Document:

Prepared and filed by St Ives Financial

Attachment C

FORM OF AGREEMENT

CHANGE-IN-CONTROL

THIS AGREEMENT is entered into as of the 6th day of December, 2006 by and between Howard M. Sipzner (“Executive”) and Brandywine Realty Trust (the “Company”).

WHEREAS, Executive is currently employed by the Company and/or a Subsidiary (as defined below) of the Company;

WHEREAS, in order to encourage Executive to remain an employee of the Company and/or a Subsidiary, the Company is entering into this Agreement with Executive.

NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

1. Payment Obligation: Change of Control. The Company agrees that if (i) a Change of Control of the Company occurs at a time when Executive is then an employee of the Company and/or a Subsidiary of the Company and (ii) within 730 days following the occurrence of the Change of Control (a) the Company or the purchaser or successor thereto (the “Purchaser”) terminates the employment of Executive other than for Cause or (b) Executive resigns for Good Reason, then:

a. the Company or Purchaser will be obligated to pay to Executive an amount equal to the product of: (x) 2.25 multiplied by (y) the sum of (1) Executive’s annual base salary as in effect at the time the Change of Control occurs, (2) the annual bonus paid to Executive in the calendar year immediately preceding the calendar year in which the Change of Control occurs, (3) the “Fair Market Value” (as defined under the Plan) of any restricted common shares of beneficial interest granted to Executive under the Plan (or any new or successor long-term incentive plan) in the calendar year immediately preceding the calendar year in which the Change of Control occurs, determined as of the date of grant of any such restricted shares and (4) the fair market value of any other long-term incentive award (other than the outperformance plan) made to Executive in or for the calendar year
immediately preceding the calendar year in which the Change of Control occurs (with the fair market value determined as of the date of the award and determined by the Board using customary valuation procedures as it may in its sole discretion select). Payment of the amounts provided for in this Section 1.a shall be made as soon as reasonably practicable following Executive’s termination or resignation, but, in any event, not later than ten (10) days after such termination or resignation.

b. Executive shall be entitled to medical coverage until the earlier of (1) the last day of the 821-day period following the date of termination or resignation or (2) the date on which the Executive is eligible for coverage under a plan maintained by a new employer or under a plan maintained by his spouse’s employer. Coverage shall be provided at the level in effect at the date of his termination or resignation (or generally comparable coverage) for himself and, where applicable, his spouse and dependents, as such coverage may be changed by the Company from time to time for employees generally, as if the Executive had continued in employment during such period; or, cash in lieu of such coverage in an amount equal to the Executive’s after-tax cost of continuing such coverage, where such coverage may not be continued (or where such continuation would adversely affect the tax status of
the plan pursuant to which the coverage is provided). The COBRA health care continuation coverage period under section 4980B of the Code shall run concurrently with the foregoing benefit period. In addition, Executive shall be entitled to continuation of all group term life insurance benefits (but not including any supplemental life insurance benefits provided to executives), or the equivalent coverage if provision of such coverage is not possible under the group term life insurance policy, at no cost to Executive for the 821-day period following the date of Executive’s termination or resignation.

2.
  Payment Obligation: Death or Disability. The Company agrees that if Executive
  dies or becomes Disabled at a time when Executive is then an employee of the
  Company and/or a Subsidiary of the Company, then the Company will pay to Executive
  or his estate, as applicable, an amount equal to the product of: (x) 2.25 multiplied
  by (y) the sum of (1) Executive’s base salary as in effect at the time
  the death or Disability occurs, (2) the annual bonus paid to Executive in the
  calendar year immediately preceding the calendar year in which the death or
  Disability occurs, (3) the “Fair Market Value” (as defined under the
  Plan) of any restricted common shares of beneficial interest granted to Executive
  under the Plan (or any new or successor long-term incentive plan) in the calendar
  year immediately preceding the calendar year in which the death or Disability
  occurs, determined as of the date of grant of any such restricted shares and
  (4) the fair market value of any other long-term incentive award (other than
  the outperformance plan) made to Executive in or for the calendar year immediately
  preceding the calendar year in which the death or Disability occurs (with the
  fair market value determined as of the date of the award and determined by the
  Board using customary valuation procedures as it may in its sole discretion
  select)

3. No Right to Employment. This Agreement shall not confer upon Executive any right to remain an employee of the Company or a Subsidiary of the Company, and shall only entitle Executive to the payments and benefits in the limited circumstances set forth in Paragraphs 1 and 2 above.

4. Certain Definitions. As used herein:

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

b. “Cause” has the meaning assigned to it in the Plan (except that references in such Plan definition to “Company” shall be interpreted to mean the Company or Purchaser, as applicable).

c. “Change of Control” means:

(1) 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 Securities Exchange Act of 1934, as amended (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 (1) 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

(2) 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;

(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

(3) 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

(4) 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: (a) have been board members continuously since the beginning of such period; or (b) 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 (a) who were still in office at the time such election or nomination was approved by the Board.

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

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

f. “Good Reason” means any of the following:

(1) a reduction in Executive’s base salary as in effect at the time of the Change of Control;

(2) a significant adverse alteration in the nature or status of Executive’s responsibilities from those in effect at the time of the Change of Control; or

(3) relocation of the place where Executive performs his day-to-day responsibilities at the time of the Change of Control by more than thirty (30) miles.

g. “Plan” means the Company’s 1997 Long-Term Incentive Plan, as amended.

h. “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.

i. Tax Withholding, Etc. All compensation payable under this Agreement shall be subject to customary withholding taxes and other employment taxes as required with respect to compensation paid by an employer to an employee and the amount of compensation payable hereunder shall be reduced appropriately to reflect the amount of any required withholding. The Company shall have no obligation to make any payments to the Executive or make the Executive whole for the amount of any required taxes.

5. Miscellaneous.

a. Controlling Law. This Agreement, and all questions relating to its validity, interpretation, performance and enforcement, shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.

b. Entire Agreement. This Agreement contains the entire understanding among the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, inducements or conditions, express or implied, oral or written, except as herein contained. This Agreement may not be modified or amended other than by an agreement in writing.

c. Liability of Trustees, etc. No recourse shall be had for any obligation of the Company hereunder, or for any claim based thereon or otherwise in respect thereof, against any past, present or future trustee, shareholder, officer or employee of the Company, whether by virtue of any statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being expressly waived and released by Executive.

d. Tax Gross-up. In the event it shall be determined that any payment or distribution of any type to or for the benefit of the Employee, by the Company, any Affiliate, any person who acquires ownership or effective control of the Company or ownership of a substantial portion of the Company’s assets (within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations thereunder) or any Affiliate of such person, whether paid or payable or distributed or distributable pursuant to any of the terms of this Agreement or otherwise (the “Total Payments”), is or will be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties with respect to such excise tax (such excise tax, together with any such interest and penalties, are collectively referred to as the “Excise Tax”), then the
Employee shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Employee of all taxes (including any interest or penalties imposed with respect to such taxes), including any income tax, employment tax or Excise Tax, imposed upon the Gross Up Payment, the Employee retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Total Payments.

All mathematical determinations, and all determinations as to whether any of the Total Payments are “parachute payments” (within the meaning of Section 280G of the Code), that are required to be made under this Section including determinations as to whether a Gross-Up Payment is required, the amount of such Gross-Up Payment and amounts relevant to the last sentence of this Section, shall be made by an independent accounting firm selected by the Employee from among the five (5) largest accounting firms in the United States (the “Accounting Firm”), which shall provide its determination (the “Determination”), together with detailed supporting calculations regarding the amount of any Gross-Up Payment and any other relevant matter, both to the Company and the Employee by no later than ten (10) days following the Termination Date, if applicable, or such earlier time as
is requested by the Company or the Employee (if the Employee reasonably believes that any of the Total Payments may be subject to the Excise Tax). If the Accounting Firm determines that no Excise Tax is payable by the Employee, it shall furnish the Employee and the Company with a written statement that such Accounting Firm has concluded that no Excise Tax is payable (including the reasons therefor) and that the Employee has substantial authority not to report any Excise Tax on his or her federal income tax return. If a Gross-Up Payment is determined to be payable, it shall be paid to the Employee within twenty (20) days after the Determination (and all accompanying calculations and other material supporting the Determination) is delivered to the Company by the Accounting Firm. Any determination by the Accounting Firm shall be binding upon the Company and the Employee, absent manifest error. As a result of uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments not made by the Company should have been made (“Underpayment”), or that Gross-Up Payments will have been made by the Company which should not have been made (“Overpayments”). In either such event, the Accounting Firm shall determine the amount of the Underpayment or Overpayment that has occurred. In the case of an Underpayment, the amount of such Underpayment shall be promptly paid by the Company to or for the benefit of the Employee. In the case of an Overpayment, the Employee shall, at the direction and expense of the Company, take such steps as are reasonably necessary (including the filing of returns and claims for refund), follow reasonable instructions from, and procedures established by, the Company, and otherwise reasonably cooperate with the Company to correct such Overpayment, provided, however, that (i) the Employee shall not in any event be obligated to return to the Company an amount greater than the net after-tax portion of the Overpayment that he or she has retained or has recovered as a refund from the applicable taxing authorities and (ii) this provision shall be interpreted in a manner consistent with the intent of Section, which is to make the Employee whole, on an after-tax basis, from the application of the Excise Tax, it being understood that the correction of an Overpayment may result in the Employee repaying to the Company an amount which is less than the Overpayment.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

 

  	
         

      	
         

      	
        BRANDYWINE
          REALTY TRUST

      
	 	 	 	 
	
        
        

      	
         

      	
        By: 

      	
        
        

      
	
         

      	
         

      	
         

      	
        
        

      
	
         

      	
         

      	
         

      	
        Gerard
          H. Sweeney

          President and CEO

      

 

  	
         
 	
         
 	
         
 	
         
 
	

  
 	

 
 	

 
 	

  
 
	
        

 	
         
 	
         
 	

 
 
	

Howard M. SipznerPrepared and filed by St Ives Financial

Attachment A

BRANDYWINE REALTY TRUST

PERFORMANCE SHARE AWARD

This is a Performance Share Award dated as of ___________, 2007 (“Date of Grant”) from Brandywine Realty Trust, a Maryland real estate investment trust (the “Company”) to Howard M. Sipzner (“Grantee”). Terms used herein as defined terms and not defined herein have the meanings assigned to them in the Brandywine Realty Trust 1997 Long-Term Incentive Plan, as amended from time to time (the “Plan”).

1. Definitions. As used herein:

(a) “Award” means the award of Performance Shares hereby granted.

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

(c) “Cause” means “Cause” as defined in the Plan.

(d) “Change of Control” means “Change of Control” as defined in the Plan.

(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 and in existence at the time of reference. If no Committee has been appointed pursuant to Section 2, or if such a Committee is not in existence at the time of reference, “Committee” means the Board.

(g) “Date of Grant” has the meaning shown above.

(h) “Deferred Compensation Plan” means the Brandywine Realty Trust    Executive Deferred Compensation Plan, as in effect from time to time.

(i) “Disability” means “Disability” as defined in the Plan.

(j) “Employer” means the Company or the Subsidiary for which Grantee is performing services on the applicable Vesting Date.

(k) “Fair Market Value” means “Fair Market Value” as defined in the Plan.

(l)  “Performance Period” means, with respect to each Performance Share, the period beginning on the Date of Grant and ending on the applicable Vesting Date for such Performance Share.

 

(m) “Performance Shares” means the 18,010 Shares which are subject to vesting and forfeiture in accordance with the terms of this Award.

(n) “Rule 16b-3” means Rule 16b-3 promulgated under the 1934 Act, as in effect from time to time.

(o) “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) of the Plan.

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

(q) “Vesting Date” means the date(s) on which Grantee vests in all or a portion of the Performance Shares, as provided in Paragraph 3.

2. Grant of Performance Shares. Subject to the terms and conditions set forth herein and in the Plan, the Company hereby grants to Grantee the Performance Shares.

3. Vesting of Performance Shares. 

(a) Subject to the terms and conditions set forth herein and in the Plan, Grantee shall vest in the Performance Shares on the Vesting Dates set forth in Paragraph 3(b), and as of each Vesting Date, shall be entitled to the delivery of Shares with respect to such Performance Shares; provided that either (i) on the Vesting Date, Grantee is, and has from the Date of Grant continuously been, an employee of the Company or a Subsidiary during the Performance Period, or (ii) Grantee’s termination of employment before the Vesting Date occurred because of Grantee’s death or Disability, or (iii) Grantee’s termination of employment for any reason other than Cause or (vi) the Grantee terminates employment with the Company and its affiliates for Good Reason (“Good Reason” as used herein shall have the same meaning as defined in that certain Employment Agreement
executed on the same day herewith as this Performance Share Award agreement by and between the Company and the Grantee).

(b) Subject to Paragraphs 3(a) and 3(c), a Vesting Date for Performance Shares subject to the Award shall occur in accordance with the following schedule:

	

 
 	

(i)
 	

One-fifth of the Performance Shares will vest on the first anniversary of the Grantee’s first day of employment with the Company (the first day of employment hereinafter referred to as the “Date of Hire”); and
 

	

 
 	

(ii)
 	

An additional one-fifth of the Performance Shares will vest on the second anniversary of the Date of Hire; and
 

	

 
 	

(iii)
 	

An additional one-fifth of the Performance Shares will vest on the third anniversary of the Date of Hire; and
 

 

	

 
 	

(iv)
 	

An additional one-fifth of the Performance Shares will vest on the fourth anniversary of the Date of Hire; and
 

	

 
 	

(v)
 	

An additional one-fifth of the Performance Shares will vest on the fifth anniversary of the Date of Hire.
 

(c) Notwithstanding Paragraphs 3(a) and 3(b):

	

 
 	

(i)
 	

a Vesting Date for all Performance Shares shall occur upon the occurrence of a Change of Control, and the Performance Shares, to the extent not previously vested, shall thereupon vest in full, provided that:
 

	

 
 	

(A)
 	

as of the date of the Change of Control, Grantee is, and has from the Date of Grant continuously been, an employee of the Company or a Subsidiary or 
 

	

 
 	

(B)
 	

Grantee’s termination of employment before the date of the Change of Control occurred because of Grantee’s death or Disability, or 
 

	

 
 	

(C)
 	

Grantee’s termination of employment for any reason other than Cause or 
 

	

 
 	

(D)
 	

the Grantee terminates employment with the Company and its affiliates for Good Reason.
 

	

 
 	

(ii)
 	

To the extent provided under the Deferred Compensation Plan, Grantee may elect to defer the receipt of Shares issuable with respect to Performance Shares. To the extent Grantee has elected to defer the receipt of such Shares, such Shares shall be delivered at the time or times designated pursuant to the Deferred Compensation Plan.
 

4. Forfeiture of Performance Shares.

(a) Subject to the terms and conditions set forth herein, if Grantee terminates employment with the Company and all Subsidiaries prior to the Vesting Date for a Performance Share for reasons other than death, Disability, Good Reason or involuntary termination without Cause, Grantee shall forfeit any such Performance Share which has not vested as of such termination of employment. Grantee shall not forfeit Performance Shares which have not vested as of Grantee’s termination of employment with the Employer because of death or Disability, Grantee’s termination of employment for any reason other than Cause, or Grantee terminates employment with the Company and its affiliates for Good Reason.

Upon a forfeiture of the Performance Shares as provided in this Paragraph 4, the Performance Shares shall be deemed canceled.

 

(b) The provisions of this Paragraph 4 shall not apply to Performance Shares as to which a Vesting Date has occurred.

5. Rights of Grantee. During the Performance Period, with respect to the Performance Shares, Grantee shall have the right to receive a cash payment equal to the value of any distributions or dividends payable with respect to Shares.

6. Notices. Any notice to the Company under this Award shall be made to:

Brandywine Realty Trust

555 E. Lancaster Ave., Suite 100

Radnor, PA 19087

Attention:  Chief Executive Officer

or such other address as may be provided to Grantee by written notice. Any notice to Grantee under this Award shall be made to Grantee at the address listed in the Company’s personnel files. All notices under this Award shall be deemed to have been given when hand-delivered, telecopied or delivered by first class mail, postage prepaid, and shall be irrevocable once given.

7. Securities Laws. The Committee may from time to time impose any conditions on the Performance Shares as it deems necessary or advisable to ensure that the Plan satisfies the conditions of Rule 16b-3, and that Shares are issued and resold in compliance with the Securities Act of 1933, as amended.

8. Delivery of Shares. Upon a Vesting Date, the Company shall notify Grantee (or Grantee’s legal representatives, estate or heirs, in the event of Grantee’s death before a Vesting Date) that the Performance Shares have vested. Except to the extent that Grantee has elected to defer the delivery of Shares under the Deferred Compensation Plan, within ten (10) business days of a Vesting Date, the Company shall, without payment from Grantee for the Performance Shares, deliver to Grantee a certificate for the Performance Shares without any legend or restrictions, except for such restrictions as may be imposed by the Committee, in its sole judgment, under Paragraph 7, provided that no certificates for Shares will be delivered to Grantee until appropriate arrangements have been made with Employer
for the withholding of any taxes which may be due with respect to such Shares. The Company is authorized to withhold from any cash remuneration then or thereafter payable to Grantee an amount sufficient to cover required tax withholdings and is further authorized to cancel a number of Shares for which the restrictions have lapsed having an aggregate Fair Market Value equal to the required tax withholdings. The Company may condition delivery of certificates for Shares upon the prior receipt from Grantee of any undertakings which it may determine are required to assure that the certificates are being issued in compliance with federal and state securities laws. The right to payment of any fractional Shares shall be satisfied in cash, measured by the product of the fractional amount times the fair market value of a Share on the Vesting Date, as determined by the Committee.

9. Award Not to Affect Employment. The Award granted hereunder shall not confer upon Grantee any right to continue in the employment of the Company or any Subsidiary.

 

10. Miscellaneous.

(a) The address for Grantee to which notice, demands and other communications are to be given or delivered under or by reason of the provisions hereof shall be the Grantee’s address as reflected in the Company’s personnel records.

(b) This Award and all questions relating to its validity, interpretation, performance and enforcement shall be governed by and construed in accordance with the laws of Pennsylvania.

 

	

 
 	

 
 	

BRANDYWINE REALTY TRUST
 
	

  
 	

 
 	

BY: 
 	

        

      
	

 
 	

 
 	

 
 	

 
	

 
 	

 
 	

 
 	

Gerard H. Sweeney
 President and Chief Executive Officer
 

 

	

Accepted:
 	

 
 	

 
 	

 
 
	

  
 	

 
 	

 
 	

  
 
	

 	

 
 	

 
 	

 

	

Howard M. Sipzner

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