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Exhibit 10.1
 
FIRST AMENDMENT TO AMENDED AND RESTATED  REVOLVING CREDIT AGREEMENT
 
THIS FIRST AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT (this
"First Amendment") is made as of May 31, 2012 (the "Effective Date"), by and
among ESSEX PORTFOLIO, L.P., a California limited partnership ("Borrower"), the
lenders which are parties hereto (collectively, "Lenders") and PNC BANK,
NATIONAL ASSOCIATION, as administrative agent under the Credit Agreement (in
such capacity, "Administrative Agent") and L/C Issuer.
 
BACKGROUND
 
A.       Administrative Agent, Lenders, and Borrower entered into that certain
Amended and Restated Revolving Credit Agreement, dated as of September 16, 2011
(the "Credit Agreement"), pursuant to which Lenders agreed to make revolving
credit loans to Borrower in an aggregate outstanding amount of up to Four
Hundred Twenty Five Million Dollars ($425,000,000) (the "Credit Line").
 
B.        Borrower has requested that Lenders and Administrative Agent modify
the Credit Agreement to, among other things, (i) increase the Credit Line to the
maximum principal amount of Five Hundred Million Dollars ($500,000,000) (the
"Increased Commitment Amount"), (ii) to extend the Original Maturity Date, and
(iii) to increase the Commitment of certain existing Lenders under the Credit
Agreement (collectively, the "Existing Lenders" and each, an "Existing Lender")
and to add additional Lenders under the Credit Agreement (collectively, the
"Additional Lenders"). The Existing Lenders and the Additional Lenders are
identified on Exhibit A attached hereto. Lenders and Administrative Agent are
willing to make such modifications to the Credit Agreement and to modify certain
other provisions of the Credit Agreement, all on the terms and subject to the
conditions herein set forth.
  
NOW, THEREFORE,  the parties hereto, intending  to be legally  bound hereby,
agree as follows:
 
AGREEMENT

1.           Terms.  Capitalized  terms  used herein  and  not
otherwise  defined herein shall have the meanings given to such terms in the
Credit Agreement.

2.           Amendments  to  Credit
 Agreement.     The Credit Agreement is  hereby amended as follows:
 
(a)           The definition of "Applicable Committed Loan Margin" in Article 1
is hereby amended and restated to read in full as follows:
 
"Applicable  Committed  Loan Margin"  means the Applicable  LIBOR Committed Loan
Margin or the Applicable Reference Rate Committed Margin determined from the
following pricing grid based on the current published or private ratings of
Guarantor's senior unsecured long term debt, as provided below:
 
 
 

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TIER
 
 
 
GUARANTOR'S
SENIOR UNSECURED
LONG TERM DEBT
RATING
 
 
 
APPLICABLE
LIBOR
COMMITTED  LOAN
MARGIN (BPS)
 
 
 
 
FACILITY  FEE
(BPS PER
ANNUM)
APPLICABLE
REFERENCE
RATE
COMMITTED
LOAN
MARGIN
(BPS)
I
BBB+ and/or Baa1 or better
107.5
17.5
7.5
II
BBB and/or Baa2
120
20
20
III
BBB- and/or Baa3
155
25
55
IV
Less than BBB- and/or Baa3
205
25
105

 
Borrower shall provide to Administrative Agent written evidence of the current
rating or ratings on Guarantor's senior unsecured long term debt by any of
Moody's, S&P and/or Fitch, if such rating agency has provided to Guarantor a
rating on such senior unsecured long term debt, which evidence shall be
reasonably acceptable to Administrative Agent; provided, that, at a minimum,
Guarantor must provide such a rating from either Moody's or S&P. In the event
that Guarantor has a rating on its senior unsecured long term debt provided by
(a) both Moody's and S&P, (b) both Moody's and Fitch, (c) both S&P and Fitch, or
(d) each of Moody's, S&P and Fitch, and there is a difference in rating between
such rating agencies, the Applicable Committed Loan Margin shall be based on the
higher rating. Changes in the Applicable Committed Loan Margin shall become
effective on the first day following the date on which any of Moody's, S&P or
Fitch that has provided Guarantor a rating on Guarantor's senior unsecured long
term debt changes such rating. Borrower shall notify Administrative Agent of any
such changes in Guarantor's senior unsecured long term debt pursuant to and in
accordance with Section 6.4(i) On the Effective Date, the Applicable Committed
Loan Margin shall be based on Tier II."
  
(b)           The  definition of  "Capitalization  Rate"  in  Article 1  IS   hereby
amended and restated to read in full as follows:
 
'"'Capitalization Rate" means (i) with respect to the properties which are
located in Core Markets: (A) 6.00% from the Effective Date through the Original
Maturity Date and (ii) 6.50% during the Extension Periods (if exercised) and
(ii) with respect to the properties which are not located in Core Markets: (A)
6.50% from the Effective Date through the Original Maturity Date and (ii) 6.75%
during the Extension Periods (if exercised)."
 
 
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(c)           The definition of "Maximum  Commitment  Amount" in Article 1 is
hereby amended and restated to read in full as follows:

""Maximum Commitment  Amount" means, at any time, an amount equal to Five
Hundred Million Dollars ($500,000,000),  subject to increase  pursuant to, and
on the terms and subject to the conditions set forth in, Section 2.17, and to
decrease pursuant to the provisions of Section 2.7."

              (d)           The definition of "Original  Maturity  Date" in
Article  1 is hereby amended and restated to read in full as follows:
 
"Original Maturity Date" means December 18, 2015."
 
(e)           The defined term "Core  Markets"  is hereby added to Article 1 to
read in full as follows:

"Core  Markets"  shall mean the State of California  and the metropolitan  area
of Seattle, Washington."
 
(f)           Section  2.17.1  of  the
Credit  Agreement  is  hereby  amended  and restated to read in full as follows:
 
""Request for Increase. Subject to the provisions of Section 2.7, on the terms
and subject to the conditions set forth in this Section 2.17, Borrower shall
have (A) a one time right prior to the Original Maturity Date and (B) a one time
right during each of the First Extension Period and the Second Extension Period,
by written notice to Administrative Agent, to request an increase in the Maximum
Commitment Amount by (i) first permitting any Lender to increase its Commitment
(and accordingly increase the Maximum Commitment Amount by such amount), or (ii)
thereafter inviting any Eligible Assignee that has previously been approved by
Administrative Agent in writing to become a Lender under this Agreement and to
provide a commitment to lend hereunder (and accordingly increase the Maximum
Commitment Amount by such amount); provided, however, that in no event shall
such actions cause the Maximum Commitment Amount to increase above
$600,000,000."

                                                   
(g)           Section  8.1(k)  of  the  Credit  Agreement  is  hereby  amended  and
restated to read in full as follows:
 
"Borrower, Guarantor or a subsidiary of Borrower or Guarantor defaults (taking
into account applicable notice and cure periods, if any) in connection with any
credit such Person has with any holder of Indebtedness of such Person, (i) and
such default consists of the failure to make a payment when due on one or more
obligations that are recourse to Borrower, Guarantor or a subsidiary of Borrower
or Guarantor whose outstanding principal amount exceeds $50,000,000 individually
or in the aggregate and such default has not been waived by the holder of such
Indebtedness, or (ii) as result of such default, one or more obligations that
are recourse to Borrower, Guarantor or a subsidiary of Borrower or Guarantor
whose outstanding principal amount exceeds $50,000,000 individually or in the
aggregate have been accelerated; or
 
 
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(h)       Clause (iii) of Section 10.5(b) of the Credit Agreement is hereby
amended and restated to read in full as follows:
 
"(iii)  any  assignment  of  a  Commitment  must  be  approved  by  Administrative
Agent, the L!C Issuer and the Swing Line Lender (which consent will not be
unreasonably withheld or delayed) unless the Person that is the proposed
assignee is itself a Lender or an Affiliate of a Lender (whether or not the
proposed assignee would otherwise qualify as an Eligible Assignee);"
 
(i)        To  give effect to the increase in the Maximum Commitment Amount
hereunder, the joinder of the Additional  Lenders and the changes in the
Commitments of the Existing Lenders, Schedule 1.1 to the Credit Agreement  is
hereby amended and replaced with Schedule 1.1 attached hereto.
 
3.          Loan Documents. Except where the context clearly requires otherwise,
all references to the Credit Agreement in any other Loan Document shall be to
the Credit Agreement as amended by this First Amendment.
 
4.         Borrower's Ratification. Borrower agrees that it has no defenses or
set- offs against Lenders or their respective officers, directors, employees,
agents or attorneys, with respect to the Loan Documents, all of which are in
full force and effect, and that all of the terms and conditions of the Loan
Documents not inconsistent herewith shall remain in full force and effect unless
and until modified or amended in writing in accordance with their terms.
Borrower hereby ratifies and confirms its obligations under the Loan Documents
and agrees that the execution and delivery of this First Amendment does not in
any way diminish or invalidate any of its obligations thereunder.
 
5.         Guarantor  Ratification.    Guarantor  agrees  that it has no
defenses  or set- offs against Lenders or their respective officers, directors,
employees,  agents or attorneys,  with respect to the Guaranty, which is in full
force and effect, and that all of the terms and conditions of the Guaranty not
inconsistent herewith shall remain in full force and effect unless and until
modified or amended in writing in accordance with their terms.  Guarantor hereby
ratifies and confirms  its obligations  under the Guaranty  and agrees that the
execution  and delivery  of this First Amendment does not in any way diminish or
invalidate any of its obligations thereunder.
 
6.         Representations  and Warranties.  Borrower hereby represents and
warrants to Lenders that:
 
(a)          The representations  and warranties made in the Credit Agreement,
as amended by this First Amendment,  are true and correct in all material
respects as of the date hereof;
 
(b)          After giving effect to this First Amendment,  no Default or Event
of Default under the Credit Agreement or the other Loan Documents exists on the
date hereof;

 
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(c)          This  First  Amendment  has  been  duly  authorized,  executed  and
delivered by Borrower so as to constitute the legal, valid and binding
obligations  of Borrower, enforceable in accordance with its terms, except as
the same may be limited by insolvency, bankruptcy,  reorganization  or other
laws  relating to or affecting  the enforcement  of creditors' rights or by
general equitable principles;
 
(d)          The  Joinder Pages to this First Amendment have been duly
authorized, executed and delivered by Guarantor; and
 
(e)          No material adverse change in the business, assets, operations,
condition (financial or otherwise) or prospects of Borrower, Guarantor or any of
their subsidiaries or Affiliates has occurred since the date of the last
financial statements of the afore­ mentioned entities which were delivered to
Administrative Agent.
 
All of the above representations  and warranties  shall survive  the making of
this First Amendment.
 
7.     Conditions Precedent. The effectiveness of the amendments set forth
herein is subject to the fulfillment, to the satisfaction of Administrative
Agent and its counsel, of the following conditions precedent:
 
(a)           Borrower shall have delivered to Administrative Agent the
following, all of which shall be in form and substance satisfactory to
Administrative Agent and shall be duly completed and executed (as applicable):
 
(i)           This First Amendment;
 
(ii)           Replacement Notes and the Additional Notes, as more fully
set forth in Section 8 below;
 
(iii)          If requested by Administrative Agent, evidence that the
execution, delivery and performance by Borrower and Guarantor, as the case may
be, of this First Amendment have been duly authorized, executed and delivered by
Responsible Officers of Borrower and Guarantor, as the case may be; and
 
(iv)         Such additional documents,  certificates  and information  as
Administrative Agent may require pursuant to the terms hereof or otherwise
reasonably request.
 
(b)           The representations and warranties set forth in the Credit
Agreement shall be true and correct in all material respects on and as of the
date hereof.
 
(c)           After giving effect to this First Amendment,  no Default or Event
of Default shall have occurred and be continuing as of the date hereof.
 
(d)          Borrower shall have paid to Administrative Agent, (i) any fees
required to be paid by Borrower to Administrative Agent for its benefit or the
benefit of the Lenders in connection with the Increased Commitment Amount as
agreed to by Borrower and Administrative Agent; and (ii) all other costs and
expenses of Administrative Agent in connection with preparing and negotiating
this First, including, but not limited to, reasonable attorney's fees and costs.
 
 
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8.             Replacement and Additional Notes. Concurrently with the execution
and delivery of this First Amendment, Borrower shall execute and deliver (i) to
each Existing Lender, a replacement Revolving Note in the face amount of the
Increased Commitment of such Existing Lender as set forth on Exhibit A attached
hereto and (ii) to each Additional Lender, a Revolving Note in the face amount
of the Commitment of such Additional Lender as set forth on Exhibit A attached
hereto, in each case in the form of Exhibit G-1 attached to the Credit
Agreement. The replacement Revolving Note to the applicable Existing Lender
shall evidence any outstanding Loans of such Existing Lender and upon receipt
thereof the existing Revolving Note to such Existing Lender shall be cancelled
and returned to Borrower.
 
9.            Joinder by Additional Lenders.  Effective on the Effective Date,
each Additional Lender hereby joins in and becomes a party to the Credit
Agreement with the Commitment set forth opposite its name on Exhibit A attached
hereto, agrees to be bound by the provisions of the Credit Agreement and shall
have the rights and obligations of a Lender thereunder and under any other
document issued in connection therewith. Each Additional Lender hereby makes and
agrees to be bound by all of the terms and conditions set forth in Section
10.5(b) of the Credit Agreement as if it were an assignee of its Commitment
under the provisions of Section 10.5 of the Credit Agreement.
 
10.           Adjusting Payments. As of the Effective Date, Administrative Agent
shall notify each Lender as to the adjusting payments which will be required to
be made to the outstanding Loans of each Lender in order to give effect to the
increase in the Maximum Commitment Amount and the increase to and addition of
the individual Commitments of certain Lenders pursuant to this First Amendment
so that after such adjusting payments are made each Lender's outstanding Loans
evidenced by such Lender's Revolving Note shall be in an amount equal to its Pro
Rata Share of all outstanding Loans. On the Effective Date each Lender agrees to
pay to the other Lenders the amounts, if any, specified by Administrative Agent
in such notice.
 
11.          Miscellaneous.
 
(a)          All  terms,  conditions,  provisions and covenants  in the Loan
Documents  and all other documents delivered to Administrative  Agent in
connection therewith shall remain unaltered and in full force and effect except
as modified or amended hereby. To the extent that any term or provision of this
First Amendment is or may be deemed expressly inconsistent with any term or
provision in any Loan Document or any other executed in connection therewith,
the terms and provisions hereof shall control.

(b)          Except as expressly provided herein, the execution, delivery and
effectiveness of this First Amendment  shall neither operate  as a waiver of any
right, power or remedy of Administrative  Agent or Lenders under any of the Loan
Documents  nor constitute a waiver of any Default or Event of Default
thereunder.

 
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(c)          This  First  Amendment constitutes  the entire agreement of  the
parties with respect to the subject matter hereof and supersedes all prior and
contemporaneous understandings and agreements.
 
(d)          In the event any provisions of this First Amendment shall be held
invalid or unenforceable by any court of competent jurisdiction, such holding
shall not invalidate or render unenforceable any other provision hereof.
 
(e)          This First Amendment shall be governed by and construed according
to the laws of the State of California, without giving effect to any of its
choice of law rules.
 
(f)           This First Amendment shall inure to the benefit of, and be binding
upon, the parties hereto and their respective successors and assigns and may be
executed in one or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.
 
(g)           The headings used in this First Amendment are for convenience of
reference only, do not form a part of this First Amendment  and shall not affect
in any way the meaning or interpretation of this First Amendment.
 

[Signatures commence on the next page]
 
 
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IN WITNESS WHEREOF, Borrower, Administrative Agent and Lenders have caused this
First Amendment to be executed by their duly authorized officers as of the date
first above written.
 
ESSEX PORTFOLIO, L.P.,
 
a California limited partnership
     
BY:           
ESSEX PROPERTY TRUST, INC.,     a Maryland corporation, its general partner    
        By: /s/ Jordan E. Ritter       Jordan E. Ritter       Senior Vice
President  

[Signatures Continue on the Next Page]
 

[Signature Page to First Amendment to Amended and Restated Credit Agreement]

 
 

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PNC BANK, NATIONAL ASSOCIATION,
 
as Administrative Agent
 
 
      By: /s/Nicolas Zitelli    
Nicolas Zitelli, Vice President
 

[Signatures Continue on the Next Page]

 
[Signature Page to First Amendment to Amended and Restated Credit Agreement]

 
 

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PNC BANK, NATIONAL ASSOCIATION,  
as L/C Issuer, Swing Line Lender and Lender
          By:  /s/ Nicolas Zitelli     Nicolas Zitelli, Vice President  

 

 
[Signatures Continue on the Next Page]

 
[Signature Page to First Amendment to Amended and Restated Credit Agreement]
 
 
 

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UNION BANK, N.A.,
  as Lender             By: /s/ Thomas E Little     Thomas E Little     Vice
President  

 

[Signatures Continue  on the Next Page]

 
[Signature  Page to First Amendment to Amended and Restated Credit Agreement]
 
 
 

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COMERICA BANK, a Texas Banking Association
 
as Lender
          By: /s/SAM F. MEEHAN     Name: SAM F. MEEHAN     Title: VICE PRESIDENT
 

 
 
[Signatures Continue on the Next Page]

 
[Signature Page to First Amendment to Amended and Restated Credit Agreement]
 
 
 

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KEYBANK  NATIONAL ASSOCIATION,
 
as Lender
            By: /s/ Jason R.Weaver     Name: Jason R.Weaver     Title: Senior
Vice President  

[Signatures Continue on the Next Page]

 
[Signature Page to First Amendment to Amended and Restated Credit Agreement]
 
 
 

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US BANK, NATIONAL ASSOCIATION,
 
as Lender
            By: /s/ Jeffrey Hoppen     Name: Jeffrey Hoppen     Title: Senior
Vice President  

 

[Signatures Continue on the Next Page]

 
[Signature Page to First Amendment to Amended and Restated Credit Agreement]
 
 
 

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CAPITAL ONE, N.A.
 
(successor by merger to Chevy Chase Bank, F.S.B.) as Lender
          By: /s/Frederick H. Denecke     Name: Frederick H. Denecke     Title:
Vice President  

 

[Signatures Continue on the Next Page]
 
 
[Signature Page to First Amendment to Amended and Restated Credit Agreement]
 
 
 

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BANK OF THE WEST,
 
as Lender
            By: /s/Irina Galiena     Name: Irina Galiena     Title: Vice
President  

[Signatures Continue on the Next Page]
 

[Signature Page to First Amendment  to Amended  and Restated Credit Agreement]
 
 
 

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BANK OF THE WEST,
 
as Lender
            By: /s/Benjamin Amayo     Name: Benjamin Amayo     Title: Vice
President  

 

 

 
[Signatures Continue on the Next Page]

 
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WELLS FARGO BANK, NATIONAL  ASSOCIATION,
 
as Lender
            By: /s/Carl Skanderup     Name: Carl Skanderup     Title: V.P.  

[Signatures Continue on the Next Page]
 
 
[Signature Page to First Amendment to Amended and Restated Credit Agreement]
 
 
 

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BANK OF MONTREAL, as Lender
                By: /s/Lloyd Baron     Name: Lloyd Baron     Title: Vice
President  

 
 
[Signatures Continue on the Next Page]
 
 
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COMPASS BANK, as Lender
                By: /s/ Brian Tueff     Name: Brian Tueff     Title: SVP  

 

[Signatures Continue on the Next Page]

 
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CITIBANK, as Lender
                By: /s/John C. Rowland     Name: John C. Rowland     Title: Vice
President  

 

 
[Signatures Continue on the Next Page]
 
 
[Signature Page to First Amendment to Amended and Restated Credit Agreement]
 
 
 

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HSBC BANK USA, NA, as Lender
                By: /s/Karen Kokame     Name: Karen Kokame     Title: Vice
President  

 
[Signatures Continue on the Next Page]
 
 
[Signature Page to First Amendment to Amended and Restated Credit Agreement]
 
 
 

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JOINDER PAGE
 
Essex Property  Trust, Inc., a Maryland corporation, as the "Guarantor" under
the Credit Agreement hereby joins in the execution of this First Amendment  to
make the affirmations set forth in Section 5 of this First Amendment and to
evidence its agreement  to be bound by the. terms and conditions  of this First
Amendment applicable to it.  The party executing this Joinder Page on behalf of
Guarantor has the requisite power and authority, and has been duly authorized,
to execute this Joinder Page on behalf of Guarantor.

 
ESSEX PROPERTY  TRUST, INC.,
 
a Maryland corporation,  as Guarantor
          By: /s/Jordan E. Ritter     Name: Jordan E. Ritter     Title: Senior
Vice President

 
 
 

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EXHIBIT A TO FIRST AMENDMENT
 
EXISTING LENDERS
 
Existing Lenders
 
Original Commitment
   
Increased Commitment
 
PNC Bank, National Association
  $ 65,000,000     $ 75,000,000  
Bank of West
  $ 40,000,000     $ 40,000,000  
Union Bank, N.A.
  $ 50,000,000     $ 60,000,000  
Wells Fargo, National Association
  $ 50,000,000     $ 60,000,000  
Capital One, N.A.
  $ 30,000,000     $ 30,000,000  
Comerica Bank
  $ 30,000,000     $ 30,000,000  
US Bank, National Association
  $ 50,000,000     $ 60,000,000  
Keybank, N.A.
  $ 40,000,000     $ 40,000,000  
Compass Bank
  $ 30,000,000     $ 30,000,000  
Bank of Montreal
  $ 40,000,000     $ 40,000,000  
TOTAL:
  $ 425.000.000     $ 465 000 000  

 
ADDITIONAL  LENDERS
 

 Additional Lenders   Commitment  
Citibank
  $ 25,000,000  
HSBC Bank USA, N.A.
  $ 10,000,000  

 
 
A-1 

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SCHEDULE 1.1 TO CREDIT AGREEMENT  
LENDERS' NAMES, COMMITMENTS  AND PRO RATA SHARES
 

Lender     Commitment       Pro Rata Share  
PNC Bank, National Association
  $ 75,000,000       15.00 %
Bank of West
  $ 40,000,000       8.00 %
Union Bank, N.A.
  $ 60,000,000       12.00 %
Wells Fargo, National Association
  $ 60,000,000       12.00 %
Capital One, N.A.
  $ 30,000,000       6.00 %
Comerica Bank
  $ 30,000,000       6.00 %
US Bank, National Association
  $ 60,000,000       12.00 %
Keybank, N.A.
  $ 40,000,000       8.00 %
Compass Bank
  $ 30,000,000       6.00 %
Bank of Montreal
  $ 40,000,000       8.00 %
Citibank
  $ 25,000,000       5.00 %
HSBC Bank USA, N.A.
  $ 10,000,000       2.00 %
Total
 
$500!000!000
      100.00 %

 
 
  1.1-1

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