Document:

exv10w5

 

Exhibit 10.5

BRANDYWINE REALTY TRUST

AMENDED AND RESTATED 1997 LONG-TERM INCENTIVE PLAN

(As amended effective May 9, 2007)

     SECTION 1. Purpose; Definitions. The purpose of the Brandywine Realty Trust 1997 Long-Term
Incentive Plan (the “Plan”) is to offer to certain employees and trustees of Brandywine Realty
Trust (the “Company”), organized as a Maryland real estate investment trust, and its subsidiaries,
equity interests in the Company, options to acquire equity interests in the Company, and other
performance-based incentive awards, thereby attracting, retaining and motivating such persons, and
strengthening the mutuality of interests between such persons and the Company’s shareholders. The
Plan was originally adopted effective May 12, 1997 and has previously been amended with shareholder
approval effective May 15, 1998 and May 2, 2005.

     The Board of Trustees has amended and restated the Plan, effective May 9, 2007, subject to the
approval of the Company’s shareholders at the Annual Meeting of Shareholders to be held May 9,
2007, to reflect the merger of the Prentiss Properties Trust 2005 Share Incentive Plan (the
“Prentiss Plan”) with and into the Plan, effective May 9, 2007. Shares reserved for issuance under
incentive awards granted under the Prentiss Plan before May 9, 2007 shall be issued in accordance
with the terms of such incentive award and the Prentiss Plan as in effect immediately before May 9,
2007, provided that if a participant’s right to issuance of Shares under the Prentiss Plan lapses,
expires or is forfeited, such Shares shall be available for issuance under this Plan in accordance
with the terms and conditions hereof. Shares reserved for issuance under the Prentiss Plan that are
not reserved for issuance under incentive awards granted under the Prentiss Plan as of May 9, 2007
shall be available for issuance pursuant to awards under this Plan in accordance with the terms and
conditions hereof.

     For purposes of the Plan, the following initially capitalized words and phrases shall be
defined as set forth below, unless the context clearly requires a different meaning:

     a. “Affiliate” means, with respect to a person or entity, a person that directly or
indirectly controls, or is controlled by, or is under common control with such person or
entity.

     b. “Board” means the Board of Trustees of the Company, as constituted from time to time.

     c. “Cause” occurs when the Participant, as determined by the Board:

     (i) has engaged in any type of disloyalty to the Company, including without
limitation, fraud, embezzlement, theft, or dishonesty in the course of his employment or
engagement, or has otherwise breached any fiduciary duty owed to the Company;

     (ii) has been convicted of a felony;

     (iii) has disclosed trade secrets or confidential information of the Company; or

     (iv) has breached any agreement with or duty to the Company in respect of
confidentiality, non-disclosure, non-competition or otherwise.

     d. “Change of Control” means:

     (i) the acquisition in one or more transactions by any “Person” (as the term person
is used for purposes of Sections 13(d) or 14(d) of the Exchange Act) of “Beneficial
ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
twenty-five percent (25%) or more of the combined voting power of the Company’s then
outstanding voting securities (the “Voting Securities”), provided that for purposes of
this clause (i) Voting Securities acquired directly from the Company by any Person shall
be excluded from the determination of such Person’s Beneficial ownership of Voting
Securities (but such Voting Securities shall be included in the calculation of the total
number of Voting Securities then outstanding); or

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     (ii) approval by shareholders of the Company of:

     (A) a merger, reorganization or consolidation involving the Company if the
shareholders of the Company immediately before such merger, reorganization or
consolidation do not or will not own directly or indirectly immediately following
such merger, reorganization or consolidation, more than fifty percent (50%) of
the combined voting power of the outstanding voting securities of the company
resulting from or surviving such merger, reorganization or consolidation in
substantially the same proportion as their ownership of the Voting Securities
outstanding immediately before such merger, reorganization or consolidation; or

     (B) a complete liquidation or dissolution of the Company; or

     (C) an agreement for the sale or other disposition of all or substantially
all of the assets of the Company; or

     (iii) acceptance by shareholders of the Company of shares in a share exchange if
the shareholders of the Company immediately before such share exchange do not or will
not own directly or indirectly immediately following such share exchange more than fifty
percent (50%) of the combined voting power of the outstanding voting securities of the
entity resulting from or surviving such share exchange in substantially the same
proportion as their ownership of the Voting Securities outstanding immediately before
such share exchange; or

     (iv) a change in the composition of the Board over a period of twenty four (24)
months or less such that a majority of the Board members ceases to be comprised of
individuals who either: (i) have been board members continuously since the beginning of
such period; or (ii) have been elected or nominated for election as Board members during
such period by at least a majority of the Board members described in clause (i) who were
still in office at the time such election or nomination was approved by the Board.

     e. “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any
successor thereto.

     f. “Committee” means the Committee appointed by the Board in accordance with Section 2 of
the Plan, if one is appointed, in which event in connection with this Plan, the Committee
shall possess all of the power and authority of, and shall be authorized to take any and all
actions required to be taken hereunder by, and make any and all determinations required to be
taken hereunder by, the Board.

     g. “Disability” means a disability of an employee or a trustee which renders such
employee or trustee unable to perform the full extent of his duties and responsibilities by
reason of his illness or incapacity which would entitle that employee or trustee to receive
Social Security Disability Income under the Social Security Act, as amended, and the
regulations promulgated thereunder. “Disabled” shall mean having a Disability. The
determination of whether a Participant is Disabled shall be made by the Board, whose
determination shall be conclusive; provided that,

     (i) if a Participant is bound by the terms of an employment agreement between the
Participant and the Company, whether the Participant is “Disabled” for purposes of the
Plan shall be determined in accordance with the procedures set forth in said employment
agreement, if such procedures are therein provided; and

     (ii) a Participant bound by such an employment agreement shall not be determined to
be Disabled under the Plan any earlier than he would be determined to be disabled under
his employment agreement.

     h. “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     i. “Fair Market Value” means, as of any date: (i) the closing price of the Shares as
reported on the principal nationally recognized stock exchange on which the Shares are traded
on such date, or if no Share prices are reported on such date, the closing price of the Shares
on the next preceding date on which there

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were reported Share prices; or (ii) if the Shares are not listed or admitted to unlisted
trading privileges on a nationally recognized stock exchange, the closing price of the Shares
as reported by The NASDAQ Market on such date, or if no Share prices are reported on such
date, the closing price of the Shares on the next preceding date on which there were reported
Share prices; or (3) if the Shares are not listed or admitted to unlisted trading privileges
on a nationally recognized stock exchange or traded on The NASDAQ Market, then the Fair Market
Value shall be determined by the Board acting in its discretion, which determination shall be
conclusive.

     j. “Incentive Stock Option” means any Option intended to be and designated as an
“Incentive Stock Option” within the meaning of Section 422 of the Code.

     k. “Long-Term Performance Award” or “Long-Term Award” means an award made pursuant to
Section 8 hereof that is payable in cash and/or Shares (including Restricted Shares,
Performance Shares and Performance Units) in accordance with the terms of the grant, based on
Company, business unit and/or individual performance, in each case as determined by the
Committee and as set forth in the grant letter.

     l. “Non-Employee Trustee” shall have the meaning set forth in Rule 16b-3(b)(3)
promulgated by the Securities and Exchange Commission under the Exchange Act, or any successor
definition adopted by the Securities and Exchange Commission (substituting the word “trustee”
for “director”); provided, however, that the Board or the Committee may, in its sole
discretion, substitute the definition of “outside director” provided in the regulations under
Section 162(m) of the Code in place of the definition of Non-Employee Director contained in
the Exchange Act.

     m. “Non-Qualified Stock Option” means any Option that is not an Incentive Stock Option.

     n. “Participant” means an employee or trustee of the Company or a Subsidiary to whom an
award is granted pursuant to the Plan or a corporation, limited liability company, limited
partnership or other entity owned directly and indirectly by one or more employees or trustees
of the Company or a Subsidiary to whom an award is granted pursuant to the Plan.

     o. “Performance Share” means an award made pursuant to Section 9 hereof of the right to
receive Shares at the end of a specified performance period.

     p. “Performance Unit” means an award made pursuant to Section 10 hereof of the right to
receive cash at the end of a specified performance period.

     q. “Restricted Shares” means an award of Shares that is subject to restrictions pursuant
to Section 7 hereof.

     r. “Retirement” means termination of the employment of a Participant with the Company, an
Affiliate (including parent) or a Subsidiary other than (i) a termination effected at the
direction of the Company or parent (whether or not the Company effects such termination for
Cause), (ii) termination on account of Disability, or (iii) termination on account of death.
With respect to a trustee who is not also an employee of the Company, Retirement shall occur
at such time as the individual ceases to be a trustee.

     s. “Rules” means Section 16 of the Exchange Act and the regulations promulgated
thereunder.

     t. “SAR” means a share appreciation right granted under the Plan and described in Section
6 hereof.

     u. “Securities Broker” means a registered securities broker acceptable to the Company who
agrees to effect the cashless exercise of an Option pursuant to Section 5(k) hereof.

     v. “Share” means a common share of beneficial interest, $.01 par value per share, of the
Company, subject to substitution or adjustment as provided in Section 3(c) hereof.

     w. “Stock Option” or “Option” means any option to purchase Shares (including Restricted
Shares, if the Committee so determines) granted pursuant to Section 5 hereof.

     x. “Subsidiary” means, in respect of the Company or parent, a subsidiary company, whether
now or hereafter existing, as defined in Sections 424(f) and (g) of the Code, and any other
entity 50% or more of the economic interests in which are owned, directly or indirectly, by
the Company.

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     y. “Trustee” means a member of the Board.

     SECTION 2. Administration. The Plan shall be administered by the Board. The Board may at any
time by a unanimous vote, with each member voting, appoint a Committee consisting of not less than
two Trustees to administer the Plan on behalf of the Board, subject to such terms and conditions as
the Board may prescribe, provided that each Committee member shall be a Non-Employee Trustee.
Members of the Committee shall serve for such period of time as the Board may determine. Members of
the Board or the Committee who are eligible for awards or have been granted awards may vote on any
matters affecting the administration of the Plan or any awards pursuant to the Plan.

     If a Committee is appointed, all references to actions to be taken by the Board in the
administration of the Plan shall be construed as references to the Committee.

     From time to time the Board may increase the size of the Committee and appoint additional
members thereto (provided such new members are Non-Employee Trustees), remove members (with or
without Cause) and appoint new members in substitution therefor, fill vacancies however caused, or
remove all members of the Committee and thereafter directly administer the Plan.

     The Board shall have full authority to grant to eligible persons under Section 4: (i) Options,
(ii) SARs, (iii) Restricted Shares, (iv) Long-Term Performance Awards, (v) Performance Shares
and/or (vi) Performance Units. In particular, the Board shall have the authority:

     a. to select the persons to whom Options, SARs, Restricted Shares, Long-Term Performance
Awards, Performance Shares and Performance Units may from time to time be granted hereunder;

     b. to determine whether and to what extent Incentive Stock Options, Non-Qualified Stock
Options, SARs, Restricted Shares, Long-Term Performance Awards, Performance Shares and
Performance Units, or any combination thereof, are to be granted hereunder;

     c. to determine the number of Shares, if any, to be covered by each such award granted
hereunder;

     d. to determine the terms and conditions, not inconsistent with the terms of the Plan, of
any award granted hereunder, including, but not limited to, the Share price and any
restriction or limitation, any vesting provisions, or any vesting acceleration or forfeiture
waiver regarding any Option or other award and/or the Shares relating thereto, or the length
of the period following termination of employment of any Participant during which any Option
or SAR may be exercised (which, in the case of an Incentive Stock Option, shall be no longer
than one year in the case of the termination of employment of a Participant by reason of death
or Disability, or three months in the case of the termination of employment of a Participant
for any reason other than death or Disability), based on such factors as the Board shall
determine, in its sole discretion;

     e. to determine whether and under what circumstances an Option may be exercised without a
payment of cash under Section 5(k); and

     f. to determine whether, to what extent and under what circumstances Shares and other
amounts payable with respect to an award under the Plan may be deferred either automatically
or at the election of the Participant; and

     g. to make such arrangements with a Subsidiary for awards to be made to a Participant by
such Subsidiary and for the transfer of Shares to such Subsidiary for the purpose of delivery
to such Participant, as the Board may deem necessary or appropriate to further the purposes of
the Plan.

     The Board shall have the authority to adopt, alter and repeal such administrative rules,
guidelines and practices governing the Plan as it shall, from time to time, deem advisable; to
interpret the terms and provisions of the Plan and any award issued under the Plan (and any
agreements relating thereto); to amend the terms of any agreement relating to any award issued
under the Plan, provided that the Participant consents to such

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amendment; and to otherwise supervise the administration of the Plan. The Board may correct
any defect, supply any omission or reconcile any inconsistency in the Plan or in any award granted
in the manner and to the extent it shall deem necessary to carry out the intent of the Plan.

     All decisions made by the Board pursuant to the provisions of the Plan shall be final and
binding on all persons, including the Company and Participants. No member of the Board shall be
liable for any good faith determination, act or failure to act in connection with the Plan or any
award made under the Plan.

     SECTION 3. Shares Subject to the Plan.

     a. Shares Subject to the Plan. The Shares to be subject or related to awards under the
Plan shall be authorized and unissued Shares of the Company or Shares previously issued and
subsequently acquired by or on behalf of the Company. The maximum number of Shares available
for awards under the Plan is 8,399,552 (provided that 164,717 of such Shares are available
only if and to the extent that a participant’s right to issuance of Shares under the Prentiss
Plan lapses, expires or is forfeited) . All of such Shares shall be available for
Non-Qualified Stock Options, Incentive Stock Options, Restricted Shares, SARS, Long-Term
Performance Awards and/or Performance Shares, except that 500,000 of such Shares shall be
available solely for Non-Qualified Stock Options, Incentive Stock Options and SARS that meet
the Specified Limitation described below in this Section 3(a) (such 500,000 Shares referred to
in the preceding clause being hereinafter referred to as the “Restricted Pool”). The Company
may reserve for the purposes of the Plan the maximum number of Shares available for award
under the Plan. If and to the extent that an SAR, Long-Term Performance Award or Performance
Unit is settled in cash or payable solely in cash, such award shall not reduce the number of
Shares subject to the Plan. No individual shall be granted, over the term of the Plan, Options
or SARs exercisable for more than an aggregate of 4,500,000 Shares. In order for a
Non-Qualified Stock Option or Incentive Stock Option to meet the Specified Limitation, it must
have an exercise price per Share purchasable under the Option of not less than 100% of the
Fair Market Value of the Share on the date of the grant, and in order for an SAR to meet the
Specified Limitation, it must entitle the recipient to receive, upon exercise thereof, the
excess of the Fair Market Value of the Share covered by the SAR on the date of exercise over
the Fair Market Value of a Share on the date of the grant.

     b. Effect of the Expiration or Termination of Awards. If and to the extent that an award
made under the Plan expires, terminates or is canceled or forfeited for any reason, the number
of Shares associated with the expired, terminated, canceled or forfeited portion of the award
shall again become available for award under the Plan.

     c. Other Adjustment. In the event of any merger, reorganization, consolidation,
recapitalization, Share distribution or dividend, Share split or combination, or other change
in entity structure affecting the Shares, such substitution or adjustment shall be made in the
aggregate number, type and issuer of the securities reserved for issuance under the Plan, in
the number and Option price of securities subject to outstanding Options granted under the
Plan and in the number and price of securities subject to other awards made under the Plan, as
may be determined to be appropriate by the Board in its sole discretion, provided that the
number of securities subject to any award shall always be a whole number. The Board, in its
sole discretion, shall make appropriate equitable anti-dilution adjustments to the number of
then-outstanding SARs, and to the Fair Market Value upon which the value of such SARs is
based.

     SECTION 4. Eligibility. Trustees and other employees of the Company or its Subsidiaries, and a
corporation, limited liability company, limited partnership or other entity owned directly and
indirectly by one or more employees or trustees of the Company or a Subsidiary, are eligible to be
granted awards under the Plan. Trustees and other employees who are not employees of the Company or
of a Subsidiary that is a subsidiary as defined in Section 424(f) and (g) of the Code, are eligible
to be granted awards under the Plan, but are not eligible to be granted Incentive Stock Options.

     SECTION 5. Options. Options granted under the Plan may be of two types: (i) Incentive Stock
Options or (ii) Non-Qualified Stock Options. Options may be granted alone, in addition to or in
tandem with other awards granted under the Plan. Any Option granted under the Plan shall be in such
form as the Board may from time to time approve.

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     The Board shall have the authority to grant any Participant eligible under Section 4
Incentive Stock Options, Non-Qualified Stock Options, or both types of Options (in each case with
or without SARs). To the extent that any Option does not qualify as an Incentive Stock Option, it
shall constitute a Non-Qualified Stock Option.

     Options granted under the Plan shall be subject to the following terms and conditions and
shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as
the Board shall deem appropriate; provided, however, that the provisions of Option awards need not
be the same with respect to each Participant:

     a. Option Price. The exercise price per Share purchasable under a Non-Qualified Stock
Option shall be determined by the Board; provided that the exercise price per Share of an
Option awarded under the Restricted Pool shall meet the Specified Limitation; and the exercise
price per Share purchasable under an Incentive Stock Option shall be 100% of the Fair Market
Value of the Share on the date of the grant. However, any Incentive Stock Option granted to
any Participant who, at the time the Option is granted, owns more than 10% of the voting power
of all classes of shares of the Company or of a Subsidiary that is a subsidiary company as
defined in Section 424(f) and (g) of the Code, shall have an exercise price per Share of not
less than 110% of Fair Market Value per Share on the date of the grant.

     b. Option Term. The term of each Option shall be fixed by the Board, but no Option shall
be exercisable more than ten years after the date the Option is granted. However, any
Incentive Stock Option granted to any Participant who, at the time such Option is granted,
owns more than 10% of the voting power of all classes of shares of the Company or of a
Subsidiary that is a subsidiary company as defined in Section 424(f) and (g) of the Code, may
not have a term of more than five years. No Option may be exercised by any person after
expiration of the term of the Option.

     c. Exercisability. Options shall vest and be exercisable at such time or times and
subject to such terms and conditions as shall be determined by the Board at the time of grant.
If the Board provides, in its discretion, that any Option is exercisable only in installments,
the Board may waive such installment exercise provisions at any time at or after grant, in
whole or in part, based on such factors as the Board shall determine, in its sole discretion.

     d. Method of Exercise. Subject to the exercise provisions under Section 5(c) and the
termination provisions set forth in Sections 5(f) through (i), Options may be exercised in
whole or in part at any time and from time to time during the term of the Option, by giving
written notice of exercise to the Company specifying the number of Shares to be purchased.
Such notice shall be accompanied by payment in full of the purchase price, either by certified
or bank check, or such other instrument as the Board may accept. As determined by the Board,
in its sole discretion, at or after grant, payment in full or in part of the exercise price of
an Option may be made in the form of Shares that are not unvested Restricted Shares based on
the Fair Market Value of the Shares on the date the Option is exercised; provided, however,
that, in the case of an Incentive Stock Option, the right to make a payment in the form of
already owned Shares may be authorized only at the time the Option is granted.

     No Shares shall be issued upon exercise of an Option until full payment therefor has been
made. A Participant shall not have the right to distributions or dividends or any other rights of a
shareholder with respect to Shares subject to the Option until the Participant has given written
notice of exercise, has paid in full for such Shares, and, if requested, has given the
representation described in Section 13(a) hereof.

     e. Non-transferability of Options. Unless otherwise determined by the Board, no Option
shall be transferable by the Participant otherwise than by will or by the laws of descent and
distribution and all Options shall be exercisable, during the Participant’s lifetime, only by
the Participant or, in the event of his Disability, by his personal representative.

     f. Termination by Reason of Death. Subject to Section 5(i), if a Participant’s service
with the Company or any Subsidiary terminates by reason of death, any Option held by such
Participant may thereafter be exercised, to the extent then exercisable or on such accelerated
basis as the Board may

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determine at or after grant, by the legal representative of the estate or by the legatee
of the Participant under the will of the

Participant, for a period expiring (i) at such time as may be specified by the Board at
or after the time of grant, or (ii) if not specified by the Board, then one year from the date
of death, or (iii) if sooner than the applicable period specified under (i) or (ii) above,
then upon the expiration of the stated term of such Option.

     g. Termination by Reason of Disability. Subject to Section 5(i), if a Participant’s
service with the Company or any Subsidiary terminates by reason of Disability, any Option held
by such Participant may thereafter be exercised by the Participant or his personal
representative, to the extent it was exercisable at the time of termination, or on such
accelerated basis as the Board may determine at or after grant, for a period expiring (i) at
such time as may be specified by the Board at or after the time of grant, or (ii) if not
specified by the Board, then six months from the date of termination of service, or (iii) if
sooner than the applicable period specified under (i) or (ii) above, then upon the expiration
of the stated term of such Option; provided, however, that if the Participant dies within such
period, any unexercised Option held by such Participant shall, at the sole discretion of the
Board, thereafter be exercisable to the extent to which it was exercisable at the time of
death for a period of one (1) year from the date of such death (or such other period as may be
specified by the Board) or until the expiration of the stated term of such Option, whichever
period is shorter.

     h. Other Termination. Subject to Section 5(i), if a Participant’s service with the
Company or any Subsidiary terminates for any reason other than death or Disability, any Option
held by such Participant may thereafter be exercised by the Participant, to the extent it was
exercisable at the time of such termination or on such accelerated basis as the Board may
determine at or after the time of grant, for a period expiring (i) at such time as may be
specified by the Board at or after the time of grant, or (ii) if not specified by the Board,
then thirty (30) days from the date of termination of service, or (iii) if sooner than the
applicable period specified under (i) or (ii) above, then upon the expiration of the stated
term of such Option.

     i. Change of Control. In the event of a Change of Control, the Board may, in its sole
discretion, cause all outstanding Options to immediately become fully exercisable.

     j. Incentive Stock Option Limitations. To the extent required for “incentive stock
option” status under Section 422 of the Code, the aggregate Fair Market Value (determined as
of the time of grant) of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Participant during any calendar year under the Plan
and/or any other plan of the Company or any Subsidiary shall not exceed $100,000. For purposes
of applying the foregoing limitation, Incentive Stock Options shall be taken into account in
the order granted.

     k. Cashless Exercise. The Company may, in the sole discretion of the Board, cooperate in
a “cashless exercise” of an Option. The cashless exercise shall be effected by the Participant
delivering to the Securities Broker instructions to sell a sufficient number of Shares to
cover the costs and expenses associated therewith.

     SECTION 6. Share Appreciation Rights.

     a. Grant. SARs may be granted alone (“Stand-Alone SARs”) or in conjunction with all or
part of any Option granted under the Plan (“Tandem SARs”). In the case of a Non-Qualified
Stock Option, a Tandem SAR may be granted either at or after the time of the grant of such
Option. In the case of an Incentive Stock Option, a Tandem SAR may be granted only at the time
of the grant of such Option.

     b. Exercise.

     (i) Tandem SARs. A Tandem SAR or applicable portion thereof shall terminate and no
longer be exercisable upon the termination or exercise of the related Option or portion
thereof, except that, unless otherwise determined by the Board, in its sole discretion
at the time of grant, a Tandem SAR granted with respect to less than the full number of
Shares covered by a related Option shall be reduced only after such related Option is
exercised or otherwise terminated with respect to the number of Shares not covered by
the Tandem SAR.

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     A Tandem SAR may be exercised by a Participant by surrendering the applicable portion of
the related Option, only at such time or times and to the extent that the Option to which such
Tandem SAR relates shall be exercisable in accordance with the provisions of Section 5 and this
Section 6. Options which have been so surrendered, in whole or in part, shall no longer be
exercisable to the extent the related Tandem SARs have been exercised.

     Upon the exercise of a Tandem SAR, a Participant shall be entitled to receive, upon surrender
to the Company of all (or a portion) of an Option in exchange for cash and/or Shares, an amount
equal to the excess of (A) the Fair Market Value, as of the date such Option (or such portion
thereof) is surrendered, of the Shares covered by such Option (or such portion thereof) over (B)
the aggregate exercise price of such Option (or such portion thereof).

     Upon the exercise of a Tandem SAR, the Option or part thereof to which such Tandem SAR is
related shall be deemed to have been exercised and (for the purpose of the limitation set forth in
Section 3(a) of the Plan on the number of Shares available for awards under the Plan) the number of
Shares available for awards under the Plan shall be reduced by the number of Shares, if any, issued
upon such exercise; provided however, that if the Tandem SAR is from the Restricted Pool (as
defined in Section 3(a) of the Plan), then the number of Shares available for awards under the Plan
shall instead be reduced by the total number of Tandem SARs that are exercised and settled for
Shares and not the number of Shares, if any, issued upon such exercise.

     A Tandem SAR may be exercised only if and when the Fair Market Value of the Shares subject to
the Option exceeds the exercise price of such Option.

     (ii) Stand-Alone SARs. A Stand-Alone SAR may be exercised by a Participant giving
notice of intent to exercise to the Company, provided that all or a portion of such
Stand-Alone SAR shall have become vested and exercisable as of the date of exercise.

     Upon the exercise of a Stand-Alone SAR, a Participant shall be entitled to receive, in either
cash and/or Shares, as determined by the Board, an amount equal to the excess, if any, of (A) the
Fair Market Value, as of the date such SAR (or portion of such SAR) is exercised, of the Shares
covered by such SAR (or portion of such SAR) over (B) the Fair Market Value of the Shares covered
by such SAR (or a portion of such SAR) as of the date such SAR (or a portion of such SAR) was
granted.

     For the purpose of the limitation set forth in Section 3(a) of the Plan on the number of
Shares available for awards under the Plan, upon the exercise of a Stand-Alone SAR, the number of
Shares available for awards under the Plan shall be reduced by the number of Shares, if any, issued
under, and upon the exercise of, the Stand-Alone SAR; provided however, that if the Stand-Alone SAR
is from the Restricted Pool (as defined in Section 3(a) of the Plan), then the number of Shares
available for awards under the Plan shall instead be reduced by the total number of Stand-Alone
SARs that are exercised and settled for Shares and not the number of Shares, if any, issued upon
such exercise.

     c. Terms and Conditions. SARs shall be subject to such terms and conditions, not
inconsistent with the provisions of the Plan, as shall be determined from time to time by the
Board, in its sole discretion; provided, however, that the provisions of SAR awards need not
be the same with respect to each Participant. Such terms and conditions include the following:

     (i) Non-Transferability. Unless otherwise determined by the Board, no SAR shall be
transferable by the Participant otherwise than by will or by the laws of descent and
distribution and all SARs shall be exercisable, during the Participant’s lifetime, only
by the Participant or, in the event of his Disability, by his personal representative.

     (ii) Term of SAR. The term of each SAR shall be fixed by the Board, provided that
the term of a Tandem SAR shall be determined by the terms of the applicable Option, and
provided further that the term of a Stand-Alone SAR shall be ten (10) years, unless
another term is specified by the Board.

     (iii) Exercisability. SARs shall vest and be exercisable at such time or
times and subject to such terms and conditions as shall be determined by the Board at
the time of grant, provided

8

 

that the term of a Tandem SAR shall be determined by the
terms of the applicable Option. A Participant shall not have any rights as a shareholder
with respect to any SAR.

     (iv) Termination of Employment. Unless otherwise specified in the terms of an
award, SARs shall be subject to the terms of Sections 5(f)-(h) with respect to exercise
upon termination of employment.

     (v) Change of Control. In the event of a Change of Control, the Board may, in its
sole discretion, cause all outstanding SARs to immediately become fully exercisable.

     SECTION 7. Restricted Shares.

     a. Administration. Restricted Shares may be issued either alone or in addition to other
awards granted under the Plan. The Board shall determine the persons to whom, and the time or
times at which, grants of Restricted Shares will be made, the number of Shares to be awarded,
the price (if any) to be paid by the recipient of Restricted Shares, the time or times within
which such awards may be subject to forfeiture, and all other conditions of the awards.

     The Board may condition the vesting of Restricted Shares upon the attainment of specified
performance goals or such other factors as the Board may determine, in its sole discretion, at the
time of the award. The Board may award Restricted Shares that vest without regard to the attainment
of specified performance goals.

     The provisions of Restricted Share awards need not be the same with respect to each
Participant.

     b. Awards and Certificates. The prospective recipient of a Restricted Share award shall
not have any rights with respect to such award, unless and until such recipient has executed
an agreement evidencing the award and has delivered a fully executed copy thereof to the
Company, and has otherwise complied with the applicable terms and conditions of such award.
The purchase price for Restricted Shares may be zero.

     Each Participant receiving a Restricted Share award shall be issued a share certificate in
respect of such Restricted Shares. Such certificate shall be registered in the name of such
Participant, and shall bear an appropriate legend referring to the terms, conditions, and
restrictions applicable to such award, substantially in the following form:

     “The transferability of this certificate and the shares represented hereby are subject to the
terms and conditions (including forfeiture) of the Brandywine Realty Trust Amended and Restated
1997 Long-Term Incentive Plan, as amended, and an Agreement entered into between the registered
owner and Brandywine Realty Trust. Copies of such Plan and Agreement are on file in the principal
offices of Brandywine Realty Trust and will be made available to any Shareholder without charge
upon request to the Secretary of the Company.”

     The Board may require that the share certificates evidencing Restricted Shares be held in
custody by the Company until the restrictions thereon shall have lapsed, and that, as a condition
of any Restricted Share award, the Participant shall have delivered to the Company a share power,
endorsed in blank, relating to the Shares covered by such award.

     c. Restrictions and Conditions. The Restricted Shares awarded pursuant to this Section 7
shall be subject to the following restrictions and conditions:

     (i) During a period set by the Board commencing with the date of such award (the
“Restriction Period”), the Participant shall not be permitted to sell, transfer, pledge,
assign or otherwise encumber Restricted Shares awarded under the Plan. The Board, in its
sole discretion, may provide for the lapse of such restrictions in installments and may
accelerate or waive such restrictions in whole or in part, based on service, performance
and/or such other factors or criteria as the Board may determine, in its sole
discretion. The Board may, in its sole discretion, issue Restricted Shares under the
Plan for which all restrictions are waived, including, but not limited to, Restricted Shares issued to Trustees as part or all
of their Trustees’ fees for any period.

9

 

     (ii) Except as provided in this paragraph (ii) and Section 7(c)(i), once the
Participant has been issued a certificate or certificates for Restricted Shares, the
Participant shall have, with respect to the Restricted Shares, all of the rights of a
shareholder of the Company, including the right to vote the Shares, and the right to
receive any cash distributions or dividends. The Board, in its sole discretion, as
determined at the time of award, may permit or require the payment of cash distributions
or dividends to be deferred and, if the Board so determines, reinvested in additional
Restricted Shares to the extent Shares are available under Section 3 of the Plan.

     (iii) Subject to the applicable provisions of the award agreement and this Section
7, upon termination of a Participant’s service with the Company for reasons other than
death or Disability during the Restriction Period, all Restricted Shares still subject
to restriction shall be forfeited by the Participant. Subject to the provisions of the
Plan, the Board, in its sole discretion, may provide for the lapse of such restrictions
in installments and may waive such restrictions, in whole or in part, at any time, based
on such factors as the Board shall deem appropriate in its sole discretion. Unless
otherwise provided in an award agreement, upon the death or Disability of a Participant
during the Restriction Period, restrictions will lapse with respect to a percentage of
the Restricted Shares award granted to the Participant that is equal to the percentage
of the Restriction Period that has elapsed as of the date of death or the date on which
such Disability commenced (as determined by the Board in its sole discretion), and a
share certificate or share certificates representing such Shares, without bearing the
restrictive legend described in Section 7(b), shall be delivered by the Company to the
Participant or the Participant’s estate, as the case may be, in exchange for the share
certificate or share certificates that contain such restrictive legend.

     (iv) In the event of hardship or other special circumstances of a Participant whose
service with the Company is involuntarily terminated (other than for Cause), the Board
may, in its sole discretion, waive in whole or in part any or all remaining restrictions
with respect to such Participant’s Restricted Shares, based on such factors as the Board
may deem appropriate.

     (v) If and when the Restriction Period expires without a prior forfeiture of the
Restricted Shares subject to such Restriction Period, the certificates for such Shares,
without bearing the restrictive legend described in Section 7(b), shall be promptly
delivered by the Company to the Participant, in exchange for the share certificate or
share certificates that contain such restrictive legend.

     (vi) In the event of a Change of Control, the Board, in its sole discretion, may
cause all Restricted Shares remaining subject to forfeiture to immediately cease to be
subject to forfeiture and a share certificate or shares certificates representing such
Shares, without bearing the restrictive legend described in Section 7(b), shall be
issued by the Company and delivered to the Participant, in exchange for the share
certificate or share certificates that contain such restrictive legend.

     SECTION 8. Long-Term Performance Awards.

     a. Awards and Administration. Long-Term Performance Awards may be awarded either alone or
in addition to other awards granted under the Plan. Prior to award of a Long-Term Performance
Award, the Board shall determine the nature, length and starting date of the performance
period (the “performance period”) for each Long-Term Performance Award. Performance periods
may overlap and Participants may participate simultaneously with respect to Long-Term
Performance Awards that are subject to different performance periods and/or different
performance factors and criteria. Prior to award of a Long-Term Performance Award, the Board
shall determine the performance objectives to be used in awarding Long-Term Performance Awards
and determine the extent to which such Long-Term Performance Awards have been earned.
Performance objectives may vary from Participant to Participant and between groups of
Participants and shall be based upon such Company, business unit and/or individual performance
factors and criteria as the Board may deem appropriate, including, but not limited to,
earnings per Share or return on equity.

     At the beginning of each performance period, the Board shall determine for each Long-Term
Performance Award subject to such performance period the range of dollar values and/or number of
Shares

10

 

to be awarded to the Participant at the end of the performance period if and to the extent
that the relevant measure(s) of performance for such Long-Term Performance Award is (are) met. Such
dollar values or number of Shares may be fixed or may vary in accordance with such performance
and/or other criteria as may be specified by the Board, in its sole discretion.

     b. Adjustment of Awards. In the event of special or unusual events or circumstances
affecting the application of one or more performance objectives to a Long-Term Performance
Award, the Board may revise the performance objectives and/or underlying factors and criteria
applicable to the Long-Term Performance Awards affected, to the extent deemed appropriate by
the Board, in its sole discretion, to avoid unintended windfalls or hardship.

     c. Termination of Service. Unless otherwise provided in the applicable award agreements,
if a Participant terminates service with the Company during a performance period because of
death, Disability or Retirement, such Participant (or his estate) shall be entitled to a
payment with respect to each outstanding Long-Term Performance Award at the end of the
applicable performance period:

     (i) based, to the extent relevant under the terms of the award, upon the
Participant’s performance for the portion of such performance period ending on the date
of termination and the performance of the applicable business unit(s) for the entire
performance period, and

     (ii) pro-rated, where deemed appropriate by the Board, for the portion of the
performance period during which the Participant was employed by or served on the Board
of the Company, all as determined by the Board, in its sole discretion.

     However, the Board may provide for an earlier payment in settlement of such award in such
amount and under such terms and conditions as the Board deems appropriate, in its sole discretion.

     Except as otherwise determined by the Board, if a Participant terminates service with the
Company during a performance period for any other reason, then such Participant shall not be
entitled to any payment with respect to the Long-Term Performance Awards subject to such
performance period, unless the Board shall otherwise determine, in its sole discretion.

     In the event of a Change of Control, the Board may, in its sole discretion, cause all
conditions applicable to a Long-Term Performance Award to immediately terminate and a share
certificate or share certificates representing Shares subject to such award, or cash, as the case
may be, to be issued and/or delivered to the Participant.

     d. Form of Payment. The earned portion of a Long-Term Performance Award may be paid
currently or on a deferred basis, together with such interest or earnings equivalent as may be
determined by the Board, in its sole discretion. Payment shall be made in the form of cash or
whole Shares, including Restricted Shares, either in a lump sum payment or in annual
installments commencing as soon as practicable after the end of the relevant performance
period, all as the Board shall determine at or after grant. A Participant whose Long-Term
Performance Award is payable in Shares or Restricted Shares shall not have any rights as a
shareholder until such share certificate or share certificates have been issued to such
Participant, and, if requested, the Participant has given the representation described in
Section 13(a) hereof.

     SECTION 9. Performance Shares.

     a. Awards and Administration. The Board shall determine the persons to whom and the time
or times at which Performance Shares shall be awarded, the number of Performance Shares to be
awarded to any such person, the duration of the period (the “performance period”) during
which, and the conditions under which, receipt of the Shares will be deferred, and the other
terms and conditions of the award in addition to those set forth below.

     The Board may condition the receipt of Shares pursuant to a Performance Share award upon the
attainment of specified performance goals or such other factors or criteria as the Board shall
determine, in its sole discretion.

     The provisions of Performance Share awards need not be the same with respect to each
Participant, and such awards to individual Participants need not be the same in subsequent years.

11

 

     b. Terms and Conditions. Performance Shares awarded pursuant to this Section 9 shall be
subject to the following terms and conditions and such other terms and conditions, not
inconsistent with the terms of this Plan, as the Board shall deem desirable:

     (i) Conditions. The Board, in its sole discretion, shall specify the performance
period during which, and the conditions under which, the receipt of Shares covered by
the Performance Share award will be deferred.

     (ii) Share Certificate. At the expiration of the performance period, if the Board,
in its sole discretion, determines that the conditions specified in the Performance
Share agreement have been satisfied, a share certificate or share certificates
evidencing the number of Shares covered by the Performance Share award shall be issued
and delivered to the Participant. A Participant shall not be deemed to be the holder of
Shares, or to have the rights of a holder of Shares, with respect to the Performance
Shares unless and until a share certificate or share certificates evidencing such Shares
are issued to such Participant. If, with respect to an award of Performance Shares, the
Board determines after the expiration of the performance period that a Participant is
not entitled to the entire number of Performance Shares represented by the award, then
the Shares representing the portion of the award that is not paid to the Participant
shall again become available for award under the Plan, subject to Section 3(b).

     (iii) Death, Disability or Retirement. Subject to the provisions of the Plan, and
unless otherwise provided in the Performance Share Agreement, if a Participant
terminates service with the Company during a performance period because of death,
Disability or Retirement, such Participant (or his estate) shall be entitled to receive,
at the expiration of the performance period, a percentage of Performance Shares that is
equal to the percentage of the performance period that had elapsed as of the date of
termination, provided that the Board, in its sole discretion, determines that the
conditions specified in the Performance Share agreement have been satisfied. In such
event, a share certificate or share certificates evidencing such Shares shall be issued
and delivered to the Participant or the Participant’s estate, as the case may be.

     (iv) Termination of Service. Unless otherwise determined by the Board at the time
of grant, the Performance Shares will be forfeited upon a termination of service during
the performance period for any reason other than death, Disability or Retirement.

     (v) Change of Control. In the event of a Change of Control, the Board may, in its
sole discretion, cause all conditions applicable to the Performance Shares to
immediately terminate and a share certificate or share certificates evidencing Shares
subject to the Share award to be issued and delivered to the Participant.

     SECTION 10. Performance Units.

     a. Awards and Administration. The Board shall determine the persons to whom and the time
or times at which Performance Units shall be awarded, the number of Performance Units to be
awarded to any such person, the duration of the period (the “performance period”) during
which, and the conditions under which, a Participant’s right to Performance Units will be
vested, the ability of Participants to defer the receipt of payment of such Performance Units,
and the other terms and conditions of the award in addition to those set forth below.

A Performance Unit shall have a fixed dollar value.

     The Board may condition the vesting of Performance Units upon the attainment of specified
performance goals or such other factors or criteria as the Board shall determine, in its sole
discretion.

     The provisions of Performance Unit awards need not be the same with respect to each
Participant, and such awards to individual Participants need not be the same in subsequent years.

     b. Terms and Conditions. Performance Units awarded pursuant to this Section 10 shall
be subject to the following terms and conditions and such other terms and conditions, not
inconsistent with the terms of this Plan, as the Board shall deem desirable:

12

 

     (i) Conditions. The Board, in its sole discretion, shall specify the performance
period during which, and the conditions under which, the Participant’s right to
Performance Units will be vested.

     (ii) Vesting. At the expiration of the performance period, the Board, in its sole
discretion, shall determine the extent to which the performance goals have been
achieved, and the percentage of the Performance Units of each Participant that have
vested.

     (iii) Death, Disability or Retirement. Subject to the provisions of this Plan, and
unless otherwise provided in the award agreement, if a Participant terminates service
with the Company during a performance period because of death, Disability or Retirement,
such Participant (or the Participant’s estate) shall be entitled to receive, at the
expiration of the performance period, a percentage of Performance Units that is equal to
the percentage of the performance period that had elapsed as of the date of termination,
provided that the Board, in its sole discretion, determines that the conditions
specified in the Performance Unit agreement have been satisfied, and payment thereof
shall be made to the Participant or the Participant’s estate, as the case may be.

     (iv) Termination of Service. Unless otherwise determined by the Board at the time
of grant, the Performance Units will be forfeited upon a termination of service during
the performance period for any reason other than death, Disability or Retirement.

     (v) Change of Control. In the event of a Change of Control, the Board may, in its
sole discretion, cause all conditions applicable to Performance Units to immediately
terminate and cash representing the full amount of such award to be paid to the
Participant.

     SECTION 11. Amendments and Termination. The Board may amend, alter or discontinue the Plan at
any time, but no amendment, alteration or discontinuation shall be made which would impair the
rights of a Participant with respect to an Option, SAR, Restricted Share, Long-Term Performance
Award, Performance Share or Performance Unit which has been granted under the Plan, without the
Participant’s consent, or which, without the approval of such amendment within one year (365 days)
of its adoption by the Board, by a majority of the votes cast at a duly held shareholder meeting at
which a quorum representing a majority of the Company’s outstanding voting shares is present
(either in person or by proxy) (“Shareholder Approval”), would:

     a. except as expressly provided in the Plan, increase the total number of Shares reserved
for the purposes of the Plan;

     b. change the persons or class of persons eligible to participate in the Plan; or

     c. extend the maximum Option term under Section 5(b) of the Plan.

     Repricing of Options or SARs shall not be permitted without Shareholder Approval. For this
purpose, a “repricing” means: (A) except as permitted by Section 3(c), changing the terms of an
outstanding Option or SAR to lower its exercise price; and (B) repurchasing for cash or canceling
an Option or SAR on a date when its exercise price is greater than the Fair Market Value of the
underlying shares in exchange for another award, unless the cancellation and exchange occurs in
connection with an event described in Section 3(c). Subject to the above provisions, the Board
shall have broad authority to amend the Plan to take into account changes in applicable tax laws
and accounting rules, as well as other developments.

     SECTION 12. Unfunded Status of Plan. The Plan is intended to constitute an “unfunded” plan for
incentive and deferred compensation. With respect to any payments not yet made to a Participant by
the Company, nothing contained herein shall give any such Participant any rights that are greater
than those of a general creditor of the Company. In its sole discretion, the Board may authorize
the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Shares or
payments in lieu of Shares or with respect to awards hereunder.

     SECTION 13. General Provisions.

     a. The Board may require each person acquiring Shares or a Share-based award under the
Plan to represent to and agree with the Company in writing that the Participant is acquiring
the Shares or Share-based award for investment purposes and without a view to distribution
thereof and as to such

13

 

other matters as the Board believes are appropriate to ensure
compliance with applicable Federal and state securities laws. The certificate evidencing such
award and any securities issued pursuant thereto may include any legend which the Board deems
appropriate to reflect any restrictions on transfer and compliance with securities laws.

     All certificates for Shares or other securities delivered under the Plan shall be subject to
such share transfer orders and other restrictions as the Board may deem advisable under the rules,
regulations, and other requirements of the Securities Act of 1933, as amended, the Exchange Act,
any stock exchange upon which the Shares are then listed, and any other applicable Federal or state
securities laws, and the Board may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions.

     b. Nothing contained in the Plan shall prevent the Board from adopting other or
additional compensation arrangements, subject to shareholder approval if such approval is
required by law or any stock exchange upon which the Shares are then listed; and such
arrangements may be either generally applicable or applicable only in specific cases.

     c. The adoption of the Plan shall not confer upon any employee of the Company or a
Subsidiary any right to continued employment with the Company or such Subsidiary, nor shall it
interfere in any way with the right of the Company or such Subsidiary to terminate the
employment of any of its employees at any time.

     d. No later than the date as of which an amount first becomes includable in the gross
income of the Participant for Federal income tax purposes with respect to any award under the
Plan, the Participant shall pay to the Company, or make arrangements satisfactory to the Board
regarding the payment, of any Federal, state or local taxes of any kind required by law to be
withheld with respect to such amount. Unless otherwise determined by the Board, the minimum
required withholding obligations may be settled with Shares, including Shares that are part of
the award that gives rise to the withholding requirement. The obligations of the Company under
the Plan shall be conditional on such payment or arrangements and the Company shall, to the
extent permitted by law, have the right to deduct any such taxes from any payment of any kind
otherwise due to the Participant.

     e. At the time of grant of an award under the Plan, the Board may provide that the Shares
received as a result of such grant shall be subject to a right of first refusal, pursuant to
which the Participant shall be required to offer to the Company any Shares that the
Participant wishes to sell, with the price being the then Fair Market Value of the Shares,
subject to such other terms and conditions as the Board may specify at the time of grant.

     f. The Board shall establish such procedures as it deems appropriate for a Participant to
designate a beneficiary to whom any amounts payable in the event of the Participant’s death
are to be paid.

     g. The Plan and all awards made and actions taken thereunder shall be governed by and
construed in accordance with the laws of the State of Maryland.

     SECTION 14. Effective Date of Plan. This Plan shall become effective on the date that it is
adopted by the Board; provided, however, that it shall not be an Incentive Stock Option Plan if it
is not approved, within one year (365 days) of its adoption by the Board, by a majority of the
votes cast at a duly held shareholder meeting at which a quorum representing a majority of
Company’s outstanding voting shares is present, either in person or by proxy. The Board may make
awards hereunder prior to approval of the Plan; provided, however, that any and all Incentive Stock
Options so awarded automatically shall be converted into Non-Qualified Stock Options if the Plan is not approved by shareholders within 365 days
of its adoption.

     SECTION 15. Term of Plan. No Option, SAR, Restricted Share, Long-Term Performance Award,
Performance Share or Performance Unit shall be granted pursuant to the Plan on or after the tenth
(10th) anniversary of the latest date of shareholder approval of either the Plan or an amendment to
the Plan, but awards granted prior to such tenth (10th) anniversary may extend beyond that date.

14exv10w6

 

Exhibit 10.6

BRANDYWINE REALTY TRUST 2007 NON-QUALIFIED EMPLOYEE SHARE PURCHASE PLAN

1. Purpose.

     The Brandywine Realty Trust 2007 Non-Qualified Employee Share Purchase Plan (the “Plan”) is
intended to encourage and facilitate the purchase of common shares of beneficial interest of
Brandywine Realty Trust (the “Company”) by employees of the Company and any Participating
Companies, thereby attracting high quality employees and providing employees with a personal stake
in the Company and a long range inducement to remain in the employ of the Company and Participating
Companies.

2. Definitions.

     a. “Account” means a bookkeeping account established by the Committee on behalf of a
Participant to hold Payroll Deductions.

     b. “Approved Leave of Absence” means a leave of absence that has been approved by the
applicable Participating Company in such a manner as the Committee may determine from time to time.

     c. “Board” means the Board of Trustees of the Company.

     d. “Business Day” means a day on which the national stock exchanges are open for trading.

     e. “Code” means the Internal Revenue Code of 1986, as amended.

     f. “Committee” means the Compensation Committee of the Board.

     g. “Company” means Brandywine Realty Trust.

     h. “Compensation” means the regular base salary, overtime payments, bonuses, and commissions
paid to a Participant by one or more Participating Company during such individual’s period of
participation in the Plan, plus any pre-tax contributions made by the Participant to any
cash-or-deferred arrangement that meets the requirements of section 401(k) of the Code or any
cafeteria benefit program that meets the requirements of section 125 of the Code, now or hereafter
established by any Participating Company. Any and all contributions (other than contributions
subject to sections 401(k) and 125 of the Code) made on the Participant’s behalf by a Participating
Company under any employee benefit or welfare plan now or hereafter established, and any
profit-sharing distributions and other incentive-type payments, shall not be included in
Compensation.

     i. “Election Form” means the form acceptable to the Committee which an Employee shall use to
make an election to purchase Shares through Payroll Deductions pursuant to the Plan.

     j. “Eligible Employee” means an Employee who meets the requirements for eligibility under
Section 3 of the Plan.

     k. “Employee” means any person, including an officer, who is classified by a Participating
Company as its employee, is on an employee payroll of a Participating Company, and whose wages and
other salary is required to be reported by a Participating Company on Internal Revenue Service Form
W-2 for federal income tax purposes. A person who is not classified by a Participating Company as
its employee, even if such person is retroactively re-characterized as an employee by a third party
or a Participating Company, shall not be an Employee.

     l. “Enrollment Date” means, with respect to a given Offering Period, a date established
from time to time by the Committee, which shall not be later than the first day of such Offering
Period.

     m. “Fair Market Value” means the closing price per Share as reported on the principal
securities exchange on which the Shares are listed or admitted to trading or, if not listed or
admitted to trading on any

 

 

such exchange, Fair Market Value shall be determined by the Committee acting in its
discretion, which determination shall be conclusive.

     n. “Offering” means an offering of Shares to Eligible Employees pursuant to the Plan.

     o. “Offering Commencement Date” means the first Business Day on or after each March 1, June 1,
September 1 or December 1 of each year.

     p. “Offering Period” means the period extending from and including an Offering Commencement
Date through and including the following Offering Termination Date.

     q. “Offering Termination Date” means the last Business Day in the period ending each May 31,
August 31, November 30 and February 28 (or February 29, if applicable), immediately following an
Offering Commencement Date.

     r. “Option Price” means, with respect to any particular Offering Period, an amount equal to
85% of the average of the Fair Market Values for each Business Day during that Offering Period.

     s. “Participant” means an Employee who meets the requirements for eligibility under Section 3
of the Plan and who has timely delivered an Election Form to the Committee.

     t. “Participating Company” means each of the Company and Subsidiaries of the Company.

     u. “Payroll Deductions” means amounts withheld from a Participant’s Compensation pursuant to
the Plan, as described in Section 5 of the Plan.

     v. “Plan” means the Brandywine Realty Trust 2007 Non-Qualified Employee Share Purchase Plan,
as set forth in this document, and as may be amended from time to time.

     w. “Plan Termination Date” means the earlier of: (1) the Offering Termination Date for the
Offering in which the maximum number of Shares specified in Section 4 of the Plan have been issued
pursuant to the Plan; or (2) the date as of which the Board chooses to terminate the Plan as
provided in Section 15 of the Plan.

     x. “Plan Year” means each 12 consecutive month period that begins on June 1 or any anniversary
thereof and ends on the next following May 31.

     y. “Shares” means common shares of beneficial interest of the Company, $.01 par value per
share, subject to adjustment or substitution as provided in Section 10(a).

     z. “Subsidiary” means, in respect of the Company, a subsidiary company, whether now or
hereafter existing, as defined in Sections 424(f) and (g) of the Code, and any other entity,
whether now or hereafter existing, 50% or more of the economic interests in which are owned,
directly or indirectly, by the Company.

     aa. “Successor-in-Interest” means the Participant’s executor or administrator, or such other
person or entity to whom the Participant’s rights under the Plan shall have passed by will or the
laws of descent and distribution.

     bb. “Termination Form” means the form acceptable to the Committee which an Employee shall use
to withdraw from an Offering pursuant to Section 8 of the Plan.

3. Eligibility and Participation.

     a. Eligibility. Each individual who is an Employee scheduled to work twenty (20) or more hours
per week on an Offering Commencement Date shall be eligible to participate in the Plan with respect
to the Offering that commences on that date.

     b. Leave of Absence. An Employee on an Approved Leave of Absence shall be eligible to
participate in the Plan, subject to the provisions of Sections 5(d) and 8(d) of the Plan.

 

 

     c. Commencement of Participation. An Employee who meets the eligibility requirements of
Sections 3(a) and 3(b) of the Plan shall become a Participant by completing an Election Form and
filing it with the Company on or before the applicable Enrollment Date. Payroll Deductions for a
Participant shall commence on the applicable Offering Commencement Date when his or her
authorization for Payroll Deductions becomes effective, and shall end on the Plan Termination Date,
unless sooner terminated pursuant to Section 8 of the Plan.

4. Shares Per Offering.

     The Plan shall be implemented by a series of Offerings that shall terminate on the Plan
Termination Date. Offerings shall be made with respect to Compensation payable for each Offering
Period occurring on or after the Effective Date referred to in Section 16 and ending with the Plan
Termination Date. Shares available for any Offering shall be the difference between the maximum
number of Shares that may be issued under the Plan, as determined pursuant to Section 10(a) of the
Plan, for all of the Offerings, less the actual number of Shares purchased by Participants pursuant
to prior Offerings. If the total number of Shares for which options are exercised on any Offering
Termination Date exceeds the maximum number of Shares available, the Committee shall make a pro
rata allocation of Shares available for delivery and distribution in as nearly a uniform manner as
practicable, and as it shall determine to be fair and equitable, and the unapplied Account balances
shall be returned to Participants as soon as practicable following the Offering Termination Date.

5. Payroll Deductions.

     a. Amount of Payroll Deductions. An Eligible Employee who wishes to participate in the Plan
shall file an Election Form (authorizing payroll deductions) with the Committee prior to the
applicable Enrollment Date, and shall designate on such Election Form the portion of his or her
Compensation that he or she elects to have withheld for the purchase of Shares. Such portion
elected to be withheld shall be a whole percentage of the Eligible Employee’s Compensation, but not
less than 1% nor more than 20%, and in any event, may not exceed $50,000 in any Plan Year.

     b. Participants’ Accounts. All Payroll Deductions with respect to a Participant pursuant to
Section 5(a) of the Plan shall commence on the first payroll following the Enrollment Date and
shall continue until terminated by the Participant as provided in Section 8. All Payroll Deductions
will be credited to the Participant’s Account under the Plan. The amounts collected from the
Participant shall not be held in any segregated account or trust fund and may be commingled with
the general assets of the Company and Participating Companies and used for general corporate
purposes.

     c. Changes in Payroll Deductions. A Participant may discontinue his or her participation in
the Plan at any time as provided in Section 8(a) of the Plan. If a Participant wishes to change his
or her Payroll Deductions, he or she may do so by filing a new Election Form with the Company at
any time. The rate of Payroll Deductions shall be effective as soon as reasonably practicable after
such form has been received by the Company. The new Payroll Deduction rate shall be a whole
percentage of the Eligible Employee’s Compensation, but not less than 1% nor more than 20%, and
Payroll Deductions may not, in any event, exceed $50,000 in any Plan Year.

     d. Leave of Absence. A Participant who goes on an Approved Leave of Absence before the
Offering Termination Date after having filed an Election Form with respect to such Offering may:

     (1) withdraw the balance credited to his or her Account pursuant to Section 8(b) of the
Plan;

     (2) discontinue contributions to the Plan but remain a Participant in the Plan
through the Offering Termination Date immediately following the commencement of such Approved
Leave of Absence; or

     (3) remain a Participant in the Plan during such Approved Leave of Absence through the
Offering Termination Date immediately following the commencement of such Approved Leave of
Absence, and continue the authorization for the Participating Company to make Payroll
Deductions for each payroll period out of continuing payments to such Participant, if any.

 

 

6. Granting of Options.

     On each Offering Termination Date, each Participant shall be deemed to have been granted an
option to purchase a minimum of one (1) Share and a maximum number of Shares that shall be a number
of whole Shares equal to the quotient obtained by dividing the balance credited to the
Participant’s Account as of the Offering Termination Date, by the Option Price.

7. Exercise of Options.

     a. Automatic Exercise. With respect to each Offering, a Participant’s option for the purchase
of Shares granted pursuant to Section 6 of the Plan shall be deemed to have been exercised
automatically on the Offering Termination Date applicable to such Offering.

     b. Fractional Shares and Minimum Number of Shares. Fractional Shares shall not be issued under
the Plan. Amounts credited to an Account remaining after the application of such Account to the
exercise of options for a minimum of one (1) full Share shall be credited to the Participant’s
Account for the next succeeding Offering, or, at the Participant’s election, returned to the
Participant as soon as practicable following the Offering Termination Date, without interest.

     c. Transferability of Option. No option granted to a Participant pursuant to the Plan shall be
transferable other than by will or by the laws of descent and distribution, and no such option
shall be exercisable during the Participant’s lifetime other than by the Participant.

     d. Delivery of Shares. Subject to applicable securities laws, the Company shall credit Shares
acquired on the exercise of options during an Offering Period as soon as practicable following the
Offering Termination Date to a custodial account designated by the Committee and established for
the benefit of the Participant. The Company shall cause a certificate to be delivered as soon as
administratively practicable, subject to applicable securities laws, following a Participant’s
request for Shares acquired on the exercise of options during an Offering Period.

8. Withdrawals.

     a. Withdrawal of Account. A Participant may elect to withdraw the balance credited to the
Participant’s Account by providing a Termination Form to the Committee at any time before the
Offering Termination Date applicable to any Offering.

     b. Amount of Withdrawal. A Participant may withdraw all, but not less than all, of the amounts
credited to the Participant’s Account by giving a Termination Form to the Committee. All amounts
credited to such Participant’s Account shall be paid without interest as soon as practicable
following the Committee’s receipt of the Participant’s Termination Form, and no further Payroll
Deductions will be made with respect to the Participant.

     c. Termination of Employment. Upon termination of a Participant’s employment for any reason
other than death, including termination due to disability or continuation of a leave of absence,
all amounts credited to such Participant’s Account shall be returned without interest to the
Participant. In the event of a Participant’s (1) termination of employment due to death or (2)
death after termination of employment but before the

Participant’s Account has been returned, all amounts credited to such Participant’s Account
shall be returned without interest to the Participant’s Successor-in-Interest.

     d. Leave of Absence. A Participant who is on an Approved Leave of Absence shall, subject to
the Participant’s election pursuant to Section 5(d) of the Plan, continue to be a Participant in
the Plan until the the end of the first Offering ending after commencement of such Approved Leave
of Absence. A Participant who has been on an Approved Leave of Absence for more than 90 days shall
not be eligible to participate in any Offering that begins on or after the commencement of such
Approved Leave of Absence so long as such leave of absence continues.

 

 

9. Interest.

     No interest shall be paid or allowed with respect to amounts paid into the Plan or credited to
any Participant’s Account.

10. Shares.

     a. Maximum Number of Shares. No more than 1,250,000 Shares may be issued under the Plan. Such
Shares shall be authorized but unissued or reacquired Shares of the Company, including Shares
purchased on the open market. The number of Shares available for any Offering and all Offerings
will be automatically equitably and proportionately adjusted for share dividends, share splits,
share combinations, reorganizations and other similar events. All Shares issued pursuant to the
Plan shall be validly issued, fully paid and nonassessable.

     b. Participant’s Interest in Shares. A Participant shall have no interest in Shares subject to
an option until such option has been exercised.

     c. Registration of Shares. Shares to be delivered to a Participant under the Plan shall be
registered in the name of the Participant.

     d. Restrictions on Exercise. The Committee may, in its discretion, require as conditions to
the exercise of any option such conditions as it may deem necessary to assure that the exercise of
options is in compliance with applicable securities laws.

11. Expenses.

     The Participating Companies shall pay all fees and expenses incurred (excluding individual
Federal, state, local or other taxes) in connection with the Plan. No charge or deduction for any
such expenses will be made to a Participant upon the termination of his or her participation under
the Plan or upon the distribution of certificates representing Shares purchased with his or her
contributions.

12. Taxes.

     The Participating Companies shall have the right to withhold from each Participant’s
Compensation an amount equal to all Federal, state, city or other taxes as the Participating
Companies shall determine are required to be withheld by them in connection with the grant,
exercise of the option or disposition of Shares. In connection with such withholding, the
Participating Companies may make any such arrangements as are consistent with the Plan as it may
deem appropriate, including the right to withhold from Compensation paid to a Participant other
than in connection with the Plan and the right to withdraw such amount from the amount standing to
the credit of the Participant’s Account.

13. Plan and Contributions Not to Affect Employment.

     The Plan shall not confer upon any Employee any right to continue in the employ of the
Participating Companies.

14. Administration.

     The Plan shall be administered by the Committee. The Committee shall have authority to
interpret the Plan, to prescribe, amend and rescind rules and regulations relating to it, and to
make all other determinations deemed necessary or advisable in administering the Plan, with or
without the advice of counsel. The determination of the Committee on the matters referred to in
this paragraph shall be conclusive and binding upon all persons in interest.

15. Amendment and Termination.

     The Board may terminate the Plan at any time and may amend the Plan from time to time in any
respect; provided, however, that upon any termination of the Plan, all Shares or Payroll Deductions
(to the

 

 

extent not yet applied to the purchase of Shares) under the Plan shall be distributed to
the Participants, provided further, that no amendment to the Plan shall affect the right of a
Participant to receive his or her proportionate interest in the Shares or his or her Payroll
Deductions (to the extent not yet applied to the purchase of Shares) under the Plan, and provided
further, that the Company may seek shareholder approval of an amendment to the Plan if such
approval is determined to be required by or advisable under the regulations of the Securities or
Exchange Commission or the Internal Revenue Service, the rules of any stock exchange or system on
which the Shares are listed or other applicable law or regulation.

16. Effective Date.

     The Plan shall be effective on May 9, 2007, subject to the approval by the Company’s
shareholders at the Annual Meeting of Shareholders to be held May 9, 2007.

17. Government and Other Regulations.

     The purchase of Shares under the Plan shall be subject to all applicable laws, rules and
regulations, and the Committee shall have the power to make each grant under the Plan subject to
such conditions as it deems necessary or appropriate to comply with the then-existing requirements
of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended,
including Rule 16b-3 (or any similar rule) of the Securities and Exchange Commission.

18. Non-Alienation.

     No Participant shall be permitted to assign, alienate, sell, transfer, pledge or otherwise
encumber his interest under the Plan prior to the exercise, crediting and registration of such
interest in Shares. Any attempt at assignment, alienation, sale, transfer, pledge or other
encumbrance shall be void and of no effect.

19. Notices.

     Any notice required or permitted hereunder shall be sufficiently given only if delivered
personally, telecopied, or sent by first class mail, postage prepaid, and addressed:

If to the Company:

Brandywine Realty Trust

555 East Lancaster Avenue

Radnor, PA 19087

Attn: Secretary

     or any other address provided pursuant to written notice.

     If to the Participant: At the address on file with the Company from time to time.

20. Successors.

     The Plan shall be binding upon and inure to the benefit of any successors or assigns of the
Company.

21. Severability.

     If any part of this Plan shall be determined to be invalid or void in any respect, such
determination shall not affect, impair, invalidate or nullify the remaining provisions of this Plan
which shall continue in full force and effect.

22. Acceptance.

     The election by any Eligible Employee to participate in this Plan constitutes his or her
acceptance of the terms of the Plan and his or her agreement to be bound hereby.

23. Applicable Law.

     This Plan shall be construed in accordance with the law of the State of Maryland, to the
extent not preempted by applicable Federal law.

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