Document:

exv10w4

Exhibit 10.4

General Form

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 1, 2009 (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 a “Change of Control” as defined in the Plan; provided
that if the Change in Control arises from a transaction described in clause (ii)(A) of the
definition of “Change in Control” in the Plan, then a Change of Control shall occur hereunder on
the date of the closing or effectiveness of such transaction.

               (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 $2.91 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 if, as and to the extent determined by the Committee in its sole discretion.

               (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 if, as and to the extent determined by the Committee in its sole
discretion. The number of Shares that remain subject to the Option shall also be subject to
adjustment pursuant to Section 3(c) of the Plan if, as and to the extent determined by the
Committee in its sole discretion.

               (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, 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.

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          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 [          ] of the Shares subject to the Option on or after the
first anniversary of the Date of Grant. [Note: because the
shares underlying the ISO will vest on the third anniversary of
the Date of Grant, a “compensating adjustment” will be made to
the vesting schedule under this Option so that this option and
the ISO, when combined, provide for equal annual vesting over
three years. For example, if 100 options are awarded in total
(with 20 of the options being the ISO that vest entirely on the
third anniversary and with 80 remaining options being under this
Option document), then the vesting schedule under this Option
document would be 33 on the first anniversary; 33 on the second
anniversary; and 33 on the third anniversary.]
	 
	 	(ii)	 	The Option may be exercised for
an additional [          ] 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 [          ] 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

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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 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

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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 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.

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               (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.

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

	 	 	 	 	 
	 	BRANDYWINE REALTY TRUST

 	 
	 	BY:  	 	 
	 	 	TITLE: 	 	 
	 	 	 	 

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Form for CEO/CFO

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 [Gerard H. Sweeney] [Howard M.
Sipzner] (“Optionee”) and is dated April 1, 2009 (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 a “Change of Control” as defined in the Plan; provided
that if the Change in Control arises from a transaction described in clause (ii)(A) of the
definition of “Change in Control” in the Plan, then a Change of Control shall occur hereunder on
the date of the closing or effectiveness of such transaction.

               (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.

               (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 $2.91 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 if, as and to the extent determined by the Committee in its sole discretion.

               (q) “Resignation for Good Reason” means [“Resignation for Good Reason"] [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

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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.

          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 [          ] of the Shares subject to the Option on or after the
first anniversary of the Date of Grant. [Note: because the
shares underlying the ISO will vest on the third anniversary of
the Date of Grant, a “compensating adjustment” will be made to
the vesting schedule under this Option so that this option and
the ISO, when combined, provide for equal annual vesting over
three years. For example, if 100 options are awarded in total
(with 20 of the options being the ISO that vest entirely on the
third anniversary and with 80 remaining options being under this
Option document), then the vesting schedule under this Option
document would be 33 on the first anniversary; 33 on the second
anniversary; and 33 on the third anniversary.]
	 
	 	(ii)	 	The Option may be exercised for
an additional [          ] 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 [          ] 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

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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 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

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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 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.

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          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.

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

	 	 	 	 	 
	 	BRANDYWINE REALTY TRUST

 	 
	 	BY:  	 	 
	 	 	TITLE: 	 	 
	 	 	 	 
	 

-6-exv10w5

EXHIBIT 10.5

BRANDYWINE REALTY TRUST|

2009-2011 RESTRICTED PERFORMANCE SHARE UNIT PROGRAM

(Established under the Brandywine Realty Trust Amended and Restated 1997 Long-Term Incentive Plan)

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 
	 	 	 	 
	1.	 	Purposes
	 	 	1	 
	2.	 	Definitions
	 	 	1	 
	3.	 	Award Agreement
	 	 	3	 
	4.	 	Performance Goal; Delivery of Shares
	 	 	3	 
	5.	 	Beneficiary Designation
	 	 	5	 
	6.	 	Delivery to Guardian
	 	 	6	 
	7.	 	Source of Shares
	 	 	6	 
	8.	 	Capital Adjustments
	 	 	6	 
	9.	 	Tax Withholding; Securities Law Compliance
	 	 	6	 
	10.	 	Administration
	 	 	6	 
	11.	 	Amendment and Termination
	 	 	6	 
	12.	 	Headings
	 	 	6	 
	13.	 	Incorporation of Plan by Reference
	 	 	6	 
	 	 	 
	 	 	 	 
	APPENDIX A	 	 	A-1	 
	 	 	 
	 	 	 	 
	APPENDIX B	 	 	B-1	 
	 	 	 
	 	 	 	 
	APPENDIX C	 	 	C-1	 

 

 

BRANDYWINE REALTY TRUST

2009-2011 RESTRICTED PERFORMANCE SHARE UNIT PROGRAM

(Established under the Brandywine Realty Trust

Amended and Restated 1997 Long-Term Incentive
Plan)

PREAMBLE

          WHEREAS, Brandywine Realty Trust (the “Trust”) established, and its shareholders approved, the
Brandywine Realty Trust Amended and Restated 1997 Long-Term Incentive Plan (the “Plan”), primarily
in order to award equity and equity-based benefits to officers, employees and Trustees of the Trust
and its Subsidiaries (as defined in the Plan);

          WHEREAS, one kind of an equity-based benefit that can be awarded under the Plan is a
“Performance Share,” which entitles the recipient to receive Shares, without payment, following the
attainment of designated performance goals;

          WHEREAS, the Trust’s Compensation Committee (the “Committee”) is responsible for the
administration of the Plan and may, pursuant to the powers granted to it thereunder, adopt rules
and regulations for the administration of the Plan and determine the terms and conditions of each
award granted thereunder;

          WHEREAS, the Committee desires to establish a program for the 2009 through 2011 period under
the Plan for the benefit of certain officers of the Trust and Subsidiaries whereby such officers
would receive Performance Shares under the Plan, based on the extent to which the Trust attains the
corporate goal set forth in the program; and

          WHEREAS, the Committee established in writing the objective performance goals for use under
the program, within the meaning of Treas. Reg. §1.162-27(e)(2)(i), in its March 17, 2009 meeting;

          NOW, THEREFORE, effective as of January 1, 2009, the Brandywine Realty Trust 2009-2011
Restricted Performance Share Unit Program is hereby adopted (under the Plan) by the Committee, with
the following terms and conditions:

     1. Purposes. The purposes of the Program are to motivate certain officers of the Trust to
achieve challenging goals for the Trust that reflect value creation for shareholders, and to focus
the attention of the eligible officers on an important financial indicator of success of the Trust
and of other companies in the same business as the Trust.

     2. Definitions.

          (a) “Award” means an award of Restricted Performance Share Units to a Participant.

          (b) “Award Agreement” means a written document evidencing the grant to a Participant of an
Award.

          (c) “Base Units” means the number of Restricted Performance Share Units set forth in the Award
Agreement (increased by any additional Restricted Performance Share Units “purchased” pursuant to
Section 4(e) hereof) by which the number of Shares that may be delivered to a Participant is
measured.

          (d) “Board” means the Board of Trustees of the Trust.

          (e) “Business Combination” means a transaction described in clause (ii)(A) of the definition
of “Change in Control.”

 

 

          (f) “Change in Control” means “Change in Control” as such term is defined in a Participant’s
Employment Agreement or, if the Participant is not a party to an Employment Agreement, then as
defined in the Plan.

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

          (h) “Committee” means the Compensation Committee of the Board, which Committee has developed
the Program and has the responsibility to administer the Program under Section 2 of the Plan and
Section 10 hereof.

          (i) “Corporate Goal” means the specific performance goal, set forth in Section 4(a) hereof,
which must be achieved in order for a Participant to receive Shares under an Award.

          (j) “DER” means a dividend equivalent right—i.e., an award that entitles the recipient to
receive a benefit in lieu of cash or non-cash dividends that would be payable on any or all Shares
subject to another award granted to the Participant under the Plan, or that would be payable on a
number of notional Shares unrelated to another award, in either case had such Shares been
outstanding.

          (k) “Disability Termination” means the termination of a Participant’s employment under the
disability provisions of the Participant’s Employment Agreement or, if the Participant is not a
party to an Employment Agreement, then as a result of a “Disability” as defined in the Plan.

          (l) “Effective Date” means January 1, 2009.

          (m) “Employer” means, collectively and individually (as applicable), the Trust and any
Subsidiary.

          (n) “Employment Agreement” means the written agreement entered into by a Participant and an
Employer (if any) setting forth the terms and conditions of the Participant’s employment, as
amended at any applicable time.

          (o) “Measurement Period” means the period beginning on the Effective Date and ending on the
earlier of (i) December 31, 2011; (ii) the date of a Change in Control (provided that, if the
Change in Control arises from a Business Combination, the Measurement Period shall end on the date
of the closing or effectiveness of the Business Combination, as applicable); or (iii) with respect
to a Participant whose employment terminates on account of death or Disability, as provided in
Section 4(c).

          (p) “Participant” means each individual who has received an Award under the Program.

          (q) “Plan” means the Brandywine Realty Trust Amended and Restated 1997 Long-Term Incentive
Plan, as it may be amended from time to time.

          (r) “Program” means the Brandywine Realty Trust 2009-2011 Restricted Performance Share Unit
Program (established under the Plan), as it may be amended from time to time.

          (s) “Restricted Performance Share Unit” or “RSU” means an Award of a “Performance Share,” as
such term is defined in the Plan.

          (t) “Shares” means “Shares” as such term is defined in the Plan.

          (u) “Subsidiary” has the meaning provided in the Plan.

          (v) “Trust” means Brandywine Realty Trust, a Maryland real estate investment trust.

          (w) “Trustee” means a member of the Board.

-2-

 

     3. Award Agreement. Each Participant shall be issued an Award Agreement setting forth the
initial number of Base Units awarded to the Participant and entitling the Participant to receive
the number of Shares determined under Section 4 hereof based on the extent to which the Corporate
Goal is achieved. Such Base Units shall be subject to the adjustments described in Section 8
hereof. Each Award Agreement and the Shares which may be delivered thereunder are subject to the
terms of this Program and the terms of the Plan.

     4. Performance Goal; Delivery of Shares.

          (a) If, for the Measurement Period, the Trust’s performance, based on its “TRS” (as defined
below), equals or exceeds the “Threshold” (as defined below), then the Trust shall deliver to each
Participant the number of Shares (rounded down to the nearest whole number of Shares) determined by
first multiplying the whole percentile (expressed as a percentage equal to the percentile rounded
up for fractions of one-half or greater) at which the Trust’s TRS for the Measurement Period places
the Trust among the component members (excluding the Trust) of the “MSCI US REIT Index” (as defined
below) for the Measurement Period, each ranked pursuant to such TRS, by two, and then multiplying
that product by the Participant’s Base Units; provided, however, that: (i) if the Trust’s TRS
places the Trust at or above the 75th percentile among the component members (excluding the Trust)
of the MSCI US REIT Index at the end of the Measurement Period (ranked based upon each such
member’s TRS for the Measurement Period) then the number of Shares that will be delivered shall
equal 200% of the Participant’s Base Units and (ii) if the Trust’s TRS places the Trust above the
50th percentile and below the 75th percentile among the component members (excluding the
Trust) of the MSCI US REIT Index at the end of the Measurement Period (ranked based upon each such
member’s TRS for the Measurement Period) then the number of Shares that will be delivered shall
equal a percentage of the Participant’s Base Units, with such percentage derived through a
straight-line interpolation with a deemed minimum percentage of 100% at the 50th
percentile and a deemed maximum percentage of 200% at the 75th percentile. Accordingly,
for example, if the Trust’s TRS places the Trust at the 62.5th percentile (i.e., the
mid-point between the 50th and 75th percentiles), then the percentage to be
applied to the Participant’s Base Units would be 150%. Notwithstanding the preceding sentence,
Shares will be delivered under the Program to the extent that Shares remain available under the
Plan; and if the total number of Shares to be delivered exceeds the number of Shares available
under the Plan, then the number of Shares for each Participant will be reduced on a pro rata basis
based on each individual Participant’s Base Units as compared to the total of all Participants’
Base Units. If, for the Measurement Period, the Trust’s performance, based on its TRS, does not
equal or exceed the Threshold, the Trust shall not deliver any Shares to the Participants. Also,
except as provided in subsection (c) below, a Participant must be employed by an Employer on the
last day of the Measurement Period in order to receive any Shares under this Program. See
Appendix A attached hereto for examples illustrating the operation of this Section.

          (b) Definitions for this Section. The following terms shall be defined as set forth
below:

               (1) “MSCI US REIT Index” means the MSCI US REIT Index’s gross index (as it may be renamed from
time to time) or, in the event such index shall cease to be published, such other index as the
Committee shall determine to be comparable thereto.

               (2) “Share Value” means, as applicable and except as provided in the following sentence, the
average of the closing prices of one Share on the New York Stock Exchange (the “NYSE”) (or, if not
then listed on the NYSE, on the principal market or quotation system on which Shares are then
traded) for (i) the 60 days on which Shares were traded prior to the Effective Date (for the value
of a Share on the Effective Date); or (ii) the 60 days on which Shares were traded prior to and
including the last day of the Measurement Period (for the value of a Share on the last day of the
Measurement Period); provided that for purposes of Section 4(e) below and the “purchase” of
additional RSUs thereunder, “Share Value” means the closing price of one Share on the NYSE (or, if
not then listed on the NYSE, on the principal market or quotation system on which Shares are then
traded) on the applicable dividend payment date. In the event of a Business Combination approved
by the shareholders of the Trust on or prior to December 31, 2011, Share Value shall mean the final
price per Share agreed upon by the parties to the Business Combination.

               (3) “Threshold” means that, for the Measurement Period, the Trust’s TRS places the Trust at
least at the 25th percentile among the component members (excluding the Trust) of the MSCI US REIT

-3-

 

Index at the end of the Measurement Period (ranked based upon each such member’s TRS for the
Measurement Period).

               (4) “TRS” means total return to shareholders for the Measurement Period for the Trust and for
the other component members of the MSCI US REIT Index (i.e., those component members used for
purposes of compiling the MSCI US REIT Index as of the first day of the Measurement Period and that
remain publicly held companies as of the last day of the Measurement Period, whether or not they
are still included in the MSCI US REIT Index on such last day).

          (c) Termination of Employment. Upon a Participant’s termination of employment on or
prior to the last day of the Measurement Period, the following shall occur:

               (1) Termination on Account of Disability or Death. If, on or prior to the last day of
the Measurement Period, (i) the Participant incurs a Disability Termination, or (ii) the
Participant dies, then the Participant (or the Participant’s beneficiary(ies), if applicable) shall
be eligible to receive Shares (if any) under the Program as if the Measurement Period ended on the
last day of the month in which termination or death occurred and as though the Participant had
remained employed by the Employer through such date.

               (2) Termination for Any Other Reason. If, on or prior to the last day of the
Measurement Period, the Participant’s employment with the Employer terminates for any reason other
than a reason described in paragraph (1) above, the Participant shall forfeit all of the Base Units
(and all of the Shares that may have become deliverable with respect to such Base Units) subject
to the RSUs the Participant was granted under the Program.

          (d) Determination of Performance; Share Delivery. Within 30 days after the end of the
Measurement Period, the Committee shall provide each Participant (or in the case of termination of
a Participant covered in Section 4(c), to the affected Participant or his or her legal
representative) with a written determination of whether the Trust did or did not attain the
Corporate Goal for the applicable Measurement Period (and, if applicable, the extent to which the
Corporate Goal was attained) and the calculations used to make such determination. If Shares are
to be delivered under the Program, they shall be delivered to Participants on March 1, 2012 (unless
a Participant elects otherwise pursuant to subsection (f) below) or, if a Change in Control occurs
before January 1, 2012, on the fifth day after the last day of the Measurement Period ending on
(or, if applicable, after) the Change in Control or, in the case of termination of a Participant
covered in Section 4(c), on or before the thirtieth day after the date of termination of the
Participant.

          (e) DERs. Participants shall be awarded DERs with respect to their initial number of
Base Units. Each DER will be expressed as a specific dollar amount (the “Dollar Amount”) equal to
the dollar amount of the dividend paid on an actual Share on a specific date (the “Dividend Date”)
multiplied by the Participant’s initial number of Base Units. Without limiting Section 8, the
dollar amount of any non-cash dividends shall be determined by the Compensation Committee in its
discretion. Until the end of the Measurement Period, the Committee will apply the Dollar Amount to
“purchase” a number of additional RSUs equal to the Dollar Amount divided by the Share Value. The
delivery of Shares under such additional RSUs shall also be subject to the attainment of the
Corporate Goal set forth in subsection (a) above. DERs shall also be awarded on such additional
RSUs and applied in the same manner (thereby increasing the Participant’s Base Units on a
cumulative basis). RSUs deemed purchased with DERs hereunder may be whole or fractional units.

          Participants who make a deferral election under subsection (f) below shall also be awarded
DERs under the Plan with respect to their deferred Shares. Each such DER will be expressed as a
Dollar Amount equal to the dollar amount of the dividend paid on an actual Share on a Dividend
Date during the deferral period multiplied by the number of Shares still deferred by the
Participant as of the Dividend Date. The Committee will apply the Dollar Amount to “purchase”
notional shares (on which DERs thereafter will also be awarded and applied in the same manner) at
the closing price of a Share on the Dividend Date. Notional shares deemed purchased with DERs
hereunder may be whole or fractional shares. DERs expressed as a Dollar Amount will continue to
be applied to “purchase” notional shares on Dividend Dates until all of the Participant’s deferred
Shares are delivered to the
Participant (or to his or her beneficiary(ies), if applicable), as elected in his or her
deferral election agreement. A

-4-

 

Participant’s notional shares “purchased” with DERs awarded with
respect to his or her deferred Shares shall be 100% vested at all times.

          The Trust shall establish a bookkeeping account (the “DER Account”) for each such Participant
and credit to such account the number of whole and fractional additional RSUs and notional shares
deemed purchased with the Dollar Amounts. The Participant’s additional RSUs and notional shares
shall be subject to the adjustments described in Section 8 hereof. All whole additional RSUs (for
which Shares become deliverable under this Section) and whole notional shares credited to a
Participant’s DER Account shall be replaced by issued Shares on a one-to-one basis on the delivery
date referred to in subsection (d) above, and the fractional additional RSUs (for which Shares
become deliverable under this Section) and fractional notional shares credited to a Participant’s
DER Account shall be aggregated and replaced by issued Shares (and with cash in lieu of a
fractional Share) based on the closing price of a Share on the replacement date, and delivered to
the Participant (or to his or her beneficiary(ies), if applicable) on the date the associated
Shares are delivered to the Participant.

          (f) Elective Deferrals. Rights granted under the Program shall be treated as “Share
Awards” and as “Performance-Based Compensation” as defined in the Brandywine Realty Trust Amended
and Restated Deferred Compensation Plan (the “Deferred Compensation Plan”). Accordingly, a
Participant may elect to defer receipt of Shares issuable under the Program under the rules of the
Deferred Compensation Plan, subject to the following limitations. A Participant may elect to defer
the receipt (and the Trust shall defer issuance) of all or a portion of the Shares that may become
deliverable under the Program, until, as specified in the Participant’s deferral election
agreement, (i) the Participant’s separation from service (within the meaning of Treasury Regulation
§ 1.409A-1(h) (or any successor regulation) from the Trust’s controlled group of entities and/or
(ii) a date chosen by the Participant, provided that if Shares become deliverable under the Program
on account of a Change in Control, the Shares shall be deliverable as provided in this subsection
(f) below. The Participant may receive Shares credited to the Participant’s Deferred Compensation
Plan Account upon the occurrence of an “unforeseeable emergency,” as defined in section
409A(a)(2)(B)(ii) of the Code, to the extent not prohibited by the rules of the Deferred
Compensation Plan, such section of the Code and regulations issued thereunder. If a Change in
Control or the Participant’s death occurs during the deferral period, the Participant’s Shares (and
cash attributable to DERs) shall be delivered in a single sum to the Participant or to the
Participant’s beneficiary(ies) (as applicable) on the 30th day after the Change in Control
(provided that, if the Change in Control arises from a Business Combination, the Change in Control
shall be deemed to occur on the date of the closing or effectiveness of the Business Combination,
as applicable) or the Participant’s death (as applicable).

          A Participant’s deferral election agreement must be submitted to the Committee no later than
June 30, 2011 in order to be effective; otherwise, Shares (and cash attributable to DERs)
deliverable to the Participant, if any, will be delivered on March 1, 2012. Unless the delivery of
deferred Shares is occasioned by either of the events described in the last sentence of the
preceding paragraph, if deferred Shares are to be delivered to a Participant who is a “specified
employee,” as defined in section 409A(a)(2)(B)(i) of the Code, upon his or her separation from
service from the Trust’s controlled group of entities, the Trust shall issue and deliver such
deferred Shares (and cash attributable to DERs) on the date that is six months after the date of
his or her separation from service. A deferral election agreement shall be substantially in the
form set forth in Appendix B attached hereto.

          The Committee shall administer the delivery of Shares (and cash attributable to DERs) under an
election made pursuant to this subsection (f) and the underlying deferral election agreement in
accordance with the Deferred Compensation Plan, section 409A of the Code and regulations and other
guidance issued thereunder.

     5. Beneficiary Designation.

          (a) Each Participant shall designate the person(s) as the beneficiary(ies) to whom the
Participant’s Shares shall be delivered in the event of the Participant’s death prior to the
delivery of the Shares to him or her. Each beneficiary designation shall be substantially in the
form set forth in Appendix C attached hereto and shall be effective only when filed with
the Committee during the Participant’s lifetime.

          (b) Any beneficiary designation may be changed by a Participant without the consent of any
previously designated beneficiary or any other person by the filing of a new beneficiary
designation with the Committee. The filing of a new beneficiary designation shall cancel all
beneficiary designations previously filed.

-5-

 

          (c) If any Participant fails to designate a beneficiary in the manner provided above, or if
the beneficiary designated by a Participant predeceases the Participant, the Committee shall direct
such Participant’s Shares to be delivered to the Participant’s surviving spouse or, if the
Participant has no surviving spouse, then to the Participant’s estate.

     6. Delivery to Guardian. If Shares are issuable under this Program to a minor, a person
declared incompetent, or a person incapable of handling the disposition of property, the Committee
may direct the delivery of the Shares to the guardian, legal representative, or person having the
care and custody of the minor, incompetent or incapable person. The Committee may require proof of
incompetence, minority, incapacity or guardianship as the Committee may deem appropriate prior to
the delivery. The delivery shall completely discharge the Committee, the Trustees and the Employer
from all liability with respect to the Shares delivered.

     7. Source of Shares. This Program shall be unfunded, and the delivery of Shares shall be
pursuant to the Plan. Each Participant and beneficiary shall be a general and unsecured creditor
of the Employer to the extent of the Shares determined hereunder, and the Participant shall have no
right, title or interest in any specific asset that the Employer may set aside, earmark or identify
as reserved for the delivery of Shares under the Program. The Employer’s obligation under the
Program shall be merely that of an unfunded and unsecured promise to deliver Shares in the future,
provided the Corporate Goal is met.

     8. Capital Adjustments. Calculations required under the Program, the number of Base Units
awarded under the Program, and the number of Shares that may be delivered under the Program shall
be adjusted to reflect any increase or decrease in the number of issued Shares resulting from a
subdivision (share-split), consolidation (reverse split), share dividend, or other change in the
capitalization of the Trust during the Measurement Period.

     9. Tax Withholding; Securities Law Compliance. The delivery of Shares (and cash, if
applicable) to a Participant or beneficiary under this Program shall be subject to applicable tax
withholding pursuant to the Plan. The delivery of Shares to a Participant or beneficiary under
this Program and the resale of any such Shares shall be subject to applicable compliance with
applicable federal and state securities laws.

     10. Administration. This Program shall be administered by the Committee pursuant to the
powers granted to it in Section 2 of the Plan.

     11. Amendment and Termination. The Committee reserves the right to amend the Program, by
written resolution, at any time and from time to time in any fashion, provided any such amendment
does not conflict with the terms of the Plan, and to terminate it at will. However, no amendment
or termination of the Program shall adversely affect any Award Agreement already issued under the
Program without the written consent of the affected Participant(s).

     12. Headings. The headings of the Sections and subsections of the Program are for reference only. In the
event of a conflict between a heading and the content of a Section or subsection, the content of
the Section or subsection shall control.

     13. Incorporation of Plan by Reference. Because the Program is established under the Plan
in order to provide for, and determine the terms and conditions of, the granting of certain Awards
thereunder, the terms and conditions of the Plan are hereby incorporated by reference and made a
part of this Program. If any terms of the Program conflict with the terms of the Plan, the terms
of the Plan shall control.

-6-

 

APPENDIX A

BRANDYWINE REALTY TRUST

2009-2011 RESTRICTED PERFORMANCE SHARE UNIT PROGRAM

(Established under the Brandywine Realty Trust Amended and Restated 1997 Long-Term Incentive Plan)

EXAMPLES*

Example 1. Full Measurement Period

Executive A is a participant in the Brandywine Realty Trust 2009-2011 Restricted Performance Share
Unit Program (the “Program”). The Share Value (as defined in the Program) of a common share of
beneficial interest (a “Share”) in the “Trust” (as defined in the Program) on January 1, 2009 is
$7, and the price of a Share on December 31, 2011 is $11. For the three-year period beginning
January 1, 2009 and ending December 31, 2011 (the “Measurement Period”), dividends total $3.6 per
Share (and are paid in an equal amount on a quarterly basis — i.e., $.30 dividend per Share per
quarter).

Total return to shareholders (“TRS”) on one Share (expressed as a percentage) for the Trust over
the Measurement Period, as calculated by the Trust or by a third party selected by the “Committee”
(as defined in the Program), is the following:

	 	 	 	 	 
	12/31/11 Value of One Share
	 	$	11	 
	+ Dividends over Measurement Period on One Share
	 	 	+3.6	 
	 
	 	 	 
	 
	 	$	14.6	 
	Divided by 1/1/09 Value of One Share
	 	 	/7	 
	 
	 	 	 
	 
	 	 	2.085	 
	 
	 	 	 	 
	TRS
	 	 	108.5	%

Participant A receives a Restricted Performance Share Unit award for 250 “Base Units” (as defined
in the Program). Participant A also receives “DERs” (as defined in the Program) on his Base Units,
such that his total number of Base Units on December 31, 2011 is 380.60, calculated as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate	 	Deemed	 	 	 	 	 	Additional RSUs
	Date	 	Base Units	 	Dividend	 	Share Price	 	“Purchased”
	1/1/09

	 	 	250	 	 	 	—	 	 	 	—	 	 	 	—	 
	3/15/09

	 	 	250	 	 	$	75	 	 	$	6	 	 	 	12.5	 
	6/15/09

	 	 	262.5	 	 	$	78.75	 	 	$	7	 	 	 	11.3	 
	9/15/09

	 	 	273.8	 	 	$	82.14	 	 	$	7	 	 	 	11.7	 
	12/15/09

	 	 	285.5	 	 	$	85.65	 	 	$	8	 	 	 	10.7	 
	3/15/10

	 	 	296.2	 	 	$	88.86	 	 	$	8	 	 	 	11.1	 
	6/15/10

	 	 	307.3	 	 	$	92.19	 	 	$	9	 	 	 	10.2	 
	9/15/10
	 	 	317.5	 	 	$	95.25	 	 	$	10	 	 	 	9.5	 

 

			
	*	 	The examples set forth in this Appendix A (including
the $7.00 starting share price) are illustrative only and are not intended to
be precise or definitive. For example, they do not show the full calculation of
“TRS” (as defined below) because, for ease of explanation, the calculation does
not reflect that each cash dividend paid during the “Measurement Period” (as
defined below) is deemed to be reinvested in a fractional notional share of the
“Trust” (as defined below). When actually calculating TRS, each cash dividend
will generally be deemed to be reinvested in a fractional notional share. There
may be other immaterial differences between the way calculations are performed
in these examples and the way the Trust or a third party engaged by the
“Committee” (as defined below) would perform the calculations.

A-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate	 	Deemed	 	 	 	 	 	Additional RSUs
	Date	 	Base Units	 	Dividend	 	Share Price	 	“Purchased”
	12/15/10
	 	 	327.0	 	 	$	98.10	 	 	$	9	 	 	 	10.9	 
	3/15/11
	 	 	337.9	 	 	$	101.37	 	 	$	9	 	 	 	11.3	 
	6/15/11
	 	 	349.2	 	 	$	104.76	 	 	$	10	 	 	 	10.5	 
	9/15/11
	 	 	359.7	 	 	$	107.91	 	 	$	10	 	 	 	10.8	 
	12/15/11
	 	 	370.5	 	 	$	111.15	 	 	$	11	 	 	 	10.1	 
	12/31/11
	 	 	380.6	 	 	 	—	 	 	 	—	 	 	 	—	 

If, as of December 31, 2011, the Trust’s TRS places the Trust at the percentiles listed below among
the component members of the “MSCI US REIT Index” (as defined in the Program) (the “Index”), ranked
pursuant to each member’s TRS over the Measurement Period, as calculated by the Trust or by a third
party selected by the Committee, Participant A would receive the following number of Shares (with
fractional Shares settled in cash):

	 	 	 	 	 	 	 	 	 
	 	 	Percent of	 	 
	 	 	Base Units	 	 
	Percentile	 	Deliverable in Shares	 	Shares
	Below 25th
	 	 	0	%	 	 	0	 
	25th
	 	 	50	%	 	190 (plus cash for .3 Share)
	40th
	 	 	80	%	 	304 (plus cash for .5 Share)
	50th
	 	 	100	%	 	380 (plus cash for .6 Share)
	62.5th
	 	 	150	%	 	570 (plus cash for .9 Share)
	75th or above
	 	 	200	%	 	761 (plus cash for .2 Share)

Example 2. Change in Control

Assume the same facts as in Example 1, except that a “Change in Control” (as defined in the
Program) occurs when the Trust’s shareholders approve a “Business Combination” (as defined in the
Program), which becomes effective on October 15, 2010. From the period between January 1, 2009 and
October 15, 2010 inclusive, total dividends of $2.10 per Share have been paid. Because of the
Change in Control, the Measurement Period ends on October 15, 2010, rather than December 31, 2011.
The final price per Share agreed upon by the parties to the Change in Control is $9.

TRS on one Share (expressed as a percentage) over the Measurement Period (ending October 15, 2010),
as calculated by the Trust or by a third party selected by the Committee, is the following:

	 	 	 	 	 
	10/15/2010 Value of One Share
	 	   $	9	 
	+ Dividends over Measurement Period on One Share
	 	+ $	2.10	 
	 
	 	 	 
	 
	 	   $	11.1	 
	Divided by 1/1/2009 Value of One Share
	 	 	/7	 
	 
	 	 	 
	 
	 	 	1.585	 
	 
	 	 	 	 
	TRS
	 	 	58.5	%

As of October 15, 2010, Participant A has 317.5 Base Units (see Example 1). If, as of October 15,
2010, the Trust’s TRS places the Trust at the percentiles listed below among the component members
of the Index (ranked pursuant to each member’s TRS over the Measurement Period, as calculated by
the Trust or by a third party selected by the Committee), Participant A would receive the following
number of Shares (with fractional Shares settled in cash):

A-2

 

	 	 	 	 	 	 	 	 	 
	 	 	Percent of	 	 
	 	 	Base Units	 	 
	Percentile	 	Deliverable in Shares	 	Shares
	Below 25th
	 	 	0	%	 	 	0	 
	25th
	 	 	50	%	 	158 (plus cash for .8 Share)
	40th
	 	 	80	%	 	 	254	 
	50th
	 	 	100	%	 	317 (plus cash for .5 Share)
	62.5th
	 	 	150	%	 	476 (plus cash for .25 Share)
	75th or above
	 	 	200	%	 	 	635	 

Example 3. Termination During Measurement Period

Assume the same facts as in Example 1, except that Participant A incurs a “Disability Termination”
(as defined in the Program) on May 5, 2010. From the period between January 1, 2009 and May 5,
2010 inclusive, total dividends of $1.5 per Share have been paid. Thus, as of his date of
termination, Participant A has 296.20 Base Units (see Example 1). Because of the kind of
termination that occurred, Participant A is eligible to receive the number of Shares (if any)
computed in accordance with Section 4(c)(1).

A-3

 

APPENDIX B

BRANDYWINE REALTY TRUST

2009-2011 RESTRICTED PERFORMANCE SHARE UNIT PROGRAM

(Established under the Brandywine Realty Trust Amended and Restated 1997 Long-Term Incentive Plan)

DEFERRAL ELECTION AGREEMENT*

          The Brandywine Realty Trust 2009-2011 Restricted Performance Share Unit Program effective as
of January 1, 2009 (the “Program”), provides a select group of management or highly compensated
employees with the ability to defer a portion of their compensation earned under the Program. The
purpose of this Deferral Election Agreement is to allow you to defer the delivery of all or a
portion of the Shares (and Shares deliverable with respect to dividend equivalent rights (“DERs”)
awarded thereon) that are otherwise deliverable to you under the Program until one of the events
selected below occurs.

AFTER YOU SIGN THIS DEFERRAL ELECTION AGREEMENT AND IT IS ACCEPTED BY BRANDYWINE REALTY TRUST (THE
“TRUST”), YOU MAY NOT REVOKE IT AFTER JUNE 30, 2011. IF YOU DECIDE SUBSEQUENTLY TO CHOOSE A LATER
DELIVERY DATE, YOU MUST SUBMIT A NEW DEFERRAL ELECTION AGREEMENT AT LEAST 12 MONTHS PRIOR TO YOUR
ORIGINAL DELIVERY DATE AND YOUR NEW DELIVERY DATE MUST BE AT LEAST FIVE YEARS AFTER YOUR ORIGINAL
DELIVERY DATE. YOU MAY NOT, UNDER ANY CIRCUMSTANCES, ACCELERATE THE DELIVERY OF YOUR PERFORMANCE
SHARES (OR THE SHARES DELIVERABLE WITH RESPECT TO ANY DERS AWARDED THEREON) AFTER THIS DEFERRAL
ELECTION AGREEMENT HAS BECOME EFFECTIVE (OTHER THAN AS A RESULT OF AN UNFORESEEABLE EMERGENCY, IF
ELECTED BELOW).

You need only complete this Deferral Election Agreement if you wish to defer the delivery of Shares
(and Shares deliverable with respect to DERs awarded thereon) that become deliverable to you under
the Program. Capitalized terms in this Deferral Election Agreement are defined in the Program.

1. Participation Election

o I hereby elect to defer under the terms of the Program the delivery of ___% [insert any
whole percentage from one to 100 percent, inclusive] of the Shares that may become deliverable to
me under the Program.

2. Delivery Date Election

o I hereby elect to have the Trust deliver the percentage set forth above of the Shares (and
the Shares deliverable with respect to DERs awarded thereon) that may become deliverable to me
under the Program upon the following event [check only one box]:

o (A) On the 10th calendar day after my separation from service from the Trust’s controlled
group of entities (the date which is six months after such separation from service if I am a
“specified employee” at that time — see Section 4(f) of the Program).

o
(B) On the following date:                      ___, 20___ [must be after March 1, 2012].

o (C) Upon the earlier of the 10th calendar day after my separation from service (as
described in event (A) above) or the following date:
                     ___, 20___ [must be after March 1,
2012].

 

			
	*	 	Because of the complexities involved in the application
of federal, state and local tax laws to specific circumstances and the
uncertainties as to possible future changes in the tax laws, you should consult
your personal tax advisor regarding your own situation before completing this
Deferral Election Agreement.

B-1

 

3. Acceleration in the Event of an Unforeseeable Emergency

In addition to the election I made in 2 above, if I check the following box, I also elect to have
the Trust deliver Shares (and Shares deliverable with respect to DERs awarded thereon), to the
extent permitted by applicable law, to me:

o Upon an “Unforeseeable Emergency,” as defined in Section 4(f) of the Program. (This term
is defined quite restrictively in the Internal Revenue Code. See the footnote on the previous page
regarding consulting with your own tax advisor before completing this Deferral Election
Agreement.)

4. Change in Control or Death

o If a Change in Control or my death occurs before all of the Shares (and Shares deliverable
with respect to DERs awarded thereon) are delivered to me, such Shares shall be delivered in a
single sum to me or to my beneficiary(ies) designated in my Beneficiary Designation Form (as
applicable) on the 30th day after such Change in Control (provided that, if the Change in Control
arises from a Business Combination, the Change in Control shall be deemed to occur on the date of
the closing or effectiveness of the Business Combination, as applicable) or death (as applicable).

5. Insufficient Share Possibility

Because of the finite number of Shares available under the Brandywine Realty Trust Amended and
Restated 1997 Long-Term Incentive Plan, I understand that it is possible that not enough Shares
will still be available under the Plan to deliver all of the Shares otherwise required to be
delivered to me (or to my beneficiary(ies)) on the deferral date(s) chosen in 2 and 3 above.

* * * * *

By signing this Deferral Election Agreement, I agree to the terms and conditions of the Program as
the Program now exists, and as it may be amended from time to time (provided that no amendment of
the Program will adversely affect my rights under the Program without my written consent).

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Signature of Participant

	 	 	 	Date	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	ACCEPTED:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Compensation Committee of Brandywine Realty Trust	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

B-2

 

APPENDIX C

BRANDYWINE REALTY TRUST

2009-2011 RESTRICTED PERFORMANCE SHARE UNIT PROGRAM

(Established under the Brandywine Realty Trust Amended and Restated 1997 Long-Term Incentive Plan)

BENEFICIARY DESIGNATION FORM

          This Form is for your use under the Brandywine Realty Trust 2009-2011 Restricted Performance
Share Unit Program (the “Program”) to name a beneficiary for the Shares that may be deliverable to
you from the Program. You should complete the Form, sign it, have it signed by your Employer, and
date it.

* * * *

          I understand that in the event of my death before I receive Shares that may be deliverable to
me under the Program, the Shares will be delivered to the beneficiary designated by me below or,
if none or if my designated beneficiary predeceases me, to my surviving spouse or, if none, to my
estate. I further understand that the last beneficiary designation filed by me during my lifetime
and accepted by my Employer cancels all prior beneficiary designations previously filed by me
under the Program.

          I
hereby state that
                                        
 [insert name], residing at  
                    
                
               
        
[insert address], whose Social Security number is                     , is designated as my beneficiary.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Signature of Participant

	 	 	 	Date	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	ACCEPTED:	 	 
	 
	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	[insert name of Employer]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

C-1

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