview Circle

Woodbridge, Virginia 22192
	 	$	20,400,000	 
	 
	 	 	 	 	 	 
	Greens at Hilton Run

	 	502 Hilton Drive

Lexington Park, Maryland 20653
	 	$	19,200,000	 
	 
	 	 	 	 	 	 
	Gwinnett Square

	 	4175 Satellite Boulevard

Duluth, Georgia 30136
	 	$	11,000,000	 
	 
	 	 	 	 	 	 
	Hunter’s Ridge

	 	1400 Plantation Boulevard

Plant City, Florida 33567
	 	$	15,450,000	 
	 
	 	 	 	 	 	 
	Courthouse Green

	 	6417 Statute Street

Chesterfield, VA 23832
	 	$	11,400,00	 
	 
	 	 	 	 	 	 
	Lake Ridge

	 	3216 Bluff View Court

Lake Ridge, Virginia 22192
	 	$	13,800,000	 
	 
	 	 	 	 	 	 
	Yorkshire Downs

	 	101 Little Bay Avenue

Yorktown, Virginia 23693
	 	$	10,500,000	 
	 
	 	 	 	 	 	 
	Lakewood Place

	 	350 Lakewood Dr.

Brandon, Florida 33510
	 	$	15,770,000	 
	 
	 	 	 	 	 	 
	Los Altos

	 	311 Los Altos Way

Altamonte Springs, Florida 32714
	 	$	17,600,000	 
	 
	 	 	 	 	 	 
	Ashton at Waterford

	 	12137 Ashton Manor Way

Orlando, Florida 32828
	 	$	23,600,000	 
	 
	 	 	 	 	 	 
	Preserve at Brentwood

	 	370 Oakley Drive

Nashville, Tennessee 37211
	 	$	32,000,000	 







A-1 









 








SEVENTH AMENDMENT TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




     THIS SEVENTH AMENDMENT TO AMENDED AND RESTATED MASTER CREDIT FACILITY AGREEMENT (the
“Amendment”) is effective as of the 27th day of June, 2006, by (i) UNITED
DOMINION REALTY TRUST, INC., a Maryland corporation (“UDRT”), (ii) UDR OF TENNESSEE, L.P.,
a Virginia limited partnership (“UDR Tennessee”), (iii) WINDEMERE AT SYCAMORE HIGHLANDS,
LLC, a Delaware limited liability company (“Windemere”) (individually and collectively,
UDRT, UDR Tennessee and Windemere, the “Borrower”), and (iv) GREEN PARK FINANCIAL LIMITED
PARTNERSHIP, a District of Columbia limited partnership (the “Lender”).



RECITALS




     A. Borrower and Lender are parties to or have joined into that certain Amended and Restated
Master Credit Facility Agreement, dated as of June 24, 2002 (as amended from time to time, the
“Master Agreement”).



     B. All of Lender’s right, title and interest in the Master Agreement and the Loan Documents
executed in connection with the Master Agreement or the transactions contemplated by the Master
Agreement have been assigned to Fannie Mae pursuant to that certain Assignment of Collateral
Agreement and Other Loan Documents, dated as of June 24, 2002 (the “Assignment”). Fannie
Mae has not assumed any of the obligations of the Lender under the Master Agreement or the Loan
Documents as a result of the Assignment. Fannie Mae has designated the Lender as the servicer of
the Advances contemplated by the Master Agreement.



     C. The parties are executing this Amendment to reflect the simultaneous release of the
Mortgaged Property commonly known as Arbors at Lee Vista from the Collateral Pool and addition of
the Mortgaged Property commonly known as Windemere at Sycamore Highlands to the Collateral Pool,
thereby effecting a substitution of Collateral.



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



     Section 7. Substitution of Mortgaged Property. The Mortgaged Property commonly known
as Arbors at Lee Vista is hereby released from the Collateral Pool under the Master Agreement and
the Loan Documents, and the Mortgaged Property commonly known as Windemere at Sycamore Highlands is
hereby added to the Collateral Pool under the Master Agreement and the Loan Documents.



     Section 8. Exhibit A. Exhibit A to the Master Agreement is hereby deleted in
its entirety and replaced with the Exhibit A attached to this Amendment.



     Section 9. Capitalized Terms. All capitalized terms used in this Amendment which are
not specifically defined herein shall have the respective meanings set forth in the Master
Agreement.



   









 





     Section 10. Full Force and Effect. Except as expressly modified by this Amendment,
all terms and conditions of the Master Agreement shall continue in full force and effect.



     Section 11. Counterparts. This Amendment may be executed in counterparts by the
parties hereto, and each such counterpart shall be considered an original and all such counterparts
shall constitute one and the same instrument.



     Section 12. Applicable Law. The provisions of Section 23.06 of the Master Agreement
(entitled “Choice of Law; Consent to Jurisdiction; Waiver of Jury Trial”) are hereby incorporated
into this Amendment by this reference to the fullest extent as if the text of such provisions were
set forth in their entirety herein.



[Signatures follow on next page]




 2 









 






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



	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC., 

a Maryland corporation 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Justin R. Sato
	 	 	 	 	 
	 	 	Name:	 	Justin R. Sato
	 	 	Title:	 	Vice President
	 
	 	 	 	 	 	 	 	 
	 	 	UDR OF TENNESSEE, L.P., a Virginia limited partnership
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	UNITED DOMINION REALTY TRUST, INC.,

a Maryland corporation, its General
Partner
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Justin R. Sato
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	Justin R. Sato
	 	 	 	 	Title:	 	Vice President
	 
	 	 	 	 	 	 	 	 
	 	 	WINDEMERE AT SYCAMORE HIGHLANDS, LLC, 
a Delaware limited
liability company
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	UDR CALIFORNIA PROPERTIES, LLC, 
a Virginia limited liability company,
Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	UNITED DOMINION REALTY TRUST, INC.,
a Maryland corporation, Manager
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Justin R. Sato
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Justin R. Sato
	 

	 	 	 	 	 	Title:
	 	Vice President






 3 









 






	 	 	 	 	 	 	 	 	 
	 	 	 	 	LENDER:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	GREEN PARK FINANCIAL
LIMITED PARTNERSHIP, 
a District of Columbia limited
partnership
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Walker & Dunlop GP, LLC, a Delaware limited
liability company, its managing general partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Sandra G. Hayward
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	Sandra G. Hayward
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	VP
	 

	 	 	 	 	 	 	 	 






 4 









 








EXHIBIT A

SCHEDULE OF MORTGAGED PROPERTIES

AND INITIAL VALUATIONS




	 	 	 	 	 	 	 
	Property Name	 	Property Address	 	Initial Valuation
	Alafaya Woods

	 	407 Alafaya Woods Boulevard

Oviedo, Florida 32765
	 	$	15,500,000	 
	 
	 	 	 	 	 	 
	Dominion West End

	 	3900 Arcadia Lane

Richmond, Virginia 23233
	 	$	22,500,000	 
	 
	 	 	 	 	 	 
	Dominion English Hills

	 	8800 Queensmere Place

Richmond, Virginia 23294
	 	$	25,600,000	 
	 
	 	 	 	 	 	 
	Dominion Great Oaks

	 	3008 Autumn Branch Lane

Ellicott City, Maryland
	 	$	16,400,000	 
	 
	 	 	 	 	 	 
	Dominion Middle Ridge

	 	12280 Creekview Circle

Woodbridge, Virginia 22192
	 	$	20,400,000	 
	 
	 	 	 	 	 	 
	Greens at Hilton Run

	 	502 Hilton Drive

Lexington Park, Maryland 20653
	 	$	19,200,000	 
	 
	 	 	 	 	 	 
	Gwinnett Square

	 	4175 Satellite Boulevard

Duluth, Georgia 30136
	 	$	11,000,000	 
	 
	 	 	 	 	 	 
	Hunter’s Ridge

	 	1400 Plantation Boulevard

Plant City, Florida 33567
	 	$	15,450,000	 
	 
	 	 	 	 	 	 
	Courthouse Green

	 	6417 Statute Street

Chesterfield, VA 23832
	 	$	11,400,00	 
	 
	 	 	 	 	 	 
	Lake Ridge

	 	3216 Bluff View Court

Lake Ridge, Virginia 22192
	 	$	13,800,000	 
	 
	 	 	 	 	 	 
	Yorkshire Downs

	 	101 Little Bay Avenue

Yorktown, Virginia 23693
	 	$	10,500,000	 
	 
	 	 	 	 	 	 
	Lakewood Place

	 	350 Lakewood Dr.

Brandon, Florida 33510
	 	$	15,770,000	 
	 
	 	 	 	 	 	 
	Los Altos

	 	311 Los Altos Way

Altamonte Springs, Florida 32714
	 	$	17,600,000	 
	 
	 	 	 	 	 	 
	Ashton at Waterford

	 	12137 Ashton Manor Way

Orlando, Florida 32828
	 	$	23,600,000	 
	 
	 	 	 	 	 	 
	Preserve at Brentwood

	 	370 Oakley Drive

Nashville, Tennessee 37211
	 	$	32,000,000	 
	 
	 	 	 	 	 	 
	Windemere at Sycamore 

Highlands

	 	5925 Sycamore Canyon Boulevard

Riverside, California 92507
	 	$	___________	 
	 

	 	 	 	 	 	 






A-1 









 








EIGHT AMENDMENT TO AMENDED AND RESTATED

MASTER CREDIT FACILITY AGREEMENT




     THIS EIGHT AMENDMENT TO AMENDED AND RESTATED MASTER CREDIT FACILITY AGREEMENT (the
“Amendment”) is effective as of the
14th day of February, 2007, by (i) UNITED DOMINION REALTY
TRUST, INC., a Maryland corporation (“UDRT”), (ii) UDR OF TENNESSEE, L.P., a Virginia
limited partnership (“UDR Tennessee”), (iii) WINDEMERE AT SYCAMORE HIGHLANDS, LLC, a
Delaware limited liability company (“Windemere”) (individually and collectively, UDRT, UDR
Tennessee and Windemere, the “Borrower”),and (iv) GREEN PARK FINANCIAL LIMITED PARTNERSHIP,
a District of Columbia limited partnership (the “Lender”).



RECITALS




     A. Borrower and Lender are parties to or have joined into that certain Amended and Restated
Master Credit Facility Agreement, dated as of June 24, 2002 (as the same may be amended, modified,
supplemented or restated from time to time, the “Master Agreement”).



     B. All of Lender’s right, title and interest in the Master Agreement and the Loan Documents
executed in connection with the Master Agreement or the transactions contemplated by the Master
Agreement have been assigned to Fannie Mae pursuant to that certain Assignment of Collateral
Agreement and Other Loan Documents, dated as of June 24, 2002 (the “Assignment”). Fannie
Mae has not assumed any of the obligations of the Lender under the Master Agreement or the Loan
Documents as a result of the Assignment. Fannie Mae has designated the Lender as the servicer of
the Advances contemplated by the Master Agreement.



     C. The parties are executing this Amendment to amend certain terms of the Master Agreement as
set forth below.



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



     Section 13. Definition of Fannie Mae Commitment. The following new definition is
hereby added to the Master Agreement:




“Fannie Mae Commitment” means a commitment from Fannie Mae to Lender for the
purchase of a proposed Advance for cash having the terms agreed to by Lender and
Borrower.



     Section 14. Breakage and Other Costs. Section 4.03 of the Master Agreement (entitled
“Breakage and Other Costs”) is hereby deleted in its entirety and replaced with the following:




Breakage and other Costs. In the event that the Lender obtains an MBS
Commitment or Fannie Mae Commitment and the Lender fails to fulfill the MBS
Commitment or Fannie Mae Commitment because the Advance is not made (for a



   









 







reason other than the default of the Lender to make the Advance or (i) the failure
of the purchaser of the MBS to purchase such MBS or (ii) the failure of Fannie Mae
to purchase such Advance for cash, as applicable), the Borrower shall pay all
breakage and other costs, fees and damages incurred by the Lender in connection with
its failure to fulfill the MBS Commitment or Fannie Mae Commitment. The Lender
reserves the right to require that the Borrower post a deposit at the time the MBS
Commitment or Fannie Mae Commitment is obtained.



     Section 15. Capitalized Terms. All capitalized terms used in this Amendment which are
not specifically defined herein shall have the respective meanings set forth in the Master
Agreement.



     Section 16. Full Force and Effect. Except as expressly modified by this Amendment,
all terms and conditions of the Master Agreement shall continue in full force and effect.



     Section 17. Counterparts. This Amendment may be executed in counterparts by the
parties hereto, and each such counterpart shall be considered an original and all such counterparts
shall constitute one and the same instrument.



     Section 18. Applicable Law. The provisions of Section 23.06 of the Master Agreement
(entitled “Choice of Law; Consent to Jurisdiction; Waiver of Jury Trial”) are hereby incorporated
into this Amendment by this reference to the fullest extent as if the text of such provisions were
set forth in their entirety herein.



[Signatures follow on next page]




 2 









 





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



	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC., 

a Maryland corporation
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Thomas P. Simon
	 	 	 	 	 
	 	 	Name:	 	Thomas P. Simon
	 	 	Title:	 	Vice President and
Treasurer
	 
	 	 	 	 	 	 	 	 
	 	 	UDR OF TENNESSEE, L.P., a Virginia limited partnership
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	UNITED DOMINION REALTY TRUST, INC.,

a Maryland corporation, its General
Partner
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Thomas P. Simon
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	Thomas P. Simon
	 	 	 	 	Title:	 	Vice President and
Treasurer
	 
	 	 	 	 	 	 	 	 
	 	 	WINDEMERE AT SYCAMORE HIGHLANDS, LLC, 
a Delaware limited
liability company
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	UDR CALIFORNIA PROPERTIES, LLC, 
a Virginia limited liability company,
Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	UNITED DOMINION REALTY TRUST, INC., 

a Maryland corporation, Manager
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Thomas P. Simon
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Thomas P. Simon
	 

	 	 	 	 	 	Title:
	 	Vice President and
Treasurer






 3 









 






	 	 	 	 	 	 	 	 	 
	 	 	 	 	LENDER:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	GREEN PARK FINANCIAL
LIMITED PARTNERSHIP, 
a District of Columbia limited
partnership
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Walker & Dunlop GP, LLC, a Delaware limited
liability company, its managing general partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Sandra Hayward
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Sandra Hayward
	 

	 	 	 	 	 	Title:
	 	Vice President







 4