Document:

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                                                                  Exhibit 10(xi)

                       UNITED DOMINION REALTY TRUST, INC.
                            EXECUTIVE DEFERRAL PLAN

                                    SUMMARY

                     GENERAL INFORMATION REGARDING THE PLAN

     The United Dominion Realty Trust, Inc. Executive Deferral Plan (the "EDP")
is a non-qualified deferred compensation plan for key executives of the Company.
Participants may defer a portion of salary or bonuses into the EDP on a pre-tax
basis.  Participants may direct investment of their deferrals into selected
funds, which mirror those provided under the Company's 401(k) and Profit Sharing
Plan. The Plan is administered by the 401(k) Committee of the Board of Directors
of the Company (the "Committee").  The Board of Directors may amend or terminate
the EDP, provided that no amendment may cause a reduction in participants'
accounts.  If the EDP is terminated, no future contributions may be made to the
EDP, but all participant accounts existing at the time of termination will
continue to be governed by the terms of the EDP until paid out.<PAGE>

                                                                 Exhibit 10(xii)

                                 EMPLOYMENT AGREEMENT
                                 --------------------

     THIS EMPLOYMENT AGREEMENT ("Agreement"), entered into this 8th day of
December, 1998, between UNITED DOMINION REALTY TRUST, INC., a Virginia
corporation (the "Company") and CURTIS W. CARTER (the "Executive"), recites and
provides as follows:

                                 R E C I T A L S:

     The Executive is a senior executive of the Company, and the Company now
desires to reward the Executive for past performance and provide for the
continued employment of the Executive upon the terms set forth in this
Agreement.

                                 A G R E E M E N T:

     NOW, THEREFORE, in consideration of the foregoing, and the mutual promises
and undertakings hereinafter set forth, and the payments to be made to the
Executive hereunder, the parties hereto agree as follows:

1.  Position and Duties.
    -------------------

     a.  The Company hereby agrees to and hereby does continue to employ the
Executive as an executive officer of the Company, subject to the supervision of
the Chief Operating Officer of the Company, or such other senior officer of the
Company as may be prescribed by the Chief Executive Officer or the Board of
Directors of the Company (the "Board").  Currently, the Executive is Senior Vice
President and reports to the Chief Operating Officer, and is responsible for the
Northern Region operations of the Company.

          The Executive agrees that the description of the executive position
above shall not limit the Company from assigning to the Executive such other
duties and functions in addition to or in substitution of those described above.

     b.   The Executive agrees to serve the Company as a full time executive
officer with duties and authority as set forth in the Company's by-laws or as
otherwise prescribed by the Board, the Chief Operating Officer, or such other
senior officer prescribed by the Chairman, President or the Board.  The
Executive shall devote such time, attention, skill, and efforts to the
performance of his duties as a Company executive as shall be required therefore,
all under the supervision and direction of the Board, the Chief Operating
Officer, or such other senior officer prescribed by the Board. The Executive
agrees that during the period of his employment he will not, without the
approval of a majority of the independent directors of the Board, have any other
(i) real estate investment trust or business affiliations, or (ii) corporate
affiliations that conflict with the business

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of the Company or interfere with the ability of the Executive to perform his
duties for the Company or comply with the covenants under this Agreement.

2.  Term of Agreement.
    -----------------

     This Agreement will take effect as of the date of this Agreement and will
end on December 31, 1998.  After December 31, 1998, this Agreement will
automatically renew for successive one (1) year periods, ending as of December
31 of each year, unless sooner terminated in accordance with Section 4.

3.  Compensation and Benefits.
    -------------------------

     a.  Base Salary.  The Executive's pay will not be less than  $161,000 per
         -----------
year (beginning January 1, 1999), payable in accordance with the Company's
regular payroll practices, unless the Executive consents to a lesser base salary
in writing.

     b.  Annual Incentive Compensation.  The Executive's annual compensation
         -----------------------------
shall also include an annual incentive where the Executive has an opportunity to
earn a bonus of at least forty five percent (45%) of base salary based upon the
Executive and the Company meeting certain performance goals and objectives as
determined by the Compensation Committee of the Board (the "Compensation
Committee"), or the Chief Operating Officer.  The Executive acknowledges that
the Board or the Compensation Committee, as appropriate, may elect to modify or
terminate annual incentive compensation for all executives at any time.

     c.  Long Term Incentive Compensation.  The Executive's compensation shall
         --------------------------------
also include participation (i) in the Company's 1982 Stock Option Plan;  (ii) in
the Company's 1991 Officers Stock Purchase and Loan Plan; and (iii) any
"shareholder value plan" or other long-term compensation plan for senior
officers of the Company adopted by the Compensation Committee or the Board, on
the same basis as similarly situated executive officers of the Company.  The
Executive acknowledges that the Board, or the Compensation Committee, as
appropriate, may elect to terminate or modify any or all long-term incentive
compensation at any time.

     d.  Associate Benefit Plans.  The Executive will be eligible to participate
         -----------------------
in any and all employee benefit plans, medical insurance plans, retirement
plans, and other benefit plans in effect for employees in similar positions at
the Company (the "Company Plans") or any other plans applicable for other
officers or executive officers of the Company.  Such participation shall be
subject to the terms of the applicable plan documents and the Company's
generally applied policies.  In addition, the Executive acknowledges that the
Company may elect to terminate or modify any or all Company Plans at any time.

     e.  Travel. It is contemplated that the Executive will be required to incur
         ------
travel and entertainment expense in the interests and on behalf of the Company
and in furtherance of its business.  The Executive agrees to comply with the
travel and entertainment guidelines of the

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Company, which may be modified from time to time (the "T&E Guidelines"). The
Company at the end of each month during the period of this Agreement will, upon
submission of appropriate bills or vouchers, reimburse expenses incurred by the
Executive during such month in compliance with the T&E Guidelines. The Executive
agrees to maintain adequate records, in such detail as the Company may
reasonably request, of all expenses to be reimbursed by the Company hereunder
and to make such records available for inspection as and when reasonably
requested by the Company.

4.  Employment Termination Outside of Change of Control.
    ---------------------------------------------------

    a.  Incapacity; Death.  This Agreement may be terminated by the Company,
        -----------------
by delivery of a "Notice of Termination" (defined in Section 8) to the
Executive or his personal representative given at least thirty (30) days prior
to the effective date specified therein, in the event that the Executive shall
be unable to perform his duties hereunder for a period of more than three
consecutive months as a result of illness or incapacity.  This Agreement shall
terminate on the death of the Executive.

     b.  Without Cause.  This Agreement may be terminated by the Company,
         -------------
without cause, by delivery of a "Notice of Termination" (defined in Section 8)
given to the Executive ten (10) days prior to the effective date of such
termination.

     c.  Severance Compensation.  Upon termination of this Agreement pursuant to
         ----------------------
Section 4 (a) or 4 (b), the Company shall pay to the Executive or his legal
representative certain compensation (the "Severance Compensation") as follows:

         (i)  Base Salary. The Executive shall be paid fifty-two (52) weeks of
              -----------
              base salary, and the Company shall continue in effect for a period
              of fifty-two (52) weeks after the effective date of the
              Executive's termination, all health/life/disability insurance
              coverage provided to the Executive and his immediate family on the
              day immediately prior to the date of notice of termination or, if
              the Executive shall so elect, the Company shall pay to the
              Executive an amount equal to the portion of the premium allocable
              to the Executive for providing such coverage, provided, however,
              if such coverage cannot be continued by the Company, the Company
              shall pay to the Executive an amount sufficient for the Executive
              to obtain substantially similar coverage for a period of fifty-two
              (52) weeks after the effective date of termination.

         (ii) Incentive Compensation.  The Executive shall also be entitled to
              ----------------------
              annual incentive compensation (i) actually earned by the
              Executive, if any, pursuant to Section 3(b) of this Agreement for
              the Company's current fiscal year prorated through the effective
              date of termination, which compensation shall be paid no later
              than forty-five (45) days after the end of the Company's fiscal
              year and (ii) an amount equal to the sum of the annual incentive
              compensation earned by the Executive over the two calendar years
              prior to the effective date of termination, divided by two
              ("Average Annual Incentive

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              Compensation"). Compensation pursuant to paragraph 3(c) (long term
              incentive compensation) shall be governed by the terms of the
              subject plans.

        (iii) Severance Compensation Reduction. In the event termination is
              --------------------------------
              to Section 4 (a) of this Agreement, the portion of Severance
              Compensation to be paid pursuant to Section 4(i) and (ii) shall be
              reduced by the amount of any life insurance proceeds paid by or
              through the Company or disability insurance payments for one (1)
              year, as appropriate, payable to the Executive or his personal
              representative or other beneficiary as provided by this Agreement.

         (iv) Timing. The Company, at its option, shall pay to the Executive or
              ------
              his legal representative the sums payable to such Executive or his
              legal representative on account of the portion of Severance
              Compensation consisting of (y) base salary either in a lump sum or
              in monthly increments payable on the first day of each month over
              the succeeding twelve (12) month period; and (z) the Average
              Annual Incentive Compensation within thirty (30) days after the
              effective date of termination.

         (v)  Life Insurance. The Executive shall also be entitled to direct the
              --------------
              Company to change the beneficiary of any non-group life insurance
              policy to another person or group.

     d.  By the Executive. This Agreement may be terminated by the Executive,
         ----------------
upon delivery of a "Notice of Termination" (defined in Section 8) given at least
ninety (90) days before the effective date of termination or for "Good Reason,"
which, for the purposes of this subsection, shall mean for the reasons set forth
in subsections 5(d)(i) to (vi).  In such event, the Executive shall not be
entitled to any compensation under this Agreement for any period not worked
after the termination date, other than compensation to which the Executive is
entitled pursuant to Section 5.

     e.  For Cause.  The Company may terminate this Agreement for cause by
         ---------
providing a "Notice of Termination" (as defined in Section 8).   In such event,
the Executive shall not be entitled to any compensation under this Agreement for
the period after the termination date, and any compensation paid to the
Executive shall be net of any sums owed by the Executive to the Company as a
result of the act for which the employment of the Executive was terminated.  The
circumstances under which the Company will be deemed to have cause to terminate
this Agreement will be a breach of this Agreement or a serious offense
inconsistent with his duties as an Executive which shall include but not be
limited to the following:

       (i)  The Executive is convicted of or pleads nolo contendere to any
            crime, other than a traffic offense or misdemeanor;

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       (ii) The Executive shall commit, with respect to the Company, an act of
            fraud or embezzlement or shall have been grossly negligent in the
            performance of his duties hereunder;

      (iii) The Executive engages in gross dereliction of duties, refusal to
            perform assigned duties consistent with his position, or repeated
            violation of the Company's policies after written warning; or,

       (iv) The Executive engages in drug abuse.

     f.  Consulting Services.  Upon termination of this Agreement, the Executive
         -------------------
shall, for a period of up to one year following the effective date of
termination, render such advisory or consulting services to the Company as it
may reasonably request, taking into account the Executive's health, business
commitments, geographical location and other relevant circumstances. The intent
of this paragraph is not to obligate the Executive to perform any day-to-day
duties for the Company following termination of his employment but only to
assist management in effecting a smooth transition of the functions or projects
for which the Executive was responsible while an employee of the Company. Should
the Executive fail to render such advisory or consulting services, after 30
days' prior written notice to the Executive and the Executive's failure to
commence the rendering of such service, the Company's sole remedy shall be to
terminate payment of any remaining severance compensation. If this Agreement is
terminated pursuant to Section 4(d)(except where the termination is for "Good
Reason") or 4(e) and no Severance Compensation is paid to the Executive, the
Executive shall be paid on an hourly basis to the extent requested by the
Company to perform advisory or consulting services, based upon his base salary
prior to termination for the actual time spent for advisory or consulting
services for the Company.

     g.  Return of Company Property.  The parties acknowledge and agree that
         --------------------------
records, files, reports, manuals, handbooks, computer diskettes, computer
software, customer files and information, documents, equipment and the like,
relating to the Company's business or which are developed for or by the Company,
or which Executive shall develop, create, use, prepare or come into possession
of during his employment with the Company, shall remain the sole property of the
Company and Executive covenants to promptly deliver to the Company any and all
such property and any copies thereof no later than the termination of
Executive's employment with the Company.

     h.  Covenants.   The Executive shall not be entitled to any Severance
         ---------
Compensation or benefits for any period he is in violation of the Covenants in
Section 6.

5.  Change of Control.
    -----------------

    a.  Change of Control.  For purposes of this Agreement, "Change of Control"
        -----------------
shall mean (i) the merger or consolidation of the Company with any other real
estate investment trust, corporation or other business entity, in which the
Company is not the survivor (without respect to the legal structure of the
transaction), (ii) the transfer or sale of all or substantially all of the
assets of the Company other than to an affiliate or subsidiary of the Company,
(iii) the liquidation of the

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Company, or (iv) the acquisition by any person or by a group of persons acting
in concert, of more than 50% of the outstanding voting securities of the
Company, which results in the resignation or addition of fifty percent (50%) or
more members of the Board or the resignation or addition of fifty percent (50%)
or more independent members of the Board.

     b.  Compensation Upon Termination.  Following a Change in Control that
         -----------------------------
results in termination of the Executive's employment, the Executive shall be
entitled to the following benefits unless such termination is by the Executive
other than for "Good Reason" (as defined below):

          (i)  Compensation. The Company shall pay the Executive one hundred
               ------------
               four (104) weeks of base salary at the rate in effect at the time
               Notice of Termination is given, and the equivalent of two years
               of annual incentive compensation based upon the average annual
               incentive compensation earned by the Executive for the two
               calendar years prior to the effective date of termination, plus
               all other amounts to which the Executive is entitled under any
               compensation plan of the Company.

          (ii) Benefits. The Company shall provide the Executive with life,
               --------
               disability, accident and health insurance coverage (including any
               dependent coverage) substantially similar to the coverage the
               Executive is receiving immediately prior to the Notice of
               Termination, for a twenty four (24) month period after the
               Executive's termination. Benefits otherwise receivable by the
               Executive pursuant to this subsection (ii) shall be reduced to
               the extent comparable benefits are actually received by the
               Executive during the twenty-four (24) month period following
               termination, and any such benefits actually received by the
               Executive shall be reported to the Company.

         (iii) Long-Term Incentive Compensation. All of the Executive's
               --------------------------------
               outstanding options, stock appreciation rights and any other
               awards in the nature of rights that may be exercised shall become
               fully vested and immediately exercisable; all restrictions on any
               outstanding other awards held by the Executive (such as awards of
               restricted stock) shall lapse; and the Executive's balance in any
               deferred compensation plan or shareholder value plan shall become
               fully vested and immediately payable; provided, however, that
               such acceleration will not occur if, in the opinion of the
               Company's accountants, such acceleration would preclude the use
               of "pooling of interest" accounting treatment for a Change of
               Control transaction that (a) would otherwise qualify for such
               accounting treatment, and (b) is contingent upon qualifying for
               such accounting treatment.

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          (iv) Timing. The Severance Payments shall be made no later than the
               ------
               thirtieth (30th) business day following the effective date of
               termination. However, if the amounts of the Severance Payments
               cannot be finally determined on or before such day, the Company
               shall pay to the Executive on such day an estimate of the minimum
               amount of such payments and shall pay the remainder of such
               payments as soon as the amount thereof can be determined but in
               no event later than the ninetieth (90th) day after the effective
               date of termination.

c.   Limitation of Benefits.
     ----------------------

     (i)  Notwithstanding anything in this Agreement to the contrary, in the
          event it shall be determined that any benefit, payment or distribution
          by the Company to or for the benefit of Executive (whether payable or
          distributable pursuant to the terms of this Agreement or
          otherwise)(such benefits, payments or distributions are hereinafter
          referred to as "Payments") would, if paid, be subject to the excise
          tax (the "Excise Tax") imposed by Section 4999 of the Code, then the
          aggregate present value of the Payments shall be reduced (but not
          below zero) to an amount expressed in present value that maximizes the
          aggregate present value of the Payments without causing the Payments
          or any part thereof to be subject to the Excise Tax and therefore
          nondeductible by the Company because of Section 280G of the Code (the
          "Reduced Amount"). For purposes of this Section, present value shall
          be determined in accordance with Section 280G(d)(4) of the Code.

     (ii) All determinations required to be made under this Section, including
          whether an Excise Tax would otherwise be imposed, whether the Payments
          shall be reduced, the amount of the Reduced Amount, and the
          assumptions to be utilized in arriving at such determinations, shall
          be made by Ernst & Young, LLP or such other certified public
          accounting firm acceptable to the Company, in its sole discretion (the
          "Accounting Firm") which shall provide detailed supporting
          calculations both to the Company and Executive within fifteen (15)
          business days of the receipt of notice from Executive that a Payment
          is due to be made, or such earlier time as is requested by the
          Company. All fees and expenses of the Accounting Firm shall be borne
          solely by the Company. Any determination by the Accounting Firm shall
          be binding upon the Company and Executive. As a result of the
          uncertainty in the application of Section 4999 of the Code at the time
          of the initial determination by the Accounting Firm hereunder, it is
          possible that Payments hereunder will have been unnecessarily limited
          by this Section ("Underpayment"), consistent with the calculations
          required to be made hereunder. The Accounting Firm shall determine the
          amount of the

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          Underpayment that has occurred and any such Underpayment shall be
          promptly paid by the Company to or for the benefit of Executive.

     d.  Good Reason.  The Executive shall be entitled to terminate this
         -----------
Agreement for Good Reason.  For purposes of this Section 5, "Good Reason" shall
mean the occurrence, within two (2) years after a Change in Control, of any of
the following circumstances:

    (i)  the assignment to the Executive of any duties inconsistent with the
         Executive's position and status as head of operations for the Northern
         Region, or a substantial adverse alteration in the nature or status of
         the Executive's responsibilities from those in effect immediately prior
         to the Change in Control;

    (ii) a ten percent (10%) or greater reduction by the Company in the
         Executive's annual base salary as in effect on the date hereof or as
         the same may be increased from time to time except for across-the-board
         salary reductions affecting all senior executives of the Company and
         all senior executives of any person directly or indirectly in control
         of the Company;

   (iii) the Executive's relocation by the Company to a location not within
         fifty miles of the Executive's present office or job location;

    (iv) the failure by the Company to pay to the Executive any portion of the
         Executive's current compensation, or to pay to the Executive any
         portion of an installment of deferred compensation under any deferred
         compensation program of the Company, within thirty (30) days of the
         date such compensation is due;

     (v) the failure by the Company to continue in effect any annual or long-
         term monetary incentive opportunity to which the Executive was
         entitled, or any compensation plan in which the Executive participates
         immediately prior to the Change in Control which constitutes more than
         ten percent (10%) of the Executive's total compensation; provided,
         however, that the Company may modify the monetary incentive
         opportunities so as to provide the Executive with the same or similar
         monetary incentive opportunities;

    (vi) the failure of the Company to obtain a satisfactory agreement from any
         successor to assume and agree to perform this Agreement or a similar
         agreement satisfactory to the Executive;

   (vii) in the event the Executive terminates this Agreement for Good Reason
         following a Change in Control as provided by this Section 5, the
         Executive shall be entitled to the compensation provided by Section
         5(b), reduced by

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         the amount of compensation received by the Executive following the
         Change in Control through the effective date of termination.

          e.  Potential Change of Control.  For purposes of this Agreement, a
              ---------------------------
"Potential Change in Control" shall be deemed to have occurred if (i) the
Company enters into an agreement, the consummation of which would result in the
occurrence of a Change in Control; (ii) any person (including the Company)
publicly announces an intention to take or to consider taking actions which if
consummated would constitute a Change in Control; (iii) any person, who is or
becomes the beneficial owner, directly or indirectly, of securities of the
Company representing 9.5% or more of the combined voting power of the Company's
then outstanding securities increases his beneficial ownership of such
securities by 5% or more over the percentage so owned by such person on the date
hereof; or (iv)  the Board adopts a resolution to the effect that, for the
purposes of this Agreement, a Potential Change in  Control has occurred.  In the
event of a Potential Change in Control the Executive will remain in the employ
of the Company until the earliest of (x) a date which is six (6) months from the
occurrence of such Potential Change in Control, or (y) the occurrence of a
Change in Control.

6.  Confidentiality; Non-Competition and Non-Solicitation Covenants.
    ---------------------------------------------------------------

    a.  Basis for Covenants.  The Executive acknowledges that i) he will
        -------------------
be employed as an executive officer in a managerial capacity; ii) his employment
with the Company gives him access to confidential and proprietary information
concerning the Company; iii) the agreements and covenants contained in this
Section 6 (the "Covenants") are essential to protect the business of the
Company;  and iv) the Executive is to receive consideration pursuant to this
Agreement. Executive recognizes and acknowledges that the confidential
information described in Section 6(b) (the "Confidential Information") which he
will acquire in the course of his employment is utilized by the Company in all
geographic areas in which the Company does business.  Further, the Confidential
Information will also be utilized in all geographic areas into which the Company
expands its business.  Thus, Executive acknowledges that he will be a formidable
competitor in all areas where the Company conducts business.  Executive also
acknowledges that the Covenants serve to protect the Company's investment in the
Confidential Information.

    b.  Confidentiality.
        ---------------

    (i)  The Executive acknowledges that he will be exposed to and learn a
         substantial amount of information which is proprietary and confidential
         to the Company, whether or not he develops or creates such information.
         The Executive acknowledges that such proprietary and confidential
         information may include, but is not limited to, trade secrets;
         acquisition or merger information; advertising and promotional
         programs; resource or developmental projects; plans or strategies for
         future business development; financial or statistical data; customer
         information, including, but not limited to, customer lists, sales
         records, account records, sales and marketing programs, pricing
         matters, and strategies and reports; and any Company

                                      -9-
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         manuals, forms, techniques, and other business procedures or methods,
         devices, computer software or matters of any kind relating to or with
         respect to any confidential program or projects of the Company, or any
         other information of a similar nature made available to the Executive
         and not known in the trade in which the Company is engaged, which, if
         misused or disclosed, could adversely affect the business or standing
         of the Company. Confidential Information shall not include information
         that is generally known or generally available to the public through no
         fault of the Executive.

    (ii) The Executive agrees that except as required by law, he will not at any
         time divulge to any person, agency, institution, company or other
         entity any information which he knows or has reason to believe is
         proprietary or confidential to the Company, including but not limited
         to the types of information described in Section 6(b)(i), or use such
         information to the competitive disadvantage of the Company. The
         Executive agrees that his duties and obligations under this Section 6
         will continue for 12 months from the termination of his employment or
         as long as the Confidential Information remains proprietary or
         confidential to the Company.

     c.  Non-Competition.  During the period of  the Executive's employment,
         ---------------
the Executive agrees that he will not, on behalf of anyone other than the
Company, engage in any managerial, executive, sales, or marketing activities
related to any business in which the Company is or becomes engaged during the
Executive's employment without the consent of the Board.

     d.  Non-Solicitation.  The Executive agrees that for a twelve (12) month
         ----------------
period following the termination of his employment with the Company for any
reason (including the Executive's resignation), the Executive shall not,
directly or indirectly, hire or solicit any employee of the Company employed at
the time of his termination, or encourage any such employee to leave such
employment.

     e.  Scope of Covenants.
         ------------------

    (i)  Executive acknowledges that the Company intends to extend business
         operations throughout the United States of America. Therefore, for a
         period of twelve (12) months after termination of Executive's
         employment for any reason (including Executive's resignation),
         Executive agrees that he shall not directly or indirectly carry on or
         participate in the ownership or management of apartment communities of
         the same class and quality of the communities owned by the Company that
         directly competes with the Company anywhere within the United States of
         America.

    (ii) Independent of the preceding provision, Executive agrees that he shall
         not, for a period of twelve (12) months after termination of
         Executive's employment, directly or indirectly carry on or participate
         in the ownership or

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<PAGE>

         management of apartment communities of the same class and quality of
         the apartment communities owned by the Company that directly competes
         with the Company within any county or city in which the Company
         conducts business.

  (iii)  These covenants shall not apply in the event the Executive is
         terminated (i) by the Company without cause or as a result of a Change
         of Control, or (ii) by the Executive (y) for Good Reason, which, for
         the purposes of this subsection, shall mean any of the reasons set
         forth in subsections 5(d)(i) to (iv), or (z) for a period of one (1)
         year following any change in the officer to whom the Executive directly
         reports.

     f.  Reasonableness of Covenants.  The Executive agrees that the Covenants
         ---------------------------
are necessary for the reasonable and proper protection of the Company and that
the Covenants are reasonable in respect of subject matter, length of time, and
geographic scope.  The Executive further acknowledges that the Covenants will
not unreasonably restrict him from earning a livelihood following the
termination of his employment with the Company.

     g.  Governing Law; Public Policy.
         ----------------------------

    (i)  The parties agree that it is not their intention to violate any public
         policy or statutory or common law. The parties intend that the
         provisions of this Agreement be enforced to the fullest extent
         permissible under the laws and public policies applied in each
         jurisdiction in which enforcement is sought. If any provision of this
         Agreement is found by a court to be unenforceable, the parties
         authorize the court to amend or modify the provision to make it
         enforceable in the most restrictive fashion permitted by law.

    (ii) The Executive and the Company are sophisticated parties and fully
         understand (i) the ramifications of the non-competition, non-
         solicitation and confidentiality restrictions of this Agreement and
         (ii) that the laws of each state with respect to the enforceability of
         such provisions vary. The parties are specifically selecting the
         internal laws of the Commonwealth of Virginia to govern this Agreement
         in order that it be enforceable against all of them.

     h.  Separate Agreement Upon Termination.  The provisions of this Section 6
         -----------------------------------
so far as they relate to the period after the end of the term of this Agreement
shall continue to have effect and shall operate as a separate agreement between
the Company and the Executive.

7.  Successors and Assigns.
    ----------------------

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     a.  The Executive acknowledges and agrees that this Agreement is a contract
for his personal services, he is not entitled to assign, subcontract, or
transfer any of the obligations imposed or benefits provided under this
Agreement.

     b.  This Agreement shall be binding on and will inure to the benefit of any
successors or assigns of the Company.

8.  Definitions.  The following terms shall have the following meanings:
    -----------

     a.  A "Notice of  Termination" shall mean a written notice which shall
indicate the specific termination provision in this Agreement relied upon and,
if appropriate, shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provisions so indicated.

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

9.  Miscellaneous.
    -------------

     a.  Integration.  This Agreement contains the complete agreement between
         -----------
the Executive and the Company with respect to its subject matter.  This
Agreement supersedes all previous and contemporaneous agreements, negotiations,
commitments, writings, and undertakings.

     b.  Governing Law.  This Agreement shall be governed by and interpreted in
         -------------
accordance with the laws of the Commonwealth of Virginia, regardless of choice
of law rules.  Any dispute arising between the parties related to or involving
this Agreement will be litigated in a court having jurisdiction in the
Commonwealth of Virginia.

     c.  Modifications.  This Agreement may be modified or waived only by a
         -------------
writing signed by both parties.

     d.  Waivers.  Any waiver of a breach of this Agreement will not constitute
         -------
a waiver of any future breach, whether of a similar or dissimilar nature.

     e.  Severability.  The covenants in the various provisions of  Section 6
         ------------
are separate and independent contractual provisions.  The invalidity or
unenforceability of any particular restrictive covenant or any other provision
of this Agreement shall not affect the other provisions hereof, and this
Agreement shall be construed in all respects as if such invalid or unenforceable
provision were omitted.

WE AGREE TO THIS:

UNITED DOMINION REALTY TRUST, INC.,

                                      -12-
<PAGE>

a Virginia corporation

By:  _______________________________

Its: ________________________________

EXECUTIVE

___________________________________
CURTIS W. CARTER

                                      -13-

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