Document:

Exhibit 10.2

 

THE EQUITY RESIDENTIAL GRANDFATHERED

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

AS AMENDED AND RESTATED

EFFECTIVE JANUARY 1, 2005

 

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  	
  INTRODUCTION

  	
  1

  
	
  1.1

  	
  Purpose of Plan

  	
  1

  
	
  1.2

  	
  Status of Plan

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  DEFINITIONS

  	
  2

  
	
  2.1

  	
  Account

  	
  2

  
	
  2.2

  	
  Change Form

  	
  2

  
	
  2.3

  	
  Change of Control

  	
  2

  
	
  2.4

  	
  Code

  	
  2

  
	
  2.5

  	
  Compensation

  	
  3

  
	
  2.6

  	
  Credited Service

  	
  3

  
	
  2.7

  	
  Educational Account

  	
  3

  
	
  2.8

  	
  Elective Deferral

  	
  3

  
	
  2.9

  	
  Eligible Employee

  	
  3

  
	
  2.10

  	
  Eligible Trustee

  	
  3

  
	
  2.11

  	
  Employer

  	
  3

  
	
  2.12

  	
  Enrollment Form

  	
  4

  
	
  2.13

  	
  Entry Date

  	
  4

  
	
  2.14

  	
  EQR

  	
  4

  
	
  2.15

  	
  ERISA

  	
  4

  
	
  2.16

  	
  Extended Company

  	
  4

  
	
  2.17

  	
  Funding Trust

  	
  5

  
	
  2.18

  	
  Funding Trustee

  	
  5

  
	
  2.19

  	
  Insolvent

  	
  5

  
	
  2.20

  	
  Normal Retirement Age

  	
  5

  
	
  2.21

  	
  Matching Deferral

  	
  5

  
	
  2.22

  	
  Participant

  	
  5

  
	
  2.23

  	
  Plan

  	
  5

  
	
  2.24

  	
  Plan Administrator

  	
  5

  
	
  2.25

  	
  Plan Year

  	
  6

  
	
  2.26

  	
  Qualified Plan

  	
  6

  

 

i

 

Table of Contents

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  2.27

  	
  Restricted Share

  	
  6

  
	
  2.28

  	
  Share

  	
  6

  
	
  2.29

  	
  Share Appreciation Right

  	
  6

  
	
  2.30

  	
  Share Option

  	
  6

  
	
  2.31

  	
  Share Deferral

  	
  6

  
	
  2.32

  	
  Total and Permanent Disability

  	
  6

  
	
  2.33

  	
  Unforeseeable Emergency

  	
  6

  
	
  2.34

  	
  Unrestricted Share

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  PARTICIPATION

  	
  7

  
	
  3.1

  	
  Satisfaction of Eligibility Requirements

  	
  7

  
	
  3.2

  	
  Commencement of Participation

  	
  8

  
	
  3.3

  	
  Continued Participation

  	
  8

  
	
  3.4

  	
  Suspension of Participation

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  ELECTIVE AND MATCHING DEFERRALS

  	
  9

  
	
  4.1

  	
  Elective Deferrals

  	
  9

  
	
  4.2

  	
  Share Deferrals

  	
  11

  
	
  4.3

  	
  Matching Deferrals

  	
  13

  
	
  4.4

  	
  Enrollment Forms

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  ACCOUNTS

  	
  14

  
	
  5.1

  	
  Accounts

  	
  14

  
	
  5.2

  	
  Educational Account

  	
  15

  
	
  5.3

  	
  Investments

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  VESTING

  	
  17

  
	
  6.1

  	
  General

  	
  17

  
	
  6.2

  	
  Change of Control

  	
  18

  
	
  6.3

  	
  Death or Disability

  	
  18

  
	
  6.4

  	
  Insolvency

  	
  19

  
	
  6.5

  	
  Normal Retirement Age

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  PAYMENTS

  	
  19

  
	
  7.1

  	
  Election as to Time and Form of Payment

  	
  19

  

 

ii

 

Table of Contents

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  7.2

  	
  Termination of Service

  	
  22

  
	
  7.3

  	
  Death

  	
  23

  
	
  7.4

  	
  Withdrawal Due to Unforeseeable Emergency

  	
  23

  
	
  7.5

  	
  Withdrawal Due to Educational Expense

  	
  24

  
	
  7.6

  	
  Other Withdrawals

  	
  25

  
	
  7.7

  	
  Forfeiture of Non-Vested Amounts

  	
  26

  
	
  7.8

  	
  Taxes

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  PLAN ADMINISTRATOR

  	
  27

  
	
  8.1

  	
  Plan Administration and Interpretation

  	
  27

  
	
  8.2

  	
  Powers, Duties, Procedures, Etc

  	
  27

  
	
  8.3

  	
  Information

  	
  28

  
	
  8.4

  	
  Indemnification of Plan Administrator

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  CLAIMS PROCEDURES

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  AMENDMENT AND TERMINATION

  	
  30

  
	
  10.1

  	
  Amendment

  	
  30

  
	
  10.2

  	
  Termination of Plan

  	
  30

  
	
  10.3

  	
  Existing Rights

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
  MISCELLANEOUS

  	
  31

  
	
  11.1

  	
  No Funding

  	
  31

  
	
  11.2

  	
  Non-assignability

  	
  32

  
	
  11.3

  	
  Limitation of Participant’s Rights

  	
  32

  
	
  11.4

  	
  Participants Bound

  	
  32

  
	
  11.5

  	
  Receipt and Release

  	
  32

  
	
  11.6

  	
  Governing Law

  	
  33

  
	
  11.7

  	
  Headings and Subheadings

  	
  33

  

 

iii

 

ARTICLE 1

INTRODUCTION

 

1.1          Purpose of Plan

 

EQR initially
adopted the Plan to provide a means by which certain employees could elect to
defer receipt of portions of their Compensation and to provide opportunities
for such individuals to save for retirement and for the education of their
children.  As first amended and restated, the Plan also provided for the
participation of non-employee trustees on the terms and conditions set forth
herein.  The Plan was frozen as of December 31,
2004 and the Plan and all accounts under it are intended to be grandfathered in
all respects from the effects of Code Section 409A.  A separate plan, the Equity Residential
Supplemental Executive Retirement Plan was established with respect to
deferrals which were not earned and vested as of December 31, 2004.  Amounts which were not earned and vested as
of December 31, 2004 and the earnings on those deferrals have been
transferred to the Equity Residential Supplemental Executive Retirement
Plan.  This amendment and restatement
shall apply to eligible employees and trustees from and after January 1,
2005.

 

1.2          Status of Plan

 

Except with respect
to the participation of trustees, it is intended that the Plan be “a plan which is unfunded and is maintained by an employer
primarily for the purpose of providing deferred compensation for a select group
of management or highly compensated employees” within the meaning of Sections
201(2), 301(a)(3) and 401(a)(1) of ERISA, and that the Plan be
interpreted and administered consistent with that intent.  The Plan is intended to be grandfathered 

 

1

 

under Code Section 409A and it is intended that the plan be
interpreted consistent with that intent.

 

ARTICLE 2

DEFINITIONS

 

Wherever used
herein, the following terms have the meanings set forth below, unless a
different meaning is clearly required by the context:

 

2.1          Account  means, for each Participant, the account established
for his or her benefit under Section 5.1.

 

2.2          Change Form   means the document or documents
prescribed by the Plan Administrator and pursuant to which a Participant may
change elections made on an Enrollment Form.

 

2.3          Change of
Control  means (i) the acquisition by any entity,
person, or group of more than 50% of the outstanding Shares from the holders
thereof; (ii) a merger or consolidation of EQR with one or more other
entities as a result of which the ultimate holders of outstanding Shares immediately
prior to such merger hold less than 50% of the shares of beneficial ownership
of the surviving or resulting corporation; or (iii) a transfer of
substantially all of the property
of EQR other than to an entity of which EQR directly or indirectly owns at
least 50% of the shares of beneficial ownership.

 

2.4          Code 
means the Internal Revenue Code of 1986, as amended from time to
time.  Reference to any section or subsection
of the Code includes reference to any comparable or 

 

2

 

succeeding
provisions of any legislation which amends, supplements or replaces such
section or subsection.

 

2.5          Compensation  means cash compensation payable by an Employer
(before deductions)
for service performed for the Employer that currently would be includable in
gross income and may consist of either the Participant’s (i) salary, (ii) commissions,
and/or (iii) incentive
pay.  In the case of an Eligible Trustee,
“Compensation” means all cash remuneration otherwise
payable to him or her for service as a member of the Board of Trustees,
including but not limited to any retainer and committee or chair fees.

 

2.6          Credited Service  means the Participant’s Years of Credited Service as
calculated for purposes of the Qualified Plan.

 

2.7          Educational Account  means an account established by a Participant pursuant
to Section 5.2, for the use described therein.

 

2.8          Elective Deferral  means the portion of Compensation which is deferred by
a Participant under Section 4.1.

 

2.9          Eligible
Employee  means, on any Entry Date, those employees of an
Employer whose anticipated total annualized Compensation is not less than
$80,000.

 

2.10        Eligible Trustee  means, on any Entry Date, a member of tote Board of
Trustees of EQR who is not an employee of EQR.

 

2.11        Employer  means Equity Residential, Equity Residential
Properties Management Limited Partnership, Equity Residential Properties
Management Limited Partnership II, Equity 

 

3

 

Residential
Properties Management Corp. and each other entity that is affiliated with EQR
and that adopts the Plan with the consent of EQR.

 

2.12        Enrollment Form   means
the document or documents prescribed by the Plan Administrator and pursuant to
which a Participant may make elections to defer Compensation and/or defer
income with respect to Shares, Restricted Shares, Share Options or Share
Appreciation Rights, and related elections, hereunder.

 

2.13        Entry Date  means (i) the January 1
of each Plan Year, and (ii) in the case of an individual described in Section 4.1(b)(iii),
the date as of which his or her Enrollment Form is effective as described
therein.  Effective January 1, 2005
no additional Eligible Employees are permitted to participate in the Plan.

 

2.14        EQR  means Equity Residential, and any successor thereto.

 

2.15        ERISA  means the Employee Retirement Income Security Act of
1974, as amended from time to time. 
Reference to any section or subsection of ERISA includes reference to any
comparable or succeeding provisions of any legislation that amends, supplements
or replaces such section or subsection.

 

2.16        Extended Company  means an Employer and any other entity so designated
by the Plan Administrator, but only if such other entity maintains a
non-qualified deferred compensation arrangement that provides that if an
employee terminates his or her employment with the entity and immediately
accepts a position with EQR, his or her employment is not treated as having
terminated for purposes of distributions under such arrangement.  The Plan 

 

4

 

Administrator may
change the entities designated as Extended Companies from time to time as it
deems appropriate.

 

2.17        Funding Trust  means the grantor trust established by EQR to hold
assets contributed under the Plan.

 

2.18        Funding Trustee  means the trustee or trustees under the Funding
Trust.

 

2.19        Insolvent  means either (i) the Employer is unable to pay
its debts as they become due, or (ii) the Employer is subject to a
pending proceeding as a debtor under the United States Bankruptcy Code.

 

2.20        Normal Retirement Age  means age sixty-five (65).

 

2.21        Matching Deferral  means a contribution by an Employer for the benefit of
a Participant who is an Eligible Employee, as described in Section 4.3.

 

2.22        Participant  means any individual who participates in the Plan in
accordance with Article 3.

 

2.23        Plan  means The Equity Residential Supplemental Executive
Retirement Plan as amended and restated herein, and as further amended from
time to time.

 

2.24        Plan Administrator  means the Senior Vice President, Human Resources,
or such other person, persons or entity designated by EQR to administer the
Plan and to serve as the agent for the settlor of the Funding Trust as
contemplated by the agreement establishing the Funding Trust.  If no such person or entity is so serving at
any time, EQR shall be the Plan Administrator.

 

5

 

2.25        Plan Year  means the 12-month period ending on December 31.

 

2.26        Qualified Plan  means the Equity Residential ADVANTAGE Retirement Savings Plan.

 

2.27        Restricted Share  means a Share that is subject to a substantial risk of
forfeiture for purposes of Section 83 of the Code.

 

2.28        Share  means a share of beneficial interest, par value $.01
per share, of EQR.

 

2.29        Share Appreciation Right  means a right to share in the appreciation of Shares
granted
by EQR.

 

2.30        Share Option  means an option to purchase Shares granted by EQR.

 

2.31        Share Deferral  means the portion of a Share, Share Option or Share
Appreciation Right deferred by a Participant under Section 4.2.

 

2.32        Total and Permanent Disability  means a physical or mental condition that entitles a Participant to
benefits under the Employer-sponsored long-term disability plan in which he or she participates.

 

2.33        Unforeseeable Emergency  means an immediate and heavy financial need resulting
from any of the following:

 

(a)         Expenses which are not covered by
insurance and which the Participant or his or her spouse or dependent has
incurred as a result of, or is required to incur in order to receive, medical
care;

 

6

 

(b)         The need to prevent eviction of a
Participant from his or her principal residence or foreclosure on the mortgage
of the Participant’s principal residence; or

 

(c)         Any other circumstance that is
determined by the Plan Administrator in its sole discretion to constitute an
unforeseeable emergency that (i) is not covered by insurance and (ii) cannot
reasonably be relieved by the liquidation of the Participant’s assets.

 

2.34        Unrestricted Share  means a Share that is subject to Section 83 of
the Code and is not subject to a substantial risk of forfeiture.

 

ARTICLE 3

PARTICIPATION

 

3.1          Satisfaction of Eligibility
Requirements

 

Prior to each Entry
Date, the Plan Administrator shall determine in its discretion the identity of
those Eligible Employees and Eligible Trustees, including any retired officers
or trustees, who may commence or continue their participation in the Plan as of
such Entry Date.  The Plan Administrator
will notify Eligible Employees and Eligible Trustees of their eligibility to participate
in the Plan and provide them with an Enrollment Form.  If the Plan Administrator determines that a
Participant currently making Elective Deferrals, Share Deferrals or Matching
Deferrals is not eligible to participate in the Plan as of an upcoming Entry
Date because he or she no longer satisfies the eligibility requirements
described in Section 2.9 or 2.10 (as applicable), the Participant will be subject to a
suspension of participation as described in Section 3.4 below.

 

7

 

Notwithstanding any provision in this Plan to
the contrary, effective January 1, 2005 no additional Eligible Employees
are permitted to participate in the Plan and no Participants may make any
deferrals in 2005 or later calendar years under the Plan.

 

3.2          Commencement
of Participation

 

An
Eligible Employee or Eligible Trustee shall become a Participant in the Plan on
the first date as of
which an Elective Deferral, Share Deferral, or Matching Deferral is credited to
his or her Account.

 

3.3          Continued
Participation

 

A
Participant in the Plan shall continue to be a Participant so long as any
amount remains credited to his or her Account.

 

3.4          Suspension
of Participation

 

If,
pursuant to Section 3.1, the Plan Administrator determines that an active
Participant no longer satisfies the eligibility requirements of Section 2.9
or 2.10 (as applicable), the Plan Administrator shall notify the Participant,
and the Participant’s Elective Deferrals, Share Deferrals and Matching
Deferrals shall be suspended until the next following Entry Date as of which
the Participant again satisfies Section 2.9 or 2.10 (as applicable).  If the Plan Administrator, pursuant to Section 3.1,
determines that the Participant again satisfies the eligibility requirements of
Section 2.9 or 2.10 (as applicable), the Plan Administrator shall notify
the Participant, and the Participant shall be permitted to resume active
participation in the Plan as of the next following Entry Date in accordance
with Article 4.  Upon such
resumption, EQR may 

 

8

 

make Matching Deferrals for such Participant to make up for any
Matching Deferrals not made while his or her participation was suspended.

 

ARTICLE
4

ELECTIVE AND MATCHING DEFERRALS

 

4.1          Elective Deferrals

 

(a)        An individual who is an Eligible
Employee or Eligible Trustee may elect to defer receipt of a whole percentage
or whole dollar amount of up to 25% (or 100% in the case of an Eligible
Trustee) of the Compensation (exclusive of any bonus) otherwise payable to him
or her, on and after a subsequent Entry Date for the applicable Plan Year.  In addition, subject to the provisions of
subsection (b)(iii) below, an Eligible Employee may elect to defer up to
100% of any incentive pay Compensation payable during a Plan Year.  For purposes of the foregoing, the Elective
Deferral of each Eligible Employee will equal the greater of (i) the
elected percentage of his or her Compensation or elected dollar amount, as the
case may be; or (ii) the entire amount of his or her Compensation
remaining after (A) all contributions that the Eligible Employee has
elected to make under all other retirement and welfare benefit plans maintained
by his or her Employer have been deducted from his or her Compensation, and (B) deductions
from Compensation required by law, including Social Security and Medicare
taxes.  An Eligible Employee or Eligible
Trustee who desires to elect such a deferral shall complete and file an
Enrollment Form with the Plan Administrator.

 

(b)        Each Enrollment Form shall be
effective as described in clauses (i), (ii), (iii) and (iv) below.

 

9

 

(i)                                   An
Enrollment Form with respect to salary and commissions paid from and after the Entry Date in any Plan Year shall
be filed on or before a deadline established by the Plan Administrator for the applicable Plan Year, but in no event later than the December 31
that precedes the first day of such Plan Year.

 

(ii)                                Notwithstanding clause (i) in the case of an individual who first
becomes an Eligible Employee or Eligible Trustee following the commencement of
the Plan Year, the enrollment form will be effective with respect to salary and
commissions received after the date the Enrollment Form is filed, if it is
filed within 30 days after the date the individual becomes an Eligible Employee
or Eligible Trustee.

 

(iii)                             An Enrollment Form with respect to incentive
pay shall be filed on or before October 1 of the Plan Year preceding the
Plan Year in which the incentive pay is otherwise payable; provided that, in
the case of an individual who first becomes an Eligible Employee after October 1
of any Plan Year, the Enrollment Form will be effective if it is filed no
later than 30 days after he or she becomes an Eligible Employee and before the
start of the Plan Year in which the incentive pay is otherwise payable.

 

(c)        Each
Enrollment Form shall be effective for all Compensation to be paid to the
Participant filing such Enrollment Form from and after the Entry Date to
which such 

 

10

 

Enrollment Form applies.  An election to defer salary or commissions
also shall apply from and after subsequent Entry Dates unless changed as
provided herein, or until such time (if any) that the Participant is suspended
from the Plan, as provided under Section 3.4 or Section 7.6.

 

(d)        Notwithstanding any provision in this
plan to the contrary, no Elective Deferrals shall be made under this plan after
December 31, 2004.  All Elective
Deferrals made after December 31, 2004 shall be made under the Equity
Residential Supplement Executive Retirement Plan.

 

4.2          Share Deferrals

 

(a)        An individual who is an Eligible
Employee and who has received (or is to receive) a Restricted Share, Share
Option or Share Appreciation Right or is to receive an Unrestricted Share may
elect to defer (i) with respect to a Restricted Share, the Ownership of
the Share when it is an Unrestricted Share; (ii) with respect to an
Unrestricted Share, the Ownership of the Unrestricted Share; or (iii) with
respect to a Share Option or Share Appreciation Right, the ownership of the
Shares or other proceeds of an exercise thereof.  An Eligible Employee who desires to elect a
Share Deferral shall complete and file an Enrollment Form with the Plan
Administrator.  Any dividends on such
shares paid to any Participant, other than any former employee of the Employer
who, as of January 1, 2005, had made an election under the terms of the
Plan in effect prior to January 1, 2005 (a “Grandfathered Former Employee”),
shall be credited to such Participant’s Account when received by the Funding
Trustee.  Any dividends payable on such
shares to a Grandfathered Former Employee shall be distributed in accordance
with such Grandfathered Former Employee’s election.

 

11

 

(b)        An election pursuant to paragraph (a) must
be made (i) with respect to a Restricted Share, at least twelve months
before the date it would become and Unrestricted Share; or (ii) with
respect to a Share Option or Share Appreciation Right, at least 12 months prior
to the date the Share Option or Share Appreciation Right is exercised, or at
such time as the Plan Administrator may specify.

 

(c)        Notwithstanding the foregoing provisions
of this Section 4.2, the Funding Trustee shall not be required to hold on
behalf of a Participant any Unrestricted Share, Restricted Share, Share Option
or Share Appreciation Right deferred by the Participant in accordance with
paragraph (a) above.  Instead, the
Funding Trustee shall credit to the Participant’s Account an amount equal to (i) in
the case of an Unrestricted Share or Restricted Share, the fair market value
thereof on the date that the Share would otherwise be received by the
Participant; and (ii) in the case of a Share Option or Share Appreciation
Right, the excess of the fair market value of the underlying Shares over the
exercise or base price thereof on the date of exercise.  The Participant may request, in accordance
with Section 5.3, that the amounts credited to his or her Account
following a Share Deferral be invested in shares, provided that the Funding
Trustee shall have no obligation to comply with such request.

 

(d)        Notwithstanding any revision in this
Plan to the contrary, no Share Deferrals shall be made after December 31,
2004 and any Share Deferrals which have been elected on or prior to December 31,
2004 but not yet made because the Share remained a Restricted Share on December 31,
2004 shall be made under the Equity Residential Supplemental Executive
Retirement Plan and all of the rights of the Participant and the Company with
respect to such deferral shall be transferred to such Plan.

 

12

 

4.3          Matching Deferrals

 

(a)        Not later than the latest date permitted by Section 404
of the Code for matching contributions under the Qualified Plan with respect to
each Plan Year thereunder (or such later date that
the need for a Matching Deferral is determined), the Employer shall contribute
a Matching Deferral to the Account of each Participant who is an Eligible
Employee, if required by the next sentence.  The Matching Deferral for each Eligible
Employee for the Plan Year shall equal the excess of (i) the amount, if
any, by which the Eligible Employee’s matching contributions under the Qualified
Plan were reduced because of the operation of Section 401(m) of the
Code, or because the amount of his or her elective contributions to the Qualified Plan
were reduced by operation of or to comply with Section 401(k)(3) of
the Code (but considering all other conditions, restrictions and provisions of
the Code or the Qualified Plan); over (ii) any amount paid to the Eligible
Employee with respect to such Plan Year by the Qualified Plan or the Employer
to compensate or otherwise make up for such reduction.

 

(b)        Notwithstanding
paragraph (a) above, a Matching Deferral will be made for an Eligible
Employee for a Plan Year only if the Eligible Employee would have been eligible to receive allocation of a
matching contribution made under the Qualified Plan for such Plan Year.

 

(c)        Notwithstanding any provision in this
Plan to the contrary, all Matching Deferrals which are not earned and vested as
of December 31, 2004 shall be made under, and be a part of , the Equity
Residential Supplemental Executive Retirement Plan.

 

13

 

4.4          Enrollment Forms

 

All
Enrollment Forms filed pursuant to Article 4 shall be irrevocable (i) with
respect to Elective Deferrals
under Section 4.1, except as provided therein; and (ii) for Share
Deferrals under Section 4.2, with respect to
the Unrestricted Share, Restricted Share, Share Option or Share Appreciation
Right subject thereto.  Notwithstanding
the foregoing, if a Participant incurs an Unforeseeable Emergency, he or she may
file a Change Form to revoke his or her Enrollment Form (but only to
the extent reasonably needed to relieve the Unforeseeable Emergency). 
Any Change Form that revokes an Enrollment Form shall be
effective as described in the first sentence of this Section 4.4.

 

ARTICLE 5

ACCOUNTS

 

5.1          Accounts

 

The
Plan Administrator shall establish an Account for each Participant reflecting
Elective Deferrals, Share Deferrals and Matching Deferrals (if applicable) made
for the Participant’s benefit together with any adjustments for income, gain or
loss and any payments from the
Account.  Elective Deferrals, Share
Deferrals and Matching Deferrals will be credited to the Account of each
applicable Participant as of the later of the date they are received by the
Funding Trustee or the date the Funding Trustee receives from the Plan
Administrator such instructions
as the Funding Trustee may reasonably require to
allocate the amount received among the investments maintained by the Funding
Trustee.  A Participant’s Account shall
also include
any Educational Account established pursuant to Section 5.2.  As soon as practicable following the last
business day of each calendar quarter, the Plan Administrator (or its designee)

 

14

 

shall
provide the Participant with a statement of such Participant’s Account
reflecting the income, gains and losses (realized and unrealized), amounts of
deferrals and distributions with respect to such Account since the prior
statement.  The Accounts under this Plan
shall reflect only amounts earned and vested as of December 31, 2004.  Amounts not earned and vested as of December 31,
2004 shall be a part of the Equity Residential Supplemental Executive
Retirement Plan.

 

5.2          Educational Account

 

(a)        An
Eligible Employee or an Eligible Trustee may transfer any vested portion of his
or her Plan Account into an Educational Account in accordance with this Section 5.2.

 

(b)        An
Educational Account may be established for any adopted or natural-born child of
an Eligible Employee in order to finance such child’s post-secondary
undergraduate or graduate level education. 
An Eligible Employee wishing to establish an Educational Account shall so notify the Plan
Administrator in writing, on a form prescribed by the Plan Administrator for
that purpose, no later than: (i) with respect to an Educational Account
established to finance a child’s undergraduate education, the beginning of the
child’s last
full academic year of high school (or comparable) education, or (ii) with respect
to an Educational Account established to finance a child’s graduate education,
the beginning of the child’s last full academic year of undergraduate
education.

 

(c)        All or part of the balance of an
Eligible Employee’s Educational Account, adjusted for earnings, gains and
losses, may be withdrawn by the Eligible Employee on a quarterly basis to pay
expenses related to tuition, books, lodging and meals in connection with the 

 

15

 

post-secondary
undergraduate or graduate-level education (as applicable) of the child with
respect to whom the Account was established, to the extent incurred at an
accredited institution of higher learning; provided, however, that lodging
expenses incurred as a result of the child’s residence in a home owned directly
or indirectly by the Eligible Employee shall not be reimbursed.  Distribution of the balance of an Educational
Account shall be governed by Section 7.5.

 

(d)        Notwithstanding any other provision of
this Plan to the contrary, no amount may be transferred or deposited into an
Educational Account on or after January 1, 2005.

 

5.3          Investments

 

(a)        The assets of the Funding Trust shall be
invested in such investments, including Shares, as the Funding Trustee shall
determine.  The Funding Trustee may (but
is not required to) consider the Employer’s or a Participant’s investment
preferences when investing the assets attributable to a Participant’s Account.

 

(b)        EQR may, at its discretion, provide the Funding
Trustee with the opportunity to purchase Shares at a discounted price on behalf
of one (1) or more Eligible Employees and/or Eligible Trustees, subject to
conditions established by EQR (which may include the condition that any such
Eligible Employee has surrendered other similar opportunities to purchase
Shares).  If the Employer provides such
opportunity, it will either sell such common Shares
directly to the Funding Trustee or make cash contributions as necessary to
permit the Funding Trustee to buy such Shares on the open market or from other
sources.  The Plan Administrator may
impose restrictions on the purchase of Shares in accordance with the Securities
Act of 1933, the Securities Exchange Act of 1934 or any other applicable law.

 

16

 

(c)        Subject
to paragraph (a) above, a Participant may request that the Funding Trustee hold the following types of
investments in such Participant’s Account:

 

(i)                                   Mutual
funds (load or no-load)

 

(ii)                                Securities
traded on the NASDAQ national market or a national securities exchange;
provided, however, that this provision shall only apply to securities acquired
prior to January 1, 2003.

 

(d)        Expense charges for transactions
performed for each Participant’s Account shall be paid from each respective
Account and will be listed on the quarterly statement for such Account.  Other Plan charges and administrative
expenses will be paid by the Employer.

 

ARTICLE
6

VESTING

 

6.1           
General

 

(a)        A Participant shall at all times have a
fully vested and nonforfeitable right to all Elective Deferrals credited to his
or her Account, adjusted for income, gain and loss attributable thereto.

 

(b)        Subject to earlier vesting as provided
in Sections 6.2, 6.3 and 6.4, a Participant shall become vested in the portion
of his or her Account derived from a Share Deferral credited to his or her
Account attributable to a Restricted Share, adjusted for income, gain and loss
attributable thereto, at the same time that such Restricted Share would have
become a Share that was not a Restricted Share.

 

17

 

A
Participant shall at all times have a fully vested and nonforfeitable right to
all Share Deferrals credited
to his or her Account and attributable to Unrestricted Shares, Share Options or
Share Appreciation Rights.

 

(c)        Subject to earlier vesting as provided
in Sections 6.2, 6.3 and 6.4, a Participant shall become vested in the portion
of his or her Account attributable to Matching Deferrals credited to his or her
Account, adjusted for income, gain and loss attributable thereto, based on his
or her years of Credited Service in accordance with the following schedule:

 

	
  Years of Credited Service

  	
   

  	
  Vested Percentage

  	
   

  
	
  Less than 2

  	
   

  	
  0

  	
  %

  
	
  2

  	
   

  	
  25

  	
  %

  
	
  3

  	
   

  	
  50

  	
  %

  
	
  4

  	
   

  	
  75

  	
  %

  
	
  5 or more

  	
   

  	
  100

  	
  %

  

 

6.2          Change of Control

 

A
Participant who is then in the employ of an Employer shall become fully vested
in his or her Account
immediately prior to a Change of Control.

 

6.3          Death or Disability

 

A
Participant shall become fully vested in his or her Account immediately prior
to termination of the
Participant’s employment by reason of the Participant’s death or Total and
Permanent Disability.

 

18

 

6.4          Insolvency

 

A
Participant who is then in the employ of an Employer shall become fully vested
in his or her Account immediately prior to his or her Employer’s becoming
Insolvent, in which case the Participant will have the same rights as a general
unsecured creditor of the Employer with respect to his or her Account balance.

 

6.5          Normal Retirement Age

 

A
Participant shall become fully vested in his or her Account immediately prior
to a termination of the Participant’s employment on or after the Participant
attains his or her Normal Retirement
Age.

 

ARTICLE 7

PAYMENTS

 

7.1          Election as to Time and Form of
Payment

 

(a)        Subject
to the limitations of this Article 7, a Participant may specify a distribution date following the termination of a
Participant’s employment and service as a member of EQR’s Board of Trustees
applicable to his or her Elective Deferrals, vested Share Deferrals and vested
Matching Deferrals in accordance with the following:

 

(i)                                   A Participant may specify (on the Enrollment Form) the date or age at
which all Elective Deferrals, vested Share Deferrals and vested Matching
Deferrals described in the last sentence of this subparagraph (i), adjusted for
earnings, gains and losses attributable thereto, will be paid or commence to be
paid to the 

 

19

 

Participant. 
Such specified date must result in deferral over a period of at least
one complete Plan Year and shall apply to all Elective Deferrals, vested Share Deferrals
and vested Matching Deferrals for (A) the Plan Year for which the
Enrollment Form is filed; (B) any prior Plan Year, in the case of a
Matching Deferral for which no Enrollment Form was filed; and (C) any
subsequent Plan Year the last day of which is at least one full Plan Year before the
Participant’s elected distribution date.

 

(ii)                                On the
Enrollment Form filed for the first Plan Year with respect to which a
distribution date election under subparagraph (i) would not be applicable (and for the first
Plan Year with respect to which an election under this subparagraph would not be applicable pursuant to the last sentence of this subparagraph), a
Participant may specify the date on which distribution of the Participant’s Elective Deferrals,
vested Share Deferrals and vested Matching Deferrals described in the last
sentence of this subparagraph (ii), as adjusted for earnings, gains and losses,
will be
paid or commenced to be paid to the Participant.  Such specified date must result in deferral
over a period of at least one complete Plan Year and shall apply to all
Elective Deferrals, vested Share Deferrals and vested Matching Deferrals (as adjusted)
for the Plan Year for which the Enrollment form is filed, and for any
subsequent Plan Year the last 

 

20

 

day of which is at least one full Plan Year before the Participant’s specified
distribution date.

 

(b)        If approved by the Plan Administrator, a
Participant may change a date elected for distribution pursuant to paragraph
(a); provided that (i) the change is filed with the Plan Administrator
no later than the December 31 that is at least one Plan Year before the
Plan Year in which the previously elected date occurs; and (ii) the new
date for distribution occurs no earlier than the second Plan Year after the
Plan Year in which the previous change occurs.

 

(c)        The Participant’s election under this Section 7.1
may provide for payments to be made in the form of either:

 

(i)                                   A
single lump-sum payment; or

 

(ii)                                Annual
installments over a period elected by the Participant of up to ten (10) years,
the amount of each installment to equal the then balance of the Account divided
by the number of installments remaining to be paid.  The Participant may separately designate the
date or age of the initial payment and the date or age that the remaining
payments are to begin; provided, however, that all distributions must be
completed within ten (10) years of the Participant’s termination of
employment and service as a member of EQR’s Board of Trustees.

 

A Participant who has made no election under
this paragraph (c) or a Participant who has made such an election and
wishes to change the election, may make an election under this paragraph; 

 

21

 

provided that no election that is made other
than on the Enrollment Form to which an Elective Deferral, a Share
Deferral or a Matching Deferral is subject shall be effective until at least
one full Plan Year following the date the election is filed with the Plan
Administrator.  Any such change shall
also apply to all previous Enrollment Forms and Change Forms filed by the
Participant to the extent that the change satisfies the preceding sentence in
connection with such Forms.

 

(d)        Except as provided in Sections 7.2, 7.3,
7.4, 7.5 and 7.6, payments from a Participant’s Account shall be made in
accordance with the Participant’s elections under this Section 7.1.  If no election is made by a Participant, or
an election is invalid, distribution shall be made in a single lump sum upon
the termination of the Participant’s employment.

 

(e)        Payments from a Participant’s Account
shall be in cash or in kind (comprising assets of the Funding Trust), as
determined by the Funding Trustee.  The
Funding Trustee may (but is not required to) consider the Employer’s or a
Participant’s preferences when determining the form in which payment is made
from the Participant’s Account.

 

7.2          Termination
of Service

 

Upon
termination of a Participant’s service as a member of EQR’s Board of Trustees,
or termination of a Participant’s employment with all Employers and Extended
Companies, as the case may be, for any reason other than death, the vested
portion of the Participant’s Account shall be paid to the Participant according
to the Participant’s distribution election, unless the Plan Administrator
elects, in its sole discretion, to pay out a Participant’s Account balance in a
single lump sum as soon as practicable following the date of termination.  An Employer shall have the right to offset
against any payments made to a Participant under this Section 7.2 an
amount as is 

 

22

 

necessary to reimburse the Employer for
liabilities or obligations of the Participant to the Employer, including for
amounts misappropriated by the Participant.

 

7.3          Death

 

(a)        If a
Participant dies prior to the complete distribution of his or her Account, the
vested portion of the Participant’s Account shall be paid to the Participant’s
designated beneficiary or beneficiaries, according to the Participant’s
distribution election, unless the Plan
Administrator elects, in its sole discretion, to pay out a Participant’s
Account balance in a single lump sum as soon as practicable following the date
of termination.

 

(b)        A Participant may designate a
beneficiary by so noticing the Plan Administrator
in writing, at any time before Participant’s death, on a form prescribed by the
Plan Administrator for that purpose.  A
Participant may revoke any beneficiary designation or designate a new
beneficiary at any time without the consent of a beneficiary or any other
person.  If no beneficiary is designated or no designated
beneficiary survives the Participant, payment shall be made to the Participant’s
surviving spouse, or, if none, to the Participant’s issue per stirpes, in a single payment. 
If no spouse or issue survives the Participant, payment shall be made in
a single lump sum to the Participant’s estate.

 

7.4          Withdrawal Due to Unforeseeable
Emergency

 

If a
Participant experiences an Unforeseeable Emergency, the Plan Administrator, in
its sole discretion, may pay to the Participant only that portion, if any, of
the vested portion of such Participant’s Account which the Plan Administrator
determines is necessary to satisfy the emergency need, including any amounts
necessary to pay any federal, state or local income taxes 

 

23

 

reasonably anticipated to result from the distribution.  A Participant requesting an emergency payment
shall apply for the payment in writing using a form prescribed by the Plan Administrator for
that purpose and shall provide such additional information as the Plan
Administrator may require.  A Participant
receiving a withdrawal under this Section 7.4 shall be suspended
from making Elective Deferrals under the Plan for the balance of the Plan Year
of the withdrawal and for the next following Plan Year.

 

7.5           
Withdrawal Due to Educational Expense

 

(a)        All or part of the balance of an
Educational Account established under Section 5.2 shall be distributed on
a quarterly basis at the Participant’s request as the expenses described in Section 5.2
are incurred by or for the child with respect to whom the Educational Account was established. 
The Participant’s request shall be in writing, delivered to the Plan
Administrator, on a form prescribed for that purpose by the Plan
Administrator.  The Plan Administrator
may require such documentation as it deems necessary to substantiate such
expenses.

 

(b)        Notwithstanding the foregoing, 90% of the balance of
an Educational Account shall be transferred back to the Account of the
Participant and the balance of the Educational Account shall be forfeited as of
the earlier of: (i) the date as of which the child ceases full-time
pursuit of post-secondary undergraduate or graduate-level education (as
applicable) for a period of more than 12 consecutive months; or (ii) with
respect to (A) an Educational Account
established to finance the undergraduate education of a Participant’s child,
the child’s 23rd birthday, or (B) an Educational Account established to
fund the graduate education of a Participant’s child, the child’s 28th
birthday.

 

24

 

(c)        Notwithstanding the foregoing, 100% of the balance
of an Educational Account shall be transferred back to the Participant’s
Account if the child with respect to whom the Educational Account is
established dies before reaching: (i) age 23 with respect to an
Educational Account established to finance the child’s undergraduate education,
or (ii) age 28 with respect to an Educational
Account established to finance the child’s post-graduate education.

 

7.6          Other
Withdrawals

 

Upon
the request of a Participant, the Plan Administrator, in its sole discretion,
may pay to the Participant any amount up to the vested portion of the
Participant’s Account.  A Participant
requesting a withdrawal under this Section 7.6 shall apply for the payment
in writing on a form
prescribed by the Plan Administrator for that purpose, and shall provide such
additional information as the Plan Administrator may require.  The Plan Administrator will pay 90% of the
withdrawn amount to the Participant and the remaining 10% will be
forfeited.  A Participant receiving a
withdrawal under this Section 7.6 shall be suspended from making Elective
Deferrals and Share Deferrals under the Plan until the next Entry Date that is
at least twelve (12) months following his or her receipt of such
withdrawal.  Notwithstanding the
foregoing, and only in connection with a one-time request during employment, no
forfeiture amount shall be applied with respect to a Participant distribution
pursuant to this Section 7.6, and no suspension of participation shall be
required, if (a) the distribution commences on or after the Participant
attains age fifty (50) and (b) the distribution election is made at least
one complete Plan Year prior to the distribution date.

 

25

 

7.7          Forfeiture
of Non-Vested Amounts

 

(a)        To the extent that any amounts credited
to a Participant’s Account are not vested at the time such amounts are
otherwise payable under Sections 7.1 and 7.2, they shall be forfeited.  Such forfeited amounts, as well as
forfeitures pursuant to Sections 7.5 and 7.6, shall be used to satisfy the
Employer’s obligation to make contributions to the Funding Trust under the
Plan.

 

(b)        If (i) the Plan pays to any
terminated Participant who is not 100% vested in his or her Account, the vested
portion of his or her Account prior to the time such Participant   has incurred five (5) consecutive
Breaks in Service for purposes of the Qualified Plan and (ii) such
Participant resumes employment as an Eligible Employee after receipt of such
distribution and before incurring five (5) consecutive Breaks in Service,
the provisions of this Section 7.7(b) shall apply.  Upon such reemployment, the forfeited portion
of the Participant’s Account shall be restored to his or her credit and an
additional Employer contribution in that amount shall be made for that
purpose.  The restored portion of the
Eligible Employee’s Account shall remain subject to the terms of the Plan and
shall be subject to the vesting provisions of Article 6, but shall include
the Credited Service prior to and following the Eligible Employee’s Breaks in
Service.

 

7.8          Taxes

 

Income
taxes and other taxes payable with respect to an Account shall be deducted from
such Account.  All federal, state or
local taxes that the Plan Administrator determines are required to be withheld
from any payments made pursuant to this Article 7 shall be withheld.

 

26

 

ARTICLE 8

 

PLAN ADMINISTRATOR

 

8.1          Plan Administration and
Interpretation

 

The
Plan Administrator shall oversee the administration of the Plan.  Notwithstanding any other provision of the
Plan to the contrary, the Plan Administrator shall have complete control and
authority to determine the rights and benefits and all claims, demands and
actions arising out of the provisions of the Plan of any Participant,
beneficiary, deceased Participant, or other person having or claiming to have
any interest under the Plan.  The Plan
Administrator shall have complete discretion to interpret the Plan and to
decide all matters under the Plan.  Such interpretation
and decision shall be final, conclusive and binding on all
Participants and any person claiming under or through any Participant, in the absence of
clear and convincing evidence that the Plan Administrator acted arbitrarily and
capriciously.  Any individual(s) serving
as Plan Administrator who is a Participant shall not vote or act on any matter
relating solely to himself or herself. 
When making a determination or calculation, the Plan Administrator shall
be entitled to rely on information furnished by a Participant, a beneficiary,
the Employer or the Funding Trustee.  The
Plan Administrator shall have the responsibility for complying with any
reporting and disclosure requirements of ERISA.

 

8.2          Powers, Duties,
Procedures, Etc.

 

The
Plan Administrator shall have such powers and duties, may adopt such rules and
tables, may act in accordance with such procedures, may appoint such officers
or agents, may delegate such powers and duties, may receive such reimbursements
and compensation, may determine fees to be paid by Participants in connection
with Plan administration, and shall follow

 

27

 

such claims
and appeal procedures with respect to the Plan as the Plan Administrator may
establish.

 

8.3          Information

 

To
enable the Plan Administrator to perform its functions, the Employer shall
supply full and timely information to the Plan Administrator on all matters
relating to the compensation of Participants, their employment, retirement,
death, termination of employment, and such other pertinent facts as the Plan
Administrator may require.

 

8.4          Indemnification of
Plan Administrator

 

EQR
agrees to indemnify and to defend to the fullest extent permitted by law any
officer(s) or employee(s) who serve as Plan Administrator (including
any such individual who formerly served as Plan Administrator) against all
liabilities, damages, costs and expenses  (including
reasonable attorneys’ fees and amounts paid in settlement of any claims
approved by EQR
in writing in advance) occasioned by any act or omission to act in connection
with the Plan, if such act or omission is in good faith.

 

ARTICLE
9

 

CLAIMS
PROCEDURES

 

A
Participant, beneficiary or an authorized representative (a “claimant”) shall
make all claims for benefits
under the Plan in writing addressed to the Administrator at the address of the
Company.  Each claim shall be reviewed by
the Administrator within a reasonable time after it is submitted, but in no
event longer than ninety (90) days after it is received by the
Administrator.  If a claim is wholly or
partially denied, the claimant shall be sent written notice of such fact.  If a

 

28

 

decision
on a claim cannot be rendered by the Administrator within the ninety (90) day
period, the Administrator may extend the period in which to render the decision
up to one hundred eighty (180) days after receipt of the written claim.  The denial notice, which shall be written in
a manner calculated to be understood by the claimant, shall contain
(a) the specific reason(s) for the adverse determination,
(b) reference to the specific Plan provisions on which the adverse
determination is based, (c) a description of any additional material information necessary for the claim to be
granted and an explanation of why such information is necessary, and (d) a
description of the Plan’s claim review procedures, the time limits under the
procedures and a statement regarding the claimant’s right to bring a civil
action under Section 502(a) of the
Employee Retirement Income Security Act of 1974 (“ERISA”) following an adverse
benefit determination on appeal.

 

Within
sixty (60) days after receipt by the claimant of written notice of the denial,
the claimant or his duly authorized representative may appeal such denial by
filing a written application for review with the Administrator at the address
of the Company.  Each such application
shall state the grounds upon which the claimant seeks to have the claim
reviewed.  The claimant or his
representative may request access to all pertinent documents relative to the
claim for the purpose of preparing the application.  The Administrator will then review the
decision and notify the claimant in writing of the result within sixty (60)
days of receipt of the application for review. 
The sixty (60) day period may be extended if specific circumstances
require an extension of time for processing, in which case the decision shall
be rendered as soon as possible, but no later than one hundred twenty
(120) days after receipt of the application for review.  The appeal denial notice, which shall be
written in a manner calculated to be understood by the claimant, shall contain (a) the
specific reason or reasons for the adverse determination, (b)

 

29

 

reference
to the specific Plan provisions on which the adverse determination is based, (c) a
statement that the claimant is entitled to receive, upon written request and
free of charge, access to and copies of all documents, records and other
information relevant to the benefit claim, and (d) a statement regarding
the claimant’s right to bring a civil action under Section 502(a) of
ERISA following an adverse benefit determination on appeal.

 

ARTICLE 10

 

AMENDMENT AND TERMINATION

 

10.1        Amendment

 

EQR
shall have the right to amend the Plan from time to time, subject to Section 10.3,
by an instrument
in writing which has been executed on its behalf by a duly authorized
officer.  Notwithstanding the foregoing,
no amendment shall cause the Plan to be subject to Code Section 409A.

 

10.2        Termination
of Plan

 

The
Plan is strictly a voluntary undertaking on the part of the Employers and shall
not be deemed to constitute a
contract between an Employer and any Eligible Employee (or any
other
employee) or any Eligible Trustee, a consideration for, or an inducement or
condition of employment for, the performance of the services by any Eligible
Employee (or other employee) or any Eligible Trustee.  EQR reserves the right to terminate the Plan
at any time, subject to Section 10.3, by an instrument in writing which has been executed
on its behalf by a duly authorized officer. 
Upon termination, EQR may (a) elect to continue to maintain the
Funding Trust to pay benefits hereunder as they become due as if
the Plan had not terminated or (b) direct the Funding Trustee to pay
promptly to Participants (or their beneficiaries) the vested balance of

 

30

 

their Accounts.  For purposes of the preceding sentence, in
the event clause (b) is implemented, the Account balance of all
Participants who are in the employ of an Employer at the time the Funding
Trustee is directed to pay such balances shall become fully vested and
nonforfeitable.  After Participants and
their beneficiaries are paid all Plan benefits to which they are entitled, all
remaining assets of the Funding Trust attributable to Participants who terminated
employment with the Employers prior to termination of the Plan and who were not
fully vested in their Accounts under Article 6 at that time shall be
returned to the Employers.

 

10.3        Existing Rights

 

No
amendment or termination of the Plan shall adversely affect the rights of any
Participant with respect to amounts that have been credited to his or her
Account prior to the date of such amendment or termination.

 

ARTICLE 11

 

MISCELLANEOUS

 

11.1        No Funding

 

The
Plan constitutes a mere promise by the Employers to make payments in accordance
with the terms of the Plan and Participants and beneficiaries shall have the
status of general unsecured creditors of the Employers. 
Nothing in the Plan will be construed to give any employee or any other
person rights to any specific assets of an Employer or of any other
person.  In all events, it is the intent
of the Employers that the Plan be treated as unfunded for tax purposes and for
purposes of Title I of ERISA.  Subject to
the foregoing, EQR shall have the authority to establish and maintain a grantor
trust for the purpose of providing benefits under the terms of the Plan.

 

31

 

11.2        Non-assignability

 

None
of the benefits, payments, proceeds or claims of any Participant or beneficiary
shall be subject to any claim of any creditor of any Participant or beneficiary
and, in particular, the same shall not be subject to attachment or garnishment
or other legal process by any creditor of such Participant or beneficiary,
nor shall any Participant or beneficiary have any right to alienate,
anticipate, commute, pledge, encumber or assign any of the benefits or payments
or proceeds which he or she may expect to receive, contingently or otherwise
under the Plan.

 

11.3        Limitation of Participant’s Rights

 

Nothing
contained in the Plan shall confer upon any person a right to be employed or to
continue in the employ of an Employer or on the Board of Trustees of EQR, or
interfere in any way with the right of an Employer to terminate the employment
of a Participant in the Plan at any time, with or without cause.

 

11.4        Participants Bound

 

Any
action with respect to the Plan taken by the Plan Administrator or the Funding
Trustee or any action authorized by or taken at the direction of the Plan
Administrator, an Employer or the Funding Trustee shall be conclusive upon all
Participants and beneficiaries entitled to benefits under the Plan.

 

11.5        Receipt and Release

 

Any payment to any Participant or beneficiary
in accordance with the provisions of the Plan shall, to the extent thereof, be
in full satisfaction of all claims against the Employers, the

 

32

 

Plan Administrator and the Funding Trustee
under the Plan, and the Plan Administrator may require such Participant or
beneficiary, as a condition precedent to such payment, to execute a receipt and
release to such effect.  If any
Participant or beneficiary is determined by the Plan Administrator to be
incompetent by reason of physical or mental disability (including minority) to give a valid receipt and release, the Plan Administrator may cause
the payment or payments becoming due to such person to be made to another
person for his or her benefit without responsibility on the part of the Plan
Administrator, the Employers or the Funding Trustee to follow the application
of such funds.

 

11.6        Governing Law

 

The Plan shall be construed, administered,
and governed in all respects under and by the laws of the State of Illinois to
the extent not superseded by federal law. 
If any provision shall be held by a court of competent jurisdiction to
be invalid or unenforceable, the remaining provisions hereof shall continue to
be fully effective.

 

11.7        Headings and
Subheadings

 

Headings
and subheadings in this Plan are inserted for convenience only and are not to
be considered in the construction of the provisions hereof.

 

 

EXECUTED,
on behalf of EQR, this 24th day of April, 2008.

 

 

	
   

  	
   

  	
   

  	
  EQUITY RESIDENTIAL

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
    /s/  Catherine
  Carraway

  

 

33Exhibit 4.1

 

THE WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF
THIS WARRANT (COLLECTIVELY, THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY
STATE SECURITIES OR BLUE SKY LAWS (“BLUE SKY LAWS”).  NO TRANSFER, SALE, ASSIGNMENT, PLEDGE,
HYPOTHECATION OR OTHER DISPOSITION OF THIS WARRANT OR THE SECURITIES OR ANY
INTEREST THEREIN MAY BE MADE EXCEPT (A) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE BLUE SKY
LAWS OR (B) IF THE COMPANY HAS BEEN FURNISHED WITH BOTH AN OPINION OF
COUNSEL FOR THE HOLDER, WHICH OPINION AND COUNSEL SHALL BE SATISFACTORY TO THE
COMPANY, TO THE EFFECT THAT NO REGISTRATION IS REQUIRED BECAUSE OF THE
AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND
APPLICABLE BLUE SKY LAWS, AND ASSURANCES THAT THE TRANSFER, SALE, ASSIGNMENT,
PLEDGE, HYPOTHECATION OR OTHER DISPOSITION WILL BE MADE ONLY IN COMPLIANCE WITH
THE CONDITIONS OF ANY SUCH REGISTRATION OR EXEMPTION.

 

FORM OF WARRANT

FOR

SHARES OF COMMON STOCK

OF

PROUROCARE MEDICAL INC.

 

	
  Warrant No.

  	
   

  	
  Golden Valley, Minnesota

  
	
   

  	
   

  	
  April 3,
  2008

  

 

FOR VALUE RECEIVED,
                            , or his successors or assigns (“Holder”),
is entitled to subscribe for and purchase from ProUroCare Medical Inc., a
Nevada corporation (the “Company”), up to Twenty-Five
Thousand (25,000) fully paid and non-assessable shares of the
Company’s common stock, $0.00001 par value per share (the “Common Stock”),
at the price of $1.50 per share, subject to adjustments as noted in section 3
below (the “Warrant Exercise Price”).

 

This warrant may
be exercised by Holder at any time or from time to time on or prior to the fifth anniversary of the date hereof.

 

This warrant is subject
to the following provisions, terms and conditions:

 

1.             Exercise of Warrant.  The rights represented by this warrant may be
exercised by the Holder, in whole or in part, by written notice of exercise
delivered to the Company at least three days prior to the intended date of
exercise and by the surrender of this warrant (properly endorsed if required)
at the principal office of the Company and upon payment to it by cash,
certified check or bank draft of the purchase price for such shares. The shares
so purchased shall be deemed to be issued as of the close of business on the
date on which this warrant has been exercised by its surrender and payment to
the Company of the Warrant Exercise Price. 
Certificates for the shares of stock so purchased, bearing the
restrictive legend set forth in Section 5 of this warrant, shall be
delivered to the Holder within 15 days after the rights represented by this
warrant shall have been so exercised, and, unless this warrant has expired, a
new warrant representing the number of shares, if 

 

1

 

any, with respect to which this warrant has not been exercised shall
also be delivered to the Holder within such time.  No fractional shares shall be issued upon the
exercise of this warrant.

 

2.             Certain Covenants of the
Company.  The Company covenants and
agrees that all shares that may be issued upon the exercise of the rights
represented by this warrant shall, upon issuance, be duly authorized and
issued, fully paid and non-assessable shares. 
The Company further covenants and agrees that during the period within
which the rights represented by this warrant may be exercised, the Company will
at all times have authorized, and reserved for the purpose of issue or transfer
upon exercise of the subscription rights evidenced by this warrant, a
sufficient number of shares of Common Stock to provide for the exercise of the
rights represented by this warrant.

 

3.             Adjustment of Exercise Price and
Number of Shares.  The number of
shares the Holder may purchase and the Warrant Exercise Price shall be subject
to adjustment from time to time as hereinafter provided in this section 3.

 

(a)           Stock Dividend, Stock Split or
Stock Combination.  If the Company at
any time divides the outstanding shares of its Common Stock into a greater
number of shares (whether pursuant to a stock split, stock dividend or
otherwise), and conversely, if the outstanding shares of its Common Stock are
combined into a smaller number of shares, the Warrant Exercise Price in effect
immediately prior to such division or combination shall be proportionately
adjusted to reflect the reduction or increase in the value of each such Common
Stock.

 

(b)           Effect of Reorganization,
Reclassification or Merger.  If any
capital reorganization or reclassification of the capital stock of the Company,
or consolidation or merger of the Company with another corporation, or the sale
of all or substantially all of its assets to another corporation shall be
effected in such a way that holders of the Common Stock shall be entitled to
receive stock, securities or assets with respect to or in exchange for such
Common Stock, then, as a condition of such reorganization, reclassification,
consolidation, merger or sale, the Holder shall have the right to purchase and
receive upon the basis and upon the terms and conditions specified in this
warrant and in lieu of the shares of the Common Stock immediately theretofore
purchasable and receivable upon the exercise of the rights represented hereby,
such shares of stock, other securities or assets as would have been issued or
delivered to the Holder if it had exercised this warrant and had received such
shares of Common Stock prior to such reorganization, reclassification,
consolidation, merger or sale.

 

(c)           Notice of Adjustment.  Upon any adjustment of the Warrant Exercise
Price, the Company shall give written notice thereof, by first class mail,
postage prepaid, addressed to the registered Holder of this warrant at the
address of such Holder as shown on the books of the Company, which notice shall
state the Warrant Exercise Price resulting from such adjustment and the
increase or decrease, if any, in the number of shares purchasable at such price
upon the exercise of this warrant, setting forth in reasonable detail the
method of calculation and the facts upon which such calculation is based.

 

4.             No rights as Shareholder.  This warrant shall not entitle the Holder to
any voting rights or other rights as a shareholder of the Company.

 

2

 

5.             Application of Restrictions of
Transfer.

 

(a)           No transfer of this warrant may be
completed unless and until (i) the Company has received an opinion of
counsel for the Company that such securities may be sold pursuant to an
exemption from registration under the Securities Act of 1933, as amended (the “Securities
Act”), or (ii) a registration statement relating to this warrant has
been filed by the Company and declared effective by the Commission.  Subject to the foregoing, this warrant and all
rights hereunder are transferable, in whole or in part, at the principal office
of the Company by the Holder in person or by duly authorized attorney, upon
surrender of this warrant properly endorsed to any person or entity who
represents in writing that he/she/it is acquiring the warrant for investment
and without any view to the sale or other distribution thereof.  Each Holder of this warrant, by taking or
holding the same, consents and agrees that the bearer of this warrant, when
endorsed, may be treated by the Company and all other persons dealing with this
warrant as the absolute owner hereof for any purpose and as the person entitled
to exercise the rights represented by this warrant or perform the obligations
required hereby, or to the transfer hereof on the books of the Company, any
notice to the contrary notwithstanding; but until such transfer on such books,
the Company may treat the registered owner hereof as the owner for all
purposes.

 

(b)           In no event shall the Holder(s) sell
any shares of Common Stock that are issued upon the exercise of the rights
represented by this warrant within 180 days following the effective date of an
initial public offering of the Common Stock of the Company.

 

(c)           Each certificate for shares issued
upon the exercise of the rights represented by this warrant shall bear a legend
as follows unless, in the opinion of counsel to the Company, such legend is not
required in order to ensure compliance with the Securities Act:

 

“THE SECURITIES EVIDENCED BY
THIS CERTIFICATE WERE ISSUED, AND THE SECURITIES ISSUABLE IN CONNECTION WITH
THE CONVERSION OF SUCH SECURITIES WILL BE ISSUED, IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE
SECURITIES LAWS, AND IN RELIANCE UPON THE HOLDER’S REPRESENTATION THAT SUCH
SECURITIES WERE BEING ACQUIRED FOR INVESTMENT AND NOT FOR RESALE.  NO TRANSFER OF THE SECURITIES OR THE
SECURITIES ISSUABLE IN CONNECTION WITH THE CONVERSION OF SUCH SECURTITIES MAY BE
MADE ON THE BOOKS OF THE COMPANY UNLESS (i) SUCH TRANSFER IS MADE PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND APPLICABLE STATE SECURITIES LAWS OR (ii) UNLESS THE HOLDER
SHALL HAVE PROVIDED THE COMPANY WITH AN OPINION OF COUNSEL REASONABLY
ACCEPTABLE TO THE COMPANY TO THE EFFECT THAT NO SUCH REGISTRATION IS REQUIRED.”

 

6.             Governing Law.  This Warrant shall be governed by and
construed in accordance with the laws of the State of Minnesota without regard
to its conflicts-of-law provisions.

 

7.             Amendments and Waivers.  The provisions of this Warrant may not be
amended, modified or supplemented, and waiver or consents to departures from
the provisions hereof 

 

3

 

may not be given, unless the Company agrees in writing and has obtained
the written consent of the Holder.

 

8.             Successors and Assigns.  All the terms and conditions of this Warrant
shall be binding upon and inure to the benefit of the permitted successors and
assigns of the Company and the Holder.

 

9.             Headings and References.  The headings of this Warrant are for
convenience only and shall not affect the interpretation of this Warrant.  Unless the context indicates otherwise, all
references herein to Sections are references to Sections of this Warrant.

 

10.           Notices.  All notices or communications hereunder,
except as herein otherwise specifically provided, shall be in writing.  Notices sent to the Holder shall be mailed,
hand delivered or faxed and confirmed to the Holder at his, her or its address
set forth in the Company’s records. 
Notices sent to the Company shall be mailed, hand delivered or faxed and
confirmed to ProUroCare Medical Inc., 5500 Wayzata Blvd., Suite 310,
Golden Valley, Minnesota 55416, or to such other address as the Company or the
Holder shall notify the other as provided in this Section.

 

IN WITNESS
WHEREOF, the Company has caused this warrant to be signed and delivered by its
duly authorized officer.

 

 

Dated: April 3, 2008.

 

	
   

  	
  PROUROCARE MEDICAL INC.:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Richard C. Carlson

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
				

 

4

 

WARRANT EXERCISE
(CASH/CHECK)

 

(To be signed only upon
exercise of warrant for cash/check)

 

The undersigned,
the holder of the foregoing warrant, hereby irrevocably elects to exercise the
purchase right represented by such warrant for, and to purchase thereunder,                           
 of the shares of Common Stock of
ProUroCare Medical Inc. to which such warrant relates and herewith makes
payment of $                      
 therefor in cash or by check and
requests that the certificates for such shares be issued in the name of, and be
delivered to
                                                              ,
whose address is set forth below the signature of the undersigned.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  

 

INSTRUCTIONS FOR
REGISTRATION OF SECURITIES

 

	
  Name and Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (please typewrite or print in block letters)

  

 

WARRANT ASSIGNMENT

 

(To be signed only upon
transfer of warrant)

 

FOR VALUE RECEIVED,                                                                         hereby
sells, assigns and transfers unto:

 

	
  Name and Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (please typewrite or print in block letters)

  

 

the right to purchase
                    
shares of Common Stock as represented by this warrant to the extent of
                        
shares of Common Stock and as to which such right is exercisable and does
hereby irrevocably constitute and appoint
                                                  
attorney, to transfer the same on the books of the Company with full power of
substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

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