Document:

EX-10.1

 Exhibit 10.1 
 PS BUSINESS PARKS, L.P. 
 AMENDMENT TO AGREEMENT OF LIMITED 

PARTNERSHIP RELATING TO 
 5.75% SERIES U CUMULATIVE REDEEMABLE 
 PREFERRED UNITS 

This Amendment to the Agreement of Limited Partnership of PS Business Parks, L.P., a California limited partnership (the
“Partnership”), dated as of September 14, 2012 (this “Amendment”), amends the Agreement of Limited Partnership of the Partnership, dated as of March 17, 1998, as amended, by and among PS Business Parks,
Inc. (the “General Partner”) and each of the limited partners described on Exhibit A to that partnership agreement (the “Partnership Agreement”). Section references are (unless otherwise specified) references to
sections in this Amendment. 
 WHEREAS, the General Partner agreed to issue up to 9,200,000 Depositary Shares each representing
1/1000th of a share of the General Partner’s preferred stock designated as the “5.75% Cumulative Preferred Stock, Series U” (the “Depositary Shares”) for a price of $25.00 per Depositary Share; 

WHEREAS, Section 4.1(b)(2) of the Partnership Agreement requires the General Partner to contribute to the Partnership the funds
raised through the issuance of additional shares of the General Partner in return for additional Partnership Units, and provides that the General Partner’s capital contribution shall be deemed to equal the amount of the gross proceeds of that
share issuance (i.e., the net proceeds actually contributed, plus any underwriter’s discount or other expenses incurred, with any such discount or expense deemed to have been incurred on behalf of the Partnership); 

WHEREAS, Section 4.2(a) of the Partnership Agreement provides generally for the creation and issuance of Partnership Units with such
designations, preferences and relative, participating, optional or other special rights, powers and duties, including rights, powers and duties senior to other Partnership Interests, all as shall be determined by the General Partner, without the
consent of the Limited Partners, and Section 4.2(b) of the Partnership Agreement specifically contemplates the issuance of Units to the General Partner having designations, preferences and other rights, all such that the economic interests are
substantially similar to the designations, preferences and other rights of shares issued by the General Partner, such as the Depositary Shares; 
 WHEREAS, the General Partner desires to cause the Partnership to issue additional Units of a new class and series, with the designations, preferences and relative, participating, optional or other special
rights, powers and duties set forth herein; and 
 WHEREAS, the General Partner desires by this Amendment to so amend the
Partnership Agreement as of the date first set forth above to provide for the designation and issuance of such new class and series of Units. 

 NOW, THEREFORE, the Partnership Agreement is hereby amended by establishing and fixing the
rights, limitations and preferences of a new class and series of Units as follows: 
 Section 1. Definitions.
Capitalized terms not otherwise defined herein shall have their respective meanings set forth in the Partnership Agreement. Capitalized terms that are used in this Amendment shall have the meanings set forth below: 

(a) “Liquidation Preference” means, with respect to the Series U Preferred Units (as defined below), $25.00 per Series U
Preferred Unit, plus the amount of any accumulated and unpaid Priority Return (as defined below) with respect to such Series U Preferred Unit, whether or not declared, minus any distributions in excess of the Priority Return that has accrued with
respect to such Series U Preferred Units, to the date of payment. 
 (b) “Parity Preferred Units” means any
class or series of Partnership Interests (as such term is defined in the Partnership Agreement) of the Partnership now or hereafter authorized, issued or outstanding and expressly designated by the Partnership to rank on a parity with the Series U
Preferred Units with respect to distributions and rights upon voluntary or involuntary liquidation, winding-up or dissolution of the Partnership, including the 6.700% Series P Cumulative Redeemable Preferred Units (the “Series P Preferred
Units”), the 6.875% Series R Cumulative Redeemable Preferred Units (the “Series R Preferred Units”), the 6.45% Series S Cumulative Redeemable Preferred Units (the “Series S Preferred Units”) and 6.00%
Series T Cumulative Redeemable Preferred Units (the “Series T Preferred Units”). Notwithstanding the differing allocation rights set forth in Section 4 below that apply to the Series P, R, S and T Preferred Units. 

(c) “Priority Return” means an amount equal to 5.75% per annum, of the Liquidation Preference per Series U Preferred
Unit, commencing on the date of issuance of such Series U Preferred Unit, determined on the basis of a 360-day year (and twelve 30-day months), cumulative to the extent not distributed on any Series U Preferred Unit Distribution Payment Date (as
defined below). 
 Section 2. Creation of Series U Preferred Units. (a) Designation and Number. Pursuant
to Section 4.2(a) of the Partnership Agreement, a series of Partnership Units (as such term is defined in the Partnership Agreement) in the Partnership designated as the “5.75% Series U Cumulative Redeemable Preferred Units” (the
“Series U Preferred Units”) is hereby established effective as of September 14, 2012. The number of Series U Preferred Units shall be 9,200,000. The Holders of Series U Preferred Units shall not have any Percentage Interest (as
such term is defined in the Partnership Agreement) in the Partnership. 
 (b) Capital Contribution. In return for the
issuance to the General Partner of the Series U Preferred Units set forth on Exhibit C to this Amendment, the General Partner has contributed to the Partnership the funds raised through the General Partner’s issuance of the Depositary Shares
(the General Partner’s capital contribution shall be deemed to equal the amount of the gross proceeds of that share issuance, i.e., the net proceeds actually contributed, plus any underwriter’s discount or other expenses incurred,
with any such discount or expense deemed to have been incurred by the General Partner on behalf of the Partnership). 

  
 -2-

 (c) Construction. The Series U Preferred Units have been created and are being issued
in conjunction with the General Partner’s issuance of the Depositary Shares relating to the General Partner’s 6.00% Cumulative Preferred Stock, Series U, and as such, the Series U Preferred Units are intended to have designations,
preferences and other rights, all such that the economic interests are substantially similar to the designations, preferences and other rights of the Depositary Shares, and the terms of this Amendment shall be interpreted in a fashion consistent
with this intent. 
 Section 3. Distributions. (a) Payment of Distributions. Subject to the rights
of holders of Parity Preferred Units as to the payment of distributions, pursuant to Section 5.1 of the Partnership Agreement, holders of Series U Preferred Units shall be entitled to receive, when, as and if declared by the Partnership acting
through the General Partner, the Priority Return. Such distributions shall be cumulative, shall accrue from the original date of issuance of the Series U Preferred Units and, notwithstanding Section 5.1 of the Partnership Agreement, will be
payable (i) quarterly in arrears on March 31, June 30, September 30 and December 31 of each year commencing on December 31, 2012 and (ii) in the event of a redemption of Series U Preferred Units (each a
“Series U Preferred Unit Distribution Payment Date”). If any date on which distributions are to be made on the Series U Preferred Units is not a Business Day (as defined below), then payment of the distribution to be made on such
date will be made on the Business Day immediately preceding such date with the same force and effect as if made on such date. Distributions on the Series U Preferred Units will be made to the holders of record of the Series U Preferred Units on the
relevant record dates to be fixed by the Partnership acting through the General Partner, which record dates shall in no event exceed fifteen (15) Business Days prior to the relevant Series U Preferred Unit Distribution Payment Date. Business
Day shall be any day other than a Saturday, Sunday or day on which banking institutions in the State of New York or the State of California are authorized or obligated by law to close, or a day which is or is declared a national or a New York or
California state holiday. 
 (b) Prohibition on Distribution. No distributions on Series U Preferred Units shall be
authorized by the General Partner or paid or set apart for payment by the Partnership at any such time as the terms and provisions of any agreement of the Partnership or the General Partner, including any agreement relating to their indebtedness,
prohibits such authorization, payment or setting apart for payment or provides that such authorization, payment or setting apart for payment would constitute a breach thereof or a default thereunder, or to the extent that such authorization or
payment shall be restricted or prohibited by law. 
 (c) Distributions Cumulative. Distributions on the Series U Preferred
Units will accrue whether or not the terms and provisions of any agreement of the Partnership, including any agreement relating to its indebtedness, at any time prohibit the current payment of distributions, whether or not the Partnership has
earnings, whether or not there are funds legally available for the payment of such distributions and whether or not such distributions are authorized. Accrued but unpaid distributions on the Series U Preferred Units will accumulate as of the Series
U Preferred Unit Distribution Payment Date on which they first become payable. Distributions on account of arrears for any past distribution periods may be declared and paid at any time, without reference to a regular Series U Preferred Unit
Distribution Payment Date, to holders of record of the Series U Preferred Units on the record date fixed by the Partnership acting through the General Partner which date shall not exceed fifteen (15) Business Days prior to the payment date.
Accumulated and unpaid distributions will not bear interest. 

  
 -3-

 (d) Priority as to Distributions. Subject to the provisions of Article 13 of the
Partnership Agreement: 
 (i) So long as any Series U Preferred Units are outstanding, no distribution of cash or other property
shall be authorized, declared, paid or set apart for payment on or with respect to any class or series of Partnership Interests ranking junior as to the payment of distributions or rights upon a voluntary or involuntary liquidation, dissolution or
winding-up of the Partnership to the Series U Preferred Units (collectively, “Junior Units”), nor shall any cash or other property be set aside for or applied to the purchase, redemption or other acquisition for consideration of any
Series U Preferred Units, any Parity Preferred Units or any Junior Units, unless, in each case, all distributions accumulated on all Series U Preferred Units and all classes and series of outstanding Parity Preferred Units have been paid in full.
The foregoing sentence shall not prohibit (x) distributions payable solely in Junior Units, or (y) the conversion of Junior Units or Parity Preferred Units into Partnership Interests ranking junior to the Series U Preferred Units.

 (ii) So long as distributions have not been paid in full (or a sum sufficient for such full payment is not irrevocably
deposited in trust for payment) upon the Series U Preferred Units, all distributions authorized and declared on the Series U Preferred Units and all classes or series of outstanding Parity Preferred Units shall be authorized and declared so that the
amount of distributions authorized and declared per Series U Preferred Unit and such other classes or series of Parity Preferred Units shall in all cases bear to each other the same ratio that accrued distributions per Series U Preferred Unit and
such other classes or series of Parity Preferred Units (which shall not include any accumulation in respect of unpaid distributions for prior distribution periods if such class or series of Parity Preferred Units do not have cumulative distribution
rights) bear to each other. 
 (e) No Further Rights. Holders of Series U Preferred Units shall not be entitled to any
distributions, whether payable in cash, other property or otherwise, in excess of the full cumulative distributions described herein. 
 Section 4. Allocations. Section 6.1(a)(ii) of the Partnership Agreement is amended to read, in its entirety, as follows: 

“ (ii) (A) Notwithstanding anything to the contrary contained in this Agreement, in any taxable year: (1) the holders of
Series P, R, S, T and U Preferred Units shall be allocated an amount of gross income equal to the Priority Return distributed to such holders in such taxable year. 
 (B) After the Capital Account balances of all Partners other than holders of any series of Preferred Units have been reduced to zero, Losses of the Partnership that otherwise would be allocated so as to
cause deficit Capital Account balances for those other Partners shall be allocated to the holders of the Series P, R, S, T and U Preferred Units in proportion to the positive balances of their Capital Accounts until those Capital Account
balances have been reduced to zero. If Losses have been allocated to the holders of the Series P, R, S, T and U Preferred Units pursuant to the preceding sentence, the first subsequent Profits shall be allocated to those preferred partners so as to
recoup, in reverse order, the effects of the loss allocations. 

  
 -4-

 (C) Upon liquidation of the Partnership or the interest of the holders of Series P, R, S, T
and U Preferred Units in the Partnership, items of gross income or deduction shall be allocated to the holders of Series P, R, S, T and U Preferred Units in a manner such that, immediately prior to such liquidation, the Capital Account balances of
such holders shall equal the amount of their Liquidation Preferences. 
 Section 5. Optional Redemption. The Series U
Preferred Units shall be redeemed at the same time, to the same extent, and applying, except as set forth below, similar procedures, as any redemption by the General Partner of the Depositary Shares. The redemption price, payable in cash, shall
equal the Liquidation Preference (the “Series U Redemption Price”). Unless otherwise agreed, the Partnership will deliver into escrow with an escrow agent acceptable to the Partnership and the holders of the Series U Preferred Units
being redeemed (the “Escrow Agent”) the Series U Redemption Price and an executed Redemption Agreement, in substantially the form attached as Exhibit A (the “Redemption Agreement”), and an Amendment to the Agreement
of Limited Partnership evidencing the Redemption, in substantially the form attached as Exhibit B. The holders of the Series U Preferred Units to be redeemed will also deliver into escrow with the Escrow Agent an executed Redemption Agreement and an
executed Amendment to the Agreement of Limited Partnership evidencing the redemption. Upon delivery of all of the above-described items by both parties, on the redemption date the Escrow Agent shall release the Series U Redemption Price to the
holders of the Series U Preferred Units and the fully-executed Redemption Agreement and Amendment to Agreement of Limited Partnership to both parties. On and after the date of redemption, distributions will cease to accumulate on the Series U
Preferred Units called for redemption, unless the Partnership defaults in the payment of the Series U Redemption Price. The Redemption Right (as such term is defined in the Partnership Agreement) given to Limited Partners (as such term is defined in
the Partnership Agreement) in Section 8.6 of the Partnership Agreement shall not be available to the holders of the Series U Preferred Units and all references to Limited Partners in said Section 8.6 (and related provisions of the
Partnership Agreement) shall not include holders of the Series U Preferred Units. 
 Section 6. Voting Rights.
Holders of the Series U Preferred Units will not have any voting rights or right to consent to any matter requiring the consent or approval of the Limited Partners, except as set forth in Section 14.1 of the Partnership Agreement and in this
Section 6. Solely for purposes of Section 14.1 of the Partnership Agreement, each Series U Preferred Unit shall be treated as one Partnership Unit. 
 Section 7. Transfer Restrictions. The holders of Series U Preferred Units shall be subject to all of the provisions of Section 11 of the Partnership Agreement. 

  
 -5-

 Section 8. No Conversion Rights. The holders of the Series U Preferred Units
shall not have any rights to convert such units into shares of any other class or series of stock or into any other securities of, or interest in, the Partnership. 
 Section 9. No Sinking Fund. No sinking fund shall be established for the retirement or redemption of Series U Preferred Units. 

Section 10. Exhibit A to Partnership Agreement. In order to duly reflect the issuance of the Series U Preferred Units provided
for herein, the Partnership Agreement is hereby further amended pursuant to Section 12.3 of the Partnership Agreement by replacing the current form of Exhibit A to the Partnership Agreement with the form of Exhibit A that is attached to this
Amendment as Exhibit C. 
 Section 11. Inconsistent Provisions. Nothing to the contrary contained in the Partnership
Agreement shall limit any of the rights or obligations set forth in this Amendment. 
 [The remainder of this page is
intentionally left blank.] 

  
 -6-

 IN WITNESS WHEREOF, this Amendment has been executed as of the date first above written.

  

			
	PS BUSINESS PARKS, INC.
		
	By: 	 	/s/ Joseph D. Russell, Jr.
		 	Name: Joseph D. Russell, Jr.
		 	Title: President and Chief Executive Officer

  
 -7-

 Exhibit A 
 FORM OF 
 REDEMPTION AGREEMENT 

THIS REDEMPTION AGREEMENT (the “Agreement”) is entered into effective as of the
             day of                 ,
            , by and between                 (the “Retiring Partner”), and PS Business Parks, L.P.,
a California limited partnership (the “Partnership”). 
 RECITALS: 

WHEREAS, the Agreement of Limited Partnership of the Partnership, dated as of March 17, 1998, as amended, was amended by an
Amendment to Agreement of Limited Partnership Relating to 5.75% Series U Cumulative Redeemable Preferred Units (the “Amendment”), as further amended from time to time; 

WHEREAS, the Retiring Partner owns              of the 5.75% Series U
Cumulative Redeemable Preferred Units in the Partnership (the “Series U Preferred Units”); and 
 WHEREAS, the
Partnership desires to redeem the Series U Preferred Units of the Retiring Partner, and the Retiring Partner desires to liquidate its Series U Preferred Units (the “Redemption”) pursuant to the Amendment and based on the representations
and under the terms and conditions set forth below; 
 NOW, THEREFORE, in consideration of the mutual covenants, representations
and agreements herein contained, the parties hereto, intending to be legally bound, do covenant and agree as follows: 
 1.
Liquidation of Retiring Partner. In satisfaction of the terms and conditions set forth herein and in the Amendment, the Retiring Partner’s Series U Preferred Units are hereby completely liquidated and the Retiring Partner immediately and
automatically ceases to be a limited partner in the Partnership in exchange for the payment of the Series U Redemption Price (as defined in the Amendment and in accordance with the provisions set forth in the Amendment) and for other good and
valuable consideration. 
 2. Representations of Retiring Partner. The Retiring Partner represents and warrants to the
Partnership that: 
 (a) The Retiring Partner is duly organized and validly existing under the laws of the State of
                 and has been duly authorized by all necessary and appropriate [limited liability company] [corporate] [partnership] action to enter into this Agreement
and to consummate the transactions contemplated herein. This Agreement is a valid and binding obligation of the Retiring Partner, enforceable against the Retiring Partner in accordance with its terms, except insofar as such enforceability may be
affected by bankruptcy, insolvency or similar laws affecting creditor’s rights generally and the availability of any particular equitable remedy. 
 (b) The Retiring Partner has not sold, assigned or otherwise disposed of all or any portion of the Series U Preferred Units and the Series U Preferred Units are free of any liens, security interests,
encumbrances or other restrictions, whether existing of record or otherwise. 

 (c) The execution of this Agreement by the Retiring Partner and the performance of its
obligations hereunder will not violate any contract, mortgage, indenture, or other similar restriction to which the Retiring Partner is a party or by which its assets are bound. 

(d) Neither the execution nor the delivery of this Agreement nor the consummation of the transactions contemplated herein nor fulfillment
of or compliance with the terms and conditions hereof (a) conflict with or will result in a breach of any of the terms, conditions or provisions of (i) the organizational and governing documents of the Retiring Partner or (ii) any
agreement, order, judgment, decree, arbitration award, statute, regulation or instrument to which the Retiring Partner is a party or by which it or its assets are bound, or (b) constitutes or will constitute a breach, violation or default under
any of the foregoing. No consent or approval, authorization, order, regulation or qualification of any governmental entity or any other person is required for the execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby by the Retiring Partner. 
 3. Representations and Warranties of the Partnership. The Partnership
represents and warrants to the Retiring Partner as follows: 
 (a) The Partnership is duly organized and validly existing under
the laws of the State of California and has been duly authorized by all necessary and appropriate partnership action to enter into this Agreement and to consummate the transactions contemplated herein. This Agreement is a valid and binding
obligation of the Partnership enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally.

 (b) The execution of this Agreement by the Partnership and the performance of its obligations hereunder will not violate any
contract, mortgage, indenture, or other similar restriction to which the Partnership is a party or by which the Partnership is bound. 
 (c) Neither the execution nor the delivery of this Agreement nor the consummation of the transactions contemplated herein nor fulfillment of or compliance with the terms and conditions hereof
(a) conflict with or will result in a breach of any of the terms, conditions or provisions of (i) the organizational and governing documents of the Partnership or (ii) any agreement, order, judgment, decree, arbitration award,
statute, regulation or instrument to which the Partnership is a party or by which it or its assets are bound, or (b) constitutes or will constitute a breach, violation or default under any of the foregoing. No consent or approval,
authorization, order, regulation or qualification of any governmental entity or any other person is required for the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby by the Partnership.

 (d) Consummation of the Redemption by the Partnership will not render the Partnership insolvent under California partnership
law. 

  
 -2-

 4. Indemnification. 

(a) The Retiring Partner covenants and agrees to indemnify the Partnership and hold it harmless against and with respect to any and all
damage, loss, liability, deficiency, cost and expense, including reasonable attorneys’ fees, (i) resulting from any misrepresentation, breach of warranty or non-fulfillment of any agreement or covenant on the part of the Retiring Partner
under this Agreement, and (ii) from any and all actions, suits, proceedings, demands, assessments, judgments, costs and legal and other expenses incident to any of the foregoing. 

(b) The Partnership covenants and agrees to indemnify the Retiring Partner and hold it harmless against and with respect to any and all
damage, loss, liability, deficiency, cost and expense, including reasonable attorneys’ fees, (i) resulting from any misrepresentation, breach of warranty or non-fulfillment of any agreement or covenant on the part of such Partnership under
this Agreement and (ii) from any and all actions, suits, proceedings, demands, assessments, judgments, costs and legal and other expenses incident to any of the foregoing. 
 5. Survival of Representations and Warranties. All representations, warranties, covenants and agreements of any of the parties hereto made in this Agreement shall survive the execution and delivery
hereof, the closing hereunder, and the execution and delivery of all instruments and documents executed in connection therewith. 

6. Integration, Interpretation and Miscellaneous. This Agreement sets forth the entire understanding of the parties hereto with
respect to the subject matter herein and it shall not be changed or terminated orally. This Agreement shall be construed in accordance with the laws of the State of California. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal
representatives, and successors, or successors and assigns, as the case may be. The headings in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement. 

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

 

					
	RETIRING PARTNER:
			
	 	 	 	 	 
			
	By: 	 	 	 	 
		 	Name: 
		 	Title:
	
	PARTNERSHIP:
	
	PS Business Parks, L.P.
	By:	 	PS Business Parks, Inc., its
		 	General Partner
			
		 	By: 	 	 
		 		 	Name:
		 		 	Title:

  
 -3-

 Exhibit B 
 FORM OF 
 AMENDMENT TO 

AGREEMENT OF LIMITED PARTNERSHIP 
 OF 
 PS BUSINESS PARKS, L.P. 

This Amendment to Agreement of Limited Partnership of PS Business Parks, L.P. (the “Partnership”), dated as of
                 (this “Amendment”) is entered into by the General Partner of the Partnership, PS Business Parks, Inc., and
                , as a withdrawing Limited Partner of the Partnership (the “Withdrawing Partner”). 

RECITALS: 

WHEREAS, capitalized terms used herein, unless otherwise defined, have the meanings assigned to such terms in the Agreement of Limited
Partnership of the Partnership entered into as of March 17, 1998, as amended (the “Partnership Agreement”). 
 WHEREAS, pursuant to the redemption by the Partnership of the 5.75% Series U Cumulative Redeemable Preferred Units pursuant to the terms and conditions set forth in that certain Redemption Agreement by
and between the Partnership and the Withdrawing Partner, dated as of                      , 20    ,
                    5.75% Series U Cumulative Redeemable Preferred Units of the Withdrawing Partner have been redeemed by the Partnership and the
General Partner desires to amend the Partnership Agreement to (a) set forth a revised list of all Partners of the Partnership as of the date hereof and (b) reflect the withdrawal of the Withdrawing Partner from the Partnership. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereby agree as follows:

 1. This Amendment shall be deemed effective as of the date first above written. Except as amended hereby, the Partnership
Agreement shall remain in full force and effect and shall be otherwise unaffected hereby. 
 2. To evidence the redemption of the
5.75% Series U Cumulative Redeemable Preferred Units of the Withdrawing Partner and the withdrawal of the Withdrawing Partner as a Limited Partner of the Partnership, attached as Schedule A is a current list of Partners of the Partnership as
of the date hereof. 
 3. The Withdrawing Partner is entering into this Amendment to evidence its withdrawal as a Limited Partner
of the Partnership. 
 4. This Amendment shall be deemed to be a contract made under the laws of the State of California and for
all purposes shall be governed by and construed in accordance with the laws of such state. 

 IN WITNESS WHEREOF, the undersigned has caused this Amendment to be executed and delivered
as of the date first above written. 
  

			
	GENERAL PARTNER
	
	PS Business Parks, Inc.
		
	By:	 	 
		 	Name:
		 	Title:
	
	WITHDRAWING LIMITED PARTNER
	
	 
		
	By: 	 	 
		 	Name:
		 	Title:

  
 -2-

 Exhibit C 
 Revised Exhibit A to the Partnership Agreement 
 Please see attached. 

 EXHIBIT C (September 14, 2012) 

 

															
	 Name of Partner
 (Date of Admission)
	 	Address	 	Agreed Value
of
Contributed Property (1)	 	 	Partnership Units	 	 	Percentage Interest	 
	 General Partner:
	 		 				 				 			
					
	 Total Common Shares
	 		 	$	565,687,000	  	 	 	24,247,428	  	 	 	76.85	% 
					
	 Total Common Units
	 		 	$	121,890,000	  	 	 	7,305,355	  	 	 	23.15	% 
		 		 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 TOTAL (General & Limited Partners; not Preferred Units)
	 		 	$	687,577,000	  	 	 	31,552,783	  	 	 	100.00	% 
					
	 Limited Partners (Series P Preferred Units):
	 		 				 				 			
	 PS Business Parks, Inc.
(January 17, 2007)
	 	701 Western Avenue
 Glendale, CA 91201
	 	 	132,250,000	  	 	 	5,290,000	  	 	 	13.00	% 
	 Limited Partners (Series R Preferred Units):
	 		 				 				 			
	 PS Business Parks, Inc.
(October 15, 2010)
	 	701 Western Avenue
 Glendale, CA 91201
	 	 	75,000,000	  	 	 	3,000,000	  	 	 	7.37	% 
	 Limited Partners (Series S Preferred Units):
	 		 				 				 			
	 PS Business Parks, Inc.
(January 18, 2012)
	 	701 Western Avenue
 Glendale, CA 91201
	 	 	230,000,000	  	 	 	9,200,000	  	 	 	22.61	% 
	 Limited Partners (Series T Preferred Units):
	 		 				 				 			
	 PS Business Parks, Inc.
(May 14, 2012)
	 	701 Western Avenue
 Glendale, CA 91201
	 	 	350,000,000	  	 	 	14,000,000	  	 	 	34.41	% 
	 Limited Partners (Series U Preferred Units):
	 		 				 				 			
	 PS Business Parks, Inc.
(September 14, 2012)
	 	701 Western Avenue
 Glendale, CA 91201
	 	 	230,000,000	  	 	 	9,200,000	  	 	 	22.61	% 
		 		 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 TOTAL (Preferred Stock & Units)
	 		 	$	1,017,250,000	  	 	$	40,690,000	  	 	 	100.00	% 
		 		 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

 “p/f/o” means that the property contributed was “property formerly owned by” the entity noted in
parenthesis. 
  

	(1)	Agreed value is the agreed gross value of the property at the time of contribution less any liabilities to which the property is subject at that time.Separation Agreement

 Exhibit 10.1 
 SEPARATION AGREEMENT 
 AND 

GENERAL RELEASE 
 This Separation Agreement and General Release (the “Agreement”) is executed on the dates given on the signature pages by and between PMC Commercial Trust (the “Company”) and Lance B.
Rosemore (“Executive” or “I”). 
 RECITALS 

WHEREAS, the Company has employed Executive for several years, most recently as President, Chief Executive Officer and Secretary; and

 WHEREAS, the parties have agreed that Executive’s employment as President, Chief Executive Officer and Secretary of the
Company, and all other officer positions of the Company and its subsidiaries, and his service as a trust manager and director of the Company and its subsidiaries, including his position as Chairman of the Board of Trust Managers of the Company (the
“Board”), ended on October 26, 2012; and 
 WHEREAS, the Company agrees to provide Executive with the
compensation and consideration referenced in this Agreement in connection with the foregoing and his provision of a general release of claims in favor of the Company and the Released Parties (as defined below) and other covenants and promises.

 NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  

	I.	Separation of Employment 

 The Company and Executive hereby acknowledge that they have agreed that Executive’s employment as President, Chief Executive Officer and Secretary of the Company, and all other officer positions of
the Company and its subsidiaries, and his service as a trust manager and director of the Company and its subsidiaries, including his position as Chairman of the Board, ended on October 26, 2012 (“Separation Date”). The Company and
Executive hereby further acknowledge that they have waived any rights to prior notification of the separation of Executive’s employment. 
  

	II.	Special Compensation and Benefits 

 In consideration for Executive’s release of claims, as well as Executive’s other promises contained herein, the Company agrees to: 

A. pay to Executive compensation in the gross amount of $1,744,197 (the “Gross Separation Payment” or the
“Separation Payment”), which shall be subject to withholding for taxes and other applicable deductions (the Gross Separation Payment as so reduced, the “Net Separation Payment”). The Company shall pay the Gross Separation Payment
on a date that is the first business day occurring on or next following the day that is six (6) months and one day after the Separation Date. Amounts payable under this Section II.A. of the Agreement shall be paid from the general assets of the
Company; 

  

			
	 /s/ NC
 Initials of
Company
 Signatory
	  	 /s/ LBR 
 Initials of
 Executive

 B. accelerate the vesting of Executive’s unvested restricted
shares (3,335 shares) granted under the Company’s 2005 Equity Incentive Plan; 
 C. pay to Executive
a lump sum payment in the amount of $300,000 (“Bonus Payment”), which shall be subject to withholding for taxes and other applicable deductions, on the first regular payroll date following the Effective Date of this Agreement (as defined
in Section IV.K. below); 
 D. for a period beginning on the Separation Date and ending on the earlier of
(i) the last day of the month following the month in which Executive’s 65th birthday occurs or (ii) the date on which Executive obtains health and dental insurance from a subsequent employer (the “Benefit Period”), continue
to pay for Executive’s and his spouse’s health and dental insurance coverage. This insurance continuation coverage shall be provided by Executive and his spouse enrolling in COBRA continuation coverage under the Company’s applicable
benefit plans. The Company may, with the consent of the insurance company, elect to pay the COBRA premium amounts directly to the insurance company. Executive further agrees that he and his spouse will timely complete and submit the necessary
paperwork to obtain such COBRA continuation benefits. Executive understands and agrees that after the expiration of the Benefit Period, any continuation of insurance benefits for him and his spouse will be at Executive’s own expense and he will
be responsible for paying 100% of the premiums, and the Company does not assure, or make any representation as to, the availability of any insurance benefits or coverage at and after such time; 

E. for a period beginning on the Separation Date and ending on the date one year thereafter (“Consulting and
Transition Period”), pay to Executive the gross amount of $50,000 (“Consulting and Transition Payment”) for his provision of the consulting and transition services as described in Section IV.J. The Company shall pay the Consulting and
Transition Payment in monthly installments on the first business day of each month during the Consulting and Transition Period with the final outstanding balance of the Consulting and Transition Payment to be paid on or before October 31, 2013;
and 
 F. allow Executive to retain his office furniture and computer (subject to Section IV.C. below) and
arrange for the relocation, at the Company’s expense, of Executive’s office furniture to his residence in Dallas, Texas. 

  

			
	 /s/ NC
 Initials of
Company
 Signatory
	  	 /s/ LBR 
 Initials of
 Executive

2 

	III.	Mutual General Release 

 A. In return for the consideration referenced in this Agreement, including without limitation the Separation Payment, the Bonus Payment, and certain continued insurance benefits, Executive agrees
to the following (the “Release”) which shall be effective on the Effective Date of this Agreement: 
 I, on behalf of
myself and all of my heirs or personal representatives, hereby release the Company, its parent companies, subsidiaries, all affiliates of each, predecessors and successors, and all of such entities’ present or former members, partners,
officers, directors, trust managers, representatives, employees, agents, consultants, advisors, attorneys, employee benefit programs, and the trustees, administrators, fiduciaries and insurers of such entities (collectively the “Released
Parties”), from any and all claims for relief of any kind, whether known to me or unknown, which in any way arise out of or relate to the Company or any of the Released Parties, the separation of my employment from the Company or any of the
Released Parties, or any agreements between the Company or any of the Released Parties and me pertaining to the Company, including without limitation the Executive Employment Contract dated December 15, 2011 (“Employment Contract”),
insofar as any of the foregoing are based on facts or events occurring at any time up to and including the Separation Date of this Agreement, including, but not limited to, any and all claims of wrongful discharge, retaliation or discrimination of
any kind, any breach of fiduciary duty claims, and any contractual, tort or other common law claims insofar as they relate to the Company. This release and waiver includes all such claims, whether for breach of contract, quasi-contract, implied
contract, quantum meruit, unjust enrichment, compensation, deferred compensation, equity interest, any tort claims, any breach of fiduciary duty claims, any and all claims under any applicable federal laws, including, but not limited to, the Age
Discrimination in Employment Act, as amended, Title VII of the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, 42 U.S.C. § 1981, the Americans with Disabilities Act, as amended, the Equal Pay Act, as amended, the Worker
Adjustment and Retraining Notification Act, the Executive Retirement Income Security Act of 1974, as amended, the Family and Medical Leave Act, as amended, the Fair Labor Standards Act, as amended, or under any applicable state or local laws or
ordinances or any other legal restrictions on the Company’s rights, including Chapter 21 of the Texas Labor Code (formerly known as the Texas Commission on Human Rights Act) and Section 451 of the Texas Labor Code. However, I recognize and
understand that this release does not include any claim which may not be waived as a matter of law. 

  

			
	 /s/ NC
 Initials of
Company
 Signatory
	  	 /s/ LBR 
 Initials of
 Executive

3 

 I further agree not to file or participate as a plaintiff or class member (by taking any
action to be a representative, or otherwise be a member, of a class, or in the absence of such action, by failing to elect out of membership in a class) in any suit of any kind against the Company or any of the Released Parties relating to the
Company or any of the Released Parties, the separation of my employment from the Company or any of the Released Parties, or any agreements between the Company or any of the Released Parties and me pertaining to the Company, including the Employment
Contract, insofar as any of the foregoing are based on facts or events occurring at any time up to and including the Separation Date of this Agreement insofar as they relate to the Company and/or my relationship with the Company. Even if a court
rules that I may file a lawsuit against the Company or any of the Released Parties relating to the Company or any of the Released Parties, or the separation of my employment from the Company or any of the Released Parties, or based on any agreements
between the Company or any of the Released Parties and me pertaining to the Company, including the Employment Contract, insofar as any of the foregoing are based on any facts or events occurring at any time prior to or on the Separation Date of this
Agreement that relate to the Company and/or arise out of my relationship with the Company, I agree not to accept any money damages or any other relief in connection with any such lawsuit. I understand that this Release effectively waives any right I
might have to sue the Company or any of the Released Parties for any claim relating to the Company or any of the Released Parties, the separation of my employment from the Company, or any agreements between the Company or the Released Parties and me
pertaining to the Company, including the Employment Contract, insofar as any of the foregoing are based on facts or events occurring at any time prior to or on the Separation Date of this Agreement that relate to the Company and/or my relationship
with the Company. However, I recognize and understand that this Release does not prohibit me from filing an administrative charge with any state or federal agency. I further recognize and understand that even if I file a charge with an
administrative agency or one is filed on my behalf, I will be entitled to no damages relating to any facts, circumstances, or events that occurred at any time prior to or on the Separation Date. 

B. I expressly agree and acknowledge that this Release is intended to include in its effect, without limitation,
all claims relating in any manner to the Company or the Released Parties, my employment, the separation of my employment with the Company or the Released Parties, or any agreements between the Company or any of the Released Parties and me pertaining
to the Company, including the Employment Contract, insofar as any of the foregoing are based on facts or events occurring at any time up to and including the Separation Date of this Agreement, that I do not know or suspect to exist in my favor at
this time. 
 However, this Release does not waive my rights to enforce this Agreement. In addition, the preceding paragraph
notwithstanding, this Release does not give up my rights, if any, to COBRA benefits under the Company’s standard benefit programs applicable to me. Further, this Release does not waive any rights to: (i) my vested equity benefits under any
Company plan, (ii) my vested 401(k), profit sharing or pension monies, (iii) my final paycheck for my employment by the Company until the Separation Date, (iv) reimbursement to me of any outstanding business expense amounts (in
accordance with the Company’s existing reimbursement policies), (v) my indemnification rights under the Employment Contract, the Indemnification Agreement dated February 17, 2006 between the Company and me (the “Indemnification
Agreement”), state law or any insurance policy, (vi) ownership of shares of beneficial interest in the Company owned by me immediately prior to the Separation Date; and (vii) any claims I may have as an equity holder of the Company
from and after the date hereof if based on facts or circumstances first occurring after the Separation Date. During the six year period from the Effective Date of this Agreement, the Company shall maintain in full force and effect directors’
and officers’ liability insurance at amounts at least equal to, and on terms comparable to, what is maintained for active officers and directors of the Company from time to time as if Executive were an officer and member of the Board, as well
as an officer and/or director of any affiliate of the Company as he so serves on the date hereof, including, without limitation, maintaining or securing such coverage terms, supplemental coverage or extended claim reporting rights as may be
necessary to ensure, to the extent provided for in this Agreement, uninterrupted coverage of claims against Executive made subsequent to the date hereof. The Company shall have the right to change its directors’ and officers’ insurance
provider so long as the applicable terms of this Agreement are complied with. The Company and Executive agree that Executive’s vested equity holdings and 401(k), pension and profit sharing monies shall continue to be governed by the terms of
the applicable plan. 

  

			
	 /s/ NC
 Initials of
Company
 Signatory
	  	 /s/ LBR 
 Initials of
 Executive

4 

 C. Effective on the Effective Date of this Agreement, except as set
forth in the last paragraph of this Section, the Company hereby releases Executive, including in his capacity as a trust manager and a shareholder, from any and all claims for relief of any kind, whether known or unknown, which in any way arise out
of or relate to Executive’s employment at the Company, the Employment Contract, or the separation of Executive’s employment from the Company, insofar as any of the foregoing are based on facts or events occurring at any time up to and
including the Separation Date. The Company further agrees not to file a suit of any kind against Executive relating to Executive’s employment at the Company or the separation of Executive’s employment from the Company, insofar as any of
the foregoing are based on facts or events occurring at any time up to and including the Separation Date. 

Notwithstanding the generality of the foregoing, nothing contained herein shall release Executive from any claim relating
to Executive’s obligations set forth herein, or Executive’s fraud, willful misconduct or gross negligence. 
  

	IV.	Miscellaneous Provisions 

 A. While Executive understands that he has had such an obligation since he began his employment with the Company or any of the Released Parties, Executive confirms that he shall not disclose
any of the trade secrets or other confidential or proprietary information of the Company or any of the Released Parties and shall not make use of such trade secrets or confidential or proprietary information in any fashion at any time, including in
any future employment, task, work or business. Notwithstanding the foregoing, nothing contained in this Agreement shall deprive Executive from his use in any capacity of know-how and industry knowledge gained from his years of business experience
and education gained to date. 
 B. Executive agrees not to, in any capacity, make or publish, or cause or
cooperate with any other individual or entity to make or publish, any statements that disparage the Company or any of the Released Parties, or their employees, products or services. The Company agrees not to make any statements, or cause or
cooperate with any other individual or entity to make any statements, that disparage Executive. The parties acknowledge and understand that nothing herein shall prevent any person from making truthful statements in any legal proceeding or to any
governmental agency or as otherwise required by applicable law. The parties further agree that nothing contained herein shall in any way limit attorney-client communications. 

  

			
	 /s/ NC
 Initials of
Company
 Signatory
	  	 /s/ LBR 
 Initials of
 Executive

5 

 C. The Company agrees that Executive shall be entitled to retain his
computer. However, Executive agrees to cooperate with the Company in the removal of all Company information from Executive’s computer. Executive warrants that, other than his computer and office furniture, he has returned to the Company all
Company property in his possession, including, but not limited to, originals and all copies of company files, electronic mail, work product, computer equipment, external storage devices, computer software, cell phones, PDA’s, corporate credit
cards, identification cards, manuals, confidential and/or trade secret information, Company documents, and Company keys. Executive further agrees to cooperate and work with Barry Berlin to ensure his compliance with this Section IV.C. 

D. Company and Executive shall each be entitled to seek injunctive relief to the extent permitted by applicable law
and equitable principles and/or sue the other for any actual damages suffered as a result of a breach by the other of this Agreement and shall be entitled to recover from such other any costs and expenses incurred in connection with any such suit in
the event that a court of competent jurisdiction determines that the other has breached this Agreement. The Company acknowledges and agrees that it shall have no offset right, under common law, contract or otherwise, against the Separation Payment,
the Bonus Payment, the Consulting and Transition Payment, and the insurance benefits provided for in Section II above. 
 E. Executive understands that the short-term disability, long-term disability and life insurance coverage provided by the Company, if any, will end on the Separation Date. Executive also
understands that the Company will not pay for any business-related expenses or other charges incurred by him on or after the Separation Date. Executive further understands that he will cease to accrue vacation time or be entitled to a car allowance
or payment or reimbursement for club dues as of the Separation Date. Executive acknowledges and agrees that he has been paid for all accrued, unused vacation. 
 F. The parties understand that this Agreement does not constitute an admission of any kind by the Company or the Executive, but is simply an accommodation that offers certain extra benefits to the
Executive to which he would not otherwise be entitled in return for his agreeing to and signing this document. 

G. Executive agrees not to voluntarily make the terms and conditions or the circumstances surrounding this
Agreement known to anyone other than an attorney and/or tax consultant from whom he receives counseling or his spouse, or except as otherwise required by law. Executive acknowledges that any such person must agree not to further disclose the terms
of this Agreement. 
 H. The venue for the litigation of any dispute arising out of this Agreement shall
be a court of competent jurisdiction in Dallas County, Texas. Texas law shall govern the interpretation and enforcement of this Agreement. 
 I. Executive acknowledges that in the course of Executive’s employment with the Company, Executive has gained knowledge and experience and/or was a witness to events and circumstances that may
arise in the Company’s defense or prosecution of subsequent proceedings. Executive agrees to cooperate reasonably with the Company, including without limitation providing truthful testimony and meeting timely with Company counsel, and to appear
upon the Company’s reasonable request as a witness and/or consultant in defending or prosecuting claims of all kinds, including but not limited to any litigation, administrative actions or arbitrations, at the Company’s expense.

  

			
	 /s/ NC
 Initials of
Company
 Signatory
	  	 /s/ LBR 
 Initials of
 Executive

6 

 J. During the Consulting and Transition Period, Executive agrees to,
at the Company’s request: (i) assist in the transition of his duties, (ii) respond to inquiries from the Company, and (iii) provide information to the Company (collectively the “Consulting and Transition Services”).
Unless the Company and Executive agree to a different timeframe, Executive agrees to make a good faith effort to acknowledge within two (2) business days requests from the Company for Consulting and Transition Services and to perform the
requested Consulting and Transition Services as soon as possible and in any event within a good faith, reasonable timeframe. Executive understands and agrees that he will be performing the Consulting and Transition Services as an independent
contractor. For purposes of this Section IV.J., Executive shall be treated as if an agent of the Company under the Indemnification Agreement. The foregoing provisions of this Section IV.J. notwithstanding, the Company shall not provide Executive any
material nonpublic information concerning the Company or request the Executive to perform services hereunder that would result in or contribute to the creation of, or cause Executive to be otherwise exposed to, material nonpublic information
concerning the Company, and Executive may reject any Company request hereunder that Executive believes in good faith could be inconsistent with the Company’s obligations to him set forth in this sentence. 

K. Executive is entering into this Agreement freely and voluntarily. He has carefully read and understands all of
the provisions of this Agreement. Executive understands that it sets forth the entire agreement between the Company and him, and he represents that no other statements, promises, or commitments of any kind, written or oral, have been made to him by
the Company, or any of its agents, to cause him to accept it. Executive acknowledges that he has been advised to consult legal counsel concerning this Agreement prior to signing the Agreement, and that he has had sufficient opportunity to do so.
Executive understands that he may have up to twenty-one (21) days from the date he received this Agreement to consider this Agreement. Executive understand that if he signs this Agreement, he will then have seven (7) days to cancel it if
he so chooses. Executive may cancel this Agreement by delivering a written notice of cancellation to Barry Berlin, Chief Financial Officer, PMC Commercial Trust, 17950 Preston Road, Suite 600, Dallas, TX 75252; Phone: (972) 349-3230.
However, if Executive elects to cancel this Agreement, he understands that he will not be entitled to the Separation Payment, Bonus Payment, paid insurance benefits, the Consulting and Transition Payment, the releases provided to him in this
Agreement, or any of the other benefits, compensation, or consideration referenced in this Agreement. Each of the Executive and the Company realize this Agreement is not effective or enforceable until the seven-day period expires without revocation
by the Executive. Executive and the Company understand that this Agreement will not become effective until the eighth day after Executive signs this Agreement without revocation by him (the “Effective Date”). Executive understands that the
Company will have no duty to pay him or provide him with the compensation, benefits or consideration referenced in this Agreement, and the releases provided to Executive in this Agreement will not become effective, until the Effective Date of this
Agreement. 
  

			
	 /s/ NC
 Initials of
Company
 Signatory
	  	 /s/ LBR 
 Initials of
 Executive

  
 7 

 I acknowledge acceptance of this Agreement by my signature below: 

 

					
	 /s/ Lance B. Rosemore
	 		 	 October 26, 2012

	Lance B. Rosemore	 		 	Date

 Agreed to and accepted on behalf of PMC Commercial Trust: 

 

			
	By:	 	   /s/ Nat Cohen

	Name:	 	  Nat Cohen
	Title:	 	  Trust Manager
	Date:	 	October 26, 2012

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]