This excerpt taken from the EQR 8-K filed Dec 15, 2008.
The Company established a defined contribution plan (the 401(k) Plan) to provide retirement benefits for employees that meet minimum employment criteria. The Company matches dollar for dollar up to the first 3% of eligible compensation that a participant contributes to the 401(k) Plan. Participants are vested in the Companys contributions over five years. The Company recognized an expense in the amount of $4.2 million, $2.3 million and $3.0 million for the years ended December 31, 2007, 2006 and 2005, respectively.
The Company may also elect to make an annual discretionary profit-sharing contribution as a percentage of each individual employees eligible compensation under the 401(k) Plan. The Company recognized an expense of approximately $1.5 million, $3.3 million and $2.5 million for the years ended December 31, 2007, 2006 and 2005, respectively.
The Company established a supplemental executive retirement plan (the SERP) to provide certain officers and trustees an opportunity to defer a portion of their eligible compensation in order to save for retirement. The SERP is restricted to investments in Company Common Shares, certain marketable securities that have been specifically approved and cash equivalents. The deferred compensation liability represented in the SERP and the securities issued to fund such deferred compensation liability are consolidated by the Company and carried on the Companys balance sheet, and the Companys Common Shares held in the SERP are accounted for as a reduction to paid in capital.
On November 3, 1997, the Company filed with the SEC a Form S-3 Registration Statement to register 14,000,000 Common Shares pursuant to a Distribution Reinvestment and Share Purchase Plan (the DRIP Plan). The registration statement was declared effective on November 25, 1997. The Company has 11,571,277 Common Shares available for issuance under the DRIP Plan at December 31, 2007.
The DRIP Plan provides holders of record and beneficial owners of Common Shares and Preferred Shares with a simple and convenient method of investing cash distributions in additional Common Shares (which is referred to herein as the Dividend Reinvestment DRIP Plan). Common Shares may also be purchased on a monthly basis with optional cash payments made by participants in the DRIP Plan and interested new investors, not currently shareholders of the Company, at the market price of the Common Shares less a discount ranging between 0% and 5%, as determined in accordance with the DRIP Plan (which is referred to herein as the Share Purchase DRIP Plan). Common Shares purchased under the DRIP Plan may, at the option of the Company, be directly issued by the Company or purchased by the Companys transfer agent in the open market using participants funds.
The Company provided asset and property management services to certain related entities for properties not owned by the Company. Fees received for providing such services were approximately $0.3 million, $0.3 million and $0.2 million for the years ended December 31, 2007, 2006 and 2005, respectively.
The Company leases its corporate headquarters from an entity controlled by EQRs Chairman of the Board of Trustees. The lease terminates on July 31, 2011. Amounts incurred for such office space for the years