Description of Compensation for Non-Employee Trustees of Liberty Property Trust
This document outlines the compensation structure for trustees of Liberty Property Trust who are not also officers or full-time employees. For fiscal year 2005 and beyond, non-employee trustees receive annual fees in cash and restricted shares, additional retainers for committee chairs, and fees for attending meetings. Trustees are also reimbursed for travel and lodging expenses related to board duties. Each year, non-employee trustees are granted options to purchase company shares, which vest over three years. The compensation terms remain in effect until changed by the Board of Trustees.
Exhibit 10.1
Description of Compensation of Non-Employee Trustees
Each trustees who is not also an officer and full-time employee of Liberty Property Trust (the “Company”) will receive for fiscal year 2005 and thereafter, until changed by the Board of Trustees, fees for service on the Company’s Board of Trustees as listed in the table below. The members of the Board of Trustees are also eligible for reimbursement for travel and lodging expenses incurred in connection with attendance at Board and committee meetings in accordance with Company policy.
| Board Membership Fees Payable to Non-Employee Trustees | ||||
Annual Trustee Fee (cash) | $ | 21,500 | ||
Annual Trustee Fee (restricted shares) | $ | 34,500 | ||
Audit Committee Chair Annual Retainer | $ | 10,000 | ||
Compensation Committee Chair Annual Retainer | $ | 6,000 | ||
Corporate Governance and Nominating Committee Chair Annual Retainer | $ | 6,000 | ||
Fee for Service on Committee | $ | 1,000 | ||
Trustee Meeting Fee (in person) | $ | 1,500 | ||
Trustee Meeting Fee (telephonic re: routine matters) | $ | 500 | ||
Trustee Informational Teleconference Fee | $ | 500 | ||
Committee Meeting Fee (in person) | $ | 1,000 | ||
Committee Meeting Fee (telephonic) | $ | 500 |
All non-employee trustees will also be granted, each year, an option to purchase an additional 5,000 of the Company’s common shares of beneficial interest at an exercise price equal to the fair market value of the common shares on June 24 of such year. These options vest over a three-year period beginning with the date of grant as follows: 20% after the first year; 50% after two years; and 100% after three years.
