Document:

exv10w2

EXHIBIT 10.2

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT is entered into as of ______ ___, 2010 by and among Welsh
Property Trust, Inc., a Maryland corporation (the “Company”), and the holders listed on Schedule I
hereto (each an “Initial Holder” and, collectively, the “Initial Holders”).

RECITALS

     WHEREAS, in connection with the initial public offering of shares of the Company’s common
stock, par value $.01 per share (the “Common Stock”), the Company and Welsh Property Trust, LP, a
Delaware limited partnership (the “Operating Partnership”), have engaged in certain formation
transactions (the “Formation Transactions”), pursuant to which the Initial Holders have received
units of limited partner interest (“OP Units”) in the Operating Partnership for their respective
interests in the entities participating in the Formation Transactions;

     WHEREAS, pursuant to the Operating Partnership Agreement (defined below), OP Units will be
redeemable for cash or, at the Company’s option, exchangeable for shares of Common Stock of the
Company upon the terms and subject to the conditions contained therein; and

     WHEREAS, as a condition to receiving the consent of the Initial Holders to the Formation
Transactions, the Company has agreed to grant the Initial Holders and their permitted assignees and
transferees the registration rights set forth in Article II hereof.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained,
and for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions. In addition to the definitions set forth above, the following terms,
as used herein, have the following meanings:

     “Affiliate” of any Person means any other Person directly or indirectly controlling or
controlled by or under common control with such Person. For the purposes of this definition,
“control” when used with respect to any Person, means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

     “Agreement” means this Registration Rights Agreement, as it may be amended, supplemented or
restated from time to time.

     “Business Day” means any day except a Saturday, Sunday or other day on which commercial banks
in The City of New York, New York or Minneapolis, Minnesota are authorized by law to close.

     “Charter” means the charter of the Company.

     “Commission” means the U.S. Securities and Exchange Commission.

 

 

     “Control Shares” means shares of Common Stock issued under an Issuer Shelf Registration
Statement which if sold by the holder thereof would constitute “restricted securities” as defined
under Rule 144.

     “Effectiveness Period” has the meaning set forth in Section 2.1(b).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     “Exchangeable OP Units” means OP Units which may be redeemable for cash or, at the Company’s
option, exchangeable for shares of Common Stock pursuant to Section 15.1 of the Operating
Partnership Agreement (without regard to any limitations on the exercise of such exchange right as
a result of the Ownership Limit Provisions).

     “Holder” means any Initial Holder who is the record or beneficial owner of any Registrable
Securities or any assignee or transferee of such Initial Holder (including assignments or transfers
of Registrable Securities to such assignees or transferees as a result of the foreclosure on any
loans secured by such Registrable Securities) (x) to the extent such assignment or transfer is
permitted under the Operating Partnership Agreement or the Charter, as applicable, and (y) provided
such assignee or transferee agrees in writing to be bound by all the provisions hereof, unless such
owner, assignee or transferee acquires such Registrable Securities in a public distribution
pursuant to a registration statement under the Securities Act or pursuant to transactions exempt
from registration under the Securities Act where securities sold in such transaction may be resold
without subsequent registration under the Securities Act.

     “Indemnified Party” has the meaning set forth in Section 2.7.

     “Indemnifying Party” has the meaning set forth in Section 2.7.

     “Initial Period” means a period commencing on the date hereof and ending 365 days following
the effective date of the first Resale Shelf Registration Statement (except that, if the shares of
Common Stock issuable upon exchange of Exchangeable OP Units received in the Formation Transactions
are not included in that Resale Shelf Registration Statement as a result of Section 2.1(b), the 365
days shall not begin until the later of the effective date of (i) the first Resale Shelf
Registration Statement and (ii) the first Issuer Shelf Registration Statement.)

     “IPO Date” means the consummation date of the Company’s initial public offering.

     “Issuer Shelf Registration Statement” has the meaning set forth in Section 2.1(b).

     “Notice and Questionnaire” means a written notice, substantially in the form attached as
Exhibit A, delivered by a Holder to the Company (i) notifying the Company of such Holder’s desire
to include Registrable Securities held by it in a Resale Shelf Registration Statement,
(ii) containing all information about such Holder required to be included in such registration
statement in accordance with applicable law, including Item 507 of Regulation S-K promulgated under
the Securities Act, as amended from time to time, or any similar successor rule thereto, and (iii)
pursuant to which such Holder agrees to bound by the terms and conditions hereof.

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     “Operating Partnership Agreement” means the Amended and Restated Agreement of Limited
Partnership of the Operating Partnership, dated as of                     , 2010, as the same may be
amended, modified or restated from time to time.

     “Ownership Limit Provisions” mean the various provisions of the Company’s Charter set forth in
Article VII thereof restricting the ownership of Common Stock by Persons to specified percentages
of the outstanding Common Stock.

     “Person” means an individual or a corporation, partnership, limited liability company,
association, trust, or any other entity or organization, including a government or political
subdivision or an agency or instrumentality thereof.

     “Primary Shares” has the meaning set forth in Section 2.1(b).

     “Registrable Securities” means with respect to any Holder shares of Common Stock at any time
owned, either of record or beneficially, by such Holder and issued or issuable upon exchange of
Exchangeable OP Units received in the Formation Transactions, and any additional shares of Common
Stock issued as a dividend, distribution or exchange for, or in respect of, such shares (including
as a result of combinations, recapitalizations, mergers, consolidations, reorganizations or
otherwise) until the earliest of (i) a registration statement (including a Resale Shelf
Registration Statement) covering such shares has been declared effective by the Commission and such
shares have been disposed of pursuant to such effective registration statement, (ii) such shares
have been publicly sold under Rule 144; (iii) all such shares may be sold pursuant to Rule 144
without limitation as to amount or manner of sale, (iv) such shares may be sold pursuant to Rule
144 and could be sold in one transaction in accordance with the volume limitations contained in
Rule 144(e), or (v) such shares have been otherwise transferred in a transaction that constitutes a
sale thereof under the Securities Act, the Company has delivered a new certificate or other
evidence of ownership for such shares not bearing the Securities Act restricted stock legend and
such shares may be resold without subsequent registration under the Securities Act; provided,
however, that shares of Common Stock (other than Control Shares) issued pursuant to an effective
registration statement (including an Issuer Shelf Registration Statement) are not deemed to be
Registrable Securities.

     “Registration Expenses” has the meaning set forth in Section 2.4.

     “Resale Shelf Registration” has the meaning set forth in Section 2.1(a).

     “Resale Shelf Registration Statement” has the meaning set forth in Section 2.1(a).

     “Rule 144” means Rule 144 promulgated under the Securities Act, as amended from time to time,
or any similar successor rule thereto that may be promulgated by the Commission.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     “Selling Holder” means a Holder who is selling Registrable Securities pursuant to a Resale
Shelf Registration Statement under the Securities Act.

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     “Shelf Registration Statement” means a Resale Shelf Registration Statement and/or an Issuer
Shelf Registration Statement.

     “Suspension Notice” means any written notice delivered by the Company pursuant to Section 2.11
with respect to the suspension of rights under a Resale Shelf Registration Statement or any
prospectus contained therein.

     “Underwriter” means a securities dealer who purchases any Registrable Securities as principal
and not as part of such dealer’s market-making activities.

ARTICLE II

REGISTRATION RIGHTS

     Section 2.1 Shelf Registration.

     (a) Subject to Section 2.11, the Company shall prepare and file not earlier than the
first anniversary of the IPO Date and not later than thirteen (13) months after the IPO
Date, a “shelf” registration statement with respect to the resale of the Registrable
Securities (“Resale Shelf Registration”) by the Holders thereof on an appropriate form for
an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act (the “Resale Shelf Registration Statement”) and permitting the resale of such
Registrable Securities by such Holders in accordance with the methods of distribution set
forth in the Resale Shelf Registration Statement. The Company shall use its commercially
reasonable efforts to cause the Resale Shelf Registration Statement to be declared effective
by the Commission as promptly as reasonably practicable after the filing thereof, and,
subject to Sections 2.1(d) and 2.11, to keep such Resale Shelf Registration Statement
continuously effective for a period ending when all shares of Common Stock covered by the
Resale Shelf Registration Statement are no longer Registrable Securities. Each Initial
Holder that has delivered a duly completed and executed Notice and Questionnaire to the
Company on or prior to the date ten (10) Business Days prior to the date of effectiveness of
the Resale Shelf Registration Statement shall be named as a selling securityholder in the
Resale Shelf Registration Statement and the related prospectus. If required by applicable
law, subject to the terms and conditions hereof, after effectiveness of the Resale Shelf
Registration Statement, the Company shall file a supplement to such prospectus or amendment
to the Resale Shelf Registration Statement as necessary to name as selling securityholders
therein any other Holders that provide to the Company a duly completed and executed Notice
and Questionnaire subsequent to ten (10) Business Days prior to the initial date of
effectiveness, and shall use commercially reasonable efforts to cause any post-effective
amendment to such Resale Shelf Registration Statement filed for such purpose to be declared
effective by the Commission as promptly as reasonably practicable after the filing thereof;
provided, however, that the Company shall not be obligated to file any such prospectus
supplement or post-effective amendment more frequently than every three months.

     (b) The Company may, at its option, satisfy its obligation to prepare and file a Resale
Shelf Registration Statement pursuant to Section 2.1(a) with respect to some or all of the
 shares of Common Stock issuable upon exchange of Exchangeable OP Units received in the
Formation Transactions by preparing and filing with the Commission a

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registration statement on an appropriate form for an offering to be made on a delayed
or continuous basis pursuant to Rule 415 under the Securities Act (an “Issuer Shelf
Registration Statement”) providing for the issuance by the Company, from time to time, to
the Holders of such Exchangeable OP Units of shares of Common Stock registered under the
Securities Act (the “Primary Shares”) in lieu of the Operating Partnership’s obligation to
pay cash for such Exchangeable OP Units; provided that such Issuer Shelf Registration
Statement also covers resales of the Primary Shares by the recipients thereof. The Company
shall use its commercially reasonable efforts to cause the Issuer Shelf Registration
Statement to be declared effective by the Commission as promptly as reasonably practicable
after filing thereof. The Company shall use commercially reasonable efforts, subject to
Sections 2.1(d) and 2.11, to keep the Issuer Shelf Registration Statement continuously
effective for a period expiring on the date all of the shares of Common Stock covered by
such Issuer Shelf Registration Statement have been issued by the Company pursuant thereto
(the “Effectiveness Period”). If the Company shall exercise its rights under this Section
2.1(b) and shall comply with its obligations hereunder regarding such Issuer Shelf
Registration Statement, (a) it shall file the Issuer Shelf Registration Statement at any
time during the four-week period commencing on the first day of the two-week period
immediately preceding the first anniversary of the IPO Date and ending on the last day of
the second week following the IPO Date, and (b) Holders (other than Holders of Control
Shares) shall have no right to have shares of Common Stock issued or issuable upon exchange
of Exchangeable OP Units included in a Resale Shelf Registration Statement pursuant to
Section 2.1(a).

     (c) Underwritten Resale Shelf Registration Statement. Any offering under a Resale
Shelf Registration Statement may be underwritten at the written request of Holders of
Registrable Securities under such registration statement that hold in the aggregate at least
5% of the Registrable Securities; provided that the Company shall not be obligated to effect
more than two underwritten offerings hereunder; provided, further, that the Company shall
not be obligated to effect, or take any action to effect, an underwritten offering (i)
within 120 days following the last date on which an underwritten offering was effected
pursuant to this Section 2.1(c) or if longer, the length of any lock-up required by the
underwriters in the prior underwritten offering, or (ii) during the period commencing with
the date thirty (30) days prior to the Company’s good faith estimate of the date of filing
of (provided the Company is actively employed in good faith commercially reasonable efforts
to file such registration statement), and ending on a date ninety (90) days after the
effective date of, a registration statement with respect to an offering by the Company. Any
request for an underwritten offering hereunder shall be made to the Company in accordance
with the notice provisions of this Agreement, and the Company shall use commercially
reasonable efforts to engage an underwriter upon such request and, once engaged, the Company
shall enter into customary agreements and take such other actions as are reasonably
necessary to facilitate such underwritten offering.

     (d) Registration Term. The Company shall prepare and file such additional registration
statements as necessary and use its commercially reasonable efforts to cause such
registration statements to be declared effective by the Commission so that a shelf
registration statement remains continuously effective, subject to Section 2.11, with respect
to the Registrable Securities as and for the periods required under Section 2.1(a)

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or (b), as applicable, such subsequent registration statements to constitute a Issuer
Shelf Registration Statement or a Resale Shelf Registration Statement, as the case may be,
hereunder.

     (e) Selling Holders Are Party to Agreement. Each Holder acknowledges that by receiving
registration rights pursuant to this Agreement, such Holder is a party to this Agreement and
will be bound by its terms, notwithstanding such Holder’s failure to deliver a Notice and
Questionnaire; provided, that any Holder that has not delivered a duly completed and
executed Notice and Questionnaire shall not be entitled to be named as a Selling Holder in,
or have the Registrable Securities held by it covered by, a Resale Shelf Registration
Statement.

     Section 2.2 Reduction of Initial Offering. Notwithstanding anything contained herein, if the
managing Underwriter or Underwriters of an offering described in Section 2.1(c) advise in writing
the Company and the Holder(s) of the Registrable Securities included in such offering that the size
of the intended offering is such that the success of the offering would be materially and adversely
affected by inclusion of all the Registrable Securities requested to be included, or if a reduction
in the number of Registrable Securities included in any Resale Shelf Registration or Issuer Shelf
Registration Statement is required by the Commission staff in comments thereon, then: (i) first,
all securities proposed to be included by the Company (meaning both unissued shares of Common Stock
to be sold by the Company and any shares of Common Stock owned by any other stockholder or
stockholders of the Company to be sold by such stockholder or stockholders) pursuant to Section
2.12 shall be eliminated, and (ii) second, the amount of securities to be offered for the accounts
of Holders shall be reduced pro rata (according to the Registrable Securities requested for
inclusion) to the extent necessary to reduce the total amount of securities to be included in such
offering to the amount recommended by such managing Underwriter or Underwriters or required by the
Commission staff.

     Section 2.3 Registration Procedures; Filings; Information. Subject to Section 2.11 hereof, in
connection with any Resale Shelf Registration Statement under Section 2.1(a), the Company will use
its commercially reasonable efforts to effect the registration of the Registrable Securities
covered thereby in accordance with the intended method of disposition thereof as quickly as
practicable, and, in connection with any Issuer Shelf Registration Statement under Section 2.1(b),
the Company will use its commercially reasonable efforts to effect the registration of the Primary
Shares as quickly as reasonably practicable. In connection with any Shelf Registration Statement:

     (a) The Company will, if requested, prior to filing a Resale Shelf Registration
Statement or prospectus or any amendment or supplement thereto, furnish to each Selling
Holder and each Underwriter, if any, of the Registrable Securities covered by such
registration statement copies of such registration statement as proposed to be filed, and
thereafter furnish to such Selling Holder and Underwriter, if any, such number of conformed
copies of such registration statement, each amendment and supplement thereto (in each case
including all exhibits thereto and documents incorporated by reference therein), the
prospectus included in such registration statement (including each preliminary prospectus)
and such other documents as such Selling Holder or Underwriter may reasonably request in
order to facilitate the disposition of the Registrable Securities owned by such Selling
Holder.

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     (b) After the filing of a Resale Shelf Registration Statement, the Company will
promptly notify each Selling Holder of Registrable Securities covered by such registration
statement of any stop order issued or threatened by the Commission and take all reasonable
actions required to prevent the entry of such stop order or to remove it if entered and
promptly notify each such Selling Holder of the removal of such stop order.

     (c) The Company will use its commercially reasonable efforts to (i) register or qualify
the Registrable Securities under such other securities or “blue sky” laws of such
jurisdictions in the United States (where such registration or qualification is required in
order to sell in such jurisdiction and an exemption does not apply) as any Selling Holder or
managing Underwriter, if any, reasonably (in light of such Selling Holder’s intended plan of
distribution) requests and (ii) cause such Registrable Securities to be registered with or
qualified by such other governmental agencies or authorities as may be necessary by virtue
of the business and operations of the Company and do any and all other acts and things that
may be reasonably necessary or advisable to enable such Selling Holder to consummate the
disposition of the Registrable Securities owned by such Selling Holder; provided that the
Company will not be required to (A) qualify generally to do business in any jurisdiction
where it would not otherwise be required to qualify but for this paragraph (c), (B) subject
itself to taxation in any such jurisdiction or (C) consent to general service of process in
any such jurisdiction.

     (d) The Company will immediately notify each Selling Holder of such Registrable
Securities, at any time when a prospectus relating thereto is required to be delivered under
the Securities Act, of (i) the Company’s receipt of any notification of the suspension of
the qualification of any Registrable Securities covered by a Resale Shelf Registration
Statement for sale in any jurisdiction and will immediately notify each such Selling Holder
of the removal or lifting of any such suspension; or (ii) the occurrence of an event
requiring the preparation of a supplement or amendment to such prospectus so that, as
thereafter delivered to the purchasers of such Registrable Securities, such prospectus will
not contain an untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading and promptly make available to each
Selling Holder any such supplement or amendment.

     (e) The Company will otherwise use its commercially reasonable efforts to comply with
all applicable rules and regulations of the Commission, and make available to its
securityholders, as soon as reasonably practicable, an earnings statement covering a period
of 12 months, beginning within three months after the effective date of the registration
statement, which earnings statement shall satisfy the provisions of Section 11(a) of the
Securities Act and Rule 158 of the Commission promulgated thereunder (or any successor rule
or regulation hereafter adopted by the Commission).

     (f) The Company will use its commercially reasonable efforts to cause all Registrable
Securities covered by such Resale Shelf Registration Statement or Primary Shares covered by
such Issuer Shelf Registration Statement to be listed on the primary securities exchange on
which similar securities issued by the Company are then listed.

     (g) In addition to the Notice and Questionnaire, the Company may require each Selling
Holder of Registrable Securities to promptly furnish in writing to the

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Company such information regarding such Selling Holder, the Registrable Securities held
by it and the intended method of distribution of the Registrable Securities as the Company
may from time to time reasonably request and such other information as may be legally
required in connection with such registration. No Holder may include Registrable Securities
in any registration statement pursuant to this Agreement unless and until such Holder has
furnished to the Company such information. Each Holder further agrees to furnish as soon as
reasonably practicable to the Company all information required to be disclosed in order to
make information previously furnished to the Company in writing by such Holder and included
by the Company in the Resale Shelf Registration Statement or Issuer Shelf Registration
Statement not materially misleading.

     (h) Each Selling Holder agrees that, upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 2.3(b) or 2.3(d) or upon receipt of
a Suspension Notice, such Selling Holder will forthwith discontinue disposition of
Registrable Securities pursuant to the registration statement covering such Registrable
Securities until such Selling Holder’s receipt of written notice from the Company that such
disposition may be made and, in the case of clause (ii) of Section 2.3(d) or, if applicable,
Section 2.11, copies of any supplemented or amended prospectus contemplated by clause (ii)
of Section 2.3(d) or, if applicable, prepared under Section 2.11, and, if so directed by the
Company, such Selling Holder will deliver to the Company all copies, other than permanent
file copies then in such Selling Holder’s possession, of the most recent prospectus covering
such Registrable Securities at the time of receipt of such notice. Each Selling Holder of
Registrable Securities agrees that it will immediately notify the Company at any time when a
prospectus relating to the registration of such Registrable Securities is required to be
delivered under the Securities Act of the happening of an event as a result of which
information previously furnished by such Selling Holder to the Company in writing for
inclusion in such prospectus contains an untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances in which they were made.

     Section 2.4 Registration Expenses. In connection with any registration statement required to
be filed hereunder, the Company shall pay the following registration expenses incurred in
connection with the registration hereunder (the “Registration Expenses”): (i) all registration and
filing fees, (ii) fees and expenses of compliance with securities or “blue sky” laws (including
reasonable fees and disbursements of counsel in connection with blue sky qualifications of the
Registrable Securities), (iii) printing expenses, (iv) internal expenses (including, without
limitation, all salaries and expenses of its officers and employees performing legal or accounting
duties), (v) the fees and expenses incurred in connection with the listing of the Registrable
Securities, (vi) reasonable fees and disbursements of counsel for the Company and reasonable fees
and expenses for independent certified public accountants retained by the Company, and (vii) all
fees and expenses of any special experts retained by the Company in connection with such
registration. The Company shall have no obligation to pay any fees, discounts or commissions
attributable to the sale of Registrable Securities, or any out-of-pocket expenses of the Holders
(or the agents who manage their accounts) or any transfer taxes relating to the registration or
sale of the Registrable Securities.

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     Section 2.5 Indemnification by the Company. To the extent permitted by law, the Company will
indemnify and hold harmless each Holder, the partners, managers, officers and directors of each
Holder, and each person, if any, who controls such Holder within the meaning of the Securities Act
or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to
which they may become subject under the Securities Act, the Exchange Act or other federal or state
law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise
out of or are based upon any of the following statements, omissions or violations (collectively a
“Violation”) by the Company: (i) any untrue statement or alleged untrue statement of a material
fact contained in such registration statement, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged
omission to state therein a material fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading, or
(iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act,
any state securities law or any rule or regulation promulgated under the Securities Act, the
Exchange Act or any state securities law in connection with the offering covered by such
registration statement; and the Company will pay as incurred to each such Holder, partner, manager,
officer, director, underwriter or controlling person for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage,
liability or action; provided however, that the Company not be liable in any such case for any such
loss, claim, damage, liability or action to the extent that it arises out of or is based upon a
Violation which occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such registration by such Holder, partner, manager, officer,
director, underwriter or controlling person of such Holder.

     Section 2.6 Indemnification by Holders of Registrable Securities. Each Selling Holder agrees,
severally but not jointly, to indemnify and hold harmless the Company, its officers, directors and
agents and each Person, if any, who controls the Company within the meaning of either Section 15 of
the Securities Act or Section 20 of the Exchange Act against any Violation to the extent (and only
to the extent) that such Violation occurs in reliance upon and in conformity with written
information furnished by such Selling Holder expressly for use in connection with such
registration; provided, that in no event shall any Selling Holder’s indemnity under this Section
2.6 exceed the net proceeds from the offering actually received by such Selling Holder. In case
any action or proceeding shall be brought against the Company or its officers, directors or agents
or any such controlling person, in respect of which indemnity may be sought against such Selling
Holder, such Selling Holder shall have the rights and duties given to the Company, and the Company
or its officers, directors or agents or such controlling person shall have the rights and duties
given to such Selling Holder, by Section 2.7.

     Section 2.7 Conduct of Indemnification Proceedings. In case any proceeding (including any
governmental investigation) shall be instituted involving any person in respect of which indemnity
may be sought pursuant to Section 2.5 or 2.6, such person (an “Indemnified Party”) shall promptly
notify the person against whom such indemnity may be sought (an “Indemnifying Party”) in writing
and the Indemnifying Party shall assume the defense thereof, including the employment of counsel
reasonably satisfactory to such Indemnified Party, and shall assume the payment of all fees and
expenses; provided, however, that the failure of any Indemnified Party to give such notice will not
relieve such Indemnified Party of any obligations under Section 2.5 or 2.6, except to the extent
such Indemnified Party is materially prejudiced by such failure. In any such proceeding, any
Indemnified Party shall have the right to retain its own

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counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified
Party unless (i) the Indemnifying Party and the Indemnified Party shall have mutually agreed to the
retention of such counsel or (ii) representation of the Indemnified Party by the counsel retained
by the Indemnifying Party would be inappropriate due to actual or potential differing interests
between the Indemnified Party and the Indemnified Party. It is understood that the Indemnifying
Party shall not, in connection with any proceeding or related proceedings in the same jurisdiction,
be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in
addition to any local counsel) at any time for all such Indemnified Parties, and that all such fees
and expenses shall be reimbursed as they are incurred. In the case of any such separate firm for
the Indemnified Parties, such firm shall be designated in writing by (i) in the case of Persons
indemnified pursuant to Section 2.5 hereof, the Selling Holders that owned a majority of the
Registrable Securities sold under the applicable registration statement and (ii) in the case of
Persons indemnified pursuant to Section 2.6, the Company. The Indemnifying Party shall not be
liable for any settlement of any proceeding effected without its written consent, which consent
shall not be unreasonably withheld, but if settled with such consent, or if there be a final
judgment for the plaintiff, the Indemnifying Party shall indemnify and hold harmless such
Indemnified Parties from and against any loss or liability (to the extent stated above) by reason
of such settlement or judgment. No Indemnifying Party shall, without the prior written consent of
the Indemnified Party, which consent shall not be unreasonably withheld, effect any settlement of
any pending or threatened proceeding in respect of which any Indemnified Party is or could have
been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such
settlement includes an unconditional release of such Indemnified Party from all liability arising
out of such proceeding.

     Section 2.8 Contribution. If the indemnification provided for in Section 2.5 or 2.6 hereof is
unavailable to an Indemnified Party or insufficient in respect of any losses, claims, damages or
liabilities referred to herein, then each such Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a
result of such losses, claims, damages or liabilities in such proportion as is appropriate to
reflect the relative fault of the Company and of each Selling Holder in connection with such
statements or omissions which resulted in such losses, claims, damages or liabilities, as well as
any other relevant equitable considerations. The relative fault of the Company on the one hand and
of each Selling Holder on the other shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by such party, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission.

     The Company and the Selling Holders agree that it would not be just and equitable if
contribution pursuant to this Section 2.8 were determined by pro rata allocation or by any other
method of allocation which does not take account of the equitable considerations referred to in the
immediately preceding paragraph. The amount paid or payable by an Indemnified Party as a result of
the losses, claims, damages or liabilities referred to in the immediately preceding paragraph shall
be deemed to include, subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such Indemnified Party in connection with investigating or defending any
such action or claim. No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Selling Holder’s obligations to

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contribute pursuant to this Section 2.8 are several in proportion to the proceeds of the
offering received by such Selling Holder bears to the total proceeds of the offering received by
all the Selling Holders, and not joint, and in no event shall any Selling Holder’s contribution
obligation under this Section 2.8 exceed the net proceeds from the offering actually received by
such Selling Holder.

     Section 2.9 Rule 144. The Company covenants that it will (a) make and keep public information
regarding the Company available as those terms are defined in Rule 144, (b) file in a timely manner
any reports and documents required to be filed by it under the Exchange Act, (c) furnish to any
Holder forthwith upon request (i) a written statement by the Company as to its compliance with the
reporting requirements of Rule 144 (at any time more than 90 days after the effective date of the
registration statement for the Company’s initial public offering) and the Exchange Act (at any time
after it has become subject to such reporting requirements), and (ii) a copy of the most recent
annual or quarterly report of the Company and such other reports and documents so filed by the
Company, and (d) take such further action as any Holder may reasonably request, all to the extent
required from time to time to enable Holders to sell Registrable Securities without registration
under the Securities Act within the limitation of the exemptions provided by Rule 144.

     Section 2.10 Participation in Underwritten Offerings. No Person may participate in any
underwritten offerings hereunder unless such Person (a) agrees to sell such Person’s securities on
the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to
approve such arrangements and (b) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required under the terms of
such underwriting arrangements and the registration rights provided for in this Article II.

     Section 2.11 Suspension of Use of Registration Statement.

     (a) If the Board of Directors of the Company determines in its good faith judgment that
the filing of a Resale Shelf Registration Statement under Section 2.1(a) or the use of any
related prospectus would be materially detrimental to the Company because such action would
require the disclosure of material information that the Company has a bona fide business
purpose for preserving as confidential or the disclosure of which would materially impede
the Company’s ability to consummate a significant transaction, and that the Company is not
otherwise required by applicable securities laws or regulations to disclose, upon written
notice of such determination by the Company to the Holders which shall be signed by the
Chief Executive Officer, President or any Executive Vice President of the Company certifying
thereto, the rights of the Holders to offer, sell or distribute any Registrable Securities
pursuant to a Resale Shelf Registration or to require the Company to take action with
respect to the registration or sale of any Registrable Securities pursuant to a Resale Shelf
Registration Statement shall be suspended until the earliest of (i) the date upon which the
Company notifies the Holders in writing that suspension of such rights for the grounds set
forth in this Section 2.11(a) is no longer necessary and they may resume use of the
applicable prospectus, (ii) the date upon which copies of the applicable supplemented or
amended prospectus is distributed to the Holders, and (iii) (x) up to 60 consecutive days
after the notice to the Holders if that notice is given during the Initial Period or (y) 90
consecutive days after the notice to the Holders if that notice is given after the Initial
Period;

11

 

provided, that the Company shall not be entitled to exercise any such right more than
two (2) times in any twelve month period or less than 30 days from the termination of the
prior such suspension period. The Company agrees to give the notice under (i) above as
promptly as practicable following the date that such suspension of rights is no longer
necessary.

     (b) If all reports required to be filed by the Company pursuant to the Exchange Act
have not been filed by the required date without regard to any extension, or if the
consummation of any business combination by the Company has occurred or is probable for
purposes of Rule 3-05 or Article 11 of Regulation S-X promulgated under the Securities Act
or any similar successor rule, upon written notice thereof by the Company to the Holders,
the rights of the Holders to offer, sell or distribute any Registrable Securities pursuant
to a Resale Shelf Registration Statement or to require the Company to take action with
respect to the registration or sale of any Registrable Securities pursuant to a Resale Shelf
Registration Statement shall be suspended until the date on which the Company has filed such
reports or obtained and filed the financial information required by Rule 3-05 or Article 11
of Regulation S-X to be included or incorporated by reference, as applicable, in a Resale
Shelf Registration Statement, and the Company shall notify the Holders as promptly as
practicable when such suspension is no longer required.

     Section 2.12 Additional Shares. The Company, at its option, and subject to Section 2.2 above,
may register under a Shelf Registration Statement and any filings with any state securities
commissions filed pursuant to this Agreement, any number of unissued shares of Common Stock or any
shares of Common Stock owned by any other stockholder or stockholders of the Company.

     Section 2.13 Survival. The obligations of the Company and Holders under Sections 2.5 through
2.8 inclusive shall survive completion of any offering of Registrable Securities in a registration
statement and the termination of this agreement. No Indemnifying Party, in the defense of any such
claim or litigation, shall, except with the consent of each Indemnified Party which consent shall
not be unreasonably withheld, consent to entry of any judgment or enter into any settlement which
does not include as an unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to such claim or litigation.

ARTICLE III

MISCELLANEOUS

     Section 3.1 Remedies. In addition to being entitled to exercise all rights provided herein
and granted by law, including recovery of damages, the Holders shall be entitled to specific
performance of the rights under this Agreement. The Company agrees that monetary damages may not
be adequate compensation for any loss incurred by reason of a breach by it of the provisions of
this Agreement and hereby agrees to waive the defense in any action for specific performance that a
remedy at law would be adequate.

     Section 3.2 Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given, in each case without the

12

 

written consent of the Company and the Holders of a two-thirds of the Registrable Securities
(with Holders of Exchangeable OP Units deemed to be Holders, for purposes of this Section, of the
number of shares of Common Stock into which such Exchangeable OP Units would be exchangeable for as
of the date on which consent is requested); provided, however, that the effect of any such
amendment will be that the consenting Holders will not be treated more favorably than all other
Holders (without regard to any differences in effect that such amendment or waiver may have on the
Holders due to the differing amounts of Registrable Shares held by such Holders). No failure or
delay by any party to insist upon the strict performance of any covenant, duty, agreement or
condition of this Agreement or to exercise any right or remedy consequent upon any breach thereof
shall constitute waiver of any such breach or any other covenant, duty, agreement or condition.

     Section 3.3 Notices. All notices and other communications in connection with this Agreement
shall be made in writing by hand delivery, registered first-class mail, fax, air courier
guaranteeing overnight delivery, or e-mail:

     (1) if to any Holder, initially to the address indicated in such Holder’s Notice and
Questionnaire or, if no Notice and Questionnaire has been delivered, c/o Welsh Property
Trust, Inc., 4350 Baker Road, Suite 400, Minnetonka, MN 55343, Attention: Chief Executive
Officer, or to such other address and to such other Persons as any Holder may hereafter
specify in writing; and

     (2) if to the Company, initially at 4350 Baker Road, Suite 400, Minnetonka, MN 55343,
Attention: Chief Executive Officer, or to such other address as the Company may hereafter
specify in writing.

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; when received if deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if faxed; when sent, unless a ‘bounce-back’ notice
is received in response, if e-mailed; and on the next Business Day, if timely delivered to an air
courier guaranteeing overnight delivery.

     Section 3.4 Successors and Assigns; Assignment of Registration Rights. This Agreement shall
inure to the benefit of and be binding upon the successors, assigns and transferees of each of the
parties. Any Holder may assign its rights under this Agreement without the consent of the Company
in connection with a transfer of such Holder’s Registrable Securities; provided, that the Holder
notifies the Company of such proposed transfer and assignment and the transferee or assignee of
such rights assumes in writing the obligations of such Holder under this Agreement.

     Section 3.5 Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement. Each
party shall become bound by this Agreement immediately upon affixing its signature hereto.

     Section 3.6 Governing Law; Jurisdiction. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Delaware. The Company hereby (i) submits to the
non-exclusive jurisdiction of any Delaware state court or federal court sitting in Wilmington,
Delaware, with respect to any dispute arising out of this Agreement or any transaction contemplated
hereby to the extent such courts would have subject matter jurisdiction with respect to such
dispute, (ii) irrevocably waives, and agrees not to assert by way of motion, defense, or otherwise,
in any such action, any claim that it is not subject personally to the jurisdiction of the
above-named courts, that its property is exempt or immune from attachment or execution, that the
action is brought in an inconvenient forum, or that the venue of the action is improper, and (iii)
waives personal service of the summons, complaint and other process issued in any such action and
agrees that service of such summons, complaint and other process may be made in accordance with
Section 3.3 of this Agreement.

13

 

     Section 3.7 Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

     Section 3.8 Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. There are
no promises, warranties or undertakings, other than those set forth or referred to herein, with
respect to the registration rights granted by the Company with respect to the Registrable
Securities. This Agreement supersedes all prior agreements and understandings between the parties
with respect to such subject matter.

     Section 3.9 Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

     Section 3.10 Termination. The obligations of the parties hereunder shall terminate with
respect to a Holder when it no longer holds Registrable Securities and with respect to the Company
upon the end of the Effectiveness Period with respect to any Issuer Shelf Registration Statement
meeting the requirements of this Agreement and with respect to Resale Shelf Registration Statement
when there are no longer Registrable Securities with respect to a Resale Shelf Registration
Statement, except, in each case, for any obligations under Sections 2.1(d), 2.4, 2.5, 2.6, 2.7, 2.8
and Article III.

14

 

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

	 	 	 	 	 
	 	WELSH PROPERTY TRUST, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	HOLDERS LISTED ON SCHEDULE I HERETO

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 

  	 
	 	 	
As Attorney-in-Fact acting on behalf of each

of the Holders named on Schedule I hereto

15

 

Schedule I

[LIST OF HOLDERS]

 

 

Exhibit A

Form of Notice and Questionnaire

WELSH PROPERTY TRUST, INC.

Selling Securityholder Notice and Questionnaire

     The undersigned beneficial owner of common stock (the “Common Stock”) of Welsh Property Trust,
Inc. (the “Company”) understands that the Company has filed or intends to file with the Securities
and Exchange Commission (the “Commission”) a registration statement (the “Registration Statement”)
for the registration and resale of the Registrable Securities in accordance with the terms of the
Registration Rights Agreement, dated as of [       ], 20___ (the “Registration Rights Agreement”),
among the Company and the Initial Holders named therein. A copy of the Registration Rights
Agreement is available from the Company upon request at the address set forth below. All
capitalized terms used and not otherwise defined herein shall have the meanings ascribed thereto in
the Registration Rights Agreement.

     The undersigned hereby provides the following information to the Company and represents and
warrants that such information is accurate:

QUESTIONNAIRE

	1.	 	Name.

	 	(a)	 	Full Legal Name of Selling Securityholder

	 
	 	 	 	 

	 
	 	(b)	 	Full Legal Name of Registered Holder (if not the same as (a) above) through
which Registrable Securities Listed in Item 3 below are held:

	 
	 	 	 	 

	 
	 	(c)	 	Full Legal Name of Control Person or Persons (which means a person who directly
or indirectly, alone or with others, has power to vote or dispose of the securities
covered by this Notice and Questionnaire):

	 
	 	 	 	 

	2.	 	Address for Notices to Selling Securityholder:

	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	Telephone:                                                             
	 
	 	 	 	Fax:                                                             

 

 

	 	 	 	Contact Person:                                                             
	 
	 	 	 	Email:                                                             

	3.	 	Beneficial Ownership of Registrable Securities:

	 	(a)	 	Type and Number of Registrable Securities beneficially owned:

	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	4.	 	Broker-Dealer Status and Distribution Arrangements:

	 	(a)	 	Are you a broker-dealer?

Yes o           No o

	 	Note:	 	 If yes, the Commission’s staff has indicated that you should be identified as
an underwriter in the Registration Statement.
	 
	 	(b)	 	Are you an affiliate of a broker-dealer?

Yes o           No o

	 	(c)	 	If you are an affiliate of a broker-dealer, do you certify that you bought the
Registrable Securities in the ordinary course of business, and at the time of the
purchase of the Registrable Securities to be resold, you had no agreements or
understandings, directly or indirectly, with any person to distribute the Registrable
Securities?

Yes o           No o

	 	Note:	 	 If no, the Commission’s staff has indicated that you should be identified as
an underwriter in the Registration Statement.
	 
	 	(d)	 	If you, at the time of your purchase of the Registrable Securities, have any
agreements or understandings, directly or indirectly, with any person to distribute the
Registrable Securities, please describe such agreements or understandings.

	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	5.	 	Beneficial Ownership of Other Securities of the Company Owned by the Selling Securityholder.
	 
	 	 	Except as set forth below in this Item 5, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable Securities
listed above in Item 3.

 

 

	 	(a)	 	Type and Amount of Other Securities beneficially owned by the Selling
Securityholder:

	 
	 	 	 	 

	 
	 	 	 	 

	6.	 	Relationships with the Company:
	 
	 	 	Except as set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% of more of the equity securities of the
undersigned) has held any position or office or has had any other material relationship with
the Company (or its predecessors or affiliates) during the past three years.

	 
	 	 	State any exceptions here:

	 
	 	 	 

	 
	 	 	 

	 
	7.	 	General:
	 
	 	 	If there is any additional information necessary to make the answers that you have given
above not misleading in light of the circumstances under which such answers were given,
please provide such information.

	 
	 	 	 

	 
	 	 	 

The undersigned agrees to promptly notify the Company of any inaccuracies or changes in the
information provided herein that may occur subsequent to the date hereof.

By signing below, the undersigned consents to the disclosure of the information contained herein in
its answers to Items 1 through 6 and the inclusion of such information in the Registration
Statement and the related prospectus. The undersigned understands that such information will be
relied upon by the Company in connection with the preparation or amendment of the Registration
Statement and the related prospectus.

IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and
Questionnaire to be executed and delivered either in person or by its duly authorized agent.

	 	 	 	 	 
	Dated:                                                              	Beneficial Owner:                                                             

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL
BY OVERNIGHT MAIL, TO:

[                      ]exv10w4

EXHIBIT 10.4

WELSH PROPERTY TRUST, INC.

RESTRICTED
STOCK UNIT AWARD AGREEMENT

          RESTRICTED
STOCK UNIT AWARD AGREEMENT dated as of
                    , 2010, between Welsh Property Trust,
Inc., a Maryland corporation (“Welsh”) and Scott T.
Frederiksen, an employee (the “Employee” or
“Participant”) of Welsh, its subsidiaries, divisions, and affiliated businesses (the “Company”).

     WHEREAS, the Participant is employed by the Company pursuant to an
Executive Employment Agreement between Participant and the Company
dated                     , 2010;

     WHEREAS, Welsh’s Board of Directors, (the “Board”) has established the Welsh
Property Trust, Inc. Long-Term Equity Incentive Plan (the “Plan”);

     WHEREAS, the Board’s Compensation Committee (the “Committee”), in
accordance with the provisions of the Plan, has determined that the Employee
is entitled to a Restricted Stock Unit Award under the Plan;

     NOW, THEREFORE, in consideration of the foregoing and the Employee’s
acceptance of the terms and conditions hereof, the parties hereto have
agreed, and do hereby agree, as follows:

     1. Welsh hereby grants to the Employee, as a matter of separate agreement and not
in lieu of salary or any other compensation for services,                      Restricted Stock Units on
the terms and conditions herein set forth (the “Restricted Stock
Units”). The Restricted Stock Units may be settled in cash,
Company Common Stock on a one-for-one basis, or a combination of cash
and Company Common Stock.

     2. If and to the extent the Performance Measures established by the
Committee have been satisfied and if the Participant shall have been continuously in the
employment of the Company from the date of grant of this Restricted Stock Unit Award until
December 31, 2012 (the “Restriction Period”), Welsh shall, deliver to the Participant on or
about February 15, 2013, either (a) a lump sum cash payment equal to the product of the number of
vested Restricted Stock Units awarded under this Agreement multiplied by the fair market value
of Welsh’s Common Stock on December 31, 2012, or if such date is not a trading day at
the New York Stock Exchange then the first trading day immediately following December 31,
2012, or (b) shares of the Company’s Common Stock calculated on a one-for-one basis in relation to the number of vested Restricted Stock Units. No payment shall be required
from the Participant in connection with any delivery to the Participant of shares
hereunder. In addition, a
dividend equivalent computed from the first dividend paid following the date
of this Agreement through the last dividend paid prior to
December 31, 2012 shall be paid on the
number of vested Restricted Stock Units in one of the manners and on the date described above.

     3. The Participant shall have no right under this Agreement to vote on shares of
Common Stock of the Company otherwise payable under the terms of this Agreement.

 

 

     4. In the event of the termination of the Participant’s employment
with the Company by reason of the death of the Participant, and if there then
remain any Restricted Stock Units subject to restrictions hereunder, then such
restrictions shall be deemed to have lapsed and either (a) a
lump sum cash
payment or (b) certificates of Common Stock, either as calculated in
accordance with Section 2, for the remaining Restricted Stock Units shall be
delivered to the Participant (or the legatees under the last will of the Participant, or to
the personal representatives
or distributees of the Participant’s estate) on the 30th day following the
Participant’s death. In addition, a dividend equivalent computed from the first dividend paid
following the date of this
Agreement through the last dividend paid prior to the Participant’s death
shall be paid on the number of vested Restricted Stock Units in one of the manners and on the date
described above.

     5. In the event of the termination of the Participant’s employment with the Company
by reason of disability of the Participant, and if there then remain any
undelivered Restricted Stock Units subject to restrictions hereunder, such restrictions shall be
deemed to have lapsed and either a lump sum cash payments or certificates of Common Stock for
the remaining Restricted Stock Units shall be delivered to the Participant on the 30th
day following the Participant’s termination of employment. In addition, a dividend
equivalent computed from the first dividend paid following the date of this Agreement through the last
dividend paid prior to the Participant’s termination of
employment shall be paid on the number of
vested Restricted Stock Units in one of the manners and on the date described above.

     6. In the event of the involuntary termination of the
Participant’s employment by the Company without Cause or by the Participant
for Good Reason. (with “Cause” and “Good Reason” having their
respective meanings as set forth in the Employment Agreement), and if there
then remain any Restricted Stock Units subject to restrictions hereunder,
then all restrictions shall be deemed to have lapsed and a lump sum cash
payment or certificates of Common Stock for the remaining Restricted Stock
Units shall be delivered to the Participant on the 30th day following
the Participant’s termination of employment. In addition, a dividend
equivalent computed from the first dividend paid following the date of this
Agreement through the last dividend paid prior to the Participant’s termination
of employment shall be paid on the number of vested Restricted Stock Units in one of the
manners and on the date described above.

     7. Except as provided in Sections 4, 5 and 6, or in accordance
with the terms of the Plan, if the Participant ceases to be an employee
of the Company during the Restriction Period, then the Restricted Stock
Units to which the Participant has not theretofore become entitled pursuant to
Section 3 shall be forfeited, and all rights of the Participant in and to
such Restricted Stock Units shall lapse. In addition, no dividend equivalents
shall be paid.

     8. The
granting of this Restricted Stock Unit shall not in any way prohibit
or restrict the right of the Company to terminate the Participant’s employment
at any time, for any reason.

     9. For purposes of this Agreement, the term termination of
employment shall mean separation from service within the meaning of Section
409A of the Internal Revenue Code of 1986, as amended (“Section 409A”). The Agreement
shall be construed in accordance with Section 409A (or such
applicable exceptions from coverage thereunder).

     10. This Agreement and each and every obligation of Welsh
relating to the Restricted Stock Unit Award hereunder are subject to the
requirement that if at any time Welsh shall determine, upon advice of
counsel, that the listing, registration or qualification of the
shares covered hereby upon any securities exchange or under any state or
Federal law, or the consent or approval of any governmental regulatory
body, is necessary or desirable as a condition of or in connection with the granting
hereof or the delivery of shares hereunder, then the delivery of
shares hereunder to the Participant may be postponed until such
listing, registration, qualification, consent or approval shall have been effected or obtained free
of any conditions not acceptable to Welsh.

     11. Any payment required under this Agreement shall be subject to all requirements
of the law with regard to income and employment withholding taxes, filings, and making of
reports, and the Company and the Participant shall use their best
efforts to satisfy promptly all such requirements, as applicable. Welsh may defer making any
delivery of Restricted Stock Units under this Agreement until completion of arrangements
satisfactory to the Company for the payment of any applicable taxes, whether through share withholding
provided for by the Plan or otherwise.

2

 

     12. In the event of a “change in control,” as that term is defined in the Plan, then the
Participant shall have all the rights specified in Paragraph 10(a) of the Plan, which shall include
the immediate lapsing of all restrictions on the Restricted Stock Units
and either payment of a lump sum cash payment or the delivery to the Participant of
certificates of Common Stock for the Restricted Stock Units.

     13. Each capitalized word used in this Agreement without definition shall have the
same meaning set forth in the Plan, the terms and conditions of which shall constitute an integral
and enforceable part hereof.

     14. Any notice which either party hereto may be required or permitted to give the
other shall be in writing and may be delivered personally or by mail, postage
prepaid, addressed to the Treasurer of Welsh at its principal office and to the Participant at his
address as shown on the Company’s payroll records, or to such other address as the Participant by notice to the
Company may designate in writing from time to time.

     15. Nothing herein contained shall confer on the Participant any right to continue in
the employment of the Company or interfere in any way with the right of the
Company to terminate the Participant’s employment at any time; affect
the Participant’s right to participate in and receive benefits
under and in accordance with the provisions of any pension,
profit-sharing, insurance, or other employee benefit plan or program of the Company; or limit
or otherwise affect the right of the Board (subject to any required approval by the
shareholders) at any time or from time to time to alter, amend, suspend or discontinue the Plan and the
rules for its administration; provided, however, that no termination or amendment of the
Plan may, without the consent of the Participant, adversely affect the Participant’s rights
under the Restricted Stock Units.

     16. With
respect to this Agreement, (i) the Restricted Stock Units are
bookkeeping entries, (ii) the obligations of the Company under
the Plan are unsecured and constitute a commitment by the Company to
make benefit payments in the future, (iii) to the extent that
any person acquires a right to receive payments from the Company
under the Plan, such right shall be no greater than the right of any
general unsecured creditor of the Company, (iv) all payments
under the Plan (including distributions of shares of Common Stock)
shall be paid from the general funds of the Company and (v) no
special or separate fund shall be established or other segregation of
assets made to assure such payments (except that the Company may in
its discretion establish a bookkeeping reserve to meet its
obligations under the Plan). The award of this Restricted Stock Unit
is intended to be an arrangement that is unfunded for tax purposes
and for purposes of Title I of the Employee Retirement Income
Security Act of 1974, as amended.

	 	 	 	 	 	 	 	 	 

	 	 	 	 	WELSH PROPERTY TRUST, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	ACCEPTED:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Scott T.
Frederiksen

	 	 	 	 	 	 	 	 

3

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