Document:

Exhibit 10.4

 

 

 

CLARION PROPERTY TRUST
INC.

INDEPENDENT DIRECTORS
COMPENSATION PLAN

 

 

 

 

 

CLARION PROPERTY TRUST
INC.

INDEPENDENT DIRECTORS
COMPENSATION PLAN

 

ARTICLE 1

PURPOSE

 

1.1.                              PURPOSE.  The
purpose of the Plan is to attract, retain and compensate highly-qualified
individuals who are not employees of Clarion Property Trust Inc. or any of its
subsidiaries or affiliates for service as members of the Board by providing
them with competitive compensation.  The
Plan is a sub-plan of the Clarion Property Trust Inc. Long Term Incentive Plan
(the “Incentive Plan”).

 

1.2.                              ELIGIBILITY. Independent Directors of the Company who
are Eligible Participants, as defined below, shall automatically be
participants in the Plan.

 

ARTICLE 2

DEFINITIONS

 

2.1.                              DEFINITIONS.  Capitalized terms used herein and not
otherwise defined shall have the meanings given such terms in the Incentive
Plan. Unless the context clearly indicates otherwise, the following terms shall
have the following meanings:

 

“Base Annual Retainer” means the annual
retainer (excluding Supplemental Annual Retainers and expenses) payable by the
Company to an Independent Director pursuant to Section 5.1 hereof for
service as a director of the Company, as such amount may be changed from time
to time.

 

“Board” means the Board of Directors of the
Company.

 

“Charter” means the articles of incorporation
of the Company, as such articles of incorporation may be amended from time to
time.

 

“Company” means Clarion Property Trust Inc.

 

“Effective Date” of the Plan has the meaning
set forth in Section 8.4 of the Plan.

 

“Eligible Participant” means any person who
is an Independent Director on the Effective Date or becomes an Independent
Director while this Plan is in effect; except that during any period a director
is prohibited from participating in the Plan by his or her employer or
otherwise waives participation in the Plan, such director shall not be an
Eligible Participant.

 

“Independent Director” means a director of
the Company who is not a common law employee of the Company and who meets the
additional requirements set forth for an “independent director” in the Charter.

 

“Plan” means this Clarion Property Trust Inc.
Independent Directors Compensation Plan, as amended from time to time.

 

“Plan Year(s)” means the approximate
twelve-month periods between annual meetings of the

 

1

 

stockholders
of the Company, which, for purposes of the Plan, are the periods for which
annual retainers are earned.

 

“Restricted
Stock” means Class A Stock granted to an Independent Director under Article
6 that is subject to certain restrictions and to risk of forfeiture.

 

“Supplemental Annual Retainer” means the
annual retainer (excluding the Base Annual Retainer and expenses) payable by
the Company to an Independent Director pursuant to Section 5.2 hereof for
service as the chair or a member of the Audit Committee of the Board, as such
amount may be changed from time to time.

 

“Stock” means the $0.01 par value Class
A and Class W common stock of
the Company.

 

ARTICLE 3

ADMINISTRATION

 

3.1.                              ADMINISTRATION.  The Plan shall be administered by the
Board.  Subject to the provisions of the
Plan, the Board shall be authorized to interpret the Plan, to establish, amend
and rescind any rules and regulations relating to the Plan, and to make
all other determinations necessary or advisable for the administration of the
Plan.  The Board’s interpretation of the
Plan, and all actions taken and determinations made by the Board pursuant to
the powers vested in it hereunder, shall be conclusive and binding upon all
parties concerned, including the Company, its stockholders and persons granted
awards under the Plan. The Board may appoint a plan administrator to carry out
the ministerial functions of the Plan, but the administrator shall have no
other authority or powers of the Board.

 

3.2.                              RELIANCE.  In administering the Plan, the
Board may rely upon any information furnished by the Company, its public
accountants and other experts.  No
individual will have personal liability by reason of anything done or omitted
to be done by the Company or the Board in connection with the Plan.  This limitation of liability shall not be
exclusive of any other limitation of liability to which any such person may be
entitled under the Company’s certificate of incorporation or otherwise.

 

ARTICLE 4

SOURCE
OF SHARES

 

4.1                                 SOURCE
OF SHARES.  The shares of Stock or
other equity that may be issued pursuant to the Plan shall be issued under the
Incentive Plan, subject to all of the terms and conditions of the Incentive
Plan.  The terms contained in the
Incentive Plan are incorporated into and made a part of this Plan with respect
to shares of Stock or other equity granted pursuant hereto and any such grant
shall be governed by and construed in accordance with the Incentive Plan.  In the event of any actual or alleged
conflict between the provisions of the Incentive Plan and the provisions of
this Plan, the provisions of the Incentive Plan shall be controlling and
determinative.  This Plan does not
constitute a separate source of Shares for the grant of the Restricted Stock
awards described herein.

 

ARTICLE 5

RETAINERS AND EXPENSES

 

5.1.                              BASE ANNUAL RETAINER.  Each
Eligible Participant shall be paid a Base Annual Retainer for service as a
director during each Plan Year.  The
amount of the Base Annual Retainer shall be established from time to time by
the Board.  Until changed by the Board,
the Base Annual Retainer for a full Plan Year shall be $60,000 (which Base
Annual Retainer includes fees for attendance at meetings of the Board or its
committees).  The Base Annual Retainer
shall be payable in approximately equal quarterly installments in advance,
beginning on the date of the annual stockholders meeting; provided, however,
that for the first Plan Year, the first installment shall begin on the
Effective Date and be prorated based on the number of full months in such
quarter after the Effective Date. A pro rata Base Annual Retainer will be paid
to any person who becomes an Eligible Participant on a date other than the
beginning of a Plan Year, based on the number of full months he or she serves
as an Independent Director during the Plan Year.  Payment of such prorated Base Annual Retainer
shall begin on the date that the person first becomes an Eligible Participant,
and shall resume on a quarterly basis thereafter.

 

5.2.                              SUPPLEMENTAL ANNUAL RETAINERS.

 

(a)           The chairperson of the Audit Committee of the Board shall be paid a
Supplemental Annual Retainer for his or her service as such chairperson during
a Plan Year, payable quarterly at the same times as installments of the Base
Annual Retainer. The amount of the Supplemental Annual Retainer for the
chairperson of the Audit Committee shall be established from time to time by
the Board.  Until changed by the Board,
the Supplemental Annual Retainer for a full Plan Year for the chairperson of
the Audit Committee shall be $20,000. A pro rata Supplemental Annual Retainer
will be paid to any Eligible Participant who becomes the chairperson of the
Audit Committee of the Board on a date other than the beginning of a Plan Year,
based on the number of full months he or she serves as a chairperson of the Audit
Committee of the Board during the Plan Year. Payment of such pro rated
Supplemental Annual Retainer shall begin on the date that the person first
becomes chairperson of the Audit Committee, and shall resume on a quarterly
basis thereafter.

 

(b)           Each member of the Audit Committee of
the Board, other than the chairperson of the Audit Committee whose supplemental
retainer is set forth above, shall be paid a Supplemental Annual Retainer for
his or her service as a member of the Audit Committee during a Plan Year,
payable quarterly at the same times as installments of the Base Annual
Retainer. The amount of the Supplemental Annual Retainer for a member of the
Audit Committee shall be established from time to time by the Board.  Until changed by the Board, the Supplemental
Annual Retainer for a full Plan Year for a member of the Audit Committee, other
than the chairperson of the Audit Committee, shall be $10,000. A pro rata
Supplemental Annual Retainer will be paid to any Eligible Participant who
becomes a member of the Audit Committee of the Board on a date other than the
beginning of a Plan Year, based on the number of full months he or she serves
as a member of the Audit Committee of the Board during the Plan Year. Payment
of such pro rated Supplemental Annual Retainer shall begin on the date that the
person first becomes a member of the Audit Committee, and shall resume on a
quarterly basis thereafter.

 

2

 

5.3.                              TRAVEL EXPENSE REIMBURSEMENT.  All Eligible Participants shall be
reimbursed for reasonable travel expenses in connection with attendance at
meetings of the Board and its committees, or other Company functions at which
the Chief Executive Officer or Chair of the Board requests the Independent
Director to participate. Notwithstanding the foregoing, the Company’s
reimbursement obligations pursuant to this Section 5.3 shall be limited to
expenses incurred during such director’s service as an Independent
Director.  Such payments will be made
within 30 days after delivery of the Independent Director’s written requests
for payment, accompanied by such evidence of expenses incurred as the Company
may reasonably require, but in no event later than the last day of the
Independent Director’s tax year following the tax year in which the expense was
incurred.  The
amount reimbursable in any one tax year shall not affect the amount
reimbursable in any other tax year. 
Independent Directors’ right to reimbursement pursuant to this Section 5.3
shall not be subject to liquidation or exchange for another benefit.

 

ARTICLE 6

EQUITY
COMPENSATION

 

6.1.                              INITIAL
RESTRICTED STOCK GRANT.

 

(a)                                  Subject
to share availability under the Incentive Plan and the terms of this Section 6.1(a),
on the first date an Independent Director is initially elected or appointed to
the Board, he or she shall receive an award of 5,000 shares of Restricted
Stock.  Notwithstanding the foregoing,
each Independent Director elected or appointed to the Board prior to the date
that the Company issues fifteen million (15,000,000) shares of Stock in its
initial public offering (the “Minimum Issuance Date”) and who remains an
Independent Director as of the Minimum Issuance Date shall receive such initial
Restricted Stock grant on the Minimum Issuance Date.  Such shares of Restricted Stock shall be
subject to the terms and restrictions described below in Section 6.1(b) and
shall be in addition to any otherwise applicable annual grant of Restricted
Stock granted to such Independent Director under Section 6.2.

 

(b)                                 Shares
of Restricted Stock granted under this Section 6.1 shall be evidenced by a
written Award Certificate and shall be subject to the terms and conditions
described herein and in the Incentive Plan. 
Unless and until provided otherwise by the Board, the shares of
Restricted Stock granted pursuant to this Section 6.1 shall vest and
become non-forfeitable as to one hundred percent (100%) of the shares on the first
anniversary of the Grant Date; provided, however, that the initial Restricted
Stock grant granted to each Independent Director elected or appointed to the
Board prior to the Minimum Issuance Date pursuant to this Section 6.1
shall vest and become non-forfeitable as to one hundred percent (100%) of the
Shares on the day immediately preceding the first annual stockholders meeting
held after the Minimum Issuance Date. 
Notwithstanding the foregoing vesting schedules, the shares of
Restricted Stock shall become fully vested on the earlier occurrence of (i) the
termination of the grantee’s service as a director of the Company due to his or
her death or Disability, or (ii) a Change in Control of the Company.  If the grantee’s service as a director of the
Company terminates other than as described in clause (i) of the foregoing
sentence, then the grantee shall forfeit all of his or her right, title and
interest in and to any unvested shares of Restricted Stock as of the date of
such termination from the Board and such Restricted Stock shall be reconveyed
to the Company without further consideration or any act or action by the
grantee.

 

6.2           SUBSEQUENT RESTRICTED STOCK GRANT.  Subject to share availability under the
Incentive Plan, the Board may approve, at its discretion, an additional award
of shares of Restricted Stock upon subsequent re-election of the Independent
Director to the Board, subject to such terms and conditions as provided by the
Board and in the Incentive Plan.

 

ARTICLE 7

AMENDMENT, MODIFICATION AND TERMINATION

 

7.1.                              AMENDMENT, MODIFICATION AND TERMINATION.  The
Board may, at any time and from time to time, amend, modify or terminate the
Plan without stockholder approval; provided, however, that if an amendment to
the Plan would, in the reasonable opinion of the Board, require stockholder
approval under applicable laws, policies or regulations or the applicable
listing or other requirements of a securities exchange on which the Stock is
listed or traded, then such amendment shall be subject to stockholder approval;
and provided further, that the Board may condition any other amendment or
modification on the approval of stockholders of the Company for any reason.

 

ARTICLE 8

GENERAL PROVISIONS

 

8.1.                              ADJUSTMENTS.  The adjustment provisions of
the Incentive Plan shall apply with respect to equity awards granted pursuant
to this Plan.

 

8.2.                              DURATION OF THE PLAN.  The
Plan shall remain in effect until terminated by the Board.

 

8.3.                              EXPENSES OF THE PLAN.  The
expenses of administering the Plan shall be borne by the Company.

 

8.4.                              EFFECTIVE DATE.  The Plan was originally adopted by the Board on September 22, 2010,
and became effective on that date (the “Effective Date”).

 

3

 

*****

 

The foregoing is hereby acknowledged as being the Clarion
Property Trust Inc.  Independent
Directors Compensation Plan as adopted by the Board on September 22, 2010.

 

	
   

  	
  CLARION PROPERTY TRUST
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael O’Connor

  
	
   

  	
  Name:

  	
  Michael O’Connor

  
	
   

  	
  Title:

  	
  Secretary

  

 

4Exhibit 10.5

 

VALUATION SERVICES AGREEMENT

 

This VALUATION SERVICES AGREEMENT (“Agreement”)
is effective as of August 10, 2010, by and among Altus Group U.S. Inc. (“Altus”),
and Clarion Property Trust Inc. (the “Company”).

 

WHEREAS the Company is a non-listed real estate investment
trust incorporated in the state of Maryland and advised by CPT Advisors, LLC, a
wholly owned subsidiary of ING Clarion Partners, LLC (“Clarion”).

 

WHEREAS pursuant to the Company’s Prospectus, until such
time as the Company has received and accepted subscriptions for the minimum
offering of at least $50,000,000 and released the proceeds from such
subscriptions from the escrow account maintained for the benefit of the
Company, the Company shall not commence operations.

 

WHEREAS the Company desires to hire Altus to perform certain
independent valuation advisory functions should the Company commence
operations.

 

NOW, THEREFORE, Altus and the Company hereby agree as
follows:

 

1.             Services. Altus shall
perform the services outlined in Schedule A in accordance with the Company’s
Valuation Guidelines set forth in Schedule B.

 

2.             Payment
for Services.  As
compensation for the services rendered by Altus pursuant to this Agreement, the
Company shall pay Altus in the amounts and in accordance with the terms and
conditions set forth in Schedule C. Such amount shall be paid quarterly, in
arrears, within 30 business days of the end of the previous calendar quarter.

 

3.             Representations
and Warranties.

 

(a)           Representations and
Warranties of the Company.  The
Company represents and warrants to Altus that:

 

(i)            It is duly organized and
validly existing in good standing under the laws of Maryland, and has been duly
authorized by proper corporate action to enter into this Agreement and to
perform its obligations hereunder, evidence of which action shall be properly
maintained and made part of its records.

 

(ii)           The execution, delivery and
performance of this Agreement will not violate any provision of applicable law
or any agreement or instrument to which it is bound.

 

 

(iii)          It has obtained and will
maintain any and all necessary approvals, orders, consents, authorizations,
certificates, licenses, permits, or validations of, or exemptions or other
actions by, or recordings or registrations with any federal, state and local
governmental or regulatory or supervisory authority, or any self-regulatory
organization (each, a “Governmental Entity”) having jurisdiction over it
that is or will be necessary in connection with the execution and delivery of
this Agreement, or its performance of or compliance with the terms and
conditions of this Agreement.

 

(iv)          The Company or its agents
will supply Altus with the property-specific information necessary to enable
Altus to perform their duties pursuant to this Agreement.  This information may include, but may not be
limited to: rent rolls, annual budgets, leases or lease abstracts, access to
the property and the property managers if necessary, engineering reports,
environmental reports, updates regarding tenant activities if necessary,
capital improvement budgets and plans, acquisition or disposition activity, etc.

 

(v)           The Company or its agents
will alert Altus of any material event that it is reasonably aware which could
impact the appraised value of one or more of the Company’s property assets.

 

(b)           Representations and
Warranties of Altus.  Altus
represents and warrants to the Company that:

 

(i)            It is duly organized and
validly existing in good standing under the laws of the jurisdiction in which
it was organized, and has been duly authorized by proper corporate action to
enter into this Agreement and to perform its obligations hereunder, evidence of
which action shall be properly maintained and made part of its records.

 

(ii)           The execution, delivery and
performance of this Agreement will not violate any provision of applicable law
or any agreement or instrument to which it is bound.

 

(iii)          It has obtained and will
maintain any and all necessary approvals, orders, consents, authorizations,
certificates, licenses, permits, or validations of, or exemptions or other
actions by, or recordings or registrations with any Governmental Entity having
jurisdiction over it that is or will be necessary in connection with the
execution and delivery of this Agreement, or its performance of or compliance
with the terms and conditions of this Agreement.

 

4.             Indemnification
by the Independent Valuation Advisor.  Altus shall indemnify, defend and hold
harmless the Company and its directors, officers, 

 

 

employees, stockholders,
agents, affiliates, controlling persons, successors, and assigns, from and
against any and all losses, claims, liabilities, costs, and expenses, including
reasonable attorney fees (collectively, “Losses”), arising from or
relating in any way to: (i) the lack of good faith, willful misconduct, or
negligence of Altus or its employees and agents in carrying out its duties and
responsibilities under this Agreement; (ii) any material breach of this
Agreement by Altus; (iii) any violation of applicable law by Altus in
connection with the performance of duties under this Agreement; and (iv) any
breach of any representation or warranty made under this Agreement.

 

5.             Indemnification
by the Company.  The Company
shall indemnify, defend and hold harmless Altus and its directors, officers,
employees, stockholders, agents, affiliates, controlling persons, successors,
and assigns, from and against any and all Losses arising from or relating in
any way to: (i) the lack of good faith, willful misconduct, or negligence
of the Company or its employees and agents in carrying out its duties and
responsibilities under this Agreement; (ii) any material breach of this
Agreement by the Company; (iii) any violation of applicable law by the
Company in connection with the performance of its duties hereunder; and (iv) any
breach of any representation or warranty made under this Agreement.

 

6.             Insurance.  Altus shall obtain and maintain
the following insurance, at its own expense, in amounts not less than those
specified below:

 

(a)           Commercial general liability
on an occurrence form for bodily injury and property damage with a combined
single limit of $1,000,000 per occurrence and $2,000,000 from the aggregate of
all occurrences within each policy year, including, but not limited to
premises-operation, products-completed operations and contractual liability
(including coverage for the indemnity clause provided under this Agreement).

 

(b)           Business automobile
liability covering owned, hired and non-owned vehicles with a combined single
limit of $1,000,000 per occurrence.

 

(c)           Employer’s liability
insurance in an amount not less than $1,000,000.

 

(d)           Excess liability (umbrella)
insurance on the above with limits of $5,000,000.

 

(e)           Workers’ compensation
insurance in accordance with the laws of the state with jurisdiction.

 

(f)            Professional liability
insurance covering the activities of Altus written on a “claims made” basis
with limits of at least $5,000,000. 
Coverage shall be maintained in effect during the period of this
Agreement and for not less than two (2) years after termination of this
Agreement.

 

7.             The insurance contained in
items (a), (b) and (d) above shall, without liability on the part of
the Company and Clarion for premiums, include the Company and 

 

 

Clarion as additional
insureds.  Such insurance shall be placed
with reputable insurance companies licensed or authorized to do business in the
state in which the property is located with a minimum Best’s rating of A-:
X.  In addition, each policy shall
contain provisions giving each of the additional insureds thirty (30) days’
prior written notice of cancellation of or material change in coverage.  Certificates of insurance evidencing the
existence and amount of each insurance policy required hereunder shall be
delivered to the Company and Clarion prior to the commencement of any work.

 

8.             Term of
Agreement.  This
Agreement will become effective as of the date whereby the Company commences
operations and shall continue for a period of one (1) year, with two (2) successive
one-year renewal terms.  The renewal
terms will automatically commence unless this Agreement is terminated by either
party with 90 days notice prior to the end of each respective term.  Notwithstanding the foregoing, this Agreement
will be terminated immediately upon a material breach of this Agreement by any
party within 30 days after notice from the other; provided the breaching party
has the opportunity to cure such breach, if curable, within such 30 day period.

 

9.             Confidentiality.  The Company and Altus agree to keep confidential
all proprietary data, software, process, information, and or documentation of
the other party related to this Agreement and the performance of their
obligations hereunder, except as may be necessary to perform under this
Agreement or as otherwise may be agreed to from time to time by the other
party.

 

10.          Notices.  All notices and other communications
hereunder shall be in writing and shall be delivered either by overnight
delivery by a recognized national carrier (for example, UPS or Federal Express)
or by facsimile transmission with a confirmation mailed by overnight delivery
to the other party at the following address or such other address as each party
may give notice to the other:

 

	
   

  	
   

  	
  If
  to Altus:

  
	
  If
  to the Company:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Clarion
  Property Trust, Inc.

  	
   

  	
  Altus
  Group U.S.

  
	
  230
  Park Avenue, 12th Floor

  	
   

  	
  400
  Campus Drive

  
	
  New
  York, NY 10169

  	
   

  	
  PO
  Box 988

  
	
  fax: (212) 883 - 2977

  	
   

  	
  Florham
  Park, NJ 07932

  
	
  Attn: Amy Boyle

  	
   

  	
  fax: (201) 652-9045

  
	
  Title: Chief Financial Officer

  	
   

  	
  Attn: Sung Lee

  
	
   

  	
   

  	
  Title: Director, Research, Valuation &
  Advisory

  

 

 

11.          Amendment, Assignment, and Other
Matters.

 

(a)           Amendments.  This Agreement may not be amended except by a
writing signed by both parties.

 

(b)           Assignments.  This Agreement shall not be assigned by any
party without the written consent of the other party; provided however, that
any party may assign this Agreement to an entity which controls, is controlled
by, or is under common control with such party by providing notice of such
assignment to the other party.

 

(c)           Counterparts.  This Agreement may be executed in several
counterparts, each of which shall be an original, but all of which together
will constitute one and the same instrument. 
Any electronic signature shall be deemed an original for the purposes of
this Agreement.

 

(d)           Headings.  The headings in this Agreement are for
reference only and will not affect the interpretation or construction of this
Agreement.

 

(e)           Choice of Law.  This Agreement will be governed by and
construed in accordance with the laws of New York, without giving effect to the
principles of conflicts of law thereof.

 

(f)            Entire Agreement.  This Agreement embodies the entire agreement
and understanding between the parties and supersedes all prior agreements and
understandings relating to the subject matter hereof, provided that the parties
may embody in one or more separate documents their agreement, if any, with
respect to delegated duties.

 

(g)           Survivability.  The parties’ obligation under Sections 4, 5
and 8 will survive termination of this Agreement.

 

(h)           No Joint Venture.  The parties to this Agreement are independent
contractors and nothing in this Agreement shall be construed to create a
partnership, joint venture, agency relationship or other joint enterprise
between them.

 

(i)            Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law.  In the event that
any provision of this Agreement is held under applicable law to be invalid,
illegal, or unenforceable in any respect, such provision will be ineffective
only to the extent of such invalidity, and the validity, legality and
enforceability of the remaining provisions of this Agreement will not be
affected or impaired in any way.

 

 

IN WITNESS WHEREOF, the undersigned have
executed this Agreement as of the date set forth above.

 

 

	
  Clarion
  Property Trust Inc.

  	
   

  	
  Altus
  Group U.S. Inc.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /S/
  AMY BOYLE

  	
   

  	
  By:

  	
  /S/
  ROBERT K RUGGLES III

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Amy
  Boyle

  	
   

  	
  Name:

  	
  Robert
  K. Ruggles III

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  CFO

  	
   

  	
  Title:

  	
  President
  RVA

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