Document:

Prepared and Filed by St Ives Financial

Exhibit 10.1

BRANDYWINE REALTY TRUST

AMENDED AND RESTATED 

EXECUTIVE DEFERRED COMPENSATION PLAN

(Adopted on December 19, 2006 and effective January 1, 2006)

 

 

ARTICLE 1

PURPOSE

The Board of Trustees of Brandywine Realty Trust (the “Board”) adopted the Brandywine Realty Trust Executive Deferred Compensation Plan (the “Plan”), effective January 1, 2005 (the “Effective Date”). Effective March 31, 2006 (the “Transfer Date”), all of the assets, liabilities and obligations under the Prentiss Properties Executive Choice Share Deferral Plan, the Prentiss Properties Executive Choice Deferred Compensation Plan, the Prentiss Properties Executive Choice Deferred Compensation Plan for Trustees and the Prentiss
Properties Executive Choice Share Deferral Plan for Trustees, were assumed by the Plan, and such Prior Plans were terminated. This amendment and restatement, effective January 1, 2006 (the “Restatement Date”), also includes certain other changes with respect to eligibility, share-based grants and diversification rights, dividend allocations and other design and compliance changes.

Prior to the Effective Date, the Pre-2005 Brandywine Realty Trust Executive Deferred Compensation Plan (the “Pre-2005 EDCP”) was in effect. In order to preserve the favorable tax treatment available to deferrals under the Pre-2005 EDCP due to the American Jobs Creation Act of 2004, the regulations and Internal Revenue guidance issued thereunder (collectively, the “AJCA”), the Board froze the Pre-2005 EDCP with respect to amounts earned and vested on and after the Effective Date. Amounts earned and vested prior to the Effective Date are and will remain subject to the terms of the Pre-2005 EDCP.

All amounts earned and vested on and after the Effective Date are subject to the terms of the Plan. The Plan retains many of the attributes of the Pre-2005 EDCP, but is modified so as to achieve compliance with the requirements of the AJCA. The Board reserves the right to amend the Plan, either retroactively or prospectively, in whatever respect is required to achieve compliance with the requirements of the AJCA.

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ARTICLE 2

DEFINITIONS

“Additional Company Contributions” are contributions credited to the Participant’s Retirement Distribution Account by the Company pursuant to Section 4.6.

“Affiliate” means:  (a) any firm, partnership, or corporation that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with Brandywine Realty Trust; (b) any other organization similarly related to Brandywine Realty Trust that is designated as such by the Board; and (c) any other entity 50% or more of the economic interests in which are owned, directly or indirectly, by Brandywine Realty Trust.

“Beneficiary” means the person or persons designated as such in accordance with Section 11.4.

“Board” means the Board of Trustees of Brandywine Realty Trust.

“Board Remuneration” means for any Trustee, for any Plan Year, the annual retainer and Board meeting fees; provided that committee fees and informal Board discussion fees shall not be “Board Remuneration;” provided further that such remuneration shall not be eligible for Matching Contributions, Profit Sharing Contributions, Supplemental Profit Sharing Contributions or Additional Company Contributions.

“Change of Control” means a “Change in Control Event,” as defined in the AJCA, with respect to Brandywine Realty Trust.

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

“Committee” means the Brandywine Realty Trust Plan Committee, which shall consist of at least one person, the member(s) of which shall be designated from time to time by the President and Chief Executive Officer of Brandywine Realty Trust and which may include the President and Chief Executive Officer.

“Company” means Brandywine Realty Trust and each such subsidiary, division or Affiliate as may from time to time participate in the Plan by or pursuant to authorization of the Board.

“Compensation” means, for any Eligible Employee, for any Plan Year, the Participant’s total taxable income received from the Company with respect to such Plan Year, including, but not limited to, base earnings, regular bonuses, commissions and overtime, plus pre-tax contributions and elective contributions that are not includible in gross income under section 125, 402(a)(8) or 402(h) of the Code, and excluding income recognized in connection with share-related options and payments, reimbursements and other expense allowances, fringe benefits (cash and noncash), moving expenses, deferred compensation and welfare benefits, as determined pursuant to guidelines established and revised by the Plan Administrator from time to time and communicated to Eligible Employees.

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“Compensation Deferral” means that portion of Compensation or Board Remuneration as to which a Participant has made an annual election to defer receipt until the date specified under the In-Service Distribution Option, the Retirement Distribution Option, the Flexible Distribution Option or the Deferred Board Remuneration Option, as applicable.

“Compensation Limit” means the compensation limit of section 401(a)(17) of the Code, as in effect on the first day of the Plan Year.

“Deferred Board Remuneration Account” means the Account maintained for a Participant to which Compensation Deferrals are credited pursuant to the Deferred Board Remuneration Option.

“Deferred Board Remuneration Option” means the Distribution Option pursuant to which benefits are payable in accordance with Section 7.3.

“Disability” means a disability of an Employee or 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 entitles that Employee or Trustee to receive Social Security Disability Income under the Social Security Act, as amended, and the regulations promulgated thereunder.

“Disabled” means having a Disability. The determination of whether a Participant is Disabled shall be made by the Plan Administrator, whose determination shall be conclusive; provided that,

(a) if a Participant is bound by the terms of an employment agreement between the Participant and the Employer, 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

(b) 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; provided that, a Participant may not be determined to be Disabled unless such Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of disability of not less than 12 months.

“Distribution Date” means the date determined in accordance with the rules and procedures established by the Plan Administrator.

“Distribution Option” means the four distribution options which are available under the Plan, consisting of the Retirement Distribution Option, the In-Service Distribution Option, the Flexible Distribution Option and the Deferred Board Remuneration Option.

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“Distribution Option Account(s)” means, with respect to a Participant, the Retirement Distribution Account, the In-Service Distribution Account, the Flexible Distribution Account and/or the Deferred Board Remuneration Account established on the books of account of the Company, pursuant to Section 5.1.

“Earnings Crediting Options” means the deemed investment options selected by the Participant from time to time pursuant to which deemed earnings are credited to the Participant’s Distribution Option Accounts.

“Effective Date” means January 1, 2005.

“Eligible Employee” means (1) an Employee who is a member of a group of selected management and/or highly compensated Employees of the Company and who is designated by the Plan Administrator as eligible to participate in the Plan, or (2) each Employee who, as of the Transfer Date, was eligible to participate in a Prior Plan.

“Employee” means any individual employed by the Company on a regular, full-time basis (in accordance with the personnel policies and practices of the Company), including citizens of the United States employed outside of their home country and resident aliens employed in the United States; provided, however, that to qualify as an “Employee” for purposes of the Plan, the individual must be a member of a group of “key management or other highly compensated employees” within the meaning of Sections 201, 301 and 401 of the Employee Retirement Income Security Act of 1974, as amended; provided further, that the following
individuals shall not be “Employees:”  (1) individuals who are not classified by the Company as its employees, even if they are retroactively recharacterized as employees by a third party or the Company; (2) individuals for whom the Company does not report wages on Form W-2 or who are not on an employee payroll of the Company; or (3) individuals who have entered into an agreement with the Company which excludes them from participation in employee benefit plans of the Company (whether or not they are treated or classified as employees for certain specified purposes that do not include eligibility in the Plan).

“Employer” means Brandywine Realty Trust and its Affiliates.

“Employer Stock Fund” means a hypothetical investment fund consisting entirely of Shares.

“Enrollment Agreement” means the authorization form which an Eligible Employee or Trustee files with the Plan Administrator to participate in the Plan.

“Excess Bonus” means that portion of a Compensation Deferral as defined in Section 4.6.

“Flexible
  Distribution Account” means the
  account maintained for a Participant to which Share Awards, Performance-Based
  Compensation and Compensation Deferrals are credited pursuant to the Flexible
  Distribution Option; provided that, a Participant may designate up to five Flexible
  Distribution Accounts (i.e., Flexible Distribution Accounts #1, #2, #3, #4 and
  #5) with different specified payment dates.

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“Flexible Distribution Option” means the Distribution Option pursuant to which benefits are payable in accordance with Section 7.4.

“In-Service Distribution Account” means the account maintained for a Participant to which Compensation Deferrals are credited pursuant to the In-Service Distribution Option.

“In-Service Distribution Option” means the Distribution Option pursuant to which benefits are payable in accordance with Section 7.2.

“Matching Contributions” are contributions credited to the Participant’s Retirement Distribution Account by the Company pursuant to Section 4.3.

“Offeree” means an individual designated by the Plan Administrator who has received a written offer of employment from the Company and would be an Eligible Employee upon commencement of employment with the Company.

“Participant” means an Eligible Employee or Trustee who has filed a completed and executed Enrollment Agreement with the Plan Administrator or its designee and is participating in the Plan in accordance with the provisions of Article 4. In the event of the death or incompetency of a Participant, the term shall mean his personal representative or guardian. An individual shall remain a Participant until that individual has received full distribution of any amount credited to the Participant’s Distribution Option Account(s).

“Performance-Based Compensation” means, for any Eligible Employee, Compensation or a Share Award that constitutes “performance-based compensation” within the meaning of Q&A 22 of IRS Notice 2005-1, or such other guidance under the AJCA, that is payable with respect to a Performance Period, as determined by the Plan Administrator.

“Performance Period” means a period of at least 12 months during which a Participant may earn Performance-Based Compensation.

“Plan” means the Brandywine Realty Trust Executive Deferred Compensation Plan, as amended from time to time.

“Plan Administrator” means the Committee.

“Plan Year” means the 12-month period beginning on each January 1 and ending on the following December 31.

“Prior Plan” means each of (1) the Prentiss Properties Executive Choice Share Deferral Plan, (2) the Prentiss Properties Executive Choice Deferred Compensation Plan, (3) the  Prentiss Properties Executive Choice Deferred Compensation Plan for Trustees, and (4) the Prentiss Properties Executive Choice Share Deferral Plan for Trustees and such other legacy deferred compensation arrangements as are designated as a Prior Plan by the Plan Administrator. 

“Prior Plan Sub-Account” means the portion of an Eligible Employee’s Account attributable to amounts rolled over to the Plan from a Prior Plan as described in Section 4.1(e).

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“Profit Sharing Contributions” are contributions credited to the Participant’s Retirement Distribution Account by the Company, based on a percentage, as determined each year by the Company, of the Participant’s Compensation in excess of the Compensation Limit. To the extent that a contribution is not deemed to be a Profit Sharing Contribution, it will be considered Compensation classified as a bonus for purposes of the Plan.

“Re-Deferral Election” means an election to change the form and commencement date of payment with respect to all or a portion of a Distribution Option Account by filing an election change consistent with the requirements of the AJCA. The Plan Administrator reserves the right to and discretion to reject and disallow a Re-Deferral Election for any reason and at any time. A Re-Deferral Election as to a Distribution Option Account:  (1) may not accelerate the first or last scheduled payment date with respect to such Distribution Option Account; (2) will not be effective as to any payment from such Distribution Option Account scheduled to be made within 12 months of the Re-Deferral Election; and (3) other than a Re-Deferral Election made in connection with a Participant becoming Disabled or
dying, the first payment to which such Re-Deferral Election applies must be deferred by at least five (5) years from the originally scheduled payment date. A change to the form and commencement date of payment pursuant to Section 7.6 shall not be deemed a Re-Deferral Election.

“Retirement” means the termination of the Participant’s Service with the Employer (for reasons other than death) at or after age 55.

“Retirement Distribution Account” means the Account maintained for a Participant to which Share Awards, Performance-Based Compensation, Compensation Deferrals, Matching Contributions, Additional Company Contributions, Profit Sharing Contributions, and Supplemental Profit Sharing Contributions are credited pursuant to the Retirement Distribution Option.

“Retirement Distribution Option” means the Distribution Option pursuant to which benefits are payable in accordance with Section 7.1.

“Service” means the period of time during which an employment relationship exists between an Employee and the Company, including any period during which the Employee is on an approved leave of absence, whether paid or unpaid. “Service” also includes employment with an Affiliate if an Employee transfers directly between the Company and the Affiliate.

“Share” means a common share of beneficial interest, $.01 par value per share, of Brandywine Realty Trust.

“Share Award” means Shares subject to an award under the terms of the Brandywine Realty Trust Amended and Restated 1997 Long-Term Incentive Plan (as amended from time to time) (including the Brandywine Realty Trust 2006 Long-Term Outperformance Compensation Program (as amended from time to time)), or any other equity based compensation plan, program or arrangement sponsored by the Company, as determined by the Plan Administrator.

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“Supplemental Profit Sharing Contributions” are contributions credited to the Retirement Distribution Account of certain Participants by the Company pursuant to Section 4.5.

“Termination Date” means the date of termination of a Participant’s Service with the Employer, determined without reference to any compensation continuing arrangement or severance benefit arrangement that may be applicable.

“Trustee” means a member of the Board who receives remuneration payable for services as a member of the Board.

“Unforeseeable Emergency” means a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, or a dependent (as defined in section 152(a) of the Code) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.

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ARTICLE 3

ADMINISTRATION OF THE PLAN AND DISCRETION

3.1. The Committee, as Plan Administrator, shall have full power and authority to interpret the Plan, to prescribe, amend and rescind any rules, forms and procedures as it deems necessary or appropriate for the proper administration of the Plan and to make any other determinations and to take any other such actions as it deems necessary or advisable in carrying out its duties under the Plan. All action taken by the Plan Administrator arising out of, or in connection with, the administration of the Plan or any rules adopted thereunder, shall, in each case, lie within its sole discretion, and shall be final, conclusive and binding upon the Company, the Board, all Employees and Trustees, all Beneficiaries and all persons and entities having an interest therein. The Committee, may, however, delegate to any person or entity any of its powers or duties under the Plan. To the extent
of any such delegation, the delegate shall become the Plan Administrator responsible for administration of the Plan, and references to the Plan Administrator shall apply instead to the delegate. Any action by the Committee assigning any of its responsibilities to specific persons who are all trustees, officers, or employees of the Company shall not constitute delegation of the Committee’s responsibility but rather shall be treated as the manner in which the Committee has determined internally to discharge such responsibility.

3.2. The Plan Administrator shall serve without compensation for its services unless otherwise determined by the Board. All expenses of administering the Plan shall be paid by the Company.

3.3. The Company shall indemnify and hold harmless the Plan Administrator from any and all claims, losses, damages, expenses (including counsel fees) and liability (including any amounts paid in settlement of any claim or any other matter with the consent of the Board) arising from any act or omission of such member, except when the same is due to gross negligence or willful misconduct.

3.4. Any decisions, actions or interpretations to be made under the Plan by the Company, the Board or the Plan Administrator shall be made in its respective sole discretion, not as a fiduciary and need not be uniformly applied to similarly situated individuals and shall be final, binding and conclusive on all persons interested in the Plan.

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ARTICLE 4

PARTICIPATION

4.1. Election to Participate.

(a)
  Timing of Election to Participate. Any Eligible Employee or Trustee may
  enroll in the Plan effective as of the first day of a Plan Year by filing a
  completed and fully executed Enrollment Agreement with the Plan Administrator
  by a date set by the Plan Administrator.

(i)
  Base Salary/Board Remuneration. With respect to the deferral of Compensation
  that is classified by the Company as base salary or the deferral of Board Remuneration,
  an executed Enrollment Agreement must be filed by December 31 of the Plan
  Year preceding the Plan Year in which such base salary or Board Remuneration
  is to be earned, or such earlier time as may be established by the Plan Administrator.

(ii) Bonus.

(A) With respect to the deferral of Compensation that is classified by the Company as bonus, an executed Enrollment Agreement must be filed by December 31 of the Plan Year preceding the Plan Year in which such bonus is earned, or such earlier time as may be established by the Plan Administrator.

(B) The Board may, as a condition of a bonus award, require that it be deferred under the Plan and may prescribe vesting and investment provisions with respect to such award, and may establish separate deadlines by which Enrollment Agreements may be filed with respect to such an award.

(iii)
  Performance-Based Compensation. With respect to the deferral of Performance-Based
  Compensation, an executed Enrollment Agreement must be filed no later than six
  months prior to the end of the Performance Period during which such Performance-Based
  Compensation is earned, subject to such other administrative rules, procedures
  and earlier deadlines as may be set by the Plan Administrator and communicated
  with reasonable advance notice to Eligible Employees. 

(iv)
  Share Awards. With respect to the deferral of a Share Award that does
  not qualify as Performance-Based Compensation, an executed Enrollment Agreement
  must be filed no later than 30 days following the date such Share Award is granted,
  and in no event later than twelve months before the first scheduled vesting
  date of such Share Award, subject to such other administrative rules, procedures
  and earlier deadlines as may be set by the Plan Administrator and communicated
  with reasonable advance notice to Eligible Employees.

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(v)
  Revocation of Election. Elections to defer Compensation, Performance-Based
  Compensation, Share Awards and Board Remuneration earned after December 31,
  2005 are irrevocable at the end of the election period established by the Plan
  Administrator, provided that, the Plan Administrator in its sole discretion,
  may accept revocations of elections up to December 31 of the calendar year in
  which the Participant files a deferral election.

(b)
  Amount of Deferral. Pursuant to said Enrollment Agreement, the Eligible
  Employee or Trustee shall irrevocably elect the percentages by which (as a result
  of payroll deduction) an amount equal to any whole percentage of the Participant’s
  Compensation, Performance-Based Compensation, Share Award or Board Remuneration
  will be deferred. Up to 85 percent (85%) of base salary, 100 percent (100%)
  of bonus, 100 percent (100%) of Performance-Based Compensation, 100 percent
  (100%) of a Share Award, and one hundred percent (100%) of Board Remuneration
  may be deferred; provided however, that deferrals will be made after required
  non-deferrable payroll tax deductions and any deductions elected by the Participant
  (including, but not limited to, deductions for payment of health insurance premiums).
  The Plan Administrator may establish minimum amounts that may be deferred under
  this Section 4.1 and may change such standards from time to time. Any such limit
  shall be communicated by the Plan Administrator to the Participants prior to
  the commencement of a Plan Year.

(c)
  Accounts to Which Amounts Credited. Pursuant to said Enrollment Agreement,
  the Eligible Employee shall elect the Distribution Option Accounts to which
  such amounts will be credited, and shall provide such other information as the
  Plan Administrator shall require. Board Remuneration will only be credited to
  the Deferred Board Remuneration Account. 

(d)
  Form of Distribution from Accounts. The first Enrollment Agreement filed
  by an Eligible Employee must set forth the Participant’s election as to
  the time and manner of distribution from the In-Service Distribution Account
  and Flexible Distribution Account, as appropriate. The first Enrollment Agreement
  filed by an Eligible Employee must set forth the time and manner of distribution
  with respect to amounts credited to the Retirement Distribution Account. Subsequent
  Enrollment Agreements must also set forth the Participant’s election as
  to the time and form of distribution from each additional Flexible Distribution
  Account and In-Service Distribution Account first established pursuant to such
  Enrollment Agreement; provided, however, that no deferral election amounts will
  be creditable to the In-Service Distribution Account for amounts deferred on
  and after January 1, 2007. The first Enrollment Agreement filed by a Trustee
  must set forth the manner of distribution with respect to amounts credited to
  the Deferred Board Remuneration Account. Notwithstanding the foregoing, the
  manner of distribution for all amounts invested in the Employer Stock Fund as
  of April 1, 2007, and all amounts attributable to a deferral election effective
  on and after January 1, 2007 and invested in the Employer Stock Fund, shall
  be in the form of Shares (and cash for fractional Shares).

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(e)
  Prior Plan Accounts. Notwithstanding anything herein to the contrary,
  the balance of each Prior Plan Sub-Account as of the Transfer Date shall include
  the portion of such Prior Plan Participant’s account under the Prior Plan
  that was rolled over into the Plan as of the Transfer Date. Amounts rolled over
  from the Prior Plan to the Plan shall be deemed invested in the Earnings Crediting
  Option as determined by the Plan Administrator as the appropriate successor
  investment fund on the date those amounts are credited to the Prior Plan Sub-Account,
  based on the deemed investment of such amounts under the applicable Prior Plan
  immediately prior to the Transfer Date. Amounts in a Prior Plan Sub-Account
  shall be distributed to the Participant in accordance with the election or elections
  the Eligible Employee has made under the applicable Prior Plan with respect
  to such amounts.

4.2. Special Rules for Filing of Elections. 

(a)
  New Hires and Offerees. The Plan Administrator may, in its discretion,
  permit an Employee or Offeree who becomes an Eligible Employee to enroll in
  the Plan for the Plan Year in which the Employee or Offeree became an Eligible
  Employee, or a subsequent Plan Year, by filing a completed and fully executed
  Enrollment Agreement, in accordance with Section 4.1, prior to or as soon as
  practicable after the date the Employee or Offeree becomes an Eligible Employee
  but, in any event, not later than 30 days after such date. Notwithstanding the
  foregoing, however, any election by an Eligible Employee to defer Share Awards,
  Compensation and Performance-Based Compensation pursuant to this Section 4.2(a)
  shall apply only to Share Awards, Compensation and Performance-Based Compensation
  earned by or awarded to the Eligible Employee after the date on which such Enrollment
  Agreement is filed.

(b)
  Promotions. The Plan Administrator may, in its discretion, permit an
  Employee who first becomes an Eligible Employee after the beginning of a Plan
  Year due to a promotion, to enroll in the Plan for that Plan Year by filing
  a completed and fully executed Enrollment Agreement, in accordance with Section
  4.1, as soon as practicable following the date the Employee becomes an Eligible
  Employee but, in any event, not later than 30 days after such date. Notwithstanding
  the foregoing, however, any election by an Eligible Employee to defer Share
  Awards, Compensation and Performance-Based Compensation pursuant to this Section
  4.2(b) shall apply only to Share Awards, Compensation and Performance-Based
  Compensation earned by or awarded to the Eligible Employee after the date on
  which such Enrollment Agreement is filed.

(c)
  New Trustees. A Trustee whose election as a member of the Board first
  becomes effective in a Plan Year may enroll in the Plan for that Plan Year by
  filing a completed and fully executed Enrollment Agreement, in accordance with
  Section 4.1, as soon as practicable following the effective date of such Trustee’s
  election but, in any event, not later than 30 days after the effective date
  of such election. Notwithstanding the foregoing, however, any election by a
  Trustee to defer Board Remuneration pursuant to this Section 4.2 shall apply
  only to such Board Remuneration earned by the Trustee after the date on which
  such Enrollment Agreement is filed. 

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4.3. Matching Contributions. 

(a) If:  (1) the dollar amount of the matching contributions under the Brandywine Realty Trust 401(k) Profit Sharing Plan for the Plan Year was limited due to the application of the provisions of Section 401(m) of the Code; (2) the percentage of the Participant’s Compensation that could be deferred under the Brandywine Realty Trust 401(k) Profit Sharing Plan was limited to an amount less than 10% (or such other percentage that may become effective after the Effective Date) because of other Code limitations; or (3) to the extent that a Participant’s compensation for purposes of the Brandywine Realty Trust 401(k) Profit Sharing Plan is reduced to an amount that is below the Compensation Limit in any Plan Year by reason of deferrals made under this Plan (regardless of whether, prior to reduction, it was in excess of such limitation), a Matching Contribution shall be
contributed under the Plan equal to the amount of matching contributions that would have been made to the Brandywine Realty Trust 401(k) Profit Sharing Plan but for such limitations, but only if and to the extent the Participant has deferred additional amounts of Compensation to the Plan at least equal to the amount that would have been required to have been deferred under the Brandywine Realty Trust 401(k) Profit Sharing Plan in order to support such additional matching contributions in the absence of such limitations.

(b) In its discretion, the Company may make Matching Contributions, which, if made, shall be credited to a Participant’s Retirement Distribution Account. equal to the matching contributions which would have been made on behalf of the Participant under the Brandywine Realty Trust 401(k) Profit Sharing Plan but for statutory limitations. Generally, the Matching Contribution shall be equal to the “matching percentage” (30%, as of the Effective Date) set forth in the Brandywine Realty Trust 401(k) Profit Sharing Plan, multiplied by a specified percentage (10%, as of the Effective Date) of the Participant’s Compensation in excess of the Compensation Limit that is deferred under Section 4.1 or 4.2(a) or (b), as applicable.

4.4. Profit Sharing Contributions. The Company shall credit to each Participant’s Retirement Distribution Account a Profit Sharing Contribution. Profit Sharing Contributions will be credited as frequently as determined by the Plan Administrator.

4.5. Supplemental Profit Sharing Contributions. To the extent that a Participant’s compensation for purposes of the Brandywine Realty Trust 401(k) Profit Sharing Plan is reduced to an amount that is below the Compensation Limit in any Plan Year by reason of deferrals made under this Plan (regardless of whether, prior to reduction, it was in excess of such limitation), a Supplemental Profit Sharing Contribution will be credited to the Retirement Distribution Account of such Participant, at least annually, equal to the specified profit sharing percentage for the applicable Plan Year, multiplied by the excess, if any, of (a) the lesser of (i) the Participant’s Compensation or (ii) the Compensation Limit over (b) the amount of the Participant’s compensation that is taken into account under
the Brandywine Realty Trust 401(k) Profit Sharing Plan.

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4.6. Additional Company Contributions.

(a) If, pursuant to Section 4.1 or 4.2, a Participant (other than a Participant who is a Trustee) elects to defer receipt of 25% of his annual bonus (if any), which may or may not qualify as Performance-Based Compensation, and deems that such deferral be invested in the Employer Stock Fund, then, with respect to any part of such bonus in excess of 25% that is deferred and invested in the Employer Stock Fund (“Excess Bonus”), an Additional Company Contribution equal to a specified percentage (15% as of the Effective Date) of the Excess Bonus shall be contributed to such Participant’s Retirement Distribution Account and deemed invested in the Employer Stock Fund. Notwithstanding the preceding provisions of this Section 4.6(a), if the Committee determines in its sole discretion that a Participant has met the Brandywine Realty Trust target shareholding requirements,
to the extent that such a Participant elects to defer receipt of his annual bonus and deems that such deferral be invested in the Employer Stock Fund, which deferral shall also be referred to as “Excess Bonus” for purposes of the Plan, an Additional Company Contribution equal to a specified percentage (15% as of the Effective Date) of such Excess Bonus shall be contributed to such Participant’s Retirement Distribution Account and deemed invested in the Employer Stock Fund.

(b)
  The Excess Bonus and associated Additional Company Contribution shall not be
  subject to Participant investment direction for two years from the date of crediting;
  provided, however, that Excess Bonus and associated Additional Company Contributions
  shall not be subject to Participant investment direction on and after April
  1, 2007. Prior to April 1, 2007, if, prior to the expiration of two years from
  the date on which the Excess Bonus and Additional Company Contribution are credited,
  (1) the Participant directs that all or a portion of the Excess Bonus or the
  associated Additional Company Contribution be deemed invested in an Earnings
  Crediting Option other than the Employer Stock Fund or (2) the Participant receives
  a distribution pursuant to Article 10, any portion of which consists of all
  or a portion of such Excess Bonus or Additional Company Contribution, then the
  Participant shall forfeit all of such Additional Company Contribution.

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ARTICLE 5

DISTRIBUTION OPTION ACCOUNTS

5.1. Distribution Option Accounts. The Plan Administrator shall establish and maintain separate Distribution Option Accounts with respect to a Participant. A Participant’s Distribution Option Accounts shall consist of the Retirement Distribution Account, one or more In-Service Distribution Accounts, one or more Flexible Distribution Accounts and/or a Deferred Board Remuneration Account, as applicable. The amount of Compensation, Performance-Based Compensation and Board Remuneration, and Shares subject to a Share Award, deferred pursuant to Section 4.1 or Section 4.2 shall be credited by the Company to the Participant’s Distribution Option Accounts, in accordance with the Distribution Option irrevocably elected by the Participant in the Enrollment Agreement, as soon as reasonably practicable
following the close of the payroll period, bonus payment date, or, in the case of Trustees, the regularly scheduled payment date, or, in the case of Share Awards, the vesting date, for which the deferred Compensation, Performance-Based Compensation, Board Remuneration and Share Awards would otherwise be payable or vested, as determined by the Plan Administrator in its sole discretion. Any amount once taken into account as Compensation, Performance-Based Compensation or Board Remuneration for purposes of this Plan shall not be taken into account thereafter. Matching Contributions, Additional Company Contributions, Profit Sharing Contributions, and Supplemental Profit Sharing Contributions, when credited, as determined by the Plan Administrator in its sole discretion, are credited only to the Retirement Distribution Account. The Participant’s Distribution Option Accounts shall be reduced by the amount of payments or Share distributions made by the Company to the Participant or the
Participant’s Beneficiary pursuant to this Plan.

5.2. Earnings on Distribution Option Accounts.

(a) General. A Participant’s Distribution Option Accounts shall be credited with earnings in accordance with the Earnings Crediting Options elected by the Participant from time to time. Participants may allocate their Retirement Distribution Account, each of their In-Service Distribution Accounts, each of their Flexible Distribution Accounts and/or their Deferred Board Remuneration Account among the Earnings Crediting Options available under the Plan only in whole percentages of not less than five percent (5%); provided, however, that the portion of a Participant’s Distribution Option Account that is attributable to a Share Award shall only be invested in the Employer Stock Fund. The Company reserves the right, on a prospective basis, to add or delete Earnings Crediting Options.

(b) Investment Options. 

(i) Investment Performance. The deemed rate of return, positive or negative, credited under each Earnings Crediting Option is based upon the actual investment performance of (A) the Employer Stock Fund, (B) the corresponding investment portfolios of the EQ Advisers Trust, open-end investment management companies under the Investment Company Act of 1940, as amended from time to time, or (C) such other investment fund(s) as the Company may designate from time to time, and shall equal the total return of such investment fund net of asset based charges, including, without limitation, money management fees, fund expenses and mortality and expense risk insurance contract charges.

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(ii) Dividends. Dividends creditable to deferral amounts and Share Awards invested in the Employer Stock Fund shall be treated as a separate arrangement subject to the provisions of Appendix A.

5.3. Earnings Crediting Options. Notwithstanding that the rates of return credited to Participants’ Distribution Option Accounts under the Earnings Crediting Options are based upon the actual performance of the investment options specified in Section 5.2, or such other investment funds as the Company may designate, the Company shall not be obligated to invest any Compensation, Performance-Based Compensation or Board Remuneration deferred by Participants under this Plan, Matching Contributions, Additional Company Contributions, Profit Sharing Contributions, Supplemental Profit Sharing Contributions, or any other amounts, in such portfolios or in any other investment funds.

5.4. Changes in Earnings Crediting Options. 

(a) General. Except as otherwise provided in Section 5.4(b) below, a Participant may change the Earnings Crediting Options to which his Distribution Option Accounts are deemed to be allocated subject to such rules as may be determined by the Plan Administrator, provided that except as the Plan Administrator may otherwise determine in light of legal restrictions on changes, the frequency of permitted changes shall not be less than four times per Plan Year. Each such change may include (a) reallocation of the Participant’s existing Accounts in whole percentages of not less than five percent (5%), and/or (b) change in investment allocation of amounts to be credited to the Participant’s Accounts in the future, as the Participant may elect. The effect of a Participant’s change in Earnings
Crediting Options shall be reflected in the Participant’s Accounts as soon as reasonably practicable following the Plan Administrator’s receipt of notice of such change, as determined by the Plan Administrator in its sole discretion.

(b) Employer Stock Fund Changes. For deferral elections effective on and after January 1, 2007, amounts or Share Awards deferred and invested in the Employer Stock Fund may not be reallocated to any other Earnings Crediting Option and shall instead remain invested in the Employer Stock Fund until distributed. For amounts deferred prior to January 1, 2007, (i) a Participant may change the Earnings Crediting Option to which the portions of his Distribution Option Accounts are invested in the Employer Stock Fund subject to such rules as may be determined by the Plan Administrator, (ii) provided that such reallocation election is received on or prior to March 31, 2007, and (iii) further provided that such deferral amounts that remain invested in the Employer Stock Fund as of April 1, 2007 may not be
reallocated thereafter to any other Earnings Crediting Option and shall instead remain invested in the Employer Stock Fund until distributed.

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5.5. Valuation of Accounts. Except as otherwise provided in Section 5.7, the value of a Participant’s Distribution Option Accounts as of any date shall equal the amounts theretofore credited to such Accounts, including any earnings (positive or negative) deemed to be earned on such Accounts in accordance with Section 5.2 and Section 5.4 through the day preceding such date, less the amounts theretofore deducted from such Accounts.

5.6. Statement of Accounts. The Plan Administrator shall provide to each Participant, not less frequently than quarterly, a statement in such form as the Plan Administrator deems desirable for setting forth the balance standing to the credit of each Participant in each of his Distribution Option Accounts.

5.7. Distributions from Accounts. Any distribution made to or on behalf of a Participant from one or more of his Distribution Option Accounts in an amount which is less than the entire balance of any such Account shall be made pro rata from each of the Earnings Crediting Options to which such Account is then allocated. For purposes of any provision of the Plan relating to distribution of benefits to Participants or Beneficiaries, the value of a Participant’s Distribution Option Accounts shall be determined as of a date as soon as reasonably practicable preceding the distribution date, as determined by the Plan Administrator in its sole discretion. In the case of any benefit payable in the form of a cash lump sum, the value of a Participant’s Distribution Option Accounts, as determined
pursuant to this Section 5.7, shall be distributed. In the case of any benefit payable in the form of annual installments, as of any payment date, the amount of each installment payment shall be determined as the quotient of (a) the value of the Participant’s Distribution Option Account subject to distribution, as determined pursuant to this Section 5.7, divided by (b) the number of remaining annual installments immediately preceding the payment date. In the case of any benefit attributable to a deferral that was effective on or after January 1, 2007, or in the case of any benefit attributable to a deferral effective prior to January 1, 2007 and invested in the Employer Stock Fund as of April 1, 2007, such benefit shall only be payable in the form of Shares (and cash for fractional Shares).

5.8. Small Benefit Cash-Out. If a Participant or Beneficiary becomes eligible for a distribution in accordance with the provisions of Sections 7.1(b), 7.2(b), 7.4(c), 8.1 or 9.1, relating to payments following termination of Service, Disability or death, the Plan Administrator reserves the right to cash out such Participant or Beneficiary as soon as administratively practicable (but not later than required by the AJCA) following such Participant’s termination of Service, Disability or death, if the value of the Participant’s Distribution Option Accounts does not exceed $10,000, or such higher amount as may be permitted under the AJCA. 

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ARTICLE 6

DISTRIBUTION OPTIONS

6.1. Election of Distribution Option. In the first completed and fully executed Enrollment Agreement filed with the Plan Administrator, a Participant shall elect the time and manner of payment in accordance with Section 4.1(d). Annually, the Participant shall allocate his or her deferrals between the Distribution Options in increments of ten percent (10%); provided that, deferrals of Board Remuneration shall automatically be allocated to the Deferred Board Remuneration Account.

6.2. Retirement Distribution Option. Subject to Section 7.1, distribution of the Participant’s Retirement Distribution Account, if any, shall commence not earlier than the thirteenth month following the Participant’s Retirement.

6.3. In-Service Distribution Option. Subject to Section 7.2, the Participant’s In-Service Distribution Account shall be distributed commencing in the year elected by the Participant in the Enrollment Agreement pursuant to which such In-Service Distribution Account was established. A Participant shall not be entitled to allocate any deferrals to an In-Service Distribution Account for the two Plan Years preceding the Plan Year which includes the date on which such Account is to be distributed and such additional deferrals shall instead be allocated to the Retirement Distribution Account. Notwithstanding the foregoing, for deferral elections effective on and after January 1, 2007, a Participant shall not be entitled to allocate any deferrals to an In-Service Distribution Account.

6.4. Deferred Board Remuneration Option. Subject to Section 7.3, distribution of the Participant’s Deferred Board Remuneration Account, if any, shall commence following the Participant’s termination of service as a Trustee.

6.5. Flexible Distribution Option. Subject to Section 7.4, each of the Participant’s Flexible Distribution Accounts shall be distributed commencing in the year elected by the Participant in the Enrollment Agreement pursuant to which such Flexible Distribution Account was established; provided, however, such distribution shall not be prior to the third Plan Year beginning after the Plan Year in which the first deferral election is made with regard to that Flexible Distribution Account.

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ARTICLE 7

BENEFITS TO PARTICIPANTS

7.1. Benefits Under the Retirement Distribution Option. Benefits under the Retirement Distribution Option shall be paid to a Participant as follows:

(a) Benefits Upon Retirement.

(i) General. In the case of a Participant whose Service with the Employer terminates on account of his Retirement, the Participant’s Retirement Distribution Account shall be distributed in one of the following methods, as elected by the Participant in writing either in the Enrollment Agreement or in a separate election made in accordance with Section 7.1(b): (x) in a lump sum; (y) in annual installments over 5, 10, 15 or 20 years; or (z) by any other formula that is mathematically derived and is acceptable to the Plan Administrator.

(ii) Time of Payment. Any benefit payable in accordance with this paragraph shall be paid or commence, as elected by the Participant in accordance with this Section 7.1, at any time following Retirement, but not earlier than the thirteenth month following the Participant’s Retirement. The valuation and timing of payments shall be subject to administrative processes prescribed by the Plan Administrator.

(iii) Default Form and Time of Payment. Unless elected otherwise in accordance with Section 7.1(a), the default form of payment of a Participant’s Retirement Distribution Account shall be a lump sum (including Shares for applicable amounts under the Employer Stock Fund) paid on the Distribution Date next following the thirteenth month following the Participant’s Retirement.

(b) Benefits Upon Termination of Employment. If a Participant’s Service with the Employer terminates prior to the earliest date on which the Participant is eligible for Retirement (other than due to death or becoming Disabled), the Participant’s Retirement Distribution Account will be distributed in a lump sum (including Shares for applicable amounts under the Employer Stock Fund) at the earliest Distribution Date that is not earlier than the thirteenth month following the Participant’s Termination Date. Within the 30-day period following the Participant’s Termination Date, the Participant may elect to change the form and commencement date of payment of the Participant’s Retirement Distribution Account by making a Re-Deferral Election. Limitations on the form and commencement
date under a Re-Deferral Election shall be determined by the Plan Administrator in its sole discretion.

(c) Changes in Distribution Elections. A Participant may elect to change the form and commencement date of payment of the Participant’s Retirement Distribution Account by filing a Re-Deferral Election. Effective after December 31, 2006, a Participant may continue to elect to re-defer receipt of his Retirement Distribution Account that was the subject of an earlier Re-Deferral Election by submitting a new Re-Deferral Election. Limitations on the form and commencement date under a Re-Deferral Election shall be determined by the Plan Administrator in its sole discretion

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(d) Forfeiture. If a Participant terminates Service, other than due to Retirement, Disability or death, prior to being credited with five (5) years of service, as determined pursuant to the terms of the Brandywine Realty Trust 401(k) Profit Sharing Plan, all or a portion of the Participant’s Retirement Distribution Account attributable to Matching Contributions, and, on and after December 19, 2006, Supplemental Profit Sharing Contributions, shall be forfeited, as follows:

 

  	
        Termination
          Prior to

          Completion of Year

      	
         

      	
        Portion
          Forfeited

      
	
        

      	 	
        

      
	
        1

      	
         

      	
        100%

      
	
        2

      	
         

      	
          80%

      
	
        3

      	
         

      	
          50%

      

7.2. Benefits Under the In-Service Distribution Option. Benefits under the In-Service Distribution Option shall be paid to a Participant as follows:

(a) In-Service Distributions. In the case of a Participant who continues in Service with the Employer, the Participant’s In-Service Distribution Account shall be paid to the Participant commencing in, but not later than January 31 of the Plan Year irrevocably elected by the Participant in the Enrollment Agreement pursuant to which such In-Service Distribution Account was established, which may be no earlier than the third Plan Year following the end of the last Plan Year in which deferrals are to be credited to the In-Service Distribution Account, in one lump sum or in annual installments payable over 2, 3, 4, or 5 years.

(i) Any lump sum benefit payable in accordance with this paragraph shall be paid in, but not later than January 31 of, the Plan Year elected by the Participant in accordance with Section 6.3

(ii) Annual installment payments, if any, shall commence in, but not later than January 31 of, the Plan Year elected by the Participant in accordance with Section 6.3.

(b) Benefits Upon Termination of Employment. In the case of a Participant whose Service with the Employer terminates before the calendar year in which the Participant’s In-Service Distribution Account would otherwise be distributed, other than on account of becoming Disabled or by reason of death, notwithstanding any prior election in accordance with Section 7.2(a) or (c), such In-Service Distribution Account shall be distributed in a lump sum (including Shares for applicable amounts under the Employer Stock Fund) at the earliest Distribution Date that is not earlier than the thirteenth month following the Participant’s Termination Date. No later than 30 days following such Participant’s Termination Date, the Participant may elect to change the form and commencement date of payment of
the Participant’s In-Service Distribution Account by making a Re-Deferral Election. Limitations on the form and commencement date under a Re-Deferral Election shall be determined by the Plan Administrator in its sole discretion.

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(c) Effective after December 31, 2006, a Participant may continue to elect to re-defer receipt of any of his In-Service Distribution Account that was the subject of an earlier Re-Deferral Election by submitting a new Re-Deferral Election. Limitations on the form and commencement date under a Re-Deferral Election shall be determined by the Plan Administrator in its sole discretion.

7.3. Benefits Under the Deferred Board Remuneration Option. 

(a) In General.

(i) Form of Payment. Benefits under the Deferred Board Remuneration Option shall be paid to a Participant following his termination of service as a Trustee. The Deferred Board Remuneration Account shall be distributed in one of the following methods, as elected by the Participant in writing in the Enrollment Agreement: (x) in a lump sum; (y) in annual installments over 5, 10, 15 or 20 years; or (z) by any other formula that is mathematically derived and is acceptable to the Plan Administrator. 

(ii) Time of Payment. Any benefit payable in accordance with this paragraph shall be paid or commence, as elected by the Participant in accordance with this Section 7.3, at any time following the Participant’s termination of service as a Trustee, but not earlier than the thirteenth month following such termination of service. The valuation and timing of payments shall be subject to administrative processes prescribed by the Plan Administrator.

(iii) Default Form and Time of Payment. Unless elected otherwise in accordance with this Section 7.3(a), the default form of payment of a Participant’s Deferred Board Remuneration Account shall be a lump sum (including Shares for applicable amounts under the Employer Stock Fund) paid on the Distribution Date next following the thirteenth month following the Participant’s termination of service as a Trustee.

(b) Changes in Distribution Elections. A Participant may elect to change the form and commencement date of payment of the Participant’s Deferred Board Remuneration Account, consistent with Section 7.3(a), by filing a Re-Deferral Election within the 30-day period following the Participant’s termination of service as a Trustee. Limitations on the form and commencement date under a Re-Deferral Election shall be determined by the Plan Administrator in its sole discretion.

7.4. Benefits Under the Flexible Distribution Account. Benefits under the Flexible Distribution Option shall be paid to a Participant as follows:

(a) In General. Each of the Participant’s Flexible Distribution Accounts shall be distributed in one lump sum (including Shares for applicable amounts under the Employer Stock Fund) not later than January 31 of the Plan Year irrevocably elected by the Participant in the Enrollment Agreement pursuant to which such Flexible Distribution Account was established. 

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(b) Changes in Distribution Elections. A Participant may elect to change the form and commencement date of payment of any of the Participant’s Flexible Distribution Accounts by filing a Re-Deferral Election not later than January 31 of the Plan Year preceding the Plan Year in which the originally elected payment commencement date occurs. Limitations on the form and commencement date under a Re-Deferral Election shall be determined by the Plan Administrator in its sole discretion.

(c) Benefits Upon Termination of Employment. In the case of a Participant whose Service with the Employer terminates prior to the date on which any of the Participant’s Flexible Distribution Accounts would otherwise be distributed, other than on account of death, distribution shall be made at the time elected by the Participant prior to his Termination Date; provided, however, that the Participant (or his Beneficiary(ies) in the event of the Participant’s death) may elect to change the form and commencement date of payment of any of the Participant’s Flexible Distribution Accounts by making a Re-Deferral Election. The Participant may elect to change the form and commencement date of payment of any of the Participant’s Flexible Distribution Accounts by making a Re-Deferral
Election. Limitations on the form and commencement date under a Re-Deferral Election shall be determined by the Plan Administrator in its sole discretion; provided that, the Company reserves the right to override the Participant’s election and distribute any of the Participant’s Flexible Distribution Accounts in a lump sum not earlier than 13 months following the Termination Date.

7.5 Special Rule for Deferral Elections Made Prior to January 1, 2005. If a Participant filed an Enrollment Agreement under the Pre-2005 EDCP in 2003 to defer Compensation classified by the Company as bonus that, if paid, will be paid in 2005, then to the extent that such Participant becomes entitled to any such bonus in 2005 and all or any portion of the payment of such bonus is deferred pursuant to such prior election, such bonus deferrals will be credited under and subject to the terms of the Plan. Prior to March 15, 2005, the Participant may elect to modify the amount of such bonus deferrals, and may also elect to modify the allocation of such bonus deferrals by specifying that a greater or lesser percentage of such bonus deferrals be credited to the In-Service Distribution Account or the
Retirement Distribution Account, as the case may be. Furthermore, such bonus deferrals, if any, will be paid in the time and form elected by such Participant in the first Enrollment Agreement filed under the Plan prior to March 15, 2005.

7.6. Change in Time and Form of Election Pursuant to Special AJCA Transition Rules. 

(a) To the extent provided by the Plan Administrator, a Participant may, during the period extending from January 1, 2006 to December 31, 2006, with respect to all or any portion of his Distribution Option Accounts that is scheduled to be paid after December 31, 2006 (but not including any Prior Plan Sub-Accounts), and with respect to all or any portion of his deferrals under the Pre-2005 EDCP that is scheduled to be paid after December 31, 2006, make new payment elections (which shall not be considered Re-Deferral Elections) as to the form and timing of payment of such amounts as may be permitted under this Plan, provided that (A) following the completion of such new payment election, amounts previously credited under the Pre-2005 EDCP shall not be treated as subject to the Pre-2005 EDCP, but instead shall be treated as a deferral under this Plan, subject to the rules of the
Plan as in effect as of the Restatement Date, and (B) no portion of the benefit subject to such an election shall be payable before January 1, 2007.

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(b) To the extent provided by the Plan Administrator, a Participant may, during the period extending from January 1, 2007 to December 31, 2007, with respect to all or any portion of his deferrals under this Plan that is scheduled to be paid after December 31, 2007 (but not including any Prior Plan Sub-Accounts), and with respect to all or any portion of his deferrals under the Pre-2005 EDCP that is scheduled to be paid after December 31, 2007, make new payment elections (which shall not be considered Re-Deferral Elections) as to the form and timing of payment of such amounts as may be permitted under this Plan, provided that (A) following the completion of such new payment election, amounts previously credited under the Pre-2005 EDCP shall not be treated as subject to the Pre-2005 EDCP, but instead shall be treated as a deferral under this Plan, subject to the rules of the Plan
as in effect as of the Restatement Date, and (B) no portion of the benefit subject to such an election shall be payable before January 1, 2008.

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ARTICLE 8

DISABILITY

8.1. In the event a Participant becomes Disabled, the Participant’s right to make any further deferrals under this Plan shall terminate as of the date the Participant terminates due to Disability. The Participant’s Distribution Option Accounts shall continue to be credited with earnings in accordance with Section 5.2 until such Accounts are fully distributed. Except as to any Distribution Option Account as to which distributions have already commenced, the Participant’s Distribution Option Accounts, notwithstanding any election to the contrary, shall be paid in a lump sum (including Shares for applicable amounts under the Employer Stock Fund) at the earliest Distribution Date that is not earlier than the thirteenth month following such Participant’s becoming Disabled. No later than 30 days following such Participant’s Disability, the Participant may
elect to change the form and commencement date of payment of the Participant’s Distribution Option Accounts by making a Re-Deferral Election. Limitations on the form and commencement date under a Re-Deferral Election shall be determined by the Plan Administrator in its sole discretion.

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ARTICLE 9

SURVIVOR BENEFITS

9.1. Death of Participant Prior to the Commencement of Benefits. In the event of a Participant’s death prior to the commencement of benefits in accordance with Article 7, payment of all Distribution Option Accounts shall be made in a lump sum (including Shares for applicable amounts under the Employer Stock Fund) at the earliest Distribution Date that is not earlier than the fourteenth month following the Participant’s death. No later than sixty days following such Participant’s death, the Beneficiary may elect to change the form and commencement date of payment of the Participant’s Distribution Option Accounts by making a Re-Deferral Election. Limitations on the form and commencement date under a Re-Deferral Election shall be determined by the Plan Administrator in its sole discretion. 

9.2. Death of Participant After Benefits Have Commenced. In the event a Participant who dies after annual installment benefits payable under Sections 7.1, 7.2 and/or 7.3 has commenced, but before the entire balance of such Distribution Option Accounts has been paid, any remaining annual installments shall continue to be paid to the Participant’s Beneficiary at such times and in such amounts as they would have been paid to the Participant had he survived. 

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ARTICLE 10

EMERGENCY BENEFIT

10.1. In the event that the Plan Administrator, upon written request of a Participant, determines, in its sole discretion, that the Participant has suffered an Unforeseeable Emergency, the Company shall pay to the Participant from the Participant’s Distribution Option Account, as soon as practicable following such determination, an amount necessary to meet such Unforeseeable Emergency, in a manner consistent with the AJCA, after deduction of any and all taxes as may be required pursuant to Section 11.10 (the “Emergency Benefit”). Emergency Benefits shall be paid first from the Participant’s In-Service Distribution Accounts, if any, to the extent the balance of one or more of such In-Service Distribution Accounts is sufficient to meet the emergency, in the order in which such
Accounts would otherwise be distributed to the Participant. If the distribution exhausts the In-Service Distribution Accounts, the Flexible Distribution Accounts may be accessed and, if necessary, the Retirement Distribution Account and Deferred Board Remuneration Account may be accessed. With respect to that portion of any Distribution Option Account which is distributed to a Participant as an Emergency Benefit in accordance with this Article 10, no further benefit shall be payable to the Participant under this Plan. Notwithstanding anything in this Plan to the contrary, a Participant who receives an Emergency Benefit in any Plan Year shall not be entitled to make any further deferrals for the remainder of such Plan Year.

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ARTICLE 11

MISCELLANEOUS

11.1. Amendment and Termination. The Plan may be amended, suspended, discontinued or terminated at any time by the Plan Administrator; provided, however, that no such amendment, suspension, discontinuance or termination shall reduce or in any manner adversely affect the rights of any Participant with respect to benefits that are payable or may become payable under the Plan based upon the balance of the Participant’s Accounts as of the effective date of such amendment, suspension, discontinuance or termination.

11.2. Change of Control.

(a) Notwithstanding Section 11.1, in the event of a Change of Control, Brandywine Realty Trust, or its successor, shall have the discretion, with respect to amounts standing to the credit of Participants’ Distribution Option Accounts, to modify and/or completely override Participants’ elections regarding the timing and/or form of distribution from such Distribution Option Accounts, including providing for a complete or partial distribution of all amounts due such Participants in the form of immediate lump sum payments. This Section 11.2(a) shall be applied consistent with and to the extent permitted by the AJCA. 

(b) In the event of a Change of Control in which Shares are converted into cash or equity, amounts deemed invested in the Employer Stock Fund as of such Change of Control shall be deemed to be converted in the same manner as Shares; provided if holders of Shares are given a choice between forms of consideration, the amounts deemed invested in the Employer Stock Fund as of such Change of Control shall be deemed converted into that form of consideration chosen by the majority of the holders of Shares.

11.3. Claims Procedure.

(a) Claim. A person who believes that he is being denied a benefit to which he is entitled under the Plan (hereinafter referred to as a “Claimant”) may file a written request for such benefit with the Plan Administrator, setting forth the claim.

(b) Claim Decision. Upon receipt of a claim, the Plan Administrator shall advise the Claimant within ninety (90) days of receipt of the claim whether the claim is denied. If special circumstances require more than ninety (90) days for processing, the Claimant will be notified in writing within ninety (90) days of filing the claim that the Plan Administrator requires up to an additional ninety (90) days to reply. The notice will explain what special circumstances make an extension necessary and indicate the date a final decision is expected to be made.

If the Claimant does not receive a written denial notice or notice of an extension within ninety (90) days, the Claimant may consider the claim denied and may then request a review of denial of the claim, as described below.

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If the claim is denied in whole or in part, the Claimant shall be provided a written opinion, using language calculated to be understood by the Claimant, setting forth:

(i) The specific reason or reasons for such denial;

(ii) The specific reference to pertinent provisions of this Plan on which such denial is based;

(iii) A description of any additional material or information necessary for the Claimant to perfect his claim and an explanation why such material or such information is necessary;

(iv) Appropriate information as to the steps to be taken if the Claimant wishes to submit the claim for review; and

(v) The time limits for requesting a review under subsection (c) and for review under subsection (d) hereof.

(c) Request for Review. Within sixty (60) days after the receipt by the Claimant of the written opinion described above, the Claimant may request in writing that the Plan Administrator review its determination. The Claimant or his duly authorized representative may, but need not, review the pertinent documents and submit issues and comments in writing for consideration by the Plan Administrator. If the Claimant does not request a review of the initial determination within such sixty (60) day period, the Claimant shall be barred and estopped from challenging the determination.

(d) Review of Decision. Within sixty (60) days after the Plan Administrator’s receipt of a request for review, it will review the initial determination. After considering all materials presented by the Claimant, the Plan Administrator will render a written opinion, written in a manner calculated to be understood by the Claimant, setting forth the specific reasons for the decision and containing specific references to the pertinent provisions of this Agreement on which the decision is based. If special circumstances require that the sixty (60) day time period be extended, the Plan Administrator will so notify the Claimant and will render the decision as soon as possible, but no later than one hundred twenty (120) days after receipt of the request for review.

11.4. Designation of Benefit. Each Participant may designate a Beneficiary or Beneficiaries (which Beneficiary may be an entity other than a natural person) to receive any payments which may be made following the Participant’s death. Such designation may be changed or canceled at any time without the consent of any such Beneficiary. Any such designation, change or cancellation must be made in a form approved by the Plan Administrator and shall not be effective until received by the Plan Administrator, or its designee. If no Beneficiary has been named, or the designated Beneficiary or Beneficiaries shall have predeceased the Participant, the Beneficiary shall be the Participant’s estate. If a Participant designates more than one Beneficiary, the interests of such Beneficiaries shall be paid
in equal shares, unless the Participant has specifically designated otherwise.

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11.5. Limitation of Participant’s Right. Nothing in this Plan shall be construed as conferring upon any Participant any right to continue in Service or to continue to serve as a Trustee, nor shall it interfere with the rights of the Company to terminate the employment of any Participant and/or to take any personnel action affecting any Participant without regard to the effect which such action may have upon such Participant as a recipient or prospective recipient of benefits under the Plan. Any amounts payable hereunder shall not be deemed salary or other compensation to a Participant for the purposes of computing benefits to which the Participant may be entitled under any other arrangement established by the Employer for the benefit of its employees.

11.6. No Limitation on Company Actions. Nothing contained in the Plan shall be construed to prevent the Company from taking any action which is deemed by it to be appropriate or in its best interest. No Participant, Beneficiary, or other person shall have any claim against the Company as a result of such action.

11.7. Obligations to Company. If a Participant becomes entitled to a distribution of benefits under the Plan, and if at such time the Participant has outstanding any debt, obligation, or other liability representing an amount owing to the Employer, then the Employer may offset such amount owed to it against the amount of benefits otherwise distributable. Such determination shall be made by the Plan Administrator.

11.8. Nonalienation of Benefits. Except as expressly provided herein, no Participant or Beneficiary shall have the power or right to transfer (otherwise than by will or the laws of descent and distribution), alienate, or otherwise encumber the Participant’s or Beneficiary’s interest under the Plan. The Company’s obligations under this Plan are not assignable or transferable, except to (a) any corporation or partnership which acquires all or substantially all of the Company’s assets or (b) any corporation or partnership into which the Company may be merged or consolidated. A Participant’s or Beneficiary’s interest under the Plan is not assignable or transferable pursuant to a domestic relations order. The provisions of the Plan shall inure to the benefit of each
Participant and the Participant’s Beneficiaries, heirs, executors, administrators or successors in interest.

11.9. Protective Provisions. Each Participant shall cooperate with the Company by furnishing any and all information requested by the Company in order to facilitate the payment of benefits hereunder, taking such physical examinations as the Company may deem necessary and taking such other relevant action as may be requested by the Company. If a Participant refuses to cooperate, the Company shall have no further obligation to the Participant under the Plan, other than payment to such Participant of the then current balance of the Participant’s Distribution Option Accounts in accordance with his prior elections.

11.10. Taxes. The Company may make such provisions and take such action as it may deem appropriate for the withholding of any taxes which the Company is required by any law or regulation of any governmental authority, whether Federal, state or local, to withhold in connection with any benefits under the Plan, including, but not limited to, the withholding of appropriate sums from any amount otherwise payable to the Participant (or his Beneficiary). Each Participant, however, shall be responsible for the payment of all individual tax liabilities relating to any such benefits.

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11.11. Unfunded Status of Plan. The Plan is an “unfunded” plan for tax and Employee Retirement Income Security Act purposes. This means that the value of a Participant’s Distribution Option Accounts is based on the value assigned to a hypothetical bookkeeping account, which is invested in hypothetical shares of investments funds available under the Plan. As the nature of the investment fund which forms the “index” or “meter” for the valuation of the bookkeeping account changes, the valuation of the bookkeeping account changes as well. The amount owed to a Participant is based on the value assigned to the bookkeeping account. Brandywine Realty Trust may decide to use a “rabbi trust” to anticipate its potential Plan liabilities, and it may attempt to have
Plan investments mirror the hypothetical investments deemed credited to the bookkeeping accounts. However, the liability to pay the benefits is Brandywine Realty Trusts’, and the assets of the rabbi trust are potentially available to satisfy the claims of non-participant creditors of Brandywine Realty Trust.

11.12. Severability. If any provision of this Plan is held unenforceable, the remainder of the Plan shall continue in full force and effect without regard to such unenforceable provision and shall be applied as though the unenforceable provision were not contained in the Plan.

11.13. Governing Law. The Plan shall be construed in accordance with and governed by the laws of the Commonwealth of Pennsylvania, without reference to the principles of conflict of laws.

11.14. Headings. Headings are inserted in this Plan for convenience of reference only and are to be ignored in the construction of the provisions of the Plan.

11.15. Gender, Singular and Plural. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may require. As the context may require, the singular may read as the plural and the plural as the singular.

11.16. Notice. Any notice or filing required or permitted to be given to the Plan Administrator under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or certified mail, to Brandywine Realty Trust, 401 Plymouth Road, Suite 500, Plymouth Meeting, PA 19462, Attention: Chief Accounting Officer, or to such other entity as the Plan Administrator may designate from time to time. Such notice shall be deemed given as to the date of delivery, or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.

-30-

APPENDIX A

DIVIDENDS

Dividends creditable to deferral amounts and Share Awards invested in the Employer Stock Fund on and after January 1, 2007 shall either be (A) paid in cash as soon as administratively practicable following the dividend payment date if the Participant has made a separate election under an Enrollment Agreement to receive such dividends in cash, or (B) credited to the Participant’s account and invested in an Earnings Crediting Option other than the Employer Stock Fund, as elected by the Participant. The Committee reserves the right, as to the Employer Stock Fund, to prescribe such other rules regarding the manner in which deemed dividends are invested or distributed. The dividend election opportunity, as described in this Appendix A, is intended to constitute a separate deferral arrangement within the meaning of the AJCA.

-31-EXHIBIT 10.1

                        CARD ACTIVATION TECHNOLOGIES INC.
                                STOCK OPTION PLAN

     1.   DEFINITIONS.  For purposes of this CARD ACTIVATION TECHNOLOGIES INC.
STOCK  OPTION  PLAN,  certain  terms  used  herein  are  defined  as  follows:

          1.1     "BOARD"  shall  mean  the  Board  of  Directors of the Company
charged  with  responsibility  of administering the Plan, interpreting the Plan,
and  evaluating  the  performance  of persons performing or requested to perform
services  on  behalf  of  the Company and awarding stock options to such persons
deemed  deserving  of  receiving  additional  compensation  for  their  effort.

          1.2     "CONSULTANTS"  shall  mean  independent contractors and others
not employed by the Company who perform services to advance the interests of the
Company.

          1.3     "DIRECTORS"  shall  mean the Board of Directors of the Company
as  elected  from  time  to  time.

          1.4     "EMPLOYEES"  shall  mean persons in the employ of the Company,
its  parent  or  any  subsidiary,  as officers, department heads, administrative
personnel,  counsel,  and  other  key  employees  of  the  Company.

          1.5     "EXPIRATION  DATE" shall mean the date, specified in an Option
Agreement,  after  which the option can no longer be exercised. This date can be
no  later than ten (10) years after the option is granted. Options granted under
the  Plan can also become unexercisable by forfeiture or termination or lapse in
accordance  with  provisions  of  the  Plan  and/or  Option  Agreement.

          1.6     "INCENTIVE  STOCK  OPTION" shall mean options granted pursuant
to  this  Plan to Employees intended to qualify for tax treatment under Internal
Revenue  Code  Section  422  and  identified in the Stock Option Agreement as an
Incentive  Stock  Option.

          1.7     "NON-STATUTORY  STOCK  OPTION"  shall  mean  options  granted
pursuant  to  this  Plan  to  Employees,  Consultants  and  Directors performing
services  on  behalf of the Company and identified in the Stock Option Agreement
as  a  Non-Statutory  Stock  Option.

          1.8     "OPTION  AGREEMENT"  shall mean the agreement, which describes
and defines the terms and conditions of the option granted and condition for its
exercise,  entered into from time to time between the Company and persons chosen
by  the  Board  to  receive  Stock Options under this Plan. The Option Agreement
shall  be  in  substantially  the  form  of  Exhibit  "1"  hereto.

     2.   PURPOSE. The purpose of this CARD ACTIVATION TECHNOLOGIES INC. STOCK
OPTION  PLAN  (the  "Plan")  is  to  further  the  interests  of CARD ACTIVATION
TECHNOLOGIES INC. (hereinafter called "the Company") by providing incentives for
officers,  department  heads,  administrative  personnel, counsel, and other key
employees of the Company as well as consultants and directors of the Company who
may  be  designated  for  participation  in  the  Plan

                                        1
<PAGE>
and  to provide additional means of attracting and retaining competent personnel
in  responsible  positions.

     3.   ADMINISTRATION.  The  Plan  shall  be  administered  by the Board of
Directors of the Company (or a Committee of the Board of Directors appointed for
that  purpose).  Subject  to  the provisions of the Plan and applicable law, the
Board  is  authorized  to interpret the Plan and to prescribe, amend and rescind
rules  and  regulations  regulating  to  the  Plan  and  to  any options granted
thereunder  and  to make all other determinations necessary or advisable for the
administration  of  the  Plan.

     4.   PARTICIPANTS AND ALLOTMENTS. The Board shall determine and designate
from time to time those Employees of the Company to whom Incentive Stock Options
are  to  be  granted,  and  those  Consultants,  Directors  of  the Company, and
Employees  of  Company to whom Non-Statutory Options are granted and who thereby
become participants in the Plan. The Board shall allot to such participants (the
"Optionees")  options to purchase shares in such amounts as the Board shall from
time  to  time  determine;  PROVIDED  that  the  aggregate  fair  market  value
(determined  as  of  the  time  the option to purchase shares is granted) of the
shares  for  which  any  Employee of the Company may first exercise an Incentive
Stock Option in any calendar year (under this Plan and all other Incentive Stock
Option plans of the Company and/or its parent and subsidiary corporations) shall
not  exceed  $100,000.  No  member  of the Board shall have any right to vote or
decide  upon  any matter relating solely to himself or a member of his immediate
family  or  solely  to any of his rights or benefits (or rights or benefits of a
member  of his immediate family) under the Plan. Participation in the Plan shall
not  confer  any right of continuation of service as an employee of the Company.

     5.   SHARES SUBJECT TO THE PLAN. Under this Plan, the Board may from time
to  time grant options to participants entitling the holders thereof to purchase
shares  of the Company's authorized and unissued Common Stock up to an aggregate
of 1,000,000 shares. Of this aggregate total, 500,000 shares shall be designated
for offers of Incentive Stock Options to Employees and 500,000 for Non-Statutory
Options  for Consultants, Directors, and Employees of the Company. if any option
granted  under  the  Plan  shall terminate or expire unexercised, in whole or in
part,  the  shares so released from option may be made the subject of additional
options  granted  under  the  Plan of the same type as the terminated or expired
option.  The  Company  shall reserve and keep available such number of shares of
stock  as will satisfy the requirements of all outstanding options granted under
the  Plan. if there is any change in the Company's shares of Common Stock, as by
stock  splits,  reverse  stock  splits, stock dividends or recapitalization, the
number  of shares available for option and the shares subject to option shall be
appropriately  adjusted  by  the  Board.

     6.   OPTION  AGREEMENT.  In  making  any determination as to Optionees to
whom  options  shall  be granted and as to the number of shares to be covered by
such  options,  the  Board  shall take into account the duties of the respective
Optionees  who  are  Employees  of  the  Company,  the  present  and  potential
contributions  of  Optionees  to  the  success  of  the  Company,  the period of
Optionee's  service  benefitted the Company, and such other factors as the Board
shall  deem  relevant  in connection with accomplishing the purpose of the Plan.
Each option, whether an Incentive Stock Option or otherwise, shall be subject to
all  terms  and provisions of this Plan and as set forth in the Option Agreement
between  the  Company  and the Optionee receiving the same. The option may be in
such form, not inconsistent with the terms of this Plan, as shall be approved by
the  Board,

                                        2
<PAGE>
including,  but  not  limited  to,  the  following  terms  and  conditions:

          (a)     Options  granted  under  the  Plan  shall  be  exercisable for
periods  not  exceeding  ten  (10)  years  from  the  date  of the grant, unless
terminated  sooner  in  accordance  with  this  Plan  or  the  Option Agreement.

          (b)     Option  Price.  The  option  price or prices shall be the fair
market  value  of  issued  and outstanding shares of stock of the Company at the
date  the option is granted. For the purposes hereof, fair market value shall be
determined  in  good  faith  based  upon  facts  and  circumstances.

     7.   OPTION  PERIOD.  The  term  of this Plan and the period during which
options  may be granted hereunder shall be ten (10) years from the date the Plan
is  approved  by the Board or Shareholders of the Company, whichever is earlier.
No option granted pursuant to the Plan shall be exercisable after the expiration
of  ten  (10) years from the date the option is first granted. No option granted
pursuant  to the Plan to a person then owning more than ten percent (10%) of the
voting  power  of  the  Company's  voting  stock  shall be exercisable after the
expiration  of five (5) years from the date the option is first granted. For the
purposes  of  the  preceding  sentence  (a)  the Optionee shall be considered as
owning the stock owned directly or indirectly by or for himself, the stock which
the  Optionee  may  purchase  under  outstanding  options  and  the stock owned,
directly or indirectly, by or for his brothers and sisters (whether of the whole
or  half  blood), spouse, ancestors, and lineal descendants, and (b) stock owned
directly  or  indirectly, by or for a corporation, partnership, estate, or trust
shall  be  considered as being owned proportionately by or for its shareholders,
partners,  or  beneficiaries. The expiration date stated in the Option Agreement
is  hereinafter  called  the  Expiration  Date.

     8.   CONDITIONS  OF  INCENTIVE  STOCK  OPTION.  Incentive  Stock  Options
granted  pursuant  to  this  Plan  shall be subject to the following conditions:

          (a)     if the employment of the Optionee by the Company is terminated
for any reason other than his death, all unexercised options shall terminate, be
forfeited  and  shall  lapse  immediately.

          (b)     if the Optionee dies while employed by the Company then within
six  months after the date of the Optionee's death, subject to the provisions of
Sections  6(a) and 7 above and the Option Agreement, the option may be exercised
by his estate or by any person who has acquired the Optionee's right to exercise
the option by bequest or inheritance to the extent the option was exercisable as
of  the  date  of  his  death. Upon the expiration of such six-month period, all
unexercised  options  shall  terminate,  be  forfeited  and  shall  lapse.

          (c)     Except as otherwise provided in Section 8(b) above, the option
and  all  rights granted hereunder shall not be transferred by the Optionee, and
may not be assigned, pledged or hypothecated in any way and shall not be subject
to execution, attachment or similar process. Upon any attempt by the Optionee to
transfer  the  option, or to assign, pledge, hypothecate or otherwise dispose of
such  option  or  of  any  rights  granted hereunder, contrary to the provisions
hereof,  or  upon the levy of any attachment or similar process upon such option
or  such  rights,  such  option  and  such

                                        3
<PAGE>
rights  shall immediately become null and void. The option shall be exercisable,
during  the  lifetime  of  the  Optionee,  only  by  the  Optionee.

     9.   CONDITIONS  OF  NON-STATUTORY  OPTION.  Non-Statutory  Stock Options
granted  pursuant  to  this  Plan  shall be subject to the following conditions:

          (a)     If  the Optionee terminates his employment with the company or
ceases  to  perform  services  for  the  benefit of the Company as a Director or
Consultant  performing  services  for  the Company for any reason other than his
death,  all  unexercised  options shall terminate, be forfeited, and shall lapse
immediately.

          (b)     If  the  Optionee  dies  while  employed  by  the  Company  or
performing  services  for the benefit of the Company as a Director or Consultant
then  within  six  (6) months after the date of the Optionee's death, subject to
the provisions of Sections 6(a) and 7 above and the Option Agreement, the option
may  be exercised by his estate or by any person who has acquired the Optionee's
right  to exercise the option by bequest or inheritance to the extent the option
was  exercisable  as  of  the  date  of  his  death. Upon the expiration of such
six-month  period,  all  unexercised  options shall terminate, be forfeited, and
shall  lapse.

          (c)     Except as otherwise provided in Section 9(b) above, the option
and  all  rights granted hereunder shall not be transferred by the Optionee, and
may not be assigned, pledged or hypothecated in any way and shall not be subject
to execution, attachment or similar process. Upon any attempt by the Optionee to
transfer  the  option, or to assign, pledge, hypothecate or otherwise dispose of
such  option  or  of  any  rights  granted hereunder, contrary to the provisions
hereof,  or  upon the levy of any attachment or similar process upon such option
or  such  rights,  such option and such rights shall immediately become null and
void. The option shall be exercisable, during the lifetime of the Optionee, only
by  the  Optionee.

     10.  EXERCISE  OF  OPTIONS.

          (a)     To  exercise  the  option, the Optionee or his successor shall
give  written  notice  to  the  Company's  Treasurer  at the Company's principal
office,  accompanied  by  full  payment  of  the  shares  being purchased and an
Investment  Letter  stating that the shares are purchased for investment and not
with  a  view  to  distribution  in  form  and substance as shown in Exhibit "2"
hereto.  However, this Letter shall not be required if the shares subject to the
option are registered with the Securities and Exchange Commission. If the option
is  exercised by the successor of the Optionee, following his death, proof shall
be  submitted,  satisfactory  to  the  Board,  of  the right of the successor to
exercise  the  option.

          (b)     Shares  of  stock  issued pursuant to this Plan which have not
been  registered  with  the  Securities  and  Exchange Commission shall bear the
following  legend:

     The  securities  represented  by  this stock certificate have not been
     registered  under the Securities Act of 1933 (the "Act") or applicable
     state  securities  law  (the  "State  Acts"),  and  shall not be sold,
     pledged,  hypothecated,  donated  or otherwise transferred (whether or
     not  for  consideration) by the holder except upon the issuance to the
     Corporation  of  a  favorable

                                        4
<PAGE>
     opinion  of  its  counsel  and/or the submission to the Corporation of
     such  other  evidence  as  may  be  satisfactory  to  counsel  for the
     Corporation,  to  the  effect  that  any such transfer shall not be in
     violation  of  the  Act  and  the  State  Acts.

          (c)     The  Company  shall not be required to transfer or deliver any
certificate  or  certificates  for  shares  purchased  upon any exercise of such
option: (i) until after compliance with all then applicable requirements of law;
and  (ii)  prior to admission of such shares to listing on any stock exchange on
which the stock may then be listed. In no event shall the Company be required to
issue  fractional  shares  to  the  Optionee.

     11.  REGISTRATION.  If  the Company shall be advised by its counsel that
shares  of  stock  deliverable upon any exercise of an option are required to be
registered  under  the  Securities Act of 1933, or that the consent of any other
authority  is  required  for  the  issuance  of  same,  the  Company  may effect
registration  or  obtain  consent,  and delivery of shares by the Company may be
deferred  until  registration  is  effected  or  consent  obtained.

     12.  ISSUANCE  OF STOCK. No stock shall be issued until full payment for
such  stock  has  been  made. The Optionee shall have no rights as a shareholder
with  respect  to  optioned  shares  until  the  date of the issuance of a stock
certificate  to  him  for such shares. No adjustment shall be made for dividends
(ordinary  or  extraordinary,  whether in cash, securities or other property) or
distributions  or  other  rights  for which the record date is prior to the date
such  certificate  is  issued,  except  as provided in Sections 5 and 13 hereof.

     13.  CORPORATE  REORGANIZATION.  If  there  shall  be  any  capital
reorganization  or  consolidation  or  merger  of  the  Company  with  another
corporation  or  corporations,  or  any  sale of all or substantially all of the
Company's  properties  and  assets to any other corporation or corporations, the
Company shall take such action as may be necessary to enable Optionee to receive
upon  any  subsequent exercise of their respective options, in whole or in part,
in  lieu  of shares of common stock, securities or other assets as were issuable
or  payable  upon  such reorganization, consolidation, merger or sale in respect
of,  or  m  exchange  for  such  shares  of  common  stock.

     14.  AMENDMENTS  AND  TERMINATION.  The  Board  of  Directors may amend,
suspend,  discontinue or terminate the Plan, but no such action may, without the
consent  of  the  Optionee  alter  or  impair  his option, except as provided in
Section  11.

     This  Plan  has  been  duly  adopted  by  the  Board  of  Directors of CARD
ACTIVATION  TECHNOLOGIES  INC.  on  this  31st  day  of  October,  2006.

                                        CARD ACTIVATION TECHNOLOGIES INC.

[CORPORATE  SEAL]

                                        By: /s/ William P. Williams
                                            --------------------------------
                                                Chief  Executive  Officer

ATTEST:

/s/ William P. Williams
-----------------------------------
Corporate  Secretary

                                        5
<PAGE>
                                   EXHIBIT "1"

                        CARD ACTIVATION TECHNOLOGIES INC.
                             STOCK OPTION AGREEMENT

     THIS AGREEMENT is made this         day of                  , 20   , by and
                                 -------        -----------------    ---
between  CARD ACTVIATION TECHNOLOGIES INC. (hereinafter called the "Company"), a
Nevada  corporation,  and,  (hereinafter  called  the  "Optionee").

                                   WITNESSETH:

WHEREAS,  the  Board of Directors of the Company has adopted a Stock Option Plan
(the  "Plan");  and

WHEREAS,  the  Compensation  Board  of  the  Company  ("the Board") considers it
desirable  and  in  the  Company's  best interests that the Optionee be given an
opportunity to purchase shares of its Common Stock in furtherance of the Plan to
provide  incentive  for  the  Optionee  to
                                           -------------------------------------
or  remain  in  the  employ  of  the  Company  and to promote the success of the
Company.

NOW,  THEREFORE,  in  consideration  of  the  premises, it is agreed as follows:

     1.   Grant  of  Option.  The  Company  hereby  grants to the Optionee the
right,  privilege  and  option to purchase                            (       )
                                           --------------------------  -------
shares,  of  the  Common  Stock  of  the  Company,  at  a  purchase  price  of
                                                 Dollars ($          ) per share
------------------------------------------------           ----------
in  the manner and subject to the conditions hereinafter provided. Such purchase
price  is  not  less than the fair market value of the shares of Common Stock of
the  Company  at  the  time  this  option  is  granted. This [  ] is [  ] is not
intended  to  be  an  Incentive  Stock  Option.

     2.   Period  of  Exercise  of  Option.

          (a)     The  option  will  be  exercisable  for a period of
                                                                      ---------
(     )  years  from the date of the grant. The options granted hereunder may be
 -----
exercised  with  respect  to  no  more  than  the  following  cumulative amounts
(including  any  such  options  previously  exercised):

     Beginning  January  1,  20                             %
                               ----                   ------
     Beginning  January  1,  20                             %
                               ----                   ------
     Beginning  January  1,  20                             %
                               ----                   ------
     Beginning  January  1,  20                             %
                               ----                   ------
     Beginning  January  1,  20                             %
                               ----                   ------
     Beginning  January  1,  20                             %
                               ----                   ------

If  any Options are not exercised by the end of a period of         (    ) years
                                                           --------- ----
from  the  date  of  the  grant,  they  will  lapse.

                                        1
<PAGE>
[__]   If  the option is intended to be an Incentive Stock Option, the Agreement
       includes  the  following:

          (b)     If the employment of the Optionee by the Company is terminated
for  any  reason  other  than  his death, all unexercised portions of the option
shall  terminate,  be  forfeited  and  shall  lapse  immediately.

          (c)     If  the  Optionee  dies  while  employed  by the Company, then
within  six  months  after  the  date  of  the  Optionee's death, subject to the
provisions  of subparagraph (a) above, the option may be exercised by his estate
or by any person who has acquired the Optionee's right to exercise the option by
bequest  or  inheritance to the extent the option was exercisable as of the date
of  his  death.  Upon  the  expiration of such six-month period, all unexercised
options  shall  terminate,  be  forfeited  and  shall  lapse.

[__]    If  the  option  is  intended  to  be  a Non-Statutory Stock Option, the
        Agreement  includes  the  following.

          (b)     If  the Optionee ceases to preform services for the benefit of
Company  as  a  Director or Consultant or terimnates employment with the Company
for  any  reason  other  than  his death, all unexercised portions of the option
shall  terminate,  be  forfeited  and  shall  lapse  immediately.

          (c)     If the Optionee dies while preforming services for the benefit
of  the  Company  as  a Director or Consultant or terminates employment with the
Company,  then within six months after the date of the Optionee's death, subject
to  the provisions of subparagraph (a) above, the option may be exercised by his
estate  or  by  any person who has acquired the Optionee's right to exercise the
option  by bequest or inheritance to the extent the option was exercisable as of
the  date  of  his  death.  Upon  the  expiration  of such six-month period, all
unexercised  options  shall  terminate,  be  forfeited  and  shall  lapse.

     3.   Method  of  Exercise.  In order to exercise the option, the Optionee
must  give  written  notice  to  the  Secretary  of the Company at its corporate
offices.  Said  notice shall be accompanied by full payment for the shares being
purchased;  an  Investment  Letter  containing the statement that the shares are
purchased for investment and not with a view to distribution, in the form of the
letter attached hereto and marked Exhibit "A". If the option is exercised by the
successor  of the Optionee following his death, proof shall also be submitted of
the  right  of  the  successor  to  exercise  the option. Shares of stock issued
pursuant  to  the  option  shall  bear  the  following  legend:

     The  securities  represented  by  this stock certificate have not been
     registered under the Securities Act of 1933 (the "Actt') or applicable
     state  securities  laws  (the  "State  Acts"),  and shall not be sold,
     pledged,  hypothecated,  donated, or otherwise transferred (whether or
     not  for  consideration) by the holder except upon the issuance to the
     Corporation of a favorable opinion of its counsel and/or submission to
     the  Corporation  of  such  other  evidence  as may be satisfactory to
     counsel  for  the  Corporation,  to  the effect that any such transfer
     shall  not  be  in  violation  of  the  Act  and  the  State  Acts.

                                        2
<PAGE>
and  shall  be  subject  to  appropriate stop transfer instructions. The Company
shall not be required to transfer or deliver any certificate or certificates for
shares  purchased  upon  any  such  exercise  of  said  option:  (a) until after
compliance  with  all  then  applicable  requirements  of  law; and (b) prior to
admission of such shares to listing on any stock exchange on which the stock may
then  be  listed.  In no event shall the Company be required to issue fractional
shares  to  the  Optionee.

     4.   Limitation  upon  Exercise.  The  option  is not transferable by the
Optionee  otherwise  than by will or the laws of descent and distribution and is
exercisable,  during  the  lifetime  of  the  Optionee,  only  by  the Optionee.

     5.   Stock  Adjustment. In the event of any change in Common Stock of the
Company  by  reason of a stock split, stock dividend, recapitalization, exchange
of  shares  or  other transaction, the number of shares remaining subject to the
option  and  the  option  price per share shall be appropriately adjusted by the
Board.

     6.   Corporation  Reorganization.  If  there  shall  be  any  capital
reorganization  or  consolidation  or  merger  of  the  Company  with  another
corporation  or  corporations,  or  any  sale  of all or substantially an of the
Company's  properties  and  assets to any other corporation or corporations, the
Company  shall  take  such  action as may be necessary to enable the Optionee to
receive  upon  any  subsequent  exercise of such option, in whole or in part, in
lieu  of  shares of Common Stock, securities or other assets as were issuable or
payable  upon  such reorganization, consolidation, merger or sale in respect of,
or  in  exchange  for  such  shares  of  Common  Stock.

     7.     Rights  of  Shareholder.  Neither  the  Optionee,  his  legal
representative,  nor  other  persons entitled to exercise the option shall be or
have  any  rights  of  a  shareholder  in  the  Company in respect of the shares
issuable  upon  exercise  of  the  option  granted  hereunder,  unless and until
certificates  representing such shares shall have been delivered pursuant to the
terms  hereof.

     8.   Stock  Reserved.  The  Company shall at all times during the term of
this  Agreement  reserve  and keep available such number of shares of its Common
Stock as will be sufficient to satisfy the terms of this Agreement and shall pay
any  original  issue  taxes  on  the  exercise  of  this  option.

     9.   Binding  Effect.  This  Agreement shall be binding upon and inure to
the  benefit  of  any  successor  or  successors  of  the  Company.

                                        3
<PAGE>
     IN  WITNESS  WHEREOF,  the  parties hereto have caused this Agreement to be
executed  the  day  and  year  first  above  written.

                                   CARD ACTIVATION TECHNOLOGIES INC.

[CORPORATE  SEAL]

                                   By:
                                      -------------------------------------
ATTEST:                                     Chief  Executive  Officer

-------------------------
Corporate  Secretary

WITNESS:

                                   By:

-------------------------             -------------------------------------

                                        4

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