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EXHIBIT "D" TO SCHEDULE 13D
VOTING TRUST AGREEMENT
This Voting Trust Agreement is made effective November 6, 1996, among
Brandywine Realty Trust, a Maryland real estate investment trust (the
"Company"), the Commonwealth of Pennsylvania State Employees' Retirement System
("SERS"), any other shareholder of the Company who, with the prior written
consent of SERS, becomes a signatory hereto, (any such shareholder, together
with SERS, individually, a "Shareholder" and collectively, the "Shareholders"),
and RAI Real Estate Advisers, Inc., in its capacity as voting trustee hereunder
(together with any successor trustee, the "Trustee").
W I T N E S S E T H
WHEREAS, the Commonwealth of Pennsylvania State Employees' Retirement
Board is an independent administrative board of the Commonwealth of Pennsylvania
transacting business as the Commonwealth of Pennsylvania State Employees'
Retirement System;
WHEREAS, each Shareholder deems it advisable to deposit all securities
issued, either on or prior to the date hereof or at any time during the term
hereof, by the Company to the Shareholder with the Trustee;
WHEREAS, the Trustee is an investment adviser to SERS and is entering
into certain agreements with the Company on behalf of SERS (the "Transaction
Agreements"), including without limitation, a Contribution Agreement and a
Securities Purchase Agreement, both of even date herewith, and in order to
facilitate the consummation of the transactions contemplated by the Transaction
Agreements and to facilitate the Trustee's acting on behalf of SERS in
connection with all securities, including, without limitation, common and
convertible preferred shares of beneficial interest and warrants to purchase
common shares, issued by the Company pursuant to the terms of the Transaction
Agreements or otherwise, SERS and the Trustee have agreed to enter into this
Agreement;
WHEREAS, the Trustee has consented to act under this Agreement for the
purposes herein provided.
NOW THEREFORE, in consideration of the foregoing premises and of the
mutual covenants and agreements contained in this Agreement, the parties hereto,
intending to be legally bound, agree as follows:
1. Voting Trust Agreement; Initial Deposit of Securities.
(a) Copies of this Agreement, and of every agreement supplemental
hereto or amendatory hereof, shall be filed in the principal office of the
Company and shall be open to
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the inspection of any shareholder of the Company, daily during business hours.
All voting trust certificates issued as hereinafter provided shall be issued,
received, and held subject to all the terms of this Agreement. Every person,
firm, corporation or other entity entitled to receive voting trust certificates
representing the Company's voting shares and their transferees and assigns, upon
accepting the voting trust certificates issued hereunder, shall be bound by the
provisions of this Agreement.
(b) Contemporaneously herewith, the Company is issuing to SERS certain
common shares of beneficial interest and SERS hereby assigns, transfers and
delivers to the Trustee the record ownership of such shares and directs that
such shares be issued to the Trustee in accordance with subparagraph 2(b) below.
(c) SERS is the sole shareholder of BCBC Holding Company, Inc., a
Delaware corporation ("BCBC"), Greenwood Square Corporation, a Delaware
corporation ("Greenwood"), and Pennsylvania Real Estate Holdings Inc., a
Pennsylvania corporation ("PREHI"). PREHI is the sole shareholder of ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇ Holdings, Inc., a Pennsylvania corporation ("500 North Gulph Road").
BCBC, Greenwood and ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ are parties to the aforementioned
Contribution Agreement pursuant to the terms of which certain securities of the
Company are being issued to the Trustee, as Voting Trustee, under this Voting
Trust Agreement, in exchange for certain property owned respectively by BCBC,
Greenwood and ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇. Accordingly, the initial securities
deposited with the Trustee (other than the shares referred to in subparagraph
1(b) above) are being issued directly to the Trustee by the Company and consist
of securities beneficially owned by SERS as a result of its receipt,
contemporaneously herewith, of: (i) liquidation distributions from each of BCBC
and Greenwood in the form of all of the securities being provided to BCBC and
Greenwood respectively as consideration under the Contribution Agreement; and
(ii) a dividend from PREHI in the form of all of the securities being provided
to ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ as consideration under the Contribution Agreement which,
contemporaneously herewith, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ is transferring to PREHI in the
form of a liquidation distribution. Contemporaneously herewith, SERS assigns,
transfers and delivers to the Trustee the rights to receive record ownership of
all of the aforementioned securities.
2. Transfer of Securities to Trustee.
(a) In addition to, and not in limitation of, the assignment made by
SERS to the Trustee pursuant to the terms of Paragraph 1 hereof, each
Shareholder, upon execution of this Agreement, hereby assigns and transfers to
the Trustee and deposits with the Trustee all the certificates for such
Shareholder's securities of the Company, as set forth on the records of the
Company, or as may be set forth in any document in which a Shareholder executes
a joinder to this Agreement; for the purpose of vesting in the Trustee, as
Trustee of an active trust, the right to vote and act and to exercise all other
rights pertaining to such securities, as and to the extent, and upon the terms
and conditions and for the period set forth in this Agreement. All certificates
for securities shall be endorsed, or accompanied by such instruments of
transfer, as to enable the Trustee to cause such certificates to be transferred
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into the name of the Trustee, as hereinafter provided. On receipt by the Trustee
of the certificates for any such securities and the transfer of the same into
the name of the Trustee, the Trustee shall hold the same subject to the terms of
this Agreement, and shall thereupon issue and deliver to the Shareholder voting
trust certificates for the securities so deposited.
(b) Except as to the initial securities assigned by SERS to the Trustee
pursuant to the terms of Paragraph 1 hereof, certificates for securities of the
Company transferred and delivered to the Trustee pursuant to this Agreement
shall be surrendered by the Trustee to the Company and canceled, and new
certificates therefor shall be issued to, and held by, the Trustee in the name
of "RAI Real Estate Advisers, Inc., as Voting Trustee under Voting Trust
Agreement, dated November 6, 1996." Anything to the contrary contained in this
Paragraph 2 notwithstanding, for the convenience of the parties, during the term
hereof, to the extent practicable, each Shareholder and the Trustee shall cause
the Company to issue securities beneficially owned by the Shareholder directly
to the Trustee, as record owner of the securities pursuant to the terms hereof.
3. Voting Trust Certificates. The Trustee shall maintain a voting trust
certificate register in which each holder of a voting trust certificate issued
under this Agreement, and the number of shares represented by each voting trust
certificate will be identified. The voting trust certificates shall be in the
form of voting trust certificate attached hereto as EXHIBIT A and shall include
the legend required by Paragraph 14 of this Agreement.
4. Transfer of Certificates.
(a) The voting trust certificates, if and to the extent transferable
under applicable securities law or under any agreement restricting
transferability, shall be transferable at the principal office of the Trustee
(and at such other office as the Trustee may designate by an instrument in
writing signed by the Trustee and sent by mail to the registered holders of
voting trust certificates), on the books of the Trustee, by the registered owner
thereof, either in person or by attorney thereto duly authorized, upon surrender
thereof, according to the rules established for that purpose by the Trustee,
subject to the provisions set forth in this Paragraph below. If a transfer of
voting trust certificates is so permitted, the holder shall notify the Trustee
of the details of such transfer, including the name, address and taxpayer
identification number of the transferee and number of shares as to which the
beneficial interest is being transferred, and shall surrender to the Trustee the
voting trust certificate or certificates representing such shares, properly
endorsed for transfer, and the Trustee shall, upon receipt of such notice and
voting trust certificate(s), transfer the voting trust certificate(s) on the
voting trust certificate registry and issue a new voting trust certificate to
the transferee and, the extent that a portion of the shares represented by such
voting trust certificate or certificates is retained by the transferor, issue a
new voting trust certificate to the transferor. Until so transferred, the
Trustee may treat the record holders of voting trust certificates as the owners
of said voting trust certificates for all purposes whatsoever. As a condition to
making any transfer or delivery of voting trust certificates, the Trustee may
require compliance by the transferee with any applicable federal or state
statute and the payment of a sum sufficient to
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pay for any stamp tax or other governmental charge in connection therewith. No
transfer of voting trust certificates shall in any way remove the shares
represented by such certificate or certificates from being held by the Trustee
under this Agreement and any transferee, by accepting such transfer, does hereby
consent to be bound by the terms of this Agreement, and upon becoming a holder
of voting trust certificates shall be deemed to be a party hereto as though an
original signatory hereto. Anything to the contrary contained herein
notwithstanding, no third party may become a party to this Agreement without the
prior written consent of SERS.
(b) If a voting trust certificate is lost, stolen, mutilated, or
destroyed, the holder thereof shall promptly notify the Trustee and the Trustee,
in the Trustee's discretion, may issue to such holder a duplicate of such
certificate upon receipt of: (1) evidence of such fact satisfactory to the
Trustee; (2) indemnity satisfactory to the Trustee (whether bond of otherwise in
such form or amount and with such surety as the Trustee may require to indemnify
the Trustee against loss or liability that might arise due to the issuance of
such new voting trust certificate); (3) the existing certificate, if mutilated;
and (4) the reasonable fees and expenses of the Trustee in connection with the
issuance of a new trust certificate. The Trustee shall not be required to
recognize any transfer of a voting trust certificate not made in accordance with
the provisions hereof, unless the person claiming such ownership shall have
produced indicia of title satisfactory to the Trustee, and shall in addition
deposit with the Trustee indemnity satisfactory to the Trustees.
5. Termination Procedure.
(a) Subject to the provisions of Paragraph 12, upon the termination of
this Agreement at any time, as hereinafter provided, the Trustee, at such time
as the Trustee may choose during the period commencing 10 days before and ending
10 days after such termination, shall mail written notice of such termination to
the registered owners of the voting trust certificates, at the addresses
appearing on the transfer books of the Trustee. After the date specified in any
such notice (which date shall be fixed by the Trustee), the voting trust
certificates shall cease to have any effect, and the holders of such voting
trust certificates shall have no further rights under this Agreement other than
to receive certificates for shares of the Company or other property
distributable under the terms hereof and upon the surrender of such voting trust
certificates or rights which by their nature are intended to survive the
termination of this Agreement.
(b) Within 30 days after the termination of this Agreement, the Trustee
shall deliver, to the registered holders of all voting trust certificates,
certificates for the number of shares of the capital stock of the Company
represented thereby, upon the surrender thereof properly endorsed, such delivery
to be made in each case at the office of the Trustee.
(c) At any time subsequent to 30 days after the termination of this
Agreement, the Trustee may deposit with the Company share certificates
representing the number of shares of capital stock represented by the voting
trust certificates then outstanding, with authority in
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writing to the Company to deliver such share certificates in exchange for voting
trust certificates representing a like number of shares of the capital stock of
the Company and for the Company to call upon and require all holders of voting
trust certificates to so surrender them; and upon such deposit all further
liability of the Trustee for the delivery of such share certificates shall
cease, and the Trustee shall not be required to take any further action
hereunder.
6. Dividends.
(a) Until the termination of this Agreement pursuant to the terms of
Paragraph 12, the holder of each voting trust certificate shall be entitled to
receive from the Trustee payments equal to the cash dividends, if any, received
by the Trustee upon a like number and class of shares of capital stock of the
Company as is called for by each such voting trust certificate standing in the
name of such holder in the voting trust certificate register. If any dividend in
respect of the shares deposited with the Trustee is paid, in whole or in part,
in common or other shares of the Company having general voting powers, the
Trustee shall likewise hold, subject to the terms of this Agreement, the
certificates for shares of stock which are received by the Trustee on account of
such dividend, and the holder of each voting trust certificate representing
shares of stock on which such stock dividend has been paid shall be entitled to
receive a voting trust certificate issued under this Agreement for the number of
shares and class of stock received as such dividend with respect to the shares
represented by such voting trust certificate. Holders entitled to receive the
dividends described above shall be those registered as such on the transfer
books of the Trustee at the close of business on the day fixed by the Company
for the taking of a record to determine those holders of its shares of stock
entitled to receive such dividends, or if the Trustee have fixed a date, as
hereinafter in this paragraph provided, for the purpose of determining the
holders of voting trust certificates entitled to receive such payment or
distribution, then registered as such at the close of business on the date so
fixed by the Trustee.
(b) Except as otherwise provided in Paragraph 12, if any dividend in
respect of the stock deposited with the Trustee is paid other than in cash or in
capital stock having general voting powers, then the Trustee shall distribute
the same among the holders of voting trust certificates registered as such at
the close of business on the day fixed by the Trustee for taking a record to
determine the holders of voting trust certificates entitled to receive such
distribution. Such distribution shall be made to such holders of voting trust
certificates ratably, in accordance with the number of shares represented by
their respective voting trust certificates.
(c) In lieu of receiving cash dividends upon the capital stock of the
Company and paying the same to the holders of voting trust certificates pursuant
to the provisions of this Agreement, the Trustee may instruct the Company in
writing to pay such dividends to the holders of the voting trust certificates.
Upon receipt of such written instructions, the Company shall pay such dividends
directly to the holders of the voting trust certificates. Upon such instructions
being given by the Trustee to the Company, and until revoked by the
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Trustee, all liability of the Trustee with respect to such dividends shall
cease. The Trustee may at any time revoke such instructions and by written
notice to the Company direct it to make dividend payments to the Trustee.
7. Subscription Rights. In case any stock or other securities of the
Company are offered for subscription to the holders of capital stock of the
Company deposited hereunder, the Trustee, promptly upon receipt of notice of
such offer, shall mail a copy thereof to each of the holders of the voting
trust certificates. Upon receipt by the Trustee, at least five days prior to
the last day fixed by the Company for subscription and payment, of a request
from any such registered holder of voting trust certificates to subscribe in
such holder's behalf, accompanied with the sum of money required to pay for
such stock or securities (not in excess of the amount subject to subscription
in respect to the shares represented by the voting trust certificate held by
such certificate holder), the Trustee shall make such subscription and payment,
and upon receiving from the Company the certificates for shares or securities
so subscribed for, shall issue to such holder a voting trust certificate in
respect thereof if the same be stock having general voting powers, but if the
same be securities other than stock having general voting powers, the Trustee
shall mail or deliver such securities to the certificate holder in whose behalf
the subscription was made, or may instruct the Company to make delivery
directly to the certificate holder entitled thereto. In case any reduction of
the shares of the Company shall have been duly authorized, the Trustee is
hereby authorized to make such surrender of shares of the Company held by the
Trustee hereunder, pro-rata on behalf of all holders of voting trust
certificates, as may be required under the terms pursuant to which such
reduction is to be effected, and to receive and hold any and all shares of the
Company issued in exchange for such surrendered shares. Following any such
action, the voting trust certificates issued and outstanding pursuant hereto
shall be deemed to represent a proportionately reduced number of shares.
8. Dissolution of Company. Except as otherwise provided in Paragraph 12,
in the event of the dissolution or total or partial liquidation of the Company,
whether voluntary or involuntary, the Trustee shall receive the moneys,
securities, rights, or property to which the holders of the capital stock of
the Company deposited hereunder are entitled, and shall timely distribute the
same among the registered holders of voting trust certificates in proportion to
their interests, as shown by the books of the Trustee, or the Trustee may in
the Trustee's discretion deposit such moneys, securities, rights, or property
with any bank as the Trustee may select, with authority and instructions to
distribute the same as above provided, and upon such deposit, this Agreement
shall terminate and all further obligations or liabilities of the Trustee in
respect of such moneys, securities, rights, or property so deposited shall
cease and terminate.
9. Reorganization of Company. Except as otherwise provided in Paragraph
12, in the event the Company is merged into or consolidated with another
corporation, or all or substantially all of the assets of the Company are
transferred to another corporation pursuant to a plan requiring the Company's
assets to be distributed in liquidation, or all the shares of the Company are
to be exchanged in connection with a reorganization of the Company, then
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in connection with such transaction or series of transactions the term "Company"
for all purposes of this Agreement shall be taken to include such successor
corporation, and the Trustee shall receive and hold under this Agreement any
stock of such successor corporation received on account of the ownership, as
Trustee hereunder, of the shares of stock held hereunder prior to such merger,
consolidation or transfer. Voting trust certificates issued and outstanding
under this Agreement at the time of such merger, consolidation, or transfer may
remain outstanding, or the Trustee may, in their discretion, substitute for such
voting trust certificates new voting trust certificates in appropriate form, and
the terms "stock," "shares" and "capital stock" as used herein shall be taken to
include any stock which may be received by the Trustee in lieu of all or any
part of the capital stock of the Company.
10. Rights of Trustee.
(a) Until the actual delivery to the holders of voting trust
certificates issued hereunder of stock certificates in exchange therefor, and
until the surrender of the voting trust certificates for cancellation, the
Trustee shall possess and have the exclusive right, except as otherwise
expressly limited in this Agreement, to exercise, in person or by nominees or
proxies of the Trustee, all shareholder's voting rights and powers in respect to
all shares deposited hereunder, for any and every purpose, and to take part in
or consent to any corporate or shareholders' action of any kind whatsoever, as
absolute owner of such shares. The Shareholders have hereby assigned to Trustee
all voting rights that they otherwise might have had arising out of any
ownership of the shares, whether by operation of law or agreement. The right to
vote shall include the right to vote for or against or to abstain with respect
to the election of directors, and in favor of or against or to abstain with
respect to any resolution or proposed action of any character whatsoever, which
may be presented at any meeting or require the consent of shareholders of the
Company. Without limiting such general right, it is understood that such action
or proceeding may include, upon terms satisfactory to the Trustee or to their
nominees or proxies thereto appointed by the Trustee, mortgaging, creating a
security interest in, and pledging of all or any part of the property of the
Company, the lease or sale of all or any part of the property of the Company,
for cash, securities, or other property, and the dissolution of the Company, or
the consolidation, merger, reorganization, or recapitalization of the Company.
It is further understood that: (i) action by the Trustee in voting or not voting
stock deposited hereunder in instances where there are shareholders' statutory
rights of appraisal may effectively waive or terminate any such rights as to the
shares represented thereby, and (ii) the Trustee, in taking part in, or
consenting to, any corporate or shareholders' action, as provided in this
subparagraph, may enter into any agreements and take such actions which, in the
determination of the Trustee, are reasonable, including, but not limited to,
agreements which provide representations, warranties and covenants on behalf of
shareholders who are subject to this Voting Trust and provisions relating to
indemnification for breach of such representations. Should there be any such
agreements or provisions of the type referred to in (ii) above, the term of this
Agreement shall be extended to cover whatever period of time is necessary for
the Voting Trustee to carry out the functions of the Trustee (such as contesting
or settling claims; receiving and distributing proceeds and interest on behalf
of the Shareholders, and any others) arising therefrom.
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(b) In voting the shares held by the Trustee hereunder either in person
or by nominees or proxies, in carrying out its duties under the power of
attorney granted to the Trustee pursuant to the terms of Paragraph 16 hereof,
and in all other matter relating to this Agreement and the securities deposited
with the Trustee hereunder, the Trustee shall exercise that same degree of care
and diligence which the Trustee is required to exercise in carrying out its
duties as investment adviser to SERS.
11. Trustees and Successor Trustees.
(a) The Trustee (and any successor Trustee) may at any time resign by
mailing to the registered holders of voting trust certificates a written
resignation, to take effect ten days thereafter or upon the prior acceptance
thereof. Upon dissolution, liquidation or a merger or consolidation, or a sale
of assets contemplating a liquidation of the Trustee, in which the Trustee's
equityholders prior to such transaction own in the aggregate less than 50% of
the resulting company after the transaction, or upon a resignation or removal of
the Trustee, then a successor Trustee shall be designated in writing by SERS, or
if SERS is no longer a Shareholder, SERS's successor in interest or if SERS has
more than one successor in interest, the majority in interest of SERS's
successors in interest. Notwithstanding any provision in this Voting Trust
Agreement to the contrary, any Trustee may be removed at any time, with or
without cause, upon written notice to the Trustee (or any successor Trustee) by
SERS, or if SERS is no longer a Shareholder, SERS's successor in interest or if
SERS has more than one successor in interest, a representative of the majority
in interest of SERS's successors in interest.
(b) The rights, powers, and privileges of the Trustee named hereunder
shall be possessed by the successor Trustees, with the same effect as though
such successors had originally been parties to this Agreement. The word
"Trustee", as used in this Agreement, means the Trustee or any successor Trustee
acting hereunder, and shall include both the single and the plural number.
12. Term.
(a) Except as otherwise provided in subparagraph 10(a), this Agreement
shall continue in effect until a date that is ten (10) years from the date
hereof (subject to extension as hereinafter set forth) but shall terminate at
any time upon the happening of either of the following events: (1) the execution
and acknowledgment by the Trustee hereunder of a deed of termination, duly filed
in the office of the Company; or (2) a merger or consolidation, or a sale of
assets contemplating a liquidation of the Company, in which the Company's
shareholders prior to such transaction own in the aggregate less than 50% of the
resulting company after the transaction; or (3) a merger or consolidation, or a
sale of assets contemplating a liquidation of the Trustee, in which the
Trustee's equityholders prior to such transaction own in the aggregate less than
50% of the resulting company after the transaction; or (4) the execution and
acknowledgment of a deed of termination by SERS, or if SERS is no longer a
Shareholder, SERS's successor in interest or if SERS's has more than one
successor
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in interest, a representative of the majority in interest of SERS's successors
in interest, duly filed in the principal office of the Company.
(b) To the extent permitted under applicable law, at any time within
one year prior to the expiration of this Agreement as theretofore extended, the
holders of a majority of the voting trust certificates hereunder may, by
agreement in writing and with the written consent of the Trustee, extend the
duration of this Agreement for an additional period not exceeding ten years. In
the event of such extension, the Trustee shall, prior to the time of expiration
as hereinabove provided, as originally fixed, or as theretofore extended, as the
case may be, file in the principal office of the Company, a copy of such
extension agreement, and of the consent thereto, and thereupon the duration of
this voting trust agreement shall be extended for the period fixed by such
extension agreement, provided, however, that no such extension agreement shall
extend the term of this Agreement beyond the maximum period then permitted by
applicable law or affect the rights, or obligations of persons not parties
thereto.
13. Compensation and Reimbursement of Trustee. The Trustee shall serve
without compensation but it is expressly agreed that the Trustee shall have the
right to incur and pay such reasonable expenses and charges, to employ and pay
such agents, attorneys, and counsel as the Trustee may deem necessary and proper
with respect to the Trustee carrying out any of the Trustee's duties under this
Agreement or interpreting or exercising any of the Trustee's powers under this
Agreement to the extent permitted under the applicable terms of any then
applicable investment advisory agreement between SERS and the Trustee. Any such
expenses or charges incurred by and due to the Trustee paid by the Company,
where the Company deems it appropriate to its interests, may be deducted pro
rata from the dividends or other moneys or property received by the Trustee on
the stock deposited hereunder. Nothing herein contained shall disqualify the
Trustee or successor Trustees, or incapacitate any of them from serving the
Company or any of its subsidiaries as officer or director, or in any other
capacity, and in any such capacity receiving compensation.
14. Legend. All voting trust certificates issued pursuant to this
Agreement shall be marked with the following legend:
"This certificate and the shares represented hereby are held subject to
the terms, covenants and conditions of a Voting Trust Agreement dated
as of November 6, 1996 by and among the Company, the Commonwealth of
Pennsylvania State Employes' Retirement System ("SERS") and such other
shareholders of the Company, which, subject to SERS' consent, may
become parties to the Voting Trust Agreement, and RAI Real Estate
Advisers, Inc. and its successors in trust, as Voting Trustee."
15. Meetings of Holders. The Trustee shall have no duty to hold meetings of
holders of voting trust certificates, but the Trustee shall be entitled to do
so. Two days written notice of every meeting of holders shall be given and such
notice shall state the place, day, hour and purposes of such meeting, but any
holder may waive such notice in writing, either before, during or after the
meeting. No notice of any adjourned meeting need be given. Every such
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meeting shall be held within or without the Commonwealth of Pennsylvania at a
place designated by the Trustee. The failure to hold meetings shall not in any
manner or degree impair or reduce the authority of the Trustee hereunder.
16. Power of Attorney. In addition to and not in limitation of the other
powers granted by the Shareholders to the Trustee hereunder, the Shareholders
hereby constitute, appoint, authorize and empower the Trustee as the
Shareholders' true and lawful attorney, with full power and authority as the
Shareholders' attorney-in-fact to perform or cause to be performed for the
Shareholders and in each Shareholder's name any and all of the following acts
or things, but only such acts or things: any and all actions necessary,
convenient or desirable to carry-out all of the transactions contemplated by
the Transaction Agreements and all agreements and transactions contemplated by
the Transaction Agreements and to preserve, protect, and, to the extent
necessary or desirable, pursue, on behalf of a Shareholder, any and all of
rights and remedies of the Shareholder arising under or in connection with the
Transaction Agreement and all agreements and transactions contemplated thereby
and/or the issuance of securities by the Company to the Shareholder and the
Shareholder's ownership of the securities. Each Shareholder hereby gives and
grants to the Trustee, as its attorney-in-fact, full power and authority to do
and perform all and every act and thing whatsoever requisite and necessary to
be done in connection with the above listed matters, as fully to all intents
and purposes as the Shareholder might or could do itself, hereby ratifying and
confirming all that the Trustee, as its attorney-in-fact, shall lawfully do or
cause to be done by virtue hereof. As to each Shareholder, this power of
attorney may be revoked upon written notice to the Trustee at any time. This
power of attorney shall automatically be revoked and terminated, and deemed
null and void, without further notice to the Trustee, upon the termination of
this Agreement or the removal of the Trustee from its position as Trustee
hereunder.
17. Miscellaneous.
(a) Indulgences, Etc. Neither the failure nor any delay on the part of
either party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power or privilege
with respect to any other occurrence. No waiver shall be effective unless it is
in writing and is signed by the party asserted to have granted such waiver.
(b) Controlling Law. This Agreement and all questions relating to its
validity, interpretation, performance and enforcement (including, without
limitation, provisions concerning limitations of actions), shall be governed by
and construed in accordance with the laws of the State of Maryland,
notwithstanding any conflict-of-laws doctrines of such state or other
jurisdiction to the contrary, and without the aid of any canon, custom or rule
of law requiring construction against the draftsman.
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(c) Notice.
(i) Unless otherwise in this Agreement specifically provided,
any notice to or communication with the holders of the voting trust certificates
hereunder shall be deemed to be sufficiently given or made if enclosed in
postpaid wrappers (registered mail) addressed to such holders at their
respective addresses appearing on the transfer books of the Trustee, and
deposited in any post office or post office box, personally delivered with
evidence of receipt or submitted to an overnight delivery service such as
Federal Express or similarly recognized service and so addressed. The addresses
of the holders of voting trust certificates, as shown on the transfer books of
the Trustee, shall in all cases be deemed to be the addresses of voting trust
certificate holders for all purposes under this Agreement, without regard to
what other or different addresses the Trustee may have for any voting trust
certificate holder on any other books or records of the Trustee. Every notice so
given shall be effective, whether or not received; and the date of mailing shall
be the date such notice is deemed given for all purposes.
(ii) Any notice to the Trustee hereunder may be enclosed in a
postpaid wrapper and sent by registered mail, personally delivered with evidence
of receipt, or submitted to Federal Express or similarly recognized service, to
the Trustee, addressed to it at such addresses as may from time to time be
furnished in writing to the Company by the Trustee, and if no such address has
been so furnished by the Trustee, then to the Trustee in care of the Company.
(iii) All distributions of cash, securities, or other property
hereunder by the Trustee to the holders of voting trust certificates may be
made, in the discretion of the Trustee, by mail (regular or registered mail, as
the Trustee may deem advisable), in the same manner as hereinabove provided for
the giving of notices to the holders of voting trust certificates.
(d) Binding Nature of Agreement; No Assignment. This Agreement shall be
binding upon and inure to the benefit of the parties hereto, including future
holders of voting trust certificates, and their respective heirs, personal
representatives, successors and assigns. No party may sell, assign, transfer or
encumber such party's rights or obligations under this Agreement, the voting
trust certificates or the shares represented thereby, without the prior written
consent of the other parties hereto, except to the extent expressly permitted in
this Agreement.
(e) Provisions Separable. The provisions of this Agreement are
independent of and separable from each other, and no provision shall be affected
or rendered invalid or unenforceable by virtue of the fact that for any reason
any other or others of them may be invalid or unenforceable in whole or in part.
(f) Entire Agreement. This Agreement contains the entire understanding
between the parties hereto with respect to the subject matter hereof, and
supersedes all prior and
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contemporaneous agreements and understandings, inducements or conditions,
express or implied, oral or written, except as herein contained. The express
terms hereof control and supersede any course of performance and/or usage of the
trade inconsistent with any of the terms hereof. This Agreement may not be
modified or amended other than by an agreement in writing signed by all of the
parties hereto.
(g) Paragraph Headings. The paragraph headings in this Agreement are
for convenience only; they form no part of this Agreement and shall not affect
its interpretation.
(h) Gender, Etc. Words used herein, regardless of the number and gender
specifically used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine or neuter, as the
context indicates is appropriate.
(i) Number of Days. In computing the number of days for purposes of
this Agreement, all days shall be counted, including Saturdays, Sundays and
holidays; provided, however, that if the final day of any time period (including
the effective date of a notice or other communication given hereunder) falls on
a Saturday, Sunday or holiday on which federal banks are or may elect to be
closed, then the final day shall be deemed to be the next day which is not a
Saturday, Sunday or such holiday.
IN WITNESS WHEREOF the Company and the Trustee have signed and sealed
this Agreement, and the Shareholders have signed and sealed this Agreement and
have stated the number of shares of capital stock of the Company that will be
deposited.
RAI REAL ESTATE ADVISERS, INC.,
as Trustee
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
-----------------------------
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, President
COMMONWEALTH OF PENNSYLVANIA
STATE EMPLOYES' RETIREMENT SYSTEM
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇
-----------------------------
Name: ▇▇▇▇ ▇▇▇▇▇▇▇
-----------------------------
Title: Executive Director
-----------------------------
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BRANDYWINE REALTY TRUST
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
-----------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
-----------------------
Title: President/CEO
-----------------------
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EXHIBIT A
This certificate and the securities represented hereby are held subject to the
terms, covenants and conditions of a Voting Trust Agreement dated as of , by and
among the Commonwealth of Pennsylvania State Employees' Retirement System
("SERS") and such other shareholders of the Company, which, subject to SERS'
consent, may become parties to the Voting Trust Agreement, and RAI Real Estate
Advisers, Inc., and its successors in trust, as Voting Trustee.
No. VT-1
BRANDYWINE REALTY TRUST
a Maryland real estate investment trust
Voting Trust Certificate for Securities
This certifies that the Commonwealth of Pennsylvania State Employees'
Retirement System or registered assigns is entitled to all the benefits arising
from the deposit with and transfer to the Trustee under the Voting Trust
Agreement hereinafter mentioned, of certificates representing beneficial
ownership of [ common shares of beneficial interest of Brandywine Realty Trust,
a Maryland real estate investment trust (hereinafter called the "Company")], [
Series A Convertible Preferred Shares of beneficial interest of the Company] and
[warrants to purchase shares of beneficial interest of the Company] as provided
in such Voting Trust Agreement and subject to the terms thereof. The registered
holder hereof, or assigns, is entitled to receive payment, in the manner set
forth in the Voting Trust Agreement, equal to the amount of dividends, if any,
received by the Trustee upon the number of shares of the Company in respect of
which this certificate is issued; provided, however, that any dividends received
by the Trustee in common or other stock of the Company having general voting
powers shall be held by the Trustee under the Voting Trust Agreement and shall
be represented by voting trust certificates issued in form similar hereto. Until
the Trustee shall have delivered the securities held under such Voting Trust
Agreement to the holders of the trust certificates, or to the Company, as
specified in such Voting Trust Agreement, the Trustee shall possess and shall be
entitled to exercise all rights and powers of an absolute owner of such
securities, including the right to vote thereon for every purpose, and to
execute consents in respect thereof for every purpose, it being expressly
stipulated that no voting right passes to the owner hereof, or such owner's
assigns, under this certificate or any agreement, expressed or implied.
This certificate is issued, received, and held under, and the rights of
the owner hereof are subject to, the terms of a Voting Trust Agreement dated as
of______________ ,
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1996, between RAI Real Estate Advisers, Inc., and such person's successors in
trust, and the Commonwealth of Pennsylvania State Employes' Retirement System
(the "Voting Trust Agreement" copies of which Voting Trust Agreement, and of
every agreement amending or supplementing the same, are on file in the principal
office of the Company, and shall be open to the inspection of any shareholder of
the Company, daily during business hours); to all the provisions of which Voting
Trust Agreement the holder of this certificate, and such holder's heirs,
personal representatives, successors and assigns, by acceptance hereof, assents
and is bound as if such Voting Trust Agreement had been signed by such person.
The Voting Trust Agreement shall continue in full force and effect
until a date that is ten (10) years from the date of the Voting Trust Agreement
(subject to extension as hereinafter set forth), unless terminated prior
thereto, as provided in this Agreement.
This certificate shall not be valid for any purpose until duly signed
by the Trustee. The word "Trustee" as used in this certificate means the Trustee
or the successor Trustee acting under such Voting Trust Agreement.
IN WITNESS WHEREOF, the Trustee has signed this certificate on
__________________, 1996.
RAI REAL ESTATE ADVISERS, INC.,
as Trustee
By:
----------------------------
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, President
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