Document:

FY2003 10-K Exhibit 10.36

Exhibit 10.36

NINTH AMENDMENT TO FIRST AMENDED AND RESTATED AGREEMENT

OF LIMITED PARTNERSHIP OF ESSEX PORTFOLIO, L.P.

THIS NINTH AMENDMENT TO FIRST AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP OF ESSEX PORTFOLIO, L.P., AS AMENDED (as
amended, the "Partnership Agreement"), dated as of
January 8, 2004 (this "Amendment"), is executed by Essex
Property Trust, Inc. a Maryland corporation (the
"Company"), as the General Partner and on behalf of the
existing Limited Partners of Essex Portfolio, L.P., a California limited
partnership (the "Partnership"), Belmar Realty
Corporation, a Delaware corporation ("Belmar"), Belrose
Realty Corporation, a Delaware corporation ("Belrose"),
Belport Realty Corporation, a Delaware corporation
("Belport"), and Belshire Realty Corporation, a Delaware
Corporation ("Belshire," and each of Belmar, Belrose,
Belport and Belshire a "Series B Preferred Partner" and
collectively, the "Series B Preferred Partners").
Capitalized terms used herein but not defined herein shall have the definitions
ascribed to such terms in the Partnership Agreement.

W I T N E S S E T H:

WHEREAS, the Partnership and the Series B Preferred Partners
desire to amend certain terms of the Series B Preferred Units (as defined in the
Partnership Agreement) from and after the date hereof;

WHEREAS, the Series B Preferred Units were established by
that certain First Amendment to the First Amended and Restated Agreement of
Limited Partnership of Essex Portfolio, L.P. (the "First
Amendment"), dated as of February 6, 1998 and that certain Second
Amendment to the First Amended and Restated Agreement of Limited Partnership of
Essex Portfolio, L.P. (the "Second Amendment"), dated as
of April 20, 1998; and

WHEREAS, the signatories hereto desire to cause the Articles
Supplementary attached hereto as Exhibit A (the "Articles
Supplementary"; the Partnership Agreement and the Articles
Supplementary, collectively, the "Amended Documents"),
which reclassify the Company's 7.875% Series B Cumulative Redeemable Preferred
Stock as Series B Cumulative Redeemable Preferred Stock (the "Series
B Preferred Stock"), to be filed with the State Department of
Assessments and Taxation of Maryland (the "SDAT"), as
set forth herein.

NOW, THEREFORE, in consideration of the foregoing, of the
mutual promises set forth herein, and of other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound, agree to continue the Partnership and
amend the Amended Documents as follows:

	Partnership Agreement.  The Partnership Agreement
is hereby amended as follows:

	The definition of "Series B Preferred Stock" in
the First Amendment is hereby amended to read as follows: ""Series B
Preferred Stock" shall mean the preferred stock of the General Partner
described in Article FIRST of the Articles Supplementary reclassifying the
General Partner's 7.875% Series B Cumulative Redeemable Preferred Stock as
Series B Cumulative Redeemable Preferred Stock to be filed with the SDAT on or
before January 20, 2004."

1

	The definition of "Series B Preferred Stock" in
Section 1 of Exhibit N to the Partnership Agreement is hereby amended by
deleting the term "7.875%" therein.

	Section 2(F)(i) of Exhibit N to the Partnership Agreement
is hereby amended by deleting the phrase "February 6, 2003" from the
first sentence therein and inserting the phrase "December 31, 2009" in
lieu thereof.

	Section 2(F)(ii) of Exhibit N to the Partnership
Agreement is hereby amended by deleting the first sentence of such Section,
which states: "[e]xcept in connection with a liquidation, dissolution,
winding-up or termination of the Partnership as described under
"Liquidation" above, the Redemption Price of the Series B Preferred
Units (other than the portion thereof consisting of accumulated but unpaid
distributions) will be payable solely out of the sale proceeds of capital stock
of the Company, which will be contributed by the Company to the Partnership as
an additional capital contribution, or out of the sale proceeds of limited
partner interests of the Partnership and no other source."  The following
sentence shall be inserted in lieu of such deleted sentence:  "The
Redemption Price of Series B Preferred Units may be payable from any source of
funds."

	Section 2(F) of Exhibit N to the Partnership Agreement is
hereby amended by adding the following new subsection (vi) thereto:

"(vi)  Notwithstanding any provision herein to the
contrary, so long as any Series B Preferred Units remain outstanding, in the
event of the occurrence of a Covered Transaction (defined below), the
Partnership shall redeem, on the date such Covered Transaction is completed or
occurs, all of the Series B Preferred Units outstanding at the Redemption Price,
payable in cash, if redemption of the Series B Preferred Units was elected in
writing by the holders of not less than a majority of the then outstanding
Series B Preferred Units in accordance with this Section 2(F)(vi).  The
Partnership shall give written notice of a Covered Transaction to each of the
respective holders of record of the Series B Preferred Units, at their
respective addresses as they appear on the transfer records of the Partnership,
not less than thirty (30) days prior to the completion or occurrence of a
Covered Transaction.  Such notice shall not set forth any non-public information
concerning such Covered Transaction.  Each of the holders of record of the
Series B Preferred Units shall have until 5:00 p.m. (PST) on the fifteenth
(15th) day following receipt of such notice from the Partnership, to give the
Partnership notice of such holder's election that the Series B Preferred Units
be redeemed.  Notwithstanding any provision herein to the contrary, with respect
to a Covered Transaction that arises under clause (c) of the definition of
Covered Transaction set forth below, in the event that the Company so fails to
qualify as a real estate investment trust for any reason other than an
affirmative election by the Company not to qualify, (a) the Partnership shall
give notice of the occurrence of a Covered Transaction to each of the holders of
record of the Series B Preferred Units within 15 days of discovery of such
failure to qualify, (b) each of the holders of record of the Series B Preferred
Units shall have until 5:00 p.m. (PST) on the fifteenth (15th) day following
receipt of such notice from the Partnership, to give the Partnership notice of
such holder's election that the Series B Preferred Units be redeemed and (c) if
the holders of not less than a majority of the then outstanding Series B
Preferred Units have elected to have the Series B Preferred Units redeemed, the
Series B Preferred Units shall be redeemed on a date not later than 45 days
following the date of discovery of the Company's failure to qualify.

2

The procedures set forth in Section 2(F)(iii) shall apply
to a redemption pursuant to this Section 2(F)(vi).  On or before the date of
redemption, the Partnership shall give notice of redemption to the respective
holders of record of the Series D Preferred Units, at their respective addresses
as they appear on the transfer records of the Partnership; and, the provisions
of Section 2(F)(v), other than the first sentence thereof, shall apply to such
notice of redemption.

For purposes of this Section 2(F)(vi), the term
"Covered Transaction" shall mean (a) the Company's
completion of a "Rule 13e-3 transaction" (as defined in Rule 13e-3
under the Securities Exchange Act of 1934, as amended (the "Exchange
Act")) in which, as a result of such transaction, the Company's
common stock is no longer registered under Section 12 of the Exchange Act,
except that this clause (a) shall not apply to any involuntary delisting of the
Company's common stock from the New York Stock Exchange or any national
securities exchange (as defined in the Exchange Act), (b) the completion of any
transaction or series of transactions that would result in a Reorganization
Event (defined below) of the Company or the Partnership or (c) the Company's
failure (or election not) to qualify as a real estate investment trust as
defined in Section 856 (or any successor section) of the Internal Revenue Code
of 1986, as amended, except where such failure arises in connection with the
consolidation or merger or other business combination of the Company into any
corporation, trust or entity in which the Company is not the surviving entity
and the surviving entity qualifies as a real estate investment trust.

For purposes of this Section 2(F)(vi), the term
"Reorganization Event" shall mean (x) any sale or other
disposition of all or substantially all of the assets of the Partnership or the
Company, as the case may be, to an entity that is not an Affiliate of the
Company; or (y) any consolidation, amalgamation, merger, business combination,
share exchange, reorganization or similar transaction involving the Partnership
or the Company, as the case may be, pursuant to which the Partners of the
Partnership or the stockholders of the Company, as the case may be, immediately
prior to the consummation of such transaction will own less than a majority of
the equity interests in the entity surviving such transaction; provided,
however, a Reorganization Event shall not include any transaction
contemplated by clauses (x) or (y) of this definition if the surviving entity
has unsecured debt outstanding which is rated at least the lowest credit rating
level established as investment grade by at least two of Standard & Poor's,
Moody's Investor Service and Fitch Ratings (it being understood that as of the
date of this Amendment the lowest investment grade rating of Standard &
Poor's is BBB-, the lowest investment grade rating of Moody's is Baa3 and the
lowest investment grade rating of Fitch Ratings is BBB-) and such rating has
been reaffirmed in light of the contemplated transaction."

	Section 2(G)(i) of Exhibit N to the Partnership Agreement
is hereby amended by deleting the phrase "tenth anniversary of the Issue
Date" from the first and second sentences therein and inserting the phrase
"January 1, 2014" in lieu thereof.

3

	Except as amended by the provisions hereof, the
Partnership Agreement, as previously amended, shall remain in full force and
effect in accordance with its terms; provided, however, that to
the extent there shall be a conflict between the provisions of the Partnership
Agreement and this Amendment, this Amendment shall prevail.  The Partnership
Agreement, as amended hereby, is hereby ratified, confirmed and reaffirmed by
the undersigned for all purposes and in all respects.  All references in any
document to the Partnership Agreement shall mean the Partnership Agreement, an
amended hereby.

	The parties hereto hereby authorize and direct the
Company, and the Company hereby agrees, to file the Articles Supplementary.  The
preferences, conversion and other rights, voting powers, restrictions,
limitations as to dividends and other distributions, qualifications and terms
and conditions of redemption of the Series B Preferred Stock, as set forth in
the Articles Supplementary shall be effective as of January 8, 2004.  The
Articles Supplementary shall be filed with the SDAT as soon as reasonably
practicable and in any event no later than January 20, 2004.

	The Partnership hereby agrees that the obligations of the
Partnership contained in Section 4(d) of that certain Contribution Agreement,
dated as of February 6, 1998, by and among Belair, the Partnership and the
Company (the "First Contribution Agreement") shall be
extended through December 31, 2004.  The Partnership and the Company hereby
agree, through December 31, 2004, upon request of any Series B Partners, to
deliver a certificate to such Series B Partner bringing down the representation
and warranties made by the Partnership and the Company in Paragraph 8(d), (e)
and (f) of the First Contribution Agreement to a date requested by such Series B
Partner to the extent, after due inquiry, the Partnership and the Company can
make such representations and warranties as of such date.  The Partnership and
the Company hereby agree that their respective obligations contained in Section
4(d) and 4(i) of that certain Contribution Agreement, dated as of April 20,
1998, by and among Belair, the Partnership and the Company (the
"Second Contribution Agreement" and together with First
Contribution Agreement the "Contribution Agreements")
shall be extended through December 31, 2004.

	Each of the Series B Preferred Partners makes the
following representations and warranties to the Partnership and the Company as
of the date hereof:

	Such Series B Preferred Partner is duly organized and
validly existing under the laws of the state of its organization and has been
duly authorized by all necessary and appropriate action to enter into this
Amendment and to consummate the transactions contemplated herein and the
individuals executing this Amendment on behalf of such Series B Preferred
Partner have been duly authorized by all necessary and appropriate action on
behalf of such Series B Preferred Partner.  Assuming the due execution and
delivery hereof by the Company and the General Partner, this Amendment is a
valid and binding obligation of such Series B Preferred Partner, enforceable
against such Series B Preferred Partner in accordance with its terms, except
insofar as enforceability may be affected by bankruptcy, insolvency or similar
laws affecting creditor's rights generally and the availability of any
particular equitable remedy.

	Neither the execution nor the delivery of this Amendment
nor the consummation of the transactions contemplated herein nor fulfillment of
or compliance with the terms and conditions hereof (a) conflict with or
will result in a breach of any of the terms, conditions or provisions of
(i) the articles of incorporation, bylaws or other organizational documents
of such Series B Preferred Partner or (ii) any agreement, order, judgment,
decree, arbitration award, statute, regulation or instrument to which such
Series B Preferred Partner is a party or by which it or its assets are bound, or
(b) constitutes or will constitute a breach, violation or default under any
of the foregoing.  No consent or approval, authorization, order, regulation or
qualification of any governmental entity or any other person is required for the
execution and delivery of this Amendment and the consummation of the
transactions contemplated hereby by such Series B Preferred Partner.

4

	The Series B Preferred Partners collectively own all of
the Preference Units issued pursuant to the Contribution Agreements, the First
Amendment and the Second Agreement.

	Each of the Series B Preferred Partners is an
"accredited investor" within the meaning of Regulation D under the
Securities Act and has knowledge and experience in financial and business
matters such that it is capable of evaluating the merits and risks of entering
into this Amendment.  In entering into this Amendment, each of the Series B
Preferred Partners is relying upon the advice of its own personal, legal and tax
advisors with respect to the tax and other aspects of this
Amendment.

	Each of the Partnership and the Company (each an
"Essex Entity") makes the following representations and
warranties to the Series B Preferred Partners as of the date hereof:

	Such Essex Entity is duly organized and validly existing
under the laws of the state of its organization and has been duly authorized by
all necessary and appropriate action to enter into this Amendment and to
consummate the transactions contemplated herein and the individuals executing
this Amendment on behalf of such Essex Entity have been duly authorized by all
necessary and appropriate action on behalf of such Essex Entity.  Assuming the
due execution and delivery hereof by each of the Series B Preferred Partners,
this Amendment is a valid and binding obligation of such Essex Entity,
enforceable against such Essex Entity in accordance with its terms (except, with
respect to the Company, such enforceability is limited to the terms of Sections
1(e) and 1(f) hereof), except insofar as enforceability may be affected by
bankruptcy, insolvency or similar laws affecting creditor's rights generally and
the availability of any particular equitable remedy.

	Neither the execution nor the delivery of this Amendment
nor the consummation of the transactions contemplated herein nor fulfillment of
or compliance with the terms and conditions hereof (a) conflict with or
will result in a breach of any of the terms, conditions or provisions of
(i) the articles of incorporation, bylaws or other organizational documents
of such Essex Entity or (ii) any agreement, order, judgment, decree,
arbitration award, statute, regulation or instrument to which such Essex Entity
is a party or by which it or its assets are bound, or (b) constitutes or
will constitute a breach, violation or default under any of the foregoing.  No
consent or approval, authorization, order, regulation or qualification of any
governmental entity or any other person is required for the execution and
delivery of this Amendment and the consummation of the transactions contemplated
hereby by such Essex Entity.

	The parties agree to cooperate with either other in
effectuating the transactions described herein and agree to execute such further
documents and instruments as may reasonably be required to effectuate the
transactions described herein.

	This Amendment shall be binding upon and shall inure to
the benefit of the parties hereto, their respective legal representatives,
successors and assigns.

	This Amendment may be executed in counterparts, all of
which together shall constitute one agreement binding on all the parties hereto,
notwithstanding that all such parties are not signatories to the original or the
same counterpart.

5

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

GENERAL PARTNER:

ESSEX PROPERTY TRUST, INC.

 

By:________________________

Name:

Title:

 

 

SERIES B PREFERRED PARTNER:

BELMAR REALTY CORPORATION

 

By:________________________

Name:

Title:

 

 

BELROSE REALTY CORPORATION

 

By:________________________

Name:

Title:

 

 

BELPORT REALTY CORPORATION

 

By:________________________

Name:

Title:

 

 

BELSHIRE REALTY CORPORATION

 

By:________________________

Name:

Title:

6

Exhibit A

Form of Articles Supplementary

 

[See attached pages.]FY2003 10-K Exhibit 10.37

Exhibit 10.37

TENTH AMENDMENT TO FIRST AMENDED AND RESTATED AGREEMENT

OF LIMITED PARTNERSHIP OF ESSEX PORTFOLIO, L.P.

THIS TENTH AMENDMENT TO FIRST AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP OF ESSEX PORTFOLIO, L.P., AS AMENDED (as
amended, the "Partnership Agreement"), dated as of
January 8, 2004 (this "Amendment"), is executed by Essex
Property Trust, Inc. a Maryland corporation (the
"Company"), as the General Partner and on behalf of the
existing Limited Partners of Essex Portfolio, L.P. (the
"Partnership"), a California limited partnership, and
Belmar Realty Corporation, a Delaware corporation
("Belmar" and the "Series D Preferred
Partner").  Capitalized terms used herein but not defined herein
shall have the definitions ascribed to such terms in the Partnership Agreement.

W I T N E S S E T H:

WHEREAS, the Partnership and the Series D Preferred Partner
desire to (i) amend the terms of the Series D Preferred Units (as defined in the
Partnership Agreement) to provide that, from and after July 28, 2004, the Series
D Priority Return that accrues on such Series D Preferred Units shall accrue at
the rate per annum of 7.875%, and (ii) amend certain other terms from and after
the date hereof;

WHEREAS, the Series D Preferred Units were established by
that certain Fourth Amendment to the First Amended and Restated Agreement of
Limited Partnership of Essex Portfolio, L.P. (the "Fourth
Amendment"), dated as of July 28, 1999; and

WHEREAS, the signatories hereto desire to cause the Articles
Supplementary attached hereto as Exhibit A (the "Articles
Supplementary"; the Partnership Agreement and the Articles
Supplementary, collectively, the "Amended Documents"),
which reclassify the Company's 9.30% Series D Cumulative Redeemable Preferred
Stock as Series D Cumulative Redeemable Preferred Stock (the "Series
D Preferred Stock"), to be filed with the State Department of
Assessments and Taxation of Maryland (the "SDAT"), as
set forth herein.

NOW, THEREFORE, in consideration of the foregoing, of the
mutual promises set forth herein, and of other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound, agree to continue the Partnership and
amend the Amended Documents as follows:

	Partnership Agreement.  The Partnership Agreement
is hereby amended as follows:

	The definition of "Series D Preferred Stock" in
the Fourth Amendment is hereby amended to read as follows: ""Series D
Preferred Stock" shall mean the preferred stock of the General Partner
described in Article FIRST of the Articles Supplementary reclassifying the
General Partner's 9.30% Series D Cumulative Redeemable Preferred Stock as Series
D Cumulative Redeemable Preferred Stock to be filed with the SDAT on or before
January 20, 2004."

	The definition of "Series D Preferred Units" in
the Fourth Amendment is hereby amended by deleting the term "9.30%"
therein.

1

	Exhibit A to the Partnership Agreement is hereby amended
by deleting the term "9.30%" therein.

	The definition of "Priority Return" in Section
1 of Exhibit P to the Partnership Agreement is hereby amended by deleting the
term "9.30%" therein and inserting the term "7.875%" in lieu
thereof, which amendments shall be effective on and after July 28, 2004.

	The definition of "Series D Preferred Stock" in
Section 1 of Exhibit P to the Partnership Agreement is hereby amended by
deleting the term "9.30%" therein.

	Section 2(C) of Exhibit P to the Partnership Agreement is
hereby amended by deleting the term "9.30%" therein and inserting the
term "7.875%" in lieu thereof, which amendment shall be effective on
and after July 28, 2004; and, Section 2(C)(i) of Exhibit P to the Partnership
Agreement is hereby amended by adding the following new sentence to the end of
such Section 2(C)(i): "For the distribution payment for the quarterly
period ending August 15, 2004, which payment shall be calculated on the basis of
a ninety (90) day period, seventy-two (72) days of such period shall be payable
at the rate per annum of 9.30% and eighteen (18) days of such period shall be
payable at the rate per annum of 7.875%."

	Section 2(F)(i) of Exhibit P to the Partnership Agreement
is hereby amended by deleting the phrase "July 28, 2004" from the
first sentence therein and inserting the phrase "July 28, 2010" in
lieu thereof.

	Section 2(F)(ii) of Exhibit P of the Partnership
Agreement is hereby amended by deleting the first sentence of such Section,
which states: "[e]xcept in connection with a liquidation, dissolution,
winding-up or termination of the Partnership as described under
"Liquidation" above, the Redemption Price of the Series D Preferred
Units (other than the portion thereof consisting of accumulated but unpaid
distributions) will be payable solely out of the sale proceeds of capital stock
of the Company, which will be contributed by the Company to the Partnership as
an additional capital contribution, or out of the sale proceeds of limited
partner interests of the Partnership and no other source."  The following
sentence shall be inserted in lieu of such deleted sentence:  "The
Redemption Price of Series D Preferred Units may be payable from any source of
funds."

	Section 2(F) of Exhibit P to the Partnership Agreement is
hereby amended by adding the following new subsection (vi) thereto:

2

""(vi)  Notwithstanding any provision herein to the
contrary, so long as any Series D Preferred Units remain outstanding, in the
event of the occurrence of a Covered Transaction (defined below), the
Partnership shall redeem, on the date such Covered Transaction is completed or
occurs, all of the Series D Preferred Units outstanding at the Redemption Price,
payable in cash, if redemption of the Series D Preferred Units was elected in
writing by the holders of not less than a majority of the then outstanding
Series D Preferred Units in accordance with this Section 2(F)(vi).  The
Partnership shall give written notice of a Covered Transaction to each of the
respective holders of record of the Series D Preferred Units, at their
respective addresses as they appear on the transfer records of the Partnership,
not less than thirty (30) days prior to the completion or occurrence of a
Covered Transaction.  Such notice shall not set forth any non-public information
concerning such Covered Transaction.  Each of the holders of record of the
Series D Preferred Units shall have until 5:00 p.m. (PST) on the fifteenth
(15th) day following receipt of such notice from the Partnership, to give the
Partnership notice of such holder's election that the Series D Preferred Units
be redeemed.  Notwithstanding any provision herein to the contrary, with respect
to a Covered Transaction that arises under clause (c) of the definition of
Covered Transaction set forth below, in the event that the Company so fails to
qualify as a real estate investment trust for any reason other than an
affirmative election by the Company not to qualify, (a) the Partnership shall
give notice of the occurrence of a Covered Transaction to each of the holders of
record of the Series D Preferred Units within 15 days of discovery of such
failure to qualify, (b) each of the holders of record of the Series D Preferred
Units shall have until 5:00 p.m. (PST) on the fifteenth (15th) day following
receipt of such notice from the Partnership, to give the Partnership notice of
such holder's election that the Series D Preferred Units be redeemed and (c) if
the holders of not less than a majority of the then outstanding Series D
Preferred Units have elected to have the Series D Preferred Units redeemed, the
Series D Preferred Units shall be redeemed on a date not later than 45 days
following the date of discovery of the Company's failure to qualify.

The procedures set forth in Section 2(F)(iii) shall apply to
a redemption pursuant to this Section 2(F)(vi).  On or before the date of
redemption, the Partnership shall give notice of redemption to the respective
holders of record of the Series D Preferred Units, at their respective addresses
as they appear on the transfer records of the Partnership; and, the provisions
of Section 2(F)(v), other than the first sentence thereof, shall apply to such
notice of redemption.

For purposes of this Section 2(F)(vi), the term
"Covered Transaction" shall mean (a) the Company's
completion of a "Rule 13e-3 transaction" (as defined in Rule 13e-3
under the Securities Exchange Act of 1934, as amended (the "Exchange
Act")) in which, as a result of such transaction, the Company's
common stock is no longer registered under Section 12 of the Exchange Act,
except that this clause (a) shall not apply to any involuntary delisting of the
Company's common stock from the New York Stock Exchange or any national
securities exchange (as defined in the Exchange Act), (b) the completion of any
transaction or series of transactions that would result in a Reorganization
Event (defined below) of the Company or the Partnership or (c) the Company's
failure (or election not) to qualify as a real estate investment trust as
defined in Section 856 (or any successor section) of the Internal Revenue Code
of 1986, as amended, except where such failure arises in connection with the
consolidation or merger or other business combination of the Company into any
corporation, trust or entity in which the Company is not the surviving entity
and the surviving entity qualifies as a real estate investment trust.

For purposes of this Section 2(F)(vi), the term
"Reorganization Event" shall mean (x) any sale or other
disposition of all or substantially all of the assets of the Partnership or the
Company, as the case may be, to an entity that is not an Affiliate of the
Company; or (y) any consolidation, amalgamation, merger, business combination,
share exchange, reorganization or similar transaction involving the Partnership
or the Company, as the case may be, pursuant to which the Partners of the
Partnership or the stockholders of the Company, as the case may be, immediately
prior to the consummation of such transaction will own less than a majority of
the equity interests in the entity surviving such transaction; provided,
however, a Reorganization Event shall not include any transaction
contemplated by clauses (x) or (y) of this definition if the surviving entity
has unsecured debt outstanding which is rated at least the lowest credit rating
level established as investment grade by at least two of Standard & Poor's,
Moody's Investor Service and Fitch Ratings (it being understood that as of the
date of this Amendment the lowest investment grade rating of Standard &
Poor's is BBB-, the lowest investment grade rating of Moody's is Baa3 and the
lowest investment grade rating of Fitch Ratings is BBB-) and such rating has
been reaffirmed in light of the contemplated transaction."

3

	Section 2(G)(i) of Exhibit P to the Partnership Agreement
is hereby amended by deleting the phrase "tenth anniversary of the Issue
Date" from the first and second sentences therein and inserting the phrase
"January 1, 2014" in lieu thereof.

	Except as amended by the provisions hereof, the
Partnership Agreement, as previously amended, shall remain in full force and
effect in accordance with its terms; provided, however, that to
the extent there shall be a conflict between the provisions of the Partnership
Agreement and this Amendment, this Amendment shall prevail.  The Partnership
Agreement, as amended hereby, is hereby ratified, confirmed and reaffirmed by
the undersigned for all purposes and in all respects.  All references in any
document to the Partnership Agreement shall mean the Partnership Agreement, an
amended hereby.

	The parties hereto hereby authorize and direct the
Company, and the Company hereby agrees, to file the Articles Supplementary.  The
preferences, conversion and other rights, voting powers, restrictions,
limitations as to dividends and other distributions, qualifications and terms
and conditions of redemption of the Series D Preferred Stock, as set forth in
the Articles Supplementary shall be effective as of January 8, 2004.  The
Articles Supplementary shall be filed with the SDAT as soon as reasonably
practicable and in any event no later than January 20, 2004.

	The Partnership hereby agrees that the obligations of the
Partnership contained in Section 4(d) and Section 4(i) of that certain
Contribution Agreement, dated as of July 28, 1999, by and among Belcrest,
Belair, the Partnership and the Company shall be extended through December 31,
2004.

	As soon as reasonably practicable following the execution
of this Amendment by the Series D Partners, such Series D Partners shall return
all of the certificates representing outstanding Series D Preferred Units to the
Partnership.  As soon as reasonably practicable following the receipt by the
Partnership of such certificates, the Partnership shall reissue such
certificates to reflect the terms of Series D Preferred Units, as amended
hereby.

	The Series D Preferred Partner makes the following
representations and warranties to the Partnership and the Company as of the date
hereof:

	Such Series D Preferred Partner is duly organized
and validly existing under the laws of the state of its organization and has
been duly authorized by all necessary and appropriate action to enter into this
Amendment and to consummate the transactions contemplated herein and the
individuals executing this Amendment on behalf of such Series D Preferred
Partner have been duly authorized by all necessary and appropriate action on
behalf of such Series D Preferred Partner.  Assuming the due execution and
delivery hereof by the Company and the General Partner, this Amendment is a
valid and binding obligation of such Series D Preferred Partner,
enforceable against such Series D Preferred Partner in accordance with its
terms, except insofar as enforceability may be affected by bankruptcy,
insolvency or similar laws affecting creditor's rights generally and the
availability of any particular equitable remedy.

4

	Neither the execution nor the delivery of this Amendment
nor the consummation of the transactions contemplated herein nor fulfillment of
or compliance with the terms and conditions hereof (a) conflict with or
will result in a breach of any of the terms, conditions or provisions of
(i) the articles of incorporation, bylaws or other organizational documents
of such Series D Preferred Partner or (ii) any agreement, order,
judgment, decree, arbitration award, statute, regulation or instrument to which
such Series D Preferred Partner is a party or by which it or its assets are
bound, or (b) constitutes or will constitute a breach, violation or default
under any of the foregoing.  No consent or approval, authorization, order,
regulation or qualification of any governmental entity or any other person is
required for the execution and delivery of this Amendment and the consummation
of the transactions contemplated hereby by such Series D Preferred
Partner.

	The Series D Preferred Partner collectively owns all
of the Preference Units issued pursuant to the Contribution Agreement and the
Fourth Amendment.

	The Series D Preferred Partner is an "accredited
investor" within the meaning of Regulation D under the Securities Act and
has knowledge and experience in financial and business matters such that it is
capable of evaluating the merits and risks of entering into this Amendment.  In
entering into this Amendment, the Series D Preferred Partner is relying upon the
advice of its own personal, legal and tax advisors with respect to the tax and
other aspects of this Amendment.

	Each of the Partnership and the Company (each an
"Essex Entity") makes the following representations and
warranties to the Series D Preferred Partner as of the date hereof:

	Such Essex Entity is duly organized and validly existing
under the laws of the state of its organization and has been duly authorized by
all necessary and appropriate action to enter into this Amendment and to
consummate the transactions contemplated herein and the individuals executing
this Amendment on behalf of such Essex Entity have been duly authorized by all
necessary and appropriate action on behalf of such Essex Entity.  Assuming the
due execution and delivery hereof by the Series D Preferred Partner, this
Amendment is a valid and binding obligation of such Essex Entity, enforceable
against such Essex Entity in accordance with its terms (except, with respect to
the Company, such enforceability is limited to the terms of Sections 1(i) and
1(j) hereof), except insofar as enforceability may be affected by bankruptcy,
insolvency or similar laws affecting creditor's rights generally and the
availability of any particular equitable remedy.

	Neither the execution nor the delivery of this Amendment
nor the consummation of the transactions contemplated herein nor fulfillment of
or compliance with the terms and conditions hereof (a) conflict with or
will result in a breach of any of the terms, conditions or provisions of
(i) the articles of incorporation, bylaws or other organizational documents
of such Essex Entity or (ii) any agreement, order, judgment, decree,
arbitration award, statute, regulation or instrument to which such Essex Entity
is a party or by which it or its assets are bound, or (b) constitutes or
will constitute a breach, violation or default under any of the foregoing.  No
consent or approval, authorization, order, regulation or qualification of any
governmental entity or any other person is required for the execution and
delivery of this Amendment and the consummation of the transactions contemplated
hereby by such Essex Entity.

	The parties agree to cooperate with either other in
effectuating the transactions described herein and agree to execute such further
documents and instruments as may reasonably be required to effectuate the
transactions described herein.

5

	This Amendment shall be binding upon and shall inure to
the benefit of the parties hereto, their respective legal representatives,
successors and assigns.

	This Amendment may be executed in counterparts, all of
which together shall constitute one agreement binding on all the parties hereto,
notwithstanding that all such parties are not signatories to the original or the
same counterpart.

6

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

GENERAL PARTNER:

ESSEX PROPERTY TRUST, INC.

 

By:________________________

Name:

Title:

 

 

SERIES D PREFERRED PARTNER:

BELMAR REALTY CORPORATION

 

By:________________________

Name:

Title:

7

Exhibit A

Form of Articles Supplementary

 

[See attached pages.]

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