Document:

exv10w4

 

Exhibit 10.4

BRANDYWINE REALTY TRUST

INCENTIVE STOCK OPTION

          This is an Incentive Stock Option Award (the “Award”) from Brandywine Realty Trust, a
Maryland real estate investment trust (the “Company”), to                      (“Optionee”)
and is dated April 8, 2008 (the “Date of Grant”). Terms used herein as defined terms and
not defined herein have the meanings assigned to them in the Brandywine Realty Trust Amended and
Restated 1997 Long-Term Incentive Plan, as amended from time to time (the “Plan”).

          1. Definitions. As used herein:

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

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

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

               (d) “Closing” means the closing of the acquisition and sale of the Shares as described
in, and subject to the provisions of, Paragraph 8 hereof.

               (e) “Closing Date” means the date of the Closing.

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

               (g) “Common Share” means a common share of beneficial interest, $.01 par value per
share, of the Company.

               (h) “Committee” means the Committee appointed by the Board in accordance with Section
2 of the Plan, if one is appointed and in existence at the time of reference. If no committee has
been appointed pursuant to Section 2, or if such a committee is not in existence at the time of
reference, “Committee” means the Board.

               (i) “Date of Exercise” means the date on which the notice required by Paragraph 5
hereof is given.

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

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

 

 

               (l) “Expiration Date” means the earliest of the following:

	 	(i)	 	If the Optionee terminates
employment with the Company for any reason other than death,
Disability or for Cause, 5:00 p.m. on the date 90 days
following such termination of employment;
	 
	 	(ii)	 	If the Optionee terminates
employment with the Company because of death or Disability,
5:00 p.m. on the first anniversary of the date the Optionee
terminates employment because of death or Disability;
	 
	 	(iii)	 	If the Optionee terminates
employment with the Company for Cause, 5:00 p.m. on the date
of such termination of employment;
	 
	 	(iv)	 	The close of business on
the date of a Change of Control;
	 
	 	(v)	 	5:00 p.m. on the day before
the tenth anniversary of the Date of Grant.

               (m) “Fair Market Value” means the Fair Market Value of a Share, as determined pursuant
to the Plan.

               (n) “Option” means the option to purchase Shares hereby granted.

               (o) “Option Price” means $20.61 per Share. In the event of any recapitalization,
Share distribution or dividend, Share split or combination, the Option Price shall be equitably and
proportionally adjusted. The Option Price shall also be subject to adjustment pursuant to Section
3(c) of the Plan.

               (p) “Shares” means the                      Common Shares which are the subject of the Option
hereby granted. In the event of any recapitalization, Share distribution or dividend, Share split
or combination, the number of Shares that remain subject to the Option shall be equitably and
proportionally adjusted. The number of Shares that remain subject to the Option shall also be
subject to adjustment pursuant to Section 3(c) of the Plan.

               (q) “Subsidiary” means, with respect to the Company, a subsidiary company, whether now
or hereafter existing, as defined in section 424(f) of the Code.

          2. Grant of Option. Subject to the terms and conditions set forth herein and in the
Plan, the Company hereby grants to the Optionee the Option to purchase any or all of the Shares.

 

 

          3. Time of Exercise of Options.

               (a) Subject to Paragraph 3(b), the Option may be exercised after such time or times as set
forth below, and shall remain exercisable until the Expiration Date, when the right to exercise
shall terminate absolutely:

	 	(i)	 	The Option may be exercised
for one-third of the Shares subject to the Option on or after
the first anniversary of the Date of Grant.
	 
	 	(ii)	 	The Option may be exercised
for an additional one-third of the Shares subject to the
Option on or after the second anniversary of the Date of
Grant.
	 
	 	(iii)	 	The Option may be
exercised for an additional one-third of the Shares subject
to the Option on or after the third anniversary of the Date
of Grant.

Notwithstanding the foregoing, the number of Shares available for exercise as determined under this
Paragraph 3 shall be rounded down to the nearest whole Share. No Shares subject to the Option
shall first become exercisable following the Optionee’s termination of employment.

               (b) Notwithstanding Paragraph 3(a), the Option shall become fully exercisable upon the
earliest of (i) the occurrence of a Change of Control, (ii) the death of the Optionee or (iii) the
Disability of the Optionee. In addition, notwithstanding anything to the contrary set forth in the
Plan, upon or in anticipation of any Change in Control, the Committee may, in its sole and absolute
discretion and without the need for the consent of the Optionee, take one or more of the following
actions contingent upon the occurrence of that Change in Control: (i) cause the Option to become
fully vested and immediately exercisable for a reasonable period in advance of the Change in
Control and, to the extent not exercised prior to that Change in Control, cancel the Option upon
closing of the Change in Control; (ii) cancel the Option, in whole or in part, in exchange for a
substitute option in a manner consistent with the requirements of Treas. Reg. §1.424-1(a) or any
successor rule or regulation (notwithstanding the fact that the original Option was not intended to
satisfy the requirements for treatment as an Incentive Stock Option); or (iii) cancel the Option,
in whole or in part, in exchange for cash and/or other substitute consideration with a value equal
to (A) the number of Shares subject to the Option, multiplied by (B) the difference, if any,
between the Fair Market Value per Share on the date of the Change in Control and the Option Price;
provided, that if the Fair Market Value per Share on the date of the Change in Control does not
exceed the Option Price of the Option, the Committee may cancel the Option without any payment of
consideration therefor. In the discretion of the Committee, any cash or substitute consideration
payable upon cancellation of the Option may be subjected to earn-out, escrow, holdback or similar
arrangements, to the extent such arrangements are applicable to any consideration paid to
shareholders in connection with the Change in Control.

 

 

          4. Payment for Shares. Full payment for Shares purchased upon the exercise of an
Option may be made in cash. In addition, this Option may be exercised through means of a “net
settlement,” whereby the Option Price will be satisfied by cancellation of the Company’s obligation
to issue a number of Common Shares otherwise issuable upon such exercise, which number of Common
Shares will be equal to: (A) the total Option Price payable to acquire the number of Shares as to
which the Option is then being exercised divided by (B) the then current Fair Market Value per
Common Share. The number of Shares actually issuable upon such exercise will then be equal to the
difference between the number of Shares as to which the Option is then being exercised and the
number of Shares described in the preceding sentence. Without limiting the foregoing, payment for
Shares purchased upon the exercise of an Option may, at the election of the Optionee and as the
Committee may, in its discretion, approve, by surrendering Common Shares with an aggregate Fair
Market Value equal to the aggregate Option Price.

          5. Manner of Exercise. The Option shall be exercised by giving written notice of
exercise to:

	 	 	 	Brandywine Realty Trust

555 East Lancaster Avenue

Suite 100

Radnor, PA 19087

Attention: General Counsel

All notices under this agreement shall be deemed to have been given when hand-delivered, telecopied
or transmitted electronically and shall be irrevocable once given.

          6. Nontransferability of Option. The Option may not be transferred or assigned by the
Optionee otherwise than by will or by the laws of descent and distribution, and all Options shall
be exercisable, during the Optionee’s lifetime, only by the Optionee, or, in the event of his
Disability, by his personal representative; and any attempt at assignment or transfer contrary to
the provisions of the Plan or the levy of any execution, attachment or similar process upon the
Option shall be null and void and without effect. Any exercise of the Option by a person other
than the Optionee shall be accompanied by appropriate proofs of the right of such person to
exercise the Option.

          7. Securities Laws. The Committee may from time to time impose any conditions on the
exercise of the Option as it deems necessary or appropriate to comply with the then-existing
requirements of the Securities Act of 1933, as amended, or of the Securities Exchange Act of 1934,
as amended, including Rule 16b-3 (or any similar rule) of the Securities and Exchange Commission.
If the listing, registration or qualification of Shares issuable on the exercise of the Option upon
any securities exchange or under any federal or state law, or the consent or approval of any
governmental regulatory body is necessary as a condition of or in connection with the purchase of
such Shares, the Company shall not be obligated to issue or deliver the certificates (if any)
representing the Shares otherwise issuable on the exercise of the Option unless and until such
listing, registration, qualification, consent or approval shall

 

 

have been effected or obtained. If registration is considered unnecessary by the Company or
its counsel, the Company may cause a legend to be placed on such Shares calling attention to the
fact that they have been acquired for investment and have not been registered.

          8. Issuance of Certificate at Closing; Payment of Cash. Subject to the provisions of
this Paragraph 8, the Closing Date shall occur as promptly as is feasible after the exercise of the
Option. Subject to the provisions of Paragraphs 7 and 9 hereof, a certificate for the Shares
issuable on the exercise of the Option shall be delivered to the Optionee or to his personal
representative, heir or legatee at the Closing, provided that no certificates for Shares
will be delivered to the Optionee or to his personal representative, heir or legatee unless the
Option Price has been paid in full and provided further that the Company may elect to
provide for the issuance and delivery of the Shares via book entry or in uncertificated form.

          9. Rights Prior to Exercise. The Optionee shall not have any right as a shareholder
with respect to any Shares subject to his Options until the Option shall have been exercised in
accordance with the terms of the Plan and this Award and the Optionee shall have paid the full
purchase price for the number of Shares in respect of which the Option was exercised, provided
that in the event that the Optionee’s employment with the Company is terminated for Cause, upon
a determination by the Committee, the Optionee shall automatically forfeit all Shares otherwise
subject to delivery upon exercise of an Option but for which the Company has not yet delivered the
Share certificates or issued the Shares via book entry or in uncertificated form, upon refund by
the Company of the Option Price.

          10. Status of Option; Interpretation. The Option is intended to qualify as an
incentive stock option within the meaning of section 422 of the Code. The interpretation and
construction of any provision of this Option or the Plan made by the Committee shall be final and
conclusive and, insofar as possible, shall be consistent with the intention expressed in this
Paragraph 10.

          11. Option Not to Affect Employment. The Option granted hereunder shall not confer
upon the Optionee any right to continue in the employment of the Company or any Subsidiary.

          12. Miscellaneous.

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

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

          13. Withholding of Taxes. Whenever the Company proposes or is required to deliver or
transfer Shares in connection with the exercise of the Option, the

 

 

Company shall have the right to (a) require the Optionee to remit to the Company an amount in
cash or Common Shares (valued at the then current Fair Market Value) sufficient to satisfy any
federal, state and/or local withholding tax requirements prior to the delivery or transfer of any
certificate or certificates for such Shares or (b) take whatever action it deems necessary to
protect its interests with respect to tax liabilities.

          14. Notice of Sale. The Optionee agrees to promptly notify the Company if the
Optionee disposes of Shares acquired on the exercise of the Option on or before the first
anniversary of the date of exercise as of which the Optionee acquired such Shares. For this
purpose, a disposition includes a sale, exchange, gift or other transfer of legal title to such
Common Shares, other than (a) a transfer following the Optionee’s death to an estate or a transfer
by bequest or inheritance, (b) a pledge or hypothecation or (c) a transfer of ownership into
ownership of the Optionee and another person jointly with right of survivorship.

          IN WITNESS WHEREOF, the Company has granted this Award on the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	BRANDYWINE REALTY TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	TITLE:	 	 	 	 
	 

	 	 	 	 	 	 

 

			
	**	 	This form is being filed pursuant to a compensation arrangement.exv10w5

 

Exhibit 10.5

BRANDYWINE REALTY TRUST

NON-QUALIFIED OPTION

     This is a Non-Qualified Stock Option Award (the “Award”) from Brandywine Realty Trust,
a Maryland real estate investment trust (the “Company”), to ___(“Optionee”)
and is dated April 8 2008 (the “Date of Grant”). Terms used herein as defined terms and
not defined herein have the meanings assigned to them in the Brandywine Realty Trust Amended and
Restated 1997 Long-Term Incentive Plan, as amended from time to time (the “Plan”).

     1. Definitions. As used herein:

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

          (b) “Cause” means “Cause” as defined in the Employment Agreement.

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

          (d) “Closing” means the closing of the acquisition and sale of the Shares as described
in, and subject to the provisions of, Paragraph 8 hereof.

          (e) “Closing Date” means the date of the Closing.

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

          (g) “Common Share” means a common share of beneficial interest, $.01 par value per
share, of the Company.

          (h) “Committee” means the Committee appointed by the Board in accordance with Section
2 of the Plan, if one is appointed and in existence at the time of reference. If no committee has
been appointed pursuant to Section 2, or if such a committee is not in existence at the time of
reference, “Committee” means the Board.

          (i) “Date of Exercise” means the date on which the notice required by Paragraph 5
hereof is given.

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

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

          (l) “Employment Agreement” means the Amended and Restated Employment Agreement between
Grantee and the Company, dated as of ___, as amended from time to time, or any subsequent
employment agreement between Grantee and the Company as in effect at the time of determination.

-1-

 

          (m) “Expiration Date” means the earliest of the following:

	 	(i)	 	If the Optionee terminates
employment with the Company for any reason other than death,
Disability or for Cause, 5:00 p.m. on the date 90 days following
such termination of employment;
	 
	 	(ii)	 	If the Optionee terminates
employment with the Company because of death or Disability, 5:00
p.m. on the first anniversary of the date the Optionee
terminates employment because of death or Disability;
	 
	 	(iii)	 	If the Optionee terminates
employment with the Company for Cause, 5:00 p.m. on the date of
such termination of employment;
	 
	 	(iv)	 	The close of business on the date
of a Change of Control;
	 
	 	(v)	 	5:00 p.m. on the day before the
tenth anniversary of the Date of Grant.

          (n) “Fair Market Value” means the Fair Market Value of a Share, as determined pursuant
to the Plan.

          (o) “Option” means the option to purchase Shares hereby granted.

          (p) “Option Price” means $20.61 per Share. In the event of any recapitalization,
Share distribution or dividend, Share split or combination, the Option Price shall be equitably and
proportionally adjusted. The Option Price shall also be subject to adjustment pursuant to Section
3(c) of the Plan.

          (q) “Resignation for Good Reason” means Resignation for Good Reason as defined in the
Employment Agreement.

          (r) “Shares” means the ___Common Shares which are the subject of the Option
hereby granted. In the event of any recapitalization, Share distribution or dividend, Share split
or combination, the number of Shares that remain subject to the Option shall be equitably and
proportionally adjusted. The number of Shares that remain subject to the Option shall also be
subject to adjustment pursuant to Section 3(c) of the Plan.

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

     2. Grant of Option. Subject to the terms and conditions set forth herein and in the
Plan, the Company hereby grants to the Optionee the Option to purchase any or all of the Shares.

-2-

 

     3. Time of Exercise of Options.

          (a) Subject to Paragraph 3(b), the Option may be exercised after such time or times as set
forth below, and shall remain exercisable until the Expiration Date, when the right to exercise
shall terminate absolutely:

	 	(i)	 	The Option may be exercised for
one-third of the Shares subject to the Option on or after the
first anniversary of the Date of Grant.
	 
	 	(ii)	 	The Option may be exercised for
an additional one-third of the Shares subject to the Option on
or after the second anniversary of the Date of Grant.
	 
	 	(iii)	 	The Option may be exercised for
an additional one-third of the Shares subject to the Option on
or after the third anniversary of the Date of Grant.

Notwithstanding the foregoing, the number of Shares available for exercise as determined under this
Paragraph 3 shall be rounded down to the nearest whole Share. No Shares subject to the Option
shall first become exercisable following the Optionee’s termination of employment.

          (b) Notwithstanding Paragraph 3(a), the Option shall become fully exercisable upon the
earliest of (i) the occurrence of a Change of Control, (ii) the death of the Optionee, (iii) the
Disability of the Optionee or (iv) termination of the Optionee’s employment with the Company
without Cause or resignation of the Optionee employment with the Company that is a [Resignation for
Good Reason] [resignation for Good Reason]. In addition, notwithstanding anything to the contrary
set forth in the Plan, upon or in anticipation of any Change in Control, the Committee may, in its
sole and absolute discretion and without the need for the consent of the Optionee, take one or more
of the following actions contingent upon the occurrence of that Change in Control: (i) cause the
Option to become fully vested and immediately exercisable for a reasonable period in advance of the
Change in Control and, to the extent not exercised prior to that Change in Control, cancel the
Option upon closing of the Change in Control; (ii) cancel the Option, in whole or in part, in
exchange for a substitute option in a manner consistent with the requirements of
Treas. Reg. §1.424-1(a) or any successor rule or regulation (notwithstanding the fact that the
original Option was not intended to satisfy the requirements for treatment as an Incentive Stock
Option); or (iii) cancel the Option, in whole or in part, in exchange for cash and/or other
substitute consideration with a value equal to (A) the number of Shares subject to the Option,
multiplied by (B) the difference, if any, between the Fair Market Value per Share on the date of
the Change in Control and the Option Price; provided, that if the Fair Market Value per Share on
the date of the Change in Control does not exceed the Option Price of the Option, the Committee may
cancel the Option without any payment of consideration therefor. In the discretion of the
Committee, any cash or substitute consideration payable upon cancellation of the Option may be
subjected to earn-out, escrow, holdback or similar arrangements, to the extent such arrangements
are applicable to any consideration paid to shareholders in connection with the Change in Control.

-3-

 

     4. Payment for Shares. Full payment for Shares purchased upon the exercise of an
Option may be made in cash. In addition, this Option may be exercised through means of a “net
settlement,” whereby the Option Price will be satisfied by cancellation of the Company’s obligation
to issue a number of Common Shares otherwise issuable upon such exercise, which number of Common
Shares will be equal to: (A) the total Option Price payable to acquire the number of Shares as to
which the Option is then being exercised divided by (B) the then current Fair Market Value per
Common Share. The number of Shares actually issuable upon such exercise will then be equal to the
difference between the number of Shares as to which the Option is then being exercised and the
number of Shares described in the preceding sentence. Without limiting the foregoing, payment for
Shares purchased upon the exercise of an Option may, at the election of the Optionee and as the
Committee may, in its discretion, approve, by surrendering Common Shares with an aggregate Fair
Market Value equal to the aggregate Option Price.

     5. Manner of Exercise. The Option shall be exercised by giving written notice of
exercise to:

Brandywine Realty Trust

555 East Lancaster Avenue

Suite 100

Radnor, PA 19087

Attention: General Counsel

All notices under this agreement shall be deemed to have been given when hand-delivered, telecopied
or transmitted electronically and shall be irrevocable once given.

     6. Nontransferability of Option. The Option may not be transferred or assigned by the
Optionee otherwise than as and to the extent permitted by Section 5(e) of the Plan; and any attempt
at assignment or transfer contrary to the provisions of the Plan or the levy of any execution,
attachment or similar process upon the Option shall be null and void and without effect. Any
exercise of the Option by a person other than the Optionee shall be accompanied by appropriate
proofs of the right of such person to exercise the Option.

     7. Securities Laws. The Committee may from time to time impose any conditions on the
exercise of the Option as it deems necessary or appropriate to comply with the then-existing
requirements of the Securities Act of 1933, as amended, or of the Securities Exchange Act of 1934,
as amended, including Rule 16b-3 (or any similar rule) of the Securities and Exchange Commission.
If the listing, registration or qualification of Shares issuable on the exercise of the Option upon
any securities exchange or under any federal or state law, or the consent or approval of any
governmental regulatory body is necessary as a condition of or in connection with the purchase of
such Shares, the Company shall not be obligated to issue or deliver the certificates (if any)
representing the Shares otherwise issuable on the exercise of the Option unless and until such
listing, registration, qualification, consent or approval shall have been effected or obtained. If
registration is considered unnecessary by the Company or its counsel, the Company may cause a
legend to be placed on such Shares calling attention to the fact that they have been acquired for
investment and have not been registered.

-4-

 

     8. Issuance of Certificate at Closing; Payment of Cash. Subject to the provisions of
this Paragraph 8, the Closing Date shall occur as promptly as is feasible after the exercise of the
Option. Subject to the provisions of Paragraphs 7 and 9 hereof, a certificate for the Shares
issuable on the exercise of the Option shall be delivered to the Optionee or to his personal
representative, heir or legatee at the Closing, provided that no certificates for Shares
will be delivered to the Optionee or to his personal representative, heir or legatee unless the
Option Price has been paid in full and provided further that the Company may elect to
provide for the issuance and delivery of the Shares via book entry or in uncertificated form.

     9. Rights Prior to Exercise. The Optionee shall not have any right as a shareholder
with respect to any Shares subject to his Options until the Option shall have been exercised in
accordance with the terms of the Plan and this Award and the Optionee shall have paid the full
purchase price for the number of Shares in respect of which the Option was exercised, provided
that in the event that the Optionee’s employment with the Company is terminated for Cause, upon
a determination by the Committee, the Optionee shall automatically forfeit all Shares otherwise
subject to delivery upon exercise of an Option but for which the Company has not yet delivered the
Share certificates or issued the Shares via book entry or in uncertificated form, upon refund by
the Company of the Option Price.

     10. Status of Option; Interpretation. The Option is intended to be a non-qualified
stock option. Accordingly, it is intended that the transfer of property pursuant to the exercise
of the Option shall be subject to federal income tax in accordance with section 83 of the Code.
The Option is not intended to qualify as an incentive stock option within the meaning of section
422 of the Code. The interpretation and construction of any provision of this Option or the Plan
made by the Committee shall be final and conclusive and, insofar as possible, shall be consistent
with the intention expressed in this Paragraph 10.

     11. Option Not to Affect Employment. The Option granted hereunder shall not confer
upon the Optionee any right to continue in the employment of the Company or any Subsidiary.

     12. Miscellaneous.

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

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

     13. Withholding of Taxes. Whenever the Company proposes or is required to deliver or
transfer Shares in connection with the exercise of the Option, the Company shall have the right to
(a) require the Optionee to remit to the Company an amount in cash or Common Shares (valued at the
then current Fair Market Value) sufficient to satisfy any federal, state and/or local withholding
tax requirements prior to the delivery or transfer of any certificate or

-5-

 

certificates for such Shares or (b) take whatever action it deems necessary to protect its
interests with respect to tax liabilities.

     IN WITNESS WHEREOF, the Company has granted this Award on the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	BRANDYWINE REALTY TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 
	 	 
	 

	 	TITLE:	 	 	 	 

-6-

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