Document:

Exhibit 10.63

 Exhibit 10.63 
  
 Performance Bonus Agreement 
  
 This Performance Bonus Agreement is made this 16th day of December, 2004 by and between Cornerstone Realty Income
Trust, Inc. (“Cornerstone”) and David L. Carneal (the “Executive”). 
  
 RECITALS 
  

	 	A.	The Executive serves as the Chief Operating Officer of Cornerstone and has provided valuable services to Cornerstone throughout 2004. 

  

	 	B.	In recognition of the valuable services provided to Cornerstone by the Executive during the year 2004, Cornerstone’s Chief Executive Officer has recommended to the Compensation
Committee of Cornerstone that the Executive receive a year-end performance bonus of $95,000. 

  

	 	C.	The Compensation Committee of Cornerstone has agreed that Cornerstone shall pay to the Executive a year-end performance bonus of $95,000, subject, however, to the terms and
conditions set forth in this Agreement. 

  
 Now
therefore, the undersigned do hereby agree as follows: 
  

	 	1.	Year-End Performance Bonus. Upon full execution of this Agreement by the parties, and subject to the conditions of Section 2 of this Agreement, the Executive shall be
entitled to receive from Cornerstone a year-end performance bonus of $95,000 (the “Year-End Performance Bonus”), to be paid by December 31, 2004. It is expressly understood and agreed that this bonus is in recognition of the services and
performance of the Executive rendered to Cornerstone during the year 2004 and is in recognition of the efforts of the Executive during such year and the benefits accruing to Cornerstone and its economic performance during that year.

  

	 	2.	 Responsibility for Certain Taxes. Notwithstanding anything to the contrary contained in that certain Change in Control Agreement dated October 17, 2004
between Cornerstone and the Executive (the “Change in Control Agreement”), or any other agreement, written or oral, express or implied, in the event the Year-End Performance Bonus becomes subject to any excise tax under Section 4999 of the
Internal Revenue Code or any similar tax payable under any United States federal, state, local or other law (such excise tax and all such similar taxes, collectively “Excise Taxes”), Cornerstone shall not pay to the Executive a Gross-up
Payment (as that term is defined in Section 5.1 of the Change in Control Agreement) for the Excise Taxes on the Year-End Performance Bonus. In the alternative Cornerstone shall reduce the Gross-up Payment otherwise payable under the Change in
Control Agreement by an amount attributable solely to the Year-End Performance Bonus. This Agreement in no way 

 
affects Cornerstone’s obligation to pay to the Executive a Gross-up Payment on any other benefit received or deemed received by the Executive from
Cornerstone or otherwise that is subject to Excise Tax, including but not limited to the amounts payable pursuant to Section 4.1 of the Change in Control Agreement, which may include factoring in the Year-End Performance Bonus for purposes of the
benefits payable under Section 4.1(a) thereof. 
  

	 	3.	Miscellaneous Provisions. The Executive’s rights under this Agreement may not be assigned or transferred in whole or in part, except that the personal representative of
the Executive’s estate will receive any amounts payable under this Agreement after the death of the Executive. This Agreement shall be enforceable against the Executive and any legal representative or successor to the Executive. To the extent
not governed by federal law, this Agreement shall be construed in accordance with and in all respects governed by the laws of the Commonwealth of Virginia, without reference to its conflict of laws rules. No provisions of this Agreement may be
modified, waived or discharged unless such modification, waiver or discharge is agreed to in writing and the writing is executed by the Executive and Cornerstone.  

  
 IN WITNESS WHEREOF, Cornerstone and the Executive have executed this Agreement as of the date first above written.

  

			
	CORNERSTONE REALTY INCOME TRUST, INC.
		
	By:	 	 /s/ Glade M. Knight

	 	 	Glade M. Knight
	 	 	Chief Executive Officer
		
	 	 	 /s/ David L. Carneal

	 	 	David L. CarnealExhibit 10.64

 Exhibit 10.64 
  
 Agreement Evidencing Waiver of Performance Bonus 
  
 This Agreement Evidencing Waiver of Performance Bonus is made this 25th day of February, 2005 by and between Cornerstone
Realty Income Trust, Inc. (“Cornerstone”) and Glade M. Knight (the “Executive”). 
  
 RECITALS 
  

	 	A.	The Executive serves as the Chairman and Chief Executive Officer of Cornerstone and has provided valuable services to Cornerstone throughout 2004. 

  

	 	B.	In recognition of the valuable services provided to Cornerstone by the Executive during the year 2004, Cornerstone’s Chief Executive Officer recommended to the Compensation
Committee of Cornerstone that the Executive receive a year-end performance bonus of $200,000. 

  

	 	C.	The Compensation Committee of Cornerstone recommended to the Board of Directors of Cornerstone that Cornerstone pay to the Executive a year-end performance bonus of $200,000,
subject to certain terms and conditions. 

  

	 	D.	The Executive requested that $100,000 of the $200,000 bonus recommended by the Compensation Committee instead be made available for Cornerstone to pay severance compensation to
certain non-executive employees whose employment is expected to be terminated in connection with the proposed merger involving Cornerstone and Colonial Properties Trust. 

  

	 	E.	The Executive has elected to waive and refuse acceptance of any amount approved as a 2004 year-end performance bonus by Cornerstone’s Board of Directors, and Cornerstone has
agreed to acknowledge and accept such waiver and refusal. Any 2004 year-end performance bonus from Cornerstone to which the Executive might be entitled absent the provisions of this Agreement is referred to in this Agreement as the “Year-End
Performance Bonus.” 

  
 Now therefore, the
undersigned do hereby agree as follows: 
  

	 	1.	Waiver of Year-End Performance Bonus. The Executive forever waives and refuses to accept any Year-End Performance Bonus. Cornerstone acknowledges and accepts such waiver and
refusal and Cornerstone has no obligation to pay the Executive any portion of the Year-End Performance Bonus. 

	 	2.	Payment Required under Change in Control Agreement. Notwithstanding anything to the contrary contained in that certain Change in Control Agreement dated August 1, 2000
between Cornerstone and the Executive, as amended (the “Change in Control Agreement”), or any other agreement, written or oral, express or implied, the Year-End Performance Bonus shall not be, in any way, included in the calculation or
determination of either the “Annual Bonus” under Section 2.2 of the Change in Control Agreement or the payment required by Section 4.1(a) of the Change in Control Agreement. 

  

	 	3.	Responsibility for Certain Taxes. It is the intention of the parties that no portion of the Year-End Performance Bonus constitute income to the Executive. Notwithstanding
anything to the contrary contained in that certain Change in Control Agreement, or any other agreement, written or oral, express or implied, if, notwithstanding the intention and expectations of Cornerstone and the Executive, the Year-End
Performance Bonus becomes subject to any excise tax under Section 4999 of the Internal Revenue Code or any similar tax payable under any United States federal, state, local or other law (such excise tax and all such similar taxes, collectively
“Excise Taxes”), Cornerstone shall not pay to the Executive a Gross-up Payment (as that term is defined in Section 5.1 of the Change in Control Agreement) for the Excise Taxes on or attributable to the Year-End Performance Bonus. This
Agreement in no way affects Cornerstone’s obligation to pay to the Executive a Gross-up Payment on any other benefit received or deemed received by the Executive from Cornerstone or otherwise that is subject to Excise Tax, including but not
limited to the amounts payable pursuant to Section 4.1 of the Change in Control Agreement, provided however, that such amounts shall not include factoring in any Year-End Performance Bonus for purposes of the benefits payable under
Section 4.1(a) thereof. 

  

	 	4.	Miscellaneous Provisions. The Executive’s rights under this Agreement may not be assigned or transferred in whole or in part. This Agreement shall be enforceable against
the Executive and any legal representative or successor to the Executive. To the extent not governed by federal law, this Agreement shall be construed in accordance with and in all respects governed by the laws of the Commonwealth of Virginia,
without reference to its conflict of laws rules. No provisions of this Agreement may be modified, waived or discharged unless such modification, waiver or discharge is agreed to in writing and the writing is executed by the Executive and
Cornerstone.  

  

 -2- 

 IN WITNESS WHEREOF, Cornerstone and the Executive have executed this Agreement as of the date first above
written. 
  

			
	CORNERSTONE REALTY INCOME TRUST, INC.
		
	By:	 	 /s/ Stanley J. Olander, Jr.

	 	 	Stanley J. Olander, Jr.
	 	 	President
		
	 	 	 /s/ Glade M. Knight

	 	 	Glade M. Knight

  

 -3-Summary of base salary adjustments for named executive officers

 Exhibit 10.15 
  
 Adjustments to Compensation for Named Executive Officers 
  

				
	 Adjusted salary for CEO from CEO’s Employment Agreement
	  	$	350,000
		
	 Adjusted salary for CFO from CFO’s Employment Agreement
	  	$	185,000
	 Adjusted salary for former Chief Operating Officer from such COO’s Employment Agreement in effect prior to termination of that Employment
Agreement effective August 11, 2004 in connection with COO’s resignation as an executive officer of the Company:
	  	$	175,000Summary of compensation arrangements with directors.

 Exhibit 10.16 
  
 Director Compensation 
  
 Directors who are not also employees of the Company (“Nonemployee Directors”) receive a retainer of $25,000 per year payable in a lump sum
following each annual meeting of shareholders. No meeting fees are payable to the Nonemployee Directors. Nonemployee Directors are reimbursed upon request for reasonable expenses incurred in attending Board of Director or committee meetings.

  
 At each regular annual meeting of shareholders, the Company
grants to each Nonemployee Director a non-qualified stock option covering 5,000 shares of common stock (except that such stock option covers 25,000 shares of common stock for Nonemployee Directors upon their initial election as a director of the
Company). In recognition of added responsibilities for chairing the Board’s Audit, Compensation and Nominating Committees, each such chair has been granted a non-qualified stock option covering 10,000 shares of common stock at each regular
annual meeting of shareholders. Each of these stock options has an exercise price equal to the fair market value of the Company’s common stock on the date of grant. These option grants may be exercised only by the optionee until the earlier of
five years after the date of grant or one year after ceasing to be a director of the Company. 
  
 Non-employee directors may elect to enroll themselves and their eligible dependents in the Company’s group health insurance plan provided that the enrolled director pays the premium cost incurred by the Company
to maintain such insurance benefits. Mr. McGrevin is the only non-employee director who has elected to enroll in such benefit. 
  
 The Company’s Articles of Incorporation adopt the provisions of the Georgia Business Corporation Code (the “Corporation Code”) providing
that no member of the Company’s Board of Directors shall be personally liable to the Company or its shareholders for monetary damages for any breach of his duty of care or any other duty he may have as a director, except liability for any
appropriation, in violation of the director’s duties, of any business opportunity of the Company, for any acts or omissions that involve intentional misconduct or a knowing violation of law, for liability under the Corporation Code for unlawful
distributions to shareholders, and for any transaction from which the director receives an improper personal benefit. 
  
 The Company’s Bylaws provide that each officer and director shall be indemnified for all losses and expenses (including attorneys’ fees and
costs of investigation) arising from any action or other legal proceeding, whether civil, criminal, administrative or investigative, including any action by and in the right of the Company, because he is or was a director, officer, employee or agent
of the Company or, at the Company’s request, of any other organization. In the case of action by or in the right of the Company, such indemnification is subject to the same exceptions, described in the preceding paragraph, that apply to the
limitation of a director’s monetary liability to the Company. The Bylaws also provide for the advancement of expenses with respect to any such action. The Bylaws permit the Company to enter into agreements providing to each officer or director
indemnification rights substantially similar to those set forth in the Bylaws, and such agreements have been entered into between the Company and each of the members of its Board of Directors and certain of its executive officers.

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