Document:

Exhibit 10.2

GUARANTY OF
PAYMENT

GUARANTY
OF PAYMENT (this “Guaranty”), made as of July 6, 2006, between
EQUITY RESIDENTIAL, a Maryland real estate investment trust, having an address
at Two North Riverside Plaza, Suite 400, Chicago, Illinois 60606 (“Guarantor”),
and JPMORGAN CHASE BANK, N.A., having an office at 277 Park Avenue, New York,
NY 10172, as administrative agent (“Administrative Agent”) for the banks
(the “Banks”) party to the Revolving Credit Bridge Agreement (as the
same may be amended, modified, supplemented or restated, the “Credit
Agreement”), dated as of the date hereof, among ERP Operating Limited
Partnership (“Borrower”), the Banks, and Administrative Agent.

W
I  T  N  E  S  S  E  T  H:

WHEREAS,
the Banks have agreed to make loans (hereinafter collectively referred to as
the “Loans”) and otherwise extend credit to Borrower in an aggregate
principal amount not to exceed $500,000,000;

WHEREAS,
the Loans will be evidenced by certain promissory notes (the “Notes”) of
Borrower made to each of the Banks in accordance with the terms of the Credit
Agreement;

WHEREAS,
the Credit Agreement and the Notes and any other documents executed in
connection therewith are hereinafter collectively referred to as the “Loan
Documents”;

WHEREAS,
capitalized terms used herein and not otherwise defined shall have the meanings
ascribed thereto in the Credit Agreement;

WHEREAS,
Guarantor is the sole general partner of Borrower; and

WHEREAS,
in order further to induce the Administrative Agent and the Banks to enter into
the Loan Documents, Guarantor has agreed to enter into this Guaranty;

NOW,
THEREFORE, in consideration of the premises and the benefits to be derived from
the making of the Loans and the other extensions of credit under the

 

Credit Agreement
by the Banks to Borrower, and in order to induce the Administrative Agent and
the Banks to enter into the Loan Documents, Guarantor hereby agrees as follows:

1.             Guarantor, on behalf of itself and
its successors and assigns, hereby irrevocably, absolutely and unconditionally
guarantees the full and punctual payment when due, whether at stated maturity
or otherwise, of all Obligations of Borrower now or hereafter existing under
the Notes and the Credit Agreement, for principal and/or interest as well as
any and all other amounts due thereunder, including, without limitation, all
indemnity obligations of Borrower thereunder, and any and all reasonable costs
and expenses (including, without limitation, reasonable attorneys’ fees and
disbursements) incurred by the Administrative Agent or the Banks in enforcing
its or their rights under this Guaranty (all of the foregoing obligations being
the “Guaranteed Obligations”).

2.             It is agreed that the Guaranteed
Obligations are primary and this Guaranty shall be enforceable against
Guarantor and its successors and assigns without the necessity for any suit or
proceeding of any kind or nature whatsoever brought by the Administrative Agent
or any Bank against Borrower or its respective successors or assigns or any
other party or against any security for the payment and performance of the
Guaranteed Obligations and without the necessity of any notice of non-payment
or non-observance or of any notice of acceptance of this Guaranty or of any
notice or demand to which Guarantor might otherwise be entitled (including,
without limitation, diligence, presentment, notice of maturity, extension of
time, change in nature or form of the Guaranteed Obligations, acceptance of
further security, release of further security, imposition or agreement arrived
at as to the amount of or the terms of the Guaranteed Obligations, notice of
adverse change in Borrower’s financial condition and any other fact which might
materially increase the risk to Guarantor), all of which Guarantor hereby
expressly waives; and Guarantor hereby expressly agrees that the validity of
this Guaranty and the obligations of Guarantor hereunder shall in no way be
terminated, affected, diminished, modified or impaired by reason of the
assertion of or the failure to assert by the Administrative Agent or any Bank
against Borrower or its

  
 2
 

 

respective
successors or assigns, any of the rights or remedies reserved to the
Administrative Agent and the Banks pursuant to the provisions of the Loan
Documents. Guarantor agrees that any notice or directive given at any time to
the Administrative Agent which is inconsistent with the waiver in the
immediately preceding sentence shall be void and may be ignored by the
Administrative Agent and the Banks, and, in addition, may not be pleaded or
introduced as evidence in any litigation relating to this Guaranty for the
reason that such pleading or introduction would be at variance with the written
terms of this Guaranty, unless the Administrative Agent and the Banks have
specifically agreed otherwise in a writing, signed by a duly authorized officer.
Guarantor specifically acknowledges and agrees that the foregoing waivers are
of the essence of this transaction and that, but for this Guaranty and such
waivers, the Administrative Agent and the Banks would decline to execute the
Loan Documents.

3.             Guarantor waives, and covenants and
agrees that it will not at any time insist upon, plead or in any manner
whatsoever claim or take the benefit or advantage of, any and all appraisal,
valuation, stay, extension, marshalling-of-assets or redemption laws, or right
of homestead or exemption, whether now or at any time hereafter in force, which
may delay, prevent or otherwise affect the performance by Guarantor of its
obligations under, or the enforcement by the Administrative Agent of, this
Guaranty. Guarantor further covenants and agrees not to set up or claim any
defense, counterclaim, offset, set-off or other objection of any kind to any
action, suit or proceeding at law, in equity or otherwise, or to any demand or
claim that may be instituted or made by the Administrative Agent other than the
defense of the actual timely payment and performance by Borrower of the
Guaranteed Obligations; provided, however, that the foregoing shall not be
deemed a waiver of Guarantor’s right to assert any compulsory counterclaim, if
such counterclaim is compelled under local law or rule of procedure, nor
shall the foregoing be deemed a waiver of Guarantor’s right to assert any claim
which would constitute a defense, setoff, counterclaim or crossclaim of any
nature whatsoever against Administrative Agent or any Bank in any separate
action or proceeding. Guarantor represents, warrants and agrees that, as of the
date hereof, its obligations under this Guaranty are not subject to any

  
 3
 

 

counterclaims,
offsets or defenses against the Administrative Agent or any Bank of any kind.

4.             The provisions of this Guaranty are
for the benefit of the Administrative Agent and the Banks and their successors
and permitted assigns, and nothing herein contained shall impair as between
Borrower and the Administrative Agent and the Banks the obligations of Borrower
under the Loan Documents.

5.             This Guaranty shall be a continuing, irrevocable,
unconditional and absolute guaranty and the liability of Guarantor hereunder
shall in no way be terminated, affected, modified, impaired or diminished by
reason of the happening, from time to time, of any of the following, although
without notice or the further consent of Guarantor:

(a)           any assignment, amendment,
modification or waiver of or change in any of the terms, covenants, conditions
or provisions of any of the Guaranteed Obligations or the Loan Documents or the
invalidity or unenforceability of any of the foregoing; or

(b)           any extension of time that may be
granted by the Administrative Agent or any Bank to Borrower, any guarantor, or
their respective successors or assigns, heirs, executors, administrators or
personal representatives; or

(c)           any action which the Administrative
Agent or any Bank may take or fail to take under or in respect of any of the
Loan Documents or by reason of any waiver or, or failure to enforce any of the
rights, remedies, powers or privileges available to the Administrative Agent
and the Banks under this Guaranty or available to the Administrative Agent and
the Banks at law, in equity or otherwise, or any action on the part of the
Administrative Agent or any Bank granting indulgence or extension in any form
whatsoever; or

(d)           any sale, exchange, release, or other
disposition of any property pledged, mortgaged or conveyed, or any property in
which the Administrative Agent and/or the Banks have been granted a lien or
security interest to secure any indebtedness of

  
 4
 

 

Borrower to the Administrative Agent and/or the Banks
or any impairment of or failure to perfect any security interests therein; or

(e)           any release of any person or entity
who may be liable in any manner for the payment and collection of any amounts
owed by Borrower to the Administrative Agent and/or the Banks; or

(f)            the application of any sums by
whomsoever paid or however realized to any amounts owing by Borrower to the
Administrative Agent and/or the Banks under the Loan Documents in such manner
as the Administrative Agent shall determine in its sole discretion; or

(g)           Borrower’s or any guarantor’s voluntary
or involuntary liquidation, dissolution, sale of all or substantially all of
their respective assets and liabilities, appointment of a trustee, receiver,
liquidator, sequestrator or conservator for all or any part of Borrower’s or
any guarantor’s assets, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment, or the
commencement of other similar proceedings affecting Borrower or any guarantor
or any of the assets of any of them, including, without limitation, (i) the
release or discharge of Borrower or any guarantor from the payment and
performance of their respective obligations under any of the Loan Documents by
operation of law, or (ii) the impairment, limitation or modification of the
liability of Borrower or any guarantor in bankruptcy, or of any remedy for the
enforcement of the Guaranteed Obligations under any of the Loan Documents, or
Guarantor’s liability under this Guaranty, resulting from the operation of any
present or future provisions of the Bankruptcy Code or other present or future
federal, state or applicable statute or law or from the decision in any court;
or

(h)           any improper disposition by Borrower
of the proceeds of the Loans, it being acknowledged by Guarantor that the
Administrative Agent or any Bank shall be entitled to honor any request made by
Borrower for a disbursement of such proceeds and that neither the
Administrative Agent nor any Bank

  
 5
 

 

shall have any obligation to see to the proper
disposition by Borrower of such proceeds.

6.             Guarantor agrees that if at any
time all or any part of any payment at any time received by the Administrative
Agent or any Bank from Borrower or Guarantor or any other Person obligated in
respect of the Guaranteed Obligations under or with respect to this Guaranty is
or must be rescinded or returned by the Administrative Agent or any Bank for
any reason whatsoever (including, without limitation, the insolvency,
bankruptcy or reorganization of Borrower or Guarantor or such other Person),
then Guarantor’s obligations hereunder shall, to the extent of the payment
rescinded or returned, be deemed to have continued in existence notwithstanding
such previous receipt by such party, and Guarantor’s obligations hereunder
shall continue to be effective or be reinstated, as the case may be, as to such
payment, as though such previous payment had never been made.

7.             Until this Guaranty is terminated
pursuant to the terms hereof, Guarantor (i) shall have no right of
subrogation against Borrower or any entity comprising same by reason of any
payments or acts of performance by Guarantor in compliance with the obligations
of Guarantor hereunder; (ii) waives any right to enforce any remedy which
Guarantor now or hereafter shall have against Borrower or any entity comprising
same by reason of any one or more payment or acts of performance in compliance
with the obligations of Guarantor hereunder and (iii) from and after an
Event of Default, subordinates any liability or indebtedness of Borrower or any
entity comprising same now or hereafter held by Guarantor or any affiliate of
Guarantor to the obligations of Borrower under the Loan Documents. The
foregoing, however, shall not be deemed in any way to limit any rights that
Guarantor may have pursuant to the Agreement of Limited Partnership of Borrower
or which it may have at law or in equity with respect to any other partners of
Borrower.

8.             Guarantor represents and warrants
to the Administrative Agent and the Banks with the knowledge that the
Administrative Agent and the Banks are relying upon the same, as follows:

  
 6
 

 

(a)           as of the date hereof, Guarantor is
the sole general partner of Borrower;

(b)           based upon such relationship,
Guarantor has determined that it is in its best interests to enter into this
Guaranty;

(c)           this Guaranty is necessary and
convenient to the conduct, promotion and attainment of Guarantor’s business,
and is in furtherance of Guarantor’s business purposes;

(d)           the benefits to be derived by
Guarantor from Borrower’s access to funds and other credit made possible by the
Loan Documents are at least equal to the obligations undertaken pursuant to
this Guaranty;

(e)           Guarantor is solvent and has full
power and legal right to enter into this Guaranty and to perform its
obligations under the terms hereof and (i) Guarantor is organized and
validly existing under the laws of the State of Maryland, (ii) Guarantor
has complied with all provisions of applicable law in connection with all
aspects of this Guaranty, and (iii) the person executing this Guaranty has
all the requisite power and authority to execute and deliver this Guaranty;

(f)            to the best of Guarantor’s
knowledge, there is no action, suit, proceeding, or investigation pending or
threatened against or affecting Guarantor at law, in equity, in admiralty or
before any arbitrator or any governmental department, commission, board,
bureau, agency or instrumentality (domestic or foreign) which is likely to
materially and adversely affect the property, assets or condition (financial or
otherwise) of Guarantor or which is likely to materially and adversely impair
the ability of Guarantor to perform its obligations under this Guaranty;

(g)           the execution and delivery of and the
performance by Guarantor of its obligations under this Guaranty have been duly
authorized by all necessary action on the part of Guarantor and do not (i) violate
any provision of any law, rule, regulation

  
 7
 

 

(including, without limitation, Regulation U or X of
the Federal Reserve Board of the United States), order, writ, judgment, decree,
determination or award presently in effect having applicability to Guarantor or
the organizational documents of Guarantor, the consequences of which violation
would materially and adversely affect the property, assets or condition
(financial or otherwise) of Guarantor or which is likely to materially and
adversely impair the ability of Guarantor to perform its obligations under this
Guaranty or (ii) violate or conflict with, result in a breach of or
constitute (with due notice or lapse of time or both) a default under any
indenture, agreement or other instrument to which Guarantor is a party, or by
which Guarantor or any of its property is bound, the consequences of which
violation, conflict, breach or default would materially and adversely affect
the property, assets or condition (financial or otherwise) of Guarantor or
which is likely to materially and adversely impair the ability of Guarantor to
perform its obligations under this Guaranty;

 

(h)           this Guaranty has been duly executed
by Guarantor and constitutes the legal, valid and binding obligation of
Guarantor, enforceable against it in accordance with its terms except as
enforceability may be limited by applicable insolvency, bankruptcy or other
laws affecting creditors’ rights generally or general principles of equity,
whether such enforceability is considered in a proceeding in equity or at law;

(i)            no authorization, consent, approval,
license or formal exemption from, nor any filing, declaration or registration
with, any Federal, state, local or foreign court, governmental agency or
regulatory authority is required in connection with the making and performance
by Guarantor of this Guaranty, except those which have already been obtained;

(j)            Guarantor is not an “investment
company” as that term is defined in, nor is it otherwise subject to regulation
under, the Investment Company Act of 1940, as amended;

  
 8

 

(k)           Guarantor
is not engaged principally, or as one of its important activities, in the
business of purchasing, carrying, or extending credit for the purpose of
purchasing or carrying any margin stock (within the meaning of Regulation U of
the Board of Governors of the Federal Reserve System of the United States); and

(l)            All
of the representations and warranties in the Credit Agreement concerning
Guarantor are true and correct.

Guarantor
covenants that it will comply or cause compliance with all covenants in the
Credit Agreement which are applicable to it.

9.             Guarantor and the Administrative
Agent each acknowledge and agree that this Guaranty is a guarantee of payment
and performance and not of collection and enforcement in respect of any
obligations which may accrue to the Administrative Agent and/or the Banks from
Borrower under the provisions of any Loan Document.

10.           Subject to the terms and conditions
of the Credit Agreement, and in conjunction therewith, the Administrative Agent
or any Bank may assign any or all of its rights under this Guaranty. In the
event of any such assignment, the Administrative Agent shall give Guarantor
prompt notice of same. If the Administrative Agent or any Bank elects to sell
all the Loans or participations in the Loans and the Loan Documents, including
this Guaranty, the Administrative Agent or any Bank may forward to each
purchaser and prospective purchaser all documents and information relating to
this Guaranty or to Guarantor, whether furnished by Borrower or Guarantor or
otherwise, subject to the terms and conditions of the Credit Agreement.

11.           Guarantor agrees, upon the written
request of the Administrative Agent, to execute and deliver to the
Administrative Agent, from time to time, any modification or amendment hereto
or any additional instruments or documents reasonably considered necessary by
the Administrative Agent or its counsel to cause this Guaranty to be, become or
remain valid and effective in accordance with its terms, provided, that any
such modification, amendment, additional instrument or document

 9
 

 

shall not increase
Guarantor’s obligations or diminish its rights hereunder and shall be
reasonably satisfactory as to form to Guarantor and to Guarantor’s counsel.

12.           The representations and warranties of
Guarantor set forth in this Guaranty shall survive until this Guaranty shall
terminate in accordance with the terms hereof.

13.           This Guaranty contains the entire
agreement among the parties with respect to the subject matter hereof and
supersedes all prior agreements relating to such subject matter and may not be
modified, amended, supplemented or discharged except by a written agreement
signed by Guarantor and the Administrative Agent (acting with the requisite
consent of the Banks as provided in the Credit Agreement).

14.           If all or any portion of any
provision contained in this Guaranty shall be determined to be invalid, illegal
or unenforceable in any respect for any reason, such provision or portion
thereof shall be deemed stricken and severed from this Guaranty and the
remaining provisions and portions thereof shall continue in full force and
effect.

15.           This Guaranty may be executed in
counterparts which together shall constitute the same instrument.

16.           All notices, requests and other
communications to any party hereunder shall be in writing (including bank wire,
facsimile transmission followed by telephonic confirmation or similar writing)
and shall be addressed to such party at the address set forth below or to such
other address as may be identified by any party in a written notice to the
others:

	
  If to Guarantor:

  	
  Equity Residential

  
	
   

  	
  Two North Riverside
  Plaza

  
	
   

  	
  Suite 400

  
	
   

  	
  Chicago, Illinois 60606

  
	
   

  	
  Attn: Chief Financial Officer

  
	
   

  	
   

  
	
  With Copies of

  	
   

  
	
  Notices to

  	
   

  
	
  Guarantor to:

  	
  Equity Residential

  
	
   

  	
  Two North Riverside Plaza

  
	
   

  	
   

  
	
   

  	
   

  

 

 10
 

 

 

	
  

  	
  Suite 400

  
	
   

  	
  Chicago, Illinois 60606

  
	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  DLA Piper Rudnick Gray Cary US LLP

  
	
   

  	
  203 North LaSalle Street

  
	
   

  	
  Suite 1900

  
	
   

  	
  Chicago, Illinois 60601

  
	
   

  	
  Attn: James M. Phipps, Esq.

  
	
   

  	
   

  
	
  If to the

  	
   

  
	
  Administrative

  	
   

  
	
  Agent:

  	
  JPMorgan Chase Bank, N.A.

  
	
   

  	
  277 Park Avenue

  
	
   

  	
  New York, NY 10172

  
	
   

  	
  Attn: Marc Costantino

  
	
   

  	
   

  
	
  With Copies of

  	
   

  
	
  Notices to the

  	
   

  
	
  Administrative

  	
   

  
	
  Agent to:

  	
  Skadden, Arps, Slate,

  
	
   

  	
      Meagher & Flom LLP

  
	
   

  	
  Four Times Square

  
	
   

  	
  New York, New York 10036

  
	
   

  	
  Attn: Martha Feltenstein, Esq.

  

 

Each such notice,
request or other communication shall be effective (i) if given by
facsimile transmission, when such facsimile is transmitted to the facsimile number
specified in this Section and the appropriate facsimile confirmation is
received, (ii) if given by certified or registered mail, return receipt
requested, with first class postage prepaid, addressed as aforesaid, upon
receipt or refusal to accept delivery, (iii) if given by a nationally
recognized overnight carrier, 24 hours after such communication is deposited
with such carrier with postage prepaid for next day delivery, or (iv) if
given by any other means, when delivered at the address specified in this
Section.

17.           Any acknowledgment or new promise,
whether by payment of principal or interest or otherwise by Borrower or
Guarantor, with respect to the Guaranteed Obligations shall, if the statute of
limitations in favor

 11
 

 

of Guarantor against the
Administrative Agent and the Banks shall have commenced to run, toll the
running of such statute of limitations, and if the period of such statute of
limitations shall have expired, prevent the operation of such statute of
limitations.

18.           This Guaranty shall be binding upon
Guarantor and its successors and assigns and shall inure to the benefit of the
Administrative Agent and the Banks and their successors and permitted assigns;
provided, however, that the Guarantor may not assign or transfer any of its
rights or obligations hereunder without the prior written consent of all of the
Banks, and any attempted such assignment or transfer without such consent shall
be null and void.

19.           The failure of the Administrative
Agent to enforce any right or remedy hereunder, or promptly to enforce any such
right or remedy, shall not constitute a waiver thereof, nor give rise to any
estoppel against the Administrative Agent or any Bank, nor excuse Guarantor
from its obligations hereunder. Any waiver of any such right or remedy to be
enforceable against the Administrative Agent and the Banks must be expressly
set forth in a writing signed by the Administrative Agent (acting with the
requisite consent of the Banks as provided in the Credit Agreement).

20.           (a) THIS GUARANTY AND THE RIGHTS
AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH
AND BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

(b) Any legal
action or proceeding with respect to this Guaranty and any action for
enforcement of any judgment in respect thereof may be brought in the courts of
the State of New York or of the United States of America for the Southern
District of New York, and, by execution and delivery of this Guaranty, the
Guarantor hereby accepts for itself and in respect of its property, generally
and unconditionally, the non-exclusive jurisdiction of the aforesaid courts and
appellate courts from any thereof. The Guarantor irrevocably consents to the
service of process out of any of the aforementioned courts in any such action or
proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to the Guarantor at its address for notices set

 12
 

 

forth herein. The
Guarantor hereby irrevocably waives any objection which it may now or hereafter
have to the laying of venue of any of the aforesaid actions or proceedings
arising out of or in connection with this Guaranty brought in the courts
referred to above and hereby further irrevocably waives and agrees not to plead
or claim in any such court that any such action or proceeding brought in any
such court has been brought in an inconvenient forum. Nothing herein shall
affect the right of the Administrative Agent to serve process in any other
manner permitted by law or to commence legal proceedings or otherwise proceed
against the Guarantor in any other jurisdiction.

(c)           GUARANTOR HEREBY WAIVES ITS RIGHTS TO
A JURY TRIAL OF ANY AND ALL CLAIMS OR CAUSES OF ACTION BASED UPON OR ARISING
OUT OF THIS GUARANTY. IT IS HEREBY ACKNOWLEDGED BY GUARANTOR THAT THE WAIVER OF
A JURY TRIAL IS A MATERIAL INDUCEMENT FOR THE ADMINISTRATIVE AGENT AND THE
BANKS TO ACCEPT THIS GUARANTY AND THAT THE LOANS AND OTHER EXTENSIONS OF CREDIT
MADE BY THE BANKS ARE MADE IN RELIANCE UPON SUCH WAIVER. GUARANTOR FURTHER
WARRANTS AND REPRESENTS THAT SUCH WAIVER HAS BEEN KNOWINGLY AND VOLUNTARILY
MADE, FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION,
THIS GUARANTY MAY BE FILED BY THE ADMINISTRATIVE AGENT IN COURT AS A
WRITTEN CONSENT TO A NON-JURY TRIAL.

(d)           Guarantor does hereby further
covenant and agree to and with the Administrative Agent and the Banks that
Guarantor may be joined in any action against Borrower in connection with the
Loan Documents and that recovery may be had against Guarantor in such action or
in any independent action against Guarantor (with respect to the Guaranteed
Obligations), without the Administrative Agent and the Banks first pursuing or
exhausting any remedy or claim against Borrower or its successors or assigns. Guarantor
also agrees that, in an action brought with respect to the Guaranteed
Obligations in any jurisdiction, it shall be conclusively bound by the judgment
in any such action by the Administrative Agent (wherever brought) against
Borrower or its successors or assigns, as if Guarantor were a party to such
action, even though Guarantor was not joined as a party in such action.

 13
 

 

(e)           Guarantor agrees to pay all
reasonable expenses (including, without limitation, attorneys’ fees and
disbursements) which may be incurred by the Administrative Agent or the Banks
in connection with the enforcement of their rights under this Guaranty, whether
or not suit is initiated.

21.           Notwithstanding anything to the
contrary contained herein (but subject to Section 6 hereof), this Guaranty
shall terminate and be of no further force or effect upon the full performance
and payment of the Guaranteed Obligations hereunder. Upon termination of this
Guaranty in accordance with the terms of this Guaranty, the Administrative
Agent promptly shall deliver to Guarantor such documents as Guarantor or
Guarantor’s counsel reasonably may request in order to evidence such
termination.

22.           All of the Administrative Agent’s and
the Banks’ rights and remedies under each of the Loan Documents or under this
Guaranty are intended to be distinct, separate and cumulative and no such right
or remedy therein or herein mentioned is intended to be in exclusion of or a
waiver of any other right or remedy available to the Administrative Agent or
any Bank.

23.           No claim may be made by Guarantor or
any other Person acting by or through Guarantor against the Administrative
Agent or any Bank or the affiliates, directors, officers, employees, attorneys
or agent of any of them for any consequential or punitive damages in respect of
any claim for breach of contract or any other theory of liability arising out
of or related to the transactions contemplated by this Guaranty or by the other
Loan Documents, or any act, omission or event occurring in connection
therewith; and Guarantor hereby waives, releases and agrees not to sue upon any
claim for any such damages, whether or not accrued and whether or not known or
suspected to exist in its favor.

 14
 

 

IN WITNESS
WHEREOF, the parties hereto have executed and delivered this Guaranty as of the
date and year first above written.

 

	
  

  	
   

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EQUITY RESIDENTIAL

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Mark J. Parrell

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Mark J. Parrell

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior Vice President and Treasurer

  

 

 

	
  ACCEPTED:

  	
   

  
	
   

  
	
  JPMORGAN CHASE BANK, N.A.,

  
	
  AS ADMINISTRATIVE AGENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Marc E. Costantino

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Marc E. Costantino

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  	
   

  
						

 

 15
 

 

ACKNOWLEDGMENT FOR
GUARANTOR

	
  STATE OF

  	
  Illinois

  	
   

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
  ) ss.

  	
   

  
	
  COUNTY OF 

  	
  Cook

  	
   

  	
   

  	
  )

  	
   

  
								

 

On June 27,
2006, before me personally came  Mark
Parrell,  to me known to be the
person who executed the foregoing instrument, and who, being duly sworn by me,
did depose and say that he is Senior Vice President and Treasurer of
Equity Residential, and that he executed the foregoing instrument in the
organization’s name, and that he had authority to sign the same, and he
acknowledged to me that he executed the same as the act and deed of said
organization for the uses and purposes therein mentioned.

[Seal]

 

	
  

  	
   

  	
  /s/ Katrina 
  Feagins

  
	
   

  	
   

  	
  Notary Public

  

 

 

 16Exhibit 10.1

IKANOS
COMMUNICATIONS, INC.

AMENDED AND
RESTATED

2004 EQUITY
INCENTIVE PLAN

RESTRICTED STOCK
UNIT AGREEMENT

NOTICE OF GRANT OF
RESTRICTED STOCK UNITS

The terms defined in the amended and restated 2004
Equity Incentive Plan (the “Plan”) will have the same defined meanings in this
Notice of Grant. Where no definition exists in the Plan, new definitions will
be noted in this document.

	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  

 

You have been granted the right to receive Restricted
Stock Units, subject to the terms and conditions of the Plan and this
Restricted Stock Unit Agreement as follows:

	
  Grant Number

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date of Grant

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vesting Commencement Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total Number of Restricted Stock Units

  	
   

  	
   

  

 

Vesting Schedule:

[Fifty percent (50%) of the Restricted Stock Units
will vest and be issued to Participant on each of the first two anniversaries
of the Vesting Commencement Date, provided that the Participant continues to be
a Service Provider through such dates. In the event Participant ceases to be a
Service Provider for any or no reason (including death or Disability) before
Participant vests in the right to acquire the Shares to be issued pursuant to
the Restricted Stock Unit, the Restricted Stock Unit and the Participant’s
right to acquire any Shares hereunder will immediately terminate.]

By your signature and the signature of the Company’s
representative below, you and the Company agree that this Award is granted
under and governed by the terms and conditions of the Plan and the Terms and
Conditions of Restricted Stock Units (the “Agreement”), attached hereto as Exhibit A,
both of which are made a part of this document.

You acknowledge receipt of a copy of the 2004 Equity
Incentive Plan prospectus. The Agreement and prospectus are available on the
Company’s website at http://iweb/Finance/Forms/2004StockPlan.pdf or by request
from the Company’s Stock Administration Department. You hereby agree that these
documents are deemed to be delivered to you.

	
  PARTICIPANT:

  	
   

  	
  IKANOS COMMUNICATIONS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  By

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Title

  

 

 

APPENDIX A

TERMS AND
CONDITIONS OF RESTRICTED STOCK UNITS

1.   Grant.   The Company
hereby grants to the Participant under the Plan an Award of Restricted Stock
Units, subject to all of the terms and conditions in this Agreement and the
Plan.

2.   Company’s Obligation to Pay.   Each
Restricted Stock Unit represents the right to receive a Share on the date it
becomes vested. Unless and until the Restricted Stock Units will have vested in
the manner set forth in Section 3, the Participant will have no right to
payment of any such Restricted Stock Units. Prior to actual payment of any
vested Restricted Stock Units, such Restricted Stock Unit will represent an
unsecured obligation of the Company, payable (if at all) only from the general
assets of the Company.

3.   Vesting Schedule.   Subject to Section 4,
the Restricted Stock Units awarded by this Agreement will vest in the
Participant according to the vesting schedule set forth on the attached Notice
of Grant of Restricted Stock Units, subject to the Participant continuing to be
a Service Provider through each applicable vesting date.

4.   Forfeiture upon Termination as Service Provider.   Notwithstanding
any contrary provision of this Agreement, if the Participant ceases to be a
Service Provider for any or no reason, the then-unvested Restricted Stock Units
awarded by this Agreement will thereupon be forfeited at no cost to the Company
and the Participant will have no further rights thereunder.

5.   Payment after Vesting.   Any
Restricted Stock Units that vest in accordance with Section 3 will be paid
to the Participant (or in the event of the Participant’s death, to his or her estate)
in whole Shares, subject to Section 6.

6.   Withholding of Taxes.   Notwithstanding
any contrary provision of this Agreement, no certificate representing the
Shares will be issued to the Participant, unless and until satisfactory
arrangements (as determined by the Administrator) will have been made by the Participant
with respect to the payment of income, employment and other taxes which the Company
determines must be withheld with respect to such Shares so issuable (the “Withholding
Taxes”).

Unless the Participant instructs the Company
otherwise, the Company will withhold otherwise deliverable Shares upon vesting
of Restricted Stock Units, according to the vesting schedule, having a Fair
Market Value equal to the minimum amount required to be withheld for the
payment of the Withholding Taxes pursuant to such procedures as the
Administrator may specify from time to time. The Company will not retain fractional
Shares to satisfy any portion of the Withholding Taxes. If the Administrator
determines that the withholding of whole Shares results in an over-withholding
to meet the minimum tax withholding requirements, a reimbursement will be made
to the Participant as soon as administratively possible.

The Participant
may instruct the Administrator to pay Withholding Taxes, in whole or in part,
by one of the additional following alternatives:

(a)    Participant
providing irrevocable instructions to a Company-designated broker to deliver
cash to the Company (or Participant’s employer) from the Participant’s previously
established account with such broker equal to the Withholding Taxes; or

 

(b)    Participant
providing irrevocable instructions to a Company-designated broker to sell a
sufficient number of Shares otherwise deliverable to Participant having a Fair Market
Value equal to the Withholding Taxes, provided that such sale does not violate
Company policy or Applicable Laws.

If the Participant fails to make satisfactory
arrangements for the payment of the Withholding Taxes hereunder at the time any
applicable Restricted Stock Units otherwise are scheduled to vest pursuant to Section 3,
the Participant will permanently forfeit such Restricted Stock Units and any
Shares otherwise deliverable with respect thereto, and the Restricted Stock Units
will be returned to the Company at no cost to the Company.

7.   Rights as Stockholder.   Neither the
Participant nor any person claiming under or through the Participant will have
any of the rights or privileges of a stockholder of the Company in respect of
any Shares deliverable hereunder unless and until certificates representing
such Shares will have been issued, recorded on the records of the Company or
its transfer agents or registrars, and delivered to the Participant.

8.   No Effect on Service.   Participant
acknowledges and agrees that the vesting of the Restricted Stock Units pursuant
to Section 3 hereof is earned only by Participant continuing to be a
Service Provider through the applicable vesting dates (and not through the act
of being hired or acquiring Shares hereunder). Participant further acknowledges
and agrees that this Agreement, the transactions contemplated hereunder and the
vesting schedule set forth herein do not constitute an express or implied
promise of Participant’s continuation as a Service Provider for the vesting
period, for any period, or at all, and will not interfere with the Participant’s
right or the right of the Company to terminate Participant’s status as a
Service Provider at any time, with or without cause.

9.   Address for Notices.   Any notice to
be given to the Company under the terms of this Agreement will be addressed to
the Company, in care of its [TITLE] at Ikanos Communications, Inc.,
[ADDRESS], or at such other address as the Company may hereafter designate in
writing.

10.   Grant is Not Transferable.   Except to the
limited extent permitted in the event of the Participant’s death, this grant
and the rights and privileges conferred hereby will not be transferred,
assigned, pledged or hypothecated in any way (whether by operation of law or otherwise)
and will not be subject to sale under execution, attachment or similar process.
Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose
of this grant, or any right or privilege conferred hereby, or upon any
attempted sale under any execution, attachment or similar process, this grant
and the rights and privileges conferred hereby immediately will become null and
void.

11.   Binding Agreement.   Subject to
the limitation on the transferability of this grant contained herein, this
Agreement will be binding upon and inure to the benefit of the heirs, legatees,
legal representatives, successors and assigns of the parties hereto.

12.   Additional Conditions to Issuance of Stock.   If at any
time the Company will determine, in its discretion, that the listing,
registration or qualification of the Shares upon any securities exchange or
under any state or federal law, or the consent or approval of any governmental
regulatory authority is necessary or desirable as a condition to the issuance
of

 

shares to the Participant (or his estate), such
issuance will not occur unless and until such listing, registration,
qualification, consent or approval will have been effected or obtained free of
any conditions not acceptable to the Company. Where the Company determines that
the delivery of the payment of any Shares will violate federal securities laws
or other Applicable Laws, the Company will defer delivery until the earliest
date at which the Company reasonably anticipates that the delivery of Shares
will no longer cause such violation. The Company will make all reasonable
efforts to meet the requirements of any such state or federal law or securities
exchange and to obtain any such consent or approval of any such governmental
authority.

13.   Plan Governs.   This
Agreement is subject to all terms and provisions of the Plan. In the event of a
conflict between one or more provisions of this Agreement and one or more provisions
of the Plan, the provisions of the Plan will govern.

14.   Administrator Authority.   The
Administrator will have the power to interpret the Plan and this Agreement and
to adopt such rules for the administration, interpretation and application
of the Plan as are consistent therewith and to interpret or revoke any such
rules (including, but not limited to, the determination of whether or not any
Restricted Stock Units have vested). All actions taken and all interpretations
and determinations made by the Administrator in good faith will be final and
binding upon Participant, the Company and all other interested persons. No
member of the Administrator will be personally liable for any action, determination
or interpretation made in good faith with respect to the Plan or this
Agreement.

15.   Captions.   Captions
provided herein are for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

16.   Agreement Severable.   In the event
that any provision in this Agreement will be held invalid or unenforceable,
such provision will be severable from, and such invalidity or unenforceability
will not be construed to have any effect on, the remaining provisions of this Agreement.

17.   Modifications to the Agreement.   This
Agreement constitutes the entire understanding of the parties on the subjects
covered. Participant expressly warrants that he or she is not accepting this
Agreement in reliance on any promises, representations, or inducements other
than those contained herein. Modifications to this Agreement or the Plan can be
made only in an express written contract executed by a duly authorized officer
of the Company. Notwithstanding anything to the contrary in the Plan or this
Agreement, the Company reserves the right to revise this Agreement as it deems
necessary or advisable, in its sole discretion and without the consent of
Participant, to comply with Section 409A of the Code or to otherwise avoid
imposition of any additional tax or income recognition under Section 409A
of the Code in connection to this Award of Restricted Stock Units.

18.   Governing Law.   This
Agreement shall be governed by the laws of the State of California, without
giving effect to the conflict of law principles thereof. For purposes of litigating
any dispute that arises under this Award of Restricted Stock Units or this Agreement,
the parties hereby submit to and consent to the jurisdiction of the State of
California, and agree that such
litigation shall be conducted in the courts of Santa Clara County, California, or the federal courts for the United
States for the Northern District of California, and no other courts, where this
Award of Restricted Stock Units is made and/or to be performed.

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