Document:

EX-10.54

 Exhibit 10.54 

 

			
	  
 Notice of Grant of Stock Options

and Option Agreement
	  	 CorVel Corporation
 ID:
33-0282651
 2010 Main Street Suite 600

Irvine, California 92614

 Diane J. Blaha 
 You have been granted an option to acquire CorVel Corporation (the “Corporation”) common stock (the “Common Stock”) as follows: 

 

					
	 Non-Qualified Stock Option Grant No.
	  	 	004752	  
	 Date of Grant
	  	 	3/1/2013	  
	 Stock Option Plan
	  	 	1988	  
	 Option Price Per Share
	  	$	48.48	  
	 Total Number of Shares Granted
	  	 	3,000.00	  
	 Total Price of Shares Granted
	  	$	145,440.00	  
	 Expiration Date
	  	 	3/1/2018	  

 Provided you continue to be a Service Provider (as defined in the Stock Option Agreement attached hereto
as Exhibit A) throughout the specified period, the Option will become exercisable in accordance with Schedule A. 
 Optionee
(and Optionee’s spouse) hereby agree(s) that the option is granted pursuant to and in accordance with the express terms and conditions of the Stock Option Agreement and the Corporation’s Restated Omnibus Incentive Plan. 

 

					
			
	/s/ Richard J. Schweppe	 		 	March 4, 2013
	CorVel Corporation	 		 	Date
			
	 /s/ Diane J. Blaha
	 		 	  
	Diane J. Blaha	 		 	Date
			
	  	 		 	  
	Spouse	 		 	Date

  

			
		 	
		 	

 CORVEL CORPORATION 
 Shares earned by EPS number by Tranche year 
 CY 2013, 2014, 2015 

 

									
	Option grant:	  	 	3000	  	  	Shares option grant	  	
				
	CY 2013 Tranche	  	 	900	  	  	30% of total grant	  	
	CY 2014 Tranche	  	 	900	  	  	30% of total grant	  	
	CY 2015 Tranche	  	 	1200	  	  	40% of total grant	  	

  

																																	
		  	 	CY 2013	  	  		  		  	 	CY 2014	  	  		  		  	 	CY 2015	  
		  	 	Percentage	  	 	 	Shares	  	  		  		  	 	Percentage	  	 	 	Shares	  	  		  		  	 	Percentage	  	 	 	Shares	  
	 $*.**
	  	 	0.0	% 	 	 	0	  	  		  	$*.**	  	 	0.0	% 	 	 	0	  	  		  	$*.**	  	 	0.0	% 	 	 	0	  
	 $*.**
	  	 	2.5	% 	 	 	23	  	  		  	$*.**	  	 	2.1	% 	 	 	19	  	  		  	$*.**	  	 	1.9	% 	 	 	23	  
	 $*.**
	  	 	5.0	% 	 	 	45	  	  		  	$*.**	  	 	4.3	% 	 	 	39	  	  		  	$*.**	  	 	3.8	% 	 	 	45	  
	 $*.**
	  	 	7.5	% 	 	 	68	  	  		  	$*.**	  	 	6.4	% 	 	 	58	  	  		  	$*.**	  	 	5.6	% 	 	 	68	  
	 $*.**
	  	 	10.0	% 	 	 	90	  	  		  	$*.**	  	 	8.6	% 	 	 	77	  	  		  	$*.**	  	 	7.5	% 	 	 	90	  
	 $*.**
	  	 	12.5	% 	 	 	113	  	  		  	$*.**	  	 	10.7	% 	 	 	96	  	  		  	$*.**	  	 	9.4	% 	 	 	113	  
	 $*.**
	  	 	15.0	% 	 	 	135	  	  		  	$*.**	  	 	12.9	% 	 	 	116	  	  		  	$*.**	  	 	11.3	% 	 	 	135	  
	 $*.**
	  	 	17.5	% 	 	 	158	  	  		  	$*.**	  	 	15.0	% 	 	 	135	  	  		  	$*.**	  	 	13.1	% 	 	 	158	  
	 $*.**
	  	 	20.0	% 	 	 	180	  	  		  	$*.**	  	 	17.1	% 	 	 	154	  	  		  	$*.**	  	 	15.0	% 	 	 	180	  
	 $*.**
	  	 	22.5	% 	 	 	203	  	  		  	$*.**	  	 	19.3	% 	 	 	174	  	  		  	$*.**	  	 	16.9	% 	 	 	203	  
	 $*.**
	  	 	25.0	% 	 	 	225	  	  		  	$*.**	  	 	21.4	% 	 	 	193	  	  		  	$*.**	  	 	18.8	% 	 	 	225	  
	 $*.**
	  	 	27.5	% 	 	 	248	  	  		  	$*.**	  	 	23.6	% 	 	 	212	  	  		  	$*.**	  	 	20.6	% 	 	 	248	  
	 $*.**
	  	 	30.0	% 	 	 	270	  	  		  	$*.**	  	 	25.7	% 	 	 	231	  	  		  	$*.**	  	 	22.5	% 	 	 	270	  
	 $*.**
	  	 	33.8	% 	 	 	305	  	  		  	$*.**	  	 	27.9	% 	 	 	251	  	  		  	$*.**	  	 	24.4	% 	 	 	293	  
	 $*.**
	  	 	37.7	% 	 	 	339	  	  		  	$*.**	  	 	30.0	% 	 	 	270	  	  		  	$*.**	  	 	26.3	% 	 	 	315	  
	 $*.**
	  	 	41.5	% 	 	 	374	  	  		  	$*.**	  	 	33.6	% 	 	 	302	  	  		  	$*.**	  	 	28.1	% 	 	 	338	  
	 $*.**
	  	 	45.4	% 	 	 	408	  	  		  	$*.**	  	 	37.1	% 	 	 	334	  	  		  	$*.**	  	 	30.0	% 	 	 	360	  
	 $*.**
	  	 	49.2	% 	 	 	443	  	  		  	$*.**	  	 	40.7	% 	 	 	366	  	  		  	$*.**	  	 	33.3	% 	 	 	400	  
	 $*.**
	  	 	53.1	% 	 	 	478	  	  		  	$*.**	  	 	44.3	% 	 	 	399	  	  		  	$*.**	  	 	36.7	% 	 	 	440	  
	 $*.**
	  	 	56.9	% 	 	 	512	  	  		  	$*.**	  	 	47.9	% 	 	 	431	  	  		  	$*.**	  	 	40.0	% 	 	 	480	  
	 $*.**
	  	 	60.8	% 	 	 	547	  	  		  	$*.**	  	 	51.4	% 	 	 	463	  	  		  	$*.**	  	 	43.3	% 	 	 	520	  
	 $*.**
	  	 	64.6	% 	 	 	582	  	  		  	$*.**	  	 	55.0	% 	 	 	495	  	  		  	$*.**	  	 	46.7	% 	 	 	560	  
	 $*.**
	  	 	68.5	% 	 	 	616	  	  		  	$*.**	  	 	58.6	% 	 	 	527	  	  		  	$*.**	  	 	50.0	% 	 	 	600	  
	 $*.**
	  	 	72.3	% 	 	 	651	  	  		  	$*.**	  	 	62.1	% 	 	 	559	  	  		  	$*.**	  	 	53.3	% 	 	 	640	  
	 $*.**
	  	 	76.2	% 	 	 	685	  	  		  	$*.**	  	 	65.7	% 	 	 	591	  	  		  	$*.**	  	 	56.7	% 	 	 	680	  
	 $*.**
	  	 	80.0	% 	 	 	720	  	  		  	$*.**	  	 	69.3	% 	 	 	624	  	  		  	$*.**	  	 	60.0	% 	 	 	720	  
	 $*.**
	  	 	81.5	% 	 	 	734	  	  		  	$*.**	  	 	72.9	% 	 	 	656	  	  		  	$*.**	  	 	63.3	% 	 	 	760	  
	 $*.**
	  	 	83.1	% 	 	 	748	  	  		  	$*.**	  	 	76.4	% 	 	 	688	  	  		  	$*.**	  	 	66.7	% 	 	 	800	  
	 $*.**
	  	 	84.6	% 	 	 	762	  	  		  	$*.**	  	 	80.0	% 	 	 	720	  	  		  	$*.**	  	 	70.0	% 	 	 	840	  
	 $*.**
	  	 	86.2	% 	 	 	775	  	  		  	$*.**	  	 	81.4	% 	 	 	733	  	  		  	$*.**	  	 	73.3	% 	 	 	880	  
	 $*.**
	  	 	87.7	% 	 	 	789	  	  		  	$*.**	  	 	82.9	% 	 	 	746	  	  		  	$*.**	  	 	76.7	% 	 	 	920	  
	 $*.**
	  	 	89.2	% 	 	 	803	  	  		  	$*.**	  	 	84.3	% 	 	 	759	  	  		  	$*.**	  	 	80.0	% 	 	 	960	  
	 $*.**
	  	 	90.8	% 	 	 	817	  	  		  	$*.**	  	 	85.7	% 	 	 	771	  	  		  	$*.**	  	 	81.3	% 	 	 	976	  
	 $*.**
	  	 	92.3	% 	 	 	831	  	  		  	$*.**	  	 	87.1	% 	 	 	784	  	  		  	$*.**	  	 	82.7	% 	 	 	992	  
	 $*.**
	  	 	93.8	% 	 	 	845	  	  		  	$*.**	  	 	88.6	% 	 	 	797	  	  		  	$*.**	  	 	84.0	% 	 	 	1,008	  
	 $*.**
	  	 	95.4	% 	 	 	858	  	  		  	$*.**	  	 	90.0	% 	 	 	810	  	  		  	$*.**	  	 	85.3	% 	 	 	1,024	  
	 $*.**
	  	 	96.9	% 	 	 	872	  	  		  	$*.**	  	 	91.4	% 	 	 	823	  	  		  	$*.**	  	 	86.7	% 	 	 	1,040	  
	 $*.**
	  	 	98.5	% 	 	 	886	  	  		  	$*.**	  	 	92.9	% 	 	 	836	  	  		  	$*.**	  	 	88.0	% 	 	 	1,056	  
	 $*.**
	  	 	100.0	% 	 	 	900	  	  		  	$*.**	  	 	94.3	% 	 	 	849	  	  		  	$*.**	  	 	89.3	% 	 	 	1,072	  
		  				 				  		  	$*.**	  	 	95.7	% 	 	 	861	  	  		  	$*.**	  	 	90.7	% 	 	 	1,088	  
		  				 				  		  	$*.**	  	 	97.1	% 	 	 	874	  	  		  	$*.**	  	 	92.0	% 	 	 	1,104	  
		  				 				  		  	$*.**	  	 	98.6	% 	 	 	887	  	  		  	$*.**	  	 	93.3	% 	 	 	1,120	  
		  				 				  		  	$*.**	  	 	100.0	% 	 	 	900	  	  		  	$*.**	  	 	94.7	% 	 	 	1,136	  
		  				 				  		  		  				 				  		  	$*.**	  	 	96.0	% 	 	 	1,152	  
		  				 				  		  		  				 				  		  	$*.**	  	 	97.3	% 	 	 	1,168	  
		  				 				  		  		  				 				  		  	$*.**	  	 	98.7	% 	 	 	1,184	  
		  				 				  		  		  				 				  		  	$*.**	  	 	100.0	% 	 	 	1,200	  

  

	*	Confidential treatment requested pursuant to Rule 24b-2 under the Securities Exchange Act of 1934. In accordance with
 Rule 24b-2, these confidential portions have
been omitted from this exhibit and filed separately with the Securities and Exchange Commission. 

 Notwithstanding anything to
the contrary in this Schedule A or the Stock Option Agreement to which this Schedule A is attached, the Company shall have the right, in its sole discretion, with or without the consent of the Optionee, to amend this Schedule A to adjust any or all
of the targets, dates and/or target EPS amounts as it deems equitable to recognize unusual or non-recurring events, including, but not limited to the Company’s acquisition of another business entity or assets, a corporate merger or other
consolidation, or the sale or discontinuation of significant business operations or business units of the Company; changes in tax laws or accounting procedures; and any other extraordinary circumstances. 

 Section 16 Insiders Discretionary Option Grant Program 

CorVel Corporation 
 Stock Option Agreement 
 A. The Board has adopted the Plan for the purpose
of retaining the services of selected Employees, non-employee members of the Board (or the board of directors of any Parent or Subsidiary) and consultants and advisors who provide services to the Company (or any Parent or Subsidiary). 

B. Optionee is to render valuable services to the Company (or a Parent or Subsidiary), and this Agreement is executed pursuant to, and is
intended to carry out the purposes of, the Plan in connection with the Company’s grant of an option to Optionee. 
 C. All
capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix. 
 Now, therefore, it is
hereby agreed as follows: 
 1. Grant of Option. Subject to and upon the terms and conditions set forth in
this Agreement, Optionee is hereby granted, as of the Grant Date, an option to purchase the Option Shares. The Option Shares shall be purchasable from time to time during the option term at the Exercise Price. 

2. Option Term. This option shall expire at the close of business on the Expiration Date, unless sooner terminated
in accordance with this Agreement. 
 3. Limited Transferability. 

(a) During Optionee’s lifetime, this option shall be exercisable only by Optionee and shall not be assignable or transferable other
than by will, by the laws of descent and distribution following the Optionee’s death, or to any “Family Member” (as such term is defined in the General Instructions to Form S-8 (or any successor to such Instructions or such Form)
under the Securities Act), provided that Optionee may not receive any consideration for such transfer, the Family Member may not make any subsequent transfers other than by will or by the laws of descent and distribution and the Company receives
written notice of such transfer. This assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as
those in effect for this option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Company may deem appropriate. 
 (b) Should Optionee die while holding this option, then this option shall be transferred in accordance with Optionee’s will or the laws of inheritance. However, Optionee may designate one or more
persons as the beneficiary or beneficiaries of this option, and this option shall, in accordance with such designation, automatically be transferred to such 

 
beneficiary or beneficiaries upon Optionee’s death while holding this option. Such beneficiary or beneficiaries shall take the transferred option subject to all the terms and conditions of
this Agreement, including (without limitation) the limited time period during which this option may, pursuant to Paragraph 5, be exercised following Optionee’s death. 
 4. Exercisability. This option shall become exercisable in one or more installments as specified in the Grant Notice. As the option becomes exercisable for such installments, those
installments shall accumulate, and the option shall remain exercisable for the accumulated installments until the Expiration Date or sooner termination of the option term. 
 5. Effect of Cessation of Service. 
 (a) Should Optionee
cease to be a Service Provider for any reason (other than death, Permanent Disability or Misconduct) while this option is outstanding, then this option shall remain exercisable until the earlier of (i) the expiration of the three month
period commencing with the date of such cessation of Service Provider status or (ii) the Expiration Date. 
 (b) Should
Optionee cease to be a Service Provider by reason of Permanent Disability or death while this option is outstanding, then the option shall remain exercisable until the earlier of (i) the expiration of the twelve month period commencing
with the date of such cessation of Service Provider status or (ii) the Expiration Date. 
 (c) Should Optionee cease to be
a Service Provider due to termination for Misconduct, then this option shall terminate immediately. 
 (d) During the limited
period of post-service exercisability, this option may not be exercised in the aggregate for more than the number of Option Shares for which the option is exercisable at the time Optionee ceased to be a Service Provider. This option shall,
immediately when Optionee ceases to be a Service Provider for any reason, terminate with respect to any Option Shares for which this option is not otherwise at that time exercisable. Upon the expiration of the limited post-service exercise period or
(if earlier) upon the Expiration Date, this option shall terminate entirely. 
 6. Effect of Corporate
Transaction.  
 (a) This option, to the extent outstanding at the time of a Corporate Transaction but not
otherwise fully exercisable, shall automatically accelerate so that this option shall, immediately prior to the effective date of such Corporate Transaction, become exercisable for all of the Option Shares at the time subject to this option.
However, this option shall not become exercisable on such an accelerated basis, if and to the extent: (i) this option is, in connection with the Corporate Transaction, to be assumed by the successor corporation (or parent thereof) or to
be replaced with a comparable option to purchase shares of the capital stock of the successor corporation (or parent thereof) or (ii) this option is to be replaced with a cash incentive program of the successor corporation which preserves the
spread existing at the time of the Corporate Transaction on any Option Shares for which this option is not otherwise at that 

  
 2 

 
time exercisable (the excess of the Fair Market Value of those Option Shares over the aggregate Exercise Price payable for such shares) and provides for subsequent payout in accordance with the
same exercise schedule for those Option Shares set forth in the Grant Notice. 
 (b) Upon the consummation of the Corporate
Transaction, this option shall terminate, except to the extent assumed by the successor corporation (or parent thereof) in connection with the Corporate Transaction. 
 (c) If this option is assumed in connection with a Corporate Transaction, then this option shall be appropriately adjusted, immediately after such Corporate Transaction, to apply to the number and class
of securities which would have been issuable to Optionee as a result of the consummation of such Corporate Transaction had the option been exercised immediately prior to such Corporate Transaction, and appropriate adjustments shall also be made to
the Exercise Price, provided the aggregate Exercise Price shall remain the same. 
 (d) This Agreement shall not in any
way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

7. Adjustment in Option Shares. Should any change be made to the Common Stock by reason of any stock split, reverse
stock split, stock dividend, recapitalization, combination of shares, exchange of shares, reorganization, merger, consolidation, split-up, spin-off, or other change affecting the outstanding Common Stock as a class without the Company’s receipt
of consideration, appropriate adjustments shall be made to (a) the total number and/or class of securities subject to this option and (b) the Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of
benefits hereunder. 
 8. Stockholder Rights. The holder of this option shall not have any stockholder
rights with respect to the Option Shares until such person shall have exercised the option in accordance with the provisions of Paragraph 9, paid the Exercise Price and become a holder of record of the purchased shares. 

9. Manner of Exercising Option.  
 (a) In order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable, Optionee (or any other person or persons exercising the option)
must take the following actions: 
 (i) Execute and deliver to the Company (A) a Notice of Exercise, in
substantially the form attached hereto as Exhibit I, that specifies the number of Option Shares for which the option is being exercised and (B) any additional documents which the Committee may, in its discretion, deem advisable. 

  
 3 

 (ii) Pay the aggregate Exercise Price for the purchased shares in one or
more of the following forms: 
 (A) cash or check payable to the Company’s order; 

(B) shares of Common Stock held by Optionee for the requisite period necessary to avoid a charge to the Company’s
reported earnings and valued at Fair Market Value on the Exercise Date; or 
 (C) through a special sale and
remittance procedure pursuant to which Optionee is to provide irrevocable written instructions (1) to a brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the
settlement date, an amount sufficient to cover the aggregate Exercise Price payable for the purchased shares plus all applicable Federal and state income and employment taxes required to be withheld by the Company by reason of such purchase and
(2) to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale transaction. 
 (iii) Furnish to the Company appropriate documentation that the person or persons exercising the option (if other than Optionee) have the right to exercise this option. 

(iv) Make appropriate arrangements with the Company (or Parent or Subsidiary employing or retaining Optionee) for the
satisfaction of all Federal, state and local income and employment tax withholding requirements applicable to the option exercise. 
 (b) If payment of the exercise price is made by means of the surrender of shares of Common Stock which are subject to certain restrictions, the number of shares of Common Stock issued upon the exercise of
the option equal to the number of shares of restricted stock surrendered shall be subject to the same restrictions as the restricted stock that was surrendered. 
 (c) Except to the extent the sale and remittance procedure specified in Paragraph 9(a)(ii)(C) is utilized in connection with the option exercise, payment of the option price for the purchased shares must
accompany the Notice of Exercise. 
 (d) Assuming Optionee does not sell the purchased shares of Common Stock on the Exercise
Date, as soon as practical after the Exercise Date, the Company shall either (i) issue to or on behalf of Optionee (or any other person or persons exercising this option) a certificate for the purchased Option Shares, with the appropriate
legends affixed thereto, or (ii) instruct the Company’s transfer agent to make a book-entry reflecting the purchase on its stockholder ledger. 

  
 4 

 (e) In no event may this option be exercised for any fractional shares. 

10. Tax Withholding. The Committee may, in its discretion and upon such terms and conditions as it may deem
appropriate (including the applicable safe-harbor provisions of Securities and Exchange Commission Rule 16b-3 or any successor rule or regulation) provide Optionee (if Optionee is an Employee) with the election to surrender previously acquired
shares of Common Stock or have shares withheld in satisfaction of the tax withholding obligations. To the extent necessary to avoid adverse accounting treatment, the number of shares that may be withheld for this purpose shall not exceed the minimum
number needed to satisfy the applicable income and employment tax withholding rules. If Common Stock is used to satisfy the Company’s tax withholding obligations, the shares of Common Stock shall have been held by Optionee for the requisite
period necessary to avoid a charge to the Company’s reported earnings and shall be valued at their Fair Market Value when the tax withholding is required to be made. 
 11. Compliance with Laws and Regulations.  
 (a) The exercise
of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Company and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any Stock Exchange (or
the Nasdaq Stock Market, if applicable) on which the Common Stock may be listed for trading at the time of such exercise and issuance. 
 (b) The inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to the lawful issuance and sale of any Common Stock pursuant to this
option shall relieve the Company of any liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not have been obtained. The Company, however, shall use reasonable efforts to obtain all such approvals.

 12. Successors and Assigns. Except to the extent otherwise provided in this Agreement, the provisions of
this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and Optionee, Optionee’s assigns, the legal representatives, heirs and legatees of Optionee’s estate and any beneficiaries of
this option designated by Optionee. 
 13. Notices. Any notice required to be given or delivered to the
Company under the terms of this Agreement shall be in writing and addressed to the Company at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the address
indicated below Optionee’s signature line on the Grant Notice. All notices shall be deemed effective upon personal delivery or three days after deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified.

 14. Construction. This Agreement and the option evidenced hereby are made and granted pursuant to the
Plan and are in all respects limited by and subject to the terms of the Plan. In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of this Agreement shall
prevail. All decisions of the Committee with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option. 

  
 5 

 15. Governing Law. The interpretation, performance and enforcement of this
Agreement shall be governed by the laws of the State of Delaware without resort to its conflict-of-laws rules. 
 16. No
Employment/Service Contract. Nothing in this Agreement or in the Plan shall confer upon Optionee any right to continue to be a Service Provider of the Company (or any Parent or Subsidiary) for any period of specific duration or otherwise
interfere with or restrict in any way the rights of the Company (or such Parent or Subsidiary) or Optionee, which rights are hereby expressly reserved by each, to terminate Optionee’s Service Provider status at any time and for any reason
whatsoever, with or without cause. 

  
 6 

 EXHIBIT I 
 NOTICE OF EXERCISE OF STOCK OPTION 
 I hereby notify CorVel Corporation
(the “Company”) that I,                     , elect to purchase             
shares of Common Stock of the Corporation (the “Purchased Shares”) at an option price of $          per share (the “Option Price”) pursuant to the option (the “Option”) granted to
me on                     . 

My option was granted as a non-qualified stock option. I will need to report taxable income at the time I exercise this Option and pay
the corresponding withholding tax (the “Withholding Tax”) to the Corporation. The Withholding Tax is computed on the difference between the Option Price and the Fair Market Value of the stock on the date I exercise the Option. 

Concurrently with the delivery of the Exercise Notice to the Chief Financial Officer of the Corporation, I shall hereby pay to the
Corporation the Option Price and Withholding Tax for the Purchased Shares in accordance with the provisions of my agreement with the Corporation evidencing the Option and shall deliver whatever additional documents may be required by such agreement
as a condition for exercise. 
  

					
	Date	 		  	  
 Optionee’s
Signature

			
	 If applicable, print name in exact manner it
 is to appear on the stock certificate:
	 		  	  

			
	Optionee’s Mailing Address:	 		  	  

		 		  	  

			
	 Address to which certificate is to be sent, if
 different from address above:
	 		  	  

		 		  	  

			
	Brokerage Account Information	 		  	
	(Broker Name, Contact Info., Account #)	 		  	  

		 		  	  

		 		  	  

  
 A-1

 APPENDIX 

The following definitions shall be in effect under this Agreement: 

A. Agreement shall mean this Stock Option Agreement. 

B. Board shall mean the Board of Directors of the Company. 

C. Common Stock shall mean shares of the Company’s common stock, $0.0001 par value. 

D. Code shall mean the Internal Revenue Code of 1986, as amended. 

E. Committee shall mean a committee designated by the Board to administer the Plan, which initially shall be the
compensation committee of the Board. The Committee shall be comprised of at least two directors but not less than such number of directors as shall be required to permit awards granted under the Plan to qualify under Rule 16b-3 under the Securities
Act and Section 162(m) of the Code, and each member of the Committee shall be a “Non-Employee Director” within the meaning of Rule 16b-3 under the Securities Act and an “Outside Director” within the meaning of
Section 162(m) of the Code. 
 F. Company shall mean CorVel Corporation, a Delaware corporation, or any
corporate successor which shall assume the Plan. 
 G. Corporate Transaction shall mean any of the following
transactions for which the approval of the Company’s stockholders is obtained: 
 (i) a merger or
acquisition in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state of the Company’s incorporation, 

(ii) the sale, transfer or other disposition of all or substantially all of the assets of the Company to any entity other
than a parent or subsidiary of the Company, or 
 (iii) any reverse merger in which the Company is the surviving
entity but in which fifty percent (50%) or more of the Company’s outstanding voting stock is transferred to holders different from those who held such fifty percent (50%) or greater interest immediately prior to such merger.

 H. Employee shall mean an individual for whom the Company or one or more of its Parent or Subsidiaries reports
his or her earnings on a Form W-2. 
 I. Exercise Date shall mean the date on which the option shall have been
exercised in accordance with Paragraph 9. 

  
 A-2

 J. Exercise Price shall mean the exercise price per Option Share as specified
in the Grant Notice. 
 K. Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice. 
 L. Fair Market Value per share of Common Stock on any relevant date shall be determined in
accordance with the following provisions: 
 (i) If the Common Stock is at the time listed on the Nasdaq
National Market or the Nasdaq Capital Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq
National Market or the Nasdaq Capital Market and published in The Wall Street Journal. 
 (ii) If the
Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Committee to be the primary market for
the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange and published in The Wall Street Journal. 
 (iii) If the Common Stock is not listed on the Nasdaq National Market, Nasdaq Capital Market or a national securities exchange, the Fair Market Value shall be the average of the closing bid and ask prices
of the Common Stock on that day as reported by the Nasdaq bulletin board or any comparable system on that day. 

(iv) If the Common Stock is not traded included in the Nasdaq bulletin board or any comparable system, the Fair Market
Value shall be the average of the closing bid and ask prices on that day as furnished by any member of the National Association of Securities Dealers, Inc. selected from time to time by the Company for that purpose. 

(v) If the date in question is not a trading day, then the Fair Market Value shall be determined based on prices for the
trading day prior to the date in question. 
 M. Grant Date shall mean the date of grant of the option as
specified in the Grant Notice. 
 N. Grant Notice shall mean the Notice of Grant of Stock Option accompanying this
Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced hereby. 
 O.
Misconduct shall mean any of the following: 
 (i) Optionee’s intentional misconduct or
continuing gross neglect of duties which materially and adversely affects the business and operations of the Company or any Parent or Subsidiary employing Optionee; 

  
 A-3

 (ii) Optionee’s unauthorized use or disclosure of (or attempt to use or
disclose) confidential information or trade secrets of the Company or any Parent or Subsidiary; or 
 (iii)
Optionee’s commission of an act involving embezzlement, theft, fraud, falsification of records, destruction of property or commission of a crime or other offense involving money or other property of the Company or any Parent or Subsidiary
employing Optionee. 
 The reasons for termination of Optionee as a Service Provider set forth in this subparagraph are not
intended to be an exclusive list of all acts or omissions which the Company (or any Parent or Subsidiary) may deem to constitute misconduct or other grounds for terminating Optionee (or any other individual). 

P. Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422. 

Q. Notice of Exercise shall mean the notice of exercise in the form attached hereto as Exhibit I. 

R. Option Shares shall mean the number of shares of Common Stock subject to the option as specified in the Grant Notice.

 S. Optionee shall mean the person to whom the option is granted as specified in the Grant Notice. 

T. Parent shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company,
provided each such corporation in the unbroken chain (other than the Company) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 
 U. Permanent Disability shall have the meaning assigned to “permanent and
total disability” as set forth in Code
 Section 22(e)(3). 
 V. Plan shall mean the CorVel
Corporation Restated Omnibus Incentive Plan (Formerly The Restated 1988 Executive Stock Option Plan). 
 W. Securities
Act shall mean the Securities Act of 1933, as amended. 
 X. Service Provider shall mean an individual who
renders service on a periodic basis to the Company, its Parent and/or any of its Subsidiaries as an Employee, a non-Employee member of the board of directors or a consultant or independent advisor. 

Y. Stock Exchange shall mean the American Stock Exchange or the New York Stock Exchange, or any other national stock
exchange. 

  
 A-4

 Z. Subsidiary shall mean any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, provided such corporation (other than the last corporation in the unbroken chain) owns, at the time of determination, stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. For purposes of all Non-Statutory Option grants under the Plan and all Corporate Transaction provisions of the Plan, the term “Subsidiary” shall also
include any partnership, joint venture or other business entity of which the Company owns, directly or indirectly through another entity, more than a fifty percent (50%) interest in voting power, capital or profits. 

  
 A-5EX-10.1

 Exhibit 10.1 
 Loan Number: 1005746 
 Execution Version 

SECOND AMENDMENT TO CREDIT AGREEMENT 
 THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of June 6, 2013 by and among UDR, Inc., a Maryland corporation (the “Borrower”), each of the
Lenders party hereto and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (the “Administrative Agent”). 
 WHEREAS, the Borrower, the Lenders, the Administrative Agent and certain other parties have entered into that certain Credit Agreement dated as of October 25, 2011 (as amended by that certain letter
agreement dated as of March 1, 2013 and as in effect immediately prior to the effectiveness hereof, the “Credit Agreement”); and 
 WHEREAS, the Borrowers, the Lenders and the Administrative Agent desire to amend certain provisions of the Credit Agreement on the terms and conditions contained herein. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto,
the parties hereto hereby agree as follows: 
 Section 1. Specific Amendments to Credit Agreement. Upon the
effectiveness of this Amendment, the parties hereto agree that the Credit Agreement is amended as follows: 
 (a) The Credit
Agreement is amended by restating in their entireties the tables set forth in the definitions of “Applicable Facility Fee” and “Applicable Margin”, respectively, clause (a) of the definition of “Condominium Property
Value”, clause (c) of the definition of “Debt”, clauses (a)(iii) and (b) of the definition of “Gross Asset Value”, the definition of “Guarantor”, the definition of “LIBOR”, clause (a) of
the definition of “Renovation Property Value”, the definition of “Termination Date”, and clause (c) of the definition of “Unencumbered Pool Asset”, in each case in Section 1.1 thereof as follows: 

“Applicable Facility Fee” ... 

 

					
	 Level
	  	Facility Fee	 
	 1
	  	 	0.15	% 
	 2
	  	 	0.15	% 
	 3
	  	 	0.20	% 
	 4
	  	 	0.30	% 
	 5
	  	 	0.35	% 

 “Applicable Margin” ... 

 

							
	 Level
	  	 Borrower’s Credit

Rating (S&P/Moody’s or equivalent)
	  	Applicable Margin for
Revolving Loans	 
	 1
	  	A-/A3 (or equivalent) or better	  	 	0.90	% 
	 2
	  	BBB+/Baa1 (or equivalent)	  	 	1.00	% 
	 3
	  	BBB/Baa2 (or equivalent)	  	 	1.10	% 
	 4
	  	BBB-/Baa3 (or equivalent)	  	 	1.35	% 
	 5
	  	Lower than BBB-/Baa3 (or equivalent)	  	 	1.70	% 

 “Condominium Property Value” ... (a) the Consolidated Net
Operating Income attributable to such Property for the two quarter period annualized ending immediately prior to such conversion divided by 6.0%, ... 
 “Debt” ... (c) Capitalized Lease Obligations of such Person (excluding ground leases regardless of whether required under GAAP to be reported as a liability); ... 

“Gross Asset Value” ... (a) ... (iii) 6.0%; (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) ... 
 “Guarantor” means any Person that is party to the
Guaranty as a “Guarantor” and in any event shall include United Dominion Realty, L.P. 

“LIBOR” means, with respect to any LIBOR Loan for any Interest Period, the rate of interest obtained by
dividing (i) the rate appearing on the Reuters Screen LIBOR01 page (or on any successor or substitute page of such service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided on
such page, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to Dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, on the date
that is two Business Days prior to the first day of such Interest Period and having a maturity equal to such Interest Period by (ii) a percentage equal to 1 minus the stated maximum rate (stated as a decimal) of all reserves, if
any, required to be maintained with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”) as specified in Regulation D of the Board of Governors of the Federal Reserve System (or against any other category
of liabilities which includes deposits by reference to which the interest rate on LIBOR Loans is determined or any applicable category of extensions of credit or other assets which includes loans by an office of any Lender outside of the United
States of America). Any change in such maximum rate shall result in a change in LIBOR on the date on which such change in such maximum rate becomes effective. 

  
 - 2 -

 “Renovation Property Value” ... (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 6.0% ... 

“Termination Date” means December 6, 2017, or such later date to which the Termination Date may be
extended pursuant to Section 2.13. 
 “Unencumbered Pool Asset” ... (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 Subsidiary, as applicable; 
 (b) The Credit Agreement is amended by deleting Section 2.3(a) in its entirety and replacing it with the following: 

(a) Letters of Credit. Subject to the terms and conditions of this Agreement, including without limitation,
Section 2.15., the Issuing Bank, on behalf of the Lenders, agrees to issue for the account of the Borrower during the period from and including the Effective Date to, but excluding, the date thirty (30) days prior to the Termination Date,
one or more standby letters of credit (each a “Letter of Credit”) up to a maximum aggregate Stated Amount at any one time outstanding not to exceed $75,000,000.00 as such amount may be reduced from time to time in accordance with the terms
hereof (the “L/C Commitment Amount”). The parties hereto agree that the Existing Letters of Credit shall be deemed to be Letters of Credit for all purposes of this Agreement. 

(c) The Credit Agreement is amended by deleting Section 2.13 in its entirety and replacing it with the following: 

Section 2.13. Extension of Termination Date. 

The Borrower shall have the right, exercisable one time, to request that the Administrative Agent and the Revolving
Lenders agree to extend the Termination Date by six months. The Borrower may exercise such right only by executing and delivering to the Administrative Agent at least 90 days but not more than 180 days prior to the current Termination Date, a
written request for such extension (an “Extension Request”). The Administrative Agent shall notify the Revolving Lenders if it receives an Extension Request promptly upon receipt thereof. Subject to satisfaction of the following
conditions, the Termination Date shall be extended for six months effective upon receipt by the Administrative Agent of the Extension Request and payment of the fee referred to in the following clause (ii): (i) (x) no Default or Event
of Default shall exist and (y) the representations and warranties made or deemed made by the Borrower and each other Loan Party in the Loan Documents to which any of them is a party, shall be true and correct in all material respects (except in
the case of a representation or warranty qualified by materiality, in which case such representation or warranty shall be true and correct in all respects) on and as of the date of such extension with the same force and effect as if made on and as
of such date except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such
earlier date) and except for changes in factual circumstances specifically and expressly permitted under the Loan Documents and (ii) the Borrower shall have paid the Fees payable under Section 3.5.(e). At any time prior to the
effectiveness of any such extension, upon the Administrative Agent’s request, the Borrower shall deliver to the Administrative Agent a certificate from a Responsible Officer certifying the matters referred to in the immediately preceding
clauses (i)(x) and (i)(y). 

  
 - 3 -

 (d) The Credit Agreement is amended by deleting the first sentence of Section 2.16 in
its entirety and replacing it with the following: 
 The Borrower shall have the right to request increases in the aggregate
amount of the Commitments by providing written notice to the Administrative Agent, which notice shall be irrevocable once given; provided, however, that after giving effect to any such increases the aggregate amount of the Commitments
shall not exceed $1,450,000,000.00. 
 (e) The Credit Agreement is amended by deleting the Section 3.5(e) in its entirety
and replacing it with the following: 
 (e) Revolving Credit Extension Fee. If the Borrower exercises its
right to extend the Termination Date in accordance with Section 2.13., the Borrower agrees to pay to the Administrative Agent for the account of each Revolving Lender a fee equal to 0.075% of the amount of such Revolving Lender’s
Commitment (whether or not utilized). Such fee shall be due and payable in full on the date the Administrative Agent receives the Extension Request pursuant to such Section. 
 (f) The Credit Agreement is amended by deleting Sections 7.13(a) and (b) in their entireties and replacing them with the following: 

(a) As soon as available, and in any event within 30 days of the date on which either of the following conditions first
applies to any Subsidiary that is not already a Guarantor, the Borrower shall deliver to the Administrative Agent each of the following in form and substance satisfactory to the Administrative Agent: (i) an Accession Agreement executed by such
Subsidiary (or if the Guaranty is not then in effect, the Guaranty executed by such Subsidiary) and (ii) the items that would have been delivered under subsections (iv) through (viii) and (xiv) of Section 5.1.(a) if such
Subsidiary had been required to become a Guarantor on the Agreement Date: 
 (x) such Subsidiary Guarantees, or
otherwise becomes obligated in respect of, any Debt of the Borrower or any other Subsidiary of the Borrower; or 

(y) such Subsidiary (A) owns an Unencumbered Pool Asset or any other asset the value of which is included in the
determination of Gross Asset Value of the Unencumbered Pool and (B) has incurred, acquired or suffered to exist any Debt other than Nonrecourse Debt. 

  
 - 4 -

 (b) The Borrower may request in writing that the Administrative Agent
release, and upon receipt of such request the Administrative Agent shall release, a Guarantor (other than United Dominion Realty, L.P.) from the Guaranty so long as: (i) such Guarantor is not, or simultaneously with its release from the
Guaranty will not be, required to be a party to the Guaranty under the immediately preceding subsection (a); (ii) no Default or Event of Default shall then be in existence or would occur as a result of such release, including without
limitation, a Default or Event of Default resulting from a violation of any of the covenants contained in Section 9.1.; (iii) the representations and warranties made or deemed made by the Borrower and each other Loan Party in the Loan
Documents to which any of them is a party, shall be true and correct in all material respects on and as of the date of such release with the same force and effect as if made on and as of such date except to the extent that such representations and
warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date) and except for changes in factual circumstances not
prohibited under the Loan Documents; and (iv) the Administrative Agent shall have received such written request at least 10 Business Days (or such shorter period as may be acceptable to the Administrative Agent in its sole discretion) prior to
the requested date of release. Delivery by the Borrower to the Administrative Agent of any such request shall constitute a representation by the Borrower that the matters set forth in the preceding sentence (both as of the date of the giving of such
request and as of the date of the effectiveness of such request) are true and correct with respect to such request. 
 (g) The
Credit Agreement is amended by deleting Section 9.1(e) in its entirety and replacing it with the following: 

(e) Permitted Investments. 
 (i) The Borrower shall not, and shall not permit any Subsidiary to, make any Investment in or otherwise own the following items which would cause the aggregate value of such holdings of the Borrower and
such other Subsidiaries to exceed 20.0% of Gross Asset Value at any time (or in the case of promissory notes and marketable securities described in subsection (D) below to exceed 10.0% of Gross Asset Value at any time): 

(A) Development Properties valued at book value, Condominium Properties valued at their Condominium Property Value, and
Renovation Properties valued at their Renovation Property Value; 
 (B) Properties that are developed but that
are not Multifamily Properties, with value based on the lower of cost or market price determined in accordance with GAAP; 
 (C) raw land, valued at current book value; 
 (D) 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, and all marketable securities, with value based on the lower of cost or market price determined
in accordance with GAAP; and 
 (E) Investments in Multifamily REIT Preferred Interests; provided, however, such
Investments must be acquired or otherwise made in connection with the acquisition of a portfolio of Multifamily Properties or a series of Multifamily Properties. 

  
 - 5 -

 Solely for purposes of this subsection (e), a Development Property on which
construction has been substantially completed will no longer be considered to be a Development Property. 
 (ii)
The Borrower shall not, and shall not permit any Subsidiary to, make any Investment in Unconsolidated Affiliates and other Persons that, in each case, are not Subsidiaries which would cause the aggregate value (with the value thereof determined in a
manner consistent with the definition of Gross Asset Value or, if not contemplated under the definition of Gross Asset Value, as determined in accordance with GAAP) of such Investments of the Borrower and such other Subsidiaries to exceed 20.0% of
Gross Asset Value at any time. 
 (h) The Credit Agreement is amended by deleting Section 9.4(a) in its entirety and
replacing it with the following: 
 (a) any of the actions described in the immediately preceding
clauses (i) through (iii) may be taken with respect to any Subsidiary or any other Loan Party (other than the Borrower) so long as immediately prior to the taking of such action, and immediately thereafter and after giving effect thereto,
no Default or Event of Default is or would exist; notwithstanding the foregoing, a Loan Party (other than the Borrower) may enter into a transaction of merger pursuant to which such Loan Party is not the survivor of such merger only if (i) the
Borrower shall have given the Administrative Agent and the Lenders at least 10 Business Days’ prior written notice of such merger, such notice to include a certification to the effect that immediately after and after giving effect to such
action, no Default or Event of Default is or would be in existence; provided that if the survivor of such merger is (or is to become) a Loan Party, then such notice and certification may be given within 5 Business Days after the consummation of such
merger; (ii) if the survivor entity is Person that is required to become a Guarantor pursuant to Section 7.13, the Borrower complies with the requirements of Section 7.13. within the time period provided in such Section; and
(iii) such Loan Party and the survivor entity each takes such other action and delivers such other documents, instruments, opinions and agreements as the Administrative Agent may reasonably request; 

(i) The Credit Agreement is amended by deleting Section 9.10(b) in its entirety and replacing it with the following: 

(b) Investments to acquire Equity Interests of a Subsidiary or any other Person who after giving effect to such
acquisition would be a Subsidiary, so long as if such Subsidiary is (or after giving effect to such Investment would become) required to become a Guarantor pursuant to Section 7.13, the terms and conditions set forth in Section 7.13. are
satisfied; 

  
 - 6 -

 (j) The Credit Agreement is amended by deleting the address of the Administrative Agent (but
not the address of the Administrative Agent for purposes of Article II) and of the Issuing Agent set forth in Section 12.1 in their entirety and replacing such addresses with the following: 

Wells Fargo Bank, National Association 

1800 Century Park East, 12th Floor 
 Los Angeles, California 90067 
 Attn: Derek Evans 

Telephone: (310) 789-8931 
 Telecopier: (310) 789-3733 
 (k) The Credit Agreement is amended by deleting
Schedule I attached thereto in its entirety and substituting in lieu thereof Schedule I attached hereto. 
 Section 2.
Conditions Precedent. The effectiveness of this Amendment, including, without limitation, the allocation of the Commitments pursuant to Section 3 below and the release of Guarantors under Section 4 below, is subject to receipt by
the Administrative Agent of each of the following, each in form and substance satisfactory to the Administrative Agent: 
 (a) A
counterpart of this Amendment duly executed by the Borrower and each of the Lenders; 
 (b) A Revolving Note duly executed by
the Borrower payable to the order of (i) each Person, if any, becoming a Lender in connection with this Amendment and (ii) each Lender whose Commitment has changed as a result of this Amendment, in each case, in a principal amount equal to
the amount of such Lender’s Commitment as set forth on Schedule I attached hereto; 
 (c) A Guarantor Acknowledgement
substantially in the form of Exhibit A attached hereto, executed by United Dominion Realty, L.P. and any other Guarantor not being released pursuant to Section 4 below; 
 (d) A Compliance Certificate calculated on a pro forma basis; 
 (e) Evidence that
all upfront fees and expenses payable pursuant to (a) the Fee Letter dated May 8, 2013 among the Borrower, Wells Fargo and Wells Fargo Securities, LLC have been paid and (b) the Fee Letter among the Borrower, JPMorgan Chase Bank, N.A.
and J.P. Morgan Securities LLC relating to this Amendment have been paid; 
 (f) An opinion of counsel to the Borrower and the
other Loan Parties addressed to the Administrative Agent and the Lenders regarding such matters as the Administrative Agent may reasonably request; 
 (g) A certificate of good standing (or certificate of similar meaning) with respect to each Loan Party issued as of a recent date by the Secretary of State of the state of formation of each such Loan
Party; 
 (h) A certificate of the Secretary or Assistant Secretary (or other individual performing similar functions) of each
Loan Party certifying that either (i) there has been no change to (x) the by-laws of such Loan Party, if a corporation, the operating agreement, if a limited liability company, the partnership agreement, if a limited or general
partnership, or other comparable document in the case of any other form of legal entity and (y) the certificate or articles of incorporation, articles of organization, certificate of limited partnership, declaration of trust or other comparable
organizational instrument of such Loan Party, in each case since the Agreement Date or (ii) if they have changed, that the true, correct and complete by-laws, operating agreement, partnership agreement, articles of incorporation or organization
or certificate of limited partnership, as the case may be, are attached; 

  
 - 7 -

 (i) Copies certified by the Secretary or Assistant Secretary (or other individual performing
similar functions) of each Loan Party of all corporate, partnership, member or other necessary action taken by such Loan Party to authorize the execution and delivery of this Amendment and the performance of this Amendment and the Credit Agreement
as amended by this Amendment; 
 (j) A copy of (i) a duly executed amendment to that certain Term Loan Agreement dated as
of December 29, 2010 (as amended, the “Wells Fargo Term Loan Agreement”) by and among the Borrower, the financial institutions party thereto, Wells Fargo Bank, as Administrative Agent, and the other parties thereto and
(ii) a duly executed amendment to that certain Term Loan Agreement dated as of December 14, 2009 (as amended, the “Regions Term Loan Agreement”; collectively with the Wells Fargo Term Loan Agreement, the “Term Loan
Agreements”) by and among the Borrower, the financial institutions party thereto, Regions Bank, as Agent and the other parties thereto, in each case amending the terms of the Term Loan Agreements corresponding to the terms of the Credit
Agreement amended by Sections 1(a) (other than the amendment to the definition of “Termination Date” and the definition of “LIBOR” in the case of the Regions Term Loan Agreement”), (f), (g), (h) and (i) of this
Amendment so that all such terms and sections shall be substantially the same; and 
 (k) Such other documents, instruments and
agreements as the Administrative Agent may reasonably request. 
 Section 3. Allocations. The Administrative Agent,
the Borrower and each Lender agree that upon the effectiveness of this Amendment (the date of such effectiveness, the “Amendment Effective Date”), the outstanding Revolving Loans and the participation interests of the Lenders in any
outstanding Letters of Credit and Swingline Loans shall be allocated among the Lenders in accordance with their respective Commitment Percentages calculated based on the Commitments of the Lenders set forth on Schedule I attached hereto (the
“Post-Amendment Commitment Percentage”). To effect such allocations, each Lender whose Post-Amendment Commitment Percentage exceeds the amount of such Lender’s Commitment Percentage immediately prior to the effectiveness of
this Amendment and any Lender providing a new Commitment shall make a Revolving Loan in such amount as is necessary so that the aggregate principal amount of Revolving Loans held by such Lender shall equal such Lender’s Post-Amendment
Commitment Percentage of the aggregate outstanding principal amount of the Revolving Loans as of the Amendment Effective Date. The Administrative Agent shall make such amounts of the proceeds of such Revolving Loans available (a) to each Lender
whose Post-Amendment Commitment Percentage is less than the amount of such Lender’s Commitment Percentage immediately prior to the effectiveness of this Amendment as is necessary so that the aggregate principal amount of Revolving Loans held by
such Lender shall equal such Lender’s Post-Amendment Commitment Percentage of the aggregate outstanding principal amount of the Revolving Loans as of the Amendment Effective Date and (b) to the Exiting Lenders (as defined below) as is
necessary to repay in full the Revolving Loans owing to such Exiting Lenders. The parties hereto confirm that the aggregate outstanding principal amount of the Revolving Loans immediately prior to the Amendment Effective Date is equal to the
aggregate outstanding principal amount of the Revolving Loans immediately after giving effect to the Amendment. Except for any Revolving Notes to be provided to the Lenders in the principal amount of their respective Commitments, no other documents,
instruments or fees (other than fees set forth in Section 2(e) above) shall be, or shall be required to be, executed or paid in connection with such allocations (all of which are hereby waived, as necessary). 

On the Amendment Effective Date, the Commitments of each of Royal Bank of Canada and Capital One, N.A. (each, an “Exiting
Lender”) shall be terminated, all outstanding amounts due under the Credit Agreement and the other Loan Documents to the Exiting Lenders on the Amendment Effective Date shall be paid in full, and each Exiting Lender shall cease to be a
Lender under the Credit Agreement. 

  
 - 8 -

 The Administrative Agent, the Borrower and each Lender confirms the amount of each such
Lender’s Commitment as set forth on Schedule I attached hereto. 
 Section 4. Release of Guarantors. Upon the
effectiveness of this Amendment as provided in Section 2 above, the Administrative Agent and the Lenders agree that the Guarantors set forth on Schedule II attached hereto shall be released as Guarantors under the Guaranty in effect
immediately prior to the effectiveness of this Amendment and such Guaranty shall terminate. 
 Section 5.
Representations. The Borrower represents and warrants to the Administrative Agent and the Lenders that: 
 (a)
Authorization. The Borrower has the right and power, and has taken all necessary action to authorize it, to execute and deliver this Amendment and to perform its obligations hereunder and under the Credit Agreement, as amended by this
Amendment, in accordance with their respective terms. This Amendment has been duly executed and delivered by a duly authorized officer of the Borrower and each of this Amendment and the Credit Agreement, as amended by this Amendment, is a legal,
valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its respective terms, except as (i) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors rights
generally and (ii) the availability of equitable remedies may be limited by equitable principles of general applicability. 

(b) Compliance with Laws, etc. The execution and delivery by the Borrower of this Amendment and the performance by the Borrower of
this Amendment and the Credit Agreement, as amended by this Amendment, in accordance with their respective terms, do not and will not, by the passage of time, the giving of notice or otherwise: (i) require any Government Approvals or violate
any Applicable Laws relating to the Borrower; (ii) conflict with, result in a breach of or constitute a default under the Borrower’s articles of incorporation or by-laws or any indenture, agreement or other instrument to which the Borrower
is a party or by which the Borrower or any of its properties may be bound; or (iii) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by the Borrower other than
Permitted Liens. The Borrowers, each Subsidiary and each other Loan Party is in compliance with each Governmental Approval applicable to it and in compliance with all other Applicable Laws (including without limitation, Environmental Laws) relating
to the Borrower, a Subsidiary or such other Loan Party except for noncompliances which, and Governmental Approvals the failure to possess which, would not, individually or in the aggregate, cause a Default or Event of Default or have a Material
Adverse Effect. 
 (c) No Default. No Default or Event of Default has occurred and is continuing as of the date hereof
nor will exist immediately after giving effect to this Amendment. 
 (d) No Guarantors. As of the effective date of this
Amendment and after giving effect hereto, no Subsidiary other than United Dominion Realty, L.P. is required to be a Guarantor pursuant to the Credit Agreement as amended by this Amendment. 

Section 6. Reaffirmation of Representations by the Borrower. The Borrower hereby repeats and reaffirms all representations
and warranties made by it to the Administrative Agent and the Lenders in the Credit Agreement and the other Loan Documents to which it is a party on and as of the date hereof with the same force and effect as if such representations and warranties
were set forth in this Amendment in full. 

  
 - 9 -

 Section 7. Certain References. Each reference to the Credit Agreement in any of
the Loan Documents shall be deemed to be a reference to the Credit Agreement as amended by this Amendment. 
 Section 8.
Obligations. The Borrower confirms that all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan, whether direct or indirect (including
those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue under the Loan Documents after the commencement by or against any Loan Party or any Affiliate
thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding, are “Obligations” under and as defined in the
Credit Agreement. 
 Section 9. Costs and Expenses. The Borrower shall reimburse the Administrative Agent upon
demand for all costs and expenses (including attorneys’ fees) incurred by the Administrative Agent in connection with the preparation, negotiation and execution of this Amendment and the other agreements and documents executed and delivered in
connection herewith. 
 Section 10. Benefits. This Amendment shall be binding upon and shall inure to the benefit of
the parties hereto and their respective successors and assigns. 
 Section 11. GOVERNING LAW. THIS AMENDMENT SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE. 
 Section 12. Effect. Except as expressly herein amended, the terms and conditions of the Credit Agreement and the other Loan Documents remain in full force and effect. The amendments contained
herein shall be deemed to have prospective application only, unless otherwise specifically stated herein. The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right,
power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents. 
 Section 13. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and shall be binding upon all parties, their successors
and assigns. 
 Section 14. Definitions. All capitalized terms not otherwise defined herein are used herein with the
respective definitions given them in the Credit Agreement. 
 [Signatures on Next Page] 

  
 - 10 -

 IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to Credit Agreement
to be executed as of the date first above written. 
  

			
	UDR, INC., a Maryland corporation
		
	By:	 	 /s/ William T. O’Shields III

		 	Name: William T. O’Shields III
		 	Title: Vice President—Treasurer

 [Signatures Continue on Next Page] 

 [Signature Page to Second Amendment to Credit Agreement with UDR, Inc.] 

 

					
	WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Administrative Agent and individually as a Lender
		
	By:	 	 /s/ J. Derek Evans

		 	Name:	 	 J. Derek Evans

		 	Title:	 	 Senior Vice President

 [Signatures Continue on Next Page] 

 [Signature Page to Second Amendment to Credit Agreement with UDR, Inc.] 

 

					
	 JPMORGAN CHASE BANK, N.A. as a Lender

		
	 By:
	 	/s/ Kimberly Turner
		 	 Name:
	 	 Kimberly Turner

		 	 Title:
	 	 Executive Director

 [Signature Page to Second Amendment to Credit Agreement with UDR, Inc.] 

 

					
	 BANK OF AMERICA, N.A.

		
	 By:
	 	/s/ Helen Chan
		 	 Name:
	 	 Helen Chan

		 	 Title:
	 	 Vice President

 [Signature Page to Second Amendment to Credit Agreement with UDR, Inc.] 

 

					
	 PNC BANK, NATIONAL ASSOCIATION, as a Lender

		
	 By:
	 	/s/ James A. Harmann
		 	 Name:
	 	 James A. Harmann

		 	 Title:
	 	 Senior Vice President

 [Signature Page to Second Amendment to Credit Agreement with UDR, Inc.] 

 

					
	 US BANK, NATIONAL ASSOCIATION, as a Lender

		
	 By:
	 	/s/ Andrew Hyde
		 	 Name:
	 	 Andrew Hyde

		 	 Title:
	 	 Vice President

 [Signature Page to Second Amendment to Credit Agreement with UDR, Inc.] 

 

					
	 CITIBANK, N.A., as a Lender

		
	 By:
	 	/s/ John C. Rowland
		 	 Name:
	 	 John C. Rowland

		 	 Title:
	 	 Vice President

 [Signature Page to Second Amendment to Credit Agreement with UDR, Inc.] 

 

					
	 MORGAN STANLEY BANK, N.A., as a Lender

		
	 By:
	 	/s/ Michael King
		 	 Name:
	 	 Michael King

		 	 Title:
	 	 Authorized Signatory

 [Signature Page to Second Amendment to Credit Agreement with UDR, Inc.] 

 

					
	 Regions Bank, as a Lender

		
	 By:
	 	/s/ Lori Chambers
		 	 Name:
	 	 Lori Chambers

		 	 Title:
	 	 Vice President

 [Signature Page to Second Amendment to Credit Agreement with UDR, Inc.] 

 

					
	 Union Bank, N.A., as a Lender

		
	 By:
	 	/s/ Juliana Matson
		 	 Name:
	 	 Juliana Matson

		 	 Title:
	 	 Vice President

 [Signature Page to Second Amendment to Credit Agreement with UDR, Inc.] 

 

					
	 Credit Suisse AG, Cayman Islands Branch, as a Lender

		
	 By:
	 	/s/ Mikhail Faybusovich
		 	 Name:
	 	 Mikhail Faybusovich

		 	 Title:
	 	 Authorized Signatory

		
	 By:
	 	/s/ Tyler R. Smith
		 	 Name:
	 	Tyler R. Smith
		 	 Title:
	 	 Authorized Signatory

 [Signature Page to Second Amendment to Credit Agreement with UDR, Inc.] 

 

					
	 COMPASS BANK, as a Lender

		
	 By:
	 	/s/ Brian Tuerff
		 	 Name:
	 	 Brian Tuerff

		 	 Title:
	 	 Senior Vice President

 [Signature Page to Second Amendment to Credit Agreement with UDR, Inc.] 

 

					
	 SUNTRUST BANK, as a Lender

		
	 By:
	 	/s/ Nancy B. Richards
		 	 Name:
	 	 Nancy B. Richards

		 	 Title:
	 	 Senior Vice President

 [Signature Page to Second Amendment to Credit Agreement with UDR, Inc.] 

 

					
	 Branch Banking and Trust Company, as a Lender

		
	 By:
	 	/s/ Steve Whitcomb
		 	 Name:
	 	 Steve Whitcomb

		 	 Title:
	 	 Senior Vice President

 SCHEDULE I 
 Commitments 
  

					
	 Lender
	  	Commitment	 
	 Wells Fargo Bank, National Association
	  	$	100,000,000	  
	 JPMorgan Chase Bank, N.A.
	  	$	100,000,000	  
	 Bank of America, N.A.
	  	$	82,500,000	  
	 PNC Bank, National Association
	  	$	82,500,000	  
	 U.S. Bank National Association
	  	$	82,500,000	  
	 Citibank, N.A.
	  	$	65,000,000	  
	 Morgan Stanley Bank, N.A.
	  	$	65,000,000	  
	 Regions Bank
	  	$	65,000,000	  
	 Union Bank, N.A.
	  	$	65,000,000	  
	 Credit Suisse AG
	  	$	52,500,000	  
	 BBVA Compass Bank
	  	$	50,000,000	  
	 SunTrust Bank
	  	$	50,000,000	  
	 Branch Banking and Trust Company
	  	$	40,000,000	  
		  	  
	  
	 
	 TOTAL
	  	$	900,000,000	  
		  	  
	  
	 

  
 Schedule I-1

 SCHEDULE II 
 Released Guarantors 
 The Commons of Columbia, Inc. 

Hawthorne Apartments LLC 
 Heritage Communities
LLC 
 UDR 1818 Platinum LLC 
 UDR
Arborview Associates LLC 
 UDR Carriage Homes, LLC 
 UDR Domain Brewers Hill LLC 
 UDR Garrison Square LLC 

UDR Presidential Greens, L.L.C. 
 UDR Rivergate
LLC 
 UDR Towers by the Bay LLC 
 View
14 Investments LLC 
 UDR California Properties, LLC 
 UDR Virginia Properties, LLC 
 UDR of Tennessee, L.P. 

AAC Funding Partnership II 
 CMP-1, LLC

 UDR Texas Properties LLC 
 Waterside
Towers, L.L.C. 
 Ninety Five Wall Street LLC 
 Polo Park Apartments LLC 
 UDR Calvert, LLC 

UDR Crane Brook LLC 
 Northbay Properties II,
L.P. 
 Winterland San Francisco Partners, a California Limited Partnership 
 AAC Funding IV, LLC 
 Jamestown of St. Matthews Limited Partnership 

Inlet Bay at Gateway, LLC 
 Continental 146 Fund,
LLC 
 UDR Ridgewood (II) Garden, LLC, 

UDR Crossroads, L.P. 
 UDR Presidio, LP

 UDR Villa Venetia Apartments, L.P. 

UDR/Pacific Los Alisos, L.P. 
 LPC Plantation
Apartments, L.P. 
 Macalpine Place Apartment Partners, LTD. 
 Andover House LLC 
 Coastal Monterey Properties LLC 

DCO Holdings, Inc. 
 DCO Millenia LLC 

DCO Realty LP LLC 
 Harding Park, Inc.

 UDR Holdings, LLC 
 Ashwood Commons
North LLC 
 Ashwood Commons, L.L.C. 

DCO 2400 14th Street LLC 
 DCO Arbors at Lee
Vista LLC 
 DCE Bennett Development LP 

DCO Brookhaven Center LP 

  
 Schedule II-1

 SCHEDULE II (Cont.) 
 Released Guarantors 
 DCO Glenwood Urban LP 

DCO Highlands LLC 
 DCO Mission Bay LP

 DCO Option 2 LLC 
 DCO Pine Avenue LP

 DCO Realty Surprise LLC 
 DCO Realty
Woodlands LP 
 DCO Realty, Inc. 
 DCO
Savoye LLC 
 HPI Option 2 LLC 
 LPC
Millenia Place Apartments LLC 
 RE3, Inc. 
 Sierra Palms Condominiums LLC 

  
 Schedule II-2

 EXHIBIT A 
 FORM OF GUARANTOR ACKNOWLEDGEMENT 
 THIS GUARANTOR ACKNOWLEDGEMENT dated as of
June     , 2013 (this “Acknowledgement”) executed by each of the undersigned (the “Guarantors”) in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (the
“Administrative Agent”) and each “Lender” a party to the Credit Agreement referred to below (the “Lenders”). 
 WHEREAS, UDR, INC. (the “Borrower”), the Lenders, the Administrative Agent and certain other parties have entered into that certain Credit Agreement dated as of October 25, 2011 (as
amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”); 
 WHEREAS, each of
the Guarantors is a party to that certain Guaranty dated as of October 25, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Guaranty”) pursuant to which they guarantied, among other things,
the Borrower’s obligations under the Credit Agreement on the terms and conditions contained in the Guaranty; 
 WHEREAS,
the Borrower, the Administrative Agent and the Lenders are to enter into a Second Amendment to Credit Agreement dated as of the date hereof (the “Amendment”), to amend the terms of the Credit Agreement on the terms and conditions
contained therein; and 
 WHEREAS, it is a condition precedent to the effectiveness of the Amendment that each of the Guarantors
execute and deliver this Acknowledgement. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by the parties hereto, the parties hereto agree as follows: 
 Section 1.
Reaffirmation. Each Guarantor hereby reaffirms its continuing obligations to the Administrative Agent and the Lenders under the Guaranty and agrees that the transactions contemplated by the Amendment shall not in any way affect the validity
and enforceability of the Guaranty, or reduce, impair or discharge the obligations of such Guarantor thereunder. 

Section 2. Governing Law. THIS ACKNOWLEDGEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE. 
 Section 3. Counterparts.
This Acknowledgement may be executed in any number of counterparts, each of which shall be deemed to be an original and shall be binding upon all parties, their successors and assigns. 

[Signatures on Next Page] 

  
 A-1

 IN WITNESS WHEREOF, each Guarantor has duly executed and delivered this Guarantor
Acknowledgement as of the date and year first written above. 
  

							
	UNITED DOMINION REALTY, L.P., a Delaware limited partnership
		
	 By:
	 	 UDR, INC., a Maryland corporation

			
		 	By:	 	 
		 		 	Name:	 	  

		 		 	Title:	 	  

  
 A-2

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