Document:

Exhibit (10)(ee)

                  LIMITED PARTNERSHIP CERTIFICATE AND AGREEMENT
                  ---------------------------------------------

         THIS LIMITED PARTNERSHIP CERTIFICATE AND AGREEMENT,  (the "Agreement"),
made and entered into this  12th  day of December, 2006, by and among FLANIGAN'S
                            ----
ENTERPRISES, INC., a Florida corporation, (the "General Partner"), and all other
parties  who  shall  execute  this   Agreement  or  any   counterpart   thereof,
collectively,  (the "Limited  Partners").  The Limited Partners,  as constituted
from time to time,  and the General  Partner are sometimes  herein  collectively
referred to as the "Partners".

                              W I T N E S S E T H :
                               -------------------

         WHEREAS,  the  Partners  desire  to  form a  limited  partnership  (the
"Partnership")  pursuant to the Uniform Limited  Partnership Act of the State of
Florida upon the terms and conditions hereinafter set forth;

         NOW THEREFORE, intending to be legally bound hereby, the Partners agree
as follows:

                                    ARTICLE I

                                   DEFINITIONS
                                   -----------

         The following  terms used in this  Agreement  shall  (unless  otherwise
expressly provided herein or unless the context clearly requires otherwise) have
the following meanings:

         1.1 Additional Capital Balance.  The Additional Capital  Contributions,
             --------------------------
if any,  of the  General  Partner,  as  reduced  from  time to time by all  cash
distributions  to such

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General Partner which, pursuant to the terms of this Agreement, are in reduction
of the General Partner's  Additional Capital Balance, and as increased from time
to time by any contributions of the General Partner which are Additional Capital
Contributions.

         1.2 Additional Capital Contributions. Any additional cash contributions
             --------------------------------
of the General Partner to the capital of the Partnership pursuant to Section 3.5
hereof.

         1.3 Agreement. This Limited Partnership Certificate and Agreement.
             ---------

         1.4 Capital Balance. The Initial Capital Contribution made by a Partner
             ---------------
in cash and the fair market value of any contributions in kind, (as set forth in
this Agreement),  as reduced from time to time by all cash distributions to such
Partner which,  pursuant to the terms of this  Agreement,  are in reduction of a
Partner's Capital Balance.

         1.5 Capital  Commitment.  The Capital  Commitment  with  respect to any
             -------------------
Limited Partner is his obligation to contribute the aggregate  amount to be paid
for the Units (computed at the rate of $5,000.00 per Unit) subscribed for by him
pursuant  to his  Subscription  Agreement  and  set  opposite  his  name  on the
signature  page  attached  to this  Agreement,  and with  respect to the General
Partner, is its obligation to make its original Capital Contribution pursuant to
Section 3.1 hereof.

         1.6 Initial Capital Contribution. The Contribution made by each Partner
             ----------------------------
pursuant to its Capital Commitment.

         1.7   Code.   The Internal Revenue Code of 1954, as amended.
               ----

         1.8 General  Partner.  The General  Partner is FLANIGAN'S  ENTERPRISES,
             ----------------
INC. or any successor general partner as provided herein.

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         1.9 General Partner's  Capital.  The combined total Capital Balance and
             --------------------------
Additional Capital Balance of the General Partner.

         1.10 Law. The Uniform  Limited  Partnership Act of the State of Florida
              ---
in effect from time to time during the term hereof.

         1.11  Limited  Partner.  The Limited  Partners  hereunder  and any such
               ---------------
persons admitted to the Partnership as substituted Limited Partners.

         1.12 Limited Partners' Capital. The total of the Capital Balance of all
              -------------------------
Limited Partners.

         1.13 Limited Partner Percentage.  In respect of any Limited Partner the
              --------------------------
percentage  obtained by  converting  to a  percentage  the  fraction  having the
Initial Capital Contribution of such Limited Partner as its numerator and having
the Limited Partners' Capital as its denominator.

         1.14 Net Cash Flow. Net Cash Flow of the Partnership, with respect to a
              -------------
fiscal period, shall mean Net Income of the Partnership for such period, reduced
by (i) any  repayments  of  principal  on loans of the  Partnership,  (excluding
General  Partner's Loans, the principal  amounts of which are payable out of Net
Cash Flow as stated in Article VIII hereof),  (ii) any capital  expenditures and
prepaid expenses to the extent not included in the  determination of Net Income,
(iii) any Net Sale Proceeds to the extent included in the  determination  of Net
Income, and (iv) reasonable  additions to a reserve,  (as determined in the sole
discretion  of the  General  Partner);  and  increased  by any  receipts  by the
Partnership which are not included in the determination of Net Income.

         1.15 Net  Income.  Net Income of the  Partnership  with  respect to any
              -----------
fiscal  period shall mean the excess of the gross sales for such period over all
operating

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expenses for such period,  as those terms are defined  herein,  determined on an
accrual  basis  and  determined  without  regard  to  amounts  deducted  by  the
Partnership  for cost recovery of tangible assets or amortization of capitalized
or other capital accounts.

         1.16 Net Loss. Net Loss of the  Partnership  with respect to any fiscal
              --------
period shall mean that excess of all operating expenses for such period over the
gross sales for such period, as those terms are defined herein, determined on an
accrual  basis  and  determined  without  regard  to  amounts  deducted  by  the
Partnership  for cost recovery of tangible assets or amortization of capitalized
expenditures or other capital accounts.

         1.17 Net Sale Proceeds.  The proceeds  realized by the Partnership upon
              -----------------
the sale,  exchange or other  disposition of all or any substantial  part of the
Partnership property,  net of expenses incident to such sale, the payment of any
Partnership   indebtedness  secured  by  or  related  to  any  such  assets  and
satisfaction  of any right of any  creditor  of the  partnership  (other  than a
Partner) to receive such proceeds.

         1.18 Participation  Percentage.  Throughout the term of this Agreement,
              -------------------------
the  Participation  Percentage  of the Limited  Partners is fifty  percent (50%)
(allocated  to each Limited  Partner in  proportion  to his Limited  Partnership
Percentage)  and the  Participation  Percentage of the General  Partner is fifty
percent (50%).

         1.19 General Partner's Loans. All amounts loaned by the General Partner
              -----------------------
to the Partnership pursuant to Section 3.5 hereof.

         1.20 Subscription  Agreement.  The Instrument by which each prospective
              -----------------------
Limited Partner agrees to purchase Units.

         1.21 Substitute Limited Partner. A person admitted to all of the rights
              --------------------------
of a Limited  Partner who has died or assigned his interest in the  Partnership,
or in the  case

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of  a  Limited  Partner  that  is a  partnership,  joint  venture,  association,
corporation  or trust,  that has been  dissolved or assigned its interest in the
Partnership.

         1.22 Unit. A Unit means an interest of a Limited Partner in the Limited
              ----
Partners'  Capital of the  Partnership  with an original  subscription  value of
$5,000.00.

                                   ARTICLE II
                                   ----------

                             THE LIMITED PARTNERSHIP
                             -----------------------

         2.1 Formation of  Partnership.  The parties hereto agree to form and by
             -------------------------
execution of this Agreement do hereby enter into a limited partnership  pursuant
to Chapter 620, et seq.,  of the Florida  Statutes,  entitled  "Uniform  Limited
Partnership  Act" ("Law") which Law shall govern the rights and  liabilities  of
the parties hereto, except as otherwise herein expressly stated.

         2.2 Partnership Name. The name of the Partnership is CIC INVESTORS #55,
             ----------------
LTD. The General  Partner,  in its sole  discretion,  may change the name of the
Partnership  at any time and from  time to time.  The  General  Partner  and the
Limited  Partners  hereto shall promptly  execute and the General  Partner shall
file and record with the proper  offices in each state,  including any political
subdivision  thereof,  in which the Partnership  does, or elects to do, business
and publish such certificates or other statements or instruments as are required
by the Limited  Partnership  Law,  Beverage  Regulations,  Fictitious  Name Law,
Assumed  Name Law or any other  similar  statute in effect  from time to time in
such state or political  subdivision in order to validly conduct the business of
the Partnership therein as a limited partnership.

         2.3 Character of Business and Purpose of the Partnership.  The business
             ----------------------------------------------------
and  purpose  of the  Partnership  shall  be to  own,  renovate  and  operate  a
restaurant located

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at 2190 S. University Drive,  Davie,  Broward County,  Florida and most recently
operating as "MIAMI SUBS GRILL", (the "Business"), but specifically excludes any
interest of any kind in the property owned by the landlord.

         2.4 Principal Place of Business. The principal place of business of the
             ---------------------------
Partnership shall be at 5059 NE 18th Avenue, Fort Lauderdale, Florida 33334. The
General  Partner may change the  principal  place of business or establish  such
other place or places of business for the  Partnership  as it may,  from time to
time, deem necessary or appropriate,  provided however, that the General Partner
shall give the Limited Partners notice of any change of address of the principal
place of  business of the  Partnership  at least ten (10) days prior to any such
change.

         2.5 Term of  Partnership.  The  Partnership  shall commence on the date
             --------------------
that this  Agreement has been filed in accordance  with the provision of the Law
and shall continue until the earlier of the following:

         (i)      Failure of the  Partners to have a liquor  license  issued for
                  the  Business  by the  Division  of  Alcoholic  Beverages  and
                  Tobacco within one (1) year of the date of this Agreement; or

         (ii)     Revocation  of the  liquor  license  for the  Business  by the
                  Division of  Alcoholic  Beverage  and Tobacco  followed by the
                  inability  of the  Partners,  after the exercise of their best
                  efforts,  to cause such liquor license to be reinstated within
                  a ninety (90) day period; or

         (iii)    Dissolution  or  termination  pursuant  to the  provisions  of
                  Article X of this Agreement.

         2.6      Names and Residences of Partners.
                  --------------------------------

                  A.       The name and address of the General Partner is:

                           Flanigan's Enterprises, Inc.
                           5059 NE 18th Avenue
                           Fort Lauderdale, Florida 33334

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<PAGE>

                  B.       The names and  places of  residences  of the  Limited
                           Partners  are  set  forth  on  the  signature   pages
                           attached  hereto together with those persons who may,
                           from time to time, be admitted by the General Partner
                           as Substitute Limited Partners in accordance with the
                           terms of this Agreement.

         2.7 Nature of Partners' Interests. The interests of the Partners in the
             -----------------------------
Partnership shall be personal  property for all purposes.  All property owned by
the  Partnership,  whether real or personal,  tangible or  intangible,  shall be
owned by the Partnership as an entity and no Partner,  individually,  shall have
any ownership of such property.

         2.8  Non-Partition.  No Partner shall be entitled to seek  partition of
              -------------
any Partnership property.

                                   ARTICLE III

                             CAPITAL CONTRIBUTIONS;
                        ADDITIONAL CAPITAL CONTRIBUTIONS;
                          GENERAL PARTNER'S LOANS; AND
                  REIMBURSEMENT OF EXCESS CAPITAL CONTRIBUTION
                  --------------------------------------------

         3.1  General  Partner.  The General  Partner  shall  contribute  to the
              ----------------
Partnership  cash in an amount  equal to one percent  (1%) of the total  Initial
Contributions of the Partners and other property as set opposite its name on the
signature page attached to this Agreement.

         3.2 Limited  Partners.  The Limited Partners' Capital shall be measured
             -----------------
in terms of Units and a Limited Partner shall contribute $5,000.00 for each Unit
purchased.  Each Limited  Partner shall purchase a minimum of one (1) Unit. Each
Limited  Partner shall  contribute  to the  Partnership  as his Initial  Capital
Contribution  an amount  equal to the amount of his  Capital  Commitment  as set
forth in the Subscription Agreement executed by him and set opposite his name on
the signature page attached to this

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<PAGE>

Agreement. The amount of Capital Commitment shall be paid in cash by the Limited
Partner upon execution and delivery of the Subscription Agreement.

         3.3 Capital Accounts. The Partnership will maintain for each Partner an
             ----------------
account to be designated "Capital Account", to which will be added the Partner's
Initial Capital Contribution,  Additional Capital Contributions and distributive
share of the profits of the Partnership,  and against which will be deducted the
Partner's   distributive  share  of  the  losses  of  the  Partnership  and  all
distributions made to the Partner. A Partner's Capital Account may, at any point
in time, be the same as or different from such Partner's Capital Balance and may
have a negative balance  resulting from the Partner's share of distributions and
losses in excess of the Partner's  Initial Capital  Contribution  and Additional
Capital Contributions.

         3.4  Use of  Capital  Contributions  and  Loans.  The  Initial  Capital
              ------------------------------------------
Contributions of the Partners, all proceeds of Partnership  borrowings,  and any
Additional  Capital  Contributions  or General  Partner's Loans made pursuant to
this Agreement, shall be used to change and convert the business premises of the
Business to the General Partner's  "Flanigan's Seafood Bar and Grill" restaurant
concept and as working capital.

         3.5  Additional Capital Contributions and General Partner's Loans.
              ------------------------------------------------------------

                  A. Other than as  expressly  set forth in this Article III, no
Limited  Partner shall be required or permitted to make any  Additional  Capital
Contributions, Partner's Loans, or other contributions, loans or advances to the
Partnership;  however,  the General  Partner may make,  in its sole  discretion,
Additional Capital Contributions, Loans, or advances to the Partnership.

                                       8
<PAGE>

                  B.  If  the  General   Partner   advances  any  funds  to  the
Partnership  after the date of this Agreement  (except in the case of Additional
Capital  Contributions),  such  advances  will be treated  as General  Partner's
Loans, will not increase the General Partner's Participation Percentage, and the
amount thereof will be a debt due from the  Partnership to the General  Partner,
entitled  to the  priorities  described  in Sections  8.1 and 8.2 hereof,  to be
repaid with such interest as provided.

         3.6 Withdrawal of Capital.  Prior to the dissolution and liquidation of
             ---------------------
the  Partnership,  no  Partner  shall  have the  right,  during  the term of the
Partnership,  to require the return of all or any portion of his Initial Capital
Contribution, except that distributions made in accordance with Article VIII may
represent  in  whole  or in  part a  return  of  capital.  Upon  any  return  of
partnership capital this Agreement shall be amended as provided by the Law.

         3.7  Interest on Capital  Contributions.  No interest  shall be payable
              ----------------------------------
with respect to any capital contributed to the Partnership.

         3.8 No Priority Among Limited  Partners.  No Limited Partner shall have
             -----------------------------------
any  priority  over any other  Limited  Partner as to the return of his  Initial
Capital  Contribution or as to compensation by way of income or as to allocation
of profits and losses or distributions of cash.

         3.9 Excess Capital  Contribution.  In the event that the cost to change
             ----------------------------
and convert the business  premises of the Business,  including both cash and the
fair market value of any property  contributed in kind,  reasonable reserves and
organizational  costs hereof do not equal or exceed Three  Million Eight Hundred
Seventy Five Thousand Dollars  ($3,875,000.00),  any excess shall be returned to
the Limited  Partners,  pro-rata,

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as a partial refund of their Initial  Capital  Contribution.  Upon any return of
partnership capital, this Agreement shall be amended as required by Law.

                                   ARTICLE IV

                                LIMITED PARTNERS
                                ----------------

         4.1 Limited Liability of Limited Partners.  No Limited Partner shall be
             -------------------------------------
liable for any of the losses, debts or obligations of the Partnership beyond the
amount of his Capital Commitment or be required to contribute any capital beyond
his Capital  Commitment,  or be  required to lend any funds to the  Partnership,
except  that a Limited  Partner  may be  required by law to return any or all of
that portion of his Initial Capital  Contribution  which has been distributed to
him, with  interest,  if necessary to discharge  Partnership  liabilities to all
creditors  who  extended  credit or whose  claims  arose prior to such return of
capital.

         4.2 Restrictions on Limited Partners.
             --------------------------------

         A. No Limited  Partner shall  participate in the management and control
of the business of the  Partnership,  transact any business for the Partnership,
or attempt to do so; and

         B. No Limited  Partner shall have the power to  represent,  sign for or
bind the General Partner or the Partnership.

         4.3 Rights and Powers of Limited Partners.
             -------------------------------------

         A. Any  Limited  Partner  may engage in or own an interest in any other
business ventures which may be engaged in the same or similar businesses as that
of the Partnership.

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<PAGE>

         B. Each Limited  Partner shall be entitled to  participate  in meetings
regarding the affairs of the Partnership and to do all other things with respect
to the business and affairs of the Partnership permitted by the Law.

         4.4 Admission of Additional  Limited  Partners.  No additional  Limited
             ------------------------------------------
Partners  shall be  admitted  to the  Partnership;  provided  however,  that the
General Partner may admit  Substitute  Limited  Partners at any time pursuant to
Article IX.

                                    ARTICLE V

                                 GENERAL PARTNER
                                 ---------------

         5.1 Rights and Powers.
             -----------------

         A. The General  Partner shall have the full and  exclusive  discretion,
right and power to manage,  control and operate  the  Partnership  and to do all
things  necessary to operate the Business.  The General Partner shall change and
convert  the  existing  facility  to its  "Flanigan's  Seafood  Bar  and  Grill"
restaurant  concept.  During the term of this  Agreement  and while the  General
Partner  continues to act in the capacity of General Partner of the Partnership,
and while the Partnership continues to pay a servicemark fee equal to three (3%)
percent of gross sales from the Business, as provided in Section VII hereof, but
not  thereafter,  the General  Partner shall permit the  Partnership  to use the
servicemark  "Flanigan's  Seafood  Bar and  Grill"  for the  Business  and shall
supervise  the day to day  operation  of the  same  under  the same  format  and
standards  as  used  in  its  existing   "Flanigan's   Seafood  Bar  and  Grill"
restaurants.  The Business shall include exclusive  management of the restaurant
located  within the  business  premises for the service of lunch and dinner each
day.

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<PAGE>

         B. The General  Partner is  specifically  authorized and empowered,  on
behalf of the  Partnership,  and  without  any  further  consent of the  Limited
Partners,  to do any act or execute any  document or enter into any  contract or
any agreement of any nature  necessary or desirable,  in the sole  discretion of
the  General  Partner,  in  pursuance  of  the  business  and  purposes  of  the
Partnership, including but not limited to the operation of the Business. Without
limiting the  generality  of the  foregoing,  and subject to the  provisions  of
Section 5.2, the General  Partner shall have the following  rights and powers to
act on behalf of the Partnership, which it may exercise at the cost, expense and
risk of the Partnership:

         (i)      Purchase such furniture,  fixtures and equipment and make such
                  leasehold  improvements as are required by the General Partner
                  for the renovation of the business premises of the Business.

         (ii)     Place  record  title to, or the right to use,  the property or
                  other  assets  of the  Partnership  in the  name or names of a
                  nominee or nominees for any purpose  convenient  or beneficial
                  to the Partnership.

         (iii)    Execute  contracts,  leases,  licenses,  options  to  lease or
                  purchase,  rental  agreements,   concession  agreements,   use
                  agreements  and the like,  of and with respect to  Partnership
                  property.

         (iv)     Make elections  under the tax laws of the United States or any
                  state as to the treatment of Partnership income,  gains, loss,
                  deduction and credit, and as to all relevant matters.

         (v)      Provide or  contract  for such  management  services as may be
                  required for the operation of the Business,  including but not
                  limited  to  full  payroll   services,   all   accounting  and
                  bookkeeping services for the operation of the Business,  as an
                  expense  of  the  Business,  (including  the  preparation  and
                  forwarding of monthly sales tax returns, monthly liquor excise
                  taxes and  annual  federal  partnership  returns),  and prompt
                  payment of all bills  incurred in the normal  operation of the
                  Business.

         (vi)     Establish overall business policy and objectives.

         (vii)    Provide  overall  executive  supervision  of operations of the
                  Business.

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         (viii)   Generally  supervise  employees and others performing services
                  for the benefit of and in the operation of the Business.

         (ix)     Provide, advise and arrange for advertising, display and sales
                  promotion of the Business.

         (x)      Oversee  the  operation  of  the  Business  in  the  areas  of
                  management, sales and purchasing.

         (xi)     Arrange for the  supervision  of the daily  operations  of the
                  Business  with   responsibility  for  (1)  hiring  and  firing
                  employees   and   other   service   personnel,    (2)   salary
                  administration  and  compensation   policies,   (3)  incentive
                  programs,  (4) inventory purchase and control,  (5) pricing of
                  all goods  and  services,  (6)  business  procedures,  and (7)
                  controlling daily operational expenses.

         (xii)    Keep the Business insured against liability claims arising out
                  of the operation of the restaurant, as an operating expense of
                  the Business,  with  insurance  coverage in an amount not less
                  than One  Million  Dollars  ($1,000.000.00),  combined  single
                  limit, including liquor liability and products liability.  The
                  General  Partner shall cause the  Partnership,  itself and the
                  landlord of the business  premises,  to be named as additional
                  insureds  on the  liability  insurance  policy and provide the
                  Partnership,  itself and the landlord of the business premises
                  with  Certificates  of Insurance as evidence of its compliance
                  with the provisions hereof.

         (xiii)   Purchase and maintain worker's compensation  insurance for the
                  employees  of the  Business,  as an  operating  expense of the
                  Business.

         (xiv)    Keep the business premises  reasonably  insured against damage
                  by  fire  and  other   casualty  and  maintain   insurance  in
                  accordance  with the  provisions of the Lease for the business
                  premises.  The General  Partner  shall cause the  Partnership,
                  itself and the landlord of the  business  premises to be named
                  as additional  insureds on the property  insurance  policy and
                  provide  the  Partnership,  itself  and  the  landlord  of the
                  business  premises with  Certificates of Insurance as evidence
                  of its compliance with the provisions hereof.

         (xv)     Keep the  personal  property,  fixtures  and  equipment of the
                  Business  reasonably  insured against damage by fire and other
                  casualty,  in an amount equal to its highest  insurable value,
                  with  replacement  cost  endorsement,  as an  expense  of  the
                  Business.

         (xvi)    Keep the Business  reasonably insured against loss of business
                  due to fire and  other  casualty  with  business  interruption
                  insurance,  in an  amount  to be  determined  by  the  General
                  Partner, as an expense of the Business.

                                       13
<PAGE>

         (xvii)   Arrange  and pay  all  charges  for  telephone  services,  all
                  utilities,  including without limitation,  electrical, gas and
                  water,  and cable or other electronic  transmission  necessary
                  for operation of the Business, as an expense of the Business.

         (xviii)  Arrange for trash collection and removal from the Business, as
                  an expense of the Business.

         (xix)    Make  all  normal  repairs  and  replacements  to the  kitchen
                  equipment   and   interior,   external,   non-structural   and
                  structural  repairs and  replacements  of the Business and the
                  business premises, in order to keep the same in good condition
                  and good working order to the extent that the General  Partner
                  deems it necessary  and in accordance  with the  provisions of
                  the Lease for the business premises.

         (xx)     To pay, collect, compromise, arbitrate, resort to legal action
                  or  otherwise  adjust  claims or  demands  of or  against  the
                  Partnership.

         (xxi)    To borrow  money for any  Partnership  purpose and to make all
                  required  payments of  principal  and  interest  with  respect
                  thereto.

         (xxii)   To timely  comply with and abide by all of those  obligations,
                  terms,  covenants and conditions  imposed upon the Partnership
                  as  tenant  of the  Lease  for the  business  premises  of the
                  Business,  including but not limited to the timely  payment of
                  rent, as an expense of the Business.

         (xxiii)  To promptly comply with,  execute and fulfill all governmental
                  statutes,   ordinances  and  regulations   applicable  to  the
                  Partnership in connection with the Business, including without
                  limitation,  all orders and requirements  imposed by the Board
                  of Health,  sanitation,  fire and police departments including
                  without  exception  those for the  correction,  prevention and
                  abatement  of  nuisances  in or upon  or  connected  with  the
                  business  premises  of  the  Business,  as an  expense  of the
                  Business.

         The General Partner shall be responsible for the procurement and hiring
of all  employees,  agents  and  independent  contractors  required  for on site
operation on a day to day basis  including,  but not limited to, a manager.  The
General  Partner shall control all of the day to day  operations of the Business
and shall handle all  negotiations,  complaints,  objections  and other  matters
involving the operation of the  Business,  the patrons of the Business,  and the
employees  and staff or any  sublessee  of or  operator  of

                                       14
<PAGE>

any portion of the Business in connection with  activities at the Business.  The
General  Partner  shall hire,  instruct,  maintain  and  supervise  personnel to
properly  staff the Business  and shall  maintain the  Business,  the  interior,
exterior,  non-structural  and structural  portions of the building it occupies,
its fixtures and its premises in a reasonable  manner and condition,  keeping it
clean and serviceable, including arranging for janitorial services as an expense
of the  Business.  The General  Partner  shall have the full  responsibility  to
collect for all  services  and sales from the  Business,  except as  hereinafter
provided,  to daily  deposit all receipts in bank  account(s)  designated by the
General  Partner,  shall arrange for  advertising for the Business to the extent
deemed  desirable by the General  Partner and maintain all  necessary  licenses,
including liquor license,  and permits required in connection with the operation
of the Business.  The cost of such activities,  including  license renewal fees,
incurred for the Business shall be borne by the Business.

         In discharging the foregoing duties,  the General Partner shall act and
conduct the Business in a reasonable manner. In order for the General Partner to
have the greatest  opportunity to discharge such duties and to maximize  profits
from the Business,  the Limited  Partners shall cooperate fully with the General
Partner and shall promptly  provide the General Partner with all information and
assistance  as the  General  Partner  may  reasonably  request  pursuant to this
Agreement. The General Partner shall devote such time to the Business as, in its
judgment,  the supervision of the Business shall reasonably  require,  but shall
not be  obligated  to do or  perform  any act or  thing in  connection  with the
Business not expressly set forth herein.

                                       15
<PAGE>

         5.2 Certain Limitations. In addition to other acts expressly prohibited
             -------------------
by this  Agreement  or by the  Law,  the  General  Partner  shall  not  have any
authority to:

         A. Do any act in contravention of this Agreement;

         B. Do any act which would make it impossible to operate the Business or
to otherwise  carry on the  ordinary  business of the  Partnership  or any phase
thereof, except as expressly provided in this Agreement;

         C. Assign the rights of the Partnership in specific  property for other
than a Partnership  purpose;

         D.  Admit a person  or  entity  as a  General  Partner  or as a Limited
Partner, except as otherwise provided in this Agreement;

         E. Knowingly or willingly do any act which would cause the  Partnership
to become an association taxable as a corporation;

         5.3 Contracts with Affiliates. Except as herein specified, all services
             -------------------------
which the General  Partner is not  obligated to perform  under the terms of this
Agreement and the  materials  necessary for the operation of the Business may be
provided  by the  General  Partner,  or any entity  affiliated  with the General
Partner,  and the General  Partner  shall be  compensated  for such  services or
materials on such terms and conditions no less  favorable than those  obtainable
in the marketplace, and such amounts shall be deemed to be operating expenses of
the Business.

         5.4 Liability of General  Partner.  The General Partner shall be liable
             -----------------------------
to the Limited Partners for willful  misconduct,  bad faith or gross negligence,
but shall not be liable for errors in judgment or for any acts or omissions that
do not constitute  willful  misconduct,  bad faith or gross  negligence.  In all
transactions for or with the

                                       16
<PAGE>

Partnership,  the General Partner shall act in good faith and for the benefit of
the  Partnership.  The Limited  Partners  shall look solely to the assets of the
Partnership  for the return of their Initial  Capital  Contributions  and if the
assets of the Partnership  remaining after payment or discharge of the debts and
liabilities of the Partnership  are  insufficient to return such Initial Capital
Contributions,  they shall have no recourse against the General Partner for such
purpose.  The  doing  of any act or the  failure  to do any  act by the  General
Partner,  the  effect  of which  may  cause or  result  in loss or damage of the
Partnership, if done pursuant to advise of legal counsel or accountants employed
by the  General  Partner  on behalf of the  Partnership,  shall be  conclusively
presumed not to constitute willful misconduct,  bad faith or gross negligence on
the part of the General Partner.

         5.5 Indemnification. The General Partner, including any employee of the
             ---------------
General Partner,  shall not be liable for, and to the extent of its assets,  the
Partnership  shall indemnify the General  Partner or any such employee,  against
liabilities  arising  out of  their  activities  as or for the  General  Partner
resulting  from  errors in  judgment  or any acts or  omissions,  whether or not
disclosed,  unless caused by willful misconduct,  bad faith or gross negligence;
provided,  however,  that this  provision  shall not  constitute a waiver by the
Limited Partners of any rights it may have under applicable securities laws.

                                   ARTICLE VI

                        ALLOCATION OF PROFITS AND LOSSES
                        --------------------------------

         6.1 General.  All Partnership items of income,  gain, loss,  deduction,
             -------
credits, or tax preference items, (the "Tax Incidents"),  shall be determined as
of the end of each

                                       17
<PAGE>

fiscal year.  As between a Partner and his  transferee,  Tax  Incidents  for any
fiscal year (or portion  thereof,  as the case may be) shall be  apportioned  in
accordance with the ratio that the number of days in the Partnership fiscal year
prior to the  effective  date of  transfer  bears  to the  number  of such  days
thereafter (including the effective date of the transfer).

         6.2      Allocation.   The Tax Incidents shall be allocated as follows:
                  ----------

         A.  Cost   recovery   deductions,   amortization   expense   (including
amortization of organizational  expenses,  start up costs, intangible assets, or
other  capital  accounts),   investment  tax  credits  (including  recapture  of
investment tax credits), and tax preference items shall be allocated ninety-nine
percent  (99%) to the  Limited  Partners  and one  percent  (1%) to the  General
Partner (in  proportion to each  Partner's  Initial  Capital  Contribution),  if
incurred with respect to the  expenditure  by the  Partnership  of the aggregate
Initial Capital  Contributions of the Partners,  (which shall be deemed expended
prior to any other  amounts  available  to the  Partnership),  otherwise  to the
Partners in accordance with their respective Participation Percentages.

         B. Gains and losses from (i) sale, exchange or other disposition of all
or any substantial part of the Partnership property, or (ii) from liquidation of
the Partnership  property  following  dissolution,  as the case may be, shall be
allocated on an asset by asset basis, as follows:

         (1)      Gains,   to  the  extent  of  cost   recovery   deductions  or
                  amortization  expense claimed by the Partnership  with respect
                  to the particular Partnership assets which are sold, exchanged
                  or  otherwise  disposed  of,  shall be  allocated  ninety-nine
                  percent (99%) to the Limited  Partners and one percent (1%) to
                  the General  Partner (in proportion to each Partner's  Initial
                  Capital  Contribution),  if realized  with respect to an asset
                  acquired by the  Partnership  through the  expenditure  of the
                  aggregate  Initial  Capital  Contributions  of  the  Partners,
                  (which  shall be deemed  expended  prior to

                                       18
<PAGE>

                  any other amounts available to the Partnership),  otherwise to
                  the Partners in accordance with their respective Participation
                  Percentages;

         (2)      Gains in excess of cost recovery  deductions  or  amortization
                  expense  claimed  by  the  Partnership  with  respect  to  the
                  particular  Partnership  assets  which are sold,  exchanged or
                  otherwise  disposed  of, shall be allocated to all Partners in
                  the  same  proportion  that  the  Partners   actually  receive
                  distributions  of proceeds  from Net Sale Proceeds as provided
                  in Section  8.2  hereof,  (except  distributions  pursuant  to
                  Section 8.2(a)); and

         (3)      All losses shall be allocated ninety-nine percent (99%) to the
                  Limited  Partners and one percent (1%) to the General  Partner
                  (in   proportion   to   each   Partner's    Initial    Capital
                  Contribution),  if realized with respect to an asset  acquired
                  by the  Partnership  through the  expenditure of the aggregate
                  Initial Capital Contributions of the Partners, (which shall be
                  deemed  expended  prior to any other amounts  available to the
                  Partnership),  otherwise  to the Partners in  accordance  with
                  their respective Participation Percentages.

         C.  All Tax  Incidents  other  than  those  specifically  allocated  by
subparagraph  (A) and (B),  ("Other Tax  Incidents"),  shall be allocated to the
Partners in the same proportion that the Partners  actually receive in that same
fiscal  year cash  distributions  from Net Cash Flow as  provided in Section 8.2
hereof,  (except  cash  distributions  pursuant to Section  8.2(a)),  (the "Cash
Distributions"), provided nevertheless as follows:

         (1)      Other Tax  Incidents  shall be allocated in any fiscal year to
                  the  Partners  so  receiving  Cash  Distributions  in the same
                  proportion that such Cash Distributions  actually are received
                  only if such Cash Distributions  actually distributed equal or
                  are  greater  than the  Partnership's  Net Income for the same
                  fiscal year;

         (2)      To the  extent  the  Partnership's  Net  Income  for that same
                  fiscal  year  exceeds  such  Cash  Distributions,   Other  Tax
                  Incidents  shall be allocated  to the  Partners in  accordance
                  with their respective Participation  Percentages,  except that
                  (i) Net  Income,  in an  amount  equal  to Cash  Distributions
                  actually  received,  shall be  allocated  to the  Partners  so
                  receiving such Cash  Distributions in the same proportion that
                  such Cash  Distributions  actually are received,  and (ii) any
                  excess of Net Income over Cash Distributions actually received
                  shall be allocated to the  Partners in  accordance  with their
                  respective Participation Percentages;

                                       19
<PAGE>

         (3)      In the  absence of any such Cash  Distributions  the Other Tax
                  Incidents  shall be allocated  to the  Partners in  accordance
                  with their respective Participation Percentages; and

         (4)      Notwithstanding  clauses (1) and (2) of this Subparagraph (C),
                  Net Loss,  (whether  or not Cash  Distributions  are  actually
                  made),  shall be allocated to the Partners in accordance  with
                  their respective Participation Percentages.

                                   ARTICLE VII

                                   ACCOUNTING
                                   ----------

         7.1 Accounting and  Bookkeeping.  The General Partner shall prepare and
             ---------------------------
keep,  for a  period  of not less  than  three  (3)  years,  generally  accepted
accounting  records,  including cash registers having  cumulative  totals,  bank
books and duplicate deposit slips,  records showing  inventories and receipts of
merchandise  and other  records from the  operation of the Business  which would
normally  be  required  to be  kept or  examined  by an  independent  accountant
pursuant to generally accepted auditing standards. The Limited Partners shall at
all times  during  normal  business  hours have free  access to and the right to
inspect and copy the accounting records of the Business and/or  Partnership,  at
the principal place of business of the Partnership.

         The General Partner,  as an expense of the Business,  shall prepare for
the  Partnership  and  provide  the  Limited  Partners  with a complete  monthly
accounting  of the  operation of the Business on a form similar to that attached
hereto as Exhibit "C",  within  thirty (30) days of the end of each month during
the term hereof. The monthly report shall also contain a statement of cumulative
gross sales from the  operation  of the  Business  for the current  year of this
Agreement for purposes of determining any distributions pursuant to Article VIII
below.  The General  Partner shall also provide copies of such other  accounting
records as may be reasonably  requested by the Limited

                                       20
<PAGE>

Partners  and the Limited  Partners  may inspect  the  originals  thereof at any
reasonable time.

         The General  Partner shall mail within seventy five (75) days after the
close of each  fiscal  year,  an annual  report to the Limited  Partners,  which
annual report shall  constitute the accounting of the Partnership for such year.
The annual report shall contain unaudited financial statements, certified by the
Treasurer of the General Partner as accurate and correct, and shall otherwise be
in such form and have such content as the General  Partner  deems  proper.  Such
annual  report  shall  include  from  every  source,  including  net gains  from
disposition or sale of Partnership properties.

         Subject to the right of the Limited  Partners to receive their share of
the  distributions  pursuant  to Article  VIII  hereof,  all  receipts  from the
operation of the Business,  deposited into an account of the Partnership  and/or
the General Partner at a bank designated by the General  Partner,  shall only be
withdrawn upon the direction of the General Partner,  but cannot be unreasonably
withheld. The Partners anticipate that payment of liquor purchases,  payroll and
general  operations may be made from one or more  additional  accounts at one or
more banks,  selected by the General  Partner.  Funds from those  accounts shall
only be withdrawn by or at the direction of the General Partner.

         7.2  Fiscal  Year and  Method of  Accounting.  The  fiscal  year of the
              ---------------------------------------
Partnership shall be a calendar year and the books of the Partnership for income
tax and accounting  purposes shall be kept on the accrual method.  All financial
determinations  hereunder  made  by the  General  Partner  with  respect  to the
calculation of profits and losses,  all  distributions  pursuant to Article VIII
and other  accounting  decisions  shall be determined

                                       21
<PAGE>

by  the  General  Partner  in  accordance  with  generally  accepted  accounting
principles   consistently   applied  by  the  General  Partner  in  making  said
determinations.

         7.3 Audit. The Limited Partners shall have the right from time to time,
             -----
upon two (2)  business  days prior  notice to the  General  Partner,  to cause a
complete audit to be made of the business affairs conducted at the Business, and
all of the books and records referred to in Article VII hereof. Such audit shall
be  performed  by any person  designated,  selected  and paid for by the Limited
Partners,  except as otherwise  provided herein.  The General Partner shall make
all records and books  relevant in any manner to the  operation  at the Business
and/or Partnership  available for audit at 5059 NE 18th Avenue, Fort Lauderdale,
Florida  33334.  If the results of such audit show that the "Net Income" for any
month or year have been  understated,  the General Partner shall immediately pay
to the Limited  Partners the  additional  amount due and if such  understatement
amounts to three percent (3%) or more of "Net Income",  then the General Partner
shall  pay  the  cost of such  audit,  in  addition  to any  deficiency  payment
required.  If the audit  shows that the  General  Partner  has  overpaid  or the
Limited Partners have received  overpayment of any amount,  the Limited Partners
shall  immediately  repay such amount to the  General  Partner.  Any  accounting
deficiencies  revealed by such audit,  which  accounting  deficiencies  shall be
defined as any accounting  practices not in accordance  with generally  accepted
accounting principles  consistently  applied,  shall be corrected by the General
Partner within fifteen (15) days of its receipt of notice of such deficiency.

         7.4 Definitions.
             -----------

                                       22
<PAGE>

         A. "Gross  Sales"  shall mean the gross  income,  price,  money,  cover
charges,  or other  consideration  charged or received from the operation of the
Business, whether in cash, on credit, barter, exchange, or otherwise.

         Gross sales as used herein shall not include,  and the General  Partner
shall deduct from its  calculations  of gross  sales,  to the extent it has been
included:

         (i)      Any sales or excise tax imposed by any governmental  authority
                  upon customers and added to the price of a sale or service and
                  collected   from  the  customer  and  in  turn  paid  to  such
                  governmental authority;

         (ii)     The  amount  of any  credit  or  refund  for  any  merchandise
                  returned or  exchanged  or any  allowance  made for loss of or
                  damage to merchandise  sold but not in excess of original cost
                  and only to the extent that it was previously  included in the
                  calculation of gross sales;

         (iii)    Fees or discounts paid to bona fide credit card agencies;

         (iv)     Amounts paid to third party vending  machine and coin operated
                  devise operators as their share of proceeds from such machines
                  and device; and

         (v)      Complimentary and/or discounted sales made at the direction of
                  the General  Partner,  including but not limited to discounted
                  sales to the employees of the Business.

         B.  "Operating  Expenses"  shall mean all cash expenses and liabilities
incurred in the operation of the Business,  and shall include, by way of example
and without limitation hereby, rent, servicemark fee, personal property taxes on
personal  property,  fixtures  and  equipment  used in the  Business;  liability
insurance;  real estate taxes;  hazard insurance;  trash  collections;  cleaning
services;  accounting and  bookkeeping  fees;  advertising;  telephone  charges;
utilities, including but not limited to electric, water and gas; cable; salaries
for personnel employed at the business premises only; repairs and maintenance of
kitchen equipment,  furniture, fixtures, equipment and personal property used in
the  Business;  repairs and  maintenance  of the  interior  and  exterior of

                                       23
<PAGE>

the business  premises;  cost of inventory;  liquor  license  renewal fees;  but
excluding any allocation of salaries and expenses of "off-site" personnel of the
General Partner.

         7.5      Tax Matters.
                  -----------

         A. The General  Partner shall cause,  as a part of its  bookkeeping and
accounting responsibilities, to be prepared and filed all income tax returns for
the Partnership on an accrual basis. Necessary tax information shall be provided
to the Limited Partners.

         B. In connection with the assignment of a Limited Partner's interest in
the Partnership permitted by Article X hereof, the General Partner, (in its sole
discretion),  shall have the right, but shall not be obligated, on behalf of the
Partnership  and at the time and in the manner  provided  by Section  754 of the
Code, (or any successor section  thereto),  and the Regulations  thereunder,  to
make an  election  to adjust  the basis of  Partnership  property  in the manner
provided in Sections  734(b) and 743(b) of the Code, (or any successor  sections
thereto).

         7.6 Contracting for Accounting Services.  The General Partner shall, as
             -----------------------------------
an expense of the Business,  provide the  accounting  and  bookkeeping  services
provided in this Article VII at the same rate charged to its other franchisees.

                                  ARTICLE VIII

                                  DISTRIBUTIONS
                                  -------------

         8.1 Distributions of Net Cash Flow. All Net Cash Flow, if any, realized
             ------------------------------
by or  available  to the  Partnership  shall  first  be  applied  or  added to a
reasonable  reserve  retained for working  capital needs or to provide funds for
contingencies  and expenses of the  Partnership,  (all as determined in the sole
discretion  of the  General  Partner or as

                                       24
<PAGE>

required  by any loan  agreement  or  instrument  of the  Partnership),  and the
balance, if any, shall be distributed, (from time to time in the sole discretion
of the General Partner, but in the event, no less frequently than quarterly), in
the following order of priority to the extent available:

         A. To the General Partner in repayment of the entire principal  amounts
of any outstanding General Partner's loans, together with all accrued but unpaid
interest  thereon,  first on account of  interest  accrued  thereon  and then on
account of the principal amounts thereof;

         B.  To  the  General  Partner  in  reduction  of its  then  outstanding
Additional Capital Balance;

         C. To the Limited  Partners,  until such time as the  Limited  Partners
have received the  aggregate  sum of Three  Million  Eight Hundred  Seventy Five
Thousand  Dollars  ($3,875,000.00),  which  aggregate sum shall be reduced by an
amount  equal  to  the  amount  of  initial  working  capital  returned  by  the
Partnership  to the Limited  Partners,  a sum equal to the amount  necessary  to
increase the aggregate  distribution to the Limited Partners for the fiscal year
to Nine Hundred Sixty Eight Thousand  Seven Hundred Fifty Dollars  ($968,750.00)
shall be paid to the Limited Partners.  Thereafter,  any remaining amounts shall
be distributed to the Partners in accordance with their respective Participation
Percentages; and

         D. Once the Limited  Partners  have received the aggregate sum of Three
Million  Eight  Hundred  Seventy Five Thousand  Dollars  ($3,875,000.00),  which
aggregate  sum shall be  reduced  by an amount  equal to the  amount of  initial
working  capital  returned  by the  Partnership  to the  Limited  Partners,  any
remaining  amounts shall be

                                       25
<PAGE>

distributed to the Partners in accordance  with their  respective  Participation
Percentages.

         8.2 Distributions of Net Sale Proceeds.  All Net Sale Proceeds, if any,
             ----------------------------------
realized by or available to the Partnership shall first be applied or added to a
reasonable reserve or escrow account retained to provide funds for contingencies
and expenses of the Partnership, (all as determined by the General Partner or as
required  by  any  loan,   escrow  or  other  agreement  or  instrument  of  the
Partnership),  and the balance,  if any,  shall be  distributed in the following
order of priority to the extent available:

         A. To the General Partner, in repayment of the entire principal amounts
of any outstanding General Partner's loans, together with all accrued but unpaid
interest  thereon,  first on account of  interest  accrued  thereon  and then on
account of the principal amounts thereof;

         B.  To  the  General  Partner  in  reduction  of its  then  outstanding
Additional  Capital  Balance,  except as  provided  in  Subparagraph  E. of this
section;

         C. To the  Partners  in  reduction  of their then  outstanding  Capital
Balances,  (in  proportion  to  the  respective  amounts  of  any  such  Capital
Balances), except as provided in Subparagraph E. of this section;

         D. Any  remaining  amounts (i) fifty one percent  (51%)  thereof to the
Limited Partners and (ii) forty nine percent (49%) to the General Partner; and

         E.  Notwithstanding  anything  to the  contrary  in the above  priority
order,  if there is an  insufficient  balance  available to fully return to each
Partner an amount equal to his then outstanding Capital Balance, the balance, if
any, shall be  distributed to the

                                       26
<PAGE>

Partners in proportion to the combined amount of their then outstanding  Capital
Balance.

                                   ARTICLE IX

                        TRANSFER OF PARTNERSHIP INTERESTS
                        ---------------------------------

         9.1   General Partner.
               ---------------

         A. The General Partner shall not sell,  assign, or otherwise dispose of
all or any portion of its  interest as General  Partner in the  Partnership,  or
enter into any  agreement as a result of which any person,  firm or  corporation
shall become  interested with it in its interest in the Partnership  without the
prior consent in writing of the Limited Partners. No person shall be admitted as
a substitute or additional  General Partner without the prior written consent of
the General  Partner and the Limited  Partners as set forth herein.  The General
Partner may not retire or withdraw as a General  Partner  unless it designates a
nominee  willing to serve as a General  Partner  which shall be an individual or
corporation  having  the  capacity  to serve as such and who is able to meet any
requirements  then imposed by the Code or any rulings or regulations  thereunder
with  respect to general  partners  or  limited  partnerships  in order that the
Partnership not become an association  taxable as a corporation.  Subject to the
foregoing,  the General Partner shall give the Limited  Partners at least ninety
(90) days notice of its proposed retirement or withdrawal as General Partner, in
which event the  Partnership  shall be dissolved  and  terminated as provided in
Article X hereof unless the Limited Partners select a new General Partner within
said ninety (90) day period.  Such new General  Partner may be, but need not be,
the nominee designated by the retiring or withdrawing General Partner.

                                       27
<PAGE>

         B. The General  Partner shall  immediately be removed and cease to be a
General Partner upon the dissolution of the General Partner.

         9.2 Substitute  Limited Partner. A Limited Partner or the transferee of
             ---------------------------
a  Limited  Partner  may  transfer  all,  but  not a part  of his  Unit(s)  to a
Substitute Limited Partner provided:

         A. That the transferee, if an individual, is at least 21 years of age;

         B. That the  transferee  executes  an  instrument  satisfactory  to the
General  Partner  accepting and adopting the provisions and agreements set forth
herein and pays any  reasonable  expenses in connection  with his admission as a
Substitute Limited Partner; and

         C. That the  General  Partner  shall  consent to such  transfer,  which
consent may be given or withheld in the General  Partner's sole discretion,  and
shall be withheld if:

         (1)      In the opinion of counsel for the  Partnership  such  transfer
                  would  result in the close of the  Partnership's  taxable year
                  with  respect  to  all  Partners,  in the  termination  of the
                  Partnership  within the meaning of Section 708(b) of the Code,
                  or in the termination of its status as a partnership under the
                  Code; or

         (2)      In the  opinion  of such  counsel  such  transfer  would be in
                  violation of the  Securities  Act of 1933, as amended,  or the
                  securities laws of any other jurisdiction.

         9.3 Death, etc. of a Limited Partner. Upon the death, bankruptcy, legal
             --------------------------------
incompetency or insolvency of a Limited  Partner,  (or, in the case of a Limited
Partner that is a partnership, joint venture, association, corporation or trust,
the dissolution of such Limited Partner), the personal representative,  guardian
or other  successor in interest of such Limited  Partner shall have the right of
the Limited  Partner for the sole

                                       28
<PAGE>

purpose of settling  the estate of such person  pursuant  to the  provisions  of
Section 9.2, but such  assignee may become a Substitute  Limited  Partner in the
Partnership only in accordance with the provisions of Section 9.2.

         9.4  Effective  Date of Transfers.  Permissible  transfers of a Limited
              ----------------------------
Partner's Units shall be effective for purposes of allocations of distributions,
profits and losses on the first day of the fiscal quarter  following  compliance
with Section 9.2 and  following  amendment of this  Agreement as required by the
Law. Until such effective date, the General Partner may act and proceed as if no
transfer had been made.

         9.5 Transfers Other Than in Accordance Herewith.  No transfers of Units
             -------------------------------------------
or any part  thereof  which is in violation of this Article IX shall be valid or
effective,  and the Partnership shall not recognize the same for the purposes of
making  allocations  or  distributions  of  profits,  losses,  return of Capital
Contribution or other  distribution  with respect to such Units or part thereof.
The  Partnership  may enforce this  provision  either  directly or indirectly or
through its agents by entering an appropriate  stop-transfer  order on its books
or  otherwise  refusing to register  or transfer or permit the  registration  or
transfer on its books of any  proposed  transfers  not in  accordance  with this
Article IX.

                                    ARTICLE X

                      DISSOLUTION AND SUCCESSOR PARTNERSHIP
                      -------------------------------------

         10.1  Dissolution of Partnership.  The  Partnership  shall be dissolved
               --------------------------
upon the earlier occurrence of any of the following events:

         A.  The  bankruptcy,  insolvency,  liquidation  or  dissolution  of the
General Partner;

         B. Upon the written consent of all Partners;

                                       29
<PAGE>

         C.  The  sale  of  all  or  substantially  all  of  the  assets  of the
Partnership;

         D. Pursuant to the provisions of Article II and IX hereof; or

         E. Otherwise by operation of law.

         10.2 Successor  Partnership.  If the  Partnership is dissolved or to be
              ----------------------
dissolved  for any reason  specified in Section  10.1,  and any Limited  Partner
shall deliver to each of the other Limited  Partners  within thirty (30) days of
such event,  a written notice  demanding  that a meeting of Limited  Partners be
held at the principal place of business of the Partnership at the time set forth
in such notice  (which shall be not less than ten (10) nor more than thirty (30)
days  after  the date of such  notice)  the  Limited  Partners  shall  hold such
meeting.  Limited Partners attending such meeting, either in person or by proxy,
and having an aggregate Limited Partner  Percentage of not less than one hundred
percent (100%) may continue the business of the Partnership and reconstitute the
Partnership as a successor limited partnership with a new General Partner having
the  capacity  to serve as such  and who is able to meet any  requirements  then
imposed by the Code or any rulings or  regulations  thereunder  with  respect to
general  partners  of limited  partnerships  in order that the  Partnership  not
become an association  taxable as a corporation.  If such Limited Partners shall
exercise  such right to continue  the  business of the  Partnership,  the person
appointed  by them as the new General  Partner and each of the Limited  Partners
shall  execute,  acknowledge  and file a  Limited  Partnership  Certificate  and
Agreement.  The Limited  Partnership  Certificate  and  Agreement  shall contain
substantially the same provisions as those contained herein, except that the new
General  Partner  shall be  allocated  such  share of the  profits,  losses  and
distributions  of the  Partnership as the Limited  Partners  appointing such new

                                       30
<PAGE>

General  Partner shall  determine.  Such new General  Partner shall indicate his
acceptance  of the  appointment  by the  execution of such  Limited  Partnership
Certificate and Agreement.

         10.3  Procedure.  Unless the Business of the  Partnership  is continued
               ---------
pursuant to Section 10.2, upon the dissolution of the  Partnership,  the General
Partner or the person required by law to wind up the Partnership's affairs shall
cause the  cancellation  of this Agreement and shall liquidate the assets of the
Partnership and apply the proceeds of such  liquidation in the order of priority
provided in Article VIII of this Agreement, unless the law requires distribution
be made in a different order in which case the assets of the  Partnership  shall
be distributed in accordance with the law.

                                   ARTICLE XII

                            LIMITED POWER OF ATTORNEY
                            -------------------------

         12.1  Appointment.  Each Limited Partner hereby makes,  constitutes and
               -----------
appoints the General Partner his true and lawful attorney-in-fact for him and in
his name, place and stead and for his use and benefit, from time to time:

         A. To make all agreements amending this Agreement,  as now or hereafter
amended,  that may be appropriate to reflect or effect,  as the case may be, the
following:

         (1)      A change of the name or the location of the principal place of
                  business of the Partnership;

         (2)      The transfer or acquisition of any Units by a Limited  Partner
                  in any manner permitted by this Agreement;

         (3)      A  person  becoming  a  Substitute   Limited  Partner  of  the
                  Partnership as permitted by this Agreement;

         (4)      A change in any  provision of this  Agreement  effected by the
                  exercise by any person of any right or rights hereunder;

                                       31
<PAGE>

         (5)      The dissolution of the Partnership pursuant to this Agreement;

         (6)      Such amendments which are of an inconsequential  nature and do
                  not affect the rights of the Limited  Partners in any material
                  respect;

         (7)      To execute such certificates, instruments and documents as may
                  be required or may be appropriate  in connection  with the use
                  of the name of the Partnership by the Partnership; and/or

         (8)      To execute such certificates, instruments and documents as may
                  be required,  or as may be appropriate for the Limited Partner
                  to make to reflect:

                  (a)      A  change  in the  name or  address  of such  Limited
                           Partner;

                  (b)      Any changes in or  amendments of this  Agreement,  or
                           pertaining to the  Partnership,  of any kind referred
                           to in this Section 12.1; and

                  (c)      Any other changes in or amendments of this  Agreement
                           but  only if and when the  consent  thereto  has been
                           obtained   from  the  General   Partner  and  Limited
                           Partners,  having the aggregate  Limited  Partnership
                           Percentage required by Section 13.6 hereof.

         B. Each of the agreements, certificates, instruments and documents made
pursuant to Section  12.1(A)  shall be in such form as the  General  Partner and
counsel for the  Partnership  shall deem  appropriate.  The powers  conferred by
Section 12.1(A) to execute agreements, certificates,  instruments and documents,
shall be deemed to include without  limitation the powers to sign,  acknowledge,
swear to, verify, deliver, file, record or publish the same.

         C.  Each  Limited  Partner  authorizes  the  General  Partner  as  such
attorney-in-fact  to take any further  action  which the General  Partner  shall
consider  necessary or advisable in connection with any action taken pursuant to
this Section  12.1 hereby  giving the General  Partner as such  attorney-in-fact
full  power  and  authority  to do and  perform  each  and  every  act or  thing
whatsoever  requisite  or  advisable  to be done in and about any  action  taken
pursuant to this Section 12.1 as fully as such Limited Partner

                                       32
<PAGE>

might or could do if personally present, and hereby ratifying and confirming all
that the General Partner as such attorney-in-fact  shall lawfully do or cause to
be done by virtue of this Section.

         12.2 Irrevocability;  Manner of Exercise. The power of attorney granted
              -----------------------------------
pursuant to Section 12.1:

         A. Is a special  power of  attorney  coupled  with an  interest  and is
irrevocable;

         B. May be exercised by the General Partner as such  attorney-in-fact by
listing  all of the  Limited  Partners  executing  any  agreement,  certificate,
instrument  or document  with the single  signature of the President or any Vice
President of the General Partner acting as attorney-in-fact for all of them; and

         C. Shall survive the transfer by a Limited  Partner of all or a portion
of his interest in the Partnership,  except that where the purchaser, transferee
or assignee  thereof  with the  consent of the General  Partner is admitted as a
Substitute Limited Partner, the power of attorney shall survive the transfer for
the sole purpose of enabling such  attorney-in-fact to execute,  acknowledge and
file any such agreement, certificate, instrument or document necessary to effect
such substitution.

                                  ARTICLE XIII

                            MISCELLANEOUS PROVISIONS
                            ------------------------

         13.1 Notices. All notices or other communications required or permitted
              -------
to be  given  pursuant  to  the  Agreement  shall  in the  case  of  notices  or
communications  required or  permitted  to be given to Limited  Partners,  be in
writing  and  shall  be  considered  as  properly  given  or made if  personally
delivered or if mailed by United  States  certified or registered  mail,  return
receipt  requested,  postage  prepaid,  or if  sent

                                       33
<PAGE>

by prepaid telegram, and addressed to such Limited Partner's address for notices
as it appears on the records of the  Partnership,  and in the case of notices or
communications  required or permitted to be given to the General Partner,  shall
be in writing and shall be  considered  as properly  given or made if personally
delivered or if mailed by United  States  certified or registered  mail,  return
receipt  requested,  postage  prepaid,  addressed to the General  Partner at the
principal place of business of the  Partnership.  Any Limited Partner may change
his address for notices by giving notice in writing, stating his new address for
notices, to the General Partner,  and the General Partner may change its address
for notices by giving such notice to all  Limited  Partners.  Commencing  on the
tenth (10th) day after the giving of such notice,  such newly designated address
shall  be such  Partner's  address  for the  purpose  of all  notices  or  other
communications required or permitted to be given pursuant to the Agreement.

         13.2 Choice of Law. This  Agreement and all rights and  liabilities  of
              -------------
the  parties  hereto  with  reference  to the  Partnership  shall be subject to,
construed in  accordance  with and governed by the laws of the State of Florida.
To the extent that any provision hereof is in contravention  with the Law, as in
effect from time to time, the provisions of the Law shall  supersede and replace
any  provision  herein  which is in  contravention  thereof.  Additionally,  the
appropriate  forum and  jurisdiction for any legal action shall be the Courts of
the  County of  Broward,  State of  Florida,  and each  party  consents  to such
jurisdiction.

         13.3 Titles and Captions. All article, section and subsection titles or
              -------------------
captions  contained in this Agreement are inserted for convenience  only and are
not deemed part of the text hereof.

                                       34
<PAGE>

         13.4  Sole   Agreement.   This   Agreement   constitutes   the   entire
               ----------------
understanding of the parties hereto with respect to the subject matter hereof.

         13.5 Execution in  Counterparts.  This Agreement may be executed in any
              --------------------------
number of counterparts with the same effect as if all parties had all signed the
same document. All counterparts shall be construed together and shall constitute
one (1) agreement.

         13.6  Amendments.  The General  Partner  may submit to the  Partners in
               ----------
writing the text of any proposed  amendment to this Agreement and a statement by
the proposer of the purpose of such amendment. The General Partner shall include
in any  submission  its view as to the proposed  amendment.  Any such  amendment
shall be adopted if, within ninety (90) days after the notice of such  amendment
is given to all Partners, the General Partner shall have approved such amendment
in  writing  and shall have  received  written  approval  thereof  from  Limited
Partners  having a Limited  Partnership  Percentage  aggregating  eighty percent
(80%) or more.  A written  approval  may not be  withdrawn  or voided once it is
filed with the General Partner. A Limited Partner filing a written objection may
thereafter file a valid written  approval.  The date of adoption of an amendment
pursuant to this  Section  13.6 shall be the date on which the  General  Partner
shall have  received the requisite  written  approvals.  Any proposed  amendment
which is not adopted may be resubmitted.  In the event any proposed amendment is
not adopted,  any written  approval  received with respect  thereto shall become
void and shall not be effective with respect to any resubmission of the proposed
amendment.  Notwithstanding  the  foregoing  provisions of this Section 13.6, no
amendment may, without the prior written approval of all Partners;

                                       35
<PAGE>

         A. Enlarge the obligations of any Partner under this Agreement;

         B.  Enlarge  the  liability  of the  General  Partner  to  the  Limited
Partners;

         C. Amend this Article 13.6;

         D.  Alter  the  Partnership  in  such  manner  as  will  result  in the
Partnership  no longer being  classified  as a limited  partnership  for Federal
income tax purposes; or

         E. Reduce any requirements for the prior approval of Substitute Limited
Partners set forth in this Agreement.

         13.7  Waiver  of  Action  for  Partition.  Each of the  parties  hereto
               ----------------------------------
irrevocably waives during the term of the Partnership any right that he may have
to  maintain  any action for  partition  with  respect  to the  property  of the
Partnership.

         13.8  Assignability.  Subject to the  restrictions  on  transferability
               -------------
contained  herein,  each  and  all  of  the  covenants,  terms,  provisions  and
agreements  herein  contained  shall be binding upon and inure to the benefit of
the  successors,  assigns and legal  representatives  of the respective  parties
hereto.

         13.9 Independent  Activities.  Except as otherwise provided herein, the
              -----------------------
General Partner and its  affiliates,  and its (and its  affiliates'),  officers,
directors,   shareholders   and  employees,   and  each  Limited   Partner  may,
notwithstanding  the existence of this Agreement,  engage in whatever activities
they  choose,  whether  the  same  be  competitive  with  the  Business  of  the
Partnership  or otherwise,  without  having or incurring any obligation to offer
any interest in such activities to any party hereto.  Neither this Agreement nor
any activity undertaken pursuant hereto shall prevent such persons from engaging
in such activities,  and as a material part of the consideration for the General
Partner's execution hereof, each Limited Partner hereby waives,

                                       36
<PAGE>

relinquishes and renounces any such right or claim of participation.  Nothing in
the foregoing,  however, shall be deemed to reduce any of the liabilities of the
General Partner under this Agreement.

         13.10 Right to Rely on Authority of General Partner.  No person dealing
               ---------------------------------------------
with the General  Partner  shall be required to determine  its authority to make
any  undertaking  on behalf of the  Partnership,  nor to  determine  any fact or
circumstance bearing upon the existence of its authority.

         13.11 Arbitration.  Except as otherwise provided in this Agreement, any
               -----------
dispute or  controversy  arising out of or relating to this  Agreement  shall be
determined and settled by arbitration in the City of Fort  Lauderdale,  Florida,
in accordance  with the rules of the American  Arbitration  Association  then in
effect, and judgment upon the award rendered by the arbitrator(s) may be entered
in any court of competent jurisdiction.  Except as set forth in Sections 5.4 and
5.5, the expenses of the  arbitration  shall be borne  equally by the parties to
the arbitration.

         13.12 Gender and Number.  Whenever the context requires,  the gender of
               -----------------
all words used herein shall include the  masculine,  feminine and neuter and the
singular and plural of all words shall include the singular and plural.

         13.13 Meetings.  The  Partnership  shall hold an annual meeting in each
               --------
fiscal  year of its  existence  on such  date and at such  place and time as the
General Partner shall determine,  notice of the date and time to be given to all
Limited  Partners  whose  addresses  are on record with the General  Partner not
later than fourteen (14) days prior to such date. Notwithstanding the foregoing,
at any time or from time to time,  Limited  Partners  having a  Limited  Partner
Percentage  aggregating fifty percent (50%) may by

                                       37
<PAGE>

written notice to the General Partner specifying in general terms the subject to
be considered require the General Partner to call, or the General Partner may on
its own motion call, a special  meeting of the Limited  Partners and the General
Partner  shall within ten (10) days after any such notice is given,  give notice
of such special meeting in the same manner as is required for the annual meeting
including in such notice a copy of the notice  requiring  the call.  Any Limited
Partner  shall have the right,  upon notice in  writing,  to require the General
Partner  to  furnish  by  mail a list of the  names,  addresses  and  respective
interest in the Partnership of all other Limited  Partners in the Partnership as
shown on the records of the  Partnership at the time of the notice.  Any Limited
Partner,  or his  representative,  shall have the right to inspect  and copy the
names and addresses of all other Limited Partners in the Partnership.

         13.14  Severability.  If  any  provision  of  this  Agreement,  or  the
                ------------
application  thereof,  shall,  for any reason and to any  extent,  be invalid or
unenforceable,  or contrary to law,  the  remainder  of this  Agreement  and the
application  of such  provision to other persons or  circumstances  shall not be
affected thereby, but rather shall be enforced to the maximum extent permissible
under applicable law.

         IN WITNESS WHEREOF, this Limited Partnership  Certificate and Agreement
has been sworn to and executed as of the date above written.

                                            GENERAL PARTNER:
                                            FLANIGAN'S ENTERPRISES, INC.

/w/                                     By: /s/ Jeffrey D. Kastner, as Secretary
--------------------------------            ------------------------------------
                                                Jeffrey D. Kastner, Secretary

/w/
--------------------------------

                                       38
<PAGE>

STATE OF FLORIDA  )
                  ) ss:
COUNTY OF BROWARD )

         The  foregoing  instrument  was  acknowledged  before  me this  date by
JEFFREY D. KASTNER,  as Secretary of FLANIGAN'S  ENTERPRISES,  INC. on behalf of
the said  corporation.  He is well known to me or produced  ________________  as
identification.

         WITNESS  my hand and  official  seal on this the 12th day of  December,
                                                          ----
2006.

                                                /s/ Louis Dalessandris
                                                --------------------------------
                                                NOTARY PUBLIC - State of Florida

My commission expires:

            SEE SIGNATURE PAGES FOR LIMITED PARTNERS ATTACHED HERETO
                     (Signature Pages Intentionally Omitted)

                                       39ex_10-1.htm

                                                                                       [Executives]   

    

     

    ESSEX
      PROPERTY TRUST, INC.

    ESSEX
      PORTFOLIO, L.P.

    2007
      OUTPERFORMANCE PLAN

    AWARD
      AGREEMENT

     

    Name
      of
      Grantee:    (“Grantee”)

    No. of
      LTIP Units:

    Participation
      Percentage:

    Grant
      Date:         ____________________,
      2007

     

    RECITALS

     

    A.  The
      Grantee is an executive of Essex Property Trust, Inc., a Maryland corporation
      (the “Company”), which is the general partner of Essex Portfolio, L.P., a
      California limited partnership through which the Company conducts substantially
      all of its operations (“EPLP”).

     

    B.  EPLP
      has
      adopted the 2007 Outperformance Plan (the “Outperformance Plan”) to provide the
      Company’s executives with incentive compensation.  The Outperformance Plan
      was adopted effective as of December 4, 2007 by the Board of Directors of the
      Company (the “Board”). The Board has delegated to the Compensation Committee of
      the Board (the “Committee”) the authority to administer the Outperformance Plan,
      including the authority to grant LTIP Units (as defined herein).  This
      award agreement (this “Agreement”) evidences an award to the Grantee under the
      Outperformance Plan (the “Award”), which is subject to the terms and conditions
      set forth herein.

     

    C.  The
      Grantee was selected by the Committee to receive the Award.  The
      Committee, effective as of December 4, 2007, caused EPLP to (1) issue to
      the Grantee the number of LTIP Units (as defined herein) set forth above and
      (2) to award the Grantee the percentage of the Outperformance Pool (as
      defined herein) set forth above.

     

    NOW,
      THEREFORE, the Company, EPLP and the Grantee agree as
      follows:

     

    1.  Administration.  The
      Outperformance Plan and all awards thereunder, including this Award, shall
      be
      administered by the Committee, which in the administration of the Outperformance
      Plan shall have all the powers and authority it has in the administration of
      the
      2004 Plan as set forth in the 2004 Plan.

     

    2.  Definitions.  Capitalized
      terms used herein without definitions shall have the meanings given to those
      terms in the 2004 Plan. In addition, as used herein:

     

    “2004
      Plan” means the Essex Property Trust, Inc. 2004 Stock Incentive Plan, as
      amended, modified or supplemented from time to time.

    
      
         

      

      
         

        
          

        

      

    

    “Additional
      Share Baseline Value” means, with respect to an Additional Share, the gross
      proceeds received by the Company or EPLP upon the issuance of such Additional
      Share, which amount shall be deemed to equal the price to the public if such
      Additional Share is issued in a public offering or, if such Additional Share
      is
      issued in exchange for assets or upon the acquisition of another entity, the
      cash value imputed to such Additional Share for purposes of such transaction
      by
      the parties thereto, as determined by the Committee, or, if no such value can
      be
      imputed, the Common Stock Price on the date of issuance.

     

    “Additional
      Shares” means (without double counting) the sum of (A) the number of shares
      of Common Stock plus (B) the product of the Conversion Factor then in effect
      multiplied by the number of Units (other than those issued to the Company),
      in
      the case of each (A) and (B), to the extent issued after December 4, 2007 and
      on
      or before the Valuation Date in a capital raising transaction, in exchange
      for
      assets or upon the acquisition of another entity, but specifically excluding,
      without limitation, (i) shares of Common Stock issued upon exercise of stock
      options or upon the exchange (directly or indirectly) of Z Units or other Units
      issued to employees, non-employee directors, consultants, advisors or other
      person or entities as incentive compensation, (ii) restricted shares of Common
      Stock issued to employees or other persons or entities in exchange for services
      provided to the Company, (iii) currently unvested restricted shares of Common
      Stock awarded to employees or other person or entities in exchange for services
      provided as they become vested, (iv) Common Units issued upon conversion
      of

    Z
      Units
      or other Units issued to employees, non-employee directors, consultants,
      advisors or other persons or entities as compensation, and (v) Z Units or other
      Units issued to employees, non-employee directors, consultants, advisors or
      other persons or entities as compensation.

    

     “Agreement”
      has the meaning set forth in Recital B.

     

    “Award”
      has the meaning set forth in Recital B.

     

    “Award
      LTIP Units” has the meaning set forth in Section 3
      hereof.

     

    “Baseline”
      means, as of the Valuation Date, an amount representing (a) the Baseline
      Value, multiplied by (I) the Initial Shares less any Initial Shares that have
      been redeemed or retired between December 4, 2007 and the Valuation Date, and
      (II) the sum of 100% plus the Target Return Percentage, plus
      (b) with respect to each Additional Share that has not been redeemed or
      retired prior to the Valuation Date, the product of (I) the Additional Share
      Baseline Value of such Additional Share, multiplied by (II) the sum of
      (A) 100% plus (B) the product of the Target Return Percentage,
      multiplied by a fraction the numerator of which is the number of days prior
      to
      and including such Valuation Date during which such Additional Share has been
      outstanding and the denominator of which is the number of days from and
      including December 4, 2007 to and including the Measurement Date;
provided, that if the Valuation Date occurs prior to December 3, 2010
      (other than as a result of clause (iii) of the definition of the Valuation
      Date), then for purposes of this definition in connection with the calculation
      of the Outperformance Pool as of the Valuation Date, the Measurement Date shall
      be the Valuation Date and the Target Return Percentage shall be multiplied
      by
      the Fraction.

     

    “Baseline
      Value” means $98.91, which is the per share closing price of the Common
      Stock on the Effective Date.

    
      
         

      

      
        2

        
          

        

      

    

    “Board”
      has the meaning set forth in Recital B.

     

    “Change
      of Control” has the meaning assigned to it in the Seventh Amendment to the
      Partnership Agreement.

     

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

     

    “Committee”
      has the meaning set forth in Recital B.

     

    “Common
      Stock” means the Company’s Common Stock, par value $0.0001 per share, either
      currently existing or authorized hereafter.

     

    “Common
      Stock Price” means, as of a particular date, the average of the Fair Market
      Values of one share of the Common Stock for the twenty (20) days ending on,
      and
      including, such date (or, if such date is not a trading day, the most recent
      trading day immediately preceding such date); provided, however, that
      if such date is the date upon which a Change of Control occurs, the Common
      Stock
      Price as of such date shall be equal to the fair market value in cash, as
      determined by the Committee, of the total consideration paid or payable in
      the
      transaction resulting in the Change of Control for one share of Common
      Stock.

     

    “Common
      Unit” has the meaning assigned to it in the Partnership
      Agreement.

     

    “Company”
      has the meaning set forth in Recital A.

     

    “Conversion
      Factor” has the meaning given to that term in the Partnership
      Agreement.

     

    “Disability”
      has the meaning given to that term in the 2004 Plan.

     

     “Effective
      Date” means December 4, 2007.

     

    “EPLP”
      has the meaning set forth in Recital A.

     

    “Exchange
      Act” means the Securities Exchange Act of 1934, as amended.

     

    “Fair
      Market Value” has the meaning given to that term in the 2004
      Plan.

     

    “Family
      Member” of a Grantee, means the Grantee’s child, stepchild, grandchild,
      parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
      mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law,
      or
      sister-in-law, including adoptive relationships, any person sharing the
      Grantee’s household (other than a tenant of the Grantee), a trust in which these
      persons (or the Grantee) have more than 50 percent of the beneficial interest,
      a
      foundation in which these persons (or the Grantee) control the management of
      assets, and any other entity in which these persons (or the Grantee) own more
      than 50 percent of the voting interests.

     

    “Fraction”
      means the number of whole calendar months that have elapsed between the
      Effective Date and the Valuation Date divided by 36.

    
      
         

      

      
        3

        
          

        

      

    

    “Initial
      Shares” means   shares of Common Stock and Units (other
      those held by the Company, with the number of Units multiplied by the Conversion
      Factor in effect as of the Effective Date) which are deemed to be outstanding
      as
      of the Effective Date.  For the avoidance of doubt, such number
      excludes (i) shares of Common Stock issuable upon exercise of stock options
      or
      upon the exchange (directly or indirectly) of Z Units or other Units issued
      to
      employees, non-employee directors, consultants, advisors or other persons or
      entities as incentive compensation, (iii) currently unvested restricted shares
      of Common Stock awarded to employees or other persons or entities in exchange
      for services provided to the Company, and (iv) Z Units or other Units issued
      to
      employees, non-employee directors, consultants, advisors or other persons or
      entities as incentive compensation.

     

    “LTIP
      Units” means an LTIP Unit of limited partnership interest in EPLP with the
      rights set forth in the Partnership Agreement and issued pursuant to this
      Agreement as profits interests under the Outperformance Plan.

     

    “Maximum
      Outperformance Pool Amount” means, as of the Valuation Date, $25,000,000,
      multiplied by the Total Participation Percentage as of the Valuation
      Date.

     

    “Measurement
      Date” means December 3, 2010, except as otherwise defined for purposes of
      the definition of Baseline in certain circumstances, as described in such
      definition.

     

    “OPP
      Unit Equivalent” has the meaning set forth in Section 3
      hereof.

     

    “Outperformance
      Plan” has the meaning set forth in Recital B.

     

    “Outperformance
      Pool” means, as of the Valuation Date, a dollar amount calculated as
      follows: subtract the Baseline from the Total Return, in each case as of such
      Valuation Date, and multiply the resulting amount (or, if the resulting amount
      would be negative, zero) by 10%; provided, however, that in no event
      shall the Outperformance Pool as of such Valuation Date exceed the Maximum
      Outperformance Pool Amount as of such Valuation Date. 

     

    “Participation
      Percentage” means, as of the Valuation Date, the Grantee’s share of the
      Outperformance Pool as set forth above in the recitals in this
      Agreement.

     

    “Partnership
      Agreement” means the First Amended and Restated Agreement of Limited
      Partnership of EPLP, entered into as of September 30, 1997, among the Company
      and the limited partner party thereto, as amended from time to
      time.

     

    “Partnership
      Units” means Partnership Units as such term is defined in the Partnership
      Agreement.

     

    “Securities
      Act” shall mean the Securities Act of 1933, as amended.

     

    “Target
      Return Percentage” means 30%, except as otherwise defined for purposes of
      the definition of Baseline in certain circumstances, as described in such
      definition.

     

    “Total
      Participation Percentage” means the aggregate initial participation
      percentage of all awards granted and not forfeited under the Outperformance
      Plan.

    
      
         

      

      
        4

        
          

        

      

    

    “Total
      Return” means (without double counting), as of a particular date, an amount
      equal to the sum of (a) the Total Shares, multiplied by the Common Stock
      Price as of such date, plus (b) an amount equal to the sum of the total of
      all dividends and other distributions actually paid between December 4, 2007
      and
      such date (excluding dividends and distributions paid in the form of additional
      shares of Common Stock or Units), in respect of (i) the Initial Shares and
      (ii)
      the Additional Shares if and to the extent such Additional Shares were
      outstanding on the record date with respect to the applicable dividend or
      distribution so paid.

     

    “Total
      Shares” means (without double counting), as of a particular date of
      determination, the sum of: (a) the number of shares of Common Stock
      included in the Initial Shares and the Additional Shares, plus (b) the
      product of the Conversion Factor then in effect multiplied by the number of
      Units included in the Initial Shares and Additional Shares (other than those
      owned by the Company), in the case of each (a) and (b), to the extent
      outstanding on the Valuation Date.

     

    “Transfer”
      has the meaning set forth in Section 6 hereof.

     

    “Units”
      means all Partnership Units, outstanding or issuable upon the conversion,
      exercise, exchange or redemption of any securities of any kind convertible,
      exercisable, exchangeable or redeemable for Common Units (other than LTIP Units
      issued under this Agreement or LTIP Units issued under any similar agreement
      prior to the determination of any performance based vesting hurdles with respect
      thereto).

     

    “Valuation
      Date” means the earliest of (i) the Measurement Date, (ii) the date upon
      which a Change of Control shall occur, and (iii) the last day of a 30
      consecutive calendar day period, which occurs in the six-month period
      immediately preceding the Measurement Date, during which on each day in that
      30-day period, the Outperformance Pool would have reached the Maximum
      Outperformance Pool Amount if such day had been the Valuation
      Date. 

     

    “Z
      Units” means the Series Z Incentive Units and Series Z-1 Incentive Units, as
      these terms are defined in the Partnership Agreement.

     

    3.  Outperformance
      Award.

     

    (a)  The
      Grantee is hereby granted an Award consisting of the number of LTIP Units set
      forth above (“Award LTIP Units”), which (A) shall be subject to forfeiture or
      increase to the extent provided in this Section 3 as set forth below and (B)
      will be subject to vesting as provided in Sections 4 and 7 hereof.

     

    (b)  As
      soon
      as practicable following the Valuation Date, but as of the Valuation Date,
      the
      Committee shall determine the Outperformance Pool (if any) and then perform
      the
      following calculations with respect to this Award: Multiply (w) the
      Outperformance Pool calculated as of the Valuation Date by (x) the Grantee’s
      Participation Percentage as of the Valuation Date, then divide the result by
      the
      product of (y) the Common Stock Price calculated as of the Valuation Date,
      multiplied by (z) the Conversion Factor on the Valuation Date; the resulting
      number is hereafter referred to as the “OPP Unit
      Equivalent”;

    
      
         

      

      
        5

        
          

        

      

    

    (c)  If
      the
      OPP Unit Equivalent is smaller than the number of Award LTIP Units, then the
      Grantee, as of the Valuation Date, shall forfeit a number of Award LTIP Units
      equal to the difference and thereafter the term Award LTIP Units will refer
      only
      to the remaining Award LTIP Units that were not forfeited.  If the OPP Unit
      Equivalent is greater than the number of Award LTIP Units, then, upon the
      performance of such calculation:  (A) the Grantee, as of the Valuation
      Date, shall be automatically granted a number of additional LTIP Units equal
      to
      the difference, and such additional LTIP Units shall be added to the Award
      LTIP
      Units and thereby become part of this Award, (B) the Company and EPLP shall
      take
      such corporate or partnership action as is necessary to accomplish the grant
      of
      such additional LTIP Units, (C) the Grantee shall execute and deliver in
      connection with such grant such documents, comparable to the documents executed
      and delivered in connection with this Agreement, as the Company and/or EPLP
      reasonably request in order to comply with all applicable legal requirements,
      including, without limitation, federal and state securities laws and (D)
      thereafter the term Award LTIP Units will refer collectively to the Award LTIP
      Units prior to such additional grant plus such additional LTIP Units.  If
      the OPP Unit Equivalent is the same as the number of Award LTIP Units, then
      there will be no change to this Award.

     

    (d)  Any
      forfeitures by the Grantee shall be retained by the Company.

     

    4.  Termination
      of Grantee’s Position as Employee; Vesting; Change of
      Control.

     

    (a)  If
      at any
      time the Grantee shall cease to be an employee of the Company for any reason,
      then all Award LTIP Units that remain unvested at such time shall automatically
      and immediately be forfeited by the Grantee, except that in the case of the
      death or Disability of the Grantee, the provisions of Section 7 shall
      apply, and except as provided in Sections 4(c) hereof.

     

    (b)  The
      Award
      LTIP Units granted to Grantees shall vest as follows:  33% of the
      Award LTIP Units shall become vested on December 4, 2010, and an additional
      thirty-three percent (33%) and thirty-four percent (34%) of the Award LTIP
      Units
      shall become vested on each of the first (1st) and second (2nd) anniversaries
      thereof, respectively.

     

    (c)  Anything
      in Section 4(b) hereof to the contrary notwithstanding, all unvested Award
      LTIP
      Units that have not previously been forfeited shall vest immediately upon the
      occurrence of a Change of Control, or the Grantee’s death or
      Disability.

     

    5.  Distributions.  The
      Grantee holding the Award LTIP Units shall be entitled to receive distributions
      with respect to such Award LTIP Units to the extent provided for in the
      Partnership Agreement. 

     

    6.  Restrictions
      on Transfer.  None of the Award LTIP
      Units shall be sold, assigned, transferred, pledged, hypothecated, given away
      or
      in any other manner disposed of, encumbered, whether voluntarily or by operation
      of law (each such action a “Transfer”), or redeemed in accordance with the
      Partnership Agreement unless such Transfer is in connection with a Change of
      Control and such Transfer is in accordance with the applicable terms and
      conditions of the Partnership Agreement; provided that, upon the approval of,
      and subject to the terms and conditions specified by, the Committee, vested
      Award LTIP Units may be Transferred

    
      
         

      

      
        6

        
          

        

      

      and
        unvested Award LTIP Units that have been held for a period of at least two
        (2) years beginning on the date of grant specified above may be Transferred
        to the Grantee’s Family Members, provided that the transferee agrees in writing
        with the Company and EPLP to be bound by all of the terms and conditions
        of this
        Agreement.  In connection with any Transfer of Award LTIP Units, EPLP may
        require the Grantee to provide an opinion of counsel, satisfactory to EPLP,
        that
        such Transfer is in compliance with all federal and state securities laws
        (including, without limitation, the Securities Act).  Any attempted
        Transfer of Award LTIP Units not in accordance with the terms and conditions
        of
        this Section 6 shall be null and void, and EPLP shall not reflect on its
        records any change in record ownership of any LTIP Units as a result of any
        such
        Transfer, shall otherwise refuse to recognize any such Transfer and shall
        not in
        any way give effect to any such Transfer of any LTIP Units.   This
        Agreement is personal to the Grantee, is non-assignable and is not transferable
        in any manner, by operation of law or otherwise, other than by will or the
        laws
        of descent and distribution.

    

     

    7.  Death
      or Disability.

     

    (a)  Notwithstanding
      any other provision herein, if, prior to the Valuation Date, the Grantee shall
      cease to be an employee of the Company as a result of his death or Disability,
      then (i) with respect to the Grantee the calculations provided in
      Section 3 shall be performed with respect to this Award immediately as if a
      Change of Control had occurred (with respect to the Grantee only) on the date
      of
      his death or Disability and (ii) all of the Award LTIP Units comprising
      this Award (after giving effect to the issuance of additional LTIP Units or
      forfeiture of Award LTIP Units pursuant to Section 3) shall automatically
      and immediately vest.

     

    (b)  Notwithstanding
      any other provision herein, if, on or after the Valuation Date, the Grantee
      shall cease to be an employee of the Company as a result of his death or
      Disability, then all of the Grantee’s Award LTIP Units shall automatically and
      immediately vest.

     

    8.  Changes
      in Capital Structure.  If (i) the
      Company shall at any time be involved in a merger, consolidation, dissolution,
      liquidation, reorganization, exchange of shares, sale of all or substantially
      all of the assets or stock of the Company or a transaction similar thereto,
      (ii) any stock dividend, stock split, reverse stock split, stock
      combination, reclassification, recapitalization, significant repurchases of
      stock or other similar change in the capital structure of the Company, or any
      distribution to holders of Common Stock other than regular cash dividends,
      shall
      occur or (iii) any other event shall occur which in the judgment of the
      Committee necessitates action by way of adjusting the terms of the Award, then
      the Committee shall take such action as in its discretion shall be necessary
      to
      maintain the Grantee’s rights hereunder so that they are substantially
      proportionate to the rights existing under this Agreement prior to such event,
      including, without limitation, adjustments in Award LTIP Units, Additional
      Shares, Baseline Value, dividends or distributions paid with respect to the
      Initial Shares and Additional Shares, Common Stock Price, Maximum Outperformance
      Pool Amount, Total Shares and Total Return.

     

    9.  Miscellaneous.

     

    (a)  Amendments.  This
      Agreement may be amended or modified only with the consent of EPLP acting
      through the Committee; provided that any amendment or 

    
      
         

      

      
        7

        
          

        
modification
        which adversely affects the Grantee must be consented to by the Grantee to
        be
        effective as against him.

    

     

    (b)  Incorporation
      of Plan.  The provisions of the 2004
      Plan are hereby incorporated by reference as if set forth herein.  If and
      to the extent that any provision contained in this Agreement is inconsistent
      with the 2004 Plan, this Agreement shall govern.

     

    (c)  Effectiveness.  The
      Grantee shall be admitted as a partner of EPLP with beneficial ownership of
      the
      Award LTIP Units as of the grant date set forth above by (i) signing and
      delivering to EPLP a copy of this Agreement, and (ii) signing, as a Limited
      Partner, and delivering to EPLP a counterpart signature page to the Partnership
      Agreement (attached hereto as Exhibit A).  The Partnership
      Agreement shall be amended to reflect the issuance to the Grantee of the Award
      LTIP Units, whereupon the Grantee shall have all the rights of a Limited Partner
      of EPLP with respect to the number of LTIP Units specified above, as set forth
      in the Partnership Agreement, subject, however, to the restrictions and
      conditions specified herein and in the Partnership Agreement.

     

    (d)  Status
      of LTIP Units under the 2004 Plan.  The
      Award LTIP Units may, but need not, be granted as equity securities under the
      2004 Plan insofar as the Outperformance Plan has been established as an
      incentive program of EPLP.  The Company will have the right, as set
      forth in the Partnership Agreement, to issue shares of Common Stock in exchange
      for Common Units into which such Award LTIP Units may have been converted,
      pursuant to the Partnership Agreement, subject to certain limitations set forth
      in the Partnership Agreement, and such shares of Common Stock may be issued
      under the 2004 Plan.  The Grantee must be eligible to receive the Award
      LTIP Units in compliance with applicable federal and state securities laws
      and
      to that effect is required to complete, execute and deliver certain covenants,
      representations and warranties (attached hereto as Exhibit B). 
The Committee may, in its sole and absolute discretion, seek to have
      the LTIP
      Units become part of the 2004 Plan at a future time, whereby this Award may
      be
      considered an award under the 2004 Plan.  The Grantee acknowledges that if
      the Committee so elects, in its sole discretion, the Grantee will have no right
      to approve or disapprove such change.

     

    (e)  Legend.  The
      records of EPLP evidencing the Award LTIP Units shall bear an appropriate
      legend, as determined by EPLP in its sole discretion, to the effect that such
      LTIP Units are subject to restrictions as set forth herein and in the
      Partnership Agreement.

     

    (f)  Compliance
      With Law.  EPLP and the Grantee will
      make reasonable efforts to comply with all applicable securities laws.  In
      addition, notwithstanding any provision of this Agreement to the contrary,
      no
      LTIP Units will become vested or be paid at a time that such vesting or payment
      would result in a violation of any such law.

     

    (g)  Investment
      Representation.  The Grantee hereby
      makes the covenants, representations and warranties and set forth on
Exhibit B attached hereto.  All of such covenants, warranties
      and representations shall survive the execution and delivery of this Agreement
      by the Grantee.  EPLP will have no obligation to register under the
      Securities Act any LTIP Units or any other securities issued pursuant to this
      Agreement or upon conversion or exchange of LTIP Units.

    
      
         

      

      
        8

        
          

        

      

    

    (h)  Section 83(b) Election.  The
      Grantee hereby agrees to make an election to include in gross income in the
      year
      of transfer the Award LTIP Units pursuant to Section 83(b) of the Code
      substantially in the form attached hereto as Exhibit C to this
      Agreement and to supply the necessary information in accordance with the
      regulations promulgated thereunder.

     

    (i)  Section
      409A.  If and only to the extent that
      any compensation provided by this Agreement may result in the application of
      Section 409A of the Code, the Company in its sole discretion shall modify this
      Agreement with respect to such Grantee in order, where applicable:

     

    (i)  to
      exclude such compensation from the definition of “deferred compensation” within
      the meaning of such Section 409A of the Code, or

     

    (ii)  to
      comply
      with the provisions of Section 409A of the Code, other applicable provision(s)
      of the Code and/or any rules, regulations or other regulatory guidance issued
      under such statutory provisions;

     

    provided,
      however, that the Company makes no representation that the compensation
      or benefits provided under this Agreement will be exempt from Section 409A
      of
      the Code and makes no undertakings to preclude Section 409A of the Code from
      applying to the benefits provided under this Agreement.

     

    (j)  Severability.  In
      the event that one or more of the provisions of this Agreement may be
      invalidated for any reason by a court, any provision so invalidated will be
      deemed to be separable from the other provisions hereof, and the remaining
      provisions hereof will continue to be valid and fully enforceable.

     

    (k)  Governing
      Law.  This Agreement is made under, and
      will be construed in accordance with, the laws of the State of California,
      without giving effect to the principle of conflict of laws of such
      State.

     

    (l)  No
      Obligation to Continue Position as an Officer or to
      Employ.  Neither the Company nor any
      affiliate is obligated by or as a result of this Agreement to continue to have
      the Grantee as an officer or to employ the Grantee, and this Agreement shall
      not
      interfere in any way with the right of the Company or any affiliate to terminate
      the Grantee as an officer or employee at any time.

     

    (m)  Notices.  Notices
      hereunder shall be mailed or delivered to EPLP at its principal place of
      business and shall be mailed or delivered to the Grantee at the address on
      file
      with EPLP or, in either case, at such other address as one party may
      subsequently furnish to the other party in writing.

     

    (n)  Withholding
      and Taxes.  No later than the date as of
      which an amount first becomes includible in the gross income of the Grantee
      for
      income tax purposes or subject to Federal Insurance Contributions Act
      withholding with respect to the Award, the Grantee will pay to the Company
      or,
      if appropriate, any of its affiliates, or make arrangements satisfactory to
      the
      Committee regarding the payment of, any United States federal, state or local
      or
      foreign taxes of 

    
      
         

      

      
        9

        
          

        
any
        kind
        required by law to be withheld with respect to such amount.  The
        obligations of the Company under this Agreement will be conditional on such
        payment or arrangements, and the Company and its affiliates shall, to the
        extent
        permitted by law, have the right to deduct any such taxes from any payment
        otherwise due to the Grantee.

    

     

    (o)  Successors
      and Assigns.  This Agreement shall be
      binding upon EPLP’s successors and assigns, whether or not this Agreement is
      expressly assumed.

     

    [signature
      page follows]

     

    

    
       

      
        10

        
          

        

      

       

    

    IN
      WITNESS WHEREOF, the undersigned have caused this Award Agreement to be executed
      as of the 4th day of December 2007.

     

     

     

    

    
      	
               

            	
              ESSEX
                PROPERTY TRUST, INC.

            	 	 
	
               

            	
               

            	 	 
	
               

            	
               

            	 	 
	
               

            	
                      By:

            	
               

            	
               

            	 
	
               

            	
               

            	
              Name:
                Michael T. Dance

            	 	 
	
               

            	
               

            	
              Title:
                Executive Vice President and Chief Financial Officer

            	 	 
	
               

            	
               

            	 	 
	
               

            	
               

            	 	 
	
               

            	
              ESSEX
                PORTFOLIO, L.P.

            	 	 
	
               

            	
               

            	 	 
	
               

            	
              By:
                Essex Property Trust, Inc., its general partner

            	 	 
	
               

            	
               

            	 	 
	
               

            	
               

            	 	 
	
               

            	
               

            	
              By:

            	
               

            	
               

            	 
	
               

            	
               

            	
              Name:
                Michael T. Dance

            	
               

            	 
	
               

            	
               

            	
              Title:
                Executive Vice President and Chief Financial Officer

            	 	 
	
               

            	
               

            	 	 
	
               

            	
               

            	 	 
	
               

            	
              Grantee

            	 	 
	
               

            	
               

            	 	 
	
               

            	
               

            	 	 
	
               

            	
               

            	
               

            	 	 
	
               

            	
              Name:

            	 	 
	 	 	 	 	 	 	 	 	 	 

    

     

    
      
         

      

      
        11

        
          

        

      

       

    

    EXHIBIT A

     

    FORM OF
      LIMITED PARTNER SIGNATURE PAGE

     

    The
      Grantee, desiring to become one of the within named Limited Partners of Essex
      Portfolio, L.P., hereby becomes a party to the First Amended and Restated
      Agreement of Limited Partnership of Essex Portfolio, L.P., as amended through
      the date hereof (the “Partnership Agreement”).  The Grantee agrees
      that this signature page may be attached to any counterpart of Essex
      Portfolio, L.P.’s Partnership Agreement.

     

    Signature
      Line for Limited Partner:

     

    

    
      	
               

            	
               

            	 	 
	
               

            	
              Name:

            	
               

            	
               

            	 
	
               

            	
              Date: 
                December       , 2007

            	 	 
	
               

            	
               

            	 	 
	
               

            	
              Address
                of Limited Partner:

            	 	 
	
               

            	
               

            	
               

            	 	 
	
               

            	
               

            	
               

            	 	 
	 	 	 	 	 	 

    

     

    
      
         

      

      
        
          

        

      

       

    

    EXHIBIT B

     

    GRANTEE’S
      COVENANTS, REPRESENTATIONS AND WARRANTIES

     

    The
      Grantee hereby represents, warrants and covenants as follows:

     

    (a)           The
      Grantee has received and had an opportunity to review the following documents
      (the “Background Documents”):

     

    (i)           The
      latest Annual Report to Stockholders of Essex Property Trust, Inc., a Maryland
      corporation (the “Company”);

     

    (ii)           The
      Company’s Proxy Statement for its most recent Annual Meeting of
      Stockholders;

     

    (iii)           The
      Company’s Report on Form 10-K for the fiscal year most recently
      ended;

     

    (iv)           The
      Company’s Form 10-Q for the most recently ended quarter filed by the
      Company with the Securities and Exchange Commission since the filing of the
      Form 10-K described in clause (iii) above;

     

    (v)           Each
      of the Company’s Current Report(s) on Form 8-K, if any, filed since the end
      of the fiscal year most recently ended for which a Form 10-K has been filed
      by the Company;

     

    (vi)           First
      Amended and Restated Agreement of Limited Partnership of Essex Portfolio, L.P.,
      as amended (the “Partnership Agreement”);

     

    (vii)           The
      Essex Property Trust, Inc. 2004 Stock Incentive Plan (the “2004 Plan”);
      and

     

    (viii)                      The
      Company’s Articles of Amendment and Restatement, as amended.

     

    The
      Grantee also acknowledges that any delivery of the Background Documents and
      other information relating to the Company and Essex Portfolio, L.P., a
      California limited partnership (“EPLP”), prior to the determination by
      EPLP of the suitability of the Grantee as a holder of LTIP Units shall not
      constitute an offer of LTIP Units until such determination of suitability shall
      be made.

     

    (b)           The
      Grantee hereby represents and warrants that

     

    (i)           The
      Grantee either (A) is an “accredited investor” as defined in
      Rule 501(a) under the Securities Act of 1933, as amended (the
“Securities Act”), or (B) by reason of the business and financial
      experience of the Grantee, together with the business and financial experience
      of those persons, if any, retained by the Grantee to represent or advise him
      with respect to the grant to him of LTIP Units, the potential conversion of
      LTIP
      Units into

    
      
         

      

      
         

        
          

        

      

      Partnership
        Units of EPLP (the “Common Units”)  and the potential
        redemption of such Common Units for shares of Common Stock (“REIT
        Shares”), has such knowledge, sophistication and experience in financial and
        business matters and in making investment decisions of this type that the
        Grantee (I) is capable of evaluating the merits and risks of an investment
        in
        EPLP and potential investment in the Company and of making an informed
        investment decision, (II) is capable of protecting his own interest or has
        engaged representatives or advisors to assist him in protecting his interests,
        and (III) is capable of bearing the economic risk of such
        investment.

    

     

    (ii)           The
      Grantee understands that (A) the Grantee is responsible for consulting his
      own tax advisors with respect to the application of the U.S. federal income
      tax
      laws, and the tax laws of any state, local or other taxing jurisdiction to
      which
      the Grantee is or by reason of the award of LTIP Units may become subject,
      to
      his particular situation; (B) the Grantee has not received or relied upon
      business or tax advice from the Company, EPLP or any of their respective
      employees, agents, consultants or advisors, in their capacity as such;
      (C) the Grantee provides services to EPLP on a regular basis and in such
      capacity has access to such information, and has such experience of and
      involvement in the business and operations of EPLP, as the Grantee believes
      to
      be necessary and appropriate to make an informed decision to accept this Award
      of LTIP Units; and (D) an investment in EPLP and/or the Company involves
      substantial risks.  The Grantee has been given the opportunity to make a
      thorough investigation of matters relevant to the LTIP Units and has been
      furnished with, and has reviewed and understands, materials relating to EPLP
      and
      the Company and their respective activities (including, but not limited to,
      the
      Background Documents).  The Grantee has been afforded the opportunity to
      obtain any additional information (including any exhibits to the Background
      Documents) deemed necessary by the Grantee to verify the accuracy of information
      conveyed to the Grantee.  The Grantee confirms that all documents, records,
      and books pertaining to his receipt of LTIP Units which were requested by the
      Grantee have been made available or delivered to the Grantee.  The Grantee
      has had an opportunity to ask questions of and receive answers from EPLP and
      the
      Company, or from a person or persons acting on their behalf, concerning the
      terms and conditions of the LTIP Units. The Grantee has relied upon, and
      is making his decision solely upon, the Background Documents and other written
      information provided to the Grantee by EPLP or the
      Company.

     

    (iii)           The
      LTIP Units to be issued, Common Units issuable upon conversion of the LTIP
      Units
      and any REIT Shares issued in connection with the redemption of any such Common
      Units will be acquired for the account of the Grantee for investment only and
      not with a current view to, or with any intention of, a distribution or resale
      thereof, in whole or in part, or the grant of any participation therein, without
      prejudice, however, to the Grantee’s right (subject to the terms of the LTIP
      Units, the 2004 Plan and this Agreement) at all times to sell or otherwise
      dispose of all or any part of his LTIP Units, Common Units or REIT Shares in
      compliance with the Securities Act, and applicable state securities laws, and
      subject, nevertheless, to the disposition of his assets being at all times
      within his control.

     

    (iv)           The
      Grantee acknowledges that (A) neither the LTIP Units to be issued, nor the
      Common Units issuable upon conversion of the LTIP Units, have been registered
      under the Securities Act or state securities laws by reason of a specific
      exemption or exemptions from registration under the Securities Act and
      applicable state securities laws and, if such LTIP Units

    
      
         

      

      
         

        
          

        

      

      or
        Common
        Units are represented by certificates, such certificates will bear a legend
        to
        such effect, (B) the reliance by EPLP and the Company on such exemptions is
        predicated in part on the accuracy and completeness of the representations
        and
        warranties of the Grantee contained herein, (C) such LTIP Units or Common
        Units, therefore, cannot be resold unless registered under the Securities
        Act
        and applicable state securities laws, or unless an exemption from registration
        is available, (D) there is no public market for such LTIP Units or Common
        Units, and (E) neither EPLP nor the Company has any obligation or intention
        to register such LTIP Units or such Common Units under the Securities Act
        or any
        state securities laws or to take any action that would make available any
        exemption from the registration requirements of such laws, except, that,
        upon
        the redemption of the Common Units for REIT Shares, the Company may issue
        such
        REIT Shares under the 2004 Plan and pursuant to a Registration Statement
        on
        Form S-8 under the Securities Act, to the extent that (I) the Grantee is
        eligible to receive such REIT Shares under the 2004 Plan at the time of such
        issuance, (II) the Company has filed a Form S-8 Registration Statement with
        the Securities and Exchange Commission registering the issuance of such REIT
        Shares and (III) such Form S-8 is effective at the time of the issuance of
        such REIT Shares.  The Grantee hereby acknowledges that because of the
        restrictions on transfer or assignment of such LTIP Units acquired hereby
        and
        the Common Units issuable upon conversion of the LTIP Units which are set
        forth
        in the Partnership Agreement, the 2004 Plan or this Agreement, the Grantee
        may
        have to bear the economic risk of his ownership of the LTIP Units acquired
        hereby and the Common Units issuable upon conversion of the LTIP Units for
        an
        indefinite period of time.

    

     

    (v)           The
      Grantee has determined that the LTIP Units are a suitable investment for the
      Grantee.

     

    (vi)           No
      representations or warranties have been made to the Grantee by EPLP or the
      Company, or any officer, director, shareholder, agent, or affiliate of any
      of
      them, and the Grantee has received no information relating to an investment
      in
      EPLP or the LTIP Units except the information specified in Paragraph
      (b) above.

     

    (c)           So
      long as the Grantee holds any LTIP Units, the Grantee shall disclose to EPLP
      in
      writing such information as may be reasonably requested with respect to
      ownership of LTIP Units as EPLP may deem reasonably necessary to ascertain
      and
      to establish compliance with provisions of the Internal Revenue Code of 1986,
      as
      amended (the “Code”), applicable to EPLP or to comply with requirements
      of any other appropriate taxing authority.

     

    (d)           The
      Grantee hereby agrees to make an election under Section 83(b) of the
      Code with respect to the LTIP Units awarded hereunder, and has delivered with
      this Agreement a completed, executed copy of the election form attached hereto
      as Exhibit D .  The Grantee agrees to file the election (or to
      permit EPLP to file such election on the Grantee’s behalf) within
      thirty (30) days after the award of the LTIP Units hereunder with the IRS
      Service Center at which such Grantee files his personal income tax returns,
      and
      to file a copy of such election with the Grantee’s U.S. federal income tax
      return for the taxable year in which the LTIP Units are awarded to the
      Grantee.

    
      
         

      

      
         

        
          

        

      

    

    (e)           The
      address set forth on the signature page of this Agreement is the address of
      the Grantee’s principal residence, and the Grantee has no present intention of
      becoming a resident of any country, state or jurisdiction other than the country
      and state in which such residence is sited.

     

    
       

      
        
          

        

      

       

    

    EXHIBIT C

     

    ELECTION
      TO INCLUDE IN GROSS INCOME IN YEAR OF

    TRANSFER
      OF PROPERTY PURSUANT TO SECTION 83(B)

    OF
      THE INTERNAL REVENUE CODE

     

    The
      undersigned hereby makes an election pursuant to Section 83(b) of the
      Internal Revenue Code with respect to the property described below and supplies
      the following information in accordance with the regulations promulgated
      thereunder:

     

    1.           The
      name, address and taxpayer identification number of the undersigned
      are:

     

    
      	
              Name:                          
                

            	
               

            	
              (the
                “Taxpayer”)

            
	
               

            	
               

            
	
              Address:

            	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
              Social
                Security No./Taxpayer Identification No.:

            	
               

            	
               

            
	 	 	 	 	 	 

    

     

    2.           Description
      of property with respect to which the election is being made:

     

    The
      election is being made with respect to
                        
LTIP Units in Essex Portfolio, L.P. (the “Partnership”).

     

    3.           The
      date on which the LTIP Units were transferred is December 4, 2007.  The
      taxable year to which this election relates is calendar year 2007.

     

    4.           Nature
      of restrictions to which the LTIP Units are subject:

     

    
      	
               

            	
              (a)

            	
              With
                limited exceptions, until the LTIP Units vest, the Taxpayer may not
                transfer in any manner any portion of the LTIP Units without the
                consent
                of EPLP.

            

    

     

    
      	
               

            	
              (b)

            	
              The
                Taxpayer’s LTIP Units vest in accordance with the vesting provisions
                described in the Schedule attached hereto.  Unvested LTIP Units
                are forfeited in accordance with the vesting provisions described
                in the
                Schedule attached hereto.

            

    

     

    5.           The
      fair market value at time of transfer (determined without regard to any
      restrictions other than restrictions which by their terms will never lapse)
      of
      the LTIP Units with respect to which this election is being made was $0 per
      LTIP
      Unit.

     

    6.           The
      amount paid by the Taxpayer for the LTIP Units was $0 per LTIP
      Unit.

    
      
         

      

      
        
          

        

      

    

    7.           A
      copy of this statement has been furnished to Essex Portfolio, L.P. and Essex
      Property Trust, Inc.

     

    

    
      	
               

            	
              Dated:

            	
               

            	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
                Name:

            

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    SCHEDULE A

     

    Vesting
      Provisions of LTIP Units

     

    LTIP
      Units are subject to time-based and performance-based vesting with the final
      vesting percentage equaling the product of the time-based vesting percentage
      and
      the performance-based vesting percentage.  Performance-based vesting will
      be from 0-100% based on the Essex Property Trust, Inc.’s (the “Company’s”)
      per-share total return to shareholders for the period from December 4, 2007
      to
      December 3, 2010 (or earlier in certain circumstances).  Thirty-three
      percent (33%), thirty-three percent (33%) and thirty-four percent (34%) of
      the
      LTIP Units that remain outstanding following the determination of
      performance-based vesting will vest on December 4, 2010, and on the first and
      the second anniversaries thereof, respectively, provided that the Taxpayer
      remains an employee of the Company through such dates, subject to acceleration
      in the event of certain change of control transactions or termination of the
      Taxpayer’s status as an employee under specified circumstances.  Unvested
      LTIP Units are subject to forfeiture in the event of failure to vest if the
      Taxpayer is not employed on the applicable vesting date or performance-based
      vesting conditions are not satisfied.

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

                                                                                          [Non-Employee
        Directors]

       

      ESSEX
        PROPERTY TRUST, INC.

      ESSEX
        PORTFOLIO, L.P.

      2007
        OUTPERFORMANCE PLAN

      AWARD
        AGREEMENT

       

      Name
        of
        Grantee:          
(“Grantee”)

      No. of
        LTIP Units:

      Participation
        Percentage:

      Grant
        Date:          
__________________,
        2007

       

      RECITALS

       

      A.  The
        Grantee is a non-employee member of the Board of Directors (a “Non-Employee
        Director”) of Essex Property Trust, Inc., a Maryland corporation (the
“Company”), which is the general partner of Essex Portfolio, L.P., a California
        limited partnership through which the Company conducts substantially all
        of its
        operations (“EPLP”).

       

      B.  EPLP
        has
        adopted the 2007 Outperformance Plan (the “Outperformance Plan”) to provide the
        Company’s executives with incentive compensation and to provide Non-Employee
        Directors with compensation in lieu of their annual stock option grants. 
The Outperformance Plan was adopted effective as of December 4, 2007 by the
        Board of Directors of the Company (the “Board”).  The Board has
        delegated to the Compensation Committee of the Board (the Committee”) the
        authority to administer the Outperformance Plan, including the authority
        to
        grant LTIP Units (as defined herein).  This award agreement (this
“Agreement”) evidences an award to the Grantee under the Outperformance Plan
        (the “Award”), which is subject to the terms and conditions set forth
        herein.

       

      C.  The
        Committee, effective as of December 4, 2007, caused EPLP to (1) issue to
        the Grantee the number of LTIP Units (as defined herein) set forth above
        and
        (2) to award the Grantee the percentage of the Outperformance Pool (as
        defined herein) set forth above.

       

      NOW,
        THEREFORE, the Company, EPLP and the Grantee agree as
        follows:

       

      1.  Administration.  The
        Outperformance Plan and all awards thereunder, including this Award, shall
        be
        administered by the Committee, which in the administration of the Outperformance
        Plan shall have all the powers and authority it has in the administration
        of the
        2004 Plan as set forth in the 2004 Plan.

       

      2.  Definitions.  Capitalized
        terms used herein without definitions shall have the meanings given to those
        terms in the 2004 Plan. In addition, as used herein:

       

      “2004
        Plan” means the Essex Property Trust, Inc. 2004 Stock Incentive Plan, as
        amended, modified or supplemented from time to time.

      
        
           

        

        
           

          
            

          

        

      

      “Additional
        Share Baseline Value” means, with respect to an Additional Share, the gross
        proceeds received by the Company or EPLP upon the issuance of such Additional
        Share, which amount shall be deemed to equal the price to the public if such
        Additional Share is issued in a public offering or, if such Additional Share
        is
        issued in exchange for assets or upon the acquisition of another entity,
        the
        cash value imputed to such Additional Share for purposes of such transaction
        by
        the parties thereto, as determined by the Committee, or, if no such value
        can be
        imputed, the Common Stock Price on the date of issuance.

       

      “Additional
        Shares” means (without double counting) the sum of (A) the number of shares
        of Common Stock plus (B) the product of the Conversion Factor then in effect
        multiplied by the number of Units (other than those issued to the Company),
        in
        the case of each (A) and (B), to the extent issued after December 4, 2007
        and on
        or before the Valuation Date in a capital raising transaction, in exchange
        for
        assets or upon the acquisition of another entity, but specifically excluding,
        without limitation, (i) shares of Common Stock issued upon exercise of stock
        options or upon the exchange (directly or indirectly) of Z Units or other
        Units
        issued to employees, non-employee directors, consultants, advisors or other
        person or entities as incentive compensation, (ii) restricted shares of Common
        Stock issued to employees or other persons or entities in exchange for services
        provided to the Company, (iii) currently unvested restricted shares of Common
        Stock awarded to employees or other person or entities in exchange for services
        provided as they become vested, (iv) Common Units issued upon conversion
        of

      Z
        Units
        or other Units issued to employees, non-employee directors, consultants,
        advisors or other persons or entities as compensation, and (v) Z Units or
        other
        Units issued to employees, non-employee directors, consultants, advisors
        or
        other persons or entities as compensation.

      

       “Agreement”
        has the meaning set forth in Recital B.

       

      “Award”
        has the meaning set forth in Recital B.

       

      “Award
        LTIP Units” has the meaning set forth in Section 3
        hereof.

       

      “Baseline”
        means, as of the Valuation Date, an amount representing (a) the Baseline
        Value, multiplied by (I) the Initial Shares less any Initial Shares that
        have
        been redeemed or retired between December 4, 2007 and the Valuation Date,
        and
        (II) the sum of 100% plus the Target Return Percentage, plus
        (b) with respect to each Additional Share that has not been redeemed or
        retired prior to the Valuation Date, the product of (I) the Additional Share
        Baseline Value of such Additional Share, multiplied by (II) the sum of
        (A) 100% plus (B) the product of the Target Return Percentage,
        multiplied by a fraction the numerator of which is the number of days prior
        to
        and including such Valuation Date during which such Additional Share has
        been
        outstanding and the denominator of which is the number of days from and
        including December 4, 2007 to and including the Measurement Date;
provided, that if the Valuation Date occurs prior to December 3, 2010
        (other than as a result of clause (iii) of the definition of the Valuation
        Date), then for purposes of this definition in connection with the calculation
        of the Outperformance Pool as of the Valuation Date, the Measurement Date
        shall
        be the Valuation Date and the Target Return Percentage shall be multiplied
        by
        the Fraction.

       

      “Baseline
        Value” means $98.91, which is the per share closing price of the Common
        Stock on the Effective Date.

      
        
           

        

        
          2

          
            

          

        

      

      “Board”
        has the meaning set forth in Recital B.

       

      “Change
        of Control” has the meaning assigned to it in the Seventh Amendment to the
        Partnership Agreement.

       

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

       

      “Committee”
        has the meaning set forth in Recital B.

       

      “Common
        Stock” means the Company’s Common Stock, par value $0.0001 per share, either
        currently existing or authorized hereafter.

       

      “Common
        Stock Price” means, as of a particular date, the average of the Fair Market
        Values of one share of the Common Stock for the twenty (20) days ending on,
        and
        including, such date (or, if such date is not a trading day, the most recent
        trading day immediately preceding such date); provided, however, that
        if such date is the date upon which a Change of Control occurs, the Common
        Stock
        Price as of such date shall be equal to the fair market value in cash, as
        determined by the Committee, of the total consideration paid or payable in
        the
        transaction resulting in the Change of Control for one share of Common
        Stock.

       

      “Common
        Unit” has the meaning assigned to it in the Partnership
        Agreement.

       

      “Company”
        has the meaning set forth in Recital A.

       

      “Conversion
        Factor” has the meaning given to that term in the Partnership
        Agreement.

       

      “Disability”
        has the meaning given to that term in the 2004 Plan.

       

       “Effective
        Date” means December 4, 2007.

       

      “EPLP”
        has the meaning set forth in Recital A.

       

      “Exchange
        Act” means the Securities Exchange Act of 1934, as amended.

       

      “Fair
        Market Value” has the meaning given to that term in the 2004
        Plan.

       

      “Family
        Member” of a Grantee, means the Grantee’s child, stepchild, grandchild,
        parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
        mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law,
        or
        sister-in-law, including adoptive relationships, any person sharing the
        Grantee’s household (other than a tenant of the Grantee), a trust in which these
        persons (or the Grantee) have more than 50 percent of the beneficial interest,
        a
        foundation in which these persons (or the Grantee) control the management
        of
        assets, and any other entity in which these persons (or the Grantee) own
        more
        than 50 percent of the voting interests.

       

      “Fraction”
        means the number of whole calendar months that have elapsed between the
        Effective Date and the Valuation Date divided by 36.

      
        
           

        

        
          3

          
            

          

        

      

      “Initial
        Shares” means   shares of Common Stock and Units (other
        those held by the Company, with the number of Units multiplied by the Conversion
        Factor in effect as of the Effective Date) which are deemed to be outstanding
        as
        of the Effective Date.  For the avoidance of doubt, such number
        excludes (i) shares of Common Stock issuable upon exercise of stock options
        or
        upon the exchange (directly or indirectly) of Z Units or other Units issued
        to
        employees, non-employee directors, consultants, advisors or other persons
        or
        entities as incentive compensation, (iii) currently unvested restricted shares
        of Common Stock awarded to employees or other persons or entities in exchange
        for services provided to the Company, and (iv) Z Units or other Units issued
        to
        employees, non-employee directors, consultants, advisors or other persons
        or
        entities as incentive compensation.

       

      “LTIP
        Units” means an LTIP Unit of limited partnership interest in EPLP with the
        rights set forth in the Partnership Agreement and issued pursuant to this
        Agreement as profits interests under the Outperformance Plan.

       

      “Maximum
        Outperformance Pool Amount” means, as of the Valuation Date, $25,000,000,
        multiplied by the Total Participation Percentage as of the Valuation
        Date.

       

      “Measurement
        Date” means December 3, 2010, except as otherwise defined for purposes of
        the definition of Baseline in certain circumstances, as described in such
        definition.

       

      “OPP
        Unit Equivalent” has the meaning set forth in Section 3
        hereof.

       

      “Outperformance
        Plan” has the meaning set forth in Recital B.

       

      “Outperformance
        Pool” means, as of the Valuation Date, a dollar amount calculated as
        follows: subtract the Baseline from the Total Return, in each case as of
        such
        Valuation Date, and multiply the resulting amount (or, if the resulting amount
        would be negative, zero) by 10%; provided, however, that in no event
        shall the Outperformance Pool as of such Valuation Date exceed the Maximum
        Outperformance Pool Amount as of such Valuation Date. 

       

      “Participation
        Percentage” means, as of the Valuation Date, the Grantee’s share of the
        Outperformance Pool as set forth above in the recitals in this
        Agreement.

       

      “Partnership
        Agreement” means the First Amended and Restated Agreement of Limited
        Partnership of EPLP, entered into as of September 30, 1997, among the Company
        and the limited partner party thereto, as amended from time to
        time.

       

      “Partnership
        Units” means Partnership Units as such term is defined in the Partnership
        Agreement.

       

      “Securities
        Act” shall mean the Securities Act of 1933, as amended.

       

      “Target
        Return Percentage” means 30%, except as otherwise defined for purposes of
        the definition of Baseline in certain circumstances, as described in such
        definition.

       

      “Total
        Participation Percentage” means the aggregate initial participation
        percentage of all awards granted and not forfeited under the Outperformance
        Plan.

      
        
           

        

        
          4

          
            

          

        

      

      “Total
        Return” means (without double counting), as of a particular date, an amount
        equal to the sum of (a) the Total Shares, multiplied by the Common Stock
        Price as of such date, plus (b) an amount equal to the sum of the total of
        all dividends and other distributions actually paid between December 4, 2007 and
        such date (excluding dividends and distributions paid in the form of additional
        shares of Common Stock or Units), in respect of (i) the Initial Shares and
        (ii)
        the Additional Shares if and to the extent such Additional Shares were
        outstanding on the record date with respect to the applicable dividend or
        distribution so paid.

       

      “Total
        Shares” means (without double counting), as of a particular date of
        determination, the sum of: (a) the number of shares of Common Stock
        included in the Initial Shares and the Additional Shares, plus (b) the
        product of the Conversion Factor then in effect multiplied by the number
        of
        Units included in the Initial Shares and Additional Shares (other than those
        owned by the Company), in the case of each (a) and (b), to the extent
        outstanding on the Valuation Date.

       

      “Transfer”
        has the meaning set forth in Section 6 hereof.

       

      “Units”
        means all Partnership Units, outstanding or issuable upon the conversion,
        exercise, exchange or redemption of any securities of any kind convertible,
        exercisable, exchangeable or redeemable for Common Units (other than LTIP
        Units
        issued under this Agreement or LTIP Units issued under any similar agreement
        prior to the determination of any performance based vesting hurdles with
        respect
        thereto).

       

      “Valuation
        Date” means the earliest of (i) the Measurement Date, (ii) the date upon
        which a Change of Control shall occur, and (iii) the last day of a 30
        consecutive calendar day period, which occurs in the six-month period
        immediately preceding the Measurement Date, during which on each day in that
        30-day period, the Outperformance Pool would have reached the Maximum
        Outperformance Pool Amount if such day had been the Valuation
        Date. 

       

      “Z
        Units”
means the Series Z Incentive Units and Series Z-1 Incentive Units, as these
        terms are defined in the Partnership Agreement.

       

      3.  Outperformance
        Award.

       

      (a)  The
        Grantee is hereby granted an Award consisting of the number of LTIP Units
        set
        forth above (“Award LTIP Units”), which (A) shall be subject to forfeiture or
        increase to the extent provided in this Section 3 as set forth below and
        (B)
        will be subject to vesting as provided in Sections 4 and 7 hereof.

       

      (b)  As
        soon
        as practicable following the Valuation Date, but as of the Valuation Date,
        the
        Committee shall determine the Outperformance Pool (if any) and then perform
        the
        following calculations with respect to this Award: Multiply (w) the
        Outperformance Pool calculated as of the Valuation Date by (x) the Grantee’s
        Participation Percentage as of the Valuation Date, then divide the result
        by the
        product of (y) the Common Stock Price calculated as of the Valuation Date,
        multiplied by (z) the Conversion Factor on the Valuation Date; the resulting
        number is hereafter referred to as the “OPP Unit
        Equivalent”;

      
        
           

        

        
          5

          
            

          

        

      

      (c)  If
        the
        OPP Unit Equivalent is smaller than the number of Award LTIP Units, then
        the
        Grantee, as of the Valuation Date, shall forfeit a number of Award LTIP Units
        equal to the difference and thereafter the term Award LTIP Units will refer
        only
        to the remaining Award LTIP Units that were not forfeited.  If the OPP Unit
        Equivalent is greater than the number of Award LTIP Units, then, upon the
        performance of such calculation:  (A) the Grantee, as of the Valuation
        Date, shall be automatically granted a number of additional LTIP Units equal
        to
        the difference, and such additional LTIP Units shall be added to the Award
        LTIP
        Units and thereby become part of this Award, (B) the Company and EPLP shall
        take
        such corporate or partnership action as is necessary to accomplish the grant
        of
        such additional LTIP Units, (C) the Grantee shall execute and deliver in
        connection with such grant such documents, comparable to the documents executed
        and delivered in connection with this Agreement, as the Company and/or EPLP
        reasonably request in order to comply with all applicable legal requirements,
        including, without limitation, federal and state securities laws and (D)
        thereafter the term Award LTIP Units will refer collectively to the Award
        LTIP
        Units prior to such additional grant plus such additional LTIP Units.  If
        the OPP Unit Equivalent is the same as the number of Award LTIP Units, then
        there will be no change to this Award.

       

      (d)  Any
        forfeitures by the Grantee shall be retained by the Company.

       

      
        	
                4.  

              	
                 
                  Termination of
                  Grantee’s Position as a Non-Employee Director; Vesting; Change of
                  Control.

              

      

       

      (a)  If
        at any
        time the Grantee shall cease to be a Non-Employee Director for any reason,
        then
        all Award LTIP Units that remain unvested at such time shall automatically
        and
        immediately be forfeited by the Grantee, except that in the case of the death
        or
        Disability of the Grantee, the provisions of Section 7 shall apply, and
        except as provided in Sections 4(c) hereof.

       

      (b)  The
        Award
        LTIP Units granted to the Grantee shall vest on December 4, 2010.

       

      (c)  Anything
        in Section 4(b) hereof to the contrary notwithstanding, all unvested Award
        LTIP
        Units that have not previously been forfeited shall vest immediately upon
        the
        occurrence of a Change of Control, or the Grantee’s death or
        Disability.

       

      5.  Distributions.  The
        Grantee holding the Award LTIP Units shall be entitled to receive distributions
        with respect to such Award LTIP Units to the extent provided for in the
        Partnership Agreement. 

       

      6.  Restrictions
        on Transfer.  None of the Award LTIP
        Units shall be sold, assigned, transferred, pledged, hypothecated, given
        away or
        in any other manner disposed of, encumbered, whether voluntarily or by operation
        of law (each such action a “Transfer”), or redeemed in accordance with the
        Partnership Agreement unless such Transfer is in connection with a Change
        of
        Control and such Transfer is in accordance with the applicable terms and
        conditions of the Partnership Agreement; provided that, upon the approval
        of,
        and subject to the terms and conditions specified by, the Committee, vested
        Award LTIP Units may be Transferred and unvested Award LTIP Units that have
        been
        held for a period of at least two (2) years beginning on the date of grant
        specified above may be Transferred to the Grantee’s Family Members, provided

      
        
           

        

        
          6

          
            

          

        

        that
          the
          transferee agrees in writing with the Company and EPLP to be bound by all
          of the
          terms and conditions of this Agreement.  In connection with any Transfer of
          Award LTIP Units, EPLP may require the Grantee to provide an opinion of
          counsel,
          satisfactory to EPLP, that such Transfer is in compliance with all federal
          and
          state securities laws (including, without limitation, the Securities Act). 
Any attempted Transfer of Award LTIP Units not in accordance with the terms
          and
          conditions of this Section 6 shall be null and void, and EPLP shall not
          reflect on its records any change in record ownership of any LTIP Units
          as a
          result of any such Transfer, shall otherwise refuse to recognize any such
          Transfer and shall not in any way give effect to any such Transfer of any
          LTIP
          Units.   This Agreement is personal to the Grantee, is non-assignable
          and is not transferable in any manner, by operation of law or otherwise,
          other
          than by will or the laws of descent and distribution.

      

       

      7.  Death
        or Disability.

       

      (a)  Notwithstanding
        any other provision herein, if, prior to the Valuation Date, the Grantee
        shall
        cease to be a Non-Employee Director as a result of his death or Disability,
        then
        (i) with respect to the Grantee the calculations provided in Section 3
        shall be performed with respect to this Award immediately as if a Change
        of
        Control had occurred (with respect to the Grantee only) on the date of his
        death
        or Disability and (ii) all of the Award LTIP Units comprising this Award
        (after giving effect to the issuance of additional LTIP Units or forfeiture
        of
        Award LTIP Units pursuant to Section 3) shall automatically and immediately
        vest.

       

      (b)  Notwithstanding
        any other provision herein, if, on or after the Valuation Date, the Grantee
        shall cease to be a Non-Employee Director as a result of his death or
        Disability, then all of the Grantee’s Award LTIP Units shall automatically and
        immediately vest.

       

      8.  Changes
        in Capital Structure.  If (i) the
        Company shall at any time be involved in a merger, consolidation, dissolution,
        liquidation, reorganization, exchange of shares, sale of all or substantially
        all of the assets or stock of the Company or a transaction similar thereto,
        (ii) any stock dividend, stock split, reverse stock split, stock
        combination, reclassification, recapitalization, significant repurchases
        of
        stock or other similar change in the capital structure of the Company, or
        any
        distribution to holders of Common Stock other than regular cash dividends,
        shall
        occur or (iii) any other event shall occur which in the judgment of the
        Committee necessitates action by way of adjusting the terms of the Award,
        then
        the Committee shall take such action as in its discretion shall be necessary
        to
        maintain the Grantee’s rights hereunder so that they are substantially
        proportionate to the rights existing under this Agreement prior to such event,
        including, without limitation, adjustments in Award LTIP Units, Additional
        Shares, Baseline Value, dividends or distributions paid with respect to the
        Initial Shares and Additional Shares, Common Stock Price, Maximum Outperformance
        Pool Amount, Total Shares and Total Return.

       

      9.  Miscellaneous.

       

      (a)  Amendments.  This
        Agreement may be amended or modified only with the consent of EPLP acting
        through the Committee; provided that any amendment or modification
        which adversely affects the Grantee must be consented to by the Grantee to
        be
        effective as against him.

      
        
           

        

        
          7

          
            

          

        

      

      (b)  Incorporation
        of Plan.  The provisions of the 2004
        Plan are hereby incorporated by reference as if set forth herein.  If and
        to the extent that any provision contained in this Agreement is inconsistent
        with the 2004 Plan, this Agreement shall govern.

       

      (c)  Effectiveness.  The
        Grantee shall be admitted as a partner of EPLP with beneficial ownership
        of the
        Award LTIP Units as of the grant date set forth above by (i) signing and
        delivering to EPLP a copy of this Agreement, and (ii) signing, as a Limited
        Partner, and delivering to EPLP a counterpart signature page to the Partnership
        Agreement (attached hereto as Exhibit A).  The Partnership
        Agreement shall be amended to reflect the issuance to the Grantee of the
        Award
        LTIP Units, whereupon the Grantee shall have all the rights of a Limited
        Partner
        of EPLP with respect to the number of LTIP Units specified above, as set
        forth
        in the Partnership Agreement, subject, however, to the restrictions and
        conditions specified herein and in the Partnership Agreement.

       

      (d)  Status
        of LTIP Units under the 2004 Plan.  The
        Award LTIP Units may, but need not, be granted as equity securities under
        the
        2004 Plan insofar as the Outperformance Plan has been established as an
        incentive program of EPLP.  The Company will have the right, as set
        forth in the Partnership Agreement, to issue shares of Common Stock in exchange
        for Common Units into which such Award LTIP Units may have been converted,
        pursuant to the Partnership Agreement, subject to certain limitations set
        forth
        in the Partnership Agreement, and such shares of Common Stock may be issued
        under the 2004 Plan.  The Grantee must be eligible to receive the Award
        LTIP Units in compliance with applicable federal and state securities laws
        and
        to that effect is required to complete, execute and deliver certain covenants,
        representations and warranties (attached hereto as Exhibit B). 
The Committee may, in its sole and absolute discretion, seek to have
        the LTIP
        Units become part of the 2004 Plan at a future time, whereby this Award may
        be
        considered an award under the 2004 Plan.  The Grantee acknowledges that if
        the Committee so elects, in its sole discretion, the Grantee will have no
        right
        to approve or disapprove such change.

       

      (e)  Legend.  The
        records of EPLP evidencing the Award LTIP Units shall bear an appropriate
        legend, as determined by EPLP in its sole discretion, to the effect that
        such
        LTIP Units are subject to restrictions as set forth herein and in the
        Partnership Agreement.

       

      (f)  Compliance
        With Law.  EPLP and the Grantee will
        make reasonable efforts to comply with all applicable securities laws.  In
        addition, notwithstanding any provision of this Agreement to the contrary,
        no
        LTIP Units will become vested or be paid at a time that such vesting or payment
        would result in a violation of any such law.

       

      (g)  Investment
        Representation.  The Grantee hereby
        makes the covenants, representations and warranties and set forth on
Exhibit B attached hereto.  All of such covenants, warranties
        and representations shall survive the execution and delivery of this Agreement
        by the Grantee.  EPLP will have no obligation to register under the
        Securities Act any LTIP Units or any other securities issued pursuant to
        this
        Agreement or upon conversion or exchange of LTIP Units.

       

      (h)  Section 83(b) Election.  The
        Grantee hereby agrees to make an election to include in gross income in the
        year
        of transfer the Award LTIP Units pursuant to Section 83(b) of the Code
        substantially in the form attached hereto as Exhibit C to this
        Agreement and to supply the necessary information in accordance with the
        regulations promulgated thereunder.

      
        
           

        

        
          8

          
            

          

        

      

      (i)  Section
        409A.  If and only to the extent that
        any compensation provided by this Agreement may result in the application
        of
        Section 409A of the Code, the Company in its sole discretion shall modify
        this
        Agreement with respect to such Grantee in order, where applicable:

       

      (i)  to
        exclude such compensation from the definition of “deferred compensation” within
        the meaning of such Section 409A of the Code, or

       

      (ii)  to
        comply
        with the provisions of Section 409A of the Code, other applicable provision(s)
        of the Code and/or any rules, regulations or other regulatory guidance issued
        under such statutory provisions;

       

      provided,
        however, that the Company makes no representation that the compensation
        or benefits provided under this Agreement will be exempt from Section 409A
        of
        the Code and makes no undertakings to preclude Section 409A of the Code from
        applying to the benefits provided under this Agreement.

       

      (j)  Severability.  In
        the event that one or more of the provisions of this Agreement may be
        invalidated for any reason by a court, any provision so invalidated will
        be
        deemed to be separable from the other provisions hereof, and the remaining
        provisions hereof will continue to be valid and fully enforceable.

       

      (k)  Governing
        Law.  This Agreement is made under, and
        will be construed in accordance with, the laws of the State of California,
        without giving effect to the principle of conflict of laws of such
        State.

       

      (l)  No
        Obligation to Continue Position as a Non-Employee Director or to
        Employ.  Neither the Company nor any
        affiliate is obligated by or as a result of this Agreement to continue to
        have
        the Grantee as a Non-Employee Director or to employ the Grantee.

       

      (m)  Notices.  Notices
        hereunder shall be mailed or delivered to EPLP at its principal place of
        business and shall be mailed or delivered to the Grantee at the address on
        file
        with EPLP or, in either case, at such other address as one party may
        subsequently furnish to the other party in writing.

       

      (n)  Taxes
        and Self-Employment Payments.  The Grantee shall be
        solely responsible for and shall file on a timely basis tax returns and payments
        required to be filed or made with respect the receipt of compensation under
        this
        Agreement, including, without limitation, tax returns and payments to United
        States federal, state and local income taxes, and payroll tax authorities,
        and
        social security, unemployment or disability insurance payments.  No
        federal, state or local income tax of any kind shall be withheld or paid
        by the
        Company with respect to the issuance of any securities hereunder or any
        amount paid to the Grantee under this Agreement.

       

      (o)  Successors
        and Assigns.  This Agreement shall be
        binding upon EPLP’s successors and assigns, whether or not this Agreement is
        expressly assumed.

       

      [signature
        page follows]

      

        
          
             

          

          
            9

            
              

            

          

           

        

      

      IN
        WITNESS WHEREOF, the undersigned have caused this Award Agreement to be executed
        as of the 4th day of December 2007.

       

       

       

      

      
        	
                 

              	
                ESSEX
                  PROPERTY TRUST, INC.

              	 	 
	
                 

              	
                 

              	 	 
	
                 

              	
                 

              	 	 
	
                 

              	
                        By:

              	
                 

              	
                 

              	 
	
                 

              	
                 

              	
                Name:
                  Michael T. Dance

              	 	 
	
                 

              	
                 

              	
                Title:
                  Executive Vice President and Chief Financial Officer

              	 	 
	
                 

              	
                 

              	 	 
	
                 

              	
                 

              	 	 
	
                 

              	
                ESSEX
                  PORTFOLIO, L.P.

              	 	 
	
                 

              	
                 

              	 	 
	
                 

              	
                By:
                  Essex Property Trust, Inc., its general partner

              	 	 
	
                 

              	
                 

              	 	 
	
                 

              	
                 

              	 	 
	
                 

              	
                 

              	
                By:

              	
                 

              	
                 

              	 
	
                 

              	
                 

              	
                Name:
                  Michael T. Dance

              	
                 

              	 
	
                 

              	
                 

              	
                Title:
                  Executive Vice President and Chief Financial Officer

              	 	 
	
                 

              	
                 

              	 	 
	
                 

              	
                 

              	 	 
	
                 

              	
                Grantee

              	 	 
	
                 

              	
                 

              	 	 
	
                 

              	
                 

              	 	 
	
                 

              	
                 

              	
                 

              	 	 
	
                 

              	
                Name:

              	 	 
	 	 	 	 	 	 	 	 	 	 

      

      

      
        
           

        

        
          10

          
            

          

        

         

      

      EXHIBIT A

       

      FORM OF
        LIMITED PARTNER SIGNATURE PAGE

       

      The
        Grantee, desiring to become one of the within named Limited Partners of Essex
        Portfolio, L.P., hereby becomes a party to the First Amended and Restated
        Agreement of Limited Partnership of Essex Portfolio, L.P., as amended through
        the date hereof (the “Partnership Agreement”).  The Grantee agrees
        that this signature page may be attached to any counterpart of Essex
        Portfolio, L.P.’s Partnership Agreement.

       

      Signature
        Line for Limited Partner:

       

      

      
        	
                 

              	
                 

              	 	 
	
                 

              	
                Name:

              	
                 

              	
                 

              	 
	
                 

              	
                Date:
                  December, 2007

              	 	 
	
                 

              	
                 

              	 	 
	
                 

              	
                Address
                  of Limited Partner:

              	 	 
	
                 

              	
                 

              	
                 

              	 	 
	
                 

              	
                 

              	
                 

              	 	 
	 	 	 	 	 	 

      

       

      
        
           

        

        
          
            

          

        

         

      

      EXHIBIT B

       

      GRANTEE’S
        COVENANTS, REPRESENTATIONS AND WARRANTIES

       

      The
        Grantee hereby represents, warrants and covenants as follows:

       

      (a)           The
        Grantee has received and had an opportunity to review the following documents
        (the “Background Documents”):

       

      (i)           The
        latest Annual Report to Stockholders of Essex Property Trust, Inc., a Maryland
        corporation (the “Company”);

       

      (ii)           The
        Company’s Proxy Statement for its most recent Annual Meeting of
        Stockholders;

       

      (iii)           The
        Company’s Report on Form 10-K for the fiscal year most recently
        ended;

       

      (iv)           The
        Company’s Form 10-Q for the most recently ended quarter filed by the
        Company with the Securities and Exchange Commission since the filing of the
        Form 10-K described in clause (iii) above;

       

      (v)           Each
        of the Company’s Current Report(s) on Form 8-K, if any, filed since the end
        of the fiscal year most recently ended for which a Form 10-K has been filed
        by the Company;

       

      (vi)           First
        Amended and Restated Agreement of Limited Partnership of Essex Portfolio,
        L.P.,
        as amended (the “Partnership Agreement”);

       

      (vii)           The
        Essex Property Trust, Inc. 2004 Stock Incentive Plan (the “2004 Plan”);
        and

       

      (viii)                      The
        Company’s Articles of Amendment and Restatement, as amended.

       

      The
        Grantee also acknowledges that any delivery of the Background Documents and
        other information relating to the Company and Essex Portfolio, L.P., a
        California limited partnership (“EPLP”), prior to the determination by
        EPLP of the suitability of the Grantee as a holder of LTIP Units shall not
        constitute an offer of LTIP Units until such determination of suitability
        shall
        be made.

       

      (b)           The
        Grantee hereby represents and warrants that

       

      (i)           The
        Grantee either (A) is an “accredited investor” as defined in
        Rule 501(a) under the Securities Act of 1933, as amended (the
“Securities Act”), or (B) by reason of the business and financial
        experience of the Grantee, together with the business and financial experience
        of those persons, if any, retained by the Grantee to represent or advise
        him
        with respect to the grant to him of LTIP Units, the potential conversion
        of LTIP
        Units into 

      
        
           

        

        
          
            

          

        

        Partnership
          Units of EPLP (the “Common Units”)  and the potential
          redemption of such Common Units for shares of Common Stock (“REIT
          Shares”), has such knowledge, sophistication and experience in financial and
          business matters and in making investment decisions of this type that the
          Grantee (I) is capable of evaluating the merits and risks of an investment
          in
          EPLP and potential investment in the Company and of making an informed
          investment decision, (II) is capable of protecting his own interest or
          has
          engaged representatives or advisors to assist him in protecting his interests,
          and (III) is capable of bearing the economic risk of such
          investment.

      

       

      (ii)           The
        Grantee understands that (A) the Grantee is responsible for consulting his
        own tax advisors with respect to the application of the U.S. federal income
        tax
        laws, and the tax laws of any state, local or other taxing jurisdiction to
        which
        the Grantee is or by reason of the award of LTIP Units may become subject,
        to
        his particular situation; (B) the Grantee has not received or relied upon
        business or tax advice from the Company, EPLP or any of their respective
        employees, agents, consultants or advisors, in their capacity as such;
        (C) the Grantee provides services to EPLP on a regular basis and in such
        capacity has access to such information, and has such experience of and
        involvement in the business and operations of EPLP, as the Grantee believes
        to
        be necessary and appropriate to make an informed decision to accept this
        Award
        of LTIP Units; and (D) an investment in EPLP and/or the Company involves
        substantial risks.  The Grantee has been given the opportunity to make a
        thorough investigation of matters relevant to the LTIP Units and has been
        furnished with, and has reviewed and understands, materials relating to EPLP
        and
        the Company and their respective activities (including, but not limited to,
        the
        Background Documents).  The Grantee has been afforded the opportunity to
        obtain any additional information (including any exhibits to the Background
        Documents) deemed necessary by the Grantee to verify the accuracy of information
        conveyed to the Grantee.  The Grantee confirms that all documents, records,
        and books pertaining to his receipt of LTIP Units which were requested by
        the
        Grantee have been made available or delivered to the Grantee.  The Grantee
        has had an opportunity to ask questions of and receive answers from EPLP
        and the
        Company, or from a person or persons acting on their behalf, concerning the
        terms and conditions of the LTIP Units. The Grantee has relied upon, and
        is making his decision solely upon, the Background Documents and other written
        information provided to the Grantee by EPLP or the
        Company.

       

      (iii)           The
        LTIP Units to be issued, Common Units issuable upon conversion of the LTIP
        Units
        and any REIT Shares issued in connection with the redemption of any such
        Common
        Units will be acquired for the account of the Grantee for investment only
        and
        not with a current view to, or with any intention of, a distribution or resale
        thereof, in whole or in part, or the grant of any participation therein,
        without
        prejudice, however, to the Grantee’s right (subject to the terms of the LTIP
        Units, the 2004 Plan and this Agreement) at all times to sell or otherwise
        dispose of all or any part of his LTIP Units, Common Units or REIT Shares
        in
        compliance with the Securities Act, and applicable state securities laws,
        and
        subject, nevertheless, to the disposition of his assets being at all times
        within his control.

       

      (iv)           The
        Grantee acknowledges that (A) neither the LTIP Units to be issued, nor the
        Common Units issuable upon conversion of the LTIP Units, have been registered
        under the Securities Act or state securities laws by reason of a specific
        exemption or exemptions from registration under the Securities Act and
        applicable state securities laws and, if such LTIP Units

      
        
           

        

        
           

          
            

          

        

        or
          Common
          Units are represented by certificates, such certificates will bear a legend
          to
          such effect, (B) the reliance by EPLP and the Company on such exemptions is
          predicated in part on the accuracy and completeness of the representations
          and
          warranties of the Grantee contained herein, (C) such LTIP Units or Common
          Units, therefore, cannot be resold unless registered under the Securities
          Act
          and applicable state securities laws, or unless an exemption from registration
          is available, (D) there is no public market for such LTIP Units or Common
          Units, and (E) neither EPLP nor the Company has any obligation or intention
          to register such LTIP Units or such Common Units under the Securities Act
          or any
          state securities laws or to take any action that would make available any
          exemption from the registration requirements of such laws, except, that,
          upon
          the redemption of the Common Units for REIT Shares, the Company may issue
          such
          REIT Shares under the 2004 Plan and pursuant to a Registration Statement
          on
          Form S-8 under the Securities Act, to the extent that (I) the Grantee is
          eligible to receive such REIT Shares under the 2004 Plan at the time of
          such
          issuance, (II) the Company has filed a Form S-8 Registration Statement with
          the Securities and Exchange Commission registering the issuance of such
          REIT
          Shares and (III) such Form S-8 is effective at the time of the issuance of
          such REIT Shares.  The Grantee hereby acknowledges that because of the
          restrictions on transfer or assignment of such LTIP Units acquired hereby
          and
          the Common Units issuable upon conversion of the LTIP Units which are set
          forth
          in the Partnership Agreement, the 2004 Plan or this Agreement, the Grantee
          may
          have to bear the economic risk of his ownership of the LTIP Units acquired
          hereby and the Common Units issuable upon conversion of the LTIP Units
          for an
          indefinite period of time.

      

       

      (v)           The
        Grantee has determined that the LTIP Units are a suitable investment for
        the
        Grantee.

       

      (vi)           No
        representations or warranties have been made to the Grantee by EPLP or the
        Company, or any officer, director, shareholder, agent, or affiliate of any
        of
        them, and the Grantee has received no information relating to an investment
        in
        EPLP or the LTIP Units except the information specified in Paragraph
        (b) above.

       

      (c)           So
        long as the Grantee holds any LTIP Units, the Grantee shall disclose to EPLP
        in
        writing such information as may be reasonably requested with respect to
        ownership of LTIP Units as EPLP may deem reasonably necessary to ascertain
        and
        to establish compliance with provisions of the Internal Revenue Code of 1986,
        as
        amended (the “Code”), applicable to EPLP or to comply with requirements
        of any other appropriate taxing authority.

       

      (d)           The
        Grantee hereby agrees to make an election under Section 83(b) of the
        Code with respect to the LTIP Units awarded hereunder, and has delivered
        with
        this Agreement a completed, executed copy of the election form attached hereto
        as Exhibit D .  The Grantee agrees to file the election (or to
        permit EPLP to file such election on the Grantee’s behalf) within
        thirty (30) days after the award of the LTIP Units hereunder with the IRS
        Service Center at which such Grantee files his personal income tax returns,
        and
        to file a copy of such election with the Grantee’s U.S. federal income tax
        return for the taxable year in which the LTIP Units are awarded to the
        Grantee.

      
        
           

        

        
           

          
            

          

        

      

      (e)           The
        address set forth on the signature page of this Agreement is the address of
        the Grantee’s principal residence, and the Grantee has no present intention of
        becoming a resident of any country, state or jurisdiction other than the
        country
        and state in which such residence is sited.

        
          
             

          

          
             

            
              

            

          

           

        

      

      EXHIBIT C

       

      ELECTION
        TO INCLUDE IN GROSS INCOME IN YEAR OF

      TRANSFER
        OF PROPERTY PURSUANT TO SECTION 83(B)

      OF
        THE INTERNAL REVENUE CODE

       

      The
        undersigned hereby makes an election pursuant to Section 83(b) of the
        Internal Revenue Code with respect to the property described below and supplies
        the following information in accordance with the regulations promulgated
        thereunder:

       

      1.           The
        name, address and taxpayer identification number of the undersigned
        are:

       

      
        	
                Name:

              	
                 

              	
                (the
                  “Taxpayer”)

              
	
                 

              	
                 

              
	
                Address:

              	
                 

              	
                 

              
	
                 

              	
                 

              
	
                 

              	
                 

              
	
                 

              	
                 

              
	
                Social
                  Security No./Taxpayer Identification No.:

              	
                 

              	
                 

              
	 	 	 	 	 	 

      

       

      2.           Description
        of property with respect to which the election is being made:

       

      The
        election is being made with respect to
                        
LTIP Units in Essex Portfolio, L.P. (the “Partnership”).

       

      3.           The
        date on which the LTIP Units were transferred is December 4, 2007.  The
        taxable year to which this election relates is calendar year 2007.

       

      4.           Nature
        of restrictions to which the LTIP Units are subject:

       

      
        	
                 

              	
                (a)

              	
                With
                  limited exceptions, until the LTIP Units vest, the Taxpayer may
                  not
                  transfer in any manner any portion of the LTIP Units without the
                  consent
                  of EPLP.

              

      

       

      
        	
                 

              	
                (b)

              	
                The
                  Taxpayer’s LTIP Units vest in accordance with the vesting provisions
                  described in the Schedule attached hereto.  Unvested LTIP Units
                  are forfeited in accordance with the vesting provisions described
                  in the
                  Schedule attached hereto.

              

      

       

      5.           The
        fair market value at time of transfer (determined without regard to any
        restrictions other than restrictions which by their terms will never lapse)
        of
        the LTIP Units with respect to which this election is being made was $0 per
        LTIP
        Unit.

       

      6.           The
        amount paid by the Taxpayer for the LTIP Units was $0 per LTIP
        Unit.

      
        
           

        

        
           

          
            

          

        

      

      7.           A
        copy of this statement has been furnished to Essex Portfolio, L.P. and Essex
        Property Trust, Inc.

       

      

      
        	
                 

              	
                Dated:

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              
	
                 

              	
                 

              
	
                 

              	
                  Name:

              

      

      

        
          
             

          

          
             

            
              

            

          

           

        

      

      SCHEDULE A

       

      Vesting
        Provisions of LTIP Units

       

      LTIP
        Units are subject to time-based and performance-based vesting with the final
        vesting percentage equaling the product of the time-based vesting percentage
        and
        the performance-based vesting percentage.  Performance-based vesting will
        be from 0-100% based on the Essex Property Trust, Inc.’s (the “Company’s”)
        per-share total return to shareholders for the period from December 4, 2007
        to
        December 3, 2010 (or earlier in certain circumstances).  One hundred
        percent (100%) of the LTIP Units that remain outstanding following the
        determination of performance-based vesting will vest on December 4, 2010,
        provided that the Taxpayer remains a non-employee member of the Board of
        Directors of the Company through such dates, subject to acceleration in the
        event of certain change of control transactions or termination of the Taxpayer’s
        status as a non-employee director under specified circumstances.  Unvested
        LTIP Units are subject to forfeiture in the event of failure to vest if the
        Taxpayer is not a non-employee director on the applicable vesting date or
        performance-based vesting conditions are not satisfied.

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