Document:

<PAGE>   1
                                                                    EXHIBIT 4.20

                                SECOND AMENDMENT

         THIS SECOND AMENDMENT (this "Amendment") dated as of July 30, 2001, is
to that certain Credit Agreement dated as of August 31, 2000 (as previously
amended and modified and as amended, modified, supplemented or restated from
time to time, the "Credit Agreement") among PULTE HOMES, INC. f/k/a Pulte
Corporation, a Michigan corporation (the "Borrower"), each of the Material
Subsidiaries of the Borrower (the "Guarantors"; together with the Borrower,
individually a "Credit Party" and collectively the "Credit Parties"), the
Lenders from time to time party thereto (the "Lenders"), BANK OF AMERICA, N.A.,
as Administrative Agent for the Lenders (the "Administrative Agent"), BANK ONE,
NA, as Syndication Agent for the Lenders and COMERICA BANK, as Co-Agent for the
Lenders. Capitalized terms used herein and not otherwise defined shall have the
meanings set forth in the Credit Agreement.

                               W I T N E S S E T H

         WHEREAS, the Borrower has informed the Lenders that it intends to
acquire all of the Capital Stock of Del Webb Corp.;

         WHEREAS, the Borrower and the Lenders have requested certain amendments
to the Credit Agreement in connection with such Acquisition;

         WHEREAS, the amendments requested require the consent of the Required
Lenders; and

         WHEREAS, the Required Lenders have agreed to the amendments on the
terms and conditions set forth herein.

         NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

                                    SECTION 1
                                    AMENDMENT

         The Credit Agreement is hereby amended as follows:

         1.1 Amendments to Section 1.1.

                  (a) The definition of "Co-Agent" is hereby amended and
         restated in its entirety to read as follows:

                           "Co-Agent" means each of Comerica Bank (or any
                  successor thereto) and SunTrust Bank (or any successor
                  thereto).

                  (b) The definition of "Credit Documents" is hereby amended and
         restated in its entirety to read as follows:

<PAGE>   2

                           "Credit Documents" means this Credit Agreement, the
                  Notes, any Joinder Agreement, the Intercreditor Agreement and
                  all other related agreements and documents issued or delivered
                  hereunder or thereunder or pursuant hereto or thereto.

                  (c) The definition of "Debt to Capitalization Ratio" is hereby
         amended and restated in its entirety to read as follows:

                           "Debt to Capitalization Ratio" means, as of any date,
                  the ratio of (a) Funded Debt less (i) Subordinated Debt issued
                  by the Credit Parties which matures on or after the Maturity
                  Date in an aggregate amount not to exceed $100,000,000 and
                  (ii) all cash and Cash Equivalents held by the Credit Parties
                  in excess of $25,000,000 but less than $100,000,000, to (b)
                  Capitalization.

                  (d) The definition of "Del Webb Acquisition" is hereby added
         to read as follows:

                           "Del Webb Acquisition" means the Acquisition by the
                  Borrower of Del Webb Corp.

                  (e) The definition of "Documentation Agent" is hereby added to
         read as follows:

                           "Documentation Agent" means Citicorp Real Estate,
                  Inc. (or any successor thereto).

                  (f) The definition of "Funded Debt" is hereby amended and
         restated in its entirety to read as follows:

                           "Funded Debt" means, without duplication, the sum of
                  all Indebtedness of the Credit Parties for borrowed money
                  other than Indebtedness owed to a REIT, including, without
                  limitation, (a) all purchase money Indebtedness of the Credit
                  Parties, (b) the principal portion of all obligations of the
                  Credit Parties under Capital Leases, (c) all Guaranty
                  Obligations of the Credit Parties with respect to Indebtedness
                  of another Person, (d) all Indebtedness of another entity
                  secured by a Lien on any property of the Credit Parties
                  whether or not such Indebtedness has been assumed by a Credit
                  Party, and (e) all Indebtedness of any partnership or
                  unincorporated joint venture to the extent a Credit Party is
                  legally obligated or has a reasonable expectation of being
                  liable with respect thereto, net of any assets of such
                  partnership or joint venture.

                  (g) The definition of "Intercreditor Agreement" is hereby
         added to read as follows:

                           "Intercreditor Agreement" means that certain
                  Intercreditor and Subordination Agreement, dated as of the
                  closing date of the Del Webb Acquisition, among the
                  Administrative Agent, on behalf of the Lenders, Citicorp Real
                  Estate, Inc. and Bank One Trust Company, National Association,
                  as secured creditors, Asset Seven Corp., an Arizona
                  corporation, and all other REITs that become a party to the
                  Intercreditor Agreement after the Second Amendment

<PAGE>   3

                  Effective Date, as subordinated creditors, in form and
                  substance satisfactory to the Administrative Agent.

                  (h) The definition of "Permitted Liens" is hereby amended by
         adding the following clause (m) thereto and making the appropriate
         grammatical and punctuation changes:

                           (m) mortgage Liens granted to secure Indebtedness
                  permitted by Section 8.1(j) so long as such mortgage Liens are
                  unrecorded and unperfected.

                  (i) The definition of "Second Amendment Effective Date" is
         hereby added to read as follows:

                           "Second Amendment Effective Date" means July 30,
                  2001.

                  (j) The definition of "REIT" is hereby added to read as
         follows:

                           "REIT" means a collective reference to Asset Seven
                  Corp., an Arizona corporation, and any other Credit Party
                  (other than the Borrower) that properly elects to be taxed as
                  a real estate investment trust under Section 856(c) of the
                  Code and which becomes a party to the Intercreditor Agreement.

         1.2 Amendment to Section 7.2(b). Section 7.2(b) is hereby amended and
restated in its entirety to read as follows:

         7.2 FINANCIAL COVENANTS.

                                  ************

                           (b) Tangible Net Worth. As of the last day of each
                  fiscal quarter of the Borrower (beginning with the fiscal
                  quarter ending September 30, 2000), Tangible Net Worth shall
                  be greater than or equal to (i) prior to the closing of the
                  Del Webb Acquisition, the sum of (A) $800 million, plus (B)
                  50% of the cumulative Net Income (without deduction for
                  losses) earned for each completed fiscal quarter subsequent to
                  March 31, 2000 to the date of determination and (ii) after the
                  closing of the Del Webb Acquisition, the sum of (A) 85% of
                  Tangible Net Worth as of September 30, 2001, plus (B) 50% of
                  the cumulative Net Income (without deduction for losses)
                  earned for each completed fiscal quarter subsequent to
                  September 30, 2001 to the date of determination.

         1.3 Amendment to Section 8.1. Section 8.1 is hereby amended by adding
the following subsection (j) thereto and making the appropriate grammatical and
punctuation changes:

                  8.1 INDEBTEDNESS.

                  No Credit Party will contract, create, incur, assume or permit
         to exist any Indebtedness, except:

                                  ************
<PAGE>   4

                           (j) Indebtedness owing by a Credit Party (other than
                  the Borrower) to a REIT; provided that (i) the Del Webb
                  Acquisition shall have been consummated, (ii) such REIT shall
                  have become a Guarantor pursuant to the terms of Section 7.12,
                  (iii) such REIT shall have entered into the Intercreditor
                  Agreement, (iv) such REIT shall be in compliance with the
                  terms of Section 8.14 and (v) such REIT shall qualify as a
                  real estate investment trust under applicable tax laws.

         1.4 Addition of New Section 8.14. A new Section 8.14 is hereby added to
read as follows:

         SECTION 8.14      RESTRICTIONS ON THE REIT.

                  No REIT will engage in any activities or operations whatsoever
         other than (a) general administrative and other functions permitted by
         law, (b) possessing any promissory notes that evidence the Indebtedness
         permitted by Section 8.1(j) and receiving payments of principal and
         interest on such promissory notes, (c) possessing any other "real
         estate assets" within the meaning of Section 856(c)(5) of the Code for
         purposes of satisfying the requirements for a real estate investment
         trust under applicable tax laws, (d) making or consenting to dividends
         and distributions to a Credit Party and (e) any other functions or
         other activities that are now or may become required or permitted of a
         REIT for purposes of satisfying the requirements for a real estate
         investment trust under applicable tax laws. Notwithstanding the terms
         of Sections 7.12, 8.1 and 8.2, (i) each REIT will at all times be a
         Guarantor and will not be released from its Guaranty Obligations under
         this Credit Agreement if it shall cease to be a Material Subsidiary,
         (ii) no REIT will incur any Indebtedness other than (A) its Guaranty
         Obligations under this Credit Agreement and (B) accounts payable
         incurred for general administrative and other functions of such REIT
         permitted by law in an amount not to exceed $100,000 at any time
         outstanding and (iii) no REIT will contract, create, incur, assume or
         permit to exist any Lien with respect to any of its property or assets
         of any kind (whether real or personal, tangible or intangible), whether
         now owned or after acquired, except for Liens in favor of the
         Administrative Agent and Permitted Liens relating to the possession and
         operation of its real property and other assets.

         1.5 Addition of New Section 10.10. A new Section 10.10 is hereby added
to read as follows:

                  SECTION 10.10 AUTHORIZATION OF INTERCREDITOR AGREEMENT.

                  Each of the Lenders hereby authorizes the Administrative Agent
         to enter into the Intercreditor Agreement on their behalf and to carry
         out the responsibilities and exercise the powers afforded the
         Administrative Agent therein.

         1.6 Addition of Agents. The following agents are hereby added to the
cover page and preamble of the Credit Agreement:

                           Citicorp Real Estate, Inc., as Documentation Agent
                           SunTrust Bank, as Co-Agent

<PAGE>   5

         1.7 Amendment to Schedule 1.1(a). Schedule 1.1(a) to the Credit
Agreement is hereby updated and replaced with the Schedule 1.1(a) attached
hereto.

                                   SECTION 2
                                 MISCELLANEOUS

         2.1 Ratification. The term "Credit Agreement" as used in each of the
Credit Documents shall hereafter mean the Credit Agreement as amended by this
Amendment. Except as herein specifically agreed, the Credit Agreement is hereby
ratified and confirmed and shall remain in full force and effect according to
its terms.

         2.2 Representations. Each of the Credit Parties and the Lenders party
hereto represents and warrants as follows:

                  (a) It has taken all necessary action to authorize the
         execution, delivery and performance of this Amendment.

                  (b) This Amendment has been duly executed and delivered by
         such Person and constitutes such Person's legal, valid and binding
         obligations, enforceable in accordance with its terms, except as such
         enforceability may be subject to (i) bankruptcy, insolvency,
         reorganization, fraudulent conveyance or transfer, moratorium or
         similar laws affecting creditors' rights generally and (ii) general
         principles of equity (regardless of whether such enforceability is
         considered in a proceeding at law or in equity).

                  (c) No consent, approval, authorization or order of, or
         filing, registration or qualification with, any court or Governmental
         Authority or third party is required in connection with the execution,
         delivery or performance by such Person of this Amendment.

         2.3 No Conflicts. Neither the execution and delivery of this Amendment,
nor the consummation of the transactions contemplated herein, nor performance of
and compliance with the terms and provisions hereof by each Credit Party will
(a) violate, contravene or conflict with any provision of its articles or
certificate of incorporation, bylaws or other organizational or governing
document, (b) violate, contravene or conflict with any law, rule, regulation,
order, writ, judgment, injunction, decree or permit applicable to it, (c)
violate, contravene or conflict with contractual provisions of, or cause an
event of default under, any material indenture, loan agreement, mortgage, deed
of trust, contract or other agreement or instrument to which it is a party or by
which it may be bound or (d) result in or require the creation of any Lien upon
or with respect to its properties.

         2.4 No Default. The Credit Parties represent and warrant to the Lenders
that (a) the representations and warranties of the Credit Parties set forth in
Section 6 of the Credit Agreement are true and correct as of the date hereof and
(b) no event has occurred and is continuing which constitutes a Default or an
Event of Default.

         2.5 General Release. In consideration of the Required Lenders entering
into this Amendment, the Credit Parties hereby release the Administrative Agent,
the Lenders and their respective officers, employees, representatives, agents,
counsel and directors from any and all actions, causes of action, claims,
demands, damages and liabilities of whatever kind or nature, in

<PAGE>   6

law or in equity, now known or unknown, suspected or unsuspected to the extent
that any of the foregoing arises from any action or failure to act under any
Credit Document on or prior to the date hereof.

         2.6 Credit Document. This Amendment shall constitute a Credit Document
under the terms of the Credit Agreement.

         2.7 Condition Precedent. This Amendment shall be effective upon receipt
by the Administrative Agent of a counterpart signature (via facsimile or
otherwise) to this Amendment from each of the Credit Parties and the Required
Lenders.

         2.8 Counterparts; Telecopy. This Amendment may be executed in any
number of counterparts, each of which when so executed and delivered shall be an
original, but all of which shall constitute one and the same instrument.
Delivery of an executed counterpart by telecopy shall be effective as an
original and shall constitute a representation that an original will be
delivered.

         2.9 Expenses of Administrative Agent. The Credit Parties agree to pay
all reasonable costs and expenses of the Administrative Agent in connection with
the preparation, execution and delivery of this Amendment, including without
limitation the reasonable fees and expenses of Moore & Van Allen PLLC, special
counsel to the Administrative Agent.

         2.10 GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH CAROLINA.

                  [Remainder of Page Intentionally Left Blank]

         IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart
of this Amendment to be duly executed and delivered as of the date and year
first above written.

BORROWER:
                            PULTE HOMES, INC. F/K/A PULTE CORPORATION,
                            a Michigan corporation

                            By:
                               --------------------------------------------

                            Name:
                                 ------------------------------------------

                            Title:
                                  -----------------------------------------

<PAGE>   7

GUARANTORS:

                               ABACOA HOMES, INC.,
                               a Florida corporation

                               DIVOSTA AND COMPANY, INC.,
                               a Florida corporation

                               DIVOSTA BUILDING CORPORATION,
                               a Florida corporation

                               DIVOSTA HOMES, INC.,
                               a Florida corporation

                               FLORIDA BUILDING PRODUCTS, INC.,
                               a Florida corporation

                               FLORIDA CLUB HOMES, INC.,
                               a Florida corporation

                               HAMMOCK RESERVE DEVELOPMENT
                               COMPANY, a Florida corporation

                               HOMESITE SOLUTIONS CORPORATION,
                               a Michigan corporation

                               ISLAND WALK DEVELOPMENT COMPANY,
                               a Florida corporation

                               PB VENTURE L.L.C.,
                               a Michigan limited liability company

                               PN II, INC.,
                               a Nevada corporation

                               PULTE DEVELOPMENT CORPORATION,
                               a Michigan corporation

                               PULTE DIVERSIFIED COMPANIES, INC.,
                               a Michigan corporation

                               PULTE FINANCIAL COMPANIES, INC.,
                               a Michigan corporation

                               PULTE HOME CORPORATION,
                               a Michigan corporation

<PAGE>   8

                               PULTE HOME CORPORATION OF NEW
                               ENGLAND, a Michigan corporation

                               PULTE HOME CORPORATION OF THE
                               DELAWARE VALLEY, a Michigan corporation

                               PULTE HOMES OF GREATER KANSAS
                               CITY, INC., a Michigan corporation

                               PULTE HOMES OF MICHIGAN
                               CORPORATION, a Michigan corporation

                               PULTE HOMES OF MINNESOTA
                               CORPORATION, a Minnesota corporation

                               PULTE HOMES OF OHIO CORPORATION,
                               an Ohio corporation

                               PULTE HOMES OF SOUTH CAROLINA, INC.,
                               a Michigan corporation

                               PULTE HOMES OF TEXAS, L.P.,
                               a Texas limited partnership

                                        By:  PN I, INC., a Nevada corporation,
                                             its general partner

                               PULTE LAND DEVELOPMENT
                               CORPORATION, a Michigan corporation

                               PULTE LIFESTYLE COMMUNITIES, INC.,
                               a Michigan corporation

                               PULTE - IN CORPORATION,
                               a Michigan corporation

                               RADNOR HOMES, INC.,
                               a Michigan corporation

                               RIVERWALK OF THE PALM BEACHES
                               DEVELOPMENT COMPANY, INC.,
                               a Florida corporation

                               RN ACQUISITION 2 CORP.,
                               a Nevada corporation

<PAGE>   9

                               SEAN/CHRISTOPHER HOMES, INC.,
                               a Michigan corporation

                               VILLAGE WALK DEVELOPMENT
                               COMPANY, INC., a Florida corporation

                               WIL CORPORATION,
                               a Michigan corporation

                               By:
                                  ----------------------------------------------
                               Name:
                                    --------------------------------------------
                               Title:
                                     -------------------------------------------

<PAGE>   10

LENDERS:

                           BANK OF AMERICA, N.A.,
                           individually in its capacity as a Lender and
                           in its capacity as the Administrative Agent

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

<PAGE>   11

                           BANK ONE, NA,
                           individually in its capacity as a Lender and
                           in its capacity as the Syndication Agent

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

<PAGE>   12

                           COMERICA BANK,
                           individually in its capacity as a Lender and
                           in its capacity as a Co-Agent

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

<PAGE>   13

                           SUNTRUST BANK

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

<PAGE>   14

                           MICHIGAN NATIONAL BANK

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

<PAGE>   15

                           PNC BANK, NATIONAL ASSOCIATION

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

<PAGE>   16

                           THE FUJI BANK, LIMITED

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

<PAGE>   17

                           CREDIT LYONNAIS NEW YORK BRANCH

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

<PAGE>   18

                           THE NORTHERN TRUST COMPANY

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

<PAGE>   19

                           COMPASS BANK

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

<PAGE>   20

                           CITICORP REAL ESTATE, INC.

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

<PAGE>   21

                           CREDIT SUISSE FIRST BOSTON

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

<PAGE>   22

                                 Schedule 1.1(a)

                      Revolving Loan Commitment Percentages
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
                     LENDER                                  REVOLVING LOAN                         REVOLVING LOAN
                                                               COMMITMENT                       COMMITMENT PERCENTAGE
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>                                 <C>
Bank of America, N.A.                                         $100,000,000                           17.857142857%
-------------------------------------------------------------------------------------------------------------------------------
Bank One, NA                                                  $100,000,000                           17.857142857%
-------------------------------------------------------------------------------------------------------------------------------
Citicorp Real Estate, Inc.                                     $85,000,000                           15.178571429%
-------------------------------------------------------------------------------------------------------------------------------
Comerica Bank                                                  $50,000,000                           8.928571429%
-------------------------------------------------------------------------------------------------------------------------------
SunTrust Bank                                                  $50,000,000                           8.928571429%
-------------------------------------------------------------------------------------------------------------------------------
Credit Lyonnais New York Branch                                $40,000,000                           7.142857143%
-------------------------------------------------------------------------------------------------------------------------------
Michigan National Bank                                         $35,000,000                           6.250000000%
-------------------------------------------------------------------------------------------------------------------------------
PNC Bank, National Association                                 $35,000,000                           6.250000000%
-------------------------------------------------------------------------------------------------------------------------------
The Fuji Bank, Limited                                         $20,000,000                           3.571428571%
-------------------------------------------------------------------------------------------------------------------------------
Compass Bank                                                   $20,000,000                           3.571428571%
-------------------------------------------------------------------------------------------------------------------------------
The Northern Trust Company                                     $15,000,000                           2.678571429%
-------------------------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston                                     $10,000,000                           1.785714286%
-------------------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------
TOTAL:                                                        $560,000,000                               100%
-------------------------------------------------------------------------------------------------------------------------------
</TABLE><PAGE>   1
                                                                    EXHIBIT 4.21

                    INTERCREDITOR AND SUBORDINATION AGREEMENT

         THIS INTERCREDITOR AND SUBORDINATION AGREEMENT (this "Intercreditor
Agreement"), dated as of July 31, 2001, is by and among ASSET SEVEN CORP., an
Arizona corporation ("Asset Seven"), each subsidiary of Pulte Homes, Inc. that
from time to time executes an Intercreditor Joinder Agreement (as defined below)
(together with Asset Seven, individually a "Subordinated Creditor" and
collectively the "Subordinated Creditors"), BANK OF AMERICA, N.A., as
administrative agent for the Five Year Lenders from time to time party to the
Five Year Credit Agreement described below (in such capacity, "Bank of
America"), CITICORP REAL ESTATE, INC., as administrative agent for the Bridge
Lenders from time to time party to the Bridge Credit Agreement described below
(in such capacity, "Citicorp"), and BANK ONE TRUST COMPANY, NATIONAL
ASSOCIATION, as trustee for the Noteholders pursuant to the Indenture described
below (in such capacity, the "Trustee").

RECITALS:

         A. Pursuant to the terms of that certain Credit Agreement, dated as of
August 31, 2000 (as previously amended, modified or supplemented and as amended,
modified, supplemented or restated from time to time, the "Five Year Credit
Agreement"), among Pulte Homes, Inc. f/k/a Pulte Corporation (the "Borrower"),
the Material Subsidiaries of the Borrower (the "Guarantors"), the lenders from
time to time party thereto (the "Five Year Lenders") and Bank of America, the
Five Year Lenders have provided a revolving credit facility to the Borrower.

         B. Pursuant to the terms of that certain Credit Agreement, dated as of
the date hereof (as amended, modified, supplemented or restated from time to
time, the "Bridge Credit Agreement"), among the Borrower, the Guarantors, the
lenders party thereto (the "Bridge Lenders") and Citicorp, the Bridge Lenders
have provided a bridge loan credit facility to the Borrower.

         C. The Borrower has issued and may issue from time to time senior
unsecured notes (the "Senior Notes") pursuant to that certain indenture, dated
as of October 24, 1995, or a supplement thereto (as previously amended, modified
or supplemented and as amended, modified, supplemented or restated from time to
time, the "Indenture").

         D. The Subordinated Creditors are holders of promissory notes (the
"Subordinated Notes") from certain subsidiaries of the Borrower (the "Note
Issuers"), which Subordinated Notes are secured by mortgages on certain real
properties owned by the Note Issuers (the "Collateral").

         E. Each Subordinated Creditor is a subsidiary of the Borrower.

         F. In order to induce the Five Year Lenders, the Bridge Lenders and the
holders of the Senior Notes (the "Noteholders") to provide or continue to
provide the financial

<PAGE>   2

accommodations to the Borrower under the Five Year Credit Agreement, the Bridge
Credit Agreement and the Senior Notes (collectively, the "Senior Loan Documents"
and individually, a "Senior Loan Document"), and because of the direct benefit
to the Subordinated Creditors of such financial accommodations, Bank of America,
Citicorp and the Trustee have agreed to enter into this Intercreditor Agreement.

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

                                    ARTICLE I

                                   Definitions

         1.1 Certain Defined Terms. For the purposes hereof:

                  (a) "Code" means the Internal Revenue Code of 1986 and the
         rules and regulations promulgated thereunder, as amended, modified,
         succeeded or replaced from time to time. References to sections of the
         Code should be construed also to refer to any successor sections.

                  (b) "Event of Default" means (i) an "Event of Default" as
         defined in the Five Year Credit Agreement, (ii) an "Event of Default"
         as defined in the Bridge Credit Agreement or (iii) an event of default
         under the Senior Notes or the Indenture.

                  (c) "Senior Creditors" means (i) so long as any Senior
         Obligations (or commitments with respect thereto) remains outstanding
         under the Five Year Credit Agreement, Bank of America, (ii) so long as
         any Senior Obligations (or commitments with respect thereto) remains
         outstanding under the Bridge Credit Agreement, Citicorp, and (iii) so
         long as any Senior Obligations (or commitments with respect thereto)
         remains outstanding under the Senior Notes, the Trustee.

                  (d) "Senior Obligations" means (i) the "Credit Party
         Obligations" as defined in the Five Year Credit Agreement, (ii) the
         "Credit Party Obligations" as defined in the Bridge Credit Agreement
         and (iii) all obligations (including, without limitation, principal,
         interest and fees) outstanding under the Senior Notes.

                  (e) "Subordinated Obligations" means (i) the principal amount
         of, and accrued interest (including, without limitation, any interest
         which accrues after the commencement of any case, proceeding or other
         action relating to the bankruptcy, insolvency or reorganization of a
         Note Issuer) on any Subordinated Note, and (ii) all other indebtedness,
         obligations and liabilities of the Note Issuers to the Subordinated
         Creditors now existing or hereafter incurred.

                                       2
<PAGE>   3

                  (f) "Intercreditor Joinder Agreement" means an intercreditor
         joinder agreement in substantially the form of Exhibit A attached
         hereto.

         1.2 Other Definitional Provisions. The words "hereof," "herein" and
"hereunder" and words of similar import when used in this Intercreditor
Agreement shall refer to this Intercreditor Agreement as a whole and not to any
particular provision of this Intercreditor Agreement, and section, subsection,
schedule and exhibit references are to this Intercreditor Agreement unless
otherwise specified. Defined terms herein shall include in the singular number
the plural and in the plural the singular.

                                   ARTICLE II

                             Terms of Subordination

         2.1 Subordination.

                  (a) Each of the Subordinated Creditors agrees, for itself and
         each future holder of the Subordinated Obligations held by such
         Subordinated Creditor, that the Subordinated Obligations are expressly
         subordinate and junior in right of payment (as defined in subsection
         2.1(b)) to all Senior Obligations in all respects.

                  (b) "Subordinate and junior in right of payment" shall mean
         that:

                           (i) Upon the occurrence and during the continuance of
                  an Event of Default, none of the Subordinated Creditors will,
                  without the express prior written consent of the Senior
                  Creditors or unless otherwise instructed by the Senior
                  Creditors, take, demand or receive, directly or indirectly, by
                  set-off, redemption, purchase or in any other manner, any
                  payment on or security for the whole or any part of the
                  Subordinated Obligations, and, without the express prior
                  written consent of the Senior Creditors or unless otherwise
                  instructed by the Senior Creditors, none of the Subordinated
                  Creditors will make demand for the payment of or accelerate
                  the scheduled maturities of any amounts owing under the
                  Subordinated Obligations.

                           (ii) Until the Senior Obligations shall have been
                  paid in full and satisfied, upon the occurrence and during the
                  continuance of an Event of Default, none of the Subordinated
                  Creditors will accelerate, declare to be immediately due and
                  payable, enforce or take any action to enforce or collect, or
                  otherwise exercise any rights or remedies it may possess with
                  respect to the Subordinated Obligations or any portion
                  thereof, or take any action to enforce or otherwise exercise
                  any rights or remedies with respect to, or realize upon, the
                  Collateral, in each case without the prior written consent of
                  the Senior Creditors.

                                       3
<PAGE>   4

                           (iii) Without limiting the generality of the
                  foregoing provisions of this Section 2.1, in the event of any
                  liquidation, termination, revocation or other winding-up of a
                  Note Issuer, or in the event of any receivership, insolvency,
                  reorganization or bankruptcy proceedings, assignment for the
                  benefit of creditors or any proceeding by or against a Note
                  Issuer for any relief under any bankruptcy, reorganization or
                  insolvency law or laws (federal or state) or any law (federal
                  or state) relating to the relief of debtors, readjustment of
                  indebtedness, reorganization, composition or extension of
                  indebtedness, then, upon the occurrence and during the
                  continuance of an Event of Default, unless otherwise agreed to
                  or instructed in writing by the Senior Creditors, all Senior
                  Obligations shall first be paid in full before any payment or
                  distribution is made in respect of the Subordinated
                  Obligations, and any payment or distribution of any kind or
                  character (whether in cash, property or securities) that, but
                  for the subordination provisions contained herein, would
                  otherwise be payable or deliverable to a Subordinated Creditor
                  upon or in respect of the Subordinated Obligations, shall
                  instead be paid over or delivered to the Senior Creditors or
                  their representatives, and such Subordinated Creditor shall
                  not receive any such payment or distribution or any benefit
                  therefrom unless and until the Senior Obligations shall have
                  been fully paid and satisfied.

         2.2 Power of Attorney; Agreement to Cooperate. Each of the Subordinated
Creditors hereby agrees, upon the occurrence of an Event of Default, to duly and
promptly take such action as may be requested at any time and from time to time
by the Senior Creditors, to file appropriate proofs of claim in respect of the
Subordinated Obligations, and to execute and deliver such powers of attorney,
assignment of proofs of claim or other instruments as may be requested by the
Senior Creditors in order to enable the Senior Creditors to enforce any and all
claims upon or in respect of the Subordinated Obligations and to collect and
receive any and all payments or distributions which may be payable or
deliverable at any time upon or in respect of the Subordinated Obligations.

         2.3 Payments Received by a Subordinated Creditor. Should any payment or
distribution or security or realization of the Collateral, or the proceeds of
any thereof, be collected or received by a Subordinated Creditor in respect of
the Subordinated Obligations, and such collection or receipt is received in a
receivership, insolvency, reorganization or bankruptcy proceeding involving a
Note Issuer or is not expressly permitted hereunder, the Subordinated Creditor
will forthwith turn over the same to the Senior Creditors in the form received
(except for endorsement or assignment by the Subordinated Creditor when
necessary) to be applied to the Senior Obligations and, until so turned over,
the same shall be held in trust by the Subordinated Creditor as the property of
the Senior Creditors.

         2.4 Subrogation. The Subordinated Creditors shall not be subrogated to
the rights of the Senior Creditors to receive payments or distributions of
assets of the Note Issuers for the Senior Obligations.

                                       4
<PAGE>   5

         2.5 Application of Payments Among Senior Creditors. Any payment with
respect to the Senior Obligations or received by a Senior Creditor pursuant to
the terms of this Intercreditor Agreement shall be applied pro rata to the
Senior Obligations outstanding under the Five Year Credit Agreement, the Bridge
Credit Agreement and the Senior Notes based on the aggregate amount of Senior
Obligations outstanding under the Five Year Credit Agreement, the Bridge Credit
Agreement and the Senior Notes, respectively, on the date of such payment, as
certified by Bank of America, Citicorp and the Trustee, respectively, to the
other Senior Creditors.

                                   ARTICLE III

                         Representations and Warranties

         3.1 Each of the Subordinated Creditors represents and warrants to the
Senior Creditors that:

                  (a) Subordinated Obligations. The Subordinated Obligations are
         payable solely and exclusively to the Subordinated Creditors and to no
         other person, firm, corporation or other entity, without deduction for
         any defense, offset or counterclaim.

                  (b) Power and Authority; Authorization; No Violation. Each
         Subordinated Creditor has full power, authority and legal right to
         execute, deliver and perform this Intercreditor Agreement, and, the
         execution, delivery and performance of this Intercreditor Agreement
         have been duly authorized by all necessary action on the part of such
         Subordinated Creditor, do not require any approval or consent of any
         holders of any indebtedness or obligations of such Subordinated
         Creditor and will not violate any provision of law, governmental
         regulation, order or decree or any provision of any indenture,
         mortgage, contract or other agreement to which such Subordinated
         Creditor is party or by which such Subordinated Creditor is bound.

                  (c) Consents. No consent, license, approval or authorization
         of, or registration or declaration with, any governmental
         instrumentality, domestic or foreign, is required in connection with
         the execution, delivery and performance by the Subordinated Creditor of
         this Intercreditor Agreement.

                  (e) Binding Obligation. This Intercreditor Agreement
         constitutes a legal, valid and binding obligation of the Subordinated
         Creditor enforceable in accordance with its terms.

                                       5
<PAGE>   6

                                   ARTICLE IV

                             Modification of Senior
                              Obligations; Reliance

         4.1 Each of the Subordinated Creditors agrees that, without the
necessity of any reservation of rights against such Subordinated Creditor and
without notice to or further assent by such Subordinated Creditor, (a) any
demand for payment of any Senior Obligation may be continued, and the Senior
Obligations or the liability of the Borrower or any of its subsidiaries for any
part thereof, or any guaranty therefor, or right of offset with respect thereto,
may, from time to time, in whole or in part, be renewed, extended, modified,
accelerated, compromised, waived, surrendered, or released and (b) any document
or instrument evidencing or governing the terms of the Senior Obligations or
guaranties or documents in connection with the Senior Obligations may be
amended, modified, supplemented or terminated, in whole or in part, as the
applicable Senior Creditor may deem advisable from time to time, in each case
all without notice to or further assent by such Subordinated Creditor, which
will remain bound under this Intercreditor Agreement, and all without impairing,
abridging, releasing or affecting the subordination provided for herein,
notwithstanding any such renewal, extension, modification, acceleration,
compromise, amendment, supplement, termination, waiver, surrender or release.
Each of the Subordinated Creditors waives (i) any and all notice of the
creation, modification, renewal, extension or accrual of any of the Senior
Obligations and (ii) notice of or proof of reliance on this Intercreditor
Agreement and protest, demand for payment and notice of an Event of Default. The
Senior Obligations shall conclusively be deemed to have been created,
contracted, incurred or continued in reliance upon this Intercreditor Agreement,
and all dealings between or among the Note Issuers and the Senior Creditors
shall be deemed to have been consummated in reliance upon this Intercreditor
Agreement. The Subordinated Creditors acknowledge and agree that the Senior
Creditors, the Five Year Lenders, the Bridge Lenders and the Noteholders have
relied upon the subordination provided for herein in making the Senior
Obligations available to the Borrower.

                                    ARTICLE V

              No Transfer of Subordinated Obligations or Collateral

         5.1 The Subordinated Creditors will not (a) sell, assign or otherwise
transfer, in whole or in part, any Subordinated Obligation or any Collateral
held by the Subordinated Creditors or any interest therein to any other person
or entity (a "Transferee") other than a Subordinated Creditor or (b) create,
incur or suffer to exist any security interest, lien, charge or other
encumbrance whatsoever upon the Subordinated Obligations or the Collateral in
favor of any Transferee.

                                       6
<PAGE>   7

                                   ARTICLE VI

                     Joinder of Other Subordinated Creditors

         6.1 Any subsidiary of the Borrower that properly elects to be taxed as
a real estate investment trust under Section 856(c) of the Code may become a
Subordinated Creditor hereunder by executing and delivering an Intercreditor
Joinder Agreement. Upon receipt by the Senior Creditors of an Intercreditor
Joinder Agreement from a subsidiary of the Borrower, such subsidiary shall be
considered a Subordinated Creditor under the terms of this Intercreditor
Agreement.

                                   ARTICLE VII

                                  Miscellaneous

         7.1 No Waiver; Cumulative Remedies. No failure or delay on the part of
any Senior Creditor, Five Year Lender, Bridge Lender or Noteholder in exercising
any right, power or privilege hereunder or under any Senior Loan Document or any
other loan document entered into in connection therewith and no course of
dealing between the Subordinated Creditors and any Senior Creditor, Five Year
Lender, Bridge Lender or Noteholder shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, power or privilege hereunder or
under any other Senior Loan Document or any other loan document entered into in
connection therewith preclude any other or further exercise thereof or the
exercise of any other right, power or privilege hereunder or thereunder. The
rights and remedies provided herein are cumulative and not exclusive of any
rights or remedies which the Senior Creditors, the Five Year Lender, the Bridge
Lenders and the Noteholders would otherwise have. No notice to or demand on any
Subordinated Creditor in any case shall entitle such Subordinated Creditor to
any other or further notice or demand in similar or other circumstances or
constitute a waiver of the rights of the Senior Creditors, the Five Year
Lenders, the Bridge Lenders and the Noteholders to any other or further action
in any circumstances without notice or demand.

         7.2 Further Assurances. The Subordinated Creditors agree, upon the
request of a Senior Creditor, to promptly take such actions, as reasonably
requested, as is necessary to carry out the intent of this Intercreditor
Agreement.

         7.3 Notices. All notices and other communications with respect to this
Intercreditor Agreement shall have been duly given and shall be effective (a)
when delivered in writing, (b) when transmitted via telecopy (or other facsimile
device) to the number set out below, (c) the business day following the day on
which the same has been delivered prepaid (or on an invoice basis) to a
reputable national overnight air courier service, or (d) the third business day
following the day on which the same is sent by certified or registered mail,
postage prepaid, in each case to the respective parties at the address or
telecopy numbers set forth below or at such other address as such party may
specify by written notice to the other parties hereto.

                                       7
<PAGE>   8

To Bank of America:        Bank of America, N.A.
                           231 S. LaSalle Street
                           Chicago, IL  60697
                           Attn:  Pam Quebbeman
                           Ph:     312/923-0207
                           Fax:    312/828-3950

To Citicorp:               Citicorp Real Estate, Inc.
                           Global Loan Support Service Center
                           2 Penn's Way, Suite 200
                           New Castle, DE 19720
                           Attn:  David Bouton
                           Ph:     (212) 723-5883
                           Fax:    (212) 723-8380

To the Trustee:            Bank One Trust Company, National Association

                           -----------------------------------

                           -----------------------------------

                           -----------------------------------
                           Attn:
                                ------------------------------
                           Ph:
                              --------------------------------
                           Fax:
                               -------------------------------

         7.4 Governing Law; Jurisdiction.

                  (a) THIS INTERCREDITOR AGREEMENT AND THE RIGHTS AND
         OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED
         AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
         Any legal action or proceeding with respect to this Intercreditor
         Agreement may be brought in the courts of the State of New York or of
         the United States for the Southern District of New York, and, by
         execution and delivery of this Intercreditor Agreement, each party
         hereto hereby irrevocably accepts for itself and in respect of its
         property, generally and unconditionally, the jurisdiction of such
         courts. Each party hereto further irrevocably consents to the service
         of process out of any of the aforementioned courts in any such action
         or proceeding by the mailing of copies thereof by registered or
         certified mail, postage prepaid, to it at the address for notices
         pursuant to Section 7.3, such service to become effective 20 days after
         such mailing. Nothing herein shall affect the right of a Senior
         Creditor to serve process on a Subordinated Creditor in any other
         manner permitted by law or to commence legal proceedings or to
         otherwise proceed against a Subordinated Creditor in any other
         jurisdiction.

                  (b) Each party hereto hereby irrevocably waives any objection
         which it may now or hereafter have to the laying of venue of any of the
         aforesaid actions or proceedings arising out of or in connection with
         this Intercreditor Agreement brought in the courts referred to in
         subsection (a) hereof and hereby further irrevocably waives and

                                       8
<PAGE>   9

         agrees not to plead or claim in any such court that any such action or
         proceeding brought in any such court has been brought in an
         inconvenient forum.

         7.5 Waiver of Jury Trial. EACH OF THE PARTIES TO THIS INTERCREDITOR
AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS INTERCREDITOR
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

         7.6 Successors and Assigns. This Intercreditor Agreement shall be
binding upon and inure to the benefit of the Senior Creditors, the Subordinated
Creditors, and their respective successors, transferees and assigns.

         7.7 Severability. If any provision of any of this Intercreditor
Agreement is determined to be illegal, invalid or unenforceable, such provision
shall be fully severable and the remaining provisions shall remain in full force
and effect and shall be construed without giving effect to the illegal, invalid
or unenforceable provisions.

         7.8 Counterparts. This Intercreditor Agreement may be executed in any
number of counterparts, each of which where so executed and delivered shall be
an original, but all of which shall constitute one and the same instrument.
Delivery of executed counterparts by telecopy shall be as effective as an
original and shall constitute a representation that an original will be
delivered.

         7.9 Waivers, Amendments, Etc. This Intercreditor Agreement may not be
rescinded or canceled or modified in any way, nor may any provision of this
Intercreditor Agreement be waived or changed without the express prior written
consent thereto of the Senior Creditors.

                                       9
<PAGE>   10

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

SUBORDINATED CREDITOR:                    ASSET SEVEN CORP.,
                                          an Arizona corporation

                                          By:
                                              ----------------------------------
                                          Name:
                                                --------------------------------
                                          Title:
                                                 -------------------------------

<PAGE>   11

SENIOR CREDITOR:                          BANK OF AMERICA, N.A.,
                                          as administrative agent for the Five
                                          Year Lenders

                                          By:
                                              ----------------------------------
                                          Name:
                                                --------------------------------
                                          Title:
                                                 -------------------------------

<PAGE>   12

SENIOR CREDITOR:                          CITICORP REAL ESTATE, INC.,
                                          As administrative agent for the Bridge
                                          Lenders

                                          By:
                                              ----------------------------------
                                          Name:
                                                --------------------------------
                                          Title:
                                                 -------------------------------

<PAGE>   13

SENIOR CREDITOR:                          BANK ONE TRUST COMPANY, NATIONAL
                                          ASSOCIATION, as Trustee

                                          By:
                                              ----------------------------------
                                          Name:
                                                --------------------------------
                                          Title:
                                                 -------------------------------

<PAGE>   14

                                    EXHIBIT A

                     Form of Intercreditor Joinder Agreement

         THIS INTERCREDITOR JOINDER AGREEMENT (this "Agreement"), dated as of
         ,        is entered into among , a (the "New REIT") and BANK OF
AMERICA, N.A., CITICORP REAL ESTATE, INC. and BANK ONE TRUST COMPANY, NATIONAL
ASSOCIATION, in their capacity as Senior Creditors (the "Senior Creditors")
under that certain Intercreditor and Subordination Agreement, dated as of July
, 2001, among ASSET SEVEN CORP., an Arizona corporation ("Asset Seven"), the
other Subordinated Creditors party thereto and the Senior Creditors (as the same
may be amended, modified, extended or restated from time to time, the
"Intercreditor Agreement"). All capitalized terms used herein and not otherwise
defined shall have the meanings set forth in the Intercreditor Agreement.

         The New REIT and the Senior Creditors hereby agree as follows:

         1. The New REIT hereby acknowledges, agrees and confirms that, by its
execution of this Agreement, the New REIT will be deemed to be a Subordinated
Creditor under the Intercreditor Agreement and shall have all of the rights and
obligations of a Subordinated Creditor thereunder as if it had executed the
Intercreditor Agreement. The New REIT hereby ratifies, as of the date hereof,
and agrees to be bound by, all of the terms, provisions and conditions contained
in the Intercreditor Agreement, including without limitation, all of the
subordination terms set forth in Article II of the Intercreditor Agreement.

         2. This Agreement may be executed in any number of counterparts, each
of which where so executed and delivered shall be an original, but all of which
shall constitute one and the same instrument. Delivery of executed counterparts
by telecopy shall be as effective as an original and shall constitute a
representation that an original will be delivered.

         3. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK.

         IN WITNESS WHEREOF, the New REIT has caused this Agreement to be duly
executed by its authorized officer, as of the day and year first above written.

                                          [NEW REIT]

                                          By:
                                             -----------------------------------
                                          Name:
                                                --------------------------------
                                          Title:
                                                 -------------------------------

<PAGE>   15

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as administrative agent,
in its capacity as a Senior Creditor

By:
   -----------------------------------------
Name:
     ---------------------------------------
Title:
      --------------------------------------

CITICORP REAL ESTATE, INC., as administrative agent,
in its capacity as a Senior Creditor

By:
   -----------------------------------------
Name:
     ---------------------------------------
Title:
      --------------------------------------

BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION,
as Trustee, in its capacity as a Senior Creditor

By:
   -----------------------------------------
Name:
     ---------------------------------------
Title:
      --------------------------------------

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