Document:

exhibit106.htm

 

EXHIBIT 10.6

 

EXCLUSIVE SONGWRITER AGREEMENT

THIS EXCLUSIVE SONGWRITER AGREEMENT (the “Agreement”) is made and entered into this 16th day of June, 2012 by and between Astika Music Entertainment, Inc., whose address is 7000 W. Palmetto Park Road, Suite 409, Boca Raton, Florida 33433 (“Publisher”), and Eugene B. Settler whose address is 4605 S. Ocean Blvd., Apt. 4-C, Highland Beach, Florida 33487 (“Writer”).

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties do hereby agree as follows:

1.        Employment.  Publisher hereby employs Writer to render his services as a songwriter and composer and otherwise as may be hereinafter set forth. Writer hereby accepts such employment and agrees to render such services exclusively for Publisher during the term hereof, upon the terms and conditions set forth herein.

2.        Term. The term of this Agreement shall commence upon the date hereof and shall continue until June 16, 2017.

3.        Grant of Rights. Writer hereby irrevocably and absolutely assigns, transfers, sets over, and grants to Publisher, its successors, and assigns each and every and all rights and interests of every kind, nature and description in and to the results and proceeds of Writer’s services hereunder on or after the date of this Agreement, including, but not limited to the titles, words, and music of any and all original arrangements of musical compositions in the public domain in any and all licenses relating thereto, together with all
worldwide copyrights and renewals and extensions thereof, which musical works have been written, composed, created, or conceived, in whole or in part, by Writer alone or in collaboration with another or others, and which are now owned or controlled, directly or indirectly, by Writer, alone or with others, or as the employer or transferee, directly or indirectly, of the writers or composition, and all worldwide copyrights and renewals and extensions thereof, all of which Writer does hereby represent are and shall at all times be Publisher’s sole and exclusive property as the owner thereof free from any adverse claims or rights therein by any other person, firm or corporation. Attached hereto as Exhibit A is a list of musical compositions written and made a part of this Agreement, which are subject to the grant of
rights hereunder to Publisher.

 

Writer acknowledges that, included within the rights and interests hereinabove referred to, but without limiting the generality of the foregoing, is Writer’s irrevocable grant to Publisher, its successors, licensees, sublicensees and assigns, of the sole and exclusive right, license, privilege, and authority throughout the entire world with respect to the said original musical compositions and original arrangements of compositions under the public domain, whether now in existence or hereafter created during the term hereof as follows:

 

(a)           To perform said musical compositions publicly, whether for profit or otherwise, by means of public or private performance, radio broadcasting, television, or any and all means, whether now known or which may hereafter come into existence;

 

(b)           To substitute a new title or titles for said compositions or any of them and to make any arrangement, adaptation, translation, dramatization or transportation of said compositions or any of them, in whole or part, and in connection with any other literary, musical or dramatic material, and to add new lyrics to the music of any said compositions or new music to the lyrics of any of said compositions, all as Publisher may deem expedient or desirable; provided, however, anything to the contrary not withstanding, nothing contained herein shall be construed to allow Publisher to make any changes in Writer's recorded performances. In the event Publisher is directly involved in the printing of sheet
music containing Writer’s musical compositions Publisher agrees to make all reasonable effort to produce a reproduction of Writer’s original recording of such composition as accurately as possible;

 

 

 

 

  

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(c)           To secure copyright registration and protection of said compositions in Publisher’s name or otherwise as Publisher may desire at Publisher’s own cost and expense and at Publisher’s election, including any and all renewals and extensions of copyrights, and to have and hold said copyrights, renewals, extensions and all rights of whatsoever nature thereunder existing, for and during the full term of all said copyrights and all renewals and extensions thereof;

(d)           To make or cause to be made, and to license others to make, master records, transcriptions, sound tracks, pressings, and any other mechanical, electrical or other productions of said compositions, in whole or part, in such form or manner and as frequently as Publisher’s sole and uncontrolled discretion shall determine, including the right to synchronize the same with sound motion pictures, and the right to manufacture, advertise, license or sell such reproductions for any and all purposes, including, without limitation, private performances and public performances, radio broadcasts,
television, sound motion pictures, wired radio or cable television, phonograph records and any and all other means or devices whether now known or which may hereafter come into existence;

(e)           To print, publish and sell, and to license others to print, publish and sell, sheet music, orchestrations, arrangements and other editions of the said compositions in all forms, including, without limitation, the inclusion of any or all of said compositions in song folios, song books, mixed or lyric magazines with or without music; and

(f)           Any and all other rights of every and any nature now or hereafter existing under any by virtue of any common law rights and copyrights and renewals and extensions thereof in any and all such compositions. Writer grants Publisher, without any compensation other than specified herein, the perpetual right to use and publish and to permit others to use and publish Writer's name (including any professional name heretofore or hereafter adopted by Writer), Writer’s photograph or any other likeness, which shall be approved by Writer’s logos and trademarks whether now in existence or created during the term hereof and biographical material
concerning Writer, and the titles of any and all of the compositions hereunder, in connection with the printing, sale, advertising, performance, distribution and other exploitation of the compositions hereunder, and for any other purpose related to the music business of Publisher, its affiliated and related companies, or the refrain therefrom. This right shall be exclusive during the term hereof and nonexclusive thereafter. Writer grants Publisher the right to refer to Writer as Publisher’s “Exclusive Songwriter and Composer” or any other similar appropriate appellation, during the term hereof.

4.           Warranties, Representations, Covenants and Agreements.  Writer hereby warrants, represents, covenants and agrees as follows: Writer had the full right, power and authority to enter into and perform this Agreement and to grant to and vest in Publisher all the rights herein set forth, free and clear of any and all claims, rights and obligations whatsoever; all of the compositions and all other results and proceeds of the services of the Writer
hereunder, including all the titles, lyrics and music of the musical compositions, and each and every part therefor, delivered and to be delivered by Writer hereunder are and shall be new and original and capable of copyright protections throughout the entire world; no musical composition hereunder nor any part thereof shall be an imitation or copy of, or shall infringe upon any other material of, shall violate or infringe upon any common law or statutory rights of any part including without limitation, contractual rights and copyrights and rights of privacy, and Writer has not sold, assigned, leased, licensed or in any way disposed of or encumbered any composition or rights herein granted to Publisher, nor shall Writer sell, assign, lease, license or in any other way dispose of or encumber any of the compositions or said rights.

5.            Power of Attorney.  Writer does hereby irrevocably constitute, authorize, empower and appoint Publisher, or any of its officers, Writer’s true and lawful attorney (with full power of substitution and delegation), in Writer’s name, and in Writer’s place and stead, or in Publisher’s name, and to take and do such action, and to make, sign, execute, acknowledge and
deliver all instruments or document, which Publisher, or its successors, assigns and licenses, all of the rights or interests granted by Writer hereunder, including, without limitation, such documents as Publisher may deem desirable or necessary to secure to Publisher, or its successors, assigns and licensees, the worldwide copyrights for all compositions hereunder for the entire term of copyright and for any and all renewals and extensions.

 

 

 

 

  

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6.            Compensation.  Provided the Writer shall faithfully and completely perform the terms, covenants and conditions of this Agreement, Publisher hereby agrees to pay Writer for the services to be rendered by Writer under this Agreement, and for the rights acquired hereunder, the following compensation based on the musical compositions which are the subject hereof:

(a)           Ten percent (10%) of the wholesale selling price per copy for each piano copy and dance orchestration printed, published and sold in the United States and Canada by Publisher, or its licensees, for which payment has been received by Publisher, after deduction of retums.

(b)           Twelve and one-half (12 1/2%) of the wholesale selling price upon each printed copy of each other arrangement and edition printed, published and sold in the United States and Canada by Publisher or its licensees, for which payment has been received by Publisher, after the deduction of returns, except that in the event that any compositions shall be used or caused to be used, in whole or part, in conjunction with one or more musical composition in a folio, album or any other publication. Writer shall be entitled to receive that proportion of said twelve and one-half percent (12 1/2%), which the subject
compositions shall bear to the total number of musical compositions contained in each folio, album, or publication.

 

 

(c)           Fifty percent (50%) of any and all net sums actually received (less any costs for collection) by Publisher in the United States or Canada from the exploitation in the United States or Canada by the licensees of Publisher of mechanical rights, electrical transcription and reproduction rights, motion picture and television synchronization rights and all other rights (excepting printing rights and public performing rights) therein, whether or not such licensees are affiliated with, owned in whole or part by, or controlled by Publisher.

(d)           Writer shall receive his public performance royalties throughout the world directly from the performing rights society to which he is affiliated (i.e., American Society of Composers, Authors and Publishers, Broadcast Music Inc.) and shall have no claim whatsoever against Publisher for any royalties received by Publisher from any performing rights society which makes payments directly or indirectly (other than through the Publisher) to writers, authors and composers.

(e)           Fifty percent (50%) of any and all net sums, after deduction of foreign taxes, actually received (less any costs for collection) by Publisher in countries outside the United States and Canada from sales, licenses and other uses of the subject musical compositions in countries outside the United States and Canada (other than public performance royalties as herein mentioned in subsection (d) above) from collection agents, licensees, subpublishers or others, whether or not same are affiliated with, owned in whole or part by, or controlled by Publisher.

(f)           Publisher shall not be required to pay any royalties on professional or complimentary copies or any copies musical derivatives which are distributed gratuitously to performing artists, orchestra leaders and disc jockeys or for advertising, promotional or exploitation purposes. Furthermore, no royalties shall be payable to Writer of consigned copies unless paid for, and not until such time as an accounting therefor can be properly made.

(g)           Royalties as hereinabove specified shall be payable solely to Writer in instances where Writer is the sole author of the entire composition, including the words and music thereof. However, in the event that one or more other songwriters are authors together with Writer on any composition (including songwriters employed by Publisher to add, change, or translate the words or to revise or change the music), the foregoing royalties shall be divided equally between Writer and the other songwriters unless another division of royalties is agreed upon in writing between the parties concerned and such
written agreement is submitted to Publisher prior to payment.

 

 

 

 

  

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(h)           Except as herein expressly provided, no other royalties or monies shall be paid to Writer.

7.            Accounting.  Publisher shall compute the total composite royalties earned by Writer pursuant to this Agreement and pursuant to any other agreement between Writer and Publisher, whether now in existence or entered into at any time subsequent hereto, on or before September 30th for the semi-annual period ending the preceding June 30th, and on or before March 31st for the semi-annual period ending the preceding December 31st, and shall thereupon
submit to Writer the royalty statement for each period together with the net amount of such royalties, if any, as shall be payable after deducting any and all unrecouped advances and chargeable costs under this Agreement or any other agreement between Writer and Publisher. Upon the submission of each statement, Publisher shall have the right to retain, with respect to print sales as a reserve against subsequent charges, credits or returns, such portion of payable royalties as shall be necessary and appropriate in its best business judgment. All statements rendered by Publisher to Writer shall be binding upon Writer and not subject to any objection by Writer for any reason unless specific written objection, stating the basis thereof, is submitted by Writer to Publisher within one (1) year from the date rendered. Writer or a certified public accountant in his behalf may, at Writer’s
expense, and at reasonable intervals, examine Publisher’s books relating to activities during the accounting period for said statement.

8.           Actions. Publisher may take such action as it deems necessary, either in Writer’s name or in its own name, against any person to protect all rights and interests acquired by Publisher hereunder.  Writer will, at Publisher’s request, cooperate fully with Publisher in any controversy which may arise or litigation which may be brought concerning Publisher’s rights and interests
obtained hereunder. Publisher shall have the right to, in its absolute discretion, to employ attorneys and to institute or defend any action or proceeding and to take any other proper steps to protect the right, title and interest of Publisher in and to each musical composition hereunder and every portion thereof and in that connection, to settle, compromise or in any other manner dispose of any matter, claim, action or proceeding and to satisfy any judgment that may be rendered, in action brought by Publisher against any alleged infringer of any musical composition shall be initiated and prosecuted as a result thereof after deduction of the expense of

litigation, including but not limited to attorney’s fees and court cost, a sum equal to fifty percent (50%) of such net proceeds shall be paid to Writer.  Writer agrees to and does hereby indemnify, save and hold Publisher harmless from any and all loss connected with any claim by a third party which is inconsistent with any in this Agreement, and Writer agrees to reimburse Publisher, on demand, respect to any liability or claim to which the foregoing indemnity applies. Pending the determination of any such claim, Publisher may withhold payment of royalties or other monies hereunder.

9.           Collaboration and Separate Agreements.

(a)           Whenever Writer shall collaborate with any other person in the creation of any musical composition, and such musical composition shall be subject to the terms and conditions of this Agreement, and Writer warrants, represents and agrees that prior to the collaboration with any other person, such other person shall be advised of this exclusive agreement and advised that all such composition must be published and owned by Publisher.  In the event of such collaboration with any other person, Writer shall cause such other person to execute a separate songwriter’s agreement with respect
thereto, which agreement shall set forth the division of the songwriter’s share of income between Writer and such other person, and Publisher shall make payment accordingly.

 

 

 

 

  

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(b)           If Publisher so desires, Publisher may request Writer to execute a separate agreement in Publisher's customary form with respect to each musical composition hereunder. Upon such request, Writer shall promptly execute and deliver such separate agreement. Publisher shall have the right, pursuant to the terms and conditions hereof, to execute such separate agreement on behalf of the Writer hereunder.  Such separate agreement shall supplement and not supersede this Agreement. In the event of any conflict between the provisions of such separate agreement and this Agreement, the provisions of this
Agreement shall govern. The failure of either of the parties hereto to execute such separate agreement, whether requested by Publisher or not, shall not affect the rights of Publisher to all the musical compositions written and composed by Writer.

10.           Writer’s Services.  Writer agrees to perform the services required hereunder conscientiously and solely and exclusively for and as requested by Publisher. Writer shall promptly and faithfully comply with all requirements and requests made by Publisher in connection with its business as set forth herein. Writer shall deliver a manuscript copy of each material composition hereunder immediately upon the completion or acquisition of such musical
composition. Publisher shall use its reasonable efforts in its best business judgment to exploit all compositions hereunder, but Publisher’s failure to exploit any or all said compositions shall not be deemed a breach hereof.

11.           Unique Service. Writer acknowledges that the services rendered hereunder are of a special, unique, unusual, extraordinary and intellectual character which gives them a particular value, the loss of which cannot be reasonably or adequately compensated in damages in any action at law, and that a breach by the Writer of any of the provisions of this Agreement will cause Publisher great and irreparable
injury and damage. Writer expressly agrees that Publisher shall be entitled to the remedies of injunction and other equitable relief to prevent a breach of this Agreement or any provision hereof which relief shall be in addition to any other remedies for damages or otherwise, which shall be available to the Publisher.

12.           Recoupments.  It is understood and acknowledged that any and all charges or advances against royalties under this Agreement may be recouped only from the royalties earned hereunder. No cross-collateralization exits between this Agreement and any other facet of the Writer's business or career.

13.           Right of Revision.  Notwithstanding anything contained herein to the contrary:

(a)           In respect of all rights herein granted Publisher in and to any and all musical compositions written by Writer that are not recorded and released as a commercial record prior to the termination of this Agreement, it is understood and agreed that all such rights shall revert to Writer automatically upon the termination of this Agreement.

(b)           In respect of any and all musical compositions which are released as a commercial record for sale to the public, it is understood and agreed that all such rights herein granted to Publisher shall terminate fifty (50) years from the date of creation as such date is shown on the copyright registration form and the copyright ownership shall revert to Writer and/or his/her heirs.

14.           Entire Agreement.  This Agreement supersedes any and all prior negotiations, discussions, understandings, and agreements between the parties hereto with respect to the subject matter hereof.  Each of the parties acknowledges and agrees that neither party has made any representations or promises in connection with this Agreement or the subject matter hereof not contained herein.

 

 

 

 

 

  

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15.           Assignment.  Publisher shall have the right to assign this Agreement or any of its rights hereunder to any party. Writer does not have the right to assign this Agreement.

16.            Definitions.  For the purpose of this Agreement, the word “person” means and refers to any individual, corporation, partnership, association or any other organized group of persons, legal successors or representatives of the foregoing. Whenever the expressions, “the term of this Agreement” or “period hereof” or words of similar connotation are included
herein, they shall be deemed to mean and refer to the initial term of this Agreement and any and all renewals, extensions, substitutions or replacements of this Agreement, whether expressly indicated or otherwise.

17.           Notices.  Any written notices which Publisher will desire to give Writer hereunder and all statements, royalties and other payments which shall be due to Writer hereunder shall be addressed to Writer at the address set forth on Page 1 hereof until Writer shall give Publisher written notice of a new address. All notices which Writer shall desire to give to Publisher hereunder shall be addressed to
Publisher at the address set forth on Page 1 hereof until Publisher shall give Writer written notice of a new address.  All notices shall be delivered by hand, U.S. Mail Certified Mail Return Receipt Requested, postage prepaid, or FedEx or other overnight courier service and shall be deemed delivered on the next business day after being sent to such party.

18.           Modification, Waiver, Invalidity and Controlling Law. This Agreement may not be canceled, altered, modified, amended or waived, in whole or in part, in any way, except by instrument in writing signed by the party sought to be bound. The waiver by either party of any breach of this Agreement in anyone or more instances shall in no way be construed as a waiver of any subsequent breach of this Agreement (whether or not similar in nature). If any
part of this Agreement shall be held to be void, invalid or unenforceable, it shall not affect the validity of the balance of this Agreement.  This Agreement shall be deemed to have been made in the State of Florida, and its validity, construction and effect shall be governed by the laws of the State of Florida applicable to an agreement wholly performed in such state. This Agreement shall not be binding upon Publisher until signed and executed by Writer.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first above written.

PUBLISHER:

ASTIKA MUSIC ENTERTAINMENT, INC.

By:  /s/  Eugene B. Settler                                               

               Eugene B. Settler, President

WRITER:

By:  /s/   Eugene B. Settler                                             

                Eugene B. Settler

 

 

 

 

 

 

 

 

  

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EXHIBIT A

MUSICAL COMPOSITIONS

The following three musical compositions, which are as follows:

Indescribable Ecstasy

Rakhe Rakhan Har

Guru Ram Das Lullaby

 

 

 

 

 

 

 

 

 

 

 

  

A - 1ex10_1.htm

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:

 

  

  

  

 

	
 

 

 

 

 

 

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.

 

  

5

  

 

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.

  

6

  

 

(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]

 

  

7

  

 

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]

  

  

  

	
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]

  

  

  

 

	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]

 

  

  

  

	
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]

 

  

  

  

 

	
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]

 

  

  

  

	
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]

 

  

  

  

	
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]

 

  

  

  

	
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]

 

  

  

  

 

	
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]

 

  

  

  

	
BANK OF THE WEST,

	 
	
as Lender

	 	 
	 	 	 	 
	By: 	/s/Benjamin Amayo	 
	 	Name: 	Benjamin Amayo	 
	 	Title: 	Vice President	 

 

 

 

[Signatures Continue on the Next Page]

 

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

 

  

  

  

	
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]

 

  

  

  

	
BANK OF MONTREAL, as Lender

	 
	 	 	 
	 	 	 	 
	By: 	/s/Lloyd Baron	 
	 	Name: 	Lloyd Baron	 
	 	Title: 	Vice President	 

 

 

[Signatures Continue on the Next Page]

 

 

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

 

  

  

  

	
COMPASS BANK, as Lender

	 
	 	 	 
	 	 	 	 
	By: 	/s/ Brian Tueff	 
	 	Name: 	Brian Tueff	 
	 	Title: 	SVP	 

 

[Signatures Continue on the Next Page]

 

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

 

  

  

  

	
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]

 

  

  

  

 

	
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]

 

  

  

  

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

 

  

  

  

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  

  

                                                        

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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