Document:

<PAGE>
                                                                    EXHIBIT 10.4

                           CHANGE OF CONTROL AGREEMENT

         This Change of Control Agreement (the "Agreement") is entered into this
15th day of June, 2004 (the "Effective Date") by and between Atrix Laboratories,
Inc., a Delaware corporation with its principal place of business at 2579
Midpoint Drive, Fort Collins, Colorado 80525 (the "Company"), and J. Steven
Garrett, D.D.S., an individual residing at 7113 Silver Moon Ln. Ft. Collins, Co
80525 ("Employee").

         1.       Definitions.

                  (a) "Accrued Amounts" means all amounts earned or accrued
         through the date of termination of employment, including, without
         limitation, (i) salary, (ii) reimbursement for expenses incurred by
         Employee on behalf of the Company in accordance with Company policy in
         effect at the time such expenses were incurred and (iii) vacation pay.

                  (b) "Affiliate" means any corporation, partnership, trust or
         other entity of which the Company and/or any of its Affiliates directly
         or indirectly owns a majority of the outstanding shares of any class of
         equity security of such corporation, partnership, trust or other entity
         and any corporation, partnership, trust or other entity which directly
         or indirectly owns a majority of the outstanding shares of any class of
         equity security of the Company or any of its Affiliates.

                  (c) "Cause" means:

                           (i) If Employee materially violates any term of
                  his/her employment or any Company policies and such violation
                  is not substantially remedied within 30 days of written notice
                  from the Company to Employee;

                           (ii) Willful misfeasance, gross negligence or
                  nonfeasance of duty by Employee that is reasonably likely to
                  be detrimental or damaging or that has the effect of injuring
                  or damaging the reputation, business or business relationships
                  of the Company or any of its Affiliates or any of their
                  respective officers, directors or employees;

                           (iii) Any arrest, indictment (defined as any
                  proceeding in which "probable cause" is found), conviction (or
                  the civil equivalent) of Employee or a plea of guilty or nolo
                  contendere by Employee to a charge based on a federal or state
                  felony or serious criminal or civil offense (even if the crime
                  is classified under the applicable law as a "misdemeanor"),
                  including, but not limited to (1) crimes or civil offenses
                  involving theft, embezzlement, fraud, dishonesty or moral
                  turpitude; (2) crimes or civil offenses based on banking or
                  securities laws (including the Sarbanes-Oxley Act of 2002);
                  and (3) civil enforcement actions brought by federal or state
                  regulatory agencies (including the Securities and Exchange
                  Commission).

                           (iv) Willful or prolonged and unapproved absence from
                  work by the Employee or failure, neglect or refusal by the
                  Employee to perform his/her duties

                                       1
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                  and responsibilities as determined by the chief executive
                  officer of the Company in his sole discretion.

                  (d) "Change of Control" means the occurrence of one or more of
         the following:

                           (i) Any person (as defined in Sections 3(a)(9) and
                  13(d)(3) of the Securities Exchange Act of 1934, as amended)
                  other than an existing stockholder or an Affiliate directly or
                  indirectly becomes the owner of 50% or more of the Voting
                  Stock;

                           (ii) The sale of all or substantially all of the
                  Company's assets to a single purchaser or group of affiliated
                  purchasers, other than any Affiliate or Affiliates, in one or
                  a series of related transactions; or

                           (iii) The Company engages in a merger or
                  consolidation with another entity other than an Affiliate and
                  immediately after that merger or consolidation, the persons or
                  entities that were stockholders of the Company immediately
                  prior to that merger or consolidation hold, directly or
                  indirectly, less than 50% of the Voting Stock of the surviving
                  entity.

                  The person, purchaser or group of affiliated purchasers or
         entity referenced in clauses (i), (ii) and (iii) above, as applicable,
         or the person or entity that controls such person, purchaser or group
         of affiliated purchasers or entity, is referred to sometimes herein as
         the "Acquirer".

                  (e) "Good Reason" means any action on the part of the Company
         or any Acquirer not consented to by Employee in writing (which action
         shall not have been cured within 30 days following written notice from
         Employee to the chief executive officer of the Company specifying that
         such action will give rise to a termination of Employee's employment
         hereunder for Good Reason) having the following effect or effects:

                           (i) a reduction in Employee's salary then in effect,
                  other than a reduction comparable to reductions generally
                  applicable to similarly situated employees of the Company and
                  the Acquirer; or

                           (ii) the permanent relocation of Employee's principal
                  place of employment to a facility or location more than 50
                  miles from the Company's current location.

                  For the avoidance of doubt, "Good Reason" shall not include
         any other change in the title, responsibilities or reporting
         relationship of Employee including the transfer of the employment of
         the Employee from the Company to the Acquirer or any of their
         Affiliates (so long as such transfer does not have either or both of
         the effects described in

                                       2
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         clauses (i) and (ii) above), provided that the transferee shall agree
         to assume and be bound by the terms of this Agreement as if it were the
         Company.

                  (f) "Voting Stock" means, with respect to a corporation, the
         capital stock of any class or classes of that corporation having
         general voting power under ordinary circumstances, in the absence of
         contingencies, to elect directors of such corporation and, with respect
         to any other entity, the securities of that entity having such general
         voting power to elect the members of the managing body of that entity.

         2. Term. This Agreement shall be for a term beginning on the Effective
Date and terminating on the date on which Employee's employment with the Company
terminates or is terminated.

         3. Current Position. Employee's current position is that indicated
beneath his/her signature below.

         4. Termination after Change of Control. If the Company terminates
Employee's employment without Cause, or Employee terminates his/her employment
for Good Reason, in either case within 12 months after a Change of Control, then
(A) the Company shall pay to Employee, within ten (10) days of the date of such
termination or such shorter period as may be required by law, all Accrued
Amounts, and (B) the Company shall pay to Employee, within ten (10) days after
the execution by the Employee and delivery to the Company of the mutual release
in the form set out in Schedule A (to which the Company hereby agrees effective
upon execution by Employee) the following:

                  (i) the Company shall pay to Employee in either a lump-sum or
         through salary continuation, at the Company's sole discretion, an
         amount equal to twelve (12) months of Employee's then current annual
         base salary,

                  (ii) if Employee elects continued coverage under the Company's
         health plan pursuant to the Comprehensive Omnibus Budget Reconciliation
         Act of 1985, as amended ("COBRA"), then the Company shall continue to
         pay the Company's portion of the premium for Employee's continued
         coverage under the Company's health plan until the first to occur of
         (A) the date that is 12 months after Employee's date of termination and
         (B) the date upon which Employee's COBRA continuation period terminates
         in accordance with COBRA, and

                  (iii) if Employee elects continued coverage under the
         Company's life insurance plan, then the Company shall continue to pay
         the Company's portion of the premium for Employee's continued coverage
         under the Company's life insurance plan, or if continued coverage under
         the Company's life insurance plan is not available pursuant to the
         terms of such plan, then the Company shall pay to Employee the amount
         of the premium that would otherwise be payable by the Company if
         Employee's employment were not terminated until the date that is 12
         months after the date of termination.

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         Thereafter, Employee shall not be entitled to receive, and the Company
shall have no obligation to provide Employee with any additional salary,
payments or benefits of any kind. In the event the Employee fails to execute and
deliver to the Company the release referred to above within ten (10) days after
the termination of the Employee's employment, the Company shall not be obligated
to pay or provide to the Employee the amounts and benefits set out in clauses
(i) through (iii) above.

         5. Entire Agreement. The terms of this Agreement are intended by the
parties to be the final and exclusive expression of their agreement with respect
to the relationship between Employee and the Company and may not be contradicted
by evidence of any prior or contemporaneous statements or agreements. This
Agreement supersedes in its entirety any other agreement, written or oral,
between the Company and the Employee relating to the subject matter hereof. The
parties further intend that this Agreement shall constitute the complete and
exclusive statement of its terms and that no extrinsic evidence whatsoever may
be introduced in any judicial, administrative, or other legal proceeding
involving this Agreement.

         6. Amendments, Waivers. This Agreement may not be modified, amended, or
terminated except by an instrument in writing, signed by Employee and by a duly
authorized representative of the Company other than Employee. No failure to
exercise and no delay in exercising any right, remedy, or power under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, or power under this Agreement preclude any other
or further exercise thereof, or the exercise of any other right, remedy, or
power provided herein or by law or in equity.

         7. Assignment; Successors and Assigns. Employee agrees that Employee
will not assign, sell, transfer, delegate or otherwise dispose of, whether
voluntarily or involuntarily, or by operation of law, any rights or obligations
under this Agreement, nor shall Employee's rights be subject to encumbrance or
the claims of creditors. Any purported assignment, transfer, or delegation shall
be null and void. Subject to the foregoing, this Agreement shall be binding upon
Employee and the Company and shall inure to the benefit of the parties and their
respective heirs, legal representatives, successors, and permitted assigns, and
shall not benefit any person or entity other than those enumerated above. For
the avoidance of doubt, the Company's obligations hereunder may be assigned to
the Acquirer, including in connection with any transfer of employment by
Employee from the Company to the Acquirer.

         8. Severability; Enforcement. If any provision of this Agreement, or
the application thereof to any person, place, or circumstance, shall be held by
a court or arbitrator of competent jurisdiction to be invalid, unenforceable, or
void, the remainder of this Agreement and such provisions as applied to other
persons, places, and circumstances shall remain in full force and effect.

         9. Governing Law. The validity, interpretation, enforceability, and
performance of this Agreement shall be governed by and construed in accordance
with the laws of the State of Colorado, without regard to choice of law rules.
All disputes arising under this Agreement shall be submitted to and heard by a
state or federal court located in Denver, Colorado and each of the Company and
Employee hereby irrevocably consents to the exclusive jurisdiction and exclusive
venue of such courts.

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         10. Employee Acknowledgment. The parties acknowledge (a) that they have
consulted with or have had the opportunity to consult with independent counsel
of their own choice concerning this Agreement, and (b) that they have read and
understand the Agreement, are fully aware of its legal effect, and have entered
into it freely based on their own judgment and not on any representations or
promises other than those contained in this Agreement.

         11. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Signatures to this
Agreement may be transmitted via facsimile and such signatures shall be deemed
to be originals.

                                       5
<PAGE>

         IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the date first written above.

<Table>
<S>                                                      <C>
Company                                                  Employee

/s/ David R. Bethune                                     /s/ J. Steven Garrett
--------------------------------------------             ----------------------
Name: David R. Bethune                                   Name: J. Steven Garrett, D.D.S.
Title: Chairman of the Board of Directors and Chief      Position:  Sr. Vice President Clinical
Executive Officer                                        Research
</Table>

                                       6
<PAGE>

                                   SCHEDULE A

                                 FORM OF RELEASE

                                 MUTUAL RELEASE

         In exchange for good and valuable consideration set forth in that
certain Change of Control Agreement (the "CHANGE OF CONTROL AGREEMENT") between
the undersigned, J. Steven Garrett, D.D.S. ("EMPLOYEE") and Atrix Laboratories,
Inc., a Delaware corporation ("COMPANY"), the sufficiency of which is hereby
acknowledged, Employee, on behalf of himself, his executors, heirs,
administrators, assigns and anyone else claiming by, through or under Employee,
irrevocably and unconditionally, releases, and forever discharges COMPANY, its
predecessors, successors and related and affiliate entities, including parents
and subsidiaries, and each of their respective directors, officers, employees,
attorneys, insurers, agents and representatives (collectively, the "COMPANY
RELEASEES"), from, and with respect to, any and all debts, demands, actions,
causes of action, suits, covenants, contracts, wages, bonuses, damages and any
and all claims, demands, liabilities, and expenses (including attorneys' fees
and costs) whatsoever of any name or nature both in law and in equity (severally
and collectively, "CLAIMS") that Employee now has, ever had or may in the future
have against the Company Releasees by reason of any matter, cause or thing that
has happened, developed or occurred, and any Claims that have arisen, before the
signing of this Mutual Release, including but not limited to, any and all Claims
in tort or contract, whether by statute or common law, and any Claims relating
to salary, wages, bonuses and commissions, the breach of an oral or written
contract, unjust enrichment, promissory estoppel, misrepresentation, defamation,
and interference with prospective economic advantage, interference with
contract, wrongful termination, intentional and negligent infliction of
emotional distress, negligence, breach of the covenant of good faith and fair
dealing, and Claims arising out of, based on, or connected with Employee's
employment by the Company and the termination of that employment as set forth in
the Change of Control Agreement, including any Claims for unlawful employment
discrimination of any kind, whether based on age, race, sex, disability or
otherwise, including specifically and without limitation, claims arising under
or based on Title VII of the Civil Rights Act of 1964, as amended; the Age
Discrimination in Employment Act, as amended; the Civil Rights Act of 1991; the
Family and Medical Leave Act; the Americans with Disabilities Act; the Fair
Labor Standards Act; the Employee Retirement Income Security Act of 1974; the
Equal Pay Act of 1963; the Colorado Civil Rights Act, the Colorado
Anti-Discrimination Act, the Colorado Wage Act; and any other local, state or
federal equal employment opportunity or anti-discrimination law, statute,
policy, order, ordinance or regulation affecting or relating to Claims that
Employee ever had, now has, or claims to have against the Company Releasees,
provided, however, the Employee does not release the Company Releasees with
respect to claims arising out of or relating to their fraud, gross negligence or
willful misconduct.

         Employee warrants and represents that Employee has not assigned or
transferred to any person or entity any of the Claims released by this Mutual
Release, and Employee agrees to defend (by counsel of the Company Releasees's
choosing), and to indemnify and hold harmless, the Company Releasees from and
against any claims based on, in connection with, or arising out of any such
assignment or transfer made, purported or claimed.

                                       7
<PAGE>

         Except for obligations created by this Mutual Release and the Change of
Control Agreement, the Company Releasees hereby covenant not to sue and fully
release Employee and Employee's successors and assigns (the "EMPLOYEE
RELEASEES"), with respect to and from all actions, and claims of any kind, known
or unknown, suspected or unsuspected, which Company Releasees may now have, has
ever had or may in the future have against any of the Employee Releasees, by
reason of any matter, cause or thing that has happened, developed or occurred,
and any Claims that have arisen, before the signing of this Mutual Release,
including but not limited to, any and all Claims in tort or contract, whether by
statute or common law, including all claims arising from Employee's position as
an employee of the Company and the termination of that relationship, as of the
date of this Mutual Release; provided, however, the Company Releasees do not
release the Employee Releasees with respect to claims arising out of or relating
to their fraud, gross negligence or willful misconduct.

         The Company, at its sole cost and expense, shall indemnify and defend
Employee in any threatened, pending, or contemplated action, suit or proceeding,
whether civil or criminal, administrative or investigative, or whether formal or
informal which arises by reason of the fact that Employee was an officer,
employee or a member of the board of directors of the Company prior to the date
of this Mutual Release, against expenses, including attorney's fees, judgments,
penalties, fines and amounts to be paid in settlement in connection with such
action, suit or proceeding if it is determined by the Company that Employee
conducted himself in good faith and that Employee reasonably believed (i) in the
case of conduct in Employee's official capacity with the Company, that
Employee's conduct was in the Company's best interests, or (ii) in all other
cases (except criminal cases), that Employee's conduct was at least not opposed
to the Company's best interests, or (iii) in the case of any criminal
proceeding, that Employee had no reasonable cause to believe that Employee's
conduct was unlawful ("INDEMNIFIED CLAIMS"). The Company shall have the sole and
exclusive right to select legal counsel to represent the Company Releasees and
Employee, and to control the defense and/or settlement of any Indemnified
Claims. Employee agrees to cooperate with the Company in the defense of any
Indemnified Claims, and make available to the Company any and all documents in
Employee's possession and/or control that may be necessary or useful to such
defense and/or settlement. No indemnification shall be made to Employee under
this paragraph with respect to any claim, issue or matter in connection with a
proceeding by or on behalf of the Company Releasees or any other entity in which
Employee's actions giving rise to the action, suit, proceeding or claim
constituted fraud, gross negligence and/or willful misconduct on Employee's
part. [to be used for individuals to who Section 6.9 of the Merger Agreement
does not apply]

         As further consideration for Employee's entering into the Change of
Control Agreement and this Mutual Release, the Company Releasees covenant and
agree that for one year after the date of this Mutual Release, it will not
disparage Employee in any manner harmful to Employee's business or personal
reputation. As further consideration for the Company entering into the Change of
Control Agreement and this Mutual Release, Employee covenants and agrees that
for one year after the date of this Mutual Release, Employee will not disparage
the Company or its employees in any manner harmful to the Company's business
reputation or the business or personal reputation of its employees.

         Notwithstanding anything to the contrary in this Mutual Release or the
Change of Control Agreement, the foregoing release shall not cover, and Employee
does not intend to release, any

                                       8
<PAGE>

rights of indemnification under the Company's Certificate of Incorporation (the
"CERTIFICATE") or Bylaws (the "BYLAWS"), rights to directors and officers
liability insurance, or any rights and obligations under the Change of Control
Agreement. Employee further acknowledges that the Company's obligations under
the Certificate and Bylaws are conditioned upon receipt by the Company of an
undertaking by Employee to repay the amount if it shall be determined by a court
of competent jurisdiction that Employee is not entitled to be indemnified by the
Company under the Certificate or Bylaws.

         EMPLOYEE HAS READ THIS MUTUAL RELEASE AND BEEN PROVIDED A FULL AND
AMPLE OPPORTUNITY TO STUDY IT, AND EMPLOYEE UNDERSTANDS THAT THIS IS A FULL,
COMPREHENSIVE AND MUTUAL RELEASE AND INCLUDES ANY CLAIM UNDER THE AGE
DISCRIMINATION IN EMPLOYMENT ACT. EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE HAS BEEN
ADVISED IN WRITING TO CONSULT WITH LEGAL COUNSEL BEFORE SIGNING THIS MUTUAL
RELEASE AND THE CHANGE OF CONTROL AGREEMENT, AND EMPLOYEE HAS CONSULTED WITH AN
ATTORNEY. EMPLOYEE WAS GIVEN A PERIOD OF AT LEAST TWENTY-ONE DAYS TO CONSIDER
SIGNING THIS MUTUAL RELEASE, AND EMPLOYEE HAS SEVEN DAYS FROM THE DATE OF
SIGNING TO REVOKE EMPLOYEE'S ACCEPTANCE BY DELIVERING TIMELY NOTICE OF HIS
REVOCATION TO THE COMPANY RELEASEES'S HUMAN RESOURCES DEPARTMENT AT ITS
PRINCIPAL PLACE OF BUSINESS. EMPLOYEE IS SIGNING THIS MUTUAL RELEASE
VOLUNTARILY, WITHOUT COERCION, AND WITH FULL KNOWLEDGE THAT IT IS INTENDED, TO
THE MAXIMUM EXTENT PERMITTED BY LAW, AS A COMPLETE AND FINAL RELEASE AND WAIVER
OF ANY AND ALL CLAIMS. EMPLOYEE ACKNOWLEDGES AND AGREES THAT THE PAYMENTS SET
FORTH IN THE CHANGE OF CONTROL AGREEMENT ARE CONTINGENT UPON EMPLOYEE SIGNING
THIS MUTUAL RELEASE AND WILL BE PAYABLE ONLY IF AND AFTER THE REVOCATION PERIOD
HAS EXPIRED.

                          [SIGNATURE PAGE(S) TO FOLLOW]

                                       9
<PAGE>

         Employee has read this Mutual Release, fully understand it and freely
and knowingly agree to its terms.

                 Dated this _______ day of ____________, 200__.

                                             -----------------------------------
                                             Signature

                                             -----------------------------------
                                             Printed Name

AGREED AND ACCEPTED:

                         , INC.
------------------------

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

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

Date:
     ----------------------------------------

                                       10exv4w1

 

EXHIBIT 4.1

UNITED DOMINION REALTY TRUST, INC.

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (THE “DEPOSITARY”) (55 WATER STREET, NEW YORK, NEW YORK) TO THE
ISSUER HEREOF OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME
AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY AND ANY PAYMENT
IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY
OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE
TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

	 	 	 	 	 
	REGISTERED

	 	CUSIP No.:
	 	PRINCIPAL AMOUNT:
	No. FXR-1

	 	91019PCM2

	 	$50,000,000

UNITED DOMINION REALTY TRUST, INC.

MEDIUM-TERM NOTE

(Fixed Rate)

	 	 	 	 	 
	ORIGINAL ISSUE DATE:
	 	 	 	 
	June 25, 2004

	 	INTEREST RATE: 4.30%
	 	STATED MATURITY
	

	 	 	 	DATE: July 1, 2007
	 
	 	 	 	 
	INTEREST PAYMENT DATE(S)

	 	o CHECK IF DISCOUNT NOTE	 	 
	x January 1 and July 1,

	 	     Issue Price:%	 	 
	commencing January 1, 2005
	 	 	 	 
	o Other:
	 	 	 	 
	 
	 	 	 	 
	INITIAL REDEMPTION

	 	INITIAL REDEMPTION
	 	ANNUAL REDEMPTION
	DATE: N/A

	 	PERCENTAGE: N/A
	 	PERCENTAGE
	

	 	 	 	REDUCTION: N/A
	 
	 	 	 	 
	OPTIONAL REPAYMENT
	 	 	 	 
	DATE(S): N/A
	 	 	 	 
	 
	 	 	 	 
	SPECIFIED CURRENCY:

	 	AUTHORIZED DENOMINATION:
	 	EXCHANGE RATE
	x United States dollars

	 	x $1,000 and integral
	 	AGENT: N/A
	o Other:

	 	     multiples thereof	 	 
	

	 	o Other:	 	 
	 
	 	 	 	 
	ADDENDUM ATTACHED

	 	DEFAULT INTEREST RATE: N/A
	 	OTHER/ADDITIONAL
	

	 	 	 	PROVISIONS: N/A
	 
	 	 	 	 
	o Yes
	 	 	 	 
	xNo
	 	 	 	 

 

 

     UNITED DOMINION REALTY TRUST, INC., a Maryland corporation (the “Company”,
which term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to CEDE & Co., as
nominee for The Depository Trust Company, or registered assigns, the Principal
Amount of FIFTY MILLION DOLLARS ($50,000,000), on the Stated Maturity Date
specified above (or any Redemption Date or Repayment Date, each as defined on
the reverse hereof, or any earlier date of acceleration of maturity) (each such
date being hereinafter referred to as the “Maturity Date” with respect to the
principal repayable on such date) and to pay interest thereon (and on any
overdue principal, premium and/or interest to the extent legally enforceable)
at the Interest Rate per annum specified above, until the principal hereof is
paid or duly made available for payment. The Company will pay interest in
arrears on each Interest Payment Date, if any, specified above (each, an
“Interest Payment Date”), commencing with the first Interest Payment Date next
succeeding the Original Issue Date specified above, and on the Maturity Date;
provided, however, that if the Original Issue Date occurs between a Record Date
(as defined below) and the next succeeding Interest Payment Date, interest
payment will commence on the Interest Payment Date immediately following the
next succeeding Record Date to the registered holder (the “Holder”) of this
Note on the next succeeding Record Date. Interest on this Note will be
computed on the basis of a 360-day year of twelve 30-day months.

     Interest on this Note will accrue from, and including, the immediately
preceding Interest Payment Date to which interest has been paid or duly
provided for (or from, and including, the Original Issue Date if no interest
has been paid or duly provided for) to, but excluding, the applicable Interest
Payment Date or the Maturity Date, as the case may be (each, an “Interest
Period”). The interest so payable, and punctually paid or duly provided for,
on any Interest Payment Date will, subject to certain exceptions described
herein, be paid to the person in whose name this Note (or one or more
predecessor Notes, as defined on the reverse hereof) is registered at the close
of business on the fifteenth calendar day (whether or not a Business Day, as
defined below) immediately preceding such Interest Payment Date (the “Record
Date”); provided, however, that interest payable on the Maturity Date will be
payable to the person to whom the principal hereof and premium, if any, hereon
shall be payable. Any such interest not so punctually paid or duly provided
for on any Interest Payment Date other than the Maturity Date (“Defaulted
Interest”) shall forthwith cease to be payable to the Holder on the close of
business on any Record Date and, instead, shall be paid to the person in whose
name this Note is registered at the close of business on a special record date
(the “Special Record Date”) for the payment of such Defaulted Interest to be
fixed by the Trustee hereinafter referred to, notice whereof shall be given to
the Holder of this Note by the Trustee not less than 10 calendar days prior to
such Special Record Date or may be paid at any time in any other lawful manner,
all as more fully provided for in the Indenture.

     Payment of principal, premium, if any, and interest in respect of this
Note due on the Maturity Date will be made in immediately available funds upon
presentation and surrender of this Note (and, with respect to any applicable
repayment of this Note, upon delivery of instructions as contemplated on the
reverse hereof) at the office or agency maintained by the Company for that
purpose in the Borough of Manhattan, The City of New York, currently the
corporate trust office of the Trustee located at 40 Broad Street, 5th Floor,
New York, New York 10004, or at such other paying agency in the Borough of
Manhattan, The City of New York, as the Company may determine; provided,
however, that if the Specified Currency (as defined below) is other than United
States dollars and such payment is to be made in the Specified Currency in
accordance with the provisions set forth below, such payment will be made by
wire transfer of immediately available funds to an account with a bank
designated by the Holder hereof at least 15 calendar days prior to the Maturity
Date, provided that such bank has appropriate facilities therefor and that this
Note is presented and surrendered and, if applicable, instructions are
delivered at the aforementioned office or agency maintained by the Company in
time for the Trustee to make such payment in such funds in accordance with its
normal procedures. Payment of interest due on any Interest Payment Date other
than the Maturity Date will be made at the aforementioned office or agency
maintained by the Company or, at the option of the Company, by check mailed to
the address of the person entitled thereto as such address shall appear in the
Security Register maintained by the Trustee; provided, however, that a Holder
of U.S.$10,000,000 (or, if the Specified Currency is other than United States
dollars, the equivalent thereof in the Specified Currency) or more in aggregate
principal amount of Notes (whether having identical or different terms and
provisions) will be entitled to receive interest payments on such Interest
Payment Date by wire transfer of immediately available funds if such Holder has
delivered appropriate

 

 

wire transfer instructions in writing to the Trustee not less than 15
calendar days prior to such Interest Payment Date. Any such wire transfer
instructions received by the Trustee shall remain in effect until revoked by
such Holder.

     If any Interest Payment Date or the Maturity Date falls on a day that is
not a Business Day, the required payment of principal, premium, if any, and/or
interest shall be made on the next succeeding Business Day with the same force
and effect as if made on the date such payment was due, and no interest shall
accrue with respect to such payment for the period from and after such Interest
Payment Date or the Maturity Date, as the case may be, to the date of such
payment on the next succeeding Business Day.

     As used herein, “Business Day” means any day, other than a Saturday or
Sunday, that is neither a legal holiday nor a day on which commercial banks are
authorized or required by law, regulation or executive order to close in The
City of New York; provided, however, that if the Specified Currency is other
than United States dollars, such day must also not be a day on which commercial
banks are authorized or required by law, regulation or executive order to close
in the Principal Financial Center (as defined below) of the country issuing the
Specified Currency (or, if the Specified Currency is Euro, such day must also
be a day on which the Trans-European Automated Real-Time Gross Settlement
Express Transfer (TARGET) System is open). “Principal Financial Center” means
the capital city of the country issuing the Specified Currency, except that
with respect to United States dollars, Australian dollars, Canadian dollars,
Euros, South African rands and Swiss francs, the “Principal Financial Center”
shall be The City of New York, Sydney, Toronto, Johannesburg and Zurich,
respectively.

     The Company is obligated to make payment of principal, premium, if any,
and interest in respect of this Note in the currency in which this Note is
denominated above (or, if such currency is not at the time of such payment
legal tender for the payment of public and private debts in the country issuing
such currency or, if such currency is Euro, in the member states of the
European Union that have adopted the single currency in accordance with the
Treaty establishing the European Community, as amended by the Treaty on
European Union, then the currency which is at the time of such payment legal
tender in the related country or in the adopting member states of the European
Union, as the case may be) (the “Specified Currency”). If the Specified
Currency is other than United States dollars, except as otherwise provided
below, any such amounts so payable by the Company will be converted by the
Exchange Rate Agent specified above into United States dollars for payment to
the Holder of this Note.

     Any United States dollar amount to be received by the Holder of this Note
will be based on the highest bid quotation in The City of New York received by
the Exchange Rate Agent at approximately 11:00 A.M., New York City time, on the
second Business Day preceding the applicable payment date from three recognized
foreign exchange dealers (one of whom may be the Exchange Rate Agent) selected
by the Exchange Rate Agent and approved by the Company for the purchase by the
quoting dealer of the Specified Currency for United States dollars for
settlement on such payment date in the aggregate amount of the Specified
Currency payable to all Holders of Notes scheduled to receive United States
dollar payments and at which the applicable dealer commits to execute a
contract. All currency exchange costs will be borne by the Holder of this Note
by deductions from such payments. If three such bid quotations are not
available, payments on this Note will be made in the Specified Currency.

     If the Specified Currency is other than United States dollars, the Holder
of this Note may elect to receive all or a specified portion of any payment of
principal, premium, if any, and/or interest, if any, in respect of this Note in
the Specified Currency by submitting a written request for such payment to the
Trustee at its corporate trust office in The City of New York on or prior to
the applicable Record Date or at least 15 calendar days prior to the Maturity
Date, as the case may be. Such written request may be mailed or hand delivered
or sent by cable, telex or other form of facsimile transmission. The Holder of
this Note may elect to receive all or a specified portion of all future
payments in the Specified Currency in respect of such principal, premium, if
any, and/or interest, if any, and need not file a separate election for each
payment. Such election will remain in effect until revoked by written notice
delivered to the Trustee, but written notice of any such revocation must be
received by the Trustee on or prior to the applicable Record Date or at least
15 calendar days prior to the Maturity Date, as the case may be.

 

 

     If the Specified Currency is other than United States dollars and the
Holder of this Note shall have duly made an election to receive all or a
specified portion of any payment of principal, premium, if any, and/or
interest, if any, in respect of this Note in the Specified Currency, but the
Specified Currency is not available due to the imposition of exchange controls
or other circumstances beyond the control of the Company, the Company will be
entitled to satisfy its obligations to the Holder of this Note by making such
payment in United States dollars on the basis of the Market Exchange Rate (as
defined below) determined by the Exchange Rate Agent on the second Business Day
prior to such payment date or, if such Market Exchange Rate is not then
available, on the basis of the most recently available Market Exchange Rate.
The “Market Exchange Rate” for the Specified Currency other than United States
dollars means the noon dollar buying rate in The City of New York for cable
transfers for the Specified Currency as certified for customs purposes (or, if
not so certified, as otherwise determined) by the Federal Reserve Bank of New
York. Any payment made in United States dollars under such circumstances shall
not constitute an Event of Default (as defined in the Indenture).

     All determinations referred to above made by the Exchange Rate Agent shall
be at its sole discretion and shall, in the absence of manifest error, be
conclusive for all purposes and binding on the Holder of this Note.

     The Company agrees to indemnify the Holder of any Note against any loss
incurred by such Holder as a result of any judgment or order being given or
made against the Company for any amount due hereunder and such judgment or
order requiring payment in a currency (the “Judgment Currency”) other than the
Specified Currency, and as a result of any variation between (i) the rate of
exchange at which the Specified Currency amount is converted into the Judgment
Currency for the purpose of such judgment or order, and (ii) the rate of
exchange at which such Holder, on the date of payment of such judgment or
order, is able to purchase the Specified Currency with the amount of the
Judgment Currency actually received by such Holder, as the case may be. The
foregoing indemnity constitutes a separate and independent obligation of the
Company and continues in full force and effect notwithstanding any such
judgment or order as aforesaid. The term “rate of exchange” includes any
premiums and costs of exchange payable in connection with the purchase of, or
conversion into, the relevant currency.

     Reference is hereby made to the further provisions of this Note set forth
on the reverse hereof and, if so specified on the face hereof, in an Addendum
hereto, which further provisions shall have the same force and effect as if set
forth on the face hereof.

     Notwithstanding the foregoing, if an Addendum is attached hereto or
“Other/Additional Provisions” apply to this Note as specified above, this Note
shall be subject to the terms set forth in such Addendum or such
“Other/Additional Provisions”.

     Unless the Certificate of Authentication hereon has been executed by the
Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

 

 

IN WITNESS WHEREOF, United Dominion Realty Trust, Inc. has caused this
Note to be duly executed by one of its duly authorized officers.

	 	 	 	 	 
	 	UNITED DOMINION REALTY TRUST, INC.

 	 
	 	By   /s/ Scott A. Shanaberger
 	 
	 	Name:  	Scott A. Shanaberger 	 
	 	Title:  	Senior Vice President, Chief Accounting

     Officer and Assistant Secretary 	 
	 

	 
	ATTEST:

	 

	By/s/ Mary Ellen Norwood

	     Name: Mary Ellen Norwood

	     Title: Vice President and Secretary

	 

	Dated: June 25, 2004

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

This is one of the Debt Securities of

the series designated therein referred

to in the within-mentioned Indenture.

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Trustee

	 	 	 	 	 
	By

	 	/s/ Sarah A. McMahon
	 	Authentication Date: June 25, 2004
	

	 	     Authorized Signatory	 	 

 

 

[REVERSE OF NOTE]

UNITED DOMINION REALTY TRUST, INC.

 

MEDIUM-TERM NOTE

(Fixed Rate)

 

     This Note is one of a duly authorized series of Debt Securities (the “Debt
Securities”) of the Company issued and to be issued under an Indenture, dated
as of November 1, 1995, as amended, modified or supplemented from time to time
(the “Indenture”), between the Company (successor by merger to United Dominion
Realty Trust, Inc., a Virginia corporation) and Wachovia Bank, National
Association, (formerly known as First Union National Bank of Virginia) as
trustee (the “Trustee”, which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Debt Securities, and of the terms upon which the Debt Securities
are, and are to be, authenticated and delivered. This Note is one of the
series of Debt Securities designated as “Medium-Term Notes Due Nine Months or
More From Date of Issue” (the “Notes”). All terms used but not defined in this
Note or in an Addendum hereto shall have the meanings assigned to such terms in
the Indenture or on the face hereof, as the case may be.

     This Note is issuable only in registered form without coupons in minimum
denominations of U.S. $1,000 and integral multiples thereof or other Authorized
Denomination specified on the face hereof.

     This Note will not be subject to any sinking fund and, unless otherwise
specified on the face hereof in accordance with the provisions of the following
two paragraphs, will not be redeemable or repayable prior to the Stated
Maturity Date.

     This Note will be subject to redemption at the option of the Company on
any date on or after the Initial Redemption Date, if any, specified on the face
hereof, in whole or from time to time in part in increments of U.S. $1,000 or
other integral multiple of an Authorized Denomination (provided that any
remaining principal amount hereof shall be at least U.S. $1,000 or such other
minimum Authorized Denomination), at the Redemption Price (as defined below),
together with unpaid interest accrued thereon to the date fixed for redemption
(the “Redemption Date”), on written notice given to the Holder hereof (in
accordance with the provisions of the Indenture) not more than 60 nor less than
30 calendar days prior to the Redemption Date. The “Redemption Price” shall be
an amount equal to the Initial Redemption Percentage specified on the face
hereof (as adjusted by the Annual Redemption Percentage Reduction, if any,
specified on the face hereof) multiplied by the unpaid principal amount of this
Note to be redeemed. The Initial Redemption Percentage, if any, shall decline
at each anniversary of the Initial Redemption Date by the Annual Redemption
Percentage Reduction, if any, until the Redemption Price is 100% of unpaid
principal amount to be redeemed. In the event of redemption of this Note in
part only, a new Note of like tenor for the unredeemed portion hereof and
otherwise having the same terms and provisions as this Note shall be issued by
the Company in the name of the Holder hereof upon the presentation and
surrender hereof.

     This Note will be subject to repayment by the Company at the option of the
Holder hereof on the Optional Repayment Date(s), if any, specified on the face
hereof, in whole or in part in increments of U.S. $1,000 or other integral
multiple of an Authorized Denomination (provided that any remaining principal
amount hereof shall be at least U.S. $1,000 or such other minimum Authorized
Denomination), at a repayment price equal to 100% of the unpaid principal
amount to be repaid, together with unpaid interest accrued thereon to the date
fixed for repayment (the “Repayment Date”). For this Note to be repaid, the
Trustee must receive at its corporate trust office in the Borough of Manhattan,
The City of New York, not more than 60 nor less than 30 calendar days prior to
the Repayment Date, such Note and instructions to such effect forwarded by the
Holder hereof. Exercise of such repayment option by the Holder hereof shall be
irrevocable. In the event of repayment of this Note in part only, a new Note
of like tenor for the unrepaid portion hereof and otherwise having the same
terms and provisions as this Note shall be issued by

 

 

the Company in the name of the Holder hereof upon the presentation and
surrender hereof.

     If this Note is specified on the face hereof to be a Discount Note, the
amount payable to the Holder of this Note in the event of redemption, repayment
or acceleration of maturity will be equal to the sum of (1) the Issue Price
specified on the face hereof (increased by any accruals of the Discount, as
defined below) and, in the event of any redemption of this Note (if
applicable), multiplied by the Initial Redemption Percentage (as adjusted by
the Annual Redemption Percentage Reduction, if applicable) and (2) any unpaid
interest accrued thereon to the Redemption Date, Repayment Date or date of
acceleration of maturity, as the case may be. The difference between the Issue
Price and 100% of the principal amount of this Note is referred to herein as
the “Discount”.

     For purposes of determining the amount of Discount that has accrued as of
any Redemption Date, Repayment Date or date of acceleration of maturity of this
Note, such Discount will be accrued so as to cause the yield on the Note to be
constant. The constant yield will be calculated using a 30-day month, 360-day
year convention, a compounding period that, except for the Initial Period (as
defined below), corresponds to the shortest period between Interest Payment
Dates (with ratable accruals within a compounding period) and an assumption
that the maturity of this Note will not be accelerated. If the period from the
Original Issue Date to the initial Interest Payment Date (the “Initial Period”)
is shorter than the compounding period for this Note, a proportionate amount of
the yield for an entire compounding period will be accrued. If the Initial
Period is longer than the compounding period, then such period will be divided
into a regular compounding period and a short period, with the short period
being treated as provided in the preceding sentence.

     In addition to the covenants set forth in the Indenture, the Company is
required to maintain Total Unencumbered Assets (as defined below) of not less
than 150% of the aggregate outstanding principal amount of the Company’s
Unsecured Debt (as defined below). For purposes of this requirement, the
following capitalized terms shall be defined as follows:

     “Total Unencumbered Assets” means the sum of (i) those Undepreciated Real
Estate Assets (as defined below) not subject to an encumbrance and (ii) all
other assets of the Company and its Subsidiaries (as defined below) not subject
to encumbrance determined in accordance with generally accepted accounting
principles (but excluding accounts receivable and intangibles).

     “Subsidiaries” means a corporation, a limited liability company or a
partnership a majority of the outstanding voting stock, limited liability
company or partnership interests, as the case may be, of which is owned,
directly or indirectly, by the Company or by one or more other Subsidiaries of
the Company. For purposes of this definition, “voting stock” means stock
having voting power for the election of directors, managing members or
trustees, whether at all times or only so long as no senior class of stock has
such voting power by reason of any contingency.

     “Undepreciated Real Estate Assets” as of any date means the original cost
plus capital improvements of real estate assets of the Company and its
Subsidiaries determined in accordance with generally accepted accounting
principles.

     “Unsecured Debt” means debt of the Company or any Subsidiary which is not
secured by any mortgage, lien, charge, pledge or security interest of any kind
upon any of their properties.

     If an Event of Default shall occur and be continuing, the principal of the
Notes may, and in certain cases shall, be accelerated in the manner and with
the effect provided in the Indenture.

     The Indenture contains provisions for defeasance of (i) the entire
indebtedness of the Notes or (ii) certain covenants and Events of Default with
respect to the Notes, in each case upon compliance with certain conditions set
forth therein, which provisions apply to the Notes.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Debt

 

 

Securities at any time by the Company and the Trustee with the consent of
the Holders of a majority of the aggregate principal amount of all Debt
Securities at the time outstanding and affected thereby. The Indenture also
contains provisions permitting the Holders of a majority of the aggregate
principal amount of the outstanding Debt Securities of any series, on behalf of
the Holders of all such Debt Securities, to waive compliance by the Company
with certain provisions of the Indenture. Furthermore, provisions in the
Indenture permit the Holders of a majority of the aggregate principal amount of
the outstanding Debt Securities of any series, in certain instances, to waive,
on behalf of all of the Holders of Debt Securities of such series, certain past
defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Note shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and other Notes issued upon the
registration of transfer hereof or in exchange heretofore or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Note.

     No reference herein to the Indenture and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay principal, premium, if any, and interest in
respect of this Note at the times, places and rate or formula, and in the coin
or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein
and herein set forth, the transfer of this Note is registrable in the Security
Register of the Company upon surrender of this Note for registration of
transfer at the office or agency of the Company in any place where the
principal hereof and any premium or interest hereon are payable, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory to
the Company and the Security Registrar duly executed by, the Holder hereof or
by his attorney duly authorized in writing, and thereupon one or more new Notes
having the same terms and provisions, of Authorized Denominations and for the
same aggregate principal amount, will be issued by the Company to the
designated transferee or transferees.

     As provided in the Indenture and subject to certain limitations therein
and herein set forth, this Note is exchangeable for a like aggregate principal
amount of Notes of different Authorized Denominations but otherwise having the
same terms and provisions, as requested by the Holder hereof surrendering the
same.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Holder as the owner hereof for all purposes, whether or not this Note be
overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary, except as required by law.

     THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF VIRGINIA.

 

 

ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of
this Note, shall be construed as though they were written out in full according
to applicable laws or regulations:

	 	 	 	 	 	 	 
	TEN COM

	 	- as tenants in common
	 	UNIF GIFT MIN ACT
	 	-                      Custodian                     
	TEN ENT

	 	- as tenants by the entireties
	 	 	 	     (Cust)                Minor)
	JT TEN

	 	- as joint tenants with right of
	 	 	 	under Uniform Gifts to Minors
	

	 	   survivorship and not as tenants
	 	 	 	Act                     
	

	 	   in common
	 	 	 	                (State)
	 
	 	 	 	 	 	 
	 
	 	Additional abbreviations may also be used though not in the above list.

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

	 	 	 
	PLEASE INSERT SOCIAL SECURITY OR
	OTHER
	IDENTIFYING NUMBER OF
ASSIGNEE

(Please print or typewrite name and address including postal zip code of assignee)

this Note and all rights thereunder hereby irrevocably constituting and appointing

Attorney to transfer this Note on the books of the Company, with full power of substitution in the premises.

	 	 	 	 	 
	Dated:
	 	 	 	 
	

	 	

	 	

	

	 	

	 	

	

	 	 	 	Notice:
The signature(s) on this Assignment must correspond with

	

	 	 	 	the name(s) as written upon the face of this Note in every

	

	 	 	 	particular, without alteration or enlargement or any change

	

	 	 	 	whatsoever.

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