Exhibit 10.1

LIBERTY PROPERTY TRUST –
SENIOR OFFICER SEVERANCE PLAN

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TABLE OF CONTENTS

Page

SECTION 1.
PURPOSE....................................................................................................1

SECTION 2.
DEFINITIONS.............................................................................................1

2.1
“409A Change of
Control”...........................................................................1

2.2
“Administrative
Claim”...............................................................................1

2.3
“Applicable
Multiplier”...............................................................................1

2.4
“Board of
Trustees”......................................................................................1

2.5
“Cause”........................................................................................................1

2.6
A “Change of
Control”.................................................................................1

2.7
“Change of Control
Period”.........................................................................2

2.8
“Claimant”...................................................................................................2

2.9
“Common
Shares”.......................................................................................3

2.10
“Company”..................................................................................................3

2.11
“Compensation
Committee”........................................................................3

2.12
“Effective
Date”...........................................................................................3

2.13
“Disability”..................................................................................................3

2.14
“Employee”..................................................................................................3

2.15
“Excise
Tax”................................................................................................3

2.16
“Extended Leave of
Absence”.....................................................................3

2.17
“Good
Reason”............................................................................................3

2.18
“Judicial
Claim”...........................................................................................3

2.19
“Liberty Property Limited
Partnership”.......................................................3

2.20
“Liberty Property
Trust”..............................................................................3

2.21
“Notice of
Termination”...............................................................................3

2.22
“Paid Time
Off”...........................................................................................3

2.23
“Pay”............................................................................................................4

2.24
“Payment”....................................................................................................4

2.25
“Plan”...........................................................................................................4

2.26
“Pro-Rata
Bonus”.........................................................................................4

2.27
“Reduced
Amount”......................................................................................4

2.28
“Referee”......................................................................................................4

2.29
“Release”......................................................................................................4

2.30
“Severance
Pay”...........................................................................................4

 
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TABLE OF CONTENTS
(continued)
Page

2.31
“Subsidiary”.................................................................................................4

2.32
“Target
Bonus”.............................................................................................4

2.33
“Termination
Date”......................................................................................4

2.34
“Three-Year Average
Bonus”.......................................................................5

2.35
“Year of
Pay”...............................................................................................5

SECTION 3.
ELIGIBILITY..............................................................................................5

3.1
Eligible
Employees......................................................................................5

3.2
Disability or Extended Leave of
Absence....................................................5

3.3
Cause............................................................................................................5

3.4
Good
Reason................................................................................................6

3.5
Termination of
Employment........................................................................7

3.6
Disqualification............................................................................................7

SECTION 4.
SEVERANCE BENEFIT
AMOUNT...........................................................8

4.1
Severance
Pay..............................................................................................8

4.2
Increases to Severance
Pay..........................................................................9

4.3
Unemployment
Compensation....................................................................9

4.4
Sickness;
Disability.....................................................................................9

4.5
Reduction of Severance
Pay........................................................................9

4.6
Effect of Section 280G(b) of
Code............................................................10

4.7
Further
Actions...........................................................................................11

SECTION 5.
DISTRIBUTION OF
BENEFITS..............................................................11

5.1
Payment......................................................................................................11

5.2
Deceased
Employees.................................................................................12

SECTION 6.
PLAN
ADMINISTRATION......................................................................12

6.1
Compensation
Committee..........................................................................12

6.2
Determinations
Conclusive........................................................................12

6.3
Disputes......................................................................................................12

6.4
Exhaustion and Time Limit to Bring a Judicial
Claim..............................13

6.5
Payment of
Fees........................................................................................14

SECTION 7.
PLAN MODIFICATION OR TERMINATION........................................14

7.1
Termination................................................................................................14

7.2
Modifications and
Amendments................................................................14

 
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TABLE OF CONTENTS
(continued)
Page

7.3
Determination of
Claims............................................................................14

SECTION 8.
GENERAL
PROVISIONS........................................................................14

8.1
No Right to
Employment...........................................................................14

8.2
Vacancies on Compensation
Committee....................................................15

8.3
Assignments...............................................................................................15

8.4
Plan
Unfunded...........................................................................................15

8.5
No Set Off; No
Mitigation.........................................................................15

8.6
Governing
Law...........................................................................................15

8.7
Welfare
Plan...............................................................................................15

8.8
Section 409A of the
Code..........................................................................15

8.9
Recoupment
Policy....................................................................................17

 
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Exhibit 10.1

SECTION 1.

PURPOSE
The Company considers it essential to its best interests to foster the optimum
performance of its management employees. The Company recognizes the possibility
that a Change of Control of the Company or one or more Subsidiaries may occur,
or that the Company may engage in certain other transactions which may affect
its management employees, and that such possibility, and the uncertainty and
questions which it may raise, may result in the distraction of management to the
detriment of the Company.
In order to encourage management employees to maintain their continued attention
and dedication to their duties and responsibilities, the Company originally
adopted the Plan, effective as of December 13, 2001. The Plan is hereby re-named
and amended and restated to reflect certain design changes, effective September
30, 2015.
SECTION 2.    

DEFINITIONS
As hereinafter used:
2.1    “409A Change of Control” has the meaning set forth in Section 5.1.
2.2    “Administrative Claim” has the meaning set forth in Section 6.3.
2.3    “Applicable Multiplier” with respect to each Employee, which shall be
either 2.0 or 3.0, shall be set forth opposite the name of such Employee on
Exhibit “A.”
2.4    “Board of Trustees” means the Board of Trustees of Liberty Property
Trust.
2.5    “Cause” has the meaning set forth in Section 3.3.
2.6    A “Change of Control” shall be deemed to have occurred upon the earliest
to occur of the following events:
(a)    the date on which the shareholders of the Company (or the Board of
Trustees, if shareholder action is not required) approve a plan or other
arrangement pursuant to which the Company will be dissolved or liquidated, or
(b)    the date on which the transactions contemplated by a definitive agreement
to sell or otherwise dispose of substantially all of the assets of the Company
are consummated, other than a transaction in which the holders of the Common
Shares immediately prior to the

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Exhibit 10.1

transaction will have at least fifty percent (50%) of the voting power of the
acquiring entity’s voting securities immediately after such transaction (without
regard to such holders’ ownership of such acquiring entity’s voting securities
immediately before or contemporaneously with such transaction), which voting
securities are to be held by such holders immediately following such transaction
in substantially the same proportion among themselves as such holders’ ownership
of the Common Shares immediately before such transaction, or
(c)    the first date on which (i) the transactions contemplated by a definitive
agreement to merge or consolidate the Company with or into the other constituent
entity, or to merge such other entity with or into the Company, have been
consummated, other than, in any such case, a merger or consolidation of the
Company in which the holders of the Common Shares immediately prior to the
merger or consolidation will have at least fifty percent (50%) of the voting
power of the surviving entity’s voting securities immediately after such merger
or consolidation (without regard to such holders’ ownership of such acquiring
entity’s voting securities immediately before or contemporaneously with such
merger or consolidation), which voting securities are to be held by such holders
immediately following such merger or consolidation in substantially the same
proportion among themselves as such holders’ ownership of the Common Shares
immediately before such merger or consolidation, and (ii) members of the Board
of Trustees prior to the consummation of such merger or consolidation cease to
constitute a majority of the Board of Trustees, or
(d)    the date on which any entity, person or group, within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934, as
amended (other than the Company or any Subsidiary or any employee benefit plan
sponsored or maintained by the Company or any Subsidiary), shall have become the
beneficial owner of, or shall have obtained voting control over, more than
twenty percent (20%) of the outstanding Common Shares (without regard to any
contractual or other restriction on the conversion or other exchange of
securities into or for Common Shares), or
(e)    the first day after the date on which the Plan is effective when a
majority of the members of the Board of Trustees shall have been members of the
Board of Trustees for less than two (2) years, unless the nomination for
election of each new trustee who was not a trustee at the beginning of such two
(2)-year period was approved by a vote of at least two-thirds of the trustees
then still in office who were trustees at the beginning of such period.
2.7    “Change of Control Period” means the period of time commencing six (6)
months prior to a Change of Control and ending two (2) years after a Change of
Control.
2.8    “Claimant” has the meaning set forth in Section 6.3.

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Exhibit 10.1

2.9    “Common Shares” means the Common Shares of Beneficial Interest, $0.001
par value, of the Company and any other securities evidencing the common equity
beneficial interest in the Company.
2.10    “Company” means Liberty Property Trust and/or Liberty Property Limited
Partnership, and any successor in interest thereto.
2.11    “Compensation Committee” means the compensation committee of the Board
of Trustees.
2.12    “Effective Date” of the Plan is September 30, 2015.
2.13    “Disability” has the meaning set forth in Section 3.2.
2.14    “Employee” means a person:
(a)    whose name is listed in Exhibit “A” hereto, as such Exhibit may be
amended or supplemented by the Compensation Committee from time to time, or who
has been designated in writing by the Compensation Committee to participate in
the Plan (even if such person’s name is not listed in Exhibit “A” hereto). It is
intended that the Compensation Committee will review Exhibit “A” annually and
update such Exhibit as needed; and
(b)    who is employed by the Company or a Subsidiary during the six (6) month
period preceding a change of a Change of Control and is not ineligible to
participate in the Plan as set forth in Section 3.6.
2.15    “Excise Tax” has the meaning set forth in Section 4.6.
2.16    “Extended Leave of Absence” has the meaning set forth in Section 3.2.
2.17    “Good Reason” has the meaning set forth in Section 3.4.
2.18    “Judicial Claim” has the meaning set forth in Section 6.3.
2.19    “Liberty Property Limited Partnership” means Liberty Property Limited
Partnership, a Pennsylvania limited partnership.
2.20    “Liberty Property Trust” means Liberty Property Trust, a Maryland real
estate investment trust.
2.21    “Notice of Termination” has the meaning set forth in Section 3.5.
2.22    “Paid Time Off” means time when, in accordance with the regular payroll
practices and procedures applicable immediately preceding the earlier of the
Termination Date or

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Exhibit 10.1

the date of the Change of Control, the Employee is entitled to receive
remuneration without reporting for work.
2.23    “Pay” means the base salary of an eligible Employee at his or her stated
weekly, monthly or annual rate as of the Employee’s Termination Date, or, if a
higher amount, as of the date of the Change of Control. “Pay” does not include
overtime pay, bonuses of any kind, commissions, incentive pay or any other
remuneration. A “Year of Pay” shall be calculated in accordance with the regular
payroll practices and procedures applicable immediately preceding the Change of
Control.
2.24    “Payment” has the meaning set forth in Section 4.6.
2.25    “Plan” means this Senior Officer Severance Plan as set forth herein, and
as may be amended from time to time.
2.26    “Pro-Rata Bonus” means the Employee’s Three-Year Average Bonus,
multiplied by a fraction in which the numerator is the number of days in the
applicable calendar year in which the Employee was employed by the Company or a
Subsidiary and the denominator is the total number of days in the applicable
calendar year.
2.27    “Reduced Amount” has the meaning set forth in Section 4.6.
2.28    “Referee” has the meaning set forth in Section 4.6.
2.29    “Release” means the Company’s then current standard form of agreement
and general release that is executed by the Employee and the Company in
connection with the termination of the Employee’s employment with the Company or
a Subsidiary.
2.30    “Severance Pay” is a payment made to an eligible Employee pursuant to
Section 3.1. All Severance Pay due to an eligible Employee must be paid to the
eligible Employee within two (2) years after the date that the first Severance
Pay payment is made to such Employee.
2.31    “Subsidiary” means Liberty Property Limited Partnership and each other
subsidiary of Liberty Property Trust.
2.32    “Target Bonus” means the highest target annual incentive bonus for a
full fiscal year for an eligible Employee during the Change of Control Period.
Target Bonus does not include commissions and or other bonuses awarded by the
Company other than on an annual basis (such as one-time grants of restricted
stock).
2.33    “Termination Date” means the date upon which the Employee’s employment
ceases with the Company or any Subsidiary, as the case may be.

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Exhibit 10.1

2.34    “Three-Year Average Bonus” means the average annual cash incentive award
paid to the Employee under the Company’s annual incentive compensation plan for
the prior three fiscal years immediately preceding the Termination Date. If the
Employee has been employed for less than three (3) fiscal years at the
Termination Date, the Three-Year Average Bonus will be based on the average
annual cash incentive award paid to the Employee under the Company’s annual
incentive compensation plan for the completed fiscal years from the date the
Employee commenced employment with the Company to the Termination Date. If no
annual cash incentive award has been paid for a prior fiscal year because the
Employee has not been employed with the Company long enough to have received an
annual cash incentive award, then the Three-Year Average Bonus will be the
Employee’s Target Bonus.
2.35    “Year of Pay” has the meaning set forth in Section 2.23.
SECTION 3.    

ELIGIBILITY
3.1    Eligible Employees. An Employee shall be eligible to receive Severance
Pay if and only if the Employee is terminated from employment during the Change
of Control Period, unless such termination is: (i) as a result of such
Employee’s death, or such Employee’s Disability or Extended Leave of Absence in
accordance with Section 3.2, (ii) by the Employer for Cause or (iii) by the
Employee other than for Good Reason. In the event an individual’s employment is
terminated prior to the occurrence of a Change of Control, such individual shall
be entitled to benefits under the Plan only if a Change of Control actually
occurs within six months following the Termination Date.
3.2    Disability or Extended Leave of Absence. If, as a result of an Employee’s
incapacity due to physical or mental illness (a “Disability”), or as a result of
any other leave of absence (an “Extended Leave of Absence”), the Employee shall
have been absent from the full-time performance of his or her duties for longer
than six (6) consecutive months, the Employee shall not be entitled to any
benefits under the Plan.
3.3    Cause. The Employee shall not be entitled to any benefits under the Plan
if his or her employment is terminated by the Employer for Cause. For purposes
of the Plan, “Cause” means the occurrence of one or more of the following
events:
(a)    The Employee’s conviction of, or entry of a plea of nolo contendere (or
similar disposition) in respect of, any felony or any crime involving moral
turpitude;
(b)    The Employee’s engagement in disloyalty to the Company including fraud,
embezzlement, theft, misappropriation or proven dishonesty;

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Exhibit 10.1

(c)    The Employee’s breach of any written confidentiality, non-competition,
non-solicitation agreement, or material Company policy, in each case, regardless
of whether such act or omission is materially injurious to the Company;
(d)    The Employee’s continued failure to substantially perform his or her
duties, which failure the Employee fails to cure (other than any such failure
resulting from incapacity due to physical or mental illness, Disability or an
Extended Leave of Absence or the Employee’s termination of his or her employment
for Good Reason) within ten (10) days after a written demand for substantial
performance is delivered to the Employee by the Company or the Subsidiary by
which he or she is employed, which demand describes in reasonable detail the
manner in which the Company or such Subsidiary believes that the Employee has
not substantially performed his or her duties; or
(e)    The Employee’s willful engagement in conduct which is materially
injurious to the Company and/or any Subsidiary, monetarily or otherwise. For
purposes of this Section 3.3, no act, or failure to act, on the Employee’s part
shall be deemed “willful” unless done, or omitted to be done, by the Employee in
bad faith and without reasonable belief that his or her action or omission was
in, or not opposed to, the best interests of the Company and/or any Subsidiary.
(f)    Notwithstanding the foregoing, the Employee shall not be deemed to have
been terminated for Cause unless and until there shall have been delivered to
the Employee a copy of a written determination of the Compensation Committee
issued pursuant to a meeting of the Compensation Committee (after reasonable
notice to the Employee and an opportunity for the Employee, together with his or
her counsel, to be heard before the Compensation Committee) finding that in the
good faith opinion of the Compensation Committee the Employee was guilty of
conduct constituting Cause, as set forth in this Section 3.3, and describing
such conduct in reasonable detail.
3.4    Good Reason. The Employee shall be entitled to terminate his or her
employment for Good Reason. For purposes of this Section 3.4 “Good Reason” shall
mean, without the Employee’s express written consent, the occurrence during the
Change of Control Period of any of the following circumstances:
(a)    a material diminution in the Employee’s base salary;
(b)    a material diminution in the authority, duties or responsibilities held
by the Employee;
(c)    a material change in the geographic location at which the Employee must
perform services, which for purposes of this Plan means the requirement that
Employee must perform services at a location that is fifty (50) miles from the
current office of the Company at

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Exhibit 10.1

which the Employee principally performed his or her services, other than on
travel reasonably required to carry out Employee’s obligations under this
Agreement, provided that such change in geographic location increases the
Employee’s round-trip commute by more than forty (40) miles; or
(d)    any material breach of this Plan by the Company.
Provided, however, that a termination by Employee for Good Reason shall be
effective only if (i) the Employee has provided a Notice of Termination to the
Company within ninety (90) days after the initial existence of the event
constituting Good Reason that an event constituting Good Reason has occurred,
(ii) within thirty (30) days following the delivery of such notice of
termination by Employee to the Company, the Company has failed to cure the
circumstances giving rise to Good Reason, and (iii) Employee’s Termination Date
occurs within thirty (30) days following the end of the thirty (30)-day cure
period set forth above.
3.5    Termination of Employment. Any purported termination of the Employee’s
employment by the Company or by the Employee during the Change of Control Period
shall be communicated by written Notice of Termination to the other party.
“Notice of Termination” shall mean a notice that shall indicate the specific
termination provision in the Plan relied upon and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of
Employee’s employment under the provision so indicated. Any Notice of
Termination to the Company shall be directed to the Compensation Committee at
the address set forth in Section 6.3. All Notices of Termination shall be sent
(i) by certified or registered mail and shall be deemed received three (3)
business days after the date of mailing; (ii) by Federal Express or similar
overnight courier and shall be deemed received one (1) business day after
delivery to Federal Express or similar overnight courier; or (iii) by personal
service and shall be deemed received on the same day as service.
3.6    Disqualification. An Employee may not receive Severance Pay if any of the
following disqualifying events occur:
(a)    The Employee is already receiving or is entitled to receive severance pay
under an agreement, severance plan or policy of the Company, other than as
contemplated under Section 4.5;
(b)    The Employee has signed an agreement pursuant to which his or her
employment will terminate in the future on a date certain;
(c)    The Employee is a party to an agreement which excludes him or her from
participation in the Plan;

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Exhibit 10.1

(d)    Termination of his or her employment does not occur during the Change of
Control Period;
(e)    The Company does not undergo a Change of Control;
(f)    The Employee does not timely execute and return to the Company a valid
Release which remains unrevoked by the Employee for the seven (7) day revocation
period, if applicable; or
(g)    The Employee voluntarily terminates his or her employment with the
Company other than for Good Reason during the Change of Control Period.
SECTION 4.    

SEVERANCE BENEFIT AMOUNT
4.1    Severance Pay. Except as otherwise provided in this Section 4, the
Severance Pay to be paid to an eligible Employee in accordance with Section 5
shall be an amount equal to the sum of (A) the product of the Applicable
Multiplier for such Employee multiplied by the sum of one (1) Year of Pay for
such Employee plus such Employee’s Target Bonus, plus (B) the Pro-Rata Bonus. In
addition, except as otherwise provided in this Section 4:
(a)    Notwithstanding anything to the contrary in the applicable grant
agreement, all of such Employee’s options or other rights to acquire Common
Shares or partnership interests in Liberty Property Limited Partnership and all
restricted stock, restricted stock units or other equity compensation granted to
such Employee shall vest immediately upon the later of the Termination Date or
the date of the Change of Control; provided, however, that if the vesting of
restricted stock, restricted stock units or other equity compensation is to be
calculated based on future performance of the Company or other future events or
circumstances, such stock or units or other equity compensation shall be valued
based on target performance. To the extent the Employee’s Termination Date is
during the Change of Control Period but prior to the Change of Control, the
unvested portion of the applicable awards will be deemed suspended and no
vesting shall occur unless and until a Change of Control occurs during the six
(6) month period following the Employee’s Termination Date. If a Change of
Control does not occur during the six (6) month period following the Termination
Date, the unvested portion of the applicable award will be forfeited
automatically on the date that is six (6) months following the Termination Date,
unless otherwise provided in the applicable grant agreements;
(b)    the Company shall make a lump sum payment of $10,000 in lieu of continued
coverage under the Company’s life insurance, accident or disability plans; and

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Exhibit 10.1

(c)    the Company shall make a lump sum payment equal to one and one-half (1.5)
times the Employee’s monthly cost (calculated as described below) to continue
medical and dental coverage under the Company’s applicable benefit plans for the
Employee, and, where applicable, the Employee’s spouse and dependents, for the
eighteen (18) month period following the Termination Date or the Change of
Control date, as applicable. For this purpose, the monthly cost shall be
determined as 100% of the applicable monthly cost of medical and dental coverage
through COBRA for the Employee and, where applicable, the Employee’s spouse and
dependents, less the monthly premium charge that is paid by active Company
employees for similar coverage as in effect at the Employee’s Termination Date
or the date of the Change of Control, as applicable. The Employee may elect
COBRA continuation coverage according to the terms of the Company’s applicable
benefit plans.
4.2    Increases to Severance Pay. The Company, in its sole discretion, may
increase the Severance Pay to an amount in excess of that specified in Section
4.1, subject to the limitations of Section 4.6. Any increase in severance pay
must be expressly authorized in writing by the Compensation Committee.
4.3    Unemployment Compensation. If an Employee applies for and receives
unemployment compensation payments for any period of time during or for which
Severance Pay is being paid, any Severance Pay remaining to be paid shall not be
reduced by the amount of any such unemployment compensation payments.
4.4    Sickness; Disability. If an Employee due to sickness or injury receives
short-term disability payments, worker’s compensation or long-term disability
payments after the Employee’s Termination Date, any Severance Pay to be paid
shall be reduced by the amount of any such short-term disability, worker’s
compensation or long-term disability payments.
4.5    Reduction of Severance Pay. Unless increased in accordance with Section
4.2 above, the severance benefit provided for in the Plan is the maximum benefit
that the Company will pay for severance. To the extent that a federal, state or
local law might require the Company to make a payment to an Employee because of
that Employee’s involuntary termination (other than with respect to unemployment
compensation), the benefit payable under the Plan shall be correspondingly
reduced. To the extent that an Employee receives severance pay in connection
with the cessation of his or her employment other than pursuant to the Plan
(whether pursuant to a contract or other severance plan or policy), the benefit
payable under the Plan shall be correspondingly reduced. Any overpayments made
under the Plan shall be promptly repaid after written request. Severance Pay
that will be offset under this Section 4.5 does not include payments received by
an Employee due to his or her participation in any other benefit plan which is
not a severance plan, or payments made to an Employee for his or her accrued,
but unused vacation or Paid Time Off days.

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Exhibit 10.1

4.6    Effect of Section 280G(b) of Code.
(a)    Reduction in Payments. In the event any Payment (as defined below) would
constitute an “excess parachute payment” within the meaning of Section 280G of
the Code, the aggregate present value of the Payments payable to the Employee
pursuant to the terms of this Plan shall be reduced (but not below zero) to the
Reduced Amount (as defined below), if reducing the Payments payable to the
Employee pursuant to the terms of this Plan will provide the Employee with a
greater net after-tax amount than would be the case if no reduction was made. If
reducing the Payments payable to the Employee would not provide the Employee
with a greater net after-tax amount than if no reduction was made, then no
reduction will be made and the full amount of the Payments will be made to the
Employee.
(b)    Determining Net After-Tax Amounts. In determining whether a reduction in
Payments payable to the Employee pursuant to the terms of this Plan will provide
the Employee with a greater net after-tax amount, the following computations
shall be made:
(i)    The net after-tax benefit to the Employee without any reduction in
Payments shall be determined by reducing the Payments by the amount of federal,
state, local and other applicable taxes (including the Excise Tax (as defined
below)) applicable to the Payments. For these purposes, the tax rates shall be
determined using the maximum marginal rate applicable to such Employee for each
year in which the Payments shall be paid.
(ii)    The net after-tax benefit to the Employee with a reduction in the
Payments to the Reduced Amount shall be determined by applying the tax rates
under subsection (i) above, with the exception of the Excise Tax.
(c)    Reduction Methodology. In the event a reduction in the Payments to the
Reduced Amount will provide the Employee with a greater net after-tax amount,
any reduction shall be made in a manner consistent with the requirements of
Section 409A of the Code.
(d)    Definitions. For purposes of this Section 4.6, the following definitions
shall apply:
(i)    “Payment” shall mean an amount that is received by the Employee or paid
by the Company or the Subsidiary that employs the Employee on his behalf, or
represents any property, or any other benefit provided to the Employee under
this Plan or under any other plan, arrangement or agreement with the Company or
any other person, and such amount is treated as contingent on a change in
control, as provided under Section 280G of the Code.
(ii)    “Reduced Amount” shall mean an amount, as determined under Section 280G
of the Code, which does not cause any Payment to be subject to the Excise Tax.

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Exhibit 10.1

(iii)    “Excise Tax” shall mean the excise tax imposed under Section 4999 of
the Code.
(e)    Determination of Reduction. All determinations to be made under this
Section 4.6 shall be made by the tax counsel and Company’s independent public
accountant immediately prior to the Change of Control (which may be the
Company’s auditors) (the “Referee”), which firm(s) shall provide its
determinations and any supporting calculations both to the Company and the
Employee within ten days following the later of the Change of Control or the
Employee’s Termination Date. Any such determination by the Referee shall be
binding upon the Company and the Employee. All fees and expenses of the Referee
in performing the determinations referred to above shall be borne solely by the
Company.
(f)    Indemnification of Referee. The Company agrees to indemnify and hold
harmless the Referee of and from any and all claims, damages and expenses
resulting from or relating to its determinations pursuant to this Section 4.6,
except for claims, damages or expenses resulting from the gross negligence or
willful misconduct of the Referee.
4.7    Further Actions. The Company shall have the right to take such action as
it deems necessary or appropriate to satisfy any requirements under federal,
state or other laws to withhold or to make deductions from any benefits payable
under the Plan.
SECTION 5.    

DISTRIBUTION OF BENEFITS
5.1    Payment. Except as otherwise specifically provided in this Plan, payments
will be made in a single lump sum payment as follows:
(g)    If the Termination Date occurs prior to the Change of Control during the
Change of Control Period, payments will be made within 60 days following the
date of the Change of Control if the Change of Control constitutes a “change of
control event” under Section 409A of the Code (“409A Change of Control”),
provided the Employee has executed and not revoked the Release.
(h)    If the Termination Date occurs prior to the Change of Control during the
Change of Control Period and the Change of Control is not a 409A Change of
Control, payments will be made on the date that is eight months following the
Termination Date, provided the Employee has executed and not revoked the
Release.
(i)    If the Termination Date occurs on or after the Change of Control,
payments will be made within 60 days following the Termination Date, provided
the Employee has executed and not revoked the Release.

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Exhibit 10.1

5.2    Deceased Employees. Severance Pay shall be paid to the estate of any
eligible Employee who dies before the entire amount due hereunder is paid.
SECTION 6.    

PLAN ADMINISTRATION
6.1    Compensation Committee. The Plan shall be administered by the
Compensation Committee, which shall have complete authority to prescribe, amend
and rescind rules and regulations relating to the Plan, and to make
modifications and amendments to the Plan in accordance with Section 7.2 hereof.
6.2    Determinations Conclusive. The determinations by the Compensation
Committee prior to a Change of Control on the matters referred to such Committee
shall be conclusive. Prior to a Change of Control, the Compensation Committee
shall have full discretionary authority, the maximum discretion allowed by law,
to administer, interpret and apply the terms of the Plan, and to determine any
and all questions or disputes hereunder, including but not limited to
eligibility for benefits and the amount of benefits due. Subsequent to a Change
of Control the Compensation Committee shall not have full discretionary
authority; rather, its determinations shall be made strictly in accordance with
the terms of the Plan and shall be subject to de novo review by a court of
competent jurisdiction.
6.3    Disputes. In the event of a claim by any person, including but not
limited to any Employee (the “Claimant”), as to whether such person is entitled
to any benefit under the Plan, the amount of any distribution or its method of
payment, such Claimant shall present the reason for his or her claim in writing
to the Compensation Committee. Such claim must be filed within ninety (90) days
following the date upon which the Claimant first learns of his or her claim. All
claims shall be in writing, signed and dated and shall briefly explain the basis
for the claim. The claim shall be mailed to the Compensation Committee by
certified mail at the following address:
Liberty Property Trust
500 Chesterfield Parkway
Malvern, PA 19355
Attention: General Counsel's Office
Compensation Committee for the
Liberty Property Trust Senior Officer Severance Plan

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Exhibit 10.1

The Compensation Committee shall, within ninety (90) days after receipt of such
written claim, decide the claim and send written notification to the Claimant as
to its disposition; provided that the Compensation Committee may elect to extend
such period for an additional ninety (90) days if special circumstances so
warrant and the Claimant is so notified in writing prior to the expiration of
the original ninety (90)-day period. In the event the claim is wholly or
partially denied, such written notification shall (a) state the specific reason
or reasons for the denial; (b) make specific reference to pertinent Plan
provisions on which the denial is based; (c) provide a description of any
additional material or information necessary for the Claimant to perfect the
claim and an explanation of why such material or information is necessary; and
(d) set forth the procedure by which the Claimant may appeal the denial of his
or her claim. The Claimant may request a review of such denial by making
application in writing to the Compensation Committee within sixty (60) days
after receipt of such denial. Such application must be via certified mail. The
named appeals fiduciary is the Compensation Committee or the person(s) named by
the Compensation Committee to review the Claimant’s appeal. Such Claimant (or
his or her duly authorized representative) may, upon written request to the
Compensation Committee, review any documents pertinent to his or her claim, and
submit in writing issues and comments in support of his or her claim or
position. Within sixty (60) days after receipt of a written appeal, the named
appeals fiduciary shall decide the appeal and notify the Claimant of the final
decision; provided that the named appeals fiduciary may elect to extend such
sixty (60)-day period to up to one hundred twenty (120) days after receipt of
the written appeal. The final decision shall be in writing and shall include
specific reasons for the decision, written in a manner calculated to be
understood by the Claimant, and specific references to the pertinent Plan
provisions on which the decision is based.
6.4    Exhaustion and Time Limit to Bring a Judicial Claim.
(g)    A claim or action (i) to recover benefits allegedly due under the Plan or
by reason of any law, (ii) to enforce rights under the Plan, (iii) to clarify
rights to future benefits under the Plan, or (iv) that relates to the Plan and
seeks a remedy, ruling or judgment of any kind against the Plan or a Plan
fiduciary or party in interest (collectively, a “Judicial Claim”), may not be
commenced in any court or forum until after the claimant has exhausted the
Plan’s claims and appeals procedures set forth in Section 6.3 above (an
“Administrative Claim”). Any Judicial Claim must be commenced in the appropriate
court or forum no later than two years from the earliest of (i) the date the
first benefit payment was made or allegedly due; or (ii) the date the
Compensation Committee or its delegate first denied the claimant’s request;
provided, however, that, if the claimant commences an Administrative Claim
before the expiration of such two-year period, the period for commencing a
Judicial Claim shall expire on the later of the end of the two-year period and
the date that is three months after the claimant’s appeal of the initial denial
of his Administrative Claim is finally denied, such that the claimant has
exhausted the Plan’s claims and appeals procedures. Any claim or action that is
commenced, filed or raised, whether

13

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Exhibit 10.1

a Judicial Claim or an Administrative Claim, after expiration of such two-year
period (or, if applicable, expiration of the three-month period following
exhaustion of the Plan’s claims and appeals procedures) shall be time-barred.
6.5    Payment of Fees. All reasonable legal fees and expenses of the Claimant
incurred in pursuing a claim in accordance with Section 6.3 shall be reimbursed
to such Claimant by the Company, but only if the Claimant substantially prevails
with respect to such claim.
SECTION 7.    

PLAN MODIFICATION OR TERMINATION
7.1    Termination. The Plan shall continue in effect until terminated by the
Company’s Board of Trustees.
7.2    Modifications and Amendments. Prior to a Change of Control, the
Compensation Committee may, in its sole discretion, make any modifications or
amendments to the Plan that it deems desirable; provided that if a Change of
Control occurs within six (6) months after such modification or amendment, the
modification will be deemed null and void ab initio except for such
modifications or amendments which do not adversely affect the rights or reduce
the amount of severance benefits payable to any eligible Employee under the Plan
or which are required by applicable law. If a Change of Control occurs, the Plan
may not be modified, amended or terminated until two (2) years after the Change
of Control occurs, except for such modifications or amendments which do not
adversely affect the rights or reduce the amount of severance benefits payable
to of any eligible Employee under the Plan.
7.3    Determination of Claims. All claims for benefits hereunder, even if
raised after termination of the Plan, shall be determined pursuant to Section
6.3, and when acting pursuant thereto, the Compensation Committee shall retain
the authority provided in Section 6. Notwithstanding any termination of the
Plan, if a Change of Control has occurred, all Employees who are eligible before
the date of termination to receive Severance Pay pursuant to the Plan shall
remain entitled to receive said benefit under the terms and conditions of the
Plan.
SECTION 8.    

GENERAL PROVISIONS
8.1    No Right to Employment. Nothing herein contained shall be deemed to give
any Employee the right to be retained in the employ of the Company or to
interfere with the right of the Company to discharge him or her at any time,
with or without cause.

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Exhibit 10.1

8.2    Vacancies on Compensation Committee. If any of the positions on the
Compensation Committee becomes vacant, either the Chairman of the Board or
President of the Company may appoint such person or persons as he or she
determines, to carry out the responsibilities assigned to such position under
the Plan, so long as, if a Change of Control has occurred within two (2) years
prior to such appointment, such person was employed by the Company or was a
member of the Board of Trustees prior to any such Change of Control.
8.3    Assignments. Except as otherwise provided by law, no right or interest of
any Employee under the Plan shall be assignable or transferable, in whole or in
part, either directly or by operation of law or otherwise, including without
limitation by execution, levy, garnishment, attachment, pledge or in any other
manner, but excluding adjudication of incompetency; no attempted assignment or
transfer thereof shall be effective; and no right or interest of any Employee
under the Plan shall be liable for, or subject to, any obligation or liability
of such Employee, except to the extent specifically provided for herein.
8.4    Plan Unfunded. The Plan is unfunded.
8.5    No Set Off; No Mitigation. Except as provided herein, the Company’s
obligation to make the payments provided for in the Plan and otherwise to
perform its obligations hereunder shall not be affected by any circumstances,
including without limitation any set-off, counterclaim, recoupment, defense or
other right which the Company may have against Employee or others. In no event
shall Employee be obligated to seek other employment or take any other action by
way of mitigation of the amounts payable to Employee under any of the provisions
of the Plan, and such amounts shall not be reduced whether or not Employee
obtains other employment.
8.6    Governing Law. The Plan shall be governed by and construed in accordance
with the Employee Retirement Income Security Act of 1974, as amended, and to the
extent not preempted, the laws of the Commonwealth of Pennsylvania.
8.7    Welfare Plan. The Plan is intended to constitute a "welfare plan" under
the Employee Retirement Income Security Act of 1974, as amended, and any
ambiguities in the Plan shall be construed to effect that intent.
8.8    Section 409A of the Code.
(c)    Interpretation. Notwithstanding the other provisions hereof, this Plan is
intended to comply with the requirements of Section 409A of the Code, to the
extent applicable, and this Plan shall be interpreted to avoid any penalty
sanctions under Section 409A of the Code. Accordingly, all provisions herein, or
incorporated by reference, shall be construed and interpreted to comply with
Section 409A of the Code and, if necessary, any such provision shall be deemed
amended to comply with Section 409A of the Code. If any payment or benefit
cannot

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Exhibit 10.1

be provided or made at the time specified herein without incurring sanctions
under Section 409A of the Code, then such benefit or payment shall be provided
in full at the earliest time thereafter when such sanctions will not be imposed.
For purposes of Section 409A of the Code, all payments to be made upon a
termination of employment under this Plan may only be made upon a “separation
from service” within the meaning of such term under Section 409A of the Code,
each payment made under this Plan shall be treated as a separate payment and the
right to a series of installment payments under this Plan is to be treated as a
right to a series of separate payments. In no event shall Employee, directly or
indirectly, designate the calendar year of payment by the timing of execution of
a Release or otherwise. If a payment under the Plan is subject to Section 409A
of the Code and payment could be made or could commence in two calendar years
based on when the Employee executes the Release, payment shall be made or shall
commence in the later calendar year.
(d)    Payment Delay. To the maximum extent permitted under Section 409A of the
Code, the severance benefits payable under this Plan are intended to comply with
the “short-term deferral exception” under Treas. Reg. §1.409A-1(b)(4), and any
remaining amount is intended to comply with the “separation pay exception” under
Treas. Reg. §1.409A-1(b)(9)(iii); provided, however, if on the date of
Employee’s termination of employment Company’s stock (or stock of any other
company required to be aggregated with Company for purposes of Section 409A of
the Code) is publicly-traded on an established securities market or otherwise
and Employee is a “specified employee” (as such term is defined in Section
409A(a)(2)(B)(i) of the Code and its corresponding regulations) as determined by
the Company’s Board of Directors (or its delegate) in its sole discretion in
accordance with its “specified employee” determination policy, then all cash
severance payments payable to Employee under this Plan that are deemed as
deferred compensation subject to the requirements of Section 409A of the Code
and payable within six (6) months following Employee’s “separation from service”
shall be postponed for a period of six (6) months following Employee’s
“separation from service” with Company. The postponed amounts shall be paid to
Employee in a lump sum within thirty (30) days after the date that is six (6)
months following Employee’s “separation from service” with Company. If Employee
dies during such six (6) month period and prior to payment of the postponed cash
amounts hereunder, the amounts delayed on account of Section 409A of the Code
shall be paid to the personal representative of Employee’s estate within sixty
(60) days after Employee’s death.
(e)    Reimbursements. All reimbursements and provision of in-kind benefits
provided under this Plan shall be made or provided in accordance with the
requirements of Section 409A of the Code, including, where applicable, the
requirement that (i) any reimbursement is for expenses incurred during
Employee’s lifetime (or during a shorter period of time specified in this Plan),
(ii) the amount of expenses eligible for reimbursement, or the amount of in-kind
benefits provided, during a calendar year may not affect the expenses eligible
for reimbursement in any other calendar year, (iii) the reimbursement of an
eligible expense or

16

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Exhibit 10.1

provision of in-kind benefits will be made on or before the last day of the
taxable year following the year in which the expense is incurred or payment
becomes due, and (iv) the right to reimbursement or in-kind benefits is not
subject to liquidation or exchange for another benefit. Any tax gross up
payments to be made hereunder shall be made not later than the end of Employee’s
taxable year next following Employee’s taxable year in which the related taxes
are remitted to the taxing authority.
8.9    Recoupment Policy. The Employee and any Severance Pay or benefits to
which the Employee shall be entitled to under the Plan shall be subject to any
compensation, clawback and recoupment policies as required by the Dodd-Frank Act
or otherwise that may be applicable to the Employee as an employee of the
Company, as in effect from time to time and as approved by the Board of
Directors, the Compensation Committee or a duly authorized committee thereof,
whether or not such policies are approved before or after the Effective Date.

17