Document:

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                                   EXHIBIT 4.1

                               UCBH HOLDINGS, INC.

                       ==================================

                                    INDENTURE

                           DATED AS OF APRIL 17, 1998

                            WILMINGTON TRUST COMPANY

                                   AS TRUSTEE

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

               JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES

<PAGE>

                                  TIE-SHEET /1/

of provisions of Trust Indenture Act of 1939 with Indenture dated as of April
17, 1998 between UCBH Holdings, Inc. and Wilmington Trust Company, Trustee:

<TABLE>
<CAPTION>
                                                                              INDENTURE
ACT SECTION                                                                    SECTION
<S>                                                                         <C>
310(a)(1).............................................................          6.09
310(a)(2).............................................................          6.09
310(a)(3).............................................................           N/A
310(a)(4).............................................................           N/A
310(a)(5).............................................................       6.10, 6.11
310(b)................................................................           N/A
310(c)................................................................          6.13
311(a) and (b)........................................................           N/A
311(c)................................................................      4.01, 4.02(a)
312(a)................................................................          4.02
312(b) and (c)........................................................          4.04
313(a)................................................................          4.04
313(b)(1).............................................................          4.04
313(b)(2).............................................................          4.04
313(c)................................................................          4.04
313(d)................................................................          4.04
314(a)................................................................          4.03
314(b)................................................................           N/A
314(c)(1) and (2).....................................................          6.07
314(c)(3).............................................................           N/A
314(d)................................................................           N/A
314(e)................................................................          6.07
314(f)................................................................           N/A
315(a)(c) and (d) ....................................................          6.01
315(b)................................................................          5.08
315(e)................................................................          5.09
316(a)(1).............................................................          5.07
316(a)(2).............................................................           N/A
316(a) last sentence..................................................          2.09
316(b)................................................................          9.02
317(a)................................................................          5.05
317(b)................................................................          6.05
318(a)................................................................         13.08
</TABLE>

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1 THIS TIE-SHEET IS NOT PART OF THE INDENTURE AS EXECUTED

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                              TABLE OF CONTENTS/1/

<TABLE>
<CAPTION>
ARTICLE I
DEFINITIONS                                                                     Page
                                                                                ----
<S>                                                                             <C>
SECTION 1.01
Definitions.................................................................      1
Additional Sums.............................................................      1
Adjusted Treasury Rate......................................................      1
Affiliate...................................................................      2
Agency Agreement............................................................      2
Authenticating Agent........................................................      2
Bankruptcy Law..............................................................      2
Board of Directors..........................................................      2
Board Resolution............................................................      2
Business Day................................................................      2
Capital Securities..........................................................      2
Capital Securities Guarantee................................................      2
Commission..................................................................      2
Common Securities...........................................................      3
Common Securities Guarantee.................................................      3
Common Stock................................................................      3
Company.....................................................................      3
Company Request.............................................................      3
Comparable Treasury Issue...................................................      3
Comparable Treasury Price...................................................      3
Compounded Interest.........................................................      4
Custodian...................................................................      4
Declaration.................................................................      4
Default.....................................................................      4
Defaulted Interest..........................................................      4
Deferred Interest...........................................................      4
Definitive Securities.......................................................      4
Depositary..................................................................      4
Dissolution Event...........................................................      4
Event of Default............................................................      4
Exchange Act................................................................      4
Exchange Offer..............................................................      4
Extended Interest Payment Period............................................      4
Federal Reserve.............................................................      5
Global Security.............................................................      5
Indebtedness................................................................      5
</TABLE>

--------------
1 THIS TABLE OF CONTENTS SHALL NOT, FOR ANY PURPOSE, BE DEEMED TO BE A PART
  OF THE INDENTURE.

<PAGE>

<TABLE>
<S>                                                                             <C>
Indebtedness Ranking on a Parity with the Securities........................     5
Indebtedness Ranking Junior to the Securities...............................     5
Indenture...................................................................     6
Initial Optional Redemption Date............................................     6
Interest Payment Date.......................................................     6
Issue Date..................................................................     6
Liquidated Damages..........................................................     6
Make Whole Amount...........................................................     6
Maturity Date...............................................................     6
Mortgage....................................................................     6
Non Book-Entry Capital Securities...........................................     6
Officers....................................................................     6
Officers' Certificate.......................................................     6
Opinion of Counsel..........................................................     6
Optional Redemption Price...................................................     6
Other Debentures............................................................     6
Other Guarantees............................................................     6
Outstanding.................................................................     7
Person......................................................................     7
Predecessor Security........................................................     7
Principal Office of the Trustee.............................................     7
Property Trustee............................................................     7
Quotation Agent.............................................................     7
Redemption Price............................................................     7
Reference Treasury Dealer...................................................     8
Reference Treasury Dealer Quotations........................................     8
Registration Rights Agreement...............................................     8
Regulatory Capital Event....................................................     8
Remaining Life..............................................................     8
Responsible Officer.........................................................     8
Restricted Security.........................................................     8
Rule 144A...................................................................     8
Securities..................................................................     8
Securities Act..............................................................     8
Securityholder..............................................................     9
Holder of Securities........................................................     9
Security Register...........................................................     9
Senior Indebtedness.........................................................     9
Series A Securities.........................................................     9
Series B Securities.........................................................     9
Special Event...............................................................     9
Special Event Redemption Price..............................................     9
Subsidiary..................................................................     9
Tax Event...................................................................    10
Treasury Rate...............................................................    10
Trustee.....................................................................    10
Trust Indenture Act of 1939.................................................    10
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                  <C>
Trust Securities................................................................     10
UCBH Trust Co...................................................................     10
U.S. Government Obligations.....................................................     10

ARTICLE II

SECURITIES

    SECTION 2.01.    Forms Generally............................................     11
    SECTION 2.02.    Execution and Authentication...............................     11
    SECTION 2.03.    Form and Payment...........................................     12
    SECTION 2.04.    Legends. ..................................................     12
    SECTION 2.05.    Global Security............................................     12
    SECTION 2.06     Interest...................................................     14
    SECTION 2.07.    Transfer and Exchange......................................     14
    SECTION 2.08.    Replacement Securities.....................................     16
    SECTION 2.09.    Temporary Securities.......................................     17
    SECTION 2.10.    Cancellation...............................................     17
    SECTION 2.11.    Defaulted Interest.........................................     17
    SECTION 2.12.    CUSIP Numbers..............................................     18

ARTICLE III

    PARTICULAR COVENANTS OF THE COMPANY.........................................     19
    SECTION 3.01.    Payment of Principal, Premium and Interest.................     19
    SECTION 3.02.    Offices for Notices and Payments, etc. ....................     19
    SECTION 3.03.    Appointments to Fill Vacancies in Trustee's Office ........     20
    SECTION 3.04.    Provision as to Paying Agent ..............................     20
    SECTION 3.05.    Certificate to Trustee ....................................     21
    SECTION 3.06.    Compliance with Consolidation Provisions ..................     21
    SECTION 3.07.    Limitation on Dividends ...................................     21
    SECTION 3.08.    Covenants as to UCBH Trust Co. ............................     22
    SECTION 3.09.    Payment of Expenses .......................................     22
    SECTION 3.10.    Payment Upon Resignation or Removal .......................     23

ARTICLE IV

SECURITYHOLDERS' LISTS AND REPORTS BY THE
  COMPANY AND THE TRUSTEE.......................................................     23
    SECTION 4.01.    Securityholders' Lists.....................................     23
    SECTION 4.02.    Preservation and Disclosure of Lists.......................     23
    SECTION 4.03.    Reports by Company.........................................     25
    SECTION 4.04.    Reports by the Trustee.....................................     26

ARTICLE V

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
ON EVENT OF DEFAULT.............................................................     27
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                  <C>
     SECTION 5.01.    Events of Default..........................................    27
     SECTION 5.02.    Payment of Securities on Default; Suit Therefor............    28
     SECTION 5.03.    Application of Moneys Collected by Trustee.................    30
     SECTION 5.04.    Proceedings by Securityholders.............................    31
     SECTION 5.05.    Proceedings by Trustee.....................................    32
     SECTION 5.06.    Remedies Cumulative and Continuing.........................    32
     SECTION 5.07.    Direction of Proceedings and Waiver of
                        Defaults by Majority of Securityholders..................    32
     SECTION 5.08.    Notice of Defaults.........................................    33
     SECTION 5.09.    Undertaking to Pay Costs...................................    33

ARTICLE VI

CONCERNING THE TRUSTEE...........................................................    34
     SECTION 6.01.    Duties and Responsibilities of Trustee.....................    34
     SECTION 6.02.    Reliance on Documents, Opinions, etc. .....................    35
     SECTION 6.03.    No Responsibility for Recitals, etc. ......................    36
     SECTION 6.04.    Trustee, Authenticating Agent, Paying Agents,
                      Transfer Agents or Registrar May Own Securities............    37
     SECTION 6.05.    Moneys to be Held in Trust.................................    37
     SECTION 6.06.    Compensation and Expenses of Trustee.......................    37
     SECTION 6.07.    Officers' Certificate as Evidence..........................    38
     SECTION 6.08.    Conflicting Interest of Trustee............................    38
     SECTION 6.09.    Eligibility of Trustee.....................................    38
     SECTION 6.10.    Resignation or Removal of Trustee..........................    39
     SECTION 6.11.    Acceptance by Successor Trustee............................    40
     SECTION 6.12.    Succession by Merger, etc. ................................    41
     SECTION 6.13.    Limitation on Rights of Trustee as a Creditor..............    41
     SECTION 6.14.    Authenticating Agents......................................    41

ARTICLE VII

CONCERNING THE SECURITYHOLDERS ..................................................    43
     SECTION 7.01.    Action by Securityholders..................................    43
     SECTION 7.02.    Proof of Execution by Securityholders......................    44
     SECTION 7.03.    Who Are Deemed Absolute Owners.............................    44
     SECTION 7.04.    Securities Owned by Company Deemed
                      Not Outstanding............................................    44
     SECTION 7.05.    Revocation of Consents; Future Holders Bound...............    44

ARTICLE VIII

SECURITYHOLDERS' MEETINGS........................................................    45
     SECTION 8.01.    Purposes of Meetings.......................................    45
     SECTION 8.02.    Call of Meetings by Trustee................................    45
     SECTION 8.03.    Call of Meetings by Company or Securityholders.............    45
     SECTION 8.04.    Qualifications for Voting..................................    46
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                  <C>
     SECTION 8.05.    Regulations ...............................................    46
     SECTION 8.06.    Voting ....................................................    46

ARTICLE IX

AMENDMENTS ......................................................................    47
     SECTION 9.01.     Without Consent of Securityholders .......................    47
     SECTION 9.02.     With Consent of Securityholders ..........................    49
     SECTION 9.03.     Compliance with Trust Indenture Act; Effect
                         of Supplemental Indentures .............................    50
     SECTION 9.04.     Notation on Securities ...................................    50
     SECTION 9.05.     Evidence of Compliance of Supplemental Indenture
                         to be Furnished Trustee ................................    50

ARTICLE X

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE ...............................    50

     SECTION 10.01.   Company May Consolidate, etc., on Certain Terms ...........    50
     SECTION 10.02.   Successor Corporation to be Substituted for Company .......    51
     SECTION 10.03.   Opinion of Counsel to be Given Trustee ....................    52

ARTICLE XI

SATISFACTION AND DISCHARGE OF INDENTURE .........................................    52
     SECTION 11.01.   Discharge of Indenture ....................................    52
     SECTION 11.02.   Deposited Moneys and U.S. Government Obligations
                      to be Held in Trust by Trustee ............................    53
     SECTION 11.03.   Paying Agent to Repay Moneys Held .........................    53
     SECTION 11.04.   Return of Unclaimed Moneys ................................    53
     SECTION 11.05.   Defeasance Upon Deposit of Moneys or U.S.
                      Government Obligations ....................................    53

ARTICLE XII

IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
  OFFICERS AND DIRECTORS.........................................................    55
     SECTION 12.01.   Indenture and Securities Solely Corporate Obligations......    55

ARTICLE XIII

MISCELLANEOUS PROVISIONS.........................................................    55
     SECTION 13.01.   Successors.................................................    55
     SECTION 13.02.   Official Acts by Successor Corporation.....................    55
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                    <C>
     SECTION 13.03.   Surrender of Company Powers................................      56
     SECTION 13.04.   Addresses for Notices, etc. ...............................      56
     SECTION 13.05.   Governing Law..............................................      56
     SECTION 13.06.   Evidence of Compliance with Conditions Precedent...........      56
     SECTION 13.07.   Business Days..............................................      57
     SECTION 13.08.   Trust Indenture Act to Control.............................      57
     SECTION 13.09.   Table of Contents, Headings, etc. .........................      57
     SECTION 13.10.   Execution in Counterparts..................................      57
     SECTION 13.11.   Separability...............................................      57
     SECTION 13.12.   Assignment.................................................      58
     SECTION 13.13.   Acknowledgement of Rights..................................      58

ARTICLE XIV

REDEMPTION OF SECURITIES -- MANDATORY AND
  OPTIONAL SINKING FUND..........................................................      58
     SECTION 14.01.   Special Event Redemption...................................      58
     SECTION 14.02.   Optional Redemption by Company.............................      59
     SECTION 14.03.   No Sinking Fund............................................      60
     SECTION 14.04.   Notice of Redemption; Selection of Securities..............      60
     SECTION 14.05.   Payment of Securities Called for Redemption................      61

ARTICLE XV

SUBORDINATION OF SECURITIES......................................................      61
     SECTION 15.01.   Agreement to Subordinate...................................      61
     SECTION 15.02.   Default on Senior Indebtedness.............................      62
     SECTION 15.03.   Liquidation; Dissolution; Bankruptcy.......................      62
     SECTION 15.04.   Subrogation................................................      63
     SECTION 15.05.   Trustee to Effectuate Subordination........................      64
     SECTION 15.06.   Notice by the Company......................................      65
     SECTION 15.07.   Rights of the Trustee; Holders of Senior Indebtedness......      66
     SECTION 15.08.   Subordination May Not Be Impaired..........................      66

ARTICLE XVI

EXTENSION OF INTEREST PAYMENT PERIOD.............................................      67
     SECTION 16.01.   Extension of Interest Payment Period.......................      67
     SECTION 16.02.   Notice of Extension........................................      67
</TABLE>

EXHIBIT AA-1
Testimonium
Signatures
Acknowledgements

<PAGE>

THIS INDENTURE, dated as of April 17, 1998, between UCBH Holdings, Inc., a
Delaware corporation (hereinafter sometimes called the "Company"), and
Wilmington Trust Company, a Delaware banking corporation, as trustee
(hereinafter sometimes called the "Trustee"),

                                   WITNESETH:

In consideration of the premises, and the purchase of the Securities by the
holders thereof, the Company covenants and agrees with the Trustee for the equal
and proportionate benefit of the respective holders from time to time of the
Securities, as follows:

                                    ARTICLE I

                                   DEFINITIONS

SECTION 1.01. Definitions.

The terms defined in this Section 1.01 (except as herein otherwise expressly
provided or unless the context otherwise requires) for all purposes of this
Indenture shall have the respective meanings specified in this Section 1.01. All
other terms used in this Indenture which are defined in the Trust Indenture Act
of 1939, as amended (the "Trust Indenture Act"), or which are by reference
therein defined in the Securities Act, shall (except as herein otherwise
expressly provided or unless the context otherwise requires) have the meanings
assigned to such terms in said Trust Indenture Act and in said Securities Act as
in force at the date of this Indenture as originally executed. The following
terms have the meanings given to them in the Declaration: (i) Clearing Agency;
(ii) Delaware Trustee; (iii) Property Trustee; (iv) Administrative Trustees; (v)
Series A Capital Securities; (vi) Series B Capital Securities; (vii) Direct
Action; and (viii) Distributions. All accounting terms used herein and not
expressly defined shall have the meanings assigned to such terms in accordance
with generally accepted accounting principles and the term "generally accepted
accounting principles" means such accounting principles as are generally
accepted at the time of any computation. The words "herein", "hereof" and
"hereunder" and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or other subdivision. Headings are
used for convenience of reference only and do not affect interpretation. The
singular includes the plural and vice versa.

"Additional Sums" shall have the meaning set forth in Section 2.06(c).

"Adjusted Treasury Rate" means, with respect to any prepayment date, the rate
per annum equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such prepayment date plus (i) five basis points less than the
difference between the coupon of the Capital Securities at pricing and the yield
on the 6.125% U.S. Treasury Bond due November, 2027 if such prepayment date

                                       1
<PAGE>

occurs prior to May 1, 1999 and (ii) 55 basis points less than the difference
between the coupon of the Capital Securities at pricing and the yield on the
6.125% U.S. Treasury Bond due November, 2027, in all other cases.

"Affiliate" shall have the meaning given to that term in Rule 405 under the
Securities Act or any successor rule thereunder.

"Agency Agreement" shall mean the Agency Agreement dated March 31, 1998 among
the Company, UCBH Trust Co. and the Agent named therein.

"Authenticating Agent" shall mean any agent or agents of the Trustee which at
the time shall be appointed and acting pursuant to Section 6.14.

"Bankruptcy Law" shall mean Title 11, U.S. Code, or any similar federal or state
law for the relief of debtors.

"Board of Directors" shall mean either the Board of Directors of the Company or
any duly authorized committee of that board.

"Board Resolution" shall mean a copy of a resolution certified by the Secretary
or an Assistant Secretary of the Company to have been duly adopted by the Board
of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.

"Business Day" shall mean, with respect to any series of Securities, any day
other than a Saturday or a Sunday or a day on which banking institutions in the
States of Delaware or California are authorized or required by law or executive
order to close.

"Capital Securities" shall mean undivided beneficial interests in the assets of
UCBH Trust Co, which rank pari passu with the Common Securities issued by UCBH
Trust Co.; provided, however, that if an Event of Default has occurred and is
continuing, no payments in respect of Distributions on, or payments upon
liquidation, redemption or otherwise with respect to, the Common Securities
shall be made until the holders of the Capital Securities shall be paid in full
the Distributions and the liquidation, redemption and other payments to which
they are entitled. References to "Capital Securities" shall include collectively
any Series A Capital Securities and Series B Capital Securities.

"Capital Securities Guarantee" shall mean any guarantee that the Company may
enter into with Wilmington Trust Company or other Persons that operates directly
or indirectly for the benefit of holders of Capital Securities and shall include
a Series A Capital Securities Guarantee and a Series B Capital Securities
Guarantee with respect to the Series A Capital Securities and the Series B
Capital Securities, respectively.

"Commission" shall mean the Securities and Exchange Commission, as from time to
time constituted, created under the Exchange Act, or if at any time after the
execution of this Indenture such Commission is not existing and performing the
duties now assigned to it under

                                       2
<PAGE>

the Trust Indenture Act, then the body performing such duties at such time.

"Common Securities" shall mean undivided beneficial interests in the assets of
UCBH Trust Co. which rank pari passu with Capital Securities issued by UCBH
Trust Co.; provided, however, that if an Event of Default has occurred and is
continuing, no payments in respect of Distributions on, or payments upon
liquidation, redemption or otherwise with respect to, the Common Securities
shall be made until the holders of the Capital Securities shall be paid in full
the Distributions and the liquidation, redemption and other payments to which
they are entitled.

"Common Securities Guarantee" shall mean any guarantee that the Company may
enter into with any Person or Persons that operates directly or indirectly for
the benefit of holders of Common Securities of UCBH Trust Co.

"Common Stock" shall mean the Common Stock, par value $.01 per share, of the
Company or any other class of stock resulting from changes or reclassifications
of such Common Stock consisting solely of changes in par value, or from par
value to no par value, or from no par value to par value.

"Company" shall mean UCBH Holdings, Inc., a Delaware corporation, and, subject
to the provisions of Article X, shall include its successors and assigns.

"Company Request" or "Company Order" shall mean a written request or order
signed in the name of the Company by the Chairman, the Chief Executive Officer,
the President, a Vice Chairman, a Vice President, the Comptroller, the Secretary
or an Assistant Secretary of the Company, and delivered to the Trustee.

"Comparable Treasury Issue" means the United States Treasury security selected
by the Quotation Agent as having a maturity comparable to the remaining term to
maturity of the Junior Subordinated Debentures (the "Remaining Life") to be
prepaid that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities
of comparable maturity to the Remaining. If no United States Treasury security
has a maturity which is within a period from three months before to three months
after the Remaining Life, the two most closely corresponding United States
Treasury securities as selected by the Quotation Agent shall be used as the
Comparable Treasury Issue, and the Treasury Rate shall be interpolated or
extrapolated on a straight-line basis, rounding to the nearest month.

"Comparable Treasury Price" means, with respect to any redemption date pursuant
to Section 14.01, (i) the average of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
on the third Business Day preceding such redemption date, as set forth in the
daily statistical release (or any successor release) published by the Federal
Reserve Bank of New York and designated "Composite 3:30 p.m. Quotations for U.S.
Government Securities" or (ii) if such release (or any successor release) is not
published or does not contain such prices on such Business Day, (A) the

                                       3
<PAGE>

average of the Reference Treasury Dealer Quotations for such redemption date,
after excluding the highest and lowest such Reference Treasury Dealer
Quotations, or (B) if the Trustee obtains fewer than three such Reference
Treasury Dealer Quotations, the average of all such Quotations.

"Compounded Interest" shall have the meaning set forth in Section 16.01.

"Custodian" shall mean any receiver, trustee, assignee, liquidator, or similar
official under any Bankruptcy Law.

"Declaration" means the Amended and Restated Declaration of Trust of UCBH Trust
Co., dated as of April 17, 1998, as amended from time to time.

"Default" means any event, act or condition that with notice or lapse of time,
or both, would constitute an Event of Default.

"Defaulted Interest" shall have the same meaning set forth in Section 2.11.

"Deferred Interest" shall have the meaning set forth in Section 16.01.

"Definitive Securities" shall mean those securities issued in fully registered
certificated form not otherwise in global form.

"Depositary" shall mean, with respect to Securities, for which the Company shall
determine that such Securities will be issued as a Global Security, The
Depository Trust Company, New York, New York, another clearing agency, or any
successor registered as a clearing agency under the Exchange Act or other
applicable statute or regulation, which, in each case, shall be designated by
the Company pursuant to Section 2.05(d).

"Dissolution Event" means the liquidation of UCBH Trust Co. pursuant to the
Declaration, and the distribution of the Securities held by the Property Trustee
to the holders of the Trust Securities issued by UCBH Trust Co. pro rata in
accordance with the Declaration.

"Event of Default" shall mean any event specified in Section 5.01, continued for
the period of time, if any, and after the giving of the notice, if any, therein
designated.

"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

"Exchange Offer" means the offer that may be made pursuant to the Registration
Rights Agreement (i) by the Company to exchange Series B Securities for Series A
Securities and to exchange a Series B Capital Securities Guarantee for a Series
A Capital Securities Guarantee and (ii) by UCBH Trust Co. to exchange Series B
Capital Securities for Series A Capital Securities.

"Extended Interest Payment Period" shall have the meaning set forth in Section
16.01.

                                       4
<PAGE>

"Federal Reserve" shall mean the Board of Governors of the Federal Reserve
System.

"Global Security" means, with respect to the Securities, a Security executed by
the Company and delivered by the Trustee to the Depositary or pursuant to the
Depositary's instruction, all in accordance with the Indenture, which shall be
registered in the name of the Depositary or its nominee.

"Indebtedness" shall mean (i) every obligation of the Company for money
borrowed; (ii) every obligation of the Company evidenced by bonds, debentures,
notes or other similar instruments, including obligations incurred in connection
with the acquisition of property, assets or businesses; (iii) every
reimbursement obligation of the Company with respect to letters of credit,
bankers' acceptances or similar facilities issued for the account of the
Company; (iv) every obligation of the Company issued or assumed as the deferred
purchase price of property or services (but excluding trade accounts payable or
accrued liabilities arising in the ordinary course of business); (v) every
capital lease obligation of the Company; (vi) all indebtedness of the Company
whether incurred on or prior to the date of the Indenture or thereafter
incurred, for claims in respect of derivative products, including interest rate,
foreign exchange rate and commodity forward contracts, options and swaps and
similar arrangements; and (vii) every obligation of the type referred to in
clauses (i) through (vi) of another Person and all dividends of another Person
the payment of which, in either case, the Company has guaranteed or is
responsible or liable, directly or indirectly, as obligor or otherwise.

"Indebtedness Ranking on a Parity with the Securities" shall mean (i)
Indebtedness, whether outstanding on the date of execution of this Indenture or
hereafter created, assumed or incurred, to the extent such indebtedness
specifically by its terms ranks equally with and not prior to the Securities in
the right of payment upon the happening of any dissolution or winding up or
liquidation or reorganization of the Company, and (ii) all other debt
securities, and guarantees in respect of those debt securities, issued to any
trust other than UCBH Trust Co., or a trustee of such trust, partnership or
other entity affiliated with the Company that is a financing vehicle of the
Company (a "financing entity") in connection with the issuance by such financing
entity of equity securities or other securities guaranteed by the Company
pursuant to an instrument that ranks pari passu with or junior in right of
payment to the Capital Securities Guarantee. The securing of any Indebtedness,
otherwise constituting Indebtedness Ranking on a Parity with the Securities,
shall not be deemed to prevent such Indebtedness from constituting Indebtedness
Ranking on a Parity with the Securities.

"Indebtedness Ranking Junior to the Securities" shall mean any Indebtedness,
whether outstanding on the date of execution of this Indenture or hereafter
created, assumed or incurred, to the extent such indebtedness specifically by
its terms ranks junior to and not equally with or prior to the Securities (and
any other Indebtedness Ranking on a Parity with the Securities) in right of
payment upon the happening of any dissolution or winding up or liquidation or
reorganization of the Company. The securing of any Indebtedness, otherwise
constituting Indebtedness Ranking Junior to the Securities, shall not be deemed
to prevent such Indebtedness from constituting Indebtedness Ranking Junior to
the Securities.

                                       5
<PAGE>

"Indenture" shall mean this instrument as originally executed or, if amended as
herein provided, as so amended.

"Initial Optional Redemption Date" means May 1, 2005.

"Interest Payment Date" shall have the meaning set forth in Section 2.06(a).

"Issue Date" shall mean the date of issuance of the Capital Securities.

"Liquidated Damages" shall have the meaning set forth in the Registration Rights
Agreement.

"Make Whole Amount" shall mean an amount equal to the greater of (i) 100% of the
principal amount of the Securities to be redeemed or (ii) the sum, as determined
by a Quotation Agent, of the present values of remaining scheduled payments of
principal and interest on the Securities, discounted to the prepayment date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Adjusted Treasury Rate, plus, in the case of each of clauses (i) and
(ii), accrued and unpaid interest thereon, including Compounded Interest and
Additional Sums, if any, to the date of such redemption.

"Maturity Date" shall mean May 1, 2028.

"Mortgage" shall mean and include any mortgage, pledge, lien, security interest,
conditional sale or other title retention agreement or other similar
encumbrance.

"Non Book-Entry Capital Securities" shall have the meaning set forth in Section
2.05(a)(ii).

"Officers" shall mean any of the Chairman, a Vice Chairman, the Chief Executive
Officer, the President, a Vice President, the Comptroller, the Secretary or an
Assistant Secretary of the Company.

"Officers' Certificate" shall mean a certificate signed by two Officers and
delivered to the Trustee.

"Opinion of Counsel" shall mean a written opinion of counsel, who may be an
employee of the Company, and who shall be acceptable to the Trustee.

"Optional Redemption Price" shall have the meaning set forth in Section
14.02(a).

"Other Debentures" means all junior subordinated debentures issued by the
Company from time to time and sold to trusts to be established by the Company
(if any), in each case similar to the Trust.

"Other Guarantees" means all guarantees to be issued by the Company with

                                       6
<PAGE>

respect to capital securities (if any) and issued to other trusts to be
established by the Company (if any), in each case similar to the Trust.

The term "outstanding" when used with reference to Securities, shall, subject to
the provisions of Section 7.04, mean, as of any particular time, all Securities
authenticated and delivered by the Trustee or the Authenticating Agent under
this Indenture, except

(a) Securities theretofore canceled by the Trustee or the Authenticating Agent
or delivered to the Trustee for cancellation;

(b) Securities, or portions thereof, for the payment or redemption of which
moneys in the necessary amount shall have been deposited in trust with the
Trustee or with any paying agent (other than the Company) or shall have been set
aside and segregated in trust by the Company (if the Company shall act as its
own paying agent); provided that, if such Securities, or portions thereof, are
to be redeemed prior to maturity thereof, notice of such redemption shall have
been given as in Article XIV provided or provision satisfactory to the Trustee
shall have been made for giving such notice; and

(c) Securities in lieu of or in substitution for which other Securities shall
have been authenticated and delivered pursuant to the terms of Section 2.08
unless proof satisfactory to the Company and the Trustee is presented that any
such Securities are held by bona fide holders in due course.

"Person" shall mean any individual, corporation, estate, partnership, joint
venture, association, joint-stock company, limited liability company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

"Predecessor Security" of any particular Security means every previous Security
evidencing all or a portion of the same debt and as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 2.08 in lieu of a lost, destroyed or
stolen Security shall be deemed to evidence the same debt as the lost, destroyed
or stolen Security.

"Principal Office of the Trustee", or other similar term, shall mean the office
of the Trustee, at which at any particular time its corporate trust business
shall be administered.

"Property Trustee" shall have the same meaning as set forth in the Declaration.

"Quotation Agent" means the Reference Treasury Dealer appointed by the Company.

"Redemption Price" means the Special Event Redemption Price or the Optional
Redemption Price, as the context requires.

                                       7
<PAGE>

"Reference Treasury Dealer" means a nationally recognized U.S. Government
securities dealer in New York City selected by the Company.

"Reference Treasury Dealer Quotations" means, with respect to each Reference
Treasury Dealer and any redemption date pursuant to Section 14.01, the average,
as determined by the Trustee, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m.
New York City time on the third Business Day preceding such redemption date.

"Registration Rights Agreement" means the Capital Securities Registration Rights
Agreement, dated as of April 13, 1998, by and among the Company, the Trust and
the Purchasers named therein, as such agreement may be amended, modified or
supplemented from time to time.

A "Regulatory Capital Event" means that the Company shall have received an
opinion of independent bank regulatory counsel experienced in such matters to
the effect that, as a result of (a) any amendment to, or change (including any
announced prospective change) in, the laws (or any regulations thereunder) of
the United States or any rules, guidelines or policies of the Federal Reserve or
(b) any official administrative pronouncement or judicial decision interpreting
or applying such laws or regulations, which amendment or change is effective or
such pronouncement or decision is announced on or after the Issue Date, the
Capital Securities do not constitute, or within 90 days of the date thereof,
will not constitute, Tier I Capital (or its then equivalent); provided, however,
that the distribution of the Junior Subordinated Debentures in connection with a
termination of the Trust by the Company shall not in and of itself constitute a
Regulatory Capital Event.

"Remaining Life" means the term of the Securities from the Prepayment Date to
the stated Maturity Date.

"Responsible Officer" shall mean any officer of the Trustee with direct
responsibility for the administration of the Indenture and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his knowledge of and familiarity with the
particular subject.

"Restricted Security" shall mean Securities that bear or are required to bear
the legends relating to transfer restrictions under the Securities Act set forth
in Exhibit A hereto.

"Rule 144A" means Rule 144A under the Securities Act, as such Rule may be
amended from time to time, or under any similar rule or regulation hereafter
adopted by the Commission.

"Securities" means the Series A Securities and the Series B Securities.

"Securities Act" shall mean the Securities Act of 1933, as amended.

                                       8
<PAGE>

"Securityholder", "holder of Securities", or other similar terms, shall mean any
Person in whose name at the time a particular Security is registered on the
register kept by the Company or the Trustee for that purpose in accordance with
the terms hereof.

"Security Register" shall mean (i) prior to a Dissolution Event, the list of
holders provided to the Trustee pursuant to Section 4.01 and (ii) following a
Dissolution Event, any security register maintained by a security registrar for
the Securities appointed by the Company following the execution of a
supplemental indenture providing for transfer procedures as provided for in
Section 2.07(a).

"Senior Indebtedness" shall mean all Indebtedness, whether outstanding on the
date of execution of this Indenture or hereafter created, assumed or incurred,
except Indebtedness Ranking on a Parity with the Securities or Indebtedness
Ranking Junior to the Securities, and any deferrals, renewals or extensions of
such Senior Indebtedness.

"Series A Securities" means the Company's Series A 9 3/8% Junior Subordinated
Deferrable Interest Debentures due May 1, 2028 as authenticated and issued under
this Indenture.

"Series B Securities" means the Company's Series B 9 3/8% Junior Subordinated
Deferrable Interest Debentures due May 1, 2028, as authenticated and issued
under this Indenture.

"Special Event" means either a Regulatory Capital Event or a Tax Event.

"Special Event Redemption Price" shall mean, with respect to any redemption of
the Securities following a Special Event, an amount in cash equal to the Make
Whole Amount.

"Subsidiary" shall mean with respect to any Person, (i) any corporation at least
a majority of the outstanding voting stock of which is owned, directly or
indirectly, by such Person or by one or more of its Subsidiaries, or by such
Person and one or more of its Subsidiaries, (ii) any general partnership, joint
venture or similar entity, at least a majority of whose outstanding partnership
or similar interests shall at the time be owned by such Person, or by one or
more of its Subsidiaries, or by such Person and one or more of its Subsidiaries
and (iii) any limited partnership of which such Person or any of its
Subsidiaries is a general partner. For the purposes of this definition, "voting
stock" means shares, interests, participations or other equivalents in the
equity interest (however designated) in such Person having ordinary voting power
for the election of a majority of the directors (or the equivalent) of such
Person, other than shares, interests, participations or other equivalents having
such power only by reason of the occurrence of a contingency.

"Tax Event" shall mean the receipt by UCBH Trust Co. and the Company of an
opinion of counsel experienced in such matters to the effect that, as a result
of any amendment to, or change (including any announced prospective change) in,
the laws or any regulations thereunder of the United States or any political
subdivision or taxing authority thereof or therein or as a result of any
official administrative pronouncement or judicial decision interpreting or

                                       9
<PAGE>

applying such laws or regulations, which amendment or change is effective or
which pronouncement or decision is announced on or after the Issue Date, there
is more than an insubstantial risk that (i) UCBH Trust Co. is, or will be within
90 days of the date of such opinion, subject to United States Federal income tax
with respect to income received or accrued on the Securities, (ii) interest
payable by the Company on the Securities is not, or within 90 days of the date
of such opinion, will not be, deductible by the Company, in whole or in part,
for United States Federal income tax purposes or (iii) UCBH Trust Co., or will
be within 90 days of the date of such opinion, subject to more than a de minimis
amount of other taxes, duties or other governmental charges.

"Treasury Rate" means (i) the yield, under the heading which represents the
average for the immediately prior week, appearing in the most recently published
statistical release designated "H.15(519)" or successor publication which is
published weekly by the Federal Reserve and which establishes yields on actively
traded United States Treasury securities adjusted to constant maturity under the
caption "Treasury Constant Maturities" for the maturity corresponding to the
Remaining Life (if no maturity is within three months before or after the
Remaining Life, yields for the two published maturities most closely
corresponding to the Remaining Life shall be determined and the Treasury Rate
shall be interpolated or extrapolated from such yields on a straight-line basis,
rounding to the nearest month), or (ii) if such release (or any successor
release) is not published during the week preceding the calculation date or does
not contain such yields, the rate per annum equal to the semi-annual equivalent
yield to maturity of the Comparable Treasury Issue, calculated equal to the
Comparable Treasury Price for such prepayment date. The Treasury Rate shall be
calculated on a third Business Day preceding the prepayment date.

"Trustee" shall mean the Person identified as "Trustee" in the first paragraph
hereof, and, subject to the provisions of Article VI hereof, shall also include
its successors and assigns as Trustee hereunder. The term "Trustee" as used with
respect to a particular series of the Securities shall mean the trustee with
respect to that series.

"Trust Indenture Act of 1939" shall mean the Trust Indenture Act of 1939 as in
force at the date of execution of this Indenture; provided, however, that, in
the event the Trust Indenture Act of 1939 is amended after such date, "Trust
Indenture Act of 1939" shall mean, to the extent required by any such amendment,
the Trust Indenture Act of 1939 as so amended.

"Trust Securities" shall mean the Capital Securities and the Common Securities,
collectively.

"UCBH Trust Co." or the "Trust" shall mean UCBH Trust Co., a Delaware business
trust created for the purpose of issuing its undivided beneficial interests in
connection with the issuance of Securities under this Indenture.

"U.S. Government Obligations" shall mean securities that are

(i) direct obligations of the United States of America for the payment of which
its full faith and credit is pledged or (ii) obligations of a Person controlled
or supervised by and acting as an agency or instrumentality

                                       10
<PAGE>

of the United States of America the payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States of
America, which, in either case under clauses (i) or (ii) are not callable or
redeemable at the option of the issuer thereof, and shall also include a
depository receipt issued by a bank or trust company as custodian with respect
to any such U.S. Government Obligation or a specific payment of interest on or
principal of any such U.S. Government Obligation held by such custodian for the
account of the holder of a depository receipt, provided that (except as required
by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation or the specific payment
of interest on or principal of the U.S. Government Obligation evidenced by such
depository receipt.

                                   ARTICLE II

                                   SECURITIES

SECTION 2.01. Forms Generally.

The Securities and the Trustee's certificate of authentication shall be
substantially in the form of Exhibit A, the terms of which are incorporated in
and made a part of this Indenture. The Securities may have notations, legends or
endorsements required by law, stock exchange rule, agreements to which the
Company is subject or usage. Each Security shall be dated the date of its
authentication. The Securities shall be issued in denominations of $1,000 and
integral multiples thereof.

SECTION 2.02. Execution and Authentication.

The Securities shall be executed on behalf of the Company by a duly authorized
officer and attested by a Secretary or an Assistant Secretary. The signature of
any such person on the Securities may be manual or facsimile. If an Officer
whose signature is on a Security no longer holds that office at the time the
Security is authenticated, the Security shall nevertheless be valid.

A Security shall not be valid until authenticated by the manual signature of the
Trustee. The signature of the Trustee shall be conclusive evidence that the
Security has been authenticated under this Indenture. The form of Trustee's
certificate of authentication to be borne by the Securities shall be
substantially as set forth in Exhibit A hereto.

The Trustee shall, upon a Company Order, authenticate for original issue up to,
and the aggregate principal amount of Securities outstanding at any time may not
exceed $30,928,000 aggregate principal amount of the Securities, except as
provided in Sections 2.07, 2.08, 2.09 and 14.05. The series of Securities to be
initially issued hereunder shall be the Series A Securities.

                                       11
<PAGE>

SECTION 2.03. Form and Payment.

Except as provided in Section 2.05, the Securities shall be issued in fully
registered certificated form without interest coupons. Principal of, premium, if
any, and interest on the Securities issued in certificated form will be payable,
the transfer of such Securities will be registrable and such Securities will be
exchangeable for Securities bearing identical terms and provisions at the office
or agency of the Company maintained for such purpose under Section 3.02;
provided, however, that payment of interest with respect to Securities (other
than a Global Security) may be made at the option of the Company (i) by check
mailed to the holder at such address as shall appear in the Security Register or
(ii) by transfer to an account maintained by the Person entitled thereto,
provided that proper transfer instructions have been received in writing by the
relevant record date. Notwithstanding the foregoing, so long as the holder of
any Securities is the Property Trustee, the payment of the principal of,
premium, if any, and interest (including Compounded Interest and Additional
Sums, if any) and Liquidated Damages, if any, on such Securities held by the
Property Trustee will be made at such place and to such account as may be
designated by the Property Trustee.

SECTION 2.04. Legends.

(a) Except as permitted by subsection (b) of this Section 2.04 or as otherwise
determined by the Company in accordance with applicable law, each Security shall
bear the applicable legends relating to restrictions on transfer pursuant to the
securities laws in substantially the form set forth on Exhibit A hereto.

(b) In the event of an Exchange Offer, the Company shall issue and the Trustee,
upon Company Order, shall authenticate Series B Securities in exchange for
Series A Securities accepted for exchange in the Exchange Offer, which Series B
Securities shall not bear the legends required by subsection (a) above (other
than the legend dealing with the restriction referred to in Section 2.07(a)(ii)
of this Indenture), in each case unless the holder of such Series A Securities
is either (A) a broker dealer who purchased such Series A Securities directly
from the Company for resale pursuant to Rule 144A or any other available
exemption under the Securities Act, (B) a Person participating in the
distribution of the Series A Securities or (C) a Person who is an Affiliate of
the Company.

SECTION 2.05. Global Security.

(a) In connection with a Dissolution Event,

(i) if any Capital Securities are held in book-entry form, the related
Definitive Securities shall be presented to the Trustee (if an arrangement with
the Depositary has been maintained) by the Property Trustee in exchange for one
or more Global Securities (as may be required pursuant to Section 2.07) in an
aggregate principal amount equal to the aggregate principal amount of all
outstanding Securities, to be registered in the name of the Depositary, or its
nominee, and delivered by the Trustee to the Depositary for crediting to the
accounts of its participants pursuant to the instructions of the Administrative
Trustees; the Company upon any

                                       12
<PAGE>

such presentation shall execute one or more Global Securities in such aggregate
principal amount and deliver the same to the Trustee for authentication and
delivery in accordance with this Indenture; and payments on the Securities
issued as a Global Security will be made to the Depositary; and

(ii) if any Capital Securities are held in certificated form, the related
Definitive Securities may be presented to the Trustee by the Property Trustee
and any Capital Security certificate which represents Capital Securities other
than Capital Securities in book-entry form ("Non Book-Entry Capital Securities")
will be deemed to represent beneficial interests in Securities presented to the
Trustee by the Property Trustee having an aggregate principal amount equal to
the aggregate liquidation amount of the Non Book-Entry Capital Securities until
such Capital Security certificates are presented to the Security Registrar for
transfer or reissuance, at which time such Capital Security certificates will be
canceled and a Security, registered in the name of the holder of the Capital
Security certificate or the transferee of the holder of such Capital Security
certificate, as the case may be, with an aggregate principal amount equal to the
aggregate liquidation amount of the Capital Security certificate canceled, will
be executed by the Company and delivered to the Trustee for authentication and
delivery in accordance with this Indenture. Upon the issuance of such
Securities, Securities with an equivalent aggregate principal amount that were
presented by the Property Trustee to the Trustee will be canceled.

(b) The Global Securities shall represent the aggregate amount of outstanding
Securities from time to time endorsed thereon; provided, that the aggregate
amount of outstanding Securities represented thereby may from time to time be
reduced or increased, as appropriate, to reflect exchanges and redemptions. Any
endorsement of a Global Security to reflect the amount of any increase or
decrease in the amount of outstanding Securities represented thereby shall be
made by the Trustee, in accordance with instructions given by the Company as
required by this Section 2.05.

(c) The Global Securities may be transferred, in whole but not in part, only to
the Depositary, another nominee of the Depositary, or to a successor Depositary
selected or approved by the Company or to a nominee of such successor
Depositary.

(d) If at any time the Depositary notifies the Company that it is unwilling or
unable to continue as Depositary or the Depositary has ceased to be a clearing
agency registered under the Exchange Act, and a successor Depositary is not
appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such condition, as the case may be, the Company will
execute, and the Trustee, upon receipt of a Company Order, will authenticate and
make available for delivery the Definitive Securities, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security in exchange for such Global Security. If there is
an Event of Default, the Depositary shall have the right to exchange the Global
Securities for Definitive Securities. In addition, the Company may at any time
determine that the Securities shall no longer be represented by a Global
Security. In the event of such an Event of Default or such a determination, the
Company shall execute, and subject to Section 2.07, the Trustee, upon receipt of
an Officers' Certificate

                                       13
<PAGE>

evidencing such determination by the Company and a Company Order, will
authenticate and make available for delivery the Definitive Securities, in
authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security in exchange for such Global Security.
Upon the exchange of the Global Security for such Definitive Securities, in
authorized denominations, the Global Security shall be canceled by the Trustee.
Such Definitive Securities issued in exchange for the Global Security shall be
registered in such names and in such authorized denominations as the Depositary,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. The Trustee shall deliver such Definitive Securities
to the Depositary for delivery to the Persons in whose names such Definitive
Securities are so registered.

SECTION 2.06 Interest.

(a) Each Security will bear interest at the rate of 9 3/8% per annum (the
"Coupon Rate") from the most recent date to which interest has been paid or duly
provided for or, if no interest has been paid or duly provided for, from
November 1, 1998, until the principal thereof becomes due and payable, and at
the Coupon Rate on any overdue principal (and premium, if any) and (to the
extent that payment of such interest is enforceable under applicable law) on any
overdue installment of interest, compounded semi-annually, payable (subject to
the provisions of Article XVI) semi-annually in arrears on May 1 and November 1
of each year (each, an "Interest Payment Date") commencing on the Issue Date, to
the Person in whose name such Security or any predecessor Security is
registered, at the close of business on the regular record date for such
interest installment, which shall be the fifteenth day of the month preceding
the month in which the relevant Interest Payment Date falls.

(b) Interest will be computed on the basis of a 360-day year consisting of
twelve 30-day months and, for any period of less than a full calendar month, the
number of days lapsed in such month based on a 30-day month. In the event that
any Interest Payment Date falls on a day that is not a Business Day, then
payment of interest payable on such date will be made on the next succeeding day
which is a Business Day (and without any interest or other payment in respect of
any such delay), except that if such next succeeding Business Day falls in the
next succeeding calendar year, then such payment shall be made on the
immediately preceding Business Day, in each case with the same force and effect
as if made on such date.

(c) During such time as the Property Trustee is the holder of any Securities,
the Company shall pay any additional amounts on the Securities as may be
necessary in order that the amount of Distributions then due and payable by UCBH
Trust Co. on the outstanding Trust Securities shall not be reduced as a result
of any additional taxes, duties and other governmental charges to which UCBH
Trust Co. has become subject as a result of a Tax Event ("Additional Sums").

SECTION 2.07. Transfer and Exchange.

(a) Transfer Restrictions. (i) The Series A Securities, and those Series B
Securities with respect to which any Person described in Section 2.04 (b)(A),
(B) or (C) is the

                                       14
<PAGE>

beneficial owner, may not be transferred except in compliance with the legends
contained in Exhibit A unless otherwise determined by the Company in accordance
with applicable law. Upon any distribution of the Securities following a
Dissolution Event, the Company and the Trustee shall enter into a supplemental
indenture pursuant to Section 9.01 to provide for the transfer restrictions and
procedures with respect to the Securities substantially similar to those
contained in the Declaration to the extent applicable in the circumstances
existing at such time.

(ii) The Securities will be issued and may be transferred only in blocks having
an aggregate principal amount of not less than $100,000. Any such transfer of
the Securities in a block having an aggregate principal amount of less than
$100,000 shall be deemed to be voided and of no legal effect whatsoever. Any
such transferee shall be deemed not to be a holder of such Securities for any
purpose, including, but not limited to the receipt of payments on such
Securities, and such transferee shall be deemed to have no interest whatsoever
in such Securities.

(b) General Provisions Relating to Transfers and Exchanges. To permit
registrations of transfers and exchanges, the Company shall execute and the
Trustee shall authenticate Definitive Securities and Global Securities at the
Security Registrar's request. All Definitive Securities and Global Securities
issued upon any registration of transfer or exchange of Definitive Securities or
Global Securities shall be the valid obligations of the Company, evidencing the
same debt, and entitled to the same benefits under this Indenture, as the
Definitive Securities or Global Securities surrendered upon such registration of
transfer or exchange.

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

The Company shall not be required to (i) issue, register the transfer of or
exchange Securities during a period beginning at the opening of business 15 days
before the day of mailing of a notice of redemption or any notice of selection
of Securities for redemption under Article XIV hereof and ending at the close of
business on the day of such mailing; or (ii) register the transfer of or
exchange any Security so selected for redemption in whole or in part, except the
unredeemed portion of any Security being redeemed in part.

Prior to due presentment for the registration of a transfer of any Security, the
Trustee, the Company and any agent of the Trustee or the Company may deem and
treat the Person in whose name any Security is registered as the absolute owner
of such Security for the purpose of receiving payment of principal of and
premium, if any, and interest on such Securities, neither the Trustee, nor the
Company nor any agent of the Trustee or the Company shall be affected by notice
to the contrary.

(c) Exchange of Series A Securities for Series B Securities. The Series A
Securities may be exchanged for Series B Securities pursuant to the terms of the
Exchange Offer. The Trustee shall make the exchange as follows:

                                       15
<PAGE>

The Company shall present the Trustee with an Officers' Certificate certifying
the following:

(A) upon issuance of the Series B Securities, the transactions contemplated by
the Exchange Offer have been consummated; and

(B) the principal amount of Series A Securities properly tendered in the
Exchange Offer that are represented by a Global Security and the principal
amount of Series A Securities properly tendered in the Exchange Offer that are
represented by Definitive Securities, the name of each holder of such Definitive
Securities, the principal amount properly tendered in the Exchange Offer by each
such holder and the name and address to which Definitive Securities for Series B
Securities shall be registered and sent for each such holder.

The Trustee, upon receipt of (i) such Officers' Certificate, (ii) an Opinion of
Counsel (x) to the effect that the Series B Securities have been registered
under Section 5 of the Securities Act and the Indenture has been qualified under
the Trust Indenture Act and (y) with respect to the matters set forth in Section
3(p) of the Registration Rights Agreement and (iii) a Company Order, shall
authenticate (A) a Global Security representing Series B Securities in aggregate
principal amount equal to the aggregate principal amount of Series A Securities
represented by a Global Security indicated in such Officers' Certificate as
having been properly tendered and (B) Definitive Securities representing Series
B Securities registered in the names of, and in the principal amounts indicated
in, such Officers' Certificate.

If the principal amount of the Global Security for the Series B Securities is
less than the principal amount of the Global Security for the Series A
Securities, the Trustee shall make an endorsement on such Global Security for
Series A Securities indicating a reduction in the principal amount represented
thereby.

The Trustee shall deliver such Definitive Securities representing Series B
Securities to the holders thereof as indicated in such Officers' Certificate.

SECTION 2.08. Replacement Securities.

If any mutilated Security is surrendered to the Trustee, or the Company and the
Trustee receive evidence to their satisfaction of the destruction, loss or theft
of any Security, the Company shall issue and the Trustee shall authenticate a
replacement Security if the Trustee's requirements for replacements of
Securities are met. An indemnity bond must be supplied by the holder that is
sufficient in the judgment of the Trustee and the Company to protect the
Company, the Trustee, any agent thereof or any authenticating agent from any
loss that any of them may suffer if a Security is replaced. The Company or the
Trustee may charge for its expenses in replacing a Security.

Every replacement Security is an obligation of the Company and shall be entitled

                                       16
<PAGE>

to all of the benefits of this Indenture equally and proportionately with all
other Securities duly issued hereunder.

SECTION 2.09. Temporary Securities.

Pending the preparation of Definitive Securities, the Company may execute, and
upon Company Order the Trustee shall authenticate and make available for
delivery, temporary Securities that are printed, lithographed, typewritten,
mimeographed or otherwise reproduced, in any authorized denomination,
substantially of the tenor of the Definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
conclusively evidenced by their execution of such Securities.

If temporary Securities are issued, the Company shall cause Definitive
Securities to be prepared without unreasonable delay. The Definitive Securities
shall be printed, lithographed or engraved, or provided by any combination
thereof, or in any other manner permitted by the rules and regulations of any
applicable securities exchange, all as determined by the officers executing such
Definitive Securities. After the preparation of Definitive Securities, the
temporary Securities shall be exchangeable for Definitive Securities upon
surrender of the temporary Securities at the office or agency maintained by the
Company for such purpose pursuant to Section 3.02 hereof, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities,
the Company shall execute, and the Trustee shall authenticate and make available
for delivery, in exchange therefor the same aggregate principal amount of
Definitive Securities of authorized denominations. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as Definitive Securities.

SECTION 2.10. Cancellation.

The Company at any time may deliver Securities to the Trustee for cancellation.
The Trustee and no one else shall cancel all Securities surrendered for
registration of transfer, exchange, payment, replacement or cancellation and
shall retain or dispose of canceled Securities in accordance with its normal
practices (subject to the record retention requirement of the Exchange Act)
unless the Company directs them to be returned to it. The Company may not issue
new Securities to replace Securities that have been redeemed or paid or that
have been delivered to the Trustee for cancellation.

SECTION 2.11. Defaulted Interest.

Any interest on any Security that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called "Defaulted Interest")
shall forthwith cease to be payable to the holder on the relevant regular record
date by virtue of having been such holder; and such Defaulted Interest shall be
paid by the Company, at its election, as provided in clause (a) or clause (b)
below:

                                       17
<PAGE>

(a) The Company may make payment of any Defaulted Interest on Securities to the
Persons in whose names such Securities (or their respective Predecessor
Securities) are registered at the close of business on a special record date for
the payment of such Defaulted Interest, which shall be fixed in the following
manner: the Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each such Security and the date of the
proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled
to such Defaulted Interest as in this clause provided. Thereupon the Trustee
shall fix a special record date for the payment of such Defaulted Interest which
shall not be more than 15 nor less than 10 days prior to the date of the
proposed payment and not less than 10 days after the receipt by the Trustee of
the notice of the proposed payment. The Trustee shall promptly notify the
Company of such special record date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest
and the special record date therefor to be mailed, first class postage prepaid,
to each Securityholder at his or her address as it appears in the Security
Register, not less than 10 days prior to such special record date. Notice of the
proposed payment of such Defaulted Interest and the special record date therefor
having been mailed as aforesaid, such Defaulted Interest shall be paid to the
Persons in whose names such Securities (or their respective Predecessor
Securities) are registered on such special record date and shall be no longer
payable pursuant to the following clause (b).

(b) The Company may make payment of any Defaulted Interest on any Securities in
any other lawful manner not inconsistent with the requirements of any securities
exchange on which such Securities may be listed, and upon such notice as may be
required by such exchange, if, after notice given by the Company to the Trustee
of the proposed payment pursuant to this clause, such manner of payment shall be
deemed practicable by the Trustee.

SECTION 2.12. CUSIP Numbers.

The Company in issuing the Securities may use "CUSIP" numbers (if then generally
in use), and, if so, the Trustee shall use "CUSIP" numbers in notices of
redemption as a convenience to Securityholders; provided that any such notice
may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in

                                       18
<PAGE>

or omission of such numbers. The Company will promptly notify the Trustee of any
change in the CUSIP numbers.

                                   ARTICLE III

                       PARTICULAR COVENANTS OF THE COMPANY

SECTION 3.01. Payment of Principal, Premium and Interest.

The Company covenants and agrees for the benefit of the holders of the
Securities that it will duly and punctually pay or cause to be paid the
principal of, premium, if any, and interest on the Securities at the place, at
the respective times and in the manner provided herein. Except as provided in
Section 2.03, each installment of interest on the Securities may be paid by
mailing checks for such interest payable to the order of the holder of Security
entitled thereto as they appear in the Security Register. The Company further
covenants to pay any and all amounts, including, without limitation, Additional
Sums, as may be required pursuant to Section 2.06(c), Liquidated Damages, if
any, on the dates and in the manner required under the Registration Rights
Agreement and Compounded Interest, as may be required pursuant to Section 16.01.

SECTION 3.02. Offices for Notices and Payments, etc.

So long as any of the Securities remain outstanding, the Company will maintain
in the State of Delaware, an office or agency where the Securities may be
presented for payment, an office or agency where the Securities may be presented
for registration of transfer and for exchange as in this Indenture provided and
an office or agency where notices and demands to or upon the Company in respect
of the Securities or of this Indenture may be served. The Company will give to
the Trustee written notice of the location of any such office or agency and of
any change of location thereof. Until otherwise designated from time to time by
the Company in a notice to the Trustee, any such office or agency for all of the
above purposes shall be the Principal Office of the Trustee. In case the Company
shall fail to maintain any such office or agency in the State of Delaware or
shall fail to give such notice of the location or of any change in the location
thereof, presentations and demands may be made and notices may be served at the
Principal Office of the Trustee.

In addition to any such office or agency, the Company may from time to time
designate one or more offices or agencies outside the State of Delaware where
the Securities may be presented for payment, registration of transfer and for
exchange in the manner provided in this Indenture, and the Company may from time
to time rescind such designation, as the Company may deem desirable or
expedient; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain any such office or
agency in the state of Delaware for the purposes above mentioned. The Company
will give to the Trustee prompt written notice of any such designation or
rescission thereof.

                                       19
<PAGE>

SECTION 3.03. Appointments to Fill Vacancies in Trustee's Office.

The Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, will appoint, in the manner provided in Section 6.10, a Trustee, so
that there shall at all times be a Trustee hereunder.

SECTION 3.04. Provision as to Paying Agent.

(a) If the Company shall appoint a paying agent other than the Trustee with
respect to the Securities, it will cause such paying agent to execute and
deliver to the Trustee an instrument in which such agent shall agree with the
Trustee, subject to the provision of this Section 3.04,

(1) that it will hold all sums held by it as such agent for the payment of the
principal of and premium, if any, or interest on the Securities (whether such
sums have been paid to it by the Company or by any other obligor on the
Securities) in trust for the benefit of the holders of the Securities; and

(2) that it will give the Trustee notice of any failure by the Company (or by
any other obligor on the Securities) to make any payment of the principal of and
premium or interest (including Additional Sums and Compounded Interest, if any)
and Liquidated Damages, if any, on the Securities when the same shall be due and
payable.

(b) If the Company shall act as its own paying agent, it will, on or before each
due date of the principal of and premium, if any, or interest on the Securities,
set aside, segregate and hold in trust for the benefit of the holders of the
Securities a sum sufficient to pay such principal, premium or interest so
becoming due and will notify the Trustee of any failure to take such action and
of any failure by the Company (or by any other obligor under the Securities) to
make any payment of the principal of and premium, if any, or interest on the
Securities when the same shall become due and payable.

(c) Anything in this Section 3.04 to the contrary notwithstanding, the Company
may, at any time, for the purpose of obtaining a satisfaction and discharge with
respect to the Securities hereunder, or for any other reason, pay or cause to be
paid to the Trustee all sums held in trust for such Securities by the Trustee or
any paying agent hereunder, as required by this Section 3.04, such sums to be
held by the Trustee upon the trusts herein contained.

(d) Anything in this Section 3.04 to the contrary notwithstanding, the agreement
to hold sums in trust as provided in this Section 3.04 is subject

                                       20
<PAGE>

                          TO SECTIONS 11.03 AND 11.04.

SECTION 3.05. Certificate to Trustee.

The Company will deliver to the Trustee on or before 120 days after the end of
each fiscal year in each year, commencing with the first fiscal year ending
after the date hereof, so long as Securities are outstanding hereunder, an
Officers' Certificate, one of the signers of which shall be the principal
executive, principal financial or principal accounting officer of the Company,
stating that in the course of the performance by the signers of their duties as
officers of the Company they would normally have knowledge of any default by the
Company in the performance of any covenants contained herein, stating whether or
not they have knowledge of any such default and, if so, specifying each such
default of which the signers have knowledge and the nature thereof.

SECTION 3.06. Compliance with Consolidation Provisions.

The Company will not, while any of the Securities remain outstanding,
consolidate with, or merge into, or merge into itself, or sell or convey all or
substantially all of its property to any other Person unless the provisions of
Article X hereof are complied with.

SECTION 3.07. Limitation on Dividends.

The Company will not (i) declare or pay any dividends or distributions on, or
redeem, purchase, acquire, or make a liquidation payment with respect to, any of
the Company's capital stock (which includes common and preferred stock), (ii)
make any payment of principal, premium, if any, or interest on or repay or
repurchase or redeem any debt securities of the Company (including Other
Debentures) that rank pari passu with or junior in right of payment to the
Securities or (iii) make any guarantee payments with respect to any guarantee by
the Company of the debt securities of any Subsidiary of the Company (including
Other Guarantees) if such guarantee ranks pari passu or junior in right of
payment to the Securities (other than (a) dividends or distributions in shares
of, or options, warrants or rights to subscribe for or purchase shares of,
Common Stock of the Company, (b) any declaration of a dividend in connection
with the implementation of a stockholder's rights plan, or the issuance of stock
under any such plan in the future, or the redemption or repurchase of any such
rights pursuant thereto, (c) payments under the Capital Securities Guarantee,
(d) as a result of a reclassification of the Company's capital stock or the
exchange or the conversion of one class or series of the Company's capital stock
for another class or series of the Company's capital stock, (e) the purchase of
fractional interests in shares of the Company's capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being
converted or exchanged and (f) purchases of Common Stock related to the issuance
of Common Stock or rights under any of the Company's benefit plans for its
directors, officers or employees or any of the Company's dividend reinvestment
plans) if at such time (1) there shall have occurred any event of which the
Company has actual knowledge that (a) is or, with the giving of notice or the
lapse of time, or both, would constitute an Event of Default and (b) in respect
of which the Company shall not have taken reasonable steps to cure, (2) if such
Securities are held by the Property Trustee, the Company

                                       21
<PAGE>

shall be in default with respect to its payment obligations under the Capital
Securities Guarantee or (3) the Company shall have given notice of its election
of the exercise of its right to extend the interest payment period pursuant to
Section 16.01 and any such extension shall be continuing.

SECTION 3.08. Covenants as to UCBH Trust Co.

In the event Securities are issued to UCBH Trust Co. or a trustee of such trust
in connection with the issuance of Trust Securities by UCBH Trust Co., for so
long as such Trust Securities remain outstanding, the Company (i) will maintain
100% direct or indirect ownership of the Common Securities of UCBH Trust Co.;
provided, however, that any successor of the Company, permitted pursuant to
Article X, may succeed to the Company's ownership of such Common Securities,
(ii) will use its reasonable efforts to cause UCBH Trust Co. (a) to remain a
business trust, except in connection with a distribution of Securities to the
holders of Trust Securities in liquidation of the Trust, the redemption of all
of the Trust Securities of UCBH Trust Co. or certain mergers, consolidations or
amalgamations, each as permitted by the Declaration of UCBH Trust Co., and (b)
to otherwise continue to be treated as a grantor trust and not an association
taxable as a corporation for United States federal income tax purposes and (iii)
use its reasonable efforts to cause each holder of Trust Securities to be
treated as owning an undivided beneficial interest in the Securities.

SECTION 3.09. Payment of Expenses.

In connection with the offering, sale and issuance of the Securities to UCBH
Trust Co. and in connection with the sale of the Trust Securities by UCBH Trust
Co., the Company, in its capacity as borrower with respect to the Securities,
shall:

(a) pay all costs and expenses relating to the offering, sale and issuance of
the Securities, including commissions and expenses and indemnification
obligations, if any, to or for the benefit of the Placement Agent (as defined in
the Agency Agreement) payable pursuant to the Agency Agreement, fees and
expenses in connection with any exchange offer, filing of a shelf registration
statement or other action to be taken pursuant to the Registration Rights
Agreement and compensation of the Trustee in accordance with the provisions of
Section 6.06;

(b) pay all costs and expenses of the Trust (including, but not limited to,
costs and expenses relating to the organization of UCBH Trust Co., the offering,
sale and issuance of the Trust Securities (including commissions to the initial
purchasers in connection therewith), the fees and expenses of the Property
Trustee and the Delaware Trustee, the costs and expenses relating to the
operation of UCBH Trust Co., including without limitation, costs and expenses of
accountants, attorneys, statistical or bookkeeping services, expenses for
printing and engraving and computing or accounting equipment, paying agent(s),
registrar(s), transfer agent(s), duplicating, travel and telephone and other
telecommunications expenses and costs and expenses incurred in connection with
the acquisition, financing, and disposition of assets of UCBH Trust Co.;

(c) be primarily and fully liable for any indemnification obligations arising

                                       22
<PAGE>

with respect to the Declaration;

(d) pay any and all taxes (other than United States withholding taxes
attributable to UCBH Trust Co. or its assets) and all liabilities, costs and
expenses with respect to such taxes of the Trust; and

(e) pay all other fees, expenses, debts and obligations (other than in respect
of principal, interest and premium, if any, on the Trust Securities) related to
UCBH Trust Co.

SECTION 3.10. Payment Upon Resignation or Removal.

Upon termination of this Indenture or the removal or resignation of the Trustee,
unless otherwise stated, the Company shall pay to the Trustee all amounts
accrued and owing to the date of such termination, removal or resignation. Upon
termination of the Declaration or the removal or resignation of the Delaware
Trustee or the Property Trustee, as the case may be, pursuant to Section 5.7 of
the Declaration, the Company shall pay to the Delaware Trustee or the Property
Trustee, as the case may be, all amounts accrued and owing to the date of such
termination, removal or resignation.

                                   ARTICLE IV

                    SECURITYHOLDERS' LISTS AND REPORTS BY THE

                             COMPANY AND THE TRUSTEE

SECTION 4.01. Securityholders' Lists.

The Company covenants and agrees that it will furnish or cause to be furnished
to the Trustee:

(a) on a semi-annual basis on each regular record date for the Securities, a
list, in such form as the Trustee may reasonably require, of the names and
addresses of the Securityholders as of such record date; and

(b) at such other times as the Trustee may request in writing, within 30 days
after the receipt by the Company, of any such request, a list of similar form
and content as of a date not more than 15 days prior to the time such list is
furnished,

except that, no such lists need be furnished so long as the Trustee is in
possession thereof by reason of its acting as Security registrar.

SECTION 4.02. Preservation and Disclosure of Lists.

(a) The Trustee shall preserve, in as current a form as is reasonably

                                       23
<PAGE>

practicable, all information as to the names and addresses of the holders of the
Securities (1) contained in the most recent list furnished to it as provided in
Section 4.01 or (2) received by it in the capacity of Securities registrar (if
so acting) hereunder. The Trustee may destroy any list furnished to it as
provided in Section 4.01 upon receipt of a new list so furnished.

(b) In case three or more holders of Securities (hereinafter referred to as
"applicants") apply in writing to the Trustee and furnish to the Trustee
reasonable proof that each such applicant has owned a Security for a period of
at least six months preceding the date of such application, and such application
states that the applicants desire to communicate with other holders of
Securities or with holders of all Securities with respect to their rights under
this Indenture and is accompanied by a copy of the form of proxy or other
communication which such applicants propose to transmit, then the Trustee shall
within five Business Days after the receipt of such application, at its
election, either:

(1) afford such applicants access to the information preserved at the time by
the Trustee in accordance with the provisions of subsection (a) of this Section
4.02, or

(2) inform such applicants as to the approximate number of holders of all
Securities, whose names and addresses appear in the information preserved at the
time by the Trustee in accordance with the provisions of subsection (a) of this
Section 4.02, and as to the approximate cost of mailing to such Securityholders
the form of proxy or other communication, if any, specified in such application.

If the Trustee shall elect not to afford such applicants access to such
information, the Trustee shall, upon the written request of such applicants,
mail to each Securityholder whose name and address appear in the information
preserved at the time by the Trustee in accordance with the provisions of
subsection (a) of this Section 4.02 a copy of the form of proxy or other
communication which is specified in such request with reasonable promptness
after a tender to the Trustee of the material to be mailed and of payment, or
provision for the payment, of the reasonable expenses of mailing, unless within
five days after such tender, the Trustee shall mail to such applicants and file
with the Commission, together with a copy of the material to be mailed, a
written statement to the effect that, in the opinion of the Trustee, such
mailing would be contrary to the best interests of the holders of Securities of
such series or all Securities, as the case may be, or would be in violation of
applicable law. Such written statement shall specify the basis of such opinion.
If the Commission, after opportunity for a hearing upon the objections specified
in the written

                                       24
<PAGE>

statement so filed, shall enter an order refusing to sustain any of such
objections or if, after the entry of an order sustaining one or more of such
objections, the Commission shall find, after notice and opportunity for hearing,
that all the objections so sustained have been met and shall enter an order so
declaring, the Trustee shall mail copies of such material to all such
Securityholders with reasonable promptness after the entry of such order and the
renewal of such tender; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application.

(c) Each and every holder of Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the Trustee
nor any paying agent shall be held accountable by reason of the disclosure of
any such information as to the names and addresses of the holders of Securities
in accordance with the provisions of subsection (b) of this Section 4.02,
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material pursuant
to a request made under said subsection (b).

SECTION 4.03. Reports by Company.

(a) The Company covenants and agrees to file with the Trustee, within 15 days
after the date on which the Company is required to file the same with the
Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as said
Commission may from time to time by rules and regulations prescribe) which the
Company may be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Exchange Act; or, if the Company is not required to file
information, documents or reports pursuant to either of such sections, then to
file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports which may be
required pursuant to Section 13 of the Exchange Act in respect of a security
listed and registered on a national securities exchange as may be prescribed
from time to time in such rules and regulations.

(b) The Company covenants and agrees to file with the Trustee and the
Commission, in accordance with the rules and regulations prescribed from time to
time by said Commission, such additional information, documents and reports with
respect to compliance by the Company with the conditions and covenants provided
for in this Indenture as may be required from time to time by such rules and
regulations.

                                       25
<PAGE>

(c) The Company covenants and agrees to transmit by mail to all holders of
Securities, as the names and addresses of such holders appear upon the Security
Register, within 30 days after the filing thereof with the Trustee, such
summaries of any information, documents and reports required to be filed by the
Company pursuant to subsections (a) and (b) of this Section 4.03 as may be
required by rules and regulations prescribed from time to time by the
Commission.

(d) Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).

(e) So long as is required for an offer or sale of the Securities to qualify for
an exemption under Rule 144A under the Securities Act, the Company shall, upon
request, provide the information required by clause (d)(4) thereunder to each
Securityholder and to each beneficial owner and prospective purchaser of
Securities identified by each Securityholder of Restricted Securities, unless
such information is furnished to the Commission pursuant to Section 13 or 15(d)
of the Exchange Act.

SECTION 4.04. Reports by the Trustee.

(a) The Trustee shall transmit to Securityholders such reports concerning the
Trustee and its actions under this Indenture as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto. If
required by Section 313(a) of the Trust Indenture Act, the Trustee shall, within
sixty days after each May 15 following the date of this Indenture, commencing
May 15, 1999, deliver to Securityholders a brief report, dated as of such May
15, which complies with the provisions of such Section 313(a).

(b) A copy of each such report shall, at the time of such transmission to
Securityholders, be filed by the Trustee with each stock exchange, if any, upon
which the Securities are listed, with the Commission and with the Company. The
Company will promptly notify the Trustee when the Securities are listed on any
stock exchange.

                                       26
<PAGE>

                                    ARTICLE V

                   REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
                               ON EVENT OF DEFAULT

SECTION 5.01. Events of Default.

One or more of the following events of default shall constitute an Event of
Default hereunder:

(a) default in the payment of any interest (including Compounded Interest or
Additional Sums, if any) or Liquidated Damages, if any, upon any Security or any
Other Debentures when it becomes due and payable, and continuance of such
default for a period of 30 days; provided, however, that a valid extension of an
interest payment period by the Company in accordance with the terms hereof shall
not constitute a default in the payment of interest for this purpose; or

(b) default in the payment of all or any part of the principal of (or premium,
if any, on) any Security or any Other Debentures as and when the same shall
become due and payable either at maturity, upon redemption, by declaration of
acceleration of maturity or otherwise; or

(c) default in the performance, or breach, of any covenant or warranty of the
Company in this Indenture (other than a covenant or warranty a default in whose
performance or whose breach is elsewhere in this Section specifically dealt
with), and continuance of such default or breach for a period of 90 days after
there has been given, by registered or certified mail, to the Company by the
Trustee or to the Company and the Trustee by the holders of at least 25% in
aggregate principal amount of the outstanding Securities a written notice
specifying such default or breach and requiring it to be remedied and stating
that such notice is a "Notice of Default" hereunder; or

(d) a court having jurisdiction in the premises shall enter a decree or order
for relief in respect of the Company in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
(or similar official) of the Company or for any substantial part of its
property, or ordering the winding-up or liquidation of its affairs and such
decree or order shall remain unstayed and in effect for a period of 90
consecutive days; or

(e) the Company shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect,

                                       27
<PAGE>

shall consent to the entry of an order for relief in an involuntary case under
any such law, or shall consent to the appointment of or taking possession by a
receiver, liquidator, assignee, trustee, custodian, sequestrator (or other
similar official) of the Company or of any substantial part of its property, or
shall make any general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due.

If an Event of Default with respect to Securities at the time outstanding occurs
and is continuing, then in every such case the Trustee or the holders of not
less than 25% in aggregate principal amount of the Securities then outstanding
may declare the principal amount of all Securities to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by the holders of the outstanding Securities), and upon any such declaration the
same shall become immediately due and payable.

The foregoing provisions, however, are subject to the condition that if, at any
time after the principal of the Securities shall have been so declared due and
payable, and before any judgment or decree for the payment of the moneys due
shall have been obtained or entered as hereinafter provided, (i) the Company
shall pay or shall deposit with the Trustee a sum sufficient to pay (A) all
matured installments of interest (including Compounded Interest and Additional
Sums, if any) and Liquidated Damages, if any, upon all the Securities and the
principal of and premium, if any, on any and all Securities which shall have
become due otherwise than by acceleration (with interest upon such principal and
premium, if any, and, to the extent that payment of such interest is enforceable
under applicable law, on overdue installments of interest, at the same rate as
the rate of interest specified in the Securities to the date of such payment or
deposit) and (B) such amount as shall be sufficient to cover compensation due to
the Trustee and each predecessor Trustee, their respective agents, attorneys and
counsel, pursuant to Section 6.06, and (ii) any and all Events of Default under
the Indenture, other than the non-payment of the principal of the Securities
which shall have become due solely by such declaration of acceleration, shall
have been cured, waived or otherwise remedied as provided herein, then, in every
such case, the holders of a majority in aggregate principal amount of the
Securities then outstanding, by written notice to the Company and to the
Trustee, may rescind and annul such declaration and its consequences, but no
such waiver or rescission and annulment shall extend to or shall affect any
subsequent default or shall impair any right consequent thereon.

In case the Trustee shall have proceeded to enforce any right under this
Indenture and such proceedings shall have been discontinued or abandoned because
of such rescission or annulment or for any other reason or shall have been
determined adversely to the Trustee, then and in every such case the Company,
the Trustee and the holders of the Securities shall be restored respectively to
their several positions and rights hereunder, and all rights, remedies and
powers of the Company, the Trustee and the holders of the Securities shall
continue as though no such proceeding had been taken.

SECTION 5.02. Payment of Securities on Default; Suit Therefor.

The Company covenants that (a) in case default shall be made in the payment of

                                       28
<PAGE>

any installment of interest (including Compounded Interest and Additional Sums,
if any) and Liquidated Damages, if any, upon any of the Securities as and when
the same shall become due and payable, and such default shall have continued for
a period of 30 days, or (b) in case default shall be made in the payment of the
principal of or premium, if any, on any of the Securities as and when the same
shall have become due and payable, whether at maturity of the Securities or upon
redemption or by declaration or otherwise, then, upon demand of the Trustee, the
Company will pay to the Trustee, for the benefit of the holders of the
Securities, the whole amount that then shall have become due and payable on all
such Securities for principal and premium, if any, or interest (including
Compounded Interest and Additional Sums, if any) and Liquidated Damages, if any,
or both, as the case may be, with interest upon the overdue principal and
premium, if any, and (to the extent that payment of such interest is enforceable
under applicable law and, if the Securities are held by UCBH Trust Co. or a
trustee of such trust, without duplication of any other amounts paid by UCBH
Trust Co. or a trustee in respect thereof) upon the overdue installments of
interest (including Compounded Interest and Additional Sums, if any) and
Liquidated Damages, if any, at the rate borne by the Securities; and, in
addition thereto, such further amount as shall be sufficient to cover the costs
and expenses of collection, including a reasonable compensation to the Trustee,
its agents, attorneys and counsel, and any other amount due to the Trustee
pursuant to Section 6.06.

In case the Company shall fail forthwith to pay such amounts upon such demand,
the Trustee, in its own name and as trustee of an express trust, shall be
entitled and empowered to institute any actions or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor on the
Securities and collect in the manner provided by law out of the property of the
Company or any other obligor on the Securities wherever situated the moneys
adjudged or decreed to be payable.

In case there shall be pending proceedings for the bankruptcy or for the
reorganization of the Company or any other obligor on the Securities under Title
11, United States Code, or any other applicable law, or in case a receiver or
trustee shall have been appointed for the property of the Company or such other
obligor, or in the case of any other similar judicial proceedings relative to
the Company or other obligor upon the Securities, or to the creditors or
property of the Company or such other obligor, the Trustee, irrespective of
whether the principal of the Securities shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand pursuant to the provisions of this Section 5.02,
shall be entitled and empowered, by intervention in such proceedings or
otherwise, to file and prove a claim or claims for the whole amount of principal
and interest owing and unpaid in respect of the Securities and, in case of any
judicial proceedings, to file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for amounts due to the Trustee pursuant to 6.06) and of the
Securityholders allowed in such judicial proceedings relative to the Company or
any other obligor on the Securities, or to the creditors or property of the
Company or such other obligor, unless prohibited by applicable law and
regulations, to vote on behalf of the holders of the Securities in any election
of a trustee or a standby trustee in arrangement, reorganization, liquidation or
other bankruptcy or insolvency proceedings or person

                                       29
<PAGE>

performing similar functions in comparable proceedings, and to collect and
receive any moneys or other property payable or deliverable on any such claims,
and to distribute the same after the deduction of its charges and expenses; and
any receiver, assignee or trustee in bankruptcy or reorganization is hereby
authorized by each of the Securityholders to make such payments to the Trustee,
and, in the event that the Trustee shall consent to the making of such payments
directly to the Securityholders, to pay to the Trustee such amounts as shall be
sufficient to cover reasonable compensation to the Trustee, each predecessor
Trustee and their respective agents, attorneys and counsel, and all other
amounts due to the Trustee pursuant to Section 6.06.

Nothing herein contained shall be construed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Securityholder any
plan of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any holder thereof or to authorize the Trustee to
vote in respect of the claim of any Securityholder in any such proceeding.

All rights of action and of asserting claims under this Indenture, or under any
of the Securities, may be enforced by the Trustee without the possession of any
of the Securities, or the production thereof on any trial or other proceeding
relative thereto, and any such suit or proceeding instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall be for the ratable benefit of the holders of the
Securities.

In any proceedings brought by the Trustee (and also any proceedings involving
the interpretation of any provision of this Indenture to which the Trustee shall
be a party) the Trustee shall be held to represent all the holders of the
Securities, and it shall not be necessary to make any holders of the Securities
parties to any such proceedings.

SECTION 5.03. Application of Moneys Collected by Trustee.

Any moneys collected by the Trustee shall be applied in the order following, at
the date or dates fixed by the Trustee for the distribution of such moneys, upon
presentation of the Securities in respect of which moneys have been collected,
and stamping thereon the payment, if only partially paid, and upon surrender
thereof if fully paid:

First: To the payment of costs and expenses of collection applicable to the
Securities and all other amounts due to the Trustee under Section 6.06;

Second: To the payment of all Senior Indebtedness of the Company if and to the
extent required by Article XV;

Third: In case the principal of the outstanding Securities in respect of which
moneys have been collected shall not have become due and be unpaid, to the
payment of the amounts then due and unpaid upon Securities for principal of (and
premium, if any) and interest (including Compounded Interest and Additional
Sums, if any) and Liquidated Damages, if any, on the Securities, in respect of
which or for the benefit of which money has been collected,

                                       30
<PAGE>

ratably, without preference of priority of any kind, according to the amounts
due on such Securities for principal (and premium, if any) and interest,
respectively; and

Fourth: To the Company.

SECTION 5.04. Proceedings by Securityholders.

No holder of any Security shall have any right by virtue of or by availing of
any provision of this Indenture to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Indenture or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless
such holder previously shall have given to the Trustee written notice of an
Event of Default and of the continuance thereof with respect to the Securities
specifying such Event of Default, as hereinbefore provided, and unless also the
holders of not less than 25% in aggregate principal amount of the Securities
then outstanding shall have made written request upon the Trustee to institute
such action, suit or proceeding in its own name as Trustee hereunder and shall
have offered to the Trustee such reasonable indemnity as it may require against
the costs, expenses and liabilities to be incurred therein or thereby, and the
Trustee for 60 days after its receipt of such notice, request and offer of
indemnity shall have failed to institute any such action, suit or proceeding, it
being understood and intended, and being expressly covenanted by the taker and
holder of every Security with every other taker and holder and the Trustee, that
no one or more holders of Securities shall have any right in any manner whatever
by virtue of or by availing of any provision of this Indenture to affect,
disturb or prejudice the rights of any other holder of Securities, or to obtain
or seek to obtain priority over or preference to any other such holder, or to
enforce any right under this Indenture, except in the manner herein provided and
for the equal, ratable and common benefit of all holders of Securities.

Notwithstanding any other provisions in this Indenture, however, the right of
any holder of any Security to receive payment of the principal of (premium, if
any) and interest (including Compounded Interest and Additional Sums, if any)
and Liquidated Damages, if any, on such Security, on or after the same shall
have become due and payable, or to institute suit for the enforcement of any
such payment, shall not be impaired or affected without the consent of such
holder and by accepting a Security hereunder it is expressly understood,
intended and covenanted by the taker and holder of every Security with every
other such taker and holder and the Trustee, that no one or more holders of
Securities shall have any right in any manner whatsoever by virtue or by
availing of any provision of this Indenture to affect, disturb or prejudice the
rights of the holders of any other Securities, or to obtain or seek to obtain
priority over or preference to any other such holder, or to enforce any right
under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all holders of Securities. For the protection and
enforcement of the provisions of this Section, each and every Securityholder and
the Trustee shall be entitled to such relief as can be given either at law or in
equity.

The Company and the Trustee acknowledge that pursuant to the Declaration, the
holders of Capital Securities are entitled, in the circumstances and subject to
the limitations set

                                       31
<PAGE>

forth therein, to commence a Direct Action with respect to any Event of Default
under this Indenture and the Securities.

SECTION 5.05. Proceedings by Trustee.

In case an Event of Default occurs with respect to Securities and is continuing,
the Trustee may in its discretion proceed to protect and enforce the rights
vested in it by this Indenture by such appropriate judicial proceedings as the
Trustee shall deem most effectual to protect and enforce any of such rights,
either by suit in equity or by action at law or by proceeding in bankruptcy or
otherwise, whether for the specific enforcement of any covenant or agreement
contained in this Indenture or in aid of the exercise of any power granted in
this Indenture, or to enforce any other legal or equitable right vested in the
Trustee by this Indenture or by law.

SECTION 5.06. Remedies Cumulative and Continuing.

All powers and remedies given by this Article V to the Trustee or to the
Securityholders shall, to the extent permitted by law, be deemed cumulative and
not exclusive of any other powers and remedies available to the Trustee or the
holders of the Securities, by judicial proceedings or otherwise, to enforce the
performance or observance of the covenants and agreements contained in this
Indenture or otherwise established with respect to the Securities, and no delay
or omission of the Trustee or of any holder of any of the Securities to exercise
any right or power accruing upon any Event of Default occurring and continuing
as aforesaid shall impair any such right or power, or shall be construed to be a
waiver of any such default or an acquiescence therein; and, subject to the
provisions of Section 5.04, every power and remedy given by this Article V or by
law to the Trustee or to the Securityholders may be exercised from time to time,
and as often as shall be deemed expedient, by the Trustee or by the
Securityholders.

SECTION 5.07. Direction of Proceedings and Waiver of Defaults by Majority of
Securityholders.

The holders of a majority in aggregate principal amount of the Securities at the
time outstanding shall have the right to direct the time, method, and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred on the Trustee; provided, however, that (subject to
the provisions of Section 6.01) the Trustee shall have the right to decline to
follow any such direction if the Trustee shall determine that the action so
directed would be unjustly prejudicial to the holders not taking part in such
direction or if the Trustee being advised by counsel determines that the action
or proceeding so directed may not lawfully be taken or if the Trustee in good
faith by its board of directors or trustees, executive committee, or a trust
committee of directors or trustees and/or Responsible Officers shall determine
that the action or proceedings so directed would involve the Trustee in personal
liability. Prior to any declaration accelerating the maturity of the Securities,
the holders of a majority in aggregate principal amount of the Securities at the
time outstanding may on behalf of the holders of all of the Securities waive any
past default or Event of Default and its consequences except a default (a) in
the payment of principal of or premium, if any, or interest

                                       32
<PAGE>

(including Compounded Interest and Additional Sums, if any) or Liquidated
Damages, if any, on any of the Securities or (b) in respect of covenants or
provisions hereof which cannot be modified or amended without the consent of the
holder of each Security affected; provided, however, that if the Securities are
held by the Property Trustee, such waiver or modification to such waiver shall
not be effective until the holders of a majority in aggregate liquidation amount
of Trust Securities shall have consented to such waiver or modification to such
waiver; provided further, that if the consent of the holder of each outstanding
Security is required, such waiver shall not be effective until each holder of
the Trust Securities shall have consented to such waiver. Upon any such waiver,
the default covered thereby shall be deemed to be cured for all purposes of this
Indenture and the Company, the Trustee and the holders of the Securities shall
be restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other default or impair any right
consequent thereon. Whenever any default or Event of Default hereunder shall
have been waived as permitted by this Section 5.07, said default or Event of
Default shall for all purposes of the Securities and this Indenture be deemed to
have been cured and to be not continuing.

SECTION 5.08. Notice of Defaults.

The Trustee shall, within 90 days after the occurrence of a default with respect
to the Securities known to a Responsible Officer of the Trustee, mail to all
Securityholders, as the names and addresses of such holders appear upon the
Security Register, notice of all defaults known to the Trustee, unless such
defaults shall have been cured before the giving of such notice (the term
"defaults" for the purpose of this Section 5.08 being hereby defined to be the
events specified in clauses (a), (b), (c), (d) and (e) of Section 5.01, not
including periods of grace, if any, provided for therein, and irrespective of
the giving of written notice specified in clause (c) of Section 5.01); and
provided that, except in the case of default in the payment of the principal of
or premium, if any, or interest (including Compounded Interest or Additional
Sums, if any) or Liquidated Damages, if any, on any of the Securities, the
Trustee shall be protected in withholding such notice if and so long as the
board of directors, the executive committee, or a trust committee of directors
and/or Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interests of the Securityholders; and
provided further, that in the case of any default of the character specified in
Section 5.01(c) no such notice to Securityholders shall be given until at least
60 days after the occurrence thereof but shall be given within 90 days after
such occurrence.

SECTION 5.09. Undertaking to Pay Costs.

All parties to this Indenture agree, and each holder of any Security by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees and
expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant; but
the provisions of this Section 5.09 shall not apply to any suit

                                       33
<PAGE>

instituted by the Trustee, to any suit instituted by any Securityholder, or
group of Securityholders, holding in the aggregate more than 10% in aggregate
principal amount of the Securities outstanding, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or
premium, if any) or interest (including Compounded Interest and Additional Sums,
if any) or Liquidated Damages, if any, on any Security against the Company on or
after the same shall have become due and payable.

                                   ARTICLE VI

                             CONCERNING THE TRUSTEE

SECTION 6.01. Duties and Responsibilities of Trustee.

With respect to the holders of the Securities issued hereunder, the Trustee,
prior to the occurrence of an Event of Default and after the curing or waiving
of all Events of Default which may have occurred, undertakes to perform such
duties and only such duties as are specifically set forth in this Indenture. In
case an Event of Default has occurred (which has not been cured or waived) the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs.

No provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act or its
own willful misconduct, except that

(a) prior to the occurrence of an Event of Default and after the curing or
waiving of all Events of Default which may have occurred,

(1) the duties and obligations of the Trustee shall be determined solely by the
express provisions of this Indenture, and the Trustee shall not be liable except
for the performance of such duties and obligations as are specifically set forth
in this Indenture, and no implied covenants or obligations shall be read into
this Indenture against the Trustee; and

(2) in the absence of bad faith on the part of the Trustee, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture; but, in the case
of any such certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall be under
a duty to examine the same to determine whether or not they conform to the
requirements of this Indenture;

(b) the Trustee shall not be liable for any error of judgment made in good faith
by a Responsible Officer or Officers, unless it shall be proved that the Trustee
was negligent in ascertaining the pertinent facts; and

                                       34
<PAGE>

(c) the Trustee shall not be liable with respect to any action taken or omitted
to be taken by it in good faith, in accordance with the direction of the
Securityholders pursuant to Section 5.07, relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture.

None of the provisions contained in this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur personal financial liability in
the performance of any of its duties or in the exercise of any of its rights or
powers, if there is reasonable ground for believing that the repayment of such
funds or liability is not reasonably assured to it under the terms of this
Indenture or adequate indemnity against such risk is not reasonably assured to
it.

SECTION 6.02. Reliance on Documents, Opinions, etc.

Except as otherwise provided in Section 6.01:

(a) the Trustee may rely and shall be protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, bond, note, debenture or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties;

(b) any request, direction, order or demand of the Company mentioned herein may
be sufficiently evidenced by an Officers' Certificate (unless other evidence in
respect thereof be herein specifically prescribed); and any Board Resolution may
be evidenced to the Trustee by a copy thereof certified by the Secretary or an
Assistant Secretary of the Company;

(c) the Trustee may consult with counsel of its selection and any advice or
Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken or suffered omitted by it hereunder in good faith
and in accordance with such advice or Opinion of Counsel;

(d) the Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Indenture at the request, order or direction of any
of the Securityholders, pursuant to the provisions of this Indenture, unless
such Securityholders shall have offered to the Trustee reasonable and sufficient
security or indemnity against the costs, expenses and liabilities which may be
incurred therein or thereby;

(e) the Trustee shall not be liable for any action taken or omitted by it in
good faith and believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Indenture; nothing contained herein
shall, however, relieve the Trustee of the obligation, upon the occurrence of an
Event of Default (that has not been cured or waived), to exercise

                                       35
<PAGE>

such of the rights and powers vested in it by this Indenture, and to use the
same degree of care and skill in their exercise, as a prudent man would exercise
or use under the circumstances in the conduct of his own affairs;

(f) the Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond, debenture, coupon or
other paper or document, unless requested in writing to do so by the holders of
a majority in aggregate principal amount of the outstanding Securities;
provided, however, that if the payment within a reasonable time to the Trustee
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Indenture,
the Trustee may require reasonable indemnity against such expense or liability
as a condition to so proceeding;

(g) the Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents (including any
Authenticating Agent) or attorneys, and the Trustee shall not be responsible for
any misconduct or negligence on the part of any such agent or attorney appointed
by it with due care;

(h) the Trustee shall not be charged with knowledge of any Default or Event of
Default with respect to the Securities unless (1) such default is a default
under Sections 5.01(a) (other than a default with respect to the payment of
Compounded Interest, Liquidated Damages or Additional Sums) and 5.01(b) of the
Indenture, (2) a Responsible Officer shall have actual knowledge of such Default
or Event of Default or (3) written notice of such Default or Event of Default
shall have been given to the Trustee by the Company or any other obligor on the
Securities or by any holder of the Securities; and

(i) the Trustee shall not be liable for any action taken, suffered or omitted by
it in good faith, without negligence or willful misconduct and believed by it to
be authorized or within the discretion or rights or powers conferred upon it by
this Indenture.

SECTION 6.03. No Responsibility for Recitals, etc.

The recitals contained herein and in the Securities (except in the certificate
of authentication of the Trustee or the Authenticating Agent) shall be taken as
the statements of the Company and the Trustee and the Authenticating Agent
assume no responsibility for the correctness of the same. The Trustee and the
Authenticating Agent make no representations as to the validity or sufficiency
of this Indenture or of the Securities. The Trustee and the Authenticating Agent
shall not be accountable for the use or application by the Company of any

                                       36
<PAGE>

Securities or the proceeds of any Securities authenticated and delivered by the
Trustee or the Authenticating Agent in conformity with the provisions of this
Indenture. The Trustee shall not be charged with knowledge of any default or
Event of Default under Section 5.01 (a) or (b) relating to Other Debentures
unless (i) a Responsible Officer of the Trustee assigned to its Principal Office
shall have actual knowledge thereof or (ii) the Corporation, any Securityholder
or the holder of any Other Debenture shall have given the Trustee written notice
thereof in accordance with Section 13.04.

SECTION 6.04. Trustee, Authenticating Agent, Paying Agents, Transfer Agents or
Registrar May Own Securities.

The Trustee or any Authenticating Agent or any paying agent or any transfer
agent or any Security registrar, in its individual or any other capacity, may
become the owner or pledgee of Securities with the same rights it would have if
it were not Trustee, Authenticating Agent, paying agent, transfer agent or
Security registrar.

SECTION 6.05. Moneys to be Held in Trust.

Subject to the provisions of Section 11.04, all moneys received by the Trustee
or any paying agent shall, until used or applied as herein provided, be held in
trust for the purpose for which they were received, but need not be segregated
from other funds except to the extent required by law. The Trustee and any
paying agent shall be under no liability for interest on any money received by
it hereunder except as otherwise agreed in writing with the Company. So long as
no Event of Default shall have occurred and be continuing, all interest allowed
on any such moneys shall be paid from time to time upon the written order of the
Company, signed by the Chairman of the Board of Directors, the President, a Vice
President, the Treasurer or an Assistant Treasurer of the Company.

SECTION 6.06. Compensation and Expenses of Trustee.

The Company, as issuer of Securities under this Indenture, covenants and agrees
to pay to the Trustee from time to time, and the Trustee shall be entitled to,
such compensation as shall be agreed to in writing between the Company and the
Trustee (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust), and the Company will pay or
reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any of the provisions of this Indenture (including the reasonable compensation
and the expenses and disbursements of its counsel and of all persons not
regularly in its employ) except any such expense, disbursement or advance as may
arise from its negligence or bad faith. The Company also covenants to indemnify
each of the Trustee or any predecessor Trustee (and its officers, agents,
directors and employees) for, and to hold it harmless against, any and all loss,
damage, claim, liability or expense including taxes (other than taxes based on
the income of the Trustee) incurred without negligence or bad faith on the part
of the Trustee and arising out of or in connection with the acceptance or
administration of this trust, including the costs and expenses of defending
itself against any claim of liability in the premises. The obligations of the
Company

                                       37
<PAGE>

under this Section 6.06 to compensate and indemnify the Trustee and to pay or
reimburse the Trustee for expenses, disbursements and advances shall constitute
additional indebtedness hereunder. Such additional indebtedness shall be secured
by a lien prior to that of the Securities upon all property and funds held or
collected by the Trustee as such, except funds held in trust for the benefit of
the holders of particular Securities.

When the Trustee incurs expenses or renders services in connection with an Event
of Default specified in Section 5.01(d) or Section 5.01(e), the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable federal or state bankruptcy, insolvency or
other similar law.

The provisions of this Section shall survive the resignation or removal of the
Trustee and the defeasance or other termination of this Indenture.

SECTION 6.07. Officers' Certificate as Evidence.

Except as otherwise provided in Sections 6.01 and 6.02, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or
omitting any action hereunder, such matter (unless other evidence in respect
thereof is herein specifically prescribed) may, in the absence of negligence or
bad faith on the part of the Trustee, be deemed to be conclusively proved and
established by an Officers' Certificate delivered to the Trustee, and such
certificate, in the absence of negligence or bad faith on the part of the
Trustee, shall be full warrant to the Trustee for any action taken or omitted by
it under the provisions of this Indenture upon the faith thereof.

SECTION 6.08. Conflicting Interest of Trustee.

If the Trustee has or shall acquire any "conflicting interest" within the
meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the
Company shall in all respects comply with the provisions of Section 310(b) of
the Trust Indenture Act.

SECTION 6.09. Eligibility of Trustee.

The Trustee hereunder shall at all times be a corporation organized and doing
business under the laws of the United States of America or any state or
territory thereof or of the District of Columbia or a corporation or other
Person permitted to act as trustee by the Commission authorized under such laws
to exercise corporate trust powers, having a combined capital and surplus of at
least 50 million U.S. dollars ($50,000,000) and subject to supervision or
examination by federal, state, territorial, or District of Columbia authority.
If such corporation publishes reports of condition at least annually, pursuant
to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section 6.09 the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published.

                                       38
<PAGE>

The Company may not, nor may any Person directly or indirectly controlling,
controlled by, or under common control with the Company, serve as Trustee.

In case at any time the Trustee shall cease to be eligible in accordance with
the provisions of this Section 6.09, the Trustee shall resign immediately in the
manner and with the effect specified in Section 6.10.

SECTION 6.10. Resignation or Removal of Trustee.

(a) The Trustee, or any trustee or trustees hereafter appointed, may at any time
resign by giving written notice of such resignation to the Company and by
mailing notice thereof to the holders of the Securities at their addresses as
they shall appear on the Security register. Upon receiving such notice of
resignation, the Company shall promptly appoint a successor trustee or trustees
by written instrument, in duplicate, one copy of which instrument shall be
delivered to the resigning Trustee and one copy to the successor trustee. If no
successor trustee shall have been so appointed and have accepted appointment
within 60 days after the mailing of such notice of resignation to the affected
Securityholders, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee, or any Securityholder
who has been a bona fide holder of a Security for at least six months may,
subject to the provisions of Section 5.09, on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor
trustee. Such court may thereupon, after such notice, if any, as it may deem
proper and prescribe, appoint a successor trustee.

(b) In case at any time any of the following shall occur:

(1) the Trustee shall fail to comply with the provisions of Section 6.08 after
written request therefor by the Company or by any Securityholder who has been a
bona fide holder of a Security or Securities for at least six months, or

(2) the Trustee shall cease to be eligible in accordance with the provisions of
Section 6.09 and shall fail to resign after written request therefor by the
Company or by any such Securityholder, or

(3) the Trustee shall become incapable of acting, or shall be adjudged a
bankrupt or insolvent, or a receiver of the Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Trustee or
of its property or affairs for the purpose of rehabilitation, conservation or
liquidation,

then, in any such case, the Company may remove the Trustee and appoint

                                       39
<PAGE>

a successor trustee by written instrument, in duplicate, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the
successor trustee, or, subject to the provisions of Section 5.09, any
Securityholder who has been a bona fide holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor trustee. Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, remove the Trustee and appoint a
successor trustee.

(c) The holders of a majority in aggregate principal amount of the Securities at
the time outstanding may at any time remove the Trustee and nominate a successor
trustee, which shall be deemed appointed as successor trustee unless within 10
days after such nomination the Company objects thereto or if no successor
trustee shall have been so appointed and shall have accepted appointment within
30 days after such removal, in which case the Trustee so removed or any
Securityholder, upon the terms and conditions and otherwise as in subsection (a)
of this Section 6.10 provided, may petition any court of competent jurisdiction
for an appointment of a successor trustee.

(d) Any resignation or removal of the Trustee and appointment of a successor
trustee pursuant to any of the provisions of this Section 6.10 shall become
effective upon acceptance of appointment by the successor trustee as provided in
Section 6.11.

SECTION 6.11. Acceptance by Successor Trustee.

Any successor trustee appointed as provided in Section 6.10 shall execute,
acknowledge and deliver to the Company and to its predecessor trustee an
instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the retiring trustee shall become effective and such successor
trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, duties and obligations of its predecessor hereunder,
with like effect as if originally named as trustee herein; but, nevertheless, on
the written request of the Company or of the successor trustee, the trustee
ceasing to act shall, upon payment of any amounts then due it pursuant to the
provisions of Section 6.06, execute and deliver an instrument transferring to
such successor trustee all the rights and powers of the trustee so ceasing to
act and shall duly assign, transfer and deliver to such successor trustee all
property and money held by such retiring trustee thereunder. Upon request of any
such successor trustee, the Company shall execute any and all instruments in
writing for more fully and certainly vesting in and confirming to such successor
trustee all such rights and powers. Any trustee ceasing to act shall,
nevertheless, retain a lien upon all property or funds held or collected by such
trustee to secure any amounts then due it pursuant to the provisions of Section
6.06.

No successor trustee shall accept appointment as provided in this Section 6.11

                                       40
<PAGE>

unless at the time of such acceptance such successor trustee shall be qualified
under the provisions of Section 6.08 and eligible under the provisions of
Section 6.09.

Upon acceptance of appointment by a successor trustee as provided in this
Section 6.11, the Company shall mail notice of the succession of such trustee
hereunder to the holders of Securities at their addresses as they shall appear
on the Security register. If the Company fails to mail such notice within 10
days after the acceptance of appointment by the successor trustee, the successor
trustee shall cause such notice to be mailed at the expense of the Company.

SECTION 6.12. Succession by Merger, etc.

Any corporation into which the Trustee may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder without the execution
or filing of any paper or any further act on the part of any of the parties
hereto.

In case at the time such successor to the Trustee shall succeed to the trusts
created by this Indenture any Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such
Securities either in the name of any predecessor hereunder or in the name of the
successor trustee; and in all such cases such certificates shall have the full
force which the Securities or this Indenture elsewhere provides that the
certificate of the Trustee shall have; provided, however, that the right to
adopt the certificate of authentication of any predecessor Trustee or
authenticate Securities in the name of any predecessor Trustee shall apply only
to its successor or successors by merger, conversion or consolidation.

SECTION 6.13. Limitation on Rights of Trustee as a Creditor.

The Trustee shall comply with Section 311(a) of the Trust Indenture Act,
excluding any creditor relationship described in Section 311(b) of the Trust
Indenture Act. A Trustee who has resigned or been removed shall be subject to
Section 311(a) of the Trust Indenture Act to the extent included therein.

SECTION 6.14. Authenticating Agents.

There may be one or more Authenticating Agents appointed by the Trustee upon the
request of the Company with power to act on its behalf and subject to its
direction in the authentication and delivery of Securities issued upon exchange
or transfer thereof as fully to all intents and purposes as though any such
Authenticating Agent had been expressly authorized to authenticate and deliver
Securities; provided, that the Trustee shall have no liability to the Company
for any acts or omissions of the Authenticating Agent with respect to the

                                       41
<PAGE>

authentication and delivery of Securities. Any such Authenticating Agent shall
at all times be a corporation organized and doing business under the laws of the
United States or of any state or territory thereof or of the District of
Columbia authorized under such laws to act as Authenticating Agent, having a
combined capital and surplus of at least $50,000,000 and being subject to
supervision or examination by federal, state, territorial or District of
Columbia authority. If such corporation publishes reports of condition at least
annually pursuant to law or the requirements of such authority, then for the
purposes of this Section 6.14 the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect herein specified in this Section.

Any corporation into which any Authenticating Agent may be merged or converted
or with which it may be consolidated, or any corporation resulting from any
merger, consolidation or conversion to which any Authenticating Agent shall be a
party, or any corporation succeeding to the corporate trust business of any
Authenticating Agent, shall be the successor of such Authenticating Agent
hereunder, if such successor corporation is otherwise eligible under this
Section 6.14 without the execution or filing of any paper or any further act on
the part of the parties hereto or such Authenticating Agent.

Any Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Trustee may at any time
terminate the agency of any Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time any
Authenticating Agent shall cease to be eligible under this Section 6.14, the
Trustee may, and upon the request of the Company shall, promptly appoint a
successor Authenticating Agent eligible under this Section 6.14, shall give
written notice of such appointment to the Company and shall mail notice of such
appointment to all Securityholders as the names and addresses of such holders
appear on the Security Register. Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all rights,
powers, duties and responsibilities of its predecessor hereunder, with like
effect as if originally named as Authenticating Agent herein.

The Company, as borrower, agrees to pay to any Authenticating Agent from time to
time reasonable compensation for its services. Any Authenticating Agent shall
have no responsibility or liability for any action taken by it as such in
accordance with the directions of the Trustee.

                                       42
<PAGE>

                                   ARTICLE VII

                         CONCERNING THE SECURITYHOLDERS

SECTION 7.01. Action by Securityholders.

Whenever in this Indenture it is provided that the holders of a specified
percentage in aggregate principal amount of the Securities may take any action
(including the making of any demand or request, the giving of any notice,
consent or waiver or the taking of any other action) the fact that at the time
of taking any such action the holders of such specified percentage have joined
therein may be evidenced (a) by any instrument or any number of instruments of
similar tenor executed by such Securityholders in person or by agent or proxy
appointed in writing, or (b) by the record of such holders of Securities voting
in favor thereof at any meeting of such Securityholders duly called and held in
accordance with the provisions of Article VIII, or (c) by a combination of such
instrument or instruments and any such record of such a meeting of such
Securityholders.

If the Company shall solicit from the Securityholders any request, demand,
authorization, direction, notice, consent, waiver or other action, the Company
may, at its option, as evidenced by an Officers' Certificate, fix in advance a
record date for the determination of Securityholders entitled to give such
request, demand, authorization, direction, notice, consent, waiver or other
action, but the Company shall have no obligation to do so. If such a record date
is fixed, such request, demand, authorization, direction, notice, consent,
waiver or other action may be given before or after the record date, but only
the Securityholders of record at the close of business on the record date shall
be deemed to be Securityholders for the purposes of determining whether
Securityholders of the requisite proportion of outstanding Securities have
authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other action, and for that purpose the
outstanding Securities shall be computed as of the record date; provided,
however, that no such authorization, agreement or consent by such
Securityholders on the record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Indenture not later than six
months after the record date.

SECTION 7.02. Proof of Execution by Securityholders.

Subject to the provisions of Section 6.01, 6.02 and 8.05, proof of the execution
of any instrument by a Securityholder or his agent or proxy shall be sufficient
if made in accordance with such reasonable rules and regulations as may be
prescribed by the Trustee or in such manner as shall be satisfactory to the
Trustee. The ownership of Securities shall be proved by the Security Register or
by a certificate of the Security registrar. The Trustee may require such
additional proof of any matter referred to in this Section as it shall deem
necessary.

The record of any Securityholders' meeting shall be proved in the manner
provided in Section 8.06.

                                       43
<PAGE>

SECTION 7.03. Who Are Deemed Absolute Owners.

Prior to due presentment for registration of transfer of any Security, the
Company, the Trustee, any Authenticating Agent, any paying agent, any transfer
agent and any Security registrar may deem the person in whose name such Security
shall be registered upon the Security Register to be, and may treat him as, the
absolute owner of such Security (whether or not such Security shall be overdue)
for the purpose of receiving payment of or on account of the principal of and
premium, if any, and (subject to Section 2.06) interest on such Security and for
all other purposes; and neither the Company nor the Trustee nor any
Authenticating Agent nor any paying agent nor any transfer agent nor any
Security registrar shall be affected by any notice to the contrary. All such
payments so made to any holder for the time being or upon his order shall be
valid, and, to the extent of the sum or sums so paid, effectual to satisfy and
discharge the liability for moneys payable upon any such Security.

SECTION 7.04. Securities Owned by Company Deemed Not Outstanding.

In determining whether the holders of the requisite aggregate principal amount
of Securities have concurred in any direction, consent or waiver under this
Indenture, Securities which are owned by the Company or any other obligor on the
Securities or by any Person directly or indirectly controlling or controlled by
or under direct or indirect common control with the Company or any other obligor
on the Securities shall be disregarded and deemed not to be outstanding for the
purpose of any such determination; provided that for the purposes of determining
whether the Trustee shall be protected in relying on any such direction, consent
or waiver, only Securities which a Responsible Officer of the Trustee actually
knows are so owned shall be so disregarded. Securities so owned which have been
pledged in good faith may be regarded as outstanding for the purposes of this
Section 7.04 if the pledgee shall establish to the satisfaction of the Trustee
the pledgee's right to vote such Securities and that the pledgee is not the
Company or any such other obligor or Person directly or indirectly controlling
or controlled by or under direct or indirect common control with the Company or
any such other obligor. In the case of a dispute as to such right, any decision
by the Trustee taken upon the advice of counsel shall be full protection to the
Trustee.

SECTION 7.05. Revocation of Consents; Future Holders Bound.

At any time prior to (but not after) the evidencing to the Trustee, as provided
in Section 7.01, of the taking of any action by the holders of the percentage in
aggregate principal amount of the Securities specified in this Indenture in
connection with such action, any holder of a Security (or any Security issued in
whole or in part in exchange or substitution therefor), subject to Section 7.01,
the serial number of which is shown by the evidence to be included in the
Securities the holders of which have consented to such action may, by filing
written notice with the Trustee at its principal office and upon proof of
holding as provided in Section 7.02, revoke such action so far as concerns such
Security (or so far as concerns the principal amount represented by any
exchanged or substituted Security). Except as aforesaid any such action taken by
the holder of any Security shall be conclusive and binding upon such holder and
upon all future holders and owners of such Security, and of any Security issued
in exchange or

                                       44
<PAGE>

substitution therefor, irrespective of whether or not any notation in regard
thereto is made upon such Security or any Security issued in exchange or
substitution therefor.

                                  ARTICLE VIII

                            SECURITYHOLDERS' MEETINGS

SECTION 8.01. Purposes of Meetings.

A meeting of Securityholders may be called at any time and from time to time
pursuant to the provisions of this Article VIII for any of the following
purposes:

(a) to give any notice to the Company or to the Trustee, or to give any
directions to the Trustee, or to consent to the waiving of any default hereunder
and its consequences, or to take any other action authorized to be taken by
Securityholders pursuant to any of the provisions of Article V;

(b) to remove the Trustee and nominate a successor trustee pursuant to the
provisions of Article VI;

(c) to consent to the execution of an indenture or indentures supplemental
hereto pursuant to the provisions of Section 9.02; or

(d) to take any other action authorized to be taken by or on behalf of the
holders of any specified aggregate principal amount of such Securities under any
other provision of this Indenture or under applicable law.

SECTION 8.02. Call of Meetings by Trustee.

The Trustee may at any time call a meeting of Securityholders to take any action
specified in Section 8.01, to be held at such time and at such place in the
State of Delaware or the City of San Francisco, California, as the Trustee shall
determine. Notice of every meeting of the Securityholders, setting forth the
time and the place of such meeting and in general terms the action proposed to
be taken at such meeting, shall be mailed to holders of Securities at their
addresses as they shall appear on the Securities Register. Such notice shall be
mailed not less than 20 nor more than 180 days prior to the date fixed for the
meeting.

SECTION 8.03. Call of Meetings by Company or Securityholders.

In case at any time the Company pursuant to a resolution of the Board of
Directors, or the holders of at least 10% in aggregate principal amount of the
Securities then outstanding, shall have requested the Trustee to call a meeting
of Securityholders, by written request setting forth in reasonable detail the
action proposed to be taken at the meeting, and the Trustee shall not have
mailed the notice of such meeting within 20 days after receipt of such request,
then the Company or such Securityholders may determine the time and the place in
said

                                       45
<PAGE>

State of Delaware for such meeting and may call such meeting to take any action
authorized in Section 8.01, by mailing notice thereof as provided in Section
8.02.

SECTION 8.04. Qualifications for Voting.

To be entitled to vote at any meeting of Securityholders a Person shall (a) be a
holder of one or more Securities or (b) a Person appointed by an instrument in
writing as proxy by a holder of one or more Securities. The only Persons who
shall be entitled to be present or to speak at any meeting of Securityholders
shall be the Persons entitled to vote at such meeting and their counsel and any
representatives of the Trustee and its counsel and any representatives of the
Company and its counsel.

SECTION 8.05. Regulations.

Notwithstanding any other provisions of this Indenture, the Trustee may make
such reasonable regulations as it may deem advisable for any meeting of
Securityholders, in regard to proof of the holding of Securities and of the
appointment of proxies, and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates and
other evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall think fit.

The Trustee shall, by an instrument in writing, appoint a temporary chairman of
the meeting, unless the meeting shall have been called by the Company or by
Securityholders as provided in Section 8.03, in which case the Company or the
Securityholders calling the meeting, as the case may be, shall in like manner
appoint a temporary chairman. A permanent chairman and a permanent secretary of
the meeting shall be elected by majority vote of the meeting.

Subject to the provisions of Section 8.04, at any meeting each holder of
Securities or proxy therefor shall be entitled to one vote for each $1,000
principal amount of Securities held or represented by him; provided, however,
that no vote shall be cast or counted at any meeting in respect of any Security
challenged as not outstanding and ruled by the chairman of the meeting to be not
outstanding. The chairman of the meeting shall have no right to vote other than
by virtue of Securities held by him or instruments in writing as aforesaid duly
designating him as the person to vote on behalf of other Securityholders. Any
meeting of Securityholders duly called pursuant to the provisions of Section
8.02 or 8.03 may be adjourned from time to time by a majority of those present,
and the meeting may be held as so adjourned without further notice.

SECTION 8.06. Voting.

The vote upon any resolution submitted to any meeting of holders of Securities
shall be by written ballots on which shall be subscribed the signatures of such
holders or of their representatives by proxy and the serial number or numbers of
the Securities held or represented by them. The permanent chairman of the
meeting shall appoint two inspectors of votes who shall count all votes cast at
the meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in triplicate of all
votes cast at the

                                       46
<PAGE>

meeting. A record in duplicate of the proceedings of each meeting of
Securityholders shall be prepared by the secretary of the meeting and there
shall be attached to said record the original reports of the inspectors of votes
on any vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was mailed as provided in Section 8.02. The record
shall show the serial numbers of the Securities voting in favor of or against
any resolution. The record shall be signed and verified by the affidavits of the
permanent chairman and secretary of the meeting and one of the duplicates shall
be delivered to the Company and the other to the Trustee to be preserved by the
Trustee, the latter to have attached thereto the ballots voted at the meeting.
The holders of the Series A Capital Securities and the Series B Capital
Securities shall vote for all purposes as a single class.

Any record so signed and verified shall be conclusive evidence of the matters
therein stated.

                                   ARTICLE IX

                                   AMENDMENTS

SECTION 9.01. Without Consent of Securityholders.

The Company, when authorized by a Board Resolution, and the Trustee may from
time to time and at any time amend the Indenture, without the consent of the
Securityholders, for one or more of the following purposes:

(a) to evidence the succession of another Person to the Company, or successive
successions, and the assumption by the successor Person of the covenants,
agreements and obligations of the Company pursuant to Article X hereof;

(b) to add to the covenants of the Company such further covenants, restrictions
or conditions for the protection of the Securityholders as the Board of
Directors and the Trustee shall consider to be for the protection of the
Securityholders, and to make the occurrence, or the occurrence and continuance,
of a default in any of such additional covenants, restrictions or conditions a
default or an Event of Default permitting the enforcement of all or any of the
remedies provided in this Indenture as herein set forth; provided, however, that
in respect of any such additional covenant, restriction or condition such
amendment may provide for a particular period of grace after default (which
period may be shorter or longer than that allowed in the case of other defaults)
or may provide for an immediate enforcement upon such default or may limit the
remedies available to the Trustee upon such default;

                                       47
<PAGE>

(c) to provide for the issuance under this Indenture of Securities in coupon
form (including Securities registrable as to principal only) and to provide for
exchangeability of such Securities with the Securities issued hereunder in fully
registered form and to make all appropriate changes for such purpose;

(d) to cure any ambiguity or to correct or supplement any provision contained
herein or in any supplemental indenture which may be defective or inconsistent
with any other provision contained herein or in any supplemental indenture, or
to make such other provisions in regard to matters or questions arising under
this Indenture; provided that any such action shall not materially adversely
affect the interests of the holders of the Securities;

(e) to evidence and provide for the acceptance of appointment hereunder by a
successor trustee with respect to the Securities;

(f) to make provision for transfer procedures, certification, book-entry
provisions, the form of restricted securities legends, if any, to be placed on
Securities, and all other matters required pursuant to Section 2.07 or otherwise
necessary, desirable or appropriate in connection with the issuance of
Securities to holders of Capital Securities in the event of a distribution of
Securities by UCBH Trust Co. following a Dissolution Event;

(g) to qualify or maintain qualification of this Indenture under the Trust
Indenture Act;

(h) to enable the Company and the Trust to conduct an Exchange Offer as
contemplated by the Registration Rights Agreement, provided that any such action
shall not materially adversely affect the interests of the holders of the
Securities; or

(i) to make any change that does not adversely affect the rights of any
Securityholder in any material respect.

The Trustee is hereby authorized to join with the Company in the execution of
any supplemental indenture to effect such amendment, to make any further
appropriate agreements and stipulations which may be therein contained and to
accept the conveyance, transfer and assignment of any property thereunder, but
the Trustee shall not be obligated to, but may in its discretion, enter into any
such supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.

Any amendment to the Indenture authorized by the provisions of this Section 9.01
may be executed by the Company and the Trustee without the consent of the
holders of any of

                                       48
<PAGE>

the Securities at the time outstanding, notwithstanding any of the provisions of
Section 9.02.

SECTION 9.02. With Consent of Securityholders.

With the consent (evidenced as provided in Section 7.01) of the holders of a
majority in aggregate principal amount of the Securities at the time
outstanding, the Company, when authorized by a Board Resolution, and the Trustee
may from time to time and at any time amend the Indenture for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
holders of the Securities; provided, however, that no such amendment shall
without the consent of the holders of each Security then outstanding and
affected thereby (i) change the Maturity Date of any Security, or reduce the
rate or extend the time of payment of interest thereon (except as contemplated
by Article XVI), or reduce the principal amount thereof, or reduce any amount
payable on redemption thereof, or make the principal thereof or any interest or
premium thereon payable in any coin or currency other than that provided in the
Securities, or impair or affect the right of any Securityholder to institute
suit for payment thereof, or (ii) reduce the aforesaid percentage of Securities
the holders of which are required to consent to any such amendment to the
Indenture, provided, however, that if the Securities are held by UCBH Trust Co.,
such amendment shall not be effective until the holders of a majority in
liquidation amount of Trust Securities shall have consented to such amendment;
provided, further, that if the consent of the holder of each outstanding
Security is required, such amendment shall not be effective until each holder of
the Trust Securities shall have consented to such amendment.

Upon the request of the Company accompanied by a copy of a resolution of the
Board of Directors certified by its Secretary or Assistant Secretary authorizing
the execution of any supplemental indenture affecting such amendment, and upon
the filing with the Trustee of evidence of the consent of Securityholders as
aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee's
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture.

Promptly after the execution by the Company and the Trustee of any supplemental
indenture pursuant to the provisions of this Section, the Trustee shall transmit
by mail, first class postage prepaid, a notice, prepared by the Company, setting
forth in general terms the substance of such supplemental indenture, to the
Securityholders as their names and addresses appear upon the Security Register.
Any failure of the Trustee to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such supplemental
indenture.

It shall not be necessary for the consent of the Securityholders under this
Section 9.02 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the
substance thereof.

                                       49
<PAGE>

SECTION 9.03. Compliance with Trust Indenture Act; Effect of Supplemental
Indentures.

Any supplemental indenture executed pursuant to the provisions of this Article
IX shall comply with the Trust Indenture Act. Upon the execution of any
supplemental indenture pursuant to the provisions of this Article IX, this
Indenture shall be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitations of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Company and the holders
of Securities shall thereafter be determined, exercised and enforced hereunder
subject in all respects to such modifications and amendments and all the terms
and conditions of any such supplemental indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.

SECTION 9.04. Notation on Securities.

Securities authenticated and delivered after the execution of any supplemental
indenture affecting such series pursuant to the provisions of this Article IX
may bear a notation in form approved by the Trustee as to any matter provided
for in such supplemental indenture. If the Company or the Trustee shall so
determine, new Securities so modified as to conform, in the opinion of the
Trustee and the Board of Directors, to any modification of this Indenture
contained in any such supplemental indenture may be prepared and executed by the
Company, authenticated by the Trustee or the Authenticating Agent and delivered
in exchange for the Securities then outstanding.

SECTION 9.05. Evidence of Compliance of Supplemental Indenture to be Furnished
Trustee.

The Trustee, subject to the provisions of Sections 6.01 and 6.02, may receive,
in addition to the document required by Section 13.06, an Officers' Certificate
and an Opinion of Counsel as conclusive evidence that any supplemental indenture
executed pursuant hereto complies with the requirements of this Article IX. The
Trustee may received an Opinion of Counsel as conclusive evidence that any
supplemental indenture executed pursuant to this Article is authorized or
permitted by, and conforms to, the terms of this Article and that it is proper
for the Trustee under the provisions of this Article to join in the execution
thereof.

                                    ARTICLE X

                CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

SECTION 10.01. Company May Consolidate, etc., on Certain Terms.

Nothing contained in this Indenture or in any of the Securities shall prevent
any consolidation or merger of the Company with or into any other Person
(whether or not affiliated

                                       50
<PAGE>

with the Company, as the case may be), or successive consolidations or mergers
in which the Company or its successor or successors, as the case may be, shall
be a party or parties, or shall prevent any sale, conveyance, transfer or lease
of the property of the Company, or its successor or successors as the case may
be, as an entirety, or substantially as an entirety, to any other Person
(whether or not affiliated with the Company, or its successor or successors, as
the case may be) authorized to acquire and operate the same; provided, that (a)
the Company is the surviving Person, or the Person formed by or surviving any
such consolidation or merger (if other than the Company) or to which such sale,
conveyance, transfer or lease of property is made is a Person organized and
existing under the laws of the United States or any State thereof or the
District of Columbia, and (b) upon any such consolidation, merger, sale,
conveyance, transfer or lease, the due and punctual payment of the principal of
(and premium, if any) and interest on the Securities according to their tenor
and the due and punctual performance and observance of all the covenants and
conditions of this Indenture to be kept or performed by the Company shall be
expressly assumed, by supplemental indenture (which shall conform to the
provisions of the Trust Indenture Act, as then in effect) satisfactory in form
to the Trustee executed and delivered to the Trustee by the Person formed by
such consolidation, or into which the Company shall have been merged, or by the
Person which shall have acquired such property, as the case may be, (c) after
giving effect to such consolidation, merger, sale, conveyance, transfer or
lease, no Default or Event of Default shall have occurred and be continuing and
(d) such consolidation, merger, sale, conveyance, transfer or lease does not
cause the Securities to be downgraded by a nationally recognized statistical
rating organization.

SECTION 10.02. Successor Corporation to be Substituted for Company.

In case of any such consolidation, merger, conveyance or transfer and upon the
assumption by the successor corporation, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the due and
punctual payment of the principal of and premium, if any, and interest on all of
the Securities and the due and punctual performance and observance of all of the
covenants and conditions of this Indenture to be performed or observed by the
Company, such successor Person shall succeed to and be substituted for the
Company, with the same effect as if it had been named herein as the party of the
first part, and the Company thereupon shall be relieved of any further liability
or obligation hereunder or upon the Securities. Such successor Person thereupon
may cause to be signed, and may issue either in its own name or in the name of
UCBH Holdings, Inc., any or all of the Securities issuable hereunder which
theretofore shall not have been signed by the Company and delivered to the
Trustee or the Authenticating Agent; and, upon the order of such successor
Person instead of the Company and subject to all the terms, conditions and
limitations in this Indenture prescribed, the Trustee or the Authenticating
Agent shall authenticate and deliver any Securities which previously shall have
been signed and delivered by the officers of the Company to the Trustee or the
Authenticating Agent for authentication, and any Securities which such successor
Person thereafter shall cause to be signed and delivered to the Trustee or the
Authenticating Agent for that purpose. All the Securities so issued shall in all
respects have the same legal rank and benefit under this Indenture as the
Securities theretofore or thereafter issued in accordance with the terms of this
Indenture as though all of such Indentures had been issued at the date of the
execution hereof.

                                       51
<PAGE>

SECTION 10.03. Opinion of Counsel to be Given Trustee.

The Trustee, subject to the provisions of Sections 6.01 and 6.02, may receive an
Opinion of Counsel as conclusive evidence that any consolidation, merger, sale,
conveyance, transfer or lease, and any assumption, permitted or required by the
terms of this Article X complies with the provisions of this Article X.

                                   ARTICLE XI

                     SATISFACTION AND DISCHARGE OF INDENTURE

SECTION 11.01. Discharge of Indenture.

When (a) the Company shall deliver to the Trustee for cancellation all
Securities theretofore authenticated (other than any Securities which shall have
been destroyed, lost or stolen and which shall have been replaced as provided in
Section 2.08) and not theretofore canceled, or (b) all the Securities not
theretofore canceled or delivered to the Trustee for cancellation shall have
become due and payable, or are by their terms to become due and payable within
one year or are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption, and the
Company shall deposit with the Trustee, in trust, funds sufficient to pay on the
Maturity Date or upon redemption all of the Securities (other than any
Securities which shall have been destroyed, lost or stolen and which shall have
been replaced as provided in Section 2.08) not theretofore canceled or delivered
to the Trustee for cancellation, including principal and premium, if any, and
interest (including Compounded Interest and Additional Sums, if any) and
Liquidated Damages, if any, due or to become due to the Maturity Date or
redemption date, as the case may be, but excluding, however, the amount of any
moneys for the payment of principal of or premium, if any, or interest
(including Compounded Interest and Additional Sums, if any) or Liquidated
Damages, if any, on the Securities (1) theretofore repaid to the Company in
accordance with the provisions of Section 11.04, or (2) paid to any State or to
the District of Columbia pursuant to its unclaimed property or similar laws, and
if in either case the Company shall also pay or cause to be paid all other sums
payable hereunder by the Company, then this Indenture shall cease to be of
further effect except for the provisions of Sections 2.02, 2.07, 2.08, 3.01,
3.02, 3.04, 6.06, 6.10 and 11.04 hereof, which shall survive until such
Securities shall mature and be paid. Thereafter, Sections 6.06, 6.10 and 11.04
shall survive, and the Trustee, on demand of the Company accompanied by any
Officers' Certificate and an Opinion of Counsel and at the cost and expense of
the Company, shall execute proper instruments acknowledging satisfaction of and
discharging this Indenture, the Company, however, hereby agreeing to reimburse
the Trustee for any costs or expenses thereafter reasonably and properly
incurred by the Trustee in connection with this Indenture or the Securities.

                                       52
<PAGE>

SECTION 11.02. Deposited Moneys and U.S. Government Obligations to be Held in
Trust by Trustee.

Subject to the provisions of Section 11.04, all moneys and U.S. Government
Obligations deposited with the Trustee pursuant to Sections 11.01 or 11.05 shall
be held in trust and applied by it to the payment, either directly or through
any paying agent (including the Company if acting as its own paying agent), to
the holders of the particular Securities for the payment of which such moneys or
U.S. Government Obligations have been deposited with the Trustee, of all sums
due and to become due thereon for principal, premium, if any, and interest.

The Company shall pay and indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the U.S. Government Obligations deposited
pursuant to Section 11.05 or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the holders of outstanding Securities.

SECTION 11.03. Paying Agent to Repay Monies Held.

Upon the satisfaction and discharge of this Indenture all monies then held by
any paying agent of the Securities (other than the Trustee) shall, upon written
demand of the Company, be repaid to it or paid to the Trustee, and thereupon
such paying agent shall be released from all further liability with respect to
such monies.

SECTION 11.04. Return of Unclaimed Moneys.

Any monies deposited with or paid to the Trustee or any paying agent for payment
of the principal of or premium, if any, or interest on Securities and not
applied but remaining unclaimed by the holders of Securities for two years after
the date upon which the principal of or premium, if any, or interest (including
Compounded Interest and Additional Sums, if any) or Liquidated Damages, if any,
on such Securities, as the case may be, shall have become due and payable, shall
be repaid to the Company by the Trustee or such paying agent on written demand;
and the holder of any of the Securities shall thereafter look only to the
Company for any payment which such holder may be entitled to collect and all
liability of the Trustee or such paying agent with respect to such monies shall
thereupon cease.

SECTION 11.05. Defeasance Upon Deposit of Monies or U.S. Government
Obligations.

The Company shall be deemed to have been Discharged (as defined below) from its
obligations with respect to the Securities on the 91st day after the applicable
conditions set forth below have been satisfied:

(1) the Company shall have deposited or caused to be deposited irrevocably with
the Trustee or the Defeasance Agent (as defined below) as trust funds in trust,
specifically pledged as security for, and dedicated solely to, the benefit of
the holders of the Securities (i) money in an amount, or (ii) U.S.

                                       53
<PAGE>

Government Obligations which through the payment of interest and principal in
respect thereof in accordance with their terms will provide, not later than one
day before the due date of any payment, money in an amount, or (iii) a
combination of (i) and (ii), sufficient, in the opinion (with respect to (ii)
and (iii)) of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee and the
Defeasance Agent, if any, to pay and discharge each installment of principal of
and interest and premium, if any, on the outstanding Securities on the dates
such installments of principal, interest or premium are due;

(2) if the Securities are then listed on any national securities exchange, the
Company shall have delivered to the Trustee and the Defeasance Agent, if any, an
Opinion of Counsel to the effect that the exercise of the option under this
Section 11.05 would not cause such Securities to be delisted from such exchange;

(3) no Default or Event of Default with respect to the Securities shall have
occurred and be continuing on the date of such deposit; and

(4) the Company shall have delivered to the Trustee and the Defeasance Agent, if
any, an Opinion of Counsel to the effect that holders of the Securities will not
recognize income, gain or loss for United States federal income tax purposes as
a result of the exercise of the option under this Section 11.05 and will be
subject to United States federal income tax on the same amount and in the same
manner and at the same times as would have been the case if such option had not
been exercised, and such opinion shall be based on a statute so providing or be
accompanied by a private letter ruling to that effect received from the United
States Internal Revenue Service or a revenue ruling pertaining to a comparable
form of transaction to that effect published by the United States Internal
Revenue Service.

"Discharged" means that the Company shall be deemed to have paid and discharged
the entire indebtedness represented by, and obligations under, the Securities
and to have satisfied all the obligations under this Indenture relating to the
Securities (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), except (A) the rights of holders of
Securities to receive, from the trust fund described in clause (1) above,
payment of the principal of and the interest and premium, if any, on the
Securities when such payments are due; (B) the Company's obligations with
respect to the Securities under Sections 2.07, 2.08, 5.02 and 11.04; and (C) the
rights, powers, trusts, duties and immunities of the Trustee hereunder.

"Defeasance Agent" means another financial institution which is eligible to act
as Trustee hereunder and which assumes all of the obligations of the Trustee
necessary to enable the Trustee to act hereunder. In the event such a Defeasance
Agent is appointed pursuant to this

                                       54
<PAGE>

Section, the following conditions shall apply:

(1) The Trustee shall have approval rights over the document appointing such
Defeasance Agent and the document setting forth such Defeasance Agent's rights
and responsibilities;

(2) The Defeasance Agent shall provide verification to the Trustee acknowledging
receipt of sufficient money and/or U. S. Government Obligations to meet the
applicable conditions set forth in this Section 11.05.

                                   ARTICLE XII

         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

SECTION 12.01. Indenture and Securities Solely Corporate Obligations.

No recourse for the payment of the principal of or premium, if any, or interest
on any Security, or for any claim based thereon or otherwise in respect thereof,
and no recourse under or upon any obligation, covenant or agreement of the
Company in this Indenture, or in any Security, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or of any successor Person to the Company, either directly or through
the Company or any successor Person to the Company, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise; it being expressly understood that all such liability is
hereby expressly waived and released as a condition of, and as a consideration
for, the execution of this Indenture and the issue of the Securities.

                                  ARTICLE XIII

                            MISCELLANEOUS PROVISIONS

SECTION 13.01. Successors.

All the covenants, stipulations, promises and agreements in this Indenture
contained by the Company shall bind its successors and assigns whether so
expressed or not.

SECTION 13.02. Official Acts by Successor Corporation.

Any act or proceeding by any provision of this Indenture authorized or required
to be done or performed by any board, committee or officer of the Company shall
and may be done

                                       55
<PAGE>

and performed with like force and effect by the like board, committee or officer
of any corporation that shall at the time be the lawful sole successor of the
Company.

SECTION 13.03. Surrender of Company Powers.

The Company by instrument in writing executed by authority of 2/3 (two-thirds)
of its Board of Directors and delivered to the Trustee may surrender any of the
powers reserved to the Company, and thereupon such power so surrendered shall
terminate both as to the Company, as the case may be, and as to any successor
Person.

SECTION 13.04. Addresses for Notices, etc.

Any notice or demand which by any provision of this Indenture is required or
permitted to be given or served by the Trustee or by the holders of Securities
on the Company may be given or served by being deposited postage prepaid by
first class mail, registered or certified mail, overnight courier service or
conformed telecopy addressed (until another address is filed by the Company with
the Trustee for the purpose) to the Company, 711 Van Ness Avenue, San Francisco,
CA 94102, Attention Tommy S. Wu. Any notice, direction, request or demand by any
Securityholder to or upon the Trustee shall be deemed to have been sufficiently
given or made, for all purposes, if given or made in writing at the office of
the Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890 Attention: Corporate Trust Administration (unless
another address is provided by the Trustee to the Company for such purpose). Any
notice or communication to a Securityholder shall be mailed by first class mail
to his or her address shown on the register kept by the Security Registrar.
Failure to mail a notice or communication to a Securityholder or any defect in
it shall not affect its sufficiency with respect to other Securityholders.

SECTION 13.05. Governing Law.

This Indenture and each Security shall be deemed to be a contract made under the
laws of the State of Delaware, and for all purposes shall be governed by and
construed in accordance with the laws of said State, without regard to conflicts
of laws principles thereof.

SECTION 13.06. Evidence of Compliance with Conditions Precedent.

Upon any application or demand by the Company to the Trustee to take any action
under any of the provisions of this Indenture, the Company shall furnish to the
Trustee an Officers' Certificate stating that in the opinion of the signers all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with and an Opinion of Counsel stating that,
in the opinion of such counsel, all such conditions precedent have been complied
with.

Each certificate or opinion provided for in this Indenture and delivered to the
Trustee with respect to compliance with a condition or covenant provided for in
this Indenture (except certificates delivered pursuant to Section 3.05) shall
include (1) a statement that the

                                       56
<PAGE>

Person making such certificate or opinion has read such covenant or condition;
(2) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based; (3) a statement that, in the opinion of such
Person, he has made such examination or investigation as is necessary to enable
him to express an informed opinion as to whether or not such covenant or
condition has been complied with; and (4) a statement as to whether or not, in
the opinion of such person, such condition or covenant has been complied with.

SECTION 13.07. Business Days.

In any case where the date of payment of principal of or premium, if any, or
interest on the Securities will not be a Business Day, the payment of such
principal of or premium, if any, or interest on the Securities need not be made
on such date but may be made on the next succeeding Business Day, with the same
force and effect as if made on the date of payment and no interest shall accrue
for the period from and after such date, except that if such next succeeding
Business Day falls in the next succeeding calendar year, then such payment shall
be made on the immediately preceding Business Day, in each case with the same
force and effect as if made on such date.

SECTION 13.08. Trust Indenture Act to Control.

If and to the extent that any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by Sections 310 to 317, inclusive, of the
Trust Indenture Act of 1939, such imposed duties shall control.

SECTION 13.09. Table of Contents, Headings, etc.

The table of contents and the titles and headings of the articles and sections
of this Indenture have been inserted for convenience of reference only, are not
to be considered a part hereof, and shall in no way modify or restrict any of
the terms or provisions hereof.

SECTION 13.10. Execution in Counterparts.

This Indenture may be executed in any number of counterparts, each of which
shall be an original, but such counterparts shall together constitute but one
and the same instrument.

SECTION 13.11. Separability.

In case any one or more of the provisions contained in this Indenture or in the
Securities shall for any reason be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provisions of this Indenture or of the Securities, but this Indenture
and the Securities shall be construed as if such invalid or illegal or
unenforceable provision had never been contained herein or therein.

                                       57
<PAGE>

SECTION 13.12. Assignment.

The Company will have the right at all times to assign any of its respective
rights or obligations under this Indenture to a direct or indirect wholly owned
Subsidiary of the Company, provided that, in the event of any such assignment,
the Company will remain primarily liable for all such obligations. Subject to
the foregoing, the Indenture is binding upon and inures to the benefit of the
parties thereto and their respective successors and assigns. This Indenture may
not otherwise be assigned by the parties thereto.

SECTION 13.13. Acknowledgement of Rights.

The Company acknowledges that, with respect to any Securities held by UCBH Trust
Co. or a trustee of such trust, if the Property Trustee of such Trust fails to
enforce its rights under this Indenture as the holder of the Securities held as
the assets of UCBH Trust Co. any holder of Capital Securities may institute
legal proceedings directly against the Company to enforce such Property
Trustee's rights under this Indenture without first instituting any legal
proceedings against such Property Trustee or any other person or entity.
Notwithstanding the foregoing, if an Event of Default has occurred and is
continuing and such event is attributable to the failure of the Company to pay
principal of or premium, if any, or interest on the Securities when due, the
Company acknowledges that a holder of Capital Securities may directly institute
a proceeding for enforcement of payment to such holder of the principal of or
premium, if any, or interest on the Securities having a principal amount equal
to the aggregate liquidation amount of the Capital Securities of such holder on
or after the respective due date specified in the Securities.

                                   ARTICLE XIV

                    REDEMPTION OF SECURITIES -- MANDATORY AND

                              OPTIONAL SINKING FUND

SECTION 14.01. Special Event Redemption.

If, prior to the Initial Optional Redemption Date, a Special Event has occurred
and is continuing then, notwithstanding Section 14.02(a) but subject to Section
14.02(c), the Company shall have the right, at any time within 90 days following
the occurrence of such Special Event and prior to the Initial Optional
Redemption Date, upon (i) not less than 45 days written notice to the Trustee
and (ii) not less than 30 days nor more than 60 days written notice to the
Securityholders, to redeem the Securities, in whole (but not in part), at the
Special Event Redemption Price. Following a Special Event, the Company shall
take such action as is necessary to promptly determine the Special Event
Redemption Price, including without limitation the appointment by the Company of
a Quotation Agent. The Special Event Redemption Price shall be paid prior to
12:00 noon, New York time, on the date of such redemption or such earlier time
as the Company determines, provided that the Company shall

                                       58
<PAGE>

deposit with the Trustee an amount sufficient to pay the Special Event
Redemption Price by 10:00 a.m., New York time, on the date such Special Event
Redemption Price is to be paid. The Company shall provide the Trustee with
written notice of the Special Event Redemption Price promptly after the
calculation thereof, which notice shall include any calculation made by the
Quotation Agent in connection with the determination of the Special Event
Redemption Price.

SECTION 14.02. Optional Redemption by Company.

(a) Subject to the provisions of this Article XIV, the Company shall have the
right to redeem the Securities, in whole or in part, from time to time, on or
after the Initial Optional Redemption Date, at 100% of the principal amount
thereof plus, in each case, accrued and unpaid interest thereon (including
Compounded Interest and Additional Sums, if any) and Liquidated Damages, if any,
to the date of redemption (the "Optional Redemption Price").

If the Securities are only partially redeemed pursuant to this Section 14.02,
the Securities to be redeemed shall be selected on a pro rata basis, by lot or
other method utilized by the Trustee, not more than 60 days prior to the date
fixed for redemption from the outstanding Securities not previously called for
redemption, provided, however, that with respect to Securityholders that would
be required to hold Securities with an aggregate principal amount of less than
$100,000 but more than an aggregate principal amount of zero as a result of such
pro rata redemption, the Company shall redeem Securities of each such
Securityholder so that after such redemption such Securityholder shall hold
Securities either with an aggregate principal amount of at least $100,000 or
such Securityholder no longer holds any Securities and shall use such method
(including, without limitation, by lot) as the Company shall deem fair and
appropriate, provided, further, that any such method of selection may be made on
the basis of the aggregate principal amount of Securities held by each
Securityholder and may be made by making such adjustments as the Company deems
fair and appropriate in order that only Securities in denominations of $1,000 or
integral multiples thereof shall be redeemed. The Optional Redemption Price
shall be paid prior to 12:00 noon, New York time, on the date of such redemption
or at such earlier time as the Company determines, provided that the Company
shall deposit with the Trustee an amount sufficient to pay the Optional
Redemption Price by 10:00 a.m., New York time, on the date such Optional
Redemption Price is to be paid.

(b) Notwithstanding the first sentence of Section 14.02, upon the entry of an
order for dissolution of UCBH Trust Co. by a court of competent jurisdiction,
the Securities thereafter will be subject to optional redemption, in whole only,
but not in part, on or after May 1, 2005, at the

                                       59
<PAGE>

Optional Redemption Price and otherwise in accordance with this Article XIV.

(c) Any redemption of Securities pursuant to Section 14.01 or Section 14.02
shall be subject to the receipt by the Company of any required regulatory
approval.

SECTION 14.03. No Sinking Fund.

The Securities are not entitled to the benefit of any sinking fund.

SECTION 14.04. Notice of Redemption; Selection of Securities.

In case the Company shall desire to exercise the right to redeem all, or, as the
case may be, any part of the Securities in accordance with their terms, it shall
fix a date for redemption and shall mail a notice of such redemption at least 30
and not more than 60 days prior to the date fixed for redemption to the holders
of Securities so to be redeemed as a whole or in part at their last addresses as
the same appear on the Security Register. Such mailing shall be by first class
mail. The notice if mailed in the manner herein provided shall be conclusively
presumed to have been duly given, whether or not the holder receives such
notice. In any case, failure to give such notice by mail or any defect in the
notice to the holder of any Security designated for redemption as a whole or in
part shall not affect the validity of the proceedings for the redemption of any
other Security.

Each such notice of redemption shall specify the CUSIP number of the Securities
to be redeemed, the date fixed for redemption, the redemption price at which the
Securities are to be redeemed (or the method by which such redemption price is
to be calculated), the place or places of payment that payment will be made upon
presentation and surrender of the Securities, that interest accrued to the date
fixed for redemption will be paid as specified in said notice, and that on and
after said date interest thereon or on the portions thereof to be redeemed will
cease to accrue. If less than all the Securities are to be redeemed the notice
of redemption shall specify the numbers of the Securities to be redeemed. In
case any Security is to be redeemed in part only, the notice of redemption shall
state the portion of the principal amount thereof to be redeemed and shall state
that on and after the date fixed for redemption, upon surrender of such
Security, a new Security or Securities in principal amount equal to the
unredeemed portion thereof will be issued.

By 10:00 a.m. New York time on the redemption date specified in the notice of
redemption given as provided in this Section, the Company will deposit with the
Trustee or with one or more paying agents an amount of money sufficient to
redeem on the redemption date all the Securities so called for redemption at the
appropriate Redemption Price, together with accrued interest to the date fixed
for redemption.

The Company will give the Trustee notice not less than 45 days prior to the
redemption date as to the aggregate principal amount of Securities to be
redeemed and the

                                       60
<PAGE>

Trustee shall select, in such manner as in its sole discretion it shall deem
appropriate and fair, the Securities or portions thereof (in integral multiples
of $1,000, except as otherwise set forth in the applicable form of Security) to
be redeemed.

SECTION 14.05. Payment of Securities Called for Redemption.

If notice of redemption has been given as provided in Section 14.04, the
Securities or portions of Securities with respect to which such notice has been
given shall become due and payable on the date and at the place or places stated
in such notice at the applicable Redemption Price, together with interest
accrued to the date fixed for redemption (subject to the rights of holders of
Securities on the close of business on a regular record date in respect of an
Interest Payment Date occurring on or prior to the redemption date), and on and
after said date (unless the Company shall default in the payment of such
Securities at the Redemption Price, together with interest accrued to said date)
interest (including Compounded Interest and Additional Sums, if any) and
Liquidated Damages, if any, on the Securities or portions of Securities so
called for redemption shall cease to accrue. On presentation and surrender of
such Securities at a place of payment specified in said notice, the said
Securities or the specified portions thereof shall be paid and redeemed by the
Company at the applicable Redemption Price, together with interest (including
Compounded Interest and Additional Sums, if any) and Liquidated Damages, if any,
accrued thereon to the date fixed for redemption (subject to the rights of
holders of Securities on the close of business on a regular record date in
respect of an Interest Payment Date occurring on or prior to the redemption
date).

Upon presentation of any Security redeemed in part only, the Company shall
execute and the Trustee shall authenticate and make available for delivery to
the holder thereof, at the expense of the Company, a new Security or Securities
of authorized denominations, in principal amount equal to the unredeemed portion
of the Security so presented.

                                   ARTICLE XV

                           SUBORDINATION OF SECURITIES

SECTION 15.01. Agreement to Subordinate.

The Company covenants and agrees, and each holder of Securities issued hereunder
likewise covenants and agrees, that the Securities shall be issued subject to
the provisions of this Article XV; and each holder of a Security, whether upon
original issue or upon transfer or assignment thereof, accepts and agrees to be
bound by such provisions.

The payment by the Company of the principal of, premium, if any, and interest
(including Compounded Interest and Additional Sums, if any) and Liquidated
Damages, if any, on all Securities issued hereunder shall, to the extent and in
the manner hereinafter set forth, be subordinated and junior in right of payment
to all Senior Indebtedness, whether outstanding at the date of this Indenture or
thereafter incurred.

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<PAGE>

No provision of this Article XV shall prevent the occurrence of any Default or
Event of Default hereunder.

SECTION 15.02. Default on Senior Indebtedness.

In the event and during the continuation of any default by the Company in the
payment of principal, premium, interest or any other payment due on any Senior
Indebtedness, or in the event that the maturity of any Senior Indebtedness has
been accelerated because of a default, then, in either case, no payment shall be
made by the Company with respect to the principal (including redemption
payments) of or premium, if any, or interest on the Securities.

In the event of the acceleration of the maturity of the Securities, then no
payment shall be made by the Company with respect to the principal (including
redemption payments) of or premium, if any, or interest on the Securities until
the holders of all Senior Indebtedness outstanding at the time of such
acceleration shall receive payment in full of such Senior Indebtedness
(including any amounts due upon acceleration).

In the event that, notwithstanding the foregoing, any payment shall be received
by the Trustee when such payment is prohibited by the preceding paragraphs of
this Section 15.02, such payment shall be held in trust for the benefit of, and
shall be paid over or delivered to, the holders of Senior Indebtedness or their
respective representatives, or to the trustee or trustees under any indenture
pursuant to which any of such Senior Indebtedness may have been issued, as their
respective interests may appear, but only to the extent that the holders of the
Senior Indebtedness (or their representative or representatives or a trustee)
notify the Trustee in writing, within 90 days of such payment of the amounts
then due and owing on such Senior Indebtedness and only the amounts specified in
such notice to the Trustee shall be paid to the holders of such Senior
Indebtedness.

SECTION 15.03. Liquidation; Dissolution; Bankruptcy.

Upon any payment by the Company or distribution of assets of the Company of any
kind or character, whether in cash, property or securities, to creditors upon
any dissolution or winding-up or liquidation or reorganization of the Company,
whether voluntary or involuntary or in bankruptcy, insolvency, receivership or
other proceedings, all Senior Indebtedness of the Company shall first be paid in
full, or payment thereof provided for in money in accordance with its terms,
before any payment is made by the Company on account of the principal (and
premium, if any) or interest (including Compounded Interest and Additional Sums,
if any) and Liquidated Damages, if any, on the Securities; and upon any such
dissolution or winding-up or liquidation or reorganization, any payment by the
Company, or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to which the Securityholders or the
Trustee would be entitled to receive from the Company, except for the provisions
of this Article XV, shall be paid by the Company or by any receiver, trustee in
bankruptcy, liquidating trustee, agent or other Person making such payment or
distribution, or by the Securityholders or by the Trustee under the Indenture if
received by them or it, directly to the holders of Senior Indebtedness of the
Company (pro rata to such holders on the basis of the

                                       62
<PAGE>

respective amounts of Senior Indebtedness held by such holders, as calculated by
the Company) or their representative or representatives, or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing such
Senior Indebtedness may have been issued, as their respective interests may
appear, to the extent necessary to pay all such Senior Indebtedness in full, in
money or money's worth, after giving effect to any concurrent payment or
distribution to or for the holders of such Senior Indebtedness, before any
payment or distribution is made to the Securityholders or to the Trustee.

In the event that, notwithstanding the foregoing, any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities, prohibited by the foregoing, shall be received by the Trustee before
all Senior Indebtedness is paid in full, or provision is made for such payment
in money in accordance with its terms, such payment or distribution shall be
held in trust for the benefit of and shall be paid over or delivered to the
holders of such Senior Indebtedness or their representative or representatives,
or to the trustee or trustees under any indenture pursuant to which any
instruments evidencing such Senior Indebtedness may have been issued, as their
respective interests may appear, as calculated by the Company, for application
to the payment of all Senior Indebtedness remaining unpaid to the extent
necessary to pay all such Senior Indebtedness in full in money in accordance
with its terms, after giving effect to any concurrent payment or distribution to
or for the benefit of the holders of such Senior Indebtedness.

For purposes of this Article XV, the words "cash, property or securities" shall
not be deemed to include shares of stock of the Company as reorganized or
readjusted, or securities of the Company or any other corporation provided for
by a plan of reorganization or readjustment, the payment of which is
subordinated at least to the extent provided in this Article XV with respect to
the Securities to the payment of Senior Indebtedness that may at the time be
outstanding, provided that (i) such Senior Indebtedness is assumed by the new
corporation, if any, resulting from any such reorganization or readjustment, and
(ii) the rights of the holders of such Senior Indebtedness are not, without the
consent of such holders, altered by such reorganization or readjustment. The
consolidation of the Company with, or the merger of the Company into, another
Person or the liquidation or dissolution of the Company following the sale,
conveyance, transfer or lease of its property as an entirety, or substantially
as an entirety, to another Person upon the terms and conditions provided for in
Article X of this Indenture shall not be deemed a dissolution, winding-up,
liquidation or reorganization for the purposes of this Section 15.03 if such
other Person shall, as a part of such consolidation, merger, sale, conveyance,
transfer or lease, comply with the conditions stated in Article X of this
Indenture. Nothing in Section 15.02 or in this Section 15.03 shall apply to
claims of, or payments to, the Trustee under or pursuant to Section 6.06 of this
Indenture.

SECTION 15.04. Subrogation.

Subject to the payment in full of all Senior Indebtedness, the rights of the
Securityholders shall be subrogated to the rights of the holders of such Senior
Indebtedness to receive payments or distributions of cash, property or
securities of the Company, as the case may be, applicable to such Senior
Indebtedness until the principal of (and premium, if any) and

                                       63
<PAGE>

interest on the Securities shall be paid in full; and, for the purposes of such
subrogation, no payments or distributions to the holders of such Senior
Indebtedness of any cash, property or securities to which the Securityholders or
the Trustee would be entitled except for the provisions of this Article XV, and
no payment over pursuant to the provisions of this Article XV to or for the
benefit of the holders of such Senior Indebtedness by Securityholders or the
Trustee, shall, as between the Company, its creditors other than holders of
Senior Indebtedness of the Company, and the holders of the Securities, be deemed
to be a payment by the Company to or on account of such Senior Indebtedness. It
is understood that the provisions of this Article XV are and are intended solely
for the purposes of defining the relative rights of the holders of the
Securities, on the one hand, and the holders of such Senior Indebtedness on the
other hand.

Nothing contained in this Article XV or elsewhere in this Indenture or in the
Securities is intended to or shall impair, as between the Company, its creditors
other than the holders of Senior Indebtedness of the Company, and the holders of
the Securities, the obligation of the Company, which is absolute and
unconditional, to pay to the holders of the Securities the principal of (and
premium, if any) and interest (including Compounded Interest and Additional
Sums, if any) and Liquidated Damages, if any, on the Securities as and when the
same shall become due and payable in accordance with their terms, or is intended
to or shall affect the relative rights of the holders of the Securities and
creditors of the Company, as the case may be, other than the holders of Senior
Indebtedness of the Company, as the case may be, nor shall anything herein or
therein prevent the Trustee or the holder of any Security from exercising all
remedies otherwise permitted by applicable law upon default under the Indenture,
subject to the rights, if any, under this Article XV of the holders of such
Senior Indebtedness in respect of cash, property or securities of the Company,
as the case may be, received upon the exercise of any such remedy.

Upon any payment or distribution of assets of the Company referred to in this
Article XV, the Trustee, subject to the provisions of Article VI of this
Indenture, and the Securityholders shall be entitled to conclusively rely upon
any order or decree made by any court of competent jurisdiction in which such
dissolution, winding-up, liquidation or reorganization proceedings are pending,
or a certificate of the receiver, trustee in bankruptcy, liquidation trustee,
agent or other Person making such payment or distribution, delivered to the
Trustee or to the Securityholders, for the purposes of ascertaining the Persons
entitled to participate in such distribution, the holders of Senior Indebtedness
and other indebtedness of the Company, as the case may be, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article XV.

SECTION 15.05. Trustee to Effectuate Subordination.

Each Securityholder by such Securityholder's acceptance thereof authorizes and
directs the Trustee on such Securityholder's behalf to take such action as may
be necessary or appropriate to effectuate the subordination provided in this
Article XV and appoints the Trustee such Securityholder's attorney-in-fact for
any and all such purposes.

                                       64
<PAGE>

SECTION 15.06. Notice by the Company.

The Company shall give prompt written notice to a Responsible Officer of the
Trustee of any fact known to the Company that would prohibit the making of any
payment of monies to or by the Trustee in respect of the Securities pursuant to
the provisions of this Article XV. Notwithstanding the provisions of this
Article XV or any other provision of this Indenture, the Trustee shall not be
charged with knowledge of the existence of any facts that would prohibit the
making of any payment of monies to or by the Trustee in respect of the
Securities pursuant to the provisions of this Article XV, unless and until a
Responsible Officer of the Trustee shall have received written notice thereof
from the Company or a holder or holders of Senior Indebtedness or from any
trustee therefor; and before the receipt of any such written notice, the
Trustee, subject to the provisions of Article VI of this Indenture, shall be
entitled in all respects to assume that no such facts exist; provided, however,
that if the Trustee shall not have received the notice provided for in this
Section 15.06 at least two Business Days prior to the date upon which by the
terms hereof any money may become payable for any purpose (including, without
limitation, the payment of the principal of (or premium, if any) or interest
(including Compounded Interest and Additional Sums, if any) and Liquidated
Damages, if any, on any Security), then, anything herein contained to the
contrary notwithstanding, the Trustee shall have full power and authority to
receive such money and to apply the same to the purposes for which they were
received, and shall not be affected by any notice to the contrary that may be
received by it within two Business Days prior to such date.

The Trustee, subject to the provisions of Article VI of this Indenture, shall be
entitled to conclusively rely on the delivery to it of a written notice by a
Person representing himself to be a holder of Senior Indebtedness of the Company
(or a trustee on behalf of such holder), as the case may be, to establish that
such notice has been given by a holder of such Senior Indebtedness or a trustee
on behalf of any such holder or holders. In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any Person as a holder of such Senior Indebtedness to participate in
any payment or distribution pursuant to this Article XV, the Trustee may request
such Person to furnish evidence to the reasonable satisfaction of the Trustee as
to the amount of such Senior Indebtedness held by such Person, the extent to
which such Person is entitled to participate in such payment or distribution and
any other facts pertinent to the rights of such Person under this Article XV,
and, if such evidence is not furnished, the Trustee may defer any payment to
such Person pending judicial determination as to the right of such Person to
receive such payment.

Upon any payment or distribution of assets of the Company referred to in this
Article XV, the Trustee and the Securityholders shall be entitled to rely upon
any order or decree entered by any court of competent jurisdiction in which such
insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution,
winding up or similar case or proceeding is pending, or a certificate of the
trustee in bankruptcy, liquidating trustee, custodian, receiver, assignee for
the benefit of creditors, agent or other person making such payment or
distribution, delivered to the Trustee or to the Securityholders, for the
purpose of ascertaining the persons entitled to participate in such payment or
distribution, the holders of Senior Indebtedness and other indebtedness of the
Company, the amount thereof or payable thereon, the amount or

                                       65
<PAGE>

amounts paid or distributed thereon and all other facts pertinent thereto or to
this Article XV.

SECTION 15.07. Rights of the Trustee; Holders of Senior Indebtedness.

The Trustee in its individual capacity shall be entitled to all the rights set
forth in this Article XV in respect of any Senior Indebtedness at any time held
by it, to the same extent as any other holder of Senior Indebtedness, and
nothing in this Indenture shall deprive the Trustee of any of its rights as such
holder.

With respect to the holders of Senior Indebtedness of the Company, the Trustee
undertakes to perform or to observe only such of its covenants and obligations
as are specifically set forth in this Article XV, and no implied covenants or
obligations with respect to the holders of such Senior Indebtedness shall be
read into this Indenture against the Trustee. The Trustee shall not be deemed to
owe any fiduciary duty to the holders of such Senior Indebtedness and, subject
to the provisions of Article VI of this Indenture, the Trustee shall not be
liable to any holder of such Senior Indebtedness if it shall pay over or deliver
to Securityholders, the Company or any other Person money or assets to which any
holder of such Senior Indebtedness shall be entitled by virtue of this Article
XV or otherwise.

Nothing in this Article XV shall apply to claims of, or payments to, the Trustee
under or pursuant to Section 6.06.

SECTION 15.08. Subordination May Not Be Impaired.

No right of any present or future holder of any Senior Indebtedness of the
Company to enforce subordination as herein provided shall at any time in any way
be prejudiced or impaired by any act or failure to act on the part of the
Company, as the case may be, or by any act or failure to act, in good faith, by
any such holder, or by any noncompliance by the Company, as the case may be,
with the terms, provisions and covenants of this Indenture, regardless of any
knowledge thereof that any such holder may have or otherwise be charged with.

Without in any way limiting the generality of the foregoing paragraph, the
holders of Senior Indebtedness of the Company may, at any time and from time to
time, without the consent of or notice to the Trustee or the Securityholders,
without incurring responsibility to the Securityholders and without impairing or
releasing the subordination provided in this Article XV or the obligations
hereunder of the holders of the Securities to the holders of such Senior
Indebtedness, do any one or more of the following: (i) change the manner, place
or terms of payment or extend the time of payment of, or renew or alter, such
Senior Indebtedness, or otherwise amend or supplement in any manner such Senior
Indebtedness or any instrument evidencing the same or any agreement under which
such Senior Indebtedness is outstanding; (ii) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing such
Senior Indebtedness; (iii) release any Person liable in any manner for the
collection of such Senior Indebtedness; and (iv) exercise or refrain from
exercising any rights against the Company, as the case may be, and any other
Person.

                                       66
<PAGE>

                                   ARTICLE XVI

                      EXTENSION OF INTEREST PAYMENT PERIOD

SECTION 16.01. Extension of Interest Payment Period.

So long as no Event of Default has occurred and is continuing, the Company shall
have the right, at any time and from time to time during the term of the
Securities, to defer payments of interest by extending the interest payment
period of such Securities for a period not exceeding 10 consecutive semi-annual
periods, including the first such semi-annual period during such extension
period (the "Extended Interest Payment Period"), during which Extended Interest
Payment Period no interest shall be due and payable; provided that no Extended
Interest Payment Period shall end on a date other than an Interest Payment Date
or extend beyond the Maturity Date. To the extent permitted by applicable law,
interest, the payment of which has been deferred because of the extension of the
interest payment period pursuant to this Section 16.01, will bear interest
thereon at the Coupon Rate compounded semi-annually for each semi-annual period
of the Extended Interest Payment Period ("Compounded Interest"). At the end of
the Extended Interest Payment Period, the Company shall pay all interest accrued
and unpaid on the Securities, including any Additional Sums and Compounded
Interest (together, "Deferred Interest") that shall be payable to the holders of
the Securities in whose names the Securities are registered in the Security
Register on the first record date preceding the end of the Extended Interest
Payment Period. Before the termination of any Extended Interest Payment Period,
the Company may further defer payments of interest by further extending such
period, provided that such period, together with all such previous and further
extensions within such Extended Interest Payment Period, shall not exceed 10
consecutive semi-annual periods, including the first such semi-annual period
during such Extended Interest Payment Period, end on a date other than an
Interest Payment Date or extend beyond the Maturity Date of the Securities. Upon
the termination of any Extended Interest Payment Period and the payment of all
Deferred Interest then due, the Company may commence a new Extended Interest
Payment Period, subject to the foregoing requirements. No interest shall be due
and payable during an Extended Interest Payment Period, except at the end
thereof, but the Company may prepay at any time all or any portion of the
interest accrued during an Extended Interest Payment Period.

SECTION 16.02. Notice of Extension.

(a) If the Property Trustee is the only registered holder of the Securities at
the time the Company selects an Extended Interest Payment Period, the Company
shall give written notice to the Administrative Trustees, the Property Trustee
and the Trustee of its selection of such Extended Interest Payment Period five
Business Days before the earlier of (i) the next succeeding date on which
Distributions on the Trust Securities issued by the Trust are payable, or (ii)
the date the Trust is required to give notice of the record date, or the date
such Distributions are payable, to any national securities exchange or to
holders of the Capital Securities issued by the Trust, but in any event at least
five Business Days before such record date.

                                       67
<PAGE>

(b) If the Property Trustee is not the only holder of the Securities at the time
the Company selects an Extended Interest Payment Period, the Company shall give
the holders of the Securities and the Trustee written notice of its selection of
such Extended Interest Payment Period at least 10 Business Days before the
earlier of (i) the next succeeding Interest Payment Date, or (ii) the date the
Company is required to give notice of the record or payment date of such
interest payment to any national securities exchange.

(c) The semi-annual period in which any notice is given pursuant to paragraphs
(a) or (b) of this Section 16.02 shall be counted as one of the 10 semi-annual
periods permitted in the maximum Extended Interest Payment Period permitted
under Section 16.01.

Wilmington Trust Company hereby accepts the trusts in this Indenture declared
and provided, upon the terms and conditions hereinabove set forth.

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed by their respective officers thereunto duly authorized, as of the day
and year first above written.

                                               UCBH HOLDINGS, INC.

                                    By: /s/ Tommy S. Wu
                                        ----------------------------------------
                                    Name: Tommy S. Wu
                                    Title: President and Chief Executive Officer

                                         WILMINGTON TRUST COMPANY,
                                                 AS TRUSTEE

                                         By: /s/ James P. Lawler
                                             -----------------------------------
                                         Name: James P. Lawler
                                         Title: Vice President

                                       68
<PAGE>

                                    EXHIBIT A

                           (FORM OF FACE OF SECURITY)

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT") OR ANY STATE SECURITIES LAWS OR ANY OTHER
APPLICABLE SECURITIES LAW. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER THIS SECURITY, PRIOR TO THE DATE (THE "RESALE RESTRICTION
TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUANCE
DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY "AFFILIATE" OF THE
COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY)
ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) SO LONG AS THIS SECURITY IS
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE
144A"), TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER"
(AS DEFINED IN RULE 144A) THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO
NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT, (E) TO AN "ACCREDITED INVESTOR" WITHIN
THE MEANING OF SUBPARAGRAPH (A) OF RULE 501 UNDER THE SECURITIES ACT THAT IS
ACQUIRING THIS SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN
INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW
TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF
THE SECURITIES ACT OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT, SUBJECT TO THE RIGHT OF THE
COMPANY PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER

(i) PURSUANT TO CLAUSE (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY,
AND (ii) PURSUANT TO CLAUSE (D), TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN
THE FORM APPEARING ON THE REVERSE OF THIS SECURITY IS COMPLETED AND DELIVERED BY
THE TRANSFEREE TO THE COMPANY. SUCH HOLDER FURTHER AGREES THAT IT WILL DELIVER
TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
THE EFFECT OF THIS LEGEND.

                                       A-1
<PAGE>

THE SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING AN
AGGREGATE PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 (100 SECURITIES). ANY SUCH
TRANSFER OF SECURITIES IN A BLOCK HAVING AN AGGREGATE PRINCIPAL AMOUNT OF LESS
THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY
SUCH TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH SECURITIES FOR ANY
PURPOSE, INCLUDING BUT NOT LIMITED TO THE RECEIPT OF PRINCIPAL, PREMIUM (IF ANY)
OR INTEREST OF SUCH SECURITIES, AND SUCH TRANSFEREE SHALL BE DEEMED TO HAVE NO
INTEREST WHATSOEVER IN SUCH SECURITIES.

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND
WARRANTS THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA") OR (ii)
THE ACQUISITION AND HOLDING OF THIS SECURITY BY IT IS NOT PROHIBITED BY EITHER
SECTION 406 OF ERISA OR SECTION 4975 OF THE U.S. INTERNAL REVENUE CODE OF 1986,
AS AMENDED, OR EXEMPT FROM ANY SUCH PROHIBITION.

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED
IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND 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.

NO. CUSIP NO. __________

                               UCBH HOLDINGS, INC.

                 9 3/8% JUNIOR SUBORDINATED DEFERRABLE INTEREST
                            DEBENTURE DUE MAY 1, 2028

UCBH Holdings, Inc., a Delaware corporation (the "Company," which term includes
any successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to Wilmington Trust Company, as Property
Trustee for UCBH Trust Co. or registered assigns, the principal sum of
$30,928,000 on May 1, 2028 (the "Maturity Date"), unless previously redeemed,
and to pay interest on the outstanding principal amount hereof from April 17,
1998, or from the most recent interest payment date (each such date, an
"Interest Payment Date") to which interest has been paid or duly provided for,
semi-annually (subject to deferral as set forth herein) in arrears on May 1 and
November 1 of each year, commencing on November 1, 1998, at the rate of 9 3/8%
per annum until the principal hereof shall have become

                                      A-2
<PAGE>

due and payable, and on any overdue principal and premium, if any, and (without
duplication and to the extent that payment of such interest is enforceable under
applicable law) on any overdue installment of interest at the same rate per
annum compounded semi-annually. The amount of interest payable on any Interest
Payment Date shall be computed on the basis of a 360-day year of twelve 30-day
months and, for any period less than a full calendar month, the number of days
elapsed in such month based on a 30-day month. In the event that any date on
which the principal of (or premium, if any) or interest on this Security is
payable is not a Business Day, then the payment payable on such date will be
made on the next succeeding day that is a Business Day (and without any interest
or other payment in respect of any such delay), except that if such next
succeeding Business Day falls in the next calendar year, then such payment shall
be made on the immediately preceding Business Day, in each case with the same
force and effect as if made on such date. Pursuant to the Indenture, in certain
circumstances the Company will be required to pay Additional Sums and Compounded
Interest (each as defined in the Indenture) with respect to this Security.
Pursuant to the Registration Rights Agreement, in certain limited circumstances
the Company will be required to pay Liquidated Damages (as defined in the
Registration Rights Agreement) with respect to this Security.

The interest installment so payable, and punctually paid or duly provided for,
on any Interest Payment Date will, as provided in the Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities, as
defined in said Indenture) is registered at the close of business on the regular
record date for such interest installment, which shall be at the close of
business on the fifteenth day of the month preceding the month in which the
relevant interest payment date falls. Any such interest installment not
punctually paid or duly provided for shall forthwith cease to be payable to the
holders on such regular record date and may be paid to the Person in whose name
this Security (or one or more Predecessor Securities) is registered at the close
of business on a special record date to be fixed by the Trustee for the payment
of such defaulted interest, notice whereof shall be given to the holders of
Securities not less than 10 days prior to such special record date, or may be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture.

The principal of (and premium, if any) and interest (including Compounded
Interest and Additional Sums, if any) and Liquidated Damages, if any, on this
Security shall be payable at the office or agency of the Trustee maintained for
that purpose in any coin or currency of the United States of America that at the
time of payment is legal tender for payment of public and private debts;
provided, however, that, payment of interest may be made at the option of the
Company by (i) check mailed to the holder at such address as shall appear in the
Security Register or (ii) by transfer to an account maintained by the Person
entitled thereto, provided that proper written transfer instructions have been
received by the relevant record date. Notwithstanding the foregoing, so long as
the Holder of this Security is the Property Trustee, the payment of the
principal of (and premium, if any) and interest (including Compounded Interest
and Additional Sums, if any) and Liquidated Damages, if any, on this Security
will be made at such place and to such account as may be designated by the
Property Trustee.

                                      A-3
<PAGE>

The indebtedness evidenced by this Security is, to the extent provided in the
Indenture, subordinate and junior in right of payment to the prior payment in
full of all Senior Indebtedness, and this Security is issued subject to the
provisions of the Indenture with respect thereto. Each holder of this Security,
by accepting the same, (a) agrees to and shall be bound by such provisions, (b)
authorizes and directs the Trustee on his or her behalf to take such action as
may be necessary or appropriate to acknowledge or effectuate the subordination
so provided and (c) appoints the Trustee his or her attorney-in-fact for any and
all such purposes. Each holder hereof, by his or her acceptance hereof, hereby
waives all notice of the acceptance of the subordination provisions contained
herein and in the Indenture by each holder of Senior Indebtedness, whether now
outstanding or hereafter incurred, and waives reliance by each such holder upon
said provisions.

This Security shall not be entitled to any benefit under the Indenture
hereinafter referred to, be valid or become obligatory for any purpose until the
Certificate of Authentication hereon shall have been signed by or on behalf of
the Trustee.

The provisions of this Security are continued on the reverse side hereof and
such provisions shall for all purposes have the same effect as though fully set
forth at this place.

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed
and sealed.

Dated: ________________, 1998

                                            UCBH HOLDINGS, INC.

                                    By: ____________________________
                                                Name:
                                                Title:

ATTEST:

By: _______________________
Name:
Title:

                                      A-4
<PAGE>

                     (FORM OF CERTIFICATE OF AUTHENTICATION)

                          CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to in the within-mentioned Indenture.

Wilmington Trust Company Dated: April 17, 1998 as Trustee

By____________________
Authorized Signatory

                                      A-5
<PAGE>

                          (FORM OF REVERSE OF SECURITY)

This Security is one of the Securities of the Company (herein sometimes referred
to as the "Securities"), specified in the Indenture, all issued or to be issued
under and pursuant to an Indenture, dated as of April 17, 1998 (the
"Indenture"), duly executed and delivered between the Company and Wilmington
Trust Company, as Trustee (the "Trustee"), to which Indenture reference is
hereby made for a description of the rights, limitations of rights, obligations,
duties and immunities thereunder of the Trustee, the Company and the holders of
the Securities.

Upon the occurrence and continuation of a Special Event prior to May 1, 2005
(the "Initial Optional Redemption Date"), the Company shall have the right, at
any time within 90 days following the occurrence of such Special Event, to
redeem this Security in whole (but not in part) at the Special Event Redemption
Price. "Special Event Redemption Price" shall mean, with respect to any
redemption of the Securities following a Special Event, an amount in cash equal
to the Make Whole Amount. The "Make Whole Amount" shall mean an amount equal to
the greater of (i) 100% of the principal amount to be redeemed or (ii) the sum,
as determined by a Quotation Agent, of the present values of remaining scheduled
payments of principal and interest, discounted to the prepayment date on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Adjusted Treasury Rate, plus, in the case of each of clauses (i) and
(ii), any accrued and unpaid interest thereon (including Compounded Interest and
Additional Sums, if any) and Liquidated Damages, if any, to the date of such
redemption.

In addition, the Company shall have the right to redeem this Security, in whole
or in part, at any time on or after the Initial Optional Redemption Date (an
"Optional Redemption"), at 100% or the principal amount thereof plus, in each
case, accrued and unpaid interest thereon (including Additional Sums and
Compounded Interest, if any) and Liquidated Damages, if any, to the date of
redemption (the "Optional Redemption Price").

The Optional Redemption Price or the Special Event Redemption Price, as the case
requires, shall be paid prior to 12:00 noon, New York time, on the date of such
redemption or at such earlier time as the Company determines, provided, that the
Company shall deposit with the Trustee an amount sufficient to pay the
applicable Redemption Price by 10:00 a.m., New York City, on the date such
Redemption Price is to be paid. Any redemption pursuant to this paragraph will
be made upon not less than 30 days nor more than 60 days notice. If the
Securities are only partially redeemed by the Company pursuant to an Optional
Redemption, the particular Securities to be redeemed shall be selected on a pro
rata basis, by lot or such other method that the Trustee shall utilize, not more
than 60 days prior to the date fixed for redemption from the outstanding
Securities not previously called for redemption, provided, however, that with
respect to Securityholders that would be required to hold Securities with an
aggregate principal amount of less than $100,000 but more than an aggregate
principal amount of zero as a result of such pro rata redemption, the Company
shall redeem Securities of each such Securityholder so that after such
redemption such Securityholder shall hold Securities either with an aggregate
principal amount of at least $100,000 or such Securityholder no longer holds any
Securities and shall use such method (including, without limitation, by lot) as
the Company shall

                                      A-6
<PAGE>

deem fair and appropriate, provided, further, that any such method of selection
may be made on the basis of the aggregate principal amount of Securities held by
each Securityholder thereof and may be made by making such adjustments as the
Company deems fair and appropriate in order that only Securities in
denominations of $1,000 or integral multiples thereof shall be redeemed.

In the event of redemption of this Security in part only, a new Security or
Securities for the unredeemed portion hereof will be issued in the name of the
holder hereof upon the cancellation hereof.

Notwithstanding the foregoing, any redemption of Securities by the Company shall
be subject to the receipt of any required regulatory approval.

In case an Event of Default, as defined in the Indenture, shall have occurred
and be continuing, the principal of all of the Securities may be declared, and
upon such declaration shall become, due and payable, in the manner, with the
effect and subject to the conditions provided in the Indenture.

The Indenture contains provisions permitting the Company and the Trustee, with
the consent of the holders of a majority in aggregate principal amount of the
Securities at the time outstanding, as defined in the Indenture, to execute
supplemental indentures for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of the Indenture or of
modifying in any manner the rights of the holders of the Securities; provided,
however, that no such supplemental indenture shall, without the consent of each
holder of Securities then outstanding and affected thereby, (i) change the
Maturity Date of any Securities, or reduce the principal amount thereof, or
reduce any amount payable on redemption thereof, or reduce the rate or extend
the time of payment of interest thereon (subject to Article XVI of the
Indenture), or make the principal of, or interest or premium on, the Securities
payable in any coin or currency other than U.S. dollars, or impair or affect the
right of any holder of Securities to institute suit for the payment thereof, or
(ii) reduce the aforesaid percentage of Securities, the holders of which are
required to consent to any such supplemental indenture. The Indenture also
contains provisions permitting the holders of a majority in aggregate principal
amount of the Securities at the time outstanding affected thereby, on behalf of
all of the holders of the Securities, to waive any past default in the
performance of any of the covenants contained in the Indenture, or established
pursuant to the Indenture, and its consequences, except a default in the payment
of the principal of or premium, if any, or interest on any of the Securities or
a default in respect of any covenant or provision under which the Indenture
cannot be modified or amended without the consent of each holder of Securities
then outstanding. Any such consent or waiver by the holder of this Security
(unless revoked as provided in the Indenture) shall be conclusive and binding
upon such Holder and upon all future holders and owners of this Security and of
any Security issued in exchange herefor or in place hereof (whether by
registration of transfer or otherwise), irrespective of whether or not any
notation of such consent or waiver is made upon this Security.

No reference herein to the Indenture and no provision of this Security or of the
Indenture shall alter or impair the obligation of the Company, which is absolute
and

                                      A-7
<PAGE>

unconditional, to pay the principal of and premium, if any, and interest
(including Compounded Interest and Additional Sums, if any) and Liquidated
Damages, if any, on this Security at the time and place and at the rate and in
the money herein prescribed.

So long as no Event of Default shall have occurred and be continuing, the
Company shall have the right, at any time and from time to time during the term
of the Securities, to defer payments of interest by extending the interest
payment period of such Securities for a period not exceeding 10 consecutive
semi-annual periods, including the first such semi-annual period during such
extension period, and not extending beyond the Maturity Date of the Securities
(an "Extended Interest Payment Period") or ending on a date other than an
Interest Payment Date, at the end of which period the Company shall pay all
interest then accrued and unpaid (together with interest thereon at the rate
specified for the Securities to the extent that payment of such interest is
enforceable under applicable law). Before the termination of any such Extended
Interest Payment Period, the Company may further defer payments of interest by
further extending such Extended Interest Payment Period, provided that such
Extended Interest Payment Period, together with all such previous and further
extensions within such Extended Interest Payment Period, (i) shall not exceed 10
consecutive semi-annual periods, including the first semi-annual period during
such Extended Interest Payment Period, (ii) shall not end on any date other than
an Interest Payment Date, and (iii) shall not extend beyond the Maturity Date of
the Securities. Upon the termination of any such Extended Interest Payment
Period and the payment of all accrued and unpaid interest and any additional
amounts then due, the Company may commence a new Extended Interest Payment
Period, subject to the foregoing requirements.

The Company has agreed that it will not (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Company's capital stock (which includes common and
preferred stock), (ii) make any payment of principal, interest or premium, if
any, on or repay or repurchase or redeem any debt securities of the Company that
rank pari passu with or junior in right of payment to the Securities or (iii)
make any guarantee payments with respect to any guarantee by the Company of the
debt securities of any Subsidiary of the Company if such guarantee ranks pari
passu or junior in right of payment to the Securities (other than (a) dividends
or distributions in shares of, or options, warrants or rights to subscribe for
or purchase shares of, Common Stock of the Company, (b) any declaration of a
dividend in connection with the implementation of a stockholder's rights plan,
or the issuance of stock under any such plan in the future, or the redemption or
repurchase of any such rights pursuant thereto, (c) payments under the Capital
Securities Guarantee, (d) as a result of a reclassification of the Company's
capital stock or the exchange or the conversion of one class or series of the
Company's capital stock, for another class or series of the Company's capital
stock, (e) the purchase of fractional interests in shares of the Company's
capital stock pursuant to the exchange or conversion of such capital stock or
the security being exchanged or converted and (f) purchases of Common Stock
related to the issuance of Common Stock or rights under any of the Company's
benefit plans for its directors, officers or employees or any of the Company's
dividend reinvestment plans) if at such time (1) there shall have occurred any
event of which the Company has actual knowledge that (a) is or, with the giving
of notice or the lapse of time, or both, would be, an Event of Default and (b)
in respect of which the Company shall not have taken reasonable steps to cure,
(2) if the Securities

                                      A-8
<PAGE>

are held by UCBH Trust Co., the Company shall be in default with respect to its
payment obligations under the Capital Securities Guarantee or (3) the Company
shall have given notice of its election of the exercise of its right to extend
the interest payment period and any such extension shall be continuing.

Subject to (i) the receipt of any required regulatory approval and (ii) the
receipt by the Company of an opinion of counsel to the effect that such
distribution will not be a taxable event to holders of Capital Securities, the
Company will have the right at any time to liquidate UCBH Trust Co. and cause
the Securities to be distributed to the holders of the Trust Securities in
liquidation of the Trust.

The Securities are issuable only in registered form without coupons in
denominations of $1,000.00 and any integral multiple thereof. As provided in the
Indenture and subject to the transfer restrictions limitations as may be
contained herein and therein from time to time, this Security is transferable by
the holder hereof on the Security Register of the Company, upon surrender of
this Security for registration of transfer at the office or agency of the
Company in the City of San Francisco and the State of California accompanied by
a written instrument or instruments of transfer in form satisfactory to the
Company or the Trustee duly executed by the holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of authorized
denominations and for the same aggregate principal amount and series will be
issued to the designated transferee or transferees. No service charge will be
made for any such registration of transfer, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge payable in
relation thereto.

Prior to due presentment for registration of transfer of this Security, the
Company, the Trustee, any authenticating agent, any paying agent, any transfer
agent and the registrar may deem and treat the holder hereof as the absolute
owner hereof (whether or not this Security shall be overdue and notwithstanding
any notice of ownership or writing hereon made by anyone other than the Security
Registrar) for the purpose of receiving payment of or on account of the
principal hereof and premium, if any, and (subject to the Indenture) interest
due hereon and for all other purposes, and neither the Company nor the Trustee
nor any authenticating agent nor any paying agent nor any transfer agent nor any
registrar shall be affected by any notice to the contrary.

No recourse shall be had for the payment of the principal of or premium, if any,
or interest on this Security, or for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture, against any
incorporator, stockholder, officer or director, past, present or future, as
such, of the Company or of any predecessor or successor Person, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issuance hereof, expressly
waived and released.

All terms used in this Security that are defined in the Indenture shall have the
meanings assigned to them in the Indenture.

                                      A-9
<PAGE>

THE INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO CONFLICT OF
LAW PROVISIONS THEREOF.

                                      A-10exv10w1

 

Exhibit 10.1

 

 

AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of May 25, 2005

by and among

UNITED DOMINION REALTY TRUST, INC.,

							
	 
	 	 
	 	as Borrower
	 	 

Each of

WACHOVIA CAPITAL MARKETS, LLC,

and

J.P. MORGAN SECURITIES INC.,

							
	 
	 	 
	 	as Joint Lead Arrangers

and

Joint Bookrunners,
	 	 

WACHOVIA BANK, NATIONAL ASSOCIATION,

							
	 
	 	 
	 	as Administrative Agent,
	 	 

JPMORGAN CHASE BANK, N.A.

							
	 
	 	 
	 	as Syndication Agent
	 	 

SUNTRUST BANK

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

							
	 
	 	 
	 	as Documentation Agents,
	 	 

CITICORP NORTH AMERICA, INC.,

KEYBANK, N.A.

and

U.S. BANK NATIONAL ASSOCIATION,

							
	 
	 	 
	 	as Managing Agents,
	 	 

LASALLE BANK NATIONAL ASSOCIATION,

MIZUHO CORPORATE BANK, LTD., NEW YORK BRANCH

and

UFJ BANK LIMITED, NEW YORK BRANCH,

							
	 
	 	 
	 	as Co-Agents,
	 	 

and

THE FINANCIAL INSTITUTIONS INITIALLY SIGNATORY HERETO

AND THEIR ASSIGNEES PURSUANT TO SECTION 12.5.,

							
	 
	 	 
	 	as Lenders
	 	 

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Article I. Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 1.1. Definitions
	 	 	1	 
	Section 1.2. General; References to Times
	 	 	24	 
	 
	 	 	 	 
	Article II. Credit Facility
	 	 	25	 
	 
	 	 	 	 
	Section 2.1. Revolving Loans
	 	 	25	 
	Section 2.2. Bid Rate Loans
	 	 	26	 
	Section 2.3. Swingline Loans
	 	 	29	 
	Section 2.4. Letters of Credit
	 	 	31	 
	Section 2.5. Rates and Payment of Interest on Loans
	 	 	35	 
	Section 2.6. Number of Interest Periods
	 	 	36	 
	Section 2.7. Repayment of Loans
	 	 	36	 
	Section 2.8. Prepayments
	 	 	37	 
	Section 2.9. Continuation
	 	 	37	 
	Section 2.10. Conversion
	 	 	38	 
	Section 2.11. Notes
	 	 	38	 
	Section 2.12. Voluntary Reductions of the Commitment
	 	 	39	 
	Section 2.13. Extension of Termination Date
	 	 	39	 
	Section 2.14. Expiration or Maturity Date of Letters of Credit Past Termination Date
	 	 	39	 
	Section 2.15. Amount Limitations
	 	 	39	 
	Section 2.16. Increase of Commitments
	 	 	40	 
	 
	 	 	 	 
	Article III. Payments, Fees and Other General Provisions
	 	 	40	 
	 
	 	 	 	 
	Section 3.1. Payments
	 	 	40	 
	Section 3.2. Pro Rata Treatment
	 	 	41	 
	Section 3.3. Sharing of Payments, Etc.
	 	 	42	 
	Section 3.4. Several Obligations
	 	 	42	 
	Section 3.5. Minimum Amounts
	 	 	42	 
	Section 3.6. Fees
	 	 	43	 
	Section 3.7. Computations
	 	 	44	 
	Section 3.8. Usury
	 	 	44	 
	Section 3.9. Agreement Regarding Interest and Charges
	 	 	44	 
	Section 3.10. Statements of Account
	 	 	44	 
	Section 3.11. Defaulting Lenders
	 	 	44	 
	Section 3.12. Taxes
	 	 	46	 
	 
	 	 	 	 
	Article IV. Yield Protection, Etc.
	 	 	47	 
	 
	 	 	 	 
	Section 4.1. Additional Costs; Capital Adequacy
	 	 	47	 
	Section 4.2. Suspension of LIBOR Loans
	 	 	49	 
	Section 4.3. Illegality
	 	 	49	 
	Section 4.4. Compensation
	 	 	49	 
	Section 4.5. Affected Lenders
	 	 	50	 
	Section 4.6. Treatment of Affected Loans
	 	 	50	 

-i-

 

	 	 	 	 	 
	Section 4.7. Change of Lending Office
	 	 	51	 
	Section 4.8. Assumptions Concerning Funding of LIBOR Loans
	 	 	51	 
	 
	 	 	 	 
	Article V. Conditions Precedent
	 	 	52	 
	 
	 	 	 	 
	Section 5.1. Initial Conditions Precedent
	 	 	52	 
	Section 5.2. Conditions Precedent to All Loans and Letters of Credit
	 	 	54	 
	Section 5.3. Conditions as Covenants
	 	 	54	 
	 
	 	 	 	 
	Article VI. Representations and Warranties
	 	 	55	 
	 
	 	 	 	 
	Section 6.1. Representations and Warranties
	 	 	55	 
	Section 6.2. Survival of Representations and Warranties, Etc.
	 	 	61	 
	 
	 	 	 	 
	Article VII. Affirmative Covenants
	 	 	61	 
	 
	 	 	 	 
	Section 7.1. Preservation of Existence and Similar Matters
	 	 	61	 
	Section 7.2. Compliance with Applicable Law and Material Contracts
	 	 	61	 
	Section 7.3. Maintenance of Property
	 	 	62	 
	Section 7.4. Conduct of Business
	 	 	62	 
	Section 7.5. Insurance
	 	 	62	 
	Section 7.6. Payment of Taxes and Claims
	 	 	62	 
	Section 7.7. Visits and Inspections
	 	 	62	 
	Section 7.8. Use of Proceeds; Letters of Credit
	 	 	63	 
	Section 7.9. Environmental Matters
	 	 	63	 
	Section 7.10. Books and Records
	 	 	63	 
	Section 7.11. Further Assurances
	 	 	64	 
	Section 7.12. New Subsidiaries/Guarantors
	 	 	64	 
	Section 7.13. REIT Status
	 	 	64	 
	Section 7.14. Exchange Listing
	 	 	65	 
	 
	 	 	 	 
	Article VIII. Information
	 	 	65	 
	 
	 	 	 	 
	Section 8.1. Quarterly Financial Statements
	 	 	65	 
	Section 8.2. Year-End Statements
	 	 	65	 
	Section 8.3. Compliance Certificate
	 	 	65	 
	Section 8.4. Other Information
	 	 	66	 
	 
	 	 	 	 
	Article IX. Negative Covenants
	 	 	68	 
	 
	 	 	 	 
	Section 9.1. Financial Covenants
	 	 	68	 
	Section 9.2. Restricted Payments
	 	 	69	 
	Section 9.3. Debt
	 	 	69	 
	Section 9.4. Certain Permitted Investments
	 	 	69	 
	Section 9.5. Investments Generally
	 	 	70	 
	Section 9.6. Liens; Negative Pledges; Other Matters
	 	 	70	 
	Section 9.7. Merger, Consolidation, Sales of Assets and Other Arrangements
	 	 	71	 
	Section 9.8. Fiscal Year
	 	 	72	 
	Section 9.9. Modifications to Material Contracts
	 	 	72	 
	Section 9.10. Modifications of Organizational Documents
	 	 	72	 
	Section 9.11. Transactions with Affiliates
	 	 	72	 

-ii-

 

	 	 	 	 	 
	Section 9.12. ERISA Exemptions
	 	 	73	 
	 
	 	 	 	 
	Article X. Default
	 	 	73	 
	 
	 	 	 	 
	Section 10.1. Events of Default
	 	 	73	 
	Section 10.2. Remedies Upon Event of Default
	 	 	76	 
	Section 10.3. Remedies Upon Default
	 	 	77	 
	Section 10.4. Allocation of Proceeds
	 	 	77	 
	Section 10.5. Collateral Account
	 	 	77	 
	Section 10.6. Performance by Agent
	 	 	78	 
	Section 10.7. Rights Cumulative
	 	 	79	 
	 
	 	 	 	 
	Article XI. The Agent
	 	 	79	 
	 
	 	 	 	 
	Section 11.1. Authorization and Action
	 	 	79	 
	Section 11.2. Agent’s Reliance, Etc.
	 	 	80	 
	Section 11.3. Notice of Defaults
	 	 	80	 
	Section 11.4. Wachovia as Lender
	 	 	80	 
	Section 11.5. Approvals of Lenders
	 	 	81	 
	Section 11.6. Lender Credit Decision, Etc.
	 	 	81	 
	Section 11.7. Indemnification of Agent and Arrangers
	 	 	82	 
	Section 11.8. Successor Agent
	 	 	83	 
	Section 11.9. Titled Agents
	 	 	84	 
	 
	 	 	 	 
	Article XII. Miscellaneous
	 	 	84	 
	 
	 	 	 	 
	Section 12.1. Notices
	 	 	84	 
	Section 12.2. Expenses
	 	 	85	 
	Section 12.3. Setoff
	 	 	86	 
	Section 12.4. Litigation; Jurisdiction; Other Matters; Waivers
	 	 	86	 
	Section 12.5. Successors and Assigns
	 	 	87	 
	Section 12.6. Amendments
	 	 	90	 
	Section 12.7. Nonliability of Agent and Lenders
	 	 	91	 
	Section 12.8. Confidentiality
	 	 	92	 
	Section 12.9. Indemnification
	 	 	92	 
	Section 12.10. Termination; Survival
	 	 	95	 
	Section 12.11. Severability of Provisions
	 	 	95	 
	Section 12.12. GOVERNING LAW
	 	 	95	 
	Section 12.13. Counterparts
	 	 	95	 
	Section 12.14. Obligations with Respect to Loan Parties
	 	 	96	 
	Section 12.15. Limitation of Liability
	 	 	96	 
	Section 12.16. Entire Agreement
	 	 	96	 
	Section 12.17. Construction
	 	 	96	 
	Section 12.18. Patriot Act
	 	 	96	 
	Section 12.19. NO NOVATION
	 	 	97	 

	 	 	 
	SCHEDULE 1.1(A)

	 	List of Loan Parties
	SCHEDULE 5.3.

	 	Post Agreement Date Deliveries
	SCHEDULE 6.1.(b)

	 	Ownership Structure

-iii-

 

	 	 	 
	SCHEDULE 6.1.(f)

	 	Title to Properties; Liens
	SCHEDULE 6.1.(g)

	 	Debt and Guaranties
	SCHEDULE 6.1.(h)

	 	Material Contracts
	SCHEDULE 6.1.(i)

	 	Litigation
	SCHEDULE 6.1.(y)

	 	Unencumbered Assets
	 
	 	 
	EXHIBIT A

	 	Form of Assignment and Acceptance Agreement
	EXHIBIT B

	 	Form of Designation Agreement
	EXHIBIT C

	 	Form of Notice of Borrowing
	EXHIBIT D

	 	Form of Notice of Continuation
	EXHIBIT E

	 	Form of Notice of Conversion
	EXHIBIT F

	 	Form of Notice of Swingline Borrowing
	EXHIBIT G

	 	Form of Swingline Note
	EXHIBIT H

	 	Form of Bid Rate Quote Request
	EXHIBIT I

	 	Form of Bid Rate Quote
	EXHIBIT J

	 	Form of Bid Rate Quote Acceptance
	EXHIBIT K

	 	Form of Revolving Note
	EXHIBIT L

	 	Form of Bid Rate Note
	EXHIBIT M

	 	Form of Opinion of Counsel
	EXHIBIT N

	 	Form of Compliance Certificate
	EXHIBIT O

	 	Form of Guaranty

-iv-

 

     THIS AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) dated as of May 25, 2005 by and
among UNITED DOMINION REALTY TRUST, INC., a Maryland corporation (the “Borrower”), each of WACHOVIA
CAPITAL MARKETS, LLC and J.P. MORGAN SECURITIES INC., as Joint Lead Arrangers (each a “Joint Lead
Arranger”) and as Joint Bookrunners (the “Joint Bookrunners”), WACHOVIA BANK, NATIONAL ASSOCIATION,
as Agent, JPMORGAN CHASE BANK, N.A., as Syndication Agent (the “Syndication Agent”), each of
SUNTRUST BANK and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Documentation Agent (each a
“Documentation Agent”), each of CITICORP NORTH AMERICA, INC., KEYBANK, N.A. and U.S. BANK NATIONAL
ASSOCIATION, as Managing Agent (each a “Managing Agent”), each of LASALLE BANK NATIONAL
ASSOCIATION, MIZUHO CORPORATE BANK, LTD., NEW YORK BRANCH and UFJ BANK LIMITED, NEW YORK BRANCH, as
Co-Agent (each a “Co-Agent”), and each of the financial institutions initially a signatory hereto
together with their assignees pursuant to Section 12.5.

     WHEREAS, certain of the Lenders and other financial institutions have made available to
Borrower a $500,000,000 revolving credit facility on the terms and conditions contained in that
certain Credit Agreement dated as of March 14, 2003 (as amended and in effect immediately prior to
the date hereof, the “Existing Credit Agreement”) by and among the Borrower, such Lenders, certain
other financial institutions, the Agent and the other parties thereof; and

     WHEREAS, the Agent and the Lenders desire to amend and restate the terms of the Existing
Credit Agreement to make available to the Borrower a revolving credit facility in the initial
amount of $500,000,000, which will include a $50,000,000 letter of credit subfacility and a
$35,000,000 swingline subfacility, on the terms and conditions contained herein.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, the parties hereto agree that the Existing Credit
Agreement is amended and restated in its entirety as follows:

Article I. Definitions

Section 1.1. Definitions.

     In addition to terms defined elsewhere herein, the following terms shall have the following
meanings for the purposes of this Agreement:

     “1031 Property” means property held by a “qualified intermediary” in connection with the sale
of such property by the Borrower, a Subsidiary or Unconsolidated Affiliate pursuant to, and
qualifying for tax treatment under, Section 1031 of the Internal Revenue Code.

     “Absolute Rate” has the meaning given that term in Section 2.2.(c)(ii)(C).

     “Absolute Rate Auction” means a solicitation of Bid Rate Quotes setting forth Absolute Rates
pursuant to Section 2.2.

 

 

     “Absolute Rate Loan” means a Bid Rate Loan, the interest rate on which is determined on the
basis of an Absolute Rate pursuant to an Absolute Rate Auction.

     “Accession Agreement” means an Accession Agreement substantially in the form of Annex I to the
Guaranty.

     “Additional Costs” has the meaning given that term in Section 4.1.

     “Adjusted Eurodollar Rate” means, with respect to each Interest Period for any LIBOR Loan, the
rate obtained by dividing (a) LIBOR for such Interest Period by (b) a percentage equal to 1 minus
the stated maximum rate (stated as a decimal) of all reserves, if any, required to be maintained
against “Eurocurrency liabilities” as specified in Regulation D of the Board of Governors of the
Federal Reserve System (or against any other category of liabilities which includes deposits by
reference to which the interest rate on LIBOR Loans is determined or any category of extensions of
credit or other assets which includes loans by an office of any Lender outside of the United States
of America to residents of the United States of America).

     “Affiliate” means any Person (other than the Agent or any Lender): (a) directly or indirectly
controlling, controlled by, or under common control with, the Borrower; (b) directly or indirectly
owning or holding five percent (5.0%) or more of any Equity Interest in the Borrower; or (c) ten
percent (10.0%) or more of whose voting stock or other Equity Interest is directly or indirectly
owned or held by the Borrower. For purposes of this definition, “control” (including with
correlative meanings, the terms “controlling”, “controlled by” and “under common control with”)
means the possession directly or indirectly of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting securities or by
contract or otherwise. The Affiliates of a Person shall include any officer or director of such
Person.

     “Agent” means Wachovia Bank, National Association, as contractual representative for the
Lenders under the terms of this Agreement, and any of its successors.

     “Agreement Date” means the date as of which this Agreement is dated.

     “Applicable Law” means all applicable provisions of constitutions, statutes, rules,
regulations and orders of all governmental bodies and all orders and decrees of all courts,
tribunals and arbitrators.

     “Applicable Margin” means the percentage per annum determined, at any time, based on the range
into which the Borrower’s Credit Rating then falls, in accordance with the levels in the table set
forth below (each a “Level”). Any change in the Borrower’s Credit Rating which would cause it to
move to a different Level in such table shall effect a change in the Applicable Margin on the
Business Day on which such change occurs. During any period that the Borrower has received Credit
Ratings that are not equivalent, the Applicable Margin shall be determined by the higher of such
two Credit Ratings; provided, however, that if the ratings of S&P and Moody’s are two pricing
Levels apart, then the Applicable Margin shall be based on the Level that falls between the Levels
that correspond to the ratings of S&P and Moody’s. During any

-2-

 

period for which the Borrower has received a Credit Rating from only one Rating Agency, then the
Applicable Margin shall be determined based on such Credit Rating. During any period for which the
Borrower has not received a Credit Rating from either Rating Agency, then the Applicable Margin
shall be determined based on Level 5. As of the Agreement Date, and thereafter until changed as
provided above, the Applicable Margin shall be determined based on Level 3.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Borrower’s Credit Rating	 	 	Applicable Margin	 	 	 	Applicable Margin	 	 
	 	Level	 	 	(S&P/Moody’s)	 	 	for LIBOR Loans	 	 	 	for Base Rate Loans	 	 
	 	1
	 	 	A-/A3	 	 	 	0.45	%	 	 	 	0.0	%	 
	 	2
	 	 	BBB+/Baa1	 	 	 	0.50	%	 	 	 	0.0	%	 
	 	3
	 	 	BBB/Baa2	 	 	 	0.575	%	 	 	 	0.0	%	 
	 	4
	 	 	BBB-/Baa3	 	 	 	0.80	%	 	 	 	0.0	%	 
	 	5
	 	 	<  BBB-/Baa3	 	 	 	1.25	%	 	 	 	0.25	%	 
	 

     “Arrangers” means Wachovia Capital Markets, LLC and J.P. Morgan Securities, Inc., together
with their respective successors and permitted assigns.

     “Assignee” has the meaning given that term in Section 12.5.(d).

     “Assignment and Acceptance Agreement” means an Assignment and Acceptance Agreement among a
Lender, an Assignee and the Agent, substantially in the form of Exhibit A.

     “Base Rate” means the per annum rate of interest equal to the greater of (a) the Prime Rate or
(b) the Federal Funds Rate plus one-half of one percent (0.5%). Any change in the Base Rate
resulting from a change in the Prime Rate or the Federal Funds Rate shall become effective as of
12:01 a.m. on the Business Day on which each such change occurs. The Base Rate is a reference rate
used by the Lender acting as the Agent in determining interest rates on certain loans and is not
intended to be the lowest rate of interest charged by the Lender acting as the Agent or any other
Lender on any extension of credit to any debtor.

     “Base Rate Loan” means a Revolving Loan bearing interest at a rate based on the Base Rate.

     “Benefit Arrangement” means at any time an employee benefit plan within the meaning of Section
3(3) of ERISA which is not a Plan or a Multiemployer Plan and which is maintained or otherwise
contributed to by any member of the ERISA Group.

     “Bid Rate Borrowing” has the meaning given that term in Section 2.2.(b).

     “Bid Rate Loan” means a loan made by a Lender under Section 2.2.

     “Bid Rate Notes” has the meaning given that term in Section 2.11.(b).

     “Bid Rate Quote” means an offer in accordance with Section 2.2.(c) by a Lender to make a Bid
Rate Loan with one single specified interest rate.

-3-

 

     “Bid Rate Quote Request” has the meaning given that term in Section 2.2.(b).

     “Borrower” has the meaning set forth in the introductory paragraph hereof and shall include
the Borrower’s successors and permitted assigns.

     “Business Day” means (a) any day other than a Saturday, Sunday or other day on which banks in
Charlotte, North Carolina or New York, New York are authorized or required to close and (b) with
reference to a LIBOR Loan, any such day that is also a day on which dealings in Dollar deposits are
carried out in the London interbank market.

     “Capitalized Lease Obligation” means an obligation under a lease that is required to be
capitalized for financial reporting purposes in accordance with GAAP. The amount of a Capitalized
Lease Obligation is the capitalized amount of such obligation determined in accordance with GAAP.

     “Cash Equivalents” means: (a) securities issued, guaranteed or insured by the United States of
America or any of its agencies with maturities of not more than one year from the date acquired;
(b) certificates of deposit with maturities of not more than one year from the date acquired issued
by a United States federal or state chartered commercial bank of recognized standing, or a
commercial bank organized under the laws of any other country which is a member of the Organization
for Economic Cooperation and Development, or a political subdivision of any such country, acting
through a branch or agency, which bank has capital and unimpaired surplus in excess of
$500,000,000.00 and which bank or its holding company has a short-term commercial paper rating of
at least A-2 or the equivalent by S&P or at least P-2 or the equivalent by Moody’s; (c) reverse
repurchase agreements with terms of not more than seven days from the date acquired, for securities
of the type described in clause (a) above and entered into only with commercial banks having the
qualifications described in clause (b) above; (d) commercial paper issued by any Person
incorporated under the laws of the United States of America or any State thereof and rated at least
A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s, in each
case with maturities of not more than one year from the date acquired; and (e) investments in money
market funds registered under the Investment Company Act of 1940, which have net assets of at least
$500,000,000.00 and at least 85% of whose assets consist of securities and other obligations of the
type described in clauses (a) through (d) above.

     “Change of Control” means the occurrence of either of the following events: (i) any Person or
two or more Persons acting in concert shall have acquired beneficial ownership, directly or
indirectly, of, or shall have acquired by contract or otherwise, or shall have entered into a
contract or arrangement that, upon consummation, will result in its or their acquisition of, or
control over, voting stock of the Borrower (or other securities convertible into such voting stock)
representing 35% or more of the combined voting power of all voting stock of the Borrower, or (ii)
during any period of up to 24 consecutive months, commencing after the Agreement Date, individuals
who at the beginning of such 24 month period were directors of the Borrower (together with any new
director whose election by the Borrower’s Board of Directors or whose nomination for election by
the Borrower’s shareholders was approved by a vote of at least two-thirds of the directors then
still

-4-

 

in office who either were directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to constitute a majority
of the directors of the Borrower then in office. As used herein, “beneficial ownership” shall have
the meaning provided in Rule 13d-3 of the Securities and Exchange Commission under the Securities
Exchange Act of 1934.

     “Collateral Account” means a special non-interest bearing deposit account or securities
account maintained by, or on behalf of, the Agent and under its sole dominion and control, for the
benefit of the Lenders.

     “Commitment” means, as to each Lender (other than the Swingline Lender), such Lender’s
obligation (a) to make Revolving Loans pursuant to Section 2.1., (b) to issue (in the case of the
Agent) or participate in (in the case of the Lenders) Letters of Credit pursuant to Section 2.4.(a)
and 2.4.(i), respectively (but in the case of the Lender acting as the Agent excluding the
aggregate amount of participations in the Letters of Credit held by other Lenders) and (c) to
participate in Swingline Loans pursuant to Section 2.3.(e), in each case, in an amount up to, but
not exceeding, the amount set forth for such Lender on its signature page hereto as such Lender’s
“Commitment Amount” or as set forth in the applicable Assignment and Acceptance Agreement, as the
same may be reduced from time to time pursuant to Section 2.12. or as appropriate to reflect any
assignments to or by such Lender effected in accordance with Section 12.5.

     “Commitment Percentage” means, as to each Lender, the ratio, expressed as a percentage, of (a)
the amount of such Lender’s Commitment to (b) the aggregate amount of the Commitments of all
Lenders hereunder; provided, however, that if at the time of determination the Commitments have
terminated or been reduced to zero, the “Commitment Percentage” of each Lender shall be the
Commitment Percentage of such Lender in effect immediately prior to such termination or reduction.

     “Compliance Certificate” has the meaning given that term in Section 8.3.

     “Condominium Property” means a Multifamily Property that has been converted into residential
condominium units for the purpose of sale. For purposes of this definition and the definition of
“Condominium Property Value” a Multifamily Property will be deemed “converted” into residential
condominium units once both of the following have occurred: (a) notice of the conversion has been
sent to the tenants of such Property; and (b) a declaration of condominium or other similar
document is filed with the applicable Governmental Authority.

     “Condominium Property Value” means the sum of the following: (a) the Consolidated Net
Operating Income attributable to such Property for the two quarter period annualized ending
immediately prior to such conversion divided by 7.50%, plus (b) the of cost of capital improvements
made to such Property in connection with such conversion not to exceed 35% of the amount determined
in accordance with the preceding clause (a), minus (c) 90% of the actual contractual sales price of
each individual condominium unit sale prior to any deductions for commissions, fees and any other
expenses; provided, however, no value will be attributed to such Condominium Property 24 months
after its conversion. In addition, no value shall be

-5-

 

attributable to a Condominium Property at any time following the earlier of (x) all condominium
units of such Property having been sold or otherwise conveyed, (y) the management of such Property
having been turned over to such Property’s homeowners’ association and (z) less than 10% of the
units remain unsold.

     “Consolidated Adjusted EBITDA” means, for any period for the Consolidated Group, the sum of
Consolidated EBITDA for such period minus a reserve equal to $62.50 per apartment unit
located on a Property per quarter (or $250 per apartment unit located on a Property per year)
minus the Borrower’s pro rata share of such reserves (determined in a manner consistent
with this definition of Consolidated Adjusted EBITDA) of any Unconsolidated Affiliates of the
Borrower.

     “Consolidated Adjusted Tangible Net Worth” means at any date (a) the sum of (i) the
consolidated shareholders’ equity of the Consolidated Group determined on a consolidated basis (net
of Minority Interests) plus (ii) accumulated depreciation of Properties owned by a member
of the Consolidated Group to the extent reflected in the then book value of the Consolidated Assets
minus, without duplication, (b) the Intangible Assets of the Consolidated Group.

     “Consolidated Assets” means the assets of the members of the Consolidated Group determined in
accordance with GAAP on a consolidated basis.

     “Consolidated EBITDA” means for any period for the Consolidated Group, Consolidated Net Income
(including Consolidated Net Income attributable to units of Condominium Properties prior to the
sale thereof) excluding the following amounts (but only to the extent included in determining
Consolidated Net Income for such period) (a) Consolidated Interest Expense; (b) all provisions for
any Federal, state or other income taxes; (c) depreciation, amortization and other non-cash
charges; (d) gains and losses on Investments and extraordinary gains and losses; (e) taxes on such
excluded gains and tax deductions or credits on account of such excluded losses, in each case on a
consolidated basis determined in accordance with GAAP; and (f) to the extent not already included
in the immediately preceding clauses (b) through (e), the Borrower’s pro rata share of such items
of each Unconsolidated Affiliate of the Borrower for such period. Consolidated EBITDA shall
include gain or loss, in either case, realized on the sale of any portion of a Condominium Property
(without duplication of income on condominium units).

     “Consolidated Funded Debt” means total Debt of the Consolidated Group on a consolidated basis
determined in accordance with GAAP (excluding (i) Debt consisting of contingent liabilities
retained by the Borrower related to the sale of Hunting Ridge, Woodside and Twin Coves in an
aggregate amount not to exceed $20,000,000 and (ii) the aggregate amount, not to exceed
$20,000,000, available to be drawn under letters of credit issued in respect of normal operating
expenses of such Person) plus the Borrower’s pro rata share of the Debt of any
Unconsolidated Affiliate of the Borrower.

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

-6-

 

     “Consolidated Interest Expense” means for any period for the Consolidated Group, (a) all
interest expense, including the amortization of debt discount and premium, the interest component
under capital leases and capitalized interest expense (other than capitalized interest funded from
a construction loan interest reserve account held by another lender and not included in the
calculation of cash for balance sheet reporting purposes), in each case on a consolidated basis
determined in accordance with GAAP plus (b) to the extent not already included in the
foregoing clause (a), the Borrower’s pro rata share of all interest expense (determined in a manner
consistent with this definition of Consolidated Interest Expense) for such period of Unconsolidated
Affiliates of the Borrower.

     “Consolidated Net Income” means for any period, the net income of the Consolidated Group on a
consolidated basis determined in accordance with GAAP, including the Borrower’s pro rata share of
the net income of each Unconsolidated Affiliate of the Borrower for such period.

     “Consolidated Net Operating Income” means, for any period for any Multifamily Property owned
by a member of the Consolidated Group or an Unconsolidated Affiliate, an amount equal to (a) the
aggregate rental and other income from the operation of such Multifamily Property during such
period minus (b) all expenses and other proper charges incurred in connection with the
operation of such Multifamily Property (including, without limitation, real estate taxes and bad
debt expenses) during such period and an imputed management fee in the amount of 3.0% of the
aggregate rents received for such Multifamily Property during such period; but, in any case, before
payment of or provision for debt service charges for such period, income taxes for such period, and
depreciation, amortization and other non-cash expenses for such period, all on a consolidated basis
determined in accordance with GAAP. For purposes of determining Consolidated Net Operating Income,
only the Borrower’s pro rata share of the Consolidated Net Operating Income of any such Property
owned by an Unconsolidated Affiliate of the Borrower shall be used.

     “Consolidated Secured Debt” means, as of any given date, all Consolidated Funded Debt that is
secured in any manner by any Lien.

     “Consolidated Total Fixed Charges” means for any period, the sum of (a) the cash portion of
Consolidated Interest Expense paid during such period plus (b) regularly scheduled
principal payments on Consolidated Funded Debt during such period (excluding any balloon, bullet or
similar principal payment payable on any Consolidated Funded Debt which repays such Consolidated
Funded Debt in full) plus (c) all cash dividends and distributions on Preferred Equity
Interests of members of the Consolidated Group paid during such period, all on a consolidated basis
determined in accordance with GAAP.

     “Consolidated Unsecured Debt” means, as of a given date, all Consolidated Funded Debt that is
not Consolidated Secured Debt.

     “Continue”, “Continuation” and “Continued” each refers to the continuation of a LIBOR Loan
from one Interest Period to another Interest Period pursuant to Section 2.9.

-7-

 

     “Convert”, “Conversion” and “Converted” each refers to the conversion of a Revolving Loan of
one Type into a Loan of another Type pursuant to Section 2.10.

     “Credit Event” means any of the following: (a) the making (or deemed making) of any Loan, (b)
the Conversion of a Loan and (c) the issuance of a Letter of Credit.

     “Credit Rating” means the rating assigned by a Rating Agency to the senior unsecured long term
indebtedness of a Person.

     “Debt” of any Person means at any date, without duplication; (a) all obligations of such
Person for borrowed money; (b) all obligations of such Person evidenced by bonds, debentures, notes
or other similar instruments; (c) all obligations of such Person to pay the deferred purchase price
of property or services (other than trade accounts payable arising in the ordinary course of
business); (d) all Capitalized Lease Obligations of such Person; (e) all obligations of such Person
to purchase securities or other property which arise out of or in connection with the sale of the
same or substantially similar securities or property; (f) all obligations of such Person to
reimburse any bank or other person in respect of amounts payable under a letter of credit or
similar instrument (being the amount available to be drawn thereunder, whether or not then drawn);
(g) all obligations of others secured by a Lien on any asset of such Person, whether or not such
obligation is assumed by such Person; (h) all obligations of others Guaranteed by such Person; (i)
all obligations which in accordance with GAAP would be shown as liabilities on a balance sheet of
such Person or which arise in connection with forward equity transactions; and (j) all obligations
of such Person owing under any synthetic lease, tax retention operating lease, off-balance sheet
loan or similar off-balance sheet financing product to which such Person is a party, where such
transaction is considered borrowed money indebtedness for tax purposes, but is classified as an
operating lease in accordance with GAAP. Debt of any Person shall include Debt of any partnership
or joint venture in which such Person is a general partner or joint venturer to the extent of such
Person’s pro rata share of the ownership of such partnership or joint venture (except if such Debt
is recourse to such Person, in which case the greater of such Person’s pro rata portion of such
Debt or the amount of the recourse portion of the Debt, shall be included as Debt of such Person).
All Loans and Letter of Credit Liabilities shall constitute Debt of the Borrower.

     “Default” means any of the events specified in Section 10.1., whether or not there has been
satisfied any requirement for the giving of notice, the lapse of time, or both.

     “Defaulting Lender” has the meaning set forth in Section 3.11.

     “Designated Lender” means a special purpose corporation which is sponsored by a Lender, that
is engaged in making, purchasing or otherwise investing in commercial loans in the ordinary course
of its business and that issues (or the parent of which issues) commercial paper rated at least P-1
(or the then equivalent grade) by Moody’s or A-1 (or the then equivalent grade) by S&P and that, in
either case, (a) is organized under the laws of the United States of America or any state thereof,
(b) shall have become a party to this Agreement pursuant to Section 12.5.(e) and (c) is not
otherwise a Lender.

-8-

 

     “Designated Lender Note” means a Bid Rate Note of the Borrower evidencing the obligation of
the Borrower to repay Bid Rate Loans made by a Designated Lender.

     “Designating Lender” has the meaning given that term in Section 12.5.(e).

     “Designation Agreement” means a Designation Agreement between a Lender and a Designated Lender
and accepted by the Agent, substantially in the form of Exhibit B or such other form as may be
agreed to by such Lender, such Designated Lender and the Agent.

     “Development Property” means (i) a Property currently under development (or in the
pre-development phase) as a Multifamily Property and/or (ii) a Condominium Property.

     “Dollars” or “$” means the lawful currency of the United States of America.

     “Effective Date” means the later of: (a) the Agreement Date; and (b) the date on which all of
the conditions precedent set forth in Section 5.1. shall have been fulfilled or waived in writing
by the Requisite Lenders.

     “Eligible Assignee” means any Person who is, at the time of determination: (i) a Lender or an
affiliate of a Lender; (ii) a commercial bank, trust, trust company, insurance company, investment
bank or pension fund organized under the laws of the United States of America, or any state
thereof, and having total assets in excess of $5,000,000,000; (iii) a savings and loan association
or savings bank organized under the laws of the United States of America, or any state thereof, and
having a tangible net worth of at least $500,000,000; or (iv) a commercial bank organized under the
laws of any other country which is a member of the Organization for Economic Cooperation and
Development, or a political subdivision of any such country, and having total assets in excess of
$10,000,000,000, provided that such bank is acting through a branch or agency located in the United
States of America. If such Person is not currently a Lender or an affiliate of a Lender, such
Person’s senior unsecured long term indebtedness must be rated BBB or higher by S&P, Baa2 or higher
by Moody’s, or the equivalent or higher of either such rating by another rating agency acceptable
to the Agent. Notwithstanding the foregoing, during any period in which an Event of Default shall
have occurred and be continuing under any of subsections (a), (b), (f) or (g) of Section 10.1., the
term “Eligible Assignee” shall mean any Person that is not an individual.

     “Environmental Laws” means any Applicable Law relating to environmental protection or the
manufacture, storage, disposal or clean-up of Hazardous Materials including, without limitation,
the following: Clean Air Act, 42 U.S.C. § 7401 et seq.; Federal Water Pollution Control Act, 33
U.S.C. § 1251 et seq.; Solid Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act, 42 U.S.C. § 6901 et seq.; Comprehensive Environmental Response, Compensation and
Liability Act, 42 U.S.C. § 9601 et seq.; National Environmental Policy Act, 42 U.S.C. § 4321 et
seq.; regulations of the Environmental Protection Agency and any applicable rule of common law and
any judicial interpretation thereof relating primarily to the environment or Hazardous Materials.

-9-

 

     “Equity Interest” means, with respect to any Person, any share of capital stock of (or other
ownership or profit interests in) such Person, any warrant, option or other right for the purchase
or other acquisition from such Person of any share of capital stock of (or other ownership or
profit interests in) such Person, any security convertible into or exchangeable for any share of
capital stock of (or other ownership or profit interests in) such Person or warrant, right or
option for the purchase or other acquisition from such Person of such shares (or such other
interests), any operating partnership units in such Person and any other ownership or profit
interest in such Person (including, without limitation, partnership, member or trust interests
therein), whether voting or nonvoting, and whether or not such share, warrant, option, right or
other interest is authorized or otherwise existing on any date of determination.

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

     “ERISA Group” means the Borrower, any Subsidiary and all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under common control which,
together with the Borrower or any Subsidiary, are treated as a single employer under Section 414 of
the Internal Revenue Code.

     “Event of Default” means any of the events specified in Section 10.1., provided that any
requirement for notice or lapse of time or any other condition has been satisfied.

     “Excluded Subsidiary” means any Subsidiary (a) formed for the specific purpose of holding
title to assets which are collateral for any Consolidated Secured Debt of such Subsidiary; (b)
which is prohibited from Guarantying the Debt of any other Person pursuant to (i) any document,
instrument or agreement evidencing such Consolidated Secured Debt or (ii) a provision of such
Person’s organizational documents which provision was included in such Person’s organizational
documents as a condition to the extension of such Consolidated Secured Debt; and (c) for which none
of the Borrower, any Subsidiary (other than another Excluded Subsidiary) or any other Loan Party
has Guaranteed any of the Debt of such Subsidiary or has any direct obligation to maintain or
preserve such Subsidiary’s financial condition or to cause such Subsidiary to achieve any specified
levels of operating results, except for customary exceptions for fraud, misapplication of funds,
environmental indemnities, and other similar exceptions to recourse liability.

     “Existing Credit Agreement” has the meaning given that term in the first WHEREAS
clause of this Agreement.

     “Facility Fee” means the per annum percentage set forth in the table below corresponding to
the Level at which the “Applicable Margin” is determined in accordance with the definition thereof:

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Borrower’s Credit Rating	 	 	 	 	 
	 	Level	 	 	(S&P/Moody’s)	 	 	Facility Fee	 	 
	 	1
	 	 	A-/A3	 	 	 	0.15	%	 
	 	2
	 	 	BBB+/Baa1	 	 	 	0.15	%	 
	 

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	 	 	 	 	Borrower’s Credit Rating	 	 	 	 	 
	 	Level	 	 	(S&P/Moody’s)	 	 	Facility Fee	 	 
	 	3
	 	 	BBB/Baa2	 	 	 	0.15	%	 
	 	4
	 	 	BBB-/Baa3	 	 	 	0.20	%	 
	 	5
	 	 	<  BBB-/Baa3	 	 	 	0.25	%	 
	 

As of the Agreement Date, the Facility Fee equals 0.15%.

     “Federal Funds Rate” means, for any day, the rate per annum (rounded upward to the nearest
1/100th of 1%) equal to the weighted average of the rates on overnight Federal funds transactions
with members of the Federal Reserve System arranged by Federal funds brokers on such day, as
published by the Federal Reserve Bank of New York on the Business Day next succeeding such day,
provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be
such rate on such transactions on the next preceding Business Day, and (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate quoted to the Agent by federal funds dealers selected by the Agent on such day on such
transaction as determined by the Agent.

     “Fees” means the fees and commissions provided for or referred to in Section 3.6. and any
other fees payable by the Borrower hereunder or under any other Loan Document.

     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as may be approved by a majority of the accounting
profession, which are applicable to the circumstances as of the date of determination and applied
on a consistent basis.

     “Governmental Approvals” means all authorizations, consents, approvals, licenses and
exemptions of, registrations and filings with, and reports to, all Governmental Authorities.

     “Governmental Authority” means any national, state or local government (whether domestic or
foreign), any political subdivision thereof or any other governmental, quasi-governmental,
judicial, public or statutory instrumentality, authority, body, agency, bureau or entity
(including, without limitation, the Federal Deposit Insurance Corporation, the Comptroller of the
Currency or the Federal Reserve Board, any central bank or any comparable authority) or any
arbitrator with authority to bind a party at law.

     “Gross Asset Value” means from time to time the sum of the following amounts (without
duplication): (a) the product of (i) Consolidated Net Operating Income for the period of two
consecutive fiscal quarters most recently ended attributable to Multifamily Properties (excluding
any Properties covered by either of the immediately following clauses (b) or (c)) owned by any
member of the Consolidated Group for such period, multiplied by (ii) 2 and divided by (iii) 7.50%;
(b) the purchase price paid for any Multifamily Property acquired by any member of the Consolidated
Group during the period of six consecutive fiscal quarters most recently ended (less any amounts
paid as a purchase price adjustment, held in escrow, retained as a contingency reserve, or other
similar arrangements); (c)(i) the Condominium Property Value of all Condominium Properties owned by
any member of the Consolidated Group, (ii) the current

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book value of any other Development Property (or Multifamily Property that was a Development
Property at any time during the period of six consecutive fiscal quarters most recently ended)
owned by any member of the Consolidated Group and (iii) the Renovation Property Value of all
Renovation Properties owned by any member of the Consolidated Group; (d) unrestricted cash and cash
equivalents of the Consolidated Group; (e) the value (based on the lower of cost or market price
determined in accordance with GAAP) of any raw land owned by any member of the Consolidated Group;
(f) the value (based on the lower of cost or market price determined in accordance with GAAP) of
Properties owned by any member of the Consolidated Group that are developed but that are not
Multifamily Properties; (g) the value (based on the lower of cost or market price determined in
accordance with GAAP) of all Multifamily REIT Preferred Interests; (h) the value (based on the
lower of cost or market price determined in accordance with GAAP) of (i) all promissory notes,
including any secured by a Mortgage, payable solely to any member of the Consolidated Group and the
obligors of which are not Affiliates of the Borrower (excluding any such note where the obligor is
more than 60 days past due with respect to any payment obligation) and (ii) all marketable
securities (excluding Marketable Multifamily REIT Preferred Interests); and (i) the Borrower’s pro
rata share of the preceding items of any Unconsolidated Affiliate of the Borrower to the extent not
already included. Notwithstanding the foregoing, any determination of Gross Asset Value shall
exclude any Investments held by the Borrower or any Subsidiary in excess of the amounts permitted
under Section 9.4.

     “Gross Asset Value of the Unencumbered Pool” means Gross Asset Value determined with reference
only to Unencumbered Pool Assets. Notwithstanding the foregoing, the following amounts shall be
excluded from Gross Asset Value of the Unencumbered Pool: (a) the amount by which the value of
Unencumbered Pool Assets owned by Subsidiaries that are not Guarantors would, in the aggregate,
account for more that 10.0% of Gross Asset Value of the Unencumbered Pool; (b) the amount by which
the value of Unencumbered Pool Assets owned by Subsidiaries that are not Wholly Owned Subsidiaries
would, in the aggregate, account for more than 10.0% of Gross Asset Value of the Unencumbered Pool;
and (c) the amount by which the value of Unencumbered Pool Assets that are Investments and other
assets subject to the limitations of any of the subsections of Section 9.4. would, in the
aggregate, account for more than 10.0% of Gross Asset Value of the Unencumbered Pool; provided, the
limitations contained in the immediately preceding clauses (a) and (b) shall not apply to 1031
Properties and the limitations contained in the immediately preceding clause (c) shall not apply to
promissory notes secured by first Mortgages. The aggregate Occupancy Rate of Multifamily
Properties and other Properties that are developed, but that are not Multifamily Properties, must
exceed 80.0%.

     “Guarantor” means any Person that is a party to the Guaranty as a “Guarantor” and in any event
shall include each Material Subsidiary (unless an Excluded Subsidiary).

     “Guaranty”, “Guaranteed”, “Guarantying” or to “Guarantee” as applied to any obligation means
and includes: (a) a guaranty (other than by endorsement of negotiable instruments for collection
in the ordinary course of business), directly or indirectly, in any manner, of any part or all of
such obligation, or (b) an agreement, direct or indirect, contingent or otherwise, and whether or
not constituting a guaranty, the practical effect of which is to assure the payment or performance
(or payment of damages in the event of nonperformance) of any part or all of such obligation
whether by: (i) the purchase of securities or obligations, (ii) the

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purchase, sale or lease (as lessee or lessor) of property or the purchase or sale of services
primarily for the purpose of enabling the obligor with respect to such obligation to make any
payment or performance (or payment of damages in the event of nonperformance) of or on account of
any part or all of such obligation, or to assure the owner of such obligation against loss, (iii)
the supplying of funds to or in any other manner investing in the obligor with respect to such
obligation, (iv) repayment of amounts drawn down by beneficiaries of letters of credit (including
Letters of Credit), or (v) the supplying of funds to or investing in a Person on account of all or
any part of such Person’s obligation under a Guaranty of any obligation or indemnifying or holding
harmless, in any way, such Person against any part or all of such obligation. As the context
requires, “Guaranty” shall also mean the Guaranty to which the Guarantors are parties substantially
in the form of Exhibit O.

     “Hazardous Materials” means all or any of the following: (a) substances that are defined or
listed in, or otherwise classified pursuant to, any applicable Environmental Laws as “hazardous
substances”, “hazardous materials”, “hazardous wastes”, “toxic substances” or any other formulation
intended to define, list or classify substances by reason of deleterious properties such as
ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, “TCLP” toxicity or
“EP toxicity”; (b) oil, petroleum or petroleum derived substances, natural gas, natural gas liquids
or synthetic gas and drilling fluids, produced waters and other wastes associated with the
exploration, development or production of crude oil, natural gas or geothermal resources; (c) any
flammable substances or explosives or any radioactive materials; (d) asbestos in any form; (e)
toxic mold; and (f) electrical equipment which contains any oil or dielectric fluid containing
levels of polychlorinated biphenyls in excess of fifty parts per million.

     “Hunting Ridge” means that certain real property known as “Hunting Ridge Apartments” located
at 300 Sulpher Springs Road, Greenville, South Carolina.

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

     “Intellectual Property” has the meaning given that term in Section 6.1.(t).

     “Interest Period” means:

     (a) with respect to any LIBOR Loan, each period commencing on the date such LIBOR Loan is made
or the last day of the next preceding Interest Period for such Loan and ending 14 days (if
available from all Lenders), 1, 2, 3, 4 or 6 months thereafter, as the Borrower may select in a
Notice of Borrowing, Notice of Continuation or Notice of Conversion, as the case may be, except
that each Interest Period having a duration of one month or more that commences on the last
Business Day of a calendar month shall end on the last Business Day of the appropriate subsequent
calendar month; and

-13-

 

     (b) with respect to any Bid Rate Loan, the period commencing on the date such Bid Rate Loan is
made and ending on any Business Day not less than 7 nor more than 180 days thereafter, as the
Borrower may select as provided in Section 2.2.(b).

     Notwithstanding the foregoing: (i) if any Interest Period would otherwise end after the Termination
Date, such Interest Period shall end on the Termination Date; and (ii) each Interest Period that
would otherwise end on a day which is not a Business Day shall end on the next Business Day (or in
the case of any Interest Period having a duration of one month or more, if the next Business Day
falls in the next calendar month, then on the immediately preceding Business Day).

     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended.

     “Investment” means, (a) with respect to any Person, any acquisition or investment (whether or
not of a controlling interest) by such Person, by means of any of the following: (i) the purchase
or other acquisition of any Equity Interest in another Person, (ii) a loan, advance or extension of
credit to, capital contribution to, Guaranty of Debt of, or purchase or other acquisition of any
Debt of, another Person, including any partnership or joint venture interest in such other Person,
or (iii) the purchase or other acquisition (in one transaction or a series of transactions) of
assets of another Person that constitute the business or a division or operating unit of another
Person and (b) with respect to any Property or other asset, the acquisition thereof. Any binding
commitment to make an Investment in any other Person, as well as any option of another Person to
require an Investment in such Person, shall constitute an Investment. Except as expressly provided
otherwise, for purposes of determining compliance with any covenant contained in a Loan Document,
the amount of any Investment shall be the amount actually invested, without adjustment for
subsequent increases or decreases in the value of such Investment.

     “Investment Grade Rating” means a Credit Rating of BBB-/Baa3 (or equivalent) or higher from
both Rating Agencies.

     “L/C Commitment Amount” equals $50,000,000.

     “Lender” means each financial institution from time to time party hereto as a “Lender” or a
“Designated Lender,” together with its respective successors and permitted assigns, and as the
context requires, includes the Swingline Lender; provided, however, that the term
“Lender” shall exclude each Designated Lender when used in reference to any Loan other than a Bid
Rate Loan, the Commitments or terms relating to any Loan other than a Bid Rate Loan and the
Commitments and shall further exclude each Designated Lender for all other purposes under the Loan
Documents except that any Designated Lender which funds a Bid Rate Loan shall, subject to Section
12.5.(e), have the rights (including the rights given to a Lender contained in Sections 12.2. and
12.9.) and obligations of a Lender associated with holding such Bid Rate Loan.

     “Lending Office” means, for each Lender and for each Type of Loan, the office of such Lender
specified as such on its signature page hereto or in the applicable Assignment and

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Acceptance Agreement, or such other office of such Lender as such Lender may notify the Agent in
writing from time to time.

     “Letter of Credit” has the meaning given that term in Section 2.4.(a).

     “Letter of Credit Documents” means, with respect to any Letter of Credit, collectively, any
application therefor, any certificate or other document presented in connection with a drawing
under such Letter of Credit and any other agreement, instrument or other document governing or
providing for (a) the rights and obligations of the parties concerned or at risk with respect to
such Letter of Credit or (b) any collateral security for any of such obligations.

     “Letter of Credit Liabilities” means, without duplication, at any time and in respect of any
Letter of Credit, the sum of (a) the Stated Amount of such Letter of Credit plus (b) the aggregate
unpaid principal amount of all Reimbursement Obligations of the Borrower at such time due and
payable in respect of all drawings made under such Letter of Credit. For purposes of this
Agreement, a Lender (other than the Lender acting as the Agent) shall be deemed to hold a Letter of
Credit Liability in an amount equal to its participation interest in the related Letter of Credit
under Section 2.4.(i), and the Lender acting as the Agent shall be deemed to hold a Letter of
Credit Liability in an amount equal to its retained interest in the related Letter of Credit after
giving effect to the acquisition by the Lenders other than the Lender acting as the Agent of their
participation interests under such Section.

     “Level” has the meaning given that term in the definition of the term “Applicable Margin.”

     “LIBOR” means, for any LIBOR Loan for any Interest Period therefor, the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any
successor page) as the London interbank offered rate for deposits in Dollars at approximately 11:00
a.m. (London time) two Business Days prior to the first day of such Interest Period for a term
comparable to such Interest Period. If for any reason such rate is not available, the term “LIBOR”
shall mean, for any LIBOR Loan for any Interest Period therefor, the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) appearing on the Reuters Screen LIBO Page as the
London interbank offered rate for deposits in Dollars at approximately 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period for a term comparable to such Interest
Period; provided, however, if more than one rate is specified on the Reuters Screen LIBO Page, the
applicable rate shall be the arithmetic mean of all such rates. If for any reason none of the
foregoing rates is available, LIBOR shall be, for any Interest Period, the rate per annum
reasonably determined by the Agent as the rate of interest at which Dollar deposits in the
approximate amount of the LIBOR Loan comprising part of such borrowing would be offered by the
Agent to major banks in the London interbank eurodollar market at their request at or about 11:00
a.m. (London time) two Business Days prior to the first day of such Interest Period for a term
comparable to such Interest Period.

     “LIBOR Auction” means a solicitation of Bid Rate Quotes setting forth LIBOR Margin Loans based
on LIBOR pursuant to Section 2.2.

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     “LIBOR Loan” means a Revolving Loan bearing interest at a rate based on LIBOR.

     “LIBOR Margin Loan” means a Bid Rate Loan the interest rate on which is determined on the
basis of LIBOR pursuant to a LIBOR Auction.

     “Lien” as applied to the property of any Person means: (a) any security interest,
encumbrance, mortgage, deed to secure debt, deed of trust, pledge, lien, charge or lease
constituting a Capitalized Lease Obligation, conditional sale or other title retention agreement,
or other security title or encumbrance of any kind in respect of any property of such Person, or
upon the income or profits therefrom; (b) any arrangement, under which any property of such Person
is transferred, sequestered or otherwise identified for the purpose of subjecting the same to the
payment of Debt or performance of any other obligation in priority to the payment of the general,
unsecured creditors of such Person; (c) the filing of any financing statement under the Uniform
Commercial Code or its equivalent in any jurisdiction, other than a financing statement filed (i)
in respect of a lease not constituting a Capitalized Lease Obligation pursuant to Section 9-505 (or
a successor provision) of the Uniform Commercial Code or its equivalent as in effect in an
applicable jurisdiction or (ii) in connection with a sale or other disposition of accounts or other
assets not prohibited by this Agreement in a transaction not otherwise constituting or giving rise
to a Lien; and (d) any then enforceable agreement by such Person to grant, give or otherwise convey
any of the foregoing.

     “Loan” means a Revolving Loan, a Bid Rate Loan or a Swingline Loan.

     “Loan Document” means this Agreement, each Note, each Letter of Credit Document, the Guaranty
and each other document or instrument now or hereafter executed and delivered by a Loan Party in
connection with, pursuant to or relating to this Agreement.

     “Loan Party” means each of the Borrower and each other Person who guarantees all or a portion
of the Obligations and/or who pledges any collateral security to secure all or a portion of the
Obligations. Schedule 1.1.(A) sets forth the Loan Parties in addition to the Borrower as of the
Agreement Date.

     “Mandatorily Redeemable Stock” means, with respect to any Person, any Equity Interest of such
Person which by the terms of such Equity Interest (or by the terms of any security into which it is
convertible or for which it is exchangeable or exercisable), upon the happening of any event or
otherwise (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise (other than an Equity Interest which is redeemable solely in exchange for common stock or
other equivalent common Equity Interests), (b) is convertible into or exchangeable or exercisable
for Debt or Mandatorily Redeemable Stock, or (c) is redeemable at the option of the holder thereof,
in whole or in part (other than an Equity Interest which is redeemable solely in exchange for
common stock or other equivalent common Equity Interests), in each case on or prior to the date on
which all Revolving Loans are scheduled to be due and payable in full.

     “Marketable Multifamily REIT Preferred Interest” means a Multifamily REIT Preferred Interest
(a) having trading privileges on a national securities exchange or that is subject

-16-

 

to price quotations in the over-the-counter market and (b) not subject to restrictions on the sale,
transfer, assignment, hypothecation or other limitations, in each case where such restriction would
exceed 90 days from the time of purchase, that would (whether contractual or under Applicable Law)
otherwise prevent such Preferred Equity Interest from being freely transferable by such member of
the Consolidated Group; provided, however, that this limitation shall not apply to Preferred Equity
Interests that could be sold pursuant to an available exemption under the Securities Act.

     “Material Adverse Effect” means a materially adverse effect on (a) the business, assets,
liabilities, financial condition, or results of operations of the Borrower and its Subsidiaries
taken as a whole, (b) the ability of the Borrower or any other Loan Party to perform its
obligations under any Loan Document to which it is a party, (c) the validity or enforceability of
any of the Loan Documents, (d) the rights and remedies of the Lenders and the Agent under any of
the Loan Documents or (e) the timely payment of the principal of or interest on the Loans or other
amounts payable in connection therewith or the timely payment of all Reimbursement Obligations.

     “Material Contract” means any contract or other arrangement (other than Loan Documents),
whether written or oral, to which the Borrower, any Subsidiary or any other Loan Party is a party
as to which the breach, nonperformance, cancellation or failure to renew by any party thereto could
reasonably be expected to have a Material Adverse Effect.

     “Material Plan” means at any time a Plan or Plans having aggregate Unfunded Liabilities in
excess of $10,000,000.

     “Material Subsidiary” means any Subsidiary having assets equal to or greater than $10,000,000
in value.

     “Minority Interests” means any shares of stock (or other Equity Interests) of any class of a
Subsidiary (other than directors’ qualifying shares as required by law) that are not owned by the
Borrower and/or one or more Wholly Owned Subsidiaries. Minority Interests constituting Preferred
Equity Interests shall be valued at the voluntary or involuntary liquidation value of such
Preferred Equity Interests, whichever is greater, and by valuing common stock at the book value of
the capitalized surplus applicable thereto adjusted, if necessary, to reflect any changes from the
book value of such common stock required by the foregoing method of valuing Minority Interests in
Preferred Equity Interests.

     “Moody’s” means Moody’s Investors Service, Inc. and its successors.

     “Mortgage” means a mortgage, deed of trust, deed to secure debt or similar security instrument
made by a Person owning an interest in real property granting a Lien on such interest in real
property as security for the payment of Debt of such Person or another Person.

     “Multiemployer Plan” means at any time a multiemployer plan within the meaning of Section
4001(a)(3) of ERISA to which any member of the ERISA Group is then making or accruing an obligation
to make contributions or has within the preceding five plan years made

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contributions, including for these purposes any Person which ceased to be a member of the ERISA
Group during such five year period.

     “Multifamily Property” means a Property on which the improvements consist primarily of an
apartment community.

     “Multifamily REIT Preferred Interest” means a Preferred Equity Interest: (a) owned by a member
of the Consolidated Group and (b) issued by a REIT that (i) is not a Subsidiary and (ii) owns
primarily apartment communities.

     “Negative Pledge” means a provision of any agreement (other than this Agreement or any other
Loan Document) that prohibits or limits the creation or assumption of any Lien on any assets of a
Person or entitles another Person to obtain or claim the benefit of a Lien on any assets of such
Person.

     “Nonrecourse Indebtedness” means, with respect to a Person, Debt for borrowed money in respect
of which recourse for payment (except for customary exceptions for fraud, misapplication of funds,
environmental indemnities, and other similar exceptions to nonrecourse liability (but not
exceptions relating to bankruptcy, insolvency, receivership or other similar events)) is
contractually limited to specific assets of such Person encumbered by a Lien securing such Debt.

     “Note” means a Revolving Note, a Bid Rate Note or a Swingline Note.

     “Notice of Borrowing” means a notice in the form of Exhibit C to be delivered to the Agent
pursuant to Section 2.1.(b) evidencing the Borrower’s request for a borrowing of Revolving Loans.

     “Notice of Continuation” means a notice in the form of Exhibit D to be delivered to the Agent
pursuant to Section 2.9. evidencing the Borrower’s request for the Continuation of a LIBOR Loan.

     “Notice of Conversion” means a notice in the form of Exhibit E to be delivered to the Agent
pursuant to Section 2.10. evidencing the Borrower’s request for the Conversion of a Loan from one
Type to another Type.

     “Notice of Swingline Borrowing” means a notice in the form of Exhibit F to be delivered to the
Agent pursuant to Section 2.3. evidencing the Borrower’s request for a Swingline Loan.

     “Obligations” means, individually and collectively: (a) the aggregate principal balance of,
and all accrued and unpaid interest on, all Loans; (b) all Reimbursement Obligations and all other
Letter of Credit Liabilities; and (c) all other indebtedness, liabilities, obligations, covenants
and duties of the Borrower and the other Loan Parties owing to the Agent or any Lender of every
kind, nature and description, under or in respect of this Agreement or any of the other Loan
Documents, including, without limitation, the Fees and indemnification obligations, whether

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direct or indirect, absolute or contingent, due or not due, contractual or tortious, liquidated or
unliquidated, and whether or not evidenced by any promissory note.

     “Occupancy Rate” means, with respect to a Property at any time, the ratio, expressed as a
percentage, of (a) the number of rentable apartment units of such Property actually occupied by
tenants paying rent at market rates pursuant to binding leases as to which no monetary default has
occurred and is continuing to (b) the aggregate number of rentable units of such Property.

     “OFAC” means U.S. Department of the Treasury’s Office of Foreign Assets Control and any
successor Governmental Authority.

     “Participant” has the meaning given that term in Section 12.5.(c).

     “PBGC” means the Pension Benefit Guaranty Corporation and any successor agency.

     “Permitted Liens” means, as to any Person: (a) Liens securing taxes, assessments and other
charges or levies imposed by any Governmental Authority (excluding any Lien imposed pursuant to any
of the provisions of ERISA) or the claims of materialmen, mechanics, carriers, warehousemen or
landlords for labor, materials, supplies or rentals incurred in the ordinary course of business,
which are not at the time required to be paid or discharged under Section 7.6.; (b) Liens
consisting of deposits or pledges made, in the ordinary course of business, in connection with, or
to secure payment of, obligations under workers’ compensation, unemployment insurance or similar
Applicable Laws; (c) Liens consisting of encumbrances in the nature of zoning restrictions,
easements, and rights or restrictions of record on the use of real property, which do not
materially detract from the value of such property or impair the use thereof in the business of
such Person; and (d) Liens in existence as of the Agreement Date and set forth in Part II of
Schedule 6.1.(f).

     “Person” means an individual, corporation, partnership, limited liability company,
association, trust or unincorporated organization, or a government or any agency or political
subdivision thereof.

     “Plan” means at any time an employee pension benefit plan (other than a Multiemployer Plan)
which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412
of the Internal Revenue Code and either (a) is maintained, or contributed to, by any member of the
ERISA Group for employees of any member of the ERISA Group or (b) has at any time within the
preceding five years been maintained, or contributed to, by any Person which was at such time a
member of the ERISA Group for employees of any Person which was at such time a member of the ERISA
Group.

     “Post-Default Rate” means, in respect of any principal of any Loan or any other Obligation
that is not paid when due (whether at stated maturity, by acceleration, by optional or mandatory
prepayment or otherwise), a rate per annum equal to two percent (2.0%) plus the Base Rate as in
effect from time to time.

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     “Preferred Equity Interests” means, with respect to any Person, Equity Interests in such
Person which are entitled to preference or priority over any other Equity Interest in such Person
in respect of the payment of dividends or distribution of assets upon liquidation or both.

     “Prime Rate” means the rate of interest per annum announced publicly by the Lender acting as
the Agent as its prime rate from time to time. The Prime Rate is not necessarily the best or the
lowest rate of interest offered by the Lender acting as the Agent or any other Lender.

     “Principal Office” means the office of the Agent located at One Wachovia Center, Charlotte,
North Carolina, or such other office of the Agent as the Agent may designate in writing from time
to time.

     “Property” means any parcel of real property owned or leased (in whole or in part) or operated
by the Borrower, any Subsidiary or any Unconsolidated Affiliate of the Borrower and which is
located in a state of the United States of America or the District of Columbia.

     “Rating Agencies” means S&P and Moody’s.

     “Register” has the meaning given that term in Section 12.5.(f).

     “Regulatory Change” means, with respect to any Lender, any change effective after the
Agreement Date in Applicable Law (including without limitation, Regulation D of the Board of
Governors of the Federal Reserve System) or the adoption or making after such date of any
interpretation, directive or request applying to a class of banks, including such Lender, of or
under any Applicable Law (whether or not having the force of law and whether or not failure to
comply therewith would be unlawful) by any Governmental Authority or monetary authority charged
with the interpretation or administration thereof or compliance by any Lender with any request or
directive regarding capital adequacy.

     “Reimbursement Obligation” means the absolute, unconditional and irrevocable obligation of the
Borrower to reimburse the Agent for any drawing honored by the Agent under a Letter of Credit.

     “REIT” means a Person qualifying for treatment as a “real estate investment trust” under the
Internal Revenue Code.

     “Renovation Property” mean a Property on which the existing building or other improvements or
a portion thereof are undergoing renovation and redevelopment that will either (a) disrupt the
occupancy of at least 30% of the square footage of such Property or (b) temporarily reduce the
Consolidated Net Operating Income attributable to such Property by more that 30% as compared to the
immediately preceding comparable prior period. A Property shall cease to be a Renovation Property
upon the earliest to occur of (i) all improvements (other than tenant improvements on unoccupied
space) related to the redevelopment of such Property having been substantially completed and (ii)
once such Property has achieved an Occupancy Rate of 80.0% or more.

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     “Renovation Property Value” means for a Renovation Property, the sum of the following: (a)
the Consolidated Net Operating Income attributable to such Property for the two quarter period
annualized ending immediately prior to the commencement of such renovation and redevelopment
divided by 7.50%, plus (b) the cost of capital improvements made to such Property in connection
with such renovation and redevelopment not to exceed 35% of the amount determined in accordance
with the preceding clause (a); provided, however, (i) the value of (a) plus (b) above does not
exceed 80% of the Borrower’s good faith determination of the pro forma Consolidated Net Operating
Income of such Renovation Property (assuming the completion of all applicable renovation and
redevelopment) divided by 7.50% and (ii) 18 months following the commencement of such renovation
and redevelopment such property will cease to be a Renovation Property.

     “Requisite Lenders” means, as of any date, Lenders having at least 66 2/3% of the aggregate
amount of the Commitments (not held by Defaulting Lenders who are not entitled to vote), or, if the
Commitments have been terminated or reduced to zero, Lenders holding at least 66 2/3% of the
principal amount of the aggregate outstanding Loans and Letter of Credit Liabilities (not held by
Defaulting Lenders who are not entitled to vote).

     “Responsible Officer” means the chief financial officer, the Controller, any Senior Vice
President or the Treasurer.

     “Restricted Payment” means: (a) any dividend or other distribution, direct or indirect, on
account of any Equity Interest of any member of the Consolidated Group now or hereafter
outstanding, except a dividend payable solely in Equity Interests of identical class to the holders
of that class; (b) any redemption, conversion, exchange, retirement, sinking fund or similar
payment, purchase or other acquisition for value, direct or indirect, of any Equity Interest of any
member of the Consolidated Group now or hereafter outstanding; and (c) any payment made to retire,
or to obtain the surrender of, any outstanding warrants, options or other rights to acquire any
Equity Interests of any member of the Consolidated Group now or hereafter outstanding.

     “Revolving Loan” means a loan made by a Lender to the Borrower pursuant to Section 2.1.(a).

     “Revolving Note” has the meaning given that term in Section 2.11.(a).

     “Sanctioned Entity” means (a) an agency of the government of, (b) an organization directly or
indirectly controlled by, or (c) a Person resident in, in each case, a country that is subject to a
sanctions program identified on the list maintained by the OFAC and published from time to time, as
such program may be applicable to such agency, organization or Person.

     “Sanctioned Person” means a Person named on the list of Specially Designated Nationals or
Blocked Persons maintained by the OFAC as published from time to time.

     “Secured Debt” means, with respect to a Person as of any given date, the aggregate principal
amount of all Debt of such Person outstanding at such date that is secured in any

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manner by any Lien, and in the case of the Borrower, shall include (without duplication) the
Borrower’s pro rata share of the Secured Debt of its Unconsolidated Affiliates.

     “Securities Act” means the Securities Act of 1933, as amended from time to time, together with
all rules and regulations issued thereunder.

     “Solvent” means, when used with respect to any Person, that (a) the fair value and the fair
salable value of its assets (excluding any Debt due from any affiliate of such Person) are each in
excess of the fair valuation of its total liabilities (including all contingent liabilities
computed at the amount which, in light of all the facts and circumstances existing at such time,
represents the amount that could reasonably be expected to become an actual and matured liability);
(b) such Person is able to pay its debts or other obligations in the ordinary course as they
mature; and (c) such Person has capital not unreasonably small to carry on its business and all
business in which it proposes to be engaged.

     “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.
and its successors.

     “Stated Amount” means the amount available to be drawn by a beneficiary under a Letter of
Credit from time to time, as such amount may be increased or reduced from time to time in
accordance with the terms of such Letter of Credit.

     “Subsidiary” means, for any Person, any corporation, partnership or other entity of which at
least a majority of the securities or other ownership interests having by the terms thereof
ordinary voting power to elect a majority of the board of directors or other persons performing
similar functions of such corporation, partnership or other entity (without regard to the
occurrence of any contingency) is at the time directly or indirectly owned or controlled by such
Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of
such Person, and shall include all Persons the accounts of which consolidated with those of such
Person pursuant to GAAP.

     “Swingline Commitment” means the Swingline Lender’s obligation to make Swingline Loans
pursuant to Section 2.3. in an amount up to, but not exceeding, $35,000,000, as such amount may be
reduced from time to time in accordance with the terms hereof.

     “Swingline Lender” means Wachovia Bank, National Association, together with its successors and
assigns.

     “Swingline Loan” means a loan made by the Swingline Lender to the Borrower pursuant to Section
2.3.(a).

     “Swingline Note” means the promissory note of the Borrower payable to the order of the
Swingline Lender in a principal amount equal to the amount of the Swingline Commitment as
originally in effect and otherwise duly completed, substantially in the form of Exhibit G.

     “Taxes” has the meaning given that term in Section 3.12.

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     “Termination
Date” means May 31, 2008, or such later date to which the Termination Date may be
extended pursuant to Section 2.13.

     “Titled Agents” means each of the Joint Lead Arrangers, the Joint Bookrunners, the Syndication
Agent, the Documentation Agents, the Managing Agents and the Co-Agents and their respective
successors and permitted assigns.

     “Twin Coves” means that certain real property known as “The Twin Coves Apartments” located at
156-C Hamarlee Road, Glen Burnie, Maryland.

     “Type” with respect to any Revolving Loan, refers to whether such Loan is a LIBOR Loan or Base
Rate Loan.

     “Unconsolidated Affiliate” means, with respect to any Person, any other Person in whom such
Person holds an Investment, which Investment is accounted for in the financial statements of such
Person on an equity basis of accounting and whose financial results would not be consolidated under
GAAP with the financial results of such Person on the consolidated financial statements of such
Person.

     “Unencumbered Pool Asset” means any asset owned by a member of the Consolidated Group or an
Unconsolidated Affiliate of the Borrower and that satisfies all of the following requirements: (a)
such asset is either (i) a Multifamily Property, (ii) a Property that is developed but that is not
a Multifamily Property, (iii) a Development Property or a Renovation Property, (iv) raw land, (v)
promissory notes (vi) marketable securities (including Marketable Multifamily REIT Preferred
Interests) and (vii) Multifamily REIT Preferred Interests; (b) neither such asset, nor any interest
of any member of the Consolidated Group or Unconsolidated Affiliate therein, is subject to any Lien
(other than Permitted Liens of the types described in clauses (a) through (c) of the definition
thereof) or to any Negative Pledge; (c) if such asset is owned by Person other than the Borrower
(i) none of the Borrower’s direct or indirect ownership interest in such Person is subject to any
Lien (other than Permitted Liens of the types described in clauses (a) through (c) of the
definition thereof) or to any Negative Pledge; and (ii) the Borrower directly, or indirectly
through a Subsidiary, has the right to take the following actions without the need to obtain the
consent of any Person: (x) sell, transfer or otherwise dispose of such asset and (y) to create a
Lien on such asset as security for Debt of the Borrower or a Guarantor, as applicable; (d) if such
asset is owned by a Subsidiary or Unconsolidated Affiliate which is not a Guarantor (i) the
Borrower directly, or indirectly through other Subsidiaries, owns at least 51.0% of all outstanding
Equity Interests of such Person; and (ii) such Person is not an obligor with respect to any Debt
(other than unsecured Debt of the type set forth in clauses (c) and (d) of the definition of the
term Debt); provided, however, 1031 Properties will not be subject to the limitations contained in
subclauses (i) and (ii) of this clause (d); and (e) in the case of a Property, such Property is
free of all structural defects or major architectural deficiencies (if developed), title defects,
environmental conditions or other adverse matters which, individually or collectively, materially
impair the value of such Property.

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     “Unfunded Liabilities” means, with respect to any Plan at any time, the amount (if any) by
which (a) the value of all benefit liabilities under such Plan, determined on a plan termination
basis using the assumptions prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds
(b) the fair market value of all Plan assets allocable to such liabilities under Title IV of ERISA
(excluding any accrued but unpaid contributions), all determined as of the then most recent
valuation date for such Plan, but only to the extent that such excess represents a potential
liability of a member of the ERISA Group to the PBGC or any other Person under Title IV of ERISA.

     “Wachovia” means Wachovia Bank, National Association together with its successors and assigns.

     “Wholly Owned Subsidiary” means any Subsidiary of a Person in respect of which all of the
equity securities or other ownership interests (other than, in the case of a corporation,
directors’ qualifying shares) are at the time directly or indirectly owned or controlled by such
Person or one or more other Subsidiaries of such Person or by such Person and one or more other
Subsidiaries of such Person.

     “Woodside” means that certain real property known as “The Woodside Apartments” located at 7820
Parke West Drive, Glen Burnie, Maryland.

Section 1.2. General; References to Times.

     Unless otherwise indicated, all accounting terms, ratios and measurements shall be interpreted
or determined in accordance with GAAP; provided that, if at any time any change in GAAP would
affect the computation of any financial ratio or requirement set forth in any Loan Document, and
either the Borrower or the Requisite Lenders shall so request, the Agent, the Lenders and the
Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original
intent thereof in light of such change in GAAP (subject to the approval of the Requisite Lenders);
provided further that, until so amended, (i) such ratio or requirement shall continue to be
computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall provide
to the Agent and the Lenders financial statements and other documents required under this Agreement
or as reasonably requested hereunder setting forth a reconciliation between calculations of such
ratio or requirement made before and after giving effect to such change in GAAP. References in
this Agreement to “Sections”, “Articles”, “Exhibits” and “Schedules” are to sections, articles,
exhibits and schedules herein and hereto unless otherwise indicated. References in this Agreement
to any document, instrument or agreement (a) shall include all exhibits, schedules and other
attachments thereto, (b) shall include all documents, instruments or agreements issued or executed
in replacement thereof, to the extent permitted hereby and (c) shall mean such document, instrument
or agreement, or replacement or predecessor thereto, as amended, supplemented, restated or
otherwise modified as of the date of this Agreement and from time to time thereafter to the extent
not prohibited hereby and in effect at any given time. Wherever from the context it appears
appropriate, each term stated in either the singular or plural shall include the singular and
plural, and pronouns stated in the masculine, feminine or neuter gender shall include the
masculine, the feminine and the neuter. Unless explicitly set forth to the contrary, a reference
to “Subsidiary” means a Subsidiary of the Borrower or a Subsidiary of such Subsidiary and a
reference to an “Affiliate” means a reference

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to an Affiliate of the Borrower. Titles and captions of Articles, Sections, subsections and
clauses in this Agreement are for convenience only, and neither limit nor amplify the provisions of
this Agreement. Unless otherwise indicated, all references to time are references to Charlotte,
North Carolina time.

Article II. Credit Facility

Section 2.1. Revolving Loans.

     (a) Generally. Subject to the terms and conditions hereof, during the period from the
Effective Date to but excluding the Termination Date, each Lender severally and not jointly agrees
to make Revolving Loans to the Borrower in an aggregate principal amount at any one time
outstanding up to, but not exceeding, the amount of such Lender’s Commitment. Subject to the terms
and conditions of this Agreement, during the period from the Effective Date to but excluding the
Termination Date, the Borrower may borrow, repay and reborrow Revolving Loans hereunder.

     (b) Requesting Revolving Loans. The Borrower shall give the Agent notice pursuant to
a Notice of Borrowing or telephonic notice of each borrowing of Revolving Loans. Each Notice of
Borrowing shall be delivered to the Agent before 11:00 a.m. (i) in the case of LIBOR Loans, on the
date three Business Days prior to the proposed date of such borrowing and (ii) in the case of Base
Rate Loans, on the date one Business Day prior to the proposed date of such borrowing. Any such
telephonic notice shall include all information to be specified in a written Notice of Borrowing
and shall be promptly confirmed in writing by the Borrower pursuant to a Notice of Borrowing sent
to the Agent by telecopy on the same day of the giving of such telephonic notice. The Agent will
transmit by telecopy the Notice of Borrowing (or the information contained in such Notice of
Borrowing) to each Lender promptly upon receipt by the Agent. Each Notice of Borrowing or
telephonic notice of each borrowing shall be irrevocable once given and binding on the Borrower.

     (c) Disbursements of Revolving Loan Proceeds. No later than 2:00 p.m. on the date
specified in the Notice of Borrowing, each Lender will make available for the account of its
applicable Lending Office to the Agent at the Principal Office, in immediately available funds, the
proceeds of the Revolving Loan to be made by such Lender. With respect to Revolving Loans to be
made after the Effective Date, unless the Agent shall have been notified by any Lender prior to the
specified date of borrowing that such Lender does not intend to make available to the Agent the
Revolving Loan to be made by such Lender on such date, the Agent may assume that such Lender will
make the proceeds of such Revolving Loan available to the Agent on the date of the requested
borrowing as set forth in the Notice of Borrowing and the Agent may (but shall not be obligated
to), in reliance upon such assumption, make available to the Borrower the amount of such Revolving
Loan to be provided by such Lender. Subject to satisfaction of the applicable conditions set forth
in Article V. for such borrowing, the Agent will make the proceeds of such borrowing available to
the Borrower no later than 4:00 p.m. on the date and at the account specified by the Borrower in
such Notice of Borrowing.

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Section 2.2. Bid Rate Loans.

     (a) Bid Rate Loans. So long as the Borrower maintains an Investment Grade Rating, in
addition to borrowings of Revolving Loans, at any time during the period from the Effective Date to
but excluding the Termination Date the Borrower may, as set forth in this Section, request the
Lenders to make offers to make Bid Rate Loans to the Borrower in Dollars. The Lenders may, but
shall have no obligation to, make such offers and the Borrower may, but shall have no obligation
to, accept any such offers in the manner set forth in this Section.

     (b) Requests for Bid Rate Loans. When the Borrower wishes to request from the Lenders
offers to make Bid Rate Loans, it shall give the Agent notice (a “Bid Rate Quote Request”) so as to
be received no later than 10:00 a.m. on (x) the Business Day immediately preceding the date of
borrowing proposed therein, in the case of an Absolute Rate Auction and (y) the date four Business
Days prior to the proposed date of borrowing, in the case of a LIBOR Auction. The Agent shall
deliver to each Lender a copy of each Bid Rate Quote Request promptly upon receipt thereof by the
Agent. The Borrower may request offers to make Bid Rate Loans for up to three (3) different
Interest Periods in each Bid Rate Quote Request; provided that the request for each separate
Interest Period shall be deemed to be a separate Bid Rate Quote Request for a separate borrowing (a
“Bid Rate Borrowing”). Each Bid Rate Quote Request shall be substantially in the form of Exhibit H
and shall specify as to each Bid Rate Borrowing:

     (i) the proposed date of such Bid Rate Borrowing, which shall be a Business Day;

     (ii) the aggregate amount of such Bid Rate Borrowing, which (x) shall be in the minimum
amount of $1,000,000 and integral multiples of $500,000 and (y) shall not cause any of the
limits specified in Section 2.15. to be violated;

     (iii) whether the Bid Rate Quote Request is for LIBOR Margin Loans or Absolute Rate
Loans; and

     (iv) the duration of the Interest Period applicable thereto, which shall not extend
beyond the Termination Date.

Except as otherwise provided in this subsection (b), no Bid Rate Quote Request shall be given
within five Business Days (or such other number of days as the Borrower and the Agent, with the
consent of the Requisite Lenders, may agree) of the giving of any other Bid Rate Quote Request.

     (c) Bid Rate Quotes.

     (i) Each Lender may submit one or more Bid Rate Quotes, each containing an offer to
make a Bid Rate Loan in response to any Bid Rate Quote Request; provided that, if the
Borrower’s request under Section 2.2.(b) specified more than one Interest Period, such
Lender may make a single submission containing one or more Bid Rate Quotes for each such
Interest Period. Each Bid Rate Quote must be submitted to the Agent not later than 10:00
a.m. (x) on the proposed date of borrowing, in the case of an Absolute Rate Auction and (y)
on the date three Business days prior to the proposed date of borrowing,

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in the case of a LIBOR Auction; provided that the Lender then acting as Agent may submit a
Bid Rate Quote only if it notifies the Borrower of the terms of the offer contained therein
not later than 9:00 a.m. (x) on the proposed date of such borrowing, in the case of an
Absolute Rate Auction and (y) on the date three Business Days prior to the proposed date of
borrowing, in the case of a LIBOR Auction. Subject to Articles V. and X., any Bid Rate
Quote so made shall be irrevocable except with the consent of the Agent given at the request
of the Borrower. Any Bid Rate Loan may be funded by a Lender’s Designated Lender (if any)
as provided in Section 12.5.(e), however such Lender shall not be required to specify in its
Bid Rate Quote whether such Bid Rate Loan will be funded by such Designated Lender.

     (ii) Each Bid Rate Quote shall be substantially in the form of Exhibit I and shall
specify:

     (A) the proposed date of borrowing and the Interest Period therefor;

     (B) the principal amount of the Bid Rate Loan for which each such offer is
being made; provided that the aggregate principal amount of all Bid Rate Loans for
which a Lender submits Bid Rate Quotes (x) may be greater or less than the
Commitment of such Lender but (y) shall not exceed the principal amount of the Bid
Rate Borrowing for a particular Interest Period for which offers were requested;

     (C) in the case of an Absolute Rate Auction, the rate of interest per annum
(rounded upwards, if necessary, to the nearest 1/10,000th of 1%) offered for each
such Bid Rate Loan (the “Absolute Rate”);

     (D) in the case of a LIBOR Auction, the margin above or below applicable LIBOR
(the “LIBOR Margin”) offered for each such LIBOR Margin Loan, expressed as a
percentage (rounded upwards, if necessary, to the nearest 1/1,000th of 1%) to be
added to (or subtracted from) the applicable LIBOR; and

     (E) the identity of the quoting Lender.

Unless otherwise agreed by the Agent and the Borrower, no Bid Rate Quote shall contain
qualifying, conditional or similar language or propose terms other than or in addition to
those set forth in the applicable Bid Rate Quote Request and, in particular, no Bid Rate
Quote may be conditioned upon acceptance by the Borrower of all (or some specified minimum)
of the principal amount of the Bid Rate Loan for which such Bid Rate Quote is being made.

     (d) Notification by Agent. The Agent shall, as promptly as practicable after the Bid
Rate Quotes are submitted (but in any event not later than 10:30 a.m. on the proposed date of
borrowing in the case of an Absolute Rate Auction, or on the date three Business Days prior to the
proposed date of borrowing, in the case of a LIBOR Auction), notify the Borrower of the terms (i)
of any Bid Rate Quote submitted by a Lender that is in accordance with Section 2.2.(c)

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and (ii) of any Bid Rate Quote that amends, modifies or is otherwise inconsistent with a previous
Bid Rate Quote submitted by such Lender with respect to the same Bid Rate Quote Request. Any such
subsequent Bid Rate Quote shall be disregarded by the Agent unless such subsequent Bid Rate Quote
is submitted solely to correct a manifest error in such former Bid Rate Quote. The Agent’s notice
to the Borrower shall specify (A) the aggregate principal amount of the Bid Rate Borrowing for
which offers have been received and (B) the principal amounts and Absolute Rates or LIBOR Margins,
as applicable, so offered by each Lender (identifying the Lender that made each Bid Rate Quote).

     (e) Acceptance by Borrower.

     (i) Not later than 11:00 a.m. (x) on the proposed date of borrowing, in the case of an
Absolute Rate Auction and (y) on the date three Business Days prior to the proposed date of
borrowing, in the case of a LIBOR Auction, the Borrower shall notify the Agent of its
acceptance or nonacceptance of the Bid Rate Quotes so notified to it pursuant to Section
2.2.(d) which notice shall be in the form of Exhibit J. In the case of acceptance, such
notice shall specify the aggregate principal amount of Bid Rate Quotes for each Interest
Period that are accepted. The failure of the Borrower to give such notice by such time
shall constitute nonacceptance. The Agent shall promptly notify each affected Lender. The
Borrower may accept any Bid Rate Quote in whole or in part; provided that:

     (A) the aggregate principal amount of each Bid Rate Borrowing may not exceed
the applicable amount set forth in the related Bid Rate Quote Request;

     (B) the aggregate principal amount of each Bid Rate Borrowing shall comply with
the provisions of Section 3.5. but shall not cause the limits specified in Section
2.15. to be violated;

     (C) acceptance of Bid Rate Quotes may be made only in ascending order of
Absolute Rates or LIBOR Margins, as applicable, in each case beginning with the
lowest rate so offered;

     (D) the Borrower may not accept any Bid Rate Quote that fails to comply with
Section 2.2.(c) or otherwise fails to comply with the requirements of this
Agreement); and

     (E) any acceptance in part shall be in a minimum amount of $1,000,000 and
integral multiples of $500,000 in excess thereof.

     (ii) If Bid Rate Quotes are made by two or more Lenders with the same Absolute Rates or
LIBOR Margins, as applicable, for a greater aggregate principal amount than the amount in
respect of which Bid Rate Quotes are permitted to be accepted for the related Interest
Period, the principal amount of Bid Rate Loans in respect of which such Bid Rate Quotes are
accepted shall be allocated by the Agent among such Lenders in proportion to the aggregate
principal amount of such Bid Rate Quotes. Determinations

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by the Agent of the amounts of Bid Rate Loans shall be conclusive in the absence of manifest
error.

     (f) Obligation to Make Bid Rate Loans. The Agent shall promptly (and in any event not
later than (x) 12:00 noon on the proposed date of borrowing of Absolute Rate Loans and (y) on the
date three Business Days prior to the proposed date of borrowing of LIBOR Margin Loans) notify each
Lender whose Bid Rate Quote has been accepted and the amount and rate thereof. In addition, the
Agent shall promptly notify each Lender submitting a Bid Rate Quote the of the range of Bid Rate
Quotes accepted. A Lender who is notified that it has been selected to make a Bid Rate Loan may
designate its Designated Lender (if any) to fund such Bid Rate Loan on its behalf, as described in
Section 12.5.(e). Any Designated Lender which funds a Bid Rate Loan shall on and after the time of
such funding become the obligee under such Bid Rate Loan and be entitled to receive payment thereof
when due. No Lender shall be relieved of its obligation to fund a Bid Rate Loan, and no Designated
Lender shall assume such obligation, prior to the time the applicable Bid Rate Loan is funded. Any
Lender whose offer to make any Bid Rate Loan has been accepted shall, not later than 1:30 p.m. on
the date specified for the making of such Loan, make the amount of such Loan available to the Agent
at its Principal Office in immediately available funds, for the account of the Borrower. The
amount so received by the Agent shall, subject to the terms and conditions of this Agreement, be
made available to the Borrower no later than 2:00 p.m. on such date by depositing the same, in
immediately available funds, in an account of the Borrower designated by the Borrower.

     (g) No Effect on Commitment. Except for the purpose and to the extent expressly
stated in Sections 2.12. and 2.15., the amount of any Bid Rate Loan made by any Lender shall not
constitute a utilization of such Lender’s Commitment.

Section 2.3. Swingline Loans.

     (a) Swingline Loans. Subject to the terms and conditions hereof, during the period
from the Effective Date to but excluding the Termination Date, the Swingline Lender agrees to make
Swingline Loans to the Borrower in an aggregate principal amount at any one time outstanding up to,
but not exceeding, the amount of the Swingline Commitment. If at any time the aggregate principal
amount of the Swingline Loans outstanding at such time exceeds the Swingline Commitment in effect
at such time, the Borrower shall immediately pay the Agent for the account of the Swingline Lender
the amount of such excess. Subject to the terms and conditions of this Agreement, the Borrower may
borrow, repay and reborrow Swingline Loans hereunder.

     (b) Procedure for Borrowing Swingline Loans. The Borrower shall give the Agent and
the Swingline Lender notice pursuant to a Notice of Swingline Borrowing or telephonic notice of
each borrowing of a Swingline Loan. Each Notice of Swingline Borrowing shall be delivered to the
Swingline Lender no later than 1:00 p.m. on the proposed date of such borrowing. Any such notice
given telephonically shall include all information to be specified in a written Notice of Swingline
Borrowing and shall be promptly confirmed in writing by the Borrower pursuant to a Notice of
Swingline Borrowing sent to the Swingline Lender by telecopy on the same day of the giving of such
telephonic notice. On the date of the requested Swingline Loan and subject to satisfaction of the
applicable conditions set forth in Article V. for such

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borrowing, the Swingline Lender will make the proceeds of such Swingline Loan available to the
Borrower in Dollars, in immediately available funds, at the account specified by the Borrower in
the Notice of Swingline Borrowing not later than 4:00 p.m. on such date.

     (c) Interest. Swingline Loans shall bear interest at a per annum rate equal to the
Base Rate plus the Applicable Margin for Base Rate Loans (or at such other rate or rates as
the Borrower and the Swingline Lender may agree from time to time in writing). Interest payable on
Swingline Loans is solely for the account of the Swingline Lender. All accrued and unpaid interest
on Swingline Loans shall be payable on the dates and in the manner provided in Section 2.5. with
respect to interest on Base Rate Loans (except as the Swingline Lender and the Borrower may
otherwise agree in writing in connection with any particular Swingline Loan).

     (d) Swingline Loan Amounts, Etc. Each Swingline Loan shall be in the minimum amount
of $1,000,000 and integral multiples of $500,000 or such other minimum amounts agreed to by the
Swingline Lender and the Borrower. Any voluntary prepayment of a Swingline Loan must be in
integral multiples of $100,000 or the aggregate principal amount of all outstanding Swingline Loans
(or such other minimum amounts upon which the Swingline Lender and the Borrower may agree) and in
connection with any such prepayment, the Borrower must give the Swingline Lender prior written
notice thereof no later than 1:00 p.m. on the date of such prepayment. The Swingline Loans shall,
in addition to this Agreement, be evidenced by the Swingline Note.

     (e) Repayment and Participations of Swingline Loans. The Borrower agrees to repay
each Swingline Loan within one Business Day of demand therefor by the Swingline Lender and in any
event, within 30 Business Days after the date such Swingline Loan was made. Notwithstanding the
foregoing, the Borrower shall repay the entire outstanding principal amount of, and all accrued but
unpaid interest on, the Swingline Loans on the Termination Date (or such earlier date as the
Swingline Lender and the Borrower may agree in writing). In lieu of demanding repayment of any
outstanding Swingline Loan from the Borrower, the Swingline Lender may, on behalf of the Borrower
(which hereby irrevocably directs the Swingline Lender to act on its behalf), request a borrowing
of Base Rate Loans from the Lenders in an amount equal to the principal balance of such Swingline
Loan. The amount limitations of Section 3.5.(a) shall not apply to any borrowing of Base Rate
Loans made pursuant to this subsection. The Swingline Lender shall give notice to the Agent of any
such borrowing of Base Rate Loans not later than 12:00 noon on the proposed date of such borrowing
and the Agent shall give prompt notice of such borrowing to the Lenders and the Borrower. No later
than 3:00 p.m. on such date, each Lender will make available to the Agent at the Principal Office
for the account of Swingline Lender in immediately available funds, the proceeds of the Base Rate
Loan to be made by such Lender and, to the extent of such Base Rate Loan, such Lender’s
participation in the Swingline Loan so repaid shall be deemed to be funded by such Base Rate Loan.
The Agent shall pay the proceeds of such Base Rate Loans to the Swingline Lender, which shall apply
such proceeds to repay such Swingline Loan. At the time each Swingline Loan is made, each Lender
shall automatically (and without any further notice or action) be deemed to have purchased from the
Swingline Lender, without recourse or warranty, an undivided interest and participation to the
extent of such Lender’s Commitment Percentage in such Swingline Loan. If the Lenders are
prohibited from making Loans required to be made under this subsection for any reason,

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including without limitation, the occurrence of any Default or Event of Default described in
Sections 10.1.(f) or 10.1.(g), each Lender severally agrees to pay to the Agent for the account of
the Swingline Lender in respect of such participation the amount of such Lender’s Commitment
Percentage of each outstanding Swingline Loan. If such amount is not in fact made available to the
Swingline Lender by any Lender, the Swingline Lender shall be entitled to recover such amount on
demand from such Lender, together with accrued interest thereon for each day from the date of
demand thereof, at the Federal Funds Rate. If such Lender does not pay such amount forthwith upon
the Swingline Lender’s demand therefor, and until such time as such Lender makes the required
payment, the Swingline Lender shall be deemed to continue to have outstanding Swingline Loans in
the amount of such unpaid participation obligation for all purposes of the Loan Documents (other
than those provisions requiring the other Lenders to purchase a participation therein). Further,
such Lender shall be deemed to have assigned any and all payments made of principal and interest on
its Loans, and any other amounts due to it hereunder, to the Swingline Lender to fund Swingline
Loans in the amount of the participation in Swingline Loans that such Lender failed to purchase
pursuant to this Section until such amount has been purchased (as a result of such assignment or
otherwise). A Lender’s obligation to make payments in respect of a participation in a Swingline
Loan shall be absolute and unconditional and shall not be affected by any circumstance whatsoever,
including without limitation, (i) any claim of setoff, counterclaim, recoupment, defense or other
right which such Lender or any other Person may have or claim against the Agent, the Swingline
Lender or any other Person whatsoever, (ii) the occurrence or continuation of a Default or Event of
Default (including without limitation, any of the Defaults or Events of Default described in
Sections 10.1.(f) or 10.1.(g)) or the termination of any Lender’s Commitment, (iii) the existence
(or alleged existence) of an event or condition which has had or could have a Material Adverse
Effect, (iv) any breach of any Loan Document by the Agent, any Lender or the Borrower or (v) any
other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.

Section 2.4. Letters of Credit.

     (a) Letters of Credit. Subject to the terms and conditions of this Agreement, the
Agent, on behalf of the Lenders, agrees to issue for the account of the Borrower during the period
from and including the Effective Date to, but excluding, the date 30 days prior to the Termination
Date one or more letters of credit (each a “Letter of Credit”) up to a maximum aggregate Stated
Amount at any one time outstanding not to exceed the L/C Commitment Amount.

     (b) Terms of Letters of Credit. At the time of issuance, the amount, form, terms and
conditions of each Letter of Credit, and of any drafts or acceptances thereunder, shall be subject
to approval by the Agent and the Borrower. Notwithstanding the foregoing, in no event may the
expiration date of any Letter of Credit extend beyond the earlier of (i) the date one year from its
date of issuance or (ii) the Termination Date; provided, however, a Letter of Credit may contain a
provision providing for the automatic extension of the expiration date in the absence of a notice
of non-renewal from the Agent but in no event shall any such provision permit the extension of the
expiration date of such Letter of Credit beyond the Termination Date; provided, further, that a
Letter of Credit that contains an automatic extension provision may provide for an extension of its
expiration date to a date not more than one year beyond the Termination Date so long as the

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Borrower delivers to the Agent for the benefit of the Lenders no later than 20 days prior to the
Termination Date (A) either (1) cash collateral for such Letter of Credit on terms acceptable to
the Agent, (2) a backup letter of credit having terms acceptable to the Agent and issued by a
domestic financial institution having a rating assigned by a Rating Agency to its senior unsecured
long term indebtedness of AA/Aa2 or (3) other collateral satisfactory to the Agent and all of the
Lenders and (B) a reimbursement agreement in form and substance acceptable to the Agent and such
other documents requested by the Agent evidencing the Borrower’s reimbursement obligations in
respect of such Letter of Credit.

     (c) Requests for Issuance of Letters of Credit. The Borrower shall give the Agent
written notice (or telephonic notice promptly confirmed in writing) at least 5 Business Days prior
to the requested date of issuance of a Letter of Credit, such notice to describe in reasonable
detail the proposed terms of such Letter of Credit and the nature of the transactions or
obligations proposed to be supported by such Letter of Credit, and in any event shall set forth
with respect to such Letter of Credit the proposed (i) Stated Amount, (ii) the beneficiary, and
(iii) the expiration date. The Borrower shall also execute and deliver such customary letter of
credit application forms as requested from time to time by the Agent. Provided the Borrower has
given the notice prescribed by the first sentence of this subsection and subject to the other terms
and conditions of this Agreement, including the satisfaction of any applicable conditions precedent
set forth in Article V., the Agent shall issue the requested Letter of Credit on the requested date
of issuance for the benefit of the stipulated beneficiary. Upon the written request of the
Borrower, the Agent shall deliver to the Borrower a copy of each issued Letter of Credit within a
reasonable time after the date of issuance thereof. To the extent any term of a Letter of Credit
Document is inconsistent with a term of any Loan Document, the term of such Loan Document shall
control.

     (d) Reimbursement Obligations. Upon receipt by the Agent from the beneficiary of a
Letter of Credit of any demand for payment under such Letter of Credit, the Agent shall promptly
notify the Borrower of the amount to be paid by the Agent as a result of such demand and the date
on which payment is to be made by the Agent to such beneficiary in respect of such demand;
provided, however, the Agent’s failure to give, or delay in giving, such notice
shall not discharge the Borrower in any respect from the applicable Reimbursement Obligation up to
the Stated Amount of such Letter of Credit. The Borrower hereby unconditionally and irrevocably
agrees to pay and reimburse the Agent for the amount of each demand for payment under such Letter
of Credit up to the Stated Amount of such Letter of Credit on or prior to the date on which payment
is to be made by the Agent to the beneficiary thereunder, without presentment, demand, protest or
other formalities of any kind (other than notice as provided in this subsection). Upon receipt by
the Agent of any payment in respect of any Reimbursement Obligation, the Agent shall promptly pay
to each Lender that has acquired a participation therein under the second sentence of Section
2.4.(i) such Lender’s Commitment Percentage of such payment.

     (e) Manner of Reimbursement. Upon its receipt of a notice referred to in the
immediately preceding subsection (d), the Borrower shall advise the Agent whether or not the
Borrower intends to borrow hereunder to finance its obligation to reimburse the Agent for the
amount of the related demand for payment and, if it does, the Borrower shall submit a timely
request for such borrowing as provided in the applicable provisions of this Agreement. If the
Borrower fails to so advise the Agent, or if the Borrower fails to reimburse the Agent for a

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demand for payment under a Letter of Credit by the date of such payment, then (i) if the applicable
conditions contained in Article V. would permit the making of Revolving Loans, the Borrower shall
be deemed to have requested a borrowing of Revolving Loans (which shall be Base Rate Loans) in an
amount equal to the unpaid Reimbursement Obligation and the Agent shall give each Lender prompt
notice of the amount of the Revolving Loan to be made available to the Agent not later than 1:00
p.m. and (ii) if such conditions would not permit the making of Revolving Loans, the provisions of
subsection (j) of this Section shall apply. The limitations of Section 3.5.(a) shall not apply to
any borrowing of Base Rate Loans under this subsection.

     (f) Effect of Letters of Credit on Commitments. Upon the issuance by the Agent of any
Letter of Credit and until such Letter of Credit shall have expired or been terminated, the
Commitment of each Lender shall be deemed to be utilized for all purposes of this Agreement in an
amount equal to the product of (i) such Lender’s Commitment Percentage and (ii) the sum of (A) the
Stated Amount of such Letter of Credit plus (B) any related Reimbursement Obligations then
outstanding.

     (g) Agent’s Duties Regarding Letters of Credit; Unconditional Nature of Reimbursement
Obligations. In examining documents presented in connection with drawings under Letters of
Credit and making payments under such Letters of Credit against such documents, the Agent shall
only be required to use the same standard of care as it uses in connection with examining documents
presented in connection with drawings under letters of credit in which it has not sold
participations and making payments under such letters of credit. The Borrower assumes all risks of
the acts and omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of
such Letters of Credit. In furtherance and not in limitation of the foregoing, neither the Agent
nor any of the Lenders shall be responsible for (i) the form, validity, sufficiency, accuracy,
genuineness or legal effects of any document submitted by any party in connection with the
application for and issuance of or any drawing honored under any Letter of Credit even if it should
in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged;
(ii) the validity or sufficiency of any instrument transferring or assigning or purporting to
transfer or assign any Letter of Credit, or the rights or benefits thereunder or proceeds thereof,
in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) failure of
the beneficiary of any Letter of Credit to comply fully with conditions required in order to draw
upon such Letter of Credit; (iv) errors, omissions, interruptions or delays in transmission or
delivery of any messages, by mail, cable, telex, telecopy or otherwise, whether or not they be in
cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission
or otherwise of any document required in order to make a drawing under any Letter of Credit, or of
the proceeds thereof; (vii) the misapplication by the beneficiary of any Letter of Credit, or the
proceeds of any drawing under any Letter of Credit; or (viii) any consequences arising from causes
beyond the control of the Agent or the Lenders. None of the above shall affect, impair or prevent
the vesting of any of the Agent’s or any Lender’s rights or powers hereunder. Any action taken or
omitted to be taken by the Agent under or in connection with any Letter of Credit, if taken or
omitted in the absence of gross negligence or willful misconduct, shall not create against the
Agent or any Lender any liability to the Borrower or any Lender. In this connection, the
obligation of the Borrower to reimburse the Agent for any drawing made under any Letter of Credit
shall be absolute, unconditional and irrevocable and shall be paid strictly in accordance with the
terms of this Agreement and any

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other applicable Letter of Credit Document under all circumstances whatsoever, including without
limitation, the following circumstances: (A) any lack of validity or enforceability of any Letter
of Credit Document or any term or provisions therein; (B) any amendment or waiver of or any consent
to departure from all or any of the Letter of Credit Documents; (C) the existence of any claim,
setoff, defense or other right which the Borrower may have at any time against the Agent, any
Lender, any beneficiary of a Letter of Credit or any other Person, whether in connection with this
Agreement, the transactions contemplated hereby or in the Letter of Credit Documents or any
unrelated transaction; (D) any breach of contract or dispute between the Borrower, the Agent, any
Lender or any other Person; (E) any demand, statement or any other document presented under a
Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein or made in connection therewith being untrue or inaccurate in any respect
whatsoever; (F) any non-application or misapplication by the beneficiary of a Letter of Credit of
the proceeds of any drawing under such Letter of Credit; (G) payment by the Agent under any Letter
of Credit against presentation of a draft or certificate which does not strictly comply with the
terms of such Letter of Credit; and (H) any other act, omission to act, delay or circumstance
whatsoever that might, but for the provisions of this Section, constitute a legal or equitable
defense to or discharge of the Borrower’s Reimbursement Obligations. Notwithstanding anything to
the contrary contained in this Section or Section 12.9., but not in limitation of the Borrower’s
unconditional obligation to reimburse the Agent for any drawing made under a Letter of Credit as
provided in this Section, the Borrower shall have no obligation to indemnify the Agent or any
Lender in respect of any liability incurred by the Agent or a Lender arising solely out of the
gross negligence or willful misconduct of the Agent or a Lender in respect of a Letter of Credit as
actually and finally determined by a court of competent jurisdiction. Except as otherwise provided
in this Section, nothing in this Section shall affect any rights the Borrower may have with respect
to the gross negligence or willful misconduct of the Agent or any Lender with respect to any Letter
of Credit.

     (h) Amendments, Etc. The issuance by the Agent of any amendment, supplement or other
modification to any Letter of Credit shall be subject to the same conditions applicable under this
Agreement to the issuance of new Letters of Credit (including, without limitation, that the request
therefor be made through the Agent), and no such amendment, supplement or other modification shall
be issued unless either (i) the respective Letter of Credit affected thereby would have complied
with such conditions had it originally been issued hereunder in such amended, supplemented or
modified form or (ii) the Requisite Lenders (or such other number of Lenders as is required by
Section 12.6.) shall have consented thereto. In connection with any such amendment, supplement or
other modification, the Borrower shall pay the Fees, if any, payable under the last sentence of
Section 3.6.(b).

     (i) Lenders’ Participation in Letters of Credit. Immediately upon the issuance by the
Agent of any Letter of Credit each Lender shall be deemed to have irrevocably and unconditionally
purchased and received from the Agent, without recourse or warranty, an undivided interest and
participation to the extent of such Lender’s Commitment Percentage of the liability of the Agent
with respect to such Letter of Credit and each Lender thereby shall absolutely, unconditionally and
irrevocably assume, as primary obligor and not as surety, and shall be unconditionally obligated to
the Agent to pay and discharge when due, such Lender’s Commitment Percentage of the Agent’s
liability under such Letter of Credit. In addition, upon

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the making of each payment by a Lender to the Agent in respect of any Letter of Credit pursuant to
the immediately following subsection (j), such Lender shall, automatically and without any further
action on the part of the Agent or such Lender, acquire (i) a participation in an amount equal to
such payment in the Reimbursement Obligation owing to the Agent by the Borrower in respect of such
Letter of Credit and (ii) a participation in a percentage equal to such Lender’s Commitment
Percentage in any interest or other amounts payable by the Borrower in respect of such
Reimbursement Obligation (other than the Fees payable to the Agent pursuant to the third and last
sentences of Section 3.6.(b)).

     (j) Payment Obligation of Lenders. Each Lender severally agrees to pay to the Agent
on demand in immediately available funds in Dollars the amount of such Lender’s Commitment
Percentage of each drawing paid by the Agent under each Letter of Credit to the extent such amount
is not reimbursed by the Borrower pursuant to Section 2.4.(d); provided, however, that in respect
of any drawing under any Letter of Credit, the maximum amount that any Lender shall be required to
fund, whether as a Revolving Loan or as a participation, shall not exceed such Lender’s Commitment
Percentage of such drawing. If the notice referenced in the second sentence of Section 2.4.(e) is
received by a Lender not later than 11:00 a.m., then such Lender shall make such payment available
to the Agent not later than 2:00 p.m. on the date of demand therefore; otherwise, such payment
shall be made available to the Agent not later than 1:00 p.m. on the next succeeding Business Day.
Each such Lender’s obligation to make such payments to the Agent under this subsection, and the
Agent’s right to receive the same, shall be absolute, irrevocable and unconditional and shall not
be affected in any way by any circumstance whatsoever, including without limitation, (i) the
failure of any other Lender to make its payment under this subsection, (ii) the financial condition
of the Borrower or any other Loan Party, (iii) the existence of any Default or Event of Default,
including any Event of Default described in Section 10.1.(f) or 10.1.(g) or (iv) the termination of
the Commitments. Each such payment to the Agent shall be made without any offset, abatement,
withholding or deduction whatsoever.

     (k) Information to Lenders. Upon the request of any Lender from time to time, the
Agent shall deliver to such Lender information reasonably requested by such Lender with respect to
each Letter of Credit then outstanding. Other than as set forth in this subsection, the Agent
shall have no duty to notify the Lenders regarding the issuance or other matters regarding Letters
of Credit issued hereunder. The failure of the Agent to perform its requirements under this
subsection shall not relieve any Lender from its obligations under Section 2.4.(j).

Section 2.5. Rates and Payment of Interest on Loans.

     (a) Rates. The Borrower promises to pay to the Agent for the account of each Lender
interest on the unpaid principal amount of each Loan made by such Lender for the period from and
including the date of the making of such Loan to but excluding the date such Loan shall be paid in
full, at the following per annum rates:

     (i) during such periods as such Loan is a Base Rate Loan, at the Base Rate (as in
effect from time to time) plus the Applicable Margin;

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     (ii) during such periods as such Loan is a LIBOR Loan, at the Adjusted Eurodollar Rate
for such Loan for the Interest Period therefor plus the Applicable Margin;

     (iii) if such Loan is an Absolute Rate Loan, at the Absolute Rate for such Loan, as
applicable, for the Interest Period therefor quoted by the Lender making such Loan in
accordance with Section 2.2.; and

     (iv) if such Loan is a LIBOR Margin Loan, at LIBOR for such Loan for the Interest
Period therefor, plus (or minus) the LIBOR Margin quoted by the Lender making such Loan in
accordance with Section 2.2.

Notwithstanding the foregoing, during the continuance of an Event of Default, the Borrower shall
pay to the Agent for the account of each Lender interest at the Post-Default Rate on the
outstanding principal amount of any Loan made by such Lender, on all Reimbursement Obligations and
on any other amount payable by the Borrower hereunder or under the Notes held by such Lender to or
for the account of such Lender (including without limitation, accrued but unpaid interest to the
extent permitted under Applicable Law).

     (b) Payment of Interest. Accrued and unpaid interest on each Loan shall be payable
(i) in the case of a Base Rate Loan, monthly in arrears on the first Business Day of each calendar
month, (ii) in the case of a LIBOR Loan or a Bid Rate Loan, in arrears on the last day of each
Interest Period therefor, and, if such Interest Period is longer than three months, at three-month
intervals following the first day of such Interest Period, and (iii) in the case of any Loan, in
arrears upon the payment, prepayment or Continuation thereof or the Conversion of such Loan to a
Loan of another Type (but only on the principal amount so paid, prepaid, Continued or Converted).
Interest payable at the Post-Default Rate shall be payable from time to time on demand. Promptly
after the determination of any interest rate provided for herein or any change therein, the Agent
shall give notice thereof to the Lenders to which such interest is payable and to the Borrower.
All determinations by the Agent of an interest rate hereunder shall be conclusive and binding on
the Lenders and the Borrower for all purposes, absent manifest error.

Section 2.6. Number of Interest Periods.

     There may be no more than 10 different Interest Periods for LIBOR Loans and Bid Rate Loans,
collectively, outstanding at the same time (for which purpose Interest Periods described in
different lettered clauses of the definition of the term “Interest Period” shall be deemed to be
different Interest Periods even if they are coterminous).

Section 2.7. Repayment of Loans.

     (a) Revolving Loans. The Borrower shall repay the entire outstanding principal amount
of, and all accrued but unpaid interest on, the Revolving Loans on the Termination Date.

     (b) Bid Rate Loans. The Borrower shall repay the entire outstanding principal amount
of, and all accrued but unpaid interest on, each Bid Rate Loan on the last day of the Interest
Period of such Bid Rate Loan.

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Section 2.8. Prepayments.

     (a) Optional. Subject to Section 4.4., the Borrower may prepay any Loan (other than a
Bid Rate Loan) at any time without premium or penalty. Bid Rate Loans may not be prepaid at the
option of the Borrower. The Borrower shall give the Agent at least one Business Day’s prior
written notice of the prepayment of any Revolving Loan and the Agent shall give each Lender notice
of any such prepayment promptly upon receipt of such notice from Borrower.

     (b) Mandatory. If at any time the aggregate principal amount of all outstanding
Revolving Loans, together with the aggregate amount of all Letter of Credit Liabilities, the
aggregate principal amount of all outstanding Bid Rate Loans and the aggregate principal amount of
all outstanding Swingline Loans, exceeds the aggregate amount of the Commitments in effect at such
time, the Borrower shall immediately pay to the Agent for the accounts of the Lenders the amount of
such excess. Such payment shall be applied to pay all amounts of principal outstanding on the
Loans and any Reimbursement Obligations pro rata in accordance with Section 3.2. and if any Letters
of Credit are outstanding at such time the remainder, if any, shall be deposited into the
Collateral Account for application to any Reimbursement Obligations. If the Borrower is required
to pay any outstanding LIBOR Loans or Bid Rate Loans by reason of this Section prior to the end of
the applicable Interest Period therefor, the Borrower shall pay all amounts due under Section 4.4.

Section 2.9. Continuation.

     So long as no Default or Event of Default shall exist, the Borrower may on any Business Day,
with respect to any LIBOR Loan, elect to maintain such LIBOR Loan or any portion thereof as a LIBOR
Loan by selecting a new Interest Period for such LIBOR Loan. Each new Interest Period selected
under this Section shall commence on the last day of the immediately preceding Interest Period.
Each selection of a new Interest Period shall be made by the Borrower giving to the Agent a Notice
of Continuation not later than 11:00 a.m. on the third Business Day prior to the date of any such
Continuation. Such notice by the Borrower of a Continuation shall be by telephone or telecopy,
confirmed immediately in writing if by telephone, in the form of a Notice of Continuation,
specifying (a) the proposed date of such Continuation, (b) the LIBOR Loans and portions thereof
subject to such Continuation and (c) the duration of the selected Interest Period, all of which
shall be specified in such manner as is necessary to comply with all limitations on Loans
outstanding hereunder. Each Notice of Continuation shall be irrevocable by and binding on the
Borrower once given. Promptly after receipt of a Notice of Continuation, the Agent shall notify
each Lender by telecopy, or other similar form of transmission, of the proposed Continuation. If
the Borrower shall fail to select in a timely manner a new Interest Period for any LIBOR Loan in
accordance with this Section, or if a Default or Event of Default shall exist, such Loan will
automatically, on the last day of the current Interest Period therefor, Convert into a Base Rate
Loan notwithstanding the first sentence of Section 2.10. or the Borrower’s failure to comply with
any of the terms of such Section.

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Section 2.10. Conversion.

     So long as no Default or Event of Default shall exist, the Borrower may on any Business Day,
upon the Borrower’s giving of a Notice of Conversion to the Agent, Convert all or a portion
of a Loan of one Type into a Loan of another Type. Any Conversion of a LIBOR Loan into a Base Rate
Loan shall be made on, and only on, the last day of an Interest Period for such LIBOR Loan and,
upon Conversion of a Base Rate Loan into a LIBOR Loan, the Borrower shall pay accrued interest to
the date of Conversion on the principal amount so Converted. Each such Notice of Conversion shall
be given not later than 11:00 a.m. on the Business Day prior to the date of any proposed Conversion
into Base Rate Loans and on the third Business Day prior to the date of any proposed Conversion
into LIBOR Loans. Promptly after receipt of a Notice of Conversion, the Agent shall notify each
Lender by telecopy, or other similar form of transmission, of the proposed Conversion. Subject to
the restrictions specified above, each Notice of Conversion shall be by telephone (confirmed
immediately in writing) or telecopy in the form of a Notice of Conversion specifying (a) the
requested date of such Conversion, (b) the Type of Loan to be Converted, (c) the portion of such
Type of Loan to be Converted, (d) the Type of Loan such Loan is to be Converted into and (e) if
such Conversion is into a LIBOR Loan, the requested duration of the Interest Period of such Loan.
Each Notice of Conversion shall be irrevocable by and binding on the Borrower once given.

Section 2.11. Notes.

     (a) Revolving Note. The Revolving Loans made by each Lender shall, in addition to
this Agreement, also be evidenced by a promissory note of the Borrower substantially in the form of
Exhibit K (each a “Revolving Note”), payable to the order of such Lender in a principal amount
equal to the amount of its Commitment as originally in effect and otherwise duly completed.

     (b) Bid Rate Notes. The Bid Rate Loans made by any Lender shall, in addition to this
Agreement, also be evidenced by a promissory note of the Borrower substantially in the form of
Exhibit L (each a “Bid Rate Note”), payable to the order of such Lender and otherwise duly
completed.

     (c) Records. The date, amount, interest rate, Type and duration of Interest Periods
(if applicable) of each Loan made by each Lender to the Borrower, and each payment made on account
of the principal thereof, shall be recorded by such Lender on its books and such entries shall be
binding on the Borrower absent manifest error.

     (d) Lost, Stolen, Destroyed or Mutilated Notes. Upon receipt by the Borrower of (i)
written notice from a Lender that a Note of such Lender has been lost, stolen, destroyed or
mutilated, and (ii) (A) in the case of loss, theft or destruction, an unsecured agreement of
indemnity from such Lender in form reasonably satisfactory to the Borrower, or (B) in the case of
mutilation, upon surrender and cancellation of such Note, the Borrower shall at its own expense
execute and deliver to such Lender a new Note dated the date of such lost, stolen, destroyed or
mutilated Note.

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Section 2.12. Voluntary Reductions of the Commitment.

     The Borrower shall have the right to terminate or reduce the aggregate unused amount of the
Commitments (for which purpose use of the Commitments shall be deemed to include the aggregate
amount of Letter of Credit Liabilities and the aggregate principal amount of all
outstanding Swingline Loans and Bid Rate Loans) at any time and from time to time without penalty
or premium upon not less than 5 Business Days prior written notice to the Agent of each such
termination or reduction, which notice shall specify the effective date thereof and the amount of
any such reduction and shall be irrevocable once given and effective only upon receipt by the
Agent; provided, however, that if Borrower seeks to reduce the aggregate amount of the Commitments
below $200,000,000, then the Commitments shall be reduced to zero and except as otherwise provided
herein, the provisions of this Agreement shall terminate. The Agent will promptly transmit such
notice to each Lender. The Commitments, once terminated or reduced may not be increased or
reinstated.

Section 2.13. Extension of Termination Date.

     The Borrower shall have the right, exercisable one time, to extend the Termination Date by one
year. The Borrower may exercise such right only by executing and delivering to the Agent at least
30 days but not more than 180 days prior to the current Termination Date, a written request for
such extension (an “Extension Request”). The Agent shall forward to each Lender a copy of the
Extension Request delivered to the Agent promptly upon receipt thereof. Subject to satisfaction of
the following conditions, the Termination Date shall be extended for one year: (a) immediately
prior to such extension and immediately after giving effect thereto, no Default or Event of Default
shall exist and (b) the Borrower shall have paid the Fees payable under Section 3.6.(c).

Section 2.14. Expiration or Maturity Date of Letters of Credit Past Termination Date.

     If on the date the Commitments are terminated or reduced to zero (whether voluntarily, by
reason of the occurrence of an Event of Default or otherwise), there are any Letters of Credit
outstanding hereunder, the Borrower shall, on such date, pay to the Agent an amount of money equal
to the Stated Amount of such Letter(s) of Credit for deposit into the Collateral Account.

Section 2.15. Amount Limitations.

     Notwithstanding any other term of this Agreement or any other Loan Document, no Lender shall
be required to make a Loan and the Agent shall not be required to issue a Letter of Credit, if
immediately after the making of such Loan or the issuance of such Letter of Credit:

     (a) the aggregate principal amount of all outstanding Revolving Loans, together with the
aggregate principal amount of all outstanding Bid Rate Loans, the aggregate principal amount of all
outstanding Swingline Loans and the aggregate amount of all Letter of Credit Liabilities, would
exceed the aggregate amount of the Commitments at such time; or

     (b) the aggregate principal amount of all outstanding Bid Rate Loans would exceed 50% of the
aggregate amount of the Commitments at such time; provided, however, not more

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than once during any
calendar quarter, the Borrower may elect that the limitation of this clause (b) not apply to a
single Bid Rate Borrowing comprised of Bid Rate Loans having Interest Periods not exceeding 30 days
in duration.

Section 2.16. Increase of Commitments.

     The Borrower shall have the right at any time during the term of this Agreement to request
increases in the aggregate amount of the Commitments (provided that the aggregate amount of the
Commitments after giving effect to any increases pursuant to this Section shall not exceed
$750,000,000) by providing written notice to the Agent, which notice shall be irrevocable once
given. Each such increase in the Commitments must be in an aggregate minimum amount of $25,000,000
and integral multiples of $5,000,000 in excess thereof. No Lender shall be required to increase
its Commitment and any new Lender becoming a party to this Agreement in connection with any such
requested increase must be an Eligible Assignee. If a new Lender becomes a party to this
Agreement, or if any existing Lender agrees to increase its Commitment, such Lender shall on the
date it becomes a Lender hereunder (or increases its Commitment, in the case of an existing Lender)
(and as a condition thereto) purchase from the other Lenders its Commitment Percentage (or in the
case of an existing Lender, the increase in the amount of its Commitment Percentage, in each case
as determined after giving effect to the increase of Commitments) of any outstanding Revolving
Loans, by making available to the Agent for the account of such other Lenders at the Principal
Office, in same day funds, an amount equal to the sum of (A) the portion of the outstanding
principal amount of such Revolving Loans to be purchased by such Lender plus (B) the aggregate
amount of payments previously made by the other Lenders under Section 2.4.(j) which have not been
repaid plus (C) interest accrued and unpaid to and as of such date on such portion of the
outstanding principal amount of such Revolving Loans. The Borrower shall pay to the Lenders
amounts payable, if any, to such Lenders under Section 4.4. as a result of the prepayment of any
such Revolving Loans. No increase of the Commitments may be effected under this Section if (x) a
Default or Event of Default shall be in existence on the effective date of such increase or (y) any
representation or warranty made or deemed made by the Borrower or any other Loan Party in any Loan
Document to which any such Loan Party is a party is not (or would not be) true or correct on the
effective date of such increase (except for representations or warranties which expressly relate
solely to an earlier date). In connection with any increase in the aggregate amount of the
Commitments pursuant to this subsection, (a) any Lender becoming a party hereto shall execute such
documents and agreements as the Agent may reasonably request and (b) the Borrower shall make
appropriate arrangements so that each new Lender, and any existing Lender increasing its
Commitment, receives a new or replacement Note, as appropriate, in the amount of such Lender’s
Commitment within 2 Business Days of the effectiveness of the applicable increase in the aggregate
amount of Commitments.

Article III. Payments, Fees and Other General Provisions

Section 3.1. Payments.

     Except to the extent otherwise provided herein, all payments of principal, interest and other
amounts to be made by the Borrower under this Agreement or any other Loan Document

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shall be made in
Dollars, in immediately available funds, without deduction, set-off or counterclaim, to the Agent
at its Principal Office, not later than 2:00 p.m. on the date on which such payment shall become
due (each such payment made after such time on such due date to be deemed to have been made on the
next succeeding Business Day). Subject to Section 10.4., the
Borrower shall, at the time of making each payment under this Agreement or any Note, specify to the
Agent the amounts payable by the Borrower hereunder to which such payment is to be applied. Each
payment received by the Agent for the account of a Lender under this Agreement or any Note shall be
paid to such Lender at the applicable Lending Office of such Lender no later than 5:00 p.m. on the
date of receipt. If the Agent fails to pay such amount to a Lender as provided in the previous
sentence, the Agent shall pay interest on such amount until paid at a rate per annum equal to the
Federal Funds Rate from time to time in effect. If the due date of any payment under this
Agreement or any other Loan Document would otherwise fall on a day which is not a Business Day such
date shall be extended to the next succeeding Business Day and interest shall be payable for the
period of such extension.

Section 3.2. Pro Rata Treatment.

     Except to the extent otherwise provided herein: (a) each borrowing from the Lenders under
Section 2.1.(a), 2.3.(e) and 2.4.(e) shall be made from the Lenders, each payment of the Fees under
Section 3.6.(a), the first sentence of Section 3.6.(b) and Section 3.6.(c) shall be made for the
account of the Lenders, and each termination or reduction of the amount of the Commitments under
Section 2.12. shall be applied to the respective Commitments of the Lenders, pro rata according to
the amounts of their respective Commitments; (b) each payment or prepayment of principal of
Revolving Loans by the Borrower shall be made for the account of the Lenders pro rata in accordance
with the respective unpaid principal amounts of the Revolving Loans held by them, provided that if
immediately prior to giving effect to any such payment in respect of any Revolving Loans the
outstanding principal amount of the Revolving Loans shall not be held by the Lenders pro rata in
accordance with their respective Commitments in effect at the time such Loans were made, then such
payment shall be applied to the Revolving Loans in such manner as shall result, as nearly as is
practicable, in the outstanding principal amount of the Revolving Loans being held by the Lenders
pro rata in accordance with their respective Commitments; (c) each payment of interest on Revolving
Loans by the Borrower shall be made for the account of the Lenders pro rata in accordance with the
amounts of interest on such Loans then due and payable to the respective Lenders; (d) the making,
Conversion and Continuation of Revolving Loans of a particular Type (other than Conversions
provided for by Section 4.6.) shall be made pro rata among the Lenders according to the amounts of
their respective Commitments (in the case of making of Loans) or their respective Loans (in the
case of Conversions and Continuations of Loans) and the then current Interest Period for each
Lender’s portion of each Loan of such Type shall be coterminous; (e) the Lenders’ participation in,
and payment obligations in respect of, Letters of Credit under Section 2.4., shall be pro rata in
accordance with their respective Commitments; (f) the Lenders’ participation in, and payment
obligations in respect of, Swingline Loans under Section 2.3., shall be in accordance with their
respective Commitments; and (g) each mandatory prepayment of principal of Bid Rate Loans by the
Borrower pursuant to Section 2.8.(b) shall be made for account of the Lenders then owed Bid Rate
Loans pro rata in accordance with the respective unpaid principal amounts of the Bid Rate Loans
then owing to each such Lender. All payments of principal, interest, fees and other amounts in
respect of the Swingline Loans shall be for the account of the Swingline Lender only

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(except to the
extent any Lender shall have acquired and funded a participating interest in any such Swingline
Loan pursuant to Section 2.3.(e) in which case such payments shall be pro rata in accordance with
such participating interests).

Section 3.3. Sharing of Payments, Etc.

     If a Lender shall obtain payment of any principal of, or interest on, any Loan made by it to
the Borrower under this Agreement, or shall obtain payment on any other Obligation owing by the
Borrower or a Loan Party through the exercise of any right of set-off, banker’s lien or
counterclaim or similar right or otherwise or through voluntary prepayments directly to a Lender or
other payments made by the Borrower to a Lender not in accordance with the terms of this Agreement
and such payment should be distributed to the Lenders pro rata in accordance with Section 3.2. or
Section 10.4., as applicable, such Lender shall promptly purchase from the other Lenders
participations in (or, if and to the extent specified by such Lender, direct interests in) the
Loans made by the other Lenders or other Obligations owed to such other Lenders in such amounts,
and make such other adjustments from time to time as shall be equitable, to the end that all the
Lenders shall share the benefit of such payment (net of any reasonable expenses which may be
incurred by such Lender in obtaining or preserving such benefit) pro rata in accordance with
Section 3.2. or Section 10.4. To such end, all the Lenders shall make appropriate adjustments
among themselves (by the resale of participations sold or otherwise) if such payment is rescinded
or must otherwise be restored. The Borrower agrees that any Lender so purchasing a participation
(or direct interest) in the Loans or other Obligations owed to such other Lenders may exercise all
rights of set-off, banker’s lien, counterclaim or similar rights with respect to such participation
as fully as if such Lender were a direct holder of Loans in the amount of such participation.
Nothing contained herein shall require any Lender to exercise any such right or shall affect the
right of any Lender to exercise, and retain the benefits of exercising, any such right with respect
to any other indebtedness or obligation of the Borrower.

Section 3.4. Several Obligations.

     No Lender shall be responsible for the failure of any other Lender to make a Loan or to
perform any other obligation to be made or performed by such other Lender hereunder, and the
failure of any Lender to make a Loan or to perform any other obligation to be made or performed by
it hereunder shall not relieve the obligation of any other Lender to make any Loan or to perform
any other obligation to be made or performed by such other Lender.

Section 3.5. Minimum Amounts.

     (a) Borrowings and Conversions. Each borrowing of Base Rate Loans shall be in an
aggregate minimum amount of $1,000,000 and integral multiples of $500,000 in excess thereof. Each
borrowing and each Conversion of LIBOR Loans shall be in an aggregate minimum amount of $2,000,000
and integral multiples of $1,000,000 in excess of that amount.

     (b) Prepayments. Each voluntary prepayment of Revolving Loans shall be in an
aggregate minimum amount of $1,000,000 and integral multiples of $500,000 in excess thereof (or, if
less, the aggregate principal amount of Revolving Loans then outstanding).

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     (c) Reductions of Commitments. Each reduction of the Commitments under Section 2.12.
shall be in an aggregate minimum amount of $10,000,000 and integral multiples of $5,000,000 in
excess thereof.

     (d) Letters of Credit. The initial Stated Amount of each Letter of Credit shall be at
least $100,000.

Section 3.6. Fees.

     (a) Facility Fees. The Borrower agrees to pay to the Agent for the account of each
Lender a facility fee equal to the average daily amount of the Commitment of such Lender (whether
or not utilized) times the Facility Fee for the period from and including the Agreement Date to but
excluding the date such Commitment is terminated or reduced to zero or the Termination Date, such
fee to be paid in arrears on (i) the last Business Day of March, June, September and December in
each year, (ii) the date of each reduction in the Commitments (but only on the amount of the
reduction) and (iii) on the Termination Date.

     (b) Letter of Credit Fees. The Borrower agrees to pay to the Agent for the account of
each Lender a letter of credit fee at a rate per annum equal to the Applicable Margin for LIBOR
Loans times the daily average Stated Amount of each Letter of Credit for the period from and
including the date of issuance of such Letter of Credit (x) through and including the date such
Letter of Credit expires or is terminated or (y) to but excluding the date such Letter of Credit is
drawn in full. The fees provided for in the immediately preceding sentence shall be nonrefundable
and payable in arrears on (i) the last Business Day of March, June, September and December in each
year, (ii) the Termination Date, (iii) the date the Commitments are terminated or reduced to zero
and (iv) thereafter from time to time on demand of the Agent. In addition, the Borrower shall pay
to the Agent for its own account and not the account of any Lender, a fronting fee in respect of
each Letter of Credit at the rate equal to the greater of (i) $500 or (ii) one-eighth of one
percent (0.125%) per annum on the daily average Stated Amount of such Letter of Credit for the
period from and including the date of issuance of such Letter of Credit (A) through and including
the date such Letter of Credit expires or is terminated or (B) to but excluding the date such
Letter of Credit is drawn in full. The fees provided for in the immediately preceding sentence
shall be nonrefundable and payable upon issuance. The Borrower shall pay directly to the Agent
from time to time on demand all commissions, charges, costs and expenses in the amounts customarily
charged by the Agent from time to time in like circumstances with respect to the issuance of each
Letter of Credit, drawings, amendments and other transactions relating thereto.

     (c) Extension Fee. If the Borrower exercises its right to extend the Termination Date
in accordance with Section 2.13., the Borrower agrees to pay to the Agent for the account of each
Lender a fee equal to fifteen–one hundredths of one percent (0.15%) of the amount of such Lender’s
Commitment (whether or not utilized). Such fee shall be due and payable in full on the date the
Agent receives the Extension Request pursuant to such Section.

     (d) Administrative and Other Fees. The Borrower agrees to pay the administrative and
other fees of the Agent as may be agreed to in writing by the Borrower and the Agent from time to
time.

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Section 3.7. Computations.

     Unless otherwise expressly set forth herein, any accrued interest on any Loan, any Fees or any
other Obligations due hereunder shall be computed on the basis of a year of 360 days and the actual
number of days elapsed.

Section 3.8. Usury.

     In no event shall the amount of interest due or payable on the Loans or other Obligations
exceed the maximum rate of interest allowed by Applicable Law and, if any such payment is paid by
the Borrower or any other Loan Party or received by any Lender, then such excess sum shall be
credited as a payment of principal, unless the Borrower shall notify the respective Lender in
writing that the Borrower elects to have such excess sum returned to it forthwith. It is the
express intent of the parties hereto that the Borrower not pay and the Lenders not receive,
directly or indirectly, in any manner whatsoever, interest in excess of that which may be lawfully
paid by the Borrower under Applicable Law.

Section 3.9. Agreement Regarding Interest and Charges.

     The parties hereto hereby agree and stipulate that the only charge imposed upon the Borrower
for the use of money in connection with this Agreement is and shall be the interest specifically
described in Section 2.5.(a)(i) through (iv) and in Section 2.3.(c). Notwithstanding the
foregoing, the parties hereto further agree and stipulate that all agency fees, syndication fees,
facility fees, closing fees, letter of credit fees, underwriting fees, default charges, late
charges, funding or “breakage” charges, increased cost charges, attorneys’ fees and reimbursement
for costs and expenses paid by the Agent or any Lender to third parties or for damages incurred by
the Agent or any Lender, in each case in connection with the transactions contemplated by this
Agreement and the other Loan Documents, are charges made to compensate the Agent or any such Lender
for underwriting or administrative services and costs or losses performed or incurred, and to be
performed or incurred, by the Agent and the Lenders in connection with this Agreement and shall
under no circumstances be deemed to be charges for the use of money. All charges other than
charges for the use of money shall be fully earned and nonrefundable when due.

Section 3.10. Statements of Account.

     The Agent will account to the Borrower monthly with a statement of Loans, Letters of Credit,
accrued interest and Fees, charges and payments made pursuant to this Agreement and the other Loan
Documents, and such account rendered by the Agent shall be deemed conclusive upon Borrower absent
manifest error. The failure of the Agent to deliver such a statement of accounts shall not relieve
or discharge the Borrower from any of its obligations hereunder.

Section 3.11. Defaulting Lenders.

     (a) Generally. If for any reason any Lender (a “Defaulting Lender”) shall fail or
refuse to perform any of its obligations under this Agreement or any other Loan Document to

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which
it is a party within the time period specified for performance of such obligation or, if no time
period is specified, if such failure or refusal continues for a period of two Business Days
after notice from the Agent, then, in addition to the rights and remedies that may be available to
the Agent or the Borrower under this Agreement or Applicable Law, such Defaulting Lender’s right to
participate in the administration of the Loans, this Agreement and the other Loan Documents,
including without limitation, any right to vote in respect of, to consent to or to direct any
action or inaction of the Agent or to be taken into account in the calculation of the Requisite
Lenders, shall be suspended during the pendency of such failure or refusal. If a Lender is a
Defaulting Lender because it has failed to make timely payment to the Agent of any amount required
to be paid to the Agent hereunder (without giving effect to any notice or cure periods), in
addition to other rights and remedies which the Agent or the Borrower may have under the
immediately preceding provisions or otherwise, the Agent shall be entitled (i) to collect interest
from such Defaulting Lender on such delinquent payment for the period from the date on which the
payment was due until the date on which the payment is made at the Federal Funds Rate, (ii) to
withhold or setoff and to apply in satisfaction of the defaulted payment and any related interest,
any amounts otherwise payable to such Defaulting Lender under this Agreement or any other Loan
Document and (iii) to bring an action or suit against such Defaulting Lender in a court of
competent jurisdiction to recover the defaulted amount and any related interest. Any amounts
received by the Agent in respect of a Defaulting Lender’s Loans shall not be paid to such
Defaulting Lender and shall be held uninvested by the Agent and either applied against the purchase
price of such Loans under the following subsection (b) or paid to such Defaulting Lender upon the
Defaulting Lender’s curing of its default.

     (b) Purchase or Cancellation of Defaulting Lender’s Commitment. Any Lender who is not
a Defaulting Lender shall have the right, but not the obligation, in its sole discretion, to
acquire all of a Defaulting Lender’s Commitment. Any Lender desiring to exercise such right shall
give written notice thereof to the Agent and the Borrower no sooner than 2 Business Days and not
later than 5 Business Days after such Defaulting Lender became a Defaulting Lender. If more than
one Lender exercises such right, each such Lender shall have the right to acquire an amount of such
Defaulting Lender’s Commitment in proportion to the Commitments of the other Lenders exercising
such right. If after such 5th Business Day, the Lenders have not elected to purchase all of the
Commitment of such Defaulting Lender, then the Borrower may, by giving written notice thereof to
the Agent, such Defaulting Lender and the other Lenders, either (i) demand that such Defaulting
Lender assign its Commitment to an Eligible Assignee subject to and in accordance with the
provisions of Section 12.5.(d) for the purchase price provided for below or (ii) terminate the
Commitment of such Defaulting Lender, whereupon such Defaulting Lender shall no longer be a party
hereto or have any rights or obligations hereunder or under any of the other Loan Documents. No
party hereto shall have any obligation whatsoever to initiate any such replacement or to assist in
finding an Eligible Assignee. Upon any such purchase or assignment, the Defaulting Lender’s
interest in the Loans and its rights hereunder (but not its liability in respect thereof or under
the Loan Documents or this Agreement to the extent the same relate to the period prior to the
effective date of the purchase) shall terminate on the date of purchase, and the Defaulting Lender
shall promptly execute all documents reasonably requested to surrender and transfer such interest
to the purchaser or assignee thereof, including an appropriate Assignment and Acceptance Agreement
and, notwithstanding Section 12.5.(d), shall pay to the Agent an assignment fee in the amount of
$10,000. The purchase price for the

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Commitment of a Defaulting Lender shall be equal to the amount
of the principal balance of the Loans outstanding and owed by the Borrower to the Defaulting
Lender. Prior to payment of
such purchase price to a Defaulting Lender, the Agent shall apply against such purchase price any
amounts retained by the Agent pursuant to the last sentence of the immediately preceding subsection
(a). The Defaulting Lender shall be entitled to receive amounts owed to it by the Borrower under
the Loan Documents which accrued prior to the date of the default by the Defaulting Lender, to the
extent the same are received by the Agent from or on behalf of the Borrower. There shall be no
recourse against any Lender or the Agent for the payment of such sums except to the extent of the
receipt of payments from any other party or in respect of the Loans.

Section 3.12. Taxes.

     (a) Taxes Generally. All payments by the Borrower of principal of, and interest on,
the Loans and all other Obligations shall be made free and clear of and without deduction for any
present or future excise, stamp or other taxes, fees, duties, levies, imposts, charges, deductions,
withholdings or other charges of any nature whatsoever imposed by any taxing authority, but
excluding (i) franchise taxes, (ii) any taxes (other than withholding taxes) that would not be
imposed but for a connection between the Agent or a Lender and the jurisdiction imposing such taxes
(other than a connection arising solely by virtue of the activities of the Agent or such Lender
pursuant to or in respect of this Agreement or any other Loan Document), (iii) any taxes imposed on
or measured by any Lender’s assets, net income, receipts or branch profits, and (iv) any taxes,
fees, duties, levies, imposts, charges, deductions, withholdings or other charges to the extent
imposed as a result of the failure of the Agent or a Lender, as applicable, to provide and keep
current (to the extent legally able) any certificates, documents or other evidence required to
qualify for an exemption from, or reduced rate of, any such taxes fees, duties, levies, imposts,
charges, deductions, withholdings or other charges or required by the immediately following
subsection (c) to be furnished by the Agent or such Lender, as applicable (such non-excluded items
being collectively called “Taxes”). If any withholding or deduction from any payment to be made by
the Borrower hereunder is required in respect of any Taxes pursuant to any Applicable Law, then the
Borrower will:

     (i) pay directly to the relevant Governmental Authority the full amount required to be
so withheld or deducted;

     (ii) promptly forward to the Agent an official receipt or other documentation
satisfactory to the Agent evidencing such payment to such Governmental Authority; and

     (iii) pay to the Agent for its account or the account of the applicable Lender, as the
case may be, such additional amount or amounts as is necessary to ensure that the net amount
actually received by the Agent or such Lender will equal the full amount that the Agent or
such Lender would have received had no such withholding or deduction been required.

     (b) Tax Indemnification. If the Borrower fails to pay any Taxes when due to the
appropriate Governmental Authority or fails to remit to the Agent, for its account or the account
of the respective Lender, as the case may be, the required receipts or other required documentary

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evidence, the Borrower shall indemnify the Agent and the Lenders for any incremental Taxes,
interest or penalties that may become payable by the Agent or any Lender as a result of any such
failure. For purposes of this Section, a distribution hereunder by the Agent or any Lender to or
for the account of any Lender shall be deemed a payment by the Borrower.

     (c) Tax Forms. Prior to the date that any Lender or Participant organized under the
laws of a jurisdiction outside the United States of America becomes a party hereto, such Person
shall deliver to the Borrower and the Agent such certificates, documents or other evidence, as
required by the Internal Revenue Code or Treasury Regulations issued pursuant thereto (including
Internal Revenue Service Forms W-8ECI and W-8BEN, as applicable, or appropriate successor forms),
properly completed, currently effective and duly executed by such Lender or Participant
establishing that payments to it hereunder and under the Notes are (i) not subject to United States
Federal backup withholding tax and (ii) not subject to United States Federal withholding tax under
the Internal Revenue Code. Each such Lender or Participant shall (x) deliver further copies of
such forms or other appropriate certifications on or before the date that any such forms expire or
become obsolete and after the occurrence of any event requiring a change in the most recent form
delivered to the Borrower or the Agent and (y) obtain such extensions of the time for filing, and
renew such forms and certifications thereof, as may be reasonably requested by the Borrower or the
Agent. The Borrower shall not be required to pay any amount pursuant to last sentence of
subsection (a) above to any Lender or Participant that is organized under the laws of a
jurisdiction outside of the United States of America or the Agent, if it is organized under the
laws of a jurisdiction outside of the United States of America, if such Lender, Participant or the
Agent, as applicable, fails to comply with the requirements of this subsection. If any such Lender
or Participant fails to deliver the above forms or other documentation, then the Agent may withhold
from any payments to be made to such Lender under any of the Loan Documents such amounts as are
required by the Internal Revenue Code. If any Governmental Authority asserts that the Agent did not
properly withhold or backup withhold, as the case may be, any tax or other amount from payments
made to or for the account of any Lender, such Lender shall indemnify the Agent therefor, including
all penalties and interest, any taxes imposed by any jurisdiction on the amounts payable to the
Agent under this Section, and costs and expenses (including all reasonable fees and disbursements
of any law firm or other external counsel and the allocated cost of internal legal services and all
disbursements of internal counsel) of the Agent. The obligation of the Lenders under this Section
shall survive the termination of the Commitments, repayment of all Obligations and the resignation
or replacement of the Agent.

Article IV. Yield Protection, Etc.

Section 4.1. Additional Costs; Capital Adequacy.

     (a) Additional Costs. The Borrower shall promptly pay to the Agent for the account of
a Lender from time to time such amounts as such Lender may determine to be necessary to compensate
such Lender for any costs incurred by such Lender that it determines are attributable to its making
or maintaining of any LIBOR Loans or its obligation to make any LIBOR Loans hereunder, any
reduction in any amount receivable by such Lender under this Agreement or any of the other Loan
Documents in respect of any of such Loans or such obligation or the maintenance by such Lender of
capital in respect of its Loans or its Commitment (such increases

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in costs and reductions in
amounts receivable being herein called “Additional Costs”), resulting from any Regulatory Change
that: (i) changes the basis of taxation of any amounts payable to
such Lender under this Agreement or any of the other Loan Documents in respect of any of such Loans
or its Commitment (other than taxes, fees, duties, levies, imposts, charges, deductions,
withholdings or other charges which are excluded from the definition of Taxes pursuant to the first
sentence of Section 3.12.(a)); or (ii) imposes, modifies or deems applicable any reserve, special
deposit or similar requirements (other than Regulation D of the Board of Governors of the Federal
Reserve System or other reserve requirement to the extent utilized in the determination of the
Adjusted Eurodollar Rate for such Loan) relating to any extensions of credit or other assets of, or
any deposits with or other liabilities of, such Lender, or any commitment of such Lender
(including, without limitation, the Commitment of such Lender hereunder); or (iii) has or would
have the effect of reducing the rate of return on capital of such Lender to a level below that
which such Lender could have achieved but for such Regulatory Change (taking into consideration
such Lender’s policies with respect to capital adequacy).

     (b) Lender’s Suspension of LIBOR Loans. Without limiting the effect of the provisions
of the immediately preceding subsection (a), if, by reason of any Regulatory Change, any Lender
either (i) incurs Additional Costs based on or measured by the excess above a specified level of
the amount of a category of deposits or other liabilities of such Lender that includes deposits by
reference to which the interest rate on LIBOR Loans is determined as provided in this Agreement or
a category of extensions of credit or other assets of such Lender that includes LIBOR Loans or (ii)
becomes subject to restrictions on the amount of such a category of liabilities or assets that it
may hold, then, if such Lender so elects by notice to the Borrower (with a copy to the Agent), the
obligation of such Lender to make or Continue, or to Convert any other Type of Loans into, LIBOR
Loans hereunder shall be suspended until such Regulatory Change ceases to be in effect (in which
case the provisions of Section 4.6. shall apply).

     (c) Additional Costs in Respect of Letters of Credit. Without limiting the
obligations of the Borrower under the preceding subsections of this Section (but without
duplication), if as a result of any Regulatory Change or any risk-based capital guideline or other
requirement heretofore or hereafter issued by any Governmental Authority there shall be imposed,
modified or deemed applicable any tax, reserve, special deposit, capital adequacy or similar
requirement against or with respect to or measured by reference to Letters of Credit and the result
shall be to increase the cost to the Agent of issuing (or any Lender of purchasing participations
in) or maintaining its obligation hereunder to issue (or purchase participations in) any Letter of
Credit or reduce any amount receivable by the Agent or any Lender hereunder in respect of any
Letter of Credit, then, upon demand by the Agent or such Lender, the Borrower shall pay promptly,
and in any event within 3 Business Days of demand, to the Agent for its account or the account of
such Lender, as applicable, from time to time as specified by the Agent or a Lender, such
additional amounts as shall be sufficient to compensate the Agent or such Lender for such increased
costs or reductions in amount.

     (d) Notification and Determination of Additional Costs. Each of the Agent and each
Lender agrees to notify the Borrower of any event occurring after the Agreement Date entitling the
Agent or such Lender to compensation under any of the preceding subsections of this Section

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as
promptly as practicable; provided, however, the failure of the Agent or any Lender to give such
notice shall not release the Borrower from any of its obligations hereunder (and in the case
of a Lender, to the Agent). The Agent or such Lender agrees to furnish to the Borrower (and in the
case of a Lender, to the Agent) a certificate setting forth the basis and amount of each request by
the Agent or such Lender for compensation under this Section. Absent manifest error,
determinations by the Agent or any Lender of the effect of any Regulatory Change shall be
conclusive, provided that such determinations are made on a reasonable basis and in good faith.

Section 4.2. Suspension of LIBOR Loans.

     Anything herein to the contrary notwithstanding, if, on or prior to the determination of any
Adjusted Eurodollar Rate for any Interest Period:

     (a) the Agent reasonably determines (which determination shall be conclusive) that by
reason of circumstances affecting the relevant market, adequate and reasonable means do not
exist for ascertaining the Adjusted Eurodollar Rate for such Interest Period, or

     (b) the Agent reasonably determines (which determination shall be conclusive) that the
Adjusted Eurodollar Rate will not adequately and fairly reflect the cost to the Lenders of
making or maintaining LIBOR Loans for such Interest Period;

then the Agent shall give the Borrower and each Lender prompt notice thereof and, so long as such
condition remains in effect, the Lenders shall be under no obligation to, and shall not, make
additional LIBOR Loans, Continue LIBOR Loans or Convert Loans into LIBOR Loans and the Borrower
shall, on the last day of each current Interest Period for each outstanding LIBOR Loan, either
repay such Loan or Convert such Loan into a Base Rate Loan.

Section 4.3. Illegality.

     Notwithstanding any other provision of this Agreement, if any Lender shall reasonably
determine (which determination shall be conclusive and binding) that it has become unlawful for
such Lender to honor its obligation to make or maintain LIBOR Loans hereunder, then such Lender
shall promptly notify the Borrower thereof (with a copy to the Agent) and such Lender’s obligation
to make or Continue, or to Convert Loans of any other Type into, LIBOR Loans shall be suspended
until such time as such Lender may again make and maintain LIBOR Loans (in which case the
provisions of Section 4.6. shall be applicable).

Section 4.4. Compensation.

     The Borrower shall pay to the Agent for the account of each Lender, upon the request of such
Lender through the Agent, such amount or amounts as shall be sufficient (in the reasonable opinion
of such Lender) to compensate it for any loss, cost or expense that such Lender reasonably
determines is attributable to:

     (a) any payment or prepayment (whether mandatory or optional) of a LIBOR Loan or Bid
Rate Loan, or Conversion of a LIBOR Loan, made by such Lender for any

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reason (including,
without limitation, acceleration) on a date other than the last day of the Interest Period
for such Loan; or

     (b) any failure by the Borrower for any reason (including, without limitation, the
failure of any of the applicable conditions precedent specified in Article V. to be
satisfied) to borrow a LIBOR Loan or Bid Rate Loan from such Lender on the requested date
for such borrowing, or to Convert a Base Rate Loan into a LIBOR Loan or Continue a LIBOR
Loan on the requested date of such Conversion or Continuation.

Upon the Borrower’s request, any Lender requesting compensation under this Section shall provide
the Borrower with a statement setting forth the basis for requesting such compensation and the
method for determining the amount thereof. Absent manifest error, determinations by any Lender in
any such statement shall be conclusive, provided that such determinations are made on a reasonable
basis and in good faith.

Section 4.5. Affected Lenders.

     If (a) a Lender requests compensation pursuant to Section 3.12. or 4.1., and the Requisite
Lenders are not also doing the same, or (b) the obligation of any Lender to make LIBOR Loans or to
Continue, or to Convert Base Rate Loans into, LIBOR Loans shall be suspended pursuant to Section
4.1.(b) or 4.3. but the obligation of the Requisite Lenders shall not have been suspended under
such Sections, then, so long as there does not then exist any Default or Event of Default, the
Borrower may either (i) demand that such Lender (the “Affected Lender”), and upon such demand the
Affected Lender shall promptly, assign its Commitment to an Eligible Assignee subject to and in
accordance with the provisions of Section 12.5.(d) for a purchase price equal to the aggregate
principal balance of Loans then owing to the Affected Lender plus any accrued but unpaid interest
thereon and accrued but unpaid fees owing to the Affected Lender, or (ii) pay to the Affected
Lender the aggregate principal balance of Loans then owing to the Affected Lender plus any accrued
but unpaid interest thereon and accrued but unpaid fees owing to the Affected Lender, whereupon the
Affected Lender shall no longer be a party hereto or have any rights or obligations hereunder or
under any of the other Loan Documents. Each of the Agent and the Affected Lender shall reasonably
cooperate in effectuating the replacement of such Affected Lender under this Section, but at no
time shall the Agent, such Affected Lender nor any other Lender be obligated in any way whatsoever
to initiate any such replacement or to assist in finding an Eligible Assignee. The exercise by the
Borrower of its rights under this Section shall be at the Borrower’s sole cost and expense and at
no cost or expense to the Agent, the Affected Lender or any of the other Lenders. The terms of
this Section shall not in any way limit the Borrower’s obligation to pay to any Affected Lender
compensation owing to such Affected Lender pursuant to Section 3.12., 4.1. or 12.9.

Section 4.6. Treatment of Affected Loans.

     If the obligation of any Lender to make LIBOR Loans or to Continue, or to Convert Base Rate
Loans into, LIBOR Loans shall be suspended pursuant to Section 4.1.(b), 4.2. or 4.3., then such
Lender’s LIBOR Loans shall be automatically Converted into Base Rate Loans on the last day(s) of
the then current Interest Period(s) for LIBOR Loans (or, in the case of a Conversion required by
Section 4.1.(b) or 4.3., on such earlier date as such Lender may specify to the

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Borrower with a
copy to the Agent) and, unless and until such Lender gives notice as provided
below that the circumstances specified in Section 4.1. or 4.3. that gave rise to such Conversion no
longer exist:

     (a) to the extent that such Lender’s LIBOR Loans have been so Converted, all payments
and prepayments of principal that would otherwise be applied to such Lender’s LIBOR Loans
shall be applied instead to its Base Rate Loans; and

     (b) all Loans that would otherwise be made or Continued by such Lender as LIBOR Loans
shall be made or Continued instead as Base Rate Loans, and all Base Rate Loans of such
Lender that would otherwise be Converted into LIBOR Loans shall remain as Base Rate Loans.

If such Lender gives notice to the Borrower (with a copy to the Agent) that the circumstances
specified in Section 4.1. or 4.3. that gave rise to the Conversion of such Lender’s LIBOR Loans
pursuant to this Section no longer exist (which such Lender agrees to do promptly upon such
circumstances ceasing to exist) at a time when LIBOR Loans made by other Lenders are outstanding,
then such Lender’s Base Rate Loans shall be automatically Converted, on the first day(s) of the
next succeeding Interest Period(s) for such outstanding LIBOR Loans, to the extent necessary so
that, after giving effect thereto, all Loans held by the Lenders holding LIBOR Loans and by such
Lender are held pro rata (as to principal amounts, Types and Interest Periods) in accordance with
their respective Commitments.

Section 4.7. Change of Lending Office.

     Each Lender agrees that it will use reasonable efforts to designate an alternate Lending
Office with respect to any of its Loans affected by the matters or circumstances described in
Sections 3.12., 4.1. or 4.3. to reduce the liability of the Borrower or avoid the results provided
thereunder, so long as such designation is not disadvantageous to such Lender as determined by such
Lender in its sole discretion, except that such Lender shall have no obligation to designate a
Lending Office located in the United States of America.

Section 4.8. Assumptions Concerning Funding of LIBOR Loans.

     Calculation of all amounts payable to a Lender under this Article IV. shall be made as though
such Lender had actually funded LIBOR Loans through the purchase of deposits in the relevant
market bearing interest at the rate applicable to such LIBOR Loans in an amount equal to the amount
of the LIBOR Loans and having a maturity comparable to the relevant Interest Period; provided,
however, that each Lender may fund each of its LIBOR Loans in any manner it sees fit and the
foregoing assumption shall be used only for calculation of amounts payable under this Article IV.

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Article V. Conditions Precedent

Section 5.1. Initial Conditions Precedent.

     The obligation of the Lenders to effect or permit the occurrence of the first Credit Event
hereunder, whether as the making of a Loan or the issuance of a Letter of Credit, is subject to the
following conditions precedent:

     (a) The Agent shall have received each of the following, in form and substance satisfactory to
the Agent:

     (i) Counterparts of this Agreement executed by each of the parties hereto;

     (ii) Revolving Notes and Bid Rate Notes executed by the Borrower, payable to each
Lender (or Designated Lender, if applicable) and complying with the applicable provisions of
Section 2.11., and the Swingline Note executed by the Borrower;

     (iii) The Guaranty executed by each Guarantor existing as of the Effective Date;

     (iv) An opinion of legal counsel to the Loan Parties, addressed to the Agent, the
Lenders and the Swingline Lender, substantially in the form of Exhibit M;

     (v) The articles of incorporation of the Borrower certified as of a recent date by the
Secretary of State of the state of its incorporation;

     (vi) A good standing certificate with respect to the Borrower issued as of a recent
date by the Secretary of State of the state of its incorporation and certificates of
qualification to transact business or other comparable certificates issued by the Secretary
of State (and any state department of taxation, as applicable) of each state in which the
Borrower is required to be so qualified and where the failure to be so qualified could
reasonably be expected to have a Material Adverse Effect;

     (vii) A certificate of incumbency signed by the Secretary or Assistant Secretary of the
Borrower with respect to each of the officers of the Borrower authorized to execute and
deliver the Loan Documents to which the Borrower is a party and the officers of the Borrower
then authorized to deliver Notices of Borrowing, Notices of Swingline Borrowings, Bid Rate
Quote Requests, Bid Rate Quote Acceptances, Notices of Continuation and Notices of
Conversion and to request the issuance of Letters of Credit;

     (viii) Copies, certified by the Secretary or Assistant Secretary of the Borrower, of
(i) the bylaws of the Borrower and (ii) all corporate (or comparable) action taken by the
Borrower to authorize the execution, delivery and performance of the Loan Documents to which
the Borrower is a party;

     (ix) The articles of incorporation, articles of organization, certificate of limited
partnership or other comparable organizational instrument (if any) of each Guarantor

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certified as of a recent date by the Secretary of State of the state of formation of such
Guarantor;

     (x) A certificate of good standing or certificate of similar meaning with respect to
each Guarantor issued as of a recent date by the Secretary of State of the state of
formation of each such Guarantor and certificates of qualification to transact business or
other comparable certificates issued by each Secretary of State (and any state department of
taxation, as applicable) of each state in which such Guarantor is required to be so
qualified and where the failure to be so qualified could reasonably be expected to have a
Material Adverse Effect;

     (xi) A certificate of incumbency signed by the Secretary or Assistant Secretary (or
other individual performing similar functions) of each Guarantor with respect to each of the
officers of such Guarantor authorized to execute and deliver the Loan Documents to which
such Guarantor is a party;

     (xii) Copies certified by the Secretary or Assistant Secretary of each Guarantor (or
other individual performing similar functions) of (i) the by-laws of such Guarantor, if a
corporation, the operating agreement, if a limited liability company, the partnership
agreement, if a limited or general partnership, or other comparable document in the case of
any other form of legal entity and (ii) all corporate, partnership, member or other
necessary action taken by such Guarantor to authorize the execution, delivery and
performance of the Loan Documents to which it is a party;

     (xiii) The Fees then due and payable under Section 3.6., and any other Fees payable to
the Agent, the Titled Agents and the Lenders on or prior to the Effective Date;

     (xiv) A Compliance Certificate calculated as of [March 31, 2005]; and

     (xv) Such other documents, agreements and instruments as the Agent on behalf of the
Lenders may reasonably request;

     (b) In the good faith judgment of the Agent and the Lenders:

     (i) There shall not have occurred or become known to the Agent or any of the Lenders
any event, condition, situation or status since the date of the information contained in the
financial and business projections, budgets, pro forma data and forecasts concerning the
Borrower and its Subsidiaries delivered to the Agent and the Lenders prior to the Agreement
Date that has had or could reasonably be expected to result in a Material Adverse Effect;

     (ii) No litigation, action, suit, investigation or other arbitral, administrative or
judicial proceeding shall be pending or threatened which could reasonably be expected to (1)
result in a Material Adverse Effect or (2) restrain or enjoin, impose materially burdensome
conditions on, or otherwise materially and adversely affect the ability of the

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Borrower or any other Loan Party to fulfill its obligations under the Loan Documents to
which it is a party;

     (iii) The Borrower and its Subsidiaries shall have received all approvals, consents and
waivers, and shall have made or given all necessary filings and notices as shall be required
to consummate the transactions contemplated hereby without the occurrence of any default
under, conflict with or violation of (1) any Applicable Law or (2) any agreement, document
or instrument to which the Borrower or any other Loan Party is a party or by which any of
them or their respective properties is bound, except for such approvals, consents, waivers,
filings and notices the receipt, making or giving of which would not reasonably be likely to
(A) have a Material Adverse Effect, or (B) restrain or enjoin, impose materially burdensome
conditions on, or otherwise materially and adversely affect the ability of the Borrower or
any other Loan Party to fulfill its obligations under the Loan Documents to which it is a
party; and

     (iv) There shall not have occurred or exist any other material disruption of financial
or capital markets that could reasonably be expected to materially and adversely affect the
transactions contemplated by the Loan Documents.

Section 5.2. Conditions Precedent to All Loans and Letters of Credit.

     The obligations of the Lenders to make any Loans, of the Agent to issue Letters of Credit, and
of the Swingline Lender to make any Swingline Loan are all subject to the further condition
precedent that: (a) no Default or Event of Default shall exist as of the date of the making of such
Loan or date of issuance of such Letter of Credit or would exist immediately after giving effect
thereto; and (b) the representations and warranties made or deemed made by the Borrower and each
other Loan Party in the Loan Documents to which any of them is a party, shall be true and correct
in all material respects on and as of the date of the making of such Loan or date of issuance of
such Letter of Credit with the same force and effect as if made on and as of such date except to
the extent that such representations and warranties expressly relate solely to an earlier date (in
which case such representations and warranties shall have been true and accurate on and as of such
earlier date) and except for changes in factual circumstances specifically and expressly permitted
hereunder. Each Credit Event shall constitute a certification by the Borrower to the effect set
forth in the preceding sentence (both as of the date of the giving of notice relating to such
Credit Event and, unless the Borrower otherwise notifies the Agent prior to the date of such Credit
Event, as of the date of the occurrence of such Credit Event). In addition, if such Credit Event
is the making of a Loan or the issuance of a Letter of Credit, the Borrower shall be deemed to have
represented to the Agent and the Lenders at the time such Loan is made or Letter of Credit issued
that all conditions to the occurrence of such Credit Event contained in Article V. have been
satisfied.

Section 5.3. Conditions as Covenants.

     If the Lenders make any Loans, or the Agent issues a Letter of Credit, prior to the
satisfaction of all conditions precedent set forth in Sections 5.1. and 5.2., the Borrower shall
nevertheless cause such condition or conditions to be satisfied within 5 Business Days after the
date of the making of such Loans or the issuance of such Letter of Credit. Unless set forth in

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writing to the contrary, the making of its initial Loan by a Lender shall constitute a
certification by such Lender to the Agent and the other Lenders that the Borrower has satisfied the
conditions precedent for initial Loans set forth in Sections 5.1. and 5.2.

Article VI. Representations and Warranties

Section 6.1. Representations and Warranties.

     In order to induce the Agent and each Lender to enter into this Agreement and to make Loans
and issue Letters of Credit, the Borrower represents and warrants to the Agent and each Lender as
follows:

     (a) Organization; Power; Qualification. Each of the Borrower, its Subsidiaries and
the other Loan Parties is a corporation, partnership or other legal entity, duly organized or
formed, validly existing and in good standing under the jurisdiction of its incorporation or
formation, has the power and authority to own or lease its respective properties and to carry on
its respective business as now being and hereafter proposed to be conducted and is duly qualified
and is in good standing as a foreign corporation, partnership or other legal entity, and authorized
to do business, in each jurisdiction in which the character of its properties or the nature of its
business requires such qualification or authorization and where the failure to be so qualified or
authorized could reasonably be expected to have, in each instance, a Material Adverse Effect.

     (b) Ownership Structure. As of the Agreement Date Part I of Schedule 6.1.(b) is a
complete and correct list of all Subsidiaries of the Borrower setting forth for each such
Subsidiary, (i) the jurisdiction of organization of such Subsidiary, (ii) each Person holding any
Equity Interests in such Subsidiary, (iii) the nature of the Equity Interests held by each such
Person, (iv) the percentage of ownership of such Subsidiary represented by such Equity Interests
and (v) whether such Subsidiary is a Material Subsidiary and/or an Excluded Subsidiary. Except as
disclosed in such Schedule, as of the Agreement Date (i) each of the Borrower and its Subsidiaries
owns, free and clear of all Liens, and has the unencumbered right to vote, all outstanding Equity
Interests in each Person shown to be held by it on such Schedule, (ii) all of the issued and
outstanding capital stock of each such Person organized as a corporation is validly issued, fully
paid and nonassessable and (iii) there are no outstanding subscriptions, options, warrants,
commitments, preemptive rights or agreements of any kind (including, without limitation, any
stockholders’ or voting trust agreements) for the issuance, sale, registration or voting of, or
outstanding securities convertible into, any additional shares of capital stock of any class, or
partnership or other ownership interests of any type in, any such Person. As of the Agreement Date
Part II of Schedule 6.1.(b) correctly sets forth all Unconsolidated Affiliates of the Borrower,
including the correct legal name of such Person, the type of legal entity which each such Person
is, and all Equity Interests in such Person held directly or indirectly by the Borrower.

     (c) Authorization of Agreement, Etc. The Borrower has the right and power, and has
taken all necessary action to authorize it, to borrow and obtain other extensions of credit
hereunder. The Borrower and each other Loan Party has the right and power, and has taken all
necessary action to authorize it, to execute, deliver and perform each of the Loan Documents to
which it is a party in accordance with their respective terms and to consummate the transactions

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contemplated hereby and thereby. The Loan Documents to which the Borrower or any other Loan Party
is a party have been duly executed and delivered by the duly authorized officers of such Person and
each is a legal, valid and binding obligation of such Person enforceable against such Person in
accordance with its respective terms except as the same may be limited by bankruptcy, insolvency,
and other similar laws affecting the rights of creditors generally and the availability of
equitable remedies for the enforcement of certain obligations (other than the payment of principal)
contained herein or therein may be limited by equitable principles generally.

     (d) Compliance of Loan Documents with Laws, Etc. The execution, delivery and
performance of this Agreement, the Notes and the other Loan Documents to which the Borrower or any
other Loan Party is a party in accordance with their respective terms and the borrowings and other
extensions of credit hereunder do not and will not, by the passage of time, the giving of notice,
or both: (i) require any Governmental Approval or violate any Applicable Law (including all
Environmental Laws) relating to the Borrower or any other Loan Party; (ii) conflict with, result in
a breach of or constitute a default under the organizational documents of the Borrower or any other
Loan Party, or any indenture, agreement or other instrument to which the Borrower or any other Loan
Party is a party or by which it or any of its respective properties may be bound; or (iii) result
in or require the creation or imposition of any Lien upon or with respect to any property now owned
or hereafter acquired by the Borrower or any other Loan Party other than pursuant to the Loan
Documents.

     (e) Compliance with Law; Governmental Approvals. The Borrower, each Subsidiary and
each other Loan Party is in compliance with each Governmental Approval applicable to it and in
compliance with all other Applicable Laws (including without limitation, Environmental Laws)
relating to the Borrower, a Subsidiary or such other Loan Party except for noncompliances which,
and Governmental Approvals the failure to possess which, would not, individually or in the
aggregate, cause a Default or Event of Default or have a Material Adverse Effect.

     (f) Title to Properties; Liens. As of the Agreement Date, Part I of Schedule 6.1.(f)
sets forth all of the real property owned or leased by the Borrower, each other Loan Party and each
other Subsidiary. Each such Person has good, marketable and legal title to, or a valid leasehold
interest in, its respective assets. As of the Agreement Date, there are no Liens against any
assets of the Borrower, any Subsidiary or any other Loan Party except for Permitted Liens.

     (g) Existing Indebtedness. Schedule 6.1.(g) is, as of the Agreement Date, a complete
and correct listing of all Debt of the Borrower and its Subsidiaries, including without limitation,
Guarantees of the Borrower and its Subsidiaries, and indicating whether such Debt is Consolidated
Secured Debt or Consolidated Unsecured Debt. The Borrower and its Subsidiaries have performed and
are in compliance with all of the terms of such Debt and all instruments and agreements relating
thereto, and no default or event of default, or event or condition which with the giving of notice,
the lapse of time, or both, would constitute such a default or event of default, exists with
respect to any such Debt.

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     (h) Material Contracts. Schedule 6.1.(h) is, as of the Agreement Date, a true,
correct and complete listing of all Material Contracts. Each of the Borrower, its Subsidiaries and
the other Loan Parties that is a party to any Material Contract has performed and is in compliance
with all of the terms of such Material Contract, and no default or event of default, or event or
condition which with the giving of notice, the lapse of time, or both, would constitute such a
default or event of default, exists with respect to any such Material Contract.

     (i) Litigation. Except as set forth on Schedule 6.1.(i), there are no actions, suits,
investigations or proceedings pending (nor, to the knowledge of the Borrower, are there any
actions, suits or proceedings threatened, nor to the knowledge of the Borrower is there any basis
therefor) against or in any other way relating adversely to or affecting the Borrower, any
Subsidiary or any other Loan Party or any of its respective property in any court or before any
arbitrator of any kind or before or by any other Governmental Authority which could reasonably be
expected to have a Material Adverse Effect. There are no strikes, slow downs, work stoppages or
walkouts or other labor disputes in progress or threatened relating to the Borrower, any Subsidiary
or any other Loan Party.

     (j) Taxes. All federal, state and other tax returns of the Borrower, any Subsidiary
or any other Loan Party required by Applicable Law to be filed have been duly filed, and all
federal, state and other taxes, assessments and other governmental charges or levies upon the
Borrower, any Subsidiary and each other Loan Party and its respective properties, income, profits
and assets which are due and payable have been paid, except any such nonpayment which is at the
time permitted under Section 7.6. As of the Agreement Date, none of the United States income tax
returns of the Borrower, its Subsidiaries or any other Loan Party is under audit. All charges,
accruals and reserves on the books of the Borrower and each of its Subsidiaries and each other Loan
Party in respect of any taxes or other governmental charges are in accordance with GAAP.

     (k) Financial Statements. The Borrower has furnished to each Lender copies of (i) the
audited consolidated balance sheet of the Borrower and its consolidated Subsidiaries for the fiscal
year ending December 31, 2004, and the related audited consolidated statements of operations, cash
flows and shareholders’ equity for the fiscal year ending on such dates, with the opinion thereon
of Ernst & Young LLP, and (ii) the unaudited consolidated balance sheet of the Borrower and its
consolidated Subsidiaries for the fiscal quarter ending March 31, 2005, and the related unaudited
consolidated statements of operations, cash flows and shareholders’ equity of the Borrower and its
consolidated Subsidiaries for the fiscal quarter ending on such date. Such financial statements
(including in each case related schedules and notes) are complete and correct and present fairly,
in all material respects and in accordance with GAAP, the consolidated financial position of the
Borrower and its consolidated Subsidiaries as at their respective dates and the results of
operations and the cash flow for such periods (subject, as to interim statements, to changes
resulting from normal year-end audit adjustments). Neither the Borrower nor any of its
Subsidiaries has on the Agreement Date any material contingent liabilities, liabilities,
liabilities for taxes, unusual or long-term commitments or unrealized or forward anticipated losses
from any unfavorable commitments, except as referred to or reflected or provided for in said
financial statements.

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     (l) No Material Adverse Change. Since December 31, 2004, there has been no material
adverse change in the consolidated financial condition, results of operations, business or
prospects of the Borrower and its consolidated Subsidiaries taken as a whole. Each of the
Borrower, its Subsidiaries and the other Loan Parties is Solvent.

     (m) ERISA. Each member of the ERISA Group is in compliance with its obligations under
the minimum funding standards of ERISA and the Internal Revenue Code with respect to each Plan and
is in compliance with the presently applicable provisions of ERISA and the Internal Revenue Code
with respect to each Plan, except in each case for noncompliances which could not reasonably be
expected to have a Material Adverse Effect. As of the Agreement Date, no member of the ERISA Group
has (i) sought a waiver of the minimum funding standard under Section 412 of the Internal Revenue
Code in respect of any Plan, (ii) failed to make any contribution or payment to any Plan or
Multiemployer Plan or in respect of any Benefit Arrangement, or made any amendment to any Plan or
Benefit Arrangement, which has resulted or could result in the imposition of a Lien or the posting
of a bond or other security under ERISA or the Internal Revenue Code or (iii) incurred any
liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section
4007 of ERISA.

     (n) Not Plan Assets; No Prohibited Transaction. None of the assets of the Borrower,
any Subsidiary or any other Loan Party constitute “plan assets” within the meaning of ERISA, the
Internal Revenue Code and the respective regulations promulgated thereunder. The execution,
delivery and performance of this Agreement and the other Loan Documents, and the borrowing and
repayment of amounts hereunder, do not and will not constitute “prohibited transactions” under
ERISA or the Internal Revenue Code.

     (o) Absence of Defaults. Neither the Borrower, any Subsidiary nor any other Loan
Party is in default under its articles of incorporation, bylaws, partnership agreement or other
similar organizational documents, and no event has occurred, which has not been remedied, cured or
waived: (i) which constitutes a Default or an Event of Default; or (ii) which constitutes, or
which with the passage of time, the giving of notice, a determination of materiality, the
satisfaction of any condition, or any combination of the foregoing, would constitute, a default or
event of default by the Borrower, any Subsidiary or any other Loan Party under any agreement (other
than this Agreement) or judgment, decree or order to which the Borrower or any Subsidiary or other
Loan Party is a party or by which the Borrower or any Subsidiary or other Loan Party or any of
their respective properties may be bound where such default or event of default could, individually
or in the aggregate, have a Material Adverse Effect.

     (p) Environmental Laws. Each of the Borrower, its Subsidiaries and the other Loan
Parties has obtained all Governmental Approvals which are required under Environmental Laws and is
in compliance with all terms and conditions of such Governmental Approvals which the failure to
obtain or to comply with could reasonably be expected to have a Material Adverse Effect. Except
for any of the following matters that could not be reasonably expected to have a Material Adverse
Effect, (i) the Borrower is not aware of, and has not received notice of, any past, present, or
future events, conditions, circumstances, activities, practices, incidents, actions, or plans
which, with respect to the Borrower, its Subsidiaries and each other Loan Party, may interfere with
or prevent compliance or continued compliance with Environmental Laws, or may

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give rise to any common-law or legal liability, or otherwise form the basis of any claim, action,
demand, suit, proceeding, hearing, study, or investigation, based on or related to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport, or handling or the
emission, discharge, release or threatened release into the environment, of any pollutant,
contaminant, chemical, or industrial, toxic, or other Hazardous Material; and (ii) there is no
civil, criminal, or administrative action, suit, demand, claim, hearing, notice, or demand letter,
notice of violation, investigation, or proceeding pending or, to the Borrower’s knowledge after due
inquiry, threatened, against the Borrower, its Subsidiaries and each other Loan Party relating in
any way to Environmental Laws.

     (q) Investment Company; Public Utility Holding Company. Neither the Borrower nor any
Subsidiary nor any other Loan Party is (i) an “investment company” or a company “controlled” by an
“investment company” within the meaning of the Investment Company Act of 1940, as amended, (ii) a
“holding company” or a “subsidiary company” of a “holding company”, or an “affiliate” of a “holding
company” or of a “subsidiary company” of a “holding company”, within the meaning of the Public
Utility Holding Company Act of 1935, as amended, or (iii) subject to any other Applicable Law which
purports to regulate or restrict its ability to borrow money or to consummate the transactions
contemplated by this Agreement or to perform its obligations under any Loan Document to which it is
a party.

     (r) Margin Stock. Neither the Borrower, any Subsidiary nor any other Loan Party is
engaged principally, or as one of its important activities, in the business of extending credit for
the purpose, whether immediate, incidental or ultimate, of buying or carrying “margin stock” within
the meaning of Regulation U of the Board of Governors of the Federal Reserve System.

     (s) Affiliate Transactions. Except as permitted by Section 9.11., neither the
Borrower, any Subsidiary nor any other Loan Party is a party to or bound by any agreement or
arrangement (whether oral or written) to which any Affiliate of the Borrower, any Subsidiary or any
other Loan Party is a party.

     (t) Intellectual Property. Each of the Borrower, each other Loan Party and each other
Subsidiary owns or has the right to use, under valid license agreements or otherwise, all material
patents, licenses, franchises, trademarks, trademark rights, trade names, trade name rights, trade
secrets and copyrights (collectively, “Intellectual Property”) necessary to the conduct of its
businesses as now conducted and as contemplated by the Loan Documents, without known conflict with
any patent, license, franchise, trademark, trade secret, trade name, copyright, or other
proprietary right of any other Person. The Borrower, each other Loan Party and each other
Subsidiary have taken all such steps as they deem reasonably necessary to protect their respective
rights under and with respect to such Intellectual Property. No material claim has been asserted
by any Person with respect to the use of any Intellectual Property by the Borrower, any other Loan
Party or any other Subsidiary, or challenging or questioning the validity or effectiveness of any
Intellectual Property. The use of such Intellectual Property by the Borrower, its Subsidiaries and
the other Loan Parties, does not infringe on the rights of any Person, subject to such claims and
infringements as do not, in the aggregate, give rise to any liabilities on the part of the
Borrower, any other Loan Party or any other Subsidiary that could reasonably be expected to have a
Material Adverse Effect.

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     (u) Business. As of the Agreement Date, the Borrower and its Subsidiaries are engaged
in the business of owning, selling, acquiring, renovating, developing and managing middle market
apartment communities, together with other business activities incidental thereto.

     (v) Broker’s Fees. No broker’s or finder’s fee, commission or similar compensation
will be payable with respect to the transactions contemplated hereby. No other similar fees or
commissions will be payable by any Loan Party for any other services rendered to the Borrower or
any of its Subsidiaries ancillary to the transactions contemplated hereby.

     (w) Accuracy and Completeness of Information. No written information, report or other
papers or data (excluding financial projections and other forward looking statements) furnished to
the Agent or any Lender by, on behalf of, or at the direction of, the Borrower, any Subsidiary or
any other Loan Party in connection with or relating in any way to this Agreement, contained any
untrue statement of a fact material to the creditworthiness of the Borrower, any Subsidiary or any
other Loan Party or omitted to state a material fact necessary in order to make such statements
contained therein, in light of the circumstances under which they were made, not misleading. All
financial statements furnished to the Agent or any Lender by, on behalf of, or at the direction of,
the Borrower, any Subsidiary or any other Loan Party in connection with or relating in any way to
this Agreement, present fairly, in all material respects and in accordance with GAAP, the financial
position of the Persons involved as at the date thereof and the results of operations for such
periods. All financial projections and other forward looking statements prepared by or on behalf
of the Borrower, any Subsidiary or any other Loan Party that have been or may hereafter be made
available to the Agent or any Lender were or will be prepared in good faith based on reasonable
assumptions. As of the Effective Date, no fact is known to the Borrower which has had, or may in
the future have (so far as the Borrower can reasonably foresee), a Material Adverse Effect which
has not been set forth in the financial statements referred to in Section 6.1.(k) or in such
information, reports or other papers or data or otherwise disclosed in writing to the Agent and the
Lenders.

     (x) REIT Status. The Borrower qualifies as a REIT and is in compliance with all
requirements and conditions imposed under the Internal Revenue Code to allow the Borrower to
maintain its status as a REIT.

     (y) Unencumbered Pool Assets. As of the Agreement Date, Schedule 6.1.(y) is a correct
and complete list of all Unencumbered Pool Assets. Each of the assets included by the Borrower in
calculations of Gross Asset Value of the Unencumbered Pool satisfies all of the requirements
contained in the definition of “Unencumbered Pool Asset”.

     (z) Foreign Assets Control. None of the Borrower, any Subsidiary or any Affiliate of
the Borrower: (i) is a Sanctioned Person, (ii) has any of its assets in Sanctioned Entities, or
(iii) derives any of its operating income from investments in, or transactions with, Sanctioned
Persons or Sanctioned Entities.

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Section 6.2. Survival of Representations and Warranties, Etc.

     All statements contained in any certificate, financial statement or other instrument delivered
by or on behalf of the Borrower, any Subsidiary or any other Loan Party to the Agent or any Lender
pursuant to or in connection with this Agreement or any of the other Loan Documents (including, but
not limited to, any such statement made in or in connection with any amendment thereto or any
statement contained in any certificate, financial statement or other instrument delivered by or on
behalf of the Borrower prior to the Agreement Date and delivered to the Agent or any Lender in
connection with the underwriting or closing the transactions contemplated hereby) shall constitute
representations and warranties made by the Borrower in favor of the Agent and the Lenders under
this Agreement. All representations and warranties made under this Agreement and the other Loan
Documents shall be deemed to be made at and as of the Agreement Date, the Effective Date, the date
on which any extension of the Termination Date is effectuated pursuant to Section 2.13. and the
date of the occurrence of any Credit Event, except to the extent that such representations and
warranties expressly relate solely to an earlier date (in which case such representations and
warranties shall have been true and accurate on and as of such earlier date) and except for changes
in factual circumstances specifically permitted hereunder. All such representations and warranties
shall survive the effectiveness of this Agreement, the execution and delivery of the Loan Documents
and the making of the Loans and the issuance of the Letters of Credit.

Article VII. Affirmative Covenants

     For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required
pursuant to Section 12.6., all of the Lenders) shall otherwise consent in the manner provided for
in Section 12.6., the Borrower shall comply with the following covenants:

Section 7.1. Preservation of Existence and Similar Matters.

     Except as otherwise permitted under Section 9.7., the Borrower shall, and shall cause each
Subsidiary and each other Loan Party to, preserve and maintain its respective existence, rights,
franchises, licenses and privileges in the jurisdiction of its incorporation or formation and
qualify and remain qualified and authorized to do business in each jurisdiction in which the
character of its properties or the nature of its business requires such qualification and
authorization and where the failure to be so authorized and qualified could reasonably be expected
to have a Material Adverse Effect.

Section 7.2. Compliance with Applicable Law and Material Contracts.

     The Borrower shall, and shall cause each Subsidiary and each other Loan Party to, comply with
(a) all Applicable Law, including the obtaining of all Governmental Approvals, the failure with
which to comply could reasonably be expected to have a Material Adverse Effect, and (b) all terms
and conditions of all Material Contracts to which it is a party.

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Section 7.3. Maintenance of Property.

     In addition to the requirements of any of the other Loan Documents, the Borrower shall, and
shall cause each Subsidiary and other Loan Party to, (a) protect and preserve all of its material
properties, including, but not limited to, all Intellectual Property, and maintain in good repair,
working order and condition all tangible properties, ordinary wear and tear excepted, and (b) make
or cause to be made all needed and appropriate repairs, renewals, replacements and additions to
such properties.

Section 7.4. Conduct of Business.

     The Borrower shall, and shall cause its Subsidiaries and the other Loan Parties to carry on,
their respective businesses as described in Section 6.1.(u).

Section 7.5. Insurance.

     In addition to the requirements of any of the other Loan Documents, the Borrower shall, and
shall cause each Subsidiary and other Loan Party to, maintain insurance (on a replacement cost
basis) with financially sound and reputable insurance companies against such risks and in such
amounts as is customarily maintained by Persons engaged in similar businesses or as may be required
by Applicable Law, and from time to time deliver to the Agent upon its request a detailed list,
together with copies of all policies of the insurance then in effect, stating the names of the
insurance companies, the amounts and rates of the insurance, the dates of the expiration thereof
and the properties and risks covered thereby.

Section 7.6. Payment of Taxes and Claims.

     The Borrower shall, and shall cause each Subsidiary and other Loan Party to, pay and discharge
when due (a) all taxes, assessments and governmental charges or levies imposed upon it or upon its
income or profits or upon any properties belonging to it, and (b) all lawful claims of materialmen,
mechanics, carriers, warehousemen and landlords for labor, materials, supplies and rentals which,
if unpaid, might become a Lien on any properties of such Person; provided, however, that this
Section shall not require the payment or discharge of any such tax, assessment, charge, levy or
claim which is being contested in good faith by appropriate proceedings which operate to suspend
the collection thereof and for which adequate reserves have been established on the books of the
Borrower, such Subsidiary or such other Loan Party, as applicable, in accordance with GAAP.

Section 7.7. Visits and Inspections.

     The Borrower shall, and shall cause each Subsidiary and other Loan Party to, permit
representatives or agents of any Lender or the Agent, from time to time after reasonable prior
notice if no Event of Default exists, as often as may be reasonably requested, but only during
normal business hours and at the expense of such Lender or the Agent (unless a Default or Event of
Default shall exist, in which case the exercise by the Agent or such Lender of its rights under
this Section shall be at the expense of the Borrower), as the case may be, to: (a) visit and
inspect all properties of the Borrower or such Subsidiary or other Loan Party to the extent any
such right

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to visit or inspect is within the control of such Person; (b) inspect and make extracts from their
respective books and records, including but not limited to management letters prepared by
independent accountants, other than books and records subject to the attorney-client privilege or
confidentiality restrictions; and (c) discuss with its officers and employees, and its independent
accountants, its business, properties, condition (financial or otherwise), results of operations
and performance. If requested by the Agent, the Borrower shall execute an authorization letter
addressed to its accountants authorizing the Agent or any Lender to discuss the financial affairs
of the Borrower and any Subsidiary or any other Loan Party with its accountants.

Section 7.8. Use of Proceeds; Letters of Credit.

     The Borrower shall use the proceeds of all Loans and all Letters of Credit for general
corporate purposes only. No part of the proceeds of any Loan or Letter of Credit will be used (a)
for the purpose of buying or carrying “margin stock” within the meaning of Regulation U of the
Board of Governors of the Federal Reserve System or (b) fund any operations in, finance any
investments or activities in, or make any payments to, a Sanctioned Person or Sanctioned Entity.

Section 7.9. Environmental Matters.

     The Borrower shall, and shall cause all of its Subsidiaries and the other Loan Parties to,
comply with all Environmental Laws the failure with which to comply could reasonably be expected to
have a Material Adverse Effect. If the Borrower, any Subsidiary or any other Loan Party shall (a)
receive notice that any violation of any Environmental Law may have been committed or is about to
be committed by such Person, (b) receive notice that any administrative or judicial complaint or
order has been filed or is about to be filed against the Borrower, any Subsidiary or any other Loan
Party alleging violations of any Environmental Law or requiring the Borrower, any Subsidiary or any
other Loan Party to take any action in connection with the release of Hazardous Materials or (c)
receive any notice from a Governmental Authority or private party alleging that the Borrower, any
Subsidiary or any other Loan Party may be liable or responsible for costs associated with a
response to or cleanup of a release of Hazardous Materials or any damages caused thereby, and such
notices, individually or in the aggregate, could reasonably be expected to have a Material Adverse
Effect, the Borrower shall provide the Agent and each Lender with a copy of such notice promptly,
and in any event within 10 Business Days, after the receipt thereof by the Borrower, any Subsidiary
or any other Loan Party. The Borrower shall, and shall cause its Subsidiaries and the other Loan
Parties to, take promptly all actions necessary to prevent the imposition of any Liens on any of
their respective properties arising out of or related to any Environmental Laws.

Section 7.10. Books and Records.

     The Borrower shall, and shall cause each of its Subsidiaries and the other Loan Parties to,
maintain books and records pertaining to its respective business operations in such detail, form
and scope as is consistent with good business practice and in accordance with GAAP.

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Section 7.11. Further Assurances.

     The Borrower shall, at the Borrower’s cost and expense and upon request of the Agent, execute
and deliver or cause to be executed and delivered, to the Agent such further instruments, documents
and certificates, and do and cause to be done such further acts that may be reasonably necessary or
advisable in the reasonable opinion of the Agent to carry out more effectively the provisions and
purposes of this Agreement and the other Loan Documents.

Section 7.12. New Subsidiaries/Guarantors.

     (a) Requirement to Become Guarantor. Within 45 days of any Person (other than an
Excluded Subsidiary) becoming a Material Subsidiary after the Effective Date, the Borrower shall
deliver to the Agent each of the following items, each in form and substance satisfactory to the
Agent: (i) an Accession Agreement executed by such Material Subsidiary and (ii) the items that
would have been delivered under Sections 5.1.(a)(iv), (ix) through (xii) and (xv) if such Material
Subsidiary had been one on the Effective Date; provided, however, promptly (and in
any event within 30 days) upon any Excluded Subsidiary ceasing to be subject to the restriction
which prevented it from delivering an Accession Agreement pursuant to this Section, such Subsidiary
shall comply with the provisions of this Section. The Borrower shall send to each Lender copies of
each of the foregoing items once the Agent has received all such items with respect to a Material
Subsidiary.

     (b) Other Guarantors. The Borrower may, at its option, cause any Subsidiary that is
not already a Guarantor to become a Guarantor by executing and delivering to the Agent the items
required to be delivered under the immediately preceding subsection (a).

     (c) Release of a Guarantor. The Borrower may request in writing that the Agent
release, and upon receipt of such request the Agent shall release, a Guarantor from the Guaranty so
long as: (i) such Guarantor meets, or will meet simultaneously with its release from the Guaranty,
all of the provisions of the definition of the term “Excluded Subsidiary” or has ceased to be, or
simultaneously with its release from the Guaranty will cease to be, a Material Subsidiary; (ii)
such Guarantor is not otherwise required to be a party to the Guaranty under the immediately
preceding subsection (a); (iii) no Default or Event of Default shall then be in existence or would
occur as a result of such release, including without limitation, a Default or Event of Default
resulting from a violation of any of the covenants contained in Section 9.1.; and (iv) the Agent
shall have received such written request at least 10 Business Days prior to the requested date of
release. Delivery by the Borrower to the Agent of any such request shall constitute a
representation by the Borrower that the matters set forth in the preceding sentence (both as of the
date of the giving of such request and as of the date of the effectiveness of such request) are
true and correct with respect to such request.

Section 7.13. REIT Status.

     The Borrower shall at all times maintain its status as a REIT.

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Section 7.14. Exchange Listing.

     The Borrower shall maintain at least one class of common shares of the Borrower having trading
privileges on the New York Stock Exchange or the American Stock Exchange or which is the subject of
price quotations in the over-the-counter market as reported by the National Association of
Securities Dealers Automated Quotation System.

Article VIII. Information

     For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required
pursuant to Section 12.6., all of the Lenders) shall otherwise consent in the manner set forth in
Section 12.6., the Borrower shall furnish to each Lender (or to the Agent if so provided below) at
its Lending Office:

Section 8.1. Quarterly Financial Staltements.

     As soon as available and in any event within 60 days after the close of each of the first,
second and third fiscal quarters of the Borrower, the unaudited consolidated balance sheet of the
Borrower and its Subsidiaries as at the end of such period and the related unaudited consolidated
statements of income, shareholders’ equity and cash flows of the Borrower and its Subsidiaries for
such period, setting forth in each case in comparative form the figures as of the end of and for
the corresponding periods of the previous fiscal year, all of which shall be certified by the chief
financial officer of the Borrower, in his or her opinion, to present fairly, in accordance with
GAAP, the consolidated financial position of the Borrower and its Subsidiaries as at the date
thereof and the results of operations for such period (subject to normal year-end audit
adjustments).

Section 8.2. Year-End Statements.

     Within 90 days after the end of each fiscal year of the Borrower, the audited consolidated
balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year and the
related audited consolidated statements of income, shareholders’ equity and cash flows of the
Borrower and its Subsidiaries for such fiscal year, setting forth in comparative form the figures
as at the end of and for the previous fiscal year, all of which shall be certified by (a) the chief
financial officer of the Borrower, in his or her opinion, to present fairly, in accordance with
GAAP, the consolidated financial position of the Borrower and its Subsidiaries as at the date
thereof and the results of operations for such period and (b) independent certified public
accountants of recognized national standing, whose certificate shall be unqualified and who shall
have authorized the Borrower to deliver such financial statements and certification thereof to the
Agent and the Lenders pursuant to this Agreement.

Section 8.3. Compliance Certificate.

     At the time financial statements are furnished pursuant to Sections 8.1. and 8.2., and within
5 Business Days of the Agent’s request with respect to any other fiscal period, a certificate
substantially in the form of Exhibit N (a “Compliance Certificate”) executed by the chief financial
officer, the treasurer or the senior vice president of finance of the Borrower:

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(a) setting forth in reasonable detail as at the end of such quarterly accounting period, fiscal
year, or other fiscal period, as the case may be, the calculations required to establish whether or
not the Borrower was in compliance with the covenants contained in Sections 9.1. and 9.4. and (b)
stating that, to the best of his or her knowledge, after due inquiry, no Default or Event of
Default exists, or, if such is not the case, specifying such Default or Event of Default and its
nature, when it occurred, whether it is continuing and the steps being taken by the Borrower with
respect to such event, condition or failure. Each Compliance Certificate shall be accompanied by a
reasonably detailed list of all assets included in calculations of Gross Asset Value of the
Unencumbered Pool and shall disclose which assets have been added or removed from such calculation
since the previous list delivered to the Agent.

Section 8.4. Other Information.

     (a) Management Reports. Promptly upon receipt thereof, copies of all management
reports, if any, submitted to the Borrower or its board of directors by its independent public
accountants;

     (b) Securities Filings. Prompt notice of the filing of all registration statements
(excluding the exhibits thereto (unless requested by the Agent) and any registration statements on
Form S-8 or its equivalent), reports on Forms 10-K, 10-Q and 8-K (or their equivalents) and all
other periodic reports which the Borrower, any Subsidiary or any other Loan Party shall file with
the Securities and Exchange Commission (or any Governmental Authority substituted therefor) or any
national securities exchange (such registration statements, reports and other periodic reports
collectively referred to a “Security Filing”), and copies of any of the foregoing that is not
publicly available to the Agent and the Lenders or at a Lender’s request therefor;

     (c) Shareholder Information. Promptly upon the mailing thereof to the shareholders of
the Borrower generally, copies of all financial statements, reports and proxy statements so mailed
and promptly upon the issuance thereof copies of all press releases issued by the Borrower, any
Subsidiary or any other Loan Party (but only to the extent that such financial statements, reports
and proxy statements are not publicly available to the Agent and the Lenders);

     (d) ERISA. If and when any member of the ERISA Group (i) gives or is required to give
notice to the PBGC of any “reportable event” (as defined in Section 4043 of ERISA) with respect to
any Plan which might constitute grounds for a termination of such Plan under Title IV of ERISA, or
knows that the plan administrator of any Plan has given or is required to give notice of any such
reportable event, a copy of the notice of such reportable event given or required to be given to
the PBGC; (ii) receives notice of complete or partial withdrawal liability under Title IV of ERISA
or notice that any Multiemployer Plan is in reorganization, is insolvent or has been terminated, a
copy of such notice; (iii) receives notice from the PBGC under Title IV of ERISA of an intent to
terminate, impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or
appoint a trustee to administer any Plan, a copy of such notice; (iv) applies for a waiver of the
minimum funding standard under Section 412 of the Internal Revenue Code, a copy of such
application; (v) gives notice of intent to terminate any Plan under Section 4041(c) of ERISA, a
copy of such notice and other information filed with the PBGC; (vi) gives notice of withdrawal from
any Plan pursuant to Section 4063 of ERISA, a copy of such

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notice; or (vii) fails to make any payment or contribution to any Plan or Multiemployer Plan or in
respect of any Benefit Arrangement or makes any amendment to any Plan or Benefit Arrangement which
has resulted or could result in the imposition of a Lien or the posting of a bond or other
security, a certificate of the chief financial officer of the Borrower setting forth details as to
such occurrence and the action, if any, which the Borrower or applicable member of the ERISA Group
is required or proposes to take;

     (e) Litigation. To the extent the Borrower or any Subsidiary is aware of the same,
prompt notice of the commencement of any proceeding or investigation by or before any Governmental
Authority and any action or proceeding in any court or other tribunal or before any arbitrator
against or in any other way relating adversely to, or adversely affecting, the Borrower or any
Subsidiary or any of their respective properties, assets or businesses which could reasonably be
expected to have a Material Adverse Effect, and prompt notice of the receipt of notice that any
United States income tax returns of the Borrower or any of its Subsidiaries are being audited;

     (f) Modification of Organizational Documents. A copy of any amendment to the articles
of incorporation, bylaws, partnership agreement or other similar organizational documents of the
Borrower or any other Loan Party promptly upon, and in any event within 15 Business Days of, the
effectiveness thereof;

     (g) Change of Management or Financial Condition. Prompt notice of any change in the
senior management of the Borrower, or any other Loan Party and any change in the business, assets,
liabilities, financial condition, results of operations or business prospects of the Borrower, any
Subsidiary or any other Loan Party which has had or could reasonably be expected to have a Material
Adverse Effect;

     (h) Default. Notice of the occurrence of any of the following promptly upon a
Responsible Officer of the Borrower obtaining knowledge thereof: (i) any Default or Event of
Default or (ii) any event which constitutes or which with the passage of time, the giving of
notice, or otherwise, would constitute a default or event of default by the Borrower, any
Subsidiary or any other Loan Party under any Material Contract to which any such Person is a party
or by which any such Person or any of its respective properties may be bound;

     (i) Notice of Violations of Law. Prompt notice if the Borrower, any Subsidiary or any
other Loan Party shall receive any notification from any Governmental Authority alleging a
violation of any Applicable Law or any inquiry which could reasonably be expected to have a
Material Adverse Effect;

     (j) Material Subsidiary. Prompt notice of any Person becoming a Material Subsidiary;

     (k) Material Asset Sales. Prompt notice of the sale, transfer or other disposition of
any material assets of the Borrower, any Subsidiary or any other Loan Party to any Person other
than the Borrower, any Subsidiary or any other Loan Party (but only to the extent such material

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asset sale is not disclosed in a Securities Filing that is publicly available to the Agent and the
Lenders);

     (l) Material Contracts. Promptly upon entering into any Material Contract after the
Agreement Date, a copy to the Agent of such Material Contract (but only to the extent such Material
Contract is not publicly available to the Agent and the Lenders);

     (m) Patriot Act Information. From time to time and promptly upon each request,
information identifying the Borrower as a Lender may request in order to comply with the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)); and

     (n) Other Information. From time to time and promptly upon each request, such data,
certificates, reports, statements, opinions of counsel, documents or further information regarding
the business, assets, liabilities, financial condition, results of operations or business prospects
of the Borrower or any of its Subsidiaries as the Agent or any Lender may reasonably request.

Article IX. Negative Covenants

     For so long as this Agreement is in effect, unless the Requisite Lenders (or, if required
pursuant to Section 12.6., all of the Lenders) shall otherwise consent in the manner set forth in
Section 12.6., the Borrower shall comply with the following covenants:

Section 9.1. Financial Covenants.

     The Borrower shall not permit:

     (a) Maximum Leverage Ratio. The ratio of (i) Consolidated Funded Debt to (ii) Gross
Asset Value, to exceed 0.60 to 1.0 at any time; provided, however, that if such ratio is greater
than 0.60 to 1.0 but less than 0.65 to 1.0, then such failure to comply with the foregoing covenant
shall not constitute a Default or Event of Default so long as such ratio ceases to exceed 0.60 to
1.00 within 180 days following the date such ratio first exceeded 0.60 to 1.00.

     (b) Minimum Fixed Charge Coverage Ratio. The ratio of (i) Consolidated Adjusted
EBITDA for the two fiscal quarter period of the Borrower most recently ending (annualized) to (ii)
Consolidated Total Fixed Charges for such period (annualized), to be less than 1.50 to 1.00 at the
end of any fiscal quarter.

     (c) Maximum Secured Debt. The ratio of (i) Consolidated Secured Debt to (ii) Gross
Asset Value, to be greater than 0.35 to 1.00 at any time.

     (d) Minimum Net Worth. Consolidated Adjusted Tangible Net Worth at any time to be
less than $1,200,000,000.

     (e) Minimum Unencumbered Pool Leverage Ratio. The ratio of (i) Gross Asset Value of
the Unencumbered Pool to (ii) Consolidated Unsecured Debt, to be less than 1.50 to 1.00 at the end
of any fiscal quarter.

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Section 9.2. Restricted Payments.

     Subject to the following sentence, if a Default or Event of Default exists, the Borrower shall
not, and shall not permit any other member of the Consolidated Group to, declare or make any
Restricted Payment; provided, however, that: (a) Subsidiaries may pay Restricted
Payments to the Borrower or any other Subsidiary and (b) the Borrower may only declare or make cash
distributions to its shareholders during any fiscal year in an aggregate amount not to exceed the
minimum amount necessary for the Borrower to remain in compliance with Section 7.13. If a Default
or Event of Default specified in Section 10.1.(a), Section 10.1.(b), Section 10.1.(f) or Section
10.1.(g) shall exist, or if as a result of the occurrence of any other Event of Default any of the
Obligations have been accelerated pursuant to Section 10.2.(a), the Borrower shall not, and shall
not permit any other member of the Consolidated Group to, make any Restricted Payments to any
Person other than to the Borrower or any Subsidiary.

Section 9.3. Debt.

     The Borrower shall not, and shall not permit any Subsidiary or any other Loan Party to, incur,
assume, or otherwise become obligated in respect of any Debt after the Agreement Date if
immediately prior to the assumption, incurring or becoming obligated in respect thereof, or
immediately thereafter and after giving effect thereto, a Default or Event of Default is or would
be in existence, including without limitation, a Default or Event of Default resulting from a
violation of any of the covenants contained in Section 9.1.

Section 9.4. Certain Permitted Investments.

     The Borrower shall not, and shall not permit any Subsidiary to, make any Investment in or
otherwise own the following items which would cause the aggregate value of such holdings of the
Borrower and such other Subsidiaries to exceed 30.0% of Gross Asset Value at any time:

     (a) Investments in partnerships, joint ventures, Unconsolidated Affiliates, and other Persons
that, in each case, are not Subsidiaries, with the value thereof determined in a manner consistent
with the definition of Gross Asset Value or, if not contemplated under the definition of Gross
Asset Value, as determined in accordance with GAAP;

     (b) Development Properties valued at book value, Condominium Properties valued at their
Condominium Property Value, and Renovation Properties valued at their Renovation Property Value;

     (c) Properties that are developed but that are not Multifamily Properties, with value based on
the lower of cost or market price determined in accordance with GAAP;

     (d) raw land, valued at current book value;

     (e) promissory notes, including any secured by a Mortgage, payable solely to any member of the
Consolidated Group and the obligors of which are not Affiliates of the Borrower,

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and all marketable securities, with value based on the lower of cost or market price determined in
accordance with GAAP; and

     (f) Investments in Multifamily REIT Preferred Interests; provided, however, such Investments
must be acquired or otherwise made in connection with the acquisition of a portfolio of Multifamily
Properties or a series of Multifamily Properties.

Section 9.5. Investments Generally.

     The Borrower shall not, and shall not permit any Subsidiary or other Loan Party to, directly
or indirectly, acquire, make or purchase any Investment, or permit any Investment of such Person to
be outstanding on and after the Agreement Date, other than the following:

     (a) Investments in Subsidiaries in existence on the Agreement Date and disclosed on Part I of
Schedule 6.1.(b);

     (b) Investments to acquire Equity Interests of a Subsidiary or any other Person who after
giving effect to such acquisition would be a Subsidiary, so long as in each case (i) immediately
prior to such Investment, and after giving effect thereto, no Default or Event of Default is or
would be in existence and (ii) if such Subsidiary is (or after giving effect to such Investment
would become) a Material Subsidiary, and is not an Excluded Subsidiary, the terms and conditions
set forth in Section 7.12. are satisfied;

     (c) Investments permitted under Section 9.4.;

     (d) Investments in Cash Equivalents;

     (e) intercompany Debt among the Borrower and its Wholly Owned Subsidiaries provided that such
Debt is permitted by the terms of Section 9.3.;

     (f) loans and advances to officers and employees for moving, entertainment, travel and other
similar expenses in the ordinary course of business consistent with past practices; and

     (g) any other Investment so long as immediately prior to making such Investment, and
immediately thereafter and after giving effect thereto, no Default or Event of Default is or would
be in existence.

Section 9.6. Liens; Negative Pledges; Other Matters.

     (a) The Borrower shall not, and shall not permit any Subsidiary or other Loan Party to,
create, assume, or incur any Lien (other than Permitted Liens) upon any of its properties, assets,
income or profits of any character whether now owned or hereafter acquired if immediately prior to
the creation, assumption or incurring of such Lien, or immediately thereafter, a Default or Event
of Default is or would be in existence, including without limitation, a Default or Event of Default
resulting from a violation of any of the covenants contained in Section 9.1.

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     (b) The Borrower shall not, and shall not permit any Subsidiary or other Loan Party to, enter
into, assume or otherwise be bound by any Negative Pledge except for a Negative Pledge contained in
any agreement (i) evidencing Debt which the Borrower or such Subsidiary may create, incur, assume,
or permit or suffer to exist under Section 9.3.; (ii) which Debt is secured by a Lien permitted to
exist and (iii) which prohibits the creation of any other Lien on only the property securing such
Debt as of the date such agreement was entered into.

     (c) The Borrower shall not, and shall not permit any Subsidiary or other Loan Party to, create
or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction
of any kind on the ability of any Subsidiary (other than an Excluded Subsidiary) to: (i) pay
dividends or make any other distribution on any of such Subsidiary’s capital stock or other equity
interests owned by the Borrower or any Subsidiary; (ii) pay any Debt owed to the Borrower or any
Subsidiary; (iii) make loans or advances to the Borrower or any Subsidiary; or (iv) transfer any of
its property or assets to the Borrower or any Subsidiary.

Section 9.7. Merger, Consolidation, Sales of Assets and Other Arrangements.

     The Borrower shall not, and shall not permit any Subsidiary or other Loan Party to: (i) enter
into any transaction of merger or consolidation; (ii) liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution); or (iii) convey, sell, lease, sublease, transfer or
otherwise dispose of, in one transaction or a series of transactions, all or any substantial part
of its business or assets, whether now owned or hereafter acquired; provided,
however, that:

     (a) any of the actions described in the immediately preceding clauses (i) through (iii) may be
taken with respect to any Subsidiary or any other Loan Party (other than the Borrower) so long as
immediately prior to the taking of such action, and immediately thereafter and after giving effect
thereto, no Default or Event of Default is or would exist; notwithstanding the foregoing, any such
Loan Party (other than the Borrower) may enter into a transaction of merger pursuant to which such
Loan Party is not the survivor of such merger only if (i) the Borrower shall have given the Agent
and the Lenders at least 10 Business Days’ prior written notice of such merger, such notice to
include a certification to the effect that immediately after and after giving effect to such
action, no Default or Event of Default is or would be in existence; provided that if the survivor
of such merger is (or is to become) a Loan Party, then such notice and certification may be given
within 5 Business Days of consummation of such merger; (ii) if the survivor entity is a Material
Subsidiary (and not an Excluded Subsidiary) within 5 Business Days of consummation of such merger,
the survivor entity shall have executed and delivered an assumption agreement in form and substance
satisfactory to the Agent pursuant to which such survivor entity shall assume all of such Loan
Party’s Obligations under this Agreement and the other Loan Documents to which it is a party; (iii)
within 30 days of consummation of such merger, the survivor entity delivers to the Agent the
following: (A) items of the type referred to in Sections 5.1.(a)(v) through (viii) with respect to
the survivor entity as in effect after consummation of such merger (if not previously delivered to
the Agent and still in effect), (B) copies of all documents entered into by such Loan Party or the
survivor entity to effectuate the consummation of such merger, including, but not limited to,
articles of merger and the plan of merger, (C) copies, certified by the Secretary or Assistant
Secretary (or other individual performing similar functions) of such Loan Party or the survivor
entity, of all corporate and shareholder action authorizing such merger and (D) copies of any
filings with the Securities and

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Exchange Commission in connection with such merger; and (iv) such Loan Party and the survivor
entity each takes such other action and delivers such other documents, instruments, opinions and
agreements as the Agent may reasonably request;

     (b) the Borrower, its Subsidiaries and the other Loan Parties may lease and sublease their
respective assets, as lessor or sublessor (as the case may be), in the ordinary course of their
business;

     (c) a Person may merge with and into the Borrower so long as (i) the Borrower is the survivor
of such merger, (ii) immediately prior to such merger, and immediately thereafter and after giving
effect thereto, no Default or Event of Default is or would be in existence, and (iii) the Borrower
shall have given the Agent and the Lenders at least 10 Business Days’ prior written notice of such
merger, such notice to include a certification as to the matters described in the immediately
preceding clause (ii) (except that such prior notice shall not be required in the case of the
merger of a Subsidiary with and into the Borrower); and

     (d) the Borrower and each Subsidiary may sell, transfer or dispose of assets among themselves.

Section 9.8. Fiscal Year.

     The Borrower shall not change its fiscal year from that in effect as of the Agreement Date.

Section 9.9. Modifications to Material Contracts.

     The Borrower shall not, and shall not permit any Subsidiary or other Loan Party to, enter into
any amendment or modification to any Material Contract which could reasonably be expected to have a
Material Adverse Effect.

Section 9.10. Modifications of Organizational Documents.

     The Borrower shall not, and shall not permit any Loan Party or other Subsidiary to, amend,
supplement, restate or otherwise modify its articles or certificate of incorporation, by-laws,
operating agreement, declaration of trust, partnership agreement or other applicable organizational
document if such amendment, supplement, restatement or other modification could reasonably be
expected to have a Material Adverse Effect.

Section 9.11. Transactions with Affiliates.

     The Borrower shall not, and shall not permit any of its Subsidiaries or any other Loan Party
to, permit to exist or enter into, any transaction (including the purchase, sale, lease or exchange
of any property or the rendering of any service) with any Affiliate (other than a Loan Party or a
Wholly Owned Subsidiary), except transactions in the ordinary course of and pursuant to the
reasonable requirements of the business of the Borrower or any of its Subsidiaries and either (i)
upon fair and reasonable terms which are no less favorable to the Borrower or such Subsidiary than
would be obtained in a comparable arm’s length transaction with a Person that is

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not an Affiliate or (ii) constitute, without giving effect to subsection (i) of this Section 9.11.,
an Investment permitted under Sections 9.4. and 9.5.

Section 9.12. ERISA Exemptions.

     The Borrower shall not, and shall not permit any Subsidiary to, permit any of its respective
assets to become or be deemed to be “plan assets” within the meaning of ERISA, the Internal Revenue
Code and the respective regulations promulgated thereunder.

Article X. Default

Section 10.1. Events of Default.

     Each of the following shall constitute an Event of Default, whatever the reason for such event
and whether it shall be voluntary or involuntary or be effected by operation of Applicable Law or
pursuant to any judgment or order of any Governmental Authority:

     (a) Default in Payment of Principal. The Borrower shall fail to pay when due (whether
upon demand, at maturity, by reason of acceleration or otherwise) the principal of any of the
Loans, or any Reimbursement Obligation.

     (b) Default in Payment of Interest and Other Obligations. The Borrower shall fail to
pay when due any interest on any of the Loans or any of the other payment Obligations owing by the
Borrower under this Agreement or any other Loan Document, or any other Loan Party shall fail to pay
when due any payment Obligation owing by such other Loan Party under any Loan Document to which it
is a party, and such failure shall continue for a period of 2 Business Days.

     (c) Default in Performance. (i) The Borrower shall fail to perform or observe any
term, covenant, condition or agreement contained in the second proviso of the second sentence of
Section 2.4.(b), in Section 5.3.(b), in Section 8.4.(h) or in Article IX. or (ii) the Borrower or
any other Loan Party shall fail to perform or observe any term, covenant, condition or agreement
contained in this Agreement or any other Loan Document to which it is a party and not otherwise
mentioned in this Section and in the case of this clause (ii) only, such failure shall continue for
a period of 30 days after the earlier of (x) the date upon which a Responsible Officer of the
Borrower or such Loan Party obtains knowledge of such failure or (y) the date upon which the
Borrower has received written notice of such failure from the Agent.

     (d) Misrepresentations. Any written statement, representation or warranty made or
deemed made by or on behalf of the Borrower or any other Loan Party under this Agreement or under
any other Loan Document, or any amendment hereto or thereto, or in any other writing or statement
at any time furnished or made or deemed made by or on behalf of the Borrower or any other Loan
Party to the Agent or any Lender, shall at any time prove to have been incorrect or misleading, in
light of the circumstances in which made or deemed made, in any material respect when furnished or
made or deemed made.

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     (e) Debt Cross-Default.

     (i) The Borrower, any Subsidiary or any other Loan Party shall fail to pay when due and
payable the principal of, or interest on, any Debt (other than the Loans and other than
Nonrecourse Indebtedness) having an aggregate outstanding principal amount of $50,000,000 or
more (“Material Debt”); or

     (ii) (x) the maturity of any Material Debt shall have been accelerated in accordance
with the provisions of any indenture, contract or instrument evidencing, providing for the
creation of or otherwise concerning such Material Debt or (y) any Material Debt shall have
been required to be prepaid or repurchased prior to the stated maturity thereof; or

     (iii) any other event shall have occurred and be continuing which, with or without the
passage of time, the giving of notice, or both, would permit any holder or holders of
Material Debt, any trustee or agent acting on behalf of such holder or holders or any other
Person, to accelerate the maturity of any such Material Debt or require any such Material
Debt to be prepaid or repurchased prior to its stated maturity.

     (f) Voluntary Bankruptcy Proceeding. The Borrower, any other Loan Party or any
Subsidiary shall: (i) commence a voluntary case under the Bankruptcy Code of 1978, as amended, or
other federal bankruptcy laws (as now or hereafter in effect); (ii) file a petition seeking to take
advantage of any other Applicable Laws, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, winding-up, or composition or adjustment of debts; (iii) consent to, or fail to
contest in a timely and appropriate manner, any petition filed against it in an involuntary case
under such bankruptcy laws or other Applicable Laws or consent to any proceeding or action
described in the immediately following subsection; (iv) apply for or consent to, or fail to contest
in a timely and appropriate manner, the appointment of, or the taking of possession by, a receiver,
custodian, trustee, or liquidator of itself or of a substantial part of its property, domestic or
foreign; (v) admit in writing its inability to pay its debts as they become due; (vi) make a
general assignment for the benefit of creditors; (vii) make a conveyance fraudulent as to creditors
under any Applicable Law; or (viii) take any corporate or partnership action for the purpose of
effecting any of the foregoing.

     (g) Involuntary Bankruptcy Proceeding. A case or other proceeding shall be commenced
against the Borrower, any other Loan Party or any Subsidiary in any court of competent jurisdiction
seeking: (i) relief under the Bankruptcy Code of 1978, as amended, or other federal bankruptcy
laws (as now or hereafter in effect) or under any other Applicable Laws, domestic or foreign,
relating to bankruptcy, insolvency, reorganization, winding-up, or composition or adjustment of
debts; or (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of such
Person, or of all or any substantial part of the assets, domestic or foreign, of such Person, and
such case or proceeding shall continue undismissed or unstayed for a period of 60 consecutive
calendar days, or an order granting the remedy or other relief requested in such case or proceeding
against the Borrower, such Subsidiary or such other Loan Party (including, but not limited to, an
order for relief under such Bankruptcy Code or such other federal bankruptcy laws) shall be
entered.

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     (h) Litigation; Enforceability. The Borrower or any other Loan Party shall disavow,
revoke or terminate (or attempt to terminate) any Loan Document to which it is a party or shall
otherwise challenge or contest in any action, suit or proceeding in any court or before any
Governmental Authority the validity or enforceability of this Agreement, any Note or any other Loan
Document or this Agreement, any Note, the Guaranty or any other Loan Document shall cease to be in
full force and effect (except as a result of the express terms thereof).

     (i) Judgment. A judgment or order for the payment of money or for an injunction shall
be entered against the Borrower, any Subsidiary or any other Loan Party, by any court or other
tribunal and (i) such judgment or order shall continue for a period of 30 days without being paid,
stayed or dismissed through appropriate appellate proceedings and (ii) either (A) the amount of
such judgment or order for which insurance has not been acknowledged in writing by the applicable
insurance carrier (or the amount as to which the insurer has denied liability) exceeds,
individually or together with all other such outstanding judgments or orders entered against the
Borrower, such Subsidiaries and such other Loan Parties, $10,000,000 or (B) in the case of an
injunction or other non-monetary judgment, such judgment could reasonably be expected to have a
Material Adverse Effect.

     (j) Attachment. A warrant, writ of attachment, execution or similar process shall be
issued against any property of the Borrower, any Subsidiary or any other Loan Party which exceeds,
individually or together with all other such warrants, writs, executions and processes, $10,000,000
in amount and such warrant, writ, execution or process shall not be discharged, vacated, stayed or
bonded for a period of 30 days; provided, however, that if a bond has been issued in favor of the
claimant or other Person obtaining such warrant, writ, execution or process, the issuer of such
bond shall execute a waiver or subordination agreement in form and substance satisfactory to the
Agent pursuant to which the issuer of such bond subordinates its right of reimbursement,
contribution or subrogation to the Obligations and waives or subordinates any Lien it may have on
the assets of any Loan Party.

     (k) ERISA. Any member of the ERISA Group shall fail to pay when due an amount or
amounts aggregating in excess of $10,000,000 which it shall have become liable to pay under Title
IV of ERISA; or notice of intent to terminate a Material Plan shall be filed under Title IV of
ERISA by any member of the ERISA Group, any plan administrator or any combination of the foregoing;
or the PBGC shall institute proceedings under Title IV of ERISA to terminate, to impose liability
(other than for premiums under Section 4007 of ERISA) in respect of, or to cause a trustee to be
appointed to administer, any Material Plan; or a condition shall exist by reason of which the PBGC
would be entitled to obtain a decree adjudicating that any Material Plan must be terminated; or
there shall occur a complete or partial withdrawal from, or a default, within the meaning of
Section 4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which could cause one
or more members of the ERISA Group to incur a current payment obligation in excess of $10,000,000.

     (l) Loan Documents. An Event of Default (as defined therein) shall occur under any of
the other Loan Documents.

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     (m) Change of Control. There shall occur a Change of Control.

Section 10.2. Remedies Upon Event of Default.

     Upon the occurrence of an Event of Default the following provisions shall apply:

     (a) Acceleration; Termination of Facilities.

     (i) Automatic. Upon the occurrence of an Event of Default specified in
Sections 10.1.(f) or 10.1.(g), (A)(i) the principal of, and all accrued interest on, the
Loans and the Notes at the time outstanding, (ii) an amount equal to the Stated Amount of
all Letters of Credit outstanding as of the date of the occurrence of such Event of Default
for deposit into the Collateral Account pursuant to Section 10.5. and (iii) all of the other
Obligations of the Borrower, including, but not limited to, the other amounts owed to the
Lenders, the Swingline Lender and the Agent under this Agreement, the Notes or any of the
other Loan Documents shall become immediately and automatically due and payable by the
Borrower without presentment, demand, protest, or other notice of any kind, all of which are
expressly waived by the Borrower and (B) all of the Commitments, the obligation of the
Lenders to make Revolving Loans, the Swingline Commitment, the obligation of the Swingline
Lender to make Swingline Loans, and the obligation of the Agent to issue Letters of Credit
hereunder, shall all immediately and automatically terminate.

     (ii) Optional. If any other Event of Default shall exist, the Agent shall, at
the direction of the Requisite Lenders: (A) declare (1) the principal of, and accrued
interest on, the Loans and the Notes at the time outstanding, (2) an amount equal to the
Stated Amount of all Letters of Credit outstanding as of the date of the occurrence of such
other Event of Default for deposit into the Collateral Account pursuant to Section 10.5. and
(3) all of the other Obligations, including, but not limited to, the other amounts owed to
the Lenders and the Agent under this Agreement, the Notes or any of the other Loan Documents
to be forthwith due and payable, whereupon the same shall immediately become due and payable
without presentment, demand, protest or other notice of any kind, all of which are expressly
waived by the Borrower and (B) terminate the Commitments, the Swingline Commitment and the
obligation of the Lenders to make Loans hereunder and the obligation of the Agent to issue
Letters of Credit hereunder.

     (b) Loan Documents. The Requisite Lenders may direct the Agent to, and the Agent if
so directed shall, exercise any and all of its rights under any and all of the other Loan
Documents.

     (c) Applicable Law. The Requisite Lenders may direct the Agent to, and the Agent if
so directed shall, exercise all other rights and remedies it may have under any Applicable Law.

     (d) Appointment of Receiver. To the extent permitted by Applicable Law, the Agent and
the Lenders shall be entitled to the appointment of a receiver for the assets and properties of the
Borrower and its Subsidiaries, without notice of any kind whatsoever and without regard to the
adequacy of any security for the Obligations or the solvency of any party bound for its

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payment, to take possession of all or any portion of the business operations of the Borrower and
its Subsidiaries and to exercise such power as the court shall confer upon such receiver.

Section 10.3. Remedies Upon Default.

     Upon the occurrence of a Default specified in Sections 10.1.(f) or 10.1.(g), the Commitments
shall immediately and automatically terminate.

Section 10.4. Allocation of Proceeds.

     If an Event of Default shall exist and maturity of any of the Obligations has been
accelerated, all payments received by the Agent under any of the Loan Documents, in respect of any
principal of or interest on the Obligations or any other amounts payable by the Borrower hereunder
or thereunder, shall be applied in the following order and priority:

     (a) amounts due to the Agent and the Lenders in respect of fees and expenses due under
Section 12.2.;

     (b) payments of interest on Swingline Loans;

     (c) payments of interest on all other Loans and Reimbursement Obligations, to be
applied for the ratable benefit of the Lenders;

     (d) payments of principal of Swingline Loans;

     (e) payments of principal of all other Loans and Reimbursement Obligations, to be
applied for the ratable benefit of the Lenders;

     (f) amounts to be deposited into the Collateral Account in respect of Letters of
Credit;

     (g) amounts due the Agent and the Lenders pursuant to Sections 11.7. and 12.9.;

     (h) payments of all other amounts due and owing by the Borrower and the other Loan
Parties under any of the Loan Documents, if any, to be applied for the ratable benefit of
the Lenders; and

     (i) any amount remaining after application as provided above, shall be paid to the
Borrower or whomever else may be legally entitled thereto.

Section 10.5. Collateral Account.

     (a) As collateral security for the prompt payment in full when due of all Letter of Credit
Liabilities and the other Obligations, the Borrower hereby pledges and grants to the Agent, for the
ratable benefit of the Agent and the Lenders as provided herein, a security interest in all of its
right, title and interest in and to the Collateral Account and the balances from time to

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time in the Collateral Account (including the investments and reinvestments therein provided for
below). The balances from time to time in the Collateral Account shall not constitute payment of
any Letter of Credit Liabilities until applied by the Agent as provided herein. Anything in this
Agreement to the contrary notwithstanding, funds held in the Collateral Account shall be subject to
withdrawal only as provided in this Section.

     (b) Amounts on deposit in the Collateral Account shall be invested and reinvested by the Agent
in such Cash Equivalents as the Agent shall determine in its sole discretion. All such investments
and reinvestments shall be held in the name of and be under the sole dominion and control of the
Agent for the ratable benefit of the Lenders. The Agent shall exercise reasonable care in the
custody and preservation of any funds held in the Collateral Account and shall be deemed to have
exercised such care if such funds are accorded treatment substantially equivalent to that which the
Agent accords other funds deposited with the Agent, it being understood that the Agent shall not
have any responsibility for taking any necessary steps to preserve rights against any parties with
respect to any funds held in the Collateral Account.

     (c) If a drawing pursuant to any Letter of Credit occurs on or prior to the expiration date of
such Letter of Credit, the Borrower and the Lenders authorize the Agent to use the monies deposited
in the Collateral Account and proceeds thereof to make payment to the beneficiary with respect to
such drawing or the payee with respect to such presentment.

     (d) If an Event of Default exists, the Requisite Lenders may, in their discretion, at any time
and from time to time, instruct the Agent to liquidate any such investments and reinvestments and
apply proceeds thereof to the Obligations in accordance with Section 10.4.

     (e) So long as no Default or Event of Default exists, and to the extent amounts on deposit in
or credited to the Collateral Account exceed the aggregate amount of the Letter of Credit
Liabilities then due and owing, the Agent shall, from time to time, at the request of the Borrower,
deliver to the Borrower within 10 Business Days after the Agent’s receipt of such request from the
Borrower, against receipt but without any recourse, warranty or representation whatsoever, such
amount of the credit balances in the Collateral Account as exceeds the aggregate amount of the
Letter of Credit Liabilities at such time.

     (f) The Borrower shall pay to the Agent from time to time such fees as the Agent normally
charges for similar services in connection with the Agent’s administration of the Collateral
Account and investments and reinvestments of funds therein.

Section 10.6. Performance by Agent.

     If the Borrower shall fail to perform any covenant, duty or agreement contained in any of the
Loan Documents, the Agent may perform or attempt to perform such covenant, duty or agreement on
behalf of the Borrower after the expiration of any cure or grace periods set forth herein. In such
event, the Borrower shall, at the request of the Agent, promptly pay any amount reasonably expended
by the Agent in such performance or attempted performance to the Agent, together with interest
thereon at the applicable Post-Default Rate from the date of such expenditure until paid.
Notwithstanding the foregoing, neither the Agent nor any Lender shall

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have any liability or responsibility whatsoever for the performance of any obligation of the
Borrower under this Agreement or any other Loan Document.

Section 10.7. Rights Cumulative.

     The rights and remedies of the Agent and the Lenders under this Agreement and each of the
other Loan Documents shall be cumulative and not exclusive of any rights or remedies which any of
them may otherwise have under Applicable Law. In exercising their respective rights and remedies
the Agent and the Lenders may be selective and no failure or delay by the Agent or any of the
Lenders in exercising any right shall operate as a waiver of it, nor shall any single or partial
exercise of any power or right preclude its other or further exercise or the exercise of any other
power or right.

Article XI. The Agent

Section 11.1. Authorization and Action.

     Each Lender hereby appoints and authorizes the Agent to take such action as contractual
representative on such Lender’s behalf and to exercise such powers under this Agreement and the
other Loan Documents as are specifically delegated to the Agent by the terms hereof and thereof,
together with such powers as are reasonably incidental thereto. Not in limitation of the
foregoing, each Lender authorizes and directs the Agent to enter into the Loan Documents for the
benefit of the Lenders. Each Lender hereby agrees that, except as otherwise set forth herein, any
action taken by the Requisite Lenders in accordance with the provisions of this Agreement or the
Loan Documents, and the exercise by the Requisite Lenders of the powers set forth herein or
therein, together with such other powers as are reasonably incidental thereto, shall be authorized
and binding upon all of the Lenders. Nothing herein shall be construed to deem the Agent a trustee
or fiduciary for any Lender nor to impose on the Agent duties or obligations other than those
expressly provided for herein. At the request of a Lender, the Agent will forward to such Lender
copies or, where appropriate, originals of the documents delivered to the Agent pursuant to this
Agreement or the other Loan Documents. The Agent will also furnish to any Lender, upon the request
of such Lender, a copy of any certificate or notice furnished to the Agent by the Borrower, any
Loan Party or any other Affiliate of the Borrower, pursuant to this Agreement or any other Loan
Document not already delivered to such Lender pursuant to the terms of this Agreement or any such
other Loan Document. As to any matters not expressly provided for by the Loan Documents
(including, without limitation, enforcement or collection of any of the Obligations), the Agent
shall not be required to exercise any discretion or take any action, but shall be required to act
or to refrain from acting (and shall be fully protected in so acting or refraining from acting)
upon the instructions of the Requisite Lenders (or all of the Lenders if explicitly required under
any other provision of this Agreement), and such instructions shall be binding upon all Lenders and
all holders of any of the Obligations; provided, however, that, notwithstanding anything in this
Agreement to the contrary, the Agent shall not be required to take any action which exposes the
Agent to personal liability or which is contrary to this Agreement or any other Loan Document or
Applicable Law. Not in limitation of the foregoing, the Agent shall not exercise any right or
remedy it or the Lenders may have under any Loan Document upon the occurrence of a Default or an
Event of Default unless the Requisite Lenders

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have so directed the Agent to exercise such right or remedy. Any Lender then acting as Agent shall
hold a Commitment in an amount not less than $20,000,000 unless a Default or Event of Default shall
have occurred.

Section 11.2. Agent’s Reliance, Etc.

     Notwithstanding any other provisions of this Agreement or any other Loan Documents, neither
the Agent nor any of its directors, officers, agents, employees or counsel shall be liable for any
action taken or omitted to be taken by it or them under or in connection with this Agreement or any
other Loan Document, except for its or their own gross negligence or willful misconduct as
determined by a court of competent jurisdiction in a final, non-appealable judgment. Without
limiting the generality of the foregoing, the Agent: (a) may treat the payee of any Note as the
holder thereof until the Agent receives written notice of the assignment or transfer thereof signed
by such payee and in form satisfactory to the Agent; (b) may consult with legal counsel (including
its own counsel or counsel for the Borrower or any other Loan Party), independent public
accountants and other experts selected by it and shall not be liable for any action taken or
omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants
or experts; (c) makes no warranty or representation to any Lender or any other Person and shall not
be responsible to any Lender or any other Person for any statements, warranties or representations
made by any Person in or in connection with this Agreement or any other Loan Document; (d) shall
not have any duty to ascertain or to inquire as to the performance or observance of any of the
terms, covenants or conditions of any of this Agreement or any other Loan Document or the
satisfaction of any conditions precedent under this Agreement or any Loan Document on the part of
the Borrower or other Persons or inspect the property, books or records of the Borrower or any
other Person; (e) shall not be responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document, any
other instrument or document furnished pursuant thereto or any collateral covered thereby or the
perfection or priority of any Lien in favor of the Agent on behalf of the Lenders in any such
collateral; and (f) shall incur no liability under or in respect of this Agreement or any other
Loan Document by acting upon any notice, consent, certificate or other instrument or writing (which
may be by telephone or telecopy) believed by it to be genuine and signed, sent or given by the
proper party or parties.

Section 11.3. Notice of Defaults.

     The Agent shall not be deemed to have knowledge or notice of the occurrence of a Default or
Event of Default unless the Agent has received notice from a Lender or the Borrower referring to
this Agreement, describing with reasonable specificity such Default or Event of Default and stating
that such notice is a “notice of default.” If any Lender (excluding the Lender which is also
serving as the Agent) becomes aware of any Default or Event of Default, it shall promptly send to
the Agent such a “notice of default.” Further, if the Agent receives such a “notice of default”,
the Agent shall give prompt notice thereof to the Lenders.

Section 11.4. Wachovia as Lender.

     Wachovia, as a Lender, shall have the same rights and powers under this Agreement and any
other Loan Document as any other Lender and may exercise the same as though it were not

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the Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include
Wachovia in each case in its individual capacity. Wachovia and its affiliates may each accept
deposits from, maintain deposits or credit balances for, invest in, lend money to, act as trustee
under indentures of, serve as financial advisor to, and generally engage in any kind of business
with, the Borrower, any other Loan Party or any other affiliate thereof as if it were any other
bank and without any duty to account therefor to the other Lenders. Further, the Agent and any
affiliate may accept fees and other consideration from the Borrower for services in connection with
this Agreement and otherwise without having to account for the same to the other Lenders. The
Lenders acknowledge that, pursuant to such activities, Wachovia or its affiliates may receive
information regarding the Borrower, other Loan Parties, other Subsidiaries and other Affiliates
(including information that may be subject to confidentiality obligations in favor of such Person)
and acknowledge that the Agent shall be under no obligation to provide such information to them.

Section 11.5. Approvals of Lenders.

     All communications from the Agent to any Lender requesting such Lender’s determination,
consent, approval or disapproval (a) shall be given in the form of a written notice to such Lender,
(b) shall be accompanied by a description of the matter or issue as to which such determination,
approval, consent or disapproval is requested, or shall advise such Lender where information, if
any, regarding such matter or issue may be inspected, or shall otherwise describe the matter or
issue to be resolved, (c) shall include, if reasonably requested by such Lender and to the extent
not previously provided to such Lender, written materials and a summary of all oral information
provided to the Agent by the Borrower in respect of the matter or issue to be resolved, and (d)
shall include the Agent’s recommended course of action or determination in respect thereof. Each
Lender shall reply promptly, but in any event within 10 Business Days (or such lesser or greater
period as may be specifically required under the Loan Documents) after receipt of such
communication. Except as otherwise provided in this Agreement and except with respect to items
requiring the unanimous consent or approval of the Lenders under Section 12.6., unless a Lender
shall give written notice to the Agent that it specifically objects to the recommendation or
determination of the Agent (together with a written explanation of the reasons behind such
objection) within the applicable time period for reply, such Lender shall be deemed to have
conclusively approved of or consented to such recommendation or determination.

Section 11.6. Lender Credit Decision, Etc.

     Each Lender expressly acknowledges and agrees that neither the Agent, nor either Arranger, nor
any of their respective officers, directors, employees, agents, counsel, attorneys-in-fact or other
affiliates has made any representations or warranties as to the financial condition, operations,
creditworthiness, solvency or other information concerning the business or affairs of the Borrower,
any other Loan Party, any Subsidiary or any other Person to such Lender and that no act by the
Agent or either Arranger hereafter taken, including any review of the affairs of the Borrower, any
other Loan Party or any other Subsidiary, shall be deemed to constitute any such representation or
warranty by the Agent or such Arranger to any Lender. Each Lender acknowledges that it has made
its own credit and legal analysis and decision to enter into this Agreement and the transactions
contemplated hereby, independently and without

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reliance upon the Agent, either Arranger, any other Lender or counsel to the Agent or either
Arranger, or any of their respective officers, directors, employees and agents, and based on the
financial statements of the Borrower, the Subsidiaries or any other Affiliate thereof, and
inquiries of such Persons, its independent due diligence of the business and affairs of the
Borrower, the Loan Parties, the Subsidiaries and other Persons, its review of the Loan Documents,
the legal opinions required to be delivered to it hereunder, the advice of its own counsel and such
other documents and information as it has deemed appropriate. Each Lender also acknowledges that
it will, independently and without reliance upon the Agent, either Arranger, any other Lender or
counsel to the Agent or either Arranger or any of their respective officers, directors, employees
and agents, and based on such review, advice, documents and information as it shall deem
appropriate at the time, continue to make its own decisions in taking or not taking action under
the Loan Documents. Except for notices, reports and other documents and information expressly
required to be furnished to the Lenders by the Agent or either Arranger under this Agreement or any
of the other Loan Documents, neither the Agent nor either Arranger shall have any duty or
responsibility to provide any Lender with any credit or other information concerning the business,
operations, property, financial and other condition or creditworthiness of the Borrower, any other
Loan Party or any other Affiliate thereof which may come into possession of the Agent, either
Arranger or any of their respective officers, directors, employees, agents, attorneys-in-fact or
other affiliates. Each Lender acknowledges that the Agent’s and each Arranger’s legal counsel in
connection with the transactions contemplated by this Agreement is only acting as counsel to the
Agent or such Arranger, respectively, and is not acting as counsel to such Lender.

Section 11.7. Indemnification of Agent and Arrangers.

     Each Lender agrees to indemnify the Agent and each Arranger (to the extent not reimbursed by
the Borrower and without limiting the obligation of the Borrower to do so) pro rata in accordance
with such Lender’s respective Commitment Percentage, from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, reasonable out-of-pocket costs
and expenses, and disbursements of any kind or nature whatsoever which may at any time be imposed
on, incurred by, or asserted against the Agent (in its capacity as Agent but not as a Lender) or
either Arranger (in their capacity as Arranger but not as a Lender) in any way relating to or
arising out of the Loan Documents, any transaction contemplated hereby or thereby or any action
taken or omitted by the Agent or either Arranger under the Loan Documents (collectively,
“Indemnifiable Amounts”); provided, however, that no Lender shall be liable for any portion of such
Indemnifiable Amounts to the extent resulting from the Agent’s or such Arranger’s gross negligence
or willful misconduct as determined by a court of competent jurisdiction in a final, non-appealable
judgment or if the Agent or such Arranger fails to follow the written direction of the Requisite
Lenders (or all of the Lenders if expressly required hereunder) unless such failure results from
the Agent reasonably following the advice of counsel to the Agent of which advice the Lenders have
received notice. Without limiting the generality of the foregoing but subject to the preceding
proviso, each Lender agrees to reimburse the Agent or such Arranger, as the case may be (to the
extent not reimbursed by the Borrower and without limiting the obligation of the Borrower to do
so), promptly upon demand for its ratable share of any reasonable out-of-pocket expenses (including
counsel fees of the counsel(s) of the Agent’s or such Arranger’s own choosing) incurred by the
Agent or such Arranger in connection with the preparation, negotiation, execution, or enforcement
of, or legal advice with respect to the rights

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or responsibilities of the parties under, the Loan Documents, any suit or action brought by the
Agent or such Arranger to enforce the terms of the Loan Documents and/or collect any Obligations,
any “lender liability” suit or claim brought against the Agent, the Arrangers and/or the Lenders,
and any claim or suit brought against the Agent, the Arrangers and/or the Lenders arising under any
Environmental Laws. Such reasonable out-of-pocket expenses (including counsel fees) shall be
advanced by the Lenders on the request of the Agent or such Arranger notwithstanding any claim or
assertion that the Agent or such Arranger is not entitled to indemnification hereunder upon receipt
of an undertaking by the Agent or such Arranger that the Agent or such Arranger will reimburse the
Lenders if it is actually and finally determined by a court of competent jurisdiction that the
Agent or such Arranger is not so entitled to indemnification. The agreements in this Section shall
survive the payment of the Loans and all other amounts payable hereunder or under the other Loan
Documents and the termination of this Agreement. If the Borrower shall reimburse the Agent or such
Arranger for any Indemnifiable Amount following payment by any Lender to the Agent or such Arranger
in respect of such Indemnifiable Amount pursuant to this Section, the Agent or such Arranger shall
share such reimbursement on a ratable basis with each Lender making any such payment.

Section 11.8. Successor Agent.

     The Agent may resign at any time as Agent under the Loan Documents by giving written notice
thereof to the Lenders and the Borrower. The Agent may be removed as Agent under the Loan
Documents for good cause by the Requisite Lenders upon 30 days’ prior notice. Upon any such
resignation or removal, the Requisite Lenders (other than the Lender then acting as Agent, in the
case of the removal of the Agent under the immediately preceding sentence) shall have the right to
appoint a successor Agent which appointment shall, provided no Default or Event of Default shall
have occurred and be continuing, be subject to the Borrower’s approval, which approval shall not be
unreasonably withheld or delayed (except that the Borrower shall, in all events, be deemed to have
approved each Lender and its affiliates as a successor Agent). If no successor Agent shall have
been so appointed in accordance with the immediately preceding sentence, and shall have accepted
such appointment, within 30 days after the resigning Agent’s giving of notice of resignation or the
Lenders’ removal of the resigning Agent, then the resigning or removed Agent may, on behalf of the
Lenders, appoint a successor Agent, which shall be a Lender, if any Lender shall be willing to
serve, and otherwise shall be a commercial bank having total combined assets of at least
$50,000,000,000. Any successor Agent hereunder shall hold a Commitment in an amount not less than
$20,000,000. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations under the Loan Documents. Such successor Agent shall issue letters of
credit in substitution for the Letters of Credit, if any, outstanding at the time of such
succession or shall make other arrangements satisfactory to the current Agent, in either case, to
assume effectively the obligations of the current Agent with respect to such Letters of Credit.
After any Agent’s resignation or removal hereunder as Agent, the provisions of this Article XI.
shall continue to inure to its benefit as to any actions taken or omitted to be taken by it while
it was Agent under the Loan Documents.

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Section 11.9. Titled Agents.

     Each of the Titled Agents in each such respective capacity, assumes no responsibility or
obligation hereunder, including, without limitation, for servicing, enforcement or collection of
any of the Loans, nor any duties as an agent hereunder for the Lenders. The titles of “Joint Lead
Arranger”, “Joint Bookrunner”, “Syndication Agent”, “Documentation Agent, “Managing Agent” and
“Co-Agent” are solely honorific and imply no fiduciary responsibility on the part of the Titled
Agents to the Agent, the Borrower or any Lender and the use of such titles does not impose on the
Titled Agents any duties or obligations greater than those of any other Lender or entitle the
Titled Agents to any rights other than those to which any other Lender is entitled.

Article XII. Miscellaneous

Section 12.1. Notices.

     Unless otherwise provided herein, communications provided for hereunder shall be in writing
and shall be mailed, telecopied or delivered as follows:

     If to the Borrower:

United Dominion Realty Trust, Inc.

1745 Shea Center Drive, Suite 200

Highlands Ranch, Colorado 80129

Attn: Treasurer

Telephone: (720) 283-6142

Telecopy: (720) 283-2453

     with a copy to:

Morrison & Foerster LLP

5200 Republic Plaza

370 Seventeenth Street

Denver, Colorado 80202

Attn: Warren L. Troupe, Esq.

David G. Thatcher, Esq.

Telephone: (303) 592-1500

Telecopy: (303) 592-1510

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     If to the Agent:

Wachovia Bank, National Association

Wachovia Capital Markets, LLC

301 South College Street

16th Floor

Charlotte, NC 28288-0172

Attention: David Hoagland

Telecopy Number: (704) 383-6205

Telephone Number: (704) 383-4809

     If to a Lender:

To such Lender’s address or telecopy number, as applicable, set forth on its
signature page hereto or in the applicable Assignment and Acceptance Agreement;

or, as to each party at such other address as shall be designated by such party in a written notice
to the other parties delivered in compliance with this Section. All such notices and other
communications shall be effective (i) if mailed, when received; (ii) if telecopied, when
transmitted; or (iii) if hand delivered, when delivered. Notwithstanding the immediately preceding
sentence, all notices or communications to the Agent or any Lender under Article II. shall be
effective only when actually received. Neither the Agent nor any Lender shall incur any liability
to the Borrower (nor shall the Agent incur any liability to the Lenders) for acting upon any
telephonic notice referred to in this Agreement which the Agent or such Lender, as the case may be,
believes in good faith to have been given by a Person authorized to deliver such notice or for
otherwise acting in good faith hereunder. Failure of a Person designated to get a copy of a notice
to receive such copy shall not affect the validity of notice properly given to any other Person.

Section 12.2. Expenses.

     The Borrower agrees (a) to pay or reimburse the Agent and the Arrangers for all of their
respective reasonable out-of-pocket costs and expenses incurred in connection with the preparation,
negotiation and execution of, and any amendment, supplement or modification to, any of the Loan
Documents (including due diligence expenses and travel expenses relating to closing), and the
consummation of the transactions contemplated thereby, including the reasonable fees and
disbursements of counsel to the Agent and the Arrangers and costs and expenses in connection with
the use of IntraLinks, Inc. or other similar information transmission systems in connection with
the Loan Documents, (b) to pay or reimburse the Agent, the Arrangers and the Lenders for all their
costs and expenses incurred in connection with the enforcement or preservation of any rights under
the Loan Documents, including the reasonable fees and disbursements of their respective counsel
(including the allocated fees and expenses of in-house counsel) and any payments in indemnification
or otherwise payable by the Lenders to the Agent or the Arrangers pursuant to the Loan Documents,
(c) to pay, and indemnify and hold harmless the Agent, the Arrangers and the Lenders from, any and
all recording and filing fees and any and all liabilities with respect to, or resulting from any
failure to pay or delay in paying,

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documentary, stamp, excise and other similar taxes, if any, which may be payable or determined to
be payable in connection with the execution and delivery of any of the Loan Documents, or
consummation of any amendment, supplement or modification of, or any waiver or consent under or in
respect of, any Loan Document and (d) to the extent not already covered by any of the preceding
subsections, to pay or reimburse the Agent, the Arrangers and the Lenders for all their costs and
expenses incurred in connection with any bankruptcy or other proceeding of the type described in
Sections 10.1.(f) or 10.1.(g), including the reasonable fees and disbursements of counsel to the
Agent, either Arranger and any Lender, whether such fees and expenses are incurred prior to, during
or after the commencement of such proceeding or the confirmation or conclusion of any such
proceeding. If the Borrower shall fail to pay any amounts required to be paid by it pursuant to
this Section, the Agent, the Arrangers and/or the Lenders may pay such amounts on behalf of the
Borrower and either deem the same to be Loans outstanding hereunder or otherwise Obligations owing
hereunder.

Section 12.3. Setoff.

     Subject to Section 3.3. and in addition to any rights now or hereafter granted under
Applicable Law and not by way of limitation of any such rights, the Agent, each Lender and each
Participant is hereby authorized by the Borrower, at any time or from time to time during the
continuance of an Event of Default, without prior notice to the Borrower or to any other Person,
any such notice being hereby expressly waived, but in the case of a Lender or participant subject
to receipt of the prior written consent of the Agent exercised in its sole discretion, to set off
and to appropriate and to apply any and all deposits (general or special, including, but not
limited to, indebtedness evidenced by certificates of deposit, whether matured or unmatured) and
any other indebtedness at any time held or owing by the Agent, such Lender or any affiliate of the
Agent or such Lender, to or for the credit or the account of the Borrower against and on account of
any of the Obligations, irrespective of whether or not any or all of the Loans and all other
Obligations have been declared to be, or have otherwise become, due and payable as permitted by
Section 10.2., and although such obligations shall be contingent or unmatured.

Section 12.4. Litigation; Jurisdiction; Other Matters; Waivers.

     (a) EACH PARTY HERETO ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG THE
BORROWER, THE AGENT OR ANY OF THE LENDERS WOULD BE BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND
FACT AND WOULD RESULT IN DELAY AND EXPENSE TO THE PARTIES. ACCORDINGLY, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, EACH OF THE LENDERS, THE AGENT AND THE BORROWER HEREBY WAIVES ITS RIGHT TO A TRIAL
BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL IN WHICH AN
ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF THIS AGREEMENT, THE NOTES, OR
ANY OTHER LOAN DOCUMENT OR BY REASON OF ANY OTHER SUIT, CAUSE OF ACTION OR DISPUTE WHATSOEVER
BETWEEN OR AMONG THE BORROWER, THE AGENT OR ANY OF THE LENDERS OF ANY KIND OR NATURE.

     (b) EACH OF THE BORROWER, THE AGENT AND EACH LENDER HEREBY AGREES THAT THE FEDERAL DISTRICT
COURT OF THE SOUTHERN DISTRICT OF

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NEW YORK AND ANY STATE COURT LOCATED IN NEW YORK, NEW YORK, SHALL HAVE JURISDICTION TO HEAR AND
DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG THE BORROWER, THE AGENT OR ANY OF THE LENDERS,
PERTAINING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT, THE LOANS AND LETTERS OF CREDIT, THE NOTES OR
ANY OTHER LOAN DOCUMENT OR TO ANY MATTER ARISING HEREFROM OR THEREFROM. THE BORROWER AND EACH OF
THE LENDERS EXPRESSLY SUBMIT AND CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR
PROCEEDING COMMENCED IN SUCH COURTS WITH RESPECT TO SUCH CLAIMS OR DISPUTES. EACH PARTY FURTHER
WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM
AND EACH AGREES NOT TO PLEAD OR CLAIM THE SAME. THE CHOICE OF FORUM SET FORTH IN THIS SECTION
SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY THE AGENT OR ANY LENDER OR THE
ENFORCEMENT BY THE AGENT OR ANY LENDER OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER
APPROPRIATE JURISDICTION.

     (c) THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF
COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE
PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN DOCUMENTS, THE
TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE TERMINATION OF THIS AGREEMENT.

Section 12.5. Successors and Assigns.

     (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns, except that the Borrower may
not assign or otherwise transfer any of its rights or obligations under this Agreement without the
prior written consent of all Lenders and any such assignment or other transfer to which all of the
Lenders have not so consented shall be null and void.

     (b) Any Lender may make, carry or transfer Loans at, to or for the account of any of its
branch offices or the office of an affiliate of such Lender except to the extent such transfer
would result in increased costs to the Borrower.

     (c) Any Lender may at any time grant to one or more banks or other financial institutions
(each a “Participant”) participating interests in its Commitment or the Obligations owing to such
Lender; provided, however, any such participating interest must be for a constant and not a varying
percentage interest. Except as otherwise provided in Section 12.3., no Participant shall have any
rights or benefits under this Agreement or any other Loan Document. A Participant shall not be
entitled to receive any greater payment under Section 3.12. than the applicable Lender would have
been entitled to receive with respect to the participation sold to such Participant, unless the
sale of the participation to such Participant is made with the Borrower’s prior written consent. A
Participant that is not organized under the laws of the

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United States of America, any state thereof or of the District of Columbia shall not be entitled to
the benefits of Section 3.12. unless the Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrower and the Agent, to comply
with Section 3.12. (c) as though it were a Lender. In the event of any such grant by a Lender of a
participating interest to a Participant, such Lender shall remain responsible for the performance
of its obligations hereunder, and the Borrower and the Agent shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and obligations under this
Agreement. Any agreement pursuant to which any Lender may grant such a participating interest
shall provide that such Lender shall retain the sole right and responsibility to enforce the
obligations of the Borrower hereunder including, without limitation, the right to approve any
amendment, modification or waiver of any provision of this Agreement; provided, however, such
Lender may agree with the Participant that it will not, without the consent of the Participant,
agree to (i) increase, or extend the term or extend the time or waive any requirement for the
reduction or termination of, such Lender’s Commitment, (ii) extend the date fixed for the payment
of principal of or interest on the Loans or portions thereof owing to such Lender, (iii) reduce the
amount of any such payment of principal, (iv) reduce the rate at which interest is payable thereon
or (v) release any Guarantor (except as otherwise permitted under Section 7.12.(c)). An assignment
or other transfer which is not permitted by subsection (d) or (e) below shall be given effect for
purposes of this Agreement only to the extent of a participating interest granted in accordance
with this subsection (c). Upon request from the Agent, the selling Lender shall notify the Agent
of the sale of any participation hereunder and, if requested by the Agent, certify to the Agent
that such participation is permitted hereunder and that the requirements of Section 3.12.(c) have
been satisfied.

     (d) Any Lender may with the prior written consent of the Agent and, so long as no Default or
Event of Default shall exist, the Borrower (which consent, in each case, shall not be unreasonably
withheld), assign to one or more Eligible Assignees (each an “Assignee”) all or a portion of its
Commitment and its other rights and obligations under this Agreement and the Notes; provided,
however, (i) no such consent by the Borrower shall be required in the case of any assignment to
another Lender or any affiliate of such Lender or another Lender and no such consent by the Agent
shall be required in the case of any assignment by a Lender to any affiliate of such Lender; (ii)
unless the Borrower and the Agent otherwise agree any partial assignment shall be in an amount at
least equal to $5,000,000 and integral multiples of $1,000,000 in excess thereof and after giving
effect to such assignment the assigning Lender retains a Commitment, or if the Commitments have
been terminated, holds Notes having an aggregate outstanding principal balance, of at least
$5,000,000 and integral multiples of $1,000,000 in excess thereof; provided, however, that the
limitations set forth in this clause (ii) shall not be applicable to any assignments in whole; and
(iii) each such assignment shall be effected by means of an Assignment and Acceptance Agreement.
Upon execution and delivery of such instrument and payment by such Assignee to such transferor
Lender of an amount equal to the purchase price agreed between such transferor Lender and such
Assignee, such Assignee shall be deemed to be a Lender party to this Agreement as of the effective
date of the Assignment and Acceptance Agreement and shall have all the rights and obligations of a
Lender with a Commitment as set forth in such Assignment and Acceptance Agreement, and the
transferor Lender shall be released from its obligations hereunder to a corresponding extent, and
no further consent or action by any party shall be required. Upon the consummation of any
assignment pursuant to this

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subsection (d), the transferor Lender, the Agent and the Borrower shall make appropriate
arrangements so that new Notes are issued to the Assignee and such transferor Lender, as
appropriate. In connection with any such assignment, the transferor Lender shall pay to the Agent
an administrative fee for processing such assignment in the amount of $5,000.

     (e) Any Lender (each, a “Designating Lender”) may at any time while the Borrower has been
assigned an Investment Grade Rating from either S&P or Moody’s designate one Designated Lender to
fund Bid Rate Loans on behalf of such Designating Lender subject to the terms of this subsection
(e) and the provisions in the immediately preceding subsections (c) and (d) shall not apply to such
designation. No Lender may designate more than one Designated Lender. The parties to each such
designation shall execute and deliver to the Agent for its acceptance a Designation Agreement.
Upon such receipt of an appropriately completed Designation Agreement executed by a Designating
Lender and a designee representing that it is a Designated Lender, the Agent will accept such
Designation Agreement and give prompt notice thereof to the Borrower, whereupon (i) the Borrower
shall execute and deliver to the Designating Lender a Designated Lender Note payable to the order
of the Designated Lender, (ii) from and after the effective date specified in the Designation
Agreement, the Designated Lender shall become a party to this Agreement with a right to make Bid
Rate Loans on behalf of its Designating Lender pursuant to Section 2.2. after the Borrower has
accepted a Bid Rate Loan (or portion thereof) of the Designating Lender, and (iii) the Designated
Lender shall not be required to make payments with respect to any obligations in this Agreement
except to the extent of excess cash flow of such Designated Lender which is not otherwise required
to repay obligations of such Designated Lender which are then due and payable; provided, however,
that regardless of such designation and assumption by the Designated Lender, the Designating Lender
shall be and remain obligated to the Borrower, the Agent and the Lenders for each and every of the
obligations of the Designating Lender and its related Designated Lender with respect to this
Agreement, including, without limitation, any indemnification obligations under Section 11.7. and
any sums otherwise payable to the Borrower by the Designated Lender. Each Designating Lender shall
serve as the administrative agent of the Designated Lender and shall on behalf of, and to the
exclusion of, the Designated Lender: (i) receive any and all payments made for the benefit of the
Designated Lender and (ii) give and receive all communications and notices and take all actions
hereunder, including, without limitation, votes, approvals, waivers, consents and amendments under
or relating to this Agreement and the other Loan Documents. Any such notice, communication, vote,
approval, waiver, consent or amendment shall be signed by the Designating Lender as administrative
agent for the Designated Lender and shall not be signed by the Designated Lender on its own behalf
and shall be binding on the Designated Lender to the same extent as if signed by the Designated
Lender on its own behalf. The Borrower, the Agent and the Lenders may rely thereon without any
requirement that the Designated Lender sign or acknowledge the same. No Designated Lender may
assign or transfer all or any portion of its interest hereunder or under any other Loan Document,
other than assignments to the Designating Lender which originally designated such Designated
Lender. The Borrower, the Lenders and the Agent each hereby agrees that it will not institute
against any Designated Lender or join any other Person in instituting against any Designated Lender
any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding under any federal
or state bankruptcy or similar law, until the later to occur of (x) one year and one day after the
payment in full of the

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latest maturing commercial paper note issued by such Designated Lender and (y) the Termination

Date.

     (f) The Agent shall maintain at the Principal Office a copy of each Assignment and Acceptance
Agreement delivered to and accepted by it and a register for the recordation of the names and
addresses of the Lenders and the Commitment of each Lender from time to time (the “Register”). The
Agent shall give each Lender and the Borrower notice of the assignment by any Lender of its rights
as contemplated by this Section. The Borrower, the Agent and the Lenders may treat each Person
whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement.
The Register and copies of each Assignment and Acceptance Agreement shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice to the Agent. Upon its receipt of an Assignment and Acceptance Agreement
executed by an assigning Lender, together with each Note subject to such assignment, the Agent
shall, if such Assignment and Acceptance Agreement has been completed and if the Agent receives the
processing and recording fee described in subsection (d) above, (i) accept such Assignment and
Acceptance Agreement, (ii) record the information contained therein in the Register and (iii) give
prompt notice thereof to the Borrower.

     (g) In addition to the assignments and participations permitted under the foregoing provisions
of this Section, any Lender may assign and pledge all or any portion of its Loans and its Notes to
any Federal Reserve Bank as collateral security pursuant to Regulation A and any Operating Circular
issued by such Federal Reserve Bank, and such Loans and Notes shall be fully transferable as
provided therein. No such assignment shall release the assigning Lender from its obligations
hereunder.

     (h) A Lender may furnish any information concerning the Borrower, any other Loan Party or any
of their respective Subsidiaries in the possession of such Lender from time to time to Assignees
and Participants (including prospective Assignees and Participants) subject to compliance with
Section 12.8.

     (i) Anything in this Section to the contrary notwithstanding, no Lender may assign or
participate any interest in any Loan held by it hereunder to the Borrower, any other Loan Party or
any of their respective Affiliates or Subsidiaries.

     (j) Each Lender agrees that, without the prior written consent of the Borrower and the Agent,
it will not make any assignment hereunder in any manner or under any circumstances that would
require registration or qualification of, or filings in respect of, any Loan or Note under the
Securities Act or any other securities laws of the United States of America or of any other
jurisdiction.

Section 12.6. Amendments.

     Except as otherwise expressly provided in this Agreement, any consent or approval required or
permitted by this Agreement or any other Loan Document to be given by the Lenders may be given, and
any term of this Agreement or of any other Loan Document may be amended, and the performance or
observance by the Borrower or any other Loan Party or any Subsidiary of

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any terms of this Agreement or such other Loan Document or the continuance of any Default or Event
of Default may be waived (either generally or in a particular instance and either retroactively or
prospectively) with, but only with, the written consent of the Requisite Lenders (and, in the case
of an amendment to any Loan Document, the written consent of each Loan Party a party thereto).
Notwithstanding the foregoing, without the prior written consent of each Lender adversely affected
thereby, no amendment, waiver or consent shall, unless in writing, do any of the following: (i)
reduce the principal of, or interest rates that have accrued or that will be charged on the
outstanding principal amount of, any Loans or Fees or other Obligations; (ii) reduce the amount of
any Fees payable hereunder or postpone any date fixed for the payment thereof; (iii) modify the
definition of the term “Termination Date” (except as contemplated under Section 2.13.) or otherwise
postpone any date fixed for any payment of any principal of, or interest on, any Loans or any other
Obligations (including the waiver of any Default or Event of Default as a result of the nonpayment
of any such Obligations as and when due), or extend the expiration date of any Letter of Credit
beyond the Termination Date; (iv) amend or otherwise modify the provisions of Section 3.2.; (v)
modify the definition of the term “Requisite Lenders”, or modify in any other manner the number or
percentage of the Lenders required to make any determinations or waive any rights hereunder or to
modify any provision hereof, including without limitation, any modification of this Section 12.6.
if such modification would have such effect; (vi) release any Guarantor from its obligations under
the Guaranty (except as otherwise permitted under Section 7.12.(c)); (vii) increase the Commitments
of the Lenders (except for any increase in the Commitments effectuated pursuant to Section 2.16.)
or subject the Lenders to any additional obligations; or (viii) amend or otherwise modify the
provisions of Section 2.15.(a). Further, no amendment, waiver or consent unless in writing and
signed by the Agent, in addition to the Lenders required hereinabove to take such action, shall
affect the rights or duties of the Agent under this Agreement or any of the other Loan Documents.
Any amendment, waiver or consent relating to Section 2.3. or the obligations of the Swingline
Lender under this Agreement or any other Loan Document shall, in addition to the Lenders required
hereinabove to take such action, require the written consent of the Swingline Lender. No waiver
shall extend to or affect any obligation not expressly waived or impair any right consequent
thereon and any amendment, waiver or consent shall be effective only in the specific instance and
for the specific purpose set forth therein. No course of dealing or delay or omission on the part
of the Agent or any Lender in exercising any right shall operate as a waiver thereof or otherwise
be prejudicial thereto. Any Event of Default occurring hereunder shall continue to exist until
such time as such Event of Default is waived in writing in accordance with the terms of this
Section, notwithstanding any attempted cure or other action by the Borrower, any other Loan Party
or any other Person subsequent to the occurrence of such Event of Default. Except as otherwise
explicitly provided for herein or in any other Loan Document, no notice to or demand upon the
Borrower shall entitle the Borrower to any other or further notice or demand in similar or other
circumstances.

Section 12.7. Nonliability of Agent and Lenders.

     The relationship between the Borrower and the Lenders and the Agent shall be solely that of
borrower and lender. Neither the Agent nor any Lender shall have any fiduciary responsibilities to
the Borrower and no provision in this Agreement or in any of the other Loan Documents, and no
course of dealing between or among any of the parties hereto, shall be deemed to create any
fiduciary duty owing by the Agent or any Lender to any Lender, the Borrower, any Subsidiary or any
other Loan Party. Neither the Agent nor any Lender undertakes

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any responsibility to the Borrower to review or inform the Borrower of any matter in connection
with any phase of the Borrower’s business or operations.

Section 12.8. Confidentiality.

     Except as otherwise provided by Applicable Law, the Agent and each Lender shall utilize all
non-public information obtained pursuant to the requirements of this Agreement which has been
identified as confidential or proprietary by the Borrower in accordance with its customary
procedure for handling confidential information of this nature and in accordance with safe and
sound banking practices but in any event may make disclosure: (a) to any of their respective
affiliates (provided they shall agree to keep such information confidential in accordance with the
terms of this Section 12.8.); (b) as reasonably requested by any bona fide Assignee, Participant or
other transferee in connection with the contemplated transfer of any Commitment or participations
therein as permitted hereunder (provided they shall agree to keep such information confidential in
accordance with the terms of this Section); (c) as required or requested by any Governmental
Authority or representative thereof or pursuant to legal process or in connection with any legal
proceedings; provided, that the Agent and each Lender shall notify the Borrower of such requirement
to the extent practicable and permitted; provided, further, that the Agent and the Lenders shall
have no liability for the failure to provide such notice; (d) to the Agent’s or such Lender’s
independent auditors and other professional advisors (provided they shall be notified of the
confidential nature of the information); (e) after the happening and during the continuance of an
Event of Default, to any other Person, in connection with the exercise by the Agent or the Lenders
of rights hereunder or under any of the other Loan Documents; (f) upon Borrower’s prior consent
(which consent shall not be unreasonably withheld), to any contractual counter-parties to any swap
or similar hedging agreement or to any rating agency; provided, that such Person is notified by the
Agent or such Lender of the confidential nature of the information; and (g) to the extent such
information (x) becomes publicly available other than as a result of a breach of this Section
actually known to such Lender to be such a breach or (y) becomes available to the Agent or any
Lender on a nonconfidential basis from a source other than the Borrower or any Affiliate.
Notwithstanding the foregoing, the Agent and each Lender may disclose any such confidential
information, without notice to the Borrower or any other Loan Party, to Governmental Authorities to
the extent required in connection with any regulatory examination of the Agent or such Lender or in
accordance with the regulatory compliance policy of the Agent or such Lender.

Section 12.9. Indemnification.

     (a) The Borrower shall and hereby agrees to indemnify, defend and hold harmless the Agent,
each of the Lenders, any affiliate of the Agent or any Lender, and their respective directors,
officers, shareholders, agents, employees and counsel (each referred to herein as an “Indemnified
Party”) from and against any and all of the following (collectively, the “Indemnified Costs”):
losses, costs, claims, damages, liabilities, deficiencies, judgments or expenses of every kind and
nature (including, without limitation, amounts paid in settlement, court costs and the reasonable
fees and disbursements of counsel incurred in connection with any litigation, investigation, claim
or proceeding or any advice rendered in connection therewith, but excluding losses, costs, claims,
damages, liabilities, deficiencies, judgments or expenses indemnification in respect of which is
specifically covered by Section 3.12. or 4.1. or expressly

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excluded from the coverage of such Sections 3.12. or 4.1.) incurred by an Indemnified Party in
connection with, arising out of, or by reason of, any suit, cause of action, claim, arbitration,
investigation or settlement, consent decree or other proceeding (the foregoing referred to herein
as an “Indemnity Proceeding”) which is in any way related directly or indirectly to: (i) this
Agreement or any other Loan Document or the transactions contemplated thereby; (ii) the making of
any Loans or issuance of Letters of Credit hereunder; (iii) any actual or proposed use by the
Borrower of the proceeds of the Loans or Letters of Credit; (iv) the Agent’s or any Lender’s
entering into this Agreement; (v) the fact that the Agent and the Lenders have established the
credit facility evidenced hereby in favor of the Borrower; (vi) the fact that the Agent and the
Lenders are creditors of the Borrower and have or are alleged to have information regarding the
financial condition, strategic plans or business operations of the Borrower and the Subsidiaries;
(vii) the fact that the Agent and the Lenders are material creditors of the Borrower and are
alleged to influence directly or indirectly the business decisions or affairs of the Borrower and
the Subsidiaries or their financial condition; (viii) the exercise of any right or remedy the Agent
or the Lenders may have under this Agreement or the other Loan Documents; provided, however, that
the Borrower shall not be obligated to indemnify any Indemnified Party for any acts or omissions of
such Indemnified Party in connection with matters described in this clause (viii) that constitute
gross negligence or willful misconduct; (ix) any civil penalty or fine assessed by the OFAC
against, and all reasonable costs and expenses (including counsel fees and disbursements) incurred
in connection with defense thereof by, the Agent or any Lender as a result of conduct of the
Borrower, any other Loan Party or any Subsidiary that violates a sanction enforced by the OFAC; or
(x) any violation or non-compliance by the Borrower or any Subsidiary of any Applicable Law
(including any Environmental Law) including, but not limited to, any Indemnity Proceeding commenced
by (A) the Internal Revenue Service or state taxing authority or (B) any Governmental Authority or
other Person under any Environmental Law, including any Indemnity Proceeding commenced by a
Governmental Authority or other Person seeking remedial or other action to cause the Borrower or
its Subsidiaries (or its respective properties) (or the Agent and/or the Lenders as successors to
the Borrower) to be in compliance with such Environmental Laws.

     (b) The Borrower’s indemnification obligations under this Section 12.9. shall apply to all
Indemnity Proceedings arising out of, or related to, the foregoing whether or not an Indemnified
Party is a named party in such Indemnity Proceeding. In this connection, this indemnification
shall cover all Indemnified Costs of any Indemnified Party in connection with any deposition of any
Indemnified Party or compliance with any subpoena (including any subpoena requesting the production
of documents). This indemnification shall, among other things, apply to any Indemnity Proceeding
commenced by other creditors of the Borrower or any Subsidiary, any shareholder of the Borrower or
any Subsidiary (whether such shareholder(s) are prosecuting such Indemnity Proceeding in their
individual capacity or derivatively on behalf of the Borrower), any account debtor of the Borrower
or any Subsidiary or by any Governmental Authority. If indemnification is to be sought
hereunder by an Indemnified Party, then such Indemnified Party shall notify the Borrower of the
commencement of any Indemnity Proceeding; provided, however, that the failure to so notify the
Borrower shall not relieve the Borrower from any liability that it may have to such Indemnified
Party pursuant to this Section 12.9.

 - 93 -

 

     (c) This indemnification shall apply to any Indemnity Proceeding arising during the pendency
of any bankruptcy proceeding filed by or against the Borrower and/or any Subsidiary.

     (d) All out-of-pocket fees and expenses of, and all amounts paid to third-persons by, an
Indemnified Party shall be advanced by the Borrower at the request of such Indemnified Party
notwithstanding any claim or assertion by the Borrower that such Indemnified Party is not entitled
to indemnification hereunder upon receipt of an undertaking by such Indemnified Party that such
Indemnified Party will reimburse the Borrower if it is actually and finally determined by a court
of competent jurisdiction that such Indemnified Party is not so entitled to indemnification
hereunder.

     (e) Subject to Section 12.9.(f), an Indemnified Party may conduct its own investigation and
defense of, and may formulate its own strategy with respect to, any Indemnity Proceeding covered by
this Section 12.9. and, as provided above, all Indemnified Costs incurred by such Indemnified Party
shall be reimbursed by the Borrower. No action taken by legal counsel chosen by an Indemnified
Party in investigating or defending against any such Indemnity Proceeding shall vitiate or in any
way impair the obligations and duties of the Borrower hereunder to indemnify and hold harmless each
such Indemnified Party; provided, however, that (i) if the Borrower is required to indemnify an
Indemnified Party pursuant hereto and (ii) the Borrower has provided evidence reasonably
satisfactory to such Indemnified Party that the Borrower has the financial wherewithal to reimburse
such Indemnified Party for any amount paid by such Indemnified Party with respect to such Indemnity
Proceeding, such Indemnified Party shall not settle or compromise any such Indemnity Proceeding
without the prior written consent of the Borrower (which consent shall not be unreasonably withheld
or delayed). Notwithstanding the foregoing, an Indemnified Party may settle or compromise any such
Indemnity Proceeding without the prior written consent of the Borrower where there is an allegation
of a violation of law by such Indemnified Party.

     (f) Notwithstanding the above, following the notification contemplated by Section 12.9.(b),
the Borrower may elect in writing to assume the defense of such action or proceeding, and, upon
such election, it shall not be liable for any legal costs subsequently incurred by such Indemnified
Party (other than reasonable costs of investigation and providing evidence) in connection
therewith, unless (i) the Borrower and the Indemnified Party have failed to agree in writing to the
retention of such counsel, (ii) the named parties to any such Indemnity Proceeding (including any
impleaded parties) include the Borrower and such Indemnified Party and representation of both
parties by the same counsel would, in the opinion of counsel to such Indemnified Party, be
inappropriate due to actual or potential conflicts of interests between the Borrower and such
Indemnified Party or (iii) the Indemnified Party reasonably determines that there may be legal
defenses available to it which are different from or in addition to those available to the
Borrower. The Borrower shall not settle, compromise, consent to the entry of judgment or otherwise
seek to terminate such Indemnity Proceeding without the consent of the Indemnified Party, which
consent shall not be unreasonably withheld.

     (g) If and to the extent that the obligations of the Borrower under this Section 12.9. are
unenforceable for any reason, the Borrower hereby agrees to make the maximum

 - 94 -

 

contribution to the payment and satisfaction of such obligations which is permissible under
Applicable Law.

     (h) The Borrower’s obligations under this Section 12.9. shall survive any termination of this
Agreement and the other Loan Documents and the payment in full in cash of the Obligations, and are
in addition to, and not in substitution of, any other of their obligations set forth in this
Agreement or any other Loan Document to which it is a party.

Section 12.10. Termination; Survival.

     At such time as (a) all of the Commitments have been terminated, (b) all Letters of Credit
(other than Letters of Credit the expiration dates of which extend beyond the Termination Date as
permitted under Section 2.4.(b) and in respect of which the Borrower has satisfied the requirements
of such Section) have terminated, (c) none of the Lenders nor the Swingline Lender is obligated any
longer under this Agreement to make any Loans and (d) all Obligations (other than obligations which
survive as provided in the following sentence) have been paid and satisfied in full, this Agreement
shall terminate. The indemnities to which the Agent, the Lenders and the Swingline Lender are
entitled under the provisions of Sections 3.12., 4.1., 4.4., 11.7., 12.2. and 12.9. and any other
provision of this Agreement and the other Loan Documents, and the provisions of Section 12.4.,
shall continue in full force and effect and shall protect the Agent, the Lenders and the Swingline
Lender (i) notwithstanding any termination of this Agreement, or of the other Loan Documents,
against events arising after such termination as well as before and (ii) at all times after any
such party ceases to be a party to this Agreement with respect to all matters and events existing
on or prior to the date such party ceased to be a party to this Agreement.

Section 12.11. Severability of Provisions.

     Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or
unenforceability without invalidating the remainder of such provision or the remaining provisions
or affecting the validity or enforceability of such provision in any other jurisdiction.

Section 12.12. GOVERNING LAW.

     THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

Section 12.13. Counterparts.

     This Agreement and any amendments, waivers, consents or supplements may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which when
so executed and delivered shall be deemed an original, but all of which counterparts together shall
constitute but one and the same instrument.

 - 95 -

 

Section 12.14. Obligations with Respect to Loan Parties.

     The obligations of the Borrower to direct or prohibit the taking of certain actions by the
other Loan Parties as specified herein shall be absolute and not subject to any defense the
Borrower may have that the Borrower does not control such Loan Parties.

Section 12.15. Limitation of Liability.

     Neither the Agent nor any Lender, nor any affiliate, officer, director, employee, attorney, or
agent of the Agent or any Lender shall have any liability with respect to, and the Borrower hereby
waives, releases, and agrees not to sue any of them upon, any claim for any special, indirect,
incidental, or consequential damages suffered or incurred by the Borrower in connection with,
arising out of, or in any way related to, this Agreement or any of the other Loan Documents, or any
of the transactions contemplated by this Agreement or any of the other Loan Documents. The
Borrower hereby waives, releases, and agrees not to sue the Agent or any Lender or any of the
Agent’s or any Lender’s affiliates, officers, directors, employees, attorneys, or agents for
punitive damages in respect of any claim in connection with, arising out of, or in any way related
to, this Agreement or any of the other Loan Documents, or any of the transactions contemplated by
this Agreement or financed hereby.

Section 12.16. Entire Agreement.

     This Agreement, the Notes, and the other Loan Documents referred to herein embody the final,
entire agreement among the parties hereto and supersede any and all prior commitments, agreements,
representations, and understandings, whether written or oral, relating to the subject matter hereof
and thereof and may not be contradicted or varied by evidence of prior, contemporaneous, or
subsequent oral agreements or discussions of the parties hereto. There are no oral agreements
among the parties hereto.

Section 12.17. Construction.

     The Agent, the Borrower and each Lender acknowledge that each of them has had the benefit of
legal counsel of its own choice and has been afforded an opportunity to review this Agreement and
the other Loan Documents with its legal counsel and that this Agreement and the other Loan
Documents shall be construed as if jointly drafted by the Agent, the Borrower and each Lender.

Section 12.18. Patriot Act.

     The Lenders and the Agent each hereby notifies the Borrower that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), it is
required to obtain, verify and record information that identifies the Borrower, which information
includes the name and address of the Borrower and other information that will allow such Lender or
the Agent, as applicable, to identify the Borrower in accordance with such Act.

 - 96 -

 

Section 12.19. NO NOVATION.

     THE PARTIES HERETO HAVE ENTERED INTO THIS AGREEMENT SOLELY TO AMEND AND RESTATE THE TERMS OF
THE EXISTING CREDIT AGREEMENT. THE PARTIES DO NOT INTEND THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY TO BE, AND THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL NOT BE
CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY THE BORROWER UNDER OR IN CONNECTION
WITH THE EXISTING CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS (AS DEFINED IN THE EXISTING
CREDIT AGREEMENT).

[Signatures on Following Pages]

 - 97 -

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amended and Restated Credit
Agreement to be executed by their authorized officers all as of the day and year first above
written.

	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Rodney A. Neuheardt
	

	 	 	 	 
	

	 	 	 	Name: Rodney A. Neuheardt

Title: Senior Vice President—Finance & Treasurer

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL
	

	 	 	 	ASSOCIATION, as Agent, as a Lender and as
	

	 	 	 	Swingline Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ David Hoagland
	

	 	 	 	 
	

	 	 	 	Name: David Hoagland
	

	 	 	 	Title: Director
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$50,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	Wachovia Bank, National Association

Wachovia Capital Markets, LLC

301 South College Street

16th Floor

Charlotte, NC 28288-0172

Attention: David Hoagland

Telecopy Number:           (704) 383-6205

Telephone Number:         (704) 383-4809

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Marc E. Costantino
	

	 	 	 	 
	

	 	 	 	Name: Marc E. Costantino

Title: Vice President
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$50,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	JPMorgan Chase Bank

270 Park Avenue, 4th Floor

New York, NY 10017

Attn: Marc Costantino, Vice President

Telecopier:      (212) 270-0213

Telephone:       (212) 270-9554
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 	 	JPMorgan Chase Bank

270 Park Avenue, 4th Floor

New York, New York 10017

Attn: Elena Gillcrist, Associate

Telecopier:     (212) 270-3513

Telephone:     (212) 270-9555

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Martia Kontak
	

	 	 	 	 
	

	 	 	 	Name: Martia Kontak

Title: Vice President
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$50,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	Wells Fargo Bank, National Association

2120 E. Park Place

Suite 100

El Segundo, CA 90245

Attention: Kathryn Graham, Disbursement Operations Center

Telecopy Number:       (310) 335-9425

Telephone Number:     (310) 335-9495
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 	 	Wells Fargo Bank, National Association

4643 S. Ulster Street

Suite 1400

Denver, Colorado 80237

Attn: Martia Kontak, Vice President

Telecopier:     (303) 741-0867

Telephone:     (303) 741-0800 (x208)

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	SUNTRUST BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Gregory T. Horstman
	

	 	 	 	 
	

	 	 	 	Name: Gregory T. Horstman

Title: Senior Vice President
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$50,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	SunTrust Bank

8245 Boone Blvd.

Suite 820

Vienna, VA 22182

Attention: Connie Dores, Administrative Assistant

Telecopy Number:       (703) 902-9245

Telephone Number:     (703) 902-9166

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Scott Childs
	

	 	 	 	 
	

	 	 	 	Name: Scott Childs

Title: Vice President
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$35,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	KeyBank National Association

127 Public Square, 8th Floor

Cleveland, OH 44114

Attn: Diana D’Aquila, Client Services Associate

Telecopier:     (216) 689-3529

Telephone:     (216) 689-3566
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 	 	127 Public Square, 8th Floor

Cleveland, Ohio 44114

Attn: Scott Childs, Vice President

Telecopier:     (216) 689-5989

Telephone:     (216) 689-4997

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	CITICORP NORTH AMERICA, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Jeanne M. Craig
	

	 	 	 	 
	

	 	 	 	Name: Jeanne M. Craig

Title: Vice President
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$35,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	Citicorp North America, Inc.

390 Greenwich Street, 1st Floor

New York, NY 10013

Attention: Niraj Shah, Associate

Telecopy Number:       (212) 723-6951

Telephone Number:     (212) 291-1622
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 	 	Citicorp North America, Inc.

2 Penns Way, 1st Floor

New Castle, DE 19720

Attention: Dana Fuski-Dugan

Telecopy Number:       (212) 994-0849

Telephone Number:     (302) 894-5003

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Valerie P. Heller
	

	 	 	 	 
	

	 	 	 	Name: Valerie P. Heller

Title: Senior Vice President
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$35,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	U.S. Bank National Association

918 17th Street

5th Floor

Denver, CO 80202

Attention: Valerie P. Heller, Vice President

Telecopy Number:       (303) 585-4198

Telephone Number:     (303) 585-4619

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	LASALLE BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Robert E. Goeckel
	

	 	 	 	 
	

	 	 	 	Name: Robert E. Goeckel

Title: Vice President
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$30,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	LaSalle Bank National Association

135 S. LaSalle Street

Suite #1425

Chicago, IL 60603-3499

Attention: Debbie Larkner

Telecopy Number:       (312) 904-6373

Telephone Number:     (312) 904-2959
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 	 	LaSalle Bank National Association

135 S. LaSalle Street

Suite #1425

Chicago, IL 60603-3499

Attention: Klay Schmeisser, First Vice President

Telecopy Number:       (312) 904-6691

Telephone Number:     (312) 904-0647

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	MIZUHO CORPORATE BANK, LTD.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Noel P. Purcell
	

	 	 	 	 
	

	 	 	 	Name: Noel P. Purcell

Title: Senior Vice President
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$30,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	Mizuho Corporate Bank, Ltd.

1800 Plaza Ten

Jersey City, NJ 07311

Attention: Hemangini Divatio

Telecopy Number:       (201) 626-9941/9942

Telephone Number:     (201) 626-9142
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 	 	Mizuho Corporate Bank, Ltd.

1251 Avenue of the Americas

New York, NY 10020

Attention: John Davies

Telecopy Number:       (212) 282-4488

Telephone Number:     (212) 282-3327

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	UFJ BANK LIMITED
	 
	 	 	 	 
	

	 	By:
	 	/s/ Hideo Uenishi
	

	 	 	 	 
	

	 	 	 	Name: Hideo Uenishi
	

	 	 	 	Title: Deputy General Manager
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$30,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	UFJ Bank Limited

55 East 52nd Street

New York, NY 10055

Attention: Marlin Chin

Telecopy Number:       (212) 754-2368

Telephone Number:     (212) 339-6392
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 	 	UFJ Bank Limited

55 East 52nd Street

New York, NY 10055

Attention: Jesse McDonald

Telecopy Number:       (212) 754-1304

Telephone Number:     (212) 339-6210

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	AMSOUTH BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ Robert Blair
	

	 	 	 	 
	

	 	 	 	Name: Robert Blair

Title: Vice President
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$25,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	AmSouth Bank

1900 Fifth Avenue North

9th Floor

Birmingham, AL 35203

Attention: Crystal Cassels

Telecopy Number:       (205) 326-4075

Telephone Number:     (205) 326-7645
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 	 	AmSouth Bank

1900 Fifth Avenue North

9th Floor

Birmingham, AL 35203

Attention: Robert Blair, Vice President

Telecopy Number:       (205) 326-4075

Telephone Number:     (205) 326-4071

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	BANK OF CHINA, NEW YORK BRANCH
	 
	 	 	 	 
	

	 	By:
	 	/s/ William Smith
	

	 	 	 	 
	

	 	 	 	Name: William Smith
	

	 	 	 	Title: Chief Loan Officer
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$25,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	Bank of China, New York Branch

410 Madison Ave.

New York, NY 10017

Attention: Annie Yee, LAD / Elaine Ho, LAD

Telecopy Number:   (646) 840-1796

Telephone Number:   (212) 935-3101 x466/281
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 	 	Bank of China, New York Branch

410 Madison Ave.

New York, NY 10017

Attention: Joseph Zeng, CBD / David Hoang, CBD

Telecopy Number:    (212) 308-4993

Telephone Number:    (212) 935-3101 x408/229

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	COMERICA BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ James Graycheck
	

	 	 	 	 
	

	 	 	 	Name: James Graycheck

Title: Assistant Vice President
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$20,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	800 Woodward Avenue

MC3256

Detroit, MI 43220

Attention: Betsy Branson

Telecopy Number:    (313) 222-3697

Telephone Number:    (313) 222-5878
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 	 	Comerica Bank

800 Woodward Avenue

MC3256

Detroit, MI 43220

Attention: Leslie Vogel, Vice President

Telecopy Number:    (313) 222-9295

Telephone Number:    (313) 222-9290

[Signatures Continued on Next Page]

 

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND
	 
	 	 	 	 
	

	 	By:
	 	/s/ Frank Schmitt
	

	 	 	 	 
	

	 	 	 	Name: Frank Schmitt
	

	 	 	 	Title: Authorised Signatory
	 
	 	 	 	 
	

	 	By:
	 	/s/ Iain Donovan
	

	 	 	 	 
	

	 	 	 	Name: Iain Donovan
	

	 	 	 	Title: Authorised Signatory
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$20,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	The Governor and Company of the Bank of Ireland

Hume House

Ballsbridge

Dublin 4, Ireland

Attention: Olivia Carey

Telecopy Number:    +353 1-618-7489

Telephone Number:    +353 1-618-7470
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 	 	The Governor and Company of the Bank of Ireland

La Touche House

IFSC

Dublin 1, Ireland

Attention: Frank Schmitt

Telecopy Number:    +353 1-829-0129

Telephone Number:    +353 1-611-5428

 

 

[Signatures Continued on Next Page]

-113-

 

[Signature Page to Amended and Restated Credit Agreement dated as of

May 25, 2005 with United Dominion Realty Trust, Inc.]

	 	 	 	 	 
	 	 	CHEVY CHASE BANK, F.S.B.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Carlos L. Heard
	

	 	 	 	 
	

	 	 	 	Name: Carlos L. Heard

Title: Vice President
	 
	 	 	 	 
	 	 	Commitment Amount:
	 
	 	 	 	 
	 	 	$15,000,000
	 
	 	 	 	 
	 	 	Lending Office (all Types of Loans):
	 
	 	 	 	 
	 	 	Chevy Chase Bank, F.S.B.

14601 Switzer Lane

Laurel, MD 20707

Attention: Doris Lakkis, Vice President

Telecopy Number:    (301) 939-6959

Telephone Number:    (301) 939-6966
	 
	 	 	 	 
	 	 	with a copy to:
	 
	 	 	 	 
	 	 	Chevy Chase Bank, F.S.B.

7501 Wisconsin Avenue

12th Floor

Bethesda, MD 20184-6519

Attention: Frederick H. Denecke, President

Telecopy Number:    (240) 497-7714

Telephone Number:    (240) 497-7735

[Signatures End]

-114-

 

EXHIBIT A

FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

     THIS ASSIGNMENT AND ACCEPTANCE AGREEMENT dated as of                     , 200___(the “Agreement”) by
and among                                          (the “Assignor”),                                          (the “Assignee”),
and WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent (the “Agent”).

     WHEREAS, the Assignor is a Lender under that certain Amended and Restated Credit Agreement
dated as of May 25, 2005 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), by and among United Dominion Realty Trust, Inc. (the “Borrower”),
the financial institutions party thereto and their assignees under Section 12.5 thereof (the
“Lenders”), the Agent, and the other parties thereto;

     WHEREAS, the Assignor desires to assign to the Assignee, among other things, all or a portion
of the Assignor’s Commitment under the Credit Agreement, all on the terms and conditions set forth
herein; and

     WHEREAS, the Agent consents to such assignment on the terms and conditions set forth herein;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
hereby are acknowledged by the parties hereto, the parties hereto hereby agree as follows:

     Section 1. Assignment.

     (a) Subject to the terms and conditions of this Agreement and in consideration of the payment
to be made by the Assignee to the Assignor pursuant to Section 2 of this Agreement, effective as of
                    , 200___(the “Assignment Date”), the Assignor hereby irrevocably sells, transfers and
assigns to the Assignee, without recourse, a $                     interest (such interest being the
“Assigned Commitment”) in and to the Assignor’s Commitment and all of the other rights and
obligations of the Assignor under the Credit Agreement, such Assignor’s Revolving Note and the
other Loan Documents (representing                     % in respect of the aggregate amount of all Lenders’
Commitments), including without limitation, a principal amount of outstanding Revolving Loans equal
to $                     and all voting rights of the Assignor associated with the Assigned Commitment, all
rights to receive interest on such amount of Revolving Loans and all commitment and other Fees with
respect to the Assigned Commitment and other rights of the Assignor under the Credit Agreement and
the other Loan Documents with respect to the Assigned Commitment, all as if the Assignee were an
original Lender under and signatory to the Credit Agreement having a Commitment equal to the amount
of the Assigned Commitment. The Assignee, subject to the terms and conditions hereof, hereby
assumes all obligations of the Assignor with respect to the Assigned Commitment as if the Assignee
were an original Lender under and signatory to the Credit Agreement having a Commitment equal to
the Assigned Commitment, which obligations shall include, but shall not be limited to, the
obligation
of the Assignor to make Revolving Loans to the Borrower with

A-1

 

respect to the Assigned
Commitment, the obligation to pay the Agent amounts due in respect of draws under Letters of Credit
as required under Section 2.4(i) of the Credit Agreement and the obligation to indemnify the Agent
as provided therein (the foregoing enumerated obligations, together with all other similar
obligations more particularly set forth in the Credit Agreement and the other Loan Documents, shall
be referred to hereinafter, collectively, as the “Assigned Obligations”). [In addition, the
Assignor hereby irrevocably sells, transfers and assigns to the Assignee, without recourse, a
$                     interest in and to the Assignor’s Bid Rate Note, including without limitation, a
principal amount of outstanding Bid Rate Loans owing to the Assignor in an aggregate amount equal
to $                    , all rights to receive interest on such amount of Bid Rate Loans and other rights of
the Assignor under the Credit Agreement and the other Loan Documents with respect to such Bid Rate
Loans, all as if the Assignee had originally made such amount of Bid Rate Loans to the Borrower.
The obligations assigned pursuant to the immediately preceding sentence shall constitute Assigned
Obligations hereunder.] The Assignor shall have no further duties or obligations with respect to,
and shall have no further interest in, the Assigned Obligations or the Assigned Commitment from and
after the Assignment Date.

     (b) The assignment by the Assignor to the Assignee hereunder is without recourse to the
Assignor. The Assignee makes and confirms to the Agent, the Assignor, and the other Lenders all of
the representations, warranties and covenants of a Lender under Article XI. of the Credit
Agreement. Not in limitation of the foregoing, the Assignee acknowledges and agrees that, except
as set forth in Section 4 below, the Assignor is making no representations or warranties with
respect to, and the Assignee hereby releases and discharges the Assignor for any responsibility or
liability for: (i) the present or future solvency or financial condition of the Borrower, any
Subsidiary or any other Loan Party, (ii) any representations, warranties, statements or information
made or furnished by the Borrower, any Subsidiary or any other Loan Party in connection with the
Credit Agreement or otherwise, (iii) the validity, efficacy, sufficiency, or enforceability of the
Credit Agreement, any other Loan Document or any other document or instrument executed in
connection therewith, or the collectibility of the Assigned Obligations, (iv) the perfection,
priority or validity of any Lien with respect to any collateral at any time securing the
Obligations or the Assigned Obligations under the Notes or the Credit Agreement and (v) the
performance or failure to perform by the Borrower or any other Loan Party of any obligation under
the Credit Agreement or any other Loan Document to which it is a party. Further, the Assignee
acknowledges that it has, independently and without reliance upon the Agent, or on any affiliate or
subsidiary thereof, the Assignor or any other Lender and based on the financial statements supplied
by the Borrower and such other documents and information as it has deemed appropriate, made its own
credit and legal analysis and decision to become a Lender under the Credit Agreement. The Assignee
also acknowledges that it will, independently and without reliance upon the Agent, the Assignor or
any other Lender and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action under the Credit
Agreement or any other Loan Documents or pursuant to any other obligation. Except as expressly
provided in the Credit Agreement, the Agent shall have no duty or responsibility whatsoever, either
initially or on a continuing basis, to provide the Assignee with any credit or other information
with respect to the Borrower or any other Loan Party or to notify the Assignee of any Default or
Event of Default. The Assignee has
not relied on the Agent as to any legal or factual matter in connection therewith or in
connection with the transactions contemplated thereunder.

A-2

 

     Section 2. Payment by Assignee. In consideration of the assignment made pursuant to
Section 1 of this Agreement, the Assignee agrees to pay to the Assignor on the Assignment Date, an
amount equal to $                     representing (i) the aggregate principal amount outstanding of the Loans
owing to the Assignor under the Credit Agreement and the other Loan Documents being assigned hereby
plus (ii) the aggregate amount of payments previously made by Assignor under Section 2.4(j) of the
Credit Agreement which have not been repaid and which are being assigned hereby.

     Section 3. Payments by Assignor. The Assignor agrees to pay to the Agent on the
Assignment Date the administration fee, if any, payable under the applicable provisions of the
Credit Agreement.

     Section 4. Representations and Warranties of Assignor. The Assignor hereby
represents and warrants to the Assignee that (a) as of the Assignment Date (i) the Assignor is a
Lender under the Credit Agreement having a Commitment under the Credit Agreement [and the
outstanding principal balance of Bid Rate Loans owing to the Assignor] (without reduction by any
assignments thereof which have not yet become effective), equal to $                     [and $                    ,
respectively], and that the Assignor is not in default of its obligations under the Credit
Agreement; and (ii) the outstanding balance of Revolving Loans owing to the Assignor (without
reduction by any assignments thereof which have not yet become effective) is $                    ; and (b)
it is the legal and beneficial owner of the Assigned Commitment which is free and clear of any
adverse claim created by the Assignor.

     Section 5. Representations, Warranties and Agreements of Assignee. The Assignee (a)
represents and warrants that it is (i) legally authorized to enter into this Agreement, (ii) an
“accredited investor” (as such term is used in Regulation D of the Securities Act) and (iii) an
Eligible Assignee; (b) confirms that it has received a copy of the Credit Agreement, together with
copies of the most recent financial statements delivered in connection therewith or pursuant
thereto and such other documents and information (including without limitation the Loan Documents)
as it has deemed appropriate to make its own credit analysis and decision to enter into this
Agreement; (c) appoints and authorizes the Agent to take such action as contractual representative
on its behalf and to exercise such powers under the Loan Documents as are delegated to the Agent by
the terms thereof together with such powers as are reasonably incidental thereto; and (d) agrees
that, if not already a Lender and to the extent of the Assigned Commitment, it will become a party
to and shall be bound by the Credit Agreement and the other Loan Documents to which the other
Lenders are a party on the Assignment Date and will perform in accordance therewith all of the
obligations which are required to be performed by it as a Lender with respect to the Assigned
Commitment.

     Section 6. Recording and Acknowledgment by the Agent. Following the execution of
this Agreement, the Assignor will deliver to the Agent (a) a duly executed copy of this Agreement
for acknowledgment and recording by the Agent and (b) the Assignor’s Revolving Note [and Bid
Rate Note]. Upon such acknowledgment and recording, from and after the Assignment Date, the
Agent shall make all payments in respect of the interest assigned hereby (including payments of
principal, interest, Fees and other amounts) to the Assignee. The

A-3

 

Assignor and Assignee shall make
all appropriate adjustments in payments under the Credit Agreement for periods prior to the
Assignment Date directly between themselves.

     Section 7. Addresses. The Assignee specifies as its address for notices and its
Lending Office for all Loans, the offices set forth below:

	 	 	 	 	 	 	 	 	 
	 	 	Notice Address:	 	
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	
	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	Telephone No.:
	 	

	 	 
	

	 	 	 	Telecopy No.:
	 	

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Lending Office:	 	
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	
	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	Telephone No.:
	 	

	 	 
	

	 	 	 	Telecopy No.:
	 	

	 	 

     Section 8. Payment Instructions. All payments to be made to the Assignee under this
Agreement by the Assignor, and all payments to be made to the Assignee under the Credit Agreement,
shall be made as provided in the Credit Agreement in accordance with the following instructions:

	 	 	 	 	 
	 

	 	

	 	 
	 
	 	 	 	 
	 

	 	

	 	 

     Section 9. Effectiveness of Assignment. This Agreement, and the assignment and
assumption contemplated herein, shall not be effective until (a) this Agreement is executed and
delivered by each of the Assignor, the Assignee, the Agent, and if required under Section 12.5.(d)
of the Credit Agreement, the Borrower, and (b) the payment to the Assignor of the amounts, if any,
owing by the Assignee pursuant to Section 2 hereof and (c) the payment to the Agent of the amounts,
if any, owing by the Assignor pursuant to Section 3 hereof. Upon recording and acknowledgment of
this Agreement by the Agent, from and after the Assignment Date, (i) the Assignee shall be a party
to the Credit Agreement and, to the extent provided in this Agreement, have the rights and
obligations of a Lender thereunder and (ii) the Assignor shall, to the extent provided in this
Agreement, relinquish its rights (except as otherwise provided in Section 12.10 of the Credit
Agreement) and be released from its obligations under the Credit Agreement; provided,
however, that if the Assignor does not assign its entire interest under the Loan Documents,
it shall remain a Lender entitled to all of the benefits and subject to all of the obligations
thereunder with respect to its Commitment.

     Section 10. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE
FULLY PERFORMED, IN SUCH STATE.

A-4

 

     Section 11. Counterparts. This Agreement may be executed in any number of
counterparts each of which, when taken together, shall constitute one and the same agreement.

     Section 12. Headings. Section headings have been inserted herein for convenience
only and shall not be construed to be a part hereof.

     Section 13. Amendments; Waivers. This Agreement may not be amended, changed, waived
or modified except by a writing executed by the Assignee and the Assignor; provided,
however, any amendment, waiver or consent which shall affect the rights or duties of the
Agent under this Agreement shall not be effective unless signed by the Agent.

     Section 14. Entire Agreement. This Agreement embodies the entire agreement between
the Assignor and the Assignee with respect to the subject matter hereof and supersedes all other

prior arrangements and understandings relating to the subject matter hereof.

     Section 15. Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns.

     Section 16. Definitions. Terms not otherwise defined herein are used herein with the
respective meanings given them in the Credit Agreement.

     [Include this Section only if Borrower’s consent is required under Section 12.5.(d) Section
17. Agreements of the Borrower. The Borrower hereby agrees that the Assignee shall be a
Lender under the Credit Agreement having a Commitment equal to the Assigned Commitment. The
Borrower agrees that the Assignee shall have all of the rights and remedies of a Lender under the
Credit Agreement and the other Loan Documents as if the Assignee were an original Lender under and
signatory to the Credit Agreement, including, but not limited to, the right of a Lender to receive
payments of principal and interest with respect to the Assigned Obligations, and to the Revolving
Loans made by the Lenders after the date hereof and to receive the commitment and other Fees
payable to the Lenders as provided in the Credit Agreement. Further, the Assignee shall be
entitled to the indemnification provisions from the Borrower in favor of the Lenders as provided in
the Credit Agreement and the other Loan Documents. The Borrower further agrees, upon the execution
and delivery of this Agreement, to execute in favor of the Assignee, and if applicable the
Assignor, Notes as required by Section 12.5(d) of the Credit Agreement. Upon receipt by the
Assignor of the amounts due the Assignor under Section 2, the Assignor agrees to surrender to the
Borrower such Assignor’s Notes.]

     [Signatures on Following Pages]

A-5

 

     IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment and Acceptance
Agreement as of the date and year first written above.

	 	 	 	 	 
	 	ASSIGNOR:

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	ASSIGNEE:

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 
	[Include signature of the Borrower only
if required under Section 12.5.(d)
of the Credit Agreement]
	 	 
	Agreed and consented to as to Section 17
hereof of the date first written above.
	 	 

	 	 	 	 	 
	BORROWER:

UNITED DOMINION REALTY TRUST, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

[Signatures Continued on Following Page]

A-6

 

	 	 	 	 	 
	Accepted as of the date first written above.

AGENT:

WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent

 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

A-7

 

EXHIBIT B

FORM OF DESIGNATION AGREEMENT

     THIS DESIGNATION AGREEMENT dated as of                                         ,                      (the “Agreement”) by and among
                                                             (the “Designating Lender”),                                                              (the “Designated
Lender”) and Wachovia Bank, National Association, as Agent (the “Agent”).

     WHEREAS, the Designating Lender is a Lender under that certain Amended and Restated Credit
Agreement dated as of May 25, 2005 (as amended, restated, supplemented or otherwise modified from
time to time, the “Credit Agreement”), by and among United Dominion Realty Trust, Inc. (the
“Borrower”), the financial institutions party thereto and their assignees under Section 12.5
thereof (the “Lenders”), the Agent, and the other parties thereto;

     WHEREAS, pursuant to Section 12.5(e), the Designating Lender desires to designate the
Designated Lender as its “Designated Lender” under and as defined in the Credit Agreement; and

     WHEREAS, the Agent consents to such designation on the terms and conditions set forth herein.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
hereby are acknowledged by the parties hereto, the parties hereto hereby agree as follows:

     Section 1. Designation. Subject to the terms and conditions of this Agreement, the
Designating Lender hereby designates the Designated Lender, and the Designated Lender hereby
accepts such designation, to have a right to make Bid Rate Loans on behalf of the Designating
Lender pursuant to Section 2.2. of the Credit Agreement. Any assignment by the Designating Lender
to the Designated Lender of rights to make a Bid Rate Loan shall only be effective at the time such
Bid Rate Loan is funded by the Designated Lender. The Designated Lender, subject to the terms and
conditions hereof, hereby agrees to make such accepted Bid Rate Loans and to perform such other
obligations as may be required of it as a Designated Lender under the Credit Agreement.

     Section 2. Designating Lender Not Discharged. Notwithstanding the designation of the
Designated Lender hereunder, the Designating Lender shall be and remain obligated to the Borrower,
the Agent and the Lenders for each and every of the obligations of the Designating Lender and its
related Designated Lender with respect to the Credit Agreement and the other Loan Documents,
including, without limitation, any indemnification obligations under Section 11.7 of the Credit
Agreement and any sums otherwise payable to the Borrower by the Designated Lender.

     Section 3. No Representations by Designating Lender. The Designating Lender makes no
representation or warranty and, except as set forth in Section 8 below, assumes no

B-1

 

responsibility
pursuant to this Agreement with respect to (a) any statements, warranties or representations
made in or in connection with any Loan Document or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of any Loan Document or any other instrument and
document furnished pursuant thereto and (b) the financial condition of the Borrower, any Subsidiary
or any other Loan Party or the performance or observance by the Borrower or any other Loan Party of
any of its respective obligations under any Loan Document to which it is a party or any other
instrument or document furnished pursuant thereto.

     Section 4. Representations and Covenants of Designated Lender. The Designated Lender
makes and confirms to the Agent, the Designating Lender, and the other Lenders all of the
representations, warranties and covenants of a Lender under Article XI of the Credit Agreement.
Not in limitation of the foregoing, the Designated Lender (a) represents and warrants that it (i)
is legally authorized to enter into this Agreement; (ii) is an “accredited investor” (as such term
is used in Regulation D of the Securities Act) and (iii) meets the requirements of a “Designated
Lender” contained in the definition of such term contained in the Credit Agreement; (b) confirms
that it has received a copy of the Credit Agreement, together with copies of the most recent
financial statements delivered pursuant thereto and such other documents and information (including
without limitation the Loan Documents) as it has deemed appropriate to make its own credit analysis
and decision to enter into this Agreement; (c) confirms that it has, independently and without
reliance upon the Agent, or on any affiliate thereof, the Designating Lender or any other Lender
and based on such financial statements and such other documents and information, made its own
credit and legal analysis and decision to become a Designated Lender under the Credit Agreement;
(d) appoints and authorizes the Agent to take such action as contractual representative on its
behalf and to exercise such powers under the Loan Documents as are delegated to the Agent by the
terms thereof together with such powers as are reasonably incidental thereto; and (e) agrees that
it will become a party to and shall be bound by the Credit Agreement, the other Loan Documents to
which the other Lenders are a party on the Effective Date (as defined below) and will perform in
accordance therewith all of the obligations which are required to be performed by it as a
Designated Lender. The Designated Lender also acknowledges that it will, independently and without
reliance upon the Agent, the Designating Lender or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement or any Note or pursuant to any other
obligation. The Designated Lender acknowledges and agrees that except as expressly required under
the Credit Agreement, the Agent shall have no duty or responsibility whatsoever, either initially
or on a continuing basis, to provide the Designated Lender with any credit or other information
with respect to the Borrower, any Subsidiary or any other Loan Party or to notify the Designated
Lender of any Default or Event of Default.

     Section 5. Appointment of Designating Lender as Attorney-In-Fact. The Designated
Lender hereby appoints the Designating Lender as the Designated Lender’s agent and
attorney-in-fact, and grants to the Designating Lender an irrevocable power of attorney, to receive
any and all payments to be made for the benefit of the Designated
Lender under the Credit
Agreement, to deliver and receive all notices and other communications under the Credit Agreement
and other Loan Documents and to exercise on the Designated Lender’s behalf all
rights to vote and to grant and make approvals, waivers, consents of amendments to or under
the

B-2

 

 Credit Agreement or other Loan Documents. Any document executed by the Designating Lender on
the Designated Lender’s behalf in connection with the Credit Agreement or other Loan Documents
shall be binding on the Designated Lender. Each of the Borrower, each Agent and each of the
Lenders may rely on and are beneficiaries of the preceding provisions.

     Section 6. Acceptance by the Agent. Following the execution of this Agreement by the
Designating Lender and the Designated Lender, the Designating Lender will (i) deliver to the Agent
a duly executed original of this Agreement for acceptance by the Agent and (ii) pay to the Agent
the fee, if any, payable under the applicable provisions of the Credit Agreement whereupon this
Agreement shall become effective as of the date of such acceptance or such other date as may be
specified on the signature page hereof (the “Effective Date”).

     Section 7. Effect of Designation. Upon such acceptance and recording by the Agent,
as of the Effective Date, the Designated Lender shall be a party to the Credit Agreement with a
right to make Bid Rate Loans as a Lender pursuant to Section 2.2. of the Credit Agreement and the
rights and obligations of a Lender related thereto; provided, however, that the
Designated Lender shall not be required to make payments with respect to such obligations except to
the extent of excess cash flow of the Designated Lender which is not otherwise required to repay
obligations of the Designated Lender which are then due and payable. Notwithstanding the
foregoing, the Designating Lender, as agent for the Designated Lender, shall be and remain
obligated to the Borrowers, the Agent and the Lenders for each and every of the obligations of the
Designated Lender and the Designating Lender with respect to the Credit Agreement.

     Section 8. Indemnification of Designated Lender. The Designating Lender
unconditionally agrees to pay or reimburse the Designated Lender and save the Designated Lender
harmless against all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed or
asserted by any of the parties to the Loan Documents against the Designated Lender, in its capacity
as such, in any way relating to or arising out of this Agreement or any other Loan Documents or any
action taken or omitted by the Designated Lender hereunder or thereunder, provided that the
Designating Lender shall not be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements if the same results
from the Designated Lender’s gross negligence or willful misconduct.

     Section 9. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE
FULLY PERFORMED, IN SUCH STATE.

     Section 10. Counterparts. This Agreement may be executed in any number of
counterparts each of which, when taken together, shall constitute one and the same agreement.

     Section 11. Headings. Section headings have been inserted herein for convenience
only and shall not be construed to be a part hereof.

B-3

 

     Section 12. Amendments; Waivers. This Agreement may not be amended, changed, waived
or modified except by a writing executed by all parties hereto.

     Section 13. Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns.

     Section 14. Definitions. Terms not otherwise defined herein are used herein with the
respective meanings given them in the Credit Agreement.

[Signatures on Following Page]

B-4

 

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

	 	 	 	 	 
	 	EFFECTIVE DATE:                                        

DESIGNATING LENDER:

[NAME OF DESIGNATING LENDER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	DESIGNATED LENDER:

[NAME OF DESIGNATED LENDER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	Accepted as of the date first written above.

AGENT:

WACHOVIA BANK, NATIONAL ASSOCIATION, as Agent

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

B-5

 

EXHIBIT C

FORM OF NOTICE OF BORROWING

                    , 200  

Wachovia Bank, National Association, as Agent

One Wachovia Center,

301 South College Street

Mail Code: NC0166

Charlotte, North Carolina 28288-0166

Attention: David B. Hoagland

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement dated as of May 25,
2005 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among United Dominion Realty Trust, Inc. (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), Wachovia
Bank, National Association, as Agent (the “Agent”), and the other parties thereto. Capitalized
terms used herein, and not otherwise defined herein, have their respective meanings given them in
the Credit Agreement.

	 	1.  	Pursuant to Section 2.1.(b) of the Credit Agreement, the Borrower hereby
requests that the Lenders make Revolving Loans to the Borrower in an aggregate
principal amount equal to $                    .
	 
	 	2.  	The Borrower requests that such Revolving Loans be made available to the
Borrower on                     , 200  .
	 
	 	3.  	The Borrower hereby requests that the requested Revolving Loans all be of the
following Type:
	 
	 	   	[Check one box only]

	 	   	o Base Rate Loans
	 
	 	   	o LIBOR Loans, each with an initial Interest Period for a duration of:

	 	 	 	 	 	 	 
	 

	 	[Check one box only]
	 	o
	 	14 days
	

	 	 	 	o
	 	30 days
	

	 	 	 	o
	 	60 days
	

	 	 	 	o
	 	90 days
	

	 	 	 	o
	 	120 days
	

	 	 	 	o
	 	180 days

C-1

 

	 	4.  	The proceeds of this borrowing of Revolving Loans will be used for the
following purpose:
_________ ____________________________________________________________________________________.
	 
	 	5.  	The Borrower requests that the proceeds of this borrowing of Revolving Loans be
made available to the Borrower by _____ ______________________________.

     The Borrower hereby certifies to the Agent and the Lenders that as of the date hereof and as
of the date of the making of the requested Revolving Loans and after giving effect thereto, (a) no
Default or Event of Default exists or shall exist, and (b) the representations and warranties made
or deemed made by the Borrower and each other Loan Party in the Loan Documents to which any of them
is a party are and shall be true and correct in all material respects, except to the extent that
such representations and warranties expressly relate solely to an earlier date (in which case such
representations and warranties were true and accurate on and as of such earlier date) and except
for changes in factual circumstances specifically and expressly permitted under the Credit
Agreement. In addition, the Borrower certifies to the Agent and the Lenders that all conditions to
the making of the requested Revolving Loans contained in Article V. of the Credit Agreement will
have been satisfied at the time such Revolving Loans are made.

     If notice of the requested borrowing of Revolving Loans was previously given by telephone,
this notice is to be considered the written confirmation of such telephone notice required by
Section 2.1.(b) of the Credit Agreement.

     IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of Borrowing
as of the date first written above.

	 	 	 	 	 
	 	UNITED DOMINION REALTY TRUST, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

C-2

 

EXHIBIT D

FORM OF NOTICE OF CONTINUATION

                    , 200  

Wachovia Bank, National Association, as Agent

One Wachovia Center,

301 South College Street

Mail Code: NC0166

Charlotte, North Carolina 28288-0166

Attention: David B. Hoagland

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement dated as of May 25,
2005 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among United Dominion Realty Trust, Inc. (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), Wachovia
Bank, National Association, as Agent (the “Agent”), and the other parties thereto. Capitalized
terms used herein, and not otherwise defined herein, have their respective meanings given them in
the Credit Agreement.

     Pursuant to Section 2.9. of the Credit Agreement, the Borrower hereby requests a Continuation
of a borrowing of Loans under the Credit Agreement, and in that connection sets forth below the
information relating to such Continuation as required by such Section of the Credit Agreement:

	 	1.  	The proposed date of such Continuation is                     ,      .
	 
	 	2.  	The aggregate principal amount of Loans subject to the requested Continuation
is $                     and was originally borrowed by the Borrower on
                    , 200  .
	 
	 	3.  	The portion of such principal amount subject to such Continuation is
$                                        .
	 
	 	4.  	The current Interest Period for each of the Loans subject to such Continuation
ends on                                         , 200  .
	 
	 	5.  	The duration of the new Interest Period for each of such Loans or portion
thereof subject to such Continuation is:

	 	 	 	 	 	 	 
	 

	 	[Check one box only]
	 	o
	 	14 days
	

	 	 	 	o
	 	30 days

D-1

 

	 	 	 	 	 	 	 
	

	 	 	 	o
	 	60 days
	

	 	 	 	o
	 	90 days
	

	 	 	 	o
	 	120 days
	

	 	 	 	o
	 	180 days

     The Borrower hereby certifies to the Agent and the Lenders that as of the date hereof, as of
the proposed date of the requested Continuation, and after giving effect to such Continuation, no
Default or Event of Default exists or will exist.

     If notice of the requested Continuation was given previously by telephone, this notice is to
be considered the written confirmation of such telephone notice required by Section 2.9. of the
Credit Agreement.

     IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of
Continuation as of the date first written above.

	 	 	 	 	 
	 	UNITED DOMINION REALTY TRUST, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

D-2

 

EXHIBIT E

FORM OF NOTICE OF CONVERSION

                    , 200  

Wachovia Bank, National Association, as Agent

One Wachovia Center,

301 South College Street

Mail Code: NC0166

Charlotte, North Carolina 28288-0166

Attention: David B. Hoagland

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement dated as of May 25,
2005 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among United Dominion Realty Trust, Inc. (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), Wachovia
Bank, National Association, as Agent (the “Agent”), and the other parties thereto. Capitalized
terms used herein, and not otherwise defined herein, have their respective meanings given them in
the Credit Agreement.

     Pursuant to Section 2.10. of the Credit Agreement, the Borrower hereby requests a Conversion
of a borrowing of Loans of one Type into Loans of another Type under the Credit Agreement, and in
that connection sets forth below the information relating to such Conversion as required by such
Section of the Credit Agreement:

	 	1.  	The proposed date of such Conversion is                     , 200  .
	 
	 	2.  	The Loans to be Converted pursuant hereto are currently:

	 	 	 	 	 	 	 
	 

	 	[Check one box only]
	 	o
	 	Base Rate Loans
	

	 	 	 	o
	 	LIBOR Loans

	 	3.  	The aggregate principal amount of Loans subject to the requested Conversion is
$                                        and was originally borrowed by the Borrower on                     ,
200  .
	 
	 	4.  	The portion of such principal amount subject to such Conversion is
$                                        .

E-1

 

	 	5.  	The amount of such Loans to be so Converted is to be converted into Loans of
the following Type:
	 
	 	   	[Check one box only]

	   	o Base Rate Loans
	 
	   	o LIBOR Loans, each with an initial Interest Period for a duration of:

	 	 	 	 	 	 	 
	 

	 	[Check one box only]
	 	o
	 	14 days
	

	 	 	 	o
	 	30 days
	

	 	 	 	o
	 	60 days
	

	 	 	 	o
	 	90 days
	

	 	 	 	o
	 	120 days
	

	 	 	 	o
	 	180 days

     The Borrower hereby certifies to the Agent and the Lenders that as of the date hereof and as
of the date of the requested Conversion and after giving effect thereto, (a) no Default or Event of
Default exists or will exist, and (b) the representations and warranties made or deemed made by the
Borrower and each other Loan Party in the Loan Documents to which any of them is a party are and
shall be true and correct in all material respects, except to the extent that such representations
and warranties expressly relate solely to an earlier date (in which case such representations and
warranties were true and accurate on and as of such earlier date) and except for changes in factual
circumstances specifically and expressly permitted under the Credit Agreement.

     If notice of the requested Conversion was given previously by telephone, this notice is to be
considered the written confirmation of such telephone notice required by Section 2.10. of the
Credit Agreement.

     IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of Conversion
as of the date first written above.

	 	 	 	 	 
	 	UNITED DOMINION REALTY TRUST, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

E-2

 

EXHIBIT F

FORM OF NOTICE OF SWINGLINE BORROWING

                                        ,                     

Wachovia Bank, National Association, as Agent

One Wachovia Center,

301 South College Street

Mail Code: NC0166

Charlotte, North Carolina 28288-0166

Attention: David B. Hoagland

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement dated as of May 25,
2005 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among United Dominion Realty Trust, Inc. (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), Wachovia
Bank, National Association, as Agent (the “Agent”), and the other parties thereto. Capitalized
terms used herein, and not otherwise defined herein, have their respective meanings given them in
the Credit Agreement.

	 	1.  	Pursuant to Section 2.3.(b) of the Credit Agreement, the Borrower hereby
requests that the Swingline Lender make a Swingline Loan to the Borrower in an amount
equal to $                                        .
	 
	 	2.  	The Borrower requests that such Swingline Loan be made available to the
Borrower on                     , 200  .
	 
	 	3.  	The proceeds of this Swingline Loan will be used for the
following purpose:

                                                                         
                
                  
                   
                    
                    
              
                                                                         
                
                  
                   
                    
                    
              .
	 
	 	4.  	The Borrower requests that the proceeds of such Swingline Loan be made
available to the Borrower by

                     

                    

                                                            

                    .

     The Borrower hereby certifies to the Agent, the Swingline Lender and the Lenders that as of
the date hereof, as of the date of the making of the requested Swingline Loan, and after making
such Swingline Loan, (a) no Default or Event of Default exists or will exist, and (b) the
representations and warranties made or deemed made by the Borrower and each other Loan Party in the
Loan Documents to which any of them is a party are and shall be true and correct in all material
respects, except to the extent that such representations and warranties expressly relate solely to
an earlier date (in which case such representations and warranties were true and accurate
on and as of such earlier date) and except for changes in factual circumstances

F-1

 

specifically and
expressly permitted under the Credit Agreement. In addition, the Borrower certifies to the Agent
and the Lenders that all conditions to the making of the requested Swingline Loan contained in
Article V. of the Credit Agreement will have been satisfied at the time such Swingline Loan is
made.

     If notice of the requested borrowing of this Swingline Loan was previously given by telephone,
this notice is to be considered the written confirmation of such telephone notice required by
Section 2.3.(b) of the Credit Agreement.

     IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Notice of Swingline
Borrowing as of the date first written above.

	 	 	 	 	 
	 	UNITED DOMINION REALTY TRUST, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

F-2

 

EXHIBIT G

FORM OF SWINGLINE NOTE

 

					
	$35,000,000.00
	 	 
	 	May 25, 2005

     FOR VALUE RECEIVED, the undersigned, UNITED DOMINION REALTY TRUST, INC., a Maryland
corporation (the “Borrower”), hereby promises to pay to the order of WACHOVIA BANK, NATIONAL
ASSOCIATION (the “Swingline Lender”) to its address at One Wachovia Center, 301 South College
Street, Charlotte, North Carolina 28288, or at such other address as may be specified in writing
by the Swingline Lender to the Borrower, the principal sum of THIRTY-FIVE MILLION AND NO/100
DOLLARS ($35,000,000.00) (or such lesser amount as shall equal the aggregate unpaid principal
amount of Swingline Loans made by the Swingline Lender to the Borrower under the Credit Agreement),
on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest on
the unpaid principal amount owing hereunder, at the rates and on the dates provided in the Credit
Agreement.

     The date, amount of each Swingline Loan, and each payment made on account of the principal
thereof, shall be recorded by the Swingline Lender on its books and, prior to any transfer of this
Note, endorsed by the Swingline Lender on the schedule attached hereto or any continuation thereof,
provided that the failure of the Swingline Lender to make any such recordation or
endorsement shall not affect the obligations of the Borrower to make a payment when due of any
amount owing under the Credit Agreement or hereunder in respect of the Swingline Loans.

     This Note is the Swingline Note referred to in the Amended and Restated Credit Agreement dated
as of May 25, 2005 (as amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), by and among the Borrower, the financial institutions party thereto and their
assignees under Section 12.5 thereof (the “Lenders”), Wachovia Bank, National Association, as
Agent, and the other parties thereto, and evidences Swingline Loans made to the Borrower
thereunder. Terms used but not otherwise defined in this Note have the respective meanings
assigned to them in the Credit Agreement.

     The Credit Agreement provides for the acceleration of the maturity of this Note upon the
occurrence of certain events and for prepayments of Swingline Loans upon the terms and conditions
specified therein.

     THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

     The Borrower hereby waives presentment for payment, demand, notice of demand, notice of
non-payment, protest, notice of protest and all other similar notices.

     Time is of the essence for this Note.

G-1

 

     IN WITNESS WHEREOF, the undersigned has executed and delivered this Swingline Note under seal
as of the date first written above.

	 	 	 	 	 
	 	UNITED DOMINION REALTY TRUST, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

G-2

 

SCHEDULE OF SWINGLINE LOANS

     This Note evidences Swingline Loans made under the within-described Credit Agreement to the
Borrower, on the dates and in the principal amounts set forth below, subject to the payments and
prepayments of principal set forth below:

	 	 	 	 	 	 	 	 	 
	 	 	Principal	 	 	 	Unpaid	 	 
	 	 	Amount of	 	Amount Paid or	 	Principal	 	Notation
	Date of Loan	 	Loan	 	Prepaid	 	Amount	 	Made By
	 

	 	 
	 	 
	 	 
	 	 

G-3

 

EXHIBIT H

FORM OF BID RATE QUOTE REQUEST

                                        ,                     

Wachovia Bank, National Association, as Agent

One Wachovia Center,

301 South College Street

Mail Code: NC0166

Charlotte, North Carolina 28288-0166

Attention: David B. Hoagland

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement dated as of May 25,
2005 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among United Dominion Realty Trust, Inc. (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), Wachovia
Bank, National Association, as Agent (the “Agent”), and the other parties thereto. Capitalized
terms used herein, and not otherwise defined herein, have their respective meanings given them in
the Credit Agreement.

	 	1.  	The Borrower hereby requests Bid Rate Quotes for the following proposed Bid
Rate Borrowings:

	 	 	 	 	 	 	 
	Borrowing Date	 	Amount1	 	Type2	 	Interest Period3
	________, _______

	 	$__________
	 	__________
	 	________days

	 	2.  	Borrower’s Credit Rating, as applicable, as of the date hereof is:

	 	 	 	 	 	 	 
	 

	 	S&P
	 	______	 	 
	

	 	Moody’s
	 	______	 	 

	1	 	Minimum amount of $2,000,000 or larger multiple of
$500,000.
	 
	2	 	Insert either Absolute Rate (for Absolute Rate Loan)
or LIBOR Margin (for LIBOR Margin Loan).
	 
	3	 	No less than 7 days and up to 180 days (or up to 30
days pursuant to Section 2.15) after the borrowing date and must end on a
Business Day.

H-1

 

	 	3.  	The proceeds of this Bid Rate Borrowing will be used for the following purpose:
                    

                                                                                                                                                                                                        .
	 
	 	4.  	After giving effect to the Bid Rate Borrowing requested herein, the total
amount of Bid Rate Loans outstanding shall be $                    .4

	      The Borrower hereby certifies to the Agent and the Lenders that as of the date hereof, as
of the date of the making of the requested Bid Rate Loans, and after making such Bid Rate Loans,
(a) no Default or Event of Default exists or will exist, and (b) the representations and warranties
made or deemed made by the Borrower and each other Loan Party in the Loan Documents to which any of
them is a party are and shall be true and correct in all material respects, except to the extent
that such representations and warranties expressly relate solely to an earlier date (in which case
such representations and warranties were true and accurate on and as of such earlier date) and
except for changes in factual circumstances specifically and expressly permitted under the Credit
Agreement. In addition, the Borrower certifies to the Agent and the Lenders that all conditions to
the making of the requested Bid Rate Loans contained in Article V. of the Credit Agreement will
have been satisfied at the time such Bid Rate Loans are made.
	 
	     IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Bid Rate Quote
Request as of the date first written above.

	 	 	 	 	 
	 	UNITED DOMINION REALTY TRUST, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	4	 	Must not be in excess of one-half of the aggregate
amount of all existing Commitments; provided, however, pursuant to Section
2.15, not more than once during any calendar quarter, the Borrower may elect
that the foregoing limitation not apply to a single Bid Rate Borrowing
comprised of Bid Rate Loans having Interest Periods not exceeding 30 days in
duration.

H-2

 

EXHIBIT I

FORM OF BID RATE QUOTE

________________, ____

Wachovia Bank, National Association, as Agent

One Wachovia Center,

301 South College Street

Mail Code: NC0166

Charlotte, North Carolina 28288-0166

Attention: David B. Hoagland

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement dated as of May 25,
2005 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among United Dominion Realty Trust, Inc. (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), Wachovia
Bank, National Association, as Agent (the “Agent”), and the other parties thereto. Capitalized
terms used herein, and not otherwise defined herein, have their respective meanings given them in
the Credit Agreement.

     In response to Borrower’s Bid Rate Quote Request dated ___, 200_, the undersigned
hereby makes the following Bid Rate Quote(s) on the following terms:

	 	1.  	Quoting Lender:_______________
	 
	 	2.  	Person to contact at quoting Lender:_______________
	 
	 	3.  	The undersigned offers to make Bid Rate Loan(s) in the following principal
amount(s), for the following Interest Period(s) and at the following Bid Rate(s):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Borrowing Date	 	Amount1	 	 	Type2	 	 	Interest Period3	 	Bid Rate	 
	_________, 200__
	 	$_________	 	 	 	_________	 	 	 	______days	 	_________%	 	 

1 Minimum amount of $2,000,000 or larger multiple of $500,000.

2 Insert either Absolute Rate (for Absolute Rate Loan) or LIBOR Margin (for LIBOR Margin Loan).

3 No less than 7 days and up to 180 days (or up to 30
days pursuant to Section 2.15) after the borrowing date and must end on a
Business Day.

I-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	__________, 200__
	 	$	 	 	 	 	 	 	 	______days	 	 	%	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	__________, 200__
	 	$	 	 	 	 	 	 	 	______days	 	 	%	 
	 
	 	 	 	 	 	 	 	 	 	 	 

     The undersigned understands and agrees that the offer(s) set forth above, subject to
satisfaction of the applicable conditions set forth in the Credit Agreement, irrevocably
obligate[s] the undersigned to make the Bid Rate Loan(s) for which any offer(s) [is/are] accepted,
in whole or in part.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[Name of Quoting Lender]	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	Title:	 	 	 	 
	

	 	 	 	 	 	 	 	 

I-2

 

EXHIBIT J

FORM OF BID RATE QUOTE ACCEPTANCE

__________________, 200_

Wachovia Bank, National Association, as Agent

One Wachovia Center,

301 South College Street

Mail Code: NC0166

Charlotte, North Carolina 28288-0166

Attention: David B. Hoagland

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement dated as of May 25,
2005 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among United Dominion Realty Trust, Inc. (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), Wachovia
Bank, National Association, as Agent (the “Agent”), and the other parties thereto. Capitalized
terms used herein, and not otherwise defined herein, have their respective meanings given them in
the Credit Agreement.

     Borrower hereby accepts the following offer(s) of Bid Rate Quotes to be made available to the
Borrower on ___, 200_:

	 	 	 	 	 	 	 	 	 
	Quote Date	 	Quoting Lender	 	 	Amount Accepted	 
	_________, 200_
	 	_________	 	 	 	 	$_________	 
	 
	 	 	 	 	 	 	 	 
	_________, 200_
	 	_________	 	 	 	 	$_________	 
	 
	 	 	 	 	 	 	 	 
	_________, 200_
	 	_________	 	 	 	 	$_________	 

     The Borrower hereby certifies to the Agent and the Lenders that as of the date hereof, as of
the date of the making of the requested Bid Rate Loans, and after making such Bid Rate Loans, (a)
no Default or Event of Default exists or will exist, and (b) the representations and warranties
made or deemed made by the Borrower and each other Loan Party in the Loan Documents to which any of
them is a party are and shall be true and correct in all material respects, except to the extent
that such representations and warranties expressly relate solely to an earlier date (in which case
such representations and warranties were true and accurate on and as of such earlier date) and
except for changes in factual circumstances specifically and expressly permitted under the Credit
Agreement. In addition, the Borrower certifies to the Agent and the
Lenders that all conditions to the making of the requested Bid Rate Loans contained in

J-1

 

Article
V. of the Credit Agreement will have been satisfied at the time such Bid Rate Loans are made.

     IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Bid Rate Quote
Acceptance as of the date first written above.

	 	 	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	Title:	 	 	 	 
	

	 	 	 	 	 	 	 	 

J-2

 

EXHIBIT K

FORM OF REVOLVING NOTE

	 	 	 	 	 	 	 
	$______________
	 	 	 	 	_______________, 200_	 

     FOR VALUE RECEIVED, the undersigned, UNITED DOMINION REALTY TRUST, INC., a Maryland
corporation (the “Borrower”), hereby promises to pay to the order of ___(the
“Lender”), in care of Wachovia Bank, National Association, as Agent (the “Agent”) to Wachovia Bank,
National Association, One Wachovia Center, 301 South College Street, Charlotte, North Carolina
28288, or at such other address as may be specified in writing by the Agent to the Borrower, the
principal sum of ___AND ___/100 DOLLARS ($___) (or such lesser amount as
shall equal the aggregate unpaid principal amount of Revolving Loans made by the Lender to the
Borrower under the Credit Agreement (as herein defined)), on the dates and in the principal amounts
provided in the Credit Agreement, and to pay interest on the unpaid principal amount owing
hereunder, at the rates and on the dates provided in the Credit Agreement.

     The date, amount of each Revolving Loan made by the Lender to the Borrower, and each payment
made on account of the principal thereof, shall be recorded by the Lender on its books and, prior
to any transfer of this Note, endorsed by the Lender on the schedule attached hereto or any
continuation thereof, provided that the failure of the Lender to make any such recordation
or endorsement shall not affect the obligations of the Borrower to make a payment when due of any
amount owing under the Credit Agreement or hereunder in respect of the Revolving Loans made by the
Lender.

     This Note is one of the Revolving Notes referred to in the Amended and Restated Credit
Agreement dated as of May 25, 2005 (as amended, restated, supplemented or otherwise modified from
time to time, the “Credit Agreement”), by and among the Borrower, the financial institutions party
thereto and their assignees under Section 12.5 thereof (the “Lenders”), the Agent, and the other
parties thereto. Capitalized terms used herein, and not otherwise defined herein, have their
respective meanings given them in the Credit Agreement.

     The Credit Agreement provides for the acceleration of the maturity of this Note upon the
occurrence of certain events and for prepayments of Loans upon the terms and conditions specified
therein.

     Except as permitted by Section 12.5.(d) of the Credit Agreement, this Note may not be assigned
by the Lender to any other Person.

K-1

 

     THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

     The Borrower hereby waives presentment for payment, demand, notice of demand, notice of
non-payment, protest, notice of protest and all other similar notices.

     Time is of the essence for this Note.

     IN WITNESS WHEREOF, the undersigned has executed and delivered this Revolving Note under seal
as of the date first written above.

	 	 	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	Title:	 	 	 	 
	

	 	 	 	 	 	 	 	 

K-2

 

SCHEDULE OF REVOLVING LOANS

     This Note evidences Revolving Loans made under the within-described Credit Agreement to the
Borrower, on the dates, in the principal amounts, bearing interest at the rates and maturing on the
dates set forth below, subject to the payments and prepayments of principal set forth below:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	Principal
	 	 	 	Maturity
	 	Amount
	 	Unpaid	 	 
	Date of

	 	Amount of
	 	Interest
	 	Date of
	 	Paid or
	 	Principal
	 	Notation
	Loan

	 	Loan
	 	Rate
	 	Loan
	 	Prepaid
	 	Amount
	 	Made By
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

K-3

 

EXHIBIT L

FORM OF BID RATE NOTE

____________, 200_

     FOR VALUE RECEIVED, the undersigned, UNITED DOMINION REALTY TRUST, INC., a Maryland
corporation (the “Borrower”), hereby promises to pay to the order of ___(the
“Lender”), in care of Wachovia Bank, National Association, as Agent (the “Agent”) to Wachovia Bank,
National Association, One Wachovia Center, 301 South College Street, Charlotte, North Carolina
28288, or at such other address as may be specified in writing by the Agent to the Borrower, the
aggregate unpaid principal amount of Bid Rate Loans made by the Lender to the Borrower under the
Credit Agreement, on the dates and in the principal amounts provided in the Credit Agreement, and
to pay interest on the unpaid principal amount of each such Bid Rate Loan, at such office at the
rates and on the dates provided in the Credit Agreement.

     The date, amount, interest rate and maturity date of each Bid Rate Loan made by the Lender to
the Borrower, and each payment made on account of the principal thereof, shall be recorded by the
Lender on its books and, prior to any transfer of this Note, endorsed by the Lender on the schedule
attached hereto or any continuation thereof, provided that the failure of the Lender to
make any such recordation or endorsement shall not affect the obligations of the Borrower to make a
payment when due of any amount owing under the Credit Agreement or hereunder in respect of the Bid
Rate Loans made by the Lender.

     This Note is one of the Bid Rate Notes referred to in the Amended and Restated Credit
Agreement dated as of May 25, 2005 (as amended, restated, supplemented or otherwise modified from
time to time, the “Credit Agreement”), by and among the Borrower, the financial institutions party
thereto and their assignees under Section 12.5 thereof (the “Lenders”), the Agent, and the other
parties thereto, and evidences Bid Rate Loans made by the Lender thereunder. Terms used but not
otherwise defined in this Note have the respective meanings assigned to them in the Credit
Agreement.

     The Credit Agreement provides for the acceleration of the maturity of this Note upon the
occurrence of certain events and for prepayments of Bid Rate Loans upon the terms and conditions
specified therein.

     Except as permitted by Section 12.5. of the Credit Agreement, this Note may not be assigned by
the Lender to any other Person.

     THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

     The Borrower hereby waives presentment for payment, demand, notice of demand, notice of
non-payment, protest, notice of protest and all other similar notices.

L-1

 

     Time is of the essence for this Note.

     IN WITNESS WHEREOF, the undersigned has executed and delivered this Bid Rate Note under seal
as of the date first written above.

	 	 	 	 	 	 	 	 	 
	 	 	UNITED DOMINION REALTY TRUST, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	Title:	 	 	 	 
	

	 	 	 	 	 	 	 	 

L-2

 

SCHEDULE OF BID RATE LOANS

     This Note evidences Bid Rate Loans made under the within-described Credit Agreement to the
Borrower, on the dates, in the principal amounts, bearing interest at the rates and maturing on the
dates set forth below, subject to the payments and prepayments of principal set forth below:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	Principal
	 	 	 	Maturity
	 	Amount
	 	Unpaid	 	 
	Date of

	 	Amount of
	 	Interest
	 	Date of
	 	Paid or
	 	Principal
	 	Notation
	Loan

	 	Loan
	 	Rate
	 	Loan
	 	Prepaid
	 	Amount
	 	Made By
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

L-3

 

EXHIBIT M

FORM OF OPINION OF COUNSEL

M-1

 

EXHIBIT N

FORM OF COMPLIANCE CERTIFICATE

_______________, 200_

Wachovia Bank, National Association, as Agent

One Wachovia Center,

301 South College Street

Mail Code: NC0166

Charlotte, North Carolina 28288-0166

Each of the Lenders Party to the Credit

      Agreement referred to below

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement dated as of May 25,
2005 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and among United Dominion Realty Trust, Inc. (the “Borrower”), the financial
institutions party thereto and their assignees under Section 12.5 thereof (the “Lenders”), Wachovia
Bank, National Association, as Agent (the “Agent”) and the other parties thereto. Capitalized
terms used herein, and not otherwise defined herein, have their respective meanings given them in
the Credit Agreement.

     Pursuant to Section 8.3. of the Credit Agreement, the undersigned hereby certifies to the
Agent and the Lenders as follows:

     (1) The undersigned is the [treasurer/ chief financial officer/ senior vice president of
finance] of the Borrower.

     (2) The undersigned has examined the books and records of the Borrower and has conducted such
other examinations and investigations as are reasonably necessary to provide this Compliance
Certificate.

     (3) To the best of the undersigned’s knowledge, after due inquiry, no Default or Event of
Default exists [if such is not the case, specify such Default or Event of Default and its nature,
when it occurred and whether it is continuing and the steps being taken by the Borrower with
respect to such event, condition or failure].

     (4) The representations and warranties made or deemed made by the Borrower and the other Loan
Parties in the Loan Documents to which any is a party, are true and correct in all material
respects on and as of the date hereof except to the extent that such representations and warranties
expressly relate solely to an earlier date (in which case such representations and
warranties shall have been true and accurate on and as of such earlier date) and except for

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changes in factual circumstances specifically and expressly permitted under the Credit Agreement.

     (5) Attached hereto as Schedule 1 are reasonably detailed calculations establishing whether or
not the Borrower and its Subsidiaries were in compliance with the covenants contained in Sections
9.1. and 9.4. of the Credit Agreement.

     IN WITNESS WHEREOF, the undersigned has executed this certificate as of the date first above
written.

	 	 	 	 	 	 	 
	 	 	 	 	 
	

	 	Name:
	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Title:	 	 	 	 
	

	 	 	 	 	 	 

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Schedule 1

[Calculations to be Attached]

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EXHIBIT O

FORM OF GUARANTY

     THIS GUARANTY dated as of May 25, 2005, executed and delivered by each of the undersigned and
the other Persons from time to time party hereto pursuant to the execution and delivery of an
Accession Agreement in the form of Annex I hereto (all of the undersigned, together with such other
Persons each a “Guarantor” and collectively, the “Guarantors”) in favor of (a) WACHOVIA BANK,
NATIONAL ASSOCIATION, in its capacity as Agent (the “Agent”) for the Lenders under that certain
that certain Amended and Restated Credit Agreement dated as of May 25, 2005 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among United
Dominion Realty Trust, Inc. (the “Borrower”), the financial institutions party thereto and their
assignees under Section 12.5 thereof (the “Lenders”), the Agent, and the other parties thereto, and
(b) the Lenders and the Swingline Lender.

     WHEREAS, pursuant to the Credit Agreement, the Agent, the Lenders and the Swingline Lender
have agreed to make available to the Borrower certain financial accommodations on the terms and
conditions set forth in the Credit Agreement;

     WHEREAS, the Borrower and each of the Guarantors, though separate legal entities, are mutually
dependent on each other in the conduct of their respective businesses as an integrated operation
and have determined it to be in their mutual best interests to obtain financing from the Agent, the
Lenders and the Swingline Lender through their collective efforts;

     WHEREAS, each Guarantor acknowledges that it will receive direct and indirect benefits from
the Agent, the Lenders and the Swingline Lender making such financial accommodations available to
the Borrower under the Credit Agreement and, accordingly, each Guarantor is willing to guarantee
the Borrower’s obligations to the Agent, the Lenders and the Swingline Lender on the terms and
conditions contained herein; and

     WHEREAS, each Guarantor’s execution and delivery of this Guaranty is a condition to the Agent
and the Lenders making, and continuing to make, such financial accommodations to the Borrower.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by each Guarantor, each Guarantor agrees as follows:

     Section 1. Guaranty. Each Guarantor hereby absolutely, irrevocably and
unconditionally guaranties the due and punctual payment and performance when due, whether at stated
maturity, by acceleration or otherwise, of all of the following (collectively referred to as the
“Guarantied Obligations”): (a) all indebtedness and obligations owing by the Borrower to any
Lender, the Swingline Lender or the Agent under or in connection with the Credit Agreement and any
other Loan Document, including without limitation, the repayment of all principal of the Revolving
Loans, Bid Rate Loans, Swingline Loans and the Reimbursement Obligations, and the payment

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of all
interest, Fees, charges, attorneys’ fees and other amounts payable to any Lender or the Agent
thereunder or in connection therewith; (b) any and all extensions, renewals, modifications,
amendments or substitutions of the foregoing; (c) all expenses, including, without limitation,
reasonable attorneys’ fees and disbursements, that are incurred by the Lenders and the Agent in the
enforcement of any of the foregoing or any obligation of such Guarantor hereunder; and (d) all
other Obligations.

     Section 2. Guaranty of Payment and Not of Collection. This Guaranty is a guaranty of
payment, and not of collection, and a debt of each Guarantor for its own account. Accordingly,
none of the Lenders, the Swingline Lender or the Agent shall be obligated or required before
enforcing this Guaranty against any Guarantor: (a) to pursue any right or remedy any of them may
have against the Borrower, any other Guarantor or any other Person or commence any suit or other
proceeding against the Borrower, any other Guarantor or any other Person in any court or other
tribunal; (b) to make any claim in a liquidation or bankruptcy of the Borrower, any other Guarantor
or any other Person; or (c) to make demand of the Borrower, any other Guarantor or any other Person
or to enforce or seek to enforce or realize upon any collateral security held by the Lenders, the
Swingline Lender or the Agent which may secure any of the Guarantied Obligations.

     Section 3. Guaranty Absolute. Each Guarantor guarantees that the Guarantied
Obligations will be paid strictly in accordance with the terms of the documents evidencing the
same, regardless of any Applicable Law now or hereafter in effect in any jurisdiction affecting any
of such terms or the rights of the Agent, the Lenders or the Swingline Lender with respect thereto.
The liability of each Guarantor under this Guaranty shall be absolute, irrevocable and
unconditional in accordance with its terms and shall remain in full force and effect without regard
to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any
circumstance or occurrence whatsoever, including without limitation, the following (whether or not
such Guarantor consents thereto or has notice thereof):

     (a) (i) any change in the amount, interest rate or due date or other term of any of the
Guarantied Obligations, (ii) any change in the time, place or manner of payment of all or any
portion of the Guarantied Obligations, (iii) any amendment or waiver of, or consent to the
departure from or other indulgence with respect to, the Credit Agreement, any other Loan Document,
or any other document or instrument evidencing or relating to any Guarantied Obligations, or (iv)
any waiver, renewal, extension, addition, or supplement to, or deletion from, or any other action
or inaction under or in respect of, the Credit Agreement, any of the other Loan Documents, or any
other documents, instruments or agreements relating to the Guarantied Obligations or any other
instrument or agreement referred to therein or evidencing any Guarantied Obligations or any
assignment or transfer of any of the foregoing;

     (b) any lack of validity or enforceability of the Credit Agreement, any of the other Loan
Documents, or any other document, instrument or agreement referred to therein or evidencing any
Guarantied Obligations or any assignment or transfer of any of the foregoing;

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     (c) any furnishing to the Agent, the Lenders or the Swingline Lender of any security for
the Guarantied Obligations, or any sale, exchange, release or surrender of, or realization on, any
collateral securing any of the Obligations;

     (d) any settlement or compromise of any of the Guarantied Obligations, any security therefor,
or any liability of any other party with respect to the Guarantied Obligations, or any
subordination of the payment of the Guarantied Obligations to the payment of any other liability of
the Borrower or any other Loan Party;

     (e) any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to such Guarantor, the Borrower, any other Loan Party
or any other Person, or any action taken with respect to this Guaranty by any trustee or receiver,
or by any court, in any such proceeding;

     (f) any act or failure to act by the Borrower, any other Loan Party or any other Person which
may adversely affect such Guarantor’s subrogation rights, if any, against the Borrower to recover
payments made under this Guaranty;

     (g) any nonperfection or impairment of any security interest or other Lien on any collateral,
if any, securing in any way any of the Obligations;

     (h) any application of sums paid by the Borrower, any other Guarantor or any other Person with
respect to the liabilities of the Borrower to the Agent, the Lenders or the Swingline Lender,
regardless of what liabilities of the Borrower remain unpaid;

     (i) any defect, limitation or insufficiency in the borrowing powers of the Borrower or in the
exercise thereof; or

     (j) any other circumstance which might otherwise constitute a defense available to, or a
discharge of, a Guarantor hereunder (other than indefeasible payment in full).

     Section 4. Action with Respect to Guarantied Obligations. The Lenders and the Agent
may, at any time and from time to time, without the consent of, or notice to, any Guarantor, and
without discharging any Guarantor from its obligations hereunder, take any and all actions
described in Section 3 and may otherwise: (a) amend, modify, alter or supplement the terms of any
of the Guarantied Obligations, including, but not limited to, extending or shortening the time of
payment of any of the Guarantied Obligations or changing the interest rate that may accrue on any
of the Guarantied Obligations; (b) amend, modify, alter or supplement the Credit Agreement or any
other Loan Document; (c) sell, exchange, release or otherwise deal with all, or any part, of any
collateral securing any of the Obligations; (d) release any other Loan Party or other Person liable
in any manner for the payment or collection of the Guarantied Obligations; (e) exercise, or refrain
from exercising, any rights against the Borrower, any other Guarantor or any other Person; and (f)
apply any sum, by whomsoever paid or however realized, to the Guarantied Obligations in such order
as the Lenders shall elect.

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     Section 5. Representations and Warranties. Each Guarantor hereby makes to the Agent,
the Lenders and the Swingline Lender all of the representations and warranties made by the Borrower
with respect to or in any way relating to such Guarantor in the Credit Agreement and the other Loan
Documents, as if the same were set forth herein in full.

     Section 6. Covenants. Each Guarantor will comply with all covenants which the
Borrower is to cause such Guarantor to comply with under the terms of the Credit Agreement or any
of the other Loan Documents.

     Section 7. Waiver. Each Guarantor, to the fullest extent permitted by Applicable
Law, hereby waives notice of acceptance hereof or any presentment, demand, protest or notice of any
kind, and any other act or thing, or omission or delay to do any other act or thing, which in any
manner or to any extent might vary the risk of such Guarantor or which otherwise might operate to
discharge such Guarantor from its obligations hereunder.

     Section 8. Inability to Accelerate Loan. If the Agent, the Swingline Lender and/or
the Lenders are prevented under Applicable Law or otherwise from demanding or accelerating payment
of any of the Guarantied Obligations by reason of any automatic stay or otherwise, the Agent, the
Swingline Lender and/or the Lenders shall be entitled to receive from each Guarantor, upon demand
therefor, the sums which otherwise would have been due had such demand or acceleration occurred.

     Section 9. Reinstatement of Guarantied Obligations. If claim is ever made on the
Agent, any Lender or the Swingline Lender for repayment or recovery of any amount or amounts
received in payment or on account of any of the Guarantied Obligations, and the Agent, such Lender
or the Swingline Lender repays all or part of said amount by reason of (a) any judgment, decree or
order of any court or administrative body of competent jurisdiction, or (b) any settlement or
compromise of any such claim effected by the Agent, such Lender or the Swingline Lender with any
such claimant (including the Borrower or a trustee in bankruptcy for the Borrower), then and in
such event each Guarantor agrees that any such judgment, decree, order, settlement or compromise
shall be binding on it, notwithstanding any revocation hereof or the cancellation of the Credit
Agreement, any of the other Loan Documents, or any other instrument evidencing any liability of the
Borrower, and such Guarantor shall be and remain liable to the Agent, such Lender or the Swingline
Lender for the amounts so repaid or recovered to the same extent as if such amount had never
originally been paid to the Agent, such Lender or the Swingline Lender.

     Section 10. Subrogation. Upon the making by any Guarantor of any payment hereunder
for the account of the Borrower, such Guarantor shall be subrogated to the rights of the payee
against the Borrower; provided, however, that such Guarantor shall not enforce any
right or receive any payment by way of subrogation or otherwise take any action in respect of any
other claim or cause of action such Guarantor may have against the Borrower arising by reason of
any payment or performance by such Guarantor pursuant to this Guaranty, unless and until all of the
Guarantied Obligations have been indefeasibly paid and performed in full. If any amount shall be
paid to such Guarantor on account of or in respect of such subrogation rights or other claims
or causes of action, such Guarantor shall hold such amount in trust for the benefit of the Agent,

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the Lenders and the Swingline Lender and shall forthwith pay such amount to the Agent to be
credited and applied against the Guarantied Obligations, whether matured or unmatured, in
accordance with the terms of the Credit Agreement or to be held by the Agent as collateral security
for any Guarantied Obligations existing.

     Section 11. Payments Free and Clear. All sums payable by each Guarantor hereunder,
whether of principal, interest, Fees, expenses, premiums or otherwise, shall be paid in full,
without set-off or counterclaim or any deduction or withholding whatsoever (including any Taxes),
and if any Guarantor is required by Applicable Law or by a Governmental Authority to make any such
deduction or withholding, such Guarantor shall pay to the Agent, the Lenders and the Swingline
Lender such additional amount as will result in the receipt by the Agent, the Lenders and the
Swingline Lender of the full amount payable hereunder had such deduction or withholding not
occurred or been required.

     Section 12. Set-off. In addition to any rights now or hereafter granted under any of
the other Loan Documents or Applicable Law and not by way of limitation of any such rights, each
Guarantor hereby authorizes the Agent and each Lender, at any time during the continuance of an
Event of Default, without any prior notice to such Guarantor or to any other Person, any such
notice being hereby expressly waived, but in the case of a Lender or Participant subject to receipt
of the prior written consent of the Agent exercised in its sole discretion, to set off and to
appropriate and to apply any and all deposits (general or special, including, but not limited to,
indebtedness evidenced by certificates of deposit, whether matured or unmatured) and any other
indebtedness at any time held or owing by the Agent, such Lender, or any affiliate of the Agent or
such Lender, to or for the credit or the account of such Guarantor against and on account of any of
the Guarantied Obligations, although such obligations shall be contingent or unmatured. Each
Guarantor agrees, to the fullest extent permitted by Applicable Law, that any Participant may
exercise rights of setoff or counterclaim and other rights with respect to its participation as
fully as if such Participant were a direct creditor of such Guarantor in the amount of such
participation.

     Section 13. Subordination. Each Guarantor hereby expressly covenants and agrees for
the benefit of the Agent, the Lenders and the Swingline Lender that all obligations and liabilities
of the Borrower to such Guarantor of whatever description, including without limitation, all
intercompany receivables of such Guarantor from the Borrower (collectively, the “Junior Claims”)
shall be subordinate and junior in right of payment to all Guarantied Obligations. If an Event of
Default exists or will exist, then no Guarantor shall accept any direct or indirect payment (in
cash, property or securities, by setoff or otherwise) from the Borrower on account of or in any
manner in respect of any Junior Claim until all of the Guarantied Obligations have been
indefeasibly paid in full.

     Section 14. Avoidance Provisions. It is the intent of each Guarantor, the Agent, the
Lenders and the Swingline Lender that in any Proceeding, such Guarantor’s maximum obligation
hereunder shall equal, but not exceed, the maximum amount which would not otherwise cause the
obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the
Agent, the Lenders and the Swingline Lender) to be avoidable or unenforceable against such
Guarantor in such Proceeding as a result of Applicable Law, including without limitation,

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(a) Section 548 of the Bankruptcy Code of 1978, as amended (the “Bankruptcy Code”) and (b) any state
fraudulent transfer or fraudulent conveyance act or statute applied in such Proceeding, whether by
virtue of Section 544 of the Bankruptcy Code or otherwise. The Applicable Laws under which the
possible avoidance or unenforceability of the obligations of such Guarantor hereunder (or any other
obligations of such Guarantor to the Agent, the Lenders and the Swingline Lender) shall be
determined in any such Proceeding are referred to as the “Avoidance Provisions”. Accordingly, to
the extent that the obligations of any Guarantor hereunder would otherwise be subject to avoidance
under the Avoidance Provisions, the maximum Guarantied Obligations for which such Guarantor shall
be liable hereunder shall be reduced to that amount which, as of the time any of the Guarantied
Obligations are deemed to have been incurred under the Avoidance Provisions, would not cause the
obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the Agent,
the Lenders and the Swingline Lender), to be subject to avoidance under the Avoidance Provisions.
This Section is intended solely to preserve the rights of the Agent, the Lenders and the Swingline
Lender hereunder to the maximum extent that would not cause the obligations of any Guarantor
hereunder to be subject to avoidance under the Avoidance Provisions, and no Guarantor or any other
Person shall have any right or claim under this Section as against the Agent, the Lenders and the
Swingline Lender that would not otherwise be available to such Person under the Avoidance
Provisions.

     Section 15. Information. Each Guarantor assumes all responsibility for being and
keeping itself informed of the financial condition of the Borrower and the other Guarantors, and of
all other circumstances bearing upon the risk of nonpayment of any of the Guarantied Obligations
and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and
agrees that none of the Agent, the Lenders or the Swingline Lender shall have any duty whatsoever
to advise any Guarantor of information regarding such circumstances or risks.

     Section 16. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE
FULLY PERFORMED, IN SUCH STATE.

     SECTION 17. WAIVER OF JURY TRIAL.

     (a) EACH PARTY HERETO ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN OR AMONG ANY
GUARANTOR, THE AGENT OR ANY OF THE LENDERS WOULD BE BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW
AND FACT AND WOULD RESULT IN DELAY AND EXPENSE TO THE PARTIES. ACCORDINGLY, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, EACH OF THE LENDERS, THE AGENT AND EACH GUARANTOR HEREBY WAIVES ITS
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL
IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF THIS GUARANTY OR
ANY OTHER LOAN DOCUMENT OR BY REASON OF ANY OTHER SUIT, CAUSE OF ACTION OR DISPUTE WHATSOEVER BETWEEN OR
AMONG ANY GUARANTOR, THE AGENT OR

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ANY OF THE LENDERS OF ANY KIND OR NATURE RELATING TO ANY OF THE
LOAN DOCUMENTS.

     (b) EACH OF THE GUARANTORS, THE AGENT AND EACH LENDER HEREBY AGREES THAT THE FEDERAL DISTRICT
COURT OF THE SOUTHERN DISTRICT OF NEW YORK OR ANY STATE COURT LOCATED IN NEW YORK, NEW YORK, SHALL
HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG ANY GUARANTOR, THE
AGENT OR ANY OF THE LENDERS, PERTAINING DIRECTLY OR INDIRECTLY TO THIS GUARANTY, OR ANY OTHER LOAN
DOCUMENT OR TO ANY MATTER ARISING HEREFROM OR THEREFROM. EACH GUARANTOR AND EACH OF THE LENDERS
EXPRESSLY SUBMIT AND CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED
IN SUCH COURTS WITH RESPECT TO SUCH CLAIMS OR DISPUTES. EACH PARTY FURTHER WAIVES ANY OBJECTION
THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT
OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM AND EACH AGREES NOT TO PLEAD
OR CLAIM THE SAME. THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE
THE BRINGING OF ANY ACTION BY THE AGENT OR ANY LENDER OR THE ENFORCEMENT BY THE AGENT OR ANY LENDER
OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE JURISDICTION.

     (c) THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF
COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE
PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN DOCUMENTS AND
THE TERMINATION OF THIS GUARANTY.

     Section 18. Loan Accounts. The Agent, each Lender and the Swingline Lender may
maintain books and accounts setting forth the amounts of principal, interest and other sums paid
and payable with respect to the Guarantied Obligations, and in the case of any dispute relating to
any of the outstanding amount, payment or receipt of any of the Guarantied Obligations or
otherwise, the entries in such books and accounts shall be deemed prima facie evidence of the
amounts and other matters set forth herein. The failure of the Agent, any Lender or the Swingline
Lender to maintain such books and accounts shall not in any way relieve or discharge any Guarantor
of any of its obligations hereunder.

     Section 19. Waiver of Remedies. No delay or failure on the part of the Agent, any
Lender or the Swingline Lender in the exercise of any right or remedy it may have against any
Guarantor hereunder or otherwise shall operate as a waiver thereof, and no single or partial
exercise by the Agent, any Lender or the Swingline Lender of any such right or remedy shall
preclude any other or further exercise thereof or the exercise of any other such right or remedy.

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     Section 20. Termination. This Guaranty shall remain in full force and effect until
indefeasible payment in full of the Guarantied Obligations and the other Obligations and the
termination or cancellation of the Credit Agreement in accordance with its terms.

     Section 21. Successors and Assigns. Each reference herein to the Agent or the
Lenders shall be deemed to include such Person’s respective successors and assigns (including, but
not limited to, any holder of the Guarantied Obligations) in whose favor the provisions of this
Guaranty also shall inure, and each reference herein to each Guarantor shall be deemed to include
such Guarantor’s successors and assigns, upon whom this Guaranty also shall be binding. The
Lenders and the Swingline Lender may, in accordance with the applicable provisions of the Credit
Agreement, assign, transfer or sell any Guarantied Obligation, or grant or sell participations in
any Guarantied Obligations, to any Person without the consent of, or notice to, any Guarantor and
without releasing, discharging or modifying any Guarantor’s obligations hereunder. Each Guarantor
hereby consents to the delivery by the Agent or any Lender to any Assignee or Participant (or any
prospective Assignee or Participant) of any financial or other information regarding the Borrower
or any Guarantor. No Guarantor may assign or transfer its rights or obligations hereunder to any
Person without the prior written consent of all Lenders and any such assignment or other transfer
to which all of the Lenders have not so consented shall be null and void.

     Section 22. JOINT AND SEVERAL OBLIGATIONS. THE OBLIGATIONS OF THE GUARANTORS
HEREUNDER SHALL BE JOINT AND SEVERAL, AND ACCORDINGLY, EACH GUARANTOR CONFIRMS THAT IT IS LIABLE
FOR THE FULL AMOUNT OF THE “GUARANTIED OBLIGATIONS” AND ALL OF THE OBLIGATIONS AND LIABILITIES OF
EACH OF THE OTHER GUARANTORS HEREUNDER.

     Section 23. Amendments. This Guaranty may not be amended except in writing signed by
the Requisite Lenders (or all of the Lenders if required under the terms of the Credit Agreement),
the Agent and each Guarantor.

     Section 24. Payments. All payments to be made by any Guarantor pursuant to this
Guaranty shall be made in Dollars, in immediately available funds to the Agent at the Principal
Office, not later than 2:00 p.m. on the date of demand therefor.

     Section 25. Notices. All notices, requests and other communications hereunder shall
be in writing (including facsimile transmission or similar writing) and shall be given (a) to each
Guarantor at its address set forth below its signature hereto, (b) to the Agent, any Lender or the
Swingline Lender at its respective address for notices provided for in the Credit Agreement, or (c)
as to each such party at such other address as such party shall designate in a written notice to
the other parties. Each such notice, request or other communication shall be effective (i) if
mailed, when received; (ii) if telecopied, when transmitted; or (iii) if hand delivered, when
delivered; provided, however, that any notice of a change of address for notices
shall not be effective until received.

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     Section 26. Severability. In case any provision of this Guaranty shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

     Section 27. Headings. Section headings used in this Guaranty are for convenience
only and shall not affect the construction of this Guaranty.

     Section 28. Trustees, Etc. Not Liable.

     IN THE CASE OF ANY GUARANTOR THAT IS A TRUST, NO TRUSTEE, OFFICER, SHAREHOLDER, EMPLOYEE OR
AGENT OF SUCH GUARANTOR SHALL BE HELD TO ANY PERSONAL LIABILITY, JOINTLY OR SEVERALLY, FOR ANY
OBLIGATION OF, OR CLAIM AGAINST, SUCH GUARANTOR. ALL PERSONS DEALING WITH SUCH GUARANTOR, IN ANY
WAY, SHALL LOOK ONLY TO THE ASSETS OF SUCH GUARANTOR FOR THE PAYMENT OF ANY SUM OR THE PERFORMANCE
OF ANY OBLIGATION OWING BY SUCH GUARANTOR HEREUNDER. THE PROVISIONS OF THIS SECTION SHALL NOT LIMIT
ANY OBLIGATIONS OF ANY LOAN PARTY.

     Section 29. Limitation of Liability.

     Neither the Agent nor any Lender, nor any affiliate, officer, director, employee, attorney, or
agent of the Agent or any Lender, shall have any liability with respect to, and each Guarantor
hereby waives, releases, and agrees not to sue any of them upon, any claim for any special,
indirect, incidental, or consequential damages suffered or incurred by a Guarantor in connection
with, arising out of, or in any way related to, this Guaranty or any of the other Loan Documents,
or any of the transactions contemplated by this Guaranty, the Credit Agreement or any of the other
Loan Documents. Each Guarantor hereby waives, releases, and agrees not to sue the Agent or any
Lender or any of the Agent’s or any Lender’s affiliates, officers, directors, employees, attorneys,
or agents for punitive damages in respect of any claim in connection with, arising out of, or in
any way related to, this Guaranty, the Credit Agreement or any of the other Loan Documents, or any
of the transactions contemplated by Credit Agreement or financed thereby.

     Section 30. Definitions. (a) For the purposes of this Guaranty:

     “Proceeding” means any of the following: (i) a voluntary or involuntary case
concerning any Guarantor shall be commenced under the Bankruptcy Code of 1978, as amended; (ii) a
custodian (as defined in such Bankruptcy Code or any other applicable bankruptcy laws) is appointed
for, or takes charge of, all or any substantial part of the property of any Guarantor; (iii) any
other proceeding under any Applicable Law, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, winding-up or composition for adjustment of debts, whether now or hereafter in
effect, is commenced relating to any Guarantor; (iv) any Guarantor is adjudicated insolvent or
bankrupt; (v) any order of relief or other order approving any such case or proceeding is entered
by a court of competent jurisdiction; (vi) any Guarantor makes a general assignment for the benefit
of creditors; (vii) any Guarantor shall fail to pay, or shall state that it is
unable to pay, or shall be unable to pay, its debts generally as they become due;

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(viii) any Guarantor shall call a meeting of its creditors with a view to arranging a composition or
adjustment of its debts; (ix) any Guarantor shall by any act or failure to act indicate its consent
to, approval of or acquiescence in any of the foregoing; or (x) any corporate action shall be taken
by any Guarantor for the purpose of effecting any of the foregoing.

     (b) Terms not otherwise defined herein are used herein with the respective meanings given them
in the Credit Agreement.

[Signature on Next Page]

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

	 	 	 
	

	 	[GUARANTORS]
	 
	 	 
	

	 	By:                                                             
	

	 	       Name:
	

	 	       Title:
	 
	 	 
	

	 	Address for Notices:
	 
	 	 
	

	 	c/o United Dominion Realty Trust, Inc.
	

	 	1745 Shea Center Drive, Suite 200
	

	 	Littleton, Colorado 80129
	

	 	Attention: Treasurer
	

	 	Telecopy Number: (720) 283-6142
	

	 	Telephone Number: (617) 283-2453

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ANNEX I

FORM OF ACCESSION AGREEMENT

     THIS ACCESSION AGREEMENT dated as of                     ,           , executed and delivered by
                                        , a                      (the “New Guarantor”), in favor of (a) WACHOVIA BANK,
NATIONAL ASSOCIATION, in its capacity as Agent (the “Agent”) for the Lenders under that certain
Amended and Restated Credit Agreement dated as of May 25, 2005 (as amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”), by and among United Dominion
Realty Trust, Inc. (the “Borrower”), the financial institutions party thereto and their assignees
under Section 12.5 thereof (the “Lenders”), the Agent, and the other parties thereto, and (b) the
Lenders and the Swingline Lender.

     WHEREAS, pursuant to the Credit Agreement, the Agent, the Lenders and the Swingline Lender
have agreed to make available to the Borrower certain financial accommodations on the terms and
conditions set forth in the Credit Agreement;

     WHEREAS, the Borrower, the New Guarantor, and the existing Guarantors, though separate legal
entities, are mutually dependent on each other in the conduct of their respective businesses as an
integrated operation and have determined it to be in their mutual best interests to obtain
financing from the Agent, the Lenders and the Swingline Lender through their collective efforts;

     WHEREAS, the New Guarantor acknowledges that it will receive direct and indirect benefits from
the Agent, the Lenders and the Swingline Lender making such financial accommodations available to
the Borrower under the Credit Agreement and, accordingly, the New Guarantor is willing to guarantee
the Borrower’s obligations to the Agent, the Lenders and the Swingline Lender on the terms and
conditions contained herein; and

     WHEREAS, the New Guarantor’s execution and delivery of this Agreement is a condition to the
Agent, the Lenders and the Swingline Lender continuing to make such financial accommodations to the
Borrower.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the New Guarantor, the New Guarantor agrees as follows:

     Section 1. Accession to Guaranty. The New Guarantor hereby agrees that it is a
“Guarantor” under that certain Guaranty dated as of May 25, 2005 (as amended, supplemented,
restated or otherwise modified from time to time, the “Guaranty”), made by each Subsidiary of the
Borrower a party thereto in favor of the Agent, the Lenders and the Swingline Lender and assumes
all obligations of a “Guarantor” thereunder and agrees to be bound thereby, all as if the New
Guarantor had been an original signatory to the Guaranty. Without limiting the generality of the
foregoing, the New Guarantor hereby:

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     (a) irrevocably and unconditionally guarantees the due and punctual payment and performance
when due, whether at stated maturity, by acceleration or otherwise, of all Guarantied Obligations
(as defined in the Guaranty);

     (b) makes to the Agent, the Lenders and the Swingline Lender as of the date hereof each of the
representations and warranties contained in Section 5 of the Guaranty and agrees to be bound by
each of the covenants contained in Section 6 of the Guaranty; and

     (c) consents and agrees to each provision set forth in the Guaranty.

     SECTION 2. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED,
AND TO BE FULLY PERFORMED, IN SUCH STATE.

     Section 3. Definitions. Capitalized terms used herein and not otherwise defined
herein shall have their respective defined meanings given them in the Credit Agreement.

[Signatures on Next Page]

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     IN WITNESS WHEREOF, the New Guarantor has caused this Accession Agreement to be duly executed
and delivered under seal by its duly authorized officers as of the date first written above.

	 	 	 	 	 	 	 	 	 
	 	 	[NEW GUARANTOR]	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	Name:	 	 	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	Title:	 	 	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	c/o United Dominion Realty Trust, Inc.	 	 
	 	 	1745 Shea Center Drive, Suite 200	 	 
	 	 	Littleton, Colorado 80129	 	 
	 	 	Attention: Treasurer	 	 
	 	 	Telecopy Number: (720) 283-6142	 	 
	 	 	Telephone Number: (617) 283-2453	 	 

	 	 	 	 	 	 	 
	Accepted:	 	 
	 
	 	 	 	 	 	 
	WACHOVIA BANK, NATIONAL ASSOCIATION,
  
     as Agent
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	

	 	Name:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Title:	 	 	 	 
	

	 	 	 	 	 	 

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