Document:

Exhibit 10.3

 

ASSIGNMENT
AND ASSUMPTION AGREEMENT

 

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Assignment and Assumption Agreement”) is entered into as of December 19, 2003 by and between ERP
Operating Limited Partnership, an Illinois Limited partnership (the “Partnership”) and Equity Residential, a Maryland real estate investment
trust and the sole general partner of the Partnership (the “General Partner”).  Capitalized terms used
in this Assignment and Assumption Agreement and not otherwise defined herein
shall have the meanings given such terms in that certain Fifth Amended and
Restated Agreement of Limited Partnership of the Partnership, dated as of
August 1, 1998, as amended (the “Partnership
Agreement”).

 

WITNESSETH:

 

WHEREAS, pursuant to Section 3.2.C. of the Partnership Agreement,
Limited Partners have the right (the “Exchange
Right”) to request
the General Partner exchange
Partnership Units held by such Limited Partners (individually, an “Exchange Partner”) with respect to which an Exchange Partner submits written
notice (the “Tendered
Units”) for an equal
number of Common Shares subject to the limitations and other requirements set
forth in Section 3.2.C. and other applicable provisions of the Partnership
Agreement;

 

WHEREAS, pursuant to Section 3.2.C. of the Partnership Agreement,
the General Partner may, in its sole and absolute discretion, elect to cause
the Partnership to acquire the Tendered Units in exchange for a cash payment in
an amount (the “Cash Amount”) determined in accordance with Section 3.2.C.
(the “Right to Elect Consideration”); and

 

WHEREAS, the General Partner desires to assign to the Partnership, and
the Partnership desires to assume from the General Partner, the Right to Elect
Consideration in connection with any Tendered Units;

 

NOW, THEREFORE, in consideration of the mutual covenants set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.                                       Assignment;
Assumption.

 

(a)                                  The General Partner
hereby grants, assigns, conveys and transfers to the Partnership, and the
Partnership hereby accepts from the General Partner, all of the General
Partner’s right, title and interest in and to the Right to Elect Consideration;
provided, however, that if the Partnership, in connection with its exercise of
such Right to Elect Consideration, does not elect to pay the Cash Amount,
then:  (i) the General Partner shall
satisfy the Exchange Partner’s exercise of the Exchange Right by issuing and
delivering Common Shares to such Partner and (ii) such transaction shall be

 

 

treated, for federal income tax purposes, as a transfer by the Exchange
Partner of the Tendered Units to the General Partner in exchange for the Common
Shares; and provided  further that in no event shall the
Partnership acquire or be deemed to acquire a proprietary interest in any
Common Shares issued as consideration for the Tendered Units.  In addition, if the Partnership elects to
pay the Cash Amount, then (i) the General Partner shall pay such Cash Amount to
the Exchanging Partner and (ii) such transaction shall be treated, for federal
income tax purposes, as a transfer by the Exchange Partner of the Tendered
Units to the General Partner in exchange for the Cash Amount.  The General Partner agrees to take such
further action and to execute such additional documents as may be reasonably
necessary to effect the assignment of the Right to Elect Consideration to the
Partnership.

 

(b)                                 Subject to the second
sentence of Section 1(a) hereof, from and after the date hereof, the
Partnership assumes all right, title and interest in and to and all obligations
and liabilities relating to or arising in connection with the Right to Elect
Consideration.  The General Partner
agrees to take such further action and to execute such additional documents as
may be reasonably necessary to effect the assignment of the Right to Elect
Consideration to the Partnership.

 

(c)                                  The
Partnership and the General Partner agree that the Right to Elect Consideration
shall be a management duty of the General Partner governed by Section 9.1
of the Partnership Agreement.

 

2.                                       Successors
and Assigns.  This Assignment and
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and assigns.

 

3.                                       Governing
Law.  This Assignment and Assumption
Agreement, the rights and obligations of the parties hereto, and any claims or
disputes relating thereto, shall be governed by and construed in accordance
with the laws of State of Illinois (excluding the choice of law rules thereof).

 

2

 

IN WITNESS WHEREOF, the
Partnership and the General Partner have executed and delivered this Assignment
and Assumption Agreement as of the date first above written.

 

	
   

  	
   

  	
  ERP OPERATING LIMITED

  PARTNERSHIP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Equity Residential, its general

  partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
     /s/ Bruce C.
  Strohm

  
	
   

  	
   

  	
   

  	
  Name:   Bruce C. Strohm
Title:     EVP

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EQUITY RESIDENTIAL

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
      /s/
  Bruce C. Strohm

  
	
   

  	
   

  	
   

  	
  Name: Bruce C. Strohm
Title:   EVP

  
							

 

3Exhibit 10.13

 

FIRST AMENDMENT

 

THE EQUITY RESIDENTIAL PROPERTIES TRUST

ADVANTAGE RETIREMENT SAVINGS PLAN

 

WHEREAS, Equity Residential
Properties Trust (the “Trust”) maintains The Equity Residential Properties
Trust Advantage Retirement Savings Plan (the “Plan”) for the benefit of its
eligible employees;

 

WHEREAS, Section 8.01
of the Plan provides that the Trust may amend the Plan at any time; and

 

WHEREAS, the Plan needs to
be amended to comply with certain requirements of the Internal Revenue Service
for issuance of a favorable determination letter;

 

NOW, THEREFORE, the Trust
hereby amends the Plan as follows:

 

1.                                       The following sentence is hereby added to the
end of Section 6.08(g)(i):

 

“Effective
January 1, 1999, the term “eligible rollover contribution” shall not
include any hardship distribution described in
Section 401(k)(2)(B)(i)(IV).”

 

2.                                       The following new Section 10.02(f) is
hereby added to the Plan:

 

“(e)                            Compensation:  For
purposes of this Article 10, compensation shall mean all amounts paid or
made available to the Participant by the Employer during the Plan Year for
services as an Employee as reported on Form W-2 (or such other form as may be
prescribed pursuant to §6041(d) and §6051(a)(3) of the Code).  Compensation shall also include any elective
contributions excluded from income under §125 of the Code (relating to
cafeteria plans), §402(e)(3) of the Code (relating to 401(k) plans), including
Pre-Tax Contributions under this Plan, §402(h) of the Code (relating to
simplified employee pension plans), or §132(f)(4) of the Code (relating to
elective transportation fringe benefits).

 

Any Employee’s compensation
for any Plan Year in excess of $170,000 (or such other amount provided pursuant
to Section 401(a)(17) of the Code) shall be disregarded for all purposes
under the Plan. Effective January 1, 2002, $200,000 shall be substituted
for $170,000 in the preceding sentence. 
If an Employee receives compensation from more than one Employer for a
Plan Year, then his compensation from all such Employers shall be aggregated
for purposes of applying the limit of Section 401(a)(17) of the Code for
that Plan Year.  Commencing
January 1, 1997, the rules requiring the aggregation of compensation paid
to certain family members of Highly Compensated Employees as set forth in the
Plan prior to the Effective Date shall no longer apply.”

 

*   *  
*   *

 

IN WITNESS
WHEREOF, the Trust
has caused this First Amendment to be executed by its duly authorized officers
on this 16 day of December, 2002.

 

 

	
   

  	
   

  	
  EQUITY
  RESIDENTIAL PROPERTIES

  TRUST

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Catherine M.
  Carraway

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President,
  Compensation & Benefits

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Secretary

  	
   

  	
   

  	
   

  
						

 

2Exhibit 10.14

 

SECOND AMENDMENT

 

THE EQUITY RESIDENTIAL PROPERTIES TRUST

ADVANTAGE RETIREMENT SAVINGS PLAN

 

WHEREAS, Equity Residential
(the “Company”) maintains The Equity Residential Properties Trust Advantage
Retirement Savings Plan (the “Plan”) for the benefit of its eligible employees;

 

WHEREAS, Section 8.01
of the Plan provides that the Company may amend the Plan at any time; and

 

WHEREAS, the Company desires
to change the name of the Plan to reflect the revision that was made to the
Company’s name effective May 15, 2002, and to amend the Plan’s provisions
concerning minimum distributions as required by the issuance by the Internal
Revenue Service of final regulations under Section 401(a)(9) of the
Internal Revenue Code;

 

NOW, THEREFORE, the Company
hereby amends the Plan in the following particulars:

 

1.                                       Effective as of May 15, 2002,
Section 2.08 is hereby amended to read as follows;

 

“2.08                     Company shall mean Equity Residential, a Maryland real estate trust, and its
successors.  The Company shall be the
Plan Sponsor.”

 

2.                                       Effective as of May 15, 2002,
Section 2.27 is hereby amended to read as follows:

 

“2.27                     Plan shall mean The Equity Residential Advantage Retirement Savings Plan,
as in effect from time to time, including any amendment or restatement thereof.

 

3.                                       The following new Section 6.16 is hereby
added to the Plan effective January 1, 2003:

 

“6.16                     Special Distribution Rules.

 

(a)                                  The provisions of this Section 6.16
shall apply for purposes of determining required minimum distributions for
calendar years beginning with the 2003 calendar year.  The requirements of this Section will take precedence over
any inconsistent provisions of the Plan. 
All distributions required under this Article will be determined
and made in accordance with the Treasury Regulations under Code
Section 401(a)(9).

 

(b)                                 Time and Manner of Distribution.

 

(i)                                     Required
Beginning Date.  The Participant’s
entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant’s
Required Beginning Date.

 

 

(ii)                                  Death of Participant Before Distributions
Begin.  If the Participant dies before distributions
begin the Participant’s entire interest will be distributed, or begin to be
distributed, no later than as follows:

 

(1)                                  If the Participant’s surviving spouse is the
Participant’s sole Designated Beneficiary, distributions to the surviving
spouse will begin by December 31 of the calendar year immediately
following the calendar year in which the Participant died or by
December 31 of the calendar year in which the Participant would have
attained age 70 1/2, if later.

 

(2)                                  If the Participant’s surviving spouse is not
the Participant’s sole Designated Beneficiary, distribution to a Designated
Beneficiary who is not the surviving spouse will be made by no later than
December 31 of the calendar year containing the fifth anniversary of the
Participant’s death.

 

(3)                                  If there is no Designated Beneficiary as of
September 30 of the year following the year of the Participant’s death,
the Participant’s entire interest will be distributed by December 31 of
the calendar year containing the fifth anniversary of the Participant’s death.

 

(4)                                  If the Participant’s surviving spouse is the
Participant’s sole Designated Beneficiary and the surviving spouse dies after the
Participant but before distributions to the surviving spouse begin, this
Section 6.16(b)(ii), other than Section 6.16(b)(ii)(1), will apply as
if the surviving spouse were the Participant.

 

For purposes of this
Section 6.16(b)(ii) and Section 6.16(d), unless
Section 6.16(b)(ii)(4) applies, distributions are considered to begin on
the Participant’s Required Beginning Date. 
If Section 6.16(b)(ii)(4) applies, distributions are considered to
begin on the date distributions are required to begin to the surviving spouse
under Section 6.16(b)(ii)(1).

 

(iii)                               Forms of Distribution. 
Unless the Participant’s interest is distributed in a single sum on or
before the Required Beginning Date, as of the first Distribution Calendar Year
distributions will be made in accordance with Sections 6.16(c) and 6.16(d).

 

(c)                                  Required Minimum Distributions During
Participant’s Lifetime.

 

(i)                                     Amount of Required Minimum Distribution For
Each Distribution Calendar Year.  During the Participant’s lifetime, the
minimum amount that will be distributed for each Distribution Calendar Year is
the lesser of:

 

(1)                                  the quotient obtained by dividing the
Participant’s Account Balance by the distribution period in the Uniform
Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury regulations,
using 

 

2

 

the Participant’s age as of
the Participant’s birthday in the Distribution Calendar Year; or

 

(2)                                  if the Participant’s sole Designated
Beneficiary for the Distribution Calendar Year is the Participant’s spouse, the
quotient obtained by dividing the Participant’s Account Balance by the number
in the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9 of
the Treasury regulations, using the Participant’s and spouse’s attained ages as
of the Participant’s and spouse’s birthdays in the Distribution Calendar Year.

 

(ii)                                  Lifetime Required Minimum Distributions
Continue Through Year of Participant’s Death.  Required minimum
distributions will be determined under this Section 6.16(c) beginning with
the first Distribution Calendar Year and up to and including the Distribution
Calendar Year that includes the Participant’s date of death.

 

(d)                                 Required Minimum Distributions After
Participant’s Death.

 

(i)                                     Death On or After Date Distributions Begin.

 

(1)                                  Participant Survived by Designated
Beneficiary.  If the Participant dies on or after the date
distributions begin and there is a Designated Beneficiary, the minimum amount
that will be distributed for each Distribution Calendar Year after the year of
the Participant’s death is the quotient obtained by dividing the Participant’s
Account Balance by the longer of the remaining Life Expectancy of the
Participant or the remaining Life Expectancy of the Participant’s Designated
Beneficiary, determined as follows:

 

(A)                              The Participant’s remaining Life Expectancy
is calculated using the age of the Participant in the year of death, reduced by
one for each subsequent year.

 

(B)                                If the Participant’s surviving spouse is the
Participant’s sole Designated Beneficiary, the remaining Life Expectancy of the
surviving spouse is calculated for each Distribution Calendar Year after the
year of the Participant’s death using the surviving spouse’s age as of the
spouse’s birthday in that year.  For
Distribution Calendar Years after the year of the surviving spouse’s death, the
remaining Life Expectancy of the surviving spouse is calculated using the age
of the surviving spouse as of the spouse’s birthday in the calendar year of the
spouse’s death, reduced by one for each subsequent calendar year.

 

(C)                                If the Participant’s surviving spouse is not
the Participant’s sole Designated Beneficiary, the Designated Beneficiary’s

 

3

 

remaining Life Expectancy is
calculated using the age of the beneficiary in the year of the Participant’s
death, reduced by one for each subsequent year.

 

(2)                                  No Designated Beneficiary.  If
the Participant dies on or after the date distributions begin and there is no
Designated Beneficiary as of September 30 of the year after the year of
the Participant’s death, the minimum amount that will be distributed for each
Distribution Calendar Year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s Account Balance by the
Participant’s remaining Life Expectancy calculated using the age of the
Participant in the year of death, reduced by one for each subsequent year.

 

(ii)                                  Death Before Date Distributions Begin.

 

(1)                                  Participant Survived by Designated
Beneficiary.  If the Participant dies before the date
distributions begin and there is a Designated Beneficiary, the minimum amount
that will be distributed for each Distribution Calendar Year after the year of
the Participant’s death is the quotient obtained by dividing the Participant’s
Account Balance by the remaining Life Expectancy of the Participant’s
Designated Beneficiary, determined as provided in Section 6.16(d)(i).

 

(2)                                  No Designated Beneficiary.  If
the Participant dies before the date distributions begin and there is no
Designated Beneficiary as of September 30 of the year following the year
of the Participant’s death, distribution of the Participant’s entire interest
will be completed by December 31 of the calendar year containing the fifth
anniversary of the Participant’s death.

 

(3)                                  Death of Surviving Spouse Before
Distributions to Surviving Spouse Are Required to Begin.  If
the Participant dies before the date distributions begin, the Participant’s
surviving spouse is the Participant’s sole Designated Beneficiary, and the
surviving spouse dies before distributions are required to begin to the
surviving spouse under Section 6.16(b)(ii)(1), this
Section 6.16(d)(ii) will apply as if the surviving spouse were the
Participant.

 

(e)                                  Definitions. 
The following definitions shall apply for purposes of this
Section 6.16:

 

(i)                                     ‘Designated Beneficiary’ means the individual
who is designated as the beneficiary under Section 6.13 and is the
designated beneficiary under Section 401(a)(9) of the Internal Revenue
Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations.

 

4

 

(ii)                                  ‘Distribution Calendar Year’ means a calendar
year for which a minimum distribution is required.  For distributions beginning before the Participant’s death, the
first Distribution Calendar Year is the calendar year immediately preceding the
calendar year which contains the Participant’s Required Beginning Date.  For distributions beginning after the Participant’s
death, the first Distribution Calendar Year is the calendar year in which
distributions are required to begin under Section 6.16(b)(ii).  The required minimum distribution for the
Participant’s first Distribution Calendar Year will be made on or before the
Participant’s Required Beginning Date. 
The required minimum distribution for other Distribution Calendar Years,
including the required minimum distribution for the Distribution Calendar Year
in which the Participant’s Required Beginning Date occurs, will be made on or
before December 31 of that Distribution Calendar Year.

 

(iii)                               ‘Life Expectancy’ means life expectancy as
computed by use of the Single Life Table in Section 1.401(a)(9)-9 of the
Treasury regulations.

 

(iv)                              ‘Participant’s Account Balance’ means the
account balance as of the last valuation date in the calendar year immediately
preceding the Distribution Calendar Year (valuation calendar year) increased by
the amount of any contributions made and allocated or forfeitures allocated to
the account balance as of dates in the valuation calendar year after the
valuation date and decreased by distributions made in the valuation calendar
year after the valuation date.  The
account balance for the valuation calendar year includes any amounts rolled
over or transferred to the plan either in the valuation calendar year or in the
Distribution Calendar Year if distributed or transferred in the valuation
calendar year.

 

(v)                                 ‘Required Beginning Date’ means  the date specified in Section 6.07(h)
of the Plan.”

 

4.                                       Effective as of May 15, 2002, Section 9.07
is hereby amended to read as follows:

 

“9.07                     Agent for Service of Process.  The
agent for service of process of this Plan shall be the person listed from time
to time in the current records of the Secretary of State of Illinois as the
agent for the service of process for Equity Residential.”

 

*   *  
*   *

 

5

 

IN WITNESS
WHEREOF, the Company
has caused this Second Amendment to be executed by its duly authorized officers
on this 16 day of December, 2002.

 

 

	
   

  	
   

  	
  EQUITY RESIDENTIAL

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Catherine M. Carraway

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President, Compensation & Benefits

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Secretary

  	
   

  	
   

  	
   

  
						

 

6

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